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Photo Credits: Kelowna Flightcraft
Bad news for Kelowna Flightcraft as they confirmed on Wednesday they were unsuccessful in renewing a long held contract with Purolator and Canada Post mail.
Kelowna Flightcraft has been a carrier for cargo products for Purolator since 1977. According to Flightcraft’s President Tracy Medve the move by Purolator is disappointing. The current contract will end at midnight on March 31st, 2015.
“Purolator’s decision to change to a business model that allows the new air carrier to compete with them by allowing them to carry third party product is mystifying, particularly in light of the 99.3% reliability we have provided them the last 10 years,” says Medve.
Mississauga, Ont. company Cargojet has been awarded the domestic air contract for the Canada Post group of companies. The agreement will be for an initial seven year term and projected revenues are estimated at $1 billion.
Jacques Cote, Groups President for Canada Post says "Canada Post is undergoing a major transformation as customer demand shifts from mail to parcel delivery with online shopping," and adds that "this move will drive operational efficiencies, lower our transportation costs and help ensure our parcel delivery remains competitive from a cost and reliability perspective."
Kelowna Flightcraft maintains that the loss of the substantial contract does not mean the end of the company. They operate and lease over 70 aircraft and are still Canada’s largest cargo operator.
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