Canada 3000 Cargo head to re-launch national cargo airline

TORONTO (Feb. 7, 2002) — The head of Canada 3000 Cargo has agreed to buy the business from the defunct airline’s bankruptcy trustee.

Ajay Virmani, president and chief executive officer of Canada 3000 Cargo, said the company will expand operations and position itself as a premium overnight domestic air cargo carrier. It will offer overnight schedules among 12 destinations across Canada.

“The new cargo airline will be sensitive to the needs of shippers in Canada’s smaller centres and cities, which are now underserved,” Virmani said. “For example, Regina, Saskatoon, Moncton, and St. John’s will enjoy daily cargo service at a reasonable price.”

The airline will operate on a wet-lease basis a fleet of four B727-200 freighters, one B737 freighter, two Beech 99 aircraft, and one Metro II aircraft.

It will also change its name later this month, further distancing itself from its bankrupt affiliate.

Canada 3000 Cargo’s revenue exceeded $65 million in 2001, Virmani said. However, that included international business. Canada 3000 Cargo lost that capacity when its parent company failed in November. Canada 3000 acquired the cargo division when it bought Royal Aviation last year.

The company will begin operations under its new name on Feb. 22, from its headquarters in Mississauga, Ont.