Swissair Gets Credit but Will Stay Grounded

Swissair Group said its fleet will stay grounded today after Europe’s seventh-largest airline ran out of cash. It received $160.4 million credit from UBS and Credit Suisse Group as part of a rescue package.

Swissair canceled 262 flights Tuesday, stranding about 19,000 passengers, it said, and will decide today whether it can resume flights Thursday.

“We try our best,” spokeswoman Christine Buhler said. “We will carefully evaluate under the aspects of security” whether flights can be resumed Thursday.

Swissair Chief Executive Mario Corti met with the carrier’s executives Tuesday night to discuss when it might resume flights. Companies that sell to Swissair, including Boeing Co., are refusing to make further deliveries, he said on Swiss state television.

“Had we received the money this morning, we could have avoided this catastrophe,” Corti said.

Swissair, which lost $1.8 billion last year, is the first among Europe’s large carriers to stop flying as the economy slows and air travel declines in the aftermath of the Sept. 11 terrorist attacks in the U.S. Airlines around the world have seen passenger traffic fall by more than 30% since the hijackings.

The banks said they will provide Swissair with the credit to continue operations until assets are sold, though the agreement won’t be effective until what the banks described as “regulatory and business requirements” are met.

UBS and Credit Suisse agreed Monday to take control of Swissair’s airline operations by buying the Swiss company’s 70% stake in Crossair, which will assume two-thirds of Swissair flights by Oct. 28.