After a 20-month run, Air Wisconsin Airlines and AirTran Airways [AAI] will end their JetConnect partnership.

Since November 2002, Air Wisconsin has been flying 10 Bombardier [BBD] CRJ200s between AirTran's Atlanta hub and 14 cities. In five markets - Tallahassee, Fla., Savannah, Ga., Greensboro, N.C., Myrtle Beach, S.C., and Wichita, Kan. - Air Wisconsin was the sole service provider.

AirTran by August will replace the Air Wisconsin regional jet service with flights using its own Boeing [BA] 717s. It will begin a two-month transition in June.

The JetConnect service was introduced after AirTran scaled back its short-haul service during the industry downturn that followed the Sept. 11, 2001, terrorist attacks. Using the smaller regional jets, AirTran was able to provide a link to its Atlanta hub and its mainline routes.

"When we started the service over a year ago, we both built in a one-year review," said Kelly Lanpheer, a spokeswoman for Air Wisconsin. The partnership was a first for AirTran, a low-cost carrier.

"Certainly things have gone well for both sides," said Judy Graham-Weaver, an AirTran spokeswoman, "but we got our costs down so that we can operate more economically and efficiently with the B717, than what we pay to outsource it. It allows us to deliver our own brand of service that our customers have gotten used to."

The decision to end the partnership was described as mutual.

Timely financial information on the privately held Air Wisconsin is limited to data that all carriers are required to provide to the Department of Transportation. In the third quarter of 2003, Air Wisconsin reported its costs per available seat mile (CASM) at 13.5 cents per mile. By comparison, AirTran had a CASM for the same quarter at 8.11 cents per mile. At AirTran, it recently reported the 11th straight quarterly reduction in operating costs.

AirTran, an all B717 airline, will begin receiving the first of 100 B737-700s this summer. With the larger B737s, Graham-Weaver said the carrier will have the flexibility to redeploy the B717 to less densely traveled routes. She said while AirTran will not be reducing the number of seats flying to these JetConnect markets, the daily flight frequency might be reduced. The new schedule has not been set.

AirTran was a good six months into its contract with Air Wisconsin when it announced the deal to add the B737 to its fleet in a move that will enable the carrier to fly transcontinental routes.

The AirTran contract represents about 10 percent of Air Wisconsin's revenue. In the third quarter, the Appleton, Wis.-based carrier reported $203 million in operating revenue.

The bulk of Air Wisconsin's business - 90 percent - comes from its contract with United Airlines [UALAQ], Lanpheer said. The 10 50-seat Bombardiers will be reassigned to United Express. The move is an expansion of the United contract. Air Wisconsin currently flies 17 BAe-146s jets and 57 CRJ200s out of Chicago O'Hare International Airport, Denver International Airport and Washington Dulles International Airport.

>>Contact: Judy Graham-Weaver, AirTran, (707) 907-5054; Kelly Lanpheer, Air Wisconsin, (920) 749-7638.<<