SF Gate: Trading in Swiss carrier's stock suspended as deal speculation mounts

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



=20
----------------------------------------------------------------------
This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/09/22/i=
nternational0406EDT0464.DTL

----------------------------------------------------------------------
Monday, September 22, 2003 (AP)
Trading in Swiss carrier's stock suspended as deal speculation mounts



   (09-22) 01:06 PDT ZURICH, Switzerland (AP) --
   Trading in shares of Switzerland's struggling national airline was
suspended Monday amid mounting speculation that the company will announce
a lifesaving deal with another carrier.
   Swiss International Air Lines -- known as Swiss -- said it had requested=
 a
suspension in trading on the Zurich exchange until 8 a.m. EDT Tuesday. At
the close of trading Friday, Swiss stock stood at 16.85 francs, or $12.32.
   The airline said it would make no further comment but added, "The
timetable for any announcement of major decisions at Swiss will be
communicated later today."
   Swiss has faced massive financial problems since it was created out of t=
he
defunct Swissair in March 2002, losing 980 million Swiss francs -- then
$706 million -- in its first year of business.
   Swiss has blamed its money woes on continuing global economic instabilit=
y,
the SARS crisis in Asia, the Iraq war, and major changes in European air
travel due to the increasing influence of low-cost carriers.
   Two months ago, Swiss said that in October it would eliminate a quarter =
of
its destinations -- including New Delhi, Rio de Janeiro and Beijing -- in
the latest in a series of moneysaving plans. It added Washington to the
list last week.
   The destination cuts followed the airline's decision to slash nearly
one-third of its workforce and aircraft.
   Much attention has focused on a possible deal with German carrier
Lufthansa. Both companies have consistently refused to comment on reports
that this month they will agree on a share swap to give each airline a
stake in the other company and provide Swiss with a $366 million cash
injection from Deutsche Bank, Lufthansa's financier.
   A link with Lufthansa would enable Swiss to join Star Alliance, a network
that consists of 16 carriers, including Air Canada and United Airlines.
   Last month, officials from Swiss also met with British Airways executives
in London, but Swiss has refused to comment on speculation that Swiss will
join the OneWorld alliance, led by the British carrier and American
Airlines.

=20
----------------------------------------------------------------------
Copyright 2003 AP

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]