The consolidation expected in the air transport sector at the end of the pandemic has just had its first surprise guest. Air France-KLM and the French container ship operator CMA CGM announced on Wednesday 18 May that they had concluded “strategic partnership” to jointly exploit their air freight capacities. On the occasion of this merger, the world’s third largest container ship operator will join the Franco-Dutch company.
It might eventually hold up to 9% of the capital. “This investment might take place during the capital increase of Air France-KLM as envisaged in the announcement made on February 17”, announced the two groups. With a 9% stake, CMA CGM will become the fourth largest shareholder behind the French State (28.6%), China Eastern (9.6%) and the Netherlands (9.3%). It will overtake the American Delta Airlines, which has only 5.8% of the shares.
A delicate posture
The partnership of the two companies in freight illustrates the rise of this activity during the pandemic. Blocked at home during the multiple confinements around the world, consumers have increasingly become accustomed to placing orders on the Internet. A new mode of consumption that made airlines happy during the crisis. Thanks to the transport of millions of e-commerce packages, they were even able to pay the fixed costs of empty leg flights. And save themselves from bankruptcy.
This freight boom has not escaped CMA CGM. A little over a year ago, in February 2021, the carrier ended a merger with the Dubreuil group, owner of Air Caraïbes and French Bee. At the time, the logistician was discussing a stake in the capital of these two airlines. Ultimately, he preferred to go solo in air freight with his own company CMA CGM Air Cargo and the purchase of four Airbus A330s.
The merger with CMA CGM might allow Air France-KLM to establish itself as one of the world leaders in freight
For Air France-KLM, the emergence of CMA CGM is as much a surprise as a confirmation. Mowed down in full flight by the pandemic, the Franco-Dutch company had to be strongly supported at arm’s length by the State. Saved from bankruptcy by the money of the taxpayer who will have lent seven billion euros, Air France-KLM is not out of business. To reduce its indebtedness, the company still needs to be recapitalised. It is expecting an additional four billion euros. A delicate financial position that falls badly. Just as the consolidation of the aviation sector is starting all over the world.
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