Zurich, Johannesburg | Tuesday
SWISSAIR Group, crippled by at least 15-billion Swiss francs ($9,1-billion) in debts, said this week it was splitting up, and it seems almost certain that it will sell it’s stake in South African Airlines. Swissair owns 20% of SAA. The company also holds stakes in Sabena (49,5%), the German charter service LTU (49,9%), Polish airline LOT (37,6%) and Italian company Volare (49,79%).
SAA representative Rich Mkhondo, said the divestment issue was new and SAA would issue a statement once it had heard from Swissair.
”We hope Swissair will be able to solve its financial problems,” Mkhondo said.
”It is not up to us to speculate on its financial standing at the moment.
”For us, Swissair has been a good business partner and we hope its financial situation will not change our partnership.”
The outgoing chairman and chief executive of Swissair, Mario Corti, told a press conference that there would be a ”dismantling” of Swissair’s capacity leading to 2 560 job losses. ”SAirGroup has asked for bankruptcy protection for the companies SAir Group, SAirlines, and Flightlease with the relevant judicial authorities,” the group said in a statement.
Corti said about 3,5 to 3,8-billion Swiss francs was wiped off the group’s already ailing balance sheet as the aviation industry as a whole slumped after the September 11 attacks in the US.
”All the aviation industry is suffering a reduction of credits and it hit our group when we were starting to pick up,” Corti said.
Experts said earlier that bankruptcy protection would allow the group to renegotiate its debts and commitments.
Corti said the group would be divesting itself of its foreign assets and could not support any payments for recovery plans at foreign airlines in which it has shareholdings or commitments.
”I’m sorry but we will not be able to pay,” Corti said. – AFP, Sapa