Cargojet Inc., a leading Canadian cargo airline listed on the TSX, is pursuing federal funding to establish a new aircraft maintenance, repair, and overhaul (MRO) facility in Ontario. According to a federal lobbying registration, the Mississauga-based company has hired a lobbyist to advocate for grants, loans, or other financial incentives from Innovation, Science, and Economic Development Canada (ISED).
The proposed MRO facility would service Cargojet’s fleet of 41 Boeing 757 and 767 freighters and provide maintenance services for other airlines, creating significant employment opportunities in the aviation sector. While no specific cost estimate was disclosed, such facilities often require tens of millions of dollars in investment and generate hundreds of skilled jobs.
Cargojet’s plans reflect a growing trend in aviation to localize MRO capabilities, reversing decades of outsourcing to low-wage regions in Asia and South America. The project was briefly mentioned in a corporate presentation to investors in September, but details regarding the location or timeline remain unclear.
To secure government backing, Cargojet has engaged Mathieu Ouellet, a KPMG lobbyist specializing in economic advisory services. Ouellet is tasked with arranging meetings with federal officials and Members of Parliament to advance the initiative.
This funding request follows Cargojet’s recent $160 million, three-year agreement with China-based Great Vision HK Express to operate charter cargo flights between Hangzhou, China, and Vancouver, Canada. The deal is part of Cargojet’s strategy to support the burgeoning Chinese e-commerce market.
Founded 22 years ago, Cargojet has grown into a $900 million annual operation, employing over 1,800 Canadians and serving 16 airports nationwide. This latest initiative underscores the airline’s commitment to expanding its domestic footprint while supporting global e-commerce logistics.