Swiss in dire straits

[N380UA]

According to local Swiss media, Swiss (Air Lines) is in a tight fit to survive this year. More flight are to be cancelled for the time being but further layoffs and reductions of assets are being optioned. All possibilities are now being investigated such as re-outsourcing of Cross air, and demands that the government is to pay ZRH AD taxes.

Seems to me that Switzerland’s Aviation is being fed-ex'd to hell. Unique airport now also faced with laying of employees and being forced to concentred on current operations.

With the war not coming to an end any time soon, we’ll all be looking for a job in another industry in the next couple of months I’m afraid.

[gofer]

There have beem some other threads warning that there is a serious problem that they need to face from way back - its just taken them til "too late" to understand what management and pre-emptive thinking is all about.

There is NO protection from irresponsible management - or bad spelling for that matter. and as you say with boy George and his friend Antoine plus a really good transport scare from SARS - the world should go to hell quite quickly - after all its down hill all the way.:confused:

[airmen]

Read today in a newspaper: Andre Dose the boss of Swiss Int. Airlines, I am already looking for an opportunity in the business, there is plenty of jobs.

Looks like the rats are leaving, but to late!

Sad sad...

[saabpilot]

Rumours say that a second downsizing will come already by the end of april! With the layoffs of 700 the managemnt should have been the first to go. They have been steering this ship towards the iceberg from the start. If Dosè departs everyone at ex-crossair will be happy!
A court decision about the senority and layoffs will come at the end of May. But by then maybe half the workforce already is laid off...

[B767300ER]

This is sad. After the Swissair debacle, now Swiss/LX has problems.

I hope they survive; Switzerland needs a viable flag carrier, and I was looking forward to flying the new "Swiss" to ZRH sometime.

[ZRH]

Aviation is struggling in Switzerland. Skyguide had to up their app fees considerably and SWISS is not happy. I think some of the app fees went up by nearly 60%. SWISS is one of the largest contributors toward Unique landing fees and therefore also skyguide app fees. Luckily Lufthansa is not doing too badly as they pay the majority of the en-route fees. So our jobs should be secure for a while still. And lets not mention the failed agreement between Germany and Switzerland about approaches being flown over German territory.......delays, delays,delays.

[Aviation Trainer too]

Switzerland needs a viable flag carrier Now isn't that a contradiction in terms.....

The country is much to small and does not need a flag carrier, neither does Belgium, Greece, Austria etc... It is misplaced national pride that has keept to many unhealthy airlines alive limiting the changes for properly run airlines to have a viable business!!

[rapide89]

You are a lucky man, Av Trainer, to work for a properly run airline, in a big country, doing viable business...

[golfyankeesierra]

Talking about Uniqe, when is the new terminal on the other side of 28 going to be used? Seems to be completed now.

[ZRH]

I think they're planning to open dock midfield in late summer or autumn and one of the other terminals will be closed. Terminal B has been chosen, but I dont know if thats still the plan and I dont exactly know how long they want to close it for.

[newswatcher]

From the UAE "Gulf News"(3/4):

"Swiss International Airlines has cancelled its operations to Abu Dhabi effective from April 1 - the first anniversary of the airline's establishment - as part of a cost-cutting measure across its global operations.

Its Gulf operations, however remain buoyant and profitable, despite the Iraq War and bookings for coming months remain positive.

The Swiss government and private investors pumped in 2.7 billion Swiss francs to launch Swiss, which combined the resources of SwissAir and Cross Air in April last. The airline has 14,000 shareholders, with the Swiss Government holding 38 per cent.

Swiss served 11.6 million passengers in 2002. It also registered 22,371 revenue passenger kilometre out of a total 31,520 available seat capacity.

It registered a 71 per cent seat load factor in its network, including 78 per cent out of the Gulf.
Swiss has a fleet of 133 aircraft of which it has already grounded 21. It currently serves 98 destinations, including seven in the Middle East through 26 weekly flights.

"Despite a 20 per cent decline in inbound leisure traffic from Europe, our operations in the Gulf remains one of the most profitable among other sectors in the entire network," said Chris Watts, vice president for external relations of Swiss.

"We are very pleased with the performance of the Middle East route in our first year of operations, especially taking into account the current economical climate affecting the aviation industry.

"Outbound bookings out of the Gulf are still higher compared to last year's and the airline has had a successful year of operation in what is perceived as a difficult year in global aviation. The Middle and Far East together constitutes about 10 per cent to our total operations. These two markets, however, are very high yield sectors," he added.

The seat load factors (SLF) across Europe began to decline around November 2002, when Swiss undertook certain measures that helped the carrier to save SR100 million.

"In view of the declining market situation in Europe in which SLFs have generally declined by 42 per cent, our SLFs have only declined by 20 per cent. We undertook certain measures, including stopped operating in 16 destinations and taking out six aircraft from the fleet that helped us to reduce operating costs in 2002 to maintain profitability.

"We expect to reduce operating cost by 497 million francs by end 2003, of which we have already achieved 130 million francs by taking out a further 15 aircraft from service. In coming months, we will lay off 700 employees from payroll."

"In 2004, we expect to reduce costs by 600 million francs which might include laying off more staff."

Swiss' load factor from Dubai rose to 85 per cent during the first quarter of the current year.
The carrier will be introducing a new-look on Airbus A330s in coming months as all the A330s will go in for refurbishment from summer this year.

[DCS99]

Aviation Trainer: by your argument, you could say Singapore Airlines, Cathay and KLM, all "flag-carriers" of small countries aren't needed.

It's not Size of country that matters, it's a lot of other factors: location, route network, transfer market, cost structure, quality of management and staff etc etc.

I won't comment on Quality of Management at Swiss.
But I will say that flying empty MD-11s to Cairo at present is a bit over the top when an A319 would do instead...

Grüssli

[Aviation Trainer too]

Excuse le mot (or something to that effect)

I was merely attacking the statement that a country NEEDS a flagcarrier. No country NEEDS a flagcarrier. It is convinient yes and maybe gives a country some pride.

Belgium shows clearly that the country survives without one and my argument is that all state aid to Swiss and Olympic and the likes that is paid for by their respective tax payers is merely damaging viable carriers like Singapore Airlines,Cathay and KLM.

Swiss went bust and I am sorry for that as it had a great reputation. But there is no need to try to revive a corpse if it will only spread disease to relative healthy neighbours....

[wallabie]

Av

Allow me to say : " You are a tart ! "

Once upon a time Swiss was a fine airline managed by a bunch of apes who couldn't tell poo from apple sauce.
Had Swiss Air been led by sensible gents, they would have gone into an alliance like everyone else and would be in great shape.
They had a place then and would have one now.
Our Swiss colleagues will undoubtly be very moved by your kindest comments.
If the Guv wasn't in jail you could have fooled me but then.......................you could be 411A, his heir to the throne.