[8] In November 2017, the Swiss authorities suspended the airline's license for scheduled flights due to financial difficulties but allowed the wetlease operations to be continued.
Under the plan, some parts of the combined airline would continue to be marketed under the Baboo name, while Darwin would be able to substantially expand their operations.
[10] At the time of the merger, Baboo had returned its fleet of three leased Embraer E-190 to their lessors and only the remaining two Bombardier DHC-8-Q400 were transferred to Darwin Airline to be used on high-density routes as the 74-seater offered a substantial increase in seats compared to the Saab 2000.
[14] In early 2014, Etihad Regional leased four ATR 72-500s from Nordic Aviation Capital to expand routes from Geneva.
It was previously possible for Darwin Airline to fly these routes thanks to a derogation from the Italian Civil Aviation Authority, however, this was not renewed.
[15][16] In January 2014, Darwin Airline cancelled its Aosta-Roma Fiumicino route before it had commenced; a result of the same cabotage and the European Union's refusal to make an exception for a Swiss company.
[20] On 18 February 2015, Etihad Regional ceased two-thirds of its scheduled routes without further notice, amongst them all services to Germany[21] and several to France.
[21] On 11 March 2015, Darwin Airline confirmed it would start operating some of their Saab 2000s on behalf of Air Berlin, in which Etihad Airways also held a stake, from April 2015.
[24] On 29 March 2015, it was also announced that Darwin Airline will operate all of its four ATR72 on several domestic routes for Alitalia, in which Etihad Airways also holds a stake.
[30] On 27 November 2017, Darwin Airline confirmed the closure of its base in Lugano by the end of 2017, with all routes to and from there ending, as well as the closure of all summer seasonal routes from its other base in Geneva,[31] leaving the airline with scheduled year-round flights between Geneva, Lugano (until year-end) and Rome.