Swissair suspends all flights

Swissair has suspended its flight operations as it struggles to find a financial backer.

The company says intensive negotiations are continuing with its banks as it tries to find a way out of its cash crisis.

Swissair filed for protection from creditors yesterday in a bid to reorganise its business and stave off bankruptcy.

Earlier today, authorities at London's Heathrow Airport impounded two Swissair aircraft following a row over landing fees.

A spokesman at Heathrow says: "In the light of uncertainty over payments by Swissair of outstanding landing charges, we took action this morning to impound two Swissair aircraft. The aircraft had recently arrived at Heathrow and our action has not inconvenienced passengers.

"Following discussions with Swissair, one aircraft has been released. One aircraft remains impounded pending further discussions over payments."

The spokesman would not reveal the sums involved but the landing charges are reported to amount to about £300,000.

A Swissair spokeswoman confirmed the Airbuses had been stuck in London but refused to discuss the reason for the seizures.

Swissair is the biggest casualty so far of the air travel slump caused by the September 11 terrorist attacks on the US. The airline, which was already gripped by financial difficulties, says the crisis is likely to cost it up to £1.7bn by the end of this year.

BP Aviation spokesman Giorgio Kunz says Swissair Group has been put on pre-pay status by oil companies for deliveries of jet fuel.

He adds that because payment had not reached BP by an 11.30am deadline, it and other oil companies cut off supplies.