From AP and Staff Reports
PENDLETON — The U.S. Department of Transportation has ordered Horizon Airlines to wait at least an extra month before cutting off its Pendleton-Portland service, but North Bend is ineligible for similar help.
The agency also is soliciting proposals from other carriers who might be interested in picking up the route, which is subsidized by the federal government under the “essential air service” program.
Horizon had been receiving annual subsidies of $748,440 to fly the route. But recently, the carrier announced that it would terminate the route by mid-October, along with direct service to Portland from Klamath Falls and North Bend-Coos Bay.
It cited increased fuel prices.
The Southwest Oregon Regional Airport in North Bend is in a different category than Pendleton. The airport is in the U.S. Department of Transportation Essential Air Service Program, put into effect with the Airline Deregulation Act of 1978, said Mike Boggs, an air service consultant for Mead & Hunt in Eugene. The EAS program was put into place to guarantee that small communities maintain a minimal level of air service. That doesn’t come with subsidies.
On June 27, Horizon sent a letter of intent to cease service at the airport as of Oct. 11 to the DOT, according to Boggs. The letter must be filed 90 days in advance of when the airline intends to leave. The airport has a 20-day response period after the DOT receives the letter. Normally the department would have to find a replacement airline to take over service, but since SkyWest signed on with the airport, Boggs said he was 90 percent sure there would be no need for one.
“They can leave the market without being replaced since SkyWest is coming,” Boggs said.
Oregon’s congressional delegation, including Sens. Gordon Smith and Ron Wyden and Peter DeFazio, have vowed to try to resolve the situation.
When it comes to Pendleton, the senators were quick to protest the carrier’s actions and asked for a meeting with William Ayers, the president and chief executive officer of the Alaska Air Group, which owns Horizon.
The Pendleton routes were to end by late October, leaving the city without air service. The action extends the service by at least 30 days.
The routes to Klamath Falls and North Bend-Coos Bay don’t have similar subsidies, said Jennifer Hoelzer, a Wyden spokeswoman.
Wednesday’s order from the Department of Transportation about the Pendleton route reads, “We must prohibit the carrier from terminating such service at the end of a 90-day notice period ... We will also require it to maintain service at the community for an initial 30-day period.”
— Staff Writer
Jo Rafferty contributed to this story.
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