Source: Portland Business Journal Author: 09/25/2009
Subject Concerned: Government Airlines Cargo Airport
Portland city commissioners will consider a proposal on Sep. 30 to steer US$300,000 of public money to a waiver program designed to retain international air service.
The Port of Portland previously granted a waiver worth US$500,000 annually to three carriers operating trans-continental service at the time - Lufthansa, Delta and Air China Cargo. The money pays landing fees.
City commissioners will consider steering US$300,000 that is currently used to subsidize rural flights in Coos Bay, North Bend and Klamath Falls towards the program.
The money is no longer needed to support the rural flights.
"The intention is to show the support for international air service at a time when load decline and a reduction in passengers has affected international flights," said Port spokeswoman Martha Richmond.
Portland's international traffic was down 20 percent in August and is down 28.6 percent year-to-date.
In July, the Port of Portland approved a one-time US$3.5 million payment to help retain Delta Air Lines service from Portland to Tokyo. The Port hopes the money will help retain the Asian service, which is considered critical to the region's economic health.
Delta also operates a direct flight to Amsterdam. In September, Lufthansa suspended direct service between Portland and Frankfurt.
Air China Cargo also recently reduced its direct service to China. It now operates service to Portland one day a week, down from five.
Portland is the smallest of 12 cities with direct service to Europe and Asia.