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All Canada Express was a cargo airline based in Mississauga, Ontario, Canada. It operated nightly flights to some of the major U.S. cargo hubs and to Central America, South America and the Caribbean.
[edit] History
The Canadian airline AllCanada Express (ACE) was established in October 1992 by cargo industry veterans 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 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 dedicated cargo airline with one Convair 580 aircraft 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 BAX 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 the 2001 – 2002 timeframe ACE had grown to a fleet of twelve Boeing 727s operating for BAX, UPS, DHL, and Canada 3000 Cargo and was doing 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 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. 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 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. Unfortunately Transport Canada was unable to provide ACE or it's 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 unfortunate 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 and get him to outbid Cargojet. Lapointe called Virmani and the transaction went sideways. Ultimately a new agreement was reached in October whereby 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 went to Allied Air Cargo in Nigeria a subsidiary of DAS or were parted out. [edit] FleetThe All Canada Express fleet consists of the following aircraft (at August 2006) [1]: Previously operated:
[edit] References
[edit] Further Information RequiredBankruptcy of All Canada Express Inc. and Name Change to All Canada Express Ltd. Failed hangar construction plans at Hamilton Airport [edit] External links | ||||||||||||||||||||
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