NorthwestSeptember 4, 2024

United Airlines has issued invoice for only the first quarter of revenue plan

Elaine Williams Lewiston Tribune

United Airlines has issued the invoice for the only first quarter of a revenue guarantee for its direct Denver-Lewiston flights

And the airline has given no indication about what subsidy it might want, if any, when the revenue guarantee ends Sept. 30.

The single bill that the city has received totaled $1.4 million and was for last October, November and December, said Lewiston Mayor Dan Johnson on Monday.

The invoice was dated July 26, he said.

The revenue guarantee, which was retroactive to October 2023, was approved by the Lewiston City Council and the mayor in May after United stated it had lost $5.5 million on its Lewiston flights in 2023.

That update followed a city council meeting Tuesday where Michael Isaacs, director of the Lewiston-Nez Perce County Regional Airport, made a presentation about air service. The council took what he shared under advisement.

The city’s elected officials also discussed the future of the defunct Bert Lipps Pool as well as a potential joint location for city government near the Lewiston Center Mall and McSorley Elementary School.

The maximum the city, which owns the airport with Nez Perce County, will pay under the revenue guarantee will be $4 million based on factors such as fuel costs and how full flights are.

But airport officials had told the council and mayor when they approved the revenue guarantee the amount might be closer to $1 million.

United hasn’t shared if it will seek a new revenue guarantee when this one expires, Isaacs said.

Prior to the revenue guarantee, United received $4 million from Nez Perce County over three years as part of the deal that brought the airline to Lewiston in 2021. The county’s $4 million came from its $7.8 million allocation from the federal American Rescue Plan Act.

A number of factors are involved in what’s happening now on the Denver-Lewiston route that costs United $12 million annually to operate, Isaacs said.

In 2021, just before United entered the Lewiston market, the average one-way Lewiston fare was $253 or 33% above the national average, he said.

In the first three months of this year, the average Lewiston fare was $243 or 12% below the national average, Isaacs said.

Residents of the region who comprise almost 60% of Lewiston airport users are the biggest beneficiaries of those savings, Isaacs said.

In addition to United’s direct Denver flights, Lewiston has direct Salt Lake City and Seattle flights on Delta, which are not subsidized.

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The Salt Lake City flights were introduced in 2005. The Delta Seattle flights debuted in October of last year, filling a gap that’s existed since 2018 when Alaska withdrew its Seattle flights.

The cost of fuel for the Denver flights has risen from $3.50 to $4.18 per gallon, while wages for United pilots climbed by 40% this year, Isaacs said.

At the same time, United grappled with the groundings of the Boeing 737-Max 9 jetliners in its fleet after an Alaska Airlines aircraft blew out a portion of its fuselage shortly after take off in January, Isaacs said.

One issue that has been resolved by a schedule change was limiting the number of passengers on United flights in high temperatures, Isaacs said. The 50-seat jets United flies can only carry 37 passengers if the temperature is 90 degrees or higher.

The flights had arrived and departed midday. Now they depart from Lewiston early in the morning for Denver and make the return trip from Denver to Lewiston in the evening.

In other business, the council:

— Plans to ask its Parks and Recreation Commission to examine its priorities for pools based on the 80-year-old Bert Lipps pool being beyond repair and the condition of Orchards Pool.

The majority of those who took a recent survey supported replacing Bert Lipps Pool and adding a splash pad on the site.

But Lewiston’s elected officials noted Monday, that the survey didn’t examine the viability of Orchards Pool, which opened in the late 1960s. That facility needs a new liner estimated to cost $150,000, said Parks and Recreation Director Tim Barker.

It also didn’t take into account new information — that the terms of a federal grant allow the pool to be replaced with outdoor recreation, not outdoor water recreation as previously thought, Barker said.

The grant was used to pay for the rehabilitation of the pool’s mechanical system in the early 1990s.

— Talked about the benefits and challenges of putting the operations of the police station, city hall and the Bell Building into a single location.

The discussion was based on a report emailed to elected officials. It has not been disclosed to the public based on a provision in Idaho code that doesn’t require the release of records involving the appraisal of property prior to its acquisition, sale or lease by a public agency, Johnson said.

A redacted copy may be ready as early as today, he said.

The split location creates challenges for citizens who go to city hall at 1134 F St., and learn they can pay their utility bill at that location, but some services such as building permits are more than a half-mile away at the Bell Building at 215 D St., Johnson said.

It’s also inefficient for city employees because it complicates tasks such as setting up meetings that involve more than one department.

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

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