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Turbulent Times for Swissair
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It seemed like a great idea at the time. Swissair, a midsize airline ranked seventh
in Europe, had run out of room to grow given its tiny domestic market. So it began
buying minority interests in smaller European airlines in hopes of boosting traffic.
But the plan hit major turbulence: so many of the new partners were hemorrhaging
money that Swissair reported a $1.8 billion loss on $10 billion in revenues last
year. "With a clear head, it does seem like a crazy strategy," says
Andy Chu, an airline...