What role did the Swiss government and politics play in the 2001 liquidity crisis and grounding of Swiss air and did the government and politicians act unethically together with the banks.
SWISS AIR - did the government and politicians act unethically What role did the Swiss government and politics play in the 2001 liquidity crisis and grounding of Swiss air and did the government and politicians act unethically together with the banks...
Swiss air, short for "Swiss Air Transport Company Limited," was Switzerland's national air carrier for 71 years (1931-2002). For a long time, Swiss air had a reputation as a "flying bank" and was known for its stability. Swiss air began when the Basel Airline Company Balair and Ad Astra Aero ("To the Stars") merged. he airline had important hubs at Zurich International Airport in Zurich, Switzerland, and Cointrin International Airport in Geneva.
It ended in a major fiasco, with the people of Switzerland losing a symbol of national significance as it was the Swiss airline. About 30% of the Swiss air shares belonged to the national government.
In the 1990s, Swiss air started a large expansion program known as the "Hunter Strategy", intending to grow by buying small airlines instead of joining alliances like the other companies did. Swiss air acquired in particular 49.5% of Sabena, the national Belgian airline.
Likewise, Swiss air bought two minor French airlines, Air Liberty and AOM. This strategy was too costly, and Swiss air was grounded on October 2nd, 2001 because of liquidity problems. For the first flights after ...
This explains the role of government in handling the crisis of Swiss air and thereby discussing the issue of ethics, power play and favoritism.