Air Wisconsin, a regional carrier headquartered at Appleton International Airport (ATW), is preparing to layoff more than 500 employees in the coming months. This comes after the carrier lost its contract to operate regional service on behalf of American Airlines.
Air Wisconsin operates a fleet of more than 60 Bombardier CRJ-200 aircraft, though at least 25 of those are currently in storage. The carrier has operated regional service for American Airlines from its hub at Chicago-O’Hare International Airport (ORD) since 2022. Prior to that, Air Wisconsin served as a regional carrier under the United Express brand.
While American and Air Wisconsin signed a five year deal back in 2022, the partnership is ending early as Air Wisconsin will cease flying under the American Eagle brand in April 2025. Air Wisconsin is the last regional carrier operating the CRJ-200 on behalf of American Airlines.
At the time of that announcement, Air Wisconsin planned to focus on the charter market as demand for its CRJ-200 aircraft was strong among NCAA collegiate sports teams. Air Wisconsin also planned to continue operating flights in Essential Air Service (EAS) routes using codeshare or interline agreements with American. Robert Binns, President & CEO of Air Wisconsin, said this at the time:
“This strategic shift underscores our adaptability and commitment to delivering reliable, customized air travel solutions where they are most needed. As we diversify into EAS and grow our charter operations, we remain committed to delivering safe, efficient, and quality service to every community and customer we serve.”
However, things aren’t looking promising for the airline as it reaches the end of its agreement with American. The airline had sent notice to the Wisconsin Department of Workforce Development that it intends to lay off more than 500 employees within the next few months.
According to the memo, the carrier is preparing to lay off approximately 513 employees, with 219 being management/salaried employees and 294 union/represented employees in the state of Wisconsin.
The management cuts are permanent while the union cuts are expected to be temporary, assuming the airline can find somewhere to deploy its aircraft.
It’s no secret that the CRJ-200 is loathed by passengers, it even earned the nickname “Satan’s Chariot”. Delta removed their CRJ-200s years ago to great fanfare, before quietly bringing them back on select routes. United Express partner SkyWest still operates quite a few from its Denver hub, though they are likely on the chopping block.
While this is unfortunate for the Air Wisconsin staff, I can’t say that I’m surprised. Demand for CRJ-200s is low and Air Wisconsin walked away from the only other CRJ-200 operator in favor of American a few years ago. Ultimately, the carrier’s inability or unwillingness to modernize its fleet probably led to its current situation.
Summary
Air Wisconsin is preparing to layoff more than 500 employees as its contract with American Airlines comes to an end. The carrier initially stated it planned to focus on Essential Air Service routes and charter operations though it appears that demand was not as high as initially thought.
This is no doubt a tough situation for Air Wisconsin employees and I wish them all the best.
(Images courtesy Air Wisconsin and American Airlines)