Swiss Full of Confidence on China Market
Mar. 14, 2008
Swiss International Air Lines will return to the Shanghai market in May with the launch of a direct flight between the city and Zurich.
There have been no direct flights linking the Chinese mainland and Switzerland after the bankrupt Swissair ended the Shanghai and Beijing to Zurich routes in 2002.
"In the Chinese market, Shanghai is the most interesting city for us now as there is a lot of business traffic," Harry Hohmeister, chief network and distribution officer of the carrier, said in an interview with Shanghai Daily on March 13. "The city has the highest potential in the Chinese market."
The first flight for Shanghai will depart from Zurich on May 9 and Airbus 340-300 aircraft will serve the route with 228 seats. A round trip price for economy class will be 4,880 yuan (US$687).
"We are much more cost-oriented than we were two or three years ago - we have a very strict cost management, more efficient management and we have much better image," Hohmeister said.
Profitable Tip
The carrier, which was taken over by German airline Lufthansa in 2005, will also provide Chinese-style services onboard as well as Chinese-speaking staff at the airport in Zurich.
He expects the load factor will be between 80 percent and 85 percent, although at the beginning the figure will be slightly lower, and the route is estimated to be profitable in six months.
Opening a new route requires "three-digit million United States dollars," including investments in services, products and advertisements.
Beijing is also set to appear on the company's timetable next spring, under a code-share operation with Lufthansa via Munich.
Switzerland Tourism has predicted that the number of Chinese visitors heading to the country will increase fourfold to 600,000 in 10 years and bring US$280 million in revenue.
The carrier reported on March 12 that its earnings before interest and taxes amounted to 571 million Swiss francs (US$558 million) last year, rising 147.2 percent from a year earlier.
"With Lufthansa's support, the carrier is steadily creating the basis for investing in its fleet, its network and its ground service products from its own resources," said chief financial officer Marcel Klaus.