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Airlines Question Swissair Rescue Plan

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Bloomberg News

British Airways, KLM Royal Dutch Airlines and other European carriers say they oppose a government-backed rescue of Swissair Group.

Switzerland’s government, biggest companies and wealthiest people agreed to put up $2.5 billion to keep Swissair flying.

Rivals say the cash puts Swissair at a competitive advantage when the entire industry is suffering as air travel falls after the Sept. 11 terrorist attacks in the U.S.

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“Aid like this could damage the whole future of the airline industry,” said Hugo Baas, a KLM spokesman.

“Airlines run correctly before the current crisis are facing a situation where they could end up weaker than those that are now being given aid.”

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