Darwin Airline: criminal investigation into bankruptcy closed

The criminal investigation into the bankruptcy of Darwin Airline has come to an end, years after the events that triggered it. On Tuesday, public prosecutor Daniele Galliano informed the parties that the investigation was closed, proposing that four people, all German nationals, be committed for trial: the airline's last two CEOs and two former executives of the Slovenian carrier Adria Airways.

The investigation centres on a deal from 2017. That year, Darwin came under the control of the Luxembourg fund 4k Invest, which also controlled Adria Airways. It was decided to rename the company, which became Adria Airways Switzerland. Between August and September of that year, around 1.8 million francs were paid to finance the rebranding.

According to the expert report commissioned by prosecutor Galliano, which confirms earlier findings by the public prosecutor's office's financial unit, that amount was excessive. Investigators believe the operation significantly drained the company's liquidity, leaving it exposed in the following months. On 12 December 2017, just months after the name change, Darwin went bankrupt. In 2019, Adria Airways met the same fate.

The alleged offences

The four suspects are accused of unfaithful management, fraudulent bankruptcy, fraud in debt enforcement proceedings, diminishing assets to the detriment of creditors, mismanagement and misappropriation of withholding tax. Among these, the allegation involving withholding tax implicates not only private creditors but also public finances.

The bankruptcy left creditors unpaid and ended the operations of an airline. The trial will now have to determine how far management decisions, rather than the difficulties of the regional aviation market alone, contributed to the collapse, raising questions about the individual responsibility of those running the company.

The parties now have two weeks to request further investigative steps. After that, the indictment will follow, determining whether the case is heard before the Assise Correzionali or the Assise Criminali.