What is happening to Swissair now?
Swissair was forced to suspend all flights on Tuesday morning after several of its planes were impounded at European airports and fuel suppliers refused to refuel planes at the airline’s Zurich hub. A BP spokesman said all oil companies were asking Swissair to pre-pay for any fuel supplies. Planes already en route continued to their destinations. The actions came one day after Swissair said it had agreed a rescue package with two Swiss banks that would see the flight operations folded into Swissair subsidiary Crossair while other units, including catering and ground services, were filing for bankruptcy. Under the plans, UBS and Credit Suisse, the two banks, will own 70% of Crossair. Despite the “rescue package”, businesses remained wary over whether Swissair would be able to pay its bills. Are Swissair’s problems related to the 11 September attacks on the US? Not directly. Swissair was already in very deep trouble because of a disastrous expansion strategy involving investments in a la
