It's about protection, not control: Etihad CEO on Darwin

Abu Dhabi-based Etihad Airways has said it is not looking at controlling Switzerland’s Darwin Airline, and is merely seeking protection for its investment.

The airline issued a statement on Sunday to this effect after Switzerland’s Federal Office of Civil Aviation (Foca) last week warned that a plan by Etihad to acquire 33.3 per cent of Darwin does not meet legal requirements.

In a statement on Sunday, Etihad said it was “comfortable” with the review of its agreement to acquire 33.3 per cent of Darwin, and that it is working with authorities to amend its proposal to ensure that it complies with regulations.

Etihad said it was advised in June by Foca that changes to the agreement would be needed to secure regulatory approval. Since then, Eithad has been working with Foca and is amending the agreement to ensure it complies with regulations.

“We are comfortable with Foca’s review and understand and support the need for there to be absolute clarity that Etihad Airways does not, cannot and will not exercise control over Darwin Airline,” said James Hogan, President and Chief Executive Officer of Etihad Airways.

“While our initial agreement has required amendment, we are seeking, as any minority investor would, protection for our investment. This is about protection, not control,” Hogan said in the statement.

“Etihad Regional was, and will continue to be, majority owned by Swiss shareholders and operated by Swiss management,” he assured. 

Etihad reiterated that Swiss investors will retain a 66.7 per cent investment in Darwin, and no Swiss interests will be compromised by Etihad Airways’ investment.

“We have a high regard for the management of the business and its capability to build a stronger regional airline that increases competition and choice for air travellers, especially in Switzerland,” Hogan said.

The statement comes months after the European Commission opened a similar investigation into several foreign holdings in European airlines including Etihad’s 29.2 per cent stake in Germany’s Air Berlin and Delta Air Lines’ 49 per cent of Britain's Virgin.

Etihad already owns stakes in five other carriers including Air Berlin, Virgin Australia and Aer Lingus.
 

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