Air Wisconsin (ZW, Appleton Outgamie County Regional) is switching allegiance from United Airlines (UA, Chicago O'Hare) to support rival American Airlines (AA, Dallas/Fort Worth) under a new five-year capacity purchase agreement that will see the regional carrier boost the American Eagle network with up to sixty CRJ200s.
An existing capacity purchase agreement between Air Wisconsin and United Airlines under the United Express brand will be terminated, the airline announced in an August 19, 2022, SEC filing. Air Wisconsin currently operates flights for United out of the carrier's hubs at O'Hare and Washington Dulles.
However, United plans to phase out single-cabin 50-seat flying. Air Wisconsin's decision was consistent with this strategy, a United spokesperson told The Points Guy. "This decision is consistent with our previously announced United Next growth strategy, where we plan to fly larger narrowbody aircraft within our domestic network."
Initially, Air Wisconsin will provide regional airline services for American under the American Eagle brand, primarily based at Chicago O'Hare one of American's key domestic hubs, with possible future expansion to other hubs.
According to the ch-aviation fleets module, Air Wisconsin owns and operates a fleet of sixty-four CRJ200s (63 -LRS and one -ER) all of which fly for United Express. As such, up to forty planes will initially be covered by the agreement with American, subject to an implementation schedule whereby a specified number of aircraft will become available each month, commencing in March 2023 and continuing until October 2023. Subject to certain conditions, Air Wisconsin can accelerate the implementation schedule.
Air Wisconsin may also add up to twenty CRJ-200s as covered aircraft under the agreement, subject to certain minimum block hour utilisation thresholds (resulting in an aggregate of up to 60 covered aircraft under the contract).
The parties may discuss adding CRJ700s to Air Wisconsin's fleet to provide regional airline services under the agreement, but neither party is under any obligation concerning these additional aircraft.
American will pay Air Wisconsin fixed daily revenue for each aircraft covered under the agreement (subject to Air Wisconsin's ability to meet certain block hour utilisation thresholds), fixed payment for each departure, and a fixed payment for each block hour flown in each case subject to annual increases. Air Wisconsin will also be eligible to receive incentive compensation and will be required to pay rebates upon the achievement of, or failure to achieve, certain pre-established performance criteria. American will receive all revenues from the sale of passenger tickets, including baggage charges, food and beverage sales, and ticket change fees.
Founded in 1965, Air Wisconsin was one of the original United Express partners in 1985 and operated then as US Airways Express on behalf of US Airways (Phoenix Sky Harbor) before becoming an American Eagle regional air carrier. Since March 2018, Air Wisconsin has operated exclusively as a United Express regional air carrier.
