KELOWNA — It’s a financial body blow for Kelowna’s largest private sector employer.
Kelowna Flightcraft has been unsuccessful in renewing its contracts to deliver cargo for Purolator and mail for Canada Post.
The contracts, which were first negotiated in 1977 with Purolator and more recently with Canada Post, will end on March 31, 2015.
“While their decision is disappointing, particularly in light of the 99% reliability we currently provide, it is by no means the end of Kelowna Flightcraft,” says company president, Tracy Medve.
“Our diverse and financially strong company has been around for nearly forty-four years. We have many great customers and contracts and we have considerable opportunity for the future.”
The contracts have been awarded to Cargojet, based in Mississauga Ontario, for at least seven years.
Kelowna Flightcraft is a privately held company that employs about 1,000 people in Canada.
The company is not disclosing the financial value of the two contracts.
But Cargojet says revenues are estimated at about $1 billion over seven years, based on projected volumes.
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