LONDON – The freight division of Air France-KLM has joined forces with the French CMA CGM Group. They have made a strategic deal to combine their complementary cargo networks, full freighter capacity, and dedicated services.
The deal
Both parties have made signed a contract for 10 years to strengthen their air cargo operations.
CMA CGM and KLM would benefit from each other global footprint and global know-how, as CMA CGM does not only have air freight operations but also over the sea.
Both airlines will join and exclusively operate the full-freighter capacity of both airlines, which consists of a total of 10 full-freighter planes from both airlines.
- 6 freighters from Air France-KLM (including some operated by Martinair, which is a full subsidiary of the group)
- 4 freighters from CMA CGM (operated by Air Belgium)
It also covers the AF-KLM belly aircraft capacity, including 160 long-haul aircraft.
The CEO and chairman of CMA CGM Group said: “I am very pleased with this strategic partnership with Air France-KLM.”
“It allows us to significantly accelerate the development of our air division, CMA CGM Air Cargo, which was created just over a year ago, and to position our two companies among the world’s leading players in air freight.”
“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.”
At the same time, the AF-KLM Group CEO Ben Smith said:
“I am very pleased with this strategic partnership with Air France-KLM. It allows us to significantly accelerate the development of our air division, CMA CGM Air Cargo, which was created just over a year ago, and to position our two companies among the world’s leading players in air freight.
Future partnership
CMA CGM doesn’t intend to leave the partnership at this, however, as they are also planning to become a shareholder of the AF-KLM group. CMA CGM has the firm intention to buy 9% of the group.
The completion of the potential stake has to be confirmed at the next shareholders’ meeting on May 24, 2022. Such appointment, if approved by the shareholders’ meeting, would be subject to the completion of CMA CGM’s investment.
Future of global freight
This is a very interesting deal, as both groups have an extensive network on their own, and with this new partnership, they could expand and combine some networks to create an even bigger network, and when CMA CGM becomes a shareholder of AF-KLM, they could alter and shape the freight division to be even more sustainable and efficient than they are now.
By combining the belly cargo space from the passenger planes from AF-KLM, the total global cargo network of the entire group would be covering some landlocked countries that CMA CGM would be unable to reach otherwise, making the partnership quite worthwhile for both parties.
