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!
I am sure they did not set out to annoy the French. Maybe be people in Luxembourg are cut off from the internet like the people in Egypt, or they simply do not read the aviation press.
Luxembourg is a tiny place. How do you expect them to exercise proper oversight over Strategic when their aircraft are based in the UK. I guess this is the exact reason why Startegic chose this bizarre setup.
UK CAA - forewarned is forearmed. Keep your eyes on those windshields