State of the Airlines

Wednesday, February 23, 2005

NEWS: US Airways and Air Wisconsin?

One of the wonders of bankruptcy court is that it reveals plans that might otherwise sneak by. In this case, papers filed in bankruptcy court by US Airways indicate that the airline has struck a deal with Air Wisconsin. Under the terms of the deal Air Wisconsin would fly 50 CRJ-200 regional jets for US Airways. All of this on the heels of a $125 million financing deal struck between Eastshore Aviation and US Airways. Eastshore is owned by Air Wisconsin. Very interesting.

Apparently the actual number of jets that Air Wisconsin will fly for US Airways may vary based on its other obligations. Other obligations you ask? Wellllll...Air Wisconsin provides regional service for United Airlines as well throwing some $700 million in revenue to United Express in 2004. What I am not clear on is why Air Wisconsin has the spare capacity. Is United scaling back their use of them?

I wonder if Air Wisconsin has people to race to the bank with their checks from United and US Airways...just to make sure they clear the bank.