Airline: Swiss in a corona coma: So much money is left from state aid

• Budapest
• Florence
• Rom
• Venice
• Gothenburg
• Hannover
• Krakow
• Manchester
• St. Petersburg

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In addition, connections to Spain and Portugal, for example, are being thinned out. In total, Swiss flies only ten percent of the 2019 flight program in February 2021. On long-haul routes, Swiss operates practically as a cargo airline. Swiss is again in a corona coma. “The latest adjustments will mean that we will park at least two more short and medium-haul aircraft temporarily,” said Swiss spokeswoman Meike Fuhlrott to watson. 48 aircraft remain operational for the time being.

How much money does Swiss still have?

In November 2020, CFO Markus Binkert said that Swiss was making a loss of 1.5 to 2 million francs per day. In the industry, it was hoped that the situation with the corona vaccines would slowly return to normal. “The opposite has de facto happened. Further state aid is probably needed to ensure the survival of airlines like Swiss, ”says William Agius, aviation expert and aviation lecturer at the ZHAW Winterthur.

The Swiss aid package put together by the Federal Council last spring (state guarantees for bank loans in the amount of 1.5 billion francs) was intended to provide bridging aid until the end of 2020. «Now there are no signs of a quick end to the crisis. Many states in Europe now have to think about the terms and conditions under which they will grant additional state funds, ”said Agius.

«Liquidity is not at risk. So far we have only drawn a small part of the loan and still have around a billion francs available. “

Swiss spokeswoman Fuhlrott says: The liquidity of Swiss is not at risk. “So far we have only drawn a small part of the loan and still have around a billion francs available (including Edelweiss).” Swiss wants to provide detailed information on the overall financial situation at the balance sheet media conference on March 4th.

Business travelers are falling away

Zoom session instead of business trip: The future prospects for the airlines are anything but rosy. Because Corona is likely to change the travel habits of business people in particular, who represent the most lucrative clientele for the airlines. The head of the Star Alliance, to which Swiss also belongs, assumes that 30 percent of business traffic will be eliminated in the future.

According to the consultancy PWC, however, business travel can account for up to 75 percent of the revenue on some international flights, as the “Financial Times” recently reported. Before Corona, Swiss bought larger long-haul jets with the Boeing 777 and added new destinations such as Osaka to the network.

It is unclear whether such flights will still be profitable in the future. “The Swiss hub model must be called into question because of Corona,” continues aviation expert Agius. Because Swiss can only operate the hub in Zurich-Kloten economically with transfer passengers. “Because of the travel restrictions, direct flights are more popular than connecting flights,” says Agius.

Either way, the industry association IATA assumes that air traffic will only return to its previous level in 2024/2025. If any. “It is an illusion to believe that everything will be back to normal this summer,” says Agius.

Uncertainty wears down pilots

The uncertainty remains great. This is particularly grueling for pilots. “There are people who haven’t been in the cockpit for a year. To get through this, you need a stable character, ”says Thomas Steffen, Aeropers spokesman and Swiss pilot. The pilots union is currently negotiating with Swiss about temporary cost reductions.

“There are people who haven’t been in the cockpit for a year.”

Thanks to the concessions made by the pilots, the Edelweiss can save up to 20 percent on wages. «We are ready to do our part. And try to prevent layoffs as much as possible, for example through innovative part-time models, ”says Steffen.

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