official : Swissair filed for bankruptcy. Sabena next
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official : Swissair filed for bankruptcy. Sabena next
i just heard 5 minutes ago on the radio that Swissair has filed for bankruptcy
By domino effect another major, Sabena will have to file for bankruptcy this week.
Affected companies also : citybird, virgin express ...
By domino effect another major, Sabena will have to file for bankruptcy this week.
Affected companies also : citybird, virgin express ...
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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.
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.
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Some questions, if somebody can help???
1. Does this mean that Swissair have now actually ceased operating?
2. Are Crossair going to operate a significant number of SR routes?
3. Will the four Flightline aircraft continue to operate SR routes?
1. Does this mean that Swissair have now actually ceased operating?
2. Are Crossair going to operate a significant number of SR routes?
3. Will the four Flightline aircraft continue to operate SR routes?
This is all an accounting device to ditch the huge debt burden and still have a "National" airline. What Crossair will do is take on those bits of Swissair they can make money with (Routes/planes/people) using the banks money and the remaining rump of Swissair will be allowed to fold. Creditors may see very little of their money. Crossair will then remname itself " Swiss Air Lines" ( neat eh?) and off we go again in a new smaller set up. As this precludes Sabena getting their 200 million ($/£/Euro'?) which was due today I think it's curtains for them.
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Two Swissair aircraft were impounded at LHR this morning.
This is an internal memo sent to staff at SR:
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.
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.
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So where does this leave the other "Qualiflyer" airlines? am I right that Sair still have substantial (49%) shareholdings in LTU and Air Europe as well a Sabena and therefore Sobelair?
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I've seen some press about LTU and obviously Sabena but very little on Air Europe / Volare Airlines in Italy. If SAir have 49% in that group as well who knows. With Sabena and LTU Swissair cash was needed for their business plans but I don't think that is the case for Air Europe/Volare. If so, they may be in a much better position but all looks very unclear at the moment.
Seems like a real mess
Seems like a real mess
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Swiss Air may downsize but will NEVER go under. The amount of finance that will be injected in SA through certain Swiss banks is neglegable. These banks are controled by a Swiss family group who also control these Swiss banks thru holding companies and stock holdings. The is a very old family who are completely above board and will never allow SA to die. The amount of money tobe injected is pee nuts to them.
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G'day Spuds. Things changing LSZH big time. Who knows what will happen when the dust settles. Many job losses at SR, very sad. Not sure where we will be when it gets all sorted.
Hope your enjoying NZ. When (if) next in ZRH I'll have that beer for you, STAY CLEAR OF THE SHEEP!!!!!!!!
Hope your enjoying NZ. When (if) next in ZRH I'll have that beer for you, STAY CLEAR OF THE SHEEP!!!!!!!!
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It is sad, Wheelie, indeed. I remember having several conversations at work about Swissair's strategy over the past couple of years. Generally we were shaking our heads in disbelief but never thought it would end up like this. I predicted that Swissair would end up in One World, now they ended up tits up. However the next step for Swissair 2 would have to be to join an alliance, which would be...One World. Otherwise: No chance.
BTW, spring is creeping in down here (26°C today!). And I've managed to avoid the woollen pigs so far (where are my gumboots?)
BTW, spring is creeping in down here (26°C today!). And I've managed to avoid the woollen pigs so far (where are my gumboots?)
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If you go to www.swissair.com and check "Arrivals/Departures" from Zurich, you will see that the majority of flights are indeed listed as "Delayed" or "Cancelled". Delayed seems optimistic at this point. 4-digit flight numbers are operated by other airlines, and seem to be working normally.
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Press release from Swissair
Air Liberte, Sabena and LTU, all of whom want money from Swissair, are the big loosers here.
European operations - all be it a little downgraded probably - should go to Crossair (LX).
The big question is what happens to the longhaul's.
Guv - want to change your mind and go MD11 - got 15 well maintained bodies for the highest bidder ???
Swissair flight operations suspended – next decision at 14:00 Swiss Air Transport Company Ltd.
Corporate Communications
P. O. Box
CH-8058 Zurich Airport
Switchboard: ++41 1 812 12 12
Direct Dial: ++41 1 812 71 17
Email: [email protected]
Zürich, October 2nd, 2001
Zurich-Airport, October 2, 2001 -– Swissair’s flight operations were suspended at 12:30 CET. All aircraft that are currently airborne en route will continue their flights to their destination as scheduled.
Swissair is engaged in intensive negotiations with the banks to ensure the continuation of its flight operations. A final decision is due at 14:00
Corporate Communications
P. O. Box
CH-8058 Zurich Airport
Switchboard: ++41 1 812 12 12
Direct Dial: ++41 1 812 71 17
Email: [email protected]
Zürich, October 2nd, 2001
Zurich-Airport, October 2, 2001 -– Swissair’s flight operations were suspended at 12:30 CET. All aircraft that are currently airborne en route will continue their flights to their destination as scheduled.
Swissair is engaged in intensive negotiations with the banks to ensure the continuation of its flight operations. A final decision is due at 14:00
European operations - all be it a little downgraded probably - should go to Crossair (LX).
The big question is what happens to the longhaul's.
Guv - want to change your mind and go MD11 - got 15 well maintained bodies for the highest bidder ???
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A few interesting facts to mull over...
Swissair were strongly advised by McKinsey Consulting to adopt the strategy of buying foreign (Non-Swiss) European airlines as the main part of its expansion policy. The assumption was that non-Swiss airlines are badly run, and some 'proper' Swiss management would soon turn 'em around. Bloody foreigners, you can't trust 'em, you know.
A major player on the Swissair Board at the time was a chap called Lukas Mühlemann.
Lukas Mühlemann was for many years the CEO of McKinsey Consulting (Switzerland). His specific account was, (a bit embarrassing, this), Swissair. Ahem.
Meanwhile, Lukas Mühlemann has been a major player at Credit Suisse for nearly ten years, since he left McKinsey, and is now in fact the CEO. Credit Suisse is also a major McKinsey account. Chuck a brick in Credit Suisse and it'll hit a powerful ex-McKinsey executive square between the eyes. Nepotism? Perish the thought.
Any company's banker has a strong influence on its strategic initiatives.
The McKinsey advice was rubber-stamped by the Board, in spite of knowledgeable resistance inside and outside the company.
The strategy was proven to be a load of bollocks.
McKinsey Consulting legged it from Swissair when it became clear that their 'strategy' had pretty much broken the back of the company.
Lukas Mühlemann 'retired' from the Swissair Board during the previous crisis meeting, just a few months ago.
Just after Mühlemann's 'retirement', a market analyst 'retired' from Credit Suisse just after he wrote a 'totally erroneous and biased' report which clearly stated that Swissair was screwed and a clear 'sell-sell-sell'. The Swissair stock price remained high.
Swissair has just gone tits up.
The whole Swiss establishment is pointing at the WTC disaster as the root cause...
...which is a load of toss.
For some strange reason, Credit Suisse's exposure to the Swissair bankrupcy is strangely low, especially when compared to UBS. Any rumours relating this to the fact that Lukas Mühlemann is the CEO of Credit Suisse are totally without foundation. Clearly.
Lukas Mühlemann looked rather uncomfortable at last night's press conference, which was one of the few high spots of the occasion.
Do I hear the sound of keys rattling? Oh, I do hope so...
TW
Swissair were strongly advised by McKinsey Consulting to adopt the strategy of buying foreign (Non-Swiss) European airlines as the main part of its expansion policy. The assumption was that non-Swiss airlines are badly run, and some 'proper' Swiss management would soon turn 'em around. Bloody foreigners, you can't trust 'em, you know.
A major player on the Swissair Board at the time was a chap called Lukas Mühlemann.
Lukas Mühlemann was for many years the CEO of McKinsey Consulting (Switzerland). His specific account was, (a bit embarrassing, this), Swissair. Ahem.
Meanwhile, Lukas Mühlemann has been a major player at Credit Suisse for nearly ten years, since he left McKinsey, and is now in fact the CEO. Credit Suisse is also a major McKinsey account. Chuck a brick in Credit Suisse and it'll hit a powerful ex-McKinsey executive square between the eyes. Nepotism? Perish the thought.
Any company's banker has a strong influence on its strategic initiatives.
The McKinsey advice was rubber-stamped by the Board, in spite of knowledgeable resistance inside and outside the company.
The strategy was proven to be a load of bollocks.
McKinsey Consulting legged it from Swissair when it became clear that their 'strategy' had pretty much broken the back of the company.
Lukas Mühlemann 'retired' from the Swissair Board during the previous crisis meeting, just a few months ago.
Just after Mühlemann's 'retirement', a market analyst 'retired' from Credit Suisse just after he wrote a 'totally erroneous and biased' report which clearly stated that Swissair was screwed and a clear 'sell-sell-sell'. The Swissair stock price remained high.
Swissair has just gone tits up.
The whole Swiss establishment is pointing at the WTC disaster as the root cause...
...which is a load of toss.
For some strange reason, Credit Suisse's exposure to the Swissair bankrupcy is strangely low, especially when compared to UBS. Any rumours relating this to the fact that Lukas Mühlemann is the CEO of Credit Suisse are totally without foundation. Clearly.
Lukas Mühlemann looked rather uncomfortable at last night's press conference, which was one of the few high spots of the occasion.
Do I hear the sound of keys rattling? Oh, I do hope so...
TW
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Zürich, October 2nd, 2001
Zurich Airport, October 2, 2001 – Swissair has been forced to cease all flight operations today with immediate effect. Despite intensive efforts throughout the day, the company has been unable to obtain the liquidity needed to secure daily business and safe operations. It is uncertain at this time when flight operations will resume.
All Swissair flights had to be suspended from 12:30 CET (10:30 UTC) today. The decision that no further aircraft would be allowed to depart from Switzerland was taken at 15:45 CET (13:45 UTC). The aircraft currently abroad will be flown back to Switzerland as soon as possible.
Swissair regrets this measure, which has a drastic impact, especially for its passengers and staff. The action is being taken in what has traditionally been the strongest month of the year in revenue terms, and affects not only thousands of passengers but also thousands of jobs in and outside Switzerland. Far more jobs are now at risk than the 2650 announced yesterday.
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Tricky Woo - would, perchance, this be the same Lukas Mühlemann who, along with his counterparts at UBS came up with the bright idea of buying out Crossair to which they would then lend CHF 1 billion so that it could buy the viable parts of SAirGroup, thus leaving very little in the pot for anyone except secured creditors - who, strangely enough and I am sure by amazing coincidence, include said UBS and Credit Suisse? 
Who pockets the consultancy and structuring fees on this one?
However, the latest news from the SR website doesn't look at all promising:
[ 02 October 2001: Message edited by: The Guvnor ]
Who pockets the consultancy and structuring fees on this one?
However, the latest news from the SR website doesn't look at all promising:
Zurich Airport, October 2, 2001 – Swissair has been forced to cease all flight operations today with immediate effect. Despite intensive efforts throughout the day, the company has been unable to obtain the liquidity needed to secure daily business and safe operations. It is uncertain at this time when flight operations will resume.
All Swissair flights had to be suspended from 12:30 CET (10:30 UTC) today. The decision that no further aircraft would be allowed to depart from Switzerland was taken at 15:45 CET (13:45 UTC). The aircraft currently abroad will be flown back to Switzerland as soon as possible.
Swissair regrets this measure, which has a drastic impact, especially for its passengers and staff. The action is being taken in what has traditionally been the strongest month of the year in revenue terms, and affects not only thousands of passengers but also thousands of jobs in and outside Switzerland. Far more jobs are now at risk than the 2650 announced yesterday. "
All Swissair flights had to be suspended from 12:30 CET (10:30 UTC) today. The decision that no further aircraft would be allowed to depart from Switzerland was taken at 15:45 CET (13:45 UTC). The aircraft currently abroad will be flown back to Switzerland as soon as possible.
Swissair regrets this measure, which has a drastic impact, especially for its passengers and staff. The action is being taken in what has traditionally been the strongest month of the year in revenue terms, and affects not only thousands of passengers but also thousands of jobs in and outside Switzerland. Far more jobs are now at risk than the 2650 announced yesterday. "