Cargojet Inc, a prominent Canadian cargo airline, is looking to secure federal funding for the development of a new aircraft maintenance, repair and overhaul (MRO) facility in Ontario, according to Global News. The airline, whose shares are traded on the TSX, has engaged a lobbyist to push for financial aid from Innovation, Science and Economic Development Canada (ISED) in the form of grants, loans, or other financial incentives.
The Mississauga-headquartered company’s development plan includes setting up an MRO facility for its 41 Boeing 757 and 767 cargo planes. The facility will also cater to other companies’ aircraft needs. While no cost estimate has been provided in the official documentation, it is common for such facilities to require significant investment, typically running into tens of millions of dollars, and they often generate hundreds of jobs in the aviation sector.
It’s worth noting that over the last 20 years, most such facilities have been relocated to lower-cost countries in Asia and South America. Yet, Cargojet’s plan to establish a new MRO facility in Ontario was already hinted at in a recent investor presentation, although details about the location and timeline for the project were not disclosed.
To facilitate the process, Cargojet has enlisted the services of Mathieu Ouellet, a Montreal-based lobbyist from KPMG, who will be arranging meetings with ISED, MPs, and other government officials to secure federal support for the project.
The news comes on the heels of Cargojet’s recent $160 million, three-year agreement with China-based Great Vision HK Express to offer scheduled charter air cargo services. The Canadian cargo airline, which has grown into a $900 million operation employing over 1,800 people across Canada, seeks to support the fast-growing Chinese e-commerce sector with its new service.
The airline, currently serving 16 Canadian airports with overnight air cargo services, continues to grow and expand its operations, reinforcing its position as a leading player in the Canadian aviation sector.
