by Swiss International Air Lines is a subsidiary of German group Lufthansa. (Keystone / Ennio Leanza) The Swiss aviation sector, including the airlines SWISS and Edelweiss, is set to receive financial aid of almost CHF1.9 billion to help it through the liquidity crisis caused by Covid-19. Some CHF1.275 billion (.31 billion) is directly for the two airlines, while up to CHF600 million will be for other companies vital to the functioning of the sector, the government announced on Wednesdayexternal link. Parliament still needs to sign off on the package. Transport Minister Simonetta Sommaruga explained the move at a press conference in Bern, stating that aviation was part of the country’s “critical infrastructure”: over one-third of Switzerland’s exports leave by air,
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swiss Info, Business, Featured, newsletter
This could be interesting, too:
Frank Shostak writes Assumptions in Economics and in the Real World
Conor Sanderson writes The Betrayal of Free Speech: Elon Musk Buckles to Government Censorship, Again
Nachrichten Ticker - www.finanzen.ch writes Bitcoin erstmals über 80.000 US-Dollar
Nachrichten Ticker - www.finanzen.ch writes Kraken kündigt eigene Blockchain ‘Ink’ an – Neue Ära für den Krypto-Markt?
Swiss International Air Lines is a subsidiary of German group Lufthansa. (Keystone / Ennio Leanza)
The Swiss aviation sector, including the airlines SWISS and Edelweiss, is set to receive financial aid of almost CHF1.9 billion to help it through the liquidity crisis caused by Covid-19.
Some CHF1.275 billion ($1.31 billion) is directly for the two airlines, while up to CHF600 million will be for other companies vital to the functioning of the sector, the government announced on Wednesdayexternal link.
Parliament still needs to sign off on the package.
Transport Minister Simonetta Sommaruga explained the move at a press conference in Bern, stating that aviation was part of the country’s “critical infrastructure”: over one-third of Switzerland’s exports leave by air, while one-sixth of imports come by air, she said.
The aid, first mooted by Sommaruga three weeks ago, comes with strict conditions, primarily that the funds used are only to be used for Swiss infrastructure.
And while SWISS – a subsidiary of German group Lufthansa – and Edelweiss will benefit, EasyJet Switzerland will not, and must look to its British parent company to solve its liquidity issues, the government wrote.
Likewise, the Swissport and Gategroup companies, which operate services, logistics, and catering for the aviation industry, are not directly eligible, since they are internationally active and majority-owned by Asian investors.
The government said that future earnings by SWISS and Edelweiss should be prioritized to repay the aid, while dividends and other such payments will be forbidden until this is done.
It also said that it was not seeking an ownership stake in the airlines as part of the package, although it added that the loans would be secured by SWISS and Edelweiss shares.
Lufthansa, Europe’s biggest carrier by revenue, is currently in talks with the German government about a 9 billion euro ($9.77 billion) rescue plan, Reuters has reported sources as saying.
You Might Also Like
Surviving Covid-19: the Swiss economy’s strengths and weaknesses
The current pandemic will plunge the world economy into recession, at least in the first part of the year. What tools does Switzerland have to minimise the economic and social damage of this crisis? And what factors could jeopardise the prospects for an economic recovery?
Ranking finds Swiss cities less expensive
Zurich and Geneva are still among the world’s ten most expensive cities, but both have slid down the rankings since last year. The full effect of the coronavirus crisis remains to be seen. In the Economist Intelligence Unit’s annual report comparing the cost of living in cities around the world, Zurich is tied for 5th place with Paris; in 2019 it ranked 4th.
Pandemic takes a heavy toll on consumer confidence
Switzerland’s consumer confidence index plummeted to a “historically low” level in April, according to a Wednesday statement from the Secretariat for Economic Affairs (SECO). The index fell to -40 points, compared to -9 points in January, when the previous survey was conducted. That marks the lowest results since the early 1990s.
Is Venezuela’s gold a liability for Switzerland?
Venezuela is illegally mining and trading in gold, and Switzerland could be one of its clients, according to Swiss media reports. swissinfo.ch spoke to law enforcement, customs and financial authorities to find out whether they are taking action.
How Swiss drones and robots are changing farming
Remote sensing, big data, artificial intelligence and robotics are being integrated into everyday farm management. Based on information relayed by a Swiss start-up, the owner of a sugar mill in India tells local cane farmers it’s almost time to harvest their crop.
Record year for money laundering tip-offs
The number of reports of suspected money laundering jumped by about 25% in Switzerland last year. According to the Federal Money Laundering Reporting Officeexternal link, 7,705 reports were filed in 2019, compared to 6,126 the previous year.
Switzerland facing biggest economic slump since 1975
In a revised forecast in the wake of the coronavirus pandemic, federal authorities predict GDP will contract by 6.7% in 2020 and recover slowly in 2021. On Thursday, the State Secretariat for Economic Affairs (SECO) announced that it had adjusted 2020 economic forecasts to take into account sporting events affected by the pandemic.
Coronavirus exit plans for tourist industry mooted
Hopes have been raised of a re-opening of tourist facilities, including restaurants, in Switzerland in June as part of the government’s exit strategy from the coronavirus restrictions.
Tags: Business,Featured,newsletter