Over 500 employees of Air Wisconsin are set to face layoffs as the airline ends its partnership with American Airlines. The company has announced a strategic shift that includes transitioning away from using the American Eagle brand to focus on other revenue models such as charter and government-subsidized operations.
According to a Notice of Workforce Reduction sent by Air Wisconsin to the Wisconsin Department of Workforce Development on January 30, 2025, approximately 513 workers will be affected by these cutbacks. Of these, 294 are unionized workers, while 219 are managerial or salaried personnel. The layoffs are expected to begin around March 31, 2025, or within two weeks thereafter.
Tina Vos, vice president of human resources at Air Wisconsin, noted in the notice that the firm is “unable to assess the extent” of job cutbacks currently and will depend on finding new flying opportunities. She mentioned that the company is exploring alternative routes, including Essential Air Service (EAS) to underserved rural communities and will provide more information in the coming weeks.
“It is likely that the Company’s strategy will involve some level of company-wide workforce reductions,” stated Vos. “At this point, the Company is unable to assess the extent of those reductions.” She added that for unionized employees, reductions are expected to be temporary, whereas they will be permanent for management and salaried staff.
The anticipated layoffs include various roles such as pilots, flight attendants, mechanics, and dispatchers at Appleton International Airport and Milwaukee Mitchell International Airport. Management and salaried staff face permanent cutbacks while union personnel may experience temporary layoffs.
The unionized workforce at Air Wisconsin is represented by groups including the International Association of Machinists and Aerospace Workers (IAM), Airline Pilots Association (ALPA), Association of Flight Attendants (AFA), and Transportation Workers Union of America (TWU). However, it remains unclear which specific positions will be most affected.
Harold Mester, director of public affairs and marketing for Milwaukee airport, assured that flights or flight services at the airport would not be impacted by these changes.
Air Wisconsin’s agreement with American Airlines changed significantly when it was announced on January 10, 2025. Once its capacity purchase deal expires in April 2025, Air Wisconsin plans to switch from operating under American Eagle’s name to a codeshare and interline arrangement with American Airlines. The airline considers its fleet of CRJ200 regional jets suitable for EAS routes due to their efficiency and smaller capacity.
Proposals have already been submitted by Air Wisconsin to provide EAS services in Burlington, Iowa, and Quincy, Illinois. This marks a shift from being an American Airlines regional subsidiary towards charter services and subsidized government operations. Federally funded EAS routes connect larger airports with smaller communities providing essential transportation options for rural areas.
Additionally focusing on EAS services, Air Wisconsin is expanding its charter business particularly within college sports where demand has increased due partly to longer travel times following NCAA league realignments.
“This strategic shift underscores our adaptability,” said Robert Binns President & CEO of Air Wisconsin in a statement emphasizing commitment towards delivering reliable customized air travel solutions where needed most while diversifying into EAS along with growing charter operations ensuring safety efficiency quality service across all served communities customers alike.”
