A regional airline that handles smaller routes for American And Delta has shuttered due to the economic implications of the coronavirus pandemic, according to a report by CNBC.
Compass Airlines has been feeling the pinch of reduced airline demand and couldn’t find a way to survive it.
Many airlines are slashing jobs and routes in desperation, trying to survive a new reality. Many are calling for a $50 billion bailout by the government.
“This is devastating,” said Sara Nelson, president of the Association of Flight Attendants. “And if the government doesn’t act fast we’re going to see more casualties. That’s why we’re working so hard to get a relief package right away that puts workers first.”
The Association of Flight Attendants represents 50,000 airline crew members, and over 200 at Compass.
Trans States Airlines, the parent company of Compass Airlines, said earlier this week it was closing its namesake airline April 1 after United stopped using it. The firm still operates GoJet, a regional airline.
Regional airlines serve an important purpose in the industry: they run smaller routes for bigger airlines and many pilots start there before they move up to larger airlines.
Rick Leach, CEO of Trans States Airlines, said that the COVID-19 crisis introduced “insurmountable obstacles” as people stopped flying, and there are fewer opportunities for work.
“It’s difficult to articulate or even comprehend the speed at which the coronavirus has changed our industry and our world, and the impact it has had on our company,” he said. “The impact of this global crisis is real and unfortunately, no carrier, mainline or regional, is immune from its reach.”
Leach said that he knew the news was going to be hard on employees, telling them, “as difficult as this news is to process, we must conclude these last weeks of our operation with the same commitment to safety, quality and professionalism that have become synonymous with the Compass name. Take care of yourselves and each other in the weeks ahead.”