Future shape of Swiss airline to remain in focus
The search for financial backers to secure the future of the country's national carrier is likely to remain in the news.
On Friday, the government said it had received positive signs for a solution to the financial crisis facing the Swissair Group’s key subsidiaries. Earlier in the week, it had issued a warning to the banks and cantons that they had to find funds to save the airline-related businesses of the Group.
The government has refused to release the first instalment of cash aid for Swissair until the future of the subsidiaries is guaranteed.
The problems faced by the IT division, Atraxis, the ground handling company, Swissport and the maintenance firm SR Technics are threatening the re-launch of a new national airline built around the regional carrier, Crossair.
The state, cantons and Swiss business have agreed a SFr4.3 billion salvage plan that will see Crossair gradually take over two thirds of Swissair services.
As part of the deal, Swissair will continue to fly long-haul routes until Crossair is ready to take over next April, with the government putting up SFr1 billion to allow Swissair to keep flying until then.
Unaxis hopeful of breaking even
In other news this week, the technology company, Unaxis, will report its third quarter numbers on Monday.
The downturn in the Information Technology sector has hit the company badly, though it hopes to break even over the year as a whole thanks to its non-IT units.
The company recently announced the loss of 600 jobs because of the slowdown and says its sees no possibility of recovery in 2002.
It says it may delay further divestments of its non-core businesses because it is having difficulty finding buyers in the current climate.
The semi conductor maker, ESEC, 57 per cent owned by Unaxis, also comes through with third quarter figures on Monday.
In the first six months of the year, ESEC swung to a first-half loss of SFr41.8 million after sales dropped 56 per cent.
It has also embarked on a round of cost-cutting measures including 250 job cuts.
And unemployment figures out on Thursday will give a further indication of how bad the economic situation is becoming.
September’s figure of 1.7 per cent is still historically low but analysts are expecting a slight increase as the job cuts announced throughout the economy begin to take their toll.
by Michael Hollingdale
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