Sponsored by Forest Grove Economic Development
Home Back Issues April 2011 Seaport stays airborne after losing Astoria

Seaport stays airborne after losing Astoria

| Print |  Email
Articles - April 2011
Thursday, March 24, 2011

 

0411_Seaport
Seaport is adding service between Portland and Salem, and expanding its business outside of Oregon.

Seaport Airlines president Rob McKinney has a lot to think about these days.

In spite of the recent cancellation of Seaport’s mostly empty daily flights between Portland and Astoria, the Portland-based airline is growing rapidly — mostly outside of Oregon. It has expanded from two states to seven in two and a half years, with 115 daily flights, and recently announced plans to begin twice-daily service between Portland and Salem. The business employs about 200 people nationally including 65 pilots who specialize in short flights that avoid the hassle of Transportation Security Administration screening.

But much of Seaport’s growth has come from subsidies that belt-tightening politicians may choose to end given widespread concerns about government spending. Seaport flies subsidized “essential air services” routes to small towns in Tennessee, Arkansas and Missouri and is on the verge of moving into Texas as well. McKinney says he “couldn’t imagine them ending [essential air service subsidies] tomorrow,” but he acknowledges that “any federal program is in jeopardy” in the current political climate.

Seaport flies just one essential air service flight in Oregon, to Pendleton. The company’s Astoria and Newport flights were supported by a two-year state subsidy from ConnectOregon that ran out in March. Passenger counts justified continuing the service in Newport, but not in Astoria. McKinney says canceling the Astoria service was “emotionally hard for us as an Oregon company,” but “not financially devastating.” The move resulted in five layoffs.

Given that backdrop, Seaport is moving to diversify again. The company was formed in June 2008 with backing from Oregon angel investors to provide quick and easy business flights between Portland and Seattle. But a steep drop in travel budgets during the recession forced the company to shift into subsidized rural service.

Now that governments are cutting back, the airline is considering adding new flights that do not rely on subsidies, including possible moves into larger urban markets such as Dallas, Phoenix and San Diego.

McKinney says the daily flights between Portland and Salem would be TSA-free and unsubsidized, similar to Seaport’s flights in Alaska and between Portland and Seattle. The flights would restore commercial service to an airport currently used only for general aviation and the Oregon Air National Guard.

BEN JACKLET
 

More Articles

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

Community colleges and sustainability

Contributed Blogs
Thursday, July 31, 2014
sustainabilityBY MARY SPILDE | OB GUEST CONTRIBUTOR

Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.


Read more...

Q&A: David Lively of Organically Grown Co.

News
Tuesday, July 01, 2014
OGCLogoBY HANNAH WALLACE | OB BLOGGER

Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.


Read more...

The Scott Kveton affair

News
Wednesday, July 09, 2014
ScottKvetonBY LINDA BAKER | OB EDITOR

Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.


Read more...

South Waterfront's revenge

News
Thursday, July 24, 2014
MoodyAveBY LINDA BAKER | OB EDITOR

Remember the naysayers?  Those who called the South Waterfront aerial tram a boondoggle?  Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

The global challenge

News
Friday, June 27, 2014
062714 thumb globalmarketBY JASON NORRIS | OB BLOGGER

Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS