Loss-making Swiss International Air Lines has dropped a plan to create a low-cost regional subsidiary, to have been named Swiss Express. The move is part of an agreement settling a dispute with its pilot union, who agreed to over 550 job losses and not to apply last month’s ruling by an arbitration court to re-instate 169 redundant pilots. The airline still plans to implement several of the cost-reduction strategies intended for Swiss Express, however. In other cost-cutting moves, the airline is substantially reducing its route network. Cuts include 15 European routes.