A memo leaked on Monday has revealed that Trans States Airlines, a regional carrier operating services for United Airlines, will cease trading at the end of the year. The decision has reportedly been made following an “exceptionally challenging financial year” for the airline.
Earlier this week, reports emerged suggesting that Trans States Airlines will cease operations at the end of 2020. As reported by Flight Global, news of Trans States Airlines’ closure came to light on Monday after an internal memo was leaked.
The memo outlined the airline’s recent struggles and management’s ultimate decision to cease trading. “We have come to the extremely difficult decision that an organized and well-planned wind-down of the Trans States operation is the most viable course of action,” the memo reads.
With rising expenses, the airline is now faced with “a balance sheet that is neither profitable nor sustainable.”
What is Trans States Airlines?
Trans States Airlines is a small regional airline which operates United Express flights on behalf of United Airlines. The airline is one of three brands owned by Trans States Holdings, the other two being Compass Airlines and GoJet Airlines. Trans States Airlines’ United Express services are flown out of two main bases, Chicago O’Hare and Denver.
In total, Trans States Airlines operates a fleet of 42 aircraft, all of which are Embraer ERJ-145s. A large portion of this fleet of 45 Embraer ERJ-145s are ex-ExpressJet aircraft. Despite rising expenses and falling profits, Trans States Airlines still serves more than 4.5 million passengers per year, operating roughly 237 flights per day.
The loss of this capacity will be a significant hit to United Airlines. However, reports suggest that a portion of Trans States Airlines’ crew may be incorporated into GoJet Airlines and Compass Airlines.
The end of Trans States Airlines but not Trans States Holdings
While it looks like there has been no reduction in demand for the routes and services provided by Trans States Airlines, the issue appears to be the suitability of the Embraer ERJ-145s the carrier operates. With room for just 50 passengers per aircraft, United Airlines feels there is significant room for consolidation on the selection of routes operated by Trans States Airlines.
Using higher passenger capacity aircraft, such as the Embraer ERJ-175, the regional routes currently served by Trans States Airlines can be significantly streamlined. With higher operating margins, whichever carrier takes over these services, whether it’s one of the other two Trans States Holdings brands or not, should be able to make a success of these routes where Trans States Airlines couldn't.
Simple Flying has reached out to United Airlines with a request for comment on its plans for the selection of regional routes operated by Trans States Airlines. The airline has not yet been able to respond, but we will update this article once we receive more information.