Luxair sells 8% of stake in Cargolux to government

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Luxair Group has cut its stake in Cargolux to 35.01% after authorising the transfer of 8.41% of its existing stake in the carrier to the Luxembourg Government.

But in a brief statement announcing the transfer, Luxair's board of directors also say they have decided to contribute to increasing Cargolux's capital in future.

"LuxairGroup has therefore expressed its resolute wish to support the growth and the development of activities of Cargolux, a national flagship and international benchmark in freight services," the airline says, noting Cargolux remains Luxair Cargo's main customer.

Chinese state-owned investment company HNCA has been in talks over a move to buy into Cargolux. The Government has been looking for a new partner in the airline after a short-lived deal under which Qatar Airways held a 35% stake. While Luxembourg has just changed governments, the new ruling coalition has praised the previous work done on Cargolux and says it plans to continue on the same path.