Several Swissair Group planes grounded

Swissair Group said several of its aircraft had been impounded at European airports.

Swissair Group said several of its aircraft had been impounded at European airports.

The groundings come a day after two top Swiss banks salvaged the brand and most of the airline business from the troubled group but left its mountain of debt behind.

The group confirmed two of its aircraft had been impounded in London. A spokesman declined to comment on Swissair's flight plans for the rest of the day.

Although the struggling group put a brave face on its dramatic fall from grace, legal clouds gathered over its future as more Swissair aircraft risked being impounded by angry creditors.

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Suppliers could be reluctant to deliver fuel, change tyres or unload planes without advance payment, experts said.

Banks UBS and Credit Suisse will combine most of Swissair's airline operations with regional carrier Crossair after taking over Swissair Group's 70 per cent stake in the smaller airline as part of a £538 million rescue operation.

But the rest of Swissair Group was left to file for creditor protection, and thousands of jobs will be lost in the group's collapse following the September 11th attacks in the United States that caused a sharp drop in global air traffic.

The group had already struggled with huge debts and record losses, incurred largely by a failed foreign expansion strategy over recent years.