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French shipping giant CMA CGM and French-Dutch carrier Air France-KLM will terminate their air freight alliance effective March 31 citing regulatory hang ups, according to a statement. Both companies intend to continue collaborating on cargo, but under new terms allowing the pair to operate independently. CMA CGM will continue to hold substantial shares in Air France-KLM, but will step down from its board of directors and an existing share lock-up agreement will also be amended, the statement added.
What are the hang ups? A dispute over flight slots at Amsterdam’s Schiphol airport led US antitrust regulators to increase scrutiny over the alliance’s operation in the United States, Reuters reported. The developments saw the partnership’s likelihood of receiving clearance for entry into the large US market drop substantially, the newswire said.
