Lincoln airline Red Way to stop flight services this month

Red Way, the startup airline that had been providing service from Lincoln to destinations such as Las Vegas and Orlando, is ceasing operations at the end of the month.

In a note posted on its Facebook page, the airline said its last day of operations will be Aug. 31.

“It is with a heavy heart that we announce the decision to cease operations. After careful consideration and evaluation, we have come to the difficult conclusion that we must close our doors,” the notice said.

Lincoln Airport officials said in a news release that executives of the company had alerted them this week that they had decided future operations in Lincoln were not viable.

“The Lincoln Airport Authority Board is disappointed by the ultimate outcome of Red Way’s service in Lincoln,” Airport Authority Chairman John Olsson said in a statement. “Board members have met to discuss the result of the service, actions necessary to both address this situation and chart future efforts and oversight on what’s to come.”

The Lancaster County Board of Commissioners issued a written statement on Wednesday, saying it “is deeply disappointed and troubled at this unexpected and sudden turn of events.”

The board said there are “many unanswered questions regarding the Red Way project, (and it) looks forward to receiving a full accounting of this situation as the Lincoln Airport Authority charts a new path forward to serve our community.”

Commissioner Matt Schulte lamented losing most of the $3 million in American Rescue Plan funds — $1.5 million each from Lancaster County and the city of Lincoln — but called the air travel experiment a chance worth taking.

“I personally voted for this project believing that the air service would develop long-term service,” he said. “Unfortunately, it didn’t work. I hope this failed experiment does not have a negative impact on the ability to expand service to the city of Lincoln.”

Lincoln Mayor Leirion Gaylor Baird opted not to comment, referring all questions to Lincoln Airport officials, who declined to comment beyond the written statement they provided.

Red Way was a creative solution the airport came up with after having trouble finding another airline to start service at its newly remodeled and expanded terminal.

The airline was technically providing charter service through Global Crossing Airlines, although to customers, it looked and operated like a regular commercial airline.

Red Way launched with much fanfare on June 8, with its first flights to Las Vegas and Orlando. Gaylor Baird was one of the inaugural passengers on the Orlando flights, saying at the time, “this is a big day for the Lincoln Airport.”

The airline started with a schedule of flights to seven cities. In addition to Orlando and Las Vegas, it also flew to Austin and Dallas, Texas, Atlanta, Minneapolis and Nashville.

Airport officials had seemed optimistic about the airline’s prospects, noting that it had sold 10,000 tickets in just its first two weeks of operation.

In fact, Red Way flew just over 13,000 total passengers in June and July.

But cracks had started to show recently.

Red Way announced in July that it was dropping seasonal flights to Atlanta, Austin and Minneapolis in early August, months earlier than planned, because of poor ticket sales. That news came just two days after the airline had announced new flights to Tampa and Phoenix over the winter months.

Nick Cusick, who resigned from the Airport Authority Board in July after serving more than 10 years, confirmed to the Journal Star on Wednesday that Red Way had already burned through about $2 million of a $3 million incentive fund provided through ARPA dollars.

It used more than $900,000 in the first month and it withdrew even more in the second month, Cusick said.

What was left “was deemed to be not enough to safely get them to the finish line,” Cusick said, causing Red Way to make the decision to pull the plug.

Red Way CEO Nick Wangler did not return calls to the Journal Star.

Red Way said in its Facebook message that it wanted to assure all passengers with flights booked through the end of the month that it is committed to “ensuring a smooth and safe operation until our very last flight.”

It said that all flights booked after Aug. 31 had been canceled, and affected customers would receive full refunds.

The loss of Red Way will once again leave the airport with service from just one airline. United Airlines flies to Chicago, Denver and Houston.