Is Swiss Losing Its Swiss Soul?

Here's what it's all about

• Some Swiss flight crews are refusing to make announcements on behalf of Lufthansa. This has sparked a debate about the Swiss airline's independence.
• Today, the airline is in fact more closely integrated into the Lufthansa Group than ever before—from management to brand identity.
• At the same time, Swiss benefits from its affiliation with the group in terms of its fleet, route network, and procurement.

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It's just one sentence. Or, to be more precise: a missing sentence. And yet it has sparked a discussion that extends far beyond the cabin of an airplane.

Swiss flight crews are actually supposed to mention in their announcements starting this year that the airline is a member of the Lufthansa Group. However, several cabin crews are apparently deliberately omitting this information, as three independent sources told “NZZ am Sonntag” confirmed.

According to this, many employees identify with the German parent company only to a limited extent. Nearly twenty years after the takeover by Lufthansa, the question arises: How much of Switzerland is actually left in Swiss today?

How It All Began

When Lufthansa acquired Swiss in 2005, many saw it as a lifeline for the young airline. Swiss had emerged from the ruins of Swissair just a few years earlier and was posting heavy losses. Wolfgang Mayrhuber, Lufthansa’s CEO at the time, therefore made a promise that still resonates today: “Swiss will remain Swiss—even with Lufthansa.”

And indeed, Frankfurt initially seemed to be keeping that promise. Swiss remained independent, making its own decisions—for the most part—regarding its products, services, and brand image. Lufthansa was the owner—but its presence was barely visible in Swiss’s brand identity.

Over the years, however, the picture began to change gradually. A year ago, the "Handelsblatt" reported on an internal strategy project called "Matrix Next Level." According to the report, key functions such as the route network, sales, and loyalty programs are to be managed directly from Lufthansa headquarters in the future. The premium airlines—including Swiss—will have to relinquish these responsibilities and will likely be able to focus solely on the onboard experience going forward.

More and More Power in Frankfurt

"Each of us in Europe is too small on our own. Only together can we be number one in Europe," said Lufthansa CEO Carsten Spohr recently in an interview with “Blick”. He sees centralization less as a loss of autonomy and more as a necessity in an industry where size is becoming increasingly important.

Chairman of the Executive Board of the Lufthansa Group: Carsten Spohr.

Keystone

At the same time, Spohr emphasizes: “Swiss continues to make its own decisions.” However: “Ultimately, though, it does so as part of the Lufthansa Group.”

This greater integration is also reflected in the Group’s leadership. Dieter Vranckx, an active member of Lufthansa’s Executive Board, now chairs the Swiss Board of Directors. His predecessor, Reto Francioni, was an independent figure from outside the Group’s operations.

Visible from the outside as well

This closer connection has long been evident to customers as well: New Swiss aircraft now prominently display the words “Member of Lufthansa Group.” The lounges also bear this designation. From Lufthansa’s perspective, this is part of an umbrella brand strategy: the goal is for the group’s various airlines—including Edelweiss, Austrian Airlines, Brussels Airlines, and ITA Airways—to be perceived more strongly as a cohesive family.

Virtually every major airline group operates according to this principle today. Air France-KLM consolidates numerous corporate functions, as does the International Airlines Group, which includes British Airways, Iberia, and Aer Lingus.

In an industry with low margins, scale often determines economic success. Those who place joint orders for aircraft in larger quantities secure better terms. Those who jointly hedge their kerosene purchases reduce risks. Developing software just once saves costs. In the aviation industry in particular, such economies of scale are a decisive competitive advantage.

When "Swissness" Meets Corporate Logic

However, especially here in Switzerland, economic decisions are counterbalanced by the importance of the brand: While Lufthansa is primarily perceived in Germany as a means of transportation, many Swiss people associate much more with Swiss. The red tail with the white cross conveys an image of Switzerland to the world—with Swiss products on board, multilingual crews, and regional menus.

Changes are met with particular sensitivity here. When Swiss introduced its new “Economy Basic” fare in April and no longer automatically included large carry-on luggage—that is, the trolley—this reminded many observers of Lufthansa, which had already taken this step previously. The outcry was huge.

The "Economy Basic" fare now only includes luggage that fits under the seat.

Sven Hoppe/dpa

In addition, there are operational changes that do not take place in the public eye. Some maintenance work is now also carried out outside of Switzerland. Such measures are driven by business logic: Within a corporate group, it is easier to redeploy personnel and resources than it is for an independent airline.

Make a Profit—and Still Save Money

The corporate headquarters’ influence is also growing economically. Despite high profits, Swiss was not spared by the most recent cost-cutting programs within the group.

Lufthansa CEO Spohr explained these measures to *Blick*, citing efficiency gains and new opportunities brought about by digitalization and artificial intelligence. “At the Lufthansa Group, we’re cutting administrative staff by 20 percent—at Swiss, it’s only 10 percent because Swiss is already quite lean.”

Swiss has been posting high profits for years. In 2025, it generated an operating profit of 502 million Swiss francs and was by far the most profitable airline within the entire Lufthansa Group. And yet it still has to cut costs. The answer lies in the logic of a large corporation: what matters is not just the performance of a single subsidiary, but the competitiveness of the entire group.

Why Swiss Benefits from Lufthansa

But anyone who describes this development merely as a creeping “Germanization” is missing the point. In fact, Swiss also benefits significantly from its affiliation with Lufthansa.

This is particularly evident in the fleet. New long-haul aircraft are in short supply worldwide. Airbus and Boeing have long waiting lists. As part of one of Europe’s largest airline groups, Swiss has access to aircraft that it would likely receive much later if it were an independent airline. The introduction of the Airbus A350 last fall is one example of this.

Swiss's new Airbus A350 was greeted with a water arch by the airport fire department at Zurich Airport on October 9, 2025, after its flight from Toulouse.

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The route network, too, would be virtually unthinkable without the company. Zurich is a comparatively small domestic market. Many long-haul routes can only be operated profitably because passengers from across the entire Lufthansa network connect through Zurich. About 30 percent of travelers at the Zurich hub are transfer passengers. Without these additional passengers, numerous direct flights to North America, Asia, or Africa would hardly be profitable.

From a business perspective, there are certainly strong arguments in favor of a closely integrated airline group. Emotionally, however, many Swiss people likely want an airline that continues to clearly distinguish itself from its German owner. The two do not necessarily have to be mutually exclusive. The key question remains: Which areas can be centralized without the Swiss brand losing its unique character?

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