Cargolux – Celebrating 50 years of success
Cargolux’s unique story is one of perfect timing. In the late 60’s, the Luxembourg government was eager to diversify the economy and had approached Loftleiðir Icelandic which was operating out of the Grand-Duchy at the time, to discuss partnerships. Several options were explored; a first-class hotel, a tour operator, and a cargo airline.
Loftleiðir was converting to a jet operation and had surplus CL-44 aircraft, and Salén, a shipping company based in Sweden had been analyzing opportunities in the air cargo industry. Through mutual connections, the three parties got in contact and initiated discussions on the possibility of a joint venture.
On March 4th 1970, the three ambitious partners shook hands to create what was to become one of the world’s leading all cargo-carriers. The airline would be based in Luxembourg, at the heart of Europe, and each entity would contribute with its unique expertise; Loftleiðir was responsible for operational and technical matters, Salén for sales, and the Luxembourg group for administration; Cargolux was born.
With a single aircraft and a handful of employees the operation was on track and the airline wasted no time in getting off the ground! On May 10th, the Air Operator Certificate was issued and Cargolux operated its very first flight the next day. This initial service was a ferry flight from Stockholm-Arlanda to New York-JFK to pick up strawberries and iceberg lettuce.
It quickly became clear that the airline was animated by a unique pioneering spirit and employees were committed to making it a sustainable enterprise. By the end of 1972, the airline was operating a total of 5 CL-44 freighters, three of which were the stretched version that offered more volume and therefore presented significant commercial advantage.
The following year, Cargolux took a big step forward and entered the jet age with the acquisition of a DC-8 freighter. The Loftleiðir maintenance division that had been maintaining the company’s aircraft was moved to Cargolux’s home base in Luxembourg and became an integral part of the airline. A dedicated maintenance hangar and head office complex was also inaugurated at Luxembourg airport; a sure sign of the company’s sustainability.
The next huge leap forward, that would shape the airline’s image forever, was the decision in 1977 to purchase a 747-200 freighter. The jumbo jet offered a capacity of approximately 100 tons compared to the CL-44’s 34-tons. The industry was skeptical about an all-cargo carrier investing in such a huge aircraft, but the bet paid off and another one was ordered that same year, as the CL-44 were phased out.
After a decade of expansion and bold decisions, in the beginning of the 80’s, the airline faced severe headwinds. The upward spiraling of fuel prices and escalation of financing costs combined with a depressed global economy spelled difficult years for the company, but the unwavering spirit and determination persisted. Despite the challenges, Cargolux managed to strengthen its commercial activities. As well as enhancing its stronghold in the Far East, the carrier benefitted from a strong North American market that offered renewed business opportunities.
As business picked up, Cargolux decided to phase out its DC-8’s in the mid-80s and focus on jumbo jets. In 1990, the airline placed an order for 3 Boeing 747-400 freighters with an option for several more. The new generation aircraft presented many advantages compared to its predecessor; it was quieter, more fuel-efficient, and boasted a higher payload. In November 1993, Cargolux was the first carrier to operate the 747-400 freighter; a true reflection of the company’s pioneering spirit.
The 90s marked a decade of solid expansion. The airline’s global network grew significantly as did the number of employees worldwide. Cargolux was steadily emerging as a key player in the industry and its capacity to deliver service excellence was now widely recognized within the industry. To remain at the vanguard of the industry, the airline decided to discontinue its use of the 747-200 model and concentrate on more modern freighters. By the year 2000, Cargolux operate a single model fleet of 747-400 and to ensure state-of-the-art training for its crew members, the airline also welcomed the world’s first 747-400 full-flight simulator.
Building on its achievements, Cargolux continued to seek new market opportunities and fine-tune its services to offer ever-more tailored transport solutions to customers. The all-cargo carrier continuously pushed boundaries to establish itself as a leader in the industry. In 2005, Cargolux and Boeing announced that the Luxembourg-based carrier will be the launch customer for its next generation freighter, the 747-8F, along with NCA. As a long-standing customer for the aircraft manufacturer, Cargolux significantly contributed to the design of the freighter that remains to this day the quietest and most fuel-efficient aircraft in its category. After lengthy delays on the project, Cargolux takes delivery of the world’s first 747-8F in October 2011 and becomes the world’s first airline to fly this type of aircraft. The aircraft is the first of 14 that Cargolux will eventually acquire and still operates to this day.
To accommodate this new model, and ensure optimal maintenance services, the airline also launched the construction of a new Maintenance Center at its home base in Luxembourg; a project that is completed in 2009. During this period, Cargolux continued to explore new ventures together with some Italian interests. Cargolux Italia, a new cargo airline based in Milan-Malpensa, is inaugurated the same year.
As Cargolux continues to bolster its leading position worldwide, in 2013, the all-cargo carrier will enter a new commercial cooperation with HNCA. This new partner will mark a significant turning point in the company’s strategy and establish Cargolux as the leading provider of services to China. The following year, HNCA is officially welcomed as a new shareholder in Cargolux and the airline develops a complementary hub in Zhengzhou, the capital of the Henan province in the heart of China. The dual hub strategy now forms the backbone of Cargolux’s operation in China and significantly contributes to the Europe-China Air Silk Road project.
Throughout its history, Cargolux has continuously established itself as a pioneer and trailblazer in the air cargo industry. In half a century of existing, the Luxembourg-based operator has come a long way from its humble beginnings. The drive and determination, bold decision making, and undeterred ambition are the reflection of a unique spirit that lives today and enabled Cargolux to become the Global Cargo Carrier of Choice.