PORTLAND, Ore. (KOIN) — In the wake of Avelo Airlines’ decision to pull out of Salem, local leaders are discussing its potential financial impacts — and whether another company could take over.
Salem City Council is set to discuss an air service update during a work session scheduled for Aug. 18. But an information report from Monday’s meeting has revealed the airport fund could see a $238,000 decline in Fiscal Year 2026 due to the change in operations.
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Avelo previously announced it will stop flights at the Salem-Willamette Valley Airport on Sunday, Aug. 10, along with several other West Coast destinations later this year. While the low-cost airline attributed the reduction in service to its plans to expand operations along the East Coast, the announcement came after some community members pushed officials in Oregon’s capital city to terminate their contract with the company.
Several residents who testified against the agreement cited the airline’s decision to charter deportation flights for the U.S. Department of Homeland Security. In response, local leaders said abruptly terminating the deal could be “fiscally risky.”…