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Parliament Approves Swissair Rescue

Mon Nov 19, 2001 2:55 pm

Parliament approves Swissair rescue
From AFP in Bern
18nov01


A MASSIX injection of state aid to rescue the surviving elements of Switzerland's bankrupt national airline has been approved by the country's parliament.

The upper chamber, or States Council, gave its agreement to the package of 2.1 billion Swiss francs ($2.4 billion).
Around 600 million Swiss francs of the government cash will be invested in an expanded version of Crossair, the failed Swissair group's former European regional subsidiary.

But the lion's share will be used to keep some of the former Swissair's intercontinental flights aloft until they can be taken over by Crossair in March 2002.

The lower house had already given its approval to the rescue package yesterday.

Swiss authorities had warned that up to 70,000 jobs in the Swissair Group would have been in jeopardy without the package.

The money is in addition to an earlier injection of 450 million Swiss francs made to keep Swissair's operations going in the immediate aftermath of its filing for bankruptcy on October 4.

But the parliament rejected proposals by the Socialist and Green parties for the state to finance a welfare package for Swissair employees made redundant following the group's demise.

Swissair Group unions will decide on Monday whether to take strike action in support of a bid to obtain 200 million Swiss francs in aid to help the 4600 sacked workers and provide for early retirement.


© 2001 Herald and Weekly Times
 
gerardo
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RE: Parliament Approves Swissair Rescue

Mon Nov 19, 2001 5:11 pm

Small detail, the article says:
The upper chamber, or States Council, gave its agreement to the package of 2.1 billion Swiss francs ($2.4 billion).

1.6 Swiss Francs ~ 1 US$
so
2.1 billion Swiss Francs can't be US$2.4.

Gerardo
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United Airline
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RE: Parliament Approves Swissair Rescue

Mon Nov 19, 2001 6:36 pm

You are right. There must be an error.

Swissair will be saved..... But will they keep the name 'Swissair'?
 
gerardo
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RE: Parliament Approves Swissair Rescue

Mon Nov 19, 2001 11:54 pm

For the moment, the company will keep the name "Crossair". The question of brands will then be the next step. The brand Swissair could disappear after the winter timetable.

Gerardo
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gaut
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 2:49 am

And what about the European Parliament? I doubt they'll approved that !

Gaut
«Horum omnium fortissimi sunt Belgae.»
 
SR3496
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 3:04 am

Gaut:
The European Parliament has nothing to say about that at the moment! Switzerland is not in the EU and the bilateral agreements are not ratified...not yet.

Anywayz, we had this discussion already here on airliners.net. Use the search function if you're interested.
 
gaut
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 3:16 am

Tkx SR3496 I know switzerland is not in EU (I'm not so stupid) But as you know both parties (and maybe Switzerland more than EU) want to see those agreements signed (ratified = € Big grin. If Switzerland want to make business with EU they have to accept the rules. (my opinion).
But I 'll search this topic

Gaut
«Horum omnium fortissimi sunt Belgae.»
 
Bicoastal
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 3:31 am

This is a bad decision, as was the US government's decision to "compensate" its airlines for losses after September 11. Keep tax dollars out of private matters. I hope the EU withdraws any "special privileges" afforded to Swiss businesses as a result of this unfortunate decision by the Swiss government. Switzerland isn't a member of the EU but it is still very much dependent. European airlines need to go through this painful restructuring and merging in order to grow and prosper in the long run. Government intervention is simply delaying the inevitable.
Airliners.net has many forums. It has spell check and search functions. Use them before posting!
 
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yyz717
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 3:41 am

This is ridiculous. Why are the Swiss taxpayers being asked to bail out what should be a private company? I agree with Bicoastal.....hopefully the EU will place some operating sanctions on this move.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
gerardo
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 6:19 am

Normally I would agree with you, but in this case I see the following reasons, why Swiss parliament should help Swissair:
- Other airlines are getting much $$$ after Sept. 11, as for example the US airlines.

- If SR doesn't get this money, costs would be higher due to something around 50'000 jobless people

- Who else should provide air transport out of ZRH?

My personal opinions

Gerardo
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Bicoastal
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 8:46 am

Gerardo,

Just as in Brussels, where there is a void, other more efficient and stronger airlines will fill it. Zurich will be served if Swissair folds. Notice how quickly competitors increased capacity to and from Zurich when Swissair stopped flying for a few days last month. Companies should not become welfare work programs. Many of those 50,000 people will be absorbed by the expansion of the stronger, profitable airlines or they'll move on to other jobs. Sure, it may be painful in the short term, but eventually they'll find work. I've been the victim of a company going out of business, but I turned around and worked hard to find a new job. I NEVER expected the government to prop up my old employer just to keep my colleagues and me employed.
Airliners.net has many forums. It has spell check and search functions. Use them before posting!
 
donder10
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 8:52 am

Bicoastal,
that is where US and European opinion tends to differ.Europe is in general much more left wing than the US.
 
prebennorholm
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 9:00 am

We shall let the Swiss people decide on this matter. They have the right to do so.

And we must keep in mind that when Swissair folds, then it is not the same as when for instance one US airline folds, and the other companies quickly pick up the market - and much of the emproyees.

A folding Swissair is for Switzerland the same as if ALL US airlines fold at the same time.
Always keep your number of landings equal to your number of take-offs
 
Bicoastal
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 10:06 am

No, it's not like the US. It's like when Belgium's carrier folded. Brussels is still be served well. Not every country needs their own airline. Yes the Swiss people have the right to decide, but no country is an island in our global economy. Switzerland isn't a member of EU, but Swissair shouldn't be given an unfair compeititve advantage (government subsidies) over other European and global airlines. I hope the EU and other countries retaliate.
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charliecossie
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RE: Parliament Approves Swissair Rescue

Tue Nov 20, 2001 10:14 am

I may be wrong here and I've no doubt I'll be corrected if I am but isn't Swissair classed as an EU airline by the EU? i.e. no need for bilateral agreements, etc.
If so, then surely the Swiss government has to play by the EU rules.
 
gibberish
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RE: Parliament Approves Swissair Rescue

Wed Nov 21, 2001 3:04 am

Cossie: Swissair only counts as a EU airline when the agreement is signed.

Biocostal: They can go fuss about it all they want, they won't succeed!

Sorry guys, as much as you hate it happening, Swissair will be supported by its government. And thats a good thing.

gibberish
 
gerardo
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RE: Parliament Approves Swissair Rescue

Wed Nov 21, 2001 3:17 am

Charliecossie, Swissair will become all EU-rights (i.e. the different freedoms) within the next few years. So far, it doesn't count as EU airline.

BTW, almost any European airline became some financial helps during the last few years, when Swissair was already on their own. Remember Air France in 1997, or Alitalia, Iberia and certyinly some others. So, EU might after all say "don't let it happen again".

Just a detail: if Switzerland doesn't have a flag carrier anymore, then the service from and to Switzerland will not be as good anymore. There will be for sure much feeder traffic thru other hubs. Not all of the 50'000 people without a job will fins a new job.

Compare it with BRU after SN's end. BRU doesn't have the same number of direct flights anymore.

And as I said, other airlines are getting financial help right now, after Sep 11. Why not Swissair?

Gerardo
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