CMA CGM and Air France-KLM announce 10-year air freight partnership
You can read this article in 3 minutes
The CMA CGM Group and Air France-KLM Group today announced that they have signed an exclusive 10-year strategic partnership in the air cargo market. The move will allow the two parties to strengthen their air cargo offering.
In a statement, both parties said they would combine their complementary cargo networks, full freighter capacity and dedicated services.
The agreement will have an initial duration of 10 years. As a result of the deal, Air France-KLM and CMA CGM will join and exclusively operate the full-freighter aircraft capacity of the respective airlines consisting initially of a fleet of 10 full-freighter aircraft, and an additional combined 12 aircraft on order, as follows:
- 4 full-freighter aircraft at CMA CGM Air Cargo (with outstanding orders for an additional 8 aircraft, 2 of which may be operated by Air France-KLM in the future),
- 6 full-freighter aircraft at Air France-KLM Group based at Paris-Charles de Gaulle airport and Amsterdam Airport Schiphol (with outstanding orders for an additional 4 aircraft).
This new commercial partnership also covers Air France-KLM’s belly aircraft capacity, including over 160 long-haul aircraft. Moreover, the agreement will see both partners leveraging their respective global sales teams, presenting one voice to the customer.
The parties believe the partnership shall generate significant revenue synergies, including the joint design of the full freighter networks, and enhanced products and services mix opportunities. Both signatories are also convinced the deal will help meet customers’ ever-increasing need for more integrated and resilient supply chains.
On top of that, CMA CGM has announced it is to become a new reference shareholder in Air France-KLM. 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 strategic commercial partnership.
Commenting on the deal, Rodolphe Saadé, Chairman and CEO of the 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.”
Air France-KLM Group CEO Mr. Benjamin Smith added:
“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. I am also extremely pleased that this commercial partnership with CMA CGM has resulted in their decision to invest directly in the Air France-KLM Group, demonstrating a strong testimony of their belief in the future success of our Group.”