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HSE_CASE_NR: 103-044 | status: active
Authors: Santalainen, Timo
Baliga, Ram
Material: 3 pages
Notes: Part B follows Swissair A and it has a sequence in Part C and D.
Publication year: 2003  Language: eng
Keywords: airline industry; alliances; aviation; competition; deregulation; excess capacity; restructuring; subsidies
Abstract: Philippe Bruggisser took over as the CEO of Swissair in 1996. Fragmentation, excess capacity, declining government interest in subsidizing loss making airlines, and EU initiated deregulation had made life difficult for airlines such as Swissair that had a small home market. Additionally, the benefits of deregulation that would accrue to airlines of countries that were members of the EU were currently unavailable to Swissair as Switzerland was not a member of the European Union. As an outsider, Swissair had to watch as European carriers added flights and entered alliances even as their governments were reluctant to renegotiate individual aviation treaties with Switzerland.

Swissair (B) details the consequences of Bruggisser’s strategic decisions, strategic decisions made by his interim successor and the appointment of Mario Corti as the CEO. The basic question posed in the case is what actions should Mario take to turnaround SAirGroup.

Related teaching note:
Notes: 7 pages. Teaching note for Swissair (A), (B), (C),(D).
Publication year: 2003  Language: eng

Case is available from ecch case collection:
» ecch case info (20940)
[reference nr 303-187-1]