The demise of Swiss national carrier Swissair has pushed one of Europe’s largest regional airlines to a critical juncture in its development. Crossair–now fully independent of the bankrupt flag carrier–must chart a new course over unfamiliar territory, leaving investors optimistic over the potential for growth but wary of untold pitfalls.
Just before Swissair declared bankruptcy on October 1, Swiss banks Crédit Suisse and UBS bought the group’s 70-percent stake in Crossair to keep the regional airline out of the liquidation process. Some three weeks later, on October 22, the Swiss government announced plans to buy 20 percent of Crossair’s share capital, which increased by $1.66 billion to $1.85 billion. Local governments in Zurich, Geneva and Basel have pledged to contribute another 18 percent, while corporate, institutional and private investors now plan to take the remaining 62 percent.
