Commercial Aviation
Cargojet Divests Stake in 21 Air to Focus on Domestic Growth
Cargojet sells 25% stake in 21 Air, focusing on Canadian domestic network and ACMI services while maintaining commercial ties amid labor talks.

Canadian air cargo operator Cargojet Inc. (TSX: CJT) has officially announced the divestment of its 25 percent minority equity stake in Miami-based cargo airline 21 Air LLC. The move, announced via a company press release on April 2, 2026, marks a significant strategic realignment for the logistics provider as it navigates shifting global trade dynamics and domestic growth.
Officially, Cargojet stated that the divestment is designed to streamline its corporate operations and reallocate capital toward its core domestic network and ACMI (Aircraft, Crew, Maintenance, and Insurance) services. However, supplementary industry reporting indicates that the decision is also heavily influenced by impending labor negotiations with its pilot union, which are set to begin later this year.
Despite the formal equity split, both companies have confirmed they will maintain an ongoing commercial relationship. The original investment, acquired in August 2021, was routed through Avia Investments LLC, a joint venture between Cargojet and logistics entrepreneur Jim Crane, who serves as Chairman and Owner of 21 Air.
Strategic Realignment Under New Leadership
Focusing on Core Domestic Strengths
The divestment represents one of the first major strategic maneuvers under Cargojet’s new Chief Executive Officer, Pauline Dhillon, who officially assumed the role on January 1, 2026, succeeding founder Ajay Virmani. According to the official press release, the company is prioritizing areas where it holds a distinct competitive advantage.
“This decision strengthens our focus on our robust domestic network, ACMI and charter operations, while allowing us to deploy capital in areas aligned with Cargojet’s core strengths.”
As noted in the company’s press release, Dhillon emphasized that capital discipline and operational focus are the primary drivers behind the separation.
Financial Context and E-Commerce Growth
Cargojet’s decision to refocus on its domestic operations aligns closely with its recent financial performance. According to the company’s Q4 2025 earnings report, released on February 24, 2026, total quarterly revenue stood at CAD $284.7 million, representing a 2.9 percent year-over-year decrease. This slight decline was largely attributed to macroeconomic conditions and geopolitical tensions impacting international ACMI and charter revenues.
Conversely, the earnings report highlighted a surge in domestic overnight revenue, which grew by nearly 17 percent due to robust Canadian e-commerce demand. While net income fell 63 percent year-over-year to CAD $26.6 million, driven by an additional $37.7 million in net finance costs, operational profitability remained resilient. The company reported an Adjusted EBITDA increase of 3.6 percent to CAD $95.0 million. Cargojet currently operates a fleet of 41 Cargo-Aircraft to support these operations.
The Labor Union Factor
ALPA Pressures and Cabotage Concerns
While the official corporate messaging focuses on capital reallocation, third-party reporting highlights a critical labor component to the divestment. According to an April 2026 interview with 21 Air owner Jim Crane published by FreightWaves, the impending expiration of pilot contracts played a pivotal role in the decision.
The Air Line Pilots Association (ALPA), which represents aviators at both Cargojet and 21 Air, has historically scrutinized the cross-border partnership. In 2021, ALPA petitioned the U.S. Department of Transportation to block Cargojet from loaning aircraft to 21 Air. The union argued that the arrangement functioned as a loophole allowing a foreign carrier to bypass U.S. cabotage rules, which strictly restrict foreign Airlines from operating domestic routes within the United States.
Upcoming Contract Negotiations
According to the FreightWaves report, Cargojet’s existing labor agreement with its pilots is scheduled to expire in June 2026. Crane indicated in his interview that Cargojet opted to sell its stake to prevent the union from leveraging the complex cross-border corporate structure during these critical upcoming contract negotiations.
What Lies Ahead for 21 Air
Fleet Expansion and Leadership Changes
The separation comes at a time of significant transformation for 21 Air. Since Crane acquired the company in 2021, the Miami-based operator has expanded its fleet from approximately five aircraft to 16, comprising a mix of Boeing 767 and 757 freighters. The airline currently operates domestic U.S. networks for major logistics players including Amazon and DHL, alongside its work for Cargojet.
Furthermore, 21 Air is preparing to enter the long-haul international cargo market. Industry data indicates the carrier is in the process of acquiring larger Boeing 777 freighters to support this expansion. This growth is being overseen by a new leadership team; Interim CEO Keith Winters recently replaced Tim Strauss, whose contract expired in February 2026.
Ongoing Commercial Ties
Despite the dissolution of their equity partnership, the operational relationship between Cargojet and 21 Air will persist. Both entities have publicly confirmed their intent to continue collaborating on select commercial opportunities. According to April 2026 fleet data from ch-aviation, 21 Air currently dry-leases and wet-leases select Boeing 757 and 767 freighters from Cargojet. These standard commercial leasing arrangements are expected to continue independently of any equity ownership.
AirPro News analysis
At AirPro News, we view Cargojet’s divestment as a pragmatic response to a bifurcated air cargo market. The company’s 17 percent growth in domestic overnight revenue underscores the enduring resilience of domestic e-commerce, even as international air freight faces headwinds from geopolitical friction and tariff uncertainties. By shedding its minority stake in a U.S. operator, Cargojet not only insulates itself from complex cross-border labor disputes ahead of a critical union negotiation cycle, but also frees up management bandwidth to capitalize on its highly profitable Canadian domestic monopoly. For 21 Air, the split provides a clean slate to pursue its ambitious Boeing 777 long-haul expansion without the regulatory baggage of foreign ownership scrutiny.
Frequently Asked Questions
Why did Cargojet sell its stake in 21 Air?
Officially, Cargojet stated the sale allows the company to focus capital on its core domestic and ACMI operations. However, reporting by FreightWaves indicates the move was also designed to simplify the company’s corporate structure ahead of pilot union contract negotiations in June 2026, avoiding potential disputes over cross-border flying rules.
Will Cargojet and 21 Air continue to work together?
Yes. Both companies have confirmed they will maintain a commercial relationship. 21 Air currently leases several Boeing aircraft from Cargojet, and these standard commercial leasing arrangements are expected to continue.
Sources
Photo Credit: Cargojet
Commercial Aviation
Qantas Weighs Order for 20 Boeing or Airbus Wide-Body Jets
Qantas is evaluating an order for ~20 wide-body jets, choosing between the Boeing 787 and Airbus A350-900 amid tight supply.

This article summarizes reporting by Reuters by Tim Hepher.
Qantas Airways Limited (QAN) is currently evaluating a potential order for approximately 20 new wide-body aircraft, weighing the Boeing 787 Dreamliner against the Airbus A350-900. The confidential negotiations, reported on June 4, 2026, highlight the carrier’s ongoing fleet modernization efforts amid a highly constrained global aircraft supply chain.
According to Reuters, the Australian flag carrier is engaging with both The Boeing Company and Airbus SE to secure future delivery slots. The potential acquisition follows a broader industry trend of Airlines moving aggressively to lock in wide-body production capacity well into the next decade. Representatives for both Manufacturers declined to comment on the reported talks, while a Qantas spokesperson stated the airline routinely discusses long-term fleet planning with aerospace companies but has no immediate announcements.
Expanding the wide-body renewal program
The reported negotiations represent a continuation of a multi-billion dollar fleet overhaul at Qantas. On August 24, 2023, the airline announced firm Orders for 24 Boeing and Airbus wide-body jets designed to gradually replace its aging Airbus A330 fleet.
In addition to the A330 replacement program, the airline holds firm orders for 12 specially modified Airbus A350-1000ULR aircraft. These ultra-long-range jets are designated for “Project Sunrise,” the carrier’s planned non-stop flights connecting the Australian east coast directly to destinations including London and New York.
The newly reported talks for 20 additional airframes suggest Qantas is looking to finalize the next phase of its long-haul capacity requirements. Securing these aircraft would provide the airline with the necessary hardware to expand international routes and complete the retirement of older twin-aisle models.
Global supply chain pressures drive early orders
The timing of the Qantas negotiations aligns with broader market dynamics. The global aviation sector is experiencing significant supply chain bottlenecks and a shortage of available aircraft, prompting carriers to plan their fleet requirements further in advance than historically typical.
Consequently, major international carriers are competing intensely for limited production slots at both Airbus and Boeing. Reuters reported that Singapore Airlines is concurrently engaged in separate discussions with the manufacturers to acquire at least 50 wide-body aircraft to support its own network expansion.
AirPro News analysis
We view the reported Qantas negotiations as a standard hedging strategy in an environment where production delays are the norm. By pitting the Boeing 787 Dreamliner against the Airbus A350-900, Qantas maximizes its leverage to secure favorable pricing and guaranteed Delivery timelines. The airline’s existing familiarity with both the 787 and the A350 families means integration costs for either selection would be relatively low, making this a pure competition on economics, range capabilities, and slot availability.
Sources: Reuters, Qantas Airways Limited
Photo Credit: Qantas
Commercial Aviation
Norwegian Air Shuttle Buys Leased Boeing 737-800 in Fleet Strategy
Norwegian Air Shuttle will purchase a leased Boeing 737-800 in Q2 2026, gaining NOK 85M and saving NOK 10M annually as part of its fleet ownership plan.

This article is based on an official press release from Norwegian Air Shuttle ASA.
Norwegian Air Shuttle Purchases Leased Boeing 737-800 in Strategic Fleet Move
On June 3, 2026, Norwegian Air Shuttle ASA announced an agreement to purchase a single Boeing 737-800 aircraft that is currently operating under a lease agreement with the airline. According to the official company press release, the transaction is expected to close in the second quarter of 2026, subject to customary closing conditions. Norwegian confirmed it has already secured long-term financing for the acquisition.
The financial impact of this single-aircraft purchase is notable. Upon completion of the transaction, Norwegian expects to record a non-recurring accounting gain of approximately NOK 85 million. The airline stated in its release that this gain reflects the favorable pricing achieved for the aircraft and the corresponding reduction of existing lease liabilities. Furthermore, the transaction is projected to generate recurring cost savings of approximately NOK 10 million per year, net of financing costs.
This move is not an isolated event but rather a continuation of a broader fleet strategy. The company noted that this transaction follows a similar, larger-scale purchase of 13 leased Boeing 737-800 aircraft in 2025, which was also completed on attractive long-term financing terms.
Financial Impact and Fleet Strategy
Immediate and Recurring Gains
The transition from leasing to owning aircraft represents a core pillar of Norwegian’s post-pandemic financial restructuring. According to industry research reports detailing the airline’s market position, the 2025 purchase of 13 aircraft resulted in a substantial non-recurring gain of NOK 858 million. The current 2026 transaction, while smaller in scale, provides a proportional NOK 85 million boost and serves as a blueprint for structurally lowering unit costs.
Norwegian is currently operating from a position of financial strength. Industry data highlights that the Norwegian Group delivered a record operating profit (EBIT) of NOK 3,732 million in 2025. This momentum continued into early 2026; despite the first quarter traditionally being the weakest for European carriers, Norwegian reported a significantly narrowed operating loss of NOK 220 million in Q1 2026, compared to a NOK 611 million loss during the same period in 2025.
The Shift Toward Asset Ownership
During the company’s Q1 2026 earnings call, management indicated a strategic goal to eventually own more than 50 percent of its fleet. Owning aircraft is viewed by the airline as significantly more capital cost-effective in the long run compared to leasing. In its official announcement, the airline highlighted the core benefits of the purchase:
“enhancing financial flexibility, and increasing asset ownership to support long-term operational and strategic growth, in addition to reduced overall ownership cost.”
, Norwegian Air Shuttle press release
As of early 2026, Norwegian operates a streamlined fleet of approximately 95 aircraft, consisting of Boeing 737-800s and newer 737 MAX 8s. According to market research, the company plans to grow this mainline fleet to 104 aircraft by the summer of 2028. Additionally, the integration of regional carrier Widerøe, acquired in early 2024, adds 51 regional aircraft to the broader Norwegian Group portfolio.
Broader Industry Context
Navigating Boeing Delivery Delays
The global Aviation industry continues to grapple with severe aircraft delivery delays, particularly concerning the Boeing 737 MAX family. Industry reports indicate that Norwegian currently has 80 Boeing 737 MAX 8 aircraft on order. While Norwegian noted in April 2026 that Boeing was meeting its revised delivery schedules, broader supply chain uncertainty makes securing existing capacity crucial. By purchasing leased 737-800s that are already in its possession, Norwegian guarantees it retains the necessary capacity to meet high summer travel demand without relying entirely on new factory deliveries.
AirPro News analysis
We view this transaction as a highly disciplined execution of Norwegian’s internal strategic initiative, known as “Program X.” According to industry research, Program X is aimed at delivering over NOK 1.25 billion in recurring profitability improvements and cost savings by the end of 2027. The NOK 10 million in annual savings generated from this single jet serves as a micro-example of how the airline is structurally lowering its unit costs to remain competitive against ultra-low-cost carriers in the European market.
Furthermore, macroeconomic factors are playing a significant role in these acquisitions. Aircraft leases and purchases are typically denominated in US Dollars (USD). The strengthening of the Norwegian Krone (NOK) against the USD over the past year has created highly favorable conditions for Norwegian to buy out USD-denominated lease liabilities. This currency advantage is a key driver behind the significant accounting gains realized in both the 2025 and 2026 fleet transactions.
Frequently Asked Questions (FAQ)
- When is the aircraft purchase expected to close?
The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2026. - What are the financial benefits of this transaction?
Norwegian expects to record a non-recurring gain of approximately NOK 85 million upon completion, alongside recurring annual cost savings of approximately NOK 10 million. - How large is Norwegian’s current fleet?
As of early 2026, Norwegian operates approximately 95 mainline aircraft, with plans to expand to 104 by the summer of 2028. The wider group also includes 51 regional aircraft from Widerøe.
Sources
Photo Credit: Norwegian Air Shuttle ASA
Aircraft Orders & Deliveries
Singapore Airlines in Talks for 50-Plus Widebody Jets
Singapore Airlines is negotiating with Airbus and Boeing for at least 50 widebody jets, evaluating the A350-1000 and 777-9.

This article summarizes reporting by Reuters.
Singapore Airlines (SIA) is in early-stage negotiations with Airbus SE and The Boeing Company to acquire a minimum of 50 widebody passenger aircraft, evaluating the Airbus A350-1000 and the Boeing 777-9 to support its next decade of capacity expansion.
The procurement discussions, reported by Reuters on June 4, 2026, follow the carrier’s record financial performance and come amid ongoing delivery delays for Boeing’s 777X program. A multi-billion-dollar order of this magnitude would provide a substantial backlog boost to either manufacturer while signaling the airline’s commitment to long-haul growth despite industry headwinds such as high fuel costs.
Fleet renewal and widebody competition
The negotiations center on the largest twin-engine aircraft currently available or in development. Singapore Airlines is weighing the Boeing 777-9, which features an approximate seat capacity of 400, against the Airbus A350-1000. According to the Reuters report, the exact split of the potential order remains undecided. The final agreement could result in a winner-take-all contract or a split purchase, and it may include options for dozens of additional airframes.
Industry sources indicate the talks could also serve as a gauge for a proposed larger variant of the A350. Airbus has previously floated the concept of an A350-2000 to compete more directly with the capacity of the Boeing 777X. Engaging with a premier long-haul operator like Singapore Airlines provides the European manufacturer with critical market feedback on the viability of the stretched design.
When asked about the negotiations, a Singapore Airlines spokesperson declined to confirm the specifics.
“[We] regularly review fleet renewal plans and decline to comment on any confidential discussions that we may or may not be having,” the spokesperson told Reuters.
Financial strength amid delivery delays
The airline enters these capital-intensive discussions from a position of significant financial strength. On May 14, 2026, SIA Group reported a record S$20.52 billion in revenue for the financial year ending March 31, 2026. The company also posted an operating profit of S$2.37 billion, representing a 39 percent year-over-year increase driven by robust travel demand.
While competitors have scaled back capacity expansion due to rising jet fuel prices, Singapore Airlines has publicly committed to continuing its growth trajectory. However, the carrier’s fleet planning must account for ongoing supply chain and certification challenges at the original equipment manufacturers.
Singapore Airlines is a longstanding operator of the Boeing 777 family and an early customer for the 777X program, holding firm orders for 31 of the 777-9 variant. The program has faced years of certification and production delays. Aviation Week reported in May 2026 that the airline does not expect to take delivery of its first 777-9 during the current fiscal year, which concludes on March 31, 2027.
AirPro News analysis
We view this potential 50-aircraft order as a critical leverage play by Singapore Airlines. The carrier is negotiating from a position of peak profitability while both Airbus and Boeing are eager to secure marquee widebody commitments. The ongoing delays to the Boeing 777X program place Boeing in a defensive posture, as the manufacturer needs to retain the confidence of its early launch customers.
Conversely, Airbus is utilizing these talks strategically. By floating the A350-2000 concept to Singapore Airlines, Airbus is testing the waters for a high-capacity twin-engine jet that could undercut the 777-9’s market dominance before the Boeing aircraft even enters commercial service. The outcome of these negotiations will likely influence the broader industry’s long-haul fleet strategies well into the 2030s.
Sources: Reuters, Singapore Airlines
Photo Credit: Singapore Airlines
-
Regulations & Safety17 hours agoNTSB Reports United Airlines Flight 169 Newark Approach Incident
-
Regulations & Safety6 days agoAirbus Issues Safety Warning on Non-Certified Cockpit Window Equipment
-
Technology & Innovation2 days agoGE Aerospace Completes Ground Test of Hybrid Electric Engine System
-
Defense & Military6 days agoU.S. Air Force Lifts T-38 Talon Fleet Pause After Safety Inspections
-
Space & Satellites6 days agoBlue Origin’s New Glenn Rocket Explodes During Test at Cape Canaveral
