This article was in Thursday’s (August 31, 2017) Herald and News

Written By: Stephen Floyd, H&N Staff Reporter 

Klamath County commissioners voted unanimously Wednesday to set aside $250,000 as a financial incentive for a prospective airline to restore commercial service from Klamath Falls to San Francisco.

The funding would come from an estimated $400,000 in unspent general fund revenue from the previous fiscal year.

Commissioners were the first to dedicate funds to the incentive package, with the Crater Lake Klamath Regional Airport hoping to raise as much as $700,000. Airport Director John Barsalou said he plans to approach other organizations such as the Klamath Falls City Council and the business community.

A provider in the wings

Barsalou said the airport is meeting with a potential provider during the middle of September and he hopes an incentive package will be on the table by then. The name of the potential airline has not yet been made public, but Barsalou said they would provide service on 50-passenger jets to and from San Francisco International Airport.

Klamath Falls has been without commercial air service since PenAir canceled flights Aug. 8. The company began providing service in October and was the first commercial air provider after SkyWest pulled out in June of 2014.

Barsalou said it is a common practice for smaller airports to subsidize the income of airlines as the businesses establish themselves. He said PenAir was offered a $200,000 subsidy last year funded by Klamath Falls and Sky Lakes Medical Center, who each contributed $100,000.

Guarantee of profits

Barsalou said the subsidy would only guarantee a minimum income for the airline and, if the business became profitable on its own, the subsidy would not be spent.

“It’s possible that, if we fill the planes, the need won’t even be there,” he told commissioners Wednesday.

Barsalou said this would depend on ticket prices and the number of people willing to fly. He said, as an example of competing rates, a ticket from Medford to San Francisco costs around $358.

“All of those things play into that question,” he said.

A question of future success

Commissioner Donnie Boyd said, from his perspective, the issue isn’t simply whether or not the community wanted commercial air service but whether or not they wanted to maintain the presence of Kingsley Field. He said airmen must take civilian routes when traveling to the airbase and said commercial air service is essential to continue base operations.

“If Kingsley Field were to pull out of here, it would be devastating to Klamath Falls,” said Boyd.

Commissioner Kelley Minty Morris said she believed $250,000 was a “reasonable ask” but acknowledged there was an inherent risk in committing the funds.

“Sometimes you’ve got to throw the Hail Mary and hope that it works,” she said.

First foot forward

Minty Morris said, by being the first to commit to the subsidy, commissioners were showing leadership and setting a standard they invite others to join.

Commissioner Derrick DeGroot was not as eager to support the $250,000 proposal and said he would be more comfortable at $150,000. After other commissioners said the funding should approved as requested, DeGroot said he would support the decision.

Barsalou said he plans to propose the incentive program to the Klamath Falls City Council during their next meeting Tuesday. He also approached the Lake County Board of Commissioners and Modoc County Board of Supervisors and was told, while these groups support air service in Klamath Falls, they are not able to support the subsidy.

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County Approves $250K Subsidy for Commercial Airline (H&N)