Report says Corti paid SFr12.5 million to take Swissair job

It is not yet clear whether Corti is entitled to keep a portion of the money Keystone Archive

Mario Corti, the former CEO of SAirGroup, was promised an unusual SFr12.5 million ($7.3 million) up-front payment when he took the Swissair job, according to the Swiss SonntagsZeitung.

The money was reportedly made available to Corti even before his first day on the job as “rescuer” of the troubled Swissair, which eventually collapsed late in 2001.

Corti was named to the CEO position on March 16, 2001. When he took over, it was not publicly known that he had made a multi-million-franc agreement for an advance payment, the report in the German-language newspaper said.

It was also agreed that his house in Bex, in canton Vaud, would be purchased by Swissair and a more suitable substitute would be found in Zurich, according to the report.

In return for the financial provisions by Swissair, Corti agreed to work for the airline for five years, as he attempted to resolve its financial crises.

Corti’s response

Corti spokesman Rainer Meier verified that Corti had entered into a five-year contract with SAirGroup, but said he would provide no details of the contract. “Mr. Corti intends to fulfil his responsibilities under the changed circumstances according to his conscience and the best of his knowledge.”

Meier said Corti would decide on his next steps and his responsibilities as soon as possible.

The contract was approved by the former board of directors, with Bénédict Hentsch, Andres Leuenberger, Lukas Mühlemann, and Corti.

Less than a year ago, a scandal developed when it was learned that Swissair executive Eric Honegger received SFr2.5 million when he left the group. Eventually, Honegger’s payment was reduced to SFr450,000 ($264,000).

Former Swissair chief Philippe Bruggisser received about SFr2.5 million.

Swissair employees’ hardship

The sums, however, are controversial, since former employees do not have enough funds to cover their social benefits plan. Many employees who retired early are still waiting for payments.

Many had no idea of the payments to Corti, and were unaware of any funds available for employee hardship cases.

“It is a shame,” Rémy Pagani, French spokesman for the workers union, told swissinfo. “He asked for the confidence of the staff,” and many naively went along with him.

Swissair employees who transferred to Crossair after the financial collapse of the national airline accepted a 30 per cent salary decrease.

Employee representatives said it must now be clarified whether Corti is entitled to keep a portion of the money, or whether he must return the millions.

swissinfo with agencies