Grant boosts effort to lure new direct flights

The Flathead County Economic Development Authority has thrown its support behind a group of business and community leaders working to expand air service to the Flathead Valley.

The authority has given the Glacier Airline Enhancement and Expansion Outreach committee a $100,000 grant. The grant requires a $150,000 match to achieve the final goal of raising $250,000.

AERO is working on a multi-year project to expand air routes to Glacier Park International Airport. Financial 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. However, if the flight proves to be profitable, funds are returned to investors.

AERO has already raised $80,000 for the airline retention fund.

“We are excited about the success of the fundraising so far and confident that the community will rally around this idea that has been in the works for more than a decade,” said AERO Chair Paul Johannsen.

The group is currently looking at establishing a direct flight with United to Chicago for an 8-week period from mid-December to mid-February, Johannsen said.

A recent economic study on the Chicago flight estimated that a $250,000 minimum guarantee would be needed, but that its economic impact on the Flathead Valley would be more than $900,000.

“That makes economic sense,” Johannsen said. “Chicago is a good market for Montana. The Montana Department of Tourism spends a lot of money there.”

AERO is also looking at possible flights to Phoenix.

Major donations to the retention fund have already been made by Whitefish Mountain Resort, Kalispell Chamber of Commerce and Convention and Visitors Bureau, Big Mountain Commercial Association, Whitefish Convention and Visitors Bureau, Glacier Bank, First Interstate Bank, Whitefish Chamber of Commerce and Kandahar Lodge.

Jennifer Fisher with Kandahar Lodge explained why they donated $1,000.

“As the director of sales and marketing for a small business, my long-term goal is to build occupancy to the point that it is justified to operate 12 months of the year rather than just seasonally,” she said. “Contributing to the effort to expand air service is very important. It helps me to achieve my sales goals and is worth a budget investment in my marketing plan.”

A fundraising kickoff was held at The Lodge at Whitefish Lake at the end of January. During the event, Meg O’Leary, director of the Montana Department of Commerce, shared her experience in the private sector in brokering revenue guarantee contracts with major airlines for the Bozeman-Gallatin International Airport.

O’Leary encouraged the AERO board they are on the right path and her department will continue to be a supportive partner as they work to expand air service throughout the state.

AERO’s timeline for the grant matched fundraising efforts is to raise a total of $150,000 by May 1.

For more information, contact Paul Johannsen at 212-4678 or paul.johannsen@gmail.com.