US regional airline Air Wisconsin is ending its capacity purchase agreement with American Airlines as it begins a strategic shift to charter and Essential Air Service (EAS) flights.
The Appleton, Wis.-based airline said on Jan. 10 that it would move to a codeshare and transit relationship with American Airlines, rather than operating on behalf of its regional division American Eagle.
Wisconsin Airlines and American Airlines' capacity purchase agreement expires in April. The company says it will focus on “federally subsidized EAS routes that provide critical air connectivity to rural and underserved communities.”
“These routes provide critical transportation for communities who may not be able to travel by air.”
Air Wisconsin has operated 60 MHIRJ CRJ200 regional jets under the American Eagle brand since signing a contract with American Airlines in March 2023.
Wisconsin Airlines said it recently eliminated all aircraft-related debt, giving it financial flexibility as it embarks on a new direction.
“This strategic shift highlights our adaptability and commitment to providing reliable, customized air travel solutions where they are needed most,” said Robert, Chief Executive Officer of Air Wisconsin.・Mr. Binns said.
The company says the 50-seat CRJ200 is ideal for EAS routes, where “there is a high demand for small, efficient aircraft.”
Regional airlines are also expanding their charter flights, particularly for university sports teams.
A portion of the funding for EAS flights is permanently appropriated through “overflight” fees paid by foreign flag airlines that fly over the United States but do not land.
The Regional Aviation Association, an advocacy group, recently urged Congress to protect the EAS program as part of the U.S. budget reconciliation process.
“Proposals to eliminate funding from overflight fees paid by foreign airlines rather than U.S. taxpayers risk precipitating long-term underfunding of the program and subsequent loss of air service through the appropriation process. “Yes,” the RAA warns.
