JUSTIN WASTNAGE / LONDON

Plans have been made to launch a low-cost airline in Switzerland, based in Basle using former Crossair regional aircraft, which may involve the Crossair founder Moritz Suter.

Suter believes the creation of the country's new flag carrier Swiss International Air Lines from Crossair "with all the big money, was a tremendous mistake". He says Switzerland needs a lower fares short-haul airline. Suter confirms that he has seen plans from several parties interested in establishing a short-haul rival to Swiss, which announced plans to launch a regional subsidiary Swiss Express last month. Suter says although he would not head up anew venture, he would consider joining one, "depending on what Swiss does".

Swiss is reducing itsshort-haul fleet to two types - the Airbus A320 family and Embraer 170/195 - and is looking for buyers for its 15 BAE Systems Avro RJ100s and four Avro RJ85s. An Embraer source says the Brazilian manufacturer is disposing of the Avros as part of renegotiating the 170/195 deal agreed in March, and that a taker has been found.

Suter is understood to have resigned after one month as chairman of Hirschmann Industrial Holding - parent of corporate aviation services specialist Jet Aviation - due to personality clashes.

EasyJet, which owns 49% of Switzerland's only low-cost carrier, EasyJet Switzerland, says it hears rumours of new start-up low-cost carriers "every day" and will only worry once anew airline begins operations.

Source: Flight International