US regional carrier Air Wisconsin plans to lay off hundreds of workers as it seeks to pivot from scheduled passenger service on behalf of American Airlines to charter and essential air service (EAS) flying.
With Appleton-based Air Wisconsin’s capacity purchase agreement with American set to expire on 3 April, the company is planning to lay off 219 management and salaried employees at its office in Milwaukee and 294 union-represented pilots, flight attendants, dispatchers, machinists and passenger-service employees in Appleton.
”At this time, the reductions are expected to be temporary for our unionised employees and permanent for management/salaried employees,” Air Wisconsin says in a 30 January filing with the Wisconsin Department of Workforce Development.
The layoffs may begin as soon as 31 March and continue for two weeks after.
Air Wisconson’s pilots are represented by the Air Line Pilots Association, International. Its flight attendants are represented by the Association of Flights Attendants, while its clerical, office, fleet and passenger-service employees are represented by the International Association of Machinists and Aerospace workers.
Meanwhile, the company is pursuing “alternative flying opportunities”, which it expects to disclose in coming weeks.
Air Wisconsin has been operating its fleet of 60 MHIRJ CRJ200 regional jets under the American Eagle brand since entering an agreement with American in March 2023.
But the regional airline disclosed last month it was winding down its agreement with American and instead transitioning to a codeshare and interline relationship with the major US carrier.
Asked to comment about its expiring contract with Air Wisconsin, American says that it ”continually evaluates its regional network and makes strategic decisions that will benefit our airline and customers”.
”As a result, we have begun reducing our schedule operated by Air Wisconsin starting in March, with the final Air Wisconsin-operated flights for American on 3 April,” says the Fort Worth-based airline. ”We sincerely appreciate the hard work and dedication of the Air Wisconsin team over the past two years. Their contributions have been instrumental in supporting our regional operation.”
Air Wisconsin says the 50-seat CRJ200 is well-suited for flying federally subsidised EAS routes “where smaller, efficient aircraft are in high demand”.
Subsidised regional routes connecting rural communities are potentially endangered, however, as a congressional committee is considering eliminating “overflight” fees, which providing funding for the EAS programme. Those fees are paid by foreign carriers that fly over but do not land in the USA.
Advocacy group the Regional Airline Association recently called on Congress to protect the EAS programme as part of the US budget reconciliation process.
”The proposal to eliminate funding from overflight fees — paid by foreign carriers and not US taxpayers — risks facilitating the long-term underfunding of the program through the appropriations process and subsequent air service loss,” the RAA warns.
This story has been edited to include comments from American Airlines.
