Topic Author
Posts: 24
Joined: Wed Jun 02, 1999 3:05 pm

Which Strategy For SAirGroup?

Wed Jan 24, 2001 9:36 pm

Yesterday, Philipp Bruggisser, CEO of the Swiss SAirGroup, left his company and opened the doors for a new strategy of the Swiss carrier Swissair. Now the question is, which strategy would it be?

In my opinion there are two possibilities:

1. Swissair becomes member of "oneworld"
A lot of facts speak for that: Swissair has codesharing partnerships with
some mebers of this alliance. For example American, Cathay Pacific, Iberia, Finnair, Aer Lingus.
The new CEO of SAirGroup, Erich Honegger, always intended to get his
company into this alliance.
2. Swissair stays in his actual alliance "Qualiflyer" but reduces its financial participations in some carriers. Financial participations in carriers like
LTU, AOM, TAP and so were a big financial loss for the Swiss carrier, In future they will be more careful with their participations.

What do you think about? What's your opinion about the new strategy of one of the best carriers in the world?
I think one thing is very sure: times of big participations are over! They have learnt! Goodbye Mr. Bruggisser..
Posts: 411
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RE: Which Strategy For SAirGroup?

Wed Jan 24, 2001 10:53 pm

I tend for #1. See other posts regarding this topic for my point of view.

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RE: Which Strategy For SAirGroup?

Wed Jan 24, 2001 10:58 pm

The are not yet through. Bruggisser was not the only one who messed everything up. In my opinion they should also fire the rest of the management.

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RE: Which Strategy For SAirGroup?

Thu Jan 25, 2001 1:24 am

I see SAirgroup joining Oneworld with its subsidiaries Swissair, Crossair, Sabena and probably LOT. They won't buy any stakes in TAP and sell their French and Italian airlines.
At the moment Oneworld is not very strong in the center of Europe. Swissair would be a good partner there.

SAirGroup (incl Swissair, Sabena, Crossair, perhaps LOT)
South African (SAir has 20%)
Lan Chile

This would be a very strong and geographically well balanced compeditor to Star Alliance.
The Ticketor
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RE: Which Strategy For SAirGroup?

Thu Jan 25, 2001 1:36 am

As a oneworld member employee, I would warmly welcome SR to our alliance. SR, and SAirGroup, have had their problems, but SR has a very good image in the world, and would make a fine addition to our alliance. I hope your guesses are correct!
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RE: Which Strategy For SAirGroup?

Thu Jan 25, 2001 1:51 am

I definately see them in the Oneworld alliance! They could also relieve LHR a bit and they already have antitrust immunity with AA, not like BA.
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RE: Which Strategy For SAirGroup?

Thu Jan 25, 2001 2:00 am

This is the problem. SR has the antitrust immunity, but BA doesn't. So how should the USA be induces to give the antitrust to this huge alliance in Europe (BA, IB, AY, SR, SN,...) together with AA?
They just do not have any cause to do this. So I still think NOway BA/AA. And this means NOway Swissair into Oneworld. Or only SR in Oneworld without BA. (I know this is very very unrealistic...)
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RE: Which Strategy For SAirGroup?

Thu Jan 25, 2001 11:42 am

SR3496, you do have a point there, but STAR also has a HUGE european presence as well, and it is unfair for Oneworld not being able to take over the lead because of laws permitting them to be able to. STAR also has double coverage pretty much everywhere, so STAR also isn't that innocent.
I strongly believe #1 out of the choices will happen. This has also been speculated a lot as well.
The funny part about the airlines in the "new Oneworld" by ZRH, is that none of them really compete with each other too much, that is will be good then as more destinations will be covered with high quality airlines. LOT and SAA really give Oneworld a huge advantage in their respective markets, as no other alliance has coverage there, that will be a big advantage. I doubt Crossair will join, as American Eagle hasn't(and probably won't because they are AA's subsidiary and have all of AA's programs and everything.
Give me a break, I created this username when I was a kid...
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RE: Which Strategy For SAirGroup?

Fri Jan 26, 2001 1:42 am

although it´s a possibility, that SR could join oneworld, i don´t think that SAA would go the same way. ok, SR owns 20% of them, but their part-ownership contract maintains that SAA can chose an alliance on its own. anyway, regarding the current fuss about SR, it´s still a possibilty that they´d give up on SAA, which would eventually lead to some major problems for SAA (their privatisation, plan, financially weak...). however, SAA is believed to follow a policy of being independent, not entering any alliance.
in addition, i don´t think MAS would join oneworld. i´d say they go for skyteam or wings.

If only pure sweetness was offered, why's this bitter taste left in my mouth.
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RE: Which Strategy For SAirGroup?

Fri Jan 26, 2001 2:38 am

Oneworld officials say that Swissair would be a good addition to Oneworld. The reasons:

- Low presency in central Europe.

- a congested hub at LHR.

Swssair's contributions to Oneworld:

- Swissair offers a great product in central Europe (togethter with Crossair and Sabena).

- Swissair's ZRH hub would be optimal to relieve LHR on Longahaul routes (the airport is also being enlarged).

- Swissair's quality product will be added to Oneworld - which makes it more attractive for its customers.

- LOT would also be a fine addition (eastern Europe).

Swissair could also contribute in bringing Oneworld carriers closer together. As you can see, Swissair would perfectly fit into Oneworld and would not lose it's traffic to BA. BA would probably bring more traffic to SR and vice versa.
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Fri Jan 26, 2001 2:38 am

A couple of other SAA points:
- SAA dumped AA in favor of DL as its North American code-sharing partner a year or so ago - moving its MIA flights to ATL in the process.
- SAA and BA are fierce competitors - not just on the lucrative South Africa - LHR runs, but also on domestic South Africa flights. BA owns a significant portion of Comair which operates in the BA livery.
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RE: Which Strategy For SAirGroup?

Fri Jan 26, 2001 6:07 am

The New York Times on 01/24/01 mentioned that SR is evaluating possible mergers with AZ or AA. Obviously the word "merger" in association with AA caught my eye. I don't know if that implies SR joining oneworld or AA purchasing a stake (49%?) in SR.
My wife can't wrestle, but you should see her box.
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Joined: Mon Sep 11, 2000 5:35 pm

RE: Redraider

Fri Jan 26, 2001 6:19 am

Alitalia is definately out of question. And so is AA taking a 49% stake. Swissair is not for sale. SR joining Oneworld is much more likely.
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Joined: Sat May 06, 2000 8:21 pm

RE: Which Strategy For SAirGroup?

Fri Jan 26, 2001 6:23 am

Anybody could buy SAir, remember that. If AA comes tomorrow and give me 300$ for my share, I would sell it.
But I also have to agree with Gibberisch, the possibility is very low.

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