SWISS To Wet Lease Up To 6 airBaltic Airbus A220s This Winter

SWISS has agreed to wet lease up to six Airbus A220-300 aircraft from airBaltic, allowing the Lufthansa Group company to stabilize its flight schedules and provide more reliability for its customer’s travel plans.

A wet lease agreement

On Friday, SWISS announced it had agreed on a collaboration with Latvian carrier airBaltic for the coming winter timetable period. The partnership includes wet leasing up to six Airbus A220-300 aircraft on SWISS’ behalf, stabilizing its schedule, providing more reliability, and easing the present pressures on the cabin personnel.

airBaltic will operate flights throughout the SWISS European route network, which had previously been planned for SWISS’ own operation. Given this is a wet lease agreement, airBaltic will also provide the crew for each flight. The A220-300 has a capacity for up to 145 passengers. Travelers taking a SWISS flight operated by airBaltic can essentially expect the usual SWISS service product. “airBaltic is an ideal wet lease partner for us,” says SWISS Chief Commercial Officer (CCO) Tamur Goudarzi Pour. “Like us, they operate the highly advanced, innovative, and eco-friendly Airbus A220-300. And they have already performed flights for other airlines of the Lufthansa Group this summer with impressive reliability.”

The new collaboration with the Latvian airline is a complement to SWISS’ existing partnership with Helvetic Airways, which also wet leases six aircraft all year round. Furthermore, the SWISS-Helvetic partnership has enough flexibility to add more planes in the future to cover peaks in demand. Helvetic Airways operates 604 weekly flights on behalf of SWISS, adding nearly 70,500 seats. That’s 25% of all SWISS flights in August 2022.

Cabin and pilots negotiations

SWISS negotiated with airBaltic the wet leasing of six aircraft to help the company relieve the present pressures on its cabin crew and pilots. The airline is currently in the midst of tough negotiations with the cabin crew and pilot unions. Earlier this week, it was reported that the SWISS crew union, Aeropers, was seeking new amendments to a proposed collective agreement. Their plan is to ensure the stability of flight operations over the summer and autumn seasons, and the cabin crew members have rejected over 80% of the latest agreement. The previous collective agreement between SWISS and the pilots expired in March and both parties have been in a painful negotiating process; Aeropers has even warned that if SWISS does not offer adequate solutions, then the pilots will show the management how dissatisfied they are.

SWISS first-half operating profit

In the first six months of 2022, SWISS returned to profit and posted an operating result of 67 million CHF (US$69.6 million) for the period. The airline benefited in particular from strong booking demand and the improved profitability provided by its completed restructuring activities. SWISS carried 5.3 million passengers in the first six months of 2022, five times more than in the same period last year. This increase was also reflected in the revenues, which totaled 1.8 billion CHF (US$1.87 billion). Finally, despite the likelihood of an economic slowdown, SWISS is also confident of returning to profit in its 2022 full-year results.

Conclusion:

SWISS has taken a strategic step by entering into a wet lease agreement with airBaltic, solidifying its winter flight schedule and enhancing customer reliability. This collaboration allows SWISS to address ongoing challenges, especially regarding cabin crew and pilot negotiations. By deploying up to six Airbus A220-300 aircraft from airBaltic, SWISS aims to maintain a stable and seamless travel experience for its passengers. This move complements their partnership with Helvetic Airways and showcases SWISS's commitment to adapt and grow in a dynamic aviation landscape.

FAQ (Frequently Asked Questions):

What is a wet lease agreement in aviation?

A wet lease agreement is a contractual arrangement in the aviation industry where one airline (the lessor) provides the aircraft and the crew, maintenance, and insurance to another airline (the lessee). AirBaltic is the lessor in this case, providing both aircraft and crew to SWISS as part of the agreement.

How will this wet lease agreement benefit SWISS passengers?

SWISS passengers can expect the same service and product quality level when flying on air Baltic-operated flights. The collaboration ensures that SWISS can maintain its European route network during winter, providing more excellent reliability and stability for travellers.

Why did SWISS enter into this partnership with airBaltic?

SWISS partnered with airBaltic to address current pressures on its cabin crew and pilots. This move helps SWISS maintain its flight operations and passenger services while negotiating with its unions and ensuring operational stability.

What is SWISS's financial performance in 2022 so far?

In the first half of 2022, SWISS returned to profitability, posting an operating profit of 67 million CHF (US$69.6 million). This improvement was attributed to solid booking demand and successful restructuring efforts. SWISS carried 5.3 million passengers during this period, significantly more than last year.

How does this partnership with airBaltic fit into SWISS's overall strategy?

The collaboration with airBaltic is part of SWISS's strategy to maintain its flight schedule and service quality, even during challenging times. It complements its existing partnership with Helvetic Airways, offering flexibility to adapt to changing demand and ensuring a stable travel experience for customers. Despite potential economic headwinds, SWISS aims to continue its profitability in the full-year 2022 results.