Cargojet currently utilises 12 freighters to service DHL requirements. DHL intends to add five additional B767 freighters during the 2022-23 timeframe to fulfil its anticipated network requirements, building on the rapid expansion of the company’s air network in the last two years. In the Americas, DHL increased its overall aviation capacity by 18% for the 2021 peak season in response to surging demand, particularly in the e-commerce segment. It recently added a new weekly air connection from Vietnam to the US, adding 102 tons of additional capacity for customers shipping out of Asia into the Americas region.
Additionally, DHL intends to be the Cargojet inaugural launch customer for the B777 wide body long-range conversion cargo aircraft, which are expected to be deployed in late 2023 or early 2024. The more fuel-efficient freighter will support the DHL aim to improve the carbon footprint of its transportation operations. Since 2018, DHL has purchased 28 new Boeing 777F to add to the company’s global fleet, many of which serve points between the Americas region and the rest of the world.
In addition, to align interests and strengthen the long-term strategic relationship, Cargojet will issue to DHL warrants to acquire up to 9.5% of Cargojet’s outstanding voting shares (on a non-diluted basis as of the date hereof) at a price of C$158.92 per share (based on the 20-day volume weighted average trading price immediately prior to the date hereof) over a period of seven years, with vesting tied to the delivery by DHL of up to C$2.3bn in business volume during the same term.
Source: DHL
