The Ontario Superior Court of Justice (Commercial List) has approved Cargojet’s plan to attract more foreign investment by amending its articles of incorporation in line with new rules created by the federal government in 2018. The change allowed Canadian carriers up to 49 percent foreign ownership, up from 25 percent. The new rules allow more foreign money but they also cap the shareholder voting power of non-Canadian investors at a total of 25 percent. Cargojet has been growing by leaps and bounds in recent years and it now operates 26 aircraft with overnight service to 15 North American cities and some international destinations.
One of its biggest customers for the eight million packages it delivers each week is Amazon and the world’s biggest online shopping company announced last August that it wanted a piece of Cargojet. The company announced it would buy up to 14.9 percent of Cargojet’s variable voting shares and guarantee up to $600 million worth of business over the next six years. Amazon runs its own air cargo business and has also invested in freight carriers ATSG and Atlas.