Darwin Retreats from Switzerland as it Evolves Regional Strategy

Swiss-based carrier Darwin Airline, which trades as Etihad Regional, has revealed its plans to restructure its operations. The airline will restructure its operations to increase its activity as a provider of contract services for other carriers in Europe.

Darwin Airline will lodge a detailed business plan with Switzerland’s Federal Office of Civil Aviation (FOCA) by the end of this month, though the airline has already announced its plans to withdraw from four loss-making routes in order to release aircraft for contract operations.

These routes include Lugano – Zurich, Geneva – Toulouse, Zurich – Linz and Geneva – Nice, all of which will be terminated at the beginning of February 2015.

Last year, Darwin Airline announced that it would rebrand as Etihad Regional under a new agreement with Etihad Airways, with the UAE carrier acquiring a 33.3 percent stake in Darwin, subject to regulatory approval.

Towards the end of 2014, the airline lodged a formal complaint with Switzerland’s Competition Commission (COMCO) alleging abusive and anti-competitive behaviour by Swiss International Airlines, claiming that the behaviour came following the agreement between Etihad and Darwin.

According to Darwin, Swiss responded to the agreement by engaging in a series of “abusive actions aimed at forcing Darwin out of the Swiss market”. These, according to the Swiss regional carrier, included terminating, with no valid reason, the wet lease by Swiss of Darwin aircraft, which it had operated on behalf of the Swiss flag carrier on the Zurich-Lugano route for a period of almost 10 years.

Speaking about the agreement, Chief Executive of Darwin Airline, Maurizio Merlo said: “Although this approval is yet to be granted, SWISS and Lufthansa have engaged in a series of abusive actions aimed at forcing us out of the Swiss market.”

Mr Merlo said Darwin Airline believed it to be imprudent and risky to continue in a loss-making battle with SWISS and other Lufthansa Group airlines. “We have done what any sensible and responsible company would do, and opted to change course instead of persisting in a fight we cannot win,” he said.