Air France-KLM has signed a strategic partnership with French container ship operator CMA CGM to operate their air cargo capacities together. The agreement could also see CMA CGM acquire up to a 9% stake in the airline group. We take a closer look at what this all means below.

Agreement with French shipping company

Air France-KLM has formed a long-term partnership with one of the world's largest container shipping companies - CMA CGM. The two groups will combine their cargo networks, freighter capacity and dedicated services over the course of an initial 10-year agreement.

Air France-KLM Group 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."

Marseille-based CMA CGM is currently the third-largest container shipping company in the world. The group founded an air cargo division in March 2021 named CMA CGM Air Cargo, which has a fleet of four Airbus A330-200F aircraft operated by Air Belgium.

CMA CGM cargo
Every aspect of your flight operations need to be insured to a prescribed level. Photo: CMA CGM

The partnership will also see CMA CGM become a new reference shareholder in Air France-KLM. The French freight company will take a 9% stake in Air France-KLM Group, making it the fourth-largest stakeholder behind the French government (28.6%), China Eastern (9.6%) and the Netherlands government (9.3%).

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. Through our stake in the company, Air France-KLM will be able to count on us to support its future development."

Shared cargo capacity

By joining forces, Air France-KLM and CMA CGM will now have access to each other's aircraft and plan to market their air freight capacity jointly. Air France-KLM has six all-cargo aircraft - KLM’s three Boeing 747-400Fs, Martinair’s one 747-400P2F and Air France’s two 777-200Fs.

This will add to CMA CGM's four Airbus A330-200Fs. The shipping company also has eight more freighters on order - including four Airbus A350Fs and two Boeing 777Fs - while Air France-KLM has its own four Airbus A350Fs on order from Airbus.

The agreement will also cover Air France-KLM’s belly aircraft capacity across more than 160 long-haul passenger aircraft. CMA CGM Air Cargo's fleet, which is currently based at Liege Airport in Belgium, will gradually relocate to Paris Charles de Gaulle Airport this year.

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Possible capital increase for Air France-KLM

CMA CGM's acquisition of a 9% stake in Air France-KLM could be worth around 240 million Euros ($252 million) while the airline group considers a capital increase.

Air-France-Cargo-Photo-Airbus-FIXION
Both parties will have 10 all-cargo aircraft, with 12 more on order. Photo: Airbus

CEO Benjamin Smith added,

"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."

The group posted a profit over the first quarter of 2022 and is considering a capital increase worth up to 4 billion Euros ($4.19 billion). CMA CGM's acquisition will be subject to antitrust approval.

What are your thoughts on this agreement between Air France-KLM and CMA CGM? Let us know your insights in the comments.