Luxair faces uncertain future
Published: July 20, 2012
Luxair 737-700. Courtesy, Luxair
Luxair’s (LG) future remains unclear after the state of Luxemburg bought a 12.09% stake from Swiss forwarding and logistics specialist Panalpina for an undisclosed sum last week ( ATW Daily News, July 17 ). “Currently we can’t say what will happen with our shares in LG. The future will tell,” Dany Frank, spokesperson of Ministère du Développement durable et des Infrastructures, told ATW .
It is also unclear if the state wants to increase its shares. “This question is currently not on the agenda,” he said. Local media reports have said the sale increases Luxembourg’s direct and indirect Luxair stake to 60%. The spokesperson declined to comment on the investment. “No details. This is regarding to the wish of the selling company (Panalpina),” he said.
Nevertheless, LG remains one of the smallest flag carriers in Europe. In a tough environment for European airlines, the future for the carrier looks challenging. “LG is evaluating the development of its strategy to be able to compete best against other carriers in the future,” the spokesperson added.