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Swissair: The Flying Bank Descends : What Change of Course Is Required for Gaining Altitude Again?
Type
case study
Date Issued
2012
Author(s)
Abstract
On May 1, 2000, Eric Honegger became president of the board of Swissair, the national Swiss aviation corporation. He inherited from his predecessor a corporation which had been declining throughout most of the previous decade. Traditionally, Swissair had been both a strong organization and a national icon of Switzerland. The liberalization of the European airline market, together with the rejection by the Swiss population of a connection to the European Economic Area in 1993, placed Swissair in a strategically problematic situation. As a direct consequence, a cooperation and acquisition strategy was launched: the Hunter Strategy. Through this program, Swissair aimed at creating a global alliance under Swiss leadership.
In the following years, the firm acquired significant stakes of European airlines. Growing pressure in the liberalized airline market encroached on the EBIT of most of these airlines. Swissair, once named "The Flying Bank", passed through an unsuccessful development in the second half of the 1990s. In this situation, Eric has become the new pilot of the Swiss icon. What change of strategies or policies is required to gain altitude again? He has 24 hours left until the next board meeting to clarify his thinking about the current situation.
In the following years, the firm acquired significant stakes of European airlines. Growing pressure in the liberalized airline market encroached on the EBIT of most of these airlines. Swissair, once named "The Flying Bank", passed through an unsuccessful development in the second half of the 1990s. In this situation, Eric has become the new pilot of the Swiss icon. What change of strategies or policies is required to gain altitude again? He has 24 hours left until the next board meeting to clarify his thinking about the current situation.
Language
English
Keywords
Merger and acquisition
corporate governance
systems thinking
system structure
strategic management
HSG Classification
contribution to education
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Publisher
European Case Clearing House
Subject(s)
Division(s)
Eprints ID
211999