SWISSAIR CEASES FLIGHT OPERATIONS
Swissair Group ceased all flight operations of Swissair Tuesday, after intensive efforts to obtain financing to secure daily business and safe operations failed.
The company said it was uncertain when flight operations would resume. Swissair was making arrangements Tuesday for all aircraft abroad to be flown back to its Switzerland base.
Swissair said the action was being taken in what has traditionally been the airline's strongest month of the year in terms of revenue.
SAirGroup said Monday it had applied for a moratorium of debt enforcement for the SAirGroup, SAirLines, and Flightlease companies, and would sell its 70-percent stake in Crossair to UBS and the Credit Suisse Group.
Crossair was to assume responsibility for about two-thirds of Swissair's flight operations no later than the beginning of the winder schedules on Oct. 28.
SAirGroup said UBS and Credit Suisse would grant the SAirGroup an additional bridging credit of CHF 250 million ($154.1 million) that will allow the group to finance activities in its airline-related business units up to a point where they might be sold.
Following Tuesday's announcement, Swissair said the company was facing far more job cuts than the 2,560 announced Monday.