Record growth but financial challenges

Geneva, April 17, 2008. Skyguide, Switzerland's civil and military
air navigation services company, generated total operating revenue of
CHF 369.38 million for 2007 and net earnings (after balances brought
forward) of CHF 3.45 million. A negative operating result was
recorded for the year, however, with a net cost underrecovery of CHF
45.3 million. Year-on-year traffic growth exceeded projections at
6.1% and resulted in another record traffic volume. Skyguide managed
and monitored 1.23 million flights last year; and 91% of these were
on time, a better-than-average punctuality performance in European
terms.

A CHF 45 million negative operating result
Total operating revenue for 2007 amounted to CHF 369.38 million. The
8.3% increase on 2006 was due to the strong year-on-year growth in
total traffic volumes. Net earnings (after balances brought forward)
amounted to CHF 3.45 million, compared to CHF 18.79 million for 2006.
This apparent profit is due to the European calculation methods,
however: since skyguide's revenues were substantially lower than its
expenses, the operating statement showed a substantial cost
underrecovery of CHF 45.30 million for the year.

Revenue shortfall must be remedied
«I see our company's 2007 performance as a positive one in which our
performance goals were achieved,» says Chairman of the Board Guy
Emmenegger. «As we expected, however, we did face certain problems on
the financial front. We are responding to the cost issues through a
rigorous efficiency enhancement programme. But we also face a major
revenue shortfall that is attributable to structural considerations
and concerns. This is less than satisfactory, and has to be changed:
skyguide must have the best possible business and operating
parameters if it is to be an attractive collaboration partner in
tomorrow's European air traffic management landscape.»

CEO Daniel Weder is more explicit on the structural problems,
referring to the Four-Point Plan that the company unveiled on
February 5. «Skyguide manages adjoining airspace in neighbouring
countries and provides air navigation services for all Swiss aviation
at our country's regional aerodromes,» he explains. «But these
services are only partially compensated for, if at all. This cost us
some CHF 65 million in revenues last year. There is a clear need for
action here at the national level,» he continues. «Skyguide is not
seeking subsidies. What we are asking for is remuneration for all the
services we provide, to enable us to compete in Europe on a level
playing field. And anyone who wants to ensure an independent
long-term future for Swiss air navigation services must have a clear
interest in ensuring that their provider - skyguide - is able to
operate on a sound business basis.»

More jobs and more personnel
The skyguide workforce grew 6% in 2007 to 1 252.5 employees. The
increase was due primarily to the company's assumption of
responsibility for air navigation services at Grenchen and St. Gallen
Altenrhein aerodromes, to the recruitment of new operating safety
specialists and to a modification to the status of trainee air
traffic controllers, who are now no longer regarded as trainees once
they have acquired the E1 part-licence qualification.

Punctuality despite record growth
Skyguide managed and monitored 1 232 439 instrument flight rules
(IFR) flights in 2007, a new record volume in IFR traffic terms. The
company handled an average of 3 380 flights a day, a 6.1% increase on
the prior-year level.

+--------------------------------------------------------------+
| | 2007 | 2006 | 06 / 07 |
|----------------------------+-----------+-----------+---------|
| Instrument flights handled | 1 232 439 | 1 162 078 | + 6,1 % |
|----------------------------+-----------+-----------+---------|
| of which en-route flights | 775 533 | 729 990 | + 6,2 % |
+--------------------------------------------------------------+

The traffic growth experienced in 2007 was tangibly above the
projections of Eurocontrol, which had predicted growth of just 2.4%
as recently as September 2006. Despite the unexpectedly high traffic
volumes, skyguide achieved above-average punctuality for the flights
it handled. Some 91% of total daily traffic was punctual, tangibly
above the 89% average among Europe's air navigation service
providers.

Safety, innovation and satisfied customers
The large majority of skyguide's customers are content with the
services the company provides: a recent survey revealed that more
than two thirds of all airspace users are either «satisfied» or «very
satisfied» with the skyguide service they receive. On the technical
front, skyguide put new Mode S radar antennas into service in the
course of the year. As a result, Switzerland has become the first
country in Europe to be fully covered by this latest generation of
radar technology, and is thus excellently prepared for further
technological developments. Skyguide also meets all European safety
norms, as the Swiss Federal Office of Civil Aviation confirmed
following an exhaustive audit in the course of 2007.

The 2007 skyguide annual report has now been published. The document
is available in English, French or German and can be downloaded as a
PDF file or ordered on a CD from the skyguide website.

skyguide
swiss air navigation services ltd.
media relations

contact (for media only):
phone: +41 22 417 4008
email: presse@skyguide.ch
internet: www.skyguide.ch

Skyguide is responsible for providing air navigation services within
Swiss airspace and in the airspace of certain adjoining regions in
neighbouring countries. The company guides the civil and military
aircraft entrusted to its care - almost 3 400 flights a day or over
1.23 million a year - through the busiest and some of the most
complex airspace in Europe. Skyguide is a non-profit limited company
which has its head office in Geneva. The majority of its shares are
held by the Swiss Confederation. The company generates annual
operating revenue of over CHF 369 million and employs some
1 400 people at 14 locations in Switzerland.

The media release in three languages can be downloaded from the
following link: