French logistics giant CMA CGM has recently made headlines by submitting a bid to take over the cargo operations of Air Belgium, a struggling airline that has faced significant challenges over the past few years. The move comes on the heels of a recent court ruling that revoked Air One Belgium’s attempt to acquire Air Belgium, prompting the re-evaluation of potential buyers in a critical moment for the airline.
Earlier this month, on March 6, 2025, the business court of Walloon Brabant ruled that Air One Belgium, a consortium consisting of Air One International Holdings and PESO Aviation Management, could no longer proceed with its proposed takeover of the beleaguered airline. This legal verdict has set the stage for CMA CGM’s bid, which aims to acquire Air Belgium’s cargo operations while keeping the Air Belgium name and brand intact.
The upcoming hearing on March 27, 2025, will be vital as the Walloon Brabant Business Court examines CMA CGM’s proposal. The bid includes the acquisition of Air Belgium’s cargo business along with its four existing aircraft. CMA CGM, already well-known for its maritime cargo services, launched its air cargo branch, CMA CGM Air Cargo, in March 2021 and has since significantly expanded its operations.
The company currently operates four freighters: three Boeing 777Fs and one Airbus A330F, with another two Boeing 777Fs expected to join their fleet soon. Furthermore, CMA CGM has ambitious plans to enhance its cargo capabilities with the addition of eight new generation Airbus A350 freighters, although delays have pushed the entry-into-service date to the latter half of 2027.
In a related turn of events, Air One Belgium has announced its intention to appeal the recent court decision, which blocked its takeover bid. The appeal is scheduled for April 3, 2025, as the consortium argues that it has satisfied all obligations to finalize the acquisition of Air Belgium’s operations.
This situation is particularly urgent for Air Belgium, which has been in financial turmoil for an extended period, experiencing severe operational difficulties stemming largely from the economic impact of the COVID-19 pandemic. In September 2023, the airline made the strategic decision to discontinue its passenger operations altogether to focus exclusively on cargo and ACMI (Aircraft, Crew, Maintenance, and Insurance) services. This pivot was necessary to prevent further financial decline as the company sought to stabilize its operations and reduce overhead costs.
The challenges facing Air Belgium are reflected in the court's recent deadline, which mandates the company find an alternative investor or risk liquidation by March 27, 2025. In light of these pressures, CMA CGM’s proposal comes at a crucial time when Air Belgium is searching for solutions to secure its future and retain jobs. Reports indicate that, under the terms proposed by Air One Belgium, 197 of the 401 employees based at Brussels Airport would be retained, underscoring the importance of preserving jobs during this tumultuous period.
CMA CGM and Air Belgium have a history of collaboration, with Air Belgium previously operating flights for CMA CGM Air Cargo when the latter first entered the air freight market. However, the dynamic shifted when CMA CGM decided to venture into air cargo independently. The proposed deal would not only help maintain the Air Belgium brand but could also integrate its existing workforce into CMA CGM’s expanding operations.
As the scrutiny over the bids intensifies, the focus shifts on whether CMA CGM’s bid can provide a sustainable solution that addresses Air Belgium's ongoing operational challenges while ensuring the viability of its cargo services. Any decision hinges on the outcome of the court review later this month and the subsequent appeal filed by Air One Belgium, leaving Air Belgium’s fate hanging in the balance.
Industry observers are keenly watching how this situation unfolds, as it might set a precedent for future acquisitions within the fragile aviation sector, which has been grappling with aftershocks from the pandemic. With competition increasing in air cargo apart from the maritime domain, securing a robust cargo operation can bolster CMA CGM's presence in a rapidly evolving market.
In conclusion, the next few weeks will be crucial for Air Belgium as it navigates through this complicated scenario. The outcomes of the upcoming court hearings will determine whether CMA CGM’s venture into the airline's cargo operations will materialize, or if Air One Belgium can resurrect its bid amid mounting challenges. The stakes are high, as the decisions made will not only impact the company’s future but also affect the lives of those who work for it.
