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Swiss Int'l Air CEO certain of financing deal
Reuters, 11.25.03, 3:02 PM ET
ZURICH, Nov 25 (Reuters) - Indebted flag carrier Swiss International Air Lines <SWIN.S> is still in negotiations with creditors over a key financing package, its chief executive said on Tuesday, adding he was confident a deal would be reached.
Chief Executive Andre Dose told Swiss television DRS in an interview that the airline was also sticking by a concept to chase its budget rivals with cheaper tickets on European routes, adding that bookings for the Christmas period were good.
The loss-making carrier is searching for some 500 million Swiss francs in order to give it a buffer zone against the unforeseen through the lean winter months. Dose had said earlier in November that he expected a deal within the month.
"We will get this deal," Dose said. "We are making good progress. The negotiations are very complex. Swiss banks are involved, international banks are involved. That takes time."
Dose declined to comment on a date for completing the finance deal, which has been eagerly awaited by investors.
Shares in the carrier were also rattled earlier this week by concerns for its turnaround strategy after a key manger left.
However, Dose denied there would be any changes in the company's direction after the departure of William Meaney, the airline's commercial director who had overseen its push to tackle budget rivals with a low-cost European strategy.
"The strategy is not up for discussion at all," Dose said.
The programme is the centrepiece of the airline's plans to restore profitability by 2005. But it has come under mounting fire after the airline posted a loss of 276 million Swiss francs ($212 million) in the traditionally strong third quarter.
Copyright 2003, Reuters News Service