The city of Zurich has rejected a plan to provide SFr50 million ($30 million) credit to Swiss, the airline successor to Crossair and Swissair. The referendum result for financing under a SFr4 billion-plus rescue package mounted after Swissair was grounded comes around two months after the voters of Zurich canton approved a much larger SFr300 million equity injection. This first capital increase came into effect on 11 April. The carrier says the decision is a "disappointment", but "the recapitalisation of Swiss is not in danger", adding that the faster than expected rise in load factors has lifted the company's finances. Meanwhile, Berne-based carrier Swisswings suspended flight operations on 8 April after it failed to secure new capital and stem losses.
Source: Flight International
