It was more than 20 years ago, but now 29 former Swissair managers have to put 2,7 million Swiss francs on the table. Actually, liquidator Karl Wüthrich asked for a lot more money, but an agreement has now been reached on this settlement, which is still subject to the approval of the creditors.

The SAirGroup, the brand identity at the time, got so badly wrong with the “Hunter strategy” at the end of the 1990s and the beginning of the 2000s that the group ultimately collapsed financially. They wanted to create an aviation alliance and thereby bind the carriers to them by means of equity investments. However, one bought from heavily ailing airlines such as Sabena, LTU and Austrian Airlines. The Austrians were able to break free from Swissair in time before the collapse and so the fate of most of the holdings was spared: They were also drawn into bankruptcy in the Strudel. Many former SAirGroup subsidiary companies such as Swissport, SR Technics, Gategourmet, Nuance and Swissotel still exist today, albeit under new owners.

The terrorist attacks of September 11, 2001 aggravated the situation at SAirGroup, which is now again operating as the “Swissair Group”, so that the grounding followed shortly afterwards. Since then, serious allegations have been made against the former managers, but in most cases the courts have ruled in favor of the executives. This also includes financial claims made by the liquidator.

Now a total of 29 former managers, including the last CEO Mario Corti and a predecessor Philippe Bruggisser, agreed to a settlement. In return for payment of a total of 2,7 million Swiss francs, Würhrich will forego further litigation and any liability claims will be settled “without acknowledging any legal obligation”.

According to the circular from the liquidator to the creditors, money collected in this way is to be distributed among the following companies or their bankruptcy assets as follows:

• SAirGroup: 1,6 million Swiss francs
• SAirLines: 150.000 Swiss Francs
• Swissair: 500.000 Swiss francs
• Flight lease: 500.000 Swiss francs

According to the liquidator's announcement, most of the Somme will go to the former parent company, as it has borne the lion's share of the costs for the legal process but also for the settlement of claims. Wüthrich also writes that bringing in further compensation payments from former managers is very unlikely. The chances of this would be very slim.