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Swiss Reached The Turnaround (article)  
User currently offlineZRH From Switzerland, joined Nov 1999, 5568 posts, RR: 36
Posted (8 years 6 months 2 weeks 2 days 16 hours ago) and read 4436 times:

In the today's NZZ am Sonntag (Zurich Sunday newspaper) there is an article about the turnaround of Swiss International Airlines ( http://www.nzz.ch/2006/03/19/wi/articleDMXX0.html ; in German).
In my opinion the article is reliable and interesting because this newspaper is known as very serious and usually quite critical of Swiss. I don't have time to translate the whole article, but here some points.
They say that Swiss:
-could stop the cash drain
-they are expanding again on routes to North and South America
-they are locking on the leasing market for two new long-haul planes for the next time-table 2006/07
-the first few months in 2006 were profitable
-the use of capacity and yield has improved in comparison to the last year
-the use of the fleet has been optimized (specifically short-haul)
-short-haul traffic probably will be profitable
-and some other points.
LH sees this with satisfaction. Swiss also has now again more than 50% of the passengers at Zurich-Airport and has with this regained shares of the market.

45 replies: All unread, showing first 25:
 
User currently offlineLegacy135 From Switzerland, joined May 2005, 1052 posts, RR: 26
Reply 1, posted (8 years 6 months 2 weeks 2 days 16 hours ago) and read 4390 times:

Real good news, lets hope, they get confirmed again over and over again. It would be rally good for the entire Swiss aviation, if our airline - even though being in foreign hands - comes back in the rows of the profitable and functional carriers.

I guess one of the next problems we will face in the Swiss aviation world, will be a shortage of pilots. Too many have been forced to look for new jobs. Many of them left aviation completely, other moved out of the country and joined other good companies. I can hardly believe that they will come back. So seeking experienced staff will sooner or later result in a problem.
But also for young copilots: The flight schools went down to a minimum, there is no more capacity around. The only good thing this aspect brings to us: Those having a job will have it for sure and salaries will start to raise again.

Cheers
Legacy135 Wink


User currently offlineHBIHLtoEZE From Switzerland, joined Aug 2004, 281 posts, RR: 2
Reply 2, posted (8 years 6 months 2 weeks 2 days 15 hours ago) and read 4374 times:

A new chapter has begun...

This really means something: How many times has NZZ already buried Swiss?

Hopefully, they (especially their friendly and hard-working) employees receive now more often what they earn: respect.

Cheers



Our battered suitcases were piled on the sidewalk again; we had longer ways to go. But no matter, the road is life.
User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 33
Reply 3, posted (8 years 6 months 2 weeks 2 days 15 hours ago) and read 4370 times:

Quoting ZRH (Thread starter):
-they are locking on the leasing market for two new long-haul planes for the next time-table 2006/07

Could be difficult to get 343/332 at a reasonable price, isn't it? Hope they don't consider other A300.



Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
User currently offlineZRH From Switzerland, joined Nov 1999, 5568 posts, RR: 36
Reply 4, posted (8 years 6 months 2 weeks 2 days 15 hours ago) and read 4344 times:

Quoting Swissgabe (Reply 3):
Could be difficult to get 343/332 at a reasonable price, isn't it? Hope they don't consider other A300

I agree, no other A 300. We could read that KLM is leasing another 332 with ILFC. Aren't there more around? Or too expensive?


User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 5, posted (8 years 6 months 2 weeks 2 days 15 hours ago) and read 4344 times:

Good news indeed ! The shortage of long-haul aircraft will become a major issue within the next two years for LX...
Zurich still faces a handicap with Unique ( too steep airport-charges ) to attract more airlines -which is good news for Swiss !
The airline must work on cementing their image as quality provider of in flight-services like in the past-many German customers love to fly swiss for that valid reason.For passengers in neighbouring countries a transit in ZUR is still a viable and cost-effective alternative to LH or Air France,although the latter is becoming quite aggressive in pricing.
But LH should provide rather sooner than later more metal to Swiss to boost it's capacity to re-build it's immage !!



Please respect animals - don't eat them...
User currently offlineFlying Belgian From Belgium, joined Jun 2001, 2392 posts, RR: 9
Reply 6, posted (8 years 6 months 2 weeks 2 days 15 hours ago) and read 4319 times:
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I was expecting those good news from LX, as we haven't heard many negative things about them for a while now.

But still, I would be very cautious about a long-haul expansion.

I assume that some good synergies have been made with LH too.


FB.



Life is great at 41.000 feet...
User currently offlineZRH From Switzerland, joined Nov 1999, 5568 posts, RR: 36
Reply 7, posted (8 years 6 months 2 weeks 2 days 15 hours ago) and read 4304 times:

Quoting Flying Belgian (Reply 6):
I assume that some good synergies have been made with LH too.

Yes this is for sure. And I think there will also be some good synergies from the membership in Star Alliance.

[Edited 2006-03-19 16:47:48]

User currently offlineKa From Switzerland, joined Apr 2000, 661 posts, RR: 10
Reply 8, posted (8 years 6 months 2 weeks 2 days 15 hours ago) and read 4304 times:

Is there any official word where the two ex-SN A332 will go to when LH takes them out of service in Sep/Oct?? Has TP been confirmed? I lost track somehow. They are still listed at though http://www.planemart.com .
With SN specifications and PW engines they would be quite suitable for LX..... Just my 2 cents.

Anyway it is great to hear that LX is doing better these days....

KA.



Keep smiling - you might be on Radar!
User currently offlineRJ100 From Switzerland, joined Nov 2000, 4119 posts, RR: 29
Reply 9, posted (8 years 6 months 2 weeks 2 days 14 hours ago) and read 4228 times:

Will be most interesting to see the full results that will be published next week.
For instance I wonder how their "real" flying business is doing and how much extra income they generate by selling aircraft (the whole Saab and the whole Embraer fleet).

Also, it will be interesting how they will behave in the Swiss markets in the future. They are very aggressive in ZRH at the moment, gaining back market shares and forcing competition out. Wonder if they have plans for comebacks in the other Swiss regions as well? Would be fair enough in my honest opinion.

Anyway, good news for employees (who truly deserve a bit of good news) and as a citizen of Basle I'm finally happy to see that the company will pay some taxes this year Big grin

RJ100



none
User currently offlineZRH From Switzerland, joined Nov 1999, 5568 posts, RR: 36
Reply 10, posted (8 years 6 months 2 weeks 2 days 14 hours ago) and read 4205 times:

Quoting RJ100 (Reply 9):
Wonder if they have plans for comebacks in the other Swiss regions as well? Would be fair enough in my honest opinion.

I hope and wish so, specifically when the short-haul flights really become profitable. I think they could reach synergies with LH and OS at GVA and BSL.


User currently offlineRJ100 From Switzerland, joined Nov 2000, 4119 posts, RR: 29
Reply 11, posted (8 years 6 months 2 weeks 2 days 13 hours ago) and read 4111 times:

They have only a chance to get back customers if they will- in the future- offer an honest product. Flight times which are ideal for business travelers. And they need to outsource (as once promised...) parts of their routes. On most routes the Avro is simply too large. Just look at the latest load factors out of BSL (LCY currently has SLFs of 30%-40%).

I am sure that Cirrus or other LH partner airlines are interested to take up such routes, which can be operated succesfully with 50- seaters. But there need to be a will of LX to do so. And they should try to offer better flying options from BSL via ZRH. LH is now just increasing MUC and FRA to five daily flights each so potential is definitely here.

For their longhaul part it is important to go daily on key routes since business travelers expect this.

As mentioned before, there will be a press conference next week but I believe it is mainly to present last year's results.



none
User currently offlineZRH From Switzerland, joined Nov 1999, 5568 posts, RR: 36
Reply 12, posted (8 years 6 months 2 weeks 2 days 12 hours ago) and read 4021 times:

Quoting RJ100 (Reply 11):
I am sure that Cirrus or other LH partner airlines are interested to take up such routes, which can be operated succesfully with 50- seaters. But there need to be a will of LX to do so. And they should try to offer better flying options from BSL via ZRH

I agree. When Swiss is not able to run 50 seaters economically they should let run these routes by other airlines. I think LH has enough affiliates for this purpus (like Cirrus).

Quoting RJ100 (Reply 11):
For their longhaul part it is important to go daily on key routes since business travelers expect this.

This is one of the main reasons that they are looking desperately for two new long-haul aircrafts and less the opening of new routes. Although flights to China are needed.


User currently offlineCV990 From , joined Dec 1969, posts, RR:
Reply 13, posted (8 years 6 months 2 weeks 2 days 11 hours ago) and read 3953 times:

Hi!

I must say that my expectations on the recovery on SWISS were not in vain....I was in the past much against the partnership with LH but at this time I must admit that probably it was the best for SWISS...has long that SWISS identity remains and the swiss spirit ok!!! I wait great things with SWISS in a near future!
Regards and congrats to SWISS!!!


User currently offlineRJ100 From Switzerland, joined Nov 2000, 4119 posts, RR: 29
Reply 14, posted (8 years 6 months 2 weeks 2 days 11 hours ago) and read 3931 times:

According to Mr. Mayrhuber China is a no go for Swiss in the coming years, although "economiesuisse" is demanding a service.

Good if the company improves but it's still a long way to go to stability. They need to generate cash in their daily flying business. They are under pressure in ZRH where Air Berlin is getting more and more aggressive and looks for direct competition. Their operation in BSL is somehow a mess which leaves them two choices: Either make a true comeback or leave completely. Strong competition also in GVA with not a single route without direct competition.

Remaining all the other factors (oil price, economic climate, health issues etc.). I would say they are out of the worst (that means not to lose millions every day) but there's no time to take a nap now.



none
User currently offlineNijltje From Belgium, joined Aug 2005, 241 posts, RR: 0
Reply 15, posted (8 years 6 months 2 weeks 2 days 10 hours ago) and read 3854 times:

@zrh is their such a huge need to china? Because China airlines has just chosen BRU to fly on and not ZRH

User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 16, posted (8 years 6 months 2 weeks 2 days 9 hours ago) and read 3839 times:

They'd rather focus on introducing more flights to Africa - much less competition,better yields and on the way from Germany via ZUR down south ....


Please respect animals - don't eat them...
User currently offlineZRH From Switzerland, joined Nov 1999, 5568 posts, RR: 36
Reply 17, posted (8 years 6 months 2 weeks 2 days 9 hours ago) and read 3825 times:

Quoting Nijltje (Reply 15):
@zrh is their such a huge need to china?

Actually there is huge business between Switzerland and specially Shanghai. I think a A 340 could easily be filled.


User currently offlineLegallykev From Canada, joined Jul 2005, 109 posts, RR: 0
Reply 18, posted (8 years 6 months 2 weeks 2 days 5 hours ago) and read 3685 times:

Any ideas on what new North american routes they may add?

User currently offlineSwissy From Switzerland, joined Jan 2005, 1734 posts, RR: 4
Reply 19, posted (8 years 6 months 2 weeks 2 days 3 hours ago) and read 3653 times:

Agree with you 100% ZRH, there is tremendous business going on with China

Cheers,  Smile


User currently offlineFLYACYYZ From Canada, joined Jan 2004, 1914 posts, RR: 12
Reply 20, posted (8 years 6 months 2 weeks 2 days 3 hours ago) and read 3649 times:

Surprised that they have had a very long hiatus on the YYZ-ZRH route. Swissair DC-10's always did well, but dropped the route years ago, codesharing with AC operating the YYZ flights, and SR operating the YMQ flights.


Above and Beyond
User currently offlineKLM685 From Mexico, joined May 2005, 1577 posts, RR: 19
Reply 21, posted (8 years 6 months 2 weeks 2 days ago) and read 3524 times:

Quoting ZRH" class=quote target=_blank>ZRH (Thread starter):
-they are expanding again on routes to North and South America

Really? It will be interesting if someone shed some light about where will they expand. The US is pretty 'well' covered, OTOH Latin America only has GRU in Swiss destinations.

Quoting ZRH" class=quote target=_blank>ZRH (Thread starter):
LH sees this with satisfaction. Swiss also has now again more than 50% of the passengers at Zurich-Airport and has with this regained shares of the market.

Good to know! I'm glad ZRH is starting to take a healthy position.

Quoting Nijltje (Reply 15):
@zrh is their such a huge need to china? Because China airlines has just chosen BRU to fly on and not ZRH

Well it all depends on which China you're talking about. But get your point anyway. IT would be good to see more asian carriers get in ZRH or even better to see Swiss @ China.

Cheers!

Alonso



KLM- The Best Airline in the World!
User currently offlineLTU932 From Germany, joined Jan 2006, 13864 posts, RR: 50
Reply 22, posted (8 years 6 months 2 weeks 2 days ago) and read 3461 times:

Quoting Ka (Reply 8):
With SN specifications and PW engines they would be quite suitable for LX..... Just my 2 cents.

They would not be quite suitable, they would be perfect! Those last two A332s LH is currently operating will definitely help LX to free up more A340s, which can fly the additional flight to NYC and maybe some other destinations in Asia, where they desperately need more A340s.


User currently offlineKnightsofmalta From Malta, joined Nov 2005, 1826 posts, RR: 19
Reply 23, posted (8 years 6 months 2 weeks 1 day 23 hours ago) and read 3249 times:

Quoting Legallykev (Reply 18):
Any ideas on what new North american routes they may add?

SWISS is not adding any new routes in North North America. With the additional aircraft, if they come, the primary goal is to be able to operate the medium- and long-haul network daily.


User currently offlineMEA-707 From Netherlands, joined Nov 1999, 4329 posts, RR: 35
Reply 24, posted (8 years 6 months 2 weeks 1 day 21 hours ago) and read 3026 times:

All this remembers me a bit of the KLM-Air France merger. Remember so many dutch here screamed murder a few years ago that they expect KLM to be shrunk as and repainted as 'Air France-pays bas' feeder for CDG and have flight attendant witches yell back in French if you address them in Dutch. And now see how well both KLM and Air France are benefiting from the take over and still keep their own identity. I guess the synergy effects with Lufthansa helps out for Swiss as well.
I hope Swiss will keep Darwin Air as feeder for more regional flights, like ZRH-Lugano and so on. I flew them and they have a great and elegant product, maybe their lower cost structure make they can operate the Saab 2000s economically while Swiss couldn't.



nobody has ever died from hard work, but why take the risk?
25 Magic48 : Swiss won't add any new routes to North America, agree, but they are going to add a second daily flight to JFK by May 1, operated by an A332. What ar
26 Post contains images Knightsofmalta : I think what he meant was 'not another', in which case I must say I couldn't agree more...
27 JoFMO : I wouldn't care if they introduce a A300 to the Middle East to free up another widebody.
28 ZRH : Actually they don't add a new destination, but as said, a second ZRH-JFK flight. To NYC they will have again four flights: twice a day ZRH-JFK and on
29 RCS763AV : Very nice! Some years ago, Belgium and Switzeralnd lost their two huge very elegant airlines. Its nice to see that LX is in the path of becoming that
30 RJ100 : There was a press conference in Basle this morning to present last year's full results. The airline lost 178 mio. CHF (140 mio. CHF in 2004), operatin
31 Post contains links FelixZRH : Here is a link to the press release: http://www.swiss.com/web/NS6/about-s...ress-releases-06.htm?&newsid=87781 I agree with you on that. But I am stil
32 Post contains images RJ100 : Agree, maybe they will break even this year. My doubts are that they broke even in quarter 1. Everyone (apart from the journalists it seems   ) know
33 RJ100 : And another interesting note: "Lufthansa wants to increase flights to and from EuroAirport Basel" Lufthansa wants to increase with its daughter Swiss
34 OyKIE : SAS tried to get one A330-200 for it's OSL-EWR route, but they could not find any. I guess LX will have the same difficulties.
35 RJ100 : Mr. Franz today said in an interview that they will not reach a profit this year. Profits can be expected earliest in 2008 but only if "we work very h
36 RJ100 : Oh and by the way, the unions are just letting us know that they expect better payment due to improved results of the company. Now that will be an int
37 ZRH : These are two interesting statements. Probably Mr Franz has to say this, if true or not, when you already hear the expectings of these unions. I alwa
38 RJ100 : I agree completely. Unfortunately the unions nowadays completely lost their original tasks (being a voice for the empoloyees when there was no social
39 HBDAN : Dear RJ100, could you please provide your source on this? I couldn't find any statement from Mr. Franz regarding BSL. Thanks a lot. Regards, HBDAN
40 RJ100 : First it was Lufthansa (!!) who said it in Frankfurt yesterday and Mr. Franz confirmed it towards Swiss TV later in an interview (I think it was in "S
41 ZRH : I actually read the same statement from Mr. Franz as RJ100, but unfortunately I don't know where. Probably on the SF DRS Teletext yesterday.
42 Post contains images HBDAN : Thanks guys, Haven't read newspaper yet, haven't seen TV yesterday evening! Regards, HBDAN
43 ZRH : Yes, probably this statement was in the "Tagesschau" or "10vor10" yesterday.
44 ME AVN FAN : sorry, in German : - Frankfurt. SDA/Reuters/AP/baz. Die Lufthansa will mit ihrer Tochter Swiss das Gesch�ft vom EuroAirport Basel aus wieder vers
45 RJ100 : What I can say is that Lufthansa currently has some "exclusive" contracts with some larger companies in the region. They are in direct contact with ea
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