Swissair

Swissair Swiss Air Transport Company Limited ( Swissair ) was the name of the national Airline company Suisse pertaining to SAirLines , investment companies subsidiary company of SAirGroup. Swissair was born in 1931 from fusion from Balair and AD Astra Aero. It was founded by Balz Zimmermann and the pioneer of aviation Walter Mittelholzer. The company went bankrupt in 2002.

In 1932, it is the first European company to bring into service single-engined aircrafts of American construction, type Lockheed Orion. In 1934, it innovates by engaging the first airline hostesses. In 1949, it inaugurates a regular line Geneva - New York.

In 1947, it became the Swiss national company, the public authorities acquiring 30% of the share capitals carried from 1 to 20 franc million.

Called " the bank volante" because of its over-capitalization it was almost a national symbol in the Années 1980. The company was reformed and amalgamated with Crossair by the Swiss Confederation to safeguard employment and is called starting from this fusion Swiss but officially Swiss International Air Lines .

Chronology 1992-2001

December 6th 1992 - Following “not” of the Swiss people to the contracts of European Economic space, the bilateral convention of air traffic between Switzerland and the European Union (integral part of the EEE) are blocked. Swissair is seen thus prevented from entering freely the market européen.
1993 - the project “Alcazar”, which envisaged the regrouping of Swissair, Austrian Airlines, SAS and KLM, is abandonné.
December 14th 1994: The board of directors approves the request of acquisition of a participation of 49% in Sabena in the price of CHF 426 million (Y.C. agreement of a loan of an amount of BEF 4 billion resp. CHF 159 million at the Belgian official holding company).
April 4th 1996: Swissair announces its decision to withdraw, as of the winter time 1996-1997, the majority of its intercontinental long-distance flights at the beginning of Geneva, centring its activity on Zurich. Political storm in French-speaking Switzerland.
May 1997: Foundation of Flightlease. It is used in SAirGroup as leasing company which buys planes then relets them the groupe.
Automne 1997: McKinsey & Co. is elected with the development of a “Multipartnership-Strategy”. From this project the strategy Hunter.
January 19th 1998 results: The committee of the board of directors of SAirGroup decides for the Hunter strategy, on request of the direction of the groupe.
March 20th 1998: “Qualiflyer Group” is founded and the agreement of alliance signé.
July 1998: SAirLines acquires a participation of 34% in the Volare airline company in the price of ITL 5 milliards.
September/October 1998: SAirLines acquires a participation of 49% in Littoral Air in the price of FRF 132 millions.
September 2nd 1998: Crash landing of a MD-11 Flight Swissair 111 near Halifax.
October 26th 1998: SAirLines acquires an indirect participation of 49.9% in Air Europe in the price of CHF 150 millions.
October 1998: SAirLines acquires 49.9% of group LTU at the price of DEM 1 ' 098 millions.
February 1999: SAirLines acquires a participation of 49.5% in AOM Participations S.A. in the price of FRF 422 millions.
June 1999: SAirLines Europe B.V acquires a participation of 20% in South African Airways (SAA) in the price of USD 230 millions.
June 1999: Gate Gourmet General Partnership, Delaware, acquire the company Catering Dobbs the USA at the price of USD 681 million. Then Dobbs the U.K. is acquired for USD 55 million. Moreover, USD 45 million are paid for the mark (trademark). The total purchase price of USD 781 million is mainly financed by a loan of SAirGroup Finance (NL) B.V of an amount of EURO 400 million. Little time after, this financing is replaced by a loan SAirGroup Finance (the USA) Inc. of an amount of USD 300 millions.
16 September 17th 1999: The board of directors approves the recapitalisation of Littoral Air with FRF 600 millions.
November 1999: SAirLines Europe B.V acquires a participation of 37.6% in BATCH Polish Airlines in the price of USD 183 millions.
December 16th 1999: The board of directors approves a credit line for LTU assembling with DEM 300 millions.
April 25th 2000: The board of directors is informed that it was necessary to conclude a term sheet with the Belgian State for additional acquisition on the one hand from 37.75% in Sabena (total participation 85%).
From July 2000: Meeting of substantial activities of Swissair and Sabena in Airline Management (AMP) Partnership.
August 2000: At the time of the press conference relating to the semi-annual report/ratio 2000, SAirGroup expects a benefit of CHF 200 million for the exercise 2000.
August 17th 2000: The board of directors approves the cleansing and the reorganization of LTU. He results from it, with the load of SAirGroup, a contribution of cleansing of an amount of CHF 498 millions.
August 17th 2000: The report/ratio “Shield” established by McKinsey & Co. show the financial position of the group and exposes a lack of financing about CHF 3.25 to CHF 4.45 milliards.
September 21st 2000: To the board of directors the possibilities of a bringing together with Alitalia (Project “Vodka”) are presented. The board of directors decides that the project must be continued and that a participation lower than 50% is indiscutable.
November 22nd 2000: The board of directors discusses the scenarios of exit relating to the participations of airline companies, basing on the project “Chess” of the company of council Roland Berger.
December 14th 2000: The board of directors notes that it misses in SAirGroup the means of constituting the “fourth force” and that the strategy must be adaptée.
December 2000: AOM Participations S.A. carries out a capital growth of an amount of FRF 1 ' 994 million with an aim of acquiring a participation in Air Freedom and like restructuring measure. This capital growth is proportionally financed by the shareholder SAirLines (49.5% correspondent with FRF 987 million). The share of the majority shareholder Taitbout Antibes B.V assembling itself with FRF 1 ' 007 million is guaranteed by SAirGroup.
January 20th 2001: The board of directors decides to be held with the dual strategy and to give up new participations like separating from the CEO. At the same time, it approves the recapitalisation of Sabena (share of SAirGroup EURO 150 million). Eric Honegger takes consequently charges the function with it with CEO of group AD intérim.
January 25th 2001: SAirGroup and the Belgian State begins with recapitaliser Sabena with EURO 150 resp million. EURO 100 million in cash. SAirGroup is appropriate an agreement with the Belgian State concerning the increase in the participation in Sabena in 85%.
March 15th 2001: Mario A. Corti deals with the president's function and delegated council of administration.
April 2nd 2001: SAirGroup communicates a loss of the group of CHF 2 ' 855 million for the year 2000.
April 12th 2001: The board of directors is informed about the confirmation of a credit line of an amount of CHF 1 billion by Credit Suisse, Deutsche Bank and Citibank.
April 25th 2001: The general meeting is informed about the confirmation by Credit Suisse, Deutsche Bank and Citibank of a credit line assembling with CHF 1 milliard.
April 25th 2001: The general meeting approves the annual accounts as well as the group accounts of the group at December 31st, 2000 with a result of the group of CHF - 2,885 billion. Moreover, she votes in favor making carry out a special control at the request of the Confederation and cantons.
May 2001: Georges Schorderet, the financial chief of the group is relieved of his fonction.
June 27th 2001: The board of directors names Jacqalyn Fouse, chief of finances of Nestlé AG, new chief of finances of SAirGroup AG.
June 30th 2001: SAirGroup is committed taking part in a restructuring plan of Littoral Air with an entire amount of FRF 850 million. At the same time, SAirLines sells its participation of 49% in Littoral Air with the price of FRF 1 in Marc Dufour.
July 31st /1er Auût 2001: SAirGroup is appropriate its disengagement of the participations in the AOM/AirLiberté airline companies. Within the framework of the restructuring plan approved by the commercial court of Creteil, SAirGroup is committed taking part in the cleansing with an amount of FRF 1 ' 250 million like honouring the tickets already paid with AOM Minerve S.A.
August 2nd, 2001: SAirGroup and the Belgian State begins to place at the disposal of Sabena liquidities assembling to EURO 258 million, resp. 172 million. At the same time, the convention of January 25th, 2001 relating to the increase in the participation in 85% by SAirGroup is annulée.
August 30th 2001: The semi-annual report/ratio at June 30th, 2001 shows equities with height of CHF 555 million and a quota of equities of 2.55%. The semi-annual loss rises with CHF 234 million. The sale of Swissport and Nuance is announced, with an aim of reinforcing the liquidity and the share of the funds propres.
September 17th 2001: The director of the federal department of finances, Peter Siegenthaler, is informed by SAirGroup that the group could be in non-payment as from at the beginning of October 2001. The liquidity is not ensured, from the point of view of SAirGroup, that with the support of the confederation within the framework of a guarantee of CHF 1 milliard.
September 22nd 2001: The project “Swiss Air Lines” (regrouping of Swissair and Crossair) is presented to the president of the confederation and to the chief of DFF.
September 29th 2001: The board of directors is informed that the holding company could not honor its engagements any more starting from October 1st, 2001.
September 30th 2001: The board of directors decides to ask for the certificated deferment for SAirGroup, SAirLines, Flightlease and Swissair in the aim of protection the créanciers.
September 29th and 30th 2001: The concept called project “Phoenix” is worked out and adopted. This one envisages the acquisition of the Crossair actions (held by SAirGroup) by the banks UBS and CS. The group banking, composed by UBS and CS, is declared ready to acquire without delay the Crossair actions with the stock exchange course in so far as the product of the sale is used only until October 3rd for the activities of traffic aérien.
Soirée of October 1st 2001: The public is informed about the intention of sale of the Crossair actions with UBS and CS, of the acquisition of certain activities of air traffic of Swissair by Crossair as well as requests for certificated deferments planned for SAirGroup, SAirLines and Flightlease.
October 2nd 2001: In end of the afternoon, the transfer of the Crossair actions takes place. The purchase price is credited on the account with SAirLines after the stop with the activities with traffic aérien.
October 2nd 2001: As the directives on the restriction of the working time for the flying personnel cannot be respected any more, the activities of air traffic are stopped with 15:35 and the Federal council is informé.
October 4th 2001: The certificated requests for deferment for SAirGroup, SAirLines and Flightlease are déposées.

Sources: Appendix with the Press release published on http://www.liquidator-swissair.ch

The film

The film " Grounding" Die letzten Tage der Swissair, left on January 19th, 2006 in the Swiss cinemas in German version. (French Version on March 1st, 2006).

The film allots the bankruptcy of Swissair primarily to Marcel Ospel, Chairman of the board of UBS.

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