Cargolux, the epilogue, but not quite

My Orchids, Hybrid.  Photo ET

The Cargolux - Qatar Airways adventure lasted 17 months, a story of contradictions and contrasts. To many it was a surprise venture, and quite some thought that it couldn't succeed from the beginning. Those were right, and they watched surrealistic developments that led to a break-up last week.

First Cargolux shareholders sold 35% of their holdings to the lowest bidder, in a surprise initiative taken by Minister Frieden on a visit to Qatar. The deal was sealed after a number of closing steps that saw discrimination between the sellers. The cultural and strategic mismatch between the two companies became apparent immediately.

There was quite a discrepancy in negotiating skills, that favored QR. Its aggressive style punched the Luxembourg Board members into submission, as appeared early on during the Boeing delivery crisis. Many rather also wanted to hide from reality, and make light of QR taking advantage of CV's routes and clients. QR's dominance in the Board also was apparent when they imposed their man, Richard Forson, as CFO, and later as interim CEO. So was the nomination of "independent" Luxembourg Chairman Wildgen, labeled Mr. Qatar by the unions. Finally the unions found issue with the new style that seemed to be inspired by QR, obviously not used to democratic process and unions in its homeland. In short a mismatch, not even a marriage of convenience.

The ensuing breakup is a vaudeville.

On Thursday, the family of the Cargolux bride defended the bright prospects of the marriage. The following day the groom slammed the door. The romance that never was, was over. At issue was the Luxembourg governmental shareholders' refusal to have the QR man Richard Forson as a CEO. Which also upset the Luxembourg "independent" Chairman Wildgen, who re-slammed the door. Then Oliver Wyman's people, working on a strategy paper got the door slammed also. No more need for their strategy paper.

Today, Cargolux confirmed the door slammings. Interestingly, the Luxembourg governmental shareholders also reiterated their confidence to Richard Forson. But wait, wasn't that the issue for the door slammings? Chaos. In a US corporation, Mr Forson, because of his affiliation with QR, might have gotten another treatment, 30 minutes with security escort to the front door. But Mr. Forson is useful.  He signed the CWA cancellation the other day. This is to tell unions and employees not to cheer too much. Indeed Cargolux needs to fix problems. Among those are many wounds inflicted by the disastrous partnership initiated by Mr Frieden and that translated into an aggressive cannibalism by QR, which came to an end last week.

There are urgent things to do. One is for the government and the company to show optimism. There are enough potential partner airlines and financial solutions out there. At this juncture that optimism has to be communicated. Then thereafter comes the time for transparency and reckoning.