• OlSe 

irport 

June 8, 2012 

Ms. Aloha Ley 

Associate Director, Small Community Program 

1200 New Jersey Avenue SE 

Washington DC 20590 

Re: Legal Sponsor Boise Airport DUNS #155795230 EIN #82-6000165 Congressional District ID #02 

Dear Ms. Ley, 

On behalf of the Boise Airport and the Friedman Memorial Airport, please acceptthis letter and attached 

application as our joint proposal for funding for a grant from the US Department of Transportation under 

the Small Community Air Service Development Program. Boise Airport will serve as the official grant 

applicant and legal sponsor. 

We have agreed to join efforts in order to leverage our limited resources to improve air service and 

access to the entire region and improve connectivity between our communities. Decreased airline seat 

capacity, frequencies, and destinations, as well as increased fares, are posing significant challenges to 

the businesses and residents in Southwestern Idaho. As one of the most geographically isolated regions 

in the country, air service is critical to our economy and way of life. 

Our proposal has significant local support and financial contributions from both airports and various 

business organizations in both regions. 

By awarding this grant, you would be enabling the entire region of Southwestern Idaho to expand 

business relationships and improve opportunities for our communities. Please feel free to contact us with 

any questions. Thank you for your consideration. 

Sincerely, 

~~~ Rebecca Hupp, A.A.E 

Airport Director 

Boise Airport 

Rick Baird 

Airport Director 

Friedman Memorial Airport 
Boise Ab1Jort 

Consortium Grant Application Under The 

Small Community ir Service 

evelopment rant Program 

DOCKET OST-2012- 0069 

DUNS # 155795230 

Congressional District# ID-02 

Small Community Air Service Development Program OST- 2012 -0069 

1 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 2 

Table of Contents 

INTRODUCTION ......................................................................................................... 3 

TECHNICAL OUTLINE ·······~~················~~········································································ 4 

EUGIBILITY ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 5 

EXECUTIVE SUMMARY ................................................................................................. 6 

STATEMENT OF DEFICIENCY ................................................................................................... 6 

PROPOSED GRANT SOLUTION ................................................................................................. 7 

SPONSORS & PARTNERS ....................................................................................................... 7 

II. THE REGIONAL AIR SERVICE CHALLENGE ............................................................ 8 

CURRENT AIR SERVICE ......................................................................................................... 8 

AIRUNE SHARES AND CAPACITY TRENDS .................................................................................. 8 

CAPACITY SHIFTS- DOWNWARD ............................................................................................. 9 

THE CO-TERMINAL RELATIONSHIP- BOI/SUN ........................................................................ 10 

HISTORICAL TRAFFIC STATISTICS ......................................................................................... 11 

FARES TO THE US SOUTH ARE MUCH HIGHER THAN OTHER AIRPORTS .......................................... 11 

TRAFFIC DECUNES CONTINUE .............................................................................................. 12 

CURRENT SERVICE LEVELS RESTRICT ACCESS TO THE ENTIRE SOUTH ............................................ 14 

CURRENT ACCESS- CAPACITY CHOKE-POINTS ........................................................................... 17 

THE SOLUTION- ACCESS TO A SOUTHERN GATEWAY ................................................................ 18 

POTENTIAL FORECAST •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 19 

IV. THE GRANT STRUCTURE .........................•.......•.•..•..•.•.•...•.•.•............................... 20 

REQUIREMENTS ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••..•••••••••••••••••••••••••••••••••••••••••••••• 20 

LOCAL SUN-BOI CONNECTOR SERVICE •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 21 

IMPLEMENTATION & MARKETING PLANS .................................................................................. 21 

DISTRIBUTION OF FUNDING ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 22 

POST -PROGRAM SUPPORT ••••••••••••••••••••••••••••••••••••••••••••••••.•••••••••••••••••••••••••••••••••••••••••••••••••• 22 

Small Community Air Service Development Program OST- 2012-0069 
The Boise/Sun Valley 

situation fits the intent of 

the Grant Program: 

An air service deficiency, 

high fares, and a proposed 

innovative, attainable 

solution with low risk to 

the Department's funds. 

3 

Introduction 

The communities of Boise and Hailey (Sun Valley) believe that this grant 

application fully meets the intent of Congress in establishing the Small 

Community Air Service Development Grant Program nearly a decade ago: 

1. There is a clear and demonstrable air service deficiency. Lack of 

capacity and access to the US South is an economic detriment for 

the entire region of Idaho served by Boise Airport and by 

Friedman Memorial. 

2. Fares to the key targeted region are higher - much higher - than 

at other communities in the Northwest. This grant will provide 

much-needed fare discipline, especially in light of the fact that 

load factors over current gateways represent nearly full flights -

which generate higher fares. 

3. There is innovation in this proposal, in that it is a consortium of 

two communities with a shared interest in additional air service, 

plus an intra-regional service component, which, if successful, 

could be a model for other parts of the nation. 

4. There is limited risk for the Department. The data in this 

application demonstrate quite powerfully that the service this 

grant will make possible will tend in incubate more and additional 

service in the future. 1 

5. The communities involved have significant investment in this grant 

application, with strong in-kind support, along with the hard-dollar 

$210,000 contribution. 

For these reasons, the communities of Boise and Hailey respectfully 

request favorable consideration of this application. 

1 It is respectfully suggested that this grant will follow the template of earlier SCASD grants at 

Sarasota-Bradenton (SRQ) and Charleston/Yeager (CRW) where the service incubated by the grant 

became a foundation for additional air service access. 

Small Community Air Service Development Program OST- 2012 -0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 4 

Technical Outline 

A. The Idaho Air Service Consortium 

Boise Airport 

Friedman Memorial Airport 

Point of Contact For This Application: 

Ms. Rebecca Hupp 

Executive Director 

Boise Airport 

3201 Airport Way, Suite 1000 

Boise, Idaho, 83705 

(208) 424-5601 

B. Additional Community Members 

The Idaho Air Service Partnership - formed to submit and administer this 

grant - will represent the Community Members in this application 

c. Project Sponsor 

The Boise Airport will function as the official sponsor of this application. 

D. Brief Project Description: 

The grant is to be applied to a carefully-crafted program to address a 

significant air service deficiency that is adversely affecting the Boise-Sun 

Valley economy. 

There is a material deficiency in air service access to the US mid-South 

and Deep South from the region served by both Boise and Friedman 

Memorial Airport in Sun Valley. 

At this time, Boise (BOI) serves as a co-terminal to the region served by 

Friedman Memorial (SUN). For BOI, the lack of adequate access to the US 

South adversely affects the burgeoning high-tech industry in the region. 

For SUN, this lack of access, combined with the operational limitations of 

the airport, is a material detriment to the resort/ski industries in the Sun 

Valley Region. The US South is a major generator of ski business traffic to 

resorts in the US West. Currently SUN is cut off from this traffic demand, 

as well as the strong traffic generated in the summer months. 

The application requests a grant of $1 million dollars, to be accompanied 

by a local cash match of $210,000, plus in-kind incentives of over 

$50,000, to accomplish two main objectives: 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 5 

• Open up nonstop access to a major airline connecting hub in the 

South/Southeastern US. Targets would include Dallas/Ft/Worth, 

Dallas/Love, Houston/IAH. Houston/HOU, and Atlanta. 

• Concurrent with the establishment of air service to the Southern 

US, Seaport Airlines has committed to implement connecting 

service between Boise and Sun Valley. This will provide nearseamless air service to Sun Valley from dozens of points in the 

South. A portion of the grant will be used to market and establish 

this service and the new connectivity throughout the US. 

Eligibility 

Both BOI and SUN are fully compliant with the eligibility requirements as 

outlined in the Docket. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 6 

Executive Summary 

Statement of Deficiency 

This application outlines an air service deficiency affecting the 

communities served by Boise Airport and by Friedman Memorial Airport in 

Hailey/Sun Valley. 

Boise has evolved into one of the nation's top high-tech regions. One of 

the emerging deficiencies is the lack of access to the commercial and 

high-tech centers in the US South and US Southeast. The community has 

experienced loss of business expansion to other regions simply because 

of this deficiency in reasonable air access to the South. 

Due to operational limitations at 

SUN, Boise is a second air service 

co-terminal for Sun Valley ••• 

is grant will allow not only 

ad · ional access to BOI, but also 

to Su Valley. 

Air Distance: 96 Miles 

Drive Miles: 152 Miles· 2.75 ours 

Sun Valley, an important ski/resort community served by Friedman 

Memorial Airport (SUN), also has a deficiency in access to the US South, a 

region that is an important generator of national ski traffic demand. The 

South generates significant ski traffic in the winter and strong vacation 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 7 

traffic in the summer. Sun Valley is now at a material disadvantage in 

competing with other destinations for this business. 

Because of operational limitations at SUN, nearby Boise has evolved into 

a co-terminal air gateway for the Sun Valley region. 

The service which this consortium grant will make possible will address 

both of these deficiencies. 

Proposed Grant Solution 

The Consortium and its community partners herein are requesting a grant 

in the amount of one million dollars, to be matched by a local 

contribution of $200,000 to accomplish two basic goals: 

• Service to A Southern Gateway Hub. Establish service to a 

connecting hub in the South to alleviate the deficiency in access to 

points across that region of the nation. 

• Air Connections To SUN. Provide marketing and operational 

support to allow SeaPort Airlines to operate connecting service to 

SUN from BOI. This will be an important addition that will both 

strengthen the proposed major airline hub service, as well as open 

SUN to additional access. 2 

Sponsors & Partners 

The official sponsor of the application is Boise Airport. 

The community sponsorship will be directed and coordinated by the 

Idaho Air Service Partnership, which is a cooperative venture formed to 

assist in building air transportation in the region. This organization will be 

responsible for the community contribution, the marketing strategies, and 

other activities to assure that the proposed service is a success. 

2 As the Department knows, the operational limitations of SUN restrict flights to turboprops. 

Additional access via BOI on SeaPort will open up the market to new connectivity from the rest of the 

nation, as well as help support the nonstops between BOI and the target connecting hub. 

Small Community Air Service Development Program OST- 2012-0069 
Because of the operational 

restrictions at SUN, Boise 

Airport is a co-terminal for 

Sun Valley. 

The lack of access to the 

populous US South 

hampers both marketsSUN and BOI. 

Consortium Grant Application of Boise Airport& Friedman Memorial Airport 8 

II .. The Regional Air Service Challenge 

Current Air Service 

Boise offers the region strong access to key connecting hubs in the West, 

plus access to the Delta hub at MSP, and the United hub at 

Chicago/O'Hare. 

Sun Valley has year-round service only to the Delta hub at Salt Lake City, 

via 30-passenger EMB-120 turboprops. 

-· 

The route map clearly indicates that there is limited access to the US 

south. The air service access made possible by this grant will open Idaho 

to air commerce with this region. 

Airline Shares and Capacity Trends 

The current airline share picture at BOI shows no one dominant carrier. 

,;; ~0o:t10 "'Z'~:Sy'B h"Rf: >y "'"'"'"' 

;'--0ii!iJill<!tibg 

~"""'"" ' ~~ "'"L"~~ 

----. ~-·--··--~··· ~t~--- ··---~~----1-···--~:~·-·T---··--~:: -·---~---~~ ---

In 2011 - 2012, however, both American and Frontier exited the BOI 

market. While neither had a strong market share, the loss of Frontier 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 9 

service to its Denver connecting hub has exacerbated the lack of access 

to the South. 3 

Capacity Shifts - Downward 

Capacity has declined at BOI, and is currently scheduled to drop by nearly 

20% in the second half of 2012 v the same period of 2011. 

351 15,444 

LAX 351 -100.00/o 15,444 -100.00/o 

AS 2.:393 2.732. ··~8'/o ... ~,~ 2(17,632 .15.ff'lo 

LV\.6 1.58 157 -o.e>lo 12.003 11,932 -o.e>/o 

FD< 711 fE2 25.50/o 54,(86 67,r.Jl. 25.50/o 

SE'A 1,147 1,316 14.7C'Io 87,172 100,016 14.7"/o 

SJC 183 184 0.50/o 13,9)3 13,!}34 0.50/o 

S1VF 160 183 14.4% 12.:trp 13,9)3 14.4'/o 

li 1,5'13 1,326 -14.1°/o ··147,316 134,350 -&solo 

1\/EiP 444 462 4.1°/o 38,224 <J2.s;x) 12.2% 

SI.C l,OB 854 -21.4'/o l.OO,<m 91,400 -16.2."/o 

F9 19) -100.00/o 19,352 -100.00/o 

[E\J 19) -100.00/o 19,352 -100.00/o 

K5 ~ :. l(X).OO/o .4,437 -lOO,(J>/o 

10\ 420 -100.00/o 3,78) -100.00/o 

FOr 73 -100.00/o f57 -100.00/o 

U\ 2.376 2.426 .21% :161,816 161,684 -o.1% 

[E\J 889 839 -5.6"/o 67,W4 00,834 3.2."/o 

LAX D) 341 13.7"/o 15,cx:D 17,274 15.2."/o 

rno 354 3S7 O.Sl/o 36,6:56 27,193 -25.Sl/o 

SfD 833 889 6.7"/o 42_456 47,378 11.6"/o 

lE 373 391 4.Sl/o 47,()!14 51,316 9.1°/o 

A-K 373 391 4.Sl/o 47,044 51,316 9.1°/o 

\f\A\1 3,004 1,743 -42.00/o 410,(93 238,071 -42.00/o 

[E\J 359 317 -11.7"/o 48,748 43,429 -10.9% 

(ffi 375 333 -11.2."/o 51,375 45,621 -11.2."/o 

LAS 366 351 -4.1°/o !:D,142 48,007 -4.1°/o 

01.1< 351 29) -17.4% 48,007 39,73) -17.4'/o 

FD< 338 294 -13.00/o 45,856 39,558 -13.7"/o 

A-K 185 1.58 -14.6"/o 25,3'15 21,6'16 -14.6"/o 

Rf\0 340 -100.00/o 46,!:ID -100.00/o 

SE'A 356 -100.00/o 48,772 -100.00/o 

SI.C 334 -100.00/o 45,758 -100.00/o 

-:19..1°/o 

In the past year, BOI has lost five major airline routes. American dropped 

service to Los Angeles, Southwest dropped service to Reno, Seattle and 

to its hub at Salt Lake City. Frontier ended flights to its hub at Denver. 

These reductions were due mostly to strategic shifts at the airlines 

involved, and not due to lack of traffic. Southwest is re-aligning its route 

system and moving aircraft from point-to-point markets.4 American is redeploying its fleet of 66-seat jets, and Frontier is shifting capacity to 

3 The AA flights discontinued were to LAX, which provided very low levels of connectivity to other 

points on the American system. 4 This is a system-wide strategic move. Airports such as Austin, Albuquerque, and Midland/Odessa 

have seen similar reductions. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 10 

Orlando markets. BOI is a strong market that can support the service 

outlined in this application. 

The Co-Terminal Relationship- IBOI/SUN 

It is clear that the need for this new service can be justified on the basis 

of the traffic that can be generated by BOI alone. However1 because of 

the limited operational capabilities at Friedman Memorial Airport1 Boise is 

the de facto co-terminal for access to Sun Valley. Therefore1 an increase 

in access at BOI is concurrently an improvement in access to the Sun 

Valley area as well. 

But to help improve traffic to both BOI and SUN1 a portion of the grant 

funds will be used to support the establishment of service by SeaPort 

Airlines between BOI and SUN1 offering consumers in the South the 

additional option of flight connections direct to Sun Valley over BOI. 

Hopefully1 the dependence on BOI as a gateway to Sun Valley will be 

lessened with the construction of a new airport in the Sun Valley area to 

replace Friedman Memorial. However1 such an event is literally years 

away1 and the economy of the Sun Valley region has an immediate need 

for additional air service access. To this end1 the communities have opted 

to work together to address this air service deficiency. 

The plan is to have SeaPort airlines begin operations between BOI and 

SUN as a part of a plan to gain additional ridership on the route proposed 

in this application. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 11 

Historical Traffic Statistics 

The Boise - Sun Valley Region has experienced a combined decline in air 

passenger traffic of almost 18% in the past five years. 

Reviewing scheduled passenger O&D for the past five years indicates the 

following: 

• Boise fare levels have increased by 23.0% 

• O&D passengers have declined by 17.4% at BOI, and 19.0% at 

Sun Valley 

• There is a huge OW fare variance between BOI and SUN. This has 

declined in the past five years, due to average fare levels 

increasing at BOI, but the high costs of flying into SUN are 

responsible for low load factors at Sun Valley. 

... .a a·: ... .: ·Iiiii •11~1 

B:lise ! 

OID F'a:;serg:rs 3,131,EB4 2,911,821 2,m3,633 2,681,893 2,583,4:<6 

LJ:a:l R:dcr 72.0'/o 65.9'/o 71.3% 73.3% 754% 

A\QO/VPcre $163.92 $171.88 $16892 $183.27 $201.54 

' 

Sun Valley 

OID F'a:;serg:rs 12B,cro 132,768 1,a:9,535 113,6;?3 103,787 

LJ:a:l R:dcr 49.8'/o 52.9'/o 63.7% 00.1% 00.8'/o 

A\QO/VPcre $277.49 $285.04 $257.63 $252.44 $243.97 

Preliun o.e- BO 63.3'/o 65.8'/o 52.5% ::s7'.7% 21.1% 

lillO:'o om ill:"'·'"' •• ,..::, . " ,.,a~:..: .... !:.l'..r: '.o1!-'"ii-..I(~.:D 

Fares To The US South Are Much Higher Than Other 

Airports 

. Glolil.ell 

: 

-17.4'/o 

23.0'/o 

-19.0'/o 

-12.1% 

;r.-..-v.t.li!ll 

One of the outcomes of the lack of nonstop service to a true Southern US 

hub gateway are higher fares. When comparing actual fares per-mile that 

are charged to key points in the South from BOI, the data is very telling. 

To demonstrate this, fares between key markets in the West/Northwest 

to nine representative destinations in the US South were compared with 

those at Boise. 5 

5 These are DFW, IAH, FLL, MSY, JAX, MIA, SAV, CHS, BHM. Fares are per-mile averages for full-year 

2011, based on DOT data analyzed by Aviation DataMinerrM. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 12 

Actual fares paid per-ticket are not valid comparisons, due to differences 

in sector differences. Therefore, the fares charged per mile to these 

cities is the true apples-to-apples metric. 

Based on this approach, it is clear that the cost of air travel is much 

higher at BOI than other cities in the region: 

AVQ Fare Per ~le . $0.1391 $0.12AO $0.1260 $0.1085 : $0.1263 

I30J Fare Penatlt¥ 

The data are illustrative of the air service deficiency that the grant will 

address. 

Traffic Declines Continue 

These fare differentials and lack of access are part of the reason that BOI 

traffic has seen a decline. In addition, Boise has suffered a decline in 

enplanements even over the past year, plus a paradoxical increase in 

airline net fares - that which the airline charges before federal fees and 

taxes - of almost 16%. 

600.000 

I! 

!l. 

J 400.000 

W•il•oJM 

201004 

!'91,734 

$164./6 

0&0 Passenger Trend 

201101 

IX>?,919 

$17aED 

201102 201103 

Em,125 6<18,649 

$171.73 $181.C6 

$181.05 5200.00 

;11 $100.00 a 

550.00 

50.00 

201104 

3,:!67,810 -3.39'/o 

$1GafD 16.91% 

Note that the fares shown are one-way averages, net to the airline, and 

do not include all-up federal fees and taxes. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 13 

The traffic mix and demand profile at SUN is entirely different from that 

of BOI, but there are equally disquieting trends when the data is 

reviewed. 

0&0 Passenger Trend 

5,000 

2010Q4 2011Q1 

f!;g. ' 2J,:'ffi ! 34,7S2 

N;i a.. W!l Fire $212.92 ! $19192 

19.~ 

$DI.IE 

2011Q2 

32,~1 

$229.76 

2011Q3 2011Q4 

1~173 ! -1!175'/o ' 

$21nsi · iif>F/o 

The note that the fares for the third quarter of the years shown - one of 

the peak quarters for the market - jumped over 20%. This trend is not 

expected to reverse, given high fuel costs. Also, note that the fare 

differential for using SUN instead of BOI is very substantial - using the 

3Q of 2011, this represented a 34% penalty for using SUN. This is clearly 

a deterrent to using SUN. This grant will provide additional net-new 

competition, as well as enhanced service convenience, that will address 

this situation. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 14 

Current Service Levels Restrict Access To The Entire South 

Sun Valley - Friedman Memorial Airport 

Because of the operational restrictions at SUN, there are two very real air 

service deficiencies that are immediately apparent: 

Very high fares - on average almost 25% higher than at Boise. This is 

due to the smaller aircraft that must be used, as well as the lack of 

capacity in the peak months of the year. 

Almost no local access to the Southern United States. The data 

regarding connect destinations for the year-round service offered by 

Delta Air Lines, via SkyWest over Salt Lake City is very compelling: 

•• ".,~ < T~tal 60520 ' ~ ~ ' ~ ~ " 

1 JFK 5,195 7.1 

2 LAX 4,295 5.9 

3 SFO 3,073 4.2 

4 SNA 2,567 3.5 

5 DEN 2,465 3.4 

6 BOS 2,149 2.9 

7 EWR 2,036 2.8 

8 SEA 2,036 2.8 

9 OAK 1,848 2.5 

10 ORD 1,816 2.5 

In the top ten markets, not one is in the US South. This is simply due to 

the fact that the Delta Air Lines hub at SLC offers almost no nonstop 

service whatsoever to points in the South. Even connectivity to that 

carrier's hub at Atlanta is low- it is #17 among connecting destinations.6 

The finding is that access to the SUN region is effectively non-existent 

from the US South. This is not inconsequential, as the ski resort industry 

is highly dependent upon air access to remain competitive. 

6 Source: US DOT data for full year 2011, analyzed by Aviation DataMinerTM 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant: Application of Boise Airport& Friedman Memorial Airport 15 

As a resort destination, this puts it at a severe disadvantage to other 

resorts such as (for examples only) Eagle-Vail (EGE), Aspen (ASE) and 

Montrose (MTJ). Note that, unlike the examples above, the geographic 

location of SUN makes air access far more critical, as SUN does not have 

relatively easy road access to a major population center. 

We can use Eagle-Vail (EGE) as an example of the disadvantage that Sun 

Valley experiences as a result of lack of access to the South from either 

SUN or BOI. Below is the lQ (peak quarter) traffic distribution for EagleVail (EGE) the major air gateway to resorts in both Vail and Aspen: 

. . 

Top2D! 1~~ ·-·souihr -[~iii""] r--·--... 5 __ ;...... .. _"+----rrw-·------j-· .. -----"-l ~-"-_.~So._'"'~:dh_r_·-·n_ ..... ~~] 

~~~-~-b----~:+-·:~---·-1. . 

10,936 

9 All 9,530 

10 

11 1PA 3,738 

13 MD 3,412 

14 JAD 3,163 

15 A-l 2,857 

16 2,738 

17 RilJ 2,257 

19 AlE 2,131 

20 A3[ 2,099 "---·-·--"----~--

Half of the top twenty O&D destinations are in the Southern US (bold 

red) and comprise over one third of total air travelers. While the traffic at 

Friedman Memorial is constricted for the foreseeable future due to 

operational limitations, BOI has no such restrictions. The service this 

grant will make possible will allow Sun Valley to capture their share of 

this ski market, which is important to the local economy. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport&. Friedman Memorial Airport 16 

Boise Airport Connectivity 

BOI suffers the same basic air service deficiency as does SUN - the lack 

of access to a key Southern US-centric gateway simply chokes off traffic 

demand from that region. 

This is a very real problem, in that access to high-tech points such as 

Austin, Raleigh-Durham, Greensboro, San Antonio, not to mention key 

commercial centers such as Charleston, Savannah, and Jacksonville puts 

the Boise region at a disadvantage in attracting new business investment. 

Looking at the Delta connectivity for BOI finds a picture very similar to 

that at SUN: 

SLC .· 

f _· 

i 3 

I 

1---- - ~ ~--

~-­

I 

1-- ·--~ .. 

7 

8 

9 

! ..... 10 

1. ..... . 

. 28,8;748 

13,605 

13,311 

12,691 

12,192 

7,540 - ·-----···---·-·-· -···-

7,405 

5,884 

·-·---·-·· .. 

5,345 

Tag this onto the lack of Southern access to SUN, and a serious case can 

be made that this application falls squarely within the intent of Congress 

in implementing the Small Community Air Service Development program. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport&. Friedman Memorial Airport 17 

Current Access- Capacity Choke-Points 

Currently, the air service between the US South and the BOI/SUN region 

is effectively choked due to high load factors. The two main gateways for 

connecting access to the Southern US - United/Denver and 

United/Chicago experience load factors in excess of 80%: 

viation 

DataMiner 

Data is for the full year 2010, and illustrates that the region has a 

deficiency in service access to commercial points in the Southern United 

States. 

To be clear, the forecasts indicate that new service via another airline 

gateway will also experience high load factors. This is another indication 

of the strong potential for success of the grant-induced service. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 18 

The Solution -Access To A Southern Gateway 

The Airport and the community believe that the addition of nonstop 

service to a key gateway hub will materially increase air service 

connectivity and provide fare discipline to already disproportionately high 

fares in the region. 

Examples of two airline 

gateways that will open 

Idaho to key commercial 

centers in the Southern 

United States. 

Shown are the American hub at DFW International and the United hub at 

Houston Intercontinental. These are likely to prime target airlines, but not 

the only ones that can address this deficiency. Delta/Memphis and 

Southwest/HOU or Southwest/DAL are also potentials, albeit less obvious 

ones. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 19 

Potential Forecast 

Based on the current high load factors experienced at BOI, plus the 

expected additional feed traffic from the SeaPort connecting service, it is 

expected that the new service will be highly profitable for the target 

carrier, thereby putting the Department's funding at low risk. 

While changes in the airline industry can and will affect how the new 

service will operate, a preliminary forecast of American/ American Eagle 

CRJ-700 service to that carrier's DFW hub is encouraging: 

801-DFW Mileage 

Equipment 

Service Pattern 

Annual Segments 

Completion Factor 

Annual Seats 

AnnuaiASM 

Estimated CASM 

Full Year Segment 

Operating Margin 

Segment RPMs 

Se ment Load Factor 

Small Community Air Service Development Program OST- 2012-0069 

1,272 

CRJ-700 

1 RT 

715 

98% 

45,070 

57,329,294 

0.146 

145 

$321,404 

3.7% 

48,841,456 

85.2% 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 20 

IV .. The Grant Structure 

The Airport and community are requesting a grant in the amount of $1 

million, with a match in funding locally of $210,000. The goal is to recruit 

a carrier to serve BOI from a Southern US gateway, as well as support 

establishment of connecting commuter service between BOI and SUN to 

generate additional traffic on the route. 

This funding will be used for three basic applications to assure success of 

the program: 

• A risk-abatement in the amount of up to $1.025 million for the 

target carrier. 

• Marketing & station establishment offsets for the SeaPort SOlSUN service in the amount of up to $25,000. This would entail 

costs of moving staff, positioning or equipment, and other 

expenses directly related to beginning service. 

• Up to $150,000 to be applied to a highly-targeted market base to 

support the new gateway hub service. 

Requirements 

Flight Schedule Boise To New Gateway 

To be eligible for the program funds, an airline will need to commit to the 

following: 

• Operation with jet aircraft with 60 seats or greater. This would be 

at minimum CRJ-700 airliners. Larger, mainline aircraft can also 

be supported. 

• Operation on at least a 6-day round-trip basis, by a carrier with a 

hub at the gateway; 

• Targets include 

DFW I American 

IAH/United 

ATL/Delta 

HOU/Southwest 

DAL/Southwest 

MEM/Delta 

• Fare levels within 10% of current connecting service (average); 

• Commitment for one year of service; 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 21 

• Commitment to good faith marketing of the new service. 

Risk Abatement Program 

The Airport will negotiate a strict agreement with the target carrier 

outlining the following: 

• The agreed-upon cost for the segment operated, including a 

reasonable, agree-upon profit hurdle. 

• The allocation of funds for the risk-abatement will be determined 

by the contribution the new route makes to the target carrier, 

including both local O&D to the hub city, as well as credit applied 

for net-new connecting traffic beyond the hub. 

• Because of the seasonality of the market, the accounting for the 

risk abatement is envisioned to be accomplished preferably on a 

six-month basis. 

local SUN-BOI Connector Service 

The grant will allocate up to $40,000 to offset the costs of SeaPort 

establishing service in the SUN-BOI market. It is envisioned that this will 

include a minimum of two daily round-trip flights with 9-seat turboprop 

airliners. In exchange, SeaPort will agree to operate BOI-SUN service for 

a minimum of two years, unless the BOI-South flights are terminated 

earlier. A revenue trigger will be included. This would allow SeaPort to 

discontinue the service should traffic and revenues not meet agreed-upon 

goals within a six-month time period. 

Note that the funding for this section is to facilitate the opening of 

stations at BOI and SUN. The carrier is not requesting revenue 

guarantees. 

Implementation & Marketing Plans 

The Idaho Air Service Partnership will be the entity administering the 

community relations and regional marketing for the program. 

The program is envisioned to be in place for a period of 24 months, 

beginning on the date of the start of service to the gateway hub. 

The marketing plan will be focused on the access provided by the 

specific carrier selected to provide the BOI-South access: 

• The Sun Valley Resort has extensive data regarding key consumer 

targets in the South/Southeast. This will provide strong marketing 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& friedman Memorial Airport 22 

assistance for both the new Boise-South service and the 

connector service. 

• Boise marketing will focus on both business and leisure targets in 

the gateway city and in the region accessed by the target carrier's 

connecting route system. 

• The program will set pre-determined revenue targets for the new 

BOI-South service, based on reviews every six months. Specific, 

agreed-upon revenue targets - including local and connecting 

traffic to and over the gateway hub - will be set, and it is 

envisioned that the determination of the risk-performance will be 

accomplished after each six months of service. 

Distribution of Funding 

The majority of the funds will be allocated to the risk-guarantee. Media 

and promotional costs in the BOI region allow wide coverage for a 

relatively low amount of funding. 

Post-Program Support 

As the high-tech industry continues to expand in Idaho, the communities 

of interest with similar regions in the South will expand. 

As a result, it is fully expected that the service will be immediately 

successful, based on the traffic forecast and the fact that existing service 

that accesses the US South is at 80% load factors and above. The 

community intends to work with key employers in both Boise and Sun 

Valley to assure that the new service will be permanent. 

Small Community Air Service Development Program OST- 2012-0069 
Consortium Grant Application of Boise Airport& Friedman Memorial Airport 23 

Small Community Air Service Development Program OST- 2012-0069 
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET OST -2012-0069 

SUMMARY INFORMATION 

APPENDIXC 

Page 1 

All applicants must submit this information with their proposal, along with a completed form SF424 on http:// 

www.grants.gov. 

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

0 Not a Consortium 0 Interstate Consortium XD Intrastate Consortium 

0 Community now receives EAS subsidy 

Cd Community (or Consortium member) previously received a Small Community Grant 

If previous recipient: Date of Grant: Expiration date of grant: ___ _ 

Federal Funds Requested: 

Carrier(s) Service Obtained: 

Destination(s) Served: 

B. PUBLICIPRIV ATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) 

Public Private 

1. _Boise/Friedman Memorial Airports __ 

2._State of Idaho Dept of Commerce __ 

l._Fiy Sun Valley Alliance. _________ _ 

2._Sun Valley Resort. ____________ _ 3 .. __________________________ __ 3._Sun Valley Marketing Alliance. ___ _ 4. ____________________________ ___ 4._Hailey Chamber of Commerce. ___ _ 5. _________________________ _ 5._Boise Chamber of Commerce. ______ _ 

6._Boise Valley Economic Partnership __ _ 

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) 

XD Marketing 0 0 Upgrade Aircraft 0 X New Route 

[(] Travel Bank 0 0 Service Restoration 0 Subsidy 

[[] Surface Transportation 0 X Regional Service X Revenue Guarantee 0 

X Launch New Carrier X Start Up Cost Offset 0 First Service 

0Study 0 X Secure Additional Carrier 0 Other (explain below) 
D 

D. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

APPENDIXC 

Page 2 

0 Full ILS 0 Outer/Middle Marker 0 Published Instrument Approach 

0 Localizer 0 Other (specify) 

E. PROJECT COSTS: DO NOT ENTER TEXT IN SHADED AREA 

LINE DESCRIPTION SUB TOTAL 

1 Federal amount requested 

2 State cash financial contribution 

Local cash financial contribution 

3a Airport cash funds 

3b Non-airport cash funds 

3 Total local cash funds (3a + 3b) 

4 TOTAL CASH FUNDING (1+2+3) 

In-Kind contribution 

Sa Airport In-Kind contribution** 

Sb Other In-Kind contribution** 

S TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) 

6 TOTAL PROJECT COST ( 4+8) 

F. IN-KIND CONTRIBUTIONS** 

TOTAL AMOUNT 

For funds in lines Sa (Airport In-Kind contribution) and 7b (Other In-Kind contribution), please describe the 

source(s) offund(s) for each. 

The Sun Valley Resort, Visit Sun Valley, Hailey Chamber of Commerce, the Boise Chamber of Commerce and 

Boise Chamber of Commerce have all committed to funding marketing and outreach to _promote the new service. 

Activities include: on line and print advertising, special promotions, targeted email campaigns, social media, 

packaging, and trade show attendance. 
APPENDIXC 

Page 3 

G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 

PROCESS? NO 

0 a. This application was made available to the State under the Executive Order 12372 Process for review on 

(date). ______ _ 

0 b. Program is subject to E.O. 12372, but has not been selected by the State for review. 

0 c. Program is not covered by E.O. 12372. 

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF "YES", PROVIDE EXPLANATION) 

XO No D Yes (explain) 
Mike Crapo 

United States Senator 

239 Dirksen Senate Office Bldg. 

Washington, D.C. 20510 

James E. Risch 

Unite States Senator 

483 Russell Senate Office Bldg. 

Washington, D.C. 20510 

Ms. Aloha Ley 

it . . • . 1f 

<JjjLEG~~O~ 

June 4, 2012 

Associate Director, Small Community Program 

U.S. Department of Transportation 

1200 New Jersey Avenue SE 

Washington DC 20590 

Dear Ms. Ley: 

Mike Simpson 

Member of Congress 

2312 Rayburn House Office Bldg. 

Washington, D.C. 20515 

We write in support for the joint grant application submitted by the Boise Airport and the 

Friedman Memorial Airport (Sun Valley) to the US Department of Transportation for funding 

under its Small Community Air Service Development Program (SCASD). 

It is our understanding that these airports and communities have been disproportionately 

affected by recent changes in the aviation industry and the present economic downturn, 

resulting in a near 20% decrease in airline seat capacity in these markets and an equally 

dramatic increase in the average air fare. This joint proposal seeks to take aggressive action to 

reverse the current trend in a way that is sustainable by improving hub connectivity and linking 

both communities. 

Approval of this proposal will provide the funds to cover station startup costs for the service 

connecting the two communities, provide a financial incentive to a carrier that improves access 

to the national transportation system by adding a new hub, and leverage the communities' 

investment in marketing the new service. This effort will fill a demonstrated need for greater 

seat capacity, improved connectivity and increased travel options. 

We urge the Department of Transportation to give this application all due consideration. 

Sincerely, 

~ Mike Crapo 

United States Senator 

d&~ James E. Risch 

United States Senator 

Mike Simpson 

Member of Congress 
Boise Metro Chamber of Commerce 

Ms. Aloha Ley 

Associate Director, Small Community Program 

1200 New Jersey Avenue SE 

Washington, DC 20590 

Dear Ms. Ley, 

Boise Valley Economic Partnership (BVEP) 

Boise Young Professionals 

Leadership Boise 

June 7, 2012 

On behalf of more than 100 travel industry related businesses in Idaho, please accept this letter of support for 

the joint Boise Airport I Friedman Memorial Airport (Sun Valley) proposal before the US Department of 

Transportation for a grant under the Small Community Air Service Development Program. 

Boise is the largest, most geographically isolated urban area in the United States and air service is critical to 

the vitality of our local economy. The Boise Metro Chamber of Commerce's Travel Industry Advisory 

Board recognizes that expanded air service is not only crucial to existing businesses, but to also generate and 

attract new businesses and investment in the region. Boise has lost service to Denver, Los Angeles, Reno, 

Salt Lake, and Seattle. 

Decreased airline seat capacity in these markets has added to the challenges for local businesses and 

residents of the area to connect to the national transportation system. Fares have also skyrocketed, thus 

increasing the cost of doing business in an already difficult economic environment. 

The Chamber's Travel Industry Advisory Board is made up of Idaho companies representing airlines, car rental 

firms, hotels, travel technology firms, ski areas, wineries, travel agencies, corporate travel departments, parks, 

attractions, sports venues, convention centers, meeting planners, and related travel industry enterprises. A list 

of signatories is attached. 

Should the grant request be successful and we are able to lure additional service, the Boise Chamber's Travel 

Industry Advisory Board stands ready to make an in-kind commitment of $1 ,000 over two years. 

Thank you for your consideration. 

Sincerely, 

John Cunningham 

Chair, Boise Metro Chamber of Commerce 

Travel Industry Advisory Board 

250 South 5th Street, Suite 300 * P.O. Box 2368 * Boise, Idaho 83701 

208.472.5200 * FAX 208.472.5201 * www.boisechamber.org 
Ms. Aloha Ley 

Boise Metro Chamber of Commerce 

Boise Valley Economic Partnership (BVEP) 

Boise Young Professionals 

Leadership Boise 

June 7, 2012 

Associate Director, Small Community Program 

1200 New Jersey Avenue SE 

Washington, DC 20590 

Dear Ms. Ley, 

On behalf of the Boise Metro Chamber of Commerce, please accept this letter of support for the joint Boise 

Airport I Friedman Memorial Airport (Sun Valley) proposal before the US Department of Transportation for a 

grant under the Small Community Air Service Development Program. 

The nearly 2,000 members of our organization that employ more than 85,000 people recognize that air service 

is integral to our region's economy. Boise is the largest, most geographically isolated urban area in the United 

States. As such, good air service is critical to the vitality of our local economy. Expanded air service is crucial 

to not only existing businesses, but to also generate and attract new businesses and investment in the region. 

Boise has lost service to Denver, Los Angeles, Reno, Salt Lake, and Seattle. These connections are vital to 

our community and we strongly support all efforts to recruit service that provides improved access to airline 

hubs and connectivity between these two Idaho communities. 

Decreased airline seat capacity in these markets has added to the challenges for local businesses and 

residents of the area to connect to the national transportation system. Fares have also skyrocketed, thus 

increasing the cost of doing business in an already difficult economic environment. Our citizens are dependent 

on air service that is reasonable and competitive in our ever changing market. By awarding this grant, you 

would be enabling the entire region of Southwestern Idaho to expand business relationships and improve 

opportunities for our communities. 

Should the grant request be successful and we are able to lure additional service, the Boise Chamber stands 

ready to make a cash commitment of $10,000 and an in-kind commitment of $10,000 over two years. 

We are proud of our continued partnership with the Boise Airport and look forward to working together to grow 

the region. Thank you for your consideration. 

Sincerely, 

Bill Connors 

President & CEO 

250 South 5th Street, Suite 300 * P.O. Box 2368 * Boise, Idaho 83701 

208.472.5200 * FAX 208.472.5201 * www.boisechamber.org 
BOISE VALLEY 

economic partnership 

June 2, 2012 

Ms. Aloha Ley 

Associate Director, Small Community Program 

1200 New Jersey Avenue SE 

Washington DC 20590 

Dear Ms. Ley, 

On behalf of the Boise Valley Economic Partnership (BVEP), please accept this letter of support 

for the joint Boise Airport I Friedman Memorial Airport (Sun Valley) proposal before the US 

Department of Transportation for a grant under the Small Community Air Service Development 

Program. 

Affordable and convenient air service is integral to our region's economy, business development, 

and business recruitment. BVEP supports the Boise Airport and Friedman Memorial Airport 

efforts to expand and improve air service to the region. Better air service is a top priority for us 

in recruiting new businesses to the region. We are committed to making any new service a 

success. 

Due to the large geographic area served by these communities combined with the fact that Boise 

is the largest, most geographically isolated metropolitan area in the country, good access to air 

service is critical to our economy. Quality air service is imperative to our ability to attract and 

retain both businesses and people. By awarding this grant, DOT would enable these airports to 

pursue service that will be sustainable and would provide a long term benefit to area businesses 

and residents. 

The Boise Valley Economic Partnership board would certainly consider and support some 

matching funds toward this much needed effort. 

We are proud of our continued partnership with the Boise Airport and look forward to working 

together to grow the region. Thank you for your consideration. 

Sincerely, 

Clark Krause 

Executive Director 

Boise Valley Economic Partnership 

Boise Valley Economic Partnership 

250 S. 5111 Street, Ste 300, Boise, ID 83702 

www. bvep.org 
June 6, 2012 

Ms. Aloha Ley 

Associate Director, Small Community Program 

1200 New Jersey Avenue SE 

Washington DC 20590 

Dear Ms. Ley, 

I 

DEPARTMENT OF COMMERCE 

C.L. "BUTCH" OTTER, GOVERNOR 

JEFFERY SAYER, DIRECTOR 

On behalf of the Idaho Department of Commerce, Division of Tourism Development, please accept this 

letter of support for the joint Boise Airport I Friedman Memorial Airport (Sun Valley) proposal before 

the US Department of Transportation for a grant under the Small Community Air Service Development 

Program. 

Quality air service is an integral part of our state's economic vitality, and tourism's sustainability and 

growth. Sufficient capacity and affordable air service is critical to the tourism industry. In the past year 

airline seat capacity has decreased in these markets by nearly 20% while prices increased. 

Sun Valley and Boise are excellent convention and meeting locations as well as desirable leisure 

destinations, however the lack of available seats can negate the otherwise positive decision to visit or 

have a meeting. This results in significant lost opportunities and economic impact to the entire state. 

As a gateway to the some of the State's most popular tourism destinations, these airports serve as 

important inbound transportation centers for our visitors and convention travelers. We strongly support 

their efforts to recruit service to connecting hubs and linking the two communities which will increase 

capacity and improve accessibility. 

I am confident the award of this grant would yield positive, measurable results and new opportunities for 

these communities and the State of Idaho. 

Sincerely, 

1~/ldlaJ 

Karen Ballard 

Administrator, Division of Tourism Development 

700 West State Street o P.O Box 83720 • Boise, Idaho 83720 • Tel: 208-334-2470 • Fax: 208-334-2631 • Web: commerce.idaho.gov 

Equal Opportunity Employer 
June 5, 2012 

Ms. Aloha Ley, Associate Director 

USDOT Small Community Program 

1200 New Jersey Avenue SE 

Wasbington DC 20590 

Re: Boise Airport SCASDP FY'13 Grant Application 

Dear Ms. Ley: 

The Friedman Memorial Airport Authority expresses its robust support and partnership with Boise 

Airport (801) for the submittal of a USDOT Small Communities Air Service Development Grant for 

FY'13. This grant is pursued with the goal of securing new, daily non-stop service from areas 

such as US Mid-South and Deep-South market area and for the establishment of new commuter 

service between Boise and Sun Valley (SUN). 

Numerous organizations and businesses in the Sun Valley area as well as in Boise are working 

diligently to develop, market and retain leisure and business travel to our region. It is clear that 

economic recovery and development hinges on increased air service access. The Friedman 

Memorial Airport Authority is fully engaged in collaboration with Boise Airport - as our two facilities 

are the primary access portals to the Central Idaho Reg1on -to cont1nue development of access 

options for our citizens, visitors and bus1ness community. This collaboration is an obvious "winwin" for all, mcluding a1r carriers. 

Marketing Support For New DFW- BOI Non-Stop Service and 801-SUN Commuter Service 

In support of new service to BOI from locations such as DFW, Friedman Memorial Airport 

Authonty would: 

• Commit $3000.00 to airport specific advertising efforts for this service. 

• Commit $10,000.00 in support of General Air Service studies for the purpose of acquiring 

information in support of DFW-801 non-stop service, as well as BOI-SUN commuter 

serv1ce. 

Waive allla11ding fees ror the first year, for scheduled arr carrier service between 801 and 

SUN. For example, if the commuter aircraft were a Pilatus PC-12, this would represent a 

discount of $9,917.05, based on two daily arrivals for one year. If the aircraft were a 

Cessna Caravan 2088 the discount, based on the same frequency, would be $7,592.00. 

In either case. the discount would be tendered with the understanding that 50% of the 

savings to the air carrier would be re-invested by the air carrier, in marketing for this 

speciftc air service. 
Ms. Aloha Ley 

June 4, 2012 

Page 2 

Recent passenger surveys at SUN demonstrate that in excess of 45% of local resident travelers 

using SUN do so for business travel. A recently completed Passenger Demand analysis reveals 

that 62% of Sun Valley local area residents ny out of another regional airport than SUN. primarily 

BOI. There is an unquestionable opportunity to support daily business travel between Boise and 

the Sun Valley area as well as the obvious connecting access option for travelers continuing 

down line from BOI. 

Significant national and global companies such as Power Engineers, Smith Sport Optics, Scott 

USA, ScottEVest, Omni Health Media, Marketron and Rocky Mountain Hardware all utilize the 

Sun Valley area for their respective headquarters. Because these companies do conduct 

extensive business nationally and globally, air service is critical for them. New air service to 

regions such as the Dallas-Fort Worth area, coupled with connecting service between Sun Valley 

and Boise, is key to the long term economic stability and growth of these companies. 

We respectfully ask for your consideration of this SCASDP grant request from Boise Airport; it is 

key to maintaining a stable and growing economy for our respective communities as well as for 

the entire state of Idaho. We are enthusiastic and stand ready to partner in making these new air 

service programs a resounding success. 

~~.~>'.· fi~~ ·~" . .., ,., . 

T~ ~~~h. Chairman 

Friedman Memorial Airport Authority 

. : .. ~, .. . :.·; · .. , 
IT’S ABOUT TIME 7505 NE Airport Way, Portland, Oregon 97218 Telephone: 888-573-2767 Fax: 971-732-7678 Web: SeaPortAirlines.com

June 8, 2012

Ms. Aloha Ley

Associate Director, Small Community Program

US Department of Transportation

1200 New Jersey Avenue SE

Washington DC 20590

Dear Ms. Ley,

On behalf of Sea Port Airlines, please accept this letter as our statement of interest in operating a 

connecter service between the Boise Airport and Friedman Memorial Airport in Hailey/Sun Valley. The 

Airports’ joint proposal before the US Department of Transportation for a grant under the Small 

Community Air Service Development Program would remove a significant impediment to Seaport’s ability 

to begin this new route by providing some assistance with station start-up costs and assistance with 

ground handling in Sun Valley. We would welcome marketing support from both of communities as well.

We are confident in the economic viability of this route and are not requesting risk abatement funds. The 

award of this grant would yield positive results and new opportunities for these communities and 

significantly improve air service within the State of Idaho. 

Sincerely,

Timothy Sieber

Vice President of Strategy and Corporate Development Sea Port Airlines

Respectfully,

Timothy F. Sieber

VP – Strategy & Corporate Development