November 6, 2003
The Swiss bourse said on Thursday it had reprimanded loss-making Swiss International Air Lines for selectively disclosing details of a major staff and fleet cut earlier this year before informing the broader public.
The SWX Swiss Exchange body said Swiss' move on February 25 to inform some business partners of the cuts during trading hours and ahead of a public announcement after the market close was a breach of listing rules, which prohibit potentially price-sensitive facts from being published during trading hours.
Swiss, fighting for survival amid a sharp downturn in the airline industry, decided in February to cut its fleet by 20 aircraft and cut about 700 jobs. The drastic cost cuts were sparked by a CHF980 million (USD$715.6 million) loss last year.
By the end of the year, Swiss will have chopped its workforce by almost 40 percent and trimmed its fleet and network by about a third. It expects to break even next year and to make an operating profit in 2005.
A bourse spokesman also confirmed that Swiss is being investigated for another potential breach of listing rules.
Swiss has said the case involves an interview with Chief Executive Andre Dose, who told Reuters on October 14 that Swiss was "in the process of concluding" a key credit facility and he was hopeful an announcement could be made soon.
His remarks prompted a sharp rise in Swiss' tightly held and highly volatile shares.
Swiss has said the translation of Dose's remarks, which he made in German, had been interpreted "very optimistically" but declined to comment further.
(Reuters)
My comment: The Swiss Exchange "reprimand" should not have much consequences for the staff, not for the management.
But it damages the image of the company further: once again, the management handled in a unprofessional way. It will not help to reshape trust and confidence.