Evidence of meeting #22 for Transport, Infrastructure and Communities in the 40th Parliament, 3rd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was purolator.
A recording is available from Parliament.
Bloc
Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC
You do not favour Mr. Lapointe's company in your business dealings.
Chairman of the Board, Purolator Courier Ltd.
I am still quite new in my position, but I would have to say that we do rather the opposite. We try to be very strict in that regard.
Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC
When you came in as a contractor to replace Air Canada, you did business with Mr. Lapointe's company. Perhaps Mr. Henderson can answer my question. Was that because of the timelines involved? Was it a matter of having to get things done quickly? I would like you to explain the circumstances. You were contacted and took part in what Ms. Greene called a request for information. How does an RFI process work? Are you given a deadline? What was the timeframe? Was it short?
President and Chief Executive Officer, Purolator Courier Ltd.
When the RFI was issued, we responded, as did other members of the aviation community. The timeline was within 120 days to provide wide-body airlift, or “large-gauge” aircraft; that's how we would refer to them in the industry.
We operate 727 aircraft. Those are narrow-body aircraft that carry about 46,000 pounds. The wide-body aircraft necessary to meet the requirements of Canada Post were DC-10 aircraft, which hold the equivalent of four 727s. So it was a very different set of aircraft.
Wide-body aircraft have not operated in Canada on the cargo side to any great degree since Air Canada started to decrease the size of the use of that type of aircraft in their own fleet.
Bloc
Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC
Is the contract standard or exceptional, given Canada Post's commitments? Do you see this as a standard situation or something quite exceptional?
President and Chief Executive Officer, Purolator Courier Ltd.
The timeframe we were given was extremely short. Generally in aviation you have anywhere from 12 to 14 months to respond. So in 120 days, due to its size and capability, Purolator was able to engage our resources and capability right across the country, with the support of Kelowna Flightcraft, to put these aircraft into service and get Purolator people trained for the loading and offloading of these aircraft. We did so and provided service to Canada Post, but indirectly to Canadians, to keep the mail moving with improved service and lower cost to Canadians overall.
NDP
Dennis Bevington NDP Western Arctic, NT
Thank you, Mr. Chair.
Thanks to the witnesses for coming here today.
Obviously Purolator's contract with Canada Post is only a small part of what you're doing here. What would you estimate it is as a percentage of your...?
President and Chief Executive Officer, Purolator Courier Ltd.
I'd like to keep the terms.... Because these contracts are highly confidential, I will tell you it's in the very low single digits in representation of our overall revenue base.
NDP
Dennis Bevington NDP Western Arctic, NT
So Air Canada was providing the DC-10s and then wasn't providing them, or moved out of them, and Canada Post was looking for DC-10s?
President and Chief Executive Officer, Purolator Courier Ltd.
No. I'll add clarity to that. Air Canada was providing commercial airlift services to Canada Post using multiple aircraft. Our response to that in the proposal we submitted to Canada Post was to consolidate those multiple flights to improve the scheduling, service, and overall cost. Our solution was to use the DC-10 aircraft.
NDP
Dennis Bevington NDP Western Arctic, NT
That was a significant part of your bid. Was that one of the key elements of your bid, do you think?
President and Chief Executive Officer, Purolator Courier Ltd.
On the total structure of Purolator, we're the largest express cargo carrier in the country. We have over 300 dedicated personnel across 14 airport locations, from Victoria right through to St. John's. Given our capability in those air operations at all those airports and our ability to operate aircraft, with the training and the capability, we put a solution forward to improve both the service and the cost for Canada Post.
NDP
President and Chief Executive Officer, Purolator Courier Ltd.
We're the only carrier that provides direct service to Canada. We have over 143 locations operated by Purolator personnel. Unlike our foreign multinational competitors who subcontract that out, we actually employ Canadians in the communities as far up as Yellowknife, Kapuskasing, Rimouski, Gander, St. John's, and areas like that.
NDP
President and Chief Executive Officer, Purolator Courier Ltd.
Yes, we are.
President and Chief Executive Officer, Purolator Courier Ltd.
Yes. We fly in with a Convair.
NDP
Dennis Bevington NDP Western Arctic, NT
This is a small part of your operations, but is it a significant part? Have you restructured your company in order to provide this service?
President and Chief Executive Officer, Purolator Courier Ltd.
There was no requirement to restructure.
President and Chief Executive Officer, Purolator Courier Ltd.
For the air support, whether the contract is large or small, Purolator is dependent, like many other businesses, on growth. With contracts that are very compatible with Purolator's capability to deliver on that promise, we'll compete on all those contracts, whether they are in the air or on the ground.
