Swissair Group seeking solutions for the financing of salaries and severance benefits

The Swissair Group is in the process of serving notice to many of its employees. Approximately 9’000 jobs will be eliminated world-wide. 4’500 of those will affect Switzerland.

The financing of salaries (as of November) and severance benefits has not yet been secured for the affected employees of companies in "Nachlassstundung" administration and protection from creditors. The Swissair Group is intensively seeking solutions for the financing of these payments.

Companies which are not in "Nachlasstundung" will be financing salaries during the notice period as well as severance benefits stipulated by contract out of the their current operation. The number of jobs to be eliminated in these companies in Switzerland are as follows: Gate Gourmet 300, SR Technics 800, Atraxis 460, Swissport Zürich 250, others: 112.

The following companies are in "Nachlassstundung" and will reduce the number of jobs as follows:: Swissair AG: Pilots 300, Flight Attendants 1000, Ground personnel 540. Swisscargo 100, Cargologic 190, Flightlease 30, SAirGroup Corporate 410.

The financing of the salaries during the notice period for these employees has explicitly not been provided for within the Phoenix Plus plan. Moreover, the court-appointed administrator decided not to consider the contracts of employment of these companies. This means that employees who are given notice by a company in “Nachlassstundung” and released from duties are entitled to salary payments and severance benefits. However, these payments can only be made after the completion of liquidation proceedings which is expected to last several years. These employees will therefore be compelled to claim unemployment benefit already in November.

The Swissair Group has been working together intensively with the administrator, the government and banks since October 8, 2001 in an effort to find a solution to support these financial claims in a timely manner. Until now, no solution has been found. The Swissair Group management will do everything in their power to enable a fair solution for everyone.

The Swissair Group is working together with Crossair in an effort to offer contracts of employment to as many employees as possible who can be employed in the new Swiss airline. No concrete solutions have been found in this situation either. Until now, potential employees belonging to this group have not yet been served notice.

In addition, the administrator has also decided that he will not consider the financing of the “Option 96”, a Swissair Group early retirement programme established in 1996. The Swissair Group is also intensively looking for financial solutions to support the claims of these former employees.

The Swissair Group would like to thank all of their employees for the admirable loyalty and extraordinary commitment they have displayed during these difficult days of uncertainty.