France’s CMA CGM has launched a new air cargo division as it continues its strategic drive into the aviation sector.
The container shipping giant has purchased four freighter aircraft that will be used to complement its shipping services.
The move marks a further push into aviation by the Marseilles-based company just months after it took a minority share in a French airline.
Major milestone
CMA CGM has been diversifying its logistics operations for more than two years.
Its new air cargo division has been launched in “response to the growing demand from our customers for agile logistics solutions”, said group chairman and chief executive Rodolphe Saade.
“This is a major milestone in the development of our logistics services,” he said.
The new air cargo division will begin operations with four Airbus A330-200F aircraft that came into service between 2014 and 2016.
Operation of the aircraft will be entrusted to an unnamed European airline, the company said.
But the company will seek to "leverage commercial partnerships with airlines in order to deliver global coverage", Saade said.
Historic pattern
CMA CGM has been building up its network in the logistics arena for more than two years.
In that time, it has built up its stake in Swiss group CEVA Logistics to 97.89% following a takeover offer in 2019.
In September 2020, CMA CGM acquired 30% of Groupe Dubreuil Aero, a French airline which owns Air Caraibes and French Bee.
The liner company also subscribed to capital increase of €50m ($60m) in the airline, as well as buying other shares, in a total investment worth around €70m.
Groupe Dubreuil controls 14 modern long-haul aircraft, including eight Airbus A350s with a capacity of 15 to 25 tonnes of freight.
CMA CGM, which has a fleet of 502 boxships, saw profits surge in November due to higher volumes and freight rates.
Net income rose to $567m for the third quarter of the year, compared with $45m in the same period in 2019.
The improvement was nearly wholly attributable to its shipping division.
The company saw net income increase to $566m in the third quarter, compared with $90m in the same period last year.
