Capacity Purchase Agreement with United

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Capacity Purchase Agreement with United

3. Capacity Purchase Agreement with United

In February 2017, Air Wisconsin entered into the United capacity purchase agreement with United to operate up to 65 CRJ-200 regional jet aircraft. In October 2020, Air Wisconsin entered into the CPA Amendment, which among other things, set the number of aircraft covered by the agreement at 63. In April 2021, Air Wisconsin and United entered into a second amendment to the United capacity purchase agreement which addressed the scheduling of block hours during the remaining term of the agreement.

In April 2022 and June 2022, Air Wisconsin and United entered into a third and fourth amendment, respectively, to the United capacity purchase agreement which addressed the date by which United must provide a wind-down schedule for the period following the expiration of the term of the agreement. The term of the United capacity purchase agreement ends in February 2023. Air Wisconsin is continuing to explore options with United to extend or renew the United capacity purchase agreement, although the parties are under no obligation to enter into a new or extended agreement. Air Wisconsin is also actively negotiating with another major carrier regarding the execution of a new capacity purchase agreement. However, there can be no assurance that any agreement will be reached regarding the extension of the United capacity agreement or the execution of a new capacity purchase agreement.