Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Published sources
Topics:
Swiss International Air Lines (SWISS); Oneworld Alliance; Code-sharing agreement; British Airways; 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
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https://casecent.re/p/63249
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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 breakeven since its inception. Hence, in early 2005, SWISS announced a restructuring plan aimed at ending its troubles and posting a net profit by 2006. This case offers scope for discussion on the reasons for SWISS'' continuous losses, failure of alliance with British Airways and other airlines, the pros and cons of the revival plan and the future of SWISS.
Location:
Industry:
Size:
USD3 billion (2004 sales)
Other setting(s):
2002-2005
About
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 breakeven since its inception. Hence, in early 2005, SWISS announced a restructuring plan aimed at ending its troubles and posting a net profit by 2006. This case offers scope for discussion on the reasons for SWISS'' continuous losses, failure of alliance with British Airways and other airlines, the pros and cons of the revival plan and the future of SWISS.
Settings
Location:
Industry:
Size:
USD3 billion (2004 sales)
Other setting(s):
2002-2005