CMA CGM and Air France-KLM have announced plans to call of the air cargo alliance.
The alliance was formed in May 2022, but concurrently as CMA CGM became a shareholder of Air France-KLM, it would aim to capitalize on the growing demand for freight transportation worldwide.
It is reported that the idea to end the alliance between the partners originates from a row over flight slots at the Amsterdam airport, an issue that has cast doubt on regulatory approval, particularly in the US market which is crucial to both the parties.
The companies released a joint statement citing the “tight regulatory environment in certain important markets” as a major hurdle to their collaboration. As a result, Air France-KLM and CMA CGM have announced their withdrawal from existing agreements, effective from 31 March 2024.
As the companies part ways in their air cargo venture, they are engaged in discussions about the terms of future cooperation as independent operators in the industry.
Despite the termination of the cargo alliance, CMA CGM will maintain its status as a core shareholder of Air France-KLM. However, the Marseille-based company will step down from the board of Air France-KLM on 31 March.
