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United adds Chicago service to Kalispell

by MATT BALDWIN
Daily Inter Lake | August 7, 2014 9:00 PM

A new direct round-trip flight from Glacier Park International Airport to Chicago is set to take off this winter.

The United Airlines flight to Chicago O’Hare International begins Dec. 20 and will fly every Saturday through April 4.

The Glacier Airline Enhancement and Retention Outreach committee has been working to secure a wintertime direct flight for the past year. The AERO group of local business and tourism leaders raised $240,000 for a revenue guarantee to secure the new Chicago flight.

Guarantees are sometimes used when an airline is reluctant to take on the risk of entering a new market. Private funds are raised and paid up front to supplement an airline’s investment if seats don’t sell as predicted. 

“It’s a financial backstop to provide to an airline to encourage them to try a new flight,” AERO chairman Paul Johannsen explained.

If the flight proves to be profitable, funds are returned to investors.

Johannsen, owner of National Parks Realty of Whitefish, said the committee received financial support from businesses across the valley.

The Flathead County Economic Development Authority provided a $100,000 matching grant, while Whitefish Mountain Resort contributed $25,000 to the effort.

“We’re absolutely delighted about the newly announced United flight from Chicago,” said Dan Graves, chief executive at Whitefish Mountain Resort. “I’m convinced this will be another step forward in producing a more sustainable economy in the winter months for the local communities and Whitefish Mountain Resort.”

AERO worked with Sixel Consulting Group to conduct an economic impact study on the benefits of adding new flights to the valley. They determined the new Chicago flight could bring $900,000 to the local economy.

“It’s a huge economic driver,” Johannsen said. “To us it made sense to put $240,000 at risk for a $1 million impact.”

The Montana Office of Tourism heavily invests its marketing dollars in Chicago with ad campaigns, billboards and bus wraps. O’Hare also happens to be a hub for United Airlines.

“Chicago is a big market for Montana,” Johannsen said.

He notes that the direct flight from GPI to Chicago in the summer was started with a revenue guarantee.

“And that’s sold out all the time,” he said.

If the winter Chicago flight is a success, Johannsen says AERO plans to reinvest and build its funds to attract another direct flight.

“We hope to keep this rolling,” he said.

The new flight departs Chicago at 9:45 a.m. and lands at GPI at 12:25 p.m. The plane then departs GPI at 1 p.m. and arrives back at O’Hare at 5:15 p.m.

Matt Baldwin is the editor of the Whitefish Pilot.