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Avelo’s departure from Redding was purely business-related, the airline says

Avelo’s departure from Redding was purely business-related, the airline says

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With the departure of Avelo Airlines from Redding, the low-cost airline is expanding its service on the North Coast.

Avelo added a fifth flight from Humboldt County to Hollywood-Burbank in June and will add a sixth flight to Southern California in September, the county announced this summer.

On Monday, Avelo suspended service from Redding to Hollywood-Burbank, ending more than three years of service at Redding Regional Airport. The suspension is one of several across the country. Other communities where Avelo has announced it will discontinue service include Kalamazoo, Michigan; Dubuque, Iowa; Mosinee, Wisconsin; Broome County, New York; and Brownville, Texas.

According to Steve Bade, Redding’s deputy city manager, Avelo’s actions coincide with the city’s east coast expansion plan.

Despite numerous claims by Shasta County Executive Chris Kelstrom that not enough was done to keep Avelo in Redding, airline spokeswoman Madison Jones reiterated to the Record Searchlight last week that the airline’s decision to pull out was based on business strategy reasons.

“Our decision to terminate this route also allows the airline to better utilize our resources elsewhere in our network,” Jones told Record Searchlight.

Avelo Airlines announced in June that it would cease operations in Redding. The ability to continue operations in Redding was called into question after Trego Dugan, the company that handled the airline’s ground services, announced it was leaving Redding. Trego Dugan’s management in Redding said the company was pulling out of California.

At public board meetings over the past few months, Supervisor Kelstrom has expressed his frustration with Avelo’s departure from Redding. Most recently, at the Aug. 20 meeting, he said the cause was a lack of communication between Avelo and the city.

“It’s really frustrating to me that … in my opinion not enough has been done to keep them here,” he said.

Kelstrom pointed out that Trego Dugan was also Avelo’s ground services operator in Humboldt County, so why is the airline expanding there and leaving Redding, he wondered.

“They also lost their baggage handlers, it’s a county-operated airport. At some point, someone managed to make sure Avelo stayed there,” Kelstrom said at the Aug. 20 meeting.

In July, supervisors sent a letter to Avelo CEO Andrew Levy saying, “Shasta County is willing to consider contributions to cover the costs of administering ground services for either three years or up to $100,000, whichever comes first.”

To make things work in Eureka-Arcata, however, Avelo hired its own people to handle the airline’s ground services, Jones says.

Bade, Redding’s deputy city manager, said Avelo was able to transfer some employees from the Charles M. Schultz-Sonoma County Airport to Humboldt County.

Sonoma County became Avelo’s new base of operations in January, “meaning we have two aircraft and our own crew stationed there to handle our operations,” Jones said.

Bade also said Avelo had contacted other companies to provide ground services in Redding, but the airline was unable to find one. “We have not been contacted to assist in that procurement process,” Bade said.

When asked why Avelo has not moved ground operations staff to Redding, Jones reiterated that the airline could better utilize Redding’s aircraft in the other communities it serves.

Redding Mayor Tenessa Audette said Avelo not only suspended operations in Redding this summer.

“So it’s a business decision,” Audette said, adding that the city would like to see Avelo return to Redding.

Avelo flew twin-engine 737-700s from Redding to Burbank. The airline also offered flights from Redding to Las Vegas for less than a year before discontinuing them in December 2022.

Todd Jones, president of the Redding Chamber of Commerce, who has worked closely with the city for years to attract air service to the north of the state, called the claim that Redding has not done enough to keep Avelo in town “nonsense.”

“I know we have a really good market with Steve (Bade) and the airport department, (city aviation consultant) Mead & Hunt and the EDC and obviously where I can help. I think we still have a lot of momentum right now. We’re going to continue to see opportunities in our market,” Jones told the Redding City Council at its July 16 meeting.

Meanwhile, all of this is happening because regulators want the city of Redding to consider creating a Joint Powers Authority (JPA) with the county to oversee the operation and development of the Redding Regional Airport.

On July 16, the supervisors unanimously voted to send a letter to Mayor Audette and the City Council to review the proposal.

Bade said on Monday that no action had been taken on the proposal so far.

David Benda covers business, development and everything else going on 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 reporters who investigate grievances, break news and tell other stories about your community. You can reach him at X, formerly Twitter @DavidBenda_RS or call 530-338-8323. To support and sustain this work, subscribe today.

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