Press release from SAir Group:
Application for a moratorium of debt enforcement for part of the SAirGroup - Crossair to take over large amount of Swissair operations
Zurich, October 1, 2001 - The SAirGroup has applied with the responsible court for a moratorium of debt enforcement for the SAirGroup, SAirLines and Flightlease companies. The SAirGroup will also sell its 70-per-cent stake in Crossair to UBS and the Credit Suisse Group. Crossair will assume responsibility for parts of Swissair's flight operations no later than the beginning of the winter schedules on October 28, 2001.
The events taking place in the USA on September 11 have had a strongly negative influence on the results of the SAirGroup as well as on the outlook for future results. At the same time, efforts to improve the Group's liquidity and equity basis by selling off non-strategic business activities and by refinancing the Group's aircraft fleets, were substantially hampered. The SAirGroup estimates that by the end of 2002 the negative influence on the cash flow and equity basis will amount to approximately CHF 3.1 to 3.8 billion.
This represents a thoroughly new situation for the company compared to the one faced at the end of August. The Group's Board of Directors is forced to take immediate and drastic measures. The Board has therefore decided to sell the Group's 70-per-cent stake in Crossair to UBS and Credit Suisse Group at current market price. The two banks will grant the SAirGroup an additional bridging credit of CHF 250 million that will allow the Group to finance activities in its airline-related business units up to a point where they may, possibly, be sold.
Crossair plans to take over individual segments, amounting in total to two-thirds, of Swissair's flight operations, thereby creating a competitive Swiss airline that would be active on a world-wide basis. This would take place no later than the beginning of the winter timetables on October 28.
The trimming of the route network and the fleet will also cause a capacity reduction at Swissair that will result in the loss of 2560 jobs, 1750 of those in Switzerland. Operations will be maintained at normal levels in all other Group companies.
A proposal for a moratorium of debt enforcement for SAirGroup, SAirLines and Flightlease will be made to the responsible court.
Mario A. Corti will resign his seat on the Crossair Board of Directors with immediate effect. André Dosé also resigns as head of Swissair effective immediately.