Cargolux signs equity contract for launch of Henan Cargo Airlines
12 / 06 / 2017
Cargolux has signed a joint venture equity contract to establish Henan Cargo Airlines, a freighter carrier which will operate under a Chinese air operator certificate (AOC), with the first revenue flight being planned for the fourth quarter of 2018.
The Luxembourg-based cargo carrier said that 75% of the shares in Henan Cargo Airlines will be held by HNCA, the Henan Airport Group, and the Xinggang Investment Group Co, which represents the Zhengzhou Airport Economic Zone. Cargolux will hold the remaining 25%.
This appears to be a slight change in the originally-planned shareholder structure. In February 2016, it was stated that Cargolux’s $77m investment would give it a 35% share in the Chinese carrier, with HNCA taking a 49% stake, and with both Xinggang Investment & Development Co of Zhengzhou Airport Comprehensive Economic Experimental Zone and the Henan Airport Group holding 8% each.
The Chinese joint venture — with an original working title of Cargolux China during negotiations — has been a major strategic focus for Cargolux.
A spokesperson for the European carrier said: "The signing of the Airline Equity Joint Venture Contract in Beijing today is a major landmark and step forward in the launching of a resident cargo airline operating out of Zhenzhou under a Chinese AOC."
The signing ceremony took place in the presence of Luxembourg’s prime minister, Xavier Bettel, and The People’s Republic of China’s State Council Premier, Li Keqiang, in the Great Hall of the People at Tiananmen Square
The contract sets out the key terms and commitments of each party to the agreement.
This is the second major deal for Cargolux in less than five weeks.
On May 9, Emirates SkyCargo signed a memorandum of understanding with Cargolux for a strategic operational partnership in Munich at the Air Cargo Europe event.
Described as the first of its kind between a mainline airline and a specialised freighter operator, it will allow the two carriers to co-operate and offer their complementary strengths and shared values.