Darwin Airline filed for reorganization under insolvency rules on Monday, 27 November 2017.
After starting a promising restructuring process under new ownership, Darwin Airline has encountered several unfavorable market impacts.
Shortly after the acquisition, the Swiss airline has been challenged with the termination of all business contracts by Alitalia who filed for insolvency proceedings in May 2017. Furthermore, the unexpected insolvency of Air Berlin in August 2017 lead to significant negative impacts such as bad debt, loss of existing business and future business opportunities.
Immediate business initiatives such as the Bern operations and other attempts for new revenues have not been successful due to the highly competitive market environment.
As a consequence, Darwin Airline decided to initiate proceedings for reorganization under insolvency rules (Nachlassstundung) under Swiss law.
The airline’s management has developed a solution in order to save as many work positions as possible. The proceedings will start today, 27 November. The solution is based on three main pillars:
- Darwin Airline will continue to fly under the existing AOC (F7) for the time being.
- Darwin Airline will become a crew service provider for pilots and flight crews.
- Darwin Airline will offer maintenance services for own aircraft and third parties.
These operations will require between 100 and 120 employees. The company believes the adopted measures will provide the foundation for the continuation of its business activity and future operations.
Darwin used the brand name Etihad Regional from January 2014 to July 2017, when Etihad Airways sold its 33% stake to the owner of Adria Airways. It previously also operated flights on behalf of Alitalia.