Etihad exits its Darwin Airlines holding
Jul 20, 2017, 8:11 am
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Etihad exits its Darwin Airlines holding
Darwin Airlines - which was rebranded as Etihad Regional after Etihad's investment - will rebrand again, this time to "Adria Airways Switzerland"
Originally Posted by Reuters
ABU DHABI/DUBAI (Reuters) - Etihad Airways has sold its minority stake in European regional carrier Darwin Airline, the first divestment since launching a strategic review last year and just weeks after chief executive James Hogan left the Abu Dhabi carrier.
Etihad, which held a 33.33 percent stake in Darwin Airline, and other investors have sold their shares to a new Swiss subsidiary of Slovenia's Adria Airways, according to a Darwin Airline statement on Thursday.
An Adria Airways spokeswoman told Reuters it had bought 99.1 percent of Darwin Airline and would purchase the remaining shares "shortly".
Darwin Airline was one of eight carriers Etihad bought since 2011 and the second one sold after British Airways-owner International Airlines Group (IAG) (ICAG.L) took over Aer Lingus [AERLI.UL] in 2015.
Darwin Airline will be rebranded as Adria Airways Switzerland. It has operated as Etihad Regional since 2014 when Etihad Airways bought its stake.
The value of the transaction was not disclosed. The shares were sold to a new Swiss subsidiary of Adria Airways, the statement said.
Etihad, which held a 33.33 percent stake in Darwin Airline, and other investors have sold their shares to a new Swiss subsidiary of Slovenia's Adria Airways, according to a Darwin Airline statement on Thursday.
An Adria Airways spokeswoman told Reuters it had bought 99.1 percent of Darwin Airline and would purchase the remaining shares "shortly".
Darwin Airline was one of eight carriers Etihad bought since 2011 and the second one sold after British Airways-owner International Airlines Group (IAG) (ICAG.L) took over Aer Lingus [AERLI.UL] in 2015.
Darwin Airline will be rebranded as Adria Airways Switzerland. It has operated as Etihad Regional since 2014 when Etihad Airways bought its stake.
The value of the transaction was not disclosed. The shares were sold to a new Swiss subsidiary of Adria Airways, the statement said.
Originally Posted by ATWonline
[Darwin spokesperson] Wigdorivits said the sale had happened “immensely quickly,” with Etihad having only told Darwin in early May that it wanted to pull out of its Swiss venture.
He said Darwin had decided to find a new partner rather than reverting to its old name in order to bring economies of scale. “You know how difficult it is to have a standalone solution, especially when you’re really a rather small carrier. That’s why looking for cooperation definitely made sense—for both airlines.”
He said Darwin had decided to find a new partner rather than reverting to its old name in order to bring economies of scale. “You know how difficult it is to have a standalone solution, especially when you’re really a rather small carrier. That’s why looking for cooperation definitely made sense—for both airlines.”
Last edited by irishguy28; Jul 20, 2017 at 8:48 am
Jul 20, 2017, 11:21 am
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You've got to think that anyone looking to buy a stake of anything Etihad is selling will take them to the cleaners. It is too public that they're struggling and looking to save money and recoup where they can. Perfect ingredients for a fire sale !
Coupled with that they seem to be cutting down on items that take a lot of management, I wonder if there'll be a cull there soon too
Coupled with that they seem to be cutting down on items that take a lot of management, I wonder if there'll be a cull there soon too
Jul 21, 2017, 12:29 am
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Sounds like it could potentially be a good bit of business for Adria, assuming they got a knock-off price. Allows them to expand their scale a bit and with luck shore up their brand.
Yet another retreat for Etihad. James Hogan really does have egg on his face.
Yet another retreat for Etihad. James Hogan really does have egg on his face.
Jul 22, 2017, 4:40 am
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He might have a nice payoff from Etihad that will keep him happy for a while, but I suspect he does care about the impact on his CV and his future career prospects.
"So James, all that M&A you did in your previous role, how did that go...?"
"So James, all that M&A you did in your previous role, how did that go...?"