Visit of the Minister of a Sustainable development and Infrastructure Francois Bausch to China

Cargolux_747-8F_N5573S_over_Fresno

On January 14 the ministerial delegation was accepted to Zhengzhou, China. Future cooperation between Luxembourg and the Province of Henan were discussed during negotiations. This visit is devoted to purchase of 35% of shares of Cargolux by the Investment company on development of civil aviation of China (HNCA group). Total cost of purchase is 120 million dollars (87, 2 million euros).

In addition, it is also provided that China invests in development of Luxembourg airport as well as in transformation of the Zhengzhou airport into Cargolux’s main transport hub in China. It is meant that Cargolux will carry out 4 flights a week on this rout. It is supposed that total amount of additional investments on the above-mentioned purposes won’t exceed 175 mln. dollars.

Labor unions of Luxembourg consider that for China this agreement represents only «declaration» of the intentions without any legal liabilities while for Cargolux this agreement attracts legal obligations. Final ratification of the document by the central authorities of China is planned for the end of February — beginning of March 2014.

They are afraid that by making joint company with China and by providing them “know-how” and qualified personnel, Cargolux risks to lose it’s own workplaces and furthermore by doing so will create a new competitor in the person of so called “new Chinese partners”.