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FOUNDED AND STARTED OPERATIONS IN 1975. FORMERLY KNOWN AS CROSSAIR. DOMESTIC, REGIONAL, & INTERNATIONAL, PASSENGER, JET AIRPLANE SERVICES.
CH-8058 ZURICH, SWITZERLAND
Switzerland (Swiss Confederation) was established in 1291, its covers an area of 41,293 sq km, its population is 7.5 million, its capital city is Berne, and its official languages are French, German, Italian, and romanche.
NOVEMBER 1995: SWISSAIR (SWS) OWNS THE MAJORITY OF CROSSAIR (CSR) SHARES.
1,924 EMPLOYEES (INCLUDING 1,069 FLIGHT CREW (FC).
MAIN BASE/HUBS: BASEL MULHOUSE AIRPORT AND LUGANO AIRPORT.
8 MD-82/-83'S, EX-BALAIR (BAL).
JANUARY 1996: 1995 = +$14.2 MILLION (NET PROFIT) (+8%): +17% PASSENGERS (PAX) (2.3 MILLION PAX), -2% (RPK) TRAFFIC, +14% (ASM) CAPACITY, 53% LF LOAD FACTOR.
APRIL 1996: 1 RJ-100 (LF507-1F). 1 MD-83, EX-SWISSAIR (SWS).
JULY 1996: PHILIPPE BRUGGISSER, CHAIRMAN, EX-SWISSAIR (SWS).
AUGUST 1996: 1 AVRO RJ-100 (LF507-1F), 11TH IN 12 MONTHS.
OCTOBER 1996: SWISSAIR (SWS) & (CSR) VOTED "BEST AIRLINES IN EUROPE, FOR BUSINESS TRAVELERS" BASED ON PUNCTUALITY, CATERING AND PLEASANT PASSENGER INTERACTION.
APRIL 1997: 2,070 EMPLOYEES (INCLUDING 1,069 FLIGHT CREW (FC)).
1996 FISCAL YEAR (FY) = +$4 MILLION (+32%): +77% (ASM) CAPACITY, +73% PASSENGERS (PAX).
MAY 1997: TO DUBLIN (SAAB 2000).
1 MD-82 (JT8D-217C), EX-DINAR (DIR).
JUNE 1997: 1 MD-11, (SWS) WET-LEASED THROUGH OCTOBER 1997, FOR ZURICH TO PALMA DE MALLORCA. ZURICH TO SARAJEVO (RJ85).
25TH SAAB 2000 "CONCORDINO," (NOW > HALF ALL SAAB 2000'S, IN SERVICE).
JULY 1997: 1996 = +$16.6 MILLION (+$12.58 MILLION).
(JAA) CERTIFICATION FOR FLIGHT DYNAMICS (HGS) ON SAAB 2000'S.
AUGUST 1997: 1ST 6 MONTHS = +38.5% (RPK) TRAFFIC, PROFITS X2 (+152%) +$15.9 MILLION (+$6.3 MILLION): +23% (ASK) CAPACITY, 52% LF LOAD FACTOR (+3.3), 64 AIRPLANES (38).
OCTOBER 1997: BUYS 35% OF FRENCH REGIONAL OPERATOR, EUROPE CONTINENTAL AIRWAYS, BASED AT EUROAIRPORT, BASEL MULHOUSE FREIBURG, IN BOTH SWITZERLAND & FRANCE.
NOVEMBER 1997: CODE SHARE WITH AIR FRANCE (AFA), BASEL/MULHOUSE, BERN & LUGANO TO PARIS. NEW ROUTE TO FRIEDRICHAHFEN, TOULOUSE, ZURICH - THESSALONIKI, ZURICH - BASEL - BILBAO, - BORDEAUX. SION - LONDON HEATHROW.
3 ORDERS (FEBRUARY 1998) MD-83'S (49769; 49847; 49857), EX-(ACH), (GUI) LEASED, CHASE MANHATTEN LEASED.
DECEMBER 1997: CODE SHARE WITH LUFTHANSA (DLH), TO MUNICH. 6/2 ORDERS SAAB 2000'S.
MD-83 (49844), LEASED TO DINAR (DIR). 4 ORDERS AVRO RJ100'S. NOW HAS 4 RJ85'S & 12 RJ100'S.
JANUARY 1998: PLANS FOR NEW 8,500 SQ M, HQ AT EUROAIRPORT, BASEL MULHOUSE FREIBURG, TO OPEN IN 1ST QUARTER 2000.
FEBRUARY 1998: TO GENEVA - MALAGA, ROSTOK, ZURICH - IBIZA, BREMEN, GENEVA - STUTTGART.
MARCH 1998: TO OPERATE TO 5 CITIES IN RUSSIA, AND (CIS), FOR SWISSAIR (SWS): BAKU, AZERBAIJAN; YEREVAN, ARMENIA; RIGA, LATVIA; SAMARA, RUSSIA, AND TBILISI, GEORGIA (MD-83, 68C, 55Y).
1997 = +$30.2 MILLION: 4.7 MILLION (RPK) TRAFFIC (+19%).
10TH MD-80, AN MD-83, UNDERGOES "D" MAINTENANCE CHECK IN LEMWERDER, GERMANY.
APRIL 1998: 2,287 EMPLOYEES (INCLUDING 635 FLIGHT CREW (FC) & 340 MAINTENANCE TECHNICIANS (MT)).
TO LONDON (CITY).
1 SAAB 2000 (AE2100A) DELIVERY.
MAY 1998: +2 ORDERS (APRIL 1999) SAAB 2000 & BUYS 1 (004) OFF LEASED. PLANS FOR 24 SAAB 2000'S BY MID 1999. ADDED +3 MD-80'S (1559, 1585, 1587), EX-AERO LLOYD (ACH). SAAB HAS CEASED PRODUCTION, OF ITS COMMERCIAL AIRLINERS. CONSEQUENTLY, (CSR) SIGNED (MOU) WITH FAIRCHILD DORNIER, TO DEVELOP A NEW FAMILY OF REGIONAL AIRLINERS, IN THE 50-55, 70-75, & 90-100 PAX CLASS. UP TO 60 AIRPLANES COULD BE PURCHASED, TO REPLACE AVRO RJ & SAAB'S.
JUNE 1998: ZURICH - VENICE/BOLOGNA (SAAB 2000), WITH SWISSAIR (SWS)/AIR ONE (ADH), FLIGHT NUMBERS.
RICHARD HEIDEKER EXECUTIVE VP & HEAD PRODUCT MANAGEMENT, EX-GM DEUTSCH BA (DBA).
SAAB 2000 DELIVERY.
AUGUST 1998: PLANS FOR +3 SAAB 2000'S, FOR TOTAL 34.
SEPTEMBER 1998: PLANS SUBJECT TO S-AIR GROUP (SWS) APPROVAL, TO INCLUDE 2 767'S LEASED, FOR TRANSATLANTIC TO USA (NEW YORK, ATLANTA, & LOS ANGELES (LAX).
RICHARD HEIDEKER, EXECUTIVE VP GENERAL MANAGER - PRODUCT MANAGEMENT.
AT EUROPORT, OPERATES AS EURO CROSS, WITH SAAB 2000'S.
+1 MD-83 DELIVERY.
NOVEMBER 1998: ZURICH - GOTHENBURG. BASEL - ZURICH - LEIPZIG. SION - AMSTERDAM.
CATEGORY IIIB APPROVAL FOR AVRO RJ FLEET, USING LOW-COST, HONEYWELL, AUTOMATIC LANDING SYSTEM.
DECEMBER 1998: B AE 146-RJ100 (E3339) DELIVERY.
JANUARY 1999: PREDICTS SIGNIFICANT PROFITS FOR 1998, WITH +26% (RPK) TRAFFIC; +17% (ASK) CAPACITY; 51.6% LF LOAD FACTOR.
ADDED 9 AIRPLANES, FOR TOTAL 74.
FEBRUARY 1999: NEW ROUTES IN SUMMER TO NICE, GOTHENBURG, AND LEIPZIG.
+1 ORDER (APRIL 1999) MD-83, GECAS (GEH) (49856), EX-AERO LLOYD (ACH).
MARCH 1999: 1998 = +$42.3 MILLION (+$29.4 MILLION) (+47%): 5.4 MILLION PASSENGERS (PAX), (+14.5%).
1 SAAB 2000 (AE2100A) DELIVERY.
APRIL 1999: 2,803 EMPLOYEES (INCLUDING 740 FLIGHT CREW (FC), 940 CABIN ATTENDANTS (CA), & 420 MAINTENANCE TECHNICIANS (MT)).
(email@example.com). SITA: BSLTSLX.
MAY 1999: 1998 (PASSENGERS MILLION) TOP WORLD REGIONALS:
1 AMERICAN EAGLE 10.67; 2 COMAIR (COI) 6.18 (+16.5%); 3 CONTINENTAL
EXPRESS 5.64 (+15.6%); 4 SKYWEST 4.51 (+55.4%); 5 SWISS (CSR) 4.43 (+19%); 6 KLM UK (UKL) 4.41 (+1.7%); 7 (DLH) CITYLINE 4.40 (+13.3%); 8 UNI (MAK) 4.23 (+89.7%); 9 CANADIAN REGIONAL 4.19 (+23.1%); 10 HORIZON 4.09 (+18.2%).
2 SAAB 2000 (AE2100A) DELIVERIES.
JUNE 1999: IN JULY 1999, EUROAIRPORT TO ROME (SAAB 2000).
$4.9 BILLION FOR EMBRAER 200 REGIONAL JETS, INCLUDING ERJ-135'S, 37 PAX; ERJ-145'S, 50 PAX; E170'S, 70 PAX; & E190'S, 108 PAX. 15/25 ORDERS ERJ-145'S, 30/50 ORDERS E170'S, & 30/50 ORDERS E190-200'S.
JULY 1999: 1ST 6 MONTHS = 1.45 BILLION (RPK) TRAFFIC (+20%), 7.48 MILLION (FTK) FREIGHT TRAFFIC (-2%), 2.30 MILLION PASSENGERS (PAX) (+10%).
MD-83 (49359, HB-INV) WET-LEASED TO SWISSAIR (SWS). 1 ORDER B AE RJ-100 (E3357).
AUGUST 1999: ALTHOUGH (CSR) IS EUROPE'S LARGEST, REGIONAL OPERATOR, 1ST 6 MONTHS PRE-TAX = +$33 MILLION (-19.4%), DUE TO INADEQUATE AIR TRAFFIC CONTROL (ATC) SYSTEMS, AND THE KOSOVO CRISIS; +20% (ASK) CAPACITY.
OCTOBER 1999: TECHNICAL DIVISION: CONTACT: FRANZ MEYER, VP TECHNICAL (firstname.lastname@example.org): 10,000 SQ M HANGARS, FOR B AE 146'S, RJ85'S, SAAB 340/2000'S "A" - "D" MAINTENANCE CHECKS, INCLUDING COMPOSITES REPAIRS, SHEET METAL WORK, AND INTERIORS.
WITH DEBONAIR (DEB) CEASING OPERATIONS, (CSR) TAKES OVER ZURICH - BOLOGNA ROUTE.
NOVEMBER 1999: EUROAIRPORT - MILAN (SAAB 340). TO FLORENCE & VENICE. (CSR) EUROPE EUROPORT (BASEL - MULHOUSE - FRIEBURG) - MARSEILLE (SAAB 340).
DECEMBER 1999: IN MARCH 2000, TO INTRODUCE NEW LIVERY AT THE TIME OF ITS 25TH ANNIVERSARY, WITH WHITE FUSELAGE, FEATURING LARGE, DARK BLUE LETTERING, TAIL IN CHROME-SILVER COLORS, AND BEARS A NEW LOGO, A WHITE CROSS IN A RED FIELD, RADIATING OUTWARD.
ACQUIRES SULZER TRIEBWERKE, OBERWINTERTHUR, SWITZERLAND (ENGINE REPAIR & COMPONENT MANUFACTURING), & RENAMES IT AS CROSSAIR AIRCRAFT ENGINE REPAIR.
JANUARY 2000: ACCDT: SAAB 340B (213, /90) CRASHED AND DESTROYED, WRITTEN-OFF (W/O), AT NIEDERHASLI, SWITZERLAND = ALL 3/7 KILLED.
IN MARCH 2000, ZURICH - LINZ/ - SALZBURG/ - GRAZ REPLACING (SWS).
FEBRUARY 2000: 1999 = +$31.6 MILLION (-20%): 5.99 MILLION PASSENGERS (PAX) (+11.1%), INCLUDING 2.16 MILLION FLOWN ON BEHALF OF (SWS); 54.6% LF LOAD FACTOR (-1.0).
NAMES TEAM OF AVIATION EXPERTS, INCLUDING KLAUS NITTINGER (CEO), ROLLS ROYCE (RRC) DEUTSCHLAND TO AUDIT (CSR)'S FLIGHT OPERATIONS, TECHNICAL DEPARTMENT & QUALITY CONTROL.
1 ERJ-145 DELIVERY. 1 ATP, 66 PAX, BRITISH WORLD (BAF), SHORT TERM LEASED, FOR BASEL - MILAN SERVICE.
MARCH 2000: 25TH ANNIVERSARY!
TO TAKE OVER MOST OF GENEVA FLIGHTS FROM SWISSAIR (SWS). TO OSLO, ROME, STUTTGART, & LUGANO. CODE SHARE WITH AER LINGUS (ARL), ZURICH TO DUBLIN (MD-80). SUMMER SERVICE TO NAPLES. ALSO, ZURICH - GRAZ, LINZ. SALZBURG & GENEVA - ATHENS, LISBON, MADRID, ROME FOR (SWS).
2 EMB-145EU'S (AE3007A) (232, HB-JAA; 240, HB-JAB) DELIVERIES. +10 ORDERS ERJ-145'S.
APRIL 2000: 1 SAAB 340B (208) LEASED TO CARPATAIR, ROMANIA, AND SAAB 340B (200) TO MOLDAVIAN (MOL).
MAY 2000: STARTS CONSTRUCTION OF NEW 7,245 SQ M, HANGAR, AT BASEL-MULHOUSE-FREIBURG, FOR COMPLETION IN OCTOBER 2002, + 6-BAY, TRAINING CENTER WITH GECAT, FOR JANUARY 2001, & 28,260 SQ M, OFFICES FOR OCTOBER 2001.
FISCAL YEAR (FY) 1999 = +$30.4 MILLION.
JULY 2000: 1999 = +$34.19 MILLION (+$43.12 MILLION): 51% LF LOAD FACTOR; 6 MILLION PASSENGERS (PAX) (+11.1% 3,276 EMPLOYEES.
2 EMB-145LU (269, HB-JAD; 281, HB-JAE) DELIVERIES.
AUGUST 2000: 1ST 6 MONTHS = -$3.4 MILLION.
SEPTEMBER 2000: 2 ERJ-145LU (313, HB-JAF; 321, HB-JAG) DELIVERIES.
OCTOBER 2000: CODE SHARE WITH AER LINGUS (ARL), ZURICH - DUBLIN. ZURICH - PRISTINA, KOSOVO (RJ100, 2/WEEK).
CONSIDERING CUTTING 200-300 JOBS, AND RETIRING AIRPLANES, TO CUT COSTS, AND CAPACITY, BY EARLY 2001.
GROUNDS 2 MD-83'S TO REDUCE CAPACITY. 1 SAAB 340B (182), WET-LEASED TO MOLDAVIAN AIRLINES (MOL).
NOVEMBER 2000: 1 ERJ-145LU (341, HB-JAH) DELIVERY. SAAB 340B (215, HB-AKL) LEASED TO NORDIK AIRLINK.
DECEMBER 2000: JORGEN ORSTAM, MANAGER CROSSAIR TECHNIK.
8 ORDERS (FEBRUARY 2002) A320'S TO REPLACE MD-80'S AND PROVIDE "SYNERGY WITHIN THE SAIRGROUP." SAAB 340B (168) RETURNED FROM (MOL). ERJ-145LU (351, HB-JAI) DELIVERY.
JANUARY 2001: ANDRE DOSE (CEO), REPLACES MORITZ SUTER, WHO BECAME (CEO), SWISSAIR (SWS) SAIRLINE.
1 MD-80 & 1 SAAB 340B, WET-LEASED FOR 3 YEARS TO NORDIC AIRLINK, A SWEDISH COMPANY.
FEBRUARY 2001: 2000 = -$15 MILLION (+$31.6 MILLION): HIGHER FUEL COSTS & UNFAVORABLE USA $ EXCHANGE RATE: 6.3 MILLION PASSENGERS (PAX) (+4.9%).
REPLACES SWISSAIR (SWS) FLIGHTS, MORE AND MORE. TAKING OVER GENEVA TO BARCELONA, CASABLANCA AND TUNIS (RJ-85/-100) & NEW GENEVA - WARSAW (SAAB 2000). GENEVA IS NOW 2ND MOST IMPORTANT AIRPORT, WITH >70 DAILY DEPARTURES. IN SUMMER, TO ADD FLIGHTS TO OLBOA, AJACCIO, CORSICA, AND NAPLES.
1 ERJ-145LU (HB-JAJ) DELIVERY.
MARCH 2001: TO ST TROPEZ.
MAY BE COMBINED WITH "SWISSAIR EXPRESS" UNDER ITS NAME, STATED MARIO CORTI, NEW CHAIRMAN OF SAIRGROUP.
1 ERJ-145LU (400, HB-JAL) DELIVERY.
APRIL 2001: SAIRGROUP (SWS) PLANS BY THE END OF 2002 TO INTEGRATE BALAIR (BCT) INTO CROSSAIR (CSR) (SHORT-HAUL OPERATIONS) & INTO SWISSAIR (SWS) (LONG-HAUL OPERATIONS).
2,946 EMPLOYEES (INCLUDING 790 FLIGHT CREW (FC) & 1,100 CABIN ATTENDANTS (CA)).
CODE SHARE WITH FINNAIR (FIN) TO HELSINKI, AND WITH (LOT) POLISH AIRLINES TO WARSAW. ZURICH - FLORENCE, (SAAB 200, 2/DAY).
1 SAAB 340B (161, HB-AKB) LEASED TO AIR LITTORAL. 1 ERJ-145LU (420, HB-JAM).
JUNE 2001: CODE SHARE AGREEMENT WITH TUNISAIR (TUN).
1 MD-83 (49569) RETURNED (SAT), LEASED TO SPANAIR (SPP). 1 ERJ-145LU 456, HB-JAO; DELIVERY.
JULY 2001: BALAIR (BCT) IS ABSORBED INTO (CSR).
2 757-2G5'S (RB211-434E5) (29379, HB-IHR; 30394, HB-IHS), EX-(BCT). 1 ERJ-145LU (475, HB-JAP) DELIVERY, LEASED TO DENIM AIR.
AUGUST 2001: 2 SAAB 2000 WITHDRAWN FROM USE (WFU) (26; 32).
OCTOBER 2001: SWISSAIR (SWS) SUSPENDS ALL OPERATIONS.
TWO SWISS BANKS: UBS (51%) & CREDIT SUISSE (49%), BUY (SWS)'S 70.9% STAKE IN (CSR) FOR CHF258.8 MILLION. (CSR) TAKES OVER (SWS)'S EUROPEAN ROUTES.
(CSR) WILL ALSO EMPLOY +5,000 EX-SWISSAIR (SWS).
(CSR) TAKES OVER TWO-THIRDS OF (SWS)'S FLYING OPERATIONS BY THE END OF THE MONTH, INCLUDING 52 (SWS) AIRPLANES, MOSTLY FLIGHTLEASE (FLL) LEASES: 13 MD-11'S; 6 A319'S; 20 A320;'S; & 13 A330-200'S.
NOVEMBER 2001: PIETER BOUW, CHAIRMAN, 60 YEARS OLD, FORMER (CEO) (KLM). JORGEN ORSTAM EXECUTIVE VP TECHNICAL.
ACCDT: B AE RJ100 (E3291, HB-IXM) CRASHED ON APPROACH TO ZURICH AIRPORT = 24 FATALITIES OF 5 (FC) - (CA)/28 PASSENGERS. A REPORT BY THE SWISS AIRCRAFT INVESTIGATION BUREAU SAID THE 57-YEAR OLD CAPTAIN (FC), WHO DIED IN THE CRASH HAD BEEN EXHAUSTED, AND THE CREW (FC) HAD NOT COOPERATED CORRECTLY. HE HAD BEEN ON DUTY >13 HOURS WHEN THE CRASH OCCURRED AND HE HAD EXCEEDED MAXIMUM DUTY TIMES IN THE 2 DAYS BEFORE THE ACCIDENT.
DECEMBER 2001: 1 MD-83 (49359) SOLD TO ODETTE AIRWAYS (OAW).
JANUARY 2002: (CSR) BOARD APPROVES LONG-TERM, BUSINESS PLAN, PRESENTED BY ANDRE DOSE (CEO), WHICH ADDS 52 AIRPLANES, HALF OF THEM WIDE BODIES, SERVING LONG-HAUL ROUTES. (CSR) CURRENTLY EMPLOYS 3,800 PERSONNEL, AND PLANS TO HIRE +5,000, IN CHANGEOVER PERIOD TO BECOME SWITZERLAND'S NEW NATIONAL CARRIER.
(CSR), ALONG WITH SWISS FEDERAL RAILWAYS, PLAN TO REVIVE "FLUGZEUG" TRAIN SERVICE BETWEEN BASEL AND ZURICH AIRPORT, WHICH ALLOWS PASSENGERS TO USE THEIR AIRLINE TICKETS FOR THE 70-MINUTE TRAIN TRIP.
(CSR) IS NOW, ROUGHLY ONE-THIRD STATE-OWNED, AND WILL BE MADE INTO THE NEW NATIONAL CARRIER WITH PUBLIC AND PRIVATE INVESTMENT TOTALING $2.7 BILLION. PLANS TO SET UP ITS OWN CARGO UNIT TO INCREASE PROFITABLE OPERATION OF 26 LONG-HAUL AIRPLANES.
ASSUMES "SWISSCARGO" WILL BE GOING OUT OF BUSINESS, SINCE NO INVESTORS HAVE SHOWN ANY INTEREST.
(CSR) & (SWS) PILOT (FC) GROUPS WILL BE MANAGED INDEPENDENTLY OF ONE ANOTHER UNTIL THE END OF 2002 UNDER A TRANSITIONAL PLAN. ALSO, (CSR)'S FLIGHT OPERATIONS CONTROL CENTER WILL BE TRANSFERRED FROM BASEL TO ZURICH, INCLUDING DISPATCH AND FLIGHT CREW (FC) CONTROL. FLIGHT CREW (FC) & CABIN ATTENDANTS (CA) PERSONNEL WILL BE RECRUITED SOLELY FROM (SWS).
2001 = 3.29 BILLION (RPK) TRAFFIC (-5%); 11.37 MILLION (FTK) FREIGHT TRAFFIC (-16%); 5.09 MILLION PASSENGERS (PAX) (-5%).
UNDER "PHOENIX PLUS" PLAN, APPROVED BY THE BOARD, (CSR) WILL ABSORB 26 MEDIUM-HAUL AND 27 LONG-HAUL AIRPLANES, FORMERLY OPERATED BY (SWS). SAAB 340B (200, HB-AKH) RETURNED.
FEBRUARY 2002: (CSR) RENAMED FROM "CROSSAIR" TO "SWISS."
FUSELAGE IS PAINTED WHITE WITH THE SWISS CROSS IN WHITE ON A RED TAIL, & THE "SWISS" LOGO ON THE FUSELAGE AND ENGINE COWLINGS. CHANGES ITS LEGAL NAME TO "SWISS AIR LINES" (A NAME FORMERLY HELD BY SWISSAIR (SWR).
ZURICH CANTON MAKES $187.5 MILLION INVESTMENT IN THE NEW "SWISS" AIRLINE.
MARCH 2002: SAIRGROUP (SWS) SUES ITS FORMER REGIONAL SUBSIDIARY, (CSR) FOR THE USE OF THE NAME "SWISS" AND "SWISS AIR LINES LTD" AS ITS NEW BRAND.
SITA: BSLDDLX. FISCAL YEAR 2001 = -$187 MILLION.
$1.3 BILLION, 13 ORDERS (JUNE 2003) A340-300, TO REPLACE 13 MD-11'S.
APRIL 2002: CODE SHARE WITH AMERICAN AIRLINES (AAL), TRANSATLANTIC AND ZURICH, TO POINTS IN EUROPE, AFRICA, AND THE MIDDLE EAST. IN MAY 2002, ZURICH - BOLOGNA/TURIN (3/DAY).
"SWISS" OFFICIALLY STARTS OPERATIONS, WITH BASEL - ZURICH, WITH ANDRE DOSE, CEO ON BOARD.
IS LEASING 23 AIRBUS (EDS) AIRPLANES FROM (ILFC) (ILF): 3 A319-100'S; 2 A320-200'S; 6 A321-200'S, AND 6 A330-200'S, ALL EX-SWISSAIR (SWS), PLUS 6 A320-200'S, ON 7 YEAR LEASES, WITH 3 BEING DELIVERED IN 2003, AND 3 IN 2004.
CROSSAIR GROUP 2001 = -CHF314 MILLION (-CHF25.4 MILLION) WITH -CHF290 MILLION ATTRIBUTABLE TO SWISSAIR (SWS).
MAIN BASE: BASEL - MULHOUSE AIRPORT (BSL).
HUBS: BERNE-BELP AIRPORT (BRN); ZURICH - KLOTEN AIRPORT (ZRH); GENEVA INTERNATIONAL AIRPORT (GVA); & LUGANO AIRPORT (LUG).
OWNERS: UBS (35.9%); CREDIT SUISSE (34.4%); VARIOUS SHAREHOLDERS
3,633 EMPLOYEES (INCLUDING 719 FLIGHT CREW (FC); & 1,218 CABIN ATTENDANTS (CA)).
SIGNS 7-YEAR, MAINTENANCE & OVERHAUL SERVICE CONTRACT WITH SR TECHNICS (SWS), FOR FORMER (SWS) AIRPLANES.
May 2002: MD-11 (48452) stored at Mojave.
July 2002: Switched its Moscow operations from Sheremetyevo to the modernized Domodedovo Airport. Code share with American Airlines (AAL), Zurich to Krakow, Warsaw, and Muscat, plus in August 2002, Zurich to Mumbai/Delhi.
2001 (CSR) GROUP = -$194.7 million (-15.64%); CSR 2001 = -$185.82 million (-$16.9 million): 3.29 billion (RPK) traffic (-5%); 5.09 million passengers (PAX) (-5%); 11.37 million (FTK) freight traffic (-16%); 4,439 employees (+20.6%).
To name all its airplanes after mountains in Switzerland.
SAAB 340B (228, HB-AKO), leased to Carpetair.
August 2002: Karel Lebeboer (ex-retired (KLM) executive, ex-(IATA) Senior Safety official and confidant of (CSR) Chairman, Pieter Bouw) (COO).
September 2002: Code share with Aer Lingus (ARL), Geneva to Dublin and with Thai Airways (TII), to Bangkok.
MD-11 (48485), stored at Mojave.
October 2002: Geneva - Marseille (Saab 340, daily). Expands code share with American (AAL) to include Accra, Budapest, Dubai, Johannesburg, Lagos, and Tirana.
November 2002: Oliver Evans, Executive VP, Swiss WorldCargo, ex-(BAX) Global (BAX) & (KLM).
Now named "SWISS INTERNATIONAL AIR LINES." Was previously, just "SWISS."
Code share with Iberia (IBE), Basel/Geneva/Zurich - Barcelona/Madrid. In December 2002, to resume Geneva - Jersey (Saab 2000, weekly). In December 2002, resumes Sion to London Heathrow (Saturdays). Code share with SN Brussels Airlines (DAT), Basel to Brussels.
Will reduce its fleet by -5 airplanes and lay off -300 employees, including -140 pilots (FC). The 7 MD-83's used for charters will be replaced by 4 A320'S.
December 2002: Plans to revive the Zurich - Genoa route. Extends its code share with Finnair (FIN), Zurich to Helsinki, Zurich to Athens, Bologna, Milan, Nice, Rome, & Venice; Helinki to Oulu, Tampere, Turku, & Vaasa. Code share with American (AAL), Zurich to Tel Aviv.
"Zurich Business Journalists Association" names Andre Dose (CEO), its "Entrepreneur of the year for 2002" praising him for his "consumate skill at keeping an airship shaken by internal and external turbulence, on a fairly even course."
William Meaney, 42, dual Irish/USA, Managing Director, ex-South African Airways (SAA), and was (CEO) of the Star Alliance (SAL).
To retire 1 MD-11 (48453, HB-IWH) to Bandung Ltd. 1 A320, and 3 Saab 2000/s by the spring of 2003. MD-82 (1181-49277) to Odette (OAW). Sells and leases back 7 Embraer ERJ-145's. MD-11 (48453, HB-IWH) stored at Mojave.
January 2003: 4th Quarter = -16.3% (RPK) traffic. Last 6 months 2002 = -SFR 447 million/-$299.4 millionj, 1 3rd less than the company had forecast in its business plan; 5.2 million passengers.
Branded its charter subsidiary as "Swiss Sun."
Canceled 1 order A340-300, reducing to 12 orders.
February 2003: Plans to cut -700 jobs and cut its fleet by -20 airplanes, including 12 Saab 2000's. 5 ERJ-145's, 2 MD-83's & 1 A321. Capacity will be reduced end of 3/03, as follows: Zurich (-12%); Geneva (-11%); Basel (-31%); Bern & Lugano destinations will be reduced and routes discontinued.
In 3/03, code share with Qantas (QAN), Sydney - Singapore - Frankfurt - Zurich. In 4/03, code share with Japan Airlines (JAL), Zurich to Tokyo.
March 2003: Code share with Qantas (QAN), Frankfurt - Zurich.
2002 = -# Sfr 980 Million/-$721.9 Million: 22.37 Billion RPK; 11.57 Million PAX; 80.3% LF on long-haul, <56.9% LF on European routes.
Will cut -10% staff, leaving 9,000.
Ulrik Svensson Managing Director Finance, effective 5/03. Manfred Brennwald Managing Director Operations, replacing Karel Ledeboer, who has been (COO), and Head of Engineering & Flight Operations on an interim basis since 8/02. With William Meaney Managing Director of Strategy & Network, Product & Services, Sales & Marketing, and Cargo, the trio of MD's will form the executive board under Andre Dose (CEO).
Swissair Technics (SWS) has 6-year contract to provide total maintenance support for Swiss International Airlines (CSR)'s 12 A340-300'S.
Halves its Embraer orders to 15/20 E170's and 15/20 E195's and delaying its 1st deliveries by 1 year to 6/04.
April 2003: 1st Q = 6.2 Billion RPK; 9.1 Billion ASK; 67.9% LF (European market: 49.6% LF; Intercontinental market: 77.2% LF); 2.7 Million passengers (PAX).
Switzerland's 2 leading banks, UBS and Credit Suisse Group, each holding 10% shares in Swiss International Airlines (CSR), have withdrawn a #Sfr400 Million/$292 Million credit line. (CSR) stated that the funds, part of a #Sfr500 aid package, are not needed at the moment, however, (CSR) will continue talks with these banks about medium-term credit.
MD-82 (1181-49277, HB-INR) wet-leased to Nordic Airlink (NOQ). Saab 2000 (035, HB-IZS) returned to lessor.
May 2003: Swiss International Airlines (CSR) was given a government minder in the wake of rising doubts about its long-term survival in its present form. Early last year, (CSR) operated 132 airplanes to 117 destinations in 60 countries. Today, it is flying 109 airplanes to 99 cities in 56 countries, including 41 intercontinental points.
Decides to spin off its regional European business into a low-cost carrier named Swiss Express in late 2003 or early 2004.
Will widen code share with Iberia Airlines (IBE) to include flights from Spain to Budapest and Nuremberg, via Zurich, plus flights to Vienna, via Zurich. (CSR) will offer flights from Switzerland to Oporto, Valencia, Seville, and Bilbao, by adding its code to (IBE) flights to those cities from Madrid and Barcelona.
Ulrik Svensson (CFO) replaces Thomas Hofmann.
2 ERJ-145LU's (588, HB-JAX; 601, HB-JAY), wet-leased to JetMagic. 2 MD-83's (1559-49769, SE-RDF; 1687-49857, SE-RDE), wet-leased to Viking Airlines (VKN).
June 2003: Code share with Finnair (FIN), Helsinki to Graz, and Luxembourg, via Zurich. Also, to Jyvaskyla, via Helsinki, and frequencies will be added on other routes.
(CSR) will get tax relief, but no direct govt bailout funds, while the country's major banks have indicated they are unwilling to invest more in the struggling airline. By exempting (CSR) from taxes on fuel for some domestic flights, the govt will save (CSR) about -$4.5 Million. Local media reports management failures, specifically in maintaining overcapacity. The announcement that 34 airplanes are to be withdrawn from service, along with -3,000 jobs of the total 9,000 to be shed, resulted in a blizzard of criticism, and unions fear another -2,000 jobs could be on the line.
Plans to reduce capacity by -35% effective on the 2003 winter timetable, by removing from service: 12 MD-11's; 3 A320's; 4 A330's, & 24 SAAB 200's/ERJ-145's leaving a long-haul fleet of 18 airplanes: 9 A330's & 9 A340's (to be delivered), medium-haul fleet: 21 A320 family airplanes, and regional fleet to 35: 19 Avro RJ;s & 16 Saab 2000's and/or ERJ-145's.
MD-11 (614-48634) returned to lessor. A320-214 (2024, HB-IJV0 & A340-313X (538, HB-JMA) deliveries. 2 Saab 200's (005; 036) returned to Saab. Saab 2000 (062) sold to Kalidas GmbH.
July 2003: SITA: BSLDDLX. (http://www.swiss.com).
New network to be introduced with the winter schedule in 10/03, extends to 71 destinations and will be operated by a 79 airplane fleet: 18 MD-11's, A330'S & A340'S, 22 A320 family airplanes, 19 Avro RJ's, 14 ERJ-145's, and 6 SAAB 2000's. Total capacity will be reduced by -27%. The new European network will extend to 41 destinations (compared to the current 56), and internationally will serve 30 most important destinations (-10 fewer than present).
Moritz Suter, Crossair (CSR) founder, aims to launch a Swiss domestic airline in 10/03, with Geneva - Lugano (Saab 2000).
Saab 2000 (063) sold to Kalidas Gmbh.
August 2003: (MOU) for all ground handling (including cargo handling) across its network to be outsourced to Swissport within the next 12 months. 1st stations to be outsourced including Johannesburg, Nice, Paris, Madrid, Los Angeles, and Zurich. (MOU) signed to join Oneworld alliance.
2nd Q = -# Sfr 133 Million (-# Sfr 200 Million). 1st 6 months = -# Sfr 333 Million (-# Sfr 447 Million/-$321.3 Million): 5.5 Million PAX; 68.7% LF (+6.7).
2 Saab 2000's (006; 008) returned to Saab.
September 2003: Decides to join British Airways (BAB) and American Airlines (AAL) in the OneWorld alliance. Existing OneWorld members:
(AAL); (BAB); Qantas (QAN); Cathay Pacific (CAT); Iberia (IBE); LanChile (LAN); Finnair (FIN); & Aer Lingus (ARL) - over last 3 years, alliance has generated additional revenues of >$2 Billion, operating >8,600 flights/day to >570 destinations in 136 countries. Has a separate agreement with (BAB) for a "strategic alliance."
2002 = -$634.7 Million (-$202.9 Million): 22.37 Billion RPK (+606.2%); +407.2% ASK; 71% LF (+20); 11.6 Million PAX (+137.3%); 1.03 Billion FTK (-32.1%); 11,432 EMPLOYEES (+157.5%).
2002 TOP WORLD AIRLINES TRAFFIC (Billion):
25 (GUN) 28.94; 26 (VAA) 27.00; 27 (CHI) 26.81; 28 (VAR) 26.12; 29 (BEJ) 24.00; 30 (SAS) 23.21; 31 (CSR) 22.37; 32 (GUE) 21.90; 33 (ANZ) 21.48; 34 (SAA) 21.28; 35 (ASA) 21.23.
A340-313X (545, HB-JMB) delivery. ERJ-145LU (351), returned to lessor.
October 2003: 3rd Q = -# Sfr 279 Million/-$211 Million (-# Sfr 135 Million): 2.9 Million PAX, 77.6% LF (+.3). A result has been its slimmed-down management and administrative structure. -330 staff positions were eliminated. Together with the -2,500 layoffs and a final -170 positions under review, it will meet its downsizing figure of -3,000 positions outlined in its reorganization plan (which also included cutting capacity (ASKs) by -35% and reducing its fleet from 137 to 79 airplanes).
1st 9 months = -# Sfr 609 Million (-# Sfr 582 Million).
A340-313X (546, HB-JMC) delivery. 3 ERJ-145LU's (475; 498; 510), sold to Trans States.
November 2003: Code share with Macedonian Airlines (MCC), Skopje - Zurich.
Heavy maintenance contract for 2 A330-200's to Lufthansa Technik (LTK) (DLH).
William Meaney, Managing Director Commerce, will leave the company.
3 MD-11's (48444; 48446; 48457), returned to ABN-Amro, leased to Varig (VGAR). 2 A330-223's (240; 253), returned to (ILF). Saab 2000 (009), returned to Saab. 038 leased to Carpetair. ERJ-145LU (281) leased to Trans States.
December 2003: Oliver Evans Executive VP Passenger Sales, 49, & will continue to head Swiss WorldCargo (French/British dual national), ex-(KLM).
A321-111 (827) returned to (ILF), leased to Air Mediterranee (AMV). Saab 2000 (056) leased to Moldavian Airlines. Saab 2000 (029) returned from Carpatair. Saab 2000 (038, HB-IZV) wet-leased to Carpatair.
January 2004: 2003 = -# Sfr 687 Million/-$522 Million (-# Sfr 980 Million/-$648 Million): after restructuring costs of # Sfr 205 Million: 24.082 Million RPK (+8.3%); 33.5 Million ASK; 71.9% LF; 11.2 Million PAX (-7.2%); 1.31 Billion FTK (+21.1%); (European 59.6% LF; intercontinental 78% LF). Liquid funds total # Sfr 503 Million/$399.3 Million which should enable survival through the slack winter season. Restructuring is 60% complete. Network capacity was cut by -21% and the fleet downsized from 111 to 83 airplanes. The workforce was reduced by -2,530 with -670 to be trimmed in 1st (Q) 2004.
Willy Schnyder VP Marketing & Sales-Switzerland.
2 ERJ-145LU's (588; 601) returned from JetMagic. ERJ-145LU (281) sold to (GECAS) (GEF).
February 2004: Saab 340B (168, HB-IKP) & 2 Saab 2000's (026, HB-IZT; 039, HB-IZW) leased to Carpatair.
A320-214 (2134, HB-IJW), (ILF) leased. A321-111 (891, HB-IOJ) returned to (ILF).
March 2004: Completed implementation of PROS revenue management system.
Andre Dose (CEO), resigns following the criminal investigation into the (CSR) Avro RJ100 crash in 11/01. Pieter Bouw Chairman, will assume the (CEO) function on an interim basis.
A321-111 (891) returned to (ILF), leased to Air Mediterranee (AMV).
2 Dash 8-300's, Cirrus Airlines wet-leased for Zurich - Lugano.
April 2004: Christoph Franz, 43, ex-Lufthansa (DLH) & German Railways, (CEO).
British Airways (BAB) guaranteed a # CHF 50 Million loan from Barclays Bank for Swiss International Airlines (CSR).
Intends to close down Swiss Sun operations in 10/04.
ERJ-145LU (255) leased to Trans States.
A340-313X (585, HB-JMH) delivery.
May 2004: MD-83 (49930) leased to Bulgarian Air Charter (BUC). MD-83 (49844) returned to GMI.
A340-313X (598, HB-JMI) delivery.
June 2004: Cancels its commercial ties with British Airways (BAB) and is abandoning plans to join the OneWorld alliance. (CSR) was reluctant to hand over details of its frequent flyers, including key business travelers to (BAB).
July 2004: In 10/04, moves its Berlin services from Tempelhof to Tegel.
In 1/05, 737-700 BBJ, PrivatAir (PTS) wet-leased for Zurich - Newark, replacing its A330 service.
Saab 2000 (041, HB-IZX) leased to Carpatair.
August 2004: Selected (AT&T) to provide a global virtual private network to connect 36 key business locations around the world. The 3-year, $2.4 Million deal will link 19 Swiss locations in Europe, 13 in the USA, & 4 in Canada through the (AT&T) Global Network. In 11/04, will coordinate New York services with American Airlines (AAL) connections.
September 2004: Zurich - Alicante (ERJ100, wkends). Now serves 43 destinations in Europe. On the intercontinental front, it serves 23 destinations after flights to Karachi are discontinued.
October 2004: 1st 9 months = 75.2% LF.
Has obtained a # SFR 325 Million/# EUR 210 Million line of credit with a banking syndicate consisting of Halifax Bank of Scotland, Barclays Capital, Credit Suisse, (UBS), & the Zucher Kantonalbank.
+2 orders A340-300's for total 11.
November 2004: Lays off 100 cabin crews (CA) assigned to short-haul European flts, saving # EUR 6.6M.
Code share with Maersk (MRS), Copenhagen to Zurich & Geneva. Code share with Malev (HGA), Zurich & Geneva to Budapest. In 3/05, Basel - Palma de Mallorca, Valencia. In 6/05, Basel - Corsica, Sardinai, & Naples.
Plans to outsource some of its internal Information Technology (IT) services to telecom operator, Swisscom.
737-86Q (CFM56-7B) (1600-30295, HB-IIR), Privatair (PTS) wet-leased for BBJ service, Zurich to Newark.
January 2005: Owing to pressure from low-cost competitors and continuing fare erosion in Europe, (CSR) decides to cut its fleet by at least 13 airplanes, restructure its operations at Zurich, Geneva, and Basel and cut its staff by -800 to -1,000 by mid-2006 with one-third achieved through attrition.
Will shed -800 to -1,000 jobs by mid-2006.
March 2005: (CSR) has been acquired by Lufthansa (DLH). 84% of (CSR)'s capital has been acquired by AirTrust, the holding company through which Lufthansa (DLH) is taking over Swiss (CSR). (CSR)'s Swiss brand will be retained and will remain a mostly independent airline with its management seat still in Switzerland, keeping its own airplane fleet and crew, but managed within the Lufthansa (DLH) system as a separate profit center. Total purchase price ranges between # EUR 45 Million & EUR 300 Million.
In summer, +4 cities for total 74 including 47 in Europe and 27 intercontinental destinations. In 5/05, code share with Air France (AFA), Geneva - Paris (10/day). In 6/05, EuroAirport Basel - Mulhouse - Freiburg to Valencia (4/week), Mallorca (5/week), Ajaccio, Olbia & Naples.
April 2005: Subsidiary, Crossair Europe, Basel, ceases operations and (CSR) takes over 1 of its 2 Saab 2000's.
July 2005: Swiss International Airlines (CSR) and Air Canada (ACN) plan to code share on Zurich - Toronto. (ACN) is also considering Toronto - Delhi, via Zurich to take advantage of (CSR)'s membership in the Star alliance, and the introduction of Zurich into the Lufthansa (DLH) hub network, after (DLH) completes its acquisition of (CSR).
SR Technics (SWS) extends maintenance contract of Swiss International Air Lines (CSR) Airbus fleet for a further 3 years to 2012.
August 2005: Swiss International Airlines (CSR) is the principal Swiss airline operating scheduled services to destinations in North America, Europe, North Africa, and the Far and Middle East from its hubs in Basle, Berne, Geneva, Lugano, and Zurich.
5,970 employees (-18.2%).
(IATA) Code: LX - 724. (ICAO) Code: SWR (Callsign - SWISS).
Owns: Swiss Sun (100%); & Crossair Europe (99.9%).
Parent organization/shareholders: Institutional investors (61.3%); Swiss Confederation (20.3%); cantons & communities (12.2%); privately held (4.1%); non-registered shares (2.1%); Lufthansa (DLH) to take over to bbe ccompleted by 2007, starting with a minority stake (11%) of a new company set up to hold (CSR) shares called Air Trust.
Alliances: Aer Lingus (ARL); Air Alps Aviation; American Airlines (AAL); British Airways (BAB); City Airline; (CSA) Czech Airlines; Denim Air; El Al (ELA); Finnair (FIN); Iberia Airlines (IBE); Japan Airlines International (JAL); Macedonian Airlines (MCC); Maersk Air (MRS); Malaysia Airlines (MAS); Malev (HGA); Oman Air (OMR); PrivatAir (PTS); Qantas Airways (QAN); SN Brussels Airlines (DAT);
SriLankan Airlines (DAT); Styrian Spirit; Thai Airways (TII); & Ukraine International Airlines (UKR).
Main Base: Basle-Mulhouse (BSL).
Hub: Zurich Kloten (ZRH).
Domestic, scheduled destinations: Basle/Mulhouse; Geneva; Sion; & Zurich.
International, scheduled destinations: Alicante; Amsterdam; Athens; Bangkok; Barcelona; Belgrade; Benghazi; Berlin; Birmingham; Boston; Brussels; Bucharest; Budapest; Cairo; Chicago; Copenhagen; Dar es Salaam; Douala; Dubai; Dublin; Dusseldorf; Frankfurt; Hamburg; Hanover; Hong Kong; Istanbul; Jeddah; Johannesburg; Lisbon; London;
Los Angeles; Luxembourg; Madrid; Malabo; Malaga; Manchester; Miami; Milan; Montreal; Moscow; Mumbai; Munich; Muscat; Nairobi; New York; Nice; Nuremberg; Palma de Mallorca; Paris; Prague; Riyadh; Rome; Sao Paulo; Singapore; Stockholm; Stuttgart; Tel Aviv; Thessaloniki; Tokyo; Tripoli; Vienna; Warsaw; & Yaonde.
As part of the integration of (CSR) into the Lufthansa (DLH) system, the carriers announced they will operate all services between Switzerland and Germany, a total of 563 weekly flights, as code share flights with introduction of the 2005 -2006 winter schedules from 10/05. (DLH) and (CSR) also are harmonizing their entire schedules, with timetables closely linked "to provide a coordinated and complementary range of services at their 3 hubs of Zurich, Frankfurt and Munich instead of competing against each other with almost simultaneous departures as was often the case in the past."
(CSR) will offer 69 destinations in 41 countries in its winter schedules with a 70-airplane fleet, reduced from the current 80, while (DLH) offers service to 181 destinations in 76 countries.
(TAP) Portugal and Swiss International Airlines (CSR) concluded a commercial cooperation agreement including joint marketing and codesharing on all flights between Portugal and Switzerland beginning 9/05. In the 1st stage, the Star (SAL) Alliance partners will code share on all flights from Lisbon to Zurich and from Lisbon and Oporto to Geneva. In the next phase, they intend to extend their code share operations to destinations beyond Zurich and Lisbon.
September 2005: Swiss International Air Lines board of directors elected Rolf Jetzer chairman in its 1st meeting since being reconstituted to give effect to the carrier's acquisition by Lufthansa (DLH). Walter Bosch was elected deputy chairman. The size of the board was reduced from 8 members to 5 and previous members Pieter Bouw, Claudio Generali, Michael Pieper, Jan Audun Reinas and Peter Siegenthaler retired. In addition to Jetzer and Bosch, other members of the board are Jacques Aigrain, Wolfgang Mayrhuber and Klaus Schlede.
Swiss (CSR) will begin new code share services from Zurich to Toronto and Delhi with Air Canada (ACN) and to Ljubljana with Adria Airways (ADR) from October 30.
(CSR) reportedly plans to supply up to 60 pilots (FC) to China Airlines (CHI) for the (CSR)'s 747, A330 and A340 fleets. Pilots (FC) have been made surplus to (CSR) needs owing to its decision to phase out its Embraer ERJ-145s and Saab 2000s. Another 15 pilots (FC) may find some work with Etihad Airways (EHD). Also, Jet Airways (JPL) of India is looking for some A340 pilots (FC) from Swiss (CSR).
October 2005: Swiss International Air Lines (CSR) and United Airlines (UAL) will start code share operations beginning November 1 from Zurich to Chicago, Los Angeles and Washington and domestically between Zurich and Geneva. Further cooperation routes will be provided from Kenya, Italy, Israel, France and southern Germany via Zurich.
(CSR) is to spin off its Regional operations into a standalone subsidiary called Swiss European Air Lines with its own management team and air operating certificate (AOC) before year end. In a statement, (CSR) said the move "will make a further contribution to enhancing Swiss (CSR)'s competitiveness and should provide a basis for growth in the European services sector." The action comes some 42 months after one of Europe's most storied Regionals, Crossair, surrendered its independent identify and was merged into the remnants of Swissair in order to form Swiss (CSR), which since has been acquired by Lufthansa (DLH).
Swiss European will provide "wet-lease flights" in the European market on behalf of the parent. All regional pilots will transfer to the new entity and cabin crew initially will be provided by (CSR) as well, although Swiss European will recruit its own cabin staff and build up its own workforce, (CSR) said.
The unit also will "inherit" all the airplanes in the current regional fleet, comprising 7 ERJ-145s and 18 Avro RJ85s/100s, 7 Saab 2000s having been pulled from the fleet. The ERJ-145s are being phased out in favor of an all-Avro fleet of 24 jets once the summer 2006 timetable comes into effect. The Managing Director of the new airline is Peter Koch.
Swiss European Air Lines has been issued its Air Operator's Certificate (AOC) by the Swiss Federal Office for Civil Aviation, allowing it to begin operations November 1. The wholly owned Swiss subsidiary will operate wet-lease services in the European market on behalf of its parent company and will serve some 30 destinations. 18 Avro RJ 85s/100s and 8 Embraer ERJ-145s will be transferred to the new company, which will be led by its own management team headed by Peter Koch. Service will commence Tuesday morning with flights from Basel and Geneva to Zurich. European service will begin with flights from Zurich to Stuttgart, Copenhagen and Warsaw.
Lufthansa (DLH) and (CSR) will use the same terminals and check-in facilities at Zurich, Frankfurt and Munich and, as previously announced, will code share on their >80 daily flights between Germany and Switzerland with introduction of the 2005 - 2006 winter schedules from October 30. Code share services will be extended from Frankfurt and Munich to Bremen, Leipzig, Cologne-Bonn, Krakow, Gdansk, Sofia, Riga and Los Angeles. Swiss (CSR) also is adding service from Zurich to Venice and ending service to Alicante. From Geneva it is adding Lisbon under a codeshare agreement with (TAP) Portugal while dropping service to Rome. The network from Basel covers 4 destinations: Zurich, London City, Brussels and Amsterdam.
(CSR) is selling its 57.2% stake in Loyalty Gate Ltd, a leading provider of services for frequent-flier programs, to London-based International Customer Loyalty Programs (ICLP). Loyalty Gate Ltd has managed the Swiss TravelClub program. Following (CSR)'s decision to transfer Swiss Travel Club to Miles & More as of April 1, 2006, the airline and the minority Loyalty Gate Ltd shareholders agreed to the sale to (ICLP).
November 2005: Swiss (CSR) withdrew the last Saab 2000 from its fleet on October 29 after a flight from Palma to Basel.
December 2005: Lufthansa (DLH) wants to reduce pilot (FC) costs further to help boost profitability and meet increasing competition in the global airline market, Chief Executive Wolfgang Mayrhuber said. In an interview with Reuters, Mayrhuber questioned how long (DLH) can continue to pay its pilots (FC) "significantly above the market rate" and said market conditions should apply to new pilots (FC) joining the company. "We have to convince the unions that lower pay is advantageous for them, as only profitable jobs are secure jobs," he said. "We have to negotiate with the unions. It is not easy. Not everyone understands how much a large company like Lufthansa (DLH) has to earn to be secure." Mayrhuber said previously that (DLH) needs to achieve an annual operating profit of +€1 billion/+$1.2 billion "as soon as possible" to grow and create value. He added that the Vereinigung Cockpit pilots union will have to budge on an agreement preventing lower-paid pilots at its airline partners such as CityLine from flying regional planes with more than 70 seats. "If not, we will have to find other solutions," he said. These would not include using (CSR), which Lufthansa (DLH) took over this year, he added.
(CSR) will end all its code share agreement with Iberia Airlines (IBE) as of January 10.
(CSR) will double the frequency of its Zurich to New York (JFK) route from 1 to 2 flights a day on March 25th. United Airlines (UAL) will code share on the route, replacing American Airlines (AAL). Most flights will be operated with the A330-200 with some using the A340.
February 2006: Swiss (CSR) said it will end code share operations with (CSA) Czech Airlines and Qantas (QAN) from March 26, as it is set to join the Star (SAL) Alliance. Frequencies to Cairo will be increased to 6x-weekly, London City will see 7x-daily services from Zurich, while Athens and Budapest will be linked 3x-daily.
Marcel Klaus (CFO), from June 2006.
March 2006: Swiss International Air Lines (CSR) will inaugurate direct service from Zurich to Santiago (Chile) on March 26th. (CSR) will operate 5x-weekly, daily except Mondays, Fridays, with an A340-300 via Sao Paulo. (SAS) Scandinavian Airlines will code share with (CSR) on its Bangkok - Singapore service.
(CSR) and Lufthansa (DLH), continuing the integration of their schedules, will create minihubs in Sao Paulo and Bangkok from the start of the summer season on March 26, permitting passengers to transfer between the airlines for onward travel. For example, (CSR) will extend its 5x-weekly Zurich - Sao Paolo services to Santiago, while Lufthansa (DLH) will have a daily flight from Sao Paulo to Buenos Aires. The 2 westbound flights will arrive in Sao Paulo from Europe at almost the same time, enabling customers to transfer from one to the other for their onward travel within South America. The same arrangements will be made for the (CSR) and (DLH) services from Sao Paulo and Buenos Aires respectively, providing passengers with transfer connections to Frankfurt and Zurich, (DLH) said. A similar minihub will be created in Bangkok, from which passengers will have connections to Singapore, Kuala Lumpur and Ho Chi Minh City.
(CSR) has taken over Styrian Spirit flights on the Zurich - Graz and Zurich - Krakow routes through April, using Embraer ERJ-145s. Styrian operated the flights under a code share agreement with (CSR) until ceasing operations this month.
All Nippon Airways (ANA) agreed to link frequent-flier programs with future Star (SAL) alliance member (CSR) as the 1st step in a strategic partnership set to begin April 1 when (CSR) becomes a member.
(CSR), which joins the Star (SAL) Alliance next month, will code share with (SAL) member (SAS) between Switzerland and Scandinavia, as well as with Blue1 (BLF) from Zurich to Helsinki. (CSR) - Spanair (SPP) cooperation will be offered between Zurich and Barcelona and Madrid. Code sharing will be initiated with Croatia Airlines (CRH) between Zurich and Zagreb and with Darwin Airline on the Bern - London City sector. The code sharing is set to begin March 26, at which time agreements with Malev (HGA), Finnair (FIN) and Qantas (QAN) will be terminated.
SITA said a new Web-based check-in application it developed for Swissport went live with launch customer Swiss International Air Lines (CSR). Under a year-old alliance between Swissport and SITA, the ground handling company is introducing Swissport branded self-service check-in kiosks on both sides of the Atlantic that are programmed to serve up to 60 airlines. Swissport is active in 175 countries and its provision of Web-based check-in linked to (SITA)'s common use self-service kiosks means the service will be available to many small airlines that could not make the investment themselves, a spokesperson for (SITA) noted.
(CSR) will change terminals at Stockholm Arlanda and Tokyo Narita. In Stockholm, it will move into Terminal 5, where most of its future Star (SAL) Alliance partners are housed. From June 1, it will join its (SAL) partners in the upgraded Terminal 1 at Narita.
(CSR) will add 6 RJ100s to its fleet during the summer schedule to replace its last ERJ-145s.
April 2006: Swiss International Air Lines (CSR) was formally inducted into the Star (SAL) Alliance in ceremonies in Zurich as the 17th member. "With Swiss (CSR), our alliance has gained a high-quality airline with a strong brand. We now provide more choice to our customers, especially on key European and intercontinental business routes," said (SAL) (CEO) Jaan Albrecht. (CSR) (CEO) Christoph Franz called joining the (SAL) "a major milestone. It creates a comprehensive network of air services and connections for our passengers that truly spans the globe." South African Airways (SAA) will be inducted into the (SAL) alliance also, at which point the 18 members will offer in aggregate 15,500 daily flights serving 842 destinations in 152 countries. (CSR)'s Zurich base is the 11th European hub served by a Star (SAL) Alliance member.
(CSR) and Spanair (SPP), Star (SAL) Alliance partners as of Saturday, entered into a code sharing arrangement effective May 1 covering flights from Zurich and Geneva to Barcelona, Madrid, Palma de Mallorca and Malaga. All Nippon Airways (ANA) and (CSR), members of the (SAL) Alliance, will code share on Tokyo - Zurich services beginning June 2. (ANA) will place its code on 6x-weekly flights operated by (CSR). The carriers said they will explore code sharing on Japanese domestic flights going forward.
(CSR) World Cargo and Lufthansa Cargo (LUB) Charter signed a marketing and sales cooperation agreement enabling (CSR) to sell charter capacity on Lufthansa Cargo (LUB) flights.
(CSR) must seek out further cost-cutting opportunities in view of today's sky-high fuel prices, (CEO) Christoph Franz said during the Star (SAL) Alliance meeting in Johannesburg. Labor costs in particular must come down. "We require many concessions from our employees. Now it is the turn of our Airbus (EDS) pilots (FC)," he said. Negotiations with pilots (FC) are underway. Franz declined to provide specific savings targets, but said in a clear statement, "less money, more flying." (CSR) already has implemented higher productivity on its A320 fleet. For the summer schedule, the fleet will have turnaround times reduced to 30 minutes on some sectors, resulting in a +6% increase in productivity and the equivalent of 1.5 extra airplanes including improvements in the Avro fleet.
(CSR) boosted its fuel surcharge on long-haul flights to CHF106/$83.29 in each direction from CHF93. European and domestic services will see a fuel surcharge of CHF32 each way. The revised surcharges will be levied on all tickets issued in Switzerland from April 25. (CSR) last increased its fuel surcharges in September 2005.
Aviapartner signed a contract with 4 Star (SAL) Alliance members: Lufthansa (DLH), (CSR), Austrian Airlines (AUL), and (TAP) Portugal - - to provide full handling activities at Amsterdam Schiphol, effective May 1. The Brussels-based ground handler said it is "one of the largest contracts" it has signed and covers >10,000 flights per year for 3 years.
June 2006: As a result of the addition of 2 A330s to the fleet from the end of the year, Swiss (CSR) will increase long haul service as follows:
Zurich (ZRH) - New York (LX15/16) = goes daily;
(ZRH) - Miami (LX64/65) = goes daily;
(ZRH) - Riyadh - Jeddah = increases 3x- to 4x-weekly;
(ZRH) - Nairobi - Dar = increases 4x- to 5x-weekly;
(ZRH) - Sao Paulo - Santiago = increases 5x- to 6x-weekly.
In what All Nippon Airways (ANA) President and (CEO) Mineo Yamamoto described as a "great day for (ANA) and the Star (SAL) Alliance, and the dawn of a new age" for air travel in Japan, 10 of the 11 (SAL) airlines serving Tokyo Narita begin operating today from co-located facilities in the airport's Terminal 1 South Wing. (SAL) members that moved overnight into the newly rebuilt terminal are (ANA), Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), (SAS) Scandinavian Airlines, (CSR), Singapore Airlines (SIA), Thai Airways (TII), and United Airlines (UAL). Air New Zealand (ANZ), which has a code sharing relationship with Japan Airlines (JAL), remains in Terminal 2.
Bringing the carriers under 1 roof will result in international-to-international connecting times being reduced >-50% from 110 minutes to 45 minutes and create "huge opportunities" to develop domestic connections with (ANA), according to (SAL) (CEO) Jaan Albrecht. In total, the 10 airlines offer >794 weekly flights to 30 destinations in 15 countries from Narita.
Among the many 1sts in the spacious and attractive South Wing, are common "zone check-in" areas for all carriers save (SIA), with check-in areas organized by class of travel across the airlines. The hall features a record 126 common-use self-service check-in kiosks and common-use check-in desks. (ARINC) is the technology vendor for both.
Travelers on (ANA), United (UAL), Air Canada (ACN) and Austrian (AUL) can use the kiosks, which are equipped with passport readers. By year end, (SAL) expects passengers on any of the 10 member carriers to be able to check in via the kiosks. The new terminal also offers curbside check-in, a 1st for Japan, and the country's 1st baggage reconnecting facility for passengers connecting from an international to a domestic flight.
Additional and upgraded premium lounges are part of the package, as is a new pier with 8 attached airbridges. (ANA) has 4 lounges with shower facilities, which it claims is a 1st for a Japanese carrier. Its domestic arrivals lounge also is equipped with showers.
This is the 3rd and largest "Move Under One Roof" exercise for (SAL). Last year, it brought carriers at Paris Charles de Gaulle T1 together and (SAL) members at Centrair near Nagoya also are co-located.
(CSR) announced that it will expand its long-haul fleet with the lease of 2 Lufthansa (DLH) A330-200s starting with the winter timetable. Configured with 229 seats, the airplanes will replace a leased A300-600R from Hapag Lloyd (HAP). (CSR) will take delivery of the 1st A330 in mid-November and operate it to Malabo, Douala, Yaounde and Nairobi, Dar-es-Salaam. The 2nd airplane will arrive in December and add capacity on existing routes to the Americas, the Middle East and Africa from Zurich. Its long-haul fleet then will have 9 A340-300s and 11 A330-200s, plus a leased 737-700 BBJ2 in service on the Zurich - Newark route.
July 2006: Swiss International Air Lines (CSR) and the Aeropers pilots union (FC) have been unable to conclude a new labor agreement after 17 months of negotiations. Aeropers declared the existing deal expired, that talks have failed, and that a strike is possible if the carrier changes portions of the current contract. Swiss (CSR) expects its Airbus pilots to work an average maximum of 19 days per month, take 6 rather than 7.5 weeks of vacation per year and make reasonable concessions on overall remuneration. All other employee groups have made contributions in recent months toward lowering costs and increasing productivity. "We want to continue our positive development, achieve sustainable growth in our rapidly changing and highly competitive market environment and offer secure jobs," (CEO) Christoph Franz said. "To accomplish this, we need substantial contributions from all employee groups, Airbus pilots included." (CSR) said both parties demonstrated flexibility during negotiations but that a mutually acceptable solution could not be found on fundamental issues.
Later, (CSR) and the Aeropers pilots (FC) union agreed on the principles of a new 3-year labor agreement that will become effective November 1, if approved. The pilots (FC) had threatened a strike after the previous accord expired earlier this month. The parties agreed not to reveal details of the deal until it has been submitted to union members for approval.
(CSR) signed a multiyear, full-content distribution agreement with Worldspan.
(CSR) entered into a reciprocal loyalty program alliance with Jet Airways (JPL).
The Embraer E195 received certification from the National Civil Aviation Agency of Brazil, paving the way for delivery of the 1st airplane to launch customer FlyBE (BEE) later this summer. Certification by the European Aviation Safety Agency is expected to follow shortly. The airplane, which can be configured for 108 - 118 seats, is the largest member of Embraer's E170/E190 family. In addition to FlyBE (BEE)'s order for 14, Royal Jordanian (RJA) and Swiss International Air Lines (CSR) have placed firm orders.
August 2006: Swiss International Air Lines is getting rid of its final ERJ-145, replacing the 50-seat airplane an RJ-85/100 that seats 85 - 100. Swiss (CSR) operated 25 ERJs at one point, taking 1st delivery in 2000. Company officials said the ERJ was "only partially able to meet operating requirements, in view of its limited seat capacity." Last summer, (CSR) decided to standardize its short-haul operation with an all-Avro fleet.
(CSR) plans to expand its fleet with addition of 2 A330-200s scheduled for delivery late this year.
September 2006: Swiss International Air Lines (CSR) will acquire a further 2 A321s and 1 A320 next spring for its European fleet. The extra capacity will enable the carrier to provide additional feeder services for its long-haul fleet, which will add 2 A330-200s in November. (CSR) said the new airplanes will create some 250 new jobs. Its short-haul fleet comprises 6 A321s, 15 A320s, 7 A319s and 24 Avro RJ85/100s.
October 2006: Swiss International Air Lines (CSR) said that it has been forced to cancel 112 flights, or 2.7% of its operations, through October 27 because of a pilot (FC) shortage. It cancelled 11 flights last weekend. Flights to Frankfurt, Munich, Dusseldorf, Birmingham, Brussels, Milan Malpensa, and Warsaw, will be affected over the next 2 weeks. (CSR) said the decision was forced by an unusually high rate of pilots (FC) calling in sick. The carrier faced a 2-day strike September 26 - 27 by pilots flying for its Swiss European Air Lines subsidiary and cancelled 142 flights.
(CSR) will increase long-haul frequencies during the winter schedule with the addition of 2 A330-200s to its fleet. Zurich - Miami service will rise to daily from 5x-weekly. Santiago via Sao Paulo service will increase to 6x-weekly flights from 5x-, and flights to Riyadh and Jeddah will be 4x-weekly, instead of 3x-. (CSR) will return a leased A300-600 used on East African routes while boosting service to Nairobi and Dar es Salaam to 5x-weekly from 3x-.
(CSR) will increase its service from Geneva starting December 15. It will launch a daily service to Prague and boost frequencies to London City to 6x-daily from 4x-. Both services will be aboard Avro RJs.
In cooperation with Lufthansa (DLH), there will be 580 flights per week between Switzerland and Germany. (CSR) will add flights from Geneva to Hamburg and Stuttgart. To stabilize its European schedule, it will lease an F 100 from Helvetic Airways (OAW) to provide lift on its Zurich - Manchester service from October 28 until February 28. It will operate 45 airplanes during the winter schedule and its Swiss European Air Lines subsidiary will have 24.
(CSR) announced that an agreement has been reached with Aeropers, the union of the company's Airbus pilots (FC). Union members have approved the three-year accord, which will enter into effect November 1. (CSR) said the deal acknowledged both the airline's ongoing restructuring and the increasingly competitive environment. "We can't give more details about the new agreement, but it will go, of course, to more productivity [from cockpit crews]," a (CSR) spokesperson said.
The situation concerning pilots (FC) flying for Swiss European Air Lines, the carrier's Regional subsidiary, remains unclear. The (CSR) spokesperson said the 2 sides are talking about relaunching negotiations. (CSR) has had to cancel flights operated by both carriers because of pilot (FC) walkouts over the past month.
Separately, (CSR) is installing new lighter seats from Recaro on its 4 A321s and 7 A319s. A321 capacity will increase to 200 from 186 and A319 capacity will go to 138 from 126. It already has put the seats on its 14 A320s.
(CSR) will lease 2 A340-300s from Austrian Airlines (AUL). Including a previously announced lease of 2 A330-200s from Lufthansa (DLH), (CSR) will increase its long-haul fleet to 11 A330-200s and 11 A340-300s in the next several months.
November 2006: Swiss International Air Lines (CSR) said it plans to add 6 new routes from Basel, comprising 5x-weekly flights to Barcelona, 4x-weekly flights each to Nice, Prague and Budapest and 3x-weekly services each to Manchester and Warsaw; all using Avro RJ-100. Basel - Amsterdam will be reduced to 7x-weekly.
(CSR) will inaugurate nonstop service from Geneva to Valencia on March 10th. The airline will operate 3x-weekly increasing to 4x- at the end of March 2007.
(CSR) will continue its long-haul expansion with the addition of 3 A340-300s (2 ex-Austrian Airlines (AUL); & 1 ex-Air Canada (ACN)), in the next 2 years. It took 2 ex-Sabena (SAB) A330-200s last month, 1 of which entered service with the other set to begin flying in mid-December. By summer 2008, it will operate 23 long-haul airplanes. Its fleet expansion, which includes 2 A321s and 1 A320, will create 550 new jobs. (CSR) said it intends to offer daily frequencies to as many long-haul destinations as possible. 1 A340, acquired from Air Canada (ACN), will be used to increase service on existing routes. The other 2, acquired from Austrian Airlines (AUL), will be used to expand its network.
The Swiss Pilots Association (SPA), which represents Swiss European Air Lines pilots (FC), rejected the company's offer for a new labor agreement. Despite concessions on the part of Swiss European, (SPA) said it is not prepared to negotiate further on the current offer. Swiss (CSR) said the union's demands would result in a cost increase of approximately +35%. The pilots (FC) currently are flying under an interim agreement reached in April.
December 2006: Swiss International Air Lines (CSR) announced that Zurich - Tokyo Narita flights will increase from 6x-weekly to daily on February 19. 5x-weekly onward service to Los Angeles will operate 6x-weekly. Services to Santiago (via Sao Paulo) and Johannesburg, also will increase to daily next summer.
Swissport International named Philipp Joeinig Executive VP Operations; Michel Jansen Executive VP Cargo; & Adrian Melliger Head of Swissport Station Zurich.
(CSR) reached an agreement with unions representing its ground staff that provides a +1.1% salary increase, an additional 2 vacation days each year, and a 1-time payment of CHF1,200/$1,005 to be added to workers' December salaries.
(CSR) (CEO) Christoph Franz said at the Star (SAL) Alliance meeting in Istanbul earlier this month, that (CSR) no longer is in a crisis situation but that it will have to add liquidity to be safely positioned for the future. It will stay cautious in 2007 and not open any new long-haul destinations until 2008, he said. "We are not satisfied," he added. "It is not our goal to just maintain our position. We have to increase our liquidity in this more competitive environment." He said that on the cost side most improvements already have been implemented, but that "there are many things to make better" in terms of cost efficiency around the company. He cited a reduction in airplane check turnaround times from 27 to 23 days as an example.
(CSR) added its 11th A330, an A330-200, to its fleet.
March 2007: Swiss International Air Lines (CSR) said that Managing Director & Head of Sales & Marketing, Intercontinental Markets Marcel Biedermann will head (CSR)'s North and South American management operations.
April 2007: Lufthansa (DLH) reported a +€554 million/+$752.5 million net profit for the 1st quarter of 2007. (DLH) suffered a -€98 million loss in the year-ago period. The tremendous turnaround is due largely to a +€499 million gain from the sale of its 50% stake in Thomas Cook AG (JMA), along with a +€36 million profit at Swiss International Air Lines (CSR). (CSR)'s 1st-quarter revenue rose +6.8% to €4.7 billion, helping it turn the year-ago quarter's -€75 million operating loss into a +€36 million profit.
Claiming it "is assuming again the leadership in fleet modernization," Lufthansa (DLH) announced a commitment for 15 CRJ-900s and took over commitments for 30 Embraer regional jets from (CSR), now a (DLH) subsidiary. (DLH) did not indicate how it would distribute the new airplanes among its regional subsidiaries. It currently operates 145 regional airplanes including 12 CRJ-900s. Bombardier confirmed the order and said it is "subject to the negotiation and execution of a purchase agreement."
May 2007: Swiss International Air Lines (CSR) added the 5th new A320 to its fleet since autumn 2006 and completed its Airbus (EDS) narrowbody fleet expansion. It now operates a total fleet of 74.
June 2007: Swiss International Air Lines (CSR) will launch daily Zurich (ZRH) - Delhi service on November 25 aboard A330-200s and a daily (ZRH) - Shanghai Pudong flight in summer 2008. It is adding 2 A330-200s and one A340-300 this summer, and will take 2 additional A340-300s by next April.
Former (SWS) executives were acquitted of all charges in the mismanagement and fraud case stemming from the airline's October 2001 collapse. Prosecutors brought charges against 19 former executives, including its last 2 (CEO)s, Mario Corti and Philippe Bruggisser, alleging that "miserable management," that included falsifying of documents, led to the carrier's demise, leaving creditors empty-handed and -5,000 workers unemployed. But the judges presiding over Switzerland's largest-ever corporate criminal trial, ruled that the executives made decisions they thought were reasonable at the time, and did not intend to damage creditors during what was a difficult time in the airline industry. Corti faced prison if convicted.
17 months after taking over (CSR) as part of the AirTrust joint venture, Lufthansa (DLH) announced it will acquire all remaining shares in (CSR) effective July 1. (DLH) partnered in AirTrust with the Almea Foundation, which was founded by Swiss majority shareholders. AirTrust held the entirety of (CSR) as of January 2006. Since then, the integration of the two airlines "has been realized quicker and more successfully than expected," according to (DLH), which is able to transfer (CSR) from AirTrust, now that negotiations regarding traffic rights have concluded.
(DLH) said synergies generated by the merger in 2006 came to >€200 million, a figure "far higher than originally planned." (DLH) Chairman & (CEO) Wolfgang Mayrhuber said, "The (CSR) business model is a success. The airline is still heading for growth and progressing extremely well. Also, in future, (CSR) with its own brand identity will further develop its strengths and expand its locational advantage in the Swiss market."
(CSR)'s expansion plans include addition of 3 A340-300s over the next year, replacing 2 A330-200s. In addition, it announced that it will increase its 6x-weekly services from Zurich to Los Angeles, Johannesburg and Santiago (via Sao Paulo) to daily from the middle of next month. It also will offer a 5x-weekly flight to Riyadh over the summer under a wet-lease agreement with PrivatAir (PTS).
On the regional front, (CSR) is standardizing its Swiss (CSR) European fleet further by disposing of its 4 Avro RJ-85s. One already has been withdrawn. From November, (CSR) European will operate an all- RJ-100 fleet.
July 2007: Swiss International Air Lines (CSR) named former Head of Flight Operations Gaudenz Ambuehl as its new (COO).
The Carlyle Group, a private equity firm, reached a definitive agreement to acquire (ARINC) from its current shareholders, which include >12 major airlines and Boeing (TBC). (ARINC), which generates >$900 million in annual revenue, specializes in transportation communications technology, and its Air Traffic Control (ATC) support systems are used by carriers and airports throughout the world. Primary shareholders in the 77-year-old company based in Annapolis, include American Airlines (AAL), United Airlines (UAL), Delta Air Lines (DAL), Continental Airlines (CAL), Northwest Airlines (NWA), US Airways (AMW)/(USA), Air Canada (ACN), Air France (AFA)/(KLM), Lufthansa (DLH), British Airways (BAB), Mexicana (CMA), (CSR), TACA (TAC), FedEx (FED), Hawaiian Airlines (HWI), and Philippine Airlines (PAL). (AAL) said it would receive $194 million from the sale of its stake and (UAL) expects $125 million. Other carriers did not immediately disclose expected proceeds and (ARINC) did not release financial details. The company said the transaction is expected to close in the third quarter subject to regulatory approval. "This is an important step in the evolution of (ARINC)," Chairman & (CEO) John Belcher said. "We have worked very hard to find a partner, who shares our vision and believe that Carlyle's international presence, financial resources, and expertise in the aerospace, defense and communications sectors will be instrumental in the continued expansion of our business." Carlyle Managing Director & Head Global Aerospace & Defense Peter Clare said, "We believe that (ARINC) is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments." (ARINC) earned net income of +$10.2 million in 2006, a +14.3% decrease from +$11.9 million in 2005. Its annual revenue has risen steadily this decade, increasing +72.7% from $532 million in 2000 to $919 million last year.
August 2007: Swiss International Air Lines (CSR), which became wholly owned by Lufthansa (DLH) on July 1, posted a net profit of +CHF295 million/+$244.8 million in the 1st 6 months of 2006, nearly 4x- higher than the +CHF76 million reported in the year-ago period. "Our encouraging 1st-half performance strengthens our faith in our current strategic thrust," (CEO) Christoph Franz said. "These results have exceeded our expectations." He credited strong passenger and cargo demand as well as "cost management and revenue synergies" derived from its integration with (DLH) and its membership in the Star Alliance (SAL). 2nd-quarter profit rose to +CHF177 million from +CHF72 million. First-half operating revenue climbed +16.6% to CHF2.3 billion and operating profit increased to +CHF285 million from +CHF98 million. A +16.1% gain in 2nd-quarter turnover to CHF1.22 billion helped boost (EBIT) to CHF163 million from CHF75 million.
1st-half passenger numbers grew +13.4% to 5.7 million and load factor rose +1.1 points to 78.8% LF. Capacity measured in (ASK)s was up +12.9% and "was fully absorbed by market demand," Swiss (CSR) said. 2nd-quarter load factor dipped -0.1 point to 80.6% LF.
(CSR) announced that it will increase its stake in Swiss Aviation Training (SAT) to 100%, buying out the 50% held by (GCAT) Flight Academy UK. Former (CSR) (COO), Manfred Brennwald will be (CEO) of (SAT).
September 2007: Swiss International Air Lines (CSR) will start 3x-weekly, Geneva - Bucharest Otopeni service next May using A319s.
Lufthansa (DLH)'s supervisory board approved orders for 9 A330-300s and 32 A320 family airplanes. All 9 A330s and 2 A320s will be operated by Swiss International Air Lines (CSR), with deliveries starting in early 2009. The A330-300s will replace A330-200s that (CSR) currently operates. Lufthansa (DLH) will take delivery of 20 A321s, 4 A320s, and 6 A319s beginning in 2011 to operate within Europe. "We are modernizing our continental fleet with the new airplanes and expanding our leading position in our European home market," (DLH) Chairman & (CEO) Wolfgang Mayrhuber said, adding that (CSR) is "underscoring its capability to compete" with the order.
October 2007: Swiss International Air Lines (CSR) did its share to boost Lufthansa (DLH)'s group profit, posting a 3rd-quarter operating profit of +CHF190 million/+$163.1 million, nearly double the +CHF101 million, earned in the year-ago period. Revenue climbed +16.8% to CHF1.29 billion. "Our clear positioning as a quality airline, our consistent strengthening of our Zurich hub, and our gradual and sustainable expansion of our airplane fleet and our route network, are the foundations of our present success. We are very satisfied with the way our results are developing on both the passenger and the cargo transport front," (CEO) Christoph Franz said. 9-month (EBIT) more than doubled to CHF475 million from CHF199 million, as revenue jumped +16.8% to CHF3.59 billion. Swiss (CSR) said 3rd-quarter, system load factor rose +0.7 point year-over-year to 83.6% LF, as European load factor climbed +0.9 point to 77.6% LF, and long-haul load factor was up +0.6 point to 86.6% LF. It said its partnership with (DLH) was allowing it to invest "well over" CHF1 billion in long-haul fleet renewal, including the replacement of 9 A330-200s with A330-300s. A daily flight to Delhi will be launched on November 25, with service to Shanghai beginning next spring.
(CSR) will increase its commitment to its Geneva hub with an additional based A319, a new daily service to Rome Fiumicino, a new 3x-weekly flight to Bucharest Otopeni, and a 2nd daily Moscow Domodedovo service pending the rights award. On November 16, (CSR) will open a new first class lounge at the airport in addition to a new facility for Miles & More members.
(CSR) will take delivery of a 2nd former Austrian Airlines (AUL) A340-300 this quarter.
November 2007: Swiss International Air Lines (CSR) will switch from New York (JFK)'s Terminal 1 to T4 effective December 20. It will build a new first (F) and business class (C) lounge in the terminal.
December 2007: Speaking on the occasion of the launch of Swiss International Air Lines (CSR)'s new daily service to Delhi, (CEO) Christoph Franz said his carrier's acquisition by Lufthansa (DLH) not only will continue to benefit (CSR), but should serve as a model as the industry continues down the road to consolidation. Franz said that there remains space available under the Lufthansa (DLH) umbrella. "(DLH) always says that it wants to be a driver of consolidation in European aviation, and to lead a multibrand strategy. There must be space for other airlines," he said, arguing that it would be in any carrier's best interest to integrate with a solidly financed company like (DLH). Swiss (CSR) has no debt. "Thanks to the (DLH) integration, we get [financial] conditions we would never get before. Of course we have to show the owner that our expansion is justified," he said. Swiss (CSR) has been a wholly owned subsidiary of (DLH) since July, and Franz sees it as one of the few European airlines delivering adequate operating margins. "We have seen strong synergies, more than we ever expected," he revealed. "Of course we have made progress in our own restructuring process, like renegotiating supplier contracts, downsizing and harmonizing the fleet and so on." He also wants Swiss (CSR) to own more of its airplanes. It currently owns around one-third of its 73-strong fleet, and he said something closer to two-thirds would be ideal. "This will change, when the 1st of 9 new A330-300s arrives in 2009," he said. The airline also has 6 A320-200s on order. Replacement of the 20 ERJ-100s that comprise the Swiss European Airlines fleet, will be high on the agenda. "We just upgraded our ERJ-100s with new seats. We are not in a hurry to replace them," he said.
Franz said passenger growth will continue strongly in 2008. During the 1st 9 months of this year, Swiss (CSR) transported 9.1 million passengers, up +13.3% from the year-ago period. "We will grow that speed in 2008," he predicted, adding that growth should slow in 2009. But (CSR) will continue to look for new long-haul destinations; a Zurich - Shanghai Pudong service is scheduled to launch in May. "We will grow risk-consciously and we have to be a part of big traffic areas," he said.
Aviapartner Handling won a contract from Lufthansa (DLH) and Swiss International Air Lines (CSR) for provision of full handling services in Venice. The contract, effective January 1, covers some 5,000 flights per year, for both airlines combined.
A340-313X (169, HB-JMK), leased to Austrian Airlines (AUL) as (OE-LAK).
January 2008: 2007 statistics: 25.11 billion (RPK)s passenger traffic +13.8%; +13.3% capacity (ASK)s; +.3 load factor for 80.2% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "CSR-2007-STATS."
February 2008: Swiss International Air Lines (CSR) and Kuoni Travel Holding will launch a comprehensive partnership under which Swiss (CSR) will acquire Kuoni's leisure carrier, Edelweiss Air (EDE), while Kuoni will offer a range of hotel options on Swiss's website beginning next year. "This collaboration is a win/win situation for everyone involved," Swiss (CSR) CEO, Christoph Franz said. The parties agreed not to divulge financial terms, but Swiss media reported last week that Swiss (CSR) will pay nearly CHF75 million/$68.2 million for Edelweiss (EDE). The carrier was launched in 1995 and will continue to operate as a separate airline with its own fleet, crew (FC)/(CA), the present management team, and the remaining 240 personnel. Kuoni will purchase capacity on Swiss (CSR) and Edelweiss (EDE) leisure flights. Edelweiss (EDE) operates 3 A320s and1 A330-200 and transports around 700,000 passengers annually.
JetBlue Airways (JBL) announced the appointment of Swiss International Air Lines (CSR) (CEO) Christoph Franz to (JBL)'s board, effective immediately. Franz will represent Lufthansa (DLH), which completed its 19% stake purchase in JetBlue (JBL) last month.
Lufthansa (DLH) will launch 3x-weekly, Frankfurt - Malabo on April 1 aboard an A330-300. The flight will continue to Abuja. Malabo is (DLH)'s 15th African destination. (DLH) partner (CSR) will discontinue its Malabo service and increase frequencies to Douala and Yaounde. Swiss (CSR) signed several (ACMI) wet-lease contracts for its upcoming summer schedule. (DLH) regional partner, Contact Air will operate flights from Zurich to Warsaw, Venice and Stuttgart using F 100s, while Helvetic Airways (OAW) will fly F 100s for (CSR) to Budapest, Manchester, Birmingham, and Brussels. UK-based, Flightline (FLT) will fly Zurich - Prague.
Thales (THL) will provide US Airways (AMW)/(USA) and Swiss International Air Lines (CSR) with its Topflight Flight Management System (FMS) for Airbus (EDS) airplanes. Features include undo functions, multi-revision temporary flight plan capabilities, and a versatile display system.
A340-313X (179, C-FYLU), Air Canada (ACN) leased.
March 2008: Lufthansa (DLH) reported a net profit of +€1.66 billion for 2007, more than double the +€803 million earned in the prior year, on a +13% rise in revenue to €22.42 billion, both records for the German airline group as results were boosted by a book gain of about €503 million from the sale of its shares in Thomas Cook (JMA). Chairman & (CEO) Wolfgang Mayrhuber noted that the results were achieved despite high fuel prices, economic uncertainty, and stiff competition. They include Swiss International Air Lines (CSR) earnings for the 2nd half of 2007, the 1st time those numbers have been incorporated into (DLH)'s full-year figures. (DLH) said it achieved "cost and revenue synergies" with Swiss (CSR) totaling €233 million. Traffic revenue was €17.6 billion, up +14.4%. The company attributed the revenue rise both to the effects of consolidation with Swiss (CSR) and to growing passenger demand. But consolidation also added to expenses, particularly in the areas of materials and personnel. Overall expenses rose +10.8% to €22.5 billion. Fuel costs were €3.9 billion, up +14.7%. Operating profit climbed +63.1% to +€1.38 billion from +€845 million.
(DLH) announced the payment of an approximately CHF269 million/$267.5 million out-performance option to the former majority shareholders of (CSR). Combined with the fee (DLH) paid for approximately 15% of (CSR)'s equity in 2005, the price for the complete acquisition now stands at some CHF339 million. (DLH) said the out-performance option payout level depended on the performance of (DLH) shares, compared to those of British Airways (BAB), Air France (AFA)/(KLM), and Iberia (IBE). (DLH) shares outperformed their competitors by 44.7% during the reference period, it said, adding that "the success of (CSR) in that period has contributed appreciably to this positive development."
A340-313X (175, HB-JMN), Air Canada (ACN) leased, was (C-FYLG).
April 2008: Lufthansa (DLH) continues to soar despite the difficult environment, posting a +€57 million/+$90.9 million 1st-quarter profit that compared quite favorably to the +€55 million it reported in the year-ago quarter minus a €449 million book gain on the sale of its stake in Thomas Cook (JMA). The (DLH) Group enjoyed a +19.1% year-over-year increase in revenue to €5.6 billion and a 23.7% lift in operating profit to +€188 million from +€152 million. (CSR) contributed +€52 million to the operating result, (DLH) said. It said it "remains confident that the Lufthansa (DLH) Group's 2008 operating result will follow up on the operating result from the previous year, and is looking to improve it further," which "appear[s] possible, despite the fact that the worldwide economic conditions have worsened perceptibly." A further erosion in the market or in its ability to compensate for high fuel prices would alter that forecast, it said.
(DLH) transported 16 million passengers during the period, up +29.8%. Traffic rose +29.3% to 34.83 billion (RPK)s against a +29% hike in capacity to 45.13 billion (ASK)s, lifting load factor +0.2 point to 77.2% LF.
Results elsewhere in the company included a +€51 million profit at Lufthansa Cargo (LUB), up from +€9 million in the year-ago quarter; a +9.2% rise in segment profit at Lufthansa Technik (LTK) to +€71 million, and a nearly threefold improvement at Lufthansa Systems (LHS) to +€11 million.
Responding to the announcement, the ver.di union said it would negotiate for a +9.8% salary increase for the 60,000 (DLH) ground and cabin crew (CA) employees it represents, when discussions with the company begin June 4. Parties will be negotiating a 1-year contract.
Lufthansa (DLH) Systems will provide Swiss International Air Lines (CSR) with its Lido eRouteManual electronic navigation charts under a five-year deal. Layout, colors and symbols are identical to the paper-based charts (DLH) has used since 2004.
US Airways (AMW)/(USA) and Swiss International Air Lines (CSR) launched a code share deal under which Swiss (CSR) is placing its code on (AMW)/(USA)'s Philadelphia - Zurich service, and (AMW)/(USA) is placing its code on (CSR) flights from Zurich to Geneva, Nice, Athens, Vienna, Dusseldorf, Hanover, Nuremberg, Stuttgart, Luxembourg, and Bucharest Otopeni.
(CSR) elevated Bernd Bauer to Head of Sales & Marketing Europe. He succeeds Alexander Arafa, who became head of Cabin Crew.
May 2008: Swiss International Air Lines (CSR) launched daily, Zurich - Shanghai Pudong.
Swiss International Air Lines (CSR) unveiled new business class (C) seats to be installed on its long-haul airplanes beginning next year, part of the airline's concerted effort to distinguish itself from parent Lufthansa (DLH). (DLH) recently completed its purchase of Switzerland's flag carrier (CSR), which now is a wholly owned subsidiary of (DLH). But (CSR) (CEO) Christoph Franz said in Zurich that it is important for the 2 airlines to maintain separate identities. While (CSR) has transitioned to (DLH)'s frequent-flyer program and takes advantage of its strong reputation with manufacturers. "We as Swiss could never get the same airplane purchasing conditions as Lufthansa (DLH)," Franz said the smaller carrier is "trying to develop our own brand," he insisted.
Franz explained that deeper integration would generate "one time only" cost savings, while remaining separate allows each carrier to develop a distinct product and push the other to improve. "Are you aiming at innovation or are you just trying to reduce overhead on a onetime basis?" he asked. "I think it's a fantastic proposition that passengers have two choices and two interpretations of quality."
Further integration could be problematic, given the airlines' different cultures, he said. "I look at the Delta (DAL)-Northwest (NWA) merger, where [the (NWA) brand] is going to disappear, where they're going to try to combine everything and integrate pilot (FC) seniority, and I would have to ask myself, 'Is it really worth doing all this? Is this really the way forward?' I think you have to integrate only where it makes sense." He pointed to the new lie-flat business (C) class seats as an example of Swiss (CSR)'s innovation and brand enhancement. Produced by Switzerland's Lantal, the seats feature a 2-m-long air-filled cushion that the passenger can make harder or softer. (CSR) will begin installing them on A340s and A330-300s (of which it will begin taking delivery next year) in 2009 and plans to have its entire long-haul fleet of 26 airplanes equipped with 45 to 47 of the seats by 2011. The A340s/A330-300s also will feature 8 1st-class (F) seats and 164 to 183 economy (Y) seats. Franz said the high number of business-class (C) seats is important, because premium seating "is not just icing on the cake. Business (C) is a pillar that's just as valuable to us as economy (Y) seats." Added Head of Product Markus Binkert: "We want to position ourselves as a premium airline. There is a high share of corporate travelers" flying to/from Zurich and Geneva.
June 2008: TAM (TPR) and Swiss International Air Lines (CSR) signed a Memo of Understanding (MOU) establishing a code share agreement and loyalty program link-up. It is expected to be implemented in the second half of this year.
(CSR) named Peter Spring (CCO) of its Edelweiss Air (EDE) subsidiary, effective August 1.
Travelport Global Distribution System (GDS) signed agreements with Lufthansa (DLH) and Swiss (CSR) that assure that the full content of both airlines will be made available to all Galileo and Worldspan users worldwide through 2011. Under the new agreements, all (GDS) surcharges will be waived for Travelport (GDS) travel agencies who choose to participate in the new Lufthansa (DLH) and Swiss (CSR) Preferred Fares programs, soon to be launched in Germany, Austria, Switzerland, and Lichtenstein. The agreements take effect July 1, when Lufthansa (DLH) and Swiss (CSR) implement the Preferred Fares plans. Lufthansa (DLH) shocked agents in the affected countries when it announced the program in January. The plan will increase fares booked through (GDS)s for flights departing German and Austria, beginning July 1. The increases are €15 for one-way flights, and €30 for roundtrips. Lufthansa (DLH) will continue to offer its pre-hike fares after July 1 for direct sales through its Website, call center, ticket counter and its dedicated travel agent Website, http://www.lufthansaagent.com. Lufthansa initially said the lower fares would be made available through (GDS)s only, when users agree to pay a fee of €4.90 plus VAT per coupon. The new policy applies regardless of where the flight is booked; for example, a travel agent in the UK booking a flight departing Germany or Austria would be subject to the policy. Similar programs go into effect in Switzerland and Liechtenstein on October 1. Since the program was announced, Lufthansa (DLH) and Swiss (CSR) have also signed agreements with Sabre that protect its subscribers from the fare increases and surcharges. It is not known what, if any, concessions Sabre and Travelport made to gain the agreements. The remaining unprotected travel agents are subscribers to Amadeus, the largest (GDS) in Germany, but help may be on the way. Amadeus and Lufthansa (DLH) issued a joint statement noting their "long history of working successfully together both on travel distribution and the implementation of major Information Technology (IT) projects" and that their relationship is "based on a principle of long-term partnership." The companies said their joint aim is "to reach a long-term agreement leading to competitive conditions for Amadeus travel agents which extends well into 2009 and beyond, and both companies are working to achieve that objective" before July 1.
July 2008: Swiss International Air Lines (CSR) announced the acquisition of Servair Private Charter, which it said will operate as a wholly owned, Zurich-based subsidiary called Swiss Private Aviation (SPA) and "should establish the Swiss Group in the business aviation sector and provide a platform for operating the Lufthansa Private Jet fleet." (SPA) will concentrate on offering airplane management services to private clients and companies, and operating commercial charters. From spring 2009, the (DLH) Private Jet fleet will be operated under (SPA)'s Ait Operator Certificate (AOC).
(CSR) will enhance its winter schedule October 26 - March 28, 2009, with a 9th daily, Zurich (ZRH) - London City flight, a 2nd daily (ZRH) - Istanbul Ataturk, the switch of Valencia flights to (ZRH) from Geneva, and a new Geneva - Budapest service.
Swiss International Air Lines (CSR) took delivery of its 15th A340-300. The former Air Canada (ACN) airplane joins a fleet of 24 wide bodies including 10 A330-200s.
August 2008: The Lufthansa (DLH) Group released details of its 2nd-quarter performance, confirming both the +€345 million/+$541.6 million profit that fell -21.2% year-to-year and the significant contributions of its Swiss International Air Lines (CSR) subsidiary.
Group revenue rose +20% to €6.47 billion, and operating profit slipped -6.2% to +€530 million, from +€565 million in the 2nd quarter of 2007. Meanwhile, the company continued to deal with the strike organized by the ver.di union and announced it would operate an amended schedule, that would result in the cancellation of 10% of its domestic and European flights. It canceled 82 flights, including 12 long-haul.
Segment results were reported for the half-year, during which the group as a whole posted a +€402 million profit, that represented a -59.5% plunge from the +€992 million earned the year before, when the sale of (DLH)'s stake in Thomas Cook (JMA), boosted the bottom line.
The Passenger Transportation segment reported a +€348 million profit, down -27.8% year-over-year. Revenue was up +28% to €8.9 billion. Swiss (CSR)'s results confirmed its crucial role in (DLH)'s continuing profitability, as the subsidiary reported 6-month (EBIT) of CHF262 million/$252.7 million, down -15.8% compared to the year-ago period, but accounting for nearly half the group result. Swiss's revenue rose +10.9% to CHF2.56 billion.
All (DLH) airlines flew a combined 75.09 billion (RPK)s traffic, during the 1st half, up +28.3%, against a +28.6% rise in capacity to 95.87 billion (ASK)s that lowered load factor -0.2 point to 78.3% LF.
The group's other reporting segments were profitable as well: Lufthansa Cargo (LUB) posted a +€126 million profit, more than triple the year-ago result; Lufthansa Technik enjoyed a +22.4% profit increase to +€164 million; Lufthansa Systems was ahead +21.4% to €17 million; (LSG) Sky Chefs was up +20.1% to €43 million; the service and financial companies segment was down -70.8% to €47 million.
(CSR) and its Edelweiss Air (EDE) subsidiary reached an agreement allowing (CSR) customers to book seats on (EDE) flights to 15 destinations from October 26. Established in 1995, (EDE) operates as an independent entity within the Swiss group with 3 A320s and 1 A330-200.
November 2008: Air Canada (ACN) will launch daily, Montreal - Geneva flights June 1 aboard a 767-300ER. Swiss International Air Lines (CSR) will code share.
December 2008: Swiss International Air Lines (CSR) plans to add San Francisco, Abu Dhabi, and Beijing to its network as soon as the industry downturn concludes, Director External Relations & Alliances Ignazio Strano said at the Star Alliance (SAL) board meeting in Chicago. (CSR) also is evaluating closer cooperation with fellow (SAL) member Austrian Airlines Group (AAG), which will be acquired by (CSR) parent, Lufthansa (DLH). (CSR) will increase transfer flights to Eastern Europe via Vienna, while "(AAG) can increase its cooperation from Austria via Zurich to the (CSR) long-haul network," Strano said. Also under consideration is a joint venture between (AAG) and (CSR) on routes between the two countries similar to that which exists between (AAG) and (DLH).
Libyan authorities rescinded permission allowing (CSR) to serve Tripoli. A Swiss spokesperson said (CSR) was informed that "technical reasons related to a project for Tripoli airport" was the cause, although widespread speculation has pointed to strained relations between the countries that began when a son of Libyan leader Muammar Gaddafi was arrested last summer in Geneva.
January 2009: Swiss International Air Lines (CSR) presented its new 1st class (F) product in Zurich, part of a CHF1 billion ($876.6 million) rollover of its 25-strong wide body fleet that will include replacement of 9 A330-200s with the same number of A330-300s. (CSR) has decided to focus on premium passengers as it attempts to carve its niche inside the Lufthansa Group. Asked if it was wise to invest in a new product during difficult times, (CEO) Christoph Franz said, "Luckily, we are in a situation where we can do that. Aviation remains a forward-looking market. That's why we have to invest in long-term projects." However, he said that (CSR) is seeing "a clear decline in our premium classes." That fall follows several years of growth. Between 2002 and 2006, (CSR) enjoyed a +40% surge in 1st (F) and business (C) class traffic.
The new 1st (F) class product will enter service on the 1st 3 new A330-300s, which are scheduled for delivery at the start of the summer schedule. The 9th airplane, part of a September 2007 order, is due in mid-2011. The A330-300s also will feature a revamped economy (Y) class. (CSR) said its investment in the new 1st (F) class will reach "lower double-digit million" Swiss francs. Planning and design took some 2 years and the product will be available initially on North Atlantic routes. Each A330 will feature 8 1st (F) class seats.
Franz said he was comfortable with the investment in part because he is expecting a profitable year. "(CSR) had been profitable. It is profitable and it will be in 2009," he claimed. (CSR) will "watch our capacity closely" and he said the increasingly crowded company, with additions like Brussels Airlines (DAT)/(EBA), Austrian Airlines (AUL) and Lufthansa Italia, will offer competition "that keeps us fit. We can exchange information with each other. These are new opportunities for us." He acknowledged that carriers around the world have been hoping to boost premium traffic through cabin upgrades but said (CSR)'s new offering will maintain its "strong position in this segment." Franz expects to add +300 new employees this year, mostly cabin crew (CA). (CSR) transported 13.5 million passengers in 2008, up +10.3% on the prior year.
(CSR) will launch a 4x-daily, Zurich - Lyon service on March 29 using RJ-100s.
(CIT) Aerospace (TCI) announced the lease of 1 A320-200 to Swiss International Air Lines (CSR). The airplane is powered by (CFM56-5B4/P)s and scheduled for delivery in April.
February 2009: Swiss International Air Lines (CSR) flew 2.14 billion (RPK)s traffic in January, up +4.3% (YOY). Capacity climbed +6.3% to 2.96 billion (ASK)s and load factor fell -1.4 points to 72.9% LF.
March 2009: The Lufthansa Group concluded a volatile 2008 with a +€599 million/+$759.8 million net profit, down -63.8% from the hefty +€1.66 billion earned in 2007, and admitted that it expects declines in passenger numbers, revenue and operating profit this year. While the company said that "there is the potential for a stabilization of revenue and earnings" in 2010 "in the event of an economic recovery," it nevertheless is "observing current developments carefully" and will implement a number of measures to help negotiate the downturn, Chairman & (CEO) Wolfgang Mayrhuber said. It also is committed to growth, as shown by the signing of an order for 30 Bombardier CSeries airplanes attests.
Group revenue rose +10.9% year-over-year to €24.87 billion on a +13.8% lift in traffic turnover to €20 billion. Profit from operating activities sank -1.7% to +€1.35 billion from the +€1.38 billion reported in 2007. The group's (CSR) subsidiary reported 2008 (EBIT) of CHF507 million/$438.7 million, down -6.5% year-over-year.
The Passenger Transportation segment posted an operating profit of +€722 million, down -12.6% year-over-year. (CSR) transported 70.5 million passengers, up +12.2%, and load factor fell -0.9 point to 78.9% LF. Lufthansa Cargo (LUB)'s operating profit rose +20.6% to +€164 million and Lufthansa Technik (LTK)'s increased +2% to +€299 million. (CSR) has deactivated -20 airplanes in response to falling demand. "The size of these airplanes varies between the Bombardier CRJ200 and the A300-600, but these 2 types are the most affected ones," Mayrhuber said. (LUB) has parked 4 MD-11Fs. The result will be a -0.5% reduction in capacity across the network in 2009, with no plans to cut any destinations. No layoffs are planned either. "We are evaluating short work time measures in all areas of the company and have plans immediately available if it is necessary," Mayrhuber said.
To counter falling business class traffic, (DLH) is reconfiguring some cabins. Business class (C) on some 747-400s will be reduced to 60 seats from 96, lowering (ASK)s by -6% per flight. Moveable dividers can cut A340 business class (C) to 36 seats from 48. "This process will be not happening on all our long-haul airplanes. We will start reconfiguration during the summer," Mayrhuber said, adding that there will be no changes to the first class (F) cabins and that all-business-class (C) flights operated by PrivatAir (PTS) will continue.
(DLH)'s role in airline consolidation, however, will not. "There are many offers from northern and southern Europe, but there are no acquisitions planned from our side," he concluded. Meanwhile, (DLH) and the (UFO) cabin crew (CA) union reached a deal that will avert a strike. (DLH) agreed to a +4.2% wage increase through next February, among other terms.
Aviapartner Handling signed a contract with Swiss (CSR) to provide full handling services in Lyons starting March 29.
April 2009: Swiss International Air Lines (CSR) (CEO), Christoph Franz confirmed that passenger numbers in 1st (F) and business (C) class dropped at a double-digit rate during the past several months, leading the airline to park 1 A340-300 until summer. "This is equivalent to a -6% drop in long-haul capacity, that we originally planned for the summer of 2009," Chief Network & Distribution Officer Harry Hohmeister said. If the downturn continues, Franz said (CSR) conceivably could ground more airplanes. "But then you ruin your network," he conceded.
(CSR) already has reduced capacity in terms of frequencies but has insisted on maintaining its entire network. Franz said overall seat capacity has been cut by <10%. He did not offer further details, but said that while it is too early to predict when demand will hit bottom, there appear to be signs that the decline is passenger numbers is losing momentum. (CSR) management holds scheduling meetings to discuss adjustments in capacity every 2 weeks. "(CSR) is healthy and well-prepared for a difficult period," he said.
Parent, the Lufthansa (DLH) Group has implemented short-time work for some employees but (CSR) continues to maintain its workforce for the time being. Franz confirmed that it can impose short-time work if need be. However, it cannot adjust cabin sizes as easily as (DLH), which has reduced business (C) class seats on some airplanes in exchange for a larger economy (Y) cabin. (CSR)'s long-haul cabins feature fixed layouts and Franz said the pressure now is on (CSR)'s sales staff, "which has to sell the product."
He was speaking aboard a flight from Zurich to New York (JFK) on (CSR)'s 1st Rolls-Royce (RRC) (Trent 772B-EP)-powered A330-300. It has ordered 9 of the type and expects to take delivery of 3 more this year, including the 2nd in June. It will replace its A330-200 fleet by the end of 2010.
Asked in Zurich if the time is right to add new airplanes, Franz said, "The time is right to be ready for the next upturn. And to finance the A330-300 ourselves makes us proud." Hohmeister confirmed that (CSR) is targeting a profitable 2009.
A330-343E (1000, HB-JHA "Schwyz"), delivery - - SEE ATTACHED PHOTO - - "CSR-A330-343-2009-04". These airplanes are being assigned to services from Zurich to New York (JFK), Dubai, Mumbai, and Delhi.
May 2009: Swiss (CSR) WorldCargo plans to implement short-time work starting June 1 for around 100 employees. In the 1st 4 months of this year, cargo load factor dropped -18.4 points-year-over-year to 66.8% LF. In April, it fell -20.6 points.
(CSR) named Holger Hatty to the management board as Chief Commercial Officer (CCO) effective July 1. He previously served on the executive board of Lufthansa (DLH) and was in charge of strategy, alliances and holdings, network management, Information Technology (IT) and purchasing.
June 2009: Air Canada (ACN) launched daily, Montreal - Geneva service aboard a 767-300ER. Swiss International Air Lines (CSR) is code sharing.
A330-343E (1018, HB-JHB), delivery.
July 2009: Swiss International Air Lines (CSR) launched 2x-daily, Zurich - Oslo Gardermoen service aboard an A319. Under a code share agreement, (SAS) will operate the route 6x-weekly.
A330-343E (1029, HB-JHC), delivery. A330-200 leased to Strategic Airlines (STC).
August 2009: Lufthansa Systems will run the most significant components of Swiss International Air Lines (CSR)'s Information Technology (IT) infrastructure beginning in 2010. "By outsourcing central data center services to Lufthansa Systems, we can cut costs without compromising our high standards of quality, reliability and flexibility," (CSR) said in a statement. The outsourcing agreement covers migration and operation of >100 business-critical applications on a variety of operating systems. These include (IT) solutions for controlling flight operations and crew deployment, operation of the Swiss.com website and applications used for planning airplane maintenance.
SR Technics (SWS) said Edelweiss Air (EDE), a (CSR) subsidiary, extended its existing full-support contract covering (EDE)'s fleet of A320s for an additional 39 months.
A330-343E (1026, HB-JHD), delivery.
September 2009: Lufthansa (DLH) said that award miles earned on its and subsidiary, Swiss International Air Lines (CSR)'s frequent-flyer programs can be used for "voluntary carbon offset donations." (DLH) and (CSR) have expanded their carbon dioxide compensation program "to allow passengers the opportunity to counterbalance their individual share of the carbon emissions generated during their flight." Previously, (DLH) allowed passengers to donate cash voluntarily to the "myclimate" foundation in Switzerland to help offset their share of a flight's CO2 emissions. Passengers can calculate CO2 footprints and arrange for cash or frequent flyer carbon offsetting at both airlines' websites.
October 2009: Swiss International Air Lines (CSR) September 2009 longhaul (RPK) traffic fell -10%, on -11% less capacity (ASK).
(CSR) will launch a 2x-weekly service between Geneva and Manchester on December 20.
November 2009: Swiss International Air Lines (CSR) flew 2.5 billion (RPK)s traffic in August, a -0.2% fall year-over-year. Capacity dropped -5.1% to 2.9 billion (ASK)s and load factor rose +4.2 points to 86.2% LF.
Lufthansa (DLH) subsidiary, Swiss International Air Lines (CSR) reported a +€47 million/+$69.4 million third-quarter operating result, a -60.5% decrease from the +€119 million earned in the year-ago period, and expects to post a full-year profit. (CSR) carried 3.7 million passengers in the quarter, up +1.8% year-over-year, although it suffered a -3.5-point fall in load factor to 69.5% LF. Still, (CEO) Harry Hohmeister believes (CSR) is well positioned compared to its competitors. "We see now the positive results of our tight and strict cost management," he said. "(CSR) is not a paper tiger anymore. It has become a real tiger."
(CSR)'s 9-month operating profit of +€113 million compared to a +€373 million surplus in the year-ago period. It will continue to focus on operating with a lean cost structure. "For 2010, we have to be even better than this year," Hohmeister said. "I do not see a light at the end of the tunnel. Our airplanes are full, but the yields are down." (CSR) will not, however, implement a la carte charges like new checked baggage fees or charges for booking with a credit card. "We will not change our philosophy. I would not have a good feeling if passengers had to pay CHF15/$14.66, for example, to check in their luggage," he said. Change will come on the cost side, and perhaps with new destinations in China, India or North America.
December 2009: Swiss International Air Lines (CSR) will launch 6x-weekly, Zurich - San Francisco service on June 2 aboard a 3-class A340-300.
(CSR) named Zurich Airport Operations Director Rainer Hiltebrand to succeed Gaudenz Ambuhl as Chief Operations Officer (COO) next May.
Amadeus announced long-term, full content distribution agreements with Lufthansa (DLH) and its Swiss International Air Lines (CSR) subsidiary. The deal takes effect March 1 and runs through 2014.
A330-223 (299, HB-IQK), ex-(VN-A374) and A330-343E (1084, HB-JHE), deliveries.
January 2010: Swiss International Air Lines (CSR) flew 2.31 billion (RPK)s traffic in December, a +2.4% increase year-over-year. Capacity fell -3.5% to 2.85 billion (ASK)s, lifting load factor +4.7 points to 81% LF.
(CSR) is to open a new USA connection with services to San Francisco (SFO), operating 6x-weekly from Zurich to (SFO) from June operated by A330/A340 airplanes. (CSR) will also increase frequencies to Brazil, Canada, and India.
March 2010: Lufthansa (DLH)'s full-year result, which included an €8 million/$11 million operating loss by the Passenger Airline Group, was buoyed slightly by the +€93 million operating profit posted by its Swiss International Air Lines (CSR) subsidiary, the most successful carrier in the (DLH) stable.
(CSR)'s performance contrasted with the -€293.9 million operating loss at Austrian Airlines (AUL), a -€78 million deficit at bmi (BMA) and a +€24 million profit reported by Germanwings (RFG). The Lufthansa (DLH) mainline and affiliated regionals lost -€107 million. Brussels Airlines (DAT)/(EBA), 45% owned by Lufthansa (DLH), was not included in the company's full-year financials released last week.
(CSR)'s profit was down -68% from the year-ago surplus of +€291 million on a -14.3% decline in revenue to €2.77 billion. Passenger numbers rose +2.4% to 13.8 million, and load factor dipped -0.2 point to 80.1% LF. The airline said it "intends to improve earnings again in 2010. This is not solely to be achieved by further cost savings but also by higher revenue."
Austrian (AUL), which was merged into (DLH) in September, had a €31 million impact on the group's operating result. On its own, the negative (EBIT) was narrowed 5.8% from a -€312.1 million operating loss in 2008. Revenue dropped -20.3% to €1.96 billion and net loss reached -€324.9 million, improved from a -€429.5 million deficit in 2008. Passenger numbers were off 10.2% to 9.9 million, on a -11.2% cut in seat capacity. Load factor slipped -0.9 point to 74% LF. (AUL) intends to have positive cash flow this year and is targeting an operating profit in 2011.
Bmi (BMA)'s €78 million impact on (DLH)'s bottom line reflects its contribution since joining the group in July. Through the 6 months ended September 30, 2009, (BMA) reported an operating loss of -£111 million/-$168.7 million. (DLH) said (BMA)'s mainline fleet will be cut to 30 airplanes from 39, while bmibaby (BMI)'s will fall to 14 from 17. It said it "anticipates a further operating loss in 2010."
Finally, Germanwings's (RFG) operating profit of +€23.9 million marked a +300% improvement from the 2008 result. Revenue declined -7.6% to €580 million as (RFG) cut 5 A310s from its fleet. Passenger numbers decreased -6% to 7.2 million. It now operates 26 A319s.
April 2010: INCDT: A Swiss International Air Lines (CSR) A340-313X (CFM56-5C4) (154, /96 HB-JMM) had a failure of its tires on taxiing at Hong Kong airport, which caused damage to its engines and underside.
A330-343E (1089, HB-JHF), delivery.
May 2010: Swiss International Airlines (CSR) will commence its new non-stop service between Zurich and San Francisco on June 2nd. To mark the event, (CSR) has come up with a "first" in its corporate history: one of its A340s will be used and sporting a colorful and flowery design.
June 2010: Swiss International Air Lines (CSR), a (DLH) Group subsidiary, flew 2.45 billion (RPK)s traffic in May, a +12.3% increase year-over-year. Capacity jumped +4.5% to 3.03 billion (ASK)s, as load factor rose +5.7 points to 80.9% LF.
(CSR) took delivery of its 7th A330-343 (1101, HB-JHG). (CSR) expects its last 2 A330-300s on order for delivery to arrive in August and December, respectively. The A330-300s are replacing Swiss's A330-200s.
July 2010: Swiss International Air Lines (CSR) flew 2.59 billion (RPK)s traffic in June, a +10.6% increase year-over-year. Capacity jumped +8.2% to 3.06 billion (ASK)s and load factor rose +1.9 points to 84.6% LF.
August 2010: Swiss International Air Lines (CSR) flew 2.79 billion (RPK)s traffic in July, a +9.7% increase year-over-year on a +8.6% rise in capacity to 3.2 billion (ASK)s. Load factor was up +0.8 point to 87.2% LF.
Swissport will provide ground handling for (CSR) at Zurich, Geneva, and Basel through 2015 under a contract signed this month. Annual volume is some 64,000 flights for which Swissport will supply all passenger and baggage handling services, all ramp services, de-icing and "various further airport services and customer processes."
A330-343E (1145, HB-JHH), ex-(F-WWYD) delivery.
September 2010: Swiss International Air Lines (CSR) flew 2.76 billion (RPK)s traffic in August, a +6.8% increase year-over-year on a +8% jump in capacity to 3.20 billion (ASK)s. Load factor fell -1 point to 86.3% LF.
The Lufthansa Group announced that, as expected, Christoph Franz will succeed Wolfgang Mayrhuber as Chairman & (CEO) of the Lufthansa Group. Carsten Spohr will succeed Franz as (CEO) of Lufthansa German Airlines (DLH) and has been appointed to the group’s Executive Board, and Karl Ulrich Garnadt was named Chairman & (CEO) of Lufthansa Cargo AG (LUB).
(DLH), the largest airline company in the world by revenue, said that Mayrhuber had successfully laid decisive foundations for the future of the company with the expansion of the Star Alliance (SAL), the establishment of the airline group and the development of new markets. “The quality of his leadership could ultimately be seen in the way he successfully steered Lufthansa (DLH) through various crises that the group managed to overcome while maintaining orientation towards quality and without having to sustain any major job losses,” it said.
Franz began his career at (DLH) in 1990. He moved to Deutsche Bahn AG in 1994 and returned to the group in 2004, when he was appointed (CEO) of Swiss International Air Lines (CSR). In 2009, he was named deputy Chairman to Mayrhuber.
Mayrhuber congratulated his successor saying that, “With [Christoph] Franz at the helm and his broad wealth of experience, foresight and determination to implement change, our company will continue to be able to react to future challenges with the necessary speed and flexibility.”
Lufthansa (DLH)’s Supervisory Board has approved the acquisition of 40 Airbus (EDS) airplanes worth approximately US$4.3 billion. These airplanes are destined for Lufthansa (DLH), plus 2 of the Group’s subsidiary airlines: SWISS (CSR) and Germanwings (RFG). The orders comprise: 20 A320 Family airplanes and 3 A330-300s for Lufthansa (DLH); 4 A320 Family airplanes and 5 A330-300s for SWISS (CSR); and 8 A319s for Germanwings (RFG).
October 2010: Swiss International Air Lines (CSR) flew 2.61 billion (RPK)s traffic in September, a +11.8% leap from the year-ago month. Capacity rose +10% to 3.06 billion (ASK)s as load factor grew +1.4 points to 85.2% LF.
Swiss International Air Lines (CSR) on October 19 carried its 100 millionth passenger, on a flight departing Zurich.
(CSR) announced it will operate an additional +130 weekly flights this winter compared to the year-ago period, owing to strong market demand. In total, it will offer 2,894 weekly flights serving 72 destinations in 39 countries with a fleet of 87 airplanes (including eight that are wet-leased).
Compared to the prior-year period, European flying will increase by +6%, while the intercontinental network will see its capacity raised by +15%.
Beginning December 17, (CSR) will add a 3rd (ZRH) – Stockholm Arlanda (ARN) frequency and will launch 2x-daily, (ZRH) – Valencia and (ZRH) – Belgrade services. (CSR) will add 2 daily flights on its Geneva (GVA) – Madrid route. (CSR) will also launch 3x-daily. (GVA) – Barcelona (BCN) service.
(CSR) will launch 2 additional (ZRH) – Delhi weekly flights and will add an additional weekly flight on its (ZRH) – Mumbai service, establishing daily service to both destinations. It will also launch daily service to (ZRH) – Bangkok (BKK). (CSR) will reduce its Zurich – Shanghai Pudong service by 1 weekly frequency during the winter period.
November 2010: Swiss (CSR) WorldCargo will begin to market the belly capacity of Edelweiss Air (EDE) service to Mauritius, Kilimanjaro, Goa, Pristina, Skopje, and Puerto Playa during the winter season.
December 2010: Swiss International Air Lines (CSR) (CEO) Harry Hohmeister said at the Star Alliance (SAL) meeting in Queenstown, NZ that “2011 will be the year of consolidation for us,” noting, “We will not add new long-haul routes [but will] consolidate against the current trend in the industry.” Hohmeister said he fears that “many carriers [will] jump on the train of the current economic situation and extend their long-haul network,” but emphasized (CSR) will instead “focus and concentrate on that what we have.”
He commented that one reason airlines count on long-haul flights is because intra-European flights are “nearly impossible” to operate profitably. He said (CSR) is aiming for riskless growth, meaning a selected increase of frequencies throughout the network, including its Geneva hub, which could see more capacity. “One remaining question is how the competition will develop and how much pressure we feel from Far East and Middle East carriers,” he said, noting the European network remains under pressure for all airlines, but “in our case it becomes more difficult as we face a strong impact from the Euro/Swiss Francs currency parity compared to other airlines.” Hohmeister said (CSR) will focus on controlling costs. “An airline today can be run profitably just with flexibility, speed and cost management,” he asserted.
A321-231 (4534, HB-IOM), ex-(D-AVZL), A330-343 (1181, HB-JHI), ex-(F-WWKM), deliveries.
January 2011: Swiss International Air Lines (CSR) can use Russian airspace again for its flights to the Far East following the lifting of a ban that was implemented in May 2010. Russian aviation authorities imposed the ban after the Swiss Ministry of Finance fined Russian billionaire Viktor Vekselberg for allegedly violating stock market regulations. Vekselberg was legally cleared last September.
(CSR) can now use a more centrally located route via Russian airspace for its Zurich (ZRH) – Shanghai Pudong and (ZRH) – Hong Kong flights, saving time and fuel costs. (CSR) declined to reveal the additional costs of the former detour route.
(CSR) took delivery of its 10th A330-343 (1188, HB-JHJ) on January 21, and will take delivery of 5 more from 2012 onwards. (CSR) operates 10 A330-300s, 15 A340-300s and 2 A330-200s, which will leave the fleet by mid-2011.
A330-343E (1193, HB-JHQ), leased to Edelweiss Air (EDE) to replace an A330-200.
February 2011: Swiss International Air Lines (CSR) flew 2.46 billion (RPK)s traffic in January, a +11.5% leap from the year-ago month. Capacity rose +12.5% to 3.24 billion (ASK)s as load factor fell -0.7 points to 75.8% LF.
March 2011: Swiss International Air Lines (CSR) announced that, due to the unfolding nuclear crisis in Japan, it will reroute its daily Zurich (ZRH) - Tokyo Narita flight via Hong Kong in both directions so (CSR) can avoid making crew changes in Japan. The flight will now leave (ZRH) in the evening instead of in the afternoon.
Despite a successful year in which it rebounded from a -€34 million 2009 loss to earn a +€1.1 billion/+$1.53 billion) net profit in 2010, Lufthansa Group Chairman & (CEO) Christoph Franz conceded that the performance of (DLH) Group subsidiary airlines was "mixed."
(CSR) posted 2010 operating income of +€298 million, more than triple a +€93 million operating profit in 2009, on a +24% rise in revenue to €3.46 billion. "The success of (CSR) is due largely to effective cost management, but also to strong demand and the upswing in intercontinental and freight business, as well as strong sales in the domestic Swiss market," (DLH) stated.
Austrian Airlines (AUL), however, incurred a -€66 million operating loss in 2010, narrowed from a -€230.9 million deficit in 2009, while British Midland (BMA) posted an operating loss of -€145 million in its 1st full year as a (DLH) group carrier. Franz said, "(AUL) and (BMA) are still working flat out at their restructuring."
(AUL) said its improved result is owing to a new market strategy in Europe, restructuring efforts and synergies in the (DLH) Group. (AUL) carried 10.9 million passengers last year, up +9.7% over 2009. Load factor rose +2.2 points to 76.8% LF. "We are moving in the right direction," (AUL) Executive Board Member & (CCO) Andreas Bierwirth said. "However, the restructuring of (AUL) is far from being completed. We have a great deal of work still left to do."
(AUL) has cut -1,000 jobs over the last year to reduce its number of employees to 6,000. "The productivity of every employee increased by +23% in terms of turnover," (COO) Peter Malanik claimed.
Bierwirth said (AUL) needs to "sell more business class (C) tickets" and acknowledged its A320s and 737s have not yet reached (DLH) Group productivity standards. Asked if (AUL)'s new cost base can be compared to lower cost carriers (LCC)s such as Air Berlin (BER), he said, "We are starting to close the gap."
Meanwhile, Germanwings (RFG)'s 2010 operating loss of -€39 million was reversed from an operating profit of +€23.9 million in 2009. (RFG)'s full-year revenue lifted +8.6% compared to 2009 to €630 million.
April 2011: (SAS) Scandinavian Airlines, along with Star (SAL) Alliance partners Lufthansa (DLH), Swiss (CSR) and Austrian Airlines (AUL), said it has again won the Swedish government's procurement of air travel, in a contract carried out by Swedish Armed Forces Logistics (FMLOG). The agreement is worth a total of SEK700 million/$111.6 million.
June 2011: Swiss International Air Lines (CSR) (CEO) Harry Hohmeister said he is expecting a difficult 2nd half of 2011 for (CSR) owing to high fuel prices, political unrest in the Middle East and North Africa and the natural and nuclear disasters in Japan.
Hohmeister said he is “still confident” that (CSR) will make a full-year profit. “We made a +SFR16 million/+$18.8 million profit in the 1st quarter of 2011. But we are not [positioned] where we want to be. The current outlook is pessimistic compared to last December’s outlook.” He noted that increased demand, which was strong immediately after the crises, is not there anymore. “If we can make the same results as 2010, we would be very satisfied.”
The European network remains under pressure. “When we count the full production costs [of an intra-European flight], (CSR) loses money on its European network,” said Hohmeister. He adds that (CSR) established an internal working group to evaluate its European flight operation, where costs and optimizing potential can be found. He said that results from the working group will be available soon. Then “we can talk about an optimizing process of our European traffic, which takes about 2 to 3 years.”
Hohmeister explained that in order for (CSR) to continue as a successful hub carrier, Zurich Airport (ZRH) will have to increase its capacity: “Where [does] (ZRH) want to be in 20 years?”
Airport expansion proposals should be discussed now, he said, including finding ways to optimize the current infrastructure for efficiency. He noted that a new parallel runway would be necessary for (ZRH) to stay competitive.
July 2011: SR Technics (SWS) signed a 5-year contract with Swiss International Air Lines (CSR) to extend its cooperation for comprehensive airplane maintenance and component services, covering heavy maintenance, "A" and "C" maintenance checks. The agreement also incorporates full integrated component services for (CSR)’s Airbus (EDS) fleet and includes a hangar space sublease in Zurich.
August 2011: Swiss International Air Lines (CSR) will re-launch its daily, Zurich - Beijing route on February 11, 2012.
(CSR) CEO, Harry Hohmeister said (CSR) is making further investments to compete against Gulf carriers and achieve the right size to compete in the tough European aviation environment. (CSR) will take delivery of 3 additional A330-300s and 2 A320s in 2012. Hohmeister said that (CSR) achieved “critical size” in 2004 - 2005 to effectively compete against other hubs. He said the size of (CSR)’s fleet of 89 airplanes is fine today “but it will not be enough for 2015 - 2017.”
The total fleet size will increase to at least 98 airplanes, and additional equipment could be added depending on the market, he said. From 2014, (CSR) will take delivery of up to 30 Bombardier CSeries regional jets to replace its aging Avro RJ100 fleet.
Hohmeister said (CSR) believes the threat from European low-cost carriers (LCC)s has peaked, but the competition is now coming from the Gulf region. Hohmeister said (CSR)’s focus on quality and profitability will not be enough by itself to compete against the Gulf carriers. “That’s why I am glad that we are a member of the Lufthansa (DLH) Group. Together, we can make a stronger stand against the Gulf carriers,” he noted.
Hohmeister said (CSR) is suffering from foreign exchange losses between the strong Swiss franc and the euro, adding that the carrier can compensate by buying oil and airplanes with dollars. “But in the long run this cannot be a solution, since we are facing a structural problem,” he pointed out. He said (CSR) doubled its 1st-half operating profit to +SFR129 million/+$162.7 million. “I still believe we will finish the year 2011 with a profit,” Hohmeister said. In June, he forecasted a difficult 2nd half for (CSR).
(CSR) announced it is strengthening its brand profile by adopting a new logo from October. “The new logo shows a Swiss tailfin with its Swiss-cross design, reflecting the livery of (CSR)’s airplanes and enabling Swiss (CSR) to be instantly recognized as ‘the airline of Switzerland,’ even from afar,” (CSR) said.
October 2011: After the 1st 6 months, the Lufthansa Group returned to a profit, posting an operating profit of +Euro 300 million, an increase of Euro 174 million over last year. This was despite the natural disasters in Japan and political unrest in North Africa. Wholly owned Swiss International (CSR) posted similar figures. The events in Japan and North Africa had a particularly adverse effect on the Group's other carriers, Austrian (AUS) and British Midland International (BMA), both of which recorded losses. However, Lufthansa Cargo enjoyed another productive period with an operating profit of +$133 million.
January 2012: All 5 Lufthansa (DLH) Group airlines carried a total of 106.3 million passengers in 2011, a growth of+ 7.5% compared to the previous year. The group’s capacity (ASK)s grew by +9.8% overall in 2011, while traffic (RPK)s rose +7%. Average passenger load factor fell by -2.2% to 77.2% LF.
Passenger boardings were 65.5 million, up +11.1% compared to the previous year. Capacity rose by +11.8% in the full year, while sales were up +8.8%. Load factor was 77.2% LF, down -2.2% year-over-year.
Swiss International Air Lines (CSR) carried approximately 16.4 million passengers, up +8% compared to the year before, but load factor dropped slightly by -1.1% to 81.1% LF.
Loss-making Austrian Airlines (AUL) transported 11.3 million passengers, up +3.4% compared to 2010, but load factor fell -3% to 73.8% LF, mainly because it is operating larger airplanes.
British Midland International (BMA), which has been sold to British Airways (BAB) parent (IAG), transported 5.7 million passengers, -7.4% less compared to 2010. Load factor fell -4.6%, to 67.1% LF year-over-year.
Germanwings (RFG) carried 7.5 million passengers, -2.7% less than the year before. Load factor increased slightly by +1%.
Lufthansa Cargo (LUB) recorded a +5% growth in its tonne-kilometers transported in 2011 and carried 1.9 million tonnes of freight and mail. Capacity grew by +8.6% in the full year, while sales were up +6.5%, resulting in a load factor drop by -1.4% to 69.5% LF.
“The trend of decreasing sales that emerged in the autumn continued in the remaining months of the year,” (DLH) said. “Group-wide, it proved not possible to match the level of sales growth recorded at the beginning of the year.” In the light of this development and ongoing economic uncertainty, the Passenger Airline Group plans to achieve a +3% low-level growth in (ASK)s in the full-year 2012. This will be realized by using larger airplanes and introducing the new Europe cabin on (DLH) Passenger Airlines' European routes.
(CSR) has announced several network changes:
Geneva - Nice: up to 3x-daily A320-200/ARJ-100 service starting on February 10;
Zurich - Beijing: daily A340-300 service starting on February 11 (subsidiary Edelweiss Air (EDE) will not resume its seasonal services anymore next summer).
It has however given up its Geneva - Budapest, Zurich - Basle/Mulhouse and Zurich - Sofia routes on October 31 and will terminate its Zurich - Douala - Yaoundé route on March 25 in favor of additional services offered by Brussels Airlines (DAT)/(EBA). As of March 31, Swiss (CSR) will replace the PrivatAir (PTS) 737-800 currently operating between Zurich and New York Newark in all Business Class (C) configuration by regular A340-300s.
A330-343E (1276, HB-JHK "Herisau"), ex-(F-WWYI), delivery.
February 2012: Swiss International Air Lines (CSR) launched 2 new routes this month; one short-haul and 1 long-haul. On February 10, (CSR) stationed its 10th airplane in Geneva (GVA), an A319, and began operating 2x-daily to Nice (NCE); a distance of 300 km. At the start of the summer season, frequencies will increase to 3x-daily. Competition on the route comes from easyJet (EZY)’s 17 flights a week. On February 11, (CSR) launched a route from its main hub at Zurich (ZRH) to China’s capital, Beijing (PEK). The route, which is operated daily with 219-seat A340-300 airplanes, is (CSR)’s 3rd to China after Hong Kong and Shanghai Pudong. (CSR)’s leisure subsidiary Edelweiss Air (EDE) previously operated the Beijing route 1x- weekly between July and October last year. Competition on the route comes from Hainan Airlines (HNA)’s 2x-weekly operations. “We warmly welcome this new non-stop service between Zurich and Beijing,” said Swiss Minister of Transport, Doris Leuthard. “Well-functioning air links are vital to good relations between Switzerland and China. >400,000 Chinese travelers visited Switzerland in summer 2011 alone, and trading volumes between our 2 countries increased +11.6% last year >CHF 15 billion. I’m convinced that everyone will benefit from the new service.”
This month, (CSR) operated the 1st commercial flight equipped with a certified traffic situational awareness system, providing the pilots (FC) with real-time surveillance information on surrounding traffic.
A breakthrough point has been reached in civil aviation with the operational deployment of surveillance capability in the cockpit, using automatic dependent surveillance broadcast (ADS-B). A (CSR) A330-300, equipped with a certified Airborne Traffic Situational Awareness (ATSAW) system from Airbus (EDS) and a Honeywell (SGC) traffic computer, flew from Zurich Airport to Montreal.
This airplane is taking part in Eurocontrol’s Cascade Program’s (ATSAW) Pioneer Project initiative. 25 Airbus (EDS) and Boeing (TBC) airplanes belonging to British Airways (BAB), Delta Airlines (DAL), Swiss International Airlines (CSR), US Airways (AMW)/(USA) and Virgin Atlantic (VAA) are participating. It also involves the UK and Icelandic air navigation service providers, (NATS) and (ISAVIA) as they provide (ATC) services for a large area of the North Atlantic.
(ATSAW) provides pilots (FC) with a real-time picture of the surrounding traffic during all phases of flight. Procedures using (ATSAW) will give the flight crew (FC) the ability to move to more efficient altitudes when operating outside ground surveillance coverage. (ATSAW) will also support visual separation on approach and provide traffic situational awareness on the airport surface. (ATSAW) is expected to bring concrete benefits in terms of safety and capacity, as well as significant fuel savings per airliner, along with corresponding reductions in CO2 emissions.
“This is a major achievement, resulting from the close partnership between stakeholders and the Network Manager. It reinforces our ability to improve the European (ATM) Network’s performance in the short-, medium- and long-term,” observed Joe Sultana, Chief Operating Officer, Directorate Network Management.
(ADS-B) is a surveillance technique allowing airplanes to broadcast their identity, position and other information derived from on-board systems. This signal can be captured for surveillance purposes from the ground (ADS-B Out) or on-board other airplanes (ADS-B In). The latter enables airborne traffic situational awareness (ATSAW), spacing, separation and self-separation applications.
The Cascade Program being run by the Directorate Network Management, coordinates the deployment of initial (ADS-B) applications and Wide Area Multilateration (WAM) in Europe. Cascade covers ground surveillance (i.e. ADS-B Out and WAM) as well as airborne surveillance applications (ATSAW), establishing the baseline for future airborne Surveillance applications. Cascade is actively engaged in ensuring global interoperability: (ADS-B) and (WAM) are currently being deployed operationally both in Europe and worldwide.
The Cascade Program deliverables contribute to the achievement of the Network Management Implementing Rule (IR) performance targets, and provide means to our stakeholders to meet their surveillance improvement obligations under the Surveillance Performance Interoperability (IR) and the Airplane Identification (IR).
SEE ATTACHED "FLIGHT INTERNATIONAL" ARTICLE - - "CSR-2012-02-ATSAW TRAFFIC AID."
March 2012: Swiss International Air Lines (CSR) will change the frequency of services from Zurich, Geneva and Basel, and increase flight numbers to Beijing, Chicago and Newark. From Zurich, (CSR) will raise the frequency to Prague from 3x- to 4x-daily and add a 2x-daily flight to Bucharest.
(CSR) will increase the frequency of Zurich - Chicago flights from once per day to 11x-weekly, and increase Zurich - Newark flights to once daily. (CSR) will deploy A340s on the routes.
(CSR) will raise the frequency on the Zurich - Beijing route from 5x-weekly to once daily flights, starting at the end of May. Services from Zurich to Cairo will be reduced to 4x-weekly, while those to Cameroon will be withdrawn "for economic reasons."
From Geneva, (CSR) will add a third daily flight to Nice.
Under a code share deal with Darwin Airline, (CSR) now offers flights to Luxembourg, Genoa and Lugano from Geneva, effective March 8. Additionally, the code share deal will expand to include Florence and Venice with the start of the summer schedules.
(CSR) will reduce its capacity to the (UK), Benelux and Germany from Zurich. (CSR) will resume services to London City from Basel Mulhouse Freiburg with 2x-daily flights, starting May 21. (CSR) will withdraw direct flights to Copenhagen, Budapest and Manchester from Basel.
(CSR)'s service from Basel to Brussels will now be served 2x-daily by its sister carrier, Brussels Airlines (DAT)/(EBA).
In addition, Swiss charter operator Edelweiss Air (EDE) will fly the 2x-weekly, Zurich - Tokyo flights for the summer schedule.
June 2012: Swiss (CSR) is considering splitting its long-haul and short-haul business into two separate companies according to a report by Swiss newspaper "Handelszeitung." Its regional subsidiary, Swiss European Air Lines ((ICAO) Code: (SWU), based at Zurich Kloten airport (ZRH)) currently already operates 20 ARJ-100s on a separate air operator certificate (AOC) and a different labor contract. According to the plan, (CSR) is reportedly considering either moving its A320 family fleet and the crews (FC) & (CA) operating the flights to Swiss European or a different new entity possibly based in the European Union (EU). (CSR) has said that the plan that has leaked to the public would only be an internal working paper but that it would be actively reviewing its cost structure for its short-haul operations in Europe right now.
Lufthansa Technik Switzerland (DLH) (LTKSW) in Basel will undergo extensive restructuring. In the future, the company will concentrate exclusively on line maintenance, light base maintenance and logistics services for its customers at EuroAirport Basel. The company’s focus on just 1 core product will entail personnel reductions from 304 to 82 employees. It is likely that 22 employees will be able to retain their jobs in the engine shop in Basel, though not as employees of (LTKSW).
“The job cuts associated with the restructuring decision are naturally extremely painful for us,” said Rainer Lindau (CEO) of Lufthansa Technik Switzerland. “But only a rigorous focus on one core product will create conditions that ensure the continued existence of Lufthansa Technik Switzerland in Basel.” The labor-intensive technical maintenance of (VIP) airplanes and the Component Services & Engine Services business will all be discontinued.
As early as the initiation of the consultation procedure at the end of March, the company announced that the exchange rate development of the Swiss franc and the very difficult market situation would necessitate extensive restructuring measures. The demand for maintenance of regional airplanes and their engines had declined dramatically, and the company was unable to compensate for these disproportionate losses in capacity utilization through its business in the maintenance of VIP and executive jets.
According to (LTSW), the existing underutilization of capacity means that the majority of the job cuts will be need to be initiated before the end of the month. A support plan will be available for the affected employees. As regards the Engine Services business, (LTSW) was able to reach agreement with SWISS (CSR) that the fleet’s engines will continue to be maintained at the engine shop in Basel, although not under the name (LTSW). This measure is likely to result in the retention of 22 current (LTSW) employees.
(LTSW) is establishing a job center in Basel to provide information on job openings at other Lufthansa Technik (LTK) facilities and at external companies as well as individual assistance for employees.
July 2012: Swiss International Air Lines (CSR) must improve its cost structure to overcome high fuel prices, decreasing yield and foreign exchange losses between the strong Swiss franc and the euro, (CEO) Harry Hohmeister said. However, despite the difficult economic conditions, he is targeting full-year positive results.
"The currency situation [has weakened] our position compared to those carriers based in the European Union (EU),” Hohmeister said.
The Lufthansa (DLH) subsidiary aims to reduce costs on the European side by a “high single-digit number,” he said. "There will be no position within (CSR) excluded (from cost-cutting). We have to increase efficiency,” he said, pointing out the difference in load factor between its short- and long-haul business is, in some cases, “nearly 10%.”
He said (CSR) also has to think about structural changes to become more globally competitive. Hohmeister said (CSR) will also make changes from the supply side, such as airports.
(CSR) is evaluating creating more ancillary fees for extra services and value-added products. "We will always guarantee a high quality, basic service. Customers who want to have more on top can purchase additional components," he said.
(CSR) sees its long-haul unit as well positioned, but will make capacity adjustments as needed. For example, Hohmeister said (CSR) has dropped some African destinations that did not generate enough demand within its home market. “So we stopped flying,” he said. “Too much focus on the transfer business could lead to revenue problems. We got to feel the effects last year and that's why we passed over some Western African destinations to [(DLH) partner] Brussels Airlines (DAT)/(EBA), he said.
All Nippon Airways (ANA) has filed an application with the Japanese Ministry of Land, Infrastructure, Transport & Tourism for antitrust immunity (ATI) to add Swiss International Air Lines (CSR) and Austrian Airlines (AUL), both Lufthansa (DLH) Group carriers, to its Japan - Europe joint venture (JV) with Lufthansa (DLH).
According to (ANA), the expanded bilateral (JV) between the (DLH) Group and (ANA) “will offer customers greater convenience and improved access to intra-Europe routes.”
Subject to (ATI) approval, the four carriers plan to launch joint sales initiatives and pricing products from spring 2013.
(ANA) and (DLH) have been working to deepen their partnership over the last year, offering joint products on selected routes from October 2011 with a full range of cooperation in the bilateral (JV) on April 1. If approved, the (JV) will enable (ANA) to expand its international network by +22% during 2012 - 2013 and further builds on the (ANA)/United Airlines (UAL) (JV) on transpacific routes launched in April 2011.
August 2012: Swiss International Air Lines (CSR) reported its first-half profit dropped -53% to +CHF61 million/+$63.8 million compared to +CHF129 million in the year-ago period.
(CSR) said the 2nd quarter was a tough environment for the industry; yield remains under pressure and fuel costs remain high. Revenue dropped -42% to SFR65 million for the April - June period compared to last year.
(CEO) Harry Hohmeister said (CSR) has been affected by the crises in the industry, which is not likely to change anytime soon.
Despite the increase in fuel expenses, (CSR) increased its operating profit by +2%, to +SFR1.284 million, up from +SFR1.257 million.
(RPM)s increased +6% on a +3.9% increase in capacity, producing a load factor of 81.3% LF, up +1.7 points on the year-ago period. The increased load factor was not enough to compensate for a weak yield, (CSR) said.
(CSR) said it will evaluate further adjustments to secure profitability, especially for its European network, without mentioning more details.
(CSR) will add 300 additional cabin (CA) and flight crew (FC) members this year. (CSR) added 2 A330-300s earlier in the year, with the 13th airplane to follow in October from a total of 15 ordered airplanes of this type.
“I don’t expect that we can announce the same profit (+SFR306 million) as last year. We will have to rethink our investment and growth policy for the period until 2020,” Hohmeister said.
September 2012: The Japanese Ministry of Land, Infrastructure, Transport & Tourism has issued antitrust immunity (ATI) to Swiss International Air Lines (CSR) and Austrian Airlines (AUL), allowing All Nippon Airways (ANA) to add both to its Japan - Europe joint venture with Lufthansa (DLH).
(ANA) President & (CEO) Shinichiro Ito said the development will “offer improved access to European destinations” and help “to support (ANA)’s international expansion.”
The 2 (DLH) Group carriers will launch joint sales and products beginning in spring 2013. (ANA) filed the application in July.
October 2012: Swiss regional, SkyWork inaugurated 2x-weekly flights from its base in Bern (BRN) to Zagreb (ZAG) in Croatia on October 28. The airline, which now serves as many as 12 European cities from the Swiss capital, will operate the new service to Croatia’s capital using Dornier 328 turboprop airplanes. During the launch, SkyWork’s (CEO) Tomislav Lang, said: “I’m proud that we succeeded to establish this important relationship and I thank those who have provided support throughout the process. We will not stop here, for we have big plans for the future, and judging by the interest it was noted in Bern in Zagreb, we’ll make them come true.” SkyWork Airlines will increase its Bern - London City service from 2x-daily to 3x-daily from March 29, 2013. This winter, it will operate 13 destinations from Bern, but it is planning to grow its network to 34 destinations in summer 2013, compared with 25 in summer 2012.
November 2012: Swiss (CSR) WorldCargo has reorganized its management structure into 2 main markets: Europe & Africa as 1 group, and Americas, Middle East & Asia as the other. Lalin Sabuncuoglu-Janssen, currently head of Europe, becomes VP Europe & Africa, while Ashwin Bhat, VP Europe & Africa, becomes VP Americas, Middle East & Asia. Jack Lampinski, Senior Director Americas, retains his title. Susanne Wellauer becomes Manager SWISS Mail - - she was formerly Sales Manager in the Basel district.
Swiss International Airlines (CSR) is deciding how best to replace its fleet of 15 A340-300s. (CSR) (CEO) Harry Hohmeister said the replacement decision depends on “the economical development in our industry and when we can make real money again.” Since it is such a large investment, “the price of the new airplanes will be an essential element of these talks. If we go for 777s or an airplane from Toulouse [Airbus (EDS)], this is part of ongoing negotiations. The question of replacing our A340 fleet has to be answered within the next 6 to 12 months.”
Hohmeister did not give details on which type of 777 or (EDS) airplane is being considered, but (CSR) would prefer an airplane size that offers more seats than its 228-seat A340-300.
(CSR) has added 100 new pilots (FC) this year and will create an additional +300 jobs in 2013. (CSR) will take delivery of its 14th and 15th A330-300s from April to October 2013, 1 A320 in February and 1 A321 in March 2013.
(CSR) expects to take delivery of the 1st of up to 30 Bombardier CSeries regional jets, which will replace its Avro fleet, from mid-2014 onward.
January 2013: Edelweiss Air ((IATA) Code: WK, based at Zurich Kloten airport (ZRH)) (EDE) will take over an A330-300 from parent, Swiss (CSR) from March 31 onwards and will operate the A330-300 with its crews on 1 of Swiss (CSR)'s 2 daily services between Zurich Kloten (ZRH) and New York John F Kennedy International (JFK) airports. (EDE) currently already operates an A330-200 and an A330-300 on its own leisure oriented long-haul services. Swiss (CSR) has explained the measure with a need to reduce a vacation time backlog for its Airbus (EDS) cockpit crews (FC).
Swiss ((IATA) Code: LX, based at Zurich Kloten (ZRH)) (CSR) (CEO) Harry Hohmeister has told "Bloomberg" that Swiss (CSR) would currently also be considering the 747-8 as a potential replacement for its fleet of 15 A340-300s. In November, (CSR) had only confirmed that several A350 versions and the 777-300ER would be on its shortlist. Swiss (CSR) parent, Lufthansa (DLH) currently already operates 4 747-8s and has additional 16 of the 747-8s on order.
February 2013: Swiss ((IATA) Code: LX, based at Zurich Kloten (ZRH)) (CSR) has temporarily wet-leased 737-500 (24821, D-ABIH) from parent Lufthansa (DLH) until the end of March to replace the capacity lost due to the bankrupty of its German wet-lease partner OLT Express Germany ((IATA) Code: OL, based at Bremen Neuenland (BRE)). Swiss (CSR) had wet-leased 2 Fokker F 100s from (OLT). The (DLH) 737-500 is currently based at Stuttgart Echterdingen (STR) operating 2 daily flights to Zurich and from there to Warsaw Fryderyk Chopin (WAW) with some weekend flights to Birmingham International (BHX) also scheduled.
Swiss International Air Lines may finalize an order for 6 777-300ERs sooner than expected - - SEE ATTACHED - - "CSR-2013-03 - 777-300ER ORDER." The airplanes are intended to replace its fleet of 15 A340-300s.
(CEO) Harry Hohmeister said in November the replacement decision was expected between April and November of this year. He also said (CSR) preferred an airplane size that offers more seats than its 228-seat A340-300.
However, the order also depends on “the economic development in our industry, and when we can make real money again,” he said. Since it is such a large investment, “the price of the new airplanes will be an essential element of these talks.”
This would be the 1st Lufthansa Group member airline to order the 777-300ER. Austrian Airlines (AUL) operates 4 777-200ERs and plans to add 1 more 777 to its fleet in 2014 and 1 in 2015 to increase long-haul capacity around +25%.
Augsburg Airways ((IATA) Code: IQ, based at Munich Franz Josef Strauss International (MUC)) will wet-lease one of its 9 Dash 8-400s to Swiss (CSR) from April 1 onwards. The Dash 8-400 will be based at Nuremberg (NUE) and operate up to 4x-daily services to Zurich on behalf of Swiss replacing A319-100s, A320-200s and ARJ-100s of Swiss European Air Lines ((ICAO) Code: SWU, based at Zurich Kloten (ZRH)) currently used on the route.
March 2013: The Lufthansa Group has offered a glimpse of planned initiatives for its 'Score' efficiency improvement program, including the establishment of a separate operational unit for Swiss International Air Lines (CSR) in Geneva.
Since the cost-cutting and revenue improvement scheme was launched in early 2012, 'Score' generated €618 million for the company, 2x- as much as expected. But Lufthansa (DLH) says the positive effects were offset by higher costs, principally due to rising fuel prices.
(CEO) Christoph Franz said at the German airline group's annual press conference in Frankfurt on March 14 that the company would have made an operating loss in 2012 without the 'Score' savings.
For the current year, the management aims to generate +€740 million and focus particularly on airline operations.
The Lufthansa Group's +€524 million operational profit in 2012 was largely based on the positive performance of the company's service subsidiaries: - Maintenance arm, Lufthansa Technik (DLH) (LTK), Catering division (LSG), and Information Technology (IT) specialist Lufthansa Systems (LHS). But the company's passenger and cargo airline operations should create the majority of the operating result this year, said Simone Menne (CFO).
Group carrier Swiss will set up a separate operational unit in Geneva due to strong competition from low-cost carriers in the city, said Franz. Under the project dubbed 'Calvin', aircraft crews as well as certain operational and managerial posts will therefore be locally established.
Lufthansa's passenger airline division - which recorded a €45 million operating loss in 2012 - aims to return to profitability in the current year. This will be partly achieved with the transfer of all European traffic outside its Frankfurt and Munich hubs to low-cost subsidiary Germanwings on 1 July, which it is hoped will save around €200 million.
But the carrier will also cut around -2,000 jobs until the end of 2013. Some 3,500 jobs are to be made redundant across the entire group. The management decided not to issue a shareholder dividend for 2012. Franz said that a dividend should only be paid again once the steady decline in the group's operating results since 2008 has been reversed.
April 2013: Austrian Airlines (AUL) and Swiss International Air Lines (CSR) have joined Lufthansa (DLH)’s joint venture (JV) with Japanese carrier, All Nippon Airways (ANA).
(DLH) and (ANA) began their cooperation on flights between Japan and Europe in April 2012 and now, as anticipated, (AUL) and (XSR) have also joined, effective April 1. “We will benefit from the strong sales of (ANA) in Japan in future, and (ANA) will do from ours. Becoming part of the joint venture (JV), therefore, is another important building block on the way to a healthy (AUL),” (AUL) (CEO), Jaan Albrecht said.
(CSR) will begin daily, Zurich - Kiev A320 service from October 27.
(CSR) named Markus Binkert as Chief Commercial Officer (CCO) and Roland Busch as Chief Financial Officer (CFO).
May 2013: Swiss International Air Lines (CSR) said 6 members of its extended management board have agreed to take a -5% pay cut from July 1 until the end of 2015 in the face of continued financial difficulties.
(CSR) said “persisting extreme difficulties,” including “very low” yields and fuel costs that “are likely to remain an additional burden for the foreseeable future,” prompted the board’s action. In addition, the strength of the Swiss franc is creating a further competitive challenge for the airline.
The extended management board’s decision is seen as a contribution to the broader efforts (particularly under the Lufthansa Group-wide (SCORE) program) to achieve an operating result from 2015 onward that will ensure (CSR) is competitive and able to fund its future investments.
SWISS (CSR) resumed services on the 10,300 km route from Zürich (ZRH) to Singapore (SIN), which it last served 4 years ago. Beginning on May 12th, (CSR) operates daily flights in competition with fellow Star (SAL) Alliance member Singapore Airlines (SIA)’s services of the same frequency. (CSR)’s 219-seat A330-400 wide-body airplanes, in 3-class configuration, is deployed to serve the route. Lee Seow Hiang, Changi Airport (CAG)’s (CEO), said, “(CSR) has been fondly missed by the Changi Airport community as well as many of its loyal customers since its last flight to Changi in April 2009. Europe is an important market for Changi Airport. For the 12 months ending February 2013, some 2.6 million passengers travelled between Singapore and Europe, up +8% year-on-year. With the return of SWISS (CSR), travellers now have greater access into the heart of Europe from Changi.” In addition, (CSR) launched 2 seasonal routes from Geneva (GVA), on May 8th and 9th, respectively. Catania (CTA) is now served with 3x-weekly services, while 2x-weekly flights depart for Olbia (OLB). Competition on the 2 Italian routes comes from easyJet (EZY), which offers 4 and single weekly frequencies, respectively.
June 2013: SWISS (CSR) increased its seasonal summer offering from Geneva (GVA) with the launch of services to Porto (OPO) and Ajaccio (AJA) in Corsica on June 28 and 29, respectively. Both routes are offered with 2x-weekly frequencies until September 7, and operated using variable equipment. Competition on the route to Portugal comes from easyJet (EZY) (3x-daily) and (TAP) (2x-daily); the former also offers a daily schedule to Ajaccio.
July 2013: Swiss International Airlines (CSR) is to add 6 new destinations from Geneva (GVA) this fall: Stockholm (4x-weekly), Oslo (3x-weekly), London Gatwick (3x-weekly), Gothenburg (2x-weekly), Belgrade (2x-weekly) and Marrakesh (2x-weekly). It will also change from summer to year-round services, Geneva - Malaga, - Palma de Mallorca and – Porto.
(CSR) continued to grow its international offering from Geneva (GVA) with the launch of 2x-weekly services to St Petersburg (LED) on July 25. (CSR), which already offers 2x-daily flights to Moscow Domodedovo from Geneva, operates the new route using A319s and plans to add an additional weekly frequency from September 7.
August 2013: Lufthansa Group subsidiary Swiss International Air Lines (CSR) has reported a 2nd-quarter operating profit of +SFR96 million/+$101.5 million, up +48% compared to +SFR65 million in the year-ago period.
Airberlin (ber) has suspended bookings for flights to Egypt’s Hurghada, Marsa Alam, and Sharm el Sheikh until September 15, owing to unrest and violence sweeping the country. However, flights to/from Egypt are operating as planned. German’s Foreign Ministry is advising against travel to Egypt due to the “current events and the unpredictability of how the situation may develop.”
German leisure carrier Condor (CDF) and TUIfly (HAP)/(HLX) have also canceled all flights to Hurghada and Sharm el-Sheikh until September 15, but the carriers are bringing back tourists.
The Lufthansa Group subsidiaries, Austrian Airlines (AUL) and Swiss International Air Lines (CSR) said they are continuing operations to Cairo, but passengers can rebook flights free of charge.
Swiss International Air Lines (CSR) has named Bernhard Christen as Head of Marketing, effective in mid-November. Christen is currently Swiss Head of Corporate Brand & Communications Management at Swiss-based herbal confectionery manufacturer, Ricola AG.
September 2013: Swiss (CSR) begins Geneva - Rome (6x-weekly), - Lisbon (4x-weekly), and – Copenhagen (6x-weekly) in the Spring. Current summer service on Geneva - Malaga will become year-round.
(CSR) appointed Air Canada (ACN) former President & (CEO) Montie Brewer to its board of Directors. He succeeds Stefan Lauer, who, following his departure from the Lufthansa (DLH) Group, has also relinquished his seat on the Swiss board of Directors.
October 2013: Swiss International Air Lines (CSR) reported an operating profit of +CHF209 million/+$233 million for the 1st 9 months, up +13% from +CHF185 million for the same period last year.
Swiss International Air Lines (CSR) has reached an agreement with its 2 pilot (FC) unions that will ultimately integrate the cockpit crew (FC) at the short-haul arm of Swiss European and long-haul operator Swiss International.
The deal, which has been struck with the Aeropers and (IPG) pilot (FC) unions, forms part of (CSR)’s plans to integrate Swiss European Air Lines into Swiss International Air Lines.
Under discussion since late 2012, the accord covers future working structures, foundations for a single pilot (FC) corps, introduction of the Bombardier CS100 and 777, maintaining Swiss’ competitiveness, securing cockpit jobs and establishing and developing a new Geneva crew base. “After intensive negotiations, the parties have found a viable compromise in the last few days that has met with the approval of both unions and the company,” Swiss (CSR) said.
Between now and the end of the year, (CSR) will draft revised collective labor agreements for union approval. “The aim here is to have all collaborations under the new employment parameters from April 2014 onwards,” (CSR) said.
Swiss International Air Lines (CSR) route between Zurich - Miami increases to 10x-weekly (from 7x) for winter. Also added from Geneva soon: Stockholm (4x-weekly), Oslo (3x-weekly), Gothenburg (2x-weekly), Belgrade (2x-weekly) London (LGW) (3x-weekly), and Marrakech (3x-weekly).
(CSR) reinstated services on the 1,700 km route from Zurich (ZRH) to Kiev Boryspil (KBP) on October 27th. The route, which was last operated by (CSR) in 2003, is now offered with daily frequencies using A320s. Competition in the market is provided by Ukraine International Airlines (UKR), which matches (CSR) by also offering a daily service between the 2 airports.
November 2013: SWISS (CSR), which had resumed its Kiev services from Zurich, expanded its offering from Geneva (GVA). Beginning on November 1st, (CSR) commenced operations on the 2,030 km route to Marrakech (RAK), making it its only destination in Morocco. 2x-weekly (Tuesday and Friday) flights are offered in the market and operated using A320s. Competition on the route comes from easyJet (EZY)’s daily service.
December 2013: See video "SWITZERLAND FROM ABOVE" - -
January 2014: Swiss International Air Lines (CSR), which faces increased competition with the January 1 launch of a daily Emirates Airline (EAD) A380 Dubai - Zurich service, has called for fair competition between European and Gulf carriers.
German Operating Aircraft Leasing (GOAL), a joint venture of (KGAL) & Company purchased 2 used Airbus A340-300 from Austrian Airlines (AUL) under a lease agreement with Swiss International Air Lines (CSR).
April 2014: Swiss International Air Lines (CSR) added Zurich - Palermo and – Thessaloniki 2x-weekly summer Airbus A320 services. Service from Geneva to Corfu and Heraklion will be added also. (CSR), which in the previous week added operations from Geneva to Pristina in Kosovo, increased its European network with 4 new routes from its Geneva (GVA) base, utilizing a mixed fleet of its 138-seat A319s and 168-seat A320s. With the longest sector being the 2,005 km weekly service (Saturdays) to Heraklion (HER) launched on April 12, and the shortest being inaugurated to Rome Fiumicino (FCO) on April 11 at 695 km, (CSR) will face competition on all 4 routes, notably from easyJet (EZY). In addition, flights to Greece will see a frequency increase to 2x-weekly from May 27th.
(CSR) is reportedly considering using pilots (FC) from low-cost carrier (LCC) subsidiary, Swiss European Air Lines to operate its new Boeing 777-300ER fleet as (CSR) faces more competition from Gulf carriers. It is scheduled to take delivery of its new 777 fleet beginning in 2016.
Using pilots (FC) from European, rather than using its mainline pilots (FC), would reduce labor costs. Swiss European pilots (FC) operate Avro regional jets. (CSR) mainline Airbus pilots (FC) in mid-April rejected a new, joint collective labor agreement with the pilots (FC) of the Avro fleet, represented by Aeropers and (IPG) Cockpit unions. The current collective labor contract of (Swiss European) (IPG) pilots is valid through the end of June; talks with CSR) management are ongoing.
Swiss European operates a fleet of 20 Avro RJ100s. According to "(IPG) Cockpit," transferring to Boeing 777 long-haul operations would create new opportunities for the short-haul pilots (FC).
According to several media reports, (CSR) estimates the move will save between -CHF20 million/-$22.7 million and CHF30 million annually.
A Swiss spokesperson in Zurich said, “We are in ongoing talks with the union of Swiss European pilots (FC) since their contract will end soon."
May 2014: Swiss International Air Lines (SWISS) (CSR) and Amadeus have a long-term strategic agreement that will see (CSR) adopt the core modules of the Amadeus Altéa Suite, in order to enhance its reservation, inventory and departure control processes. (CSR)’s migration to the Altéa Reservation and Inventory modules is scheduled for the beginning of 2016, with migration to Departure Control to follow in mid-2016.
(CSR) has agreed to a new collective agreement (CLA) with its short-haul pilots (FC), paving the way for the introduction of its Bombardier CS100s and Boeing 777-300ERs. Cockpit crew at (CSR) are divided into 2 groups, comprising Avro pilots (FC) who are represented by the (IPG) pilots’ union and its Airbus (EDS) crew, represented by Aeropers.
SWISS (CSR) and the (IPG) have inked a new agreement, dubbed "CLA14+," which will run from July 2014 until April 2019 and enable it to roll out “major structural change.” The deal will now be discussed within the union and then put to a vote around mid-June. “The new CLA14+ will keep (CSR) competitive, give greater flexibility to its Flight Operations, and enable its new Bombardier CS100 and Boeing 777-300ER airplane fleets to be brought into service with the participation of both its present pilot (FC) corps.”
Under the deal, (CSR)’s Avro pilots (FC) will be able to switch to long-haul, forming part of (CSR)’s plans to ultimately integrate cockpit crew (FC) at its Swiss European short-haul arm and its Swiss International (CSR) long-haul operation.
SWISS (CSR)’s Airbus (EDS) pilots (FC) are covered by a separate (CLA), which runs until the end of 2016. However, they have the option to switch to the new (CLA), carrying over their seniority. “Up to two-thirds of the long-haul places under the new (CLA) have been foreseen for such transfers,” (CSR) said. The agreement includes a new salary and duty time structure, which provides for a new pilot (FC) base in Geneva, without outsourcing, unless crews (FC) cannot be sourced internally. “Our new "CLA14+" will lay the foundations for making our operations more flexible and more cost-effective and thus more competitive, without having to outsource or reduce corps numbers. And it will ensure that we can employ all our pilots (FC) under favorable terms and conditions which we can continue to offer in the longer term,” SWISS (CSR) (COO) Rainer Hiltebrand said.
July 2014: SWISS (CSR) will provide, in partnership with Austrian Airlines (AUL) subsidiary, Tyrolean Airways, 4x-daily, Zurich - Lugano Bombardier Dash 8-Q400 service November 1, a +50% increase in capacity on this route.
SEE PHOTO - - "CSR-JULIA CALLIES A320 FIRST OFFICER-2014-07" who was attending final A320 training. The cost for every single day of flight training day varies between 60,000 and 100,000 Swiss francs/ $67,000 and $111,000. This is more efficient than sending the first officers on scheduled flights with Flight Instructors.
September 2014: SWISS (CSR) will cancel its Zurich - Kiev service on October 1.
(CSR)’s (SWISS) subsidiary, Swiss European Air Lines (which operates a fleet of 20 Avro RJ100s for SWISS) will lease 4 Embraer E190s from Zürich-based Helvetic Airways (OAW).
The Lufthansa Group has ordered 15 Airbus A320neos, with 10 options for its subsidiary, Swiss International Air Lines (SWISS) (CSR). The A320neos will gradually renew and replace (CSR)’s existing fleet of A320 family airplanes.
SWISS (CSR), the national airline of Switzerland, has a fleet of A319s, A320s, A321s, A330s and A340s.
October 2014: Swiss International Air Lines (CSR) will be adding 22 new European destinations to its Zurich network with the start of the 2015 summer schedule, by supplementing its hub concept with a new point-to-point system.
16 of the 22 new points (Naples, Bari, Bilbao, Porto, Toulouse, Leipzig, Dresden, Graz, Gothenburg, Helsinki, Riga, Krakow, Ljubljana, Sarajevo, Sofia, and Zagreb) will be provided with year-round service, while 6 of them (Palermo, Brindisi, Malta, Thessaloniki, Izmir, and Santiago de Compostela) will be served in the summer months. Swiss (CSR) will also introduce 16x-weekly, Geneva - Lugano flights.
Swiss (CSR) (CEO) Harry Hohmeister said that (ASK)s will grow +4.5% on European routes.
Also, (CSR) will upgrade its European Airbus A320 family fleet. Enhancements include increasing seating capacity on its A320s and A321s by adopting a new type of seat offering more legroom. It will increase capacity by +12 seats on the A320 and by +19 seats on the A321. The 1st A320 family airplane with the new-style cabin will return to service toward the end of November. It will also adopt a new food service concept for (CSR)’s economy (Y) class.
For short- and medium-haul routes, (CSR) will take delivery of 30 new Bombardier CS100s from next year onward to replace its Avro RJ100 fleet, which is operated by subsidiary, (CSR). In the meantime, (CSR) will wet lease 4 Embraer E190s from its partner Helvetic Airways (OAW) to phase out the oldest Avro airplanes.
1 support for this expansion comes from a new wet-lease contract of 4 Austrian Airlines (AUL) Bombardier Dash 8-Q400s, which will launch 1st domestic services on behalf of Swiss (CSR) from November 1st.
(CSR) will add 1 A321ceo to its fleet in 2016. Between 2019 and 2022, it will add 10 A320neos and 5 A321neos, replacing 10 of its older A320s and 5 A321s. (CSR) also holds 10 options on A320neo family airplanes. 6 777-300ERs will join the (CSR) fleet from 2016 onward.
The airplane orders represent a total investment of around $5.26 billion, (CSR) said.
Hohmeister said that by 2020, the average age of the (CSR) fleet will be reduced from 15.5 to 8 years.
November 2014: News A-1: Swiss International Air Lines (SWISS) must become more “flexible, efficient and competitive,” (CEO) Harry Hohmeister said on the sidelines of the Association of European Airlines (AEA) summit in Istanbul.
News Item A-2: Swiss International Air Lines (SWISS) (CSR) has revealed its latest growth plans for Geneva. The announcement follows last month’s announcement of a substantial expansion of its Zurich-based network and a +50% increase in seat capacity on the Lugano - Zurich route following the transfer of its operation to sister Lufthansa Group carrier Austrian Airlines (AUL).
Swiss (CSR) will add Florence (with 4x-weekly frequencies) from Geneva, as well as Sarajevo (with 2x-weekly flights), Valencia (with 2x-weekly services) and Skopje (with 2x-weekly flights).
It will offer seasonal summer service to Palermo, Calvi, Thessaloniki and Zakynthos. The new destinations bring its Geneva-based network to 39 destinations, compared to just 12, 2 years ago.
December 2014: Swiss International Air Lines (CSR) announced Oliver Evans, SWISS’s Chief Cargo Officer of the airline’s Swiss World Cargo division, will step down the end of September 2015 at his own request to pursue self-employment in the air logistics industry on his way into retirement.
February 2015: News Item A-1: Swiss International Air Lines (SWISS) (CSR) subsidiary, Swiss European Air Lines is changing its name to Swiss Global Air Lines, and will operate under the SWISS (CSR) brand.
The Avro RJ100 operator said the renaming had been prompted by the planned integration of new Boeing 777-300ERs into the SWISS (CSR) airplane fleet.
Once the relevant commercial and operating licenses have been amended by the Swiss Federal Office of Civil Aviation, the new name will be rolled out in flight booking applications and airplane liveries.
News Item A-2: A320-214 (0635, HB-IJM), in Star (SAL) Alliance colors.
March 2015: Swiss International Air Lines (SWISS) (CSR) has committed to buy +3 additional Boeing 777-300ER airplanes, in an order valued at $990 million at list prices. This additional commitment follows a previous order for 6 777-300ERs in 2013. The 777-300ER will be used on SWISS (CSR)’s long-haul routes.
April 2015: News Item A-1: SWISS (CSR) increased its European network with 4 new routes from its Zurich (ZRH) and Geneva (GVA) bases. (CSR), the Star (SAL) Alliance member will face direct competition only on the links to Helsinki (HEL) and Riga (RIX) from Finnair (FIN) (17x-weekly) and airBaltic (BAU) (daily), respectively.
Routes as follows:
Geneva (GVA) to Sarajevo (SJJ) 1x-, to Skopje (SKP) 1x-;
Zurich (ZRH) to Helsinki (HEL) 5x-, vs Finnair 17x-, to RIGA (RIX) A320 3x-, vs (BAU) 7x-.
News Item A-2: Bruce Aerospace has obtained a supplemental type certificate (STC) for the Swiss International Air Lines (CSR)'s (LED) Cabin Lighting System on an Airbus A320.
News Item A-3: Swiss International Air Lines (CSR) has confirmed it expects delivery of its 1st Bombardier CSeries 100 in the 2nd part of 2016, (CSR) spokesperson Karin Mueller said.
May 2015: News Item A-1: Bombardier (BMB) has confirmed that Swiss International Air Lines (CSR) will be the 1st operator of the CSeries, with service entry slated for the 1st half of 2016.
SEE ATTACHED - - "CSR-2015-05 - 1st CSERIES.jpg."
(BMB) also confirmed that the CS100 will be at the Paris Air Show in June and then fly directly to Zurich as part of a demonstration for Swiss (CSR) stakeholders.
News Item A-2: About SWISS:
(SWISS) (CSR) is Switzerland’s national airline, serving 106 destinations in 49 countries from Zurich, Geneva, and Basel and carrying >16 million passengers a year with its 95-airplane fleet. The company’s Swiss WorldCargo division provides a comprehensive range of airport-to-airport airfreight services for high-value and care-intensive consignments to some 120 destinations in >80 countries.
As “The Airline of Switzerland”, SWISS (CSR) embodies the country’s traditional values, and is committed to delivering the highest product and service quality. With its workforce of 8,245 personnel, SWISS (CSR) generated total operating income of CHF 5.2 billion in 2014. (CSR) is part of the Lufthansa Group, and is also a member of the Star (SAL) Alliance, the world’s biggest airline network.
June 2015: News Item A-1: SWISS (CSR) expanded its European offering from its Geneva (GVA) base between the dates of June 20 to 27. Starting on June 20, (CSR) initiated 3 Mediterranean routes to Calvi (CLY), Thessaloniki (SKG), and Zakynthos (ZTH). All of these services will operate on a weekly basis. (CSR) also introduced its 2nd route to Dublin (DUB) on June 26, with the new Geneva service complementing (CSR)’s current operation to Zurich. Of the new services, 5 face direct competition, including the new Dublin service.
Geneva (GVA) to Calvi (CLY), DHC-8-Q400, 1x-, vs Etihad Regional 1x-, Hop! 1x-; to Thessaloniki (SKG), A320 1x-, TO Zakynthos (ZTH), A319, 1x-, to Pale4rmo (PMO), DHC-8-Q400, 2x-, vs easyjet (EZY) 2x-, to Biarritz (BIQ), Dash 8-Q400, 2x-, vs Etihad Regional 3x-, Hop! 2x-, to Dublin (DUB), A320 4x-, vs Aer Lingus (ARL) 7x-, and to Algiers (ALG) A319 3x-, vs Air Algerie (ALG) 5x-.
News Item A-2: SWISS (CSR) is the 1st carrier to launch the Lufthansa Group’s branded fares across all channels, effective immediately. (CSR) will use the "Amadeus Fare Families" solution to maximize exposure of its Light, Classic and Flex fares and increase multichannel merchandizing opportunities.
News Item A-3: The Swiss International Air Lines (CSR) Bombardier CSeries that was on display at the Paris Air Show has flown to Zurich, where it will be demonstrated in advance of Swiss becoming the launch operator for the CS100 in mid-2016.
“Actually, it was not our priority to become the 1st operator of a new airplane type, since we are introducing the Boeing 777 and the CSeries, 2 different aircraft types, [into the Swiss (CSR) fleet around] the same time in 2016,” Swiss (CSR) (CEO) Harry Hohmeister said at this month’s (IATA) (AGM) in Miami.
After long discussions with Bombardier (BMB), however, it was decided that (CSR) would launch the CS100, expected to be certified in late 2015, Hohmeister said. “We have very good cooperation with Bombardier (BMB) and they will support us now with even more resources and material,” he explained. “Now that we are getting very strong support from Bombardier (BMB), it makes sense for us to be the one to launch operations with the CSeries.”
The CSeries was originally supposed to enter service in late 2013, in which case it would have been too early for (CDR) to consider being the launch operator since the Avro RJ100s the CS100 is replacing were not ready to be retired. Hohmeister said he’s “confident” the CSeries will have -25% lower unit operating costs compared to the Avro RJ100.
Swiss (CSR) is expected to take delivery of 30 CSeries airplanes from 2016 - 2018, including at least 10 CS300s. (CSR) recently sent 12 pilots (FC) and other employees to Bombardier (BMB)’s headquarters in Montreal for CSeries training.
Regarding the 777-300ER, Swiss (CSR) pilots are already in training to fly the airplane, the 1st of which is slated to be delivered at the beginning of 2016. (CSR) has recently finalized an order for +3 additional 777-300ERs, valued at $990 million at list prices, which follows a 2013 order for 6 777-300ERs.
Swiss leisure subsidiary Edelweiss Air (EDE) will also take delivery of an additional Airbus A330-300 next year. Hohmeister said the A330-300 can fly nonstop from Switzerland to Brazil.
July 2015: News Item A-1: SWISS (CSR) introduced 4 new services from its Zurich (ZRH) hub, starting on July 1st with the launch of operations to Malta (MLA). Flights on the 1,378 km sector will be flown 4x-weekly, using a mixture of (CSR)’s single-aisle Airbus airplanes. The route faces direct competition from Air Malta (MLT). The following day, July 2, (CSR) launched services to Brindisi (BDS), Izmir (ADB), and Santiago de Compostela (SCQ). All three of the seasonal airport pairs operate 3x-weekly using A320s, and all face direct competition.
Routes are as follows:
Zurich (ZRH) to Malta (MLA), A320 4x-, vs Air Malta (MLT), 7x-; to Brindisi (BDS), A320 3x-, vs airberlin (BER); to Izmir (ADB), A320 3x-, vs Sunexpress (SNS) 2x-; to Santiago de Compostela, A320 3x-, vs Vueling (VUZ), 4x-.
News Item A-2: With its 1st 777-300ER (44582, HB-44582), due for delivery in January next year, Swiss (CSR) has officially outlined the type's intended route network which thus far encompasses destinations on the USA west coast, South America, and Asia.
Beginning February 21, (CSR) will begin 777 operations from its Zurich hub to New York (JFK), followed by Montréal Trudeau on March 27, Hong Kong Chek Lap Kok on April 10, and Los Angeles International on June 9. Thereafter, flights to Bangkok Suvarnabhumi, São Paulo Guarulhos, Tel Aviv Ben Gurion, and San Francisco, California will begin during the 2nd half of the year.
As the 1st 6 777s begin to arrive during the course of next year, so they will replace 6 A340-300s which are to be returned to their lessors. Thereafter, a further 3 777s (set to arrive in February and April of 2017 and March of 2018) will replace 3 other A340s (destined for (CSR)'s leisure subsidiary, Edelweiss Air (EDE) over the same period.
As previously reported, Swiss Global Air Lines ((ICAO) Code: SWU, based in Zurich) will wet-lease the 777 fleet out to Swiss (CSR) as per its existing crew labor agreements.
News Item A-3: Swiss International Air Lines (SWISS) (CSR) has unveiled the new cabin layout of its new Boeing 777-300ERs, which will begin arriving in January 2016 through 2018 - - see attached photos of different classes.
News Item A-4: Switzerland's flag carrier, SWISS (CSR) will spend up to SFR6 billion/$6.4 billion over the next 2 years to increase capacity, with a significant proportion of that in Asia.
Following its upgraded order for 9 Boeing 777-300ERs in May this year, it will replace its aging Airbus A340-300s on several Asian direct routes with the new airplanes.
The first to see the 777 upgrades will be its Zurich - Hong Kong and Zurich - Bangkok schedules. Both routes will see a significant capacity boost using the new airplanes, and (CSR) said it is also looking at using 777s on an upgraded, Zurich - Singapore schedule.
"The new 777 airplanes will give us an immediate +40% capacity increase on our flights between Switzerland and our Asia destinations," said Aditya Khullar the SWISS Director for SE Asia.
SWISS (CSR) plans to introduce the new services to Thailand and Hong Kong by July 2016, operating a daily service. The potential Singapore service would likely start in early 2017, according to (CSR).
SWISS (CSR) said it is also ramping up its local recruitment to cater for a wider passenger profile. Khullar said (CSR) was currently taking cabin staff (CA) from Thailand, China, and other Asian countries to cater to a wider spectrum of travelers. Khullar said the decision to go with the 777 instead of Boeing's newer 787 was deliberate, and based on capacity. "The 787 wasn't big enough for our plans," he said.
(CSR) said greater cargo potential of the 777 will also help its introduction on the Asian routes. Khullar noted the growth of specialist and niche cargo traffic (uch as high-value and perishables into Singapore's Changi) was something it would be "definitely looking at" with the 777s.
September 2015: News Item A-1: (AIM) Altitude will produce illuminated panels on SWISS (CSR)’s new (9 ordered) Boeing 777-300ERs, which will be delivered starting in January 2016. The panels feature an illuminated welcome message and world map on board and are also found in the reception area of the SWISS (CSR) lounges at Zurich airport. The 2 panels, which are installed on the Door 2 Galleys, face passengers during boarding - - see attached photo - -
"CSR-2015-08 - New 777 Entry Panels.jpg."
News Item A-2: Technology specialist (WIN) is expanding its e-booking system to connect independent forwarders to 16 airlines. (WIN) already connects to over 90 airlines for electronic Air Waybill (e-AWB). The carriers available for e-bookings include British Airways (BAB), Iberia (IBE), Etihad Airways (EHD), (SAS), Singapore Airlines (SIA), Jet Airways (JPL), Swiss (CSR), American Airlines (AAL), Air France (AFA), Finnair (FIN), Korean Air (KAL), (KLM), Lufthansa (DLH), United Airlines (UAL), Emirates (EAD), and Gulf Air (GUL). The all-in-one tool includes the ability for customers to look up flight schedules, create and manage bookings in real-time, transmit (e-AWB) data, and receive full (e-AWB) tracking automatically.
October 2015: News Item A-1: The Lufthansa Group delivered a 9-month net profit of +€1.75 billion/+$ 1.97 billion, up +262.7% from +€482 million in the year-ago period. Lufthansa attributed the significant improvement to its strong summer business to the group’s passenger airlines, low oil prices, and a €500 million profit from its equity stake sale in JetBlue (JBL) in the 1st half.
It also identified a cost savings of -€1 billion for 2016 to remain competitive.
Lufthansa Group Chairman & (CEO) Carsten Spohr said the results “confirm we are on the right track, and that our chosen strategy is having its desired effect. But we cannot expect to fly for too long with a tailwind of low oil prices.”
Lufthansa refined its forecast for the full year to an adjusted (EBIT) of +€1.75 to +€1.95 billion. This forecast does not incorporate any strike-related costs that might be incurred between now and year-end.
Revenue rose +7.4% to € 24.3 billion, while investments declined -13.6% to €1.93 billion. Operating income was +€1.55 billion, up +62.2% from +€954 million in the prior-year period. The group’s operating cash flow stood at €3.2 billion after the 1st 9 months, some +€1.1 billion up year-on-year.
Favorable exchange rates, as better capacity utilization, drove the positive results. “We have deliberately refrained from further growth, and currently have 25 fewer aircraft in service than we planned to have at this time back in 2012,” Spohr said.
The group generated traffic revenue of €19.4 billion, up +5% from €18.46 billion. Its 9-month adjusted (EBIT) margin amounts to 7%, some +2.6% points above previous year’s level.
“If we exclude the fuel cost and currency factors, our unit costs saw a further increase in the 3rd quarter. And we cannot be satisfied with this trend,” (CFO) Simone Menne added.
The group saw improvement at Austrian Airlines (AUL), which reported a positive (EBIT) of +€61 million for the period, reversed from a -€4 million loss in the year-ago period. Swiss International Airlines (CSR)’s 9-month earnings rose by +€163 million to +€375 million.
Germanwings (RFG) has not just reached breakeven, but clearly exceeded its target, according to the group. “So we must continue to work hard on the competitiveness of our cost structures. And here we have already identified cost savings of around -€1 billion for 2016,” Carsten Spohr said, adding, “Our aim here is not to have to further adjust our network to our costs, but to give ourselves a competitive cost structure that will enable us to once again open up new routes and tap new markets.”
December 2015: News Item A-1: "Lufthansa Technik (DLH) (LTK) to Provide Technical Component Support (TCS) for SWISS (CSR) 777 Fleet"
by Avionics Today, Juliet Van Wagenen, December 28, 2015.
Swiss International Air Lines (SWISS) (CSR) has contracted Lufthansa Technik (DLH) (LTK) to provide component support for its future Boeing 777 long-haul fleet. The corresponding Total Component Support (TCS) contract will run for a period of 10 years and includes 9 777s.
Lufthansa Technik (DLH) (LTK) is currently working on preparations for supplying components for SWISS (CSR), which includes the basic stocking of the home base with spare parts at the airline's base airport in Zurich, Switzerland. The start date for supply is January 1, 2016.
News Item A-2: Bruce Aerospace has obtained both (FAA) and (EASA) supplemental type certificates (STC)s for Full Color (LED) Cabin Mood Lighting on Swiss International Air Lines (CSR)’s Airbus A330-300s.
January 2016: News Item A-1: Lufthansa Technik (DLH) (LTK) has contracted with Swiss International Air Lines (CSR) to provide component support for its future 9 Boeing 777s. The Total Component Support contract will run for 10 years, from January 1, 2016.
News Item A-2: Lufthansa Group subsidiary, Swiss International Air Lines (SWISS) (CSR), which will take delivery of the 1st of 9 Boeing 777-300ERs on January 29, has unveiled details on its Internet connectivity in all 3 cabin classes.
The new 777 will offer a roaming in-flight phoning option for a 1-year trial period. Passengers can choose of 3 data packages for its in-flight Internet option. A 20 MB SWISS Connect data package costs CHF 9/$8.80, a 50 MB package costs CHF 19 and the 120 MB package is offered for CHF 39.
1st-class (F) customers can use a 50 MB SWISS Connect data package free of charge.
(CSR) is further considering whether to extend this in-flight Internet connectivity to its Airbus A330 and A340 long-haul fleet.
(CSR), the Star (SAL) Alliance member also started a one-year trial period where in-flight passengers can make phone calls and send (SMS) text messages and data via roaming, based on recent market research among its customer base. The prices of these services will be set by the corresponding contractual agreements between AeroMobile and the customer’s phone service provider.
SWISS (CSR) will be closely monitoring and assessing any and all feedback from its customers.
During night flights, the roaming phone services will only be available at food service times. As soon as the cabin lighting is switched off, the feature may no longer be used.
In the new upgraded 340-seat cabin layout, the 777 offers 8F 1st-class seats, 62C business class and 270Y economy class seats.
The Boeing 777-300ERs will enter scheduled service on (CSR)'s long-haul network in February. They will be deployed on routes from Zurich to Hong Kong, Bangkok, Los Angeles, San Francisco, São Paulo Guarulhos, and Tel Aviv.
News Item A-3: "SWISS (CSR) Takes Delivery of 1st 777-300ER" by
Kurt Hofmann, January 29, 2016.
Lufthansa Group subsidiary, Swiss International Air Lines (SWISS) (CSR) has taken delivery of the 1st of 9 Boeing 777-300ERs in Zurich.
By August, 6 777s should be in service, with +3 more expected by 2018. The 777s will be used to replace some of (CSR)’s 15 Airbus A340-300s.
Outgoing SWISS (CSR) (CEO) Harry Hohmeister said, “During 2016, we will decide the future for the remaining A340-300s. [We will decide] if we will renovate some aircraft, because they are relatively young, or replace them. I personally hope that we will order more 777s.”
The new 777s will create +360 new jobs this year, “plus +500 more new jobs next year,” Hohmeister said. “Directly in Switzerland, most of them will be cabin crews (CA).”
SWISS (CSR)’s Boeing 777-300 is configured for 340 seats. It is the biggest airplane in its fleet, which operates 81 aircraft.
The 777 fills a need for bigger sized airplanes for feeder traffic to its main-hub Zurich. “This goes hand in hand with the delivery of the Bombardier CSeries. We expect to have the 1st aircraft in summer available,” (CCO) Markus Binkert said. SWISS (CSR) also expects to take delivery of an additional Airbus A321.
Incoming SWISS (CSR) (CEO) Thomas Klühr will start his new job on Monday, February 1, replacing Hohmeister, who had been SWISS (CSR) (CEO) for 6 years. He will move to the Lufthansa (DLH) head office in Frankfurt to lead the Commercial management of the group’s hubs and premium airlines: (DLH), (CSR) and Austrian Airlines (AUL).
“SWISS (CSR) today is a different story. (CSR) is on its way to globalize,” Hohmeister said.
The (CSR) 777-300ER’s first commercial long-haul flight will begin February 21 with 4x-weekly services from Zurich to New York (JFK). The 777 will be then switched to the Zurich - Montreal route, starting daily services from March 27.
During the summer, they will be deployed on routes from Zurich to Hong Kong, Bangkok, Los Angeles, San Francisco, São Paulo Guarulhos, and Tel Aviv.
February 2016: News Item A-1: Swiss International Air Lines (SWISS) (CSR) expects to operate between 6 and 9 Bombardier CS100 jets by the end of 2016, outgoing (CEO) Harry Hohmeister said. Harry has moved to Lufthansa (DLH)’s head office in Frankfurt to lead the commercial management of the group’s hubs.
News Item A-2: Amadeus Altea was selected by Swiss International Air Lines (CSR) as its passenger service system, and will be used to run reservations, book levels, ticketing, passenger handling and flight load calculations.
News Item A-3: Boeing (TBC) and Swiss International Air Lines (SWISS) (CSR) have signed agreements for several Boeing solutions to increase efficiency and streamline maintenance performance tasks. The Boeing tools, Airplane Health Management, Maintenance Performance Toolbox and Loadable Software Airplane Part (LSAP) Services, will use real-time information to optimize SWISS (CSR) maintenance on new 777s. SWISS (CSR) is the 1st airline to integrate Boeing Software Distribution Tools, a component of (LSAP), with 777s.
News Item A-4: Swiss International Air Lines (SWISS) (CSR) has selected Panasonic Global Communications Services to provide in-flight Wi-Fi and 3G phone services on its 9 Boeing 777-300ERs, which entered intercontinental services on February 21.
SWISS (CSR) is leveraging Panasonic’s broadband offering, which will allow passengers to email, surf the Internet, use social networks and make calls, Panasonic said. (CSR) has also introduced Panasonic’s eXcite2 software into its in-flight entertainment (IFE) systems for enhanced touchscreen performance with faster navigation and response, 3D effects and animation, as well as more dynamic graphics and richer content. The new software allows airlines to reduce the time required to redesign their user experience and makes frequent updates easier. The system also allows SWISS (CSR) to easily brand its own content, which can be used to create uniformity across both in-seat monitors and synchronized passengers’ own personal devices.
By August, 6 777s should be in service, with +3 more expected by 2018.
March 2016: News Item A-1: The Lufthansa Group has reported a 2015 net profit of +€1.7 billion/+$1.9 billion, up significantly from a net profit of +€55 million in 2014, although the main contributors were lower fuel prices and money received from withdrawing its stake in USA carrier JetBlue Airways (JBL).
(CFO), Simone Menne confirmed the improved results were helped by the “known effect of the (JBL) write-back of €503 million, as well as -€976 million less in fuel costs.”
It was reported February 18 that Lufthansa (DLH) shed its stake in USA-based carrier (JBL) after more than >7 years. The exit plan was through an early redemption of (DLH) bonds convertible into (JBL) shares.
Full-year revenue increased to €32 billion, up +6.8% from 2014, while capital expenditures were down 7.5% to €2.57 billion. The investments were made mainly in fleet and new on board products.
(DLH) Chairman & (CEO), Carsten Spohr told analysts and reporters in Frankfurt: “With the Germanwings (RFG) tragedy, 2015 was an emotionally very challenging year for the Lufthansa Group: a year of extremes. The numerous strikes were a further burden. Nevertheless, we continued to successfully work on our group’s future viability and our strategic realignment is progressing well.”
Spohr said the company has already paid a double-digit million euro amount to relatives and friends of those who were killed in the March 24, 2015 Germanwings (RFG) crash. It was discovered the Airbus A320 was flown deliberately into the French Alps during a scheduled flight from Barcelona to Düsseldorf, killing all 150 people aboard.
The adjusted (EBIT) of the Passenger Airline Group was €1.5 billion (compared to €701 million for 2014), doubling the adjusted (EBIT) margin to 6.1%.
The adjusted (EBIT) of Lufthansa (DLH) Passenger Airlines increased +143% to €970 million.
Results for Eurowings (EWG) (including Germanwings (RWG)) were also included in these numbers. Eurowings (EWG) alone (which will be reported separately from 2016 onward) achieved an adjusted (EBIT) of €8 million on revenues of €1.9 billion (a performance that “not only meets but exceeds the ambitious 2015 target of a break even for the group’s point-to-point business),” Spohr said.
“The doubling in the passenger airlines’ result is not only due to lower fuel costs, but also to the favorable developments in our passenger volumes and to our capacity discipline,” Spohr said.
Lufthansa (DLH) had been strict in aircraft capacity in 2015 and operated -15 fewer aircraft compared to the year before.
The group transported nearly 108 million passengers, which Spohr described as a new record. “We still have to reduce our fleet types further. We want to phase out 3 sub-fleets this year by phasing out Boeing 737, Fokker F 70/F 100 and Avro [aircraft]. By 2025, the Lufthansa Group will receive 251 new aircraft,” Spohr said.
Its subsidiary, Swiss International Air Lines (CSR) achieved earnings of +€429 million, an increase of +54% and an (EBIT) margin of 9.4%.
Austrian Airlines (AUL) posted earnings of +€52 million compared to +€9 million in 2014.
Lufthansa Group’s (ASK)s rose +3% to 268.1 billion, (RPK)s were up +2.7% to 214.6 billion, producing a load factor of 80.1% LF, up +0.3% over the year-ago period.
(CFO), Simone Menne said (DLH) plans to invest €2.7 billion in 2016 and €2.5 billion in the following years.
Nevertheless, (DLH) adjusted its planned growth for 2016 slightly downward as a result of worldwide instability. “In total, we are expecting a slight earnings improvement for the passenger airlines in 2016,” Menne said. “Unit costs for Lufthansa Passenger Airlines are still too high. That means competitive collective wage agreements are necessary. The wage negotiations at (DLH) Passenger Airlines are still ongoing,” Spohr said. “For 2016 we are aiming to increase our result for the Lufthansa Group again, to enhance the profitability of our hub airlines by further modernizing their fleets and further increasing efficiency,” Spohr added.
News Item A-2: SWISS (CSR) has introduced its Boeing 777-300ER to New York (JFK) Terminal 4. (CSR) will also be flying the 777-300ER primarily on services from Los Angeles and San Francisco to Switzerland, and other European leisure cities in the summer of 2016 in code share with Star (SAL) Alliance member, United Airlines (UAL).
News Item A-3: "Bombardier Begins CSeries European Route-proving Tour" by (ATW) Alan Dron, March 7, 2016.
Bombardier (BMB) has started route-proving flights with its CSeries CS100 regional jet in Europe, as the aircraft nears service entry (EIS) with Swiss International Air Lines (CSR). (CSR) is due to take delivery of its first CS100 in the (2Q).
The month-long route-proving program is being operated by (BMB) from (CSR)’s Zurich hub. The exercise will include flights to several major European cities including Brussels, Vienna, and Warsaw.
The program follows a similar exercise conducted last year across North America that encompassed more than >35 cities.
Over the next few weeks the CS100 will conduct flights using typical Swiss (CSR) flight routings and operational procedures. They are intended to give an accurate indication of how the aircraft will perform in a typical airline schedule to and from different airports.
Airfield performance, landings, turnarounds and on-ground operations are some of the characteristics that will be observed.
“As the launch customer and the 1st airline that will operate the CS100, the European route-proving program is very important to us and will provide a real indication of how the aircraft will operate in our network when we take delivery of our 1st CS100 in the next few months,” SWISS (CSR) Chief Technical Officer Peter Wojahn said.
“The CS100 continues to attract curiosity and keen interest when visiting airports around the world and now, it will be spotted in cities across SWISS (CSR)’s network—performing as if already a member of the airline’s fleet,” Bombardier Commercial Aircraft President Fred Cromer said.
“The route-proving flights will bring the CSeries aircraft closer to the flying public in Europe, who will ultimately be amongst the 1st in the world to fly aboard the aircraft.”
Separately, (BMB) confirmed that the last of 8 CSeries flight test vehicles (the 2nd CS300) entered the flight test program in Mirabel, Québec last week.
“March is turning out to be a very productive month for the CSeries aircraft program,” VP CSeries Aircraft Program, Rob Dewar said. “In addition to the next phase of route-proving, last week we celebrated the first flight of the eighth and final flight test vehicle. It's only the second CS300 flight test vehicle in the program and one that is equipped with a full production interior.”
News Item A-4: The 1st CSeries CS300 for launch operator airBaltic (BAU) is on the final assembly line at Bombardier (BMB) Commercial Aircraft’s plant in Mirabel, near Montreal.
At the same time, the first aircraft for CS100 launch operator Swiss International Air Lines (CSR) is complete and has been powered up at Mirabel ahead of the first flight.
The CS100 is on track to enter service with SWISS (CSR) in June, and the CS300 with airBaltic (BAU) in the second half of the year, (BMB)r VP CSeries Program, Rob Dewar said.
The 1st production CS100, aircraft (P1), has begun route-proving flights for SWISS (CSR). Based in Zurich, P1 has so far flown to Hannover and Brussels, flown by Bombardier (BMB) pilots (FC) but with (CSR) proving ground support.
Initial flights are there-and-back, but the CS100 will shortly begin operating 6x-daily between different destinations, as it will in SWISS (CSR) service, to iron out any issues.
P1 has completed 450 hours of a 600-hour extended function-and-reliability test phase to be completed before entry into service (EIS). There have been snags, but no dispatch interruptions so far, Dewar said.
P1 is in the Build 6 certification standard, and Bombardier (BMB) will shortly begin flying the (EIS) standard, Build 7. This cleans up nuisance warnings and introduces capabilities including Category 2B landings, hot-and-high runways and steep approaches.
The first of two CS300 flight-test aircraft, (FTV7), is now at around the 500-hour mark. The second joined the flight test program at Mirabel March 3 and is the first with an interior. Dewar said the aircraft was on track for certification about six months after the CS100, which received Transport Canada approval in December.
Nine CSeries have been built so far, he says, and CS100s up to serial number (50015) have progressed through fuselage and wing join at Mirabel. The first CS300 for (BAU) has completed fuselage join.
(BMB) plans to deliver 15 - 20 CSeries this year to SWISS (CSR), airBaltic (BAU) and other operators. The CS100 can seat 100 - 133 passengers, but is typically being specified with around 117 seats dual-class. Able to accommodate up to 160, the longer CS300 is being specified typically with 148 seats single-class and 137 dual, Dewar said.
April 2016: News Item A-1: "Lufthansa Group, Singapore Airlines Expand Asian Code Shares" by (ATW) Kurt Hofmann, April 6, 2016.
Star (SAL) Alliance members, Lufthansa (DLH), Singapore Airlines (SIA), and Swiss International Air Lines (SWISS) (CSR) are expanding their code share agreements as part of a commercial joint venture (JV) that was concluded in November 2015.
(SIA) expanded connections to >20 code share routings via the Lufthansa´s Group’s Munich and Zurich hubs, to and from various points in Austria, Belgium, Germany, and Switzerland.
Lufthansa (DLH) will add its code on (SIA) flights via Singapore to Denpasar and Jakarta (Indonesia).
In addition, SWISS (CSR) will add its code on (SIA) flights from Singapore to Australia’s Adelaide, Brisbane, Melbourne, Perth, and Sydney, as well as to Jakarta, Kuala Lumpur (Malaysia), Auckland, and Christchurch (New Zealand).
News Item A-2: Swiss International Air Lines (SWISS) (CSR) expects to put its first Bombardier CSeries aircraft (a CS100) into service July 15 on its first commercial flight: LX638 from Zurich to Paris Charles de Gaulle.
(CSR), the Lufthansa (DLH) subsidiary and Switzerland flag carrier will take delivery of the CS100 in June, becoming the launch operator for the new aircraft type. The much-delayed CSeries aircraft was originally supposed to enter service in late 2013.
“We expect to have up to nine CSeries aircraft in operation this year; this is quite a number,” (CSR) (CEO), Thomas Kluehr confirmed.
Other destinations to initially receive CS100 service will be Manchester, Prague, and Budapest, followed by Warsaw and Brussels at the end of August. In September, the CS100 will serve Nice, Stuttgart, Hanover, Milan, Florence, and Bucharest. The CSeries is expected to serve the Zurich - London City route from the first quarter of 2017.
The CS100 will replace the Avro RJ100 as new jets arrive, because of its -25% reduced operating costs.
SWISS (CSR) expects to take delivery of 30 CSeries aircraft from 2016-2018, including at least 10 of the larger CS300s.
The arrival of the new CSeries aircraft will further create some 150 new positions within the company’s cabin crew (CA) corps.
May 2016: News Item A-1: The Lufthansa Group recorded a net loss of -€8 million/-$9 million for (1Q) 2016, reversed from a net profit of +€425 million for the year-ago period.
The group, which comprises Lufthansa (DLH), low-cost carrier (LCC) Eurowings (EWG), Austrian Airlines (AUL), and Swiss International Air Lines (CSR), made the loss on revenue of €6.91 billion, slightly down on last time’s €6.97 billion.
The Lufthansa group said the sharp reversal in profits compared to a year ago was because the previous year’s quarter included a +€503 million boost from the early conversion of a convertible bond with USA independent carrier, JetBlue Airways (JBL).
Even after stripping out this factor, however, (1Q) cash flow from operating activities declined -21.5% to €1.1 billion, the result of the increasing trend among customers of booking tickets closer to travel dates, which means money tended to accrue to the company later than in past years. However, that effect should even out over coming months, provided overall bookings remain at current levels, Lufthansa said.
Although the group enjoyed “significantly higher” passenger volumes, traffic revenue dipped -3.9%, a reflection of heavy downward pressure on pricing.
Despite the headline figures, the new business year had seen a “solid start,” Deutsche Lufthansa (CFO), Simone Menne said. “We are seeing significant pricing pressure at our passenger airlines, and even more at Lufthansa Cargo (LUB). “But the substantial unit cost reduction at our passenger airlines has more than made up for the pricing declines. And we are not just benefiting from further fuel cost reductions and non-recurring effects. We have also improved our operating cost structure. This marks an important change in trend in our unit cost development.”
There was a -4% reduction in unit costs, excluding fuel and currency conversion effects. Reduction in fuel costs was -€237 million over the period.
She added the new Eurowings (EWG) division had begun life well, with a “very encouraging load factor of 94.2% LF” on its long-haul services in the first quarter, with positive customer feedback. “Its first-quarter result is a decline on last year’s, but this partly reflects (EWG)’s startup costs and we feel that the new Eurowings (EWG) is well on track.”
While both Lufthansa (DLH) and Austrian Airlines (AUL) posted improved (EBIT) figures, SWISS (CSR) numbers dipped, mainly the result of reduced demand because of the strength of the Swiss franc. Lufthansa Cargo (LUB)’s figures, meanwhile, suffered from global overcapacity in the cargo market, particularly on transatlantic routes and it is bracing itself for a challenging financial year, the group said.
Looking ahead, it does not expect to see pricing pressures ease over the rest of the year, with yields under particular pressures to and from South America because of the region’s weak economy.
Bookings from Chinese and Japanese travel groups are also down. However, both Europe and North America (Lufthansa (DLH)’s largest and most important regions for traffic) are showing “more stable trends.”
News Item A-2: Swiss International Air Lines (CSR) plans to replace Airbus A330 and A340 wide bodies on several Asian schedules with new Boeing 777-300ERs. The move to the new airplane comes as (CSR) looks to strengthen its foothold in the Asian market with upgraded schedules to Singapore, Bangkok, and Hong Kong.
“We are looking to focus on expanding the products we already have in the region,” Lufthansa (DLH) Regional Director, Heiko Brix said. “The move to 777s will bring a new level of service from our group.”
The 777s will be introduced throughout 2016, and will be taken from (CSR)’s 9-strong order for the 777 originally placed in 2013. (CSR) will use a 3-class configuration with 8F firs t-, 62C business, and 270Y economy-class seats.
As the new 777s are deployed, (CSR) will progressively retire its fleet of 15 A340s, which will be completely replaced by 2018.
Brix said it is likely that in the future, (CSR) would fly daily 777 schedules to Singapore, and said it would also consider expanding to an “increasing number of destinations” across the region. He said the recent agreement with Singapore Airlines (SIA) would add to (CSR)’s regional reach, adding that improved links between the 2 major financial centers (Zurich and Singapore) should prove attractive to business (C) travelers.
Brix added the Lufthansa Group is also looking to expand its low-cost business in Asia through its Eurowings (EWG) subsidiary.
He said business in the low-cost sector “is increasing,” but any new destinations in Southeast Asia would need close scrutiny, before they were confirmed. “But the signs are optimistic,” he added.
News Item A-3: 777-3DEER (44585, HB-JND), ex-(N5514K) and Bombardier CS100 (50010, HB-JBA), ex-(C-FPAI) delivered to Swiss Global Air Lines (CSR). Swiss Global Air Lines is (ICAO) Code: LX, (IATA) Code: SWU, Call Sign: EUROSWISS.
A340-313X (263, HB-JML) ferried Zurich to Lourdes for storage and returned to (GOAL) after lease and sold to AerFin for parting out.
June 2016: News Item A-1: The European Aviation Safety Agency (EASA) and the (FAA) have granted type validation to the Bombardier CSeries 100 (CS100), paving the way for delivery to launch customer (SWISS) (CSR) at the end of June.
The European and USA approvals build on the CS100’s original type certification which was awarded by Transport Canada in December 2015.
Under an agreement between the authorities, (BMB)’s home regulator performs the primary aircraft certification and other authorities validate that approval. “Rather than redo the whole work, we only concentrate on certain elements, because we believe in the work done by the Canadian authorities.” He added that the timing of the validation was as expected.
Likewise, the (FAA) green light paves the way for the CS100 to enter service in the USA.
Bombardier (BMB) said the twin approvals mark 1 of the final chapters for the program, following comprehensive testing. The CSeries has now accumulated >5,000 flight hours. The 1st CS100 will be delivered to (CSR) at the end of June and will enter commercial service in July.
News Item A-2: Swiss International Air Lines (CSR) appointed Christoph Ulrich as Head of Human Resources (HR), effective July 1. Ulrich is currently Head of Compensation & Labor Agreements.
News Item A-3: Bombardier (BMB) delivered the 1st CSeries aircraft to Lufthansa (DLH) subsidiary, (CSR) at ceremonies in Montreal on June 29.
July 2016: Bombardier (BMB) marked the milestone in the CSeries family aircraft program with the handover to (CSR) of the 1st of 30 airliners on order.
SEE PHOTO - "CSR-2016-07 - 1st CS100 Handover to Swiss.jpg."
Bombardier (BMB) said it has managed to increase range of both the CS100 and CS300 from restricted airports. Modifications, such as a different setting for slats and flaps and changes to climb thrust integration, result in a 150 nm increase from London City Airport (LCY) for the CS100, CSeries Program Head Rob Dewar said. These changes also lead to a 450 nm improvement from Denver for the larger CS300.
August 2016: News Item A-1: Lufthansa (DLH) subsidiary, (CSR) said the 1st 30 days of Bombardier CS100 commercial operations have gone according to plan, despite minor glitches. (CSR), the Star (SAL) Alliance member is the 1st operator of the CSeries.
(CSR) launched the 1st commercial CS100 scheduled flight from Zurich to Paris Charles de Gaulle on July 15. A 2nd CS100 began scheduled operations on August 18, also from Zurich to Paris Charles de Gaulle.
(CSR) spokesperson Karin Mueller said: “We are satisfied with the first 30 days since starting entry-into-service [EIS]; of course, there is potential for optimization.”
Some of the glitches were “minor” technical and operational uncertainties (for example, de-icing, air conditioning and ground handling).
On July 19, a (CSR) CS100, en route from Switzerland to the UK, had to return after experiencing a problem with its air conditioning system. “These glitches had been in an area what you can expect during (EIS). There have never been signs that the entire fleet introduction is in danger.”
Bombardier (BMB) VP CSeries Rob Dewar said on July 6 that about 20 (BMB) specialists would be based in Zurich to support (CSR) initially. “It is critical for us to have a successful (EIS).”
Mueller said that support from Bombardier (BMB), as well as daily experience in operating the new aircraft, have reduced initial uncertainty “significantly.”
She said no flights were canceled during the 1st 30 days of CSeries operations, even though the aircraft had to remain on the ground once for technical reasons.
(CSR) said the CS100 operates on a 99% dispatch reliability.
After the 1st 4 weeks, the 1st CS100 aircraft (HB-JBA) operated at a higher reliability rate compared to other new-generation aircraft types, according to Mueller. “We are satisfied with the values, since they meet the expectations of a new aircraft.”
The target is to operate the CS100 fleet with 99% dispatch reliability year round, according to Mueller. “To get reliable information [of CSeries operations], there must be a minimum of 5 CS100s operating scheduled services for at least 3 months.”
Inside the aircraft, minor adjustments had been necessary, like loudspeaker noise or the installation of a cabin class divider. Passenger feedback has been so far mostly positive, she said.
(CSR) expects delivery of a 3rd CS100 (HB-JBC) within the next few weeks, but Mueller declined to give details for further CS100 deliveries. “We want to be flexible [on further deliveries] and to bring in 1st our experiences from the scheduled operations,” she said. This needs more time, which is why further deliveries had been moved back slightly. “But for a new type of aircraft, this is not unusual,” Mueller added.
On July 15, (CSR) (CEO) Thomas Kluehr said (CSR) will take delivery of 9 CS100s in 2016. It will take delivery of 1 aircraft per month in July, August and September. After that, deliveries will increase to 2 aircraft per month.
(CSR) originally ordered 20 CS100s and 10 CS300s, +30 options. On June 5, (CSR) announced it would convert 5 of 20 CS100 orders into CS300s.
CS100 (50011, HB-JBB "Canton de Geneve"), ex-(C-FPBD) delivery. Avro RJ100 (HB-IXQ) withdrawn from use (WFU), to be usaed for spares.
News Item A-2: See video of Swiss First Class 777-300ER to Bangkok:
September 2016: News Item A-1: "More Than Half of 2016 CSeries Deliveries Delayed by (GTF) Ramp-up Issue" by (ATW) Aaron Karp email@example.com, September 6, 2016.
Bombardier (BMB) said it will deliver seven CSeries aircraft in 2016 instead of 15 as planned, citing Pratt & Whitney (PRW) (PW1500G) geared turbofan (GTF) engine delivery delays.
Both (BMB) and (PRW) emphasized that the (PW1500G)-powered CS100, which entered service with (CSR) in July, is performing well. But ramping up production of the (GTF), another variant of which also went into service on the Airbus A320neo earlier this year, is proving to be a challenge for East Hartford, Connecticut-based (PRW).
“In terms of production, we’ve made significant headway in the supply chain, but there is some pressure on new engine deliveries for this year,” a (PRW) spokesperson said. “We are working closely with our customers on the delivery schedule, and we are keeping them apprised of the progress being made.”
Bombardier (BMB) Commercial Aircraft President Fred Cromer said, “We are working very closely with Pratt & Whitney (PRW) to quickly address this supplier ramp-up issue and to ensure we have a strong supplier base to support our long-term growth objectives. We are very confident in our production ramp-up plan, including our ability to meet our production goal of 90 to 120 aircraft per year by 2020.”
Bombardier (BMB) has already delivered 2 CS100s to (CSR). Those aircraft combined have flown nearly 400 revenue flights, accumulating nearly 600 hours of in-service flight time, according to (BMB).
“Since day one, the (GTF) engine has met or exceeded every performance specification (16% fuel burn [improvement], minus -50% emissions and a -75% reduction in noise footprint,” the (PRW) spokesperson said.
(BMB) plans to deliver a 3rd CS100 to SWISS (CSR) in October. (CSR) had planned to take delivery of nine CSeries aircraft in 2016, with deliveries rising from one per month from July through September to 2 monthly from October through December. The larger variant of the CSeries, the CS300, remains on schedule to enter service with airBaltic (BAU) in the 4th quarter of this year, the (BMB) said.
The CSeries delivery delays are a setback for a program that had gained momentum after experiencing multiple program delays, including flight testing being grounded for >3 months in 2014 following a (PW1500G) engine fire. But Bombardier (BMB) executives have been touting significant program progress in recent months. Prior to the service entry with (CSR), (BMB) booked 2 major orders for the narrow body aircraft (75 firm CS100s from Delta Air Lines (DAL) and 45 firm CS300s from Air Canada (ACN).
There were (GTF)-powered A320neo delivery delays in the 1st half of this year related to an engine startup restriction issue that (PRW) characterized as “teething problems,” for which (PRW) has provided a fix. The CSeries delivery delays are not connected to that issue, according to Bombardier (BMB) and Pratt (PRW).
October 2016: News Item A-1: SWISS to Fly Boeing 777s to Miami, San Francisco" by (ATW) Kurt Hofmann firstname.lastname@example.org, October 10, 2016.
Lufthansa Group carrier Swiss International Air Lines (SWISS) (CSR) will introduce the Boeing 777-300ER onto existing services to Miami and San Francisco from October 30 for the upcoming 2016 - 2017 winter schedules.
From October 30, the route will use the 777-300ER on 1 of its 2 Monday, Wednesday, Friday and Sunday flights. SWISS (CSR) will also operate the new 777 on Zurich - San Francisco services from February 16, 2017, on Tuesday, Thursday and Saturday frequencies. (CSR) will continue to use the Airbus A330-300 or A340-300 on further services to Miami and San Francisco.
Services between Zurich and Singapore, which currently use 777-300ERs 3x-weekly, will become a daily 777 operation from March 3, 2017. (CSR)’s 340-seat 777-300 is the biggest airplane in its 6-strong 777 fleet. 3 more of the type are expected by 2018.
(CSR) will serve 100 destinations (75 European and 25 intercontinental) in 44 countries in the 2016/17 winter timetable period.
News Item A-2: Lufthansa Group subsidiary, Swiss International Air Lines (SWISS) (CSR) has ordered a 10th Boeing 777-300ER, to be delivered in 2018, (CSR) announced October 7. The 777-300ER will be used to replace some of (CSR)’s Airbus A340-300s. Boeing has now booked orders for 799 777-300ERs.
(CSR) (which will transfer 4 of 9 A340-300s to its leisure subsidiary Edelweiss Air (EDW) by 2018) will keep 5 A340s in the (CSR) fleet. The A340s are to be provided with a new cabin product, including in-flight entertainment (IFE) system and internet connectivity.
After the refurbishment, the A340s will have 223 seats (8F in 1st class, 47C in business and 168Y in economy class. The new 1st (F) class cabin will closely model that of the Boeing 777. Business (C) class seats will be the 777 model, while economy (Y) class will be given a new type of seat. The new (IFE) system will also be modeled after the 777’s (IFE) system.
Following the 777 introduction, (CSR) will extend its SWISS Connect internet connectivity facility to its Airbus A330-300 and A340-300 fleet.
14 A330s will be equipped with the requisite Panasonic technology (eXConnect for the internet and eXPhone for telephone service) between now and next spring. In 2018, the 5 A340s will be equipped as part of their cabin refurbishment.
November 2016: News Item A-1: Lufthansa (DLH) and Swiss International Air Lines (SWISS) have released their 2017 summer destinations.
For Lufthansa (DLH), new flights include 3x-weekly Frankfurt - Santiago de Compostela (Spain) service from March 27, 2017; 2x-weekly Frankfurt - Bordeaux (France) from April 2; 1x-weekly Frankfurt - Shannon (Ireland) from April 29, and 1x-weekly Frankfurt - Heringsdorf (Germany) from April 15; as well as year-round, 1x-weekly Frankfurt - Funchal (Portugal) flights.
From its Munich hub, (DLH) will launch 4x-weekly Munich - Nantes (France) services from March 28, 2017 and 1x-weekly Munich - Santiago de Compostela (Spain) service from April 9.
For SWISS (CSR), new seasonal routes include 1x-weekly service from Zurich to Bergen (Norway), Cork (Ireland) and Sylt (Germany) from June, becoming 2x-weekly in July and August. From July, (CSR) will operate 2x-weekly Zurich - Figari (France) and beginning in April, will provide 2x-weekly Zurich - Niš (Serbia) service.
(CSR) plans to operate Bergen, Cork, Figari, and Sylt services with its Bombardier CSeries 100.
News Item A-2: Swiss International Air Lines (SWISS) (CSR) subsidiary Edelweiss Air (EDE) has taken delivery of the 1st of 4 former SWISS (CSR) Airbus A340-300s. The aircraft will undergo cabin-reconfiguration through SR Technics (SWS).0
Edelweiss Air (EDE) Head of Corporate Communications Andreas Meier said the 1rst flight will be December 1, from Zurich to Cape Town, South Africa. A 2nd A340-300 will join the fleet in April 2017; the 3rd aircraft in June 2018; and the final one is expected in September 2018. “Our A340s will operate throughout the Edelweiss Air (EDE) long-haul network, especially on long sectors like from Zurich to Rio de Janeiro (Brazil), San Jose de Costa Rica or to Phuket (Thailand),” Meier said.
(EDE), which flies mainly on leisure routes, will operate flights under a SWISS (CSR) code share.
Edelweiss Air (EDE) operates 1 A330-200, 2 Airbus A330-300s and 6 A320s to >40 destinations. “Beside the 4 A340s, we have no additional aircraft deliveries planned,” he said.
Meier said the introduction of the new aircraft type leads (EDE) into a huge program of training and type ratings for its current employees. “But we are also looking for many more new colleagues. The number of our employees will grow from 530 to 900 by the end of 2018. Our recruiting program for new employees is on track,” he said.
SWISS (CSR) once operated 15 A340-300s and will keep 5 A340s, which will be outfitted with new cabin products, including in-flight entertainment and internet connectivity.
(CSR) has ordered 10 Boeing 777-300ERs to replace some A340s. So far, SWISS (CSR) has taken delivery of 6 777s.
December 2016: News Item A-1: "Lufthansa Acquires Brussels Airlines, to Become Part of Eurowings (EWG)" by (ATW) Kurt Hofmann, December 15, 2016.
The Lufthansa Group has taken over 100% of SN Airholding, the parent company of Brussels Airlines (DAT)/(EAD), in a deal to fully integrate the Belgian carrier into Lufthansa (DLH)’s Eurowings (EWG) Group in 2018.
(DLH)’s supervisory board agreed to exercise a call option on the remaining 55% stake, effective December 31. The transaction will close by the beginning of January 2017. The price for the acquisition of the remaining 55% of the shares is €2.6 million/$2.8 million, which will be transferred to a consortium of 30 shareholders.
“We have seen a series of radical changes in the industry and, over the last several months, competition has increased to a high level. We see a lot more consolidation to come. The strong [airlines] are getting bigger and this is what (DLH) intends to do,” Lufthansa Group (CEO) Carsten Spohr said
(DLH) said Brussels Airlines (DAT)/(EAD)’s attractive market, its established African network and its advantageous cost structure (which has allowed the airline to compete with the tough low-cost competition in the Belgian market) will further strengthen the Lufthansa (DLH) and Eurowings (EWG) market position.
“Africa is one of the reasons we have invested in (DAT)/(EBA), and only airlines that have a highly competitive cost structure have a place in the Lufthansa Group,” Spohr said. After the acquisition, Brussels Airlines will operate its 23 long-haul routes, as well as 79 destinations in Europe, under the umbrella of the Eurowings Group.
“With Brussels Airlines, the Eurowings Group will grow to 180 aircraft. Creating a more pan-European Eurowings is a big step in that direction. The Lufthansa Group is number one in Brussels. Aviation in Belgium needs a stronger partner,” Spohr said.
Lufthansa acquired a 45% share of SN Airholding 8 years ago. “In 2008 we had only 3 long-haul aircraft. Today we have 9, and soon we will fly to Mumbai. All this would not have been possible without (DLH),” SN Airholding board Chairman Viscount Etienne Davignon said. Between 2013 and 2015, passenger numbers have increased +30% to 7.5 million. The brand Brussels Airlines will, over time, be complemented by the claim “member of the Eurowings Group,” he said.
Brussels Airlines’ fleet harmonization toward an Airbus A320 family fleet for the European network will be continued. The fleet comprises 42 short- and medium-haul aircraft, including 2 in wet lease, and 9 A330s. “We are sure that a big joint decision will be the future long-haul fleet of Brussels Airlines,” Spohr said.
In the past 3 years, Brussels Airlines has reduced overall costs by -15%. For the fiscal year of 2015, Brussels Airlines generated an operating profit of +€43.4 million. With the full integration of Brussels Airlines, synergies will add up to a mid-double-digit million euro amount per year. “We understand the local brand. We believe there is a need to connect Europe to the world and not to be connected [from others]. Today 120,000 people work for Lufthansa, which will increase to 124,000 [with Brussels Airlines], and we are getting to 700 aircraft next year,” Spohr said.
“Over the past 8 years, our collaboration with (DLH) has proven its potential to create perspectives and safeguard jobs. Furthermore, the Lufthansa Group will enable us to expand our African reach by positioning Brussels as the Sub-Saharan Africa Hub of the Lufthansa Group,” Davignon said.
The Brussels Airlines management board remains unchanged under the leadership of (CEO) Bernard Gustin. In addition, an advisory council will be established and will support the integration process.
News Item A-2: "Lufthansa, Etihad Finalize Code Share, Wet Lease of 38 Airberlin Aircraft" by (ATW) Kurt Hofmann email@example.com, December 16, 2016.
The Lufthansa Group and Abu Dhabi-based Etihad Aviation Group have finalized a code share deal and wet-lease agreement for 38 airberlin (BER) Airbus A319/A320 aircraft operating for Eurowings (EWG) and Austrian Airlines (AUL). The code share deal, which is subject to government approval, is set to begin in January 2017.
The 6-year wet-lease agreement, effective February 2017, is also subject to regulatory requirements. Of the 38 former (BER) aircraft, Eurowings (EWG) will operate 33 and Austrian Airlines (AUL) will operate 5.
Lufthansa Group Chairman & (CEO) Carsten Spohr said, “We are looking forward to partnering with the Etihad Aviation Group. The wet-lease contract with airberlin (BER) fosters the growth of our Eurowings (EWG) Group. The code share agreement of Lufthansa (DLH) and Etihad (EHD) will offer our customers more benefits and complement both airlines’ networks. We will consider extending our cooperation in other areas.”
Eurowings also announced it will establish a new base at Munich Airport, where it will base 4 A320 family aircraft initially. Additional aircraft will be placed in Vienna and Palma de Mallorca.
As a result of the wet-lease agreement, Eurowings said it is able to phase out up to 20 older A320s, reducing overcapacity. Airberlin said it could reduce restructuring costs. On September 28, (BER) released details of its restructuring plan, which hinged on placing up to 40 A320s with the Lufthansa Group and reducing employee positions by up to 1,200.
Under the code share agreement, Lufthansa (DLH) will place its LH code on Etihad Airways (EHD)’s 2x-daily flights between Abu Dhabi and Frankfurt and 2x-daily Abu Dhabi - Munich services. (EHD) will, in turn, put its EY code on (DLH)’s flights between Frankfurt and Rio de Janeiro, Brazil as well as Bogota, Colombia.
Etihad Aviation Group President & (CEO) James Hogan said, “We have long seen Germany as a key strategic market for the Etihad Aviation Group and this new relationship with (DLH) marks the next step in our commitment to the leading European Aviation Group.”
On December 5, oneworld (ONW) member airberlin (BER) announced the sale of 49.8% of its Austrian subsidiary FlyNiki (NKI) to Etihad (EHD) for €300 million/$320 million, to create a new European leisure airline in a joint venture (JV) with German travel company (TUI) Group (TUG).
On December 15, the Lufthansa Group took over 100% of SN Airholding, the parent company of Brussels Airlines (DAT)/(EBA), in a deal to fully integrate the Belgian carrier into Lufthansa (DLH)’s Eurowings (EWG) Group in 2018.
Airberlin (BER) reported a 3rd-quarter loss of -€45.6 million, reversed from a +€56.2 million profit in the year-ago period.
News Item A-3: "Lufthansa & Etihad: From Enemies to Partners" by Karen Walker Karen.firstname.lastname@example.org in (ATW) Editor's Blog, December 16, 2016.
Lufthansa (DLH) and Etihad (EHD), in the past, have fought over airberlin (BER) code share rights, specifically and more broadly over Gulf carrier growth and subsidy allegations. Today, the 2 became business partners, completing a code share and wet-lease agreement that links together Germany’s Lufthansa Group and Abu Dhabi-based Etihad Aviation Group, ironically with airberlin (BER) aircraft at the center of the deal.
Etihad (EHD), which owns a 29% stake in airberlin (BER), has agreed to wet-lease 38 airberlin (BER) Airbus A320 family aircraft to the Lufthansa Group, which will use them to operate routes for 2 of its airline units, Eurowings (EWG) and Austrian Airlines (AUL). The agreement is particularly important for low cost carrier (LCC) (EWG), which (DLH) is looking to grow more rapidly.
Meanwhile, (DLH) will place its LH code on Etihad Airways (EHD)’s 2x-daily flights between the 2 airlines’ respective home hubs of Abu Dhabi and Frankfurt, and on 2x-daily Abu Dhabi - Munich services. (EHD) will put its EY code on (DLH)’s flights from Frankfurt to Rio de Janeiro and Bogota.
Both elements of the partnering arrangement are subject to regulatory approval, but if accomplished, it will be the latest example of a legacy flagship and a Gulf carrier becoming "dance partners." British Airways (BAB) parent the (IAG) was the icebreaker; (IAG) (CEO) Willie Walsh and Qatar Airways (QTA) Group (CEO) Akbar Al Baker forged a deal that made (QTA) a stakeholder in the (IAG) (a stake later increased to 20%). Walsh was also instrumental in getting (QTA) into the Oneworld (ONW) Alliance (joining Oneworld (ONW) Alliance Founder member (BAB) and also, oddly enough, airberlin (BER)). Qatar Airways (QTA) is now also taking a 10% stake in the (LATAM) Airlines Group (LAN)/(TPR).
Some accused Qantas (QAN) (CEO) Alan Joyce of doing a deal in 2013 with the devil when he signed a 10-year global partnership with Emirates (EAD), the largest of the “big 3” Gulf carriers. Although no investment stake was involved, the deal permitted extensive coordination and allowed (QAN), the Australian flagship to cut back its own European flights and connect to Emirates (EAD)’s broad European network, even shifting its European connecting hub from Singapore to Dubai. Lucifer has been lucrative; restructuring and partnerships have helped Qantas (QAN) climb from A$2.8 billion/$2.1 billion net loss in its fiscal year through June 2014 to a record profit of A$1 billion for the 2015/2016 fiscal year (the best result in its 95-year history).
Now we have Lufthansa (DLH) and Etihad (EHD) in a "dance," with the Group (CEO)s of each replacing subsidy barbs with hints of a greater future together. “We are looking forward to partnering with the Etihad Aviation Group,” Lufthansa Group Chairman & (CEO) Carsten Spohr said. “We will consider extending our cooperation in other areas.”
Etihad Aviation Group President & (CEO) James Hogan responded, “This new relationship with Lufthansa (DLH) marks the next step in our commitment to the leading European aviation group.” Perhaps it’s simply a case of 2 smart businessmen realizing they are better off working together than fighting in an industry environment that gets only more challenging. Hogan has often noted that (EHD)’s 2 biggest competitors are those in his backyard. Emirates (EAD) and Qatar Airways (QTA) have become stronger competitors through their partnerships with legacy and other carriers. The Lufthansa Group, though performing well, is still in cost restructuring catch-up mode relative to the (IAG); and both airberlin (BER) and Eurowings (EWG) are loss-making. The new partnership could yield returns across each group’s portfolios and make them more resilient to the competition and economic upheavals in their home markets as well as in the all-important transatlantic market. Most significantly, the Lufthansa (DLH) - Etihad (EHD) tie-up perhaps represents the end of any global attempt to constrain the Gulf carriers by regulatory means. From here on, should the USA majors choose to continue that fight, they’ve probably lost Lufthansa (DLH) as a public supporter. And Air France (AFA), still mired in its own restructuring, seems to believe it can tackle Gulf competition by starting a low-cost, long-haul carrier dedicated to that purpose.
Keep your friends close, and your enemies closer, the saying goes. Abu Dhabi-German relations have transformed, perhaps by necessity, from chilly to sunny-warm. Let’s see what can be achieved when you quit fighting and start working on how to better compete with your enemy’s enemy.
News Item A-4: Lufthansa Group low-cost (LCC) subsidiary, Eurowings (EWG) and German public services trade union Verdi have reached a labor agreement for cabin crews (CA)s on December 2. According to the agreement, flight attendants (CA) will see a +2.5% wage increase backdated from October 1, 2016; a further +2.5% increase October 1, 2017; and another +1.25% increase October 1, 2018.
Eurowings (EWG) cabin chiefs (Chefs de Cabine) will now be managed as pursers and will be compensated based on a separate purser (wages tariff) table, which will see increase of +5% as of October 1, 2016; +2.5% as of October 1, 2017; and +1.25% as of October 1, 2018.
The collective agreement expires March 31, 2019.
The Dusseldorf-based Eurowings (EWG) will also offer this deal to the (UFO) flight attendant (CA) union. “With this financial statement, we have gone to the limits of what is economically justified in a difficult market environment. The agreement is an important milestone on the way to the solution of the tariff conflicts in the (EWG) cabin,” Managing Director Jörg Beißel said.
On November 1, it was reported that (EwWG) flight attendants (CA), represented by the (UFO) union, had postponed a 2-day strike even though the latest negotiations failed to reach an agreement. Previously, (EWG) flight attendants (CA) went on a 24-hour strike October 27, resulting in 393 flight cancellations out of 551 scheduled flights for the day, affecting 40,000 passengers.
Lufthansa (DLH) established (EWG) as a pan-European (LCC) platform, which is expected to grow to 100 aircraft, as competition from (LCC)s (such UK’s easyJet (EZY), Ireland’s Ryanair (RYR) and Spain’s Vueling (VUZ)) increases to a 50% market share in Europe.
News Item A-5: "German Pilots' Union Says to Resume Talks with Lufthansa" by Maria Sheahan, "Reuters" December 09, 2016.
German pilots' union Vereinigung Cockpit said it would resume wage talks with Lufthansa (DLH) and would hold off further strikes until the end of negotiations. It said on December 9th it would discuss options including mediation in these talks.
The union is currently reviewing (DLH)'s latest pay offer, which came after 6 days of strikes last month that cost the (DLH), the German flagship carrier EUR100 million/US$106 million in lost profit.
News Item A-6: "Lufthansa, Pilot Union Agree to Arbitration" by (ATW) Kurt Hofmann email@example.com, December 16, 2016.
Lufthansa (DLH) and the Vereinigung Cockpit (VC) pilot (FC) union have agreed to arbitration by the end of January 2017, in an effort to resolve a pay dispute that has resulted in repeated strikes. The
(VC) union has agreed to maintain industrial peace until then.
On December 13, it was reported that the latest round of (VC) pilot strikes will affect Lufthansa Group earnings by €100 million/$106 million in the 4th quarter. In November, (VC) called members to go on strike for 6 days, forcing Lufthansa (DLH) to cancel 4,500 flights, affecting more than half a million passengers.
According to a December 16 statement from Lufthansa (DLH), the parties have not publicly identified the mediator. “We have had some intense talks over the past months and have now succeeded in agreeing on arbitration for the collective wage agreement. The negotiating table is the only place where we can find solutions that offer prospects for employees and for the company,” (DLH) Head of Human Resources & Legal Affairs Bettina Volkens said.
“I am confident that we will be able to develop a fair solution with the assistance of a mediator. We want to arrive at a long-term industrial peace in cooperation with (VC) (for our customers, our employees and our shareholders),” Volkens said.
News Item A-7: The Competition Commission of Singapore (CCS) has approved a proposed joint venture (JV) between Lufthansa (DLH) and Singapore Airlines (SIA), subject to certain voluntary conditions.
On February 5, (DLH) and (SIA) sought permission to cooperate on routes between the Asia-Pacific region (Australia, Indonesia, Malaysia and Singapore) and Europe (Austria, Belgium, Germany and Switzerland).
The (CCS) said the 2 airlines were looking for clearance to work together on pricing, inventory management, sales and marketing. They also asked to coordinate schedules, capacity and revenues on services from Singapore to Frankfurt, Düsseldorf, Munich and Zurich. However, (DLH) and (SIA) hold 80% of the Singapore - Frankfurt and Singapore - Zurich market, so the (CCS) said price and capacity coordination on these routes “would raise competition concerns.” The (CCS) was particularly worried about capacity reductions and fare increases, should the (JV) be approved.
The 2 airlines offered to maintain and increase capacity on both routes and carry a minimum number of Singapore passengers. An independent auditor will also be appointed to monitor compliance with the conditions. “The (CCS) is of the view that the competition concerns identified by the (CCS) on these 2 routes will be addressed with these commitments, and the proposed (JV) will result in net economic benefits to Singapore,” the regulator said, approving the (JV).
News Item A-8: The Bombardier (BMB) CS300 has gained type validation by the (FAA), meaning both variants of the CSeries have been certified by Transport Canada, the European Aviation Safety Agency (EASA) and the (FAA).
The (FAA) has also granted the CS100 and the CS300 the Same Type Rating (STR), a designation that allows pilots (FC) to transfer between the 2 variants with minimal training, providing cost savings for airlines that operate both. “These airworthiness validations by international authorities recognize the exhaustive process and excellent work done by Bombardier (BMB), in conjunction with Transport Canada, who awarded the CSeries aircraft their original aircraft type approvals,” (BMB) VP Product Development & Chief Engineer François Caza said.
The (FAA)’s approval of the CS300 came on the same day Latvian carrier airBaltic (BAU) placed the 1st CS300 into revenue service on the Riga - Amsterdam route.
February 2017: News Item A-1: INCDT: A Swiss International Air Lines (SWISS) (CSR) Boeing 777-300ER is being inspected after making an unscheduled landing in Iqaluit, Canada. The 777-300ER, powered by (GE) Aviation (GE90) engines, was en route from Zurich to Los Angeles on February 1, operating as flight LX40. “Following a malfunction message, the airplane’s left engine automatically shut down, as it is programmed to do,” (SWISS) spokesperson Stefan Vasic said. “In response to this, the flight crew (FC) decided to make a precautionary landing at Iqaluit Airport in Canada.” He added that the flight “landed safely and without any problems in Iqaluit.”
SWISS (CSR) said it has dispatched airplane engineers to Iqaluit to determine the cause of the engine issue and decide how to proceed.
A (GE) Aviation spokesperson said: “The preliminary focus is on the transfer gearbox, so we are working around the clock to get the hardware back to (GE) for a detailed assessment. [There are] no other (GE90) fleet actions associated with this event at this time.”
News Item A-2: 777-3DEER (62752, HB-JNG) delivery.
March 2017: News Item A-1: The Lufthansa Group turned in a net profit of +€1.78 billion/+$1.90 billion in 2016, up +4.6% on the previous year’s figure of +€1.70 billion, the Germany-based organization said March 16. It achieved the profit on turnover down -1.2% at €31.6 billion. “In a very demanding market environment, we successfully kept the Lufthansa Group’s margins at their record prior-year levels, through consistent capacity and steering measures and, above all, through our effective cost reductions,” Chairman of the executive board and (CEO) of Deutsche Lufthansa (DLH) Carsten Spohr said.
“All our business segments developed positively in their respective markets. And by expanding our commercial joint ventures for the network airlines, fully acquiring Brussels Airlines (DBA)/(EAT) and concluding the comprehensive wet-lease agreement with airberlin (BER) we have also strengthened our strategic position.” He cautioned, however, that further cost reductions would be necessary in 2017: “This is the only way to meet and master the decline in unit revenues and higher fuel expenses.”
Among cost-saving measures introduced in 2016 was a move to a new pension system that added +€652 million to the (EBIT) figure.
“The change in the pension system for our cabin crews (CA), which we now also agreed with our cockpit crews (FC), has had a sustainable positive effect, strengthening our balance sheet and making us less dependent on volatile interest rate developments,” Deutsche Lufthansa (CFO) Ulrik Svensson said. “This shows how important it is to have viable and forward-looking collective labor agreements.”
Among debits on the balance sheet for the past year was €100 million in strike costs. Net profit figures for the individual components of the Group were not given, but Lufthansa Passenger Airlines (DLH) raised its adjusted (EBIT) by +€254 million to >€1.1 billion. Austrian Airlines (AUL) was also in the black with an adjusted (EBIT) of €58 million, a +€6 million improvement on 2015.
SWISS (CSR) remained the Group’s most profitable airline with an adjusted (EBIT) margin of 9.3% and an adjusted (EBIT) of SFr429 million/$430 million compared to SFr453 million last time. Low-cost carrier (LCC) Eurowings (EWG) reported an adjusted (EBIT) of €-91 million. More than half of that deficit could be attributed to startup costs and other non-recurring expenditures, the Group said.
Also in the red was Lufthansa Cargo (LUB), which recorded a -€50 million loss for the year. The sharp -€124 million decline compared to its 2015 result was largely because of significant falls in price levels, particularly in the face of massive overcapacity in the freight sector.
On the ground, Lufthansa Technik (DLH)/(LTK) reported an adjusted (EBIT) of €411 million for 2016 (down -€43 million on 2015), while caterer (LSG) achieved an adjusted (EBIT) of €104 million (up +€5 million).
In 2017, the Group’s passenger airlines are expected to record organic capacity growth of +4.5% for its passenger airlines. Brussels Airlines (DBA)/(EBA), whose results will be fully consolidated for the 1st time in 2017, and the wet-leased flights of airberlin (BER), should make a small positive contribution to earnings in their 1st year.
News Item A-2: "European Commission (EC) Re-imposes Cargo Cartel Penalties" by Alan Dron firstname.lastname@example.org, March 17, 2017.
The European Commission (EC) has reinstated fines totaling €776 million/$834 million on 11 airlines for operating a price-fixing cartel on air freight from 1999 to 2006. More legal hearings are likely, as at least 1 of the carriers immediately said it would appeal the decision.
The (EC) originally imposed the penalties in November 2010, but these were annulled by a decision of the European Union’s (EU) General Court in December 2015 on procedural grounds, which ruled there was a technical discrepancy in the prosecution. In a March 17 announcement, the (EC) said it had resolved the discrepancy and was re-imposing the financial penalties on 11 air cargo carriers: Air Canada (ACN), Air France (AFA)/(KLM), British Airways (BAB), Luxembourg-based Cargolux (CLX), Hong Kong flag carrier Cathay Pacific Airways (CAT), Japan Airlines (JAL)/(JSA), (LAN) Chile, Dutch cargo carrier Martinair (MTH), Australia's Qantas (QAN), (SAS) Scandinavian Airlines and Singapore Airlines (SIA).
The (EC) said that a 12th member of the cartel, Lufthansa (DLH) and its subsidiary Swiss International Air Lines (CSR), was spared from the financial penalties after it applied for immunity in 2005 and revealed details of the alleged arrangements between the airlines.
These were said to consist of collusion between the airlines at both bilateral and multilateral levels to fix the level of fuel and security surcharges on cargo. After the initial verdict, all the airlines except Qantas (QAN) appealed. The financial penalty thus became final for QAN). Millions of businesses depend on air cargo services, which carry >20% of all (EU) imports and nearly 30% of (EU) exports,” (EC) Commissioner Competition Policy Margrethe Vestager said. “Working together in a cartel rather than competing to offer better services to customers does not fly with the (EC). Today’s decision ensures that companies that were part of the air cargo cartel are sanctioned for their behavior.”
The (EU) can fine companies participating in cartels up to 10% of their revenue in the year preceding the adoption of a verdict. (SAS) immediately said it would appeal. “We strongly question the European Commission’s move to re-impose a decision that has already been annulled once by the [General Court],” (SAS) General Counsel Marie Wohlfahrt said. “Throughout the entire process, (SAS) has cooperated with the (EC) and, for >11 years, has argued against the (EC)’s perception that (SAS) Cargo had participated in a global cartel.”
Nevertheless, the fine would be recognized as a nonrecurring expense by (SAS) in its earnings for (2Q) 2016/2017. Air France (AFA) - (KLM), which will be fined €325 million if the penalties become final, said it would analyze the new decision and whether to appeal it again at the General Court. It added that the fines had been covered in its financial accounts since 2010.
News Item A-3: "Engine Shortage, Airframe Tweaks Prompt CSeries Delivery Pause" by Flightglobal Pro, Stephen Trimble Washington DC, March 3, 2017.
Bombardier (BMB) has halted deliveries of the CSeries aircraft for 2 months to refine the production system and upgrade the aircraft configuration, while the supply of Pratt & Whitney (PRW)’s geared turbofan engines remains a bottleneck, (BMB) (CEO) Bellemare told Flightglobal.
The last CSeries aircraft delivered (a CS300) was delivered to Air Baltic (BAU) on December 31. A month ago, (BMB) officials said the delivery of the 6th CS100 (and 8th CSeries overall) to Swiss (CSR) would occur “shortly”, but the aircraft remains parked outside the final assembly line in Mirabel, Canada.
The ongoing delivery hiatus increases pressure on (BMB) to meet a commitment to ramp CSeries deliveries this year to 30 - 35 aircraft, a +428 - +500% jump compared to the 7 deliveries made last year.
On the sidelines of the USA Chamber of Commerce Aviation Summit on March 2, Bellemare explained the delivery stoppage was planned. “We’re taking advantage of this lateness in engines to take the opportunity to upgrade the aircraft, upgrade the assembly line and get ready for more volume,” Bellemare said.
Bombardier (BMB) originally planned to deliver 15 CSeries aircraft in 2016, but in September reduced the forecast to 7 while blaming a shortage of engine deliveries from (P&W).
The ramp-up of the (P&W)’s geared turbofan engine family has been slowed by a critical shortage of several parts, including the unique hybrid metallic fan blades. In comments made last year, United Technologies (CEO) Greg Hayes said the fan blades have proved harder to make than (P&W) expected.
But the opening of new fan blade factories in Japan and Michigan is expected to eliminate the parts shortage, allowing (P&W) to meet its goal of delivering 350 - 400 engines in 2017. Hayes has explained that about 50 of those engines will be needed as customer spares. Bombardier (BMB) will need at least 60 - 70 engines to meet its goal of delivering 30 - 35 aircraft. That leaves 230 - 290 engines left over for (P&W)’s other geared turbofan customers, which includes the Airbus (EDS) A320neo now in service and the Embraer E190-E2 that remains in testing.
While Bombardier waits for more engines, the company is improving aircraft on the assembly line to avoid taking delivered units out of service as improved components become available. Bellemare said.
“Instead of producing aircraft that would actually need a lot of retrofit in the field, we could manage that because, like we said, the engine delivery schedule was back-end loaded,” Bellemare said.
Bellemare described the aircraft and production system improvements as minor tweaks that fall short of a block-point upgrade, which is scheduled to come later.
News Item A-4: Swiss International Air Lines (SWISS) (CSR) is set to renew its Geneva-based aircraft allocation from Airbus A320s to an all-Bombardier CSeries 100/300 fleet.
The 1st aircraft, a CS100, will begin operations March 26 from Geneva on intra-European services to destinations such as London Heathrow, Dublin and Athens.
Geneva will also be the home base of SWISS (CSR)’s 1st Bombardier CS300, delivery of which is expected in May. The larger CS300 offers 145 seats, 20 more than the CS100.
By the end of 2018 SWISS (CSR) said its Geneva-based fleet will consist solely of CSeries aircraft: 1 CS100 and 7 CS300s. The new twinjets supersede the 7 A320s that are currently stationed there.
(CSR) has placed 6 CS100s in scheduled services, and 1 further aircraft is expected to be delivered every month, rising to 2 deliveries a month at some point later in the program.
On March 22, SWISS (CSR) is converting its final 5 CSeries aircraft orders from the CS100 to the larger CS300, to produce a total CSeries fleet consisting of 10 CS100s and 20 CS300s by the end of 2018.
The CSeries aircraft will gradually replace SWISS’s Avro RJ100s fleet on short- and medium-haul routes.
April 2017: News Item A-1: "SWISS (CSR), Austrian (AUL) and Lufthansa (DLH) Abolish 2-persons-in-the-cockpit Rule" by (ATW) Kurt Hofmann email@example.com, April 28, 2017.
Lufthansa Group subsidiaries Swiss International Air Lines (SWISS) (CSR), Austrian Airlines (AUL) and Lufthansa (DLH) will abolish a rule requiring 2 people in the cockpit, effective May 1.
The carriers will revert to previous cockpit access provisions, plus a number of additional safety and security measures. Austrian Airlines (AUL) spokesperson Peter Thier said that (AUL) will “revert to the previous cockpit access provisions on our Airbus (EDS), Boeing (TBC) and Embraer (EMB) fleet. The only exclusion is our [Bombardier] Dash 8-Q400 fleet,” he said.
The Lufthansa Group introduced the 2-persons-in-the-cockpit rule as a precautionary measure after a Germanwings (RFG) Airbus A320 (en route from Barcelona to Düsseldorf) was deliberately flown into the French Alps March 24, 2015, killing all 150 people aboard. Investigations revealed that co-pilot Andreas Lubitz, alone on the flight deck, switched the selected altitude from 38,000 ft to 100 ft (the minimum value possible on an Airbus A320) and increased the speed of the aircraft, setting in motion an intentional fatal descent into the French Alps.
In March 2015, the European Aviation Safety Agency (EASA) issued a temporary recommendation, proposing that 2 crew members, including at least one qualified pilot (FC), should occupy the cockpit during flight. This was not a requirement.
(EASA) revised its recommendation in summer 2016, offering airlines the option of abolishing this “2-persons-in-the-cockpit” rule, provided they met the relevant further criteria.
According to SWISS (CSR), the action to abolish the rule follows an extensive safety and security review, which concluded the rule does not enhance flight safety, and actually introduces additional risks to daily operations. The decision has been coordinated with similar risk assessments by its Lufthansa Group airlines partner.
(CSR), (AUL) and (DLH) said they meet all the requirements required by (EASA) of any airline seeking to abolish the rule, which include:
* Ensuring suitable selection criteria and procedures to assess the psychological and safety-relevant demands made on pilots;
* Ensuring stable employment terms and conditions for cockpit personnel;
* Giving pilots (easy) access to any psychological or other support programs they may need; and
* Demonstrating an ability as a company to minimize the psychological and social risks to which pilots are exposed, such as loss of license.
SWISS (CSR) said its decision to abolish the 2-persons-in-the-cockpit rule is supported by the Swiss Federal Office of Civil Aviation.
News Item A-2: Lufthansa Group subsidiary, Swiss International Air Lines (SWISS) (CSR) will be the 1st carrier to operate the Bombardier CSeries CS100 into London City Airport (LCY), after the variant was granted steep approach certification by the European Aviation Safety Agency (EASA) and Transport Canada.
The green light follows a series of steep approach demonstration flights at London City Airport that took place in March.
(LCY)’s short runway and the presence of several high buildings in the nearby Docklands financial area mean that aircraft landing from the west have to adopt an approach of 5.5 degrees, almost double the standard 3 degree glideslope. “To be certified for operations at London City, we had to show that the aircraft could perform at a greater approach angle, takeoff and land on the airport’s short runway and meet the local noise requirements. Our crew successfully demonstrated, as expected, the CS100 aircraft’s capability and maneuverability,” Bombardier (BMB) VP Product Development & Chief Engineer François Caza said. He added that the certification was made possible by the aircraft’s aural and head-up display systems.
(BMB) had been planning to secure the clearance sooner, but Bombardier Commercial Aircraft CSeries aircraft program VP Rob Dewar said the certification process went smoothly. “The CSeries is the only commercial aircraft specifically designed for operations at challenging airports,” he said.
With the CS100 approval, Bombardier (BMB) said it has doubled the viable range from (LCY) to include direct flights serving destinations in the Middle East, Russia, the USA east coast and West Africa.
(LCY) (CEO) Declan Collier said SWISS’ maiden CSeries flight into the airport is expected later in 2017, joining Bombardier (BMB)’s Dash 8-Q400, which has already been approved for steep approach operations.
May 2017: News Item A-1: (GX) Aviation broadband launch customers Lufthansa (DLH) and Austrian Airlines (AUL) have completed their 4-month Ka-Band internet trial on short- and medium-haul flights and have transitioned over to a paid service. “The commercial service introduction follows the completion of a test program, lasting approximately 4 months, during which performance targets were successfully met and feedback from passengers as well as Lufthansa Group cabin crew (CA) was extremely positive,” connectivity provider Inmarsat said.
Passengers traveling on equipped aircraft can access high-speed internet on their mobile devices via 3 packages, priced at €3/$3 for messaging (FlyNet Message), €7 for general web browsing (FlyNet Surf) and €12 for video streaming (FlyNet Stream). Ultimately, passengers will also be able to pay for internet access with Air Miles or via roaming partners.
“This is a significant milestone for (GX) Aviation too, which took >5 years to develop as the world’s 1st in-flight broadband solution with seamless global coverage delivered through a single operator,” Inmarsat Aviation President Leo Mondale said.
Lufthansa Group plans to ultimately fit approximately 300 Airbus A320-family aircraft with the service under a 10-year strategic partnership with Inmarsat.
To date, almost 80 Lufthansa Group aircraft have been equipped, including 19 at Lufthansa (DLH), 31 at Austrian Airlines (AUL) and 29 at Eurowings (EWG). “(EWG) is also set to launch its commercial services in the coming weeks,” Inmarsat said.
(DLH) became the 1st airline to offer internet access on long-haul flights in January 2003, but the service was discontinued in 2006 when satellite operator Connexion by Boeing (TBC) ceased operations.
In December 2010, (DLH) resumed internet access on intercontinental flights and both (DLH) and (EWG) have offered Wi-Fi across their entire long-haul fleet since 2015. “After the Boeing 777 had joined their fleet, SWISS (CSR) also offered internet access on long-haul flights and is currently planning to introduce internet on board its short- and medium-haul flights from 2018 onwards,” (DLH) said.
News Item A-2: Swiss International Air Lines (SWISS) (CSR) has taken delivery of the 1st of 20 Bombardier CS300 aircraft it has on order, CS300 (55010, HB-JCA), ex-(C-FPBE) delivery.
(CSR), the launch operator for the smaller CS100, will become the 1st airline to operate both variants of the CSeries when the CS300 enters service on the Geneva - London Heathrow route on June 1.
(CSR) ultimately plans to have 10 CS100s and 20 CS300s in its fleet. “With its 20 additional seats, this 2nd model in the CSeries family ideally complements our current aircraft fleet, and gives us an optimal equipment mix for our European short- and medium-haul services,” (CSR) (CEO) Thomas Klühr said. “Our 1st CS300 will be initially stationed in Geneva. In fact, our entire Geneva-based fleet will soon consist solely of Bombardier (BMB) CSeries aircraft.”
SWISS (CSR) previously took delivery of 8 CS100s. 3 CS300s have been delivered to Latvia’s airBaltic (BAU). The (CSR) CS300 is the 12th CSeries aircraft delivered by Bombardier (BMB) and the 5th delivered this year.
(BMB) plans to deliver 30 - 35 CSeries aircraft in 2017.
CS100 (50017, HB-JBH) ex-(C-FOYE) delivery. CS300 (55019, HB-JCA), ex-(C-FPBE).
August 2017: News Item A-1: Swiss International Air Lines (SWISS) (CSR) plans to replace its 5 remaining Airbus A319s with Bombardier CS100/CS300 aircraft in the spring of 2018, SWISS CSeries Fleet Chief Peter Koch told journalists in Zurich at the CS100 launch to London City Airport.
The A319 replacement is possible with the existing order of 10 CS100s and 20 CS300s.
SWISS (CSR) offers 145 seats on its CS300s compared to the 138-seat A319. The next larger aircraft type is the A320, with a 168-180 seat configuration.
(CSR)’s Airbus narrow body family fleet also includes 21 A320-200s and 9 A321-100/200s.
SWISS (CSR), the CS100 launch customer, began scheduled services from Zurich to Paris Charles de Gaulle in July 2016. As a Star (SAL) Alliance member (CSR) became the 1st airline to operate both CSeries CS100/CS300 variants.
(CSR) currently operates 8 CS100s and 2 CS300s.
(CSR), The national airline of Switzerland is acquiring the CSeries primarily to replace Avro RJ100s, which is 25% cheaper to fly and has a high operational reliability rate, Koch said.
The biggest challenge for (CSR) has been the CSeries delivery delays, which have forced the carrier to reschedule operations. (CSR) trains 10 pilots (FC) per month to CSeries standards; so far, 210 (FC) have been trained on the type.
SWISS (CSR) originally planned to receive a new aircraft every month. Koch said the hopes to accept the next aircraft in August and delivery delays are improving.
To fill the delivery delay gap, (CSR) wet leased 1 Bombardier (BMB) CRJ900 from Slovenia-based Adria Airways (ADR) during the summer period. “For us, [the CSeries] is the perfect aircraft,” Koch said.
News Item A-2: Swiss International Air Lines (SWISS) (CSR) launched daily Bombardier CSeries services from Zurich to London City Airport (LCY) on August 8, becoming the 1st airline to serve (LCY) with the type. “SWISS is acquiring its CSeries primarily to replace its Avro RJ100s, which were used to commence its scheduled services to and from (LCY) precisely 25 years ago with B Ae 146 regional jets.
Today we inaugurate a sort of innovation [with the CS100],” SWISS CSeries Fleet Chief, Peter Koch said in London. The CS100 is the largest aircraft to use the London downtown airport, which is located in the Docklands area.
SWISS (CSR) will also be deploying CS100s on its Geneva - London City route from next summer onward.
(CSR) currently operates up to 5x-daily flights from Zurich to (LCY) and 2x-daily flights from Geneva. A (CSR) spokesman said that “24% of all our SWISS passengers in the UK travel via (LCY).”
Earlier this year, Bombardier (BMB) received clearance from the European Aviation Safety Agency (EASA) and Transport Canada to operate the steep approach necessary for services into (LCY), which has several tall buildings in the nearby financial district on its western approach. Aircraft have to adopt a descent angle of up to 5.5 degrees, instead of the normal 3 degrees.
Pilots (FC) who fly into (LCY) are required to undergo additional training because of the airport’s short runway and steep landing approach. “Landing at (LCY) is like landing on an aircraft carrier [because of the steep approach],” Koch said, adding (CSR) has restricted CS100 operations into (LCY) to 91 passengers; the number will rise to 108 from August 21.
Total capacity for the SWISS (CSR) CS100 is 125 seats. “(CSR) now has 10,000 hours of CSeries flying experience. 8 CS100 instructors are certified for (LCY). Around 30 pilots (FC) will follow [to be trained for flying into (LCY)],” he said.
So far, 3 parking positions for CS100s are available at (LCY), but only 2 can be used at 1 time. “The limit is the CS100 wingspan. For example, we can only use 2 runway exits. However, as soon as more parking stands become available, more CS100s will be able to land,” Koch said.
The larger CS300 variant is not certificated to fly into (LCY).
News Item A-3: Swiss International Air Lines (SWISS) (CSR) phased out its last Avro RJ100 with a special flight from Geneva to Zurich on August 15.
(CSR) is replacing the Avros with Bombardier CSeries CS100/CS300 aircraft. (CSR) currently has 8 CS100s and 2 CS300s in service. By the end of 2018, (CSR) will add another 20 CSeries aircraft to its fleet.
The 4-engine narrow body Avro RJ100 and its smaller RJ85 variant formed the backbone of the SWISS European fleet since the company was founded in 2002. (CSR)’s 21-strong Avro fleet completed over 700,000 flying hours, operating over half-a-million flights with the British Aerospace (BAe) aircraft.
The former SWISS (CSR) aircraft (which remain in high demand because of their excellent maintenance record despite their age) will be placed into service with other airlines.
“I was very pleasantly surprised when we received requests for this aircraft [from other airlines] and the good sale prospects,” (CSR) (CEO) Thomas Klühr said in Zurich. Klühr said there is still a niche existing for the Avro aircraft in today’s aviation industry. “For example, the aircraft is ideal for short runway operations and there is still a strong demand [for the Avro],” he said.
SWISS (CSR) was the launch operator for the CS100.
Klühr said the CSeries has a 96% dispatch reliability, “which for a brand-new type is a good result.” Because of CSeries delivery delays, (CSR) has kept the Avro in operation at least +2 years longer than originally planned.
“The average age of the SWISS (CSR) fleet is now around 8 years. This number will be lowered when more CSeries arrives. Also, 2 further Boeing 777-300ERs will replace part of the Airbus A340-300 fleet by spring 2018,” Klühr said.
News Item A-4: Swiss International Air Lines (SWISS) (CSR) is considering ordering the Airbus A321neoLR to operate on routes from Zurich to long-haul destinations in Africa, (CSR) (CEO) Thomas Klühr said. “It is an interesting option, especially on routes where a 300-seat wide body aircraft is difficult to fill. The A321neoLR offers very efficient operations,” Klühr said.
Lufthansa Group subsidiary SWISS (CSR) is slated to take delivery of 15 Airbus A320neo family aircraft in 2019 and 2020, but it does not have any A321neoLRs on order. The A321neoLR is expected to enter service in the 2nd half of 2018.
It is unclear whether (CSR) could switch some of its A320neo family aircraft orders to the A321neoLR. Klühr said (CSR) does have the option to switch A320neo/A321neo orders to A320ceo family orders if issues with the Pratt & Whitney (PRW) geared turbofan (GTF) engine that have caused A320neo delivery delays persist.
“We hope the difficulties regarding the A320neo engines can be solved. It is our goal to have this aircraft. However, we have the option to switch the order from the A320/A321neo to the A320/A321ceo,” Klühr said.
SWISS (CSR)’s current Airbus narrow body family fleet includes 21 A320-200s, 9 A321-100/200s and 5 A319s. The A319s will be retired by 2019 and replaced with Bombardier CSeries aircraft. (CSR) recently retired its last Avro RJ100 and is phasing in 30 CSeries aircraft by the end of 2018.
On the wide body front, (CSR) plans to invest CHF100 million/$103.5 million to retrofit the interiors of its 5 A340-300s. “For 5 aircraft, this is a significant investment,” Klühr said. After the refurbishment, the A340s will have 223 seats (8F in first class, 47C in business and 168Y in economy class.
2 new Boeing 777-300ERs will join the fleet by spring 2018.
October 2017: The 1st airliner designed from the outset for operation at London City Airport (LCY), Bombardier (BMB)’s CSeries, is delivering on its promises, according to Swiss International Air Lines (SWISS) (CSR), which is ramping up services to the UK financial center gateway. “London City is happy with the noise level of the aircraft. We are happy with the payload,” (SWISS) CSeries Deputy Fleet Chief Pilot Sven Thaler said. “At London City we have the largest aircraft.
March 2018: News Item A-1: SWISS (CSR) took delivery of its 10th 777-300ER on March 13, which is Boeing´s 1,545th 777 built since 1994.
News Item A-2: Lufthansa Group subsidiary Swiss International Air Lines (SWISS) (CSR) is working with Pratt & Whitney (PRW) through a modification program for the geared turbofans that power its fleet of Bombardier CSeries. (CSR) Head of Technical Fleet Management Peter Wojahn said the (PRW) (PW1100G) engines were not causing any flight operations problems, but the modification work meant (CSR) had to be removed from the wing more frequently than was planned.
May 2018: The Lufthansa Group completed orders for 4 more Boeing 777 airplanes, valued at $1.4 billion at list prices, for its SWISS (CSR) (2 777-300ERs) and Lufthansa Cargo (LUB) (2 777Fs) subsidiaries.
Click below for photos:
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CSR-777-300ER - 2013-03
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CSR-A320neo - 2014-09
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CSR-B AE 146-RJ100
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CSR-RJ100 STAR ALLIANCE
1 737-700 BBJ (CFM56-7B), (PTS) WET-LSD 2005-01. 56F. CORP EXEC.
0 737-86Q (CFM56-7B) (1600-30295, HB-IIR), (BOU) LSD 2004-11, (PTS) WET-LST 2004-11. RETURNED.
0 757-2G5 (RB211-535E4) (919-29379, HB-IHR; 922-30394, HB-IHS), EX-(BCT) 2001-07. RTND.
11 +11 ORDERS 777-3DEER (44582, HB-JNA, 2016-01 - - SEE ATTACHED - - "CSR-2013-03 - 777-300ER ORDER" AND 2015-03; 44585, HB-JND, 2016-05; 62752, HB-JNG, 2017-02; 1484-62753 HB-JNH, 2018-02). 8F, 62C, 270Y.
0 MD-83 (JT8D-219) (1468-49572, /88 HB-INZ), EX-(SWS). WFU. 162Y.
0 MD-83 (JT8D-219) (1181-49277, /85 HB-INR; 1349-49359, /87), EX-(BAL) & (SWS). 49277 LST 3 YRS (NOQ) 2001-02. 49359 ST (OAW) 2001-12. 49277 SOLD TO (OAW) 2002-12. 156Y.
0 MD-83 (JT8D-219) (1405-49569, /87 HB-INW; 1720-49930, /90 HB-ISZ "WANNENBERG;" 1817-53149, /91 HB-IUG; 1831-53150, /91 HB-IUH), EX-(BAL) & (SWS) (49844 LST (DIR). 49569; 49572; RTND (GER), LST (SPP) 2001-05. 49227; 49844; 49930; 49149; 49150; RTND (GER), LST (ZXD) 2002-10. 49930 LST (BUC) 2004-05. 49844 RTND (GMI) 2004-05. 49930 RTND (GER) 2004-03. 49569; 53149; 53150; TO (FLM) 2005-06. 162Y.
0 MD-83 (JT8D-219) (1559-49769, SE-RDF; 49847; 49856; 687-49857, SE-RDE), EX-(ACH), (GEH) LSD (HB-IUN), 49769; 49857; WET-LST (VKN) 2003-05. 161Y.
0 MD-11 (PW4462) (458-48443, /91 HB-IWA; 464-48447, /91 HB-IWE; 477-48454, /91 HB-IWI), EX-(SWS). 48452; 48453; 48485; STORED AT MOJAVE. (473-48453, HB-IWH) RETIRED TO BANDUNG LTD 2002-12. 48634 RTND LESSOR 2003-06. 48444; 48446; 48457; RTND ABN-AMRO, LST (VAR) 2003-12. 48484 LST (NAM) 2004-08. ALL RETIRED 2004-10. 48447 SOLD TO (FED) 2005-01. 12F, 49C, 180Y.
5 A319-112 (CFM56-5B6/P) (578, /96 HB-IPV "CASTELEGNS 3021M;" 612, /96 HB-IPX "MONT RACINE 1439M;" 621, /96 HB-IPY "LES ORDONS 995M;" 713, /97 HB-IPU "SCHRATTENFLUE 2092M; 727, /97 HB-IPT "GRAND SACONNEX;" 734, /97 HB-IPS "CLARIDEN 3267M;" 1018, /99 HB-IPR "PIZ MORTERATSCH 3751M"), EX-(SWS), (ILF) LSD. ALL TO BE REPLACED WITH CS100/CS300 IN SPRING OF 2018. 138Y.
2 A320. 2011-02.
1 A320-200, (TCI) LEASED.
18 A320-214 (CFM56-5B4/2P) (545, /95 HB-IJB "MONTREUX;" 553, /95 HB-IJD; 559, /95 HB-IJE "AROSA;" 562, /95 HB-IJF; 574, /96 HB-IJH; 577, /96 HB-IJI "BASODINO 3274M;" 585, /96 HB-IJJ "LES DIABLERETS 3210M;" 596, /96 HB-IJK "WISSIGSTOK 2887M;" 603, /96 HB-IJL "NYON;" 635, /96 HB-IJM "SCHILTHORN 2970M;" 643,* /96 HB-IJN "CRANS MONTANA;" 673, /97 HB-IJO "LISENGRAT 2346M;" 681, /97 HB-IJP "NOLLEN 733M;" 701, /97 HB-IJQ "AGASSIZHORN 3953M; 703, /97 HB-IJR "DAMMASTOCK 3630M;" 782, /98 HB-IJS "CREUX DU VAN 1463M;" 1762, /02 HB-IJX "DAVOS;" 1951, /03 HB-IJU "BIETSCHHORN 3934M" FOR "SWISS SUN" OPS; 2024, /03 HB-IJV WILDSPITZ 1580M" FOR "SWISS SUN" OPS; 2134, /04, HB-IJW "BACHTEL 1115M" FOR "SWISS SUN" OPS; 2158; 2166; 2177) TO REPLACE MD-80'S, 870 RTND 2002-10. *STAR (SAL) ALLIANCE LIVERY; (ILF) LEASED. 150Y OR 168Y.
15/10 ORDERS A320neo FAMILY:
7 A321-111 (CFM56-5B1/2P) (519, /94 HB-IOB, NTU; 520, /95 HB-IOC "ST MORITZ;" 522, /95 HB-IOD; 541, /95 HB-IOF; 664, /97 HB-IOH "PITZ PALU 3901M;" 987, /99 HB-IOK "BIEFERTENSTOCK 3421M;" 1144, /99 HB-IOL "KAISEREGG 2185M"), EX-(SWS), (ILF) LSD. 827 RTND 2003-12; 897; 2004-03, BOTH LEASED TO (AMV). 891 RTND 2004-03. +1 ORDER. 68C, 108Y.
1 A321-212 (5567, HB-ION "LUGANO"), EX-(D-AVZG).
1 A321-231 (4534, HB-IOM), EX-(D-AVZL) 2010-12.
0 A330-200, EX-(SAB), (DLH) LSD. RTRD.
0 A330-223 (PW4168A) (229, /98 HB-IQA "LAUTERAARHORN 4042M;" 240, /98 HB-IQB; 249, /98 HB-IQC "BREITHORN 4164M;" 275, /99 HB-IQG "JUNGFRAU 4158M;" 288, /99 HB-IQH "ALLALINHORN 4027M;" 291, /99 HB-IQI "PIZ BERNINA 4049M;" 294, /99 HB-IQJ "ALETSCHORN 4195M;" 299, /99 HB-IQK "STRAHLHORN 4190M" 2009-12; 322, /00 HB-IQQ "BERN;" 343, /00 HB-IQO "WEISSMIES 4023M;" 366, /01 HB-IQP "MONCH 4099M"), EX-(SWS), (ILF) LSD. 4 WFU GROUNDED. 240; 253; RTND 2003-11. 255 RTND 2003-12. ONE LST (STC) 2009-07. 366; RTND. 291; LST (EDE) 2010-10. 229; LST (DAT)/(EBA) 2011-10. ALL RETIRED (LAST ONE LEASED TO BRUSSELS AIRLINES (DAT)/(EBA)). 12F, 42C, 142Y; & 48C, 182Y.
3 ORDERS A330-300:
13 A330-343 (TRENT 772B-60) (1000, /09 HB-JHA "SCHWYZ" - - SEE ATTACHED PHOTO - - "CSR-A330-343-2009-04;" 1018, /09 HB-JHB "SION;" 1026, /09 HB-JHD "ST GALLEN;" 1029, /09 HB-JHC "BELLINZONA;" 1084, /10 HB-JHE "FRIBOURG;" 1089, /10 HB-JHF "BERN" 2018-02; 1101, HB-JHG, 2010-06; 1145, HB-JHH, 2010-08; 1181, HB-JHI, 2010-12; 1188, HB-JHJ, 2011-01; 1193, HB-JHQ, 2011-01; 1276, HB-JHK "HERISAU" 2012-01; 1403, HB-JHN, 2013-04), WILL REPLACE A330-200'S. 1193; LST (EDE) 2011-01. 8F, 45C, 183Y.
4 A340-313 (CFM56-5C4) (150, /96 HB-JMJ "CHUR" 2007-05; 154 /96 HB-JMM - - SEE INCDT REPORTED IN APRIL 2010; 175, /97 HB-JMN; 179, /97 HB-JMO, 2008-02), (ACN) LSD. 8F, 47C, 168Y.
2 A340-313 (CFM56-5C4) (169, /97 HB-JMK "AARAU;" 263, /99 HB-JML "BASEL"), (AUL) LSD 2007-11), EX-(OE-LAK/L). 8F, 47C, 164Y.
7 A340-313 (CFM56-5C4/P) (538, /03 HB-JMA "FRAUENFELD" 2018-02; 545, /03 HB-JMB "DUFOURSPITZE 4634M;" 546, /03 HB-JMC "ZUMSTEINSPITZE 4563M;" 556, /03 HB-JMD "SIGNALKUPPE 4554M;" 559, /03 HB-JME "DOM 4545M;" 561, /03 HB-JMF "LISKAMM 4527M;" 562, /03 HB-JMG "WEISSHORN 4506M"), 8F, 47C, 164Y.
2 A340-313 (CFM56-5C4/P) (585, /04 HB-JMH "PARROTSPITZE 4432M;" 598, /04 HB-JMI "DENT BLANCHE), 8F, 48C, 172Y.
9 +11 ORDERS BOMBARDIER CSERIES CS100 (C-SW12, 2015-03 - ON 1ST DELIVERY AS 50010, HB-JBA, 2016-05; 50011, HB-JBB "CANTON DE GENEVE" 2016-08; HB-JBC; 50017, HB-JBH, 2017-05). 2 CLASS, 117 PAX.
3 +17 ORDERS BOMBARDIER CS300 (55010, HB-JCA, 2017-05; 55020 HB-JCG, 2018-02). 145Y.
0 F 100, (OAW) LSD UNTIL 2007-02.
0 B AE 146-300 (LF507-1F) (E3357, HB-IYX), 2 RETIRED. 97Y.
0 AVRO RJ85 (LF507-1F) (HB-IYV), 4 RETIRED. 82Y.
00 AVRO B AE 146-RJ100 (LF507-1F) (HB-IYS, 2011-11). E3357 ST ATLANTIC AWYS 2005-10. (HB-IXQ) RETIRED FOR SPARES. ALL OPS FOR SWISS EUROPEAN AIR LINES (AS OF 2015-02 TO BE RENAMED SWISS GLOBAL AIR LINES). all phased out by 2017-08. 97Y.
2 DHC-8-300, CIRRUS WET-LSD 2004-03.
1 BOMBARDIER DASH 8-Q402 (4045, OE-LGR "TYROLEAN SPIRIT"), AUSTRIAN AIRLINES (AUL) LSD 2015-12 IN STAR (SAL) ALLIANCE COLORS.
11 SAAB 340B (182 LST (MOL) 2000-10, 168 RF (MOL) 2000-12. 200; 208; LST CARPETAIR 2000-07. 200 RTND 2002-01. 228 LST CARPETAIR 2002-07. 168 RF NORDIC AIRLINK 2003-02. 168 LST CARPATAIR 2004-02. 33Y.
0 SAAB 2000 (AE2100A) (058; 059), 1 WET-LST (ADH) 1998-12. 2 WFU 2001-08 (032; 6). (031) SOLD. LARGEST SAAB OPERATOR. 047 W/O 2002-07. 035 RTND 2003-04. 006; 036; RTND 2003-06. 062; 063; ST KALIDAS 2003-07. 006; 008; RTND 2003-08. 9 RTND 2003-11. 038 LST CARPATAIR 2003-11. 056 LST MOLDAVIAN 2003-12. 029 RF CARPATAIR 2003-12. 038 LST CARPATAIR 2003-12. 026; & 039 LST CARPATAIR 2004-02. 004 LST CARPATAIR 2004-04. 041 LST CARPATAIR 2004-07. 022 LST MOLDAVIAN 2004-12. 033 LST CARPATAIR, 2005-10. ALL SAAB 2000 FLEET WFU BY 2005-11. 029; 057; 058; 059; 060; 061; ST POLET (PLT) 2005-11. 50Y.
15 +2/15 ORDERS ERJ-145LU (AE3007A1) (232, HB-JAA; 240, HB-JAB; 2000-03) (269, HB-JAD, 2000-05; 281, /00 HB-JAE; 313, HB-JAF; 321, /00 HB-JAG; 341, /00 HB-JAH; 351, /00 HB-JAI; 559, HB-JAS; 564, HB-JAT). 588; 601; WET-LST JETMAGIC 2003-05. 351 RTND 2003-09. 281; 475; 498; 510; ST TRANS STATES 2003-10. 588; 601 RF JETMAGIC 2004-01. 281 ST (GEF) 2004-01. 255 LST TRANS STATES 2004-04. 341 ST (GEF) 2004-05. 321 ST (GEF) 2004-06. FUTURE DELIVERIES POSTPONED. 559; & 564; LST AIR ONE (ADH) FEEDER 2005-08. 49Y.
15/20 ORDERS EMBRAER E170 (CF34-8E), 70Y.
4 EMBRAER E190, HELVETIC AIRWAYS (OAW) LSD FOR SWISS EUROPEAN AIR LINES OPS 2014-09.
15/20 ORDERS EMBRAER E195-200 (CF34-10E), 108Y.
1 B AE ATP, (BAF) WET-LSD 2000-02. 66Y.
Click below for photos:
CSR-2013-01 - HARRY HOHMEISTER-A
CSR-2013-01 - HARRY HOHMEISTER-B
CSR-9-JULIA CALLIES-A320 FIRST OFFICER-2014-07
ROLF JETZER, CHAIRMAN (2005-09).
WILLIAM BOSCH, DEPUTY CHAIRMAN (2004-03).
THOMAS KLUER, CHIEF EXECUTIVE OFFICER (CEO).
HARRY HOHMEISTER, (CEO) & CHIEF OFFICER NETWORK, EX-(DHL) (CSR).
JANUARY 2013: SEE ATTACHED AIR TRANSPORT WORLD INTERVIEW - - "CSR-2013-01 - INTERVIEW HARRY HOHMEISTER."
ROLAND BUSCH, CHIEF FINANCIAL OFFICER (CFO) (2013-04).
PETER WOJAHN, HEAD TECHNICAL FLEET MANAGEMENT & CHIEF TECHNICAL OFFICER (CTO).
JEAN-PIERRE TAPPY, MANAGING DIRECTOR FLIGHT OPERATIONS.
PETER KOCH, MANAGING DIRECTOR, SWISS EUROPEAN (REGIONAL) & FLEET CHIEF FOR BOMBARDIER CSERIES (2005-10).
BJORN NAF, (CEO) SWISS REGIONAL (2003-05).
RAINER HILTEBRAND, CHIEF OPERATING OFFICER (COO), EX-ZURICH AIRPORT OPERATIONS (2010-05).
MARKUS BINKERT, CHIEF COMMERCIAL OFFICER (CCO) (2013-04).
MARCEL BIEDERMANN, MANAGING DIRECTOR INTERCONTINENTAL MARKETS.
FRITZ GROTZ, EXECUTIVE VP/GENERAL MANAGER TECHNICAL, OPERATIONS.
RICHARD HEIDEKER, EXECUTIVE VP, HEAD PRODUCTION MANAGEMENT, EX-GENERAL MANAGER (DBA) (1998-06).
THOMAS BRANDT, EXECUTIVE VP FLIGHT OPERATIONS.
FREDI LKUGINBUEHL, HEAD FLIGHT CREWS.
HELMUT HIMMELREICH, EXECUTIVE VP TECHNICAL.
MARCEL KLAUS, EXECUTIVE VP CORPORATE SERVICES.
MARTIN ISLER, EXECUTIVE VP STRATEGY & NETWORK (2003-05).
DANIEL WEDER, EXECUTIVE VP PRODUCT & SERVICES (2003-05).
FRANZ MEYER, VP TECHNICAL (firstname.lastname@example.org).
WILLY SCHNYDER, VP MARKETING & SALES, SWITZERLAND (2004-01).
LALIN SABUNCUOGLU-JANSSEN, VP EUROPE & AFRICA, SWISS WORLDCARGO (2012-11).
ASHWINJ BHAT, VP AMERICAS, MIDDLE EAST & ASIA, SWISS WORLDCARGO (2012-11).
RUDOLF SCHUMACHER, VP EUROPEAN SALES & MARKETING.
JACK LAPINSKI, SENIOR DIRECTOR AMERICAS SWISS WORLDCARGO (2012-11).
ADITYA KHULLAR, DIRECTOR SE ASIA.
BERND MARESCH, DIRECTOR MARKETING & STRATEGY SWISS WORLDCARGO (2008-01).
IGNAZIO STRANO, DIRECTOR EXTERNAL RELATIONS & ALLIANCES.
ALEXANDER ARAFA, HEAD CABIN CREW (CA) (2008-04).
BERND BAUER, HEAD SALES & MARKETING (2008-04).
BERNARD MEIER, HEAD SPECIAL PROJECTS.
MARKUS BINKERT, HEAD PRODUCT.
BERNHARD CHRISTEN, HEAD CORPORATE BRAND & COMMUNICATIONS MANAGEMENT (2013-11).
CHRISTOPH ULRICH, HEAD HUMAN RESOURCES (HR) (2016-07).
Christoph was previously Head of Compensation & Labor Agreements.
SVEN THALER, DEPUTY FLEET CHIEF PILOT SWISS CSERIES.
MS SUSANNE WELLAUER, MANAGER SWISS MAIL SWISS WORLDCARGO (2012-11).
GREGOR KONCILJA, SALES MANAGER, UK & IRELAND (2007-06).