A 23 percent drop in Kenmore Air passenger boardings out of William R. Fairchild International Airport in 2011 will trigger the loss of a $1 million entitlement grant this year to the Port of Port Angeles.
The port, which operates the airport in west Port Angeles, wanted to use the funds to remove dangerously obstructive trees in Lincoln Park, which is adjacent to the airport and owned by the city of Port Angeles.
Airport and FAA officials said they are confident that tree removal, if approved, will be funded despite the loss of the FAA grant.
It goes annually to airports that have 10,000 or more passenger departures, called enplanements.
Kenmore Marketing Manager Craig O’Neill said in a telephone interview that Kenmore is staying put as Port Angeles’ only passenger air service between Port Angeles and Seattle after cutting daily departure flights in half, to three, last June.
The reduction at the largest airport in Clallam and Jefferson counties helped fill up seats on the remaining flights on the Kenmore’s eight- and nine-seaters and stabilized air service during the second half of 2011, O’Neill said.
“We want to give people as much reassurance as we possibly can that we are in it for the long haul,” he said.
“We feel like we made an adjustment that will allow us to do that even more than before. There are no ongoing discussions about leaving that market. I can say that with more confidence now than a year ago.”
The added profit — Kenmore would not release any money figures — won’t mean ticket prices will go down anytime soon, O’Neill added.
“We’ve been consistently underpriced,” he said, adding ticket prices are getting close to where they need to be “relative to our cost structure.”
Kenmore enplanements at Fairchild have dropped 39 percent in three years.
They totaled 12,716 in 2009, then dropped to 10,138 in 2010 and 7,804 in 2011.
“The biggest impact to enplanements was Kenmore went from six flights a day to three,” Sandau said Friday, adding he felt the decline in ridership was because of the poor economy, an assessment the company agreed with.
“We’ve stabilized now,” he said. “Without that, we would be in a pickle.”
Sandau was confident the port will still receive enough in FAA funds to remove trees that, under certain windy and cloudy conditions, obstruct flight approaches to the beginning of the airport’s primary runway, the federal agency says.
In anticipation of losing of the grant, the port began working with the FAA in early 2011 to keep federal money coming for the tree-removal project, which has sparked vocal opposition at City Council meetings.
“They are going to support us in the process of redeveloping the approach to the city park due to the obstructions,” Sandau said.
“The Seattle-area office has agreed to cover the cost” of the tree removal project, he said.
“Wherever we fall short on entitlement money, there will be discretionary money to fill that gap. For them not to get the money [for tree removal] would send the whole system on its ear. I don’t know any time that money has not been appropriated to the FAA if it’s been programmed by the agency.”
Stan Allison, deputy manager for the FAA’s Seattle office, seconded Sandau’s optimism about FAA money continuing to flow into the tree-removal project — with the caveat that Congress must approve the funding.
“We’ve been working with the airport closely to figure out how to clear those trees,” Allison added.
But loss of the grant on a regular, annual basis because of low enplanements could have an impact on future airport maintenance and capital projects, port Executive Director Jeff Robb said.
“We won’t have the flexibility of a million dollars to capitalize for projects,” he said.
Port Commission President John Calhoun said the port “has been very concerned” about Kenmore’s low ridership levels and has taken step such as waiving the agency’s enplanement fees to help out the company.
“That airport is basic infrastructure,” Calhoun said.
“In the end, it’s a private business that has to make a decision to be there.”
Air service out of Fairchild and the airport’s “viability” will be discussed by city and port officials at a joint meeting that will be held in the next couple of months, Calhoun said.
“That will be a central agenda item during that meeting,” Calhoun said.
As for the tree removal project, it will be discussed a special city Parks, Recreation and Beautification Commission meeting on the Lincoln Park Master Plan at 6 p.m. Feb. 15 in the City Council chambers, 321 E. Fifth St. in Port Angeles.
“Kenmore Air never demanded the cutting of those trees,” O’Neill said.
“We’re extremely aware of the fact it’s a sensitive issue in the community. We’re not trying to cram this down anyone’s throats.”
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