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United Reserves Right To Change Agreement With Air Wisconsin
09-12
Aviation Week's AVIATION DAILY
United told the bankruptcy court management is reserving the right to change or even reject a deal reached in July with Air Wisconsin, sowing uncertainty over United's long-term commitment to the Appleton, Wis.-based regional.
In court documents filed last week, United explained that entry into its "Amended Agreement" with Air Wisconsin "doesn't constitute assumption of the agreement."
United's strategy with Air Wisconsin contrasts sharply with its SkyWest deal, which the bankruptcy court approved this week (DAILY, Sept. 11). A United spokesman said assumption of the SkyWest contract "was financially appropriate and a prudent business decision."
Though at $2,960, Air Wisconsin's regional jet rates per departure for a 500- mile stage length trip were lowest among United's pre-bankruptcy partners, the carrier got bids of $2,732 and $2,565 during reorganization. The last bid was reportedly from Mesa Airlines (DAILY, July 2).
United is Air Wisconsin's largest partner, and the two carriers signed an 11- year memorandum of understanding letting Air Wisconsin add 20 more regional jets to its United Express operations. Air Wisconsin has about 24 CRJ200s on order, and said it plans to add 50 aircraft before yearend.
09-12
Aviation Week's AVIATION DAILY
United told the bankruptcy court management is reserving the right to change or even reject a deal reached in July with Air Wisconsin, sowing uncertainty over United's long-term commitment to the Appleton, Wis.-based regional.
In court documents filed last week, United explained that entry into its "Amended Agreement" with Air Wisconsin "doesn't constitute assumption of the agreement."
United's strategy with Air Wisconsin contrasts sharply with its SkyWest deal, which the bankruptcy court approved this week (DAILY, Sept. 11). A United spokesman said assumption of the SkyWest contract "was financially appropriate and a prudent business decision."
Though at $2,960, Air Wisconsin's regional jet rates per departure for a 500- mile stage length trip were lowest among United's pre-bankruptcy partners, the carrier got bids of $2,732 and $2,565 during reorganization. The last bid was reportedly from Mesa Airlines (DAILY, July 2).
United is Air Wisconsin's largest partner, and the two carriers signed an 11- year memorandum of understanding letting Air Wisconsin add 20 more regional jets to its United Express operations. Air Wisconsin has about 24 CRJ200s on order, and said it plans to add 50 aircraft before yearend.