Andrew Doyle/ZURICH
Key decisions on the strategy of the SAirGroup are to be thrashed out at an extraordinary meeting of the Swiss conglomerate's board of directors later this month, sources close to shareholders have told Flight International. The meeting comes amid mounting concern over losses from the group's airline investments.
Some directors are calling for the company to reverse its airline strategy by selling stakes in unprofitable Qualiflyer Group members and perhaps other carriers, and signing up Swissair for membership of a global alliance.
SAirGroup chief executive Philippe Bruggisser, however, remains convinced that the company's long-term interests are best served by remaining independent, and industry sources suggest that he may be forced to consider stepping down if the board fails to provide its full backing for the policy. SAirGroup declines to comment.
The boardroom dissent results from increasing frustration that the poor performance of airline investments is dragging down the group, after its successful diversification into more profitable sectors such as catering, maintenance, ground handling, aircraft leasing and information technology.
"You would have to be blind not to notice that the current [airline] strategy is more difficult to apply than was foreseen," SAirGroup board member and private banker, Benedict Hentsch, told Swiss newspaper Le Temps. Another board member, Credit Suisse president Lukas Muehlemann, is reportedly also opposed to the current strategy.
The issue is coming to a head as Sabena sinks deeper into the red and union problems threaten to delay the merger of SAirGroup's loss-making French units AOM, Air Liberté and Air Littoral, pushing up restructuring costs. SAir owns 49% of Sabena but plans to increase this to 85%.
Other investments include large minority stakes in LOT Polish Airlines, South African Airways and TAP Air Portugal. SAirGroup is currently weighing a major strategic alliance and possible equity investment in loss-making Italian flag-carrier Alitalia, and is in talks with Malaysia Airlines.
Recent industry speculation has linked Swissair to possible membership of the oneworld alliance, though Bruggisser is ruling out any imminent deal. He also plays down reports that codeshare partner and oneworld member American Airlines is interested in taking a 10% stake in Swissair.
Source: Flight International
