Swiss International Air Lines’ outstanding order for the Embraer 170 remains on hold as the carrier keeps its focus on strict cost-cutting measures imposed by soon-to-be parent Lufthansa, writes Aimée Turner in Zurich.
Swiss posted a loss of SFr178 million ($137 million) for 2005, SFr38 million more than the previous year. Management blamed SFr41 million restructuring costs and currency adjustments totalling SFr65 million for the poor results.
German flag carrier Lufthansa launched a takeover last year with chief executive Wolfgang Mayrhuber demanding a profit by 2007.
Speaking in Zurich at a ceremony to mark Swiss becoming the 17th member of the Star Alliance earlier this month, Harry Hohmeister, Swiss’ chief network and distribution officer, said that the carrier is focusing on a two-core fleet strategy comprising 67 aircraft including 24 Avro RJ85/100s.
Swiss until recently operated a mixed regional fleet of 15 BAE Systems Avro RJ100s, four Avro RJ85s, 11 Embraer ERJ-145s and seven Saab 2000s.
Questioned about the status of the E-170 order, Hohmeister said a decision was due in early 2007. “We are prioritising a step by step approach,” he said. “It is a question of investment capability so we cannot give an answer now. We want another 12 months and then it will be the right time to ask the question.”
Until now Swiss has said the carrier’s future regional fleet would be based on its current Embraer order, totalling 15 firm and 15 options for both the E-170 and E-195/190.
Mayrhuber said Lufthansa had yet to examine the Swiss E-170 contract, “but what we can certainly say is that our coming together advances dramatically our purchasing power and we will be looking at this closely”.
Source: Flight International
