Air Wisconsin Ends CPA, Focuses on EAS
Air Wisconsin is making a strategic pivot by terminating its current Capacity Purchase Agreement (CPA) with American Airlines by early April 2025, as the regional carrier shifts focus toward Essential Air Service (EAS) routes and expanding its charter operations. This significant move comes amid a rapidly evolving regional aviation market and is part of the airline’s efforts to realign its operations with emerging federal initiatives and growing demand for charter services.
Under the current CPA launched in 2022 with American Airlines following the end of its previous arrangement with United Airlines, Air Wisconsin has been operating flights on behalf of AA out of Chicago O’Hare. According to ch-aviation schedules, the carrier currently services 33 destinations from this hub. However, with the scheduled termination of the CPA on April 3, 2025, AA plans to gradually reduce its flight schedule operated by Air Wisconsin starting in March. Despite these reductions, American Airlines has assured stakeholders that it will maintain service to all the cities served by Air Wisconsin, opting instead to increase regional flight capacity via other regional carriers.
In order to reposition itself, Air Wisconsin has recently submitted bids to the U.S. Department of Transportation for four Essential Air Service contracts. The prospective EAS routes include Burlington, Iowa; Quincy Regional; Pierre; and Watertown, South Dakota. These contracts, submitted from its base at Chicago O’Hare—and potentially with some operations from Denver International for the last two routes—are part of an effort to strengthen connectivity to smaller communities that depend on government subsidies for air service. Air Wisconsin will deploy its fleet of CRJ200 aircraft, all 63 of which are 50-seaters, to serve these markets. Although none of the EAS contracts have been awarded yet and they remain contested by other regional carriers, the move underscores Air Wisconsin’s commitment to expanding service where demand for subsidized travel remains strong.
With the end of its CPA with American Airlines, the regional carrier plans to transition its relationship from a capacity purchase framework to a codeshare and interline agreement with AA. This change is expected to provide greater flexibility and allow the airline to dedicate more resources to exploring new and emerging markets. Additionally, the airline is planning to significantly expand its charter services. Operating under its Part 135 certificate—which limits its flights to 30 seats—Air Wisconsin is looking to meet growing demand from niche segments, notably from National Collegiate Athletics Association (NCAA) sports teams that require efficient, cost-effective charter solutions.
Currently, Air Wisconsin’s fleet is exclusively composed of CRJ200 aircraft, a reliable workhorse for regional operations. As the airline focuses on EAS contracts and charter expansions, it aims to bolster its operational efficiency and optimize fleet utilization.
By realigning its business model in anticipation of the new EAS opportunities and enhanced charter demand, Air Wisconsin is poised to continue serving crucial regional markets while remaining competitive in an increasingly dynamic industry. This strategic shift not only positions the airline for future growth but also supports the broader federal objective of maintaining essential air services in smaller communities across the United States.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com