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DOING BUSINESS IN LUXEMBOURG DRONES - FOR GOOD AND EVIL Q2 2017 A WORD FROM THE CHAIRMAN CHAIRMAN’S REMARKS Paul-Michael SCHONENBERG Dear AMCHAM Members and Friends, As you can see, we had a busy winter season! As always, AMCHAM is pleased to point out that we are a member-driven organization focused Welcome to the Spring issue of Connexion! Now, as I write this, we are putting the on providing world-class services and doing finishing touches on the first ever Drone Race everything we can do to support the econom- We started the New Year with UK Ambassa- which we are pleased to see is generating ic vibrancy of Luxembourg and the prosperity/ dor John Marshall giving us an excellent and quite a lot of excitement and bringing us into success of our members. comprehensive overview of the complex issues contact with interesting people and industries and current approaches of the UK Government both within and outside Luxembourg. Please If you are an English-speaking international regarding the Brexit negotiations. This was see the photos included later in this issue. focused company in Luxembourg, you are al- followed by an excellent evening presentation ready part of our constituency and we would be hosted and managed by Allen & Overy on the As part of our efforts to support the “I Can delighted to welcome you as members. Please subject of “Employees’ rights to use company IT Vote” campaign, we are trying to arrange contact us to discuss the opportunities and vs. Employer’s rights to monitor such use”. a Town Hall meeting of the senior political benefits of AMCHAM membership. leaders of each of the major political parties In March former Minister of Finance Luc Frieden of Luxembourg. We hope to put on a “speed With respect and our best regards, shared his perspective concerning the impact of dating” type of event giving each of the Brexit on Luxembourg and his suggestions for political parties an opportunity to tell our Luxembourg to position itself as a net benefi- international audience why they should vote ciary. Also in March, our Tax Committee pulled for their political party in the upcoming Fall together a globally based panel for an excellent community elections. broad ranging discussion with a closer look on the most recent developments in the European If you are a legal resident of Luxembourg for 5 and International tax world, with particular focus years or more and 18 years of age or older, we on the upcoming US tax reform, and how those recommend you register for vote not later than Paul-Michael Schonenberg changes may impact business in Luxembourg. 13 July 2017 in your commune of residence. Chairman and CEO 2 Q2 2017 CONTENT CONTENT NEW MEMBERS Free Newcomers’ Orientation Course . 4 SPECIAL FEATURE Interview with Adrien Ney, President and CEO of LuxairGroup . 6 a AMCHAM COMMITEES Employees’ Rights to Use Company IT Adrien Ney vs. Employer’s Rights (President and CEO of LuxairGroup) 6 to Monitor such Use . 10 Brexit: Where Are We at? And Where Are We Going? . 14 Luc Frieden Calls for Reduced Taxes. 16 Drones - for Good and Evil . 20 Update on US and European Tax Policy and its Impact on Luxembourg . 26 a LANGUAGE LEARNING The Languages of Luxembourg . 18 Drones - for Good and Evil 20 MEMBERS SPOTLIGHT Sacred Heart University Celebrates 25 Years in Luxembourg. 28 Find out about Corporate Services Provider 2.0. 29 our upcoming events EXPAT PROFILE SNAPSHOTS Lisa Francis-Jennings 31 Lisa Francis-Jennings . 31 Jeremy Bird . 33 3 Q2 2017 NEW MEMBERS NEW MEMBERS ENTREPRENEURIAL MICRO-COMPANY NEW MEMBERS SMALL BUSINESS MOVING PEOPLE AIXA CENTRAL DE CRÉDITO 2 LUXEMBOURG AGRÍCOLA MÚTUO, Bénédicte Souy CRL CEO and work permit expert João Barata Lima Rue de la Pétrusse Head of International L-8084 Bertrange Business Department T + 352 691 987 403 233 – 233a, Rua Dastilho E [email protected] 1099-004 Lisboa www.mp2lux.lu Portugal T +351 21 380 55 62 F +351 21 112 92 69 LUXRELO E [email protected] RELOCATION SERVICES Stéphane Compain www.creditoagricola.pt Managing Director 147, route de Burange FARE S.A. L-3429 Dudelange Mr Thomas Fairfax-Jones T +352 691 455 025 Partner E [email protected] 1a, rue du Verger www.luxrelo.lu L-2665 Luxembourg T +352 621 29 49 49 ICOMPARE GLOBAL SARL +352 26 897 897 F +352 897 898 Jamie Eltorkey E [email protected] - [email protected] CEO www.fare.lu 66a, rue de Luxembourg L-8140, Bridel SAVILLS LUXEMBOURG T +352 661 525 209 E [email protected] Régis Luttmann www.icompare.lu Managing Director 20a, rue Eugène Ruppert L-2453 Luxembourg T +352 20 60 65 E [email protected] www.savills.lu FREE NEWCOMERS’ ORIENTATION COURSE The American Chamber of Commerce in a temporary or long-term residence permit) tion, health scheme, child allowance, culture, Luxembourg, under the auspices of and for less than 18 months. etiquette and customs, leisure and entertain- with the funding support of the “Asylum, ment, shopping, expat organizations, sports, Migration and Integration Fund” (AMIF) and Sign up information can be found on the music, cycling, recycling, integration. the Luxembourg Reception and Integration AMCHAM website in the Events section: Agency/Ministry of Family and Integration http://www.amcham.lu/events/ If you know of someone who is eligible and (OLAI), organizes free of charge 6 hours interested in attending, please refer them to long Newcomers’ Orientation Courses. Topics covered on the course: Bureaucracy, the AMCHAM website for registration. your local commune, working life, day to day Due to the funding specifics, these course living, tax card, renting, utilities, phone and offerings in English and Portuguese are internet, TV, radio and the press, history, geo- targeted for attendance by non-EU citizens, graphy, politics, insurance, vehicles, driving legally residing in Luxembourg (holders of and transportation, education, music tui- 4 Q2 2017 NEW MEMBERS Will the speed of the digital tax revolution propel you forward? ey.com/lu/tax #BetterQuestions © 2017 Ernst & Young S.A. All Rights Reserved. ED None. Reserved. All Rights S.A. & Young © 2017 Ernst 5 Q2 2017 SPECIAL FEATURE INTERVIEW WITH ADRIEN NEY President and CEO of LuxairGroup Adrien Ney, President and CEO of Luxair- Group, in conversation with Paul Schonenberg, Chairman and CEO AMCHAM Luxembourg. Could you give us a SWOT analy sis of the current environment/landscape of the airline industry in Luxembourg: what are the strengths & opportunities that Luxembourg holds; what are the weaknesses of Luxembourg as a loca- tion; what are the strategic issues and how have they evolved over time; and how has Luxair Luxembourg Airlines responded to these issues? STRENGTHS Firstly, I think the specificity of LuxairGroup as an umbrella entity for four business units linked to air transportation is worth mention- ing. Our business units are: Luxair Luxem- bourg Airlines, regional carrier; LuxairTours, tour operator; LuxairCARGO, air-freight handling agent; and LuxairServices, airport service branch for airlines operating at Lux- embourg airport, providing passenger assis- tance, baggage and aircraft handling and catering. So, for example, if we were faced with a difficult period in one business unit, we could compensate losses with another business unit. Our shareholding structure is another advan- tage. We are proud to have very committed shareholders. This is a valuable asset nowa- days. Our main shareholders are the State of Luxembourg, BCEE and BIL savings banks, as well as Delfin, an Italian investment com- pany. The majority of our shareholding struc- ture is therefore Luxembourgish. We used to have two international shareholders in the Adrien Ney past, but over the last few years our share- (President and CEO of LuxairGroup) holding structure has remained stable, which is very positive. The aviation sector goes through chal- world which has its own structures. The WEAKNESSES lenging times all the time: the challenge business community is hugely interest- The bottom-line is that we do not rely on one of being a national flag carrier, your ed in making sure that there is effective sole activity. Nevertheless, all our activities home high cost environment, in some transportation in and out of Luxem- are linked to the aviation sector, so if this cases other state actors have a great- bourg so you’re important to us, to the sector is facing hard times for any reason, er degree of financial support than in business community and obviously to such as in 2001 or in 2008, this will have a a small country like Luxembourg and the country. negative impact on all our activities. But, our then you have to deal with the low-cost strength lies in the diversification and relative autonomy of each of our business units, as 6 they each have their own brand. Q2 2017 SPECIAL FEATURE And long term? There is also overcapacity on both the airline structure and creating four separate busi- If you look at our balance sheet, you will see and the cargo side. These are facts we have ness units that operate under one roof. We that Luxair is in a financially stable position. to deal with and which influence both our put more emphasis on the tour operating We have always applied the “Prudent person” airline business and our cargo handling ac- side of the business and this was the right principle, when it comes to decision making tivity. Finally, as a Luxembourgish company, thing to do. I am very proud of what we have and in the history of Luxair we have never our cost structure is different from low-cost accomplished. made hasty short-term decisions.
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