SWISS REGIONAL Crossair is to help finance its purchase of 12 Avro RJ100 regional jets with a new offering of shares. Swissair has signalled its intention to take part in the issue, raising its stake in the carrier to a two-thirds holding.

Crossair commercial vice-president Thomas Hoffman says that the issue should fund around 40% of the SFr350 million ($300 million) purchase price of the aircraft.

The capital increase, expected to be in the region of SFr100-160 million, still has to be voted on by shareholders in June.

The order for 12 RJ100s, plus 12 options, won board approval on 6 April, despite a late offer from Fokker. The aircraft will be delivered between October 1995 and August 1996, taking over Swissair routes as part of a broader restructuring of 100-seat aircraft operations within the group.

The announcement came as Crossair posted 1994 operating profits of SFr15 million, almost double the previous result. Net profit of SFr16 million was down by one-third on the 1993 figure.


Source: Flight International