Horizon Air Suspends Service in Klamath Falls

Media Release

June 27, 2008

(Klamath Falls) Horizon Air announced today that effective October 11,2008 they will no longer provide nonstop service between Klamath Falls and Portland. As part of its fleet transition and plan to improve financial performance in light of record high fuel costs, Horizon Air will end all flights from Portland to Klamath Falls. Klamath Falls is currently served with three daily Q200s to Portland. Horizon Air also announced suspension of service to North Bend/Coos Bay.

“Despite our best efforts to adjust flight schedules and fares in order to make these routes financially viable, consistent profitability has proved to be elusive,” said Dan Russo, Horizon's vice president of marketing and communications. “The astronomically high fuel prices have only made the situation worse, and so we find ourselves with no choice but to reduce our losses by taking this action.”

“It's a sad day when we have to announce that we are going to leave any city, and it's particularly heartwrenching in the case of these two Oregon cities, which we have served since 1982, shortly after Horizon was established,” said Jeff Pinneo, Horizon's president and CEO. “Our people there have established a long tradition of excellent customer service and contributed much oftheir communities. I wish to thank them for their years of service as well as extend our gratitude to the customers who have flown with us over the past 26 years. Hopefully, some years down the road, once the economic picture greatly improves and these markets experience more growth, we can consider returning.”

Horizon currently has 10 employees in Klamath Falls and they are all being given the opportunity to apply for openings elsewhere in Horizon's route system.

Horizon's decision was based onjet fuel prices increasing to record highs and the company accelerating the replacement of the Q200 aircraft. Last summer, jet fuel was at approximately $80 a barrel and today a barrel is selling for $150. “Airlines across the nation are reeling from the financial impact of rising fuel prices,” states Derek Martin, Klamath Falls Airport Director. “Unfortunately for small communities like Klamath Falls the result is the loss of service.” The Klamath Falls Airport will see new service on United Express south to San Francisco starting July 7th and airport officials are hopeful that United Express will consider the possibility of Portland service at some point in the future.

Point of Contact: Derek V. Martin, AAE
Airport Director
(541) 883-5372