Cargolux: a Strategy of Evasion and Silence

My Orchids. Naples, Florida.  Photo ET.

Two meetings within a week, on October 18th and on October 23rd, yielded little comfort for Cargolux employees. I understand that the first meeting between two members of the government, MM Schneider and Wiseler and the Unions gave some general indication that the government would not be disinclined  to consider favorably, of course circumstances allowing, to maybe eventually give all support as it may become available to Cargolux.

Not much else could be said. One has to wait for the various consultants to make their expert studies available first. I hope though that even without those expensive consultants, management has some idea in what shape their companies around the airport are. Aren't they the greatest experts of their own companies? So there is an imminent crisis, and decisions can be delayed for another couple of months? That's called evasion and conspiracy of silence. 

There is news however, through Radio 100,7 as related by tageblatt today, and if true, needs some explaining. The story is about a strange timeline and a surprise deal with Qatar Airways acquiring 35% of CV, that Minister Frieden is said to have done unbeknownst to other players. 

It sounds quite surprising that Mr. Frieden, who would easily claim that the government has no say in the affairs of Cargolux, a "private company", would go to Doha and sell a 35% stake in the name of that "private company". Even stranger would be the fact that among those 35% of existing shares were those not belonging to a government entity but a private company BIP. I would not have sold 35% for $117,5 million without a capital injection, if I could have had $175 million and a $100 million loan for the company from Yangtze. Help me understand. 

Any way, here is the timeline, according to tageblatt:

• Cargolux and Qatar Airways were negotiating a partnership, but they failed to reach an agreement and broke up their negotiations (ca 2010?).
• One year later, in February 2011, Minister Frieden travels to Doha, and to the general surprise comes back with the now well known 35% CV-QR agreement. Oops, he didn't know about the broken up negotiations, because he is not a CV Board member. So, what was his mandate, to negotiate in the name of others, as usually we are informed that the government cannot interfere with CV, because it is a "private company"? Why wouldn't the 35% sellers have agreed to rather sell their shares to Yangtze for almost $60 million or 50% more? 
• One year later, 2012, CV is worse off than a year ago.

That's a surprising action to sell a so-called "private company", where you cannot interfere, without the company knowing it, at a price that was not the best price available.

Update Oct.24. 
The heralded "Round Table" did not bring any result. Decisions can only be taken as soon as reports such as the Wyman report are available. As those conclusions, probably known to insiders from the beginning, a were not available, it was Berthold Brecht in the reverse: Imagine there is no war, and everybody attends. But there is another conclusion from all the above: don't talk to the ministers who don't know anything. Talk to Mr. Frieden only.