Chinese interested in Luxembourg stake in Cargolux

The government of Luxembourg is negotiating with Chinese investors over the sale of its stake in Cargolux, Europe’s largest all-cargo airline, reports the Journal of Commerce (JOC). The government of the Grand Duchy said it is in “close talks” with HNCA, one of several companies that have expressed an interest in buying its 35% stake in Cargolux. The Luxembourg government has also held negotiations with China’s HNA transport and logistics group, and Russia’s Volga-Dnepr, owner of scheduled cargo carrier AirBridgeCargo. Luxembourg acquired the stake in late 2012 from Qatar Airways, which invested in Cargolux in the previous year as part of a plan to become one of the world’s top cargo carriers by 2015. Qatar Airways severed links with Cargolux following a dispute over strategy and re-sold its stake for the original price of US$117.5 million. Cargolux’s loss almost doubled to US$35.1 million in 2012, from US$18.3 million in the previous year, and traffic dipped 2% to 646 000 tonnes. The world’s 10th largest air freight carrier said traffic increased 13% year-over-year in the first six months of 2013, and it expects to grow at the same pace in the second half.