PENDLETON — The Pendleton City Council flew with the recommendation from a selection committee to support Boutique Air as the airline to provide passenger service between Pendleton and Portland.

Boutique Air is looking to renew the Essential Air Service subsidy from the U.S. Department of Transportation for flights between Pendleton and Portland. Alaska Seaplanes and Southern Airways Express also have submitted bids for the route.

“My nine-member selection committee selects Boutique Air to provide EAS to the city of Pendleton,” Eastern Oregon Regional Airport Manager Dan Bandel told the council at its meeting Tuesday night, March 19.

Boutique has provided flights to and from Pendleton using the federal subsidy since 2016. The contract expires May 31.

“The Essential Air Service program aims to maintain air service to small communities like Pendleton,” Bandel told the council. “The primary goal is to connect remote areas to the national air transportation system. It ensures that even small communities have access to air travel. The program usually serves rural towns or regions that were receiving scheduled airline service before the deregulation in 1978. These places would have lost service without government intervention.”

Bandel said the U.S. Department of Transportation selects air carriers to provide the service to eligible communities, and these carriers receive subsidies to operate flights to and from these locations. He said the carriers sign contracts with the department to provide a minimum level of service, such as frequency of flights, available seats and connections to eligible communities.

“This funding helps cover the difference between the cost of providing service and the revenue generated,” Bandel said. “The program faces challenges related to cost effectiveness, changing demand and market dynamics. Balancing service quality with financial viability is essential.”

Boutique, Alaska Seaplanes and Southern Airways each would provide flights 21 times per week between Pendleton and Portland on Pilatus PC-12 planes.

The DOT will make the final determination of which carrier gets the contract. The city’s recommendation will be sent to the federal transportation department as part of the deliberation process.

Mayor John Turner asked Bandel, “Can you give the council any rationale on why you selected Boutique?”

“We used nine weighted or graded criteria,” Bandal said, “and we also looked at 39 areas of intersection between the three carriers. Those items included reliability, customer experience, affordability, economic impact, interline agreements and solid marketing plan.”

Bandel said the committee weighted each one of the three providers and tallied the numbers, and Boutique came out the winner.

Turner asked if the committee had a general consensus.

“There was unanimous consensus,” Bandel said.

Councilor Linda Neuman asked Bandel if there was any plan for modifications in the Boutique contract.

“The one that comes to the front of my mind is an increase in marketing dollars and financial participation from Boutique,” Bandel replied. “In the past the airport has helped offset that marketing strategy for them, and they’ve agreed to up to doubling each year of the contract.”

The council approved the recommendation of Boutique Air on a 7-0 vote. Councilor Steve Campbell attended via Zoom, and Councilor Addison Schulberg was absent.

Hope remains aloft for Alaska SeaplanesSeveral officers from Alaska Seaplanes attended the meeting.

“We’re very disappointed with the airport’s decision today and we think they made the wrong decision in selecting the carrier with a high bid for service to Pendleton,” Alaska co-owner and president Kent Craford said after the meeting.

He said elected officials from Wallowa, Union and Umatilla counties have weighed in with the Department of Transportation in support of Alaska Seaplanes.

“While the city council’s decision tonight to support Boutique Air certainly has weight and merit, it shouldn’t in any way be the deciding factor for a much larger region,” Craford said.

Craford said he is confident DOT will eventually select Alaska Seaplanes to serve Pendleton.

In other business, the council gave unanimous approval:

• To accept a bid from CMH Rink Builders to repair Roy Raley Ice Rink. The state has pledged $334,194, but the city estimated the cost at $562,274, so the city will need other funding sources.

• To accept the bid of $186,575 from Dolittle Construction LLC, of Sacramento, California, for the city-wide street slurry seal project.

• For the Pendleton accounting firm of Dickey and Tremper as the city and Pendleton Development Commission auditor for this fiscal year as well as fiscal years 2025 and 2026. The cost would be approximately $89,655 for 2024, $98,340 for 2005 and $98,230 for 2026.

• To Ordinance 4016, amending previous guidance in operating a parks, recreation and cemetery commission.

• To the city providing $25,000 per year for two years to the Pendleton Downtown Association.