European Routes May Face Changes

The French shipping giant CMA CGM has submitted an application to acquire the cargo business of Air Belgium.

Earlier this month, the Walloon Brabant Commercial Court ruled to annul the acquisition of Air Belgium by Air One Belgium, requiring Air Belgium to find a replacement investor by March 27, or face liquidation. CMA CGM subsequently took this acquisition application action.

Air One Belgium is a consortium composed of PESO Aviation Management and Air One Holding International, which has appealed the ruling, with a hearing scheduled for April 3.

CMA CGM's proposal will be reviewed by the court later this month, including the acquisition of Air Belgium's cargo business, retaining the Air Belgium brand and its four aircraft.

The CMA CGM Group launched its air cargo business in March 2021, currently operating four cargo aircraft, with two more to join the fleet this year. Starting from 2026, CMA CGM Air Cargo will use eight next-generation A350 cargo aircraft to enhance capacity.

CMA CGM is familiar with Air Belgium, having started cooperating with Air Belgium on cargo business in 2021. Last week, as part of a $20 billion investment plan in the United States, CMA CGM announced it would establish a new air cargo hub in Chicago and deploy five new Boeing 777 cargo aircraft, operated by American pilots.

Air Belgium was founded in 2016 and began operating long-haul passenger flights and cargo business in March 2018. The company struggled to maintain operations when the COVID-19 pandemic swept through the industry, forcing it to ground flights and convert passenger aircraft into cargo planes for medical transport. Affected by COVID-19, the Ukraine war, soaring fuel prices, inflation, and decreased consumer purchasing power, Air Belgium ceased passenger operations in September 2023, focusing on air cargo and passenger-cargo flight leasing. The company currently operates two Airbus A330-200 and two Boeing 747-8F aircraft. In September 2023, the company was placed under judicial supervision, entering judicial liquidation proceedings a year later.