Cargolux 50 | Cargolux in the 2010s

Looking towards a sustainable future

Determined to overcome hindrances and work towards a sustainable future, Cargolux entered the 2010s with renewed resolve and ambition to thrive as a leading air cargo carrier. As the company prepared for the delivery of its new aircraft, it was also actively working on resolving the pending anti-trust cases and strengthening itself by developing a robust compliance program.

While the decade started in a challenging business environment, Cargolux powered through and sought new initiatives and service offerings. In 2010, two trans-pacific frequencies were established; an important commercial milestone for the global carrier. Cargolux Italia’s business also started to take off with weekly flights between Milan-Malpensa, Dubai, and Hong Kong. These connections were operated on a single 747-400 freighter leased from Cargolux. These endeavors bode well for the company, and in June, Boeing rolled out the first 747-8F in the updated Cargolux livery – a true silver lining in a challenging period.

Cargolux Italia

Cargolux Italia S.p.A. is an Italian all-cargo airline founded in December 2008 as a joint venture between Italian interests and Cargolux Airlines International S.A. with the aim to serve the Italian market, one of the most important in Europe, both in terms of imported and exported goods.

The company is headquartered in Vizzola Ticino in the vicinity of Milan Malpensa International Airport.

The company commenced operations in June 2009 and currently operates flights from Milan to various destinations in both the United States and Asia. The company also operates to all African destinations in the Cargolux Group's network on behalf of Cargolux.

The company's fleet comprises four Boeing 747-400 freighter aircraft that are tailored to the specific needs of freight forwarders.

Cargolux Italia employs around 130 ground staff and crew.

The carrier has appointed Cargolux Airlines S.A. as its worldwide General Cargo Sales Agent.
LX-RCV

LX-OCV

LX-OCV, Tre Cime de Lavaredo

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Tail of LX-VCM
LX-VCH
LX-RCV
LX-OCV

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The 747-8F delivery

After a series of lengthy delays, Cargolux took delivery of its first 747-8F, LX-VCB, on October 12th, 2011. The introduction was incredibly smooth, and the new Queen of the Skies started operations immediately. The aircraft presents significant advantages compared to its predecessor such as longer range, higher payload, as well as reduced noise and better fuel-efficiency. Cargolux invested countless time and resources on the development of this model and it was widely acclaimed when it first landed at the company’s home base in Luxembourg.

Amidst the festive spirit of discovering the new aircraft and expanding operations, there was trouble at the top of the organization. Indeed, after shareholders SAirlines filed for bankruptcy, in 2009, the Luxembourg state had taken over its shares and in 2011, Qatar Airways bought a 35% stake in the airline. The relationship was short-lived, and in November 2012, Qatar Airways decided to exit its shareholding in Cargolux over different views and opinions on the company’s strategy. For the second time in as many years, the Luxembourg state stepped in until a more suitable strategic partner was found.

Throughout these years, Cargolux continued to develop its commercial strategy and focus on niche shipments. With the advantage of a fleet of purpose-built freighters boasting nose-door capability and different temperature zones, the company chose to really focus into specialized transport solutions. In support of this endeavor, Cargolux’s ground handling partner in Luxembourg, Luxair Cargo, has launched the construction of a dedicated Healthcare and Pharmaceutical Center that was inaugurated in 2013.

That same year, the airline reaches yet another impressive milestone as it takes delivery of LX-VCA, its 7th 747-8, and the 25th new aircraft Cargolux received from Boeing. This incredible feat symbolizes the long-standing and trustworthy relationship that both parties enjoy. Two more brand-new 747-8 freighters were integrated into the Cargolux fleet that year. As the year drew to a close, another significant occurrence took place; in December, Cargolux entered into a commercial cooperation agreement with Henan Civil Aviation and Investment Co., Ltd. (HNCA). This agreement paved the way for a partnership between Cargolux and its future Chinese investor, as the State of Luxembourg decided to sell its 35% stake to HNCA.

HNCA

Talk about a game-changing partnership. Established in 2011, HNCA has a crucial ally since 2014 when both parties signed the Commercial Cooperation Agreement, welcoming the Chinese civil aviation enterprise as Cargolux's newest shareholder. Thanks to HNCA’s financial stability and constant strive for development, the airline was able to cooperate in harmony and develop a dual-hub strategy with Luxembourg and Zhengzhou, in China's Henan province as international hubs. The mutual understanding and close ties between Cargolux and HNCA have helped reinforce Luxembourg and China’s warm relationship as well as consolidate Cargolux’s active role in support of the Air Silk Road. This project aims to boost trade between the two countries and, more importantly, enhance mutually beneficial exchanges and inspire new collaborations on a global level.

Cargolux's two most positive years in recent history were undoubtedly a result of the strong partnership with HNCA – a partnership that aims to break records and set new standards in the air cargo industry.

HNCA currently holds 35% of Cargolux’s shares.
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Boeing 747-8F

In July 2005, the Board of Directors authorized Cargolux management to enter into talks with Boeing for the purchase of a fleet of new-generation Boeing 747-8 freighters. Three months of intense negotiations culminated in Boeing and Cargolux jointly announcing the launch of the new aircraft. Cargolux was one of two launch customers with a firm order for 10 aircraft and purchase rights for 10 additional ones.
The new 747-8F features improved performance in terms of range, environmental compliance, noise reduction and fuel efficiency and its GEnx engines. An improved version of its predecessor, the freighter boasted a maximum payload of 133.9 metric tonnes and a range of 8,130 kilometers.
Some six years after signing the initial order, in 2011, launch customer Cargolux took delivery of its first two Boeing 747-8 freighters. The first aircraft, LX-VCB - City of Esch-sur-Alzette, was handed over to the Luxembourg carrier at a ceremony in Seattle. The second aircraft, LX-VCD - City of Luxembourg, left Seattle two days after the first unit, to join the Cargolux fleet. A third 747-8F, LX-VCC - City of Ettelbruck, joined Cargolux later that year and four more followed in 2012. 

With a maximum payload of 134 tonnes and about the same trip costs as the 747-400F, the 747-8F can accommodate 7 additional pallets and 16% more cargo than its predecessor. Thanks to its advanced GEnx engine, improved aerodynamics and lighter materials, the 747-8 Freighter provides double-digit improvements in fuel consumption and carbon emissions – well below ICAO limits. The 747-8F is not only cleaner, but also significantly quieter as it reduces its noise footprint by 30% over its predecessor. The new aircraft has enabled Cargolux to reinforce its position as a leading air cargo carrier and increase its presence on the worldwide markets.
Tail of LX-VCM

LX-VCM, City of Redange sur Atert

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Delivery of Cargolux first Boeing 747-8F, LX-VCB

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The dual hub strategy

This development opens a new realm of possibilities and in 2014, HNCA is officially welcomed as Cargolux’s new shareholder. The influx of a fresh perspective brings along new promises and, in a bold move to support the airline’s expansion, the company decided to open a second hub in Zhengzhou, in China’s Henan province, to complement the home base in Luxembourg. This dual-hub strategy was at the heart of Cargolux’s business plan and supported the carrier’s ambition of strong and continuous expansion. Commercial flights from the Chinese gateway were launched in April and proved immediately successful. October and November 2014 see record performances in tonnage, revenue and block hours, higher than ever before in the company’s history. In November, the airline celebrated its first 10,000 tons of cargo to transit through its second hub.

Europe’s number one all-cargo carrier is back on track and business expanded steadily as the airline celebrated its 45th anniversary. The decision to establish a gateway in Zhengzhou proved to be a decisive strategic move and just the year following its introduction, new possibilities arose. Following an agreement sealed with China, China was granted new traffic rights across the Pacific and frequencies were introduces between Zhengzhou and Chicago. In October 2015, Cargolux broke the landmark barrier of 50,000 tons of freight to and from Zhengzhou.

As the momentum around the second hub continued to grow, Cargolux Italia also introduced services to Zhengzhou. These flights included the group’s first ever commercial operation in Russia with a stopover in Novosibirsk. The Milan-based subsidiary also inaugurated connections from Malpensa to Tokyo-Narita in cooperation with Nippon Cargo Airlines.

Zhengzhou

One of the most exciting initiatives that Cargolux undertook in the last decade was to expand its long-term operations to China, and more specifically Zhengzhou, a city located in the Henan province – the heart of the most populous country on earth.

This vibrant metropolis was the perfect place for Cargolux to set up its second major international hub in 2014 in collaboration with Henan Civil Aviation Development and Investment Company (HNCA) as part of the Commercial Cooperation Agreement. With the support of Cargolux’s activity, Zhengzhou soon became the fastest growing cargo airport in the world, breaking numerous records in flown-in tonnage, most recently as the recipient of the largest piece Cargolux has ever transported to China, reaching a total of 43 metric tonnes. In 2017, Cargolux carried almost 30% of the total cargo volumes transiting through Zhengzhou!

What makes Zhengzhou a top-quality hub is its ability to grow and adapt to Cargolux’s operations of varying nature as well as its ambition to develop and compete in a volatile market. Since Cargolux introduced its services to Zhengzhou in 2014, the Chinese hub has witnessed a steady increase in capacity throughout the years with additional transpacific services and significant increase of frequencies from Europe into Zhengzhou. Centrally located in China, the hub serves as an extremely effective link between Cargolux and some of its most trusted routes consolidating Cargolux’s active role in the region as a pivotal player in the handling of demanding and arduous loads.
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LX-VCJ, City of Zhengzhou
Offsize shipment in Zhengzhou

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Perfecting a niche service

With expansion and development well underway, Cargolux also decided to finetune its service offering and introduce a portfolio of comprehensive transport solutions designed to match specific handling needs. The product range includes 8 different customized solutions to cater for sensitive, critical, outsize, or perishable products. CV classic, CV jumbo, CV power, CV hazmat, CV pharma, CV fresh, CV alive, and CV precious, were each designed to respond to the particular nature of the relevant freight. This appealing new range was devised with a focus on niche business, an area in which Cargolux had become a recognized expert.

Two new special 747-8 freighters also joined the Cargolux fleet in 2015. LX-VCL is the 30th freighter that Cargolux acquired new from Boeing, 36 years after taking delivery of its very first 747-200F. This milestone aircraft is baptized ‘Joe Sutter – Father of the 747’ in honor of the man who designed the iconic aircraft in the 60’s. Joe Sutter and Cargolux shared a very special relationship cemented by a mutual love of the Queen of the Skies. The naming came as a surprise to the Boeing veteran who only found out during the unveiling of the aircraft at Boeing’s Paine Field. The second aircraft to be delivered that year was LX-VCM. To mark its 45th anniversary, the freighter bore a special livery created by Belgian cartoonist Philippe Cruyt that depicts the many facets of cargo shipments in a humorous way.

Buoyed by its success and bold development strategy, Cargolux brands itself as the “Global Cargo Carrier of Choice”. This signature reflects its position as leading all-cargo carrier and its ambition to remain a key player in the international freight market. This aspiration is underpinned by the success of the dual hub strategy; indeed, barely 2 years after starting operations to and from Zhengzhou, the carrier exceeded the 100,000 tons mark on this route. The fleet also stood at an all-time high, with a total count of 26 aircraft; 14 747-8F and 12 747-400F.

An extensive product portfolio

Cargolux has been delivering service excellence for clients of every description for 50 years. With a variety of air freight shipments, from outsize heavy equipment to perishable or sensitive goods, Cargolux is renowned as a leading supplier of quality air cargo services.

Since Cargolux focuses on the specific needs and requirements of the industry and their clients, the company decided to adjust its product offering in 2015. A new product portfolio was introduced comprising eight specialized products. CV classic for the transportation of general cargo; CV jumbo covers outsize and heavy machinery; CV power for objects such as valuable cars, engines or helicopters; CV hazmat involves the transportation of all classes of dangerous goods; CV pharma for healthcare and pharmaceutical items; CV fresh is dedicated to all kinds of perishable or sensitive products; CV alive deals with live animals and lastly CV precious for artworks and valuable freight.

Building on the success of this portfolio, Cargolux introduced an additional layer of services 2016 at the Air Cargo China event in Shanghai. The new additions Select, and Select+ are linked with a number of advantages for the customer. in 2020, two additional services, Saver and Spot, were added to offer enhanced flexibility.
With this portfolio Cargolux strives to provide tailored services and establishes itself as the leader for niche transports.
Offsize shipment in Zhengzhou

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Moving forward

In 2016, another crucial decision is made as the Board of Directors approve the construction of a brand new headquarter building next to the company’s Maintenance Center at its home base in Luxembourg. In over 45 years of existence, this is the first time the employees have the prospect of working under a single roof! After several years of adjustments in top management, this is also the year that Richard Forson is appointed President and CEO of the company.

The following two years will be remembered as the record years for Cargolux. Driven by favorable market conditions and the boom in e-commerce, the airline registers unprecedented figures in terms of revenue, tonnage, and aircraft utilization. The network was further expanded and adjusted to meet requirements and Cargolux focused on a flexible approach to business to continue its achievements.

The agile processes and philosophy with which Cargolux approaches its business is carried through today, and the results are still visible now. The airline pursues its ambitions to prevail as the Global Cargo Carrier of Choice and the world’s leading all-cargo operator. Although 2019 was a challenging year for the company, the dedication of its people and its ambition to always remain a pioneer and an achiever in the industry is unwavering. Cargolux still has many plans for the future and continues to grow towards its vision of economic, social, and environmental sustainability.

Now, in 2020 we are celebrating our 50th anniversary; an incredible accomplishment stemmed from humble beginnings. We look back at our past with a sense of pride and we look at the future with confidence. As our world changes, we will face new challenges; ones we are looking forward to overcoming in order to keep building on our pioneering legacy. Our astonishing history is still in the making and sometimes we wonder how we got this far. The answer is in the words of one of our founding fathers: “Cargolux always had the right people, at the right time, with the right equipment”.

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2010 - 2019

The 5th decade

Looking towards a sustainable future

The 747-8F delivery

The dual hub strategy

Perfecting a niche service

Moving forward

Next chapter

Our fleet