Release #: 21.28
May 07, 2021
ALPA Criticizes Cargojet, Unifor over Attempts to Weaken Aviation Safety Regulations
McLEAN, Va.—The Air Line Pilots Association, Int’l (ALPA) sent a strong message today to the management of Cargojet and the union representing its pilots, Unifor, urging them to halt any efforts to weaken the newly developed Canadian flight, duty, and air safety requirements.
In letters today to Cargojet CEO Ajay Virmani and Unifor’s National President Jerry ****, ALPA expressed concern over recent efforts to weaken the airline flight- and duty-time regulations, which have been one of the most important aviation safety issues for flight crews in Canada.
“I am writing to express my dismay over what I understand is your support of a management-led effort to weaken hard-fought rest and safety rules designed to keep the skies—and our pilots—safe,” wrote Capt. Joe DePete, ALPA president, to ****. “With four months of operating experience, we can say that our members have reported that these science-based rules, while not perfect, represent a significant improvement over the previous set of regulations in Canada. Any exemption, waiver, or weakening of them would undermine safety and be a slap in the face to those who fought so hard to have them enacted in the first place.”
For many years, Canada’s flight- and duty-time regulations had been acknowledged by aviation industry experts as inadequate for ensuring that pilots are well-rested when they fly. In 2018, after years of advocacy from industry stakeholders including ALPA, the Air Canada Pilots Association, and Unifor, Transport Canada announced updated regulations based on a staggered implementation timeline. Recently, ALPA learned that not only is Cargojet seeking exemptions to these newly implemented requirements, but also engaging in intimidating tactics to influence pilot support of this ill-advised plan.
“I am deeply troubled that Cargojet may be using the threat of layoffs and downgrades to convince pilots to support this plan that would weaken safety and put pilots at risk, this coming at a time when your airline has reported significant profits. The regulations in place today are the culmination of years of work and collaboration among all stakeholders in our industry,” said DePete to Virmani.
It continues to be ALPA’s firm view that no 705 airline operators should be granted any fatigue exemption outside of already existing provisions. Capt. DePete requested Cargojet and Unifor to end efforts supporting exemptions immediately.
Founded in 1931, ALPA is the largest airline pilot union in the world and represents over 59,000 pilots at 35 U.S. and Canadian airlines. Visit the ALPA website at alpa.org or follow us on Twitter @ALPAPilots.
https://www.alpa.org/news-and-events/ne ... egulations
ALPA Criticizes Cargojet, Unifor over Attempts to Weaken Aviation Safety Regulations
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ALPA Criticizes Cargojet, Unifor over Attempts to Weaken Aviation Safety Regulations
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Re: ALPA Criticizes Cargojet, Unifor over Attempts to Weaken Aviation Safety Regulations
https://www.ch-aviation.com/portal/news ... investment
Cargojet Airways (W8, Hamilton, ON) is looking to invest in a startup US cargo airline to take advantage of the e-commerce fueled upswing in the US express cargo industry, says Chief Executive Officer Ajay Virmani.
Speaking during a 1Q21 results conference call on May 3, 2021, he said the company was looking at a modest investment of USD5 million to USD20 million in an existing, or new small entity, that would be majority US-owned and act as the US license holder. “We don't anticipate to spend hundreds of millions buying a company unless something very good came up, I should never say never,” he said.
The US Air Operator's Certificate (AOC) holder would outsource dispatching and operations to Cargojet through a long-term lease of aircraft, crew, maintenance, and insurance. US law restricts commercial air operations within two points in the country to domestic carriers.
“The growth in the US market is tremendous,” Virmani said. “There are many routes and many areas that we cannot cover with our current license arrangements, and we continue to seek a US partner for our growth strategy across the border as many of our customers in Canada are also customers in the US.”
“We are looking at that opportunity very seriously because we feel there is a lot more opportunity to place aircraft and to have an ownership position. The company will seriously pursue that over the next quarter to have an investment that gives us another outlet to sell our products and services and expand,” he added.
Cargojet supports package delivery giants such as Amazon.com, DHL Express, and Purolator Courier, but many smaller retailers have also switched to online during the pandemic. This was driving Cargojet’s strategy to diversify its services.
Driven by dramatic growth in e-commerce demand and a steep drop in international passenger air service demand, the company delivered solid revenue growth of 30% or CAD160.3 million (USD130.7 million) in 1Q21, adjusted EBITDA growth of 44%, and had generated CAD35.2 million (USD28.7 million) in adjusted free cash flow, a growth of over 18%. Daily average operating revenue was up 35% to CAD2.5 million (USD2 million) and gross margins jumped 28.3% to CAD45.3 million (USD36.9 million). The carrier had managed to pay off most of its debt, Virmani said.
“While we do not expect the 2020 results to become the new baseline, we do expect a significant shift upwards from the pre-pandemic volumes due from the new baseline,” he said. Topping the agenda for the next six to eight months would be cost efficiency and productivity.
He said the company had invested in fleet expansion, which stood at 25 aircraft at the end of 1Q21 versus 20 aircraft at the end of 1Q20. “We recently acquired a B757-200(PCF) to continue to meet the demand of our existing customers. We will take delivery of this aircraft by the end of May this year.” The carrier also expects the delivery of five B767 converted freighters in the next 18 months, the first due in 4Q21. These will be deployed selectively on international high-yield routes or with customers who have demand for these aircraft.
According to the ch-aviation fleets advanced module, Cargojet's fleet already comprises eight B757-200(PCF)s, ten B767-300(ERBDSF)s, four B767-300(ERBCF)s, three B767-200(ERBDSF)s, and one ATR42-300(QC) (wet-leased from First Air (7F, Carp)).
Cargojet generates most of its revenue flying packages at night across Canada. It also leases aircraft and crews to companies that need one-time moves between Canada, the US, Mexico, and Europe. It provides regular cargo services between the US and Bermuda, and between Canada and Germany.
The company recently inked a four-year contract extension with Amazon that can be stretched up to six more years. In February, the airline raised CAD365 million (USD297.7 million) through a public offer and last month began operating two Amazon-owned aircraft for the retail giant.
Editorial Comment: Fixed fleet expansion figures. Cargojet operated 25 aircraft at the end of 1Q21 and 20 at the end of 1Q20. - 07.05.2021 - 06:43 UTC
Cargojet Airways (W8, Hamilton, ON) is looking to invest in a startup US cargo airline to take advantage of the e-commerce fueled upswing in the US express cargo industry, says Chief Executive Officer Ajay Virmani.
Speaking during a 1Q21 results conference call on May 3, 2021, he said the company was looking at a modest investment of USD5 million to USD20 million in an existing, or new small entity, that would be majority US-owned and act as the US license holder. “We don't anticipate to spend hundreds of millions buying a company unless something very good came up, I should never say never,” he said.
The US Air Operator's Certificate (AOC) holder would outsource dispatching and operations to Cargojet through a long-term lease of aircraft, crew, maintenance, and insurance. US law restricts commercial air operations within two points in the country to domestic carriers.
“The growth in the US market is tremendous,” Virmani said. “There are many routes and many areas that we cannot cover with our current license arrangements, and we continue to seek a US partner for our growth strategy across the border as many of our customers in Canada are also customers in the US.”
“We are looking at that opportunity very seriously because we feel there is a lot more opportunity to place aircraft and to have an ownership position. The company will seriously pursue that over the next quarter to have an investment that gives us another outlet to sell our products and services and expand,” he added.
Cargojet supports package delivery giants such as Amazon.com, DHL Express, and Purolator Courier, but many smaller retailers have also switched to online during the pandemic. This was driving Cargojet’s strategy to diversify its services.
Driven by dramatic growth in e-commerce demand and a steep drop in international passenger air service demand, the company delivered solid revenue growth of 30% or CAD160.3 million (USD130.7 million) in 1Q21, adjusted EBITDA growth of 44%, and had generated CAD35.2 million (USD28.7 million) in adjusted free cash flow, a growth of over 18%. Daily average operating revenue was up 35% to CAD2.5 million (USD2 million) and gross margins jumped 28.3% to CAD45.3 million (USD36.9 million). The carrier had managed to pay off most of its debt, Virmani said.
“While we do not expect the 2020 results to become the new baseline, we do expect a significant shift upwards from the pre-pandemic volumes due from the new baseline,” he said. Topping the agenda for the next six to eight months would be cost efficiency and productivity.
He said the company had invested in fleet expansion, which stood at 25 aircraft at the end of 1Q21 versus 20 aircraft at the end of 1Q20. “We recently acquired a B757-200(PCF) to continue to meet the demand of our existing customers. We will take delivery of this aircraft by the end of May this year.” The carrier also expects the delivery of five B767 converted freighters in the next 18 months, the first due in 4Q21. These will be deployed selectively on international high-yield routes or with customers who have demand for these aircraft.
According to the ch-aviation fleets advanced module, Cargojet's fleet already comprises eight B757-200(PCF)s, ten B767-300(ERBDSF)s, four B767-300(ERBCF)s, three B767-200(ERBDSF)s, and one ATR42-300(QC) (wet-leased from First Air (7F, Carp)).
Cargojet generates most of its revenue flying packages at night across Canada. It also leases aircraft and crews to companies that need one-time moves between Canada, the US, Mexico, and Europe. It provides regular cargo services between the US and Bermuda, and between Canada and Germany.
The company recently inked a four-year contract extension with Amazon that can be stretched up to six more years. In February, the airline raised CAD365 million (USD297.7 million) through a public offer and last month began operating two Amazon-owned aircraft for the retail giant.
Editorial Comment: Fixed fleet expansion figures. Cargojet operated 25 aircraft at the end of 1Q21 and 20 at the end of 1Q20. - 07.05.2021 - 06:43 UTC
Re: ALPA Criticizes Cargojet, Unifor over Attempts to Weaken Aviation Safety Regulations
And the ever so professional reply from the ole auto union turned pilot reps.
Captain DePete,
On behalf of Unifor and our 315,000 members, which includes 16,000 members in the air transportation sector in Canada, I am writing in utter disgust over your public statement and letter to me yesterday regarding the democratic process our members are undertaking with one of our employers, Cargojet.
Let me be crystal clear. Unifor will not tolerate interference in our democratic and pilot lead bargaining process by a self-serving US based Airline Pilots Association Intl. (ALPA) making ill-informed public statements. To be clear, it is ALPA, not Unifor, that has a history of making side deals with employers and stripping Canadian workers of their right to lead their own negotiations.
The arrogance you have displayed to interfere with our Unifor Local 7378 pilots who are in the process of voting on a proposed Memorandum of Settlement, in an attempt to stave off the loss of more than 100 jobs during a pandemic, is unconscionable. This settlement was negotiated by our pilots and is now being presented and voted on by the members. The hypocrisy of you attempting to influence this process when your pilots at Westjet and elsewhere have done the same thing is extremely disturbing.
Unifor Local 7378 pilots have no intention of allowing unsafe flight and duty time regulations.
To have you preach from Virginia to our pilots on the bargaining committee about fatigue rules is condescending and disrespectful. The fact is 120 Canadian pilots stand to lose their jobs, and you are waiting in the wings to take their dues if Cargojet operations move to the US where cargo airline operators operate under different fatigue rules, giving them a competitive advantage over Canadian operators. Many of these pilots whose jobs are at stake are laid off ALPA and ACPA pilots that are at least several months away from any chance of recall, given the pandemic.
To suggest that our committee would tolerate management intimidation or agree to any exemption not based on fatigue science is another example of your arrogant American association trying to interfere with our democratic collective bargaining process.
ALPA is openly raiding our members at Flair Airlines and this, too, smells like a poorly disguised attempt to raid our pilots by an association that for decades had no interest in smaller operations such as Cargojet, which had been deemed too small for your corporate model. Now that the pandemic has caused mass layoffs, ALPA is hitting new lows, clearly demonstrating your lack of trade union values.
Throughout the pandemic, Unifor has led the demand for a national aviation plan, and has held rallies, presented to parliamentary committees, and actively lobbied for a national recovery plan for the aviation industry that includes financial support for workers. Our union and I have personally coordinated and set up meetings for ALPA because they were unable to make any meetings happen with the Federal government.
Over the last year you have remained largely silent, Captain DePete, posting just four news releases in which you even mention Canada, compared to Unifor’s 230 media releases fighting for workers impacted by the pandemic. You like to collect Canadian dues and now, you are fighting to take Canadian jobs, too. I strongly suggest you put the mic down now and return to your quiet corner in Virginia and let the true trade unionists negotiate and save pilot jobs, while keeping our skies safe.
Sincerely,
Jerry ****
National President, Unifor
Captain DePete,
On behalf of Unifor and our 315,000 members, which includes 16,000 members in the air transportation sector in Canada, I am writing in utter disgust over your public statement and letter to me yesterday regarding the democratic process our members are undertaking with one of our employers, Cargojet.
Let me be crystal clear. Unifor will not tolerate interference in our democratic and pilot lead bargaining process by a self-serving US based Airline Pilots Association Intl. (ALPA) making ill-informed public statements. To be clear, it is ALPA, not Unifor, that has a history of making side deals with employers and stripping Canadian workers of their right to lead their own negotiations.
The arrogance you have displayed to interfere with our Unifor Local 7378 pilots who are in the process of voting on a proposed Memorandum of Settlement, in an attempt to stave off the loss of more than 100 jobs during a pandemic, is unconscionable. This settlement was negotiated by our pilots and is now being presented and voted on by the members. The hypocrisy of you attempting to influence this process when your pilots at Westjet and elsewhere have done the same thing is extremely disturbing.
Unifor Local 7378 pilots have no intention of allowing unsafe flight and duty time regulations.
To have you preach from Virginia to our pilots on the bargaining committee about fatigue rules is condescending and disrespectful. The fact is 120 Canadian pilots stand to lose their jobs, and you are waiting in the wings to take their dues if Cargojet operations move to the US where cargo airline operators operate under different fatigue rules, giving them a competitive advantage over Canadian operators. Many of these pilots whose jobs are at stake are laid off ALPA and ACPA pilots that are at least several months away from any chance of recall, given the pandemic.
To suggest that our committee would tolerate management intimidation or agree to any exemption not based on fatigue science is another example of your arrogant American association trying to interfere with our democratic collective bargaining process.
ALPA is openly raiding our members at Flair Airlines and this, too, smells like a poorly disguised attempt to raid our pilots by an association that for decades had no interest in smaller operations such as Cargojet, which had been deemed too small for your corporate model. Now that the pandemic has caused mass layoffs, ALPA is hitting new lows, clearly demonstrating your lack of trade union values.
Throughout the pandemic, Unifor has led the demand for a national aviation plan, and has held rallies, presented to parliamentary committees, and actively lobbied for a national recovery plan for the aviation industry that includes financial support for workers. Our union and I have personally coordinated and set up meetings for ALPA because they were unable to make any meetings happen with the Federal government.
Over the last year you have remained largely silent, Captain DePete, posting just four news releases in which you even mention Canada, compared to Unifor’s 230 media releases fighting for workers impacted by the pandemic. You like to collect Canadian dues and now, you are fighting to take Canadian jobs, too. I strongly suggest you put the mic down now and return to your quiet corner in Virginia and let the true trade unionists negotiate and save pilot jobs, while keeping our skies safe.
Sincerely,
Jerry ****
National President, Unifor
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Re: ALPA Criticizes Cargojet, Unifor over Attempts to Weaken Aviation Safety Regulations
https://financialpost.com/transportatio ... ork-to-u-s
"Cargojet warned it may lay off up to 130 pilots, move part of operations because rules create 'uneven playing field' with American cargo carriers"
So....how much money did A.J make when he liquidated his shares? I guess cargo isn't profitable, particularly when you essentially have a Canadian monopoly protected by massive barriers to entry.
He does realize most cargo operations in the U.S pay vastly more than - what's starting pay now at Cargojet - just shy of 80k CAD to start? What's starting pay at FedEx, UPS or DHL - pretty close to double in CAD with lower levels of taxation and cost of living.
What's the cost to an operation YoY to meet the current regulations? I don't get how he even believes his argument is valid considering every other airline globally is comfortably living within some realm of similar duty regulations.
At no point should he be threatening jobs, nor should the regulations be rolled back in the name of A.Js chequing account. I didn't think much of him before, but I am really shaking my head now.
"Cargojet warned it may lay off up to 130 pilots, move part of operations because rules create 'uneven playing field' with American cargo carriers"
So....how much money did A.J make when he liquidated his shares? I guess cargo isn't profitable, particularly when you essentially have a Canadian monopoly protected by massive barriers to entry.
He does realize most cargo operations in the U.S pay vastly more than - what's starting pay now at Cargojet - just shy of 80k CAD to start? What's starting pay at FedEx, UPS or DHL - pretty close to double in CAD with lower levels of taxation and cost of living.
What's the cost to an operation YoY to meet the current regulations? I don't get how he even believes his argument is valid considering every other airline globally is comfortably living within some realm of similar duty regulations.
At no point should he be threatening jobs, nor should the regulations be rolled back in the name of A.Js chequing account. I didn't think much of him before, but I am really shaking my head now.
Re: ALPA Criticizes Cargojet, Unifor over Attempts to Weaken Aviation Safety Regulations
This is who UNIFOR is. This is who Jerry D is.
CAW was always a bad actor in the CDN labour movement. Guess where Jerry D comes from?
“CLC accuses Unifor of leaving lobby group to raid another union”
https://www.google.ca/amp/s/www.cbc.ca/amp/1.4495389
CAW was always a bad actor in the CDN labour movement. Guess where Jerry D comes from?
“CLC accuses Unifor of leaving lobby group to raid another union”
https://www.google.ca/amp/s/www.cbc.ca/amp/1.4495389
