Montreal-based Royal Aviation has acquired the assets of CanAir Cargo, and added the Ontario-based overnight-freight carrier's six leased Boeing 737-200 freighters to its fleet.
Royal plans to maintain CanAir's coast-to-coast cargo network, which produced revenues of C$49 million in 1996, and will convert at least three additional 737s to freighters. The merged company plans to boost total sales to C$300 million by 1998, including its existing passenger-charter business.
Royal plans, "in the longer term", to replace the 737 freighters with new convertible aircraft to increase the capacity of its cargo network and to replace its five passenger Boeing 727-200s.
Source: Flight International
