Salem Faces $1.2 Million Cost if Avelo Airline Contract Ends Early

In a twist of civic providence and fiscal gravity, Salem’s city government now stands at a crossroads. To untie the bonds with Avelo Airlines—our fledgling passenger carrier—would incur a cost not merely of words but of wallets: a staggering $1.2 million in termination fees and accrued damages. This revelation, borne of City Attorney Dan Atchison’s somber report to the council, lays bare the weight of broken commitments  .

This figure looms large against the backdrop of Avelo’s modest take: in its first year, the airline drew just $446,000 from the $1.2 million grant pool to sustain Salem service  . Thus far, only about 37% of the available subsidy has been tapped—a prudent draw in a larger economic partnership.

Pro‑business voices in the community now implore prudence: to maintain the contract is to invest in regional connectivity, economic circulation, and the latent promise of growth yet unseen. The specter of sunk-cost fallacy haunts deliberations, but so too does the sobering reality of paying for early dissolution.

City residents, energized by petitions and weekend protests, demand accountability—but their fervor must contend with fiscal reason  . Is it better stewardship to absorb a known cost now, or risk severing ties at an even greater expense later?

In the eloquent cadence of Augustine’s meditations, we are reminded: true wisdom lies not in abrupt endings, but in calculated continuance. If Avelo’s wings have only begun to carry us to new horizons, perhaps the wiser course is not severance, but sustained partnership—letting infrastructure and opportunity ascend together, for the good of Salem’s future.