TORONTO, Ont. — Cargojet Income Fund has sold its 55% interest in the Cargojet Regional Partnership to SkyLink Express for a $3.2 million promissory note secured by aircraft owned by Skylink. Skylink previously held the other 45% interest in the partnership, and will operate the regional business under its own trade name, Skylink Express. Cargojet will record a one-time non-cash loss of approximately $2.0 million on the sale of its 55% interest in the partnership.
“The sale of our regional air cargo business was a difficult but necessary decision that was made in the best interests of our customers, our employees and our unit holders,” said Ajay Virmani, president and CEO of Cargojet. “Sustaining a profitable regional air cargo business has been especially challenging, as recent economic conditions have resulted in a decline in customer demand and lower yields. The elimination of the drag on our financial and administrative resources will allow Cargojet to continue to focus upon and to seek further profitable growth opportunities in its national and international air cargo programs.”