Swissair takes bite out of Belgian and suffers severe indigestion
Today's Flight P.27 has an interesting article on Swissair's bid to extricate itself from a deal to increase it's stake in Sabena from 49.5% to 85%.
Swissair CEO Mario Corti says "Sabena is running operating losses. We cannot continually pour in new capital only to have it spent."
The Belgian government has now said it will sue Swissair if a settlement is not found.
What on earth were Swissair management thinking when they bought into Sabena? If they were offered shares for nothing it would have been prudent to refuse but to buy into it, the mind boggles.
Perhaps another example of appalling boardroom mismanagement that seems so common these days in the airline industry. Will we see nice payoffs to the management leaving Swissair staff to pick up the pieces I wonder?
Regards
Exeng