Darwin Airline and Etihad deal is sealed
Regional air carrier Darwin Airline has the green light to cooperate with Etihad Airways in Switzerland, giving the Middle Eastern carrier a foothold in the Swiss air traffic market.
In anticipation of the deal, in which Etihad bought a 33.3% share in Darwin Airline in November 2013, Darwin rebranded itself Etihad Regional.
However, clearance from the Swiss Federal Office of Civil Aviation was needed because under European Union law, which also applies to Switzerland in this case, European airlines must be controlled by European companies. To get around those limitations, Etihad had been buying up stakes in local carriers such as Air Berlin, Alitalia and Darwin.
Under the decision reached on Thursday, Darwin has also been permitted to carry out flights in Europe on behalf of Alitalia and Air Berlin, creating a business model where it is less dependent on Etihad than originally proposed.
“This partnership will provide us the financial stability for the long-term growth of our company, dispelling any market uncertainty,” Darwin Chief Executive Maurizio Merlo said in a statement.
Darwin Airline, which is based in Lugano, canton Ticino, was founded in 2003. It was renamed Etihad Regional after the Abu Dhabi-based Etihad Airways bought up a third of its shares. Etihad also owns 30% of Air Berlin and runs cooperative flights with Air Serbia and Aer Lingus.
In October of last year, Swiss International Air Lines invested CHF5 billion into expanding its routes to compete with airlines such as Etihad, which it saw as infringing on its home turf.
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