Wednesday, October 9, 2013

Cargolux, the plot thickens.



My Orchids. Phalaneopsis. Let a hundred flowers bloom. Mao Zedong. Photo ET

Cargolux, the plot thickens

This is going too fast. Many people didn't notice yet that we are now in a new movie. The goal is no longer to look for a "strategic partner" of the first type, another Cargo airline with "synergies". Such as QR or HNA were. Which is a difficult undertaking, as we all know by now. Because cannibalism is rampant.

The new movie is Mr. Wiseler goes to China, and builds an airport, and an airline, something like a startup, with as the new partner, HNCA, which as we understood is no longer HNA, the airline.  At HNCA they have no airline, no plane, but maybe some Renminbis to help creating one. It is a startup. The rest is Venture Capital from Cargolux, I assume? That's a change for once for BCEE and other shareholders, from the drab mortgages and subsidy business. One of these days, we'll probably get an explanation on how this works, and how this helps Cargolux.

One thing for sure resurfaced today. We needed to hear that story again about why the Luxembourg government has to sell its shares. As I repeatedly said, the argument goes that it is the European Commission. The unelected phalanx in Brussels spots an "unfair competition situation", if the Luxembourg government is a shareholder and participates in a capital increase next year to keep the company capitalized.

Hearing that nonsense again today, I was shaken by laughter. So we solve the problem that the Luxembourg government cannot be a shareholder, by substituting the Luxembourg government with a Chinese Provincial government? We lose control, and if things don't go our way, this weakens or puts out of business our struggling airline, because it would have an unfair advantage if our government keeps it from going under? If I save a man from drowning, he just had an unfair advantage?

Now, let's not be pessimistic. That marriage can work out perfectly to the great satisfaction of both parties, HNCA and the Province. If not, just go to court and get a divorce. The good news is, that the draft agreement says that the governing laws are the laws of China.


No doubt, Mr. Wiseler keeps the story interesting. Creating a new airline is exciting.




No comments:

Post a Comment