Air France-KLM and CMA CGM to Dissolve Joint Venture and Open Door for Shareholding Changes

Air France-KLM and the French shipping conglomerate CMA CGM are set to conclude their joint venture on March 31, 2024, just one year after its initiation. This dissolution also signals a potential shift in CMA CGM’s involvement in Air France-KLM’s shareholding, possibly leading to an accelerated exit from the airline group.

The decision to end the joint venture, which started in April 2023, is attributed to challenging regulatory conditions in key markets, notably impacting optimal cooperation. According to Reuters, which cited anonymous sources, a significant regulatory hurdle was encountered in the United States, particularly concerning disagreements over slot allocations at Amsterdam Schiphol Airport.

Despite the termination of this venture, discussions are underway between Air France-KLM and CMA CGM regarding future commercial cooperation as separate entities after March 31, 2024.

CMA CGM, which currently holds a 9% stake in Air France-KLM acquired in 2022, is the third-largest and the largest private shareholder in the airline group, following the French (28.6% stake) and Dutch (9.3% stake) governments. The companies have agreed to shorten the lockup period, previously set to prevent CMA CGM from selling half of its shares before June 15, 2025, and the remainder until June 15, 2028, now ending in February 2025. Additionally, CMA CGM will relinquish its seat on the Air France-KLM board by the end of March 2024.

The initial partnership involved joint commercialization of cargo capacities, including Martinair (Netherlands) and CMA CGM Air Cargo’s freighter capacity, along with the bellyhold capacity of Air France’s fleet. The partnership was originally planned to last until 2033.

CMA CGM Air Cargo’s current fleet, according to ch-aviation fleets advanced module, includes three A330-200Fs (with another pending transfer from Air Belgium) and two B777-200Fs. Martinair operates one B747-400(BCF) and three B747-400ERFs, while Air France has two B777-200F freighters, although not part of the joint venture.

This development marks a significant shift in the strategic partnership between Air France-KLM and CMA CGM, reflecting the complexities of navigating global regulatory environments and the evolving dynamics within the air cargo industry.