Amazon adds Cargojet to its global network
Only a few weeks after handling record volumes in support of Amazon’s Prime Week (see ITJ 31-35/2019, p. 13), the Canadian all-cargo airline Cargojet has entered into a new strategic agreement with Amazon.com NV Investment Holdings, an affiliate of Amazon.com.ca.
The new deal is in conjunction with an existing commercial agreement for overnight air cargo services and charters. Its aim is to incentivise growth in Amazon’s deployment of those services to support fast deliveries for Amazon customers in Canada.
Under the new strategic agreement, Cargojet will issue warrants to Amazon to purchase variable voting shares that will be based on the achievement of commercial milestones related to Amazon’s business with Cargojet. The airline expects the agreement to generate additional revenue growth and help increase its earnings and cash flows over time. (ah)