Air Wisconsin Airlines LLC Terminates Capacity Purchase Agreement with American Airlines, Announces Strategic Realignment

On January 3, 2025, Air Wisconsin Airlines LLC, a subsidiary of Harbor Diversified, Inc. (OTCMKTS: HRBR), received a termination notice from American Airlines, Inc. ending their capacity purchase agreement (CPA). The agreement, which dates back to August 19, 2022, provides for a wind-down schedule for the withdrawal of aircraft, starting on March 6, 2025, and concluding on April 3, 2025. Despite this termination, Air Wisconsin expects to continue flying for American under the agreement until the termination date.

The termination of the CPA between Air Wisconsin and American was disclosed in the recent filing with the Securities and Exchange Commission. The termination notice came as part of a strategic realignment announced by Air Wisconsin to focus on Essential Air Service Program (EAS) markets, expand its charter operations, and transition its relationship with American to a codeshare and interline agreement. This strategic shift is a part of Air Wisconsin’s effort to adapt to the evolving aviation landscape and refocus its operations effectively.

Additionally, Air Wisconsin has entered into codeshare and interline agreements with American Airlines, focusing on operating federally subsidized EAS markets with its fleet of sixty 50-seat CRJ-200 aircraft. The company is aiming to cater to smaller markets with demands for efficient air travel services. Moreover, Air Wisconsin has recently ventured into charter operations, particularly experiencing growth in demand for its CRJ-200 aircraft, especially from NCAA collegiate sports teams.

The company issued a press release on January 10, 2025, confirming its strategic shift towards EAS and charter operations. The press release highlighted Air Wisconsin’s commitment to delivering reliable and customized air travel solutions, particularly in underserved communities. The realignment signals the company’s financial flexibility following the retirement of all remaining debt on its aircraft.

In the provided press release, Air Wisconsin’s President & CEO, Robert Binns, expressed confidence in the company’s ability to adapt and deliver efficient services, emphasizing the importance of meeting the evolving needs of its customers and communities. Air Wisconsin has been a prominent player in regional aviation since 1965 and continues to evolve its operations to meet changing market demands.

This article is based on the 8-K SEC Filing by Harbor Diversified, Inc., and the attached Exhibit 99.1, which elaborates on the strategic shift and future plans of Air Wisconsin Airlines LLC. Readers are advised to evaluate forward-looking statements considering the risks and uncertainties involved in the Company’s operations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Harbor Diversified’s 8K filing here.

About Harbor Diversified

Harbor Diversified, Inc, together with its subsidiaries, provides air transportation services in the United States. It also leases and finances flight equipment. As of December 31, 2022, it owned and operated a fleet of 64 regional jets. The company was formerly known as Harbor BioSciences, Inc and changed its name to Harbor Diversified, Inc in February 2012.