We have explored numerous other options, looking for a solution that would allow us to reduce costs while maintaining efficiency, but none are achievable in a realistic timeframe. In short, our expenses continue to rise, resulting in a balance sheet that is neither profitable nor sustainable.
During our discussions with United regarding possible contingencies and actions to be considered to address these challenges, United relayed a desire to simplify the Embraer 145 program by consolidating flying. Given the reality of our challenges outlined above, coupled with United’s desire to simplify and create critical mass, 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.
Trans States Airlines still has an extremely important role to play in the United network throughout the remainder of 2020, but you will see a measured reduction of aircraft come off-line before the start of summer flying. United is counting on us to operate a significant number of aircraft throughout the summer, after which aircraft transitions will resume at a yet to be determined rate through end of the year, with all flying to be concluded by the end of 2020.