Restructuring / Turnaround Strategies Case Study

Swiss International Airlines: Revival Plan to Yield Break even?

Abstract:
Swiss International Air Lines (SWISS), the new national carrier of Switzerland was formed in 2002, through the merger of bankrupt former national carrier SwissAir and a regional carrier CrossAir. The company's several attempts to reposition itself failed. In 2004, the airline's membership in the Oneworld Alliance and a partnership agreement with British Airways went sour aggravating the company's troubles. Also, the airline is yet to break even since its inception. Hence, in early 2005, SWISS announced a restructuring plan aimed at ending its troubles and posting a net profit by 2006.

Pedagogical Objectives:

• To highlight the reasons behind the continuous losses & failure of SWISS International Airlines alliance with British and other airlines.

Keywords : Swiss International Air Lines (SWISS); Oneworld Alliance; Code-sharing agreement; British Airways; Managing in Troubled Times Case Study; Restructuring plan; Breakeven; Swiss national air carrier; Crossair; Loss-making routes; Incompetent managers and poor decisions; High cost airline and low cost airline; Structural problems and cultural clashes; Deutsche Lufthansa AG; Lufthansa-SWISS merger; Future of SWISS