Parliament debates future of Cargolux & Luxair

(CS/DS) Luxembourg's MPs discussed the future of the country's air transport sector following a demonstration outside the Chamber of Deputies earlier this week.

On Tuesday, unions had gathered outside parliament in Luxembourg City, handing an open letter to Chamber President Laurent Mosar and calling on government to take responsibility in helping Luxair and Cargolux through the financial crisis.

In a debate on Thursday deputies across all parties agreed on the importance of Luxembourg's airport and airlines for Luxembourg, also in light of efforts to become an international logistics hub.

Politicians also agreed that urgent measures were needed to address the crises that both airlines were going through, while at the same time ensuring that the Luxembourg social model was safeguarded.

Qatari shareholders under fire

However, MPs disagreed on the role of Qatar Airways in Cargolux. Opposition parties said the involvement of the investor had been a mistake at the cost of the air freight carrier and its employees.

The ADR's Gast Gibéryen even demanded the resignation of Finance Minister Luc Frieden over his role in involving the Qatari shareholders in the company.

Meanwhile Infrastructure Minister Claude Wiseler warned that there were two different debates being led, one about the role of Qatari shareholder and one about the current problems both Luxair and Cargolux were facing, adding that Cargolux' problems had existed long before Qatar Airways became involved with the company.

Wiseler addresses criticism

With both companies expected to present new business strategies towards the end of the year, Wiseler highlighted that the state would take action should an agreement with shareholders not be reached, especially in regards to Cargolux.

He insisted that the Cargolux HQ had to remain in the Grand Duchy and that Luxembourg had to function as a transport hub. While he said that maintenance operations should remain in Luxembourg, Wiseler added that it was necessary to improve competitiveness of the sector.

The minister also refused calls that the government had no clear strategy in addressing the air transport crisis, saying it had invested a lot to make Findel a more attractive business location. “Now that it is attractive, other airlines are coming in. But now criticism is rising due to possible competition for the national airlines,” he concluded.