CHELAN — An owner of Chelan Airways says the company has not been able to settle claims with its insurance company since a May 17 crash that killed two people, leaving its future uncertain.
The company plans to resume service as soon as possible, but it doesn't know when that might be.
"We're in insurance purgatory," said Jeff Soehren, one of a group of owners who bought the company last year. He said until insurance settlements are final, the company cannot resume flights to Stehekin, or other locations.
Stehekin School Superintendent Roberta Pitts and Spokane cardiologist and part-time Stehekin resident Dr. William Stifter were killed when a Chelan Airways floatplane landed on Lake Chelan at Stehekin Landing with its wheels down, causing it to flip over and submerge the cabin, according to a preliminary investigation by the National Transportation Safety Board. A final report on the cause of the crash is not yet complete.
The pilot and two other passengers escaped.
Soehren expressed his sadness about the deaths, and his appreciation to those who attempted to rescue them.
Chelan Airways is the only air service that provided regular service to Stehekin and other locations on the upper part of Lake Chelan, like Domke Lake, a popular fishing resort. Since the crash, Northwest Seaplanes of Seattle has provided some service, but the long distance from Seattle prevents regular flights, Soehren said.
There are no roads to Stehekin, so the only other ways to get there are by boat or on foot or horseback.
Soehren said the company is trying to work out a settlement that will replace rather than repair the de Havilland Beaver float plane that suffered substantial damage. He said it would take several months — close to a year — to fix it.
He said it's Chelan Airway's business insurance that's preventing it from continuing service.
"It's for things like this, that interrupt your daily course of business, like payroll and rent," he said. "We're working through these issues. It's mostly the business side of it, which is the most critical side for us."
He declined to estimate how much the company has lost, but agreed it will likely be hundreds of thousands of dollars.
"We had booked many, many, many charter flights for the summer. Some people make their plans in January," he said.
In past years, Chelan Airways made four to six trips up the lake each day, and this year started service to Wenatchee and the Methow Valley as well.
Stehekin resort owner Randall Dinwiddie said he doesn't think lack of flight service has affected business at his Silver Bay Inn, although reservations are down.
He said guests who planned to arrive on the floatplane did not cancel, but rather made other arrangements, usually on Lady of the Lake, a daily boat service.
"All of our guests (coming by plane) have been notified by Chelan Airways, so they've been really on top of that," he said.
But, Dinwiddie said, "Our reservations are down a little this year, and we haven't had any vacancies in July and August for many years, and this year we do," he said. He said Stehekin businesses aren't sure if gas prices are affecting travel to their resort community, which is on the doorstep of the North Cascades National Park.
Other resort owners could not be reached Friday to talk about reservations, or whether loss of the flight service has affected business.
Soehren said many people who flew to Stehekin on his aircraft were from around the country, and the world. "We have such a unique environment in our backyard. It's been an amazing revelation to find out how many people know of Stehekin from far, far away," he said.
K.C. Mehaffey: 997-2512
mehaffey@wenworld.com
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