Home » Air France-KLM signs freight agreement with French shipping company CMA CGM
News

Air France-KLM signs freight agreement with French shipping company CMA CGM

Links to breadcrumbs

PMN Economy PMN Business

Author of the article:

Reuters

Tim Hepher and Gus Trompiz

Article content

PARIS – French shipping company CMA CGM will acquire a stake in Air France-KLM as part of an air cargo partnership, targeting growing demand for flying goods around the world as supply chains continue to tighten in the wake of the pandemic.

CMA CGM will acquire up to 9% of Air France-KLM, part of a potential capital increase by the airline group, for the duration of their 10-year partnership, the two companies said.

It will make CMA CGM the fourth largest shareholder, according to Refinitiv data, and reflect a similar initiative planned by shipping company MSC, which is partnering with Germany’s Lufthansa to make a possible bid for Italian airline ITA.

Advertisement 2

This ad hasn’t loaded yet, but your article continues below.

Article content

Air France-KLM shares rose about 3% in early trading, making it a top performer on the Paris SBF-120 stock index.

Marseille-based CMA CGM, one of the world’s largest container shipping companies, established an air freight division last year as part of a drive to develop non-maritime logistics.

Rising shipping profits, coupled with high freight rates since the COVID-19 pandemic, have enabled CMA CGM and other shippers to invest in other modes of transportation to make global supply chains more resilient and protect against a downturn.

Privately controlled by the Saade family, CMA CGM last month acquired car transport company Gefco, which was co-owned by Russian Railways (RZD) and car manufacturer Stellantis.

Air France-KLM and CMA CGM said their partnership is expected to deliver “significant revenue synergies” and said they have a “strong ambition to invest and grow sustainably” in the air freight market.

Advertisement 3

This ad hasn’t loaded yet, but your article continues below.

Article content

The partnership with Air France-KLM includes a combined fleet of 10 full-cargo aircraft, including four at CMA CGM Air Cargo and six at Air France-KLM. Together they also have 12 aircraft on order.

It also covers the capacity of Air France-KLM’s belly aircraft, including cargo carried in the airline group’s more than 160 long-haul passenger aircraft.

Air France-KLM competes in the freight market with European airlines, including Lufthansa and freight specialist Cargolux, as well as major carriers from the Gulf and Asia.

The separate networks of Air France, KLM and Martinair – a subsidiary of the group – rank the group eighth in the worldwide ranking of cargo airlines according to statistics from the International Air Transport Association.

Air France-KLM’s major shareholders, including the French and Dutch governments, supported CMA CGM in securing a board seat at the company’s next board meeting on May 24, the partners said.

The collaboration is subject to approval by the competition authorities. (Reporting by Tim Hepher; editing by Josephine Mason and Edmund Blair)

Share this article in your social network

Advertisement

This ad hasn’t loaded yet, but your article continues below.

By clicking the sign up button, you agree to receive the above newsletter from Postmedia Network Inc. receive. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc. † 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Comments

Postmedia is committed to maintaining a lively yet civilized discussion forum and encourages all readers to share their thoughts on our articles. It can take up to an hour for comments to be moderated before appearing on the site. We ask that you keep your comments relevant and respectful. We’ve enabled email notifications – you’ll now receive an email when you get a reply to your comment, there’s an update to a comment thread you’re following, or a user follows comments. Visit our Community Guidelines for more information and details about customizing your email settings.


This post Air France-KLM signs freight agreement with French shipping company CMA CGM was original published at “https://financialpost.com/pmn/business-pmn/air-france-klm-agrees-cargo-deal-with-french-shipping-firm-cma-cgm-2”

About the author

admin

Add Comment

Click here to post a comment

Your email address will not be published.