Oregon’s Capital City Pooling Funds to Attract New Airline

Salem has not had scheduled commercial air service since August.

The Oregon State Capitol in Salem.
The Oregon State Capitol in Salem. (Photo: Shutterstock/Jacob Boomsma)
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Key Takeaways:

  • Salem, Oregon, is actively seeking a new commercial airline after Avelo's exit left the community without any commercial air service.
  • The city council has committed $100,000 annually for three years from its general fund to attract a new airline.
  • Private organizations (Travel Salem and Fly Salem) have also secured an additional $400,000 per year for three years, bringing the total available for a minimum revenue guarantee to $1.5 million over three years.
  • The goal is to offer a minimum revenue guarantee of $500,000 per year for three years to entice a carrier to operate from Salem-Willamette Valley Airport.
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Salem, the state capital of Oregon, is putting together public and private funds in hopes of attracting a new airline after Avelo’s exit from the West Coast left the community without a single commercial carrier.

The Statesman Journal reported this week that the city council of Salem voted to move $100,000 from the city’s general fund to its airport fund each year for three years. The money will go toward a minimum revenue guarantee for an airline that opts to serve Salem-Willamette Valley Airport, also known as McNary Field. The airport is owned by the City of Salem.

The organizations Travel Salem and Fly Salem successfully raised pledged amounts of $400,000 per year for three years, the newspaper reported, bringing the total available for a revenue guarantee to $1.5 million over three years.

City staff told the Statesman Journal that the minimum goal for a viable revenue guarantee is $500,000 per year for three years.

Avelo in July announced plans to end all of its West Coast routes and shut down its base in Burbank, California. Service to Salem, among other destinations, was slated to end in mid-August. According to the Statesman Journal, the airline’s last flight out of Salem-Willamette Valley Airport took place on Aug. 10.

Avelo was expected to continue operations out of Burbank until December, but that deadline was moved up to Oct. 20.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.
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