Cargo Facts
SUBSCRIBE
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Thursday, February 25, 2021
Log In
No Result
View All Result
  • Aircraft Leasing
  • Capacity & Demand
  • Carriers
  • E-Commerce
  • Engines
  • Express
  • Freighter Aircraft
  • Freighter Conversions
Cargo Facts
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Log In
No Result
View All Result
Cargo Facts
No Result
View All Result

The deal is done — Henan to buy 35% of Cargolux

David Harris by David Harris
November 29, 2013
in News Archives
Share on FacebookShare on TwitterShare on LinkedIn

Reports in the European media today indicate that the Grand Duchy of Luxembourg agreed to sell a 35% stake in all-cargo carrier Cargolux to Henan Civil Aviation Development & Investment Co (HNCA) for US$231 million. Full details are not available yet, but it appears the deal includes the following:

  • Zhengzhou, the capital of Henan province in China will become a second hub for Cargolux, and the carrier will operate four weekly freighter flights between Luxembourg Findel Airport (LUX) and Zhengzhou’s Xinzheng Airport (CGO).
  • HNCA, despite being a minority shareholder, will hold a blocking rights. That is, it will be able to veto any decision proposed by Cargolux’s Executive or Supervisory Board.
  • Job guarantees demanded by the unions representing Cargolux’s workers are not written in to the agreement
  • The agreement does not preclude the relocation of Cargolux business segments to Henan.
  • The $231 million price tag includes an undisclosed amount for promoting Cargolux operations between LUX and CGO. And, in addition, a further $15 million is reported to have been set aside to compensate the airline for losses expected on the LUX/CGO route in its early operation.

In addition to the above, at least one source reports that a commercial agreement signed earlier this month requires Cargolux to station not less than one third of its fleet at CGO.

There are many in the industry who see this as a bad deal for Cargolux, forcing it to operate from not one, but two, sub-optimal hubs — a deal forced on the carrier by EU law forbidding government ownership. But Zhengzhou is one of the most important centers of IT manufacturing in the world. It has a population of over 8 million, is the economic and political center of Henan province, and is a major transport hub for central China. So there is potential for success as well as failure. We shall see.

Previous Post

The steaks are high for Air Charter Service

Next Post

Cargonews Asia Joins Cargo Facts Asia 2014 as a Media Partner

Related Posts

GAMECO adds third conversion line for Boeing
Freighter Conversions

GAMECO adds third conversion line for Boeing

February 9, 2021
UPS starts 2021 with record Q4 profits, international volumes
Express

UPS starts 2021 with record Q4 profits, international volumes

February 4, 2021
Atlas says Southern to begin flying 2 Amazon 737-800Fs this month
Freighter Aircraft

BlackRock ups shares in Atlas Air as institutional investors warm up to airfreight

January 27, 2021
Next Post

Cargonews Asia Joins Cargo Facts Asia 2014 as a Media Partner

Leave a Reply Cancel reply

Your email address will not be published.

By subscribing you agree to our Terms of Use and Privacy Policy

Get Latest Issue

CARGO FACTS CONSULTING

CFC: U.S. air trade down 6% in 2020

CFC: U.S. air trade down 6% in 2020

February 19, 2021
Return to the skies of passengers doesn’t spell the end of passenger freighters

Pax freighters deliver capacity ‘lifeline’ to secondary markets

January 29, 2021
  • About Us
  • Help Center
  • Privacy Terms
  • ADA Compliance
  • Advertise

Follow Us

twitter twitter linkedin podcast

© 2021 Royal Media & Cargo Facts

No Result
View All Result
  • News
    • All News
    • Aircraft Leasing
    • Capacity & Demand
    • Carriers
    • E-Commerce
    • Engines
    • Express
    • Freighter Aircraft
    • Freighter Conversions
  • Data
  • Multimedia
  • Magazine
    • Issues Archive
    • Weekly Update
  • Events
  • Consulting
  • Subscribe
  • Log In / Account

© 2021 Royal Media & Cargo Facts

Go to mobile version