Air France-KLM, CMA CGM in 10-year air cargo partnership
The team-up combines Air France-KLM’s air transport experience and knowhow with CMA CGM’s global supply chain expertise and assets
CMA CGM and Air France-KLM will jointly offer their air freight capacity, providing customers with more options for their transport needs
CMA CGM will become a shareholder in Air France-KLM
Air France-KLM and CMA CGM entered into a 10-year air cargo partnership, the companies announced on May 18.
As part of the deal, CMA CGM will become a shareholder in Air France-KLM. The shipping group said it intends to take up to 9% of Air France-KLM’s ex-post share capital for a period consistent with the implementation of the partnership. This investment could be made a part of the contemplated capital increase of Air France-KLM, as announced on February 17, 2022.
The partnership will combine their complementary cargo networks, full freighter capacity and dedicated services to build an even more competitive offer, they said.
Subject to approval by the relevant regulators and consultation with employee representatives, the partnership aims to strengthen both parties’ air cargo offering, the partners said.
CMA CGM chairman and chief executive Rodolphe Saadé said the strategic partnership allows his group to significantly accelerate the development of its air division, CMA CGM Air Cargo, created just over a year ago, and position the two companies among the world’s leading air freight players.
“This partnership is fully in line with CMA CGM’s strategy and its ambition to become a leader in integrated logistics, for the benefit of its customers. Through our stake in the company, Air France-KLM will be able to count on us to support its future development,” Saadé said.
Air France-KLM CEO Benjamin Smith said: “This strategic partnership leverages the complementary skills, expertise and activities of Air France-KLM and CMA CGM. It is a landmark step which will significantly strengthen and expand the group’s position in the air cargo industry.”
Under the deal, they will jointly and exclusively operate the full-freighter aircraft capacity of their respective airlines. These will consist initially of a fleet of 10 full-freighter aircraft and an additional combined 12 aircraft that are on order.
The additional aircraft are 4 full freighters at CMA CGM Air Cargo, with outstanding orders for 8 more planes, two of which may be operated by Air France-KLM in future, and 6 full freighters at Air France-KLM based at Paris-Charles de Gaulle Airport and Amsterdam-Schiphol Airport, with orders for 4 more planes.
This partnership covers Air France-KLM’s belly aircraft capacity on more than 160 long-haul planes and leverage both partners’ respective global sales teams, presenting one voice to the customer.
The partnership is expected to generate significant revenue synergies, including the joint design of the full freighter networks and enhanced products and mix of services, both partners said.
The parties said their partnership will help meet customers’ ever-increasing need for more integrated and resilient supply chains and will leverage Air France-KLM’s vast existing franchise, experience and capabilities in air freight, backed by a global cargo network.
CMA CGM will mobilize its large commercial network and global logistics platform and will complete this offer with innovative logistics and multimodal solutions, particularly in sea and land transport.
