A top Redding official and the former head of the Shasta County Economic Development Corp. have refuted the notion the city didn't do enough to keep Avelo Airlines in Redding.
Their insights came during an update on Redding Regional Airport that was given by Assistant City Manager Steve Bade at Tuesday’s City Council meeting.
Since the announcement, the community has decried the decision, with Shasta County Supervisors Chris Kelstrom and Kevin Crye joining the chorus by publicly voicing frustration and disappointment and suggesting someone dropped the ball.
On Tuesday, Bade reiterated to council members that Avelo made a business decision to leave Redding and that the decision wasn't unique to Redding — Avelo is leaving six other markets in the U.S.
The Lansing State Journal reported earlier this month that Avelo will discontinue serving the Michigan state capital. The State Journal also reported that Avelo is expected to stop service in Kalamazoo, Michigan; Dubuque, Iowa; Mosinee, Wisconsin; Broome County, New York; and Brownsville, Texas.
Is $100,000 enough guarantee for an airline?
Bade said that in conversations with Avelo officials, it was made clear that the airline is leaving Redding for business reasons and because it no longer has a company to do ground-service operations for its flights at the Redding airport.
“And if they were to receive another $100,000 from any entity, it will not make a difference. They are moving that plane to another location and they’re going to provide that service elsewhere,” Bade said Tuesday, referring to the letter county supervisors will send to Avelo that offers the airline up to $100,000 to stay in Redding.
Groups and agencies usually need to come up with more money than what the county is willing to offer Avelo, according to recent airline incentive deals.
Redding and the community raised a $1 million revenue guarantee to help bring United Airlines’ service to Los Angeles International Airport in 2018. Bethel Church committed $450,000 to the fund.
And the city and community want to fund a $2 million revenue guarantee to get United to start Redding-to-Denver flights.
Redding Chamber of Commerce President Todd Jones, who was president of the Shasta EDC when Avelo started servicing Redding in May 2021, echoed Bade on Tuesday.
Avelo's flight to Burbank was running at 60% to 65% percent capacity, Jones said, “which on that size of plane just isn’t enough to make it pencil out.”
Avelo flies twin-engine 737-700s from Redding to Burbank. The carrier also offered flights to Las Vegas from Redding for less than year before discontinuing them in December 2022.
In Redding, Avelo’s ability to continue operating from the airport was called into question after Trego Dugan, the company with a contract to do ground services for the airline, announced it was leaving Redding.
The city talked to Avelo officials around June 19, Bade said. That was about a week before the airline announced it would stop serving Redding. “We had a phone call conversation with them just to determine what is the reason they are terminating their contract,” he said.
Bade said Avelo contacted other companies about providing ground services, but the airline was unable to find one. “We were not contacted to help with that procurement process,” he said Tuesday.
Shasta Supervisor Kelstrom has been especially vocal about Avelo leaving Redding, reiterating again at Tuesday’s supervisors’ meeting “that the ball was dropped.” Supervisor Crye, who chairs the board, echoed Kelstrom when he called it “a total fumble of the airport situation.”
It was Kelstrom’s idea to send the letter to Avelo. The correspondence was unanimously approved by supervisors on Tuesday.
The letter to Avelo CEO Andrew Levy states in part: “Shasta County is willing to consider making contributions to offset the costs of managing ground services for either three years or up to $100,000, whichever is reached first.”
The Record Searchlight has emailed Avelo Airlines for a comment on the $100,000 offer, but has yet to receive a response.
The notion that the city of Redding didn’t do enough to keep Avelo from leaving is “nonsense,” Jones told the Record Searchlight on Wednesday. Jones for years has worked closely with the city to recruit air service to Redding and the council has always been supportive of efforts to improve the airport, he said.
“I do know between Steve (Bade) and the airports division, (the city’s aviation consultant) Mead & Hunt and the EDC, and of course where I am able to help, I think we have a really good market. I think we still have a lot of momentum right now. We are going to continue to see opportunities in our market,” Jones said Tuesday to the Redding City Council.
Bade said in his conversations with Avelo that the airline did not rule out returning to Redding.
"They did say that they would analyze maybe a seasonal market for our area, see if that might work out. But they gave no promises," he said.
David Benda covers business, development and anything else that comes up for the USA TODAY Network in Redding. He also writes the weekly "Buzz on the Street" column. He’s part of a team of dedicated reporters that investigate wrongdoing, cover breaking news and tell other stories about your community. Reach him on X, formerly Twitter @DavidBenda_RS or by phone at 530-338-8323. To support and sustain this work, please subscribe today.
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