TOM GILL / BASLE
Slimmed down operator will combine low-cost elements of Crossair with quality of Swissair
Swiss, the merged, slimmed-down carrier born from the former Swissair and its subsidiary Crossair will come into being in April. The airline, which aims to retain Crossair's low-cost element, and what it describes as Swissair "quality", will take a separate legal name - Swiss Air Lines.
Chief executive André Dosé is keen to put one aspect of the past behind him. Swissair creditors such as Air Lib, which recently seized a Crossair aircraft at Nice airport, claim Crossair was party to commitments made by former parent SAirGroup. But Dosé says: "We are not linked to Swissair anymore. We don't want any claims against the old Swissair against us."
The new airline plans to carry close to 15 million passengers by the end of 2003, up from a forecast of 9.8 million passengers, in a bid to become Europe's fourth largest airline. It also wants to rebuild its cargo business, after SAirGroup's Swisscargo closes next month.
The carrier is also talking to airline alliances Oneworld, Star Alliance and SkyTeam to ensure it is not left on its own. Swissair's own nascent alliance, Qualiflyer, has been reduced to little more than a frequent-flyer programme.
Dosé says that, by April, with unit costs down by 15% on intercontinental routes and 7% on European routes, Swiss will have the lowest cost base of all major European airlines. He has already cut staff and fleet levels .
Former Swissair pilots have agreed in principle to a 35% reduction in wages, and last week the airline won a new leasing deal on an unspecified number of aircraft to allow it to reduce leasing costs.
Dosé says he hopes to reveal soon which aircraft - the Airbus A340 or the Boeing 777 - has been chosen to replace the fleet of 13 Boeing MD-11s in April. Deliveries could start by October - though he adds the MD-11s could continue in service for up to 18 months.
Since reducing combined capacity by 30%, load factors on long-haul routes have risen to over 80%, and yields have climbed strongly too, exceeding targets in the original business plan. The challenge now is to break even in 2003, says Dosé.
Source: Flight International
