Cargolux/Atlas?

[partyreptile]

Cargorat2; a question which is floating round over in the states--there is a rumor that Atlas Air , or most likely one of its subsidiary companies, has purchased the shares of Cargolux previously owned by Swissglobal. Would you have any information on this, or would you know anyone who might be able to comment?
Thanks, reptile.

[Noddy Staltern]

Yes this is true. This is the reason that AFX lost their contract work for Cargolux. Atlas bought in to Cargolux and so picked up the work that AFX were doing.

[Intruder]

Do you have any references you can point to that confirm Atlas' buy-in to Cargolux?

[CR2]

The rumour that Atlas would buy into Cargolux has been going around for the last 5-6 years that I can think of. That aside, to the best of my knowledge, the shares are still in the hands of a swiss bank. Problem is that the shares are not exactly a bargain, since we again posted a pretty good profit last year (considering 9/11, fuel prices).
The comment about AFX is not correct. Atlas offered us N537MC (which is an ex CLX -200 NCD aircraft with far superior performance) for a bargain price (so I'm told).
I've heard a rumour that the Luxembourg Govt would buy the shares. I just wish we'd damned well buy them ourselves. As you may be aware, we've been without a CEO for a year now. We won't get a new one until the shares question is resolved. Obviously someone who buys 33.7% will want a say in who the CEO will be.
I've heard a rumour that Atlas has in fact bought +-20% of Cargolux.
I've heard so many rumours, that I can't even remember them all!!!
There are plenty of things going on behind the scenes.

I do see a certain inevitability about these rumours though. We have had a couple of your management types over here to "indentify & discuss any possible synergies". I understand nothing really came out of it for the time being.

So, the short answer is that like most people, I don't really know, but have certainly heard the same kinds of rumours.

rgds

Edit: just a correction: SwissGlobal did not own the shares, it was Swissair. SwissGlobal was the name Panalpina adopted when they got together with SwissCargo. They now call themsevles ASB Air.

[Noddy Staltern]

In that case I stand corrected - apologies.

[CR2]

Asked a few sources. Atlas has NOT bought shares in Cargolux, and the Luxembourg Government will NOT ALLOW Atlas to buy shares in Cargolux.
Not suprising, since a European carrier would similarly not be allowed to buy into Atlas.

[Wino]

Not true a European carrier can by 49 percent of an American carrier and control 25 percent of the voting stock, as BA did with USair in the early 90s.

Cheers
Wino

[freightdoggy dog]

Who would buy 49% of a company to get 25% of the voting rights? Sounds like voodo economics (Regan,Enron et al) to me.

[CR2]

Wino: Accepted (in theory) 5Y is a flag carrier doing CRAF work. Practically, no way.

[Hunter58]

GR2

actually an other little correction, the shares were held by SAirLogistics and were tarnsferred to SAirGroup when the former was closed down.

They still are in hands of the Administrator, and there were a few contacts, as I understand, but no one from Altas has ever taken up a contact with the Administrator.

And I don't see the sense of Atlas getting into Cargolux anyway, unless it is to drive down a profitable airline and make an even bigger mess...

[CR2]

Thanks H58, you're right of course. Had forgotten about Logistics.
$15.4m net profit is better than a kick in the teeth considering the difficult circumstances these last months.