Air Transport World

Swiss to spin off Regional operation. (Regional News).(Swiss International Air lines)(Swiss Express)(Brief Article)

Swiss International Air Lines said it intends to spin off its Regional airline operations into a standalone subsidiary with a separate board of directors and executive management team.

At the same time, Swiss said further labor savings at the mainline are "essential" and called for a 10% reduction in 2003 annual salary costs, currently budgeted at Sfrl billion ($740 million). To set an example, top management voluntarily took a 14% pay cur effective immediately.

The new airline, to be called Swiss Express, is expected to commence operations in the fall and is being created "in response to new market conditions to offer low-cost air connections, especially within Europe. …

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