Franco-Dutch airline firm Air France-KLM has cut short its cargo agreement with French shipping giant CMA CGM. The deal was commercial, but CMA CGM’s investment and partnership also extended the freight carrier taking a seat on Air France-KLM’s board of directors.
The agreement was made in May 2022 and was effective from April 2023, but will cease at the end of March 2024.
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The partners described the change as an “evolution” in their relationship but explained that a “tight regulatory environment” in key markets meant they would end their current agreements.
“As a consequence, Air France-KLM and CMA CGM today announce their decision to withdraw from their existing agreements from 31 March 2024,” a statement added.
Although the firms said they were engaged in discussions on terms post-31 March, but Air France-KLM said they would “operate independently” from the start of April.
This means the representative of the French shipping giant will step down from their position on the Air France-KLM board.
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By GlobalDataAlthough CMA CGM will, for now, remain a major shareholder in the dual-airline company, the agreement to cease the partnership includes a major amendment to the share lock-up previously agreed.
The initial lock-up on all Air France-KLM shares subscribed by CMA CGM was set to expire on June 15, 2025, meaning the cargo shipper could not offload the shares before June next year.
This date has been brought forward and the lock-up will now expire in February 2025.
