Air Wisconsin Airlines LLC has signed a non-binding letter of intent with Premier Shuttle Holdings, an affiliated holding company of the Slate Aviation group of companies, for the proposed sale of Air Wisconsin’s airline operation and certain assets.
While the LOI sets forth high-level terms, both Air Wisconsin and Premier must complete diligence and negotiate a definitive agreement.
The transaction would allow Premier to expand into larger aircraft such as the CRJ-700 and E175. The company currently offers all-business-class service on routes in the eastern United States.
Together with Slate Aviation, Premier would own and operate more than sixty CRJ-200 aircraft if the contemplated transaction is completed.
Air Wisconsin has issued notices to each of its 252 employees (102 management and 150 represented employees) at the following locations that their positions may be impacted:
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Air Wisconsin Airlines — General Mitchell International Airport (Milwaukee);
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Air Wisconsin Airlines (hangar) — 4800 S Howell Avenue (Milwaukee); and
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Air Wisconsin Airlines (headquarters and hangar) — Appleton International Airport (Appleton).
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Other assets that are not included with the contemplated Premier transaction will remain with Air Wisconsin’s parent company, which will continue to pursue opportunities in aircraft, engine, and parts sales and leasing. This business will employ certain Air Wisconsin employees to support its operation.
Any necessary reductions are expected to be implemented beginning Oct. 28, and affected employees may be separated on that date or within the 14-day period thereafter.Â
These reductions are expected to be permanent, unless otherwise provided for in any applicable Collective Bargaining Agreement (CBA). A list of positions that may be affected is available here.
