Troubled airline Swiss looks set to be taken under the wing of larger German rival Lufthansa. The pair have confirmed that they are in negotiations for a takeover. It follows intense speculation on the financial markets that Swiss would be sold off. Both companies stress that they will remain separate brands.
“As part of the business plan, Swiss will keep its independence as a firm and will keep its connection with Switzerland, as well as preserving the name Swiss,” said Swiss spokesman Jurg Dinner.
“The business plan is still subject to acceptance by the governing bodies of both firms and by the Swiss shareholders.” It is reported Lufthansa will put pressure on Swiss to implement a cost-cutting programme that would see it reduce back its fleet of aircraft and lay off up to 1,000 workers.
The German carrier also sees savings to be made in any future takeover. Swiss has been making losses ever since it rose from the ashes of Swiss Air three years ago. It is expected to keep its main hub at Zurich.