Lufthansa to buy Swiss?
The German flag-carrier Lufthansa is reportedly in talks to buy Swiss, Switzerland’s loss-making airline. According to the Daily Telegraph, the sale could be worth no more than around £40 million, with Swiss still running at a loss after being created following the collapse of Swissair in 2002. The Telegraph reports that, for the sale to go ahead, any deal would have to maintain Swiss’s international traffic rights and allow it to maintain its own brand. The newspaper published the following statement: “Both companies jointly developed the business model, which it subject to the approval of the Lufthansa supervisory board, the relevant Swiss corporate bodies as well as the Swiss core shareholders.” Lufthansa is reportedly demanding job cuts as part of the deal; as many as 1,000 positions could be at stake; the Swiss pilot’s union has threatened to strike if the deal goes ahead. Report by Tim Gillett, News From Abroad
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