Crossair, based in Basle, was a regional airline serving around 100 scheduled and charter destinations in 30 European, Middle Eastern and North African countries. This all changed with the bankruptcy of Swissair in the fall of 2001, after which Crossair took over Swissair’s profitable routes in Europe and abroad. The combined airline was to be called SWISS, abolishing the well-known Swissair brand name. The case gives a good overview of the intricacies and changes in the airline industry. Students will discuss various value propositions, different market segments and the threat of new entrants. The case also outlines the strategy of various European airlines. Management of SWISS had to act fast: the stock price was moving downward and public interest was high-the company had received a government subsidy of around $1.7 billion. What was needed for making SWISS a success in the marketplace?
