Swiss International to Cut 3,000 Jobs

Swiss International Air Lines Ltd. plans to cut 3,000 jobs as the national carrier that emerged from the remains of insolvent Swissair Group struggles to survive.

The airline will eliminate a third of its workforce and ground 34 out of 109 aircraft, Chief Executive Andre Dose said at a briefing in Basel, Switzerland. Swiss International may sell shares and bonds to raise $376 million, more than its market value of $329.2 million.

Swiss International may need to find a partner to stay in business after losses of at least $887.2 million since the start of last year, analysts said.

Swiss International expects that the job and plane cuts will reduce costs by $1.2 billion. Its personnel expenses were equivalent to 26% of sales in the first three months of the year.