Speaking to Radio 100,7, Frieden confirmed that the bank intends to shed its stake in the airline, saying it does not belong to its core business. BIL had already decided two years ago that it wants to sell, Frieden said, but the pandemic has left the market unattractive.

There is no timeline for the sale, Frieden--who is also the president of Luxembourg’s Chamber of Commerce--said.

BIL is 90% owned by Chinese investment company Legend Holdings. The Luxembourg state owns the remaining 10%.

The state is also invested in Luxair, with a direct stake of 39.05% and another 21.81% owned through state lender Spuerkeess. Holding company Delfin owns another 13%. Luxair owns 10%, Luxair Finance--2.86% with the remaining 0.14% listed as “other” shareholders in the airline’s website.

Luxair was hit hard by the pandemic, amid successive lockdowns and travel restrictions. Under an agreement with the state, the airline was able to largely stave off job losses, seeing travel pick up last year.

The airline spoke of a “promising summer” in 2021 but has yet to publish annual results.

In February, Luxair said it would be from German Airways because of a pick-up in travel. The airline  of its first flight this year.