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Salem business groups have urged City Council members to speed up the timeline for getting the city’s airport ready for commercial air service, saying carriers cannot wait more than a year to begin operations.
City Council members on Monday approved a $540,000 state grant to buy land needed for the airport, but other staffing and terminal improvements needed to handle passenger aircraft remain without funding.
In public testimony Monday, Travel Salem President Angie Onyewuchi said a representative of the city’s “number one airline prospect” visited McNary Field on Aug. 12 and said it will begin serving Salem in March 2023 and add more destinations in May.
Salem Area Chamber of Commerce CEO Tom Hoffert and Onyuuchi did not reveal the name of the airline during the meeting. Hoffert told the Salem Reporter they were bound by a non-disclosure agreement with the airline.
Onyauchi told the council that the service would mean twice weekly flights to the Los Angeles area and from Salem to Las Vegas.
Onyewuchi said the city should spend as little money as possible and focus on services. An airline representative told them the current terminal meets their operational needs, meaning the city only needs to make improvements required by the Federal Transportation Security Administration to screen passengers.
“With fast growing businesses, these airlines will not have time to wait one to two years when they have aircraft ready to operate now,” Onwaiuchi told councillors.
Hoffert also urged city council members to consider stopping the airport’s payments to the city’s general fund and using the extra money to hire more staff. Fly Salem, a group of business and community leaders, outlined other steps to speed up the airline’s arrival in the city. They include discussing airport improvements with a local firm that could quickly complete renovations, and discussions with Oregon Sens. Jeff Merkley and Ron Wyden’s staff about federal approvals needed to start the service.
After two failed attempts, Salem recently landed an $850,000 federal grant to start airline service, guaranteeing a minimum income to airlines that establish routes here.
But in a report released this summer, city staff identified millions of dollars in additional costs to the terminal to make the airport flight-ready, as well as continued staffing costs for security, police and fire to maintain air service. Currently, the city has not identified a way to pay for these services or a time frame for making necessary improvements.
The city authorities and those who are pushing for commercial air services have criticized the recent bankruptcy declaration of the parent company of Budget Airlines, Aha! It does not affect the plan of the airport.
Aha! It was one carrier that expressed interest in serving Salem on a flight to Reno, Nevada, Interim City Manager Kristen Rutherford told the council earlier.
On Tuesday, Aha!’s parent company, ExpressJet, filed for bankruptcy protection and all Aha! Flights, the Associated Press reported.
Another airline, Houston-based budget carrier Avelo, has signed a letter of intent to serve Salem.
“We hope that the two airlines are still taking steps to use Salem Airport in 2023 and beyond as more flights are added to SLE and continue to encourage interest from additional carriers,” Hoffert said in an email to the Salem Reporter. “In short, the loss of Aha is not a huge blow to the recruiting effort, as Salem continues to top the bar for many low-cost and traditional carriers.”
City officials are still preparing to report back to City Council on next steps.
Courtney Knox Bush, the city’s manager of strategic initiatives, said: “AHA’s bankruptcy filing does not change our desire to respond to the City Council on terminal and parking expansion costs, potential funding sources and the timeline for funding and construction of these improvements.” Email to the Salem Reporter.
Contact reporter Rachel Alexander: [email protected] or 503-575-1241.
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