Swiss International Air Lines is set to announce a restructuring in the coming week, a newspaper reported on Sunday, as the company struggles to break even amid low passenger numbers and hefty costs. The plans included placing Swiss's core European operations - where passenger numbers are dwindling - in a separate company, selling part of its fleet and renegotiating wage contracts with staff, Sonntagszeitung reported.
Swiss was to hold a board meeting on Monday and would inform its personnel of the outcome on Tuesday, the Swiss newspaper said, basing the report on sources it did not directly quote. Swiss could not immediately be reached for comment.
The newspaper said the airline had declined to comment, but had confirmed a board meeting would take place on Monday.
If true, the plans could shed much-needed clarity on the future of the airline, which posted its first ever profit in the third quarter of last year since it was founded following the collapse in 2001 of national carrier Swissair.
The company, formed from the remains of Swissair and regional airline Crossair, still does not expect to break even in 2004, under pressure from no-frills competitors such as Helvetic Airways and EasyJet, analysts say.
Under the plan, the Swiss airline would sell nine aircraft and renegotiate some of the collective labour agreements it has with pilots and cabin crew.
It would enter into individual negotiations if these talks failed, Sonntagszeitung said.