Zermatt Bergbahnen AG Invests For Post Covid Time "Afterwards"
The lockdown due to the coronavirus pandemic is causing great uncertainty and falling sales in almost all industries in Switzerland. Instead of falling into shock, Zermatt Bergbahnen AG (ZBAG) is concentrating on the “after” period. The Board of Directors has decided to make the major investments of around 60 million Swiss francs over the next two years as planned, despite the difficult situation. The additional financing from the banks also contributes to this decision. As soon as the weather conditions allow it and no further official decisions regarding the coronavirus stand in the way of the construction work, ZBAG will tackle the construction of the new Kumme gondola from mid-April 2020 and continue the implementation of the 3S cable car Matterhorn glacier ride II.
Investors are optimistic
The effects of the corona crisis will also lead to a drop in sales at ZBAG in the next twelve months and affect profitability, which is one of the very best in the industry. This is why ZBAG's current and future investment plans were re-analyzed with the banks. It quickly became clear that the banks are convinced of the strategy and the successful future of ZBAG and are therefore sticking to the planned investment amounts and projects. They are also making additional funds available for the two major projects.
First unmanned gondola lift in Switzerland
In addition to the resumption of construction work on the Matterhorn glacier ride II, between Testa Grigia and the Klein Matterhorn, the new construction of the GB Kumme is on the plan for the coming summer season. Together with the cable car manufacturer Doppelmayr / Garaventa and the construction companies SULAG Hoch- & Tiefbau AG and E. Lauber & Sohn Hoch- u. Tiefbau AG, ZBAG is creating a future-oriented project. With the GB Kumme, Switzerland’s first gondola lift that is operated without station staff during passenger operations is put into operation.
If the construction of the gondola goes as planned, 1,500 people per hour will be transported over the 3.2 km route from Tufternkehr via the middle station in Wyss Gufer to Unterrothorn when the 2020/21 winter season starts. Waiting times in the Unterrothorn area will be a thing of the past and thanks to the new system and the installation of the snowmaking system, Zermatt Bergbahnen AG is expecting a massive upgrade of the entire winter sports area in terms of transport and slope quality.
Guilty of the next generation
The Chairman of the Board of Directors of ZBAG, Franz Julen, is also looking to the future with confidence: “We have calculated various scenarios for the next four years. The effects of the corona crisis will not leave ZBAG unaffected. The solid financial basis built up over the years - together with the additional funds from our house banks - allows us to implement these major projects as quickly as possible without taking any irresponsible financial risks. We owe this resolute, far-sighted action to our shareholders and the next generation. We are also aware of our corporate and social responsibility towards our employees and within the destination. We are convinced that countercyclical investments in the “after” period will help decisively,
