EasyJet may sue on bail-out

Low-cost airline EasyJet last night said it was considering legal action over the Swiss government's plans to bail out Swissair…

Low-cost airline EasyJet last night said it was considering legal action over the Swiss government's plans to bail out Swissair.

The Swiss government on Monday agreed to help rescue the country's battered national airline industry by putting together a package of 4.24 billion Swiss francs (€2.87 billion) to resurrect much of collapsed flag carrier Swissair.

The government had pledged to play only a minority role in the total rescue package, but ended up paying nearly half of the total bill - much of it in aid that will never be repaid.

EasyJet, which operates out of Geneva and Zurich through a separate unit in Switzerland, expressed anger at the Swiss government's move and said states should not bail out failing carriers. "The Swiss government has created an uneven playing field," airline spokesman Mr Toby Nicol said, adding that EasyJet was examining all legal options.