US regional carrier Air Wisconsin is winding down its capacity purchase agreement with American Airlines as it initiates a strategic shift toward charter and essential air service (EAS) flying.
The Appleton, Wisconsin-based carrier disclosed on 10 January that it would transition to a codeshare and interline relationship with American rather than flying on behalf of regional arm American Eagle.
Air Wisconsin’s capacity purchase agreement with American is set to expire in April. The carrier says that it will focus on “federally subsidised EAS routes that deliver vital air connectivity to rural and underserved communities”.
”These routes provide critical transportation links for communities that might otherwise lack access to air travel.”
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.
Air Wisconsin says it recently retired all fleet-related debt, providing it with financial flexibility as it embarks in a new direction.
”This strategic shift underscores our adaptability and commitment to delivering reliable, customised air travel solutions where they are most needed,” says Robert Binns, Air Wisconsin’s chief executive.
The 50-seat CRJ200 is well-suited to EAS routes “where smaller, efficient aircraft are in high demand”, the company says.
The regional carrier is also expanding charter operations, particularly flying collegiate sports teams.
Partial funding for EAS flying is permanently appropriated by “overflight” fees paid by foreign flag carriers that fly over but do not land in the USA.
Advocacy group the Regional Aviation 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.
