Cargolux - Not looking good
Thread Starter
Join Date: Nov 2009
Location: Near Here
Posts: 10
Likes: 0
Received 0 Likes
on
0 Posts
Cargolux - Not looking good
Lloyds List Today
Unions at Cargolux fear that the Luxembourg-based cargo airline could fall under Qatari control in a proposed recapitalisation move.
Qatar Airways acquired a 35% stake in the cargo airline, currently 65%-owned by the Luxembourg state, in September 2011.
“We are likely to know more about the recapitalisation tomorrow [11 October] following a meeting of Cargolux’s management committee and board,” OGBL union spokesman on aviation affairs Hubert Hollerich told Lloyd’s Loading List.com.
A cash injection of €750 million, spread over a three- to four-year period, has been mooted in the Luxembourg media.
“In our view, the Qatari investors in Cargolux will seize the opportunity to push for a majority stake in the airline, and we have written to the Luxembourg government to demand that the state keeps its controlling stake,” said Hollerich.
“We are not against recapitalisation, but we want the state to re-inforce its shareholding in the company through it,” he added.
The OGBL is also unhappy at recent comments to the union and the press by Cargolux’s interim CEO, Richard Forson, on the possibility of relocating the cargo carrier’s aircraft maintenance activities to the Middle East as part of cost-cutting measures.
“Is it a co-incidence that a large hangar facility is opening in Doha later this year?” asked Hollerich. “Cargolux’s aircraft maintenance employs 450 staff. There would be a massive impact on jobs.”
Forson also told the union that a number of other projects were being explored as part of a strategic review, including the outsourcing of the Flight Crew department and the re-registering of Cargolux’s aircraft in Qatar, Hollerich said.
“While nothing has been decided on these ’options’ at this stage, it is very worrying that those at the top at Cargolux atre thinking in this direction."
Tomorrow’s board meeting is also set to consider whether to offer the CEO job to Forson – also the carrier’s CFO – on a permanent basis. He has occupied the post since August following the departure of Frank Reimen who quit to take up a Luxembourg government post.
No one at Cargolux was available to comment on the union’s claims or on the possible recapitalisation.
In March, Cargolux Chairman Albert Wildgen revealed to Lloyd’s Loading List.com that if the level of losses the carrier made in the early months of 2012 was prolonged, recapitalisation would be required.
Unions at Cargolux fear that the Luxembourg-based cargo airline could fall under Qatari control in a proposed recapitalisation move.
Qatar Airways acquired a 35% stake in the cargo airline, currently 65%-owned by the Luxembourg state, in September 2011.
“We are likely to know more about the recapitalisation tomorrow [11 October] following a meeting of Cargolux’s management committee and board,” OGBL union spokesman on aviation affairs Hubert Hollerich told Lloyd’s Loading List.com.
A cash injection of €750 million, spread over a three- to four-year period, has been mooted in the Luxembourg media.
“In our view, the Qatari investors in Cargolux will seize the opportunity to push for a majority stake in the airline, and we have written to the Luxembourg government to demand that the state keeps its controlling stake,” said Hollerich.
“We are not against recapitalisation, but we want the state to re-inforce its shareholding in the company through it,” he added.
The OGBL is also unhappy at recent comments to the union and the press by Cargolux’s interim CEO, Richard Forson, on the possibility of relocating the cargo carrier’s aircraft maintenance activities to the Middle East as part of cost-cutting measures.
“Is it a co-incidence that a large hangar facility is opening in Doha later this year?” asked Hollerich. “Cargolux’s aircraft maintenance employs 450 staff. There would be a massive impact on jobs.”
Forson also told the union that a number of other projects were being explored as part of a strategic review, including the outsourcing of the Flight Crew department and the re-registering of Cargolux’s aircraft in Qatar, Hollerich said.
“While nothing has been decided on these ’options’ at this stage, it is very worrying that those at the top at Cargolux atre thinking in this direction."
Tomorrow’s board meeting is also set to consider whether to offer the CEO job to Forson – also the carrier’s CFO – on a permanent basis. He has occupied the post since August following the departure of Frank Reimen who quit to take up a Luxembourg government post.
No one at Cargolux was available to comment on the union’s claims or on the possible recapitalisation.
In March, Cargolux Chairman Albert Wildgen revealed to Lloyd’s Loading List.com that if the level of losses the carrier made in the early months of 2012 was prolonged, recapitalisation would be required.
Join Date: Nov 2008
Location: A parallel universe.
Posts: 114
Likes: 0
Received 0 Likes
on
0 Posts
That 750 million "cash injection" makes it sound very dramatic, but I wonder what makes up those 750 million. Does it include things like aircraft financing? Does it include the financing of (expensive!) 777F's that QR wants us to fly? Financing all the crew (re)training?
Like with any normal business plan, when you have costs/financing (read: cash injection) on one side, you also have income/revenue on the other side.
For the sake of scaremongering, this income/revenue side of the equation is completely left out of the press releases in order to make it sound as if someone (a nice Samaritan from the Middle East) has to dump 750 million into a black hole for the sake of charity. Well it's not, there's also a revenue/profit side to the equation!
A lot of hot air about nothing...
Exactly! Why start another thread?! 
Mods, could you please integrate this thread into the "Cargolux details requested" thread in order to improve the readability?
Like with any normal business plan, when you have costs/financing (read: cash injection) on one side, you also have income/revenue on the other side.
For the sake of scaremongering, this income/revenue side of the equation is completely left out of the press releases in order to make it sound as if someone (a nice Samaritan from the Middle East) has to dump 750 million into a black hole for the sake of charity. Well it's not, there's also a revenue/profit side to the equation!
A lot of hot air about nothing...
Very interesting, but why start ANOTHER thread about CV
Mods, could you please integrate this thread into the "Cargolux details requested" thread in order to improve the readability?
