Questions remain following SkyWest announcement

By Jo Rafferty,Staff Writer
Friday, August 29, 2008 | 10 comment(s)

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A day after revealing that SkyWest Airlines would replace Horizon Air for northbound service, Southwest Oregon Regional Airport officials now shift their focus to fundraising.

Officials announced Thursday that SkyWest will provide air service between North Bend and Portland beginning Oct. 12 — the day after Horizon Air’s northbound service ends.

“There will be no interruption in service from here to Portland,” said Helen Brunell Mineau, Coos County Airport District vice chairwoman, during a press conference. “It’s really been an effort to get this in place.”

The deal with SkyWest, capping a two-month scramble by airport staff, commissioners, and other local and state officials, includes a $713,136 revenue guarantee to the airline.

Brunell Mineau said Thursday that airport commissioners are not ready to release the information on funding sources. But Gov. Ted Kulongoski issued a press release later Thursday that implied the city of Portland would be a key funding source.

“In addition to the local dollars, federal grants and assistance from Mayor Tom Potter and Commissioner Sam Adams from the city of Portland helped finalize the contract,” the press release said. “The Port of Portland also committed to providing marketing support to help make sure the new service is a success.”

On Wednesday, district chairman Mike Lehman said $200,000 would come from a funding source from out of the area, and the rest would be paid for with contributions or taken from the airport district’s budget.

Thursday, Lehman said he was not ready to release the sources of funding.

Gary LeTellier, airport executive director, said the extent of help from Portland’s city and port would be divulged soon.

“It’s a substantial amount, and I think it opens up all kinds of opportunities for the community,” LeTellier said.

In the agreement between the district and SkyWest, a forecast indicated the district could pay $21,492 to $60,568 per month for a year, the length of the contract.

Commissioner Joe Benetti said the district won’t have to pay anything to the airline if enough passengers board the planes.

“As long as they’re 64 percent filled, which we believe we can do, there will be no obligation to do that,” Benetti said.

Phone calls to the mayor of Portland and the Port of Portland were not returned Thursday.

SkyWest is providing the Portland flights in addition to its flights between San Francisco and North Bend.

The new flights will depart North Bend at 6 a.m. and 2:12 p.m., with return trips from Portland departing at 7:12 a.m. and 4:31 p.m. Arrival times are less than an hour later.

SkyWest’s flights will be pricier than Horizon’s. According to the airline’s Web site, round-trip flights via SkyWest will cost $305. Horizon’s are $199.

Tickets are available now for flights starting Oct. 12 at www.united.com.

Hank Hickox, general manager of Bandon Dunes Golf Resort, who has been involved throughout the negotiation process, said he will miss Horizon, but he welcomed the new air carrier.

“With Horizon, we have learned they are in a very competitive situation in all of their routes,” Hickox said. “SkyWest has been helping smaller cities. Their aircraft can be used economically. While the airport had to do some arranging, we may well have found a better long-term business partner.”
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DL wrote on Sep 19, 2008 1:50 PM:

SkyWest is an indepentently owned regional carrier that flies under contracts for United (and Delta). Their on-time performace is usually the best in the U.S. (with the exception of Hawaiian Airlines) and customer serivce is one of the best in the industry. I think it is great that we are getting service from them to both Portland and San Francisco...having more options and great connections with United is going to be a plus.

nek wrote on Sep 6, 2008 10:00 AM:

well ... they need 20 pass per flight. My guess is they are hoping for out of the area golf travel to fill these seats not the PDX folks.
Just cause they fly for United, does not mean you will get the same shi!!y service. SkyWest is above par.

Thank you Linus wrote on Aug 29, 2008 10:59 PM:

Well said Linus! We were better off with what we had. It might not have been up to Hank Hickox's standards, but it was ours, it got the job done, it was affordable, and it served the majority of the needs for this area. Now we're saddled with this new terminal, more expensive but less relevant flights...and for what?

den wrote on Aug 29, 2008 5:18 PM:

Another perspective: Mr. Hickox and company, Bandon Dunes, came here to increase their bottom line. Have now given us two flights to Portland, instead of three with the loss of the old carrier. Increase flight fee’s from $199 to $305. Received County Commissioners cooperation with a tax subsidy. Airport board build them a brand-new airport terminal and tower, and remodel the old terminal with tax/fee/tax dollars, while providing the old terminal for the private jet carrier golfer terminal. Out County will be subsidizing the new air carrier, first with $250,000, and now an additional $713,136, that is almost a million. The board members are looking for some of that money from their budget. That is the Coos County tax dollars paid for airport operation. Oh, we now have new partners in the area, thanks to the current partners involved, the addition of the City of Portland. Next there will be a rapid transit system straight to the golf course from the airport. Look at it this way, the citizens of Coos County could have gotten a screwing on all these shenanigans. And may, yet!

Linus wrote on Aug 29, 2008 2:55 PM:

I don't see exactly how retaining two daily northbound commercial flights--which this town has had since 1982--is going to "open up all kinds of opportunities for the community."

It seems more like this whole fiasco boils down to taxpayers shelling out upwards of $20 million (not including the "administrative" salaries involved in all this brilliant logistical maneuvering) for something we already had: a terminal that can handle a few commercial flights a day from a single airline.

I guess having a couple new southbound flights to San Francisco makes it all worthwhile? Personally, I never thought the 101 South was such a bad drive.

Mark Smith wrote on Aug 29, 2008 2:33 PM:

I love it when we get in the business of subsidising business. Pretty soon the goverment will just be business and nothing else.

Hannah wrote on Aug 29, 2008 2:28 PM:

I'm just glad there won't be an interruption for the Portland flights.

Thomas wrote on Aug 29, 2008 2:04 PM:

Why do we always have to tie a porkchop around our neck to get the dog to play with us???

Questions Remain wrote on Aug 29, 2008 1:55 PM:

No kidding... exactly how many people in Southwestern Oregon can afford a $305 roundtrip airfare to Portland? I hope there are alot of Portland to Coos Bay passengers willing to pay this fare... Where is the marketing data to support the notion that they are going to fill up at least 64% of the seats... get your check book out folks...you can buy alot of gas for $305 bucks...

kim wrote on Aug 29, 2008 12:30 PM:

Is Skywest part of United Airlines? If so don't expect decent service-just high prices.

This is definately not the best for our area.


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