Swiss airline to cut 3,050 jobs, 34 aircraft

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Swiss airline to cut 3,050 jobs, 34 aircraft

BASEL, Switzerland (AP) =97 Switzerland's struggling national carrier Swiss=
=20
International Air Lines said Tuesday it will slash its work force by more=20
than a quarter and cut 34 aircraft from its fleet. The airline, known as=20
Swiss, said a meeting of its board had approved the latest cost-cutting=20
plan =97 including 3,050 job losses =97 which aims to save about $1.2=
 billion.=20
"The board of directors is convinced that the planned restructuring is an=20
essential condition for the survival of Swiss," the company said. On=20
Monday, trading in the airline's shares was suspended for two days because=
=20
the board meeting was expected to announce drastic cuts. Swiss, formed with=
=20
government help in March 2002 on the foundation of the collapsed Swissair,=
=20
lost 980 million francs =97 then $706 million =97 in its first year of=20
business. The company already had said it planned to cut costs by $454=20
million this year.

In May, Swiss said that more drastic measures were needed because of=20
economic problems plaguing the airline industry. The company was one of=20
several which cut services to Asia because of falling demand amid the SARS=
=20
crisis and the Iraq war. "Only healthy, well positioned companies will=20
survive" in the global airline market, Swiss said Tuesday. About 700=20
cockpit jobs will go, Swiss said. Another 850 flight attendants and 1,500=20
ground staff also will lose their jobs. The company currently employs about=
=20
10,500 people. Swiss said the losses were a "painful measure," adding that=
=20
it is holding talks on the layoffs with labor unions. GATA, the biggest=20
union representing ground staff, called the cuts "unacceptable" and accused=
=20
the ariline's board members of acting "brainlessly." The airline said it=20
will cut 34 aircraft from its fleet, leaving it with 74 planes. After the=20
changes, due in the fall, Swiss' long haul fleet will stand at 18 aircraft,=
=20
its medium-haul 21 and its regional fleet at 35. Swiss said it will=20
eliminate about a third of the destinations in its network. The airline=20
also said it plans to start charging economy class passengers for in-flight=
=20
services like meals on European flights =97 something many low-cost airlines=
=20
do already.


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