Etihad Airways has sold its 33.3 percent stake in Swiss regional carrier Darwin Airline, in the first such divestment for the Persian Gulf carrier since it began reassessing some of its equity partnerships last year, the companies announced Thursday. It also comes just weeks after former CEO James Hogan left the company as part of a “controlled restructuring” that will also see a modest reduction in headcount during the second half of the year.

The parent company of Slovenia’s Adria Airways has bought 99 percent of Darwin from Etihad and the remaining investors in the Swiss regional and plans to change its marketing brand from Etihad Regional to Adria Airways Switzerland. Adria Airways CFO Heinrich Ollendiek will replace Maurizio Merlo as Darwin CEO.

In May Etihad named its former group chief people and performance officer Ray Gammell interim chief executive, while group treasurer Ricky Thirion assumed CFO responsibilities from James Rigney, who left with Hogan on July 1.

Eithad still holds stakes in Air Serbia, Air Seychelles, Air Berlin, Alitalia, Jet Airways and Virgin Australia. In December Etihad Airways unveiled plans to create a new European leisure airline group in a joint venture with TUI AG. It also announced new codeshare agreement with Lufthansa and an aircraft leasing agreement between Air Berlin and Lufthansa. Nevertheless, Etihad group chairman Mohamed Mubarak Fadhel Al Mazrouei has signaled an intention to reassess the company’s partnerships in the interest of “cost efficiency, productivity and revenue.”

“We must progress and adjust our airline equity partnerships even as we remain committed to the strategy,” he said in a statement released in January to announce Hogan’s eventual departure.

Established in 2003 with the intention of connecting the southern part of Switzerland with Zurich and Geneva, Darwin Airline became an acquisition target in 2014, when Etihad bought 33.3 percent of its shares and adopted the Etihad Regional marketing identity.

“The decision to sell this minority stake in Darwin is a result of the ongoing strategic review of our investments and a decision to concentrate on our other partnerships,” said Etihad Aviation Group chief strategy and planning officer Kevin Knight. “We wish everyone at Darwin well in the future.”

Darwin Airline chairman Emilio Martinenghi noted that the airline remains well capitalized and solvent and capable of honoring all its creditor obligations. 

“Adria Airways, with its extensive expertise, its strong route network, especially in the Southeast European market, will be very beneficial not only to the future of Darwin but also to the Ticino region we serve, which needs good connections with the rest of Switzerland and throughout Europe,” he said.

While the parties involved have agreed to maintain confidentiality on the terms of the sale transaction, Darwin Airline said it made a profit in 2016 and “has a positive outlook” for this year.