New mountain railroads in Zermatt

The lockdown due to the coronavirus pandemic is causing great uncertainty and sales losses in almost all industries in Switzerland. Instead of going into shock, Zermatt Bergbahnen AG (ZBAG) is focusing on the time "afterwards". Thus, the Board of Directors has decided to carry out the major investments amounting to approximately 60 million Swiss francs over the next two years as planned, despite the difficult initial situation. The additional financing provided by the banks also contributed to this decision. As soon as weather conditions permit and no further official decisions regarding the corona virus stand in the way of construction work, ZBAG will start work on the new construction of the Kumme gondola lift from mid-April 2020 and continue with the realization of the 3S lift Matterhorn glacier ride II.

The closure of ski resorts, restaurants and stores associated with official requirements to contain the corona virus, as well as restrictions on international travel, have hit the tourism industry hard. However, ZBAG is aware that every crisis has an end and is investing in the future accordingly. Despite the difficult situation, it is sticking to the Kumme gondola and Matterhorn glacier ride II construction projects with an investment volume of around 60 million Swiss francs over the next two years. CEO Markus Hasler commented on the decision as follows: "With the investments and the start of construction work, we want to live up to our pioneering role within and outside the Zermatt - Matterhorn destination and show that we can all master this challenge together. We also want to send a signal to our service partners and guests, as well as to the regional economy, that we believe in the future and are still prepared to invest in modern facilities and offers despite the more difficult conditions." ZBAG is therefore looking forward with optimism to the time after the crisis and preparations for a possible start of summer operations are already in full swing.

Optimism among investors
The effects of the Corona crisis will also lead to a drop in sales at ZBAG over the next twelve months and affect profitability, which is among the very best in the industry. For this reason, ZBAG's current and future investment plans were reanalyzed with the banks. It quickly became clear that the banks are convinced of ZBAG's strategy and successful future 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 agenda during the coming summer season. Together with ropeway manufacturer Doppelmayr/Garaventa and construction companies SULAG Hoch- & Tiefbau AG and E. Lauber & Sohn Hoch- u. Tiefbau AG, ZBAG is building a forward-looking project. The GB Kumme is the first gondola lift in Switzerland to be operated without station staff during passenger service.

If the construction of the gondola lift proceeds as planned, when it goes into operation at the start of the 2020/21 winter season, 1,500 people per hour will be transported in the 56 10-seater cabins over the 3.2 km route from Tufternkehr via the middle station in Wyss Gufer to Unterrothorn. 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 equipment, Zermatt Bergbahnen AG expects a massive upgrade of the entire winter sports area in terms of transport and slope quality.

Owed to the next generation
Franz Julen, Chairman of the Board of Directors of ZBAG, is also confident about the future: "We have calculated various scenarios for the next four years. The effects of the Corona crisis will not leave ZBAG unscathed. However, the rock-solid financial basis we have built up over all these years - together with the additional funds provided by our principal banks - allows us to implement these major projects as quickly as possible without taking irresponsible financial risks. We owe this resolute, far-sighted approach 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 anti-cyclical investments in the time "afterwards" will decisively help us to get through this extraordinary situation well and will offer added value in the future for our loyal Swiss and international guests, who will hopefully soon be able to return to Zermatt."