Cargolux’s shareholders have agreed to inject US$200 million in the company, with the first $100 million to take place before the end of this year. The Luxembourg-based airline said the recapitalisation became necessary due to losses incurred this year, which are expected to be more than $100 million.

The move is part of a two-stage restructuring, with shareholder SAirlines selling its 33.7 per cent stake in the company to current shareholders Luxair, BCEE and SNCI, and the Luxembourg state. President and CEO Ulrich Ogiermann said the recapitalisation of the company would enable Cargolux to modernise its fleet with more efficient and less polluting technology starting in 2010. “This is a crucial contributor to our turn-around plan,” he said.