3000 personal to go at Swiss
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3000 personal to go at Swiss
According to the report on Moneycab.ch 3000 employees are to be laid off by fall this year. Swiss is accommodating to the demands of Lufthansa to reduce before a merger could happen. In all, 18 long haul aircraft and about the same medium (A320) would remain in the fleet and personal would be reduced from 9000 to 6000.
Swiss express is than to be fully operational and should be operating on 30 to 40 aircraft.
In the meanwhile rumours are spreading that Swiss is also in talks with Air France concerning a merger however not as serious as with the German competitor.
http://www.moneycab.ch/de/home/busin...swiss_koj.html
(in german only)
Swiss express is than to be fully operational and should be operating on 30 to 40 aircraft.
In the meanwhile rumours are spreading that Swiss is also in talks with Air France concerning a merger however not as serious as with the German competitor.
http://www.moneycab.ch/de/home/busin...swiss_koj.html
(in german only)
Join Date: Aug 2002
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Without any offence to anybody at Swiss, i think this is a rational decision.
The company needs to shrink to survive, it also needs a big brother.( possible merger with LH or AF)
There is no longer a need for the same fleet size of the old Swissair because Swiss doesn't own shares in strategic partner airlines that will render ZRH the hub it used to be.
But to save staff lay offs, a possible true low cost airline could emerge from the old Crossair using the RJ fleet.( and scrap Swiss Express
I hope this is the beginning of the end to Swiss' problems.
The company needs to shrink to survive, it also needs a big brother.( possible merger with LH or AF)
There is no longer a need for the same fleet size of the old Swissair because Swiss doesn't own shares in strategic partner airlines that will render ZRH the hub it used to be.
But to save staff lay offs, a possible true low cost airline could emerge from the old Crossair using the RJ fleet.( and scrap Swiss Express
I hope this is the beginning of the end to Swiss' problems.
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Here is the latest article in Air Transport World as well:
"Swiss says it must cut more costs after first-quarter net loss
Dateline: Wednesday May 28, 2003
Swiss International Air Lines warned Tuesday that weak passenger business will compel it to initiate additional cost cuts in coming months on top of a eur600 million ($712.2 million) savings plan revealed in April.
The announcement came as Swiss reported first-quarter revenues of Sfr1.04 billion ($810.7 million) and a net loss of Sfr200 million for the period ended March 31. Losses were little changed from the previous year's Sfr199 million and roughly in line with analysts' expectations.
Costs weighed in at Sfr1.27 billion, propelled by high fuel costs during the period. Operating loss totaled Sfr199 million compared to Sfr186 million in the year-ago quarter. Swiss, which admits to a daily cash-burn rate of Sfr1 million, said its liquidity fell Sfr343 million from the end of Dec. and stands at Sfr913 million.
The company is expected to curtail its fleet and payroll considerably as part of a new business plan to be finalized by the end of June. One confirmed scenario under study involves eliminating up to 3,000 more jobs from a current full-time workforce of 9,800 and paring the long-haul fleet from 26 to 18 aircraft. Swiss has trimmed more than 1,000 jobs and parked 27 aircraft since Nov.
Downsizing is viewed as a prerequisite for making the airline a realistic candidate to join oneworld or SkyTeam. It has failed so far in an ongoing desperate pursuit of alliance membership dating to its inception last year. Recurring reports of possible closer commercial links or merger with Star Alliance leader Lufthansa have been dismissed by both parties as unsubstantiated speculation, although they concede they have engaged in general discussions.--Leonard Hill "
"Swiss says it must cut more costs after first-quarter net loss
Dateline: Wednesday May 28, 2003
Swiss International Air Lines warned Tuesday that weak passenger business will compel it to initiate additional cost cuts in coming months on top of a eur600 million ($712.2 million) savings plan revealed in April.
The announcement came as Swiss reported first-quarter revenues of Sfr1.04 billion ($810.7 million) and a net loss of Sfr200 million for the period ended March 31. Losses were little changed from the previous year's Sfr199 million and roughly in line with analysts' expectations.
Costs weighed in at Sfr1.27 billion, propelled by high fuel costs during the period. Operating loss totaled Sfr199 million compared to Sfr186 million in the year-ago quarter. Swiss, which admits to a daily cash-burn rate of Sfr1 million, said its liquidity fell Sfr343 million from the end of Dec. and stands at Sfr913 million.
The company is expected to curtail its fleet and payroll considerably as part of a new business plan to be finalized by the end of June. One confirmed scenario under study involves eliminating up to 3,000 more jobs from a current full-time workforce of 9,800 and paring the long-haul fleet from 26 to 18 aircraft. Swiss has trimmed more than 1,000 jobs and parked 27 aircraft since Nov.
Downsizing is viewed as a prerequisite for making the airline a realistic candidate to join oneworld or SkyTeam. It has failed so far in an ongoing desperate pursuit of alliance membership dating to its inception last year. Recurring reports of possible closer commercial links or merger with Star Alliance leader Lufthansa have been dismissed by both parties as unsubstantiated speculation, although they concede they have engaged in general discussions.--Leonard Hill "
