Compass Airlines

Compass Airlines was a United States regional airline that operated scheduled passenger services for larger airline partners from 2006 until 2020. It was created by Northwest Airlines in response to a pilot-contract agreement that permitted a limited number of outsourced regional aircraft carrying up to 76 passengers. Northwest acquired the operating certificate of bankrupt Independence Air in March 2006 for $2 million and developed the new subsidiary under the working name NewCo. The arrangement was designed to serve smaller markets with regional jets while complying with restrictions in Northwest's collective bargaining agreement with its mainline pilots. The airline received United States Department of Transportation approval in September 2006 and FAA certification for commercial passenger operations in April 2007. Its first revenue flight took place on May 2, 2007, between Washington Dulles International Airport and Minneapolis–Saint Paul International Airport, using a Bombardier CRJ200 under the Northwest Airlink brand. Compass introduced Embraer 175 operations in August 2007, and its fleet expanded rapidly, reaching 36 aircraft by December 2008. The carrier later became an important operator of Embraer 170 and 175 regional jets, many equipped with onboard Wi-Fi and streaming entertainment. Compass initially operated as a wholly owned Northwest Airlines subsidiary. Following Northwest's combination with Delta Air Lines, it became part of the Delta regional-airline structure and continued to fly under the Delta Connection brand. Delta sold Compass to Trans States Holdings for $20.5 million in July 2010. Although ownership changed, Compass retained operational and visual links to its former parent, including a headquarters building owned by Delta and a logo derived from Northwest's final design. During the following decade, Compass operated flights for multiple major-airline partners, including Delta and American Airlines. In March 2015 it began American Eagle service with a new Embraer 175, initially flying between Los Angeles and Houston. At its 2016 peak, Compass operated 62 aircraft and employed slightly more than 2,000 people. Across its 14-year history, it operated more than 1.5 million flights. Its maintenance and crew infrastructure included bases in Phoenix, San Jose, Los Angeles, San Francisco, and Seattle/Tacoma. The airline's business model depended heavily on contracted flying agreements, making it vulnerable to partner network decisions. In August 2019, Delta decided to reduce the number of regional carriers operating for Delta Connection and ended its agreement with Compass. The resulting removal of 36 aircraft reduced Compass's fleet from 56 aircraft to 20 by June 2020; the withdrawal of Delta-owned Embraer 175 aircraft was accelerated to April 1, 2020. Compass announced the closure of its Phoenix crew base in January 2020 and its Seattle/Tacoma base the following month. The COVID-19 pandemic then sharply reduced demand for air travel, while Trans States Holdings was unable to secure sufficient additional flying to sustain the airline. Compass announced that it would cease operations in early April 2020. Its last revenue service was American Eagle Flight 6047 from Tulsa, Oklahoma, to Los Angeles on April 5, 2020. The company shut down during the same week as sister carrier Trans States Airlines, leaving GoJet Airlines as Trans States Holdings' only operating airline. A proposed acquisition by Breeze Airways was subsequently canceled.

Compass Airlines emerged from a labor and network-planning problem at Northwest Airlines. Northwest's pilots, represented by the Air Line Pilots Association, negotiated a limited exception to the scope provisions of their collective bargaining agreement. Those provisions generally protected mainline flying from being assigned to outside operators. The exception allowed a subcontracted regional carrier to operate aircraft carrying no more than 76 passengers. In return, the Northwest pilot group sought mechanisms allowing regional pilots to flow up into mainline jobs and mainline pilots to flow down into regional positions during periods of furlough. To implement the agreement, Northwest acquired the operating certificate of Independence Air, a bankrupt airline, on March 10, 2006, for $2 million. The new subsidiary was initially referred to internally as NewCo. Compass received Department of Transportation approval on September 28, 2006, and FAA certification for commercial passenger service on April 5, 2007. It began revenue operations on May 2, 2007, with a Bombardier CRJ200 flying between Washington Dulles and Minneapolis–Saint Paul under the Northwest Airlink name. Embraer 175 service began on August 21, 2007. The fleet reached 36 aircraft by the end of 2008. Compass became part of the Northwest corporate structure and subsequently the Delta Air Lines group following the Northwest–Delta combination. The airline continued to perform regional flying for Delta and operated from a building at Minneapolis–Saint Paul that was owned by Delta. In July 2010, Delta sold Compass to Trans States Holdings for $20.5 million. Compass nevertheless continued to display several connections with its former parent, including a modified version of Northwest's final logo. The carrier's operations expanded beyond its original Northwest and Delta relationships. On March 27, 2015, Compass introduced American Eagle service using an Embraer 175, with the first flight connecting Los Angeles and Houston. By 2016, the airline had reached a peak fleet of 62 aircraft and employed just over 2,000 people. Over its lifetime it operated more than 1.5 million flights. Its fleet was centered on Embraer 170 and 175 aircraft, while earlier operations also included the CRJ200. The Embraer aircraft were fitted with GoGo Wi-Fi and streaming entertainment, and some Northwest-origin aircraft incorporated structural and cabin features associated with their original configuration. Because Compass depended on contracts with major airline partners, changes in those relationships materially affected its size. In August 2019, Delta chose to consolidate its Delta Connection flying among fewer regional operators and terminated Compass's agreement. Thirty-six aircraft were removed, reducing the operation from 56 aircraft to 20 by June 2020. Delta-owned Embraer 175 aircraft were scheduled to leave Compass earlier, with the withdrawal accelerated to April 1, 2020. Compass also closed its Phoenix crew base in January 2020 and announced the closure of its Seattle/Tacoma base in February. The COVID-19 pandemic produced an additional and decisive contraction in passenger demand. In March 2020, Compass announced that it would cease flying in early April, while Trans States Holdings was unable to obtain enough replacement flying to keep the carrier operating. The final revenue flight was American Eagle Flight 6047 from Tulsa to Los Angeles on April 5, 2020. Compass ceased operations after approximately 14 years. A proposed acquisition by Breeze Airways did not proceed. Its shutdown occurred shortly after the closure of sister carrier Trans States Airlines, leaving GoJet Airlines as the only airline then operated by Trans States Holdings.

• 2020

  Operations cease

  [1]Compass Airlines (North America)en.wikipedia.org

  Compass completed its final revenue flight on April 5 and shut down amid the pandemic-related demand collapse.

• 2019

  Delta contract termination

  [1]Compass Airlines (North America)en.wikipedia.org

  Delta ended its Compass regional-flying agreement as part of a reduction in the number of Delta Connection operators.

• 2016

  Peak scale

  [1]Compass Airlines (North America)en.wikipedia.org

  Compass reached a reported peak of 62 aircraft and slightly more than 2,000 employees.

• 2015

  American Eagle flying begins

  [1]Compass Airlines (North America)en.wikipedia.org

  Compass launched American Eagle operations with a new Embraer 175 on a Los Angeles–Houston route.

• 2010

  Sale to Trans States Holdings

  [1]Compass Airlines (North America)en.wikipedia.org

  Delta sold Compass to Trans States Holdings while the carrier continued operating contracted regional services.

• 2007

  First commercial flight

  [1]Compass Airlines (North America)en.wikipedia.org

  Compass began revenue service under Northwest Airlink with a CRJ200 between Washington Dulles and Minneapolis–Saint Paul.

• 2007

  Embraer 175 service begins

  [1]Compass Airlines (North America)en.wikipedia.org

  The airline started operating two 76-seat Embraer 175 aircraft and expanded rapidly thereafter.

• 2006

  Northwest establishes Compass

  [1]Compass Airlines (North America)en.wikipedia.org

  Northwest Airlines acquired Independence Air's operating certificate and formed the regional subsidiary later known as Compass Airlines.

A contract regional operator focused on operating small and mid-sized regional jets for major airline partners rather than marketing a large independent network under its own consumer brand.

• Scheduled air transportation · 2007

  Regional passenger flights

  Compass's principal offering was scheduled regional passenger transportation performed on behalf of major airline partners. Rather than building a large independent consumer network, the airline connected hub airports with smaller and mid-sized markets under partner brands and flight numbers.

• Regional jets · 2007

  Embraer 170 and 175 operations

  The Embraer 170 and 175 became Compass's principal aircraft family. The 76-seat E175 was especially important because it fit the limits established by Northwest's pilot scope agreement. Compass aircraft included Wi-Fi and streaming entertainment through GoGo; some Northwest-origin E175s also had distinctive structural and cabin modifications.

• Partner-branded regional service · 2007

  Northwest Airlink service

  Compass began its commercial life operating under the Northwest Airlink brand. The service used Compass crews and aircraft to provide regional connectivity within Northwest's network, including its initial Washington–Minneapolis route.

• Partner-branded regional service

  Delta Connection service

  After Northwest became part of Delta, Compass operated regional flights under the Delta Connection brand. This relationship became a major source of flying until Delta ended its Compass agreement in 2019.

• Partner-branded regional service · 2015

  American Eagle service

  Compass began operating for American Airlines under the American Eagle brand in 2015. The initial service used one of twenty new Embraer 175 aircraft and linked Los Angeles with Houston.

• 2010

  Flight attendant dismissal after food-stamp disclosure

  Compass dismissed a flight attendant after she appeared on local television and discussed qualifying for food assistance while employed full time by the airline. The case drew attention to employee speech, workplace policy, and compensation conditions in the regional-airline sector.

  Source

Read more

• 2020

  Cease operationsOther

  Background

  The COVID-19 pandemic caused an unprecedented reduction in air travel demand, while the owner could not secure enough replacement flying after the Delta contract ended.

  Action taken

  Compass announced an April shutdown and completed its final revenue flight on April 5, 2020.

  Aftermath

  Compass became defunct; a proposed acquisition by Breeze Airways was canceled.

  Source

• 2019

  Respond to Delta contract terminationStrategy

  Background

  Delta decided to reduce the number of regional carriers operating under Delta Connection.

  Action taken

  Compass prepared to remove 36 aircraft from its operation and accelerated the return of Delta-owned Embraer 175 aircraft.

  Aftermath

  The fleet contracted sharply, leaving the airline dependent on a much smaller operation and additional flying that was not ultimately secured.

  Source

• 2015

  Add American Eagle flyingProduct launch

  Background

  Compass sought to diversify its contracted flying beyond its historical Northwest and Delta relationships.

  Action taken

  The airline introduced American Eagle service using new Embraer 175 aircraft.

  Aftermath

  Compass operated regional service for American Airlines until its final flying in 2020.

  Source

• 2010

  Sell Compass to Trans States HoldingsM&A

  Background

  Following Northwest's integration into Delta, Delta reassessed ownership of its regional-airline assets.

  Action taken

  Delta sold Compass Airlines to Trans States Holdings.

  Aftermath

  Compass continued operating contracted flights and remained associated operationally with its former parent for several years.

  Sale price. $20.5 million (July 1, 2010)

  Source

• 2006

  Create a scope-compliant regional subsidiaryStrategy

  Background

  Northwest needed a regional operator capable of flying aircraft with no more than 76 seats under a negotiated exception to its mainline pilots' scope provisions.

  Action taken

  Northwest acquired Independence Air's operating certificate and established Compass Airlines as a subcontracted regional carrier.

  Aftermath

  Compass launched with Northwest Airlink and became a significant operator of Embraer regional jets.

  Source

1. 1Compass Airlines (North America)en.wikipedia.org