SWISS to optimise fleet, routes and operations

SWISS is to introduce a comprehensive optimisation programme which is designed to add CHF 400 million to its 2003 bottom line. The programme includes modifications to the airline’s route network from the start of the 2003 summer schedules, a downsizing of the aircraft fleet, a revised charter concept and enhancements to its inflight product. The actions will entail the elimination of some 300 personnel positions, which should be effected through natural attrition as extensively as possible. At the same time, the company intends to create around 200 new positions in its Technical Services and IT divisions. A separate media release is being issued on the company’s third-quarter results.

As the first seven months of full business operations have confirmed, SWISS is largely on course, with an aircraft fleet that is broadly the right size for an airline that strives to offer a comprehensive route network. The company is, however, about to effect some slight modifications to its fleet and route network, along with further product enhancements, in response to current market needs. The optimisation programme includes various measures aimed at both the cost and the revenue side of business operations.

The SWISS Board of Directors approved the following proposals from Executive Management at its meeting of November 18: 

Fleet and network

The aircraft fleet will be reduced by one long-haul aircraft (an MD-11), one medium-haul transport (an Airbus A320) and three 50-seater regional aircraft. The downsizing will result in the withdrawal of services primarily from routes which are generating less-than-satisfactory results and offer no prospect of longer-term success.

Charter

SWISS’s charter services will be operated by four Airbus A320s in place of the current seven MD-80s. The aircraft can already be deployed to fulfill long-term contractual agreements which have already been concluded.

Personnel

The withdrawal of five aircraft from the scheduled services fleet, the downsizing of the charter fleet, the delay in deliveries of the Embraer ERJ 170 and the introduction of a new efficiency-raising pilot rostering system for the regional fleet will entail a reduction in the numbers of cockpit and cabin personnel. The positions to be eliminated among the ground staff corps are part of the overall cost-cutting measures. Of the total elimination of 300 positions company wide, the reductions required among the cabin crew corps and ground personnel (160 positions) can be achieved through natural attrition. For the elimination of the 140 positions among the cockpit crew corps, SWISS will be devising socially-acceptable solutions in collaboration with the pilots’ unions.

Product

The Business Class service product on SWISS’s regional aircraft fleet is to be enhanced to differentiate it more clearly from its Economy Class counterpart. The move is designed to both save Economy Class costs and increase satisfaction among Business Class passengers. On the long-haul front, SWISS will be optimising the balance of its two and three-class products, and will be deploying suitably-configured aircraft to meet each market’s needs.

Destination Excellence

The Board of Directors also approved a programme named “Destination Excellence“. The programme, which is set to run until 2004, is intended to effect sustainable long-term enhancements to productivity and the quality of the SWISS service product. The actions envisaged will be focused on the SWISS product both in the air and on the ground.