Political niceties have given way to economic realities as Swissair concentrates its longhaul activities in Zürich, moving several international destinations from Geneva. 'There is a change in the economic environment in this business and we are no longer in a position to pay attention to political considerations,' says Martin Bisang, head of commercial planning in Europe.
To obtain what Bisang calls a 'critical mass' at Zürich and establish a fourth daily peak, Swissair will move flights to Los Angeles and the Middle East and Africa from Geneva to Zürich from the beginning of the 1996 winter schedule.
A new Swissair shuttle service will operate 10 times a day between Geneva and Zürich, replacing current Swissair/Crossair flights. The shuttle and new connecting flights from European cities to Zürich will be served by five newly ordered A320-family aircraft and an MD-11. Flights will arrive in time to connect with mid-morning transatlantic departures. The change at the hub will bring an estimated 1-2 per cent increase in revenues, or SFr50 million ($41.7 million), says Bisang. Swissair stresses that it will not run down its European hub at Geneva and that Crossair is being encouraged to increase its services from Geneva, which accounts for a third of Swissair's core home market. Bisang says the switch in focus has been in the works for some time, but Philippe Bruggisser's taking charge as chief operating officer and chief executive elect has 'speeded up the process'.
The carrier's focus is very firmly on cost-cutting and a further 1,200 jobs will be shed, primarily in administration where Swissair has long been top heavy. The carrier says there will be no job losses among pilots or cabin crew, and the job cuts will primarily be early retirements. It has set aside SFr350 million in this year's accounts to allow for the restructuring costs, including redundancies.
Bisang acknowledges the longer term strategy includes focusing on Sabena's Brussels hub, where there is extra
capacity. A London-based analyst says Swissair will know by July if its investment in Sabena was wise, despite the three-year schedule the Belgian carrier's new president and chief executive, Paul Reutlinger, has been given. A comprehensive agreement with the Sabena unions is the key to success.
Sara Guild
Source: Airline Business
