Switzerland's leading business association, Economiesuisse, has offered to help save struggling national carrier Swissair by waiving tax cuts worth SFr 300 million each year for the next five years.
Economiesuisse's announcement came after a request from transport minister, Moritz Leunenberger, urging the country's business leaders to help the government in a combined effort to come to Swissair's aid.
Swissair has been struggling because of old debts accumulated by former management, during its disastrous expansion policy, when it bought stakes in financially weak foreign airlines in an attempt to build its own international alliance. The airline is the biggest failure in Switzerland's corporate history.
Initially, Swissair's regional sister carrier Crossair was to take over as the country's flag carrier under a SFr1.4 billion rescue package put together by the UBS and Credit Suisse banks but Crossair chairman, Andre Dosé, has estimated that the cost was more likely to come to SFr4 billion.
The government is due to meet today (Wednesday) to discuss various ways of of recapitalising the airline and to decide whether it should offer further state aid to Swissair having already arranged a bridging loan of SFr450 million.
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