About Swiss Air
Until its demise in 2002, Swissair was the flag carrier of Switzerland. For more than 70 years, Swissair was one of the most prudent and financially sound airline companies in the world. An overaggressive business strategy and a travel slowdown doomed the airline by the turn of the millennium.
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Founding
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Swissair was founded as Swissair-Schweizerische Luftverkehr AG in March 1931 by the merger of two Swiss carriers: Ad Astra Aero and Balair. The airline was the first European airline to operate American-built planes. Service was suspended from 1939-45 due to World War II.
Growth
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Swissair grew significantly in 1947 with the introduction of North America and Africa to its route network. Swissair became the national flag carrier in 1948 when a consortium of government-controlled entities took a stake in the airline. Because Swissair operated virtual monopolies on many of its routes and held a strong financial position, as well as the notoriety of the Swiss banking system, Swissair received the nickname "The Flying Bank."
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Hunter Strategy
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In the 1990s, Swissair began to employ its "hunter strategy," where it would acquire near-majority shares in smaller airlines to gain market share. The strategy lead the airline to acquire stakes in Sabena, Air Liberté, AOM, Air Littoral, Volare, LOT, Air Europe, TAP Portugal, Turkish Airlines, South African Airways, Portugalia and LTU.
Collapse
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The hunter strategy created a massive cash-flow problem for Swissair. Many of the airlines it had acquired did not provide significant return on capital, and synergies were not realized. The airline was also affected by the worldwide slowdown in travel from the 9/11 attacks. The airline was slowly dismantled by creditors, ceasing operations in March 2002.
Reincarnation
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Swissair's successor was its regional subsidiary Crossair. Crossair assumed all international routes in April 2002. The airline was renamed Swiss International Airlines.
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