There are still several different versions of Phoenix, but the most likely one, Phoenix Plus, would see 52 Swissair jets, equal to two-thirds of its fleet, transferred to Swissair's regional airline, Crossair. Phoenix Plus would cost 9,400 jobs, or 14 per cent of Swissair's workforce, and would require a total of SFr4bn of new equity, far more than the SFr1.5bn originally thought to be needed when the airline collapsed three weeks ago.

Although various lesser options have been canvassed, the Swiss government and a number of major Swiss companies believe that Phoenix Plus is the only realistic option if Switzerland is to maintain an intercontinental airline and a matching hub at Zurich airport. In their eyes, the final collapse of Swissair would have incalculable consequences not just for Swiss pride in its image, but more directly in terms of collateral job losses.

It is a moot point whether supporting the high-price, over-unionised dinosaurs of Europe's antiquated airline industry is worth the effort and the cost. In economic terms it probably isn't, but governments aren't good at being economically numerate when it comes to national symbols like Swissair.

The Swiss government, which injected SFr450m to keep Swissair flying three weeks ago, is proposing to put up a further SFr500m of the SFr2bn needed to increase Crossair's capitalisation, and will also fund Swissair's continued operations until April 2002 when the transfers of the airline's assets to Crossair would become legally effective.

Switzerland's top two banks, UBS and Credit Suisse, are still prepared to take part in the rescue - they originally offered SFr1.5bn to the plan - and they were joined on Friday by other major Swiss companies including Nestlé, which reported internal sales growth of 4.2% in the nine months to September, down from 4.6% at the half year, but ahead of its 4% target. (People who are afraid of flying stay at home eating more chocolate instead, it seems.)

“We are identified as a Swiss company and we don’t want to have Switzerland seen as a country where things do not work,” explained a Nestlé spokesman. However the company said that it would only consider investment in a viable airline that could yield a return for shareholders. “There is no question of throwing good money after bad,” said the spokesman. Nestlé's former chief financial officer, Mario Corti, was asked to take over as Swissair chairman when the company's financial emergency emerged in April.

Other Swiss multinationals, including the Roche and Novartis drug groups, as well as Swatch and Zurich Financial Services, may take part. If the deal is finalised, it is understood that former Credit Suisse chairman Rainer Gut will chair a working party to oversee the metamorphosis of Crossair into a major international carrier.

Between the Government and the private sector, then, it seems that the SFr4bn may be achievable, although the timescale for complex negotiations is very short. The attitude of the EU and Competition Commissioner Loyola de Palacio to such a major injection of state funds into a national carrier may be very influential in the decision. A private sector investor would not want to be vulnerable to possible EU sanctions against a company that had broken State Aid rules. Although Switzerland is not a member of the EU, it has bilateral treaties with the EU which bind it in to large parts of single market legislation.

The complication of the deal probably means that it can receive no more than a general go-ahead today, and that may not be enough for the administrators. Filippo Beck, head of the Wenger Plattner administration team says that anything short of a 'guarantee' of new funding would increase pressure on Wenger Plattner and the bankruptcy judge responsible for Swissair to reject current proposals to grant it a "definitive debt-restructuring moratorium", and instead put the company straight into liquidation.

Wenger Plattner says its primary obligation is to protect the interests of Swissair's creditors, including its employees. Six Swissair companies are currently under credit protection and under the administration of Wenger Plattner: SAirGroup, SAirLines, Flightlease AG, Swissair Schweizerische Luftvehrkehr AG, Swisscargo AG and Cargologic AG.