With Help from Etihad, Darwin Prepares To Re-fleet

Switzerland’s Darwin Airline expects to decide on the direction it takes its fleet composition by the end of the year, as the world’s sole Etihad Regional-branded operation prepares to celebrate its first anniversary as part of the Abu Dhabi-based carrier's equity alliance.

Speaking with AIN at October’s European Regions Airline Association general assembly in Barcelona, Darwin CEO Maurizio Merlo left little doubt about his intentions to expand the airline through the economies of scale the partnership allows. Merlo also stressed the importance of Etihad’s purchase of 33 percent of the Swiss regional, characterizing the acquisition as nothing less than a lifeline.

“It’s difficult to survive as a standalone, especially if you are small,” said Merlo. “You need scale. But to have scale you need financial support.”

Merlo, who started working as training manager with Darwin at its inception some 10 years ago and worked his way through the company ranks until accepting the CEO position in 2012, credits the company’s survival over the past decade to the patience of its shareholders and their willingness to continue to invest even while losing money. Without Etihad’s financial backing, however, the airline wouldn’t have lasted much longer, he conceded.

Flying a fleet of 10 Saab 2000s throughout Europe, primarily from its bases in Lugano and Geneva, Darwin maintained code-share ties with Alitalia and Swiss International Airlines, but, according to Merlo, it lost money on feeder services, relying on point-to-point flying to stay afloat.   

“It’s completely different now because we are in a partnership,” he said. “But even so, we have to look not to cannibalize too much our point-to-point [markets] with the feeder [services] because they're still important. And then at the end of the year, I want to see a black number. And the point-to-point is actually where you make money.”

Just this year adding four leased ATR 72s to its fleet of Saabs, Darwin plans to commit soon to a fleet plan for the next “ten or fifteen years” with what Merlo called an “official” aircraft type. 

Although he said the now out-of-production Saab 2000s fit “perfectly” into Darwin’s network, the lack of additional airplanes for sale or lease means it will undoubtedly have to switch types. Along with Etihad, Darwin plans to determine by the end of next month whether or not the ATRs present a long-term solution.

“Part of the strategy is not to work standalone, but to work together, to make an analysis [together] because, of course, if you order 10 aircraft you get one price, if you order 30 aircraft you get another price,” explained Merlo.

“At the end of the day you need to build a business that is sustainable. Etihad is not a charity airline. And to build up this business model that’s sustainable...we cooperate and share.”