Volume 2 Summer 2004

The
Newsletter
for
Employees
of
Cargojet/Starjet
Although we have been operating cargo aircraft for the past
three years successfully, we had only been in the passenger
business for a few months when we were asked to submit a
final quotation for the Liberal Party.
We had three weeks to get the aircraft ready, reconfigure and
make all the arrangements from maintenance, security and
safety, caterers, ground handlers, etc. across the country to
make this project a reality. The Executive Management Team
and our Board of Directors were not even sure if we as an
organization could accept such a challenge in such an
early stage of our passenger existence. However, it was the
confidence and positive attitude of our Airways team during a
board meeting and conference call, which permitted us to
accept this challenging project, no doubt, endless hours of
work went into the success of this project.
Ajay welcomes Prime Minister Paul Martin &
First Lady Sheila Martin Aboard Starjet
Flying High
"Congratulations On A Job Well Done!"
Thank you to the professional and efficient team of Starjet
Airways for successfully completing the charter campaign
flights for the Federal Liberal Party of Canada.
We flew our Prime Minister Paul Martin, members of the
Liberal Party of Canada and media, on this 36-day operation
flying 48,250 kms, 53 flight legs and 71 flight hours. Our on
time performance for this project was 100% and the entire
charter was extremely successful from every aspect.
We are extremely fortunate to have a very professional
and dedicated “Airways” unit as part of our One Team. This
is what makes our organization so unique and provides the
competitive edge to our commercial operations on the
Cargo and Passenger sides of the business. The combination
of both our professional commercial team and the airways
team certainly make us unique and provides us with an
extremely synergistic position in the market place.
We are approaching the peak season for cargo and another
charter for Starjet Airways to fly eight teams of World Cup
of Hockey 2004 across North America. To everyone else,
these are challenges but the Cargojet/Starjet team calls
it routine!
KEEP UP THE GREAT WORK!
Best regards,
The decision to fly the Prime Minister and the Liberal Party
was an extremely challenging one for us.
AJAY K. VIRMANI
CJD
-GCJ
C-G
“STARJET”
“SELLING FIRST CLASS SERVICE”
in the sport and high-end corporate travel
their efforts. In so many ways, Starjet is
market. Our first customer, the Toronto
a team. Without the combined efforts of
Blue Jays are already enjoying first
all the team players, we would never be
class service on board our B727 as they
the success we are today…and we're just
travel through their season. In April, we
out of the starting gate! I have seen the
successfully operated our first series of
attention to detail that every department
corporate charters to the Masters Golf
in this company strives for in their efforts
Tournament in Augusta Georgia, which
to make Starjet an exemplary airline.
included a group from the prestigious
Magna Golf Club. Presently, our second
Integrity and honesty are essential
aircraft is crisscrossing Canada with
components in my job as Director of
Prime Minister Paul Martin and the
Sales for Starjet. My personal goal as an
Liberal Party during the federal election
employee of Starjet is to under-promise
Steve LeMesurier Director of Sales Starjet
campaign. As an indicator of our
and over-deliver. I believe that we have
commitment to provide the ultimate in
an exceptional product for a niche
My career in commercial airline sales
customer service, Starjet retrofitted our
market. Customer service is all about
that began thirty years ago at CPAir
second aircraft to meet the Liberals'
people.
and culminated this past January at
requirements. This summer, we will be
delivery of first class service to each and
Air Canada had its ups and downs, but
operating some adhoc charters for teams
every passenger will continue to reinforce
despite the challenges associated with
such as the Hamilton Tiger Cats and the
our already proven record in all aspects
the Canadian airline industry, I can
New York Yankees.
Beginning in late
of exceptional customer care. It is a
honestly say that I have always loved
August through to mid September, Starjet
pleasure to sell a product that I believe in!
my job. Now, into my fourth month as
will be flying the teams for the World Cup
Director of Sales for Starjet, I have
of Hockey between Ottawa, Montreal,
easily made the transition from a major
Toronto, Minneapolis and Columbus.
global airline to a new airline focussed
This is an exceptional opportunity for
specifically on a niche market. Previously,
Starjet to show off its premiere service to
I had been a sales specialist in the sport
the best professional hockey players in
sales market.
On a daily basis I dealt
the world, as well as to senior executives
with many sports organizations, from
of NHL teams. In late September, Starjet
professional sports teams, to Olympic
will be operating a series of charters to
athletes and related media travel, to
the Ryder Cup of Golf, which will be held
national amateur sports federations and
near Detroit.
even to local Little League sports teams.
providing
Regardless of the size or the importance
corporate clients, travel agents, incentive
of the group, I respected their individual
houses and charter brokers. The word
needs and always tried to deliver as much
is out!
personalized service as possible within
reputation as a safe, reliable, customer-
the constraints of a huge airline structure.
driven, value-added airline.
Starjet has afforded me the chance to
No single athlete or group of athletes has
use my expertise and many established
ever won a championship without a team
relationships to identify new opportunities
of people supporting and encouraging
Every working day I am
quotations
from
potential
Starjet is already earning a
Honestly
caring
about
the
“CARGOJET”
“CAN DO”
This philosophy is a major component of
We will continue with our philosophy of
delivering what we sell. It makes our jobs
making it easy for our customers to do
in sales that much easier. We can go to
business with us, from the initial contact,
the market and sell with confidence
booking,
knowing each of you are going to do your
correct billing makes dealing with us easy
part to make it happen. Our time in sales
before, during and after the sale.
tender,
carriage,
retrieval,
is more productive and much better spent
developing new business versus putting
I am a firm believer in continually fostering
out fires, meeting customers on service
positive relationships with our customers
issues or tracing shipments.
and understanding their business and
competitive environment. Attitude, quality
Roger Arbour Director of Sales Cargojet
Our best form of advertisement out in the
of service, effort, caring and compassion
market is our consistent, reliable service.
towards our customers business and
It leads to new and repeat business and
support of us, will continue to form the
allows us to make the revenue objectives
foundation for our success in the future.
necessary to sustain our growth.
Two simple little words with a lot of
meaning when it comes to Cargojet.
Our opportunities in the future are great.
The graphic below illustrates the basic
We have all of the necessary components
components,
the
in place to grasp and take advantages
It should
of these opportunities. We all have a role
which
serve
as
Our "CAN DO" attitude and philosophy is
foundation for our success.
what differentiates us in the marketplace
be viewed as the circle of opportunity.
from our competitors. On a daily basis,
Don't lose focus, stay within this circle
the Cargojet team demonstrates to our
and it makes it very difficult for our
Our
customers our ability to adapt and
competitors to penetrate.
CULTURE" our "CAN DO" attitude.
to play.
strength
is
our
"CORPORATE
positively react in our ever changing
operating environment to deliver our
service commitments to them.
“CAN DO ATTITUDE”
Every night, across the country our staff
deals with a different deck of cards.
There is the base plan on paper and then
there is reality - the many variables and
adjustments required to bring everything
together, make it work and deliver
POSITIVE
BUSINESS
RESULTS
SUCCESS
the plan in order for us to meet our
contractual and performance obligations
in a manner transparent to our customers.
Our product to sell is ultimately service.
What makes us stand out in the marketplace is our consistent, reliable service
all delivered by our staff with an attitude
that indicates to the customer we care
and sincerely appreciate their business.
TEAMWORK
REPEAT
BUSINESS
“INCREASING FUEL SURCHARGES”
So what can we do about it? Maximizing
our efforts to ensure our fuel burn is
minimized is key. Our aircraft burn fuel at
a rate of approximately 5200 litres per
hour, do the math. 800 hours per month
translates to 50.0 million litres of jet fuel
per year. A 5% improvement in our burn
rate results in a savings of 2.5 million
litres or $1.25 million dollars at 50 cents
a litre. At least the math is easy. It
requires serious effort by all to achieve
this however. Fuel uplifts, cruising
speeds, utilizing GPU's versus the APU
are all areas that require constant daily
focus to minimize fuel burn.
Dan Mills Executive Vice President
Chief Financial Officer
As I write this submission to Jetvibes;
todays' news suggests that fuel prices
are rising even further. Record prices for
a barrel of crude top $42. We have not
seen this in over 20 years. What does this
mean for Cargojet?
The price of jet fuel although not directly
related to the pump price at your local
gas station share some similarities. It
was not so long ago that we saw 60 or 65
cents at the pump on a regular basis.
Now we line up at the local gas station if
the price gets down to 69 cents. What a
bargain! The message here is that fuel
prices are higher and are here to stay.
The new normal suggests that jet fuel
prices are on average forever higher.
To put it all in clear perspective; our
average jet fuel price per litre traditionally
has hovered in and around the 42 cents
per litre mark. For the first 6 months of
this year it has been substantially higher
than this and currently sits at 50 cents
per litre. We topped 54 cents in the month
of June. With a $24.0 million annual fuel
bill, a 25% increase in jet fuel hits the
bottom line to the tune of over $6.0 million
without a corresponding recovery from
our customers via a fuel surcharge.
Additionally, assessing a fuel surcharge
to our customers is unfortunate but
necessary. The additional revenue it
generates however falls well short of the
increase in our cost. The market place
has a hard time absorbing such large
increases in such a short time span so our
ability to recoup requires more patience.
The reality though, and it is our belief, that
fuel prices at 42 cents or lower are a thing
of the past.
Other challenges that the organization
faces centre around the rising costs of
running the airline. Utilization of the
aircraft and the hours per month and their
impact on our cost base is a constant
challenge. Again to put it in simple terms
the more hours we can fly for the same
or similar cost, the better the yield. So we
continue to review all of our costs on a
per block hour basis with a view to drive
these costs down ever further.
Finally on a very positive note, revenue
remains very solid and predictable. Our
customers continue to support our
network. We have added the day light
flight Tuesday to Friday, which adds more
revenue to the system and enhances our
overall service. We are very pleased with
the support we have received thus far
but also recognize that we have a great
deal of room for growth. The revenue from
the west on this flight has been most
impressive.
As I have said many times, we are in a
challenging and difficult business. This
industry has a track record of poor
performance and low yield or no yield.
Although we have our challenges
however, we are confident that we have
the right resources and more importantly
the right people to solve these challenges
both operationally and financially.
Feedback is important and if any
employee here at Cargojet has an idea
that enhances our operation or reduces
our cost, please let us know.
Let's hope for stability in our fuel prices
and a better finish to the year. Thanks
for your continued support, hard work
and dedication.
“LIBERAL CHARTER”
Prime Minister Paul Martin in Saskatoon with the Starjet Aircraft
Ajay welcomes, the First Lady,
Mrs. Sheila Martin on board Starjet
The Prime Minister with the Crew & Staff of Starjet Airways
“ANNOUNCING THE NEW HANGAR IN YHM”
which could be adversely affected if
carried out outside; it provides the
necessary
space
for
key
support
functions such as parts/material supply
and structural repairs to be consolidated
at the main operational base; it provides
deicing of aircraft in the winter; and
lastly, it further reduces our dependence
on outside suppliers for critical services.
This is a significant step in the evolution
of the airline and will play a key role in the
future success of the business.
Al Pidgeon Senior V.P. of Airways
On June 18th, 2004, agreements were
signed with Hamilton International and
Aviero
Constructors
Ltd.
for
the
construction of the aircraft maintenance
hangar in YHM.
This facility will be built adjacent to the
Westjet facility, and includes 26,000
square feet of hangar, 5,000 square feet
of shops and offices, and 71,000 square
feet of apron.
Preliminary arrangements will commence
immediately with on-site work starting
in early August. The hangar is expected
to be ready for aircraft hangarage by
December of this year with full occupancy
by January of next year.
In the interim, Cargojet has entered
into a lease agreement for the former
FedEx buildings at YHM. This facility
will accommodate aircraft maintenance
while the hangar is completed. GSE
maintenance will also move the Fedex
facility and remain there indefinitely.
The construction of the hangar has
many advantages: it provides a proper
environment for the performance of work
NEW Cargojet Maintenance Hangar at YHM
“CARGOJET SAFETY MANAGEMENT SYSTEMS”
SMS emphasizes a proactive approach
For the Risk Management to work, every
in identifying hazards and includes all
report will be subjected to a formal,
areas of the organization. Even though
documented risk analysis, which can
some areas are not directly involved
have only two outcomes: either you
with day-to-day flight operations, they
accept the risk or reduce (or eliminate)
potentially have an indirect affect on
the risk. Quality assurance happens at
aviation safety. SMS looks at Cargojet
two levels: the operational level in the
as a whole.
form of audits and the risk management
system level, usually through analysis.
What does that mean for us? We will
Part of the process takes the form of
build upon our existing infrastructure;
follow-up on decisions to see if the
Flight Safety, Quality Assurance and
decisions have addressed the risk.
Health & Safety, which will continue to
function in their respective areas. SMS
What's in it for TC? Mainly better use of
has different methodologies; however it
resources. They want to focus more at
shares a common purpose with existing
the systems level and use the SMS as
Transport Canada (TC) has mandated that
programs - improving safety. SMS will
a performance indicator how well and
all Approved Maintenance Organizations
become the focal point for the whole
safe a company operates. However they
and Airline Operators will have a Safety
company.
reserve the right to do their random
Leo Schrauwers Quality Assurance Manager
operational audits. They will concentrate
Management System (SMS) in place
towards the end of this year. This initiative
The effectiveness of SMS relies on our
their efforts on companies that do not
has been in development for several
corporate culture. The aim of SMS is to
meet their standards.
years and will become law on December
achieve an environment where each
01, 2004.
individual is not only responsible for
What's in it for us? SMS provides the
safety, but can contribute to safety.
opportunity to ensure that problems are
SMS is a systematic and proactive
A system where reporting of safety
dealt with in a proactive way. Meeting
process for managing safety risks that
concerns is actively encouraged.
and exceeding the standards required for
integrates
operations
and
an SMS by operational audits and
technical
human
Is this all going to happen overnight?
ensuring compliance internally, will give
resource management to achieve the
The simple answer is 'no', it will take
us credit for operating an exemplary
highest level of safety and compliance
several years. As a matter of fact,
system. With that comes additional
with the Canadian Aviation Regulations.
Transport Canada has given the industry
privileges as an AMO and Operator with
an implementation schedule with full
less involvement of TC in our day-to-day
So what does that mean? Most of us ask
compliance by 2007. In this implementa-
business. The financial benefits of a safer
ourselves: "But we already have a safety
tion period each organization will have to
organization are self-evident, less time
program, so what is different with this
achieve specific goals at set milestones.
lost due to work related injuries, less
systems
with
financial
and
operational
program?" The SMS program contains
interruptions,
etc.
More
the following key elements: Safety
How will SMS work? The reporting
immediately, SMS also has the potential
management plan, documentation, safety
system encourages and accommodates
to identify inefficient processes, resulting
oversight, training, quality assurance
both the proactive reporting of hazards
in improvements in productivity. Above all
and emergency preparedness. Last but
and the reactive reporting of incidents
else, we want Cargojet Airways' service to
not least a communication system to
and accidents. Every report will be
be a SAFE one. SAFETY is priority #1.
ensure consistent and quality safety
treated systematically and transparently,
feedback to all staff.
and will not result in disciplinary action.
JETBITS . . .
BABY GALLERY . . .
PICTURE GALLERY . . .
Welcome to Canada
In Loving Memory
Its a Girl!!
“Denise Giroux passed away suddenly while
playing baseball for the Cargojet team,
she is sadly missed by all of us at Cargojet.
Denise and her family continue to be in
all of our thoughts and prayers.”
Geoff Ringrose, his lovely wife Pam
and their two beautiful daughters,
Stephanie and Emma, have
welcomed a new bundle of
joy into their family!
Abbey was born on, April 06, 2004,
at 13:51 weighing in at 5lbs, 10 oz.
Here's wishing nothing but joy and
happiness to them and their families!
Congratulations!
Ajay Virmani and
Ken Allen - President of DHL Canada
Its A Girl
Congratulations!
Welcome
Congratulations to Brad Peacock,
Cargojet Board member, CFA
Vice-President, Investments Crocus
Investment Fund ia a proud father
of Elyse Kristina Peacock.
Born May 13th, 7lbs.14oz after
38 long hours of labour.
Baby Byrne
Fiona Cheeseman payroll administrator
with new hubby, Peter Crevier
Bryan Craig Base Manager
YYC
Long-time sweethearts Shane (captain)
and Chelsey recently were engaged.
Congratulations!
Congratulations!
Congratulations
to Vince Carter & Ellen Rucker
Congratulations!
Congratulations to Ron and Sarah
Byrne on the birth of their baby girl,
Sade Alarose Byrne.
Mike Hiebert the new Sales Manager,
Alberta
Its A Girl!
Bill (dispatch) & Olga (flight attendant)
as they recently exchanged their vows
SHARE WITH US . . .
Jet Vibes is an employee publication of Cargojet / Starjet.
Your stories, ideas, pictures and comments are welcome.
One of our lead hands in YHM,
Alana had a baby girl.
Mackenzie Kayla Marshall-Job,
7lbs 5oz - July 17, 2004.
Next issue will be our Fall Issue.
Please send contributions to:
NBA Basketball Superstar
Vince Carter wed Ellen Rucker
cargojetcommunications@cargojet.com