Shasta County may offer financial assistance to Avelo to keep it in Redding

The Shasta County Board of Supervisors may bid $100,000 to keep Avelo Airlines in Redding.

The low-cost carrier announced last month that it would stop flights to the northern state after learning that the company that provides ground handling operations for Avelo at Redding Regional Airport was pulling out.

Supervisor Chris Kelstrom has been particularly outspoken in his disappointment with Avelo’s decision to cease operations in Redding, saying more than once at supervisors’ meetings that “the ball has been dropped” and that he will not give up his efforts to keep Avelo.

Avelo began serving Redding in May 2021, with flights to Hollywood-Burbank, and later added flights to Las Vegas. But Avelo discontinued flights to Las Vegas in late 2022, after less than a year, saying they weren’t generating the demand the airline had anticipated.

At Tuesday’s board meeting, supervisors will consider sending a letter to Avelo CEO Andrew Levy that states in part: “Shasta County is willing to consider making contributions to offset the costs of operating ground services for three years or up to $100,000, whichever comes first.”

Avelo did not immediately respond to an email seeking comment.

Spokeswoman Madison Jones told the Record Searchlight that Avelo is firm in its decision to leave Redding and that flights to Burbank will cease as of Aug. 26.

Steve Bade, Redding’s deputy city manager, said the city has not given up and that Avelo has made a business decision to stop flying to Burbank. “We provide great service there. Our people do a really good job,” Bade added.

In a city news release last week, Bade said the city has heard the community’s disappointment, “and we want to assure the community that every step has been taken to continue Avelo service here.”

Bade said Redding is one of at least six other markets that Avelo announced in early July it was exiting.

Redding donated $50,000 to Avelo Airlines in November 2021 to help market the Las Vegas flight, which began in January 2022 and ended in December 2022.

Jared Culver, general manager of Trego Dugan Aviation, which handles ground services for Avelo, told the Shasta County Board of Supervisors at its June 25 meeting that his company was pulling out of California.

Trego Dugan Aviation referred questions about its decision to leave Redding to Avelo Airlines.

Could Shasta County and Redding jointly operate the airport?

Meanwhile, Avelo’s impending departure appears to have fueled the county’s interest in entering into a joint powers authority (JPA) with Redding to oversee the operation and development of the Redding Regional Airport.

Supervisors will consider sending a letter Tuesday to Redding Mayor Tennessee Audette and the City Council proposing the formation of a JPA.

For years, Redding oversaw the operation of the Redding Regional Airport and Benton Airfield.

The county’s draft letter states that Redding Regional is a community asset, but to maximize “its potential and ensure its long-term success, we believe a collaborative approach is essential.”

The letter does not specify the operating procedures of a JPA nor the financial stake of the county in this process.

The annual operating budget for the Redding Regional Airport is $3.2 million, Bade said.

“Airport revenues are generated through land and facility rental income, parking revenue, fees, concessions and advertising, passenger facility charges and subsidies,” he said.

The county has already had to put major plans to expand the downtown jail on hold because it lacks the funds. In late June, officials voted unanimously not to put a sales tax increase on the ballot to expand the jail.

Audette told the Record Searchlight that the city appreciates the county’s efforts to help the airport grow.

“As a courtesy, we invited them to come to the city to better understand what is currently happening at the airport and with the airlines,” Audette said in a text message. “They have not yet accepted our offer.”

Tuesday’s Supervisory Board meeting begins at 9 a.m.

David Benda covers business, development and everything in between for the USA TODAY Network in Redding. He also writes the weekly column “Buzz on the Street.” He is part of a team of dedicated journalists who investigate wrongdoing, cover breaking news and tell other stories about your community. Connect with him on X, formerly Twitter @DavidBenda_RS or by phone at 530-338-8323. To support and perpetuate this work, please subscribe today.