Ruag’s Zurich Operation in Jeopardy

 - September 23, 2009, 11:05 AM

Ruag may have to close its Zurich-Kloten site “due to unfavorable cost structures,” according to a spokesman for the company’s Aircraft Services Network, which maintains business and executive jets. He said the civil aircraft maintenance business is strategically important to the company, but cost pressure and lower margins are forcing management to revise its strategy. “The main focus is on tapping synergies to a greater extent by establishing centers of excellence for specific types of aircraft,” he said. “Ruag will continue to rely on its sites in Geneva, Berne-Belp and Agno [Switzerland] and Oberpfaffenhofen [Germany].”  He added, “As things currently stand, the Zurich-Kloten site cannot be operated profitably and as a result it is affecting the recovery of the Aircraft Service Network as a whole. We are currently in a turnaround situation and we operate in a tough competitive environment. In the interest of our customers we need to focus even more closely on our strengths, be profitable and secure remaining jobs.”