Air Wisconsin Airlines layoffs to affect Appleton and Milwaukee employees

Last week, Air Wisconsin Airlines, based in Appleton, made a significant announcement about the upcoming layoffs of over 500 employees at two major airports in Wisconsin, following the loss of a crucial contract with American Airlines earlier in the year. The company plans to lay off 284 workers at Appleton International Airport and 219 at Milwaukee Mitchell International Airport, according to a letter addressed to the Wisconsin Department of Workforce Development signed by Tina Vos, the vice president of human resources. The layoff process is anticipated to begin around March 31.

Approximately one-third of the Air Wisconsin Airlines workforce, consisting of around 1,500 employees, will be affected by these layoffs. Among the 513 employees impacted in both Appleton and Milwaukee, 294 union workers face temporary layoffs. The company stated that exact details about which union workers will be affected are still uncertain due to collective bargaining agreements. Captain Jack Roback, chair of Air Wisconsin Master Executive Council, noted that if pilots are furloughed, seniority will determine the furloughs. The Airline Pilots Association (ALPA) represents the 335 pilots working for Air Wisconsin. Additionally, various other employee groups within the airline have labor contracts with different unions representing dispatchers, flight attendants, and clerical, office, fleet, and service employees, as well as maintenance personnel.

Although the temporary layoffs have been announced, the actual furlough process has not commenced yet. The process initiates with the issuance of a vacancy notice. CEO and President of Air Wisconsin, Robert Binns, stated in an internal email that no definitive decisions have been made concerning furloughs. Consequently, the International Association of Machinists and Aerospace Workers (IAMAW) District 142 has not received an official notice about imminent furloughs for its members.

The origin of the Air Wisconsin Airlines layoffs can be traced back to January, when the company announced the conclusion of its purchase agreement with American Airlines in April. This agreement entailed a transition to a codeshare and interline relationship between the two airlines. American Airlines had inked a five-year capacity purchase agreement with Air Wisconsin Airlines LLC, effective August 19, 2022, aiming for the operation of 60 Bombardier CRJ 200 aircraft under the American Eagle banner. While the termination of the contract remains unclear, Harbor Diversified, Inc., the parent company of Air Wisconsin, warned of potential financial risks associated with American Airlines’ shifts in aircraft utilization.

To counter the impact of the lost contract, Air Wisconsin is currently seeking federally subsidized Essential Air Services (EAS) contracts. The airline has submitted two proposals to the Department of Transportation for routes linking Burlington, Iowa, and Quincy, Illinois, to Chicago O’Hare International Airport, pending departmental approval. Moreover, Air Wisconsin has expanded its charter operations, especially related to NCAA collegiate sports team travel, and remains dedicated to delivering safe and quality service to every community and customer it serves.

Despite the challenging situation, Air Wisconsin Airlines’ strategic moves have garnered local support. Tom Nelson, executive director of Outagamie County, expressed full confidence in the company’s decisions and strategic direction. Air Wisconsin Airlines, founded in 1965, has a long-standing history of connecting communities and maintaining strong partnerships with major airlines over the years. The airline recently parted ways with United Airlines after operating as a United Express carrier from 2018 to 2023, signing a new five-year contract with American Airlines in August 2022.