Port issues ultimatum to Harbor Air
posted05/05/01
Payment of $6,087 and shuttle service from Boeing Field to SeaTac does not satisfy Harbor Air's lease requirements with the Port of Friday Harbor. As of midnight May 31, Harbor Air's lease with the port is terminated and void. Charles Jackson, the port's attorney, notified the airline of the new deadline May 1, 2001.
If the airline wants to negotiate a new lease, negotiations must begin by May 15. The Port had given Harbor Air an April 30 deadline to pay past due bills and to resume service directly to SeaTac. A partial payment ($6,087) and questions from the airline's lawyer stopped the port from terminating the lease at the end of April.
The Notice of Default and Demand for Cure of the Default cites four reasons for the termination of the lease:
- Rent in arrears
- Breach of permitted use --not flying into SeaTac
- Landing reports and fees in arrears
- Enplanement reports and passenger facility charges in arrears
If Harbor Air is unable to successfully negotiate a new lease with the port, it must cease operation at Friday Harbor Airport at midnight, May 31, 2001.
Harbor Air still flying to Friday Harbor
posted 2:30 p.m.04/30/01
Harbor Air still can't fly into SeaTac airport but they can continue to land at Friday Harbor Airport. Port Commissioners had decided last Wednesday to terminate the airline's lease if they hadn't reestablished service to SeaTac by today. That plan was put on hold after questions were raised by Harbor Air's attorney. A check for $6,000 was given to the port on Saturday, April 28 which covers the balance owed through April 30, 2001.
Harbor Air given Monday deadline
posted 04/26/01
Harbor Air's lease agreement with the Port of Friday Harbor will terminate unless they pay their port bill and reestablish service at SeaTac by 10 a.m. Monday, April 30. The three port commissioners agreed to "close the lid on the coffin." during their April 25 meeting.
The airline lost their lease at SeaTac March 21 after failing to pay its bill to the Port of Seattle. Since then, Harbor Air passengers have been flown to Boeing Field and shuttled by vans to SeaTac. One of the terms of the airline's contract with the Port of Friday Harbor was service to SeaTac. On March 28 the commissioners gave Harbor Air 30 days to correct the default.
If the airline manages to meet the requirements, a new contract with the port can be signed and the airline can continue operating out of Friday Harbor. The new lease would require a higher bond -- $16,000 rather then the current $9,000. bond.
A Harbor Air representative was supposed to be at the April 25 meeting with a post-dated check. Someone from the airline called and told port staff the plane didn't arrive but a check would be delivered Monday, April 30.
If Harbor Air loses its Friday Harbor Airport lease, opportunities for other carriers will open up. " It might be a different relationship," said Port Auditor Marilyn . "We may reconfigure the counter space to offer room to more carriers."
"Maybe someone else will come forward," said Port Commissioner Board Chair Greg Hertel.
Harbor Air given 1 month
to reestablish Sea-Tac service
posted 03/30/01
Port of Friday Harbor commissioners are giving Harbor Air 30 days to live up to its lease, which requires the airline to provide daily flights between San Juan Island and Sea-Tac International Airport.
Steve Simpson, port director, called the Friday Harbor/Sea-Tac route "our major link to the rest of the world." During a March 28 meeting, he noted the Port received several call from islanders wanting a connection to Sea-Tac.
The Port of Seattle terminated Harbor Air's lease at SeaTac March 21 for failure to make past-due payments of more than $70,000.
Harbor currently is flying from the Friday Harbor and Eastsound airports to Boeing Field. "Reactions from our passengers so far has been positive," said Rick Jones, Harbor's director of marketing and customer service in a March 27 press release. "We see this as being a great move towards future growth."
Port of Friday Harbor Commissioner Greg Hertel, when asked by John Linde if the Port is attempting to punish the airline, replied: "We're trying to get it resolved as quickly as we can."
"We're saying, 'Either straighten up or move on.'" said Port Commissioner Brian Calvert.
Verne Howard, who once owned Harbor Air, said an airline needs to fill most of its seats on the Sea-Tac run in order to be economical viable. Howard and others suggested the Port consider ways, including not charging "a docking fee" to help support service directly into Western Washington's major airport. He noted some communities subsidize portions of the service.
The Port of Friday Harbor, in a letter to the Port of Seattle, is emphasizing the islands' interest in retaining a presence at Sea-Tac and is also requesting special consideration to achieve that. Simpson noted the Friday Harbor and Eastsound airports are the only primary airports in the region with small runways incapable of handling larger commuter planes that can accommodate more passengers and fly longer routes.
Port of Seattle commissioners owe a political favor to the Friday Harbor commissioners for their support on past issues, Calvert explained. "We are calling in our chips," he said.
Port of Seattle terminates Harbor Air lease
posted 03/22/01
Flying directly on a commercial airline from the San Juans to Sea-Tac International Airport was grounded about 1 p.m. Wednesday, March 21: After Harbor Air failed to meet a repayment plan with the Port of Seattle, the Port terminated the regional airline's lease for gate space and other facilities.
That move prevents Harbor Air from boarding passengers, handling baggage, or parking aircraft at the airport terminal. Port of Seattle staff will be stationed at Harbor’s former gate to meet passengers expecting to board Harbor flights. Passengers will be given information on how to find alternate transportation to their final destinations. Flying Harbor to and from Boeing Field -- also known as King County Airport -- is one of the alternatives. Harbor is shuttling passengers from the King County passenger terminal to Sea-Tac.
Harbor’s lease at Sea-Tac was terminated for failure to make past-due payments of more than $70,000, according to the Port. The total amount owed, including current charges, is more than $100,000. "Harbor Air just got so far behind. We had to take some action. We couldn't let it go on any further," Bob Parker, a Port of Seattle spokesman said.
Rick Jones of Harbor Air said the Port of Seattle served Harbor Air notice at 12:15 p.m. Wednesday, March 21. He maintains the Port is attempting to shut down Harbor to take their gate space for larger carriers. The airline was given an hours notice to pay $30,000, according to Jones. When Harbor Air delivered that check, they were told it was now not enough and that they would have to pay an additional $63,000 to keep their space, Jones said.
Harbor Air has paid the Port of Seattle more than $160,000 since last November. "That’s a lot for a small company," said Rick Boehlke, owner of Harbor Air. "We’re taking care of our debt faster than anyone thought possible. Now they’ve changed the rules and only gave us an hour."
Parker noted Harbor made some payments but did not live up to a payment plan that the airline set.
"We never told them to make a $30,000 payment," Parker said. "We told them 'payment in full,' and they counter-offered with the $30,000. Our business manager agreed only to relay Harbor's offer to the airport director. We never agreed to accept the $30K and the director quickly rejected the offer."
In order to fly into Sea-Tac again, Harbor must repay all of its debt with the Port and then reapply for space. "They start from scratch," Parker said.
If the company is unable to secure another lease with Sea-Tac, the Port of Friday Harbor could close Harbor Air's counter in Friday Harbor Airport. Harbor's contract with the San Juan Island port stipulates the airline must make daily trips to Sea-Tac. Harbor will likely have 30 days to meet their contract and may also request a change in their lease, said port Auditor Marilyn O'Connor.
The Port also denied they were forcing out Harbor to make space for larger airlines. "Small carriers are vital," Parker said.
When asked if the Port would be open to other airlines flying from Friday Harbor to Sea-Tac, Parker responded: "We'd love to have that."
Harbor Air currently operates five Cessna Grand Caravans to 11 communities within the states of Washington and Florida. They are a codeshare partner with Alaska Airlines and Horizon Air.
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