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You are here: Home  >  Travel Magazine  >  Executive Travel  >  Airline Briefing  > SWISS remarkable renaissance 090208.
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SWISS: remarkable renaissance



February  2008

Bankrupt six years ago, Switzerland's national carrier has been born again since its acquisition by Lufthansa. Sheron Crossman looks at the flight path to success

Who'd have thought it? In just six years, SWISS International Air Lines has risen phoenix-like from the ashes of bankruptcy to transform itself into an award-winning, financially successful carrier, with long-haul ambitions to catapult it into the airlines' premier league.

Thanks to parent company Lufthansa, which took over SWISS in 2005, last year was the carrier's most financially successful to date, allowing a massive $835 million investment in its fleet and a slate of new routes and services.
All the old Airbus A330-200s are being retired, to be replaced with the bigger, more advanced A330-300s and two A340s, allowing SWISS to expand its long-haul routes.

Delhi became the first last October, added for the winter timetable, the carrier's second destination after Mumbai in the rapidly growing Indian market. The new connection gives business travellers a much-needed direct, non-stop service – Switzerland's exports to India have more than doubled in the past three years, increasing by 36% in 2006 alone.

The additional aircraft have also given SWISS the flexibility to launch a service to Shanghai this summer, its first foothold in China. As the airline is a member of the Star Alliance, and with Air China and Shanghai Airlines also now on board, there will be considerable opportunities for further links with Switzerland's second biggest Asian trading partner.

"We will operate the route daily from May 9, but during the Olympics over the summer, we'll extend the service to Beijing," says Gregor Koncilja, UK and Ireland sales manager. "After that, we'll evaluate the possibility of continuing the link to the Chinese capital."

SWISS has also increased capacity to Los Angeles, Johannesburg and Santiago de Chile (via São Paulo), all now served daily. Last summer, flights were boosted to Riyadh, in Saudi Arabia, from four to five a week. The additional service was operated by an all-Business Class jet, leased from PrivatAir. The same configuration has also been used from Zurich to Newark, proving a huge hit with business travellers, but its continuation is surprisingly uncertain. "The route to Newark has been immensely popular with our customers, but we are still in the process of deciding its future," says Koncilja.

While business passengers have been the backbone of SWISS's new-found success, the airline's primary focus is now on its First Class product. By replacing the A330-200s with the larger A330-300, the airline can offer cabins at the front of the aircraft throughout its long-haul fleet to all its intercontinental destinations.

Meanwhile, back on the ground, a huge, new First Class lounge opened in Zurich in January, providing pre-flight dining, hotel-style rooms for rest, single working offices, and a conference room for meetings. The dedicated First Class check-in area has also been expanded, and two lounges are soon to be opened for Business Class customers and frequent flyer members of Miles & More Senators, both of whom benefited from a new ticket office with dedicated counters, introduced last December.

In addition, two lounges were also opened at Geneva airport last November, one for First Class customers, the other for Miles & More members. They supplement the Business Class facility opened in Geneva a year ago.

Back in the air, acquisition of four new aircraft has given SWISS the flexibility to expand its network in Europe. Two more Airbus A320s joined the fleet early this year, with two more planned for delivery in 2011 and 2012. The airline has increased its service from Zurich to Berlin from three to four flights a day, giving business passengers an early morning departure to, and early evening return from, the German capital.

From March, a daily service will be launched from Zurich to St Petersburg, significantly expanding the airline's position in the booming Russian market. The city is second only to Moscow as a key business centre for Switzerland, with many Swiss firms recently opening branches there.

Ties with Italy are also to be strengthened this summer with the start of a thrice-daily service from Zurich to Florence. And from March, a daily flight from Zurich to Sofia will be welcomed by the growing number of business customers with branches in Bulgaria.

With passenger numbers up to 12 million last year, a 13% rise over 2006, and load factors increasing to more than 80%, SWISS is in a strong position for the coming year. But with typical Swiss prudence, Gregor Koncilja sounds a note of caution: "We've just had the best year in our history. Our membership of Star Alliance is very important for reducing our cost base, and we have excellent synergies with Lufthansa. But in 2008 we need to be careful; it's going to be a tough year for all airlines. We're looking for organic growth. But, yes, I'd say we're very well positioned."

What you get with Swiss Business Class (intercontinental routes)

  • Seats reclining up to 130º,
    60-inch seat pitch (A340),
    55-inch (A330)
  • Choice of five-course meal, or quick meal, available immediately after take-off to allow for work or sleep
  • Welcome glass of champagne or orange juice and snacks
  • Telephone at every seat
  • Laptop connection (via cable on A330), SMS – write texts, send e-mails
  • Extensive in-flight entertainment programme, including games, music, and 35 film and TV channels
    Website: www.swiss.com
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