[NEWS]: Swiss' board to pick alliance partner Monday

http://biz.yahoo.com/rc/030921/airlines_swiss_1.html

Swiss' board to pick alliance partner Monday-paper
Sunday September 21, 11:50 am ET

ZURICH, Sept 21 (Reuters) - The board of Swiss International Air Lines will
decide on Monday which alliance the loss-making airline will join and
announce the move at a news conference the next day, a Swiss newspaper said
on Sunday.

A board decision would remove a cloud hanging over shares in Swiss, which
have swung wildly in recent months amid fluctuating hopes of news on an
alliance partner, and clarify the fate of the carrier including future
financing.

A spokesman for Swiss declined to confirm the report in the SonntagsZeitung.
"We do not comment on plans for internal meetings nor on our communication
strategy. You will just have to be patient for a little longer," he said.

The reported timing of the long-awaited decision would be in line with
comments by the carrier's Chief Executive Andre Dose, who said late in
August the decision would take several weeks.

Media reports have said the board is narrowly divided on whether to opt for
the oneworld group led by British Airways or the world's largest airline
partnership, Star Alliance, which includes German rival Lufthansa.

Complicating factors include Swiss' need for 500 million Swiss francs ($362
million) in working capital, which media reports said BA is loath to fork
out, and likely further job and fleet cuts at Swiss to minimise a possible
threat to alliance partners.

Politically sensitive are any partner's plans with Zurich airport, now the
hub of Swiss' network and a major employer in the region, which could be too
close to Munich for Lufthansa's comfort but might meet BA's need for a
second hub.

Culturally and linguistically, Swiss is seen as easier to merge with
Lufthansa, which media reports said is eyeing a full bid offering Swiss
shareholders including the Swiss state and leading banks UBS and Credit
Suisse Lufthansa stock in return.

From a perspective of national pride -- a sentiment blocking many potential
airline mergers in Europe -- the BA option might be favoured since Swiss
would remain autonomous and its network largely left intact due to a lack of
overlap, analysts say.

Since Swiss was born of collapsed Swissair and regional carrier Crossair in
April 2002, it has always said it preferred joining oneworld, including
American Airlines.

Like many of its rivals, Swiss is fighting to survive in an overcrowded
airline industry and has already reduced its fleet and staff by around a
third and cut its route network.

Swiss' shareholders have not publicly stated a preference for BA or
Lufthansa, but made it clear that they do not plan to invest more in the
airline, whose stock has lost almost 20 percent in value this year after
shedding 54 percent in 2002.

--
Goliath & Wildwing's Storage Room
http://anatidae.homestead.com/

Fortunately,
they picked the ones I dislike: American, British...

Should they have entered Star Alliance, I would have
stopped traveling with United, Lufthansa & Singapore.
I fly at least 10 overseas trips a year and when I buy
a ticket from a Star Alliance member, it's to have
professional and quality service. Not to end up in a
Swiss Air Lines plane!

I'm a swiss citizen, but have been boycotting Swissair
and its new renamed Swiss daughter for 16 years.
Swiss is not failing due to the Sept. 11 or the SRAS
disease. They're failing because they're incompetent
and they offer ugly service. Arrogance always made them
think "we are the best, nobody equals us". Problem is
that it's not enough to keep saying that to have it
become true. You have to match the pretention in
service.



Sincerely,
Steve JORDI

(Remove the K_I_L_LSPAM from my email address)
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