Cargojet delays B777F delivery
17 / 11 / 2022
Freighter operator Cargojet has delayed the delivery of one of its B777 converted freighters as part of efforts to manage capital expenditure (CapEx).
Speaking following the publication of the Canada-based airline’s third-quarter results, president and chief executive Ajay Virmani said that the company had delayed the delivery of one of its eight B777 converted freighters until 2027 as part of risk mitigation efforts as the industry faces a slowdown.
“We have a strong balance with several risk mitigation opportunities to manage revenue, operating costs, and capital expenditures,” he said.
“An example of how we manage our CapEx would be the most recent decision to exercise an option to defer the last of our Boeing 777Fs that was planned for 2026 and until most likely 2027.
“If things change over the next 12 to 18 months, we believe that Cargojet will still be in a position to acquire the eight B777Fs as originally planned, in late 2026.”
The company could also potentially delay or defer two B767 aircraft it has on order, he said, as well as a second B777F.
The company has four B777-300 conversions booked in with IAI and four B777-200 conversions placed with Mammoth.
He added that the company had also diversified its business through investment in ACMI and CMI and also developing long-term partnerships with customers to help protect it from downturns.
Virmani also commented on the return of bellyhold operations and their impact on the all-cargo market.
He said that airlines had been returning narrowbody aircraft, rather than cargo-friendly widebody models, and that services were still subject to change.
“Therefore, despite the capacity created by the return of the belly space in passenger aircraft, shippers continue to move their freight in the dedicated air cargo freighters because they can depend on this service,” he said.
