TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
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Commercial Air Service Update and Look Ahead
Ward(s): 2
Councilor(s): Nishioka
Neighborhood(s): SEMCA, SESNA
Result Area(s): Strong and Diverse Economy
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SUMMARY:
summary
A look back at the first full year of commercial air service in Salem, current progress, and air service development strategies going forward. A presentation by Jack Penning, Managing Partner for Volaire Aviation Consulting will accompany this brief report.
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ISSUE:
Information Only
RECOMMENDATION:
recommendation
Information Only
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FACTS AND FINDINGS:
Through September 30, 2024:
• A total of 54,810 passengers moved through to terminal building.
• Approximately half of the total passengers are visitors, or 27,405.
• The revenue guarantee fund has reimbursed $445,039 out of a total of $1.2M available, or 37%. The fund has $755,000 remaining for the remaining 12 months of the program.
• Over $19M of spending in the community is attributed to commercial air service (as of July 2024).
• Ultra-low-cost carriers (ULCCs) continue to take a larger share of the total passenger demand nationwide. ULCCs accounted for 14% of passengers flown in 2023, which is up from 6% in 2020 and 5% in 2010.
• Airport revenues are lower than anticipated in the first year, particularly in vehicle parking revenue. One year commercial service revenues total approximately $182,889 against $663,991 in operational expenses, including personnel.
BACKGROUND:
Avelo Airlines officially launched commercial air service at the Salem-Willamette Valley Airport on October 5, 2023, with two flights weekly to Las Vegas and Burbank. In the spring, Avelo added a third weekly flight to Burbank and launched new service to Sonoma County/Santa Rosa as a third destination. In September the service reverted to the original schedule of four flights weekly; seasonal increases in service are likely through the holidays and the spring/summer travel season.
City staff, community partners, and Volaire Aviation Consulting representatives continue recruiting efforts for additional air carriers and additional destinations with Avelo Airlines. The focus continues to be on key markets including other Los Angeles Basin airports, Phoenix/Mesa, San Diego, San Francisco Bay Area airports, and eastbound to Denver and Salt Lake City.
John Paskell
Airport Manager
Attachments:
1. None