Sector Update: Industrials; WestJet Launches New Service, New Flyer to Focus on Xcelsior as Bus Platform, Cargojet Enters Strategic Air Cargo Cooperation with First Air
Industrial shares were mixed in afternoon trading. The S&P/TSX Industrials index was up 0.1%.
Air Canada (AC-B.TO): +4.7%
SNC-Lavalin (SNC.TO): +3.6%
Canadian Pacific Railway (CP.TO): -1.6%
WestJet (WJA.TO): +0.6%
New Flyer Industries (NFI.TO): +0.5%
Cargojet (CJT.TO): +0.4%
In corporate news, WestJet launched new non-stop, twice-weekly service between Las Vegas and Fort McMurray, Alberta. The new flight route represents even more service to Fort McMurray as part of a major expansion of flights into the oil sands region, WestJet said.
Meanwhile, Cargojet has signed a cooperation agreement, pursuant to which the overnight air cargo services provider will assume the remaining lease obligation of First Air's B767-200 Extended Range Freighter aircraft. Cargojet will also provide scheduled freighter aircraft service to First Air from Ottawa and Winnipeg to Iqaluit three days per week.
Cargojet will be the primary and exclusive provider of freighter aircraft lift from the southern points in Canada to/from Iqaluit and First Air will be the primary provider of cargo lift within Nunavut and across the North.
Finally, New Flyer Tuesday said it will be focusing on a single heavy-duty transit and BRT bus platform that features its Xcelsior techhnology.
CEO Paul Soubry said: "We will transition production at NABI in Anniston, AL from the LFW and BRT to Xcelsior, which enables us to avoid redundant product upgrade costs and duplicate support infrastructure and demonstrates our continued investment in New Flyer's future."