Cargojet Airways, a major player in the Canadian air cargo industry, has made a significant strategic decision by announcing the cancellation of its remaining orders for four converted Boeing 777-200LR(MF)s. This move, announced on January 15, marks the airline’s departure from its initial plans to incorporate 777 Family aircraft into its fleet.
The decision is rooted in the carrier’s assessment of the international air cargo market, which is predicted to remain subdued in the short to medium term. Consequently, Cargojet deems it strategically unwise to introduce the 777-200LR(MF) variant into its operations under the current market conditions. Instead, the airline will focus on leveraging its existing 767-200 and B767-300 freighter fleets to support its organic growth strategy, as stated by Ajay Virmani, its executive chairman.
Despite stepping back from the 777 market for now, Cargojet has completed the necessary operational groundwork to re-enter this market segment if economic conditions improve. The airline has also retained the rights to future conversion slots, providing flexibility for potential future expansions.
Cargojet was initially the launch customer for the Mammoth Freighter conversion of the 777, with orders for two 777-200(LR)s and options for additional 777-200LRs and -300ERs. The commitment later expanded to four 777-200LR(MF)s, which were tentatively slated for DHL Express, and four 777-300ER(MF)s. However, as the air cargo market softened, Cargojet gradually scaled back its 777 plans, leading to the complete exit from these orders.
Mammoth Freighters, the entity behind the conversions, confirmed to Cargo Facts that the initial two 777-200LR(MF)s were already undergoing conversion at Fort Worth Alliance, pending certification.
In addition to the 777 cancellation, Cargojet Airways highlighted its excess inventory of four 757-200(PCF)s, which it is considering dry-leasing or selling. The airline also owns two B767s earmarked for future conversion, aligning with anticipated market recovery in the next few years.
Cargojet’s current fleet comprises 41 aircraft, including seventeen Boeing 757-200(PCF)s, three 767-200(ERBDSF)s, four 767-300ER(BCF)s, and seventeen 767-300ER(BDSF)s. By 2025, Cargojet anticipates maintaining a fleet of 41 aircraft, with a reduction in its 757 fleet to 15 and an increase in its 767 fleet to 26. This projection is based on the sale and lease of two surplus 757s and the conversion and induction of the two owned B767s.
