Hertz weighs departure from Pangborn as Port works to retain rental-car service

EAST WENATCHEE — Hertz has notified the Chelan Douglas Regional Port Authority that it is considering not renewing its rental-car agreement at Pangborn Memorial Airport, potentially leaving the airport with one on-site rental-car provider as it prepares to add daily Portland service.

Port officials discussed the notice during their Sept. 8 meeting, saying the local Hertz manager is continuing to explore options that could allow the company to remain at Pangborn.

“They sent us a letter saying that they’re looking not to renew their rental car agreement,” CEO Jim Kuntz told commissioners.

The possible departure comes amid a decline in rental-car business at the airport. Port officials said Hertz had expected roughly $500,000 in annual gross revenue from its Pangborn operation but generated closer to $400,000.

Because the Regional Port receives approximately 10% of Hertz’s gross rental revenue as a concession fee, that translates to roughly $40,000 annually for the Port.

The Regional Port’s supplemental 2026 budget reflects a broader decline in expected rental-car concession revenue at Pangborn, reducing projected revenue from $82,400 to $63,600.

Officials discussed several possible reasons for the softer market, including competition from rideshare services and the loss of longer-term corporate rental contracts.

Pangborn Airport Director Trent Moyers said Hertz pointed to the airport’s runway closure last September as one factor in the loss of some of those contracts. The closure occurred while some longer-term contracts were being awarded, and Hertz did not secure business it previously had.

“So what I would argue is that it’s an anomaly, and that it would right itself this year,” Moyers said.

Enterprise Rent-A-Car also serves Pangborn, although officials said its airport operation is less active than Hertz’s. Enterprise rents counter space at the airport but does not maintain the same back-office presence as Hertz, resulting in lower overhead costs.

The Regional Port wants to determine whether the decline represents a temporary disruption or a longer-term change in the local rental-car market. Staff plans to review two to three years of rental revenue, along with year-to-date 2026 figures, to identify any trends.

Kuntz emphasized the importance of maintaining rental-car service at Pangborn, particularly when travelers encounter disruptions or need an alternative way to reach their destinations.

The timing of Hertz’s notice comes as Pangborn prepares for its largest expansion of commercial air service in years.

Alaska Airlines will begin daily nonstop service between Wenatchee and Portland on Oct. 3, adding a third daily departure alongside Pangborn’s two existing Seattle flights. The Regional Port and Alaska are preparing a marketing campaign intended to build demand for the new route and its connections through Portland.

Additional passenger traffic could also create additional demand for rental cars, particularly among travelers arriving in the Wenatchee Valley.

Port officials indicated they want to move quickly in discussions with Hertz rather than allow the existing agreement to simply expire.

No action on the Hertz agreement was taken Tuesday, and Hertz continues to operate at Pangborn while those discussions continue.

Andrew Simpson: 509-433-7626 or andrew@ward.media