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Union fears jobs losses with Cargolux JV with China's HNCA

CARGOLUX union LCGB has raised concerns that the all-cargo airline's new Chinese joint venture could result in job losses in a meeting with the Luxembourg minister for sustainable development and infrastructure.

In the meeting, the union expressed its concerns that Cargolux could transfer some of its aircraft to Henan Cargo Airlines (HCA). The LCGB feared that this could affect the number of pilots based in Luxembourg and also staff numbers at maintenance facilities in the country, reported London's Air Cargo News.

The China-based joint venture will be 25 per cent owned by Cargolux, with the remaining share held by HNCA - the Henan Airport Group - and the Xinggang Investment Group Co, which represents the Zhengzhou Airport Economic Zone.

The union wants the size of the fleet based in Luxembourg to be maintained, even in the event of some aircraft being transferred to the new company. It added that the airline's Luxembourg business will need to grow in the future in order to guarantee its existence.

According to the union, the minister, Francois Bausch, said that at this stage it was too early to assess exactly what form the partnership would take.

He stressed that many of the union's concerns will need to be clarified through bilateral conversations with the Chinese investors and added that HNCA was currently undergoing structural changes.

The LCGB said that a clear response to its concerns should be found and communicated to Cargolux employees and that regular meeting should take place to avoid speculation.

Cargolux also moved to clear up the union's concerns. A spokesperson said: "The size of Cargolux (CV)'s fleet will depend on its own commercial requirements and network. It has been previously stated that the set-up of the JV airline is not to move jobs away from Luxembourg.

"It has also been indicated by management in meetings with our board that should the JV airline receive aircraft from CV, it is CV's intention to replace such capacity transferred.

"Rather than fear of loss of jobs, we have been and still are actively recruiting personnel, especially pilots and maintenance personnel, for the airline."