'Premium carrier' Swiss International soars to success

 
Swiss is flying to fewer destinations with fewer aircraft but is “carrying more passengers”. In tough times for the airline industry, Swiss, which 10 years ago underwent restructuring and is now part of Lufthansa Group, is enjoying a remarkable run.

Hohmeister said Swiss carried a record 15.3 million passengers last year and was steadily expanding its network, including a flight to Beijing from its hub in Zurich soon.
Hohmeister, who has been at the helm of Swiss for three years, said: “We manage with pragmatism.” Swiss is now one of the star performers of Lufthansa Group. It got rid of smaller aircraft, carried 25 per cent more passengers than in 2002 and has 7,500 employees compared with the peak of 12,000 during the time of SAir Group.
The management framework functions with three mantras – efficiency, quality and the need to be entrepreneurial. Over recent years, the airline has repositioned itself as a “premium carrier”.
The fleet is managed for optimisation, efficiency is achieved through asset and personnel management and quality is determined by customers’ expectations. Swiss has also capitalised on its partnership with Star Alliance to feed or take on passengers, Hohmeister said.
“For example, we have done away with complicated procedures. We show a video to passengers before takeoff to free the crews” to take care of customers and prepare for service.
The airline can also implement plans within a shorter time frame than in the past. “It’s an art of management,” he said.
More than half of an airline’s costs are beyond its control and include landing fees, fuel prices and exchange-rate losses.
The performance of Swiss is also tied to Zurich, which is increasingly becoming a premier European business hub. Zurich has consistently been ranked as one of the top cities in quality of life, while its airport has been named Europe’s best transfer airport on many occasions.
Swiss has separate business and first-class check-in terminals at Zurich Airport.
Swiss is also looking to acquire new-generation, fuel-efficient and environmentally friendly 150-to-200-seat aircraft that will consume 30 per cent less fuel and be 50 per cent less noisy. And starting in 2014, Bombardier C-Series jets will replace its whole regional fleet.
This year, Swiss will take delivery of its first Airbus A380 superjumbo.