Swissair111.org    forums.swissair111.org    Discussion  Hop To Forum Categories  SR111 Messages    "Bankers were screwed over so badly after the collapse of swissair."

Moderators: BF, Mark Fetherolf
Go
New
Find
Notify
Tools
Reply
  
"Bankers were screwed over so badly after the collapse of swissair."
 Login/Join
 
posted
SWISS remains a very sore topic for many financiers

By Anthony O'Connor

Many industry eyes will no doubt be focusing on SWISS - the carrier formerly
known as Swissair - when it officially launches this Sunday at Zurich
Airport. But some financiers are predicting the celebrations are going to be
overshadowed by a number of banks and leasing companies taking their final
opportunity to repossess aircraft left over from the bankrupt Swissair.

More than 15 aircraft are expected to be repossessed this weekend. Over 20
aircraft operated by Swissair became surplus-to-requirement following the
Swiss Federal government-backed reorganisation of regional carrier Crossair
as the replacement Swiss airline.

The export credit agencies of France, Germany and the UK - Coface, Hermes
and the ECGD - are also examining aircraft deals they covered.

The troublesome times faced by many airfinanciers in the wake of Swissair's
collapse last year were further aggravated for some on 26 March when SWISS
announced it will be replacing some of its long-haul fleet. Some 13 MD-11
planes formed part of the package of Swissair aircraft that would form the
new SWISS fleet. They are now being replaced by 13 new A340-300 planes,
direct from Airbus Industrie.

SWISS CEO Andre Dose said the MD-11 does not have a future in the new
airline: "Continuation with the MD-11 fleet was rejected, despite the
current very favourable leasing rates, because of the higher operating costs
and the over-proportional technical costs attributable to the aircraft's
age." The new carrier said it had talked with Boeing about leasing the
A340-300s the manufacturer had taken back from Singapore Airlines in
exchange for B-777s. These talks, and talks to buy new B-777-200ERs came to
nothing.

Industry sources said Airbus Industrie has been offering carriers very
attractive commercial deals that Boeing cannot undercut to win new aircraft
orders. The SWISS A340-300s deliver from June next year through July 2004.

Reaction to the new SWISS order has been very frosty. Bankers and financiers
involved in financing Swissair's planes and contacted by Jane's Transport
Finance said they would not readily finance the new airline's aircraft. "I
think banks would have to think very carefully before they got involved with
the new airline," said a London-based banker. "Bankers were screwed over so
badly after the collapse of Swissair."

www.janes.com/business/news/jtf/jtf020328_1_n.shtml
 
Posts: 2580 | Location: USA | Registered: Sun April 07 2002Reply With QuoteReport This Post
  Powered by Social Strata  
 

Swissair111.org    forums.swissair111.org    Discussion  Hop To Forum Categories  SR111 Messages    "Bankers were screwed over so badly after the collapse of swissair."

© YourCopy 2002