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AERO to raise money that will help bring more flights to valley

by HEIDI GAISER
Daily Inter Lake | June 26, 2013 10:00 PM

The Jackson Hole Airport in Wyoming is serving as a model for much of what some Glacier Park International Airport supporters are hoping to accomplish.

Paul Johannsen, chairman of the Airline Enhancement & Expansion Outreach committee, told a group gathered for a Whitefish Chamber luncheon event on Wednesday that the Jackson airport has used privately funded guarantees to carriers with great success.

“The direct flights in and out of Jackson are phenomenal,” Johanssen said. “The business community there recognizes the importance of that. Jackson has a $2 million war chest. The carriers know these guys are players.”

AERO was formed about 18 months ago as an initiative of a Whitefish Chamber group to generate private funding to improve air service to the Flathead Valley.

The group is beginning its campaign to get Flathead Valley businesses on board with the idea of pitching in to fund guarantees to carriers to increase the direct flights available to major hubs.

Private guarantees often are made when a carrier says the economic conditions are not inviting enough for it to enter a smaller market. A private group then pulls together enough money to back the airline’s investment in case the planes haven’t been full enough during the guarantee trial period.  

“Hopefully it’s successful and you don’t have to dip into the guarantee,” Johannsen said.

The goal for the AERO committee is to raise half a million dollars to get started. Johannsen said his group would like to have Flathead Valley companies pledge money annually so they can be assured of a certain amount.

The Flathead Municipal Airport Authority, which operates the airport, recently brought in a representative of Sixel Consulting Group to discuss a study on the revenue returns of investment in new flights to the Flathead Valley.

The Airport Authority is going to pay for the study, and Johnannsen said it is expected to be available within the next 60 days.

“When AERO board members need a good story to tell, they can pull together the data and have a great story to help sell this,” Johannsen said.

The AERO board has a membership of 13 people from throughout the valley’s business and tourism community. It intends to work in partnership with the Flathead Municipal Airport Authority.

The airport is not allowed to offer guarantees to carriers, although guarantees can come partially from air service grants.

Airport Director Cindi Martin also gave an update on recent developments at Glacier Park International. She said the terminal remodel is now completed, including many upgrades, repurposed spaces and enhanced concessions.

Much of what was completed in the terminal, such as replacing aging snow removal equipment and retrofitting outlets to be more energy efficient, was done to keep costs down.

“We help carriers by keeping our operating costs low,” Martin said.

Since Martin took over in 2006, air service has been increased by 33 percent.

“We’re doing very well for a community our size, better than some larger communities,” she said. “And we’re making strides in airport/community partnerships.”

Reporter Heidi Gaiser may be reached at 758-4439 or by email at hgaiser@dailyinterlake.com.