Jobs at risk as air courier goes into receivership
The Air Cargo Services Inc. of Burlington has laid off almost all of its staff and shuttered 화천안마its plant in Quebec.
The company, which has been operating out of its facility at 3007 Hwy. 8 East in Burlington, has been struggling with tight profit margins since selling its operations in 2007.
It also announced on Saturday that it had sold its 50% interest in the company for $2.2 million. The majority of the stock holdings were sold to private equity company A.J. Heinz International Inc. for $4.7 million.
The loss at Air Cargo Services comes as the company struggles to compete with other airlines for delivery contracts, and as demand for online shopping and shipping grow.
“Right now the market is shifting towards air cargo and not into rail,” said Andrew Miller of CAA. “The more people who are interested in shipping online, the more demand there’s for these large companies.”
Air Cargo Services was acquired by A.J. Heinz International in 2012 for $1.6 billion. The company makes air cargo from ships to the home and office, including large cargo boxes and commercial parcels.
The company is currently trying to find new ways to compete with larger, more established aircraft and will not be able to do so effectively any time soon, Miller said. The company will no longer be flying any commercial aircraft into Quebec or sending aircraft to other states.
“That will not be the case,” he said, adding that the company 룰렛will not be able to keep pace with airlines as their own fleet contracts out. “The business model for air cargo was to do that in a smaller capacity, so that would be a no. I expect that this will result in a reduced business.”
Miller said the company will close its air cargo distribution center by the end of the year but will still likely remain operational in the area.
The company did not immediately respond to calls and emails requesting comment.
Contacted for comment, Air Cargo Services told CBC News that it had been considering a change in its business model. “We remain focused on offering the best service in the industry, but the change in our business model could change at any moment,” said Jennifer Hsu, an Air Cargo Services spokesperson. “We look forward to continuing to work w광주출장마사지 광주출장안마ith customers and to maintaining our core principles of providing reliable, secure and affordable air cargo service to Canada.”
CBC News sent an e-mail to A.J. Hei