Swissair

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* Swissair Express
* Swissair Cargo
* Swissair Ground Services
* Swissair Catering

**Swissair AG/S.A.** is the largest airline of Switzerland and formerly it's flag carrier before the role was given to Swiss International Air Lines.

It was formed from a merger between **Balair** and **Ad Astra Aero** (*To the Stars*). Swissair is one of the major international airlines and known as the "Flying Bank" due to its financial stability, causing it to be regarded as a Swiss national symbol and icon. The airline thrived into the 1980s, when it was one of the "Seven Sisters" of Western European commercial aviation. It is headquartered at Zurich Airport and in Kloten.

In 1997 the Swissair Group was renamed SAirGroup (although it was again renamed Swissair Group in 2001), with four subdivisions: SAirlines (to which Swissair, Crossair, Balair and FlightLease belonged), SAirServices, SAirLogistics and SAirRelations.

## History

### **Founding years**

On March 26, 1931, **Swissair – Schweizerische Luftverkehr AG** (German: *Swissair – Swiss Air Transport*) was founded through the fusion of the airlines Ad Astra Aero(founded in 1919) and Balair (1925). The founding fathers were Balz Zimmermann and the Swiss aviation pioneer Walter Mittelholzer. In contrast to other airlines, it did not receive support from the government. The name "Swissair" was the proposal of Dr. Alphonse Ehinger, president of the directorial board of the Balair, although "Swissair" was first deemed "un-Swiss". In the first operational year 64 people were employed including ten pilots, seven radio operators and eight mechanics. In total, their planes offered 85 seats and operation was maintained only from March to October. The route network had a length of 4,203 kilometres (2,612 mi).

### **"The flying bank"**

After the 1960s, air traffic increased quickly and allowed many airlines – many of which were quasi-monopolists on their routes – to yield high revenues. Especially Swissair profited from its excellent reputation as a quality airline and from the fact that the political neutrality of Switzerland allowed the company to fly to exotic, but lucrative destinations in Africa and in the Middle East. In geographic terms, the central position of Switzerland in Europe helped it to generate revenue from transfer passengers. By the early 1970s, Swissair was thus called "The flying bank", appealing to the large hidden assets and the huge liquidity Swissair had. Secondary, the "flying bank" was the designation for a corporate group which cared more about financial management than about flying airplanes.

With the beginning of deregulation and liberalisation, airlines felt growing financial pressure. In 1978, Moritz Suter founded a regional airline named Crossair, which put Swissair under additional stress. To counter these changes, Swissair invested their large financial reserves into takeovers and into flight-related trades like baggage handling, catering, aircraft maintenance and duty-free stores. This strategy diversified economic risks at the expense of the core business of Swissair – commercial aviation.

### **Concentration**

In regard to the furthering liberalisation of Europe's airline market, Swissair focused more on commercial aviation and extended its partnerships. As the first European airline, Swissair signed in 1989 a cooperation treaty with Delta Air Lines and Singapore Airlines to form the alliance "Global Excellence". In 1990, together with SAS, Austrian Airlines and Finnair, the "European Quality Alliance" was founded. The latter alliance was later renamed to "Qualiflyer". Because of the weak economy, the Gulf War and its aftermath, and rising operational costs, many airlines lost money in 1990 and 1991. The ongoing liberalisation enforced the competition additionally, and Swissair lost 99 million Swiss Francs in the first half year, and so Swissair was not able to pay dividends to its shareholders. In the years 1991 and 1992 Swissair had to dissolve financial reserves to cushion the losses from the commercial aviation sector.

On January 1, 1991, commercial aviation in Europe was completely liberalized and the existing capacities led to an aggressive competition among the airlines. In a national referendum on December 6, 1992, Swiss citizens rejected taking part in the European Economic Area, EEA. This referendum was a significant disservice to Swissair, an airline with a minute domestic market: Its planes were not allowed to take up passengers during intermediate landings in EEA countries (e.g., Zurich – *Frankfurt* – New York), and Swissair was not allowed to offer tickets for sections that fully lie in EEA member countries (e.g., Zurich – *Frankfurt – Paris*). *See also freedoms of the air*.

Like other airlines of smaller countries, Swissair now was under significant pressure. More and more national airlines affiliated themselves with airline alliances in order to maintain a worldwide market presence. But in order to be interesting for American alliance partners, an airline must have a critical size in terms of passenger numbers. To meet that goal, in 1993 an alliance between Swissair, KLM, SAS, and Austrian Airlines was proposed. This project bore the name "Alcazar" to create a single Central European airline. But in various countries, this project was criticised. In Switzerland itself it was thought that the huge financial assets were too precious to merge Swissair with the other airlines.

## Swissair Asia

**Swissair Asia** was formed to serve Taipei, Taiwan, within the Republic of China, while Swissair was maintaining service to the People's Republic of China. It began operating a twice-weekly service between Zurich and Taipei via Bangkok in 1995. Aircraft formerly used by Swissair Asia had the Chinese character *Seoi6* (瑞), from the Chinese translation of Switzerland, *Seoi6 Si6* (瑞士), on the tail fin instead of the cross. The airline was one of a number of airline subsidiaries flying under the "Asia" name with the purpose of flying to Taiwan, which included Japan Asia Airways (a Japan Airlines subsidiary), KLM Asia, British Asia Airways, Lufthansa Asien, Air France Asie, and Australia Asia Airlines (a Qantas subsidiary).

## Corporate affairs

Swissair's head office was on the grounds of Zurich Airport and in Kloten.

KSG, Architects G.Müller + G.Berger designed the final head office complex for the airline. It was in proximity to the main airport facilities and to area freeways. The first phase of the building included offices for 1,600 workers, computer rooms, printing rooms, and 500-seat restaurant facilities. The second phase included open plan office room, another computer laboratory, and expansions of the restaurant facilities.

In the 1930s the head office was in the Dübendorf Aerodrome in Zürich.