Swiss regional Darwin Airline enters insolvency proceedings

Darwin Airline, the Lugano, Switzerland-based regional carrier, has entered reorganization under Swiss insolvency regulations just four months after the airline changed ownership. From 2014 until July 20, 2017, Darwin was 33.3% owned by Abu Dhabi-based Etihad Airways and operated under the brand Etihad Regional. Luxembourg-based private equity fund 4K Invest, owners of Slovenia’s Adria Airways, acquired the airline in July, including Etihad’s share, and began the process of restructuring the carrier, which operates six Saab 2000 and four ATR 72-500 turboprops. But despite a “promising” start to the restructuring process, Darwin “has encountered several unfavorable market impacts” that led to the decision to enter insolvency proceedings similar to US Chapter 11 protection, according to a Darwin statement Nov. 27. Darwin “has been challenged with the termination of all business contracts by Alitalia, [which] filed for insolvency proceedings in May 2017,” Darwin said. “Furthermore, the unexpected insolvency of airberlin in August 2017 led to significant negative impacts such as bad debt, loss of existing business and future business opportunities.” Darwin said it is seeking to save as many jobs as possible. It will continue flying under its existing Air Operator’s Certificate “for the time being,” the carrier said. <br/>