Swiss International Air Lines, which replaced Swissair and Crossair when the Swiss national airline collapsed last year, is struggling to survive as load factors continue to fall, particularly on regional routes. The airline has announced the formation of a new low-cost regional carrier to be known as Swiss Express.
Swiss, which has shed 1,000 jobs and retired 20 aircraft in the last year, also said it aimed to cut salary costs by ten per cent. However, there are no immediate plans to reduce the airline's flight network or shed more jobs.
Swiss made a loss of SFr980 million ($728 million) in its first year. The airline's shares, which have fallen 81% this year, rebounded sharply on the news. The airline said is was acting "in response to new market conditions to offer low-cost air connections, especially within Europe".
The company said it expected its liquidity to decline to SFr500m by the end of the year from SFr861m at the end of the first quarter.
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