Big Sky to end Olympia flights

Unable to overcome a $50,000-a-month operating loss, Big Sky Airlines announced Friday it will halt flights between Spokane and Olympia.

The airline’s three daily round trip flights between the cities will end on Sept. 11.

Based in Billings, Mont., Big Sky launched the service in November 2001.

“We can no longer absorb the continuing financial losses we’ve experienced in this market,” company Executive Vice President Craig Denney said.

The airline needed about 1,400 passengers a month to break even, but it sold only about 1,000 to 1,100 tickets a month, said Denney.

“We never got close enough to break-even,” he said.

The service was promoted heavily by the Port of Olympia and by civic leaders in Spokane and Olympia. The Port of Olympia had said it would provide hangar space for the airline rent-free for as long as it took to reach profitability.

Denney said “maybe we were too optimistic” in expecting steady ticket sales from business passengers and state workers crisscrossing the state.

Cutthroat competition for airfares also sliced into Big Sky’s business, he said. In November 2001, air fares between Seattle and Spokane were $75 one-way; Big Sky pegged its tickets at $76, Denney said.

Since then, Big Sky’s competitors — Southwest, Alaska and Horizon — have cut those fares to as low as $39 each way and grabbed a portion of the market.

“People carpooled in a group from Olympia to Seattle and flew on the cheaper flights (to Spokane),” Denney said.

On top of that, higher fuel costs made the operation even more expensive in the past six months, he said.

Including the Spokane-Olympia flights, Big Sky operates service to 19 cities. Of those, “not many” are profitable right now, Denney said, “but none are losing as much as the Spokane-Olympia service.”

The airline said its ticket offices at Spokane’s airport and in Olympia would honor requests for refunds through Sept. 17.

Passengers can also call (800) 237-7788 to obtain ticket refund information. The airline said tickets purchased through travel agencies should be returned through those agencies for a refund.