Back in April 2023, American Airlines and Air Wisconsin launched a new partnership for regional flying. While this was supposed to be a five-year contract, it’s being discontinued early, after just two years. This has some implications for both companies.
Air Wisconsin will stop flying CRJ-200s for American Eagle
Each of the “big three” US carriers have their regional subsidiaries. I’m talking about American Eagle, Delta Connection, and United Express. Each of these subsidiaries typically has multiple airlines flying under its branding. So in some cases, the regional airlines may be wholly owned subsidiaries of the larger airlines, while in other cases, the flying is just contracted out to other regional airlines.
This flexibility is important for the major airlines, since it allows them to adjust capacity based on market demand. Furthermore, major US airlines have “scope clauses,” limiting the number of regional jets that can operate for a carrier (this is based on union contracts with mainline pilots).
So in April 2023, we saw American partner with Air Wisconsin, to increase regional capacity. While it was supposed to be a five-year agreement, it’s being terminated early, after just two years.
Air Wisconsin has been operating CRJ-200s for American, primarily out of the Chicago (ORD) hub. While the plan was eventually for Air Wisconsin to operate up to 60 CRJ-200s for American Eagle, up until now, we’ve only seen around 40 CRJ-200s operate for the airline.
It’s interesting how these regional carriers operate for multiple airlines over time. Back in the day, Air Wisconsin operated for US Airways Express, then for American Eagle, then for United Express, and then for American Eagle again.
Here’s how American describes this decision in a statement:
“American continually evaluates its regional network and makes strategic decisions that will benefit our airline and customers. As a result, we have begun reducing our schedule operated by Air Wisconsin starting in March, with the final Air Wisconsin-operated flights for American on April 3. We sincerely appreciate the hard work and dedication of the Air Wisconsin team over the past two years. Their contributions have been instrumental in supporting our regional operation, and we wish them continued success in the future. As we move forward, we remain committed to optimizing our network and ensuring the best possible service for our customers, and we’re working closely with our regional partners to minimize disruptions to our customers’ travel plans.”
What this means for American Eagle & Air Wisconsin
What are the implications of this development for American Eagle and Air Wisconsin? Well, keep in mind that American Eagle has well over 500 jets operating under its branding, so it’s quite a big operation.
It’s not clear whether this relationship is being terminated due to American’s unhappiness with Air Wisconsin’s operation, or whether American is just looking to reduce regional capacity. So it could be that American’s regional capacity decreases a bit.
One thing we do know is that this spells the end of CRJ-200 flying at American, at least for now. Among passengers, the CRJ-200 is probably the least favorite jet in the American Eagle fleet. The plane can seat 50 people, doesn’t have first class, and is in a 2-2 configuration. When it comes to 50-seat regional jets, many people far prefer the Embraer ERJ-145, as the cabin is in a 1-2 configuration.
With American Eagle and Air Wisconsin cutting ties, this also means that Air Wisconsin will no longer be flying on behalf of any of the regional subsidiaries of the “big three.”
Air Wisconsin reportedly plans to focus on serving Essential Air Service (EAS) markets on its own, and pivoting to charter operations. Here’s how Air Wisconsin CEO Robert Binns describes this development:
“This strategic shift underscores our adaptability and commitment to delivering reliable, customized air travel solutions where they are most needed. As we diversify into EAS and grow our charter operations, we remain committed to delivering safe, efficient, and quality service to every community and customer we serve.”
One wonders about the prospects of Air Wisconsin succeeding with this strategy, at least based on the current size of its fleet.
Bottom line
In April 2023, Air Wisconsin began operating on behalf of American Airlines’ regional subsidiary, American Eagle. While this was supposed to be a five-year contract, it’s being discontinued after just two years, as of April 2025.
With this, American Eagle will no longer be operating any CRJ-200 flights. Meanwhile Air Wisconsin will no longer be operating on behalf of any major regional carriers, and will instead focus on Essential Air Service and charter flying.
I’m sure many will be happy to see CRJ-200s no longer operating American marketed flights. I am curious about the prospects of Air Wisconsin as a fully independent carrier.
What do you make of Air Wisconsin no longer flying on behalf of American Eagle?
