Airport objects to Horizon pullout

By Jo Rafferty, Staff Writer
Friday, July 18, 2008 | 22 comment(s)

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The Coos County Airport District filed an objection Thursday over termination of commercial air service between Southwest Oregon Regional Airport and Portland.

The district’s Washington, D.C., attorney, Jonathan Blank, wrote to the U.S. Department of Transportation that the Portland route is critical to the people who live in the North Bend-Coos Bay area.

“It talks about how our community is tied to Portland,” Airport Executive Director Gary LeTellier said. “It’s a link. It’s important.”

Horizon Air, of the Alaska Air group, filed the notice of intent with DOT in late June, a few days before the grand opening of a new $20 million terminal at the North Bend airport. It announced Horizon would no longer provide service at the airport after Oct. 11. Airport board members have stewed about it ever since, filing the letter to DOT on the final day of the response period.

Now, it’s up to the DOT to make a determination on whether those flights qualify for an essential air service designation. The government program was enacted to guarantee small communities, where flights would not be profitable, maintain a minimal level of commercial service.

“We’ve had some indication that the Department of Transportation wants to talk right away,” LeTellier said, during a meeting with Airport District Chairman Mike Lehman and Commissioner Joe Benetti on Thursday in LeTellier’s office.

“We’re hoping for either a delay or cancellation of Horizon’s application,” he said.

The airport district’s response letter contends the North Bend airport’s last essential air service determination required at least two nonstop or one-stop flights to Portland every day of the week. Horizon Air has been operating three nonstop round-trip flights between North Bend and Portland Sundays through Fridays and two nonstop flights on Saturdays, with an extra flight during summer months.

Horizon’s termination notice said that SkyWest Airlines’ service to San Francisco, which began June 7, would be sufficient to satisfy essential air service requirements.

The airport district disagrees.

“The district rejects Horizon Air’s assertion that the service to San Francisco meets North Bend’s essential air service determination, and it submits that service to Portland is the core element of that service,” the district’s letter states.

The district argues that nearly 38,000 passengers — more than 100 per day — boarded planes at the North Bend airport in 2007. Most were business travelers, who were using same-day, round-trip service to Portland. It was the destination airport for 17,932 passengers in 2007. It was a connection point for another 6,459 passengers who flew to Seattle, in contrast to just 1,468 passengers who flew to San Francisco.

And more, it is a 220-mile, one-way drive to Portland, and the closest commercial airport at Eugene is more than 110 miles away.

“Cutting off North Bend’s air service to Portland, therefore, will only serve to economically isolate the region,” the letter states.

The final argument in the letter is that SkyWest only decided to provide its southbound service after the DOT agreed to provide a $400,000 grant. One of the grant’s objectives was to introduce competitive air service, with the goal of lowering air fares.

Lehman said there are more than 100 smaller airports across the country now faced with cuts in service. Horizon Air’s decision isn’t unprecedented. Other airlines are downsizing and focusing on providing service to the larger, hub airports because of high fuel prices. Horizon is switching nationwide from smaller 37-seat airplanes to planes that hold 76 passengers.

Horizon stated this week it did not have enough of the larger aircraft, and so it had to exclude the North Bend airport.

Lehman said airport officials are exploring every option for providing new service to Portland, including asking SkyWest to fly north.

“They’re focused on their southbound service,” he said.

In the meantime, airport managers are hoping for more time or DOT to deny Horizon Air’s cut.

“This is really big,” Lehman said. “If they did this here, it’s going to have national impact.”

“Hopefully, this will stall it. Maybe,” Benetti said.

“We’re cautiously optimistic,” LeTellier said.

(Staff Writer Jo Rafferty covers the business news for The World. She can be reached by calling 269-1222, ext. 236; or by e-mailing to jrafferty@theworldlink.com.)
Coming up


Do you still have questions about how the Horizon Air situation unfolded? Do want to know what’s next in the fight for flights?


On Saturday, The World will publish a recap of a question-and-answer session with Airport Executive Director Gary LeTellier, Coos County Airport District Chairman Mike Lehman and Airport District Commissioner Joe Benetti.
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Steve P. wrote on Jul 24, 2008 1:19 PM:

Bubba and others,

I look forward to seeing all of you at the board meeting today (Thursday July 24th 2008) at 5:30pm.

Bubba wrote on Jul 21, 2008 9:22 AM:

To Steve P,

My apologies, Steve. I stand corrected.

Steve P. wrote on Jul 19, 2008 1:21 PM:

Bubba, I have served the public half my working life either paid or volunteer. I was one of the first fireman in Coos County to be disabled in a fire department accident (1973). I have served in several volunteer positions and I am aware of the thankless job it is. I do stand up, and I do attend meetings. Always have. I just returned to Coos Bay in September 2007, but I will again be involved with the community. I stood up at the last Airport Commission meeting and if you attended or watch the cable replay you will most likely see me stand up again.

As to why I am reconsidering a recall ... The board may be able to force Horizon to stay through the DOT as the EAS was for a minimum of two PORTLAND flights a day seven day a week.

ononomous wrote on Jul 19, 2008 9:51 AM:

I haven't seen the new "beautiful" renovations to the airport. I am wondering if there will eventually be any flights for people to use this new "beautiful" facility?

Citizen wrote on Jul 19, 2008 7:41 AM:

So if a Horizon feels that they need to scale back operations in an area they see as not being profitable to serve the government will spend how much of our tax dollars to ensure Horizon is forced to?

How much of our tax dollars have been spent trying to keep Central Oregon and Pacific Railroad around? Has that been dropped so that the LNG terminal will just go away? That will make things alot easier for the politicians... Blah!

To Steve P wrote on Jul 18, 2008 10:29 PM:

Just wanted to point out that the airport could NOT have remained with the Port because the Port did not have enough money to continue to run the airport. They were desperate to get rid of the airport because they had their eggs in waaayy too many baskets. I just wanted to point out that there was no choice for the airport to stay or not stay with them. That's all...continue.

Resident wrote on Jul 18, 2008 7:04 PM:

Steve P., please explain. Why did this story cause you to reconsider? Can airport board members really demand that a private company whose managers say they don't have enough airplanes to fly into North Bend retain the service? Even if they are required to service North Bend by the old contract, does it bind them forever? Can't they say, "We're not servicing anyone with those planes"?

Steve P. wrote on Jul 18, 2008 5:07 PM:

I agree and if a recall happens I intend to step up and offer my services to the community by running for a position with the tax district. That is what it is, a taxing body created to raise revenue the port was unable to collect. The Airport should have remained a part of the port district in the first place.

CB Lifer wrote on Jul 18, 2008 4:46 PM:

If we had a bigger airport, you know, the extension everyone keeps voting down, maybe we could get a better deal, we'd have some competition going. But no, we can't improve our area. Let's just sit around complaining and watch it all die.
Ghost towns are kinda cool!

Bubba wrote on Jul 18, 2008 4:17 PM:

Steve P is not trying to do anything BUT complain. And since when is it a "personal attack" to tell someone that, if they don't like a situation, they should get involved in a real way and not just join the great chorus of whiners? This community needs more folks who are willing to stand up and take on a job and less people who's sole purpose is to stand on the sidelines and criticize.

It time you all STOPPED complaining and started getting involved. Get on a board or just attend the meetings.(I often go to public meetings and you can generally shoot a cannon ball through the room without hitting anyone). Volunteer to help out. Look around people, you need to step up now!

carol shw wrote on Jul 18, 2008 4:15 PM:

Good lord people, I totally agree with Bubba.

and... always sign my name to what I write.

To BuBBa wrote on Jul 18, 2008 3:47 PM:

Bubba,

Steve P. IS trying to do something. Why don't you take your personal attacks somewhere else?

Thanks in advance.

I recently flew through the new airport, and although it's pretty, it left a sick feeling in my stomach.

Holly wrote on Jul 18, 2008 3:22 PM:

Let's just dissolve the airport district, and while we are at it let's do away with the intergalactic port of Coos Bay. We would only owe what they have gotten us into so far . . .we should hurry before they buy the defunct RR and then the airline . . .they certainly aren't through putting us taxpayers in debt!

COOS OBSERVERm wrote on Jul 18, 2008 3:22 PM:

TO MIKE;;;IS THIS LEHMAN AGAIN?You sure seem negitive about a recall.These people running the airport seem to think their untouchable and can't be removed.They need to think again.It's not just their airport,its everybodies.

Gene wrote on Jul 18, 2008 2:13 PM:

Coos Bay and North Bend and two seperate communities that are too small to qualify for these type of demands. Stay seperate folks, keep the area as unimportant as possible.

Disenchanted North Bender wrote on Jul 18, 2008 1:38 PM:

PLEASE PLEASE START THE RECALL PETITION... this debacle is a perfect example of why the Good 'ole Boy network needs to be broken up NOW... What is Gary Letellier's compensation again? Why are we paying him that much? Why did the Board vote to give Skywest an additional guaranteed payment of $250K to secure these flights south? Why did the Board give the South Coast Development Council more money to advertise the airport? The Airport Board & the Airport Mgrs "deafness" and political indifference are to blame for their own demise... even if they aren't recalled... take solice in the fact that all of their political "lives" are over...

RECALL wrote on Jul 18, 2008 1:34 PM:

Don't Give up STEVE P .I along with many others are waiting for the RECALL PETITION.Agencies and other businesses like to make it confusing to fill recall papers.Would like to help,but can't for now.

Bubba wrote on Jul 18, 2008 12:41 PM:

Here's some advice for you, Steve P. Instead of blaming other people, why don't run for one of these unpaid positions and serve on a board? That way, when things out of your control go wrong, you can blame yourself .

You won't though. It's a lot easier to just complain, isn't it?

Reedsport wrote on Jul 18, 2008 12:27 PM:

Interesting to note there was a AP story earlier this week regarding Horizon opening up service from LA (thats El Lay to you transplants) and Mammoth Mountain, right around the time they're pulling out of North Bend.
Hmmmm.....has anyone figured it out yet?

Republican Girl wrote on Jul 18, 2008 12:19 PM:

In my opinion the C.C.A.D. are desperately trying to save face. They blew it and now are attempting to force Horizon to stay.

Mike wrote on Jul 18, 2008 12:14 PM:

Steve, it would be a futile effort. there is simply not enough people who are angry over the boards decisions.

You would end up costing taxpayers even more money to roll out a recall vote. And besides, unless you are ready to re-load the board with yourself, what is the point?

The nice thing about our form of government is you can throw off board members, but then what?

These guys have cost us millions for their mistakes and will continue to cost us millions.

Steve P. wrote on Jul 18, 2008 11:22 AM:

I am reconsidering a recall at this time. Many members of the board are incompetent and need recalled, but the retention of flights needs to take precedence over dissatisfaction with the board. I can't wait for the interview to be published Saturday. I need a little advice and support here to continue with the recall or drop it "for now".


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