Two Swissair aircraft were impounded at LHR this morning.
This is an internal memo sent to staff at SR:
Oct. 02. At a media conference in Zurich on Monday, Mario Corti and representatives of Swiss banks and Crossair explained the events that led to yesterday's
announcements and stated that the solution found serves to maintain the existence of a Swiss airline.
In his comments on how this decision was reached, Mario A. Corti stated that the events taking place in the USA on September 11 will have a total revenue and value loss for the Group of some CHF 3 billion. By the
end of 2002 lost revenue stemming from operations will amount to approximately CHF 900 million. The terrorist attacks also resulted in reduced leasing-agreement
revenue of between CHF 1 – 1.7 billion. The
corresponding loss for the airline-related activities, and on the price of the units now for sale, was CHF 1 billion. This shock was too substantial for the Group to manage on its own.
In the past few weeks events came at the Group at a very rapid pace and the Group’s liquidity situation had become extremely critical. For this reason a solution was sought outside the traditional channels.
Swiss industrial representative Andreas F. Leuenberger stated that the measures being taken were extremely regrettable for the Swiss economy but that a ray of light could be found in the fact that there would still be a Swiss airline flying the skies.
Marcel Ospel, Chairman of UBS, stated that this plan was designed to save the Swiss civil aviation industry. It is a radical yet realistic solution. The strong Swissair brand should be maintained if at all possible. The banks will take no operational function in Crossair. According to Ospel the banks’ commitment amounts to CHF 1.35 billion: CHF 260 million for the purchase of Crossair shares, CHF 250 million for a bridging credit to SAirLines, and a maximum of CHF 500
million as additional operating capital for Crossair and CHF 350 million for a capital increase of Crossair.
Moritz Suter, Crossair Chairman, appealed for support for these efforts and reminded that the capital increase will only take place if the required permits and transport concessions are provided by the authorities. André Dosé, CEO of Crossair, presented the concept for the new airline. He stated that the very good local market in Switzerland, profitable segments of Swissair, the two well-established and respected brands and the advantageous cost structure and dynamism of Crossair were assets for the new company.
But the new airline must be smaller than the current Swissair and Crossair. As a result, the common aircraft fleets will shrink from 162 to 134 in number. Swissair will operate 24 fewer aircraft. This will also result in a reduction in staff. At Swissair this will amount to approximately 30% of employees. The
concept is currently being fine-tuned and will then be presented to the Board of Directors.
In the Q&A segment of the press conference Mario Corti further stated that the CHF 200 million that was to be sent to Sabena on Monday was not paid out.