Feds renew Boutique’s contract

By Terry Murry on Friday, May 27th, 2022 in Columbia Basin News More Top Stories

WASHINGTON, D.C. – The U.S. Department of Transportation has increased Boutique Air’s essential air service contract and renewed it through May 31, 2024. Boutique had requested to renegotiate the terms of its EAS subsidy due to many changes including the cost of fuel and a workforce crisis.

The request from Boutique came by filing a form in February requesting a termination of its EAS contract to begin on May 12. The fourth year of its agreement was for a subsidy of $2,688,485. The department then countered, prohibiting Boutique to terminate service and calling for it and other air carriers to issue proposals for service.

Only Boutique responded, and the federal government accepted its two-year proposal.

The new annual subsidy rate for the first year of service is $3,871,162. The second year of the service will see a subsidy of $3,948,585. The subsidy is expected to provide 21 round trips a week to and from Portland International Airport using an 8- or 9-seat Pilatus PC-12 aircraft.

Pendleton is the only airport in the Pacific Northwest operating with the Department of Transportation under an essential air service contract.