Item 2.05
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Costs Associated with Exit or Disposal Activities
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Pursuant to notices given pursuant to the federal Worker Adjustment and Retraining Notification (WARN) Act, Air Wisconsin Airlines LLC (Air
Wisconsin), a subsidiary of Harbor Diversified, Inc. (the Company), previously informed approximately 871 employees that it may need to furlough them in order to reduce its workforce due to the novel coronavirus (COVID-19) pandemic and the decreased demand for air travel. On October 1, 2020, Air Wisconsin furloughed approximately 305 employees. At this time, it is not possible to accurately predict the
duration of these furloughs or whether additional furloughs will be required. Employee participation in a number of voluntary employment separation and leave programs offered pursuant to agreements reached with certain of Air Wisconsins union
partners reduced the number of employees who were the subject of these furloughs. This workforce reduction is part of Air Wisconsins response to, and cost saving initiatives taken as a result of, the impacts and disruptions caused by the COVID-19 pandemic on Air Wisconsins business, operations and financial performance, and the impacts on the airline industry generally.
At this time, the Company is unable to make a good faith determination of an estimate or range of estimates required by paragraphs (b), (c) and (d) of
Item 2.05 of Form 8-K with respect to such workforce reduction actions. The Company will file an amendment to this Current Report on Form 8-K (Current
Report) after it makes a determination of such estimate or range of estimates.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this Current Report are forward-looking statements, and thus reflect the Companys current expectations and beliefs with
respect to current and future events, and anticipated financial and operating results. Such forward-looking statements are subject to many risks and uncertainties that may cause actual results to differ materially from any future results expressed
or implied by such forward-looking statements. Forward-looking statements include all statements contained in this Current Report that do not relate solely to historical facts, such as statements that identify uncertainties or trends, discuss the
possible future effects of current known trends or uncertainties, or indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured.
The Companys actual results could differ materially from the forward-looking statements made in this Current Report due to numerous factors including,
without limitation, the following: the duration and spread of the ongoing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat; the dependence of the business of Air
Wisconsin on a capacity purchase agreement with United Airlines, Inc. (the United capacity purchase agreement) given United is currently Air Wisconsins sole airline partner; the material decline in air travel demand and significant
risks and disruptions caused by the COVID-19 pandemic; the possibility that United could provide Air Wisconsin with inefficient flight schedules or change the expected utilization of Air Wisconsins aircraft under the United capacity purchase
agreement; disagreements regarding the interpretation of the United capacity purchase agreement, as well as other business disputes with United; the amounts Air Wisconsin is paid or reimbursed under the United capacity purchase agreement; the extent
to which Air Wisconsins current growth opportunities are restricted based on factors impacting the airline industry; Air Wisconsins reliance on only one aircraft type, aircraft manufacturer and engine manufacturer; Air Wisconsins
significant amount of debt and other contractual obligations; disruptions in service with key third-party service providers; and other risks and uncertainties set forth under Part I, Item 1A., Risk Factors, of the Companys Annual
Report on Form 10-K for the fiscal year ended December 31, 2019, as well as other risks and uncertainties described in the other reports the Company files with the Securities and Exchange Commission from
time to time.
All forward-looking statements in this report are based upon information available to the Company on the date of this Current Report. The
Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law.