Andrzej Jeziorski/Basle

Crossair has launched a new Alsace, France-based carrier aimed at avoiding European Union (EU) rules which have denied the Swiss airline access to a variety of destinations. Switzerland is not a member of the EU and cannot operate under its liberalised internal traffic arrangements.

The Crossair-dominated company, which had been provisionally dubbed Europe Continental Airways, will fly under the name of Crossair Europe. Starting capital amounts to SFr20 million ($84.5 million), of which 40% comes from Crossair, with the rest divided among French companies Linden Holding (25%) and Foch Finances Investissements (5%) and, in Germany, private businessman Friedrich von Bohlen und Halbach (25%) and Endress & Hauser (5%).

This move places 60% of the company shareholding in the EU, and allows the airline to fly routes hitherto inaccessible to Crossair. The carrier says that it will operate under French law, but in close commercial and technical co-operation with Crossair, with each airline marketing the other's product as well as its own.

According to airline director-general Phillippe Perrin de Nelle, Crossair Europe will begin operations on 29 March with two 33-seat Saab 340 turboprops leased from Crossair. Initially, the airline will serve Marseille, Milan and Venice from its base at Basle, feeding passengers into Crossair's "EuroCross" network, covering more than 100 destinations in at least 20 countries. Because of its location, Basle Airport also serves the cities of Mulhouse in France and Freiburg in Germany.

The company plans 3,900 flights a year from 1999, with predicted passenger growth from 44,200 in 1998 to 78,000 in 2000, by which time it hopes to be bringing in revenues of SFr76.4 million.

Perrin de Nelle says that the company plans to begin operating into Rome's Ciampino Airport from September, then into the Czech Republic, Hungary, Poland and Slovenia, as well as to more Mediterranean countries. "We are interested in getting traffic rights as soon as possible," he says. This would mean that, within the next two years, Crossair Europe could acquire a Boeing MD-80 from its parent to serve Mediterranean holiday destinations.

Crossair Europe is particularly keen to find an Italian partner. Switzerland has liberal bilateral arrangements with most EU states, but has generally had poor access to Greece, Italy and Portugal.

Source: Flight International