Editing Swissair (section)

=== Factors behind collapse ===
Like other airlines that flew to the United States, Swissair's operations and [[Profit (accounting)|profitability]] were disrupted in the wake of the [[September 11 attacks|terror attacks against the United States]].<ref>{{cite news | author=Staff writers | title=Thousands stranded in airline crisis | url=http://news.bbc.co.uk/1/hi/world/europe/1577609.stm | work=BBC News | date=3 October 2001 | access-date=2009-03-19}}</ref>  Several politicians were among those included on Swissair's [[Board of directors]], and commentators have pointed to potential [[conflict of interest|conflicts of interest]] as fundamental to the demise of Swissair. Media have also suggested that the directorial board failed to oversee the actions of [[Philippe Bruggisser]] ([[Chief Operating Officer]] since 1996) and [[Eric Honegger]] (board member since 1993 and later board president) and that they left behind a convoluted corporate structure and financial commitments—amongst others, a further purchase of 35.5 per cent of Sabena's stock—which would only come to light when [[Mario Corti (manager)|Mario Corti]] was trying to save the airline.<ref>{{cite news|last=Olson|first=Elizabeth|title=Brussels sues Swissair in move to aid Sabena|url=https://www.nytimes.com/2001/07/04/business/brussels-sues-swissair-in-move-to-aid-sabena.html|access-date=27 September 2012|newspaper=The New York Times|date=4 July 2001}}</ref>

The [[judiciary]] is continuing to examine why Swissair acquired [[counsel]]ling that supported the Hunter Strategy and why Swissair continued to make certain payments despite nearing [[insolvency]]. Questions have also been raised about the [[federal aid]] given to Swissair and the politicians involved. The highly competitive nature of the market during the business's final years also precipitated its demise: like its Belgian counterpart [[Sabena]], Swissair fell victim to the rise of competition from [[low-cost airline|budget airlines]] on their short and medium-haul routes, such as [[Ryanair]] and [[EasyJet]].<ref>{{cite book |title=Business Studies | edition=Third |first=Dave | last=Hall |author2=Jones, Rob |author3=Raffo, Carlo | year=2004 | publisher=Causeway Press |location=Ormskirk | isbn=1-902796-83-7 | page=196 }}</ref>

Imogen Foulkes from the [[BBC]] said regarding the collapse: "Something did die in Switzerland that day: not just an airline but an image the Swiss had of themselves and, more importantly, of their business leaders"<ref name=":0" /> and "The Swiss financial community's reputation for good business sense was already seriously damaged by the Swissair disaster."<ref name=":0">{{Cite news |last=Foulkes |first=Imogen |date=2007-03-08 |title=Swiss shame over airline disgrace lingers |url=http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/6428019.stm |access-date=2024-04-03 |work=From Our Own Correspondent |publisher=[[BBC]] |language=en-GB}}</ref>

Because civil cases are still going on, some of the reasons why SAirGroup failed are still being looked into by the courts and have not been made clear legally. The following causes are widely recognised as crucial factors:

*The management underestimated the dangers and difficulties in the acquisitions and investments of partially ailing airlines. Therefore, the Belgian airline [[Sabena]] and German airline [[LTU International|LTU]] were acquired despite significant capital requirements. Also, investments in France ([[AOM French Airlines|AOM]], [[Air Liberté]], and [[Air Littoral]]) required much capital restructuring. Sabena ultimately ceased operations due to the aforementioned financial crisis.
*The indebtedness created by an uncompromising adaptation to the realities of "Hunter strategy" implementation and the lack of monitoring by the Board.
*The 2001 terrorist attacks in the US led to a sharp slump in demand and, consequently to an extreme tightening of liquidity.
*An orderly transfer of operations to [[Crossair]] was denied because of the failure to reach a bridging loan and the delayed transfer of the share purchase price.
*Increasing competition from low-cost carriers such as [[Ryanair]] and [[EasyJet]] in the short-to-medium-haul markets from Europe caused Swissair to lose passenger revenues.
*A full merger with Sabena was impossible due to Swissair's financial crisis.
*An MD-11, operating [[Swissair Flight 111|flight 111]], crashed in 1998, killing everyone on board. This event led to further troubles for the airline with negative publicity, a significant lawsuit, more financial problems and lowered customer confidence.