In his opening speech at Crossair’s December 6 extraordinary shareholders assembly in Basel, Switzerland, Crossair founder and outgoing chairman Moritz Suter expressed regret over the new shareholders’ decision to oust him and six other members of the board, but resigned “to ensure a smooth transition and secure a good start” for the reconstituted Crossair intercontinental airline. He reminded the assembly that Crossair, after modest beginnings with three Metroliners in 1979, has grown under his leadership into Europe’s largest regional airline and remains in excellent financial health.
Many minority shareholders proposed the reelection of Suter, but Peter Forstmoser, representing the steering committee established by the banks and the government, outvoted them–even though he was often almost alone to raise his hand against the thousands of small shareholders present.
The new shareholders confirmed that André Dosé, CEO of Crossair since last January, will remain chief executive. They also approved his business plan for Crossair’s partial takeover of the Swissair fleet and activities. Dosé explained that Crossair will pursue its regional activities as in the past, albeit with a reduced offer due to the industry-wide recession of some 15 percent throughout Europe.
Plans for the company to take over 26 short/medium-range airliners from Swissair and the same number of long-range aircraft under a plan called Phoenix Plus remain intact. Zurich will continue to serve as the hub of the new Swiss flag carrier’s intercontinental flights, but on a less exclusive basis. Depending on the evolution of passenger demand in the coming months, the number of airplanes to be taken from Swissair could shrink.
Dosé said both regional and continental/intercontinental activities would exist side by side in the revamped airline. The CEO also said all Qualiflyer bonus miles will remain valid and usable within a new alliance. The company has been in contact with Star Alliance, OneWorld and SkyTeam.
Swissair is to continue its intercontinental operations at a reduced rate under creditor protection similar to U.S. Chapter 11 until March, when the airline will be liquidated. The Swiss government has extended a second “bridging credit” in November to Swissair, enabling the airline to continue operations despite lack of cash.
Swissair Group maintains liabilities estimated at some $18 billion, only partially covered by the sale of its profitable subsidiaries, including Flight Lease, Swissport, Nuance, Atraxis and Swisscargo. While stressing that Crossair is not the legal successor of Swissair, Dosé said Crossair will take over slots owned by Swissair as needed at airports around the world.
The assembly voted to increase Crossair’s share capital from SFr328.5 million ($198 million) to SFr2.79 billion ($1.68 billion). According to preliminary information, the banks, mainly UBS and Crédit Suisse, hold 70 percent. The Swiss federal government holds 20 percent of the shares and the remainder is in the hands of local governments and airport cities, corporations and private investors.
The steering committee claims to have screened 300 candidates for board membership and has proposed the following to the new shareholders assembly, which were all elected:
• Pieter Bouw (new), CEO of KLM from 1991 through 1997, scheduled to be elected chairman by the other members of the board.
• Jacques Aigrin (new), insurance and bank executive.
• Kevin Benson (new), former Canadian airline executive.
• Philipp Geier (new), advertising and marketing specialist.
• Claudio Generali (past member), lawyer.
• Riccardo Gulotti (new), lawyer.
• André Kudelski (new), industrialist.
• Michael Pieper (past member), industrialist.
• Urs Rohner (new), former TV and marketing specialist in Germany.
• Peter Siegenthaler, civil servant representing the government.
• Peter Wagner, industrialist.
