EasyJet will join other airlines in grounding most of its fleet this week, impacting airports including Geneva’s, where the UK budget airline is the biggest operator. André Schneider, CEO of Geneva Airport, is reducing the workforce to cut costs but doesn’t expect the federal government to close the hub.WATCH MORE
Weekend Chat Virtual Edition with Ana Maria and Tanya
A luxury quarantine hotel, David Geffen’s yacht, Harry Potter, La Casa de Papel and virtual museum tours: All of these come together in this episode of Weekend Chat Home/Virtual Edition with AM & TK.
Pandemic a wake-up call for antibiotics industry
The coronavirus pandemic has exacerbated the public health threat posed by drug-resistant superbugs, says Thierry Mauverney, CEO of Debiopharm. The Lausanne-based company is working on several fronts in the fight against COVID-19, from developing treatments to investing in applications for monitoring patients remotely.
Switzerland doubles COVID-19 emergency loan program
Switzerland on Friday doubled the size of its coronavirus emergency loan program to CHF 40 billion to head off a rash of insolvencies among small businesses strapped for cash. The Federal Council asked parliament to approve CHF 10 billion of an additional CHF 20 billion in federal guarantees for bridge loans as a matter of urgency. Companies have taken out more than CHF 14 billion in state-backed bank loans just over a week. “Because of this considerable demand, the CHF 20 billion in federal guarantees is likely to be exceeded in the next few days,” the government said. Finance Minister Ueli Maurer said some 400,000 businesses are struggling with a loss of income as a result of the pandemic. The vast majority are small companies with fewer than 10 employees. So far about 76,000 businesses have received credit under the program, part of Switzerland’s largest-ever economic aid package. Businesses can borrow up to CHF 20 million at low or zero interest and have five years to repay the debt. Switzerland has closed schools and many businesses and banned gatherings of more than five people as it fights the outbreak. The death toll rose to 484 people from 432 people on Thursday, while the number of positive tests rose to 19,303. “We haven’t reached the summit,” said Interior Minister Alain Berset at a news conference. Even when the numbers peak, there will be no sudden end to the crisis, he said, urging people to avoid unnecessary travel during the Easter holidays. Swiss cantons are mobilizing more police ahead of the holidays to enforce the country’s coronavirus confinement measures.
How social entrepreneurs are helping small businesses
Local businesses are suffering from the coronavirus lockdown and now face huge problems with their cash flow, which they rely on to cover fixed costs such as rent. Many initiatives are now popping up such as BeLocalHero.com, the app Poinz or mitenand.me to help these small businesses get cash immediately. Find out how.
Police presence reinforced in laissez-faire Switzerland
Swiss police plan to step up their presence significantly in the coming days to enforce social restrictions put in place to curb the coronavirus. With the Easter holidays approaching and warmer weather in the forecast, Stefan Blättler, head of the Conference of Cantonal Police Commanders, urged people to avoid unnecessary travel. Police are especially worried about people heading south to the hard-hit canton of Ticino, which borders Italy and attracts many visitors this time of year. Traffic jams are a common sight along the main route, particularly outside the Gotthard Tunnel. COVID-19 cases in Switzerland continue to rise by more than 1,000 a day. While that’s less steep than before, it is not clear yet that the rate has reached a peak, said Daniel Koch, head of communicable diseases at the Federal Office of Public Health. It’s still too early to make a reliable prognosis for the coming weeks and “certainly too early to relax the restrictions at this time,” he said. He declined to rule out further limits on public life, saying officials will wait until after the weekend to address that question. At present, gatherings of more than five people are banned, and shops, restaurants, and cultural spaces are closed. Koch urged people to stay home except for brief walks. Globally COVID-19 infections are nearing the 1 million mark after cases more than doubled in the past week. In Switzerland, the number rose to 18,267 on Thursday, with 432 deaths. Mask debate The World Health Organization is revisiting its guidance on whether people should wear face masks in public amid growing evidence that those with no symptoms of the virus can spread the disease more widely than thought. “We’re continuing to study the evidence about the use of masks,” WHO Director-General Tedros Adhanom Ghebreyesus said at a news conference Wednesday. The Geneva-based UN agency has discouraged healthy people other than those caring for the infected from wearing masks. European countries have largely followed the WHO, but a shift appears to be under way. On Monday, Austria ordered its citizens to wear masks when outside the home, after the Czech, Slovak, and Bosnian governments issued similar orders. Switzerland has not mandated masks so far. The Federal Office of Public Health recommends their use only for health workers caring for coronavirus patients, people suspected of having the infection, or those who are at risk.
Sweden’s maverick approach to COVID-19
In Sweden, shops are open, kids are still going to school, and lots of people are still traveling to work—even though the country has a higher coronavirus death rate than locked-down Switzerland. Hannah Wise sits down with a television journalist from Stockholm to discuss why these two nations—sometimes confused with each other—couldn’t be more different in their approach to dealing with coronavirus.
Help for the local mom-and-pop
The storefronts may be closed but many neighborhood shops are still open for online business. And to help them get that message out, a group of social entrepreneurs has set up a website—BeLocalHero.com—to showcase their wares and help small retail businesses like florists and bookstores survive the loss of foot traffic during the coronavirus crisis.
Swiss government readies bigger coronavirus aid package
The Swiss government on Wednesday pledged to expand its coronavirus aid package while warning that there is a limit to how much it can help struggling businesses without damaging its own finances. The Federal Council plans to top up the CHF 42 billion package in the coming days with more liquidity for cash-strapped companies. It is also preparing support for those not included in the current plan, such as start-ups and the self-employed. Vice President Guy Parmelin, who is also the economics minister, cautioned that the government can’t cover all claims for lost income, saying that would endanger its financial stability and the country’s economic appeal. Switzerland is already looking to double its holdings of short-term debt and step up bond sales to cushion the economic consequences of the pandemic. Exit scenarios The council is also working on a strategy to reboot the economy after restrictions on social contact are eased. No time frame was given, although Parmelin said “small, strictly controlled relaxations” may be allowed for certain sectors. In one indication of how slow that process may be, the government said it will take two to three weeks just for trains to get back on schedule. “It would be counterproductive if we let our guard down and then have to take harder measures later,” Parmelin said. “Everyone would regret it.” Switzerland’s COVID-19 support package consists mainly of wage subsidies for furloughed workers and CHF 20 billion in guarantees for emergency loans. Banks have already handed out more than half of that to roughly 54,000 companies. Demand for help to cover salaries has also been overwhelming, with about 86,000 companies seeking benefits for more than 1 million employees, or about 20 percent of the workforce. Credit Suisse estimates the cost so far of federal measures to safeguard earnings at around CHF 4.6 billion for every month the crisis drags on. However, the government probably won’t have to breach its debt brake thanks in part to its budget surpluses in recent years, the bank said. The Swiss constitution requires a balance between revenue and expenses over the economic cycle, though the government may run annual deficits. The coronavirus lockdown is taking a heavy toll on Swiss industry, data showed on Wednesday. The Swiss Purchasing Managers’ Index for March fell to 43.7 points, its lowest since July 2009. The index is compiled by Credit Suisse and the procure.ch association. A measure below 50 points indicates a contraction in manufacturing, which accounts for about a fifth of Swiss output. The reading for the services sector plunged to 28.1 points, reflecting that most shops and restaurants are closed to help stop the virus. Switzerland has reported 17,139 cases of COVID-19, with 378 deaths as of Wednesday.
Swissport plans to reduce 60 percent of workforce
Airport ground services company Swissport has lost 70-80 percent of its global revenue as coronavirus brings the travel industry to a halt. “It is almost impossible for us to reduce costs fast enough in order to make sure the cash burn is somehow sustainable,” said CEO Eric Born. Grounded fleets and travel restrictions have made services such as airline check-ins and baggage handling redundant in airports. Swissport plans to furlough about 60 percent of its workforce by the end of April.
