Swissair

About Swissair

Swissair collapsed on October 2, 2001, in what became known as the grounding. The entire Swissair fleet was stranded because the company could not pay for fuel. Swissair had pursued a controversial hunter strategy of buying European airlines, saddling itself with debt. The September 11 attacks reduced air travel demand. The Swiss government provided emergency funding. Swissair was dissolved and replaced by Swiss International Air Lines, which was acquired by Lufthansa in 2005. The collapse was traumatic for Switzerland, which saw Swissair as a national symbol. Approximately 10,000 employees lost their jobs. Creditors received approximately 20 percent of claims. The failure was attributed to aggressive expansion, poor integration of acquisitions, and weak governance.