Harbor Diversified Enhances Capacity Purchase Agreement with American Airlines

Harbor Diversified, Inc. (OTCMKTS:HRBR) subsidiary, Air Wisconsin Airlines LLC, recently finalized an amendment to its capacity purchase agreement (CPA) with American Airlines, Inc. The agreement, effective November 27, 2024, marks a significant milestone in the relationship between the two carriers.

The Amendment resolves various disputes concerning American’s payment obligations under the CPA. It includes a mutual release of certain contractual liabilities, thereby enhancing clarity and understanding between the parties involved. Notably, the Amendment accelerates each Carrier’s right to terminate the CPA for convenience and reduces the wind-down period associated with such actions.

Additionally, modifications have been made to termination rights, aircraft withdrawal terms, compensation-related payments, crew scheduling hours, and the total number of aircraft covered under the agreement. In a bid to further solidify their collaboration, the Carriers have also executed a codeshare agreement and an interline agreement, both coming into effect concurrently with the Amendment.

According to the recent 8-K SEC Filing submitted by Harbor Diversified, the Amendment signifies a positive step towards streamlining operations and enhancing the partnership between Air Wisconsin Airlines LLC and American Airlines, Inc. This strategic move is expected to benefit both parties and foster continued growth and efficiency in their operations going forward.

As the aviation industry continues to evolve, such agreements play a crucial role in ensuring operational synergy and maximizing the potential of the carriers involved. The updated terms and conditions are poised to create a more conducive environment for collaboration and growth in the competitive airline sector.

For further details and specifics regarding the Amendment to the Capacity Purchase Agreement, interested parties can refer to the official SEC filing on the matter.

This news release contains forward-looking statements that reflect the current views and expectations of Harbor Diversified regarding future events and operational matters. Actual results may vary materially from these expectations due to various factors and uncertainties inherent in the aviation sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Harbor Diversified’s 8K filing here.

Harbor Diversified Company Profile

Harbor Diversified, Inc, together with its subsidiaries, provides air transportation services in the United States. It also leases and finances flight equipment. As of December 31, 2022, it owned and operated a fleet of 64 regional jets. The company was formerly known as Harbor BioSciences, Inc and changed its name to Harbor Diversified, Inc in February 2012.