Darwin Airline (F7, Lugano) has announced it has filed to begin reorganization under Swiss insolvency rules (Nachlassstundung/Moratoria concordataria) effective Monday, November 27.

The regional carrier said in a statement that despite promising results from its restructuring process seen following its takeover by Luxembourg-based investment firm 4K Invest, a series of events, precipitated by the bankruptcy of former Etihad Airways equity partners Air Berlin and Alitalia, had forced it to take this drastic measure.

Among the more notable adverse events included the loss of all ACMI flying contracts with Alitalia while Air Berlin's bankruptcy left the Swiss airline not only without current and future contracts, but also heavily exposed to bad debt.

Other factors include its failed bid to start Berne operations amid fellow Swiss carrier SkyWork Airlines' brief suspension of flights last month, as well as difficulties in securing new revenue streams.

As it stands, Darwin Airline, also known as Adria Airways Switzerland, will continue to operate under its own Air Operator's Certificate (AOC) for the time being. However, as previously reported, it will pivot towards ACMI/charter operations while proferring its MRO services to third-parties as well. A total of between 100 and 120 employees will, therefore, be retained.

"The company believes the adopted measure will provide a foundation for the continuation of its business activity and future operations," it added.