Cargojet Income Fund is selling its 55 per cent stake in a regional air cargo business to minority owner SkyLink Express in return for a $3.2-million promissory note.

The Mississauga-based fund will record a one-time loss of $2 million on the transaction, which allows Cargojet to focus on national and international programs.

The agreement will give SkyLink Express full ownership of the regional transport business, which will operate under its name.

“Sustaining a profit­able regional air cargo business has been especially challenging, as recent economic con­di- tions have resulted in a decline in customer demand and lower yields,” said president and CEO Ajay Virmani.

Cargojet transports air cargo across North America with a fleet of 13 aircraft.

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