Cargolux Boeing 787-8F / © Cargolux
China's HNCA acquires a 35% stake in Cargolux
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03DEC2013
Cargolux (CV, Luxembourg) is set to welcome China's Henan Civil Aviation Development & Investment Co (HNCA) as its new 35% shareholder after the Grand Duchy of Luxembourg approved the USD231million deal. Among the details agreed include the establishment of Zhengzhou as Cargolux's second hub after Luxembourg with provision for a 4x weekly service between the two cities. Zhengzhou is an important IT manufacturing hub. According to Cargofacts, the agreement does not preclude the relocation of Cargolux business segments to Henan. In terms of voting rights, HNCA will be able to veto any decision proposed by Cargolux's Executive or Supervisory Board. In terms of labour and job security, the OGBL union has voiced its own concerns about possible outsourcing of jobs and operations to China, despite a government pledge that it would not happen and a similar promise in a draft commercial agreement.