Council report says $3 million minimum needed to lure new airline to Salem

Depending on the airline, it would take subsidies of between $3 million and $5 million to bring a new commercial carrier to Salem.
That’s according to the city’s aviation consultant who has been in discussions with several airlines to bring service back to Salem – Willamette Valley Airport after Avelo Airlines abruptly announced its departure in July.
That information will be a topic of discussion during a Monday Salem City Council meeting. Councilors will get an update on the process of bringing a new commercial airline to Salem, a staff report from Salem Public Works Director Brian Martin said.
Last month, councilors indicated they wanted more information on what it would take to attract a new airline and what destinations the city would get out of a potential deal.
The report will focus on what it would take to bring in either an ultra-low-cost carrier like Avelo, or a legacy airline that is more expensive and well-established, like American Airlines.
Bringing in a low-cost carrier to fly to at least one destination would require the city to put up a lump sum of $3 million in subsidies for at least two years, Martin said.
Another avenue to bring a low-cost carrier, Martin said, is providing a half a million dollars in subsidies each year for a period of three years. However, that amount would only bring a carrier to the negotiating table and might not be enough to close a deal, he said.
Budget airlines typically focus more on vacation travel destinations and less on business travel, Martin said. He said the frequency of flights with such airlines is often only a few times per week to specific destinations.
Some likely destinations airlines would fly to and from Salem include the Los Angeles area, Las Vegas, the San Francisco Bay area, Phoenix, Arizona, and perhaps San Diego, California, Martin said.
Prior to Avelo’s departure, the airline flew twice a week to Burbank, California and Las Vegas.
Martin said if the subsidies are put together by the fall, air service could resume in Salem in either the summer or the fall of 2026 depending on the availability of pilots and aircraft.
Bringing a legacy airline that offers a greater variety of destinations would require the city to have $5 million or more in subsidies at the ready to offer for two or more years just to get to the negotiating table, Martin said.
“Destination cities with a legacy carrier would depend upon how Salem would fit into their…system,” Martin said. “A commencement of service date would depend on aircraft, pilot and gate availability.”
Martin said subsidies should be set aside sooner rather than later if the city wants to bring in a new airline by 2026. He said if getting the money together proves difficult, the city could apply for a federal Small Community Air Service Development grant. Applications for the grant are due in the fall, and grant awards are announced in the spring, Martin said. This same type of grant was used to make a deal with Avelo in 2023.
The city has until mid-November to get a commitment from an airline before the Transportation Security Administration considers removing passenger and baggage screening equipment from the airport.
How to participate
The meeting starts at 6 p.m. Monday, Sept. 8, and will be both in-person at the Loucks Auditorium at Salem Public Library, 585 Liberty St. S.E., and available to watch online. Members of the public can submit a comment for any item on the council agenda.
To comment remotely, sign up on the city website between 8 a.m. and 3 p.m. on Monday. The meeting will be livestreamed on YouTube in English and Spanish.
For written comments, email [email protected] before 5 p.m. on Monday, or submit on paper to the Customer Service Center at 440 Church Street, Suite 500. Include a statement indicating the comment is for the public record.
Committee appointments
On Monday, councilors will also consider appointing members to the Salem Budget Committee, the Downtown Advisory Board and the Public Art Commission.
Councilors will also consider appointing commercial real estate investor Nathan Levin to the Planning Commission either with or without an interview on Monday.
Councilors will consider appointing Ward 3 resident Jennifer Murray to a full term on the budget committee expiring on June 30, 2028.
Salem video producer Scott Hossner is considered for a full term expiring in Dec. 31, 2027 and Salem Realtor Eddie Zapien, for a partial term expiring in Dec. 31, 2025, on the Downtown Advisory Board.
Professional artist Jesus Escobar is being considered for a partial term on the Public Art Commission expiring on Dec. 31, 2026.
Councilors will also get a report on mayoral appointments to the Airport Advisory Commission, the Center 50+ Advisory Commission, the Historic Landmarks Commission and the Human Rights Commission.
Judith Kiss, regional supply chain manager for Home Depot, has been appointed to a full term on the Airport Advisory Commission expiring Dec. 31, 2027.
Retiree from the aerospace industry Kathleen Lempka, engineer Mike Morrow, professional interpreter Deanna Tapia, home health and hospice community outreach worker Lisa Haines, insurance broker Raymond Kelly and Church at the Park receptionist Cathryn Murray have been appointed to the Center 50+ Advisory Commission.
Lampka, Morrow, and Tapia have been appointed for full terms expiring on Dec. 31, 2027.
Haines, Kelly and Murray’s terms have no term limit associated with the position, a staff report said.
Matthew Miller, a general contractor, has been appointed to the Historic Landmarks Commission for a full term expiring on Dec. 31, 2027.
Nurse practitioner Cara Watson and home health care professional Ashley Rockenbrant have been appointed to full terms on the Human Rights Commission expiring on Dec. 31, 2027. Toni Maries, a business and policy analyst with the state of Oregon, business owner Jacqueline Roche and Dianne Docarmo, an accountant with the Oregon School Employees Association, have been appointed to partial terms.
Marie’s term expires Dec. 31, 2026, and Roche and Docarmo’s terms expire on Dec. 31, 2025.
Mayoral appointments are made based on recommendations from the Council Board and Commission Appointments Committee which includes Mayor Julie Hoy and Councilors Shane Matthews, Deanna Gwyn and Vanessa Nordyke.
Other items:
- Councilors will also hear a report Monday on a new 192-unit apartment complex at 1956 Davis Road S.
- Councilors will also hear a report on a new development with 49 units and a ground floor commercial space at 590 Willow St. N.E.
Contact reporter Joe Siess: [email protected] or 503-335-7790.
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Joe Siess is a reporter for Salem Reporter. Joe joined Salem Reporter in 2024 and primarily covers city and county government but loves surprises. Joe previously reported for the Redmond Spokesman, the Bulletin in Bend, Klamath Falls Herald and News and the Malheur Enterprise. He was born in Independence, MO, where the Oregon Trail officially starts, and grew up in the Kansas City area.







