Crisis torn SAirGroup has unveiled a series of measures aimed at restoring the company's fortunes following record losses last year. Speaking at an 8h annual general meeting on 25 April, new chief executive Mario Corti said the group intended to dispose of its investments in French regional airlines AOM and Air Liberté and had secured a SFr 1 billion ($590 million) credit line.
As part of the restructuring, SAirGroup will change its name to the Swissair Group, after its flagship airline, with immediate effect.
Corti, who was recently drafted in as chief executive from the Nestlé group to reverse the airline acquisition strategy of his predecessor, Philippe Bruggisser, revealed that the group planned a controlled divestment of its French operations. Majority shareholder Taitbout and the Swiss group are only guaranteeing the two airlines capital needs until the end of June to allow them time to prepare a restructuring plan.
Speaking to a French radio station, AOM-Air Liberté chairman and chief executive Marc Rochet said he was seeking "European buyers" for the airlines. The two airlines, which along with Air Littoral were to form an assault on the Air France dominated domestic market by the Swiss group, face an uncertain future unless the restructuring plan is successful.
French pilot unions believe that at least 2,700 of their 7,500 jobs will be lost as the three airlines retrench in an effort to stave off bankruptcy. The Swiss company had signalled its withdrawal from Air Littoral earlier this year.
With the plan to cut and run from the heavily lossmaking French operations in place, the Swissair Group's next airline retrenchment priority is likely to see a decision on the fate of its 49% holding in the Belgian carrier, Sabena, during the third quarter of the year.
Corti has already signalled his intention to seek a tie-up with one of the major groupings, with the American Airlines/British Airways- led Oneworld alliance being the favourite.
Overall group liquidity has been ensured as a result of a SFr1 billion credit line set-up with three leading banks. Last month the Swissair Group revealed losses of SFr2.88 billion for 2000. Shareholders at the AGM voted for the group to be submitted to a financial audit.
The Swissair Group is also simplifying its structure with the chief executives of eight corporate divisions reporting directly to Corti. The divisions cover Swisscargo, Swissair, Crossair, Airline Partners, Gate Gourmet, Nuance Group, Swissport and SR Technics.
Source: Flight International
