Gunter Endres/BASLE
SWISSAIR IS expanding its fleet with orders for five Airbus narrow-bodies and two McDonnell Douglas MD-11s. The order comes as Crossair, the Swiss carrier's regional subsidiary, revealed a boost from taking over a part of its parent company's European and charter business.
Swissair is expanding its long-range MD-11 fleet to 15, including one aircraft already on order, but undelivered. The newly ordered aircraft are to be delivered in 1997 and 1998. The deal includes options on four MD-11s, for possible delivery in 1998 and 1999. All of the aircraft will be powered by Pratt & Whitney PW4462 engines.
The airline has also placed orders for three additional Airbus A319s and two A320s, to be delivered in 1997. This will bring Swissair's narrow-body Airbus fleet to eight A319s, 18 A320s and six A321s.
Meanwhile, by successfully clearing formidable hurdles, Crossair has almost doubled its business instantly, following the take-over of Swissair's thinner short-haul routes, and the Mediterranean charter activities previously provided by Balair/CTA. Airline figures have already been affected by the move, although the process will not be completed by August.
Net profits improved by 8% in 1995 from SFr16.1 million ($13.3 million) to SFr17.5 million, on revenues of SFr465 million, up by 18%. Costs rose by 19%, to SFr405 million - although 3% of this was related to increasing numbers of leased aircraft.
Apart from finance, the largest cost increases were recorded in personnel, administration, and what president and chief executive Moritz Suter refers to, as a "serious problem" in ground costs at airports. Staff levels rose by 32% to 1,876, with another 400 people to be recruited in the next few weeks.
Results in the first three months of 1996, traditionally the slowest period, are broadly in line with forecasts, despite fewer charter flights because of decreased demand and intense competition from foreign airlines, says Suter. Nevertheless, based on a larger business volume once transfer of routes from Swissair is completed, he projects a significant rise in profits for the full year.
Crossair carried 2.3 million passengers in 1995, up 17% on 1994, with the 1996 figure projected to almost double, to 4.3 million. The average passenger load factor remained steady at 53%, in spite of a 14% capacity increase. Yield declined by 2%.
The airline is to receive the remaining two MD-80s from Swissair during April (bringing the total to eight) four more Avro RJ100s and two more Saab 2000s.
Source: Flight International
