You cannot possibly be suggesting that Luxembourg authorities would put thousands of passengers safety at risk by awarding Strategic an AOC to annoy the French? I think perhaps not!
Why do Strategic use a .co.uk website address, and proudly announce the opening of a new UK Division, yet opt for a quick fix, no questions asked Luxembourg AOC ? What's wrong with obtaining a proper 'all questions asked' UK AOC ?
I can tell you now the relevant authorities would not allow the airline to begin flights if there was any doubt whatsoever about their safety! EVERY airline operating within the EU has to undergo the same safety checks and maintain the high standards expected, so whether the aircraft are registered in Britain or Luxembourg is completely irrelevant.