The airline Swiss announced on Thursday that the fleet should be reduced by around 2019 percent compared to 19. The carrier expects the volume of passengers to remain reduced by around 20 percent in the medium term.

Taking into account the job cuts initiated since 2020 through voluntary measures and natural fluctuation, this would result in a total reduction of around 1.700 full-time positions, which would correspond to a minus of over 20 percent. Up to 780 employees on the ground and among flight personnel would potentially be affected by redundancies.

The Lufthansa subsidiary has initiated a consultation process in order to work with employees and social partners to find solutions that are as socially acceptable as possible. All federal conditions in connection with the guaranteed bank loan would be met despite the emerging restructuring measures.

"It became increasingly clear that the market would change structurally and that, despite early measures on our part, a restructuring of SWISS seems to be unavoidable," said Swiss boss Dieter Vranckx. “With our new strategic program reaCH, we are aligning ourselves to the changed market situation. This includes, among other things, the resizing and transformation, which should save around CHF 500 million in the long term. The aim is to repay the bank loan promptly and to ensure our competitiveness and investment ability over the long term ”.

Fleet is to be reduced

The fleet of 90 aircraft owned by Helvetic Airways and those operating on behalf of Swiss (so-called wet lease) will be adjusted to the decline in demand and is expected to be reduced by 15 percent compared to 2019. On the short- and medium-haul routes, the phasing out of aircraft from the Airbus A320 family and the reduction in the wet lease segment would reduce the number of aircraft from 69 to 59. In the long-haul segment, the Lufthansa subsidiary intends to reduce the fleet from 31 to 26 aircraft. Five aircraft from the Airbus family would be taken out of service.

As a result of the declining demand, the frequencies on both short and medium-haul and long-haul routes will probably have to be reduced compared to 2019. In addition, individual intercontinental direct connections would no longer be possible for the time being. The location policy requirement demanded by the federal government in connection with the guaranteed bank loan to develop Swiss flights proportionally to those of Lufthansa Group airlines would be complied with.

Up to 780 employees could be affected

By the end of 2021, SWISS will have cut more than 1.000 full-time positions through natural fluctuation and voluntary measures, but further staff cuts are unlikely to be avoided. As part of the intended redimensioning, up to 780 employees could be affected, including around 200 in the field of ground staff, 60 in technology, 400 in cabin staff and 120 in the cockpit.

Any reduction in this total of around 1.700 full-time positions (FTE) would correspond to a decrease of over 20 percent compared to 2019. Due to the structural change in the market, this measure would have to be taken regardless of any extension of short-time work.

“I deeply regret that after many years of success with a great team, we have to consider such a painful step. Unfortunately, the situation remains extremely demanding and continues to require high cost discipline and efficiency. However, we are convinced that the planned restructuring would bring us out of this crisis stronger than before, in order to be successful again in the New Normal, ”said Vranckx.

In the consultation process that has now been initiated, we are looking for further solutions together with the social partners, employees and their representatives in order to keep the number of potential redundancies as low as possible and to make the planned reduction in a socially acceptable manner. This would also meet the political requirement in connection with the bank loan. Social plans already exist for all staff - except for the cockpit staff. Since the collective employment contract valid today for the cockpit personnel includes protection against dismissal, a solution must be found at the negotiating table with the professional association Aeropers due to the structural surplus of personnel.