“swiss” on target for profits by 2004

Dosé said the airline would never rival competitors such as British Airways Keystone

Operating figures for the national carrier, "swiss", are on course to be in the black by 2003, according to CEO Andre Dosé.

Speaking during a general assembly of Swiss transport groups, Dose was upbeat about the airline’s performance during its first 100 days and said it would reach its targets by the end of the year, despite difficult market conditions.

Dose said 2003 would mark the airline’s turnaround phase, with profits expected by 2004.

Flight occupancy had exceeded previous estimates, Dosé said, with European flights 60 per cent full. Intercontinental flights had reached 82 per cent occupancy, and would be fully booked by the end of August.

“swiss” has a market share of six per cent in Europe and 2.2 per cent worldwide. The company is in the process of negotiating entry to the airline alliance OneWorld, which analysts have said is of key importance for profitability as this would help fill its planes.

But “swiss” would never attain the market share of competitors such as British Airways and Lufthansa, said Dosé.

However, the airline faces a number of unresolved issues, such as a collective pay deal for former Crossair pilots. There is also the possibility of court action against swiss in France to cover the debts of Swissair.

The Swissair Group, which is now in the hands of a court-appointed administrator, collapsed last October under the weight of its debts, resulting in a two-day grounding of its fleet over a lack of cash.

“swiss” was created SFr2.3 billion in fresh capital from the government, many cantons and a host of Swiss companies, including food group Nestlé, and the UBS and Credit Suisse financial services groups.

swissinfo with agencies