In late 2005, the Port announced that it had entered into a lease with Western, a startup airline founded by two local businessmen with aviation experience.

Western operated as a "scheduled charter" service, with aircraft wet leased from Xtra Airways and was working through the process of gaining FAA approval as a commercial airline.

[citation needed] On February 7, 2007, Western suspended operations due to outstanding debts to suppliers, including Xtra Airways and the fuel vendor in Bellingham.

Xtra Airways continued service in order to return Western's passengers to their originating airport.

The company had been running into problems obtaining a merchant identification number, which was needed before banks would deposit money into the airline's account.