SAir Group counting the cost of involvement in LTU
The SAir Group is having to spend SFr115 million on overhauling the German air tours operator LTU, in which it has a 49.9 per cent stake. The Swiss carrier company has to pay for the restructuring due to a clause in a joint agreement signed in 1998.
The SAir Group is having to spend SFr115 million on overhauling the German air tours operator LTU, in which it has a 49.9 per cent stake.
The Swiss air carrier company is obliged to pay for the restructuring costs due to a clause in the agreement signed with LTU in 1998.
A spokesman for the SAir Group said the German daughter company had made a loss of close to SFr200 million last year.
The restructuring programme of the LTU which is being spearheaded by the SAir Group would mean 1600 job cuts and a quarter of its seating capacity would be axed.
The SAir Group's chief, Philippe Bruggisser, told the money magazine "Finanz und Wirtschaft", that
LTU was in some trouble when the SAir bought its stake. But, he said, "the true extent had not been fully realized".
Meanwhile, Swissair, the daughter company of the SAir Group, revealed it has drawn up a list of "safe" airlines for internal use only. Those companies not on the list, were considered at risk, according to an interview with a company spokesman in the "Sonntagsblick" newspaper. The list has been compiled for Swissair staff, who need to take flights, when no Swissair planes are available.
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