NorthwestJanuary 17, 2024

United Airlines wants a minimum revenue guarantee from Lewiston airport to continue route that started three years ago

Isaacs
Isaacs
Gary Peters
Gary Peters

Lewiston will lose its direct flights on United Airlines to and from Denver without a minimum revenue guarantee agreement for the route.

That news was shared Tuesday by Lewiston-Nez Perce County Regional Airport Director Michael Isaacs at a joint meeting of elected officials.

The airport authority board, the Lewiston City Council and the Nez Perce County Commission were present.

United is seeking the subsidy after it lost $5.5 million in 2023 on the Lewiston-Denver route that debuted in 2021, he said.

The airline plays a pivotal role at the Lewiston airport, where it serves 47% of all passengers, Isaacs said.

“I can tell you for certain if we don’t support this and we lose it, they won’t come back,” said Airport Board Chairperson Gary Peters.

No decision was made on the proposal at the meeting. The Lewiston City Council plans to consider the matter at one of two upcoming, previously scheduled meetings Thursday or Monday.

United wants a decision by the end of the month, Isaacs said.

Under the proposed one-year agreement, United would be guaranteed a certain amount of revenue on the Lewiston-Denver flights. The amount of support would vary based on how many seats were sold for each flight, Isaacs said.

The maximum amount United would receive would be $4.03 million for the year, but the amount could be significantly less, he said.

If flights were 65% full, the subsidy would be $2.95 million for the year, while if they were 85% full, the subsidy would be $618,715, according to a chart Isaacs presented at the meeting.

The Denver-Lewiston flights were 87% full in the spring, fall and winter and 60% full in the summer in 2023, according to Isaac’s presentation.

“When the planes are full, there’s not a lot of risk,” Isaacs said.

Those numbers are expected to climb, partly because of how the agreement is drafted, he said.

The 50-seat jets United flies on the route can only carry 37 passengers if the temperature is 90 degrees or higher, he said.

The flights arrive and depart midday when temperatures are warmer. That timing also makes it difficult for passengers to catch Denver flights to other destinations, Isaacs said.

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If the revenue guarantee is finalized, United’s departure from Lewiston to Denver will be first thing in the morning and its arrival to Lewiston from Denver will be in the evening, he said.

That will limit instances where passengers have to be pulled from flights because of high temperatures and make it easier for passengers to arrive in Denver for connecting flights.

The timing of the flights isn’t the only issue. Fuel costs have risen to $330,000 per month for the Lewiston-Denver route, Isaacs said.

When United debuted in Lewiston, fuel prices were about $1.50 per gallon and now they’re about $3.50 per gallon, Peters said.

If the subsidies are approved, it will be the second round of incentives for the United flights in Lewiston.

In 2021, Nez Perce County agreed to provide $4 million over three years to United as part of the deal that brought the airline to Lewiston.

Given that the county covered that funding, “it sounds like it’s maybe the city’s turn to help this round,” Peters said.

The airport is owned jointly by the city of Lewiston and Nez Perce County.

Subsidizing airline service at small airports like Lewiston that serve less than 100,000 passengers is common, Isaacs said.

That United is giving the Lewiston-Clarkston Valley an opportunity to preserve the service is a testimony to the strong relationship the airline has with the Lewiston airport, Peters said.

Frequently airlines communicate they are withdrawing flights with emails and don’t provide any options to negotiate, he said.

In this case, the revenue guarantee agreement, Peters said, would be a temporary measure that will eventually lead to a sustainable service.

“(United is) already talking to us about a second destination out of Lewiston,” he said.

Over time, Peters said he anticipates that United will take steps to make the Denver service more efficient such as replacing the 50-passenger plane with a 75-passenger aircraft.

“We’re trying to step up and show them that we want them as bad as they want to be here,” Peters said. “So it’s a big decision for all of you.”

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.

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