quite shocking…..
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Swissair ‘resolved to let Sabena fail’:
BRUSSELS — Several months before Swissair promised the Belgian government to increase its stake in troubled airline Sabena, the Swiss flag carrier had resolved to let its daughter company collapse, it was claimed on Thursday.
French-language radio broadcaster BEL-RTL said the claims were made in a Thursday-published report from a Swiss investigation commission assigned the task of examining the role the Swiss government played in the Swissair crisis
And according to the report, three Swiss banks and Swissair reached an accord about its daughter companies on 25 April 2001 — an agreement which outlined the downfall of Sabena.
But despite that agreement, Swissair agreed three months later to inject EUR 425 million into Sabena, a promise which the Antwerp Gazette said appears to have been a “swindle”.
The commission’s report also alleged Swissair concealed its financial problems by profiting from its daughter companies, especially Sabena, enabling it to reduce its own losses.
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link: http://www.expatica.com/belgium.asp?pad=88,89,&item_id=25926
By: aerpix - 7th October 2002 at 21:01
RE: Swissair ‘resolved to let Sabena fail’
[updated:LAST EDITED ON 07-10-02 AT 09:04 PM (GMT)]I completely disagree.
Swissair did not conceal its financial position, merely its CFO Andre Schorderet concealed the true financial position to the Swissair management for quite some time. As late as mid-2000 Monsieur Schorderet announced that the full year profit (yes, profit) for 2000 would be around CHF 200 million. We all know that the full-year loss for 2000 was eventually CHF 2.8 billion.
In early 2001 the then CEO Philippe Bruggiser was sacked, and his post was taken by then Crossair CEO Moritz Suter. Mr. Suter decided to quit after only 44 days, mainly because he was not really supported by the Swissair management, namely by Mr. Beat Schär (now CEO of Belair Airlines, the Hotelplan-owned airline that took over from Balair). After Mr. Suter left SAir Lines, Mr. Mario Corti was announced new CEO in March 2001. At that time the CFO was still Monsieur Schorderet.
During the first three months business at Swissair went on as usual. During this time the promise to pay €425 mln to Sabena was made, a payment that was due according to a schedule agreed upon earlier. In summer 2001 Mr. Corti appointed Jacqueline Fouse as new CFO, and a few weeks later Mrs. Fouse ousted the true financial status of the SAir Group and Swissair. The time was about August 2001.
From this very moment on the SAir Group and SRAir Lines group of companies realized that bankruptcy was around the corner, with losses now mounting to CHF 4.5 billion. It may well be understandable that at this moment any further payments to loss-making carriers such as Air Littoral or Sabena were simply impossible. There was no money to be paid to anybody.
As we all know Crossair was then bought out of the SAir Lines group by the banks, and it was their intention to let Swissair go down, and use Crossair as the basis for a new Swiss carrier. Money promised by the banks was withheld, eventually leading to the grounding of Swissair on 02 Oct 2001. After that Swissair was put under administration, and Crossair became Swiss on 01 July 2002.
Swissair and the SRAir Group are now in the process of being wound up in a controlled action by the administrator. The assets of Swissair are estimated at some CHF 400 million, with total group losses exceeding 17 billion Swiss Francs. The bankrupcty dividend therefore is marginal.
Certainly there is no money around to pay off any of Swissair’s former affiliates, and that includes Sabena.
Regards,
Peter
see ya at www.aerpix.net
By: Geforce - 6th October 2002 at 15:28
RE: Swissair ‘resolved to let Sabena fail’
Indeed, and Sabena was a nice example of Swiss arrogance and Belgian incompetence. Anyway, the federal parliament is investigating the case, and gets support from the European Parliament. Therefor, Belgian inspectors can even go to Toulouse (the European ‘Seattle’ :-)), and ask the company to give all documents necessairy to find out what went wrong. Airbus is cooperating, but both SwissAir and the Swiss gov’t are blocking the investigation. One reason why the relations between the EU and Switzerland are troubled.
By: Hand87_5 - 6th October 2002 at 08:44
RE: Swissair ‘resolved to let Sabena fail’
When one deals with the shark …..
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October 6, 2002 at 8:04 am