SALEM, Ore. — After months of uncertainty following Avelo Airlines’ abrupt West Coast shutdown, Salem city leaders have taken decisive action to bring commercial air service back to the Salem–Willamette Valley Airport (SLE).
In a 6–3 vote on Oct. 13, the Salem City Council approved up to $300,000 over three years to help attract a new airline, a move designed to safeguard both the airport’s federal status and its long-term viability. The funds will be drawn from existing airport operation allocations — $100,000 per year through 2028 — and combined with nearly $1.2 million raised by community partners, including Travel Salem, Fly Salem, and Marion County.
Together, those contributions form a $1.5 million Minimum Revenue Guarantee (MRG) — essentially a financial safety net to help offset potential revenue shortfalls for whichever airline agrees to restore flights to and from Salem.
Avoiding Federal Downgrade
The timing is critical. Without a new carrier by mid-November 2025, Salem risks losing its federalized airport status — a change that would trigger the removal of TSA screening equipment and make it far more difficult to re-establish passenger service in the future. The downgrade could also mean layoffs for airport staff and the loss of momentum gained through recent multimillion-dollar terminal and infrastructure upgrades.
Councilor Paul Tigan, who voted in favor, underscored the stakes: “We have made a significant commitment and we will continue to make a significant commitment as this moves forward.”
The city’s investment, he said, is not merely about convenience but about protecting the public’s prior investments — including runway improvements, terminal modernization, and the acquisition of federal safety equipment that collectively position Salem for long-term growth.
Balancing Priorities
Not all councilors agreed. Micki Varney, among the dissenting votes, argued that residents’ priorities — particularly around safety and livability — do not align with this kind of spending.
“Safety and livability were the things identified on the survey,” Varney said. “I didn’t see commercial air on the survey. At this point I can’t support this just because we are investing in something the community hasn’t broadly asked for.”
Despite the disagreement, supporters insist the subsidy represents a short-term investment in economic stability. Business leaders have long argued that air service is vital to regional competitiveness, particularly for companies based in the mid-Willamette Valley that currently rely on airports in Portland or Eugene for client travel and logistics.
Community and Business Implications
The return of commercial flights could reconnect Salem’s business community to major markets and strengthen tourism — a key goal of Travel Salem, which has helped coordinate the fundraising effort. Prior service by Avelo Airlines in 2023 and 2024 demonstrated strong passenger demand but faltered when the airline reorganized its national routes.
An operational SLE would reduce travel friction for local executives, manufacturers, and government staff — many of whom face long commutes for flights out of PDX. For small and mid-sized companies, the restoration of direct air service could improve recruitment, client access, and regional visibility.
If the plan succeeds, Salem could re-emerge as a central hub for Willamette Valley travel, reclaiming an asset that was dormant for more than a decade before Avelo’s brief tenure.
City staff are expected to begin discussions with potential carriers immediately, with an emphasis on securing at least one airline agreement before the November deadline.
A Test for Salem’s Growth Strategy
For many observers, this vote represents more than a transportation issue — it’s a test of Salem’s broader economic vision. Restoring air service could signal that the city is ready to compete not just as Oregon’s capital, but as a self-sustaining regional center with the infrastructure and confidence to match.
Whether residents agree on the spending or not, the council’s action ensures that — for now — Salem is still in the race to bring its airport back to life.
