Swiss European Air Lines and the "Interessensgemeinschaft fur einen Gesamtarbeitsvertrag" ("IG pro GAV") association have reached agreement on the content of a new Collective Labour Agreement (CLA) for SWISS's regional pilot corps. The accord lays the foundation for a new social partnership; and the new CLA should enter into effect in July, 2007.

Swiss European Air Lines and the "IG pro GAV" association have agreed on the content of a new CLA for SWISS's regional pilots following intensive and constructive negotiations. As previously communicated, Swiss European unilaterally improved the terms of the individual employment contracts that are currently in force for its pilot corps in January of this year. The agreement now reached with "IG pro GAV" will offer further enhancements over the present individual contracts in salary, workhours, vacation and occupational pension scheme terms. The new accord will also give the pilots concerned rights of collaboration under the social partnership. At the same time, the new CLA will pay due and full regard to the intensified competitive environment, and will provide Swiss European with a sound foundation for sustainable future growth.

SWISS is pleased that this agreement has been reached, and views the proposed CLA negotiated as a key step towards a new, viable and forward-looking social partnership. SWISS also confirms its own commitment to Swiss European and its regional pilot corps.

Provided it is approved by the Swiss European pilot corps, the new CLA should enter into effect on July 1, 2007. Swiss European Air Lines and "IG pro GAV" have agreed not to divulge any further details of their agreement until further notice.

Swiss European Air Lines Ltd - Swiss European was founded as a fully-owned SWISS subsidiary on November 1, 2005. The company operates air services within Europe on SWISS's behalf with a fleet of 24 Avro RJ85/100 aircraft, and currently employs 276 pilots.

IG pro GAV - The "Interessensgemeinschaft fur einen Gesamtarbeitsvertrag" association has evolved from a group of around 100 pilots of Swiss European Air Lines, and wishes to see agreement reached with Swiss European on a new Collective Labour Agreement for the company's cockpit crew corps. "IG pro GAV" is recognised by Swiss European as a contractual partner.