AllCanada Express
Encyclopedia
All Canada Express was a cargo airline
based in Mississauga
, Ontario
, Canada
. It operated nightly flights to some of the major United States
cargo hubs and to Central America
, South America
and the Caribbean
.
Canair had been founded by MacKenzie, Lantz, Goliger and Ontario Express Ltd. O/A Canadian Partner through a restructuring of Tempus Air in 1989. By 1992 Ontario Express had been rolled into Canadian Regional Airlines
and wanted to sell its 55% stake in Canair. Goliger bought out the Canadian Regional, MacKenzie and Lantz interest in Canair in September 1992.
In 1992 operations started as a cargo airline with one Convair 580 doing ad hoc cargo charter work. ACE built up to four CV 580s flying primarily for Canadian Airlines and in August 1994 received its first contract to fly a Boeing 727-100 for Burlington Air Express (BAX Global). A second B727 and a CV 580 was added for in 1995.
In 1997 ACE picked up the UPS contract for domestic Canada line-haul and added two more B727-200Fs.
The ACE aircraft were very noticeable in their silver and black livery with the “ACE of Spades” on the tail.
By 2001–2002, ACE had grown to a fleet of twelve Boeing 727s operating for BAX, UPS
, DHL
, and Canada 3000 Cargo and was earning approximately $60 million in annual revenue. In July 2001, Canada 3000 Cargo was purchased by Ajay Virmani, whose intent was to focus on the passenger airline belly freight business. As a consequence, on September 8, 2001, MacKenzie and Virmani agreed that ACE would purchase the overnight business that ACE flew for C3 Cargo in January 2002 when an injunction preventing Virmani from assuming the belly business was due to be lifted.
Three days later the events of September 11 attacks unfolded and six weeks after that Canada 3000 went bankrupt and was liquidated. Virmani was left with only the Canada 3000 overnight cargo business and changed its name to Cargojet Canada. All Canada Express personnel were advised that legal action would be take against persons who left the employ of All Canada Express for CargoJet. Remaining persons were advised that CargoJet was a virtual airline and would not ever attain an operating certificate. All Canada Express management were disrespectful and dismissive of the efforts of Mr. Virmani to establish a domestic freight operation. All Canada Express set new standards of safety and interpretation of GAAP that ensured steady profits where more traditional and credible carriers could see none. The results of a full safety audit were not made public prior to bankruptcy proceedings (the completed audit revealed shortcomings and would have exempted the airline from adding larger aircraft to their operating certificate). A full revenue Canada audit would have been welcomed by many.
In January 2002 as a consequence of September 11, BAX reduced its requirement from three B727 aircraft to one and went to a four-night-a-week operation, UPS reduced its requirement from three B727s to two and Cargojet became a competitor. The market value of a B727 freighter declined from $6 million to $1.5 million and dry lease market rates fell from $125,000 per month to $40,000 per month. ACE embarked on a year-long endeavor to renegotiate its aircraft financings and leases. This culminated with it restructuring its secured debt in April 2003 and continuing as ACE Inc. On the day following the restructuring, UPS switched its business to Cargojet. ACE then continued on with international operations for BAX, a daily run between Newark and Bermuda, contracts in the south Pacific and Philippines and picked up new business with Cubana flying between Toronto and Havana.
By the end of 2004, ACE Inc. had three B727 freighters dedicated to flying perishables, flowers and cargo between Toronto, Havana, Caracas, Bogotá, Quito, and Mexico City. ACE became the first truly international Canadian heavy jet cargo carrier.
In late 2004, ACE committed to Finova to take a former Canadian Airlines DC10-30F
on lease to commence operations between Canada, Europe and South America. The company signed an agreement with Omni Air in Tulsa, Oklahoma
to write manuals and commence pilot training. Two pilot training courses were run and operating amendments were submitted to Transport Canada by February 2005. Also in February 2005, a group of pilots concerned with increasingly lax safety standards applied for union certification under the Canadian Auto Workers Union (CAW).
The Industrial Relations Board certified the CAW application in February 2005, at which point the CAW launched a complaint to Transport Canada that ACE had been flying an unsafe 12 ½ hour duty day between Newark and Bermuda for the past five years. Previously Transport Canada had approved that the route should be considered a split duty day since the company provided all three crew members hotels and crew rest at the end of each flight segment. Transport Canada was unable to provide ACE or its flight crews written confirmation of this exemption. Further clouding the issue for flight crew was the questionable nature of Transport Canada issuing an exemption to a duty requirement that fell under the purview of the FAA, as the flight originated and terminated at an American airport. Based on the CAW complaint, Transport Canada reversed itself and ruled that the run must be double crewed.
This start to a new unionized relationship caused the owners and secured creditors of the company (the Hamilton Group) to rethink the advisability of further investment into the DC10 program. The company cancelled the program and that night in March 2005, MacKenzie held a meeting with Cargojet in Ottawa to initiate a discussion toward Cargojet acquiring ACE. The price of fuel was making the B727s uneconomical for perishables flying and the rise in the Canadian dollar
relative to the US dollar was making international flying less profitable.
Global Capital partners were retained by ACE and RBC Securities by Cargojet in May 2005. The two companies negotiated until August 28, 2005, when an agreement was reached for Cargojet to acquire the business, assets, goodwill and personnel of ACE. MacKenzie and Lantz both signed, however before Cargojet could sign the counsel and advisor for the Hamilton Group approached Barry Lapointe at Kelowna Flightcraft to try to get him to outbid Cargojet. Lapointe called Virmani and the transaction went sideways.
Ultimately a new agreement was reached in October where Cargojet assumed the Bermuda and BAX business, assets and certain employees of ACE and the company was wound up in bankruptcy. This agreement was between the Hamilton Group, Cargojet and ACE with a side agreement with the CAW not to pursue successor rights against Cargojet. Subsequently the Hamilton Group appears to have kept the proceeds, did not pay vacation pay and severance to the former employees of ACE and the directors MacKenzie and Lantz were sued personally.
The former ACE B727s were sold to Allied Air Cargo in Nigeria
, a subsidiary of DAS, or were parted out.
Previously operated:
Cargo airline
Cargo airlines are airlines dedicated to the transport of cargo. Some cargo airlines are divisions or subsidiaries of larger passenger airlines.-Logistics:...
based in Mississauga
Mississauga, Ontario
Mississauga is a city in Southern Ontario located in the Regional Municipality of Peel, and in the western part of the Greater Toronto Area. With an estimated population of 734,000, it is Canada's sixth-most populous municipality, and has almost doubled in population in each of the last two decades...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. It operated nightly flights to some of the major United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
cargo hubs and to Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
, South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
and the Caribbean
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
.
History
The Canadian airline AllCanada Express (ACE) was established in October 1992 by John MacKenzie and Murray Lantz after they sold their 30% stake in Canair Cargo to Dan Goliger.Canair had been founded by MacKenzie, Lantz, Goliger and Ontario Express Ltd. O/A Canadian Partner through a restructuring of Tempus Air in 1989. By 1992 Ontario Express had been rolled into Canadian Regional Airlines
Canadian Regional Airlines
Canadian Regional Airlines was an airline headquartered in Calgary, Alberta, Canada. It is now part of Air Canada Jazz.- Former Code Data :*IATA Code: KI*ICAO Code: CDR*Callsign: Canadian Regional- History :...
and wanted to sell its 55% stake in Canair. Goliger bought out the Canadian Regional, MacKenzie and Lantz interest in Canair in September 1992.
In 1992 operations started as a cargo airline with one Convair 580 doing ad hoc cargo charter work. ACE built up to four CV 580s flying primarily for Canadian Airlines and in August 1994 received its first contract to fly a Boeing 727-100 for Burlington Air Express (BAX Global). A second B727 and a CV 580 was added for in 1995.
In 1997 ACE picked up the UPS contract for domestic Canada line-haul and added two more B727-200Fs.
The ACE aircraft were very noticeable in their silver and black livery with the “ACE of Spades” on the tail.
By 2001–2002, ACE had grown to a fleet of twelve Boeing 727s operating for BAX, UPS
United Parcel Service
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery company. Headquartered in Sandy Springs, Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the...
, DHL
DHL
DHL Express is a division of the German logistics company Deutsche Post providing international express mail services. DHL is a world market leader in sea and air mail....
, and Canada 3000 Cargo and was earning approximately $60 million in annual revenue. In July 2001, Canada 3000 Cargo was purchased by Ajay Virmani, whose intent was to focus on the passenger airline belly freight business. As a consequence, on September 8, 2001, MacKenzie and Virmani agreed that ACE would purchase the overnight business that ACE flew for C3 Cargo in January 2002 when an injunction preventing Virmani from assuming the belly business was due to be lifted.
Three days later the events of September 11 attacks unfolded and six weeks after that Canada 3000 went bankrupt and was liquidated. Virmani was left with only the Canada 3000 overnight cargo business and changed its name to Cargojet Canada. All Canada Express personnel were advised that legal action would be take against persons who left the employ of All Canada Express for CargoJet. Remaining persons were advised that CargoJet was a virtual airline and would not ever attain an operating certificate. All Canada Express management were disrespectful and dismissive of the efforts of Mr. Virmani to establish a domestic freight operation. All Canada Express set new standards of safety and interpretation of GAAP that ensured steady profits where more traditional and credible carriers could see none. The results of a full safety audit were not made public prior to bankruptcy proceedings (the completed audit revealed shortcomings and would have exempted the airline from adding larger aircraft to their operating certificate). A full revenue Canada audit would have been welcomed by many.
In January 2002 as a consequence of September 11, BAX reduced its requirement from three B727 aircraft to one and went to a four-night-a-week operation, UPS reduced its requirement from three B727s to two and Cargojet became a competitor. The market value of a B727 freighter declined from $6 million to $1.5 million and dry lease market rates fell from $125,000 per month to $40,000 per month. ACE embarked on a year-long endeavor to renegotiate its aircraft financings and leases. This culminated with it restructuring its secured debt in April 2003 and continuing as ACE Inc. On the day following the restructuring, UPS switched its business to Cargojet. ACE then continued on with international operations for BAX, a daily run between Newark and Bermuda, contracts in the south Pacific and Philippines and picked up new business with Cubana flying between Toronto and Havana.
By the end of 2004, ACE Inc. had three B727 freighters dedicated to flying perishables, flowers and cargo between Toronto, Havana, Caracas, Bogotá, Quito, and Mexico City. ACE became the first truly international Canadian heavy jet cargo carrier.
In late 2004, ACE committed to Finova to take a former Canadian Airlines DC10-30F
McDonnell Douglas DC-10
The McDonnell Douglas DC-10 is a three-engine widebody jet airliner manufactured by McDonnell Douglas. The DC-10 has range for medium- to long-haul flights, capable of carrying a maximum 380 passengers. Its most distinguishing feature is the two turbofan engines mounted on underwing pylons and a...
on lease to commence operations between Canada, Europe and South America. The company signed an agreement with Omni Air in Tulsa, Oklahoma
Tulsa, Oklahoma
Tulsa is the second-largest city in the state of Oklahoma and 46th-largest city in the United States. With a population of 391,906 as of the 2010 census, it is the principal municipality of the Tulsa Metropolitan Area, a region with 937,478 residents in the MSA and 988,454 in the CSA. Tulsa's...
to write manuals and commence pilot training. Two pilot training courses were run and operating amendments were submitted to Transport Canada by February 2005. Also in February 2005, a group of pilots concerned with increasingly lax safety standards applied for union certification under the Canadian Auto Workers Union (CAW).
The Industrial Relations Board certified the CAW application in February 2005, at which point the CAW launched a complaint to Transport Canada that ACE had been flying an unsafe 12 ½ hour duty day between Newark and Bermuda for the past five years. Previously Transport Canada had approved that the route should be considered a split duty day since the company provided all three crew members hotels and crew rest at the end of each flight segment. Transport Canada was unable to provide ACE or its flight crews written confirmation of this exemption. Further clouding the issue for flight crew was the questionable nature of Transport Canada issuing an exemption to a duty requirement that fell under the purview of the FAA, as the flight originated and terminated at an American airport. Based on the CAW complaint, Transport Canada reversed itself and ruled that the run must be double crewed.
This start to a new unionized relationship caused the owners and secured creditors of the company (the Hamilton Group) to rethink the advisability of further investment into the DC10 program. The company cancelled the program and that night in March 2005, MacKenzie held a meeting with Cargojet in Ottawa to initiate a discussion toward Cargojet acquiring ACE. The price of fuel was making the B727s uneconomical for perishables flying and the rise in the Canadian dollar
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
relative to the US dollar was making international flying less profitable.
Global Capital partners were retained by ACE and RBC Securities by Cargojet in May 2005. The two companies negotiated until August 28, 2005, when an agreement was reached for Cargojet to acquire the business, assets, goodwill and personnel of ACE. MacKenzie and Lantz both signed, however before Cargojet could sign the counsel and advisor for the Hamilton Group approached Barry Lapointe at Kelowna Flightcraft to try to get him to outbid Cargojet. Lapointe called Virmani and the transaction went sideways.
Ultimately a new agreement was reached in October where Cargojet assumed the Bermuda and BAX business, assets and certain employees of ACE and the company was wound up in bankruptcy. This agreement was between the Hamilton Group, Cargojet and ACE with a side agreement with the CAW not to pursue successor rights against Cargojet. Subsequently the Hamilton Group appears to have kept the proceeds, did not pay vacation pay and severance to the former employees of ACE and the directors MacKenzie and Lantz were sued personally.
The former ACE B727s were sold to Allied Air Cargo in Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
, a subsidiary of DAS, or were parted out.
Fleet
The All Canada Express fleet consists of the following aircraft (at August 2006) :- 2 Boeing 727-200FBoeing 727The Boeing 727 is a mid-size, narrow-body, three-engine, T-tailed commercial jet airliner, manufactured by Boeing. The Boeing 727 first flew in 1963, and for over a decade more were built per year than any other jet airliner. When production ended in 1984 a total of 1,832 aircraft had been produced...
Previously operated:
- 1 Bombardier Learjet 35A