SWISS Modifies Aircraft Orders

In view of the currently unfavourable economic projections for 2003, SWISS has revised its ongoing fleet renewal programme. ÊThe company is reducing its firm orders for EMBRAER 170 and EMBRAER 195 aircraft from 60 to 30, with the first deliveries rescheduled to 2004. ÊThe number of options held on the new types is also being reduced, from 100 to 20 aircraft.
SWISS is also in negotiations with Airbus. The first seven A340s will be delivered to plan. Talks aimed at rescheduling delivery of the final five A340s are currently in progress with Airbus.
SWISS is responding to the continuing crisis in the air transport industry by modifying its current fleet renewal programme. ÊAdjustments are being made to both the number of EMBRAER aircraft ordered and the timetable for their delivery. ÊAt the same time, however, SWISS has expressly confirmed its commitment to its chosen fleet concept and its partner EMBRAER; and the aircraft ordered remain a cornerstone of the company’s future business strategy.
In view of the current economic situation and the presently far-from-favourable business projections, SWISS and EMBRAER have agreed to modify the carrier’s order with the manufacturer from 60 to 30 aircraft (15 EMBRAER 170s and 15 EMBRAER 195s). ÊThe number of options is also being reduced, from 100 to 20 aircraft.
Delivery of the first aircraft has also been rescheduled to one year after August 2003, the original handover date. The simulator for the 70-seat EMBRAER 170 will, however, be installed in Basel this summer according to plan, enabling SWISS Aviation Training to offer corresponding training services to its customers. ÊDelivery of the 108-seat EMBRAER 195 remains unchanged, i.e. from 2006 onwards.

These changes will reduce SWISS’s capital spending by close to CHF 1 billion. ÊThey will also lower the company’s expenditure for 2003 by a good CHF 170 million. ÊA large part of the advance payments already effected on the new fleet will be refunded, and the expenditure involved in introducing a new aircraft type will not be incurred until 2004. ÊÊÊÊ
During 2003 a total of seven A340-300’s will be delivered to SWISS. The first delivery will be in June 2003. Airbus is providing support with the financing of these aircraft. For certain of the outstanding deliveries in 2004, SWISS started discussions with Airbus in order to obtain additional flexibility on the delivery dates of these aircrafts.