Swissair Group unveiled a new business plan today that radically reshapes its airline operations and cuts at least 3,000 jobs from its catering unit.
More job cuts were also expected at the airline division as the debt-laden group reduces its long-haul network over the next three years in a drive to return to profitability after a euro 1.9 billion loss in 2000.
Swissair which employs 72,000 staff, announced an 8 per cent reduction in long-distance flights, leading to 1,000 job cuts, in August.
Swissair shares, which had lost more than 80 per cent of their value this year, shot higher in early trading and were up 23.4 per cent at 58 Swiss francs by 9.30 a.m. in Zurich.
Swissair said in a statement the fallout from September 11th suicide attacks by hijacked US airliners on US landmarks called for more radical measures than steps it had announced in August to shore up its finances.
The new business plan is based on setting up a new entity called Swiss Air Lines that fully integrates the operations of Swissair and regional carrier Crossair.
Although Swissair and Crossair will retain their distinctive brands, the plan will integrate Swissair and Crossair's short-haul network and reduce Swissair's long-haul network, the group said.
The new strategy will imply reducing the long-haul fleet by 25 per cent by 2004. The short-haul fleet will be adjusted to meet new schedules and projected load factors.