French carrier CMA CGM and Air France-KLM have agreed to cease their air cargo partnership, citing regulatory restrictions.
The partnership announced in May 2022, with CMA CGM becoming a shareholder of Air France-KLM, was part of the Rodolphe Saadé-led company’s expansion move beyond its liner base during container shipping’s greatest bull run.
The long-term strategic alliance became effective in April 2023 and was initially expected to last for 10 years. However, the two companies said that a tight regulatory environment in certain important markets had prevented the cooperation from working optimally, leading them to withdraw from their existing agreements from March 31, 2024.
“Air France-KLM and CMA CGM have begun discussions on new terms and conditions of a commercial relation to operate independently from March 31, 2024, onwards,” the companies said in a statement, adding that CMA CGM will keep its shareholding in Air France-KLM but will exit the company’s board of directors.
CMA CGM established its air cargo division in February 2021. The Marseille-headquartered firm is on course to overtake Maersk, which launched its air cargo unit in April 2022, as the world’s second-largest liner based on its massive orderbook of over 100 ships, according to Alphaliner.
