Update 3: Swiss International Announces Job Cuts

Associated Press
Update 3: Swiss International Announces Job Cuts
01.18.2005, 06:31 AM

Switzerland's struggling national airline announced a further cost-saving package Tuesday, saying it plans to slash up to 1,000 jobs and cut 13 aircraft from its fleet.

Swiss International Air Lines also said it will downgrade its operations at airports in Geneva and Basel, with partner airlines taking over these flights, while the Swiss carrier focuses on its Zurich hub.

The airline said it hoped the moves would save an additional 300 million Swiss francs (US$254 million; euro194 million) a year beginning in 2007.

The airline's shares jumped 12 percent to 10.55 Swiss francs (US$8.92; euro6.83) when they began trading in Zurich at noon Tuesday. They had been suspended Monday ahead of a meeting of the company's board.

The company, known as Swiss, has suffered massive financial problems since it was created out of the defunct Swissair in 2002. It also has felt the bite of high oil prices and competition from low-cost carriers in Europe.
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