The Air France-KLM alliance and CMA CGM, a new global leader in air cargo
Less than a year after its launch, the commercial joint venture between Air France and CMA CGM is now operational. This partnership in the very dynamic air cargo market has made the two players the European leaders in the sector.
The air fund is freight for Air France-KLM and CMA-CGM. The commercial joint venture between the two companies in this segment is now operational.
Timetable respected. Announced in May 2022 and due to come into effect at the beginning of 2023, the partnership between Air France-KLM and CMA CGM is now effective. On Monday April 3, the airline and the shipping company announced that their alliance, having received the green light from the competition authorities, is now fully operational. The two partners are pooling their strengths for an initial period of ten years, in order to take full advantage of the growth of air freight. This should put them in the top 10 worldwide and the top 3 in Europe, although it is not possible to be more precise as the rankings vary according to their criteria.
In the air transport sector, this merger between the Franco-Dutch company and the Marseille-based company is not a marriage between rabbits and carp. Air France-KLM and CMA CGM are pooling their capacities and their network of destinations in order to gain shares in the highly competitive and promising cargo market. In detail, the alliance includes flights operated by Air France, KLM, Martinair and CMA CGM Air Cargo. By the end of 2022, air cargo activity had almost returned to pre-pandemic levels, according to the International Air Transport Association (IATA). This dynamism must be qualified, as overall demand in 2022 will be 8% lower than in 2021, despite a 3% increase in capacity.
A fleet of 12 cargo aircraft... and 160 long-haul aircraft
The airline, which had abandoned this segment during the 2000s, wants to relaunch itself and intends to take advantage of its global hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol airports. As for CMA CGM, its desire to diversify has led it to explore new areas, outside the maritime sector: it acquired a 9% stake in Air France-KLM last May. Clearly, with this commercial joint venture, each will be able to sell the other's capacities. Customers will have direct access to a dedicated online platform, called "myCargo", as well as to digital services available at all times.
Air France-KLM and CMA CGM will jointly operate a fleet of world-class all-cargo aircraft. Air France-KLM will operate six aircraft (two Boeing 777Fs and four Boeing 747s) and CMA CGM will operate the same number (four A330-200Fs and two Boeing 777Fs). To these 12 aircraft should soon be added 6 aircraft on the CMA CGM side (4 A350 F and 2 Boeing 777) and 8 on the Air France-KLM side (8 A350 F), partly for renewal needs. However, 80% of Air France-KLM's cargo is transported via the holds of passenger aircraft. The agreement signed between the two partners includes the use of Air France-KLM's fleet of 160 long-haul aircraft.
Air France-KLM and CMA CGM do not claim to want to match the capacities of the biggest air cargo players, such as FedEx, the world's number one with a fleet of more than 650 aircraft in service, or UPS with nearly 300 aircraft. The pair is targeting more high-value-added services, such as the transport of medicines, animals and even works of art. Air France-KLM was recently entrusted with the transport of the sarcophagus of Ramses II, which was transferred from Cairo (Egypt) to Paris for an exhibition organized in April at La Villette.
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