Lufthansa launches new bid to take over Swiss
Switzerland’s national carrier has confirmed it is in talks with Germany’s Lufthansa aimed at a takeover of Swiss.
The planned deal is subject to approval by the company boards and shareholders of Swiss, which would continue to fly under its own name.
A joint statement on Sunday said the aim of the talks was the full integration of Switzerland’s national airline into Lufthansa.
The statement added that a business model had been developed but was subject to approval by the boards of both airlines, as well as major shareholders at Swiss.
Under the terms of the proposed deal, Swiss would continue to fly independently under its own brand.
“The jointly developed business model aims at providing a concentration of the strengths of both airlines, while retaining the independence of Swiss to the extent possible,” said the statement.
Zurich hub preserved
The airline’s hub at Zurich, which is Switzerland’s main airport, would remain.
The Swiss government – the single biggest shareholder in Swiss – said it had taken note of the takeover bid.
A spokeswoman for the finance ministry said the government would wait to see the result of the negotiations before taking any decisions.
The cabinet discussed a series of strategic options at its regular meeting last week.
Reports in the Sunday press said Lufthansa was interested in taking over its rival if the Swiss airline implemented its latest cost-cutting programme of SFr300 million ($260 million).
Loss-making airline
The struggling carrier said last week that it had narrowed its net loss to SFr140 million in 2004.
In January Swiss announced plans to reduce its fleet of 80 aircraft by 13 and axe up to 1,000 jobs by next year.
The airline has been making losses ever since it was formed three years ago following the collapse of Swissair.
According to the NZZ am Sonntag newspaper, Swiss has called a meeting with some of its major shareholders on Monday – apparently to discuss details of the link-up with Lufthansa.
The main shareholders at Swiss are the government, the country’s two leading banks, UBS and Credit Suisse, as well as the Zurich cantonal authorities.
Swiss pulled out of previous merger talks with Lufthansa – which heads the Star Alliance – two years ago.
Negotiations with British Airways aimed at entering the rival Oneworld alliance collapsed last year.
swissinfo with agencies
Lufthansa:
Net profit 2004 (provisional): €400 million (SFr620 million)
Staff: 90,000
Swiss:
Net loss 2004: SFr140 million
Sales: SFr3.6 billion
Staff: 6,625
Passengers: 9.2 million
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