Portland partners with NB for flights

By Jo Rafferty, Staff Writer
Friday, September 19, 2008 | 21 comment(s)

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The city of Portland has pledged $200,000 to help the Coos County Airport District guarantee airline flights between Portland and North Bend.

Airport District commissioners have been scrambling to cover the revenue SkyWest Airlines said it needs to break even on its two round-trip flights a day between Southwest Oregon Regional Airport and Portland. The new air service will begin Oct. 12 at the North Bend airport, the day after Horizon Air’s final flight at the airport.

“We have a $200,000 commitment from the city of Portland to support those flights,” Chairman Mike Lehman said at Thursday’s district board meeting. “That will make up the rest of the $713,000.”

This is the first time airport Executive Director Gary LeTellier can remember Portland working with the airport.

“I don’t know what’s been done in the distant past,” LeTellier said. “It’s a coming together for us.”

LeTellier said it couldn’t have happened without  Gov. Ted Kulongoski’s coalition, made up of airport managers statewide, business leaders and government representatives. The group convened in July.

Dan Clem, director of the Oregon Department of Aviation, said that Portland’s mayor, Tom Potter, and mayor-elect, Sam Adams, introduced a resolution at last week’s city council meeting to support regional air service to Portland and allocate funds to assist their statewide partners. The resolution allows up to $300,000 to be divided between the North Bend and the Klamath Falls airports. Even though a specific amount wasn’t indicated for each of the airports, North Bend needed $213,000 and Klamath Falls, $76,000, to reach its goal of $620,000 to guarantee SkyWest’s revenue.

“The mayor and mayor-elect were very adamant about wanting to help,” Clem said on the phone on Thursday. “Given today’s marketing conditions, you have to partner. The coalition provided the bridge and the partnership.”

In a recent visit to North Bend, Clem said he saw a Horizon airplane that appeared to be full. The airline offers three or four round-trip flights to Portland a day. SkyWest is going to begin with two a day.

“I don’t think we’ll have to use hardly any, if any of this subsidy,” Clem said.

Commissioner Joe Benetti said that revenues the district makes from the Portland flights through landing fees, terminal fees, passenger facility charges and fuel taxes should counter any money they might have to pay SkyWest.

“You have the money pledged, but you also have to look at what the service will bring in,” he said.

In August, 3,379 passengers boarded Horizon airplanes to Portland, a 22.5 percent decrease compared to August 2007, according to a report by Airport Operations Manager Gene Cossey. However, 1,165 passengers flew on SkyWest aircraft between North Bend and San Francisco in August, with airplanes 72.2 percent full. This was an increase from July, when airplanes were 62.5 percent filled.

With the $213,000 commitment from Portland, that leaves $500,000 for the airport district  to raise. South Coast Development Council Director Ron Opitz said Thursday he received $115,000 in pledges from local businesses, including Sause Bros., the Coquille Economic Development Corp., Bandon Dunes Golf Resort, the Bay Area Chamber of Commerce, Umpqua Bank, US Bank, Southwestern Oregon Community College and Bay Area Hospital.

If there are no further donations, LeTellier said the remaining $385,000 would come from the airport district’s contingency and reserve funds already budgeted for the fiscal year. He said there is about $500,000 in the reserve fund now, with another $400,000 projected to go into the fund by June.

“We’re not really concerned that we’ll have to dig into those guarantees, except for the first month,” LeTellier said. “A lot of people don’t realize we’ve restored the northbound service.”

The Port of Portland also committed to give the airport district $100,000 to advertise SkyWest’s North Bend-Portland service. Additionally, local businesses contributed $102,000 in promotional donations.

Clem will fly into the North Bend airport from Portland on SkyWest’s inaugural flight, which will land at about 8:01 a.m. Oct. 12, and he is asking representatives of the city of Portland to join him.

“Hopefully, the community will fly,” Clem said.
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Just a thought wrote on Sep 25, 2008 2:36 PM:

I'm all for a good airport too but not a terminal so grand it should be in a much bigger town with more than one airline flying in and out.
And I am sure it was built to impress the golfers flying in to play at Bandon Dunes. Do you think the board and Mr. Letellier are getting free golf and food at Bandon Dunes for being so nice to them, building that nice terminal.
I wish someone would get something from Bandon Dunes, because the area isn't getting anything from them. And everyone is right about the golfers riding the vans from the airport straight to the golf course and spending all their money there, not in town. What is in our towns they would want to spend money on anyway. Bandon Dunes is probably ashamed to have the golfers ride through our shabby areas of run down homes with garbage in the yards, and cars all over yards that haven't run in years and have blackberries growing in them. Instead of vans maybe they should get helecopters to fly them to the golf course and bypass the whole area.

ironic wrote on Sep 25, 2008 1:08 PM:

that most of these poor people who are complaining about "Bandon Dunes getting tax breaks" or "only the rich benefit" will still vote republican, even though it's highly against their own economic self interest. "I'd rather stay in poverty as long as I can keep my guns and their is no black man in office" right?

Citizen wrote on Sep 24, 2008 4:45 PM:

Looks like the airport is okay now. Maybe some breathing room for those responsible for it's operation can be given.

As for tax dollars going to the airport I am all for it. I can think of a million other things our tax dollars should not go for. Doctorate holders drawing unemployment checks is one. Illegal alliens drawing welfare checks.

ToAllNegatives wrote on Sep 23, 2008 11:19 AM:

TO Just Wondering. Fortunately I only have to drive through your area for work.I don't shop there, won't eat there and would die before I had to live there. I prefer to live in a more "educated" area that is also clean.

Just wondering wrote on Sep 23, 2008 10:47 AM:

To Totallnegatives: It kinda sorta sounds like to me that if you are so disgusted with OUR area, why don't you just go get those windows tinted, roll 'em up and move on out of here! You sound miserable.

ToAllNegatives wrote on Sep 23, 2008 8:53 AM:

What do you expect? Why would BD want any one to rent a car/taxi in CB/NB that smells like smoke? Go to area restaurants that have either no decor or class? Shop where? Pony VIllage? What a joke. BD had no choice but to build a city of their own since ours is trash. As for BD having increased our property taxes, the system here doesnt work like that Taxpayer. Oregon's prop. taxes go up every year regardless. Stop blaming BD for CB/NB problems. Clean up your cities and maybe someone will want to patronize your business'. Until then I wish I had tinted windows on my vehicle so I didnt have to look at the city!!!

ToothlessCajun wrote on Sep 22, 2008 4:57 PM:

The financially privileged will take advantage of you for as long as you let them. BD will continue to pay minimum wage until the people decide they deserve more. 20 million dollar jets w/ ceo golfers will land for free until you decide to charge a fee. Demand equality, stop catering to the one who throws out a bone now & then.

What a Shame wrote on Sep 22, 2008 1:14 PM:

To RB.....Don't be so stupid. What you are talking about takes a priority on any plane, even if the airline has to kick off a passenger to make room for your medical supplies. So even if we had one plane coming in here, in would have medical supplies on it before it would have a passenger. And for the Bandon Dunes Sandtrap, you will never convience me that the NB airport does not benifit you. Whatever happened to the idea of yours to build your own airport so all of the dogooders that come to the Sandtrap do not have to lower themselves to have to mess around with all of the pieons at the NB airport. and to have to meet the dogooders there and have to drive them all the way from the airport to the Sandtrap in a van. Well I never...... how depressing.....ha ha...dogooders get your own limo, own driver. maybe even your own golf corse. You don't spend your money in CB or NB or Bandon or Coquille anyway NOT helping our economy, you are spending it at the SANDTRAP. get it????? I sure hope so

RB wrote on Sep 21, 2008 11:34 AM:

Does any of you go to the doctor? Did you ever get a test from the doctors office? Ever get blood? Some of these things are sent back and forth by those same planes that you are alternately complaining for and against.

There are also people in the area that work out of the area and use those planes to get home every once in a while. If the flights weren't there, those people might have to move, or at least take a lot longer to get back and forth.

Most of us benifit in some way or another. Yes, BD could do more. Keep working on them. Yes our politicians should do more, keep working on them.

We need the airport, we need an economy that works, and we need politicians that can help us, not just themselves.
rb

just wondering wrote on Sep 20, 2008 11:12 AM:

Bandon Dunes IS the one that benefits financially the most from all of this, no one else! Neverhappy, you state that they bring in all this money into our economy. How so? They don't rent cars from our LOCAL car rental because BD have the luxury buses that pick them up!Bandon Dunes is all inclusive, they have their own bars, eatery, golf pro shop, even their own cabins/hotel. So in all actuality once the golfers are there they really don't have to spend their $$ any where else but BD. As far as them contributing to the fund to get this flight to come here, they were included in seven other businesses that donated a total of $115,000! They should have done that much or more on their own!

Flyer wrote on Sep 20, 2008 9:55 AM:

I don't blame Bandon Dunes for any of the airport problems, and they do employ people locally, but they also get a lot of perks. They don't pay full or any property taxes from what I have read in the paper, and the airplanes are full of men coming to golf there. I don't think the golfers are spending any money in the area, ONLY at Bandon Dunes where they stay and eat and play golf.
So it seems only right that they should support the airport that brings in their golfers, and takes up seats on the planes so other locals can't get on flights they need out of here.
I am sure one of the reasons the airport board and Mr. LeTellier, decided to build the new terminal was to
impress the golfers flying in here.
I doubt they would admit that though.

Sick and tired wrote on Sep 19, 2008 5:50 PM:

Bandon Dunes does get a tax break on their property taxes, I am not sure if they pay any at all. Actually they were given the break without even asking for it. Which I think is pretty dumb.
But do the rest of us who are broke get any kind of break on our taxes, no, !!!!
Only the rich get freebies.....

NATIVE wrote on Sep 19, 2008 4:51 PM:

Thank you one and all for your hard work and effort.Hope we all learned a lesson from this. Thank you

give it up wrote on Sep 19, 2008 3:55 PM:

The idiot Republican president just bailed out companies who were greedy. All this Board did was agree they would give money IF the airline dropped below break even. Good news is they may not have to spend much if any of the money. MaryM is a typical Coos Naysayer - "not sure what they did but, pretty sure they were wrong." Bet she has never put her name out there - probably doesn't even vote. Wah wah wah - keep whining

What a Shame wrote on Sep 19, 2008 3:44 PM:

Why should we the taxpayer pay so that some rich joe blowhard can come and play golf at the discusting Bandon Dunes Sandtrap. What a total waste of MY MONEY. I also agree with "Curious". Someone should look into this transaction and make sure that it is legal. I pay my taxes to the college only because I have to. To bad taxpayers don't have a choice to where their money is going, other than by the preplanned, onesided vote.

Curious wrote on Sep 19, 2008 3:17 PM:

MARYM,
Please do not insult drunken sailors.

NeverHappy wrote on Sep 19, 2008 2:22 PM:

MaryM- 1st everyone is all upset about NO flights to Portland...and blame Bandon Dunes, now you blame BD for YOUR taxes being raised? BD pays taxes also, it also brings money into this pitiful financially depressed area. The only statement you have correct is in Electing New GOv Officials. Just because a company can make some money around this area doesnt mean they should have to fork out their profits to YOU.No wonder business' dont want to come here.

Kay wrote on Sep 19, 2008 1:55 PM:

Why Marym, you silly thing, those black and golden limos don't HAVE to pay, once again, you will though.

Taxpayer wrote on Sep 19, 2008 12:55 PM:

I too keep wondering why BANDON DUNES never steps up to the plate in all this airport stuff, when they are the ones making 'profit' from all their players riding on the planes??????
Just what besides giving a few people jobs, DO they do for our area.
A very very rich owner, who can certainly afford to help our area, and I never read anything about him doing that.
Instead he gets tax breaks for his business and just keeps filling his pockets, while the rest of us make up his tax bill, with HIGHER TAXES ON OUR PROPERTY. Really fair, right.
How about opening your wallet to at least help our airport for bringing in all your golfers ? ? ? ?

MaryM wrote on Sep 19, 2008 11:44 AM:

You Mr. and Mrs. taxpayer will subsidize the airport and airline. Who benefits most from flights in and out of North Bend? Why it's Bandon Dunes where they have very deep pockets! It's time for them to share the taxpayers pain. Starting in November, let's elect people who will represent us and not spend our tax money like they were drunk sailors on leave.

Curious wrote on Sep 19, 2008 10:30 AM:

What is a taxpayer funded institution like SWOCC doing donating money to another government agency to be given to a private enterprise? The money taken from taxpayers and given to SWOCC is for education and not charity.


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