Airlines Deals

Cargojet Income Fund (the “Fund”) (TSX: CJT.UN)
- announced today Air India Cargo and Cargojet are entering into a strategic
marketing and operational alliance for the Canadian market, effective
August 1, 2006.
Through this alliance Cargojet will provide sales, marketing and
operational support to Air India Cargo in Western and Atlantic Canada.
Cargojet will receive cargo sales, marketing and interline support from Air
India Cargo who currently serve over 44 destinations in more than 23
countries.
All Air India Cargo originating from, or destined to Western and Atlantic
Canada will connect with Cargojet’s premium domestic overnight service
flights. This partnership will enable both carriers to share and benefit from
one other’s expertise in the marketplace and extend their global networks.
Both organizations and their customers will now receive seamless air
cargo service from anywhere in the world to all destinations into and out of
Canada.
“Both companies will benefit mutually, as Cargojet can now assist Air
India Cargo in servicing the complete Canadian marketplace. Cargojet and its
customers will also benefit with the expertise Air India Cargo has developed
over the years in terms of sales and marketing, handling and information
technology,” said Ajay Virmani, President and CEO of Cargojet.
“Air India is pleased to enter a Strategic Alliance with Cargojet in
Canada, as this will enhance the movement of cargo between Canada and India.
With Air India’s vast domestic network within India, complimented by
Cargojet’s strong presence in Canada serving 13 cities, this arrangement will
ease the flow of cargo to interior points in both countries,” says Mr. R.B.
Chopra, Manager Canada for Air India.
With a buoyant Indian economy coupled with increased trade Ex India to
all countries including Canada, substantial growth in cargo movement is
anticipated, on this route.
The tie up between the two airlines will see promotion of cargo to Europe
over Birmingham, as well as, to destinations beyond India on the carriers. Air
India presently operates five direct flights a week from Toronto to New Delhi,
via Birmingham and Amritsar.

Cargojet is Canada’s leading provider of time sensitive overnight air
cargo service. Cargojet operates its network from coast to coast transporting
over 500,000 pounds (226.8 tonnes) of volumetric time sensitive air cargo to
thirteen major cities in Canada each business night.