Cargolux directors outline new business plan

Following the withdrawal of Qatari investment in November, the future of European all-cargo carrier Cargolux Airlines has provoked speculation within the industry, with the company relying on the Luxembourg government to take up the slack until a new shareholder takes on the remaining 35 percent stake in the business.

Today, the board of directors at Cargolux have released a new business plan for the period until 2017 which is designed to achieve ‘profitable growth, enhance shareholder value and ensure the long-term sustainability’ of the company, according to an online statement.

The board plans to request the shareholders of Cargolux (including state airline Luxair, banks BCCE and SNCI and the Luxembourgish government) to commit additional liquidity to the airline, with a first tranche of US$ 100 million requested for the first quarter of 2013 in the form of a convertible loan. The Board believes that this decision will enhance the government’s position in the ongoing discussions with potential new shareholders.

‘This is an important milestone for Cargolux in securing its sustainability. Going forward, all stakeholders will need to contribute their part to ensure this plan’s success. I am confident in the leadership team’s ability to execute it together with the airline’s highly skilled and dedicated employees,’ said Paul Helminger, Chairman of the Board of Directors. 

Commenting on the business plan, Richard Forson, Interim President and CEO, said: ‘We have a clear vision for the future which is founded on the strengths of the Cargolux business model. By continuing to put customers first while further improving our flexibility and resilience, this business plan will help us meet the challenges ahead and ensure that Cargolux remains a relevant player in the long run’.