Airlines established in Switzerland must be majority-owned and controlled by Swiss citizens, unless otherwise implied by the provisions of international agreements to which Switzerland is a party. The commercial transport of people or goods between two points in Switzerland is reserved to Swiss airlines, in the absence of international agreements providing otherwise. An aircraft may be registered in Switzerland if it is exclusively owned by Swiss citizens, or by foreigners domiciled in Switzerland using the aircraft mainly for travel from Switzerland, or if it is owned by an enterprise headquartered in Switzerland, or by foreigners assimilated to Swiss citizens under international agreements, if they have their domicile in Switzerland. EU nationals and EU-incorporated companies are accorded the same rights as Swiss citizens by virtue of the Agreement between the EU and Switzerland on Air Transport (in force from 2002). Switzerland has adopted the relevant EU civil aviation regulation, including Regulation (EC) No 216/2008, based on the Agreement.
"IX. Commercial air transport
1. Companies located in Switzerland
a. Operating license
Art. 27
1 Companies based in Switzerland which transport people or goods by aircraft for commercial purposes must hold an operating license from OFAC. The Federal Council decides to what extent these companies are to be Swiss owned and controlled by the Swiss.
2 The authorization is issued if, for the type of operation planned, the company meets the following conditions:
a. have the necessary aircraft, registered in the Swiss register, as well as the necessary rights of use on the aerodrome provided as a base for the operation of flights; [...]
4 The Federal Council determines the type of operation and the conditions attached to it. In duly justified cases, it may provide for exceptions to the conditions listed in para. 2, let. a.
[...]
Art. 32
Commercial transport of people or goods between two points in Swiss territory is in principle reserved for Swiss companies unless international treaties provide otherwise. [...]" (Federal Act on Aviation (RO 1950 491, 21 December 1948), last amended on 7 May 2020, Articles 27 and 32 [google translation])
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"Art. 3 Registration
1 OFAC registers airplanes, helicopters and other rotary wing aircraft, motor gliders, gliders, free balloons with occupants and airships in the register, when they:
a. meet the required conditions, in particular with regard to ownership (arts. 4 and 5);
[...]
Art. 4 Ownership conditions
An aircraft meets the prescribed conditions (art. 52, para. 2, letter c, LNA) if it is the exclusive property of:
a. Swiss citizens;
b. foreigners assimilated to Swiss citizens under international agreements, if they have their domicile in Switzerland and have the authorization to stay there for a certain period of time;
c. foreigners who have their domicile in Switzerland and have the authorization to stay there for a certain time, and who use the aircraft mainly from Switzerland;
d. commercial companies or cooperative societies which have their registered office in Switzerland and which are entered in the trade register;
e. communities or establishments governed by Swiss public law;
f. associations constituted under Swiss law, provided that two-thirds of their members and their committee, as well as their president, are Swiss citizens or foreigners who are assimilated to Swiss citizens by virtue of international agreements and have their domicile in Switzerland.
[...]
Art. 103 General conditions for granting authorization
1 The operating license for the commercial transport of people and goods (art. 27 LA) is issued to a company located in Switzerland:
a. when the company is registered in the commercial register in Switzerland with the aim of ensuring commercial air traffic;
b. when the business is under the effective control of Swiss citizens and predominantly in Swiss hands; the case of foreigners or foreign companies assimilated to Swiss citizens or companies under international agreements is reserved;
c. when, moreover, in the case of a public limited company, more than half of its share capital consists of registered shares and is owned by Swiss citizens or commercial or cooperative companies in Swiss hands; the case of foreigners or foreign companies assimilated to Swiss citizens or companies under international agreements is reserved;
d. when the company has an air carrier license which regulates in particular the organization of operation and maintenance;
e. when the aircraft operated by the company meet the minimum requirements set for the planned services and are entered in the Swiss register; with the agreement of the Directorate General of Customs, aircraft may be entered in the registration register of a State with which an international agreement has been concluded providing for this possibility; [...]
2 In order to ensure that the majority of the company's capital is in Swiss hands, a company holding an operating license, or a holding company which directly or indirectly holds a majority stake in another company, must have an exemption right on capital shares listed on the stock exchange and acquired by foreigners. This right of exemption can be exercised within ten days after the declaration of the purchaser to the company, when the foreign participation in the share capital entered in the share register has reached 40% of the total share capital, or when said participation exceeded the Swiss participation entered in this register. The trade-in price corresponds to the stock market price at the time of the exercise of the right of purchase. The company regularly publishes the rate of foreign participation in the capital of the company. The case is reserved for foreigners or foreign companies assimilated to Swiss citizens or companies under international agreements. [...]
4 OFAC may, for valid reasons, grant exceptions to the conditions prescribed in para. 1, let. a to c. It may authorize the transfer of certain operational activities to other Swiss or foreign companies.[...]" (Aviation Ordinance (RO 1973 1856, 14 November 1973), last amended on 1 January 2019, Articles 3, 4 and 103 [google translation])
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"Art. 4
Within the framework of this Agreement and without prejudice to Council Regulation (EEC) No 2407/92 as it appears in the annex to this Agreement, restrictions on the freedom of establishment of nationals of a member state of the EC or Switzerland on the territory of another of these states are prohibited. This provision also applies to the creation of agencies, branches and subsidiaries by nationals of a Member State of the EC or of Switzerland established in the territory of another of these States. Freedom of establishment includes access to self-employed activities and their exercise as well as the establishment and management of companies within the meaning of art. 5, s. 2, under the conditions set by the law of the country of establishment for its own nationals.
Art. 5
1. Within the framework of this Agreement, companies created in accordance with the law of a Member State or of Switzerland and having their registered office, central administration or principal establishment in the territory of the Community or of Switzerland are assimilated to natural persons who are nationals of an EC member state or of Switzerland.
2. The term "companies" means companies incorporated under civil or commercial law, including cooperative societies and other persons governed by public or private law, with the exception of companies which are not for profit. [...]" (Agreement between Switzerland and the EU regarding the air transport (RO 2002 1705, 21 June 1999), last amended on 1 July 2020, Articles 4 and 5 [google translation])
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"Article 4 - Conditions for granting an operating licence:
An undertaking shall be granted an operating licence by the competent licensing authority of a Member State provided that: [...]
(f) Member States and/or nationals of Member States own more than 50 % of the undertaking and effectively control it, whether directly or indirectly through one or more intermediate undertakings, except as provided for in an agreement with a third country to which the Community is a party; [...]" (Regulation (EC) No 1008/2008 on common rules for the operation of air services in the Community, Article 4(f))
Federal Act on Aviation (RO 1950 491, 21 December 1948), last amended on 7 May 2020, Articles 27 and 32
Aviation Ordinance (RO 1973 1856, 14 November 1973), last amended on 1 January 2019, Articles 3, 4 and 103
Agreement between Switzerland and the EU regarding the air transport (RO 2002 1705, 21 June 1999), last amended on 1 July 2020, Articles 4 and 5
Regulation (EC) No 1008/2008 on common rules for the operation of air services in the Community, Article 4(f)
[<a href="https://www.fedlex.admin.ch/eli/cc/1950/471_491_479/fr">Act</a>],[<a href="https://www.fedlex.admin.ch/eli/cc/1973/1856_1856_1856/fr">Ordinance</a>],[<a href="https://www.fedlex.admin.ch/eli/cc/2002/258/fr">Agreement</a>],[<a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02008R1008-20201218">Regulation</a>]