TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
title
Update on Air Service Recruitment and Operations at the Salem-Willamette Valley Airport.
Ward(s): Ward 2
Councilor(s): Nishioka
Neighborhood(s): Southeast Mill Creek Neighborhood Association (SEMCA), Southeast Salem Neighborhood Association (SESNA)
Result Area(s): Strong and Diverse Economy
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SUMMARY:
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Air service recruitment for the Salem-Willamette Valley Airport remains active, supported by a community and local government-sponsored Minimum Revenue Guarantee (MRG) totaling $1.5 million. While recruitment efforts are ongoing, the airport’s TSA federalization status has changed after exceeding 90 days without commercial service.
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ISSUE:
Information Only
RECOMMENDATION:
recommendation
Information Only
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FACTS AND FINDINGS:
Air Service Recruitment
Airline recruitment efforts continue to be productive, with Salem standing out as an attractive option for West Coast route development. While short of offering a commitment, two airlines have responded positively to the $1.5 million MRG, acknowledging strong community support for air service.
Nationwide, the low-cost carrier landscape continues to evolve rapidly, with significant consolidation likely on the horizon. Airlines are adjusting their growth strategies and shortening their planning horizons. This, combined with ongoing challenges related to aircraft, crew, and airport gate availability, creates a fluid and unpredictable timeline.
Other regional carriers have expressed interest in serving Salem but would require a larger MRG package to mitigate initial risks. These carriers typically offer more frequent flights to larger hubs but operate at significantly higher operating costs. Securing a larger MRG package would likely require a grant from the Department of Transportation’s Small Community Air Service Development Program (SCASD). The application period for SCASD typically opens in the fall, with awards announced the following spring. However, the most recent application cycle did not open last fall because funding is pending congressional approval.
Airport Operations and Security
Defederalization
On December 15, 2025, the Transportation Security Administration (TSA) notified the Salem-Willamette Valley Airport that it had entered the early stages of “defederalization” after exceeding 90 days without commercial air service. This process involves three main components: reassignment of TSA staff, suspension of the Airport Security Program, and relocation of screening equipment.
- TSA screening staff, most of whom reside in or around Salem, have been offered the opportunity to relocate to Portland International Airport, Eugene Airport, or transfer to another airport within the U.S.
- Salem’s Airport Security Program was developed in compliance with federal regulations as a prerequisite for commercial air service. However, as a non-federalized airport, the TSA no longer has inspection and enforcement authority over the security program. These standards remain fundamental to airport security and will continue to be implemented and maintained without TSA oversight. The suspension of TSA’s inspection and enforcement authority took effect on December 30, 2025.
- Security screening equipment remains installed and functional at the Salem Airport. However, it has been listed in the TSA’s database as “available,” allowing other airports to request some or all of it. Additionally, the TSA may also elect to remove the equipment and store it in their warehouse for rapid deployment.
Re-Federalization
Prior to federalization, the Salem Airport had minimal security measures and limited ability to control access to the airfield. As a prerequisite to commercial service, the airport implemented a credentialling and access control system which required all tenants and users to obtain an airport-issued ID for airfield access. This level of airport security is considered an industry best practice and will remain in place after TSA’s defederalization.
In order to re-federalize the airport, staff will need to request certification and resubmit the Airport Security Program (prepared and approved prior to the initial certification), re-enroll existing credential holders into the TSA database, and collect biographical data for users that were not previously vetted through the TSA system. This process will take approximately 30 - 60 days. If the TSA screening equipment is reassigned to another airport, new replacement equipment will need to be requested. Equipment replacement could take approximately 60 - 120 days.
Federal Funding and Capital Projects
In 2025, the airport recorded more than 10,000 passenger enplanements, maintaining its FAA funding level of $1,300,000 per year through 2027. Additionally, by reaching the enplanement threshold, the airport will receive $1,300,000 in 2026 through the bipartisan Infrastructure Investment and Jobs Act.
FAA funding eligibility is based on passenger enplanements, not TSA federalization status. Previously, when operating as a general aviation airport, Salem received $150,000 per year from the FAA for capital improvement projects. With the additional revenue from commercial service, the airport plans to rehabilitate the north end of Taxiway A in 2026 and the entire length of Taxiway F in 2027.
The Airport Master Plan is entering its final stages, with committee and public reviews scheduled in the coming months. This project is expected to be completed this summer and will provide a 10-year roadmap for the airport’s development. Community members are encouraged to attend public outreach meetings and provide feedback when the plan is presented later this spring.
Airport Business and Property Development Updates
Development at the airport is progressing, with three privately owned aircraft hangars in various stages of construction and three more planned for the near future. These new hangars will generate revenue through ground lease agreements and property tax assessments.
Additionally, staff are evaluating proposals to lease the former Hertz service building and additional space within the former Hertz office building. If successful, these agreements will provide a meaningful source of revenue.
In addition to restarting commercial air service, airport staff would like to see a renewed emphasis on developing the business and corporate aviation sector aspect of the airport. This would include updating the airport’s Strategic Business Plan and identifying projects that would enhance facilities and amenities for aviation-centered business activities.
BACKGROUND:
Avelo Airlines operated commercial air service out of Salem-Willamette Valley Airport from October 2023 until August 2025, when it decided to phase out all its West Coast flight operations to 10 markets, including Salem. During the 22 months of commercial air service with Avelo, nearly 90,000 passengers traveled through the airport terminal, generating an estimated $32.5 million in economic benefit to the Mid-Willamette Valley.
On October 13, 2025, the City Council voted to approve a general fund contribution of $100,000 over three years to a Minimum Revenue Guarantee (MRG) fund, joining efforts with local businesses and Marion County to generate a total of $1.5 million in MRG. The MRG serves as a financial safety net against revenue shortfalls during the critical first few years of establishing new air service.
In December 2025, the TSA announced that, after 90 days without air service, it would begin reallocating resources and staff from the Salem Airport. This phased approach is ongoing, with the most recent action being the suspension of inspection authority at the airport on December 30, 2025.
Aaron Ison
Airport Manager (AIC)
Attachments:
None.