Andrew Doyle/MUNICH
The SAirGroup board has jettisoned chief executive Philippe Bruggisser and ruled out further airline investments, dropping a strategy that has left the Swiss group facing crippling losses in its airline division. SAir says Bruggisser was "kicked out", although some reports claim he resigned.
SAir chairman Eric Honegger becomes group CEO on an interim basis, while in a surprise move, Crossair founder and CEO Moritz Suter takes charge of the struggling SAirLines unit, comprising Balair, Swissair, Crossair and Sabena. Crossair vice president flight operations André Dosé replaces Suter as president and chief executive of Europe's largest regional.
Bruggisser's exit and comments by SAir suggest its minority holdings in a raft of foreign carriers, plus Swissair's non-membership of a global alliance, are now in question. Oneworld founder British Airways is seen as the most likely partner for Swissair.
SAir says its alliance strategy will now be aimed "squarely at making the airline business profitable". It says this will require "a reduction in the risk associated with equity holdings in the airline sector" and that "no further investments or acquisitions will be made".
SAir holds equity in France's Air Littoral, AOM and Air Liberté, which are due to merge to form a single airline, plus Sabena, LOT, TAP Air Portugal, LTU and the Volare Group - all members of the Swissair-led Qualiflyer Group. SAir has already withdrawn from talks over purchasing stakes in Malaysia Airlines and THY Turkish Airlines, but retains a stake in South African Airways. The latter may be safe, given SAA's lease deal with SAir's Flightlease subsidiary and appeal to potential SAir allies, although there are doubts whether it will take a planned extra 10 per cent in SAA.
SAir has sold its 4.6%stake in Delta Air Lines, having dissolved its transatlantic deal with the US carrier. The carrier is now co-operating with American Airlines.
While many of SAir's airline-related businesses - such as catering, ground-handling, cargo, maintenance, leasing and information technology - are profitable, its airline operations are not. Bruggisser nevertheless insisted Swissair and its partners' interests were best served by remaining independent, putting him into conflict with shareholders. A new strategy will be revealed in March.
Source: Flight International
