COLIN BAKER LONDON
Swissair Group has announced a wide- ranging restructuring plan which will see it focus on point-to-point traffic and merge Swissair's short-haul operations with regional subsidiary Crossair. With Crossair chief executive Andre Dose heading the newly formed Swiss Air Lines division, which will cover both carriers, one analyst joked that it was almost a reverse takeover.
The Swiss group, which was struggling long before the events of 11 September, is also seeking SFr3 billion ($1.9 billion) of new equity, although the government has made plain that it will work closely with the carrier.
Swissair Group chairman Mario Corti said earlier this year that Crossair would take over short-haul routes which were simply unprofitable for Swissair. Analysts were surprised, however, at the extent of transfer traffic that the Swiss were prepared to give up. Chris Tarry of Commerzbank noted that this "will leave a hole" in the carrier's Zurich hub. Swissair, which had previously concentrated on Zurich at the expense of Geneva, says it aims to reduce the proportion of transfer traffic it carries from 60%to 40%. Long-haul capacity is being cut by 25% in the wake of the terrorist attacks in the US.
Swissair has seen a bewildering number of management changes this year, following chief executive Philippe Bruggisser's resignation in January. He was replaced by Crossair chairman Moritz Suter, who resigned after six weeks, at which point the entire board also resigned, leaving Corti as both chairman and chief executive, posts he held prior to the latest reorganisation.
Source: Airline Business
