CMA CGM and Air France-KLM have announced the termination of their existing agreements, originally planned for ten years, less than a year after formalising their commercial partnership. The decision will be effective from March 31, 2024.
The two companies cite challenges in operating their cooperation optimally due to constrained regulatory environments in certain important markets. The collaboration involved a joint venture between EVP Cargo (Air France-KLM) and CMA CGM Air Cargo, managing a fleet of twelve freighters and utilising the cargo hold capacities of over 160 long-haul aircraft. The companies had received regulatory approvals for this collaboration, except for some key markets.
CMA CGM, involved in air freight since March 2021, had initiated routes and joint ventures with various partners, including Air Belgium. CMA CGM remains a significant shareholder in Air France-KLM but will leave the board of directors on March 31, 2024.
These are challenging times for maritime companies venturing into air freight, with reduced revenues and tightened budgets in 2023. Despite CMA CGM’s revenue growth in the third quarter, its operational profit for other activities, including air freight, saw a significant decline.