HIGHLIGHTS
- The two corporations established a “strategic partnership” in utilizing air transportation capacity on May 18. The partnership was supposed to last ten years, according to the initial agreement.
- CMA CGM, the French container carrier, has agreed to acquire a 9% share in the company from Air France-KLM.
- CMA CGM will use its large global trade network and logistics infrastructure to help.
- Air France-KLM operates a wide-body cargo aircraft network centered on two worldwide hubs: Paris-Charles de Gaulle airport and Amsterdam Schiphol Airport.
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CMA CGM and Air France-KLM form partnerships
CMA CGM and Air France-KLM, two global transport conglomerates, have similar ambitions in terms of investment and lengthy development in the airline industry. The two corporations established a “strategic partnership” in utilizing air transportation capacity on May 18. The partnership was supposed to last ten years, according to the initial agreement.
CMA CGM, the French container carrier, has agreed to acquire a 9% share in the company from Air France-KLM. CMA CGM became the fourth largest shareholder, behind France, China Eastern, and the Netherlands, with this investment. The talks took place amid CMA CGM’s recent huge profits, while Air France-KLM incurred losses and had to take out billions of euros in loans.
CMA CGM had also planned to buy shares in Air Carabes and French Bee a year ago, but the deal fell through. Instead, they choose to launch their own airline, CMA CGM Air Cargo, by the end of 2021.
CMA CGM’s investment represents a “turning point” for Air France-KLM in terms of freight development. At the same time, the collaboration is well aligned with CMA CGM’s strategy and goals to become a logistics leader. Furthermore, the transaction will raise the two companies to the ranks of the world’s largest air transport companies.
Expectations for the world’s largest air cargo carrier
The strategic trade relationship is expected to bring in a lot of money thanks to common freight networks and the ability to integrate modern products and services. It will aid in meeting consumers’ increased demand for integrated and flexible supply chains.
CMA CGM will use its large global trade network and logistics infrastructure to help. Furthermore, the firm combines cutting-edge multimodal and logistical solutions, particularly in sea and road transportation. With this collaboration, CMA CGM is moving on with plans to develop and deploy transportation and logistical solutions to assist the supply chain.
Air France-KLM operates a wide-body cargo aircraft network centered on two worldwide hubs: Paris-Charles de Gaulle airport and Amsterdam Schiphol Airport. In addition, Air France-KLM controls the industry’s leading commercial network, with a team present at 116 terminals and 390 processing stations scattered across six continents.
CMA CGM and Air France-KLM are gradually fulfilling their objectives to lead the world’s transportation business through this collaboration. CMA CGM aims to be a worldwide logistics leader while simultaneously assisting Air France-KLM in becoming the world’s largest carrier airline.
Huyen Tu
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