Swiss should be sold

Switzerland's finance minister Hans-Rudolf Merz said Swiss International Airlines should be sold just after the carrier had negotiated a new €210m credit facility

Mr Merz said the loan could be a starting point for a re-capitalisation of the airline before selling it off to Lufthansa.

His remarks have not been welcomed by Swiss executives, one of whom, Mr Ulrik Svenson, the chief financial officer, said he was “rather surprised” by them.

The credit facility for Swiss, which is 20% owned by the state, has been negotiated with an international banking syndicate.

Members include the Halifax Bank of Scotland, Barclays Capital, Credit Suisse, UBS and the Zurich Cantonal Bank.

Swiss still has to clear the deal with the syndicate with various third parties before it can be concluded.

Mr Christoph Franz, ceo of Swiss, said he was very pleased to sign the deal after “intensive negotiations.” The airline was now in a position to “implement the necessary steps to further strengthen our competitive position in the ever changing aviation market,” he said.

Swiss was created out of the demise of Swissair in 2001 but has struggled to make its way. Part of the credit facility is likely to be used to meet payments for leasing aircraft.  

It is the second time this week that a government minister has suggested that its country's ailing airline should be sold off to Lufthansa. The Italian transport minister suggested the same solution for Alitalia.

It is unlikely that Lufthansa will be flattered to be regarded as a dum