Swiss Pilots union rejects latest CLA offer – Swiss European to modify individual employment contracts

23 November 2006

The Swiss Pilots Association (SPA), the union representing the regional pilots employed by Swiss European Air Lines, has rejected the company’s offer in the present negotiations on a new Collective Labour Agreement. Despite concessions on the part of Swiss European, the SPA is not prepared to negotiate further on the offer currently tabled.

Throughout the negotiations the SPA has refused to acknowledge the realities of the market and ignored the fact that AVRO regional aircraft with an average capacity of 95 seats operate in a segment and competitive environment different from that of an Airbus of the A320 family with an average capacity of more than 160 seats.

The SPA’s insistence on salary maximisation is unacceptable. The union’s demands would result in a cost increase of approximately 35% over existing levels.

The terms of the individual employment contracts that took effect April 1, 2006, were intended to serve as transitional provisions until the new CLA came into force. Swiss European will now be unilaterally improving its terms and conditions for pilots in various areas.

Swiss European remains willing to engage in dialogue. The airline will communicate further details over the next few days.

Swiss European Air Lines Ltd. - Swiss European, which was founded on November 1, 2005, is a separate fully-owned subsidiary of Swiss International Air Lines Ltd. Swiss European operates in the regional air services segment, on behalf of its parent company. Its fleet currently consists of 24 Avro RJ 85/100 aircraft, which are flown by a corps of 260 pilots.