Swiss International Air Lines AG, colloquially known as SWISS, is the flag carrier of Switzerland and a subsidiary of the Lufthansa Group, as well as a Star Alliance member. It operates scheduled services in Europe and to North America, South America, Africa and Asia. Zurich Airport serves as its sole hub and Geneva Airport as a focus city.
Its headquarters are at EuroAirport Basel Mulhouse Freiburg near Basel, Switzerland, and an office at Zurich Airport in Kloten, Switzerland. The company's registered office is in Basel.
The airline was formed following the bankruptcy in 2002 of Swissair, Switzerland's then-flag carrier. The new airline was built around what had been Swissair's regional subsidiary, Crossair. Swiss retains Crossair's IATA code LX (Swissair's code was SR). It assumed Swissair's old ICAO code of SWR (Crossair's was CRX), to maintain international traffic rights.
On 18 November 2020, it was announced that Dieter Vranckx would assume the position of CEO as of 1 January 2021. Vranckx has 20 years of experience within the Lufthansa Group and had been CEO of Lufthansa Group member Brussels Airlines since the start of 2020.
History
Beginnings
Swiss was formed after the 2002 bankruptcy of Swissair, Switzerland's former flag carrier. Forty percent of Crossair's income came from Swissair. The new airline lost US$1.6 billion from 2002 to 2005. Swissair's biggest creditors, Credit Suisse and UBS, sold part of Swissair's assets to Crossair, which had been Swissair's regional counterpart. At the time, both Swissair and Crossair were part of the same holding company, SAirGroup. Crossair later changed its name to Swiss International Air Lines, and the new national airline officially started operations on 31 March 2002. The airline was initially owned by institutional investors (61.3%), the Swiss Confederation (20.3%), cantons and communities (12.2%), and others (6.2%). Swiss also owns subsidiaries Swiss Sun (100%) and Crossair Europe (99.9%). It has a total of 7,383 employees.
According to Marcel Biedermann, the managing director of intercontinental markets for Swiss, there were three possibilities: stay independent as a niche carrier, shrink to an unrecognisable level, or attach to another airline group. The last choice was taken. Swiss talked to Air France–KLM, British Airways, and Lufthansa. However, Swiss was tied up with debt and an uncertain future and seemed to be an unattractive investment. After merging with KLM, Air France said they were too busy to deal with the Swiss joining them. British Airways was open, and Oneworld partners thought Zurich Airport would be a viable alternative hub for London Heathrow.
After almost a year of disputes, Swiss was finally accepted into the Oneworld airline alliance, after having been blocked by British Airways, which competes with Swiss on many long-haul routes. On 3 June 2004, Swiss announced its decision not to join Oneworld because they did not want to integrate their current frequent flyer program into British Airways' Executive Club. Furthermore, Swiss thought the relationship was one-sided, where British Airways sapped out the benefits of the airline, but they would get no return.
Recovery
The airline annually halved its losses, and in 2006 recorded a net profit of $220 million. The net profit for 2007 was $570 million. Biedermann stated in the March 2008 edition of Airways, that "this was the beginning of getting our house back in order." He said that help was needed and looked up to Lufthansa as a comparison, so their coming together was natural, even with their differences. Even with the smaller network, Swiss carries the same number of passengers as they did in 2002.
On 22 March 2005, Lufthansa Group confirmed its plan to take over Swiss, starting with a minority stake (11%) in a new company set up to hold Swiss shares called Air Trust. Swiss operations were gradually integrated with Lufthansa's from late 2005, and the takeover was completed on 1 July 2007. Swiss joined Star Alliance and became a member of Lufthansa's Miles and More frequent flyer program on 1 April 2006.
The airline set up a regional airline subsidiary called Swiss European Air Lines. The carrier had its own air operator's certificate. Two divisions -–Swiss Aviation Training and Swiss WorldCargo (using the belly capacity of passenger planes) – are also owned by Swiss. Swiss European Air Lines (later renamed Swiss Global Air Lines) has since ceased operations and merged with its parent, Swiss.