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Crossair pulls customers despite upheaval

swissinfo.ch

Crossair says winter bookings are higher than expected, and that plans to absorb two-thirds of the collapsed Swissair's aircraft are going well.

This content was published on December 12, 2001 - 16:00

"The bookings for the flights of Crossair, and in particular Swissair flights, are above the levels we assumed in the budget," the firm said in a statement.

Crossair also published details of its planned capital increase of SFr2.5 billion ($1.5 billion). Public authorities and Swiss companies have poured in funding to allow the regional carrier to take over the bulk of Swissair's planes and routes.

Crossair said shareholders could subscribe to 40 new shares for each old, pre-split share at a price of SFr56 per share. The shares currently have a nominal value of SFr250 and will be split one-for-five.

New national carrier

Crossair is to form the nucleus of the new national airline and its share capital has been increased to pave the way for the addition of 52 aircraft from the collapsed Swissair.

The plan to create the airline involves a total capital injection of SFr4 billion, which was brokered by the government and banks following the collapse of Swissair in October.

The finances of the new airline, still to be officially named, has also prompted much speculation as to its chances of success.

"At first sight it is very comfortable because they have now billions in fresh capital, ," airline analyst Sepp Moser told swissinfo. "But if you look a little bit closer the prospects are not so good. The first year alone foresees a deficit of SFr1 billion and nobody knows what will happen after that."

Last week Crossair elected a new board to head the new carrier, under chairman Pieter Bouw, a former boss of KLM from the Netherlands.

swissinfo with agencies

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