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File photo of Cargojet CEO Ajay Virmani. (Glenn Lowson for The Globe and Mail)
File photo of Cargojet CEO Ajay Virmani. (Glenn Lowson for The Globe and Mail)

Air Canada, Cargojet explore strategic tie-up Add to ...

Air Canada is teaming up with Cargojet Inc. to explore ways they can work together to reduce costs and boost revenues in areas such as global sales and operational connections.

The two companies said in a joint news release Wednesday that they have signed a letter of intent to assess strategic opportunities in cargo as well as airline operations in Canada and abroad.

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Co-operation would be in various areas, including global sales and marketing, expanded interline opportunities and enhanced connectivity, the two companies said.

Interlining is the selling of flights involving multiple airlines.

The goal is to improve services to the shipping community on each company’s respective networks, they said.

“We are looking forward to working with Air Canada towards improving the depth and reach of both companies’ air cargo services, both domestically and internationally, among other strategic objectives,” Cargojet president and chief executive officer Ajay Virmani said.

Implementing any new initiatives would be subject to regulatory approvals.

Mississauga-based Cargojet specializes in overnight air cargo services and has a North American-wide network using a fleet of 13 cargo-only aircraft.

Montreal-based Air Canada is the country’s largest airline and one of the world’s 10 biggest commercial airlines.

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