LJ From Netherlands, joined Nov 1999, 4700 posts, RR: 0
Reply 1, posted (2 years 11 months 3 weeks 6 days 8 hours ago) and read 1843 times:
Quoting LAXintl (Thread starter): The deep pocket HNA Groups is reportedly considering acquiring a stake in Cargolux following Qatar's desire to sell of its 35% ownership.
The question is how deep their pockets are. Their all business HKG-LGW adventure didn't last long and I wonder how much they lost in the process. Moreover, their entire HKG business doesn't seem to do well (I read more about route cancellations and reductions than the opposite). Finally, anyone investing in CV must be willing to put a lot of cash on the table as it doesn't seem to going well with them. Personally, I think that QR made the right move to exit CV now they can (without losing a lot of money) as the cargo market doesn't seem to doing great for the next few years (the economic outlook is not good for Europe). Moreover, it's unclear to me whether the other shareholder (Luxemburg government) is more into politics than making the airline healthy. As such a healthy return on investment seems questionable.