Air France-KLM Group and the CMA CGM Group have signed a long-term strategic partnership that will see both parties combining their complementary cargo networks, full freighter capacity, and dedicated services.
The agreement will have an initial duration of 10 years and will see the two companies exclusively operating the full-freighter aircraft capacity of the respective airlines - initially comprising a fleet of 10 full-freighter aircraft, and an additional combined 12 aircraft on order:
- CMA CGM Air Cargo’s four full-freighter aircraft (with outstanding orders for an additional eight aircraft, two of which may be operated by Air France-KLM in the future).
- Air France-KLM Group’s six full-freighter aircraft based at Paris-Charles de Gaulle airport and Amsterdam Airport Schiphol (with outstanding orders for an additional four aircraft).
This new commercial partnership also covers Air France-KLM’s belly aircraft capacity, including more than 160 long-haul aircraft.
The agreement will leverage both partners’ respective global sales teams, presenting one voice to the customer.
“The strategic commercial partnership is expected to generate significant revenue synergies, including the joint design of the full freighter networks,” says Rodolphe Saadé, chairman and CEO of the CMA CGM Group.
As part of this long-term exclusive partnership, CMA CGM will become a new reference shareholder in Air France-KLM. “CMA CGM has the firm intention 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,” says Saadé.
This investment could be made as part of the contemplated capital increase of Air France-KLM, as announced on February 17. According to a statement released today, Air France-KLM’s main shareholders will support a resolution for the appointment of one board member representing CMA CGM at the next shareholders’ meeting on May 24. Such an appointment, if approved by the shareholders’ meeting, would be subject to the completion of the investment.
“This strategic partnership allows us to significantly accelerate the development of our air division, CMA CGM Air Cargo, which was created just over a year ago. This partnership is fully in line with CMA CGM's strategy and its ambition to become a leader in integrated logistics,” says Saadé.
And for Air France-KLM, Group CEO Benjamin Smith says: “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.”
The CMA CGM Group has, over the past three years, acquired CEVA Logistics, Ingram Micro’s Commerce & Lifecycle Services (CLS), Colis Privé and GEFCO.
This deal remains subject to approval by the relevant regulators and consultation of employee representatives.
