Darwin / Adria Switzerland files for insolvency

NEWS FLASH

Switzerland’s Darwin Airline, operating under the brand name of Adria Airways Switzerland, has entered reorganisation under Swiss insolvency regulations yesterday, just four months after the airline was purchased from Etihad Airways and other minor shareholders by Adria Switzerland, a subsidiary of 4K Invest. Despite a “promising” start to the restructuring process, Darwin “has encountered several unfavourable market impacts” that led to the decision to enter insolvency proceedings similar to US Chapter 11 protection, according to a statement by Darwin. The company said, “Darwin has been challenged with the termination of all business contracts by Alitalia, which filed for insolvency proceedings in May 2017. Furthermore, the unexpected insolvency of Air Berlin 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 and will continue flying under its existing Air Operator’s Certificate “for the time being”. As previously reported, it will offer wet-lease services to other airlines and “offer maintenance services for own aircraft and third parties”. “These operations will require between 100 and 120 employees at Darwin Airline. The company believes these steps will provide foundations for the continuation of its business activity and future operations”, Darwin concluded. On the other hand, Adria Airways itself plans to grow its operations next year, more on which you can find here.