Updated Crossair/Swissair Business Plan Revealed
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Updated Crossair/Swissair Business Plan Revealed
From ATWOnline
Crossair, Swissair to form new international airline
Dateline: Monday December 10, 2001
Crossair CEO Andre Dose said the project to revive bankrupt Swissair aims "to create and develop a new international airline" rather than merging the two carriers.
Dose presented a business concept and outlined the planned development of the rapidly forming new airline to shareholders at a special meeting in Basel last week. Restructuring to salvage remnants of Swissair along relatively modest lines "represents expansion in a different direction, accompanied by a fresh[operational] focus" that can lead the combined entity to profitability, he said.
A new board of directors picked by a steering committee designated by controlling banks was installed at the marathon 6-hr. meeting. A SFr2.7 billion ($1.6 billion)
capital increase also was approved.
One of the first items on the reconstituted supervisory board's agenda will be selecting
a name for the new airline, Dose said. Preliminary indications point to branding the
carrier Swiss Airways, with Swiss Air Lines a possible alternative, sources told ATWOnline. The Swissair name belongs to the SAirGroup holding company but its owners are asking far too much for it to be considered, informed sources said.
The SR code on short- and medium-distance flights will be replaced by Crossair's LX designator by mid-Jan. LX is also the likely code for former Swissair long-haul operations that revert to Crossair at the end of March. The carrier's network concept will be formed around Zurich as an intercontinental hub and EuroAirport Basel-Mulhouse-Freiburg as a regional hub, with connections from Geneva, Lugano and Bern, Dose said. There will be less emphasis on transfer traffic and more concentration on local point-to-point operations.
Plans call for 26 A320-family aircraft for the short-haul European fleet, versus Swissair's former 41 planes, and 26 aircraft for the medium- and long-haul fleet, down from Swissair's 35. Folding in the current Crossair fleet would raise the total to 125 aircraft in 2002 to transport a projected 9.8 million passengers. The fleet would increase in 2003 to 126 with 14.1 million projected passengers and in 2004 to 127 with 14.5 million passengers.
Crossair planners envisage "only around SFr3 billion in revenue in 2002, leading to a SFr1.1 billion loss for the year," Dose said. Revenue is projected to recover in 2003 to about SFr5 billion, heading the company toward breakeven, with profits and "moderate growth" expected from 2004 onward. The balance sheet equity ratio is expected to remain at around 35% after the turnaround is completed, he added.
The pared-down intercontinental network from April will encompass seven destinations and 62 frequencies in North America, three destinations and 16 frequencies in South America, 14 destinations and 37 frequencies in Africa, seven destinations and 37 frequencies in the Middle East and nine destinations and 54 frequencies in Southeast
Asia.
Membership in one of the major alliances is basic to future planning, Dose told ATWOnline. "It's the only way to go for an airline operating globally. Simply an imperative," he said, adding that extensive discussions are well underway. Aside from competitive considerations regarding the Star Alliance and Lufthansa, some analysts question whether any alliance would view the Swissair/Crossair amalgamation as a potential partner while it is still in early stages of organizing.
Getting former Swissair employees to work in harmony with Crossair staff within the new airline is a challenging stumbling block that needs to be overcome quickly, Dose admitted. There are deeply imbedded differences in corporate culture between the two groups. Observers of the local aviation scene view Swissair as much more conservative than independent-minded Crossair.
Dateline: Monday December 10, 2001
Crossair CEO Andre Dose said the project to revive bankrupt Swissair aims "to create and develop a new international airline" rather than merging the two carriers.
Dose presented a business concept and outlined the planned development of the rapidly forming new airline to shareholders at a special meeting in Basel last week. Restructuring to salvage remnants of Swissair along relatively modest lines "represents expansion in a different direction, accompanied by a fresh[operational] focus" that can lead the combined entity to profitability, he said.
A new board of directors picked by a steering committee designated by controlling banks was installed at the marathon 6-hr. meeting. A SFr2.7 billion ($1.6 billion)
capital increase also was approved.
One of the first items on the reconstituted supervisory board's agenda will be selecting
a name for the new airline, Dose said. Preliminary indications point to branding the
carrier Swiss Airways, with Swiss Air Lines a possible alternative, sources told ATWOnline. The Swissair name belongs to the SAirGroup holding company but its owners are asking far too much for it to be considered, informed sources said.
The SR code on short- and medium-distance flights will be replaced by Crossair's LX designator by mid-Jan. LX is also the likely code for former Swissair long-haul operations that revert to Crossair at the end of March. The carrier's network concept will be formed around Zurich as an intercontinental hub and EuroAirport Basel-Mulhouse-Freiburg as a regional hub, with connections from Geneva, Lugano and Bern, Dose said. There will be less emphasis on transfer traffic and more concentration on local point-to-point operations.
Plans call for 26 A320-family aircraft for the short-haul European fleet, versus Swissair's former 41 planes, and 26 aircraft for the medium- and long-haul fleet, down from Swissair's 35. Folding in the current Crossair fleet would raise the total to 125 aircraft in 2002 to transport a projected 9.8 million passengers. The fleet would increase in 2003 to 126 with 14.1 million projected passengers and in 2004 to 127 with 14.5 million passengers.
Crossair planners envisage "only around SFr3 billion in revenue in 2002, leading to a SFr1.1 billion loss for the year," Dose said. Revenue is projected to recover in 2003 to about SFr5 billion, heading the company toward breakeven, with profits and "moderate growth" expected from 2004 onward. The balance sheet equity ratio is expected to remain at around 35% after the turnaround is completed, he added.
The pared-down intercontinental network from April will encompass seven destinations and 62 frequencies in North America, three destinations and 16 frequencies in South America, 14 destinations and 37 frequencies in Africa, seven destinations and 37 frequencies in the Middle East and nine destinations and 54 frequencies in Southeast
Asia.
Membership in one of the major alliances is basic to future planning, Dose told ATWOnline. "It's the only way to go for an airline operating globally. Simply an imperative," he said, adding that extensive discussions are well underway. Aside from competitive considerations regarding the Star Alliance and Lufthansa, some analysts question whether any alliance would view the Swissair/Crossair amalgamation as a potential partner while it is still in early stages of organizing.
Getting former Swissair employees to work in harmony with Crossair staff within the new airline is a challenging stumbling block that needs to be overcome quickly, Dose admitted. There are deeply imbedded differences in corporate culture between the two groups. Observers of the local aviation scene view Swissair as much more conservative than independent-minded Crossair.
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One thing is for certain, from the beginning, costs need to be controlled....and flight and cabin crew salaries kept in check.
The gravy train is....over.
Wonder when they will train the Crossair guys on the MD-11?
The gravy train is....over.
Wonder when they will train the Crossair guys on the MD-11?
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Andre is a great guy, and like Moritz, grew up in a cockpit rather than a banker's conference room. If anyone can make it work, it is him. I hope the crews of LX and SR will support him in trying to move forward rather than bickering between themselves. Good luck.
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Well, "Student engineer", "Licence type: private" and some obvious sour grapes about the SR-SN history.
This thread is about the business plan of CROSSAIR !
WHAT money, SN never had any money, nor has SN ever MADE any money ! The only money SN ever had (and subsequently wasted) was given by the Belgian taxpayer ! Don´t blame SR or LX for SN´s troubles.
This thread is about the business plan of CROSSAIR !
Notre Argent
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Bluskis
actually these guys were heavily influenced by Mr. Rainer E. Gut, at theat time the head of what is now Credit Suisse. Later on he sent his protegé Lukas Mühlemann into the Swissair Board. And guess what: after being responsible for the fiasco (with the pleasant help of Mrss. Brugisser, Schorderet, Goetz and Co), he now is the Head of the Steering Commité and appoints another total failure from KLM to do the job? And this on MY tax money!
LROPS
just not to forget: the SABENA adventure cost Swissair over 2 BILLION US Dollars. That is money they sunk into Sabena, so where the f**k is it? If someone stole money here, they're sitting in belgium, and after a stupid Belgian company with subleased turkish drunken drivers did cause the Gotthard tunnel catastrophy, I'd be very quiet if I were you. I don't need your stupid trucks! Stay home!
actually these guys were heavily influenced by Mr. Rainer E. Gut, at theat time the head of what is now Credit Suisse. Later on he sent his protegé Lukas Mühlemann into the Swissair Board. And guess what: after being responsible for the fiasco (with the pleasant help of Mrss. Brugisser, Schorderet, Goetz and Co), he now is the Head of the Steering Commité and appoints another total failure from KLM to do the job? And this on MY tax money!
LROPS
just not to forget: the SABENA adventure cost Swissair over 2 BILLION US Dollars. That is money they sunk into Sabena, so where the f**k is it? If someone stole money here, they're sitting in belgium, and after a stupid Belgian company with subleased turkish drunken drivers did cause the Gotthard tunnel catastrophy, I'd be very quiet if I were you. I don't need your stupid trucks! Stay home!
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Andre is indeed a good guy who has 'come up the hard way' crop dusting, corporate flying and then to airlines.
But make no mistake he has a hard row to hoe. The cultures of the LX and SR are vastly different and could prove the undoing of the new airline. Add to the mix the gnomes being in charge with 70% holding Dose's job will doubtless be even harder than it needs to be.
But make no mistake he has a hard row to hoe. The cultures of the LX and SR are vastly different and could prove the undoing of the new airline. Add to the mix the gnomes being in charge with 70% holding Dose's job will doubtless be even harder than it needs to be.
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LROPS,
"Good news for ex-SR employees"....
It is medium good news for some of the present employees of SR, who will be able to continue to fly under the arrangement - if it works. It is terrible news for the ex-SR employees and some future ex- SR employees, who are just that - out of work. 26 long range and 26 short range aircraft are only a part of the original fleet.
By the way I also sympathise with the Sabena job losses. Swissair made a terrible mistake trying to have Sabena as a partner and then having to pour their fortune into the company to keep it operating but the plight of the Sabena jobless is no less hard for that.
"Good news for ex-SR employees"....
It is medium good news for some of the present employees of SR, who will be able to continue to fly under the arrangement - if it works. It is terrible news for the ex-SR employees and some future ex- SR employees, who are just that - out of work. 26 long range and 26 short range aircraft are only a part of the original fleet.
By the way I also sympathise with the Sabena job losses. Swissair made a terrible mistake trying to have Sabena as a partner and then having to pour their fortune into the company to keep it operating but the plight of the Sabena jobless is no less hard for that.
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Hunter 58 and LROPS:
Aren't we getting just a bit too parochial here?
As for SAir Group's adventure into Belgium... well they also forced their money upon a number of other hopeless commercial ventures, notably so in France and Italy.
Hunter 58: you might also want to consider that all three major "Swiss" airports (LSZM, LSGG, LSZH) only operate thanks to neighbours (in Germany and France)who are asked to burden an environmental impact that most "Bünzlis" are unwilling to accept.
All in all, it seems that Sabena was a worthy member of SAir Group (or vice-versa, if you like). Certainly, there would have been lots of cross-insemination of financial acrobatic prowess
[ 11 December 2001: Message edited by: Hooking Fell ]
Aren't we getting just a bit too parochial here?
As for SAir Group's adventure into Belgium... well they also forced their money upon a number of other hopeless commercial ventures, notably so in France and Italy.
Hunter 58: you might also want to consider that all three major "Swiss" airports (LSZM, LSGG, LSZH) only operate thanks to neighbours (in Germany and France)who are asked to burden an environmental impact that most "Bünzlis" are unwilling to accept.
All in all, it seems that Sabena was a worthy member of SAir Group (or vice-versa, if you like). Certainly, there would have been lots of cross-insemination of financial acrobatic prowess
[ 11 December 2001: Message edited by: Hooking Fell ]
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Gruezi to the Swiss colleagues,
although it might not be a very popular question in times like these but I wonder why they are still talking of 26 long-haul aircraft. Of course it is only a part of SR´s former fleet but it seems to be rather unrealistic in size.
The "option" of forming an new alliance mentioned by P. Bouw hopefully is just a misunderstanding at his part... but joining one of the existing ones would either require a complete drop of long-haul for star or a significantly reduced volume for Skyteam. I think the answer of Oneworld is already known, so what are those bankers and politicians in Switzerland talking of? Sure it would be a good thing to have a big fleet, but it is not needed and might be the beginning of the next end.
It might sound hard from the outside but this is probable not the right strategy for the future but wishful thinking from the old elite of SR.
Open for comments, it´s just my outside view.
Brgds & good luck, silversurfer
although it might not be a very popular question in times like these but I wonder why they are still talking of 26 long-haul aircraft. Of course it is only a part of SR´s former fleet but it seems to be rather unrealistic in size.
The "option" of forming an new alliance mentioned by P. Bouw hopefully is just a misunderstanding at his part... but joining one of the existing ones would either require a complete drop of long-haul for star or a significantly reduced volume for Skyteam. I think the answer of Oneworld is already known, so what are those bankers and politicians in Switzerland talking of? Sure it would be a good thing to have a big fleet, but it is not needed and might be the beginning of the next end.
It might sound hard from the outside but this is probable not the right strategy for the future but wishful thinking from the old elite of SR.
Open for comments, it´s just my outside view.
Brgds & good luck, silversurfer
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Saab-2000
I don't blame SR for all the trouble but they have theire responsibilities!!
One exemple: When SN-Catering became GateGourmet the cost rose by 500% with the same structure
Hunter,
If someone stole money here, they're sitting in belgium, and after a stupid Belgian company with subleased turkish drunken drivers did cause the Gotthard tunnel catastrophy, I'd be very quiet if I were you. I don't need your stupid trucks! Stay home!
Very intelligent and constructive. I could say Swiss poeple stole a lot of money during the WW but I am not so stupid as you. I don't sentence a whole country for individual mistakes
Few Cloudy
But they have a future that ex-Sn employees don't
I don't blame SR for all the trouble but they have theire responsibilities!!
One exemple: When SN-Catering became GateGourmet the cost rose by 500% with the same structure
Hunter,
If someone stole money here, they're sitting in belgium, and after a stupid Belgian company with subleased turkish drunken drivers did cause the Gotthard tunnel catastrophy, I'd be very quiet if I were you. I don't need your stupid trucks! Stay home!
Very intelligent and constructive. I could say Swiss poeple stole a lot of money during the WW but I am not so stupid as you. I don't sentence a whole country for individual mistakes
Few Cloudy
But they have a future that ex-Sn employees don't
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Lrops - perhaps if the SN employees weren't keener on striking rather than working, then they would still be around today!
In addition, you can blame the horrendously high 'social costs' in Belgium that make running a business nearly twice as expensive there than anywhere else in the EU - you need to decide whether you want to be a welfare state where everyone vegitates at home on government handouts or you want to be entrepreneurial like the Brits, Irish or the Dutch. Guess where the foreign investment goes!
In addition, you can blame the horrendously high 'social costs' in Belgium that make running a business nearly twice as expensive there than anywhere else in the EU - you need to decide whether you want to be a welfare state where everyone vegitates at home on government handouts or you want to be entrepreneurial like the Brits, Irish or the Dutch. Guess where the foreign investment goes!
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Lrops - perhaps if the SN employees weren't keener on striking rather than working, then they would still be around today!
In addition, you can blame the horrendously high 'social costs' in Belgium that make running a business nearly twice as expensive there than anywhere else in the EU - you need to decide whether you want to be a welfare state where everyone vegitates at home on government handouts or you want to be entrepreneurial like the Brits, Irish or the Dutch. Guess where the foreign investment goes!
I agree with you on this
As I said before I don't blame SR for the entire SN case but I think ALL the responsibles, including belgium gov, have to pay for theirs errors in managment. And there are a lot!!
In addition, you can blame the horrendously high 'social costs' in Belgium that make running a business nearly twice as expensive there than anywhere else in the EU - you need to decide whether you want to be a welfare state where everyone vegitates at home on government handouts or you want to be entrepreneurial like the Brits, Irish or the Dutch. Guess where the foreign investment goes!
I agree with you on this
As I said before I don't blame SR for the entire SN case but I think ALL the responsibles, including belgium gov, have to pay for theirs errors in managment. And there are a lot!!
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Hunter58: anyone who calls himself God is, in my view, more than a little suspicious. You may want to accept this opportunity to win a soul. Would you care to elaborate on the following points:
Why do you consider Pieter Bouw to be a total failure? (No-one else seems to)
What is the portion of the taxes you pay that has gone into the Swissair fiasco?
What does a road accident have to do with this topic?
Saab2000: whatever else you say, you have to admit that promising to invest in a company (in return for something else), and then simply declaring you're unable to do so and start from square one as if nothing had happened may be good for business, but it's hardly very ethical.
Guvnor: have you ever considered the possibility that the reason why Belgians (and the oft-maligned French) resort to striking is because it is the only way for their grievances to be heard? To quote a very recent example: French gendarmes went on strike to obtain improved work conditions. Many of them had taken their personal computers to work in order to be able to continue working. How can anyone not sympathise with them? The problem seems to lie at least as much with management as with those who expose themselves to the media.
Finally: a fourth European alliance may not a bad idea at all. Let's prove Jürgen Weber, Rod Eddington and Jean-Cyril Spinetta wrong!
Why do you consider Pieter Bouw to be a total failure? (No-one else seems to)
What is the portion of the taxes you pay that has gone into the Swissair fiasco?
What does a road accident have to do with this topic?
Saab2000: whatever else you say, you have to admit that promising to invest in a company (in return for something else), and then simply declaring you're unable to do so and start from square one as if nothing had happened may be good for business, but it's hardly very ethical.
Guvnor: have you ever considered the possibility that the reason why Belgians (and the oft-maligned French) resort to striking is because it is the only way for their grievances to be heard? To quote a very recent example: French gendarmes went on strike to obtain improved work conditions. Many of them had taken their personal computers to work in order to be able to continue working. How can anyone not sympathise with them? The problem seems to lie at least as much with management as with those who expose themselves to the media.
Finally: a fourth European alliance may not a bad idea at all. Let's prove Jürgen Weber, Rod Eddington and Jean-Cyril Spinetta wrong!
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My goodness, Bentagain, how VERY progressive!
Rather than grievances, one suspects that our French and Belgian colleagues strike in order to be heard....
The fact that they lack moral, ethical or legal substance in their claims is, as ever, secondary to the need for attention which lies at the centre of their identity.
Swissair made a well intended, albeit misguided investment of good faith in Sabena. Who could have guessed the extent to which the Belgians collectively swallow.
For those of us who enjoy at least a nodding aquaintance with sanity (hello Hunter58, I see the increase in your Lithium dossage hasn't kicked in yet!), understanding the reason for Switzerland's excentricity from the EU, the opportunities being grasped by the expanded Crossair become self-evident.
It will, of course, thrive.
Rather than grievances, one suspects that our French and Belgian colleagues strike in order to be heard....
The fact that they lack moral, ethical or legal substance in their claims is, as ever, secondary to the need for attention which lies at the centre of their identity.
Swissair made a well intended, albeit misguided investment of good faith in Sabena. Who could have guessed the extent to which the Belgians collectively swallow.
For those of us who enjoy at least a nodding aquaintance with sanity (hello Hunter58, I see the increase in your Lithium dossage hasn't kicked in yet!), understanding the reason for Switzerland's excentricity from the EU, the opportunities being grasped by the expanded Crossair become self-evident.
It will, of course, thrive.