ExelTech Aerospace signs agreement with CanJet
ExelTech Aerospace Inc. announced today the signing of a GTA with CanJet Airlines, for the maintenance of its fleet of nine Boeing 737 aircraft.
September 19, 2007 By Carey Fredericks
MONTREAL, May 16 /CNW Telbec/ – ExelTech Aerospace Inc. announced today the signing of a General Terms Agreement (GTA) with CanJet Airlines, Canada's third largest scheduled carrier, for the maintenance of its fleet of nine Boeing 737 aircraft. Under this long-term agreement, CanJet will contract ExelTech to perform heavy maintenance checks, including major structural inspections, on CanJet's
fleet of Boeing 737-500 aircraft. ExelTech will induct the first Boeing into maintenance at the Company's Quebec City facility in May 2006. CanJet is also contracting ExelTech to provide on-demand line maintenance services in support of the airline's flights at Montreal's Pierre Elliot Trudeau International Airport.
"I am pleased that Canada's third largest airline has selected ExelTech as its maintenance provider," said Derek Nice, President and CEO of ExelTech. "Having CanJet's people place their confidence in the skills and dedication of our workforce is a source of pride for everyone at ExelTech. We will show CanJet that their trust is well-founded."
Jim Penwell, CanJet Airlines' Director of Maintenance, stated, "CanJet Airlines is pleased to enter into this agreement with ExelTech. Their proven track record, combined with their knowledge and hands on experience working on the Boeing 737, were major deciding factors in our decision to award this contract to ExelTech."
Reduced Exposure to US Dollar
"This new contract is in line with our strategic goal of reducing ExelTech's exposure to the rising Canadian dollar," added Mr. Nice. "One way for us to alleviate the impact of a rising dollar is to continue to increase our Canadian dollar-denominated revenues. This agreement with CanJet is one more step in that direction. We estimate that approximately 80% of our revenues were earned in US dollars in our financial year ended March 31, 2006. Today we estimate that our US dollar revenues in the current quarter should be
closer to 70%."
ExelTech has also implemented a comprehensive hedging program, securing a proportion of its future foreign exchange requirements on terms that are more favourable than current spot market rates.
About CanJet Airlines
CanJet Airlines is a division of IMP Group Limited, Halifax, Nova Scotia. For 39 years IMP has been a world-class leader in aviation and aerospace, and was recently selected as one of Canada's Top 50 Best Managed Companies. CanJet Airlines serves fourteen destinations in Canada and the U.S., including
St. John's, Deer Lake, Moncton, Halifax, Ottawa, Montréal, Toronto, Calgary, New York LaGuardia, St. Petersburg, Sarasota Bradenton, West Palm Beach, Fort Lauderdale and Orlando, Florida.