ah, well, you can read German, then… well, here’s my translation of the article for thsoe who can’t, anyway…
After the Collapse of Swiss’ planned joining of the oneworld Airline alliance, there are currently no talks with alternative partners. That’s Swiss’ Board Room President [I think that’s to say the Chairman] Pieter Bouw’s take on it on Thursday. An Alliance ‘isn’t a necessity to [Swiss’] survival’, as Bouw told the Press.
Swiss had previously announced that they would be passing up on the chance to join oneworld, as they hadn’t been able to reach an agreement with oneworld leader British Airways about the integration of their frequent flyer programs. The substantial costs and disadvantages hadn’t been enough to outweigh the medium and long-term advantages, as Bouw explained the decision. He regrets the development, but the price of joining oneworld under the existing parameters was too high.
Swiss would have had to give up the database of their Swiss Travel Club frequent flyer program. Swiss, however, didn’t want to sacrifice their ‘best asset’. Bouw went on to say that the consequences of the integration of the frequent flyer programs hadn’t been foreseeable when their joining of the alliance had been announced in Autumn 2003.
Changed situation
Swiss retains their total operational and strategical independence. The Company is in better shape than in last autumn, according to Bouw. The Market is slowly recovering, and the liquidity of the company is better than expected. Bilateral agreements with most oneworld members would remain in place. Unaffected by the decision was the transferral of 8 pairs of slots at Heathrow Airport in London to British Airways.
Five of these 8 Slots are a deposit on a credit of 50 Million Swiss Franks [some 40 Million Dollars/22 Million Pounds/33 Million Euros] that Swiss had taken out in February this year. The loss of these slots will have negative financial implications. Other costs for the failed membership drive were termed at 5 Million Franks.
No talks with others
Negotiations for a new agreement were not currently taking place, said Bouw. Nor are any discussions with the German Lufthansa being held. Before Swiss announced their aim to join oneworld last autumn, they’d been conducting talks with Lufthansa about a takeover.
When former Lufthansa-Manager Christoph Franz took over at the top of Swiss [about two months ago, as CEO], and the stalling of the talks with British Airways became obvious, there was increased speculation about a deal with Lufthansa again. Franz was involved in the decision to exit oneworld, Bouw confirmed.
Swiss is currently working at strengthening their financial situation and the implication of a turnaround plan, continued Bouw. A Share issue wasn’t excluded by him, they wanted to keep all their options open.
http://www.BaZ.ch © by Basler Zeitung
didn’t know about LH taking out a loan, hmm, the plot thickens…
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