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Transport committee  I can speak to that. A number of years ago, about eight years ago, we expanded our footprint into the U.S. It's not the overnight express model we operate in Canada; it's built more on a freight forwarding model. We operate in about 16 American cities. There are sales offices, and we make arrangements for shippers who want to do business with Canada to drop ship product in consolidated form.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Absolutely.

June 8th, 2010Committee meeting

William Henderson

Transport committee  I can't answer about the contract between Air Canada and Canada Post. I don't know about the discussions Air Canada and Canada Post had regarding the fuel because it was never explained. It was simple: here's an RFI that was issued into the marketplace. Respond to carry that much product based on this schedule.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Sorry, sir, I can, because how you structured the question is incorrect. It's one company. Purolator responded to the RFI; it was not Kelowna Flightcraft. As we outsource, as I explained earlier, both trucking and on the air side, we will use contractors to fulfill our airlift needs and our ground transportation needs with one company.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Around 2003 we entered into arrangements with Azure Dynamics Corporation, a company that was born out of UBC, to provide the technology. We invested that without government funding. About five years into the program we did receive about $1.5 million in Ontario for funding, but to this day the funding has been exhausted.

June 8th, 2010Committee meeting

William Henderson

Transport committee  The DC-10s right now are used exclusively for Canada Post.

June 8th, 2010Committee meeting

William Henderson

Transport committee  They don't right now. In the contract there is a provision that if Purolator or Kelowna wants to use them, we have to return the operating costs and cover those costs, so the aircraft are not used on the backbone of that contract.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Any contract where there's a cost-plus arrangement is always structured for audit rights. In each quarter we actually sit down with Canada Post and go through that. We also sit down with Kelowna Flightcraft and go through the full audit of all their costs to make sure that neither Canada Post nor Purolator is paying any more to Kelowna Flightcraft than they should.

June 8th, 2010Committee meeting

William Henderson

Transport committee  The CFL provides us with the weight of these--

June 8th, 2010Committee meeting

William Henderson

Transport committee  Correct.

June 8th, 2010Committee meeting

William Henderson

June 8th, 2010Committee meeting

William Henderson

Transport committee  I can, and with 120 days to do that--as I said, I've been in this industry for the better part of my adult life--I can tell you, people south of the border doubted that we could put aircraft like that up on short notice. It was just due to the size and scope and capability of Purolator operating aircraft in conjunction with Kelowna Flightcraft's ability to put those online and keep things moving in that short period of time.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Actually how we get them is the easy part. They want to be, which is good. We just made the program available. And because we are a private corporation, there is a stock price that we record and communicate to all of them each quarter. So they are aware. We keep them apprised in monthly updates as a management team, and we communicate that company-wide to let them know how their company is doing.

June 8th, 2010Committee meeting

William Henderson

Transport committee  Yes. In terms of the responsibility, we're a significant contributor to the United Way right across the country. That's actually done at a front-line employee level where they get involved. Tackle Hunger is one we've been involved in with the Canadian Football League since 2003, and that program is simple.

June 8th, 2010Committee meeting

William Henderson

Transport committee  The purchase of the planes was made in 2008, in the spring of 2008. But if--

June 8th, 2010Committee meeting

William Henderson