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Avelo's exit leaves Salem weighing incentives, minimum-revenue guarantees and next steps for airport service
Summary
Salem city officials, tourism groups and airport workers told council on July 28 that Avelo's impending exit leaves the city with a narrow window to recruit a replacement carrier and that a dedicated incentive pool could be necessary to land new routes.
Salem city officials, business leaders and airport workers urged the City Council on Monday to move quickly to secure replacement commercial air service after Avelo Airlines announced it will end flights from Salem Willamette Valley Airport in August.
Local tourism and business representatives asked the council to consider a minimum-revenue-guarantee (MRG) or other incentive package so a new carrier will schedule routes from Salem for spring-summer 2026.
James Hutchins, a longtime airline and airport manager involved in prior Salem air-service efforts, said Avelo —took a chance on Salem, and it worked out really well,— and that the market data from Avelo's service —proves it— Salem can sustain commercial flights. Brent DeHart, a local business advocate, said the city's earlier investment to modernize the terminal unlocked more than $3 million in federal funds and, using state visitor-spending models, he estimated approximately $32 million in visitor spending tied to 18 months of service.
Janelle McLaughlin, who worked at the airport ticket counter, described passengers who used the flights as —young families, large numbers of grandparents— and many Spanish-speaking travelers who used the Burbank route for family trips. She said the flights served populations that had previously lacked local options, and staff heard repeated thanks from passengers.
Angie Villery, president and CEO of Travel Salem, told council she's working to recruit carriers and said the door remains open with at least one airline that could provide key routes such as Phoenix and San Francisco. Villery said a commonly cited range for an MRG is roughly $1 million for a single route and up to $3 million for several routes, depending on the carrier and phase-in schedule; she said carriers have offered to phase incentives across three years in some proposals.
Speakers cautioned that timing is tight. Brent DeHart said competing airports and carriers were able to move quickly because they had incentive funds ready. City staff said securing an MRG would require discussions about sources for the incentive pool; earlier seed funds for Avelo came from a mix of federal and local/private sources and were not direct city operating funds.
Councilors asked staff to bring a work session in August focused on commercial air service with financial details, runway and federal-funding implications, and a fuller accounting of operating impacts. Staff said the council will receive more detailed financial data at that work session, including projected revenue impacts to the airport and general fund, and that the August 18 work session will be targeted to the issue.
No council action was taken Monday; several public commentators urged expedited council action to make Salem competitive for spring/summer 2026 airline schedules.
