A bankruptcy court judge has approved a deal between Air Wisconsin and US Airways that will see the Appleton, Wis.-based regional take an equity stake in the bankrupt major airline and fly up to 70 regional jets as US Airways Express. The arrangement centers on a $125 million loan from Air Wisconsin’s investment arm, Eastshore Aviation, that will convert to equity after US Airways’ planned emergence from bankruptcy this summer. At press time Air Wisconsin, a United Express carrier, still awaited word on whether it would continue to fly for its long-time major partner. In a bid to lower its contract costs United last November asked for RFPs from 10 regional airlines to fly Air Wisconsin’s routes.
Air Wisconsin-US Airways Pact OK’d
- January 31, 2007, 7:38 AM