Home » CMA CGM takes stake in Air France KLM as part of new freight partnership

CMA CGM takes stake in Air France KLM as part of new freight partnership

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PARIS — Air France-KLM has announced a long-term air cargo partnership with French CMA CGM Group, which will become a new core shareholder of the Franco-Dutch airline.

As part of a potential capital increase at the airline group, CMA CGM will acquire up to 9% of Air France-KLM’s capital for the duration of their exclusive partnership, which will initially run for 10 years, the two companies said in a statement.

The collaboration is subject to approval by the competition authorities.

The partnership is expected to deliver “significant revenue synergies,” the companies said.

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The partnership between the two companies follows a rebound in freight markets amid the COVID-19 pandemic, and comes as carriers seek to shield against any future downturn and take steps to make global supply chains more resilient.

The companies added that they have a “strong ambition to invest and grow sustainably” in the air freight market.

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

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

Air France-KLM competes with European airlines, including Lufthansa and freight specialist Cargolux, as well as major Gulf and Asian airlines in the air cargo market.

According to International Air Transport Association statistics, the individual networks of Air France, KLM and Martinair together rank about 8th in the global ranking of cargo airlines.

Air France-KLM’s major shareholders, including the French and Dutch governments, will support CMA CGM in securing a board seat at the company’s next board meeting on May 24, the companies added. (Reporting by Tim Hepher; editing by Sudip Kar-Gupta)

This post CMA CGM takes stake in Air France KLM as part of new freight partnership was original published at “https://financialpost.com/pmn/business-pmn/cma-cgm-to-take-stake-in-air-france-klm-as-part-of-new-cargo-partnership”

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