Swiss and Edelweiss receive billion-dollar guarantees from the federal government

The Swiss airlines Swiss and Edelweiss urgently need money because of the Corona crisis. The Federal Council estimates the liquidity needs of the two airlines at CHF 1.5 billion by the end of the year alone. The government is ready to take aviation under the army, but under strict conditions – and certainly not for nothing.

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A clever move. Switzerland vouches for the two Swiss airlines with up to CHF 1.275 billion. This enables Swiss and Edelweiss to take out loans from the banks if they run out of money.

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Helvetic doesn’t need any money

That means: At the moment there is no taxpayer money flowing to the airlines. These would only have to step in if the two airlines could not repay the loans. And even then, part of the risk would remain with the banks. The distribution is the same as for SME guarantees: 15 percent are guaranteed by the banks, the rest by the federal government.

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Easyjet Switzerland, on the other hand, goes empty-handed. Here, the parent company of the Swiss subsidiary is supposed to reach under the army. And Helvetic has foregone state aid at all. “The liquidity of Helvetic Airways is guaranteed by our owner Martin Ebner,” says CEO Tobias Pogorevc (49) to BLICK.

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The federal government secures itself

So remain Swiss and Edelweiss, who apparently struggled in tough negotiations with the Federal Council for the conditions for support, as Transport Minister Simonetta Sommaruga (59) revealed at the media conference. “Yes, we have secured ourselves,” explains Sommaruga.

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Among other things, this means that the federal government has requested location guarantees. He insists that the money from the loans must not flow abroad, i.e. to the mother Lufthansa. The loans must first be repaid from future profits. The loans also bear interest.

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Passengers and travel agencies get nothing

The airlines can live with that: “Swiss and Edelweiss are grateful for the decision of the Federal Council to provide Swiss aviation with the liquidity it needs to survive the effects of the corona crisis,” says a media release.

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The whole package as well as a further 600 million francs in credit guarantees for flight-related companies such as Swissport, Gategroup and SR Technics have yet to be approved by Parliament. Switzerland helps the aviation industry with guarantees totaling up to CHF 1.9 billion.

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On the other hand, the passengers go empty-handed, who now have to wait longer for the repayment. “This package is a disappointment for consumers and the travel industry,” says Globetrotter boss André Lüthi (59). «Today, a huge opportunity was missed to help everyone affected equally. Because travel agencies also run out of money, ”explains Lüthi, who is also on the board of the Swiss Travel Association.

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