Partnership with Avelo continues to send Salem soaring
The Salem-Willamette Valley Airport’s thriving partnership with Avelo Airlines continues to fly business into Salem. “We see this as one of the strongest initiatives to increase economic development in the Mid Valley over the next 10 years,” said John DeHart, CEO of Salem Aviation Fueling. The presence of commercial flight in Salem accounts for a number of positive developments.
First, it brings the convenience of commercial flight right into our own city. Dropping off a friend at PDX is a half-day endeavor, but the Salem-Willamette Valley Airport is a quick 15-minute drive for many Salem residents.
Second, it draws in valuable tourism dollars, connecting visitors to the ever-popular Oregon wine country that surrounds the city. Jim Bernau, founder and CEO of Willamette Valley Vineyards, explained that the Willamette Valley sits “among the most recognized and highest regarded wine regions in the world.” Avelo brought in 11,960 visitors to Salem in its first six months here. Many of those visitors undoubtedly came for a glass of world-class Pinot Noir.
Third, it attracts businesses and improves recruitment opportunities for those businesses. “Some companies will not locate their facility in a place that doesn’t have commercial air service,” DeHart said. Commercial flight connects Salem to a much larger network of business opportunities.
“Avelo really likes its relationship with Salem,” DeHart said. The Salem-Willamette Valley Airport offered Avelo a $1.2 million minimum revenue guarantee (MRG) for the first two years of service. If tickets don’t sell as expected, the MRG fund fills in the gaps. Federal grants covered 70% of the MRG fund, while hundreds of individuals and businesses pitched in for the remaining 30%. Only 25% of the fund has been used in the first year. Remaining funds will return to donors after the two-year mark.
Before Avelo, the Salem-Willamette Valley Airport hadn’t seen commercial flights since its partnership with Delta Airlines from 2007-2008. A common myth remains that Salem lost Delta because it couldn’t support a commercial airline. However, the Fly Salem Foundation explained that Delta pulled out of hundreds of airports in 2008 due to tripling oil prices and the impending recession.
Avelo’s first year has proved more promising than the 2008 mishap. DeHart remains hopeful that the partnership with Avelo could even lead to them establishing Salem as a base of operations. “That comes with 40-50 aviation-related jobs per aircraft,” DeHart said.
John Paskell, manager of the Salem-Willamette Valley Airport, hopes Avelo’s presence will expand the airport’s commercial flight network. They are currently advocating for opening routes to Phoenix and the Bay Area—two highly desirable routes according to their current data.
Avelo’s presence has already drastically bolstered the airport’s federal funding threshold. Before Avelo, the airport was allotted $150,000 in annual capital improvement grants. With Avelo, they will be eligible for $1.3 million beginning in fiscal year 2026. This funding will go toward projects like runway improvements and terminal expansion.
The Salem-Willamette Valley Airport’s partnership with Avelo continues to thrive, bolstering the local economy by significantly increasing connectivity. It attracts businesses, improves recruitment capabilities, draws in tourists, and kick-starts the process of funding the future of Salem air travel.