Cargojet Influence Triggers CEO Change at Amazon Partner 21 Air

Key Details Cargojet, a Canadian freight airline holding a 25% stake in Miami-based 21 Air, has leveraged its ownership position to remove CEO Tim Strauss and replace him with Luis Fernando Alvarado, sources say. Strauss, 70, departed in February when his two-year contract was not renewed. Alvarado, a former Cargojet managing director, is now operating 21 Air as chief operating officer. Why It Matters The executive shuffle raises potential compliance questions about foreign control of a U.S. airline. Federal law prohibits foreign ownership or control of U.S. carriers, and Cargojet's decision-making power over 21 Air's leadership could draw regulatory scrutiny. What's Next Company insiders claim the transition reflects strategic planning rather than conflict. They say doubling the business in two years warranted younger leadership for long-term growth and development of new opportunities. However, sources indicate friction between Pauline Dhillon, Cargojet's new CEO as of January 1, and Strauss likely accelerated the change. Strauss previously served as Air Canada's cargo vice president and spent three years as CEO of Amerijet before joining 21 Air. The carrier handles contracts for DHL Express and Amazon.