More than 500 people are expected to be laid off by Air Wisconsin Airlines as the company works through the end of an agreement with American Airlines.
The regional airline based in the Fox Valley filed a layoff notice with the state on Thursday. The notice says the airline expects to have temporary layoffs for unionized employees and permanent layoffs for management and salaried employees beginning on March 31 or in the two weeks after.
The company estimates 513 employees will be affected, 219 management or salaried employees and 294 union employees. It will include employees at General Mitchell International Airport in Milwaukee and Appleton International Airport.
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“At this point, the Company is unable to assess the extent of those reductions,” wrote Tina Vos, vice president of human resources for Air Wisconsin. “The duration of the reduction is unknown and will be dependent on alternative flying opportunities.”
Earlier this month, Air Wisconsin announced it was terminating a capacity purchase agreement with American Airlines in April. Capacity purchase agreements allow major airlines to buy aircraft, crews and services from a regional airline.
At the time, Air Wisconsin said the airlines were “transitioning to a codeshare and interline relationship.” Codeshare and interline agreements allow passengers to travel between airlines without checking in again. The company said the move would allow it to focus on federally subsidized “Essential Air Service” routes that connect to rural and underserved communities.
“Since that announcement, the Company has been working to develop alternative flying opportunities, which it expects to announce in the coming weeks,” Vos wrote in the layoff notice Thursday. “It is likely that the Company’s strategy will involve some level of company-wide workforce reductions.”
Vos also wrote that affected employees had been notified and Air Wisconsin would ensure they are paid all earned wages and benefits at the time of separation.
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