Etihad Regional launched this week in Zurich thanks to a partnership between Swiss-based Darwin Airline and the UAE national carrier.
The airline currently offers year-round flights to 15 destinations in Europe using a fleet of 10 Saab 2000 turboprop aircraft.
By the middle of this year, this will more than double to 34 destinations, including London City starting in April.
Etihad Airways will acquire a 33.3% stake in Darwin Airline, subject to regulatory approval,
Etihad president and CEO James Hogan said the airline wanted to build strong regional airline partnerships around the world.
"Etihad Regional will provide a unique opportunity to strengthen vitally important regional networks and connect them to the rapidly expanding global network of Etihad Airways," he said.
"We will choose partners, as we have done with Darwin Airline, which share our passion for delivering an outstanding service to travellers, with greater choice and more convenience."
Darwin Airline will become the seventh member of the international alliance and Etihad Airways’ fourth partner in Europe.
Maurizio Merlo, CEO of Darwin Airline, said: "We have a clear strategy and firm commitment to build a strong regional airline linking European cities and towns and provincial centres, which also connect to the broader global network of Etihad Airways.
"What makes Etihad Regional unique is the way Etihad Airways and its equity alliance partners, in particular airberlin and Air Serbia, can also feed passengers into the regional network."
Etihad Airways’ minority shareholdings also include 29% of airberlin, 40% of Air Seychelles, 19.9% of Virgin Australia, 3% of Aer Lingus and 24% of India’s Jet Airways.
The airline will acquire 49% of Air Serbia this month.
