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Crossair wins backing
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January 14, 2002: 4:11 a.m. ET
Swiss regional carrier soars, Zurich canton backs finance plan for new airline
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LONDON (CNN) - Crossair, the Swiss regional carrier, soared after voters in the canton of Zurich approved financing for a new Swiss carrier.
Zurich voters approved by a narrow majority the state's 300 million Swiss franc ($181 million) contribution to a 2.5 billion franc plan to create a new national carrier after Swissair's collapse last year.
Crossair's stock rose 7.5 percent to 57.45 Swiss francs in early Zurich trading on Monday. The Swiss government welcomed Sunday's result and Crossair called the vote a "huge vote of confidence."
A "no" vote would have forced Crossair to scale back its ambitions, reducing the size of its fleet and cutting about 1,000 jobs mainly in Zurich. Swissair, which is currently flying under court protection from creditors, is Zurich airport's biggest customer.
Swissair, which posted a record loss of 2.9 billion francs in 2000, had been on the brink of collapse as it attempted to reverse an expansionist policy that left it 17 billion francs in debt.
The September 11 terror attacks on the U.S. led to falls in passenger traffic and accelerated its demise.
Swissair is expected to halt operations by the end of March, when Crossair plans to take over Swissair's 52 planes on top of its 75 aircraft. Crossair, which employs 3,800, is expected to recruit 5,200 Swissair employees when it begin intercontinental services in April.
Crossair is expected to rename its operations after a two-day grounding of Swissair's fleet in October left thousands of passengers stranded and eroded the brand's hallmark for quality, luxury and punctuality.
The new airline received funding from the government, Switzerland's biggest bank UBS and rival Credit Sussie Group, as the Swiss nation rallied to salvage national pride. UBS and Credit Suisse invested 562 million francs for an 18.5 percent stake, while the government provided 600 million francs, representing a 20 percent stake in the new airline. 
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