SWISS starts 'Swiss Express'
May 1, 2003, 11:30 pm
#1
Original Member
Original Poster
Join Date: May 1998
Location: CH-3823 Wengen Switzerland
Programs: miles&more, MileagePlus
Posts: 27,041
SWISS starts 'Swiss Express'
from my swiss bank's newswire
looks, to me, like a 'rebirth' of former Crossair.
looks, to me, like a 'rebirth' of former Crossair.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2"> SWISS baut eigenständige Regionaltochter 'Swiss Express' auf
ZURICH Die Swiss International Air Lines AG gliedert ihren Regionalteil aus und baut diesen unter dem Namen "Swiss Express" als eigenständige Tochterfirma auf. Diese soll ab Winterflugplan 2003/04 operationell tätig sein, heisst es in einer Mitteilung im Vorfeld der für heute Mittag angesetzten Medienkonferenz.
Mit der neuen Gesellschaft reagiere die Swiss auf die neuen Marktbedingungen, um besonders im Europaverkehr kostengünstige Verbindungen anbieten zu können, heisst es weiter.
Andere Theman an der Medienkonferenz seien zusätzliche taktische und strategische Massnahmen, unter anderem Kostensenkungsmassnahmen im Personalbereich.
Die Liquidität belaufe sich Ende des ersten Quartals 2003 auf 861 Mio CHF und per Ende Jahr erwarte die Airline auch ohne neuen Betriebskredit und ohne zusätzliche Massnahmen eine Liquidität von rund 500 Mio CHF.
"Ein Grounding ist kein Thema", schreibt das nationale Flugunternehmen.</font>
ZURICH Die Swiss International Air Lines AG gliedert ihren Regionalteil aus und baut diesen unter dem Namen "Swiss Express" als eigenständige Tochterfirma auf. Diese soll ab Winterflugplan 2003/04 operationell tätig sein, heisst es in einer Mitteilung im Vorfeld der für heute Mittag angesetzten Medienkonferenz.
Mit der neuen Gesellschaft reagiere die Swiss auf die neuen Marktbedingungen, um besonders im Europaverkehr kostengünstige Verbindungen anbieten zu können, heisst es weiter.
Andere Theman an der Medienkonferenz seien zusätzliche taktische und strategische Massnahmen, unter anderem Kostensenkungsmassnahmen im Personalbereich.
Die Liquidität belaufe sich Ende des ersten Quartals 2003 auf 861 Mio CHF und per Ende Jahr erwarte die Airline auch ohne neuen Betriebskredit und ohne zusätzliche Massnahmen eine Liquidität von rund 500 Mio CHF.
"Ein Grounding ist kein Thema", schreibt das nationale Flugunternehmen.</font>
May 1, 2003, 11:49 pm
#2
Join Date: Dec 2000
Location: Nr. Zurich
Programs: LH SEN, IHG Platinum, Marriott Lifetime Gold
Posts: 1,610
I guess the scenario that is about to unfold sees all those pesky ex-Crossair flight deck crew being transferred "back" where they came from, i.e. the regional carrier at lower rates of pay than the ex-Swissair flight deck who will stay long-haul. I can't wait to hear the cry that will emanate from these "beleidigte Leberwuerstchen" when this happens....
[This message has been edited by Snoopy (edited 05-01-2003).]
[This message has been edited by Snoopy (edited 05-01-2003).]
May 2, 2003, 12:16 am
#3
Original Member
Original Poster
Join Date: May 1998
Location: CH-3823 Wengen Switzerland
Programs: miles&more, MileagePlus
Posts: 27,041
english version
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
'Swiss' to create low-cost European carrier, to be called 'Swiss Express'
ZURICH - Swiss International Air Lines Ltd said it will create a low cost European carrier called 'Swiss Express', by spinning off its regional operations into a separate entity.
"The action is being taken in response to new market conditions to offer low-cost air connections, especially within Europe," it said
'Swiss Express' will begin to operate with the start of the 2003/04 winter season.
Further cost cuts will also be announced at its news conference held in Basel at 12.00 pm today.
"Additional tactical and strategic options being taken by the airline, including cost economies on the personnel front" will be announced, the airline said.
'Swiss' had already been forced to scale back its activities back in February, when its fleet was cut by 20 planes and 700 jobs cut.
'Swiss' cashflow amounted to 861 mln sfr at the end of March and should be around 500 mln sfr by the year-end even without additional measures or credit facilities, it said.
"There is no question of the airline being grounded," it stressed.</font>
'Swiss' to create low-cost European carrier, to be called 'Swiss Express'
ZURICH - Swiss International Air Lines Ltd said it will create a low cost European carrier called 'Swiss Express', by spinning off its regional operations into a separate entity.
"The action is being taken in response to new market conditions to offer low-cost air connections, especially within Europe," it said
'Swiss Express' will begin to operate with the start of the 2003/04 winter season.
Further cost cuts will also be announced at its news conference held in Basel at 12.00 pm today.
"Additional tactical and strategic options being taken by the airline, including cost economies on the personnel front" will be announced, the airline said.
'Swiss' had already been forced to scale back its activities back in February, when its fleet was cut by 20 planes and 700 jobs cut.
'Swiss' cashflow amounted to 861 mln sfr at the end of March and should be around 500 mln sfr by the year-end even without additional measures or credit facilities, it said.
"There is no question of the airline being grounded," it stressed.</font>
May 2, 2003, 4:06 am
#4
Join Date: Mar 2003
Location: Lausanne, Switzerland
Programs: Miles & More FTL, Flying Blue Silver, SPG, HHonors, LHW LeadersClub
Posts: 245
02.05.2003
New regional subsidiary and reduction in personnel costs
The Swiss International Air Lines Board of Directors intends to spin off the airline’s regional operations into a separate subsidiary which will operate under the “SWISS Express” brand from the start of the 2003/04 winter timetable period. SWISS Express will offer a competitively-priced product that is carefully tailored to the regional air travel market by reducing the costs of these regional operations by some 20 per cent from their current levels. The action is being taken in response to new market conditions. Further savings are also planned in the company’s mainline business by reducing personnel costs in close collaboration with the unions. SWISS expects to see rising demand and load factors on its flights in the coming summer months. So any capacity modifications on the medium- and long-haul fronts will not be effected before the start of the 2003/04 winter schedules.
The SWISS Board of Directors and Executive Management have resolved a series of tactical and strategic measures to ensure the airline’s sustainable success. SWISS has already made extensive temporary adjustments to its schedules in view of the collapse in passenger volumes following the Iraq war and the outbreak of SARS, and has reduced its systemwide available seat-kilometre capacity by some six per cent. The airline has optimised its network for the high-revenue summer months, but is refraining from further network reductions in view of the higher load factors expected in this traditionally strong period. Any structural modifications required to the network and the aircraft fleet will thus be effected with the start of the 2003/04 winter timetable period.
SWISS basically intends to further pursue its current strategy of operating its own network. The company has the means and the basis to operate profitably once the temporary factors prompting the present industry crisis are removed. In doing so, SWISS will continue to provide Switzerland with its connections to the world airline network, thereby making a substantial contribution to the country’s further economic development.
SWISS also has sufficient liquidity, despite the sizable losses sustained in early 2003, and there is no question of the airline being grounded. Total liquidity amounted to CHF 861 million at the end of the first quarter of 2003; and the company expects to have liquidity of CHF 500 million by the end of the year, even without additional measures or new credit facilities.
SWISS Express for regional operations
The airline industry is in a state of flux. In view of this, SWISS is modifying its original business model to take account of the new market conditions. In Europe in particular, this means offering lower-cost connections. The SWISS Board of Directors has therefore resolved to create a separate subsidiary for its regional operations, to be known as SWISS Express.
The move is intended to provide a lean organisation whose costs are 20 per cent below those of the present airline. SWISS Express should commence its operation of niche and feeder flights for SWISS with the introduction of the 2003/04 winter schedules. In doing so, SWISS Express will act as an operator for SWISS.
The SWISS Express fleet is expected to consist of Saab 2000, Avro RJ 85/100, Embraer 145 and (later) the new Embraer 170 and 195 aircraft. The new company will be a fully-owned SWISS subsidiary with its own board of directors and executive management. A detailed business plan is being devised. The project is headed by Manfred Brennwald, SWISS Managing Director Operations. The new company’s CEO-designate is Björn Näf, currently Executive Vice President Product & Services at SWISS.
Reduction in personnel costs
SWISS is already on course to save CHF 600 million with its Target Turnaround results-enhancement programme, with CHF 500 million of these savings to be achieved in 2003. But with revenues from flight operations expected to fall further in the foreseeable future while non-influenceable costs are likely to rise, the current erosion of bottom-line results can only be averted through an additional reduction in production costs. Further savings in personnel costs are therefore essential. The aim here is to effect a 10-per-cent reduction in the CHF 1 billion in total salary costs budgeted for 2003. This can only be achieved, however, in close collaboration with the unions. SWISS’s top management are setting an example here, agreeing to voluntarily reduce their own salaries by 14 per cent with immediate effect.
Source : http://www.swiss.com/index/sw-nw-pr-...m?newsid=22041
New regional subsidiary and reduction in personnel costs
The Swiss International Air Lines Board of Directors intends to spin off the airline’s regional operations into a separate subsidiary which will operate under the “SWISS Express” brand from the start of the 2003/04 winter timetable period. SWISS Express will offer a competitively-priced product that is carefully tailored to the regional air travel market by reducing the costs of these regional operations by some 20 per cent from their current levels. The action is being taken in response to new market conditions. Further savings are also planned in the company’s mainline business by reducing personnel costs in close collaboration with the unions. SWISS expects to see rising demand and load factors on its flights in the coming summer months. So any capacity modifications on the medium- and long-haul fronts will not be effected before the start of the 2003/04 winter schedules.
The SWISS Board of Directors and Executive Management have resolved a series of tactical and strategic measures to ensure the airline’s sustainable success. SWISS has already made extensive temporary adjustments to its schedules in view of the collapse in passenger volumes following the Iraq war and the outbreak of SARS, and has reduced its systemwide available seat-kilometre capacity by some six per cent. The airline has optimised its network for the high-revenue summer months, but is refraining from further network reductions in view of the higher load factors expected in this traditionally strong period. Any structural modifications required to the network and the aircraft fleet will thus be effected with the start of the 2003/04 winter timetable period.
SWISS basically intends to further pursue its current strategy of operating its own network. The company has the means and the basis to operate profitably once the temporary factors prompting the present industry crisis are removed. In doing so, SWISS will continue to provide Switzerland with its connections to the world airline network, thereby making a substantial contribution to the country’s further economic development.
SWISS also has sufficient liquidity, despite the sizable losses sustained in early 2003, and there is no question of the airline being grounded. Total liquidity amounted to CHF 861 million at the end of the first quarter of 2003; and the company expects to have liquidity of CHF 500 million by the end of the year, even without additional measures or new credit facilities.
SWISS Express for regional operations
The airline industry is in a state of flux. In view of this, SWISS is modifying its original business model to take account of the new market conditions. In Europe in particular, this means offering lower-cost connections. The SWISS Board of Directors has therefore resolved to create a separate subsidiary for its regional operations, to be known as SWISS Express.
The move is intended to provide a lean organisation whose costs are 20 per cent below those of the present airline. SWISS Express should commence its operation of niche and feeder flights for SWISS with the introduction of the 2003/04 winter schedules. In doing so, SWISS Express will act as an operator for SWISS.
The SWISS Express fleet is expected to consist of Saab 2000, Avro RJ 85/100, Embraer 145 and (later) the new Embraer 170 and 195 aircraft. The new company will be a fully-owned SWISS subsidiary with its own board of directors and executive management. A detailed business plan is being devised. The project is headed by Manfred Brennwald, SWISS Managing Director Operations. The new company’s CEO-designate is Björn Näf, currently Executive Vice President Product & Services at SWISS.
Reduction in personnel costs
SWISS is already on course to save CHF 600 million with its Target Turnaround results-enhancement programme, with CHF 500 million of these savings to be achieved in 2003. But with revenues from flight operations expected to fall further in the foreseeable future while non-influenceable costs are likely to rise, the current erosion of bottom-line results can only be averted through an additional reduction in production costs. Further savings in personnel costs are therefore essential. The aim here is to effect a 10-per-cent reduction in the CHF 1 billion in total salary costs budgeted for 2003. This can only be achieved, however, in close collaboration with the unions. SWISS’s top management are setting an example here, agreeing to voluntarily reduce their own salaries by 14 per cent with immediate effect.
Source : http://www.swiss.com/index/sw-nw-pr-...m?newsid=22041
May 2, 2003, 5:37 am
#5
Join Date: Jun 2002
Location: EU
Posts: 210
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Snoopy:
I guess the scenario that is about to unfold sees all those pesky ex-Crossair flight deck crew being transferred "back" where they came from, i.e. the regional carrier at lower rates of pay than the ex-Swissair flight deck who will stay long-haul. I can't wait to hear the cry that will emanate from these "beleidigte Leberwuerstchen" when this happens....
[This message has been edited by Snoopy (edited 05-01-2003).]</font>
I guess the scenario that is about to unfold sees all those pesky ex-Crossair flight deck crew being transferred "back" where they came from, i.e. the regional carrier at lower rates of pay than the ex-Swissair flight deck who will stay long-haul. I can't wait to hear the cry that will emanate from these "beleidigte Leberwuerstchen" when this happens....
[This message has been edited by Snoopy (edited 05-01-2003).]</font>
May 2, 2003, 1:10 pm
#6
Join Date: Dec 2001
Posts: 3,181
The trend in both Europe and the USA will be low cost no thrills airlines. The only airlines that are making any profits are Easyjet and Ryan Air in Europe and Southwest, Jet Blue in the USA.
I would not be surprised if most or even all long haul roots will be scrapped sooner or later.
I would not be surprised if most or even all long haul roots will be scrapped sooner or later.
May 3, 2003, 12:52 am
#7
Join Date: May 2002
Posts: 404
I'm having a Déja-Vu here. Or is the scenario of Swiss going bust and Swiss Express taking over too far fetched? Afterwards, of course, Swiss Express will be relaunched (with great media spin and a few billions from Swiss banks) as Switzerland's new flag carrier, taking over parts of Swiss' fleet and longhaul services. Some third class CEO will be found to run the new airline, and the "new" airline will be renamed to "Toblerone Air Switzerland". Sounds like a scene from Groundhog Day.
May 3, 2003, 5:29 am
#9
Join Date: Apr 2001
Posts: 232
As soon as the service of Swiss Express is comparable to the former Swissair Express the "Toblerone Air Switzerland" will not be far away 
[This message has been edited by niklaus1 (edited 05-03-2003).]
[This message has been edited by niklaus1 (edited 05-03-2003).]
[This message has been edited by niklaus1 (edited 05-03-2003).]
[This message has been edited by niklaus1 (edited 05-03-2003).]
May 3, 2003, 11:15 am
#12
Join Date: Aug 2000
Location: ZRH / YUL
Programs: UA, TK, Starwood > Marriott, Hilton, Accor
Posts: 7,295
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by niklaus1:
As soon as the service of Swiss Express is comparable to the former Swissair Express the "Toblerone Air Switzerland" will not be far away</font>
As soon as the service of Swiss Express is comparable to the former Swissair Express the "Toblerone Air Switzerland" will not be far away</font>
------------------
truly yours. airOli.
May 3, 2003, 12:41 pm
#13
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London and Zurich
Programs: AA, BA, Mucci: Sir Roger des Directions Routières, PCR
Posts: 13,609
EasyJet's take on the topic: Anything with 'Express' in the name ends in failure.
http://www.easyjet.com/EN/news/20030502_03.html
Final sentence on that link:
... the only good Express is a one with an 'o' at the end. Make mine a double, please.
(OK, it's a pun. We know that would be an espresso.)
http://www.easyjet.com/EN/news/20030502_03.html
Final sentence on that link:
... the only good Express is a one with an 'o' at the end. Make mine a double, please.
(OK, it's a pun. We know that would be an espresso.
)
May 3, 2003, 7:23 pm
#15
Join Date: Dec 2000
Location: Nr. Zurich
Programs: LH SEN, IHG Platinum, Marriott Lifetime Gold
Posts: 1,610
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Bretteee:
I think the name is a bad start!They should change it ASAP. </font>
I think the name is a bad start!They should change it ASAP. </font>