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Swiss downsize definite

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Old 25th Feb 2003, 16:22
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Swiss downsize definite

so it's definite: twenty aircraft to be parked and 700 positions to disappear. one A321, two MD83 and 17 fifty seaters. 200 pilots, 200 cabin staff and 300 groundstaff.

I hope we have seen the last of it...
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Old 25th Feb 2003, 16:57
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My sympathies EFCOP. When does this start taking effect?
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Old 25th Feb 2003, 17:40
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Does that mean most of the EMB145 pilots are effected or as per seniority?cheers
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Old 25th Feb 2003, 18:55
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I guess the guys from the now ex Crossair can't be that happy then...?
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Old 25th Feb 2003, 19:08
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I guess that all are guessing.
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Old 25th Feb 2003, 20:01
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Have to get lucky with the Swiss LOTTO this weekend, come on Mrs DCS, get those numbers right for once - else we'll be shutting up shop here and heading back to Hounslow.

This is grim news.

25.02.2003

SWISS cuts fleet, route network and jobs


A package of emergency measures proposed by the executive management was approved by the SWISS Board of Directors on 24 February 2003. In Zurich, Geneva, Basel, Bern and Lugano, destinations will be reduced and routes discontinued. The fleet is to be cut by 20 aircraft: 17 regional jets, two Boeing MD-83s and one Airbus A321. These measures will also mean the loss of around 700 jobs. Swiss International Air Lines believes it is essential to react to the worsening economic situation by adjusting its route network and reducing its fleet. The changes will come into effect with the summer timetable from 30 March 2003.


The enduringly gloomy economic climate and deep crisis in the global aviation industry are having a serious negative impact on business development at SWISS and have forced the executive management to take swift action. Despite a higher market share, revenues and passenger numbers are in sharp decline on the European network.

The decisions taken last November were based on the figures for August/September 2002. Six months on, the situation has changed dramatically. A good load factor was enough to compensate for the fluctuations in yield (revenues per seat). Following the seasonal downturn in the number of passengers in November, however, this curve fell sharply against budget in December (-5%) and January (-10%) and continues to fall. Regional and short-haul routes are negative whilst long-haul routes are still performing to budget.

The generalised slump in the economy is reflected in the airline sector by a change in consumer behaviour. Former business passengers keen to make savings now tend to book Economy class. The forecasts for 2003 remain poor and there is no improvement in sight.


Fleet

The massive collapse in demand in European air travel makes adjustments to the European fleet capacity essential. SWISS is to take 20 aircraft out of operation. The aircraft involved are one Airbus A321, two Boeing MD-83s and 17 regional jets. This means the SWISS European fleet, including the Airbus A320s, will total maximum 84 aircraft.


Zurich
In Zurich, capacity adjustments will affect a total of 24 destinations. There will be one extra flight to Warsaw and Stuttgart. Frequencies on routes to London City, Graz, Hanover, Cologne, Nuremberg, Prague, Bucharest, Nice, Munich, Madrid and Barcelona will be reduced. Connections to Salzburg, Sarajevo, Tirana, Toulouse, Jersey, Guernsey, Dresden, Bremen, Turin, Bilbao and Göteborg will be discontinued. These capacity adjustments will reduce the number of seat kilometres on offer on European flights from Zurich by 12%.

Basel
In Basel, capacity adjustments will be made to a total of 18 destinations. There will be a reduction in frequencies on the routes to Hamburg, Berlin Tempelhof, Vienna, Brussels, Amsterdam, Bern and Geneva. Connections to Stockholm, Helsinki, Copenhagen, Stuttgart, Bordeaux, Marseilles, Palma de Mallorca, Florence, Toulouse, Bilbao and Seville are to be discontinued.

This will reduce the number of seat kilometres offered on European flights from Basel by 31%. There will be no transfer of destinations from Basel to Zurich. These measures are motivated purely by economic considerations rather than by any regional or political factors. The January load factor on flights from the EuroAirport in Basel was just 35%.

Geneva
In Geneva, capacity adjustments will affect six destinations. Connections to Rome will be increased, but there will be a reduction in frequencies on the Basel and Lugano routes. Connections to Alicante, Seville and Berlin are to be discontinued.
The number of seat kilometres on offer will therefore be reduced by 11%.

Bern and Lugano
Lugano will get its long-awaited early morning flight to Zurich, but the midday flight to Geneva will be cancelled. In the future there will only be one day-round-trip connection between Bern and the EuroAirport in Basel. SWISS has, however, given an undertaking to the government in Bern to make an active contribution to finding ways of connecting Bern to the Zurich hub more efficiently. The flight to Paris, whose withdrawal has already been announced, is not part of the SWISS strategy. There are too few local passengers on this route and SWISS prefers to have the long-haul passengers on its own network.


Job cuts

Up to 700 jobs will be affected: around 200 amongst cockpit crews, 200 amongst cabin crews and 300 amongst managers and ground staff. SWISS will work in consultation with the unions to find the best possible solutions. It is likely that the necessary reduction in cabin staff can be achieved via natural fluctuation alone.


Outlook

The prolonged slump in the economy and the serious difficulties in the international aviation industry mean that SWISS will not achieve its goal of breaking even in 2003. Given the uncertainty of future developments, no forecast of this year's results can be given for the time being.
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Old 26th Feb 2003, 13:24
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Swiss.

Swiss has announced that they are to fire another 700 employees, 400 pilots + 300 ground staff and selling 20
airplanes.
Anyone know what aircrafts they are getting rid off ?
Is it Cross Air who is taking the beating ?
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Old 26th Feb 2003, 13:37
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They said in the newspaper:
1 A321, 2 MD80, 17 fifty seaters. Will probably be the Saab2000. If I'm not mistaken, they are still getting more Embreas so it wouldnt make much sense getting rid of those. But then again, nothing really makes sense at swiss!!
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Old 26th Feb 2003, 14:02
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It is confirmed that 1 A321, 2 MD83 and 17 Saab 2000 will be withdrawn.
-200 pilots, 200 cabin crew and 300 ground staff will have to leave.
-11 destinations from both Zurich and Basel will be closed for the next Summer season.

There will be 106 aircraft total left in the fleet.

The load factor for January from/to Basel was only of 35% !

My guess is that the BSL hub will disappear within one year or two...
Any comment?

FLEXJET
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Old 26th Feb 2003, 14:48
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The gruesome truth......

News from the horses mouth, or at least I think that's the end from which the information emerges, can be found here.

Blick, Switzerland's German language daily, journalistically equivalent to The Sun in the UK, is reporting 1 Airbus 321, 2 MD83's, 12 Saab 2000 and 5 Embraer 145. No mention of the Avro RJ's widely expected to be part of this current cull, expected to be reflected in the summer schedule, set to commence March 31.

Grim news indeed. Best wishes to all.

yes.
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Old 26th Feb 2003, 15:22
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Exclamation double thread

Tibesti,

EFCOP has another thread on this further down the page - maybe we should merge?

Dreadful news. Things go from bad to worse. If only the disasterous and criminal Swissair management had had the guts and nouse to take this kind of action four or even three years ago, things may yet have been saved.

Looks as if the original culprits from SR management are being called to book - if they don't abscond to Brazil in the meantime...
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Old 26th Feb 2003, 18:13
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Swiss

The downsizing now being announced is not entirely unexpected, unfortunately. Swiss is Crossair, given a new name and a new mission (National Airline with a lot of tax-bucks). When it was called into being last April, the government poured the money in to save Swissair jobs, while Swissair got another billion from the taxpayer such as to let it go down the drain in an orderly manner. Fair enough. But in order to transplant as many jobs as possible from Swissair into Crossair/Swiss, the airline was overdimensioned by such a margin that it will not fit into any alliance network, not to mention One World. The major pilot union, Swiss Pilots, saw it coming: Another 860 pilots simply were not neded. Warnings were issued to government and the company, yet the managment kept insisting it was doing the right thing. Sand was thrown into the investors (speak: taxpayers) eye, to create the fait accompli we have today.
Now, as Swissair is effectively cloned and recreated, they go about trying to get rid of everything carrying the faintest whiff of Crossair. That includes the pilots. Already in April 2002, the new pilots joining from bankrupt Swissair simply denied signing the existing collective contract, although they were invited to propose adaptations as seen fit, effectively blackmailing the management and the governement into fulfilling all their wishes to remain a separate group and call the shots in their new home, Swiss (née Crossair). Management and the Swissair pilots together then tried to arm twist the (incumbent) larger pilot body to sign a new contract, effectively robbing them of seniority, salary and making them the full risk beares for lay-offs effectively downranking them into second class. That was not accepted, of course, triggering a string of lawsuits and ugly standoffs in the media, continuing to the day. The result is two totally separate pilot groups.

So while today's redimensioning of the airline as such is one thing that is widely accepted, who will have to go is an altogether different matter. The Swissair pilots only joined in April and officially work for an expanded and rebranded Crossair. If this was not so and Swiss would be declared the product of a Crossair-Swissair merger, the French, the Belgian, the Portuguese and the German governemnt, as well as the many holders of small stakes who lost all their money in the Swissair fiasco would be on the backs of today's Swiss managers. So that's the official version, we're a new company. In house, it's quite different: One is told that this really is a merger where Swissair exercises all their rights, but, pssst, don't tell: walls have ears and the sword of damocles hangs over you in the shape of 18 billion in debt. The way the Swissair pilots behave followes this logic. The way this new airline outfit was created borders on being outright criminal. And now comes the downsizing. Guess who should pack up and go? Those who joined last? No, chums, you guessed it, the others. Those who, in the mean time, have been re-invented by Swissair as the second class “regionals” (With "regional" destinations like Kenya, India, north Africa and Iceland). With the taxpayers money, Swissair is given a new home and the "natives" are bootet out. You can imagine what sort of unrest and infighting this will spark. I cannot find a better example of how downright destructive and arrogant a cult of elitist pilots can be, endangering the very lifeboat they have been given with all it’s occupants.

What a shame.

Last edited by pointseveneight; 26th Feb 2003 at 18:23.
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Old 26th Feb 2003, 18:35
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Grüezi!

Which 200 SWISS drivers will be the first to go?

Well, surely after any "social and solidarity measures" such as early retirement, unpaid leave, contract out, reduced contracts, salary sacrifice, dismissal due to biased screenings, forced deportation of non-EU foreigners with standard unlimited contracts etc etc, the layoffs will occur by the industry standard of "last on first off"?

Not exactly. One would expect that the ex-Crossair drivers would be relatively safe despite their regional fleet being cut drastically. They were after all established and operating in the then Crossair(name change to SWISS July 2002) which took on around 880 would be unemployed ex-Swissair drivers 31 March 2002. These new kids on the block(albeit Airbus and MD 11 experienced) showed their gratitude and graciousness, with the help of a subserviant management, to negotiate a new "World's Best Practice" and "Industry Standard" seniority list which put most of the ex-Swissair drivers ahead of the ex-Crossair drivers. SWISS - So What Its Still Swissair!

The seniority issue is the subject of litigation before the Swiss Courts and a final non-appealable decision is expected not before May 2003. The previous Court which looked at this issue found in mid 2002 that a "discrimination" against the ex-Crossair pilots was made. Management's response was to ignore this decision and hence this latest litigation by SWISS Pilots(ex-Crossair pilots association).

Will SWISS management give 3 month notices to ex-Crossair drivers before that Court decision is handed down? Having done their best to delay this latest Court decision, management may well proceed with dismissals and attempt to pre-empt any subsequent Court decision.

Yes, the reductions are most unfortunate and terrible for those affected. However a massive reduction in capacity had to occur and was totally predicted and foreseen with the over-bloated, over-optimistic and unrealistic Business Plan which used Crossair to save a Swiss airline industry. Stay tuned for further cuts not including any possible Iraq Conflict reductions. Will the overseers and implementers of this debacle: Chairman Bouw(ex-KLM) and CEO Dose help in this latest round of cost cutting by showing their solidarity and joining the list of 700 retrenched SWISS staff? A current share price of 6 Sfr compared to 56 Sfr in late 2001 when the expansion and re-capitalisation was commenced, together with continuing losses in 2003 will probably not help their job security.

Tschüss!
 
Old 26th Feb 2003, 19:59
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PECS, Very much the truth !

Grussi !
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Old 27th Feb 2003, 08:12
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It's the ex-SR overhead costs wich are making the regional routes unprofitable. Imagine that Crossair had 2800 employees for 80 aircraft and Swiss has 11500 employees for 131 aircraft.

I know that part of the now skipped routes had a bad SLF but some of them are always very full (eg. Salzburg or Jersey).

The above comments from PECS and pointseveneight are factual and corrects. The Studi-dude again shows his ignorant and foolish-naive attitude. Clearly a guy with some knowledge but who misses the picture completely.
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Old 27th Feb 2003, 08:21
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The last post by studi is typical of the prevailing Swissair arrogance. Others endulge in "pathos" while we (Swissair) tell you the facts. No way, buddy. Your big picture might just be your own:

"A main part of Crossair used to be the connecting network for Swissair longhaul. There were even strong rumours that CRX only made money in wet lease flights for SR, but I guess only CRX network managers knew exactly".


That was 20% of the Crossair fleet, to be exact. The whole of the 100 seat segment was outsourced by the SAirGroup from Swissair to Crossair, because Swissair could not make any money at all on those flights. As far as rumours go, it is also a strong held belief, that SAirGroup and Swissair at that time only worked, because Crossair was contributing what it did.


"CRX was not treated accordingly. Network reductions didn't take place. So the Swiss regional network still had the size to suit old SR longhaul network, therefore it was way too big. This oversize is now corrected".


The rest of the Crossair network was point to point flights, charters and an own hub in Basle. As Swissair collapsed and Swiss was built up, the Basle hub was shut down as traffic now concentrated in routing through the Zurich hub. On top of that, add another 27 short haul Swissair Airbusses and, of course, you are then left with too many airplanes. Nobody is contesting this. And the long haul fleet is a separarate story anyway: The fleet was inflated by the failed Hunter Strategy. Today, even with the 27 planes left over, it is way oversized and is draining money in big tubes out of the company. That's were the resizing should take place first.

"I feel sorry for every dismissed pilot, but please don't whine about elitist SR pilots, they paid their price already in 2001, now it's up to you because your network is affected".


The price mentioned consisted of retiring older pilots who already had their coffers (speak pensions) filled with millions. Of those laid off, 3/4 are back in a job and the rest got a job in Swiss. On top of that, the Swissair pilots (also those who have a job in Swiss today) pulled nearly 130 Mio out of liquidated Swissair in salary demands, while a booted baggage handler doesen't know how to feed his kids. Has Crossair been liquidated, did any Crossair pilot get anything in that manner? No, because Swiss is Crossair. It's very interesting to note that in good times, the Swissair pilots never wanted to close ranks between the pilot groups, although the benefits would have been huge. In a slight alteration of the saying "if you can't beat them, join them", the Swissair pilots used "if you can't beat them, try harder and use a club". In good times, the Crossair "colleagues" were kept out, but now as the times are not so rosy, you want them to contribute equally for the errors of Swissair. That's cynical.
So don't be surprised if you're not exactly loved.
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Old 27th Feb 2003, 08:50
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M.78 and pecs: EXCELLENT!!!!

If the link to www.swissinfo.ch, look for Swissair,will give some more insight to the previous SR group mismanagement, the Belgium government and Ernest &Young report, then maybe you WILL find the responsible people in other countries, hiding...
Now comes the time where Zurich airport is not making money anymore due to less traffic. So change all connections to Zurich and therefore you find the loadfactor out of Basel at 35%. Listen to passengers complain they have to get to ZRH to get a Swiss flight to Munich, but Lufthansa flies out of Basel, where is the Swiss flight that used to be 4 times daily?
Take the managers responsible for their deeds, to court and make them return their money to the taxpayer!!!!


"The above comments from PECS and pointseveneight are factual and corrects. The Studi-dude AGAIN shows his ignorant and foolish-naive attitude. Clearly a guy with some knowledge but who misses the picture completely."

"Looks as if the original culprits from SR management are being called to book - if they don't abscond to Brazil in the meantime..."


When the point was made at a meeting with management about the size of the bussiness plan and taking so many pilots, counter arguments was made iro everything is right. And now, must the Iraqi problem be the scapegoat???????
No wonder Mr M. Suter said there is something seriously wrong in his last address to the company, and there is nepotism......
The unjust situation will continue...
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Old 27th Feb 2003, 11:44
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Exclamation

I think that when Moritz Suter was put in charge of the Swissair group and had a look at the balances, he couldn't get out of there fast enough.

A shame that he and many others didn't take the trouble to inform themselves what was really happening to the company in their charge a whole lot earlier.

As to the pilot quarrel - why was Crossair profitable - the darling of all and the recipient of the MD-80 fleet? Because, in a Swiss kind of way, they were low cost - including much lower - some would say bread line salaries. The pilots took the terms available, or they wouldn't have joined. Swissair came from the annals of aviation history as a prestigious airline with well paid staff.

Try to integrate a high cost luxury line with a low cost local airline and you get a mess, unless you can get a good compromise. Of course everyone thinks he has compromised enough. The atmosphere between the ex SR and ex LX pilots has deteriorated to the level you can read on this page and worse. There used to be professional respect between the separate airlines - and not a little sympathy from the Swisssair pilots, for the Crossair pilots on lower salaries. Efforts were undertaken way back, at union level, to define an integrated pilot career model, where all pilots would pass through Crossair and Swissair and things would be fair for all. These efforts were always sidelined - sometimes by the Swissair/Crossair management and sometimes by the two pilot unions themselves but the basic goodwill was there.

Now, when this model could have been re-activated, the pilots are at each others' throats - everything is duplicated in middle management, with two fleets - two airlines in effect and the scene is set for disaster. Add a layoff scenario and a dash of fear and you get the picture.

Labeling one block of pilots arrogant and the others dumb won't help. You may all be flying for easyJet one day...
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Old 27th Feb 2003, 16:51
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Surprised no one commented on this before. Might be a tad outdated, but talk about elitist! I fly corporate, so I was even more insulted! With the upcoming lay-offs it will no doubt be revisited.

A board member of Aeropers (ex-Swissair pilots union) writes in an article printed in the union newsletter of September or October 2002…..(it’s a very long winded article, find it here

http://www.aeropers.ch/PDFDateien/ARS_5_2002.pdf (under Gleiche Arbeit, Gleicher Lohn? Same salary for the same work?)

and I won’t translate it all) defending the position to pay ex-Crossair pilots less than ex-Swissair pilots, even for longer routes……

“….For most it is logical, that a hospital Chief of Staff will earn more than a resident doctor, a university professor more than a primary school teacher and the editor of a national newspaper more than a local reporter. Also, in sports, no one questions the lower salary of the centre at Winterthur FC (small-town Swiss football team) compared to a Ronaldo. Not everyone managing a few people can be the CEO of a corporation…..”

“Pilot does not equal pilot”…

…“Differences between the two pilot groups at Swiss are based on measurable qualities such as selection, qualification, training and experience, qualities central to other careers, that determine salary”….

…”a candidate at Swissair only qualified if, besides a minimal education (Matura or technical college and 3 languages), he also possessed the profile of a future long haul captain”…..
…”the majority of the rejected candidates went off to Basel to join Crossair”…

…”after careful selection the candidates attended 1 ½ years of pilot training. Combined with constant further education (Simulator, CRM, etc.) and constant screening, a homogenous pilot corps of high standards was developed” …..

…”at Crossair it was generally sufficient to have a valid pilot’s license, that had been obtained somewhere(!!!). Additional requirements were waived when the demand for pilots was high. Even German or strong English language was often not required. Training consisted of a ‘Schnellbleiche’ (?) of a couple of exercises in the Simulator…….This may explain the fact that the selection to a Swissair cockpit, that was attempted by the majority of ex-Crossair pilots, was unsuccessful.”…

3 more pages to go, going on and on about flying over the Atlantic, navigating around Tornadoes and Monsoons, dealing with culturally different ground personnel in Africa and Asia, aircraft size and cross-qualified airbus pilots, higher productivity….. but I am feeling sick again…..anyone else have a translated version?

I thought my first post after lurking for years would be in Jetblast….well maybe that’s where this belongs….
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Old 1st Mar 2003, 11:18
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NO.1
Very interesting article. Any response to this article from ex-crossair pilots.
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