Sun Valley Spokesman: No Additional Flights to Wood River Without Guarantees to Airlines

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An assistant chief deputy attorney general has told Wood River Valley communities that it's OK to pay minimum-revenue guarantees to airlines, as long as the deal is crafted with "great care."

This morning's Idaho Mountain Express reports that Assistant AG Brian Kane informed interested parties that they could move forward with minimum-revenue guarantees—funding paid to airlines to ensure that the carriers will make a certain amount of money in small, risky markets. Currently, flights from the Friedman Memorial Airport in Hailey to Seattle and Los Angeles are secured by minimum-revenue guarantees. The guarantees are funded solely by the Sun Valley Company, operators of the Sun Valley Resort.

"The cost has been going up radically, primarily due to increased fuel costs over the past few years," Fly Sun Valley Alliance President Eric Seder told the Mountain Express. "Sun Valley Co., unlike any other resort in the Rocky Mountains, is bearing 100 percent of the cost."

Seder said there would be "no possibility of flights to Friedman from any new destinations" without additional minimum-revenue guarantees.

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