Swiss International Airlines said it would slash its workforce and fleet by a third to avoid the fate of its collapsed predecessor.
The loss-making airline, formed last year from the ashes of doomed flag carrier Swissair, unveiled plans to slash some 3,000 jobs, cut its fleet to 74 aircraft and reduce its network by 35 per cent. It also called on creditors for more support.
The airline called for a 500 million Swiss franc ($378 million) cash injection this afternoon.
Swiss said in a statement it was targeting cost cuts of 1.6 billion Swiss francs in its new business plan and said the restructuring would put the firm in a better position in alliance talks.
The firm said at a news conference it needed another half billion francs to ensure its financial stability, a direct plea to creditors which include Credit Suisse and UBS. CS said the airline would receive no special treatment if it applied for a credit facility, while UBS declined immediate comment.
The airline was formed early last year from Swissair and regional carrier Crossair with a 2.7 billion franc cash injection from the Swiss government and the private sector.
The airline's business plan focuses on a two-pronged strategy where it offers premium service long-haul flights and a new European medium-short concept, with business-class tickets and budget tickets offered on the same flight.
However, observers remain sceptical that the latest measures will help the airline avoid the fate of Swissair as it pulls back from its original ambitions to be a fully fledged international player with a home market of just seven million.