# A PPLICATION UNDER THE 

# S MALL 

# C OMMUNITY



# A IR 

# S ERVICE 

# D EVELOPMENT 

# P ROGRAM

Docket DOT

- OST

- 201 2

- 0 069



# Magic Valley Regional Airport **Twin Falls, Idaho**

Legal sponsor: City of Twin Falls, ID
DUNS: 156164758
Tax ID: 82

- 6000270 Congressional District:

ID

- 02

Contact: Bill Carberry Airport Manager
PO Box 1907

Twin Falls, ID 83303
Phone: 208

- 733

- 5215
Fax: 208

- 736

- 1505 bcarberry@tfid.orgAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Prepared by 

# T ABLE OF 

# C ONTENTS

Application Highlights

................................ ................................ ..... 1
Capacity Constrained Market

................................ ................................ ......... 1 Community Cost Contribution

................................ ................................ ........ 1
Public

- Private Partnership

................................ ................................ .............. 2
Material Benefits

................................ ................................ ............................ 2 Use of Funds in a Timely Fashion

................................ ................................ .. 2



### Air Service Environment

................................ ................................ . 3
Growing Catchment Area

................................ ................................ ............... 3 Strong Economy

................................ ................................ ............................ 4



### Air Service

– Existing/Historical

................................ ..................... 6
Existing Air Service

................................ ................................ ........................ 6
Historical Air Service

................................ ................................ ...................... 6 Past Air Service Development Efforts

................................ ............................ 8



### Air Service Needs and Deficiencies

................................ ................ 9
Additional Capacity Needed

................................ ................................ ........... 9
Unmet Market Demand

................................ ................................ ................ 10


### Strategic Plan

................................ ................................ ................. 11

Public

- Private Partnership

................................ ................................ ............ 11 Project Goals

................................ ................................ ............................... 11 Proposed Air Service

................................ ................................ ................... 12 Airline Participation

................................ ................................ ...................... 12 Market Analysis

................................ ................................ ............................ 12
Alternate Plan

................................ ................................ .............................. 13 Incentive and Support Plan

................................ ................................ .......... 13 Strategic Plan Funding

................................ ................................ ................. 16 Project Continuation and Sustainability

................................ ........................ 17


### Schedule and Monitoring

................................ .............................. 18

Critical Milestones

................................ ................................ ........................ 18 Monitoring Program

................................ ................................ ..................... 19


### Appendix A. Letters of Support

................................ .................... 20

................................ ................................ ................................ ........... 20 Airline

................................ ................................ ................................ . 20 Government

................................ ................................ ............ 20 Public

- Private Partnership

................................ ................................ ..... 20 Businesses and OrganizationsAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

1 

# A PPLICATION 

# H IGHLIGHTS

his Small Community Air Service Development Program (SCASDP) grant application for the Magic Valley Regional Airport ( TWF ) meets the criteria of
Docket DOT

- OST

- 2012

- 0069

. The City of Twin Falls, Idaho , the legal sponsor and owner/operator of TWF , is requesting $ 50 0 ,000 in federal assistance to implement a $ 584,925 air service initiative.

The project goal is to increase seat capacity in the TWF market

. With the reduction in daily roundtrips to/from Salt Lake City from a high of six in recent years down to just three daily beginning in September 2011, TWF’s primary air service need is additional seat capacity to Salt Lake City. The reinstatement of a four th Embraer EMB

- 120 Brasilia roundtrip or an aircraft upgrade on one or more of the existing flights to 50

- seat regional jets would accomplish the goal.



### C APACITY 

### C ONSTRAINED 

### M ARKET

In September 2011, SkyWest Airlines reduced TWF’s daily roundtrips
from fou r to three, largely due to the continuing impacts of the recession and high fuel costs which have made it very difficult for an airline to make a profit, particularly in short stage length markets like TWF

- Salt Lake City. Since the reduction, the TWF market has had a 74 percent load factor average from September 2011 through May 2012

. Due to this higher than average load factor

on a 30

- seat turboprop aircraft, rejected demand occu rs on many flights. This is further exacerbated on TWF’s early morning departure which provides the maximum connecting opportunities at Salt Lake City. With an average load factor of 86 percent, as high as 89 percent for the month of November , there are no remaining seats
available since 100 percent load factors are unachievable. Due to weight and balance
restrictions on the Embraer EMB

- 120 Brasilia in the TWF market, SkyWest sell s only 28 seats on each flight the majority of the time

.

In a previous study, an estimated 61 percent of catchment area passengers diverted to alternate airports, primarily Boise or Salt Lake City. With the reduction in flights, diversion has increased to as much as 81 percent of air travelers. O ver 110,000
estimated air travelers annually are making the onerous drive to either Boise or Salt Lake City to find reasonable access to the national a ir transportation system. With a population increase of approximately 21 percent since that time, it is very likely that
the number of divert ing passengers is even higher.



### C OMMUNITY 

### C OST 

### C ONTRIBUTION

To support this air service initiative, TWF and the community will fund 15 percent of the proposed $ 584,925 Strategic Plan. Non

- airport revenue sources will fund 10 

# T This section addresses:



### • Project goals



### • Description of the

Strategic Plan



### • Highlights of the grant

application



## Additional capacity to Salt Lake City is a

top priority of the community.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

2 percent ($ 55,000 ) of the cash requirement

. This is a strong commitment by the local community to be proactive and improve
local service.



### P UBLIC


### - P RIVATE 

### P ARTNERSHIP

The City of Twin Falls/TWF has partnered with the Twin Falls Area Chamber of Commerce, Southern Idaho Economic Developm ent Organization , and Business Plus, Inc. for purposes of air service development. It is anticipated that several other local businesses will also join in this effort. Local businesses and the public

- private partnership have the ability to successfully implement this project. The public

- private partnership and the community are committed to
the successful retention and improvement of air service at TWF and have a vested
interest in the succe ssful outcome of this Strategic Plan

.



### M ATERIAL 

### B ENEFITS

Twin Falls is the hub of the eight

- county south

- central Idaho region known as the Magic Valley. From 2000 to 2010, the Magic Valley population grew by 21 percent with additional growth of 17 percent forecasted by 2020

. TWF serves a catchment area population estimated at over 168,000 residents.

Many of the nation’s top food processors are located in the Twin Falls area. T win Falls is a leader in the dairy industry, and while agribusiness remains the cornerstone of the Twin Falls economy, manufacturing is also on the rise. Twin Falls is home to the College of Southern Idaho, a large community college in the northwestern par t of the city with a student population exceeding 9,700

. The air service improvement plan proposed in this grant application will directly benefit a broad segment of the traveling public, including business es , education al institutions and tourism.



### U SE OF 

### F UNDS IN A 

### T IMELY 

### F ASHION

The public

- private partnership has a solid schedule and S trategic P lan to ensure timely use of the funds. A meeting with SkyWest Airlines was recently held to discuss adding capacity to the TWF market, and SkyWest suppo rts this grant application (see letter of support in Appendix A ). Directly following grant award, a meeting with SkyWest will be scheduled to discuss implementation of the Strategic Plan and begin revenue guarantee negotiations. 

## A meeting with SkyWest Airlines was recently held to discuss adding capacity to the TWF market, and SkyWest supports this grant application.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

3 

# A IR 

# S ERVICE 

# E NVIRONMENT

WF is a non

- hub, commercial service airport located in Twin Falls in southern
Idaho

. As the largest city in a 100

- mile radius, Twin Falls serves as a regional
commercial center for both south

- central Idaho and northeastern Nevada, k nown as the “Magic Valley”

. This section provides an overview of the Twin Falls community
and its need for additional air service through added seat capacity

.



### G ROWING 

### C ATCHMENT 

### A REA

TWF serves a catchment area population estimated at over 168,000 residents. The
catchment area inc ludes communities in Twin Falls, Gooding, Jerome, Lincoln, Minidoka, Cassia, Elmore and Owyhee counties. The catchment area covers 27 zip codes . The area displayed in Exhibit 2 .1 in blue is the area that TWF should ideally serve given

drive distances.

E XH IBIT 2 .1 TWF CATCHMENT AREA

From 2000 to 2010, the Magic Valley population grew by 21 percent. The area is
for ecasted to grow an additional 17 percent by 2020 (source: US Census Bureau ). While the community has had significant growth, a ir service at TWF has not kept pace and has declined over the last 10 years. The service must expand to keep pace with this growing community.

The lack of air service at TWF has led to the majority of air travelers diverting to other airports. Based on a study complete d in 2002, o nly 39 percent of catchment area travelers use the local airport. TWF’s retention is likely much less with the almost 50 percent reduction in air service since that time. An estimated 38 percent of TWF catchment area travelers use Boise Airport

, and 21 percent use Salt Lake City 

# T This section addresses: Description of the Twin Falls community in relation
to air service to
demonstrate the benefit of the Strategic Plan to a broad segment of the traveling public.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

4 International Airport

. The remaining TWF catchment area

passengers use Sun Valley ’s Friedman Memorial Airport

, Pocatello Regional Airport or Idaho Falls Regional Airport

.

Table 2.1 provides the estimated drive times to these alternate airports. Keep in mind that the drive times do not account for
snow and mountainous terrain that can make driving hazardous and more time consuming. Whi le Salt Lake City is a large hub airport, the 222

- mile drive
make s it excessively time consuming and expensive to access

. The alternative is Boise

, a small hub airport 127 miles to the west of Twin Falls; the two

- hour drive and somewhat
limited air service create a viable need for air service locally.



### S TRONG 

### E CONOMY

Twin Falls is the hub of the eight

- county south

- central Idaho region known as the Magic Valley. Since its founding in 1905, Twin Falls has steadily evolved from a largely agricultural and farming community to an urban, regional center. While a small city, Twin Falls leaves a big footprint. The city is a business, professional, retail and commercial
hub drawing upon a much larger population for its customer base. Unlike many
communities its size, Twin Falls offers amenities norm ally found in more metropolitan areas.



### Local Businesses

Many of the nation’s top food processors are located in the Twin Falls area. Twin Falls is also a leader in the dairy industry. While agribusiness remains the cornerstone of the Twin Falls economy, manufacturing is also on the rise.

There are multiple large local employers in the Twin Falls area. Table 2.2 lists a sample of the companies and organizations in the area that would
benefit from expanded air service . In addition, the following provides some
detail on a ward

- winning, nationally successful businesses based in the Twin
Falls area.

• Glanbia Foods

, the largest American

- style cheese manufacturer in
the U S

• McCain Foods, the world’s largest processor of French fries

• Amalgamated Sugar Company, sugar refining with annual revenues topping $100 million

• Con Agra/Lamb

- Weston

, food processing plant employing over 500
residents with an annual revenue of about $100 million

• Jayco Manufacturing, recreational vehicle manufacturer

• Hilex Poly Co.

, manufactures plastic bags and agricultural films

• Dutchmen Manufacturing, primarily builds recreational vehicles with

annu al revenues surpassing $100 million

In spite of a troubled national economy Twin Falls has seen rapid development in recent

years

. Some examples include: TABLE 2 .1 DRIVE TIMES TO ALTERNATE AIRPORTS

AIRPORT MILEAGE DRIVE TIME Sun Valley (SUN) 70 1 hr, 24 min Boise (BOI) 127 1 hr, 53 min Idaho Falls (IDA) 161 2 hr, 22 min Salt Lake City (SLC) 222 3 hr, 13 min Source: Microsoft MapPoint

TABLE 2.2 MAJOR EMPLOYERS COMPANY/ ORGANIZATION Amalgamated Sugar Company Clear Springs Foods College of Southern Idaho Con Agra/Lamb

- Weston, Inc. Glanbia, Inc. Independent Meat Intermountain Gas K&T Steel Corporation
Loomix Rangen, Inc. Seastrom Manufacturing Solo Cup St. Luke’s Magic Valley Regional Medical Center The Times

- News 

## Twin Falls is the hub

of the eight

- county south

- central Idaho region known as the Magic Valley.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

5 • Glanbia Foods plans to construct a new $15 million corporate headquarters and "cheese innovation c enter" in
downtown Twin Falls

.

• I n October 2010, C3, a customer call center, opened providing close to 1,000 jobs

.

• In November 2011

, Chobani Greek Yogurt announced that they will construct a processing facility in Twin Falls creating 400 initial jobs and at least $100 million for const ructing the processing facility. There is a possibility of close to $300
million in additional revenue for s outhern Idaho dairymen on

an annual basis.

• In spring 2011

, the new 700,000 sq

. ft. , $250 million hospital, St. Luke's Magic Valley, was opened.

• A n ew 100

- acre industrial park was built ju st two miles from

I

- 84 and near TWF

.



### Education

Twin Falls is home to the College of Southern Idaho, a large community college in the northwestern part of the city with a student populat ion exceeding 9,700

. Several Idaho universities, including Boise State University, Idaho State University, and the University of Idaho, offer classes on the College of Southern Idaho campus.



### Tourism

Perched atop the Snake River Canyon, Twin Falls provid es a wide variety of outdoor recreational opportunities. With over 200 clear days per year, activities include:

• Shoshone Falls

– The Falls are a popular and historic stop
for visitors to southern Idaho , often referred to as the “Niagara of the West”, with waters of the Snake River
cascad ing 212 feet down over the 900 foot wide canyon rim to the river below.

• BASE jumping

– An extreme sport, BASE j umpers from around the world call the Perrine Bridge in Twin Falls one of their favorite spots. Perrine Bridge is the only place in the US where BASE Jumping is legally allowed at any time without a permit.

• City of Buhl, Idaho

– The City lies upon the old Oregon trail, along the Thousand Springs Scenic Byway between Hagerman and Filer.

• City of Rocks

– N ear Almo, Idaho, the City of Rocks is a n ational reserve filled with granite rock formations shaped as monoliths and pinnacles that tower
stories

- high above the ground pr oviding world

- class rock climbing. It draws
thousands of visitors each year from ar ound the world

.

As demonstrated above, improved air service at TWF would benefit a broad segment of the traveling public, including business es , educational institutions, and other enter prises, whose access to the national air transportation system is limited

.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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6 

# A IR 

# S ERVICE



# –
E XISTING 

# /H ISTORICAL

his section provides an overview of existing air service. Carriers providing service, service frequency, nonstop destinations offered, and equipment types are
included in the discussion. A summary of historical air service is also included
with destinations, traffic levels, and service providers. A description of air service development efforts concludes the section.



### E XISTING 

### A IR 

### S ERVICE

TWF has very l imited commercial air service. As of June 2012 three daily flights to Salt Lake City International Airport are provided by SkyWest Airlines with a Delta Air Lines
codeshare using the Embraer EMB

- 120 Brasilia

. No jet service exists today. T he market is served exclusively with 30

- seat turboprop aircraft

. There are an average of 21 weekly
fli ghts and an average weekly capacity of 630 seats ( Table 3 .1 ). Through April 2013
there are no indications of schedule changes by SkyWest at TWF.

TABLE 3.1 EXISTING AIR SERVICE NONSTOP DESTINATION MARKETING CARRIER AIRCRAFT WEEKLY DEPARTURES WEEKLY SEATS
Salt Lake City, UT SkyWest / Delta Embraer EMB

120 Brasilia 21 630

Total 21 630
Source: Diio Mi, June 2012



### H ISTORICAL 

### A IR 

### S ERVICE

This subsection summarizes TWF ’s air service history including: destinations, traffi c levels, and service providers. Extenuating factors that have affected air service over time
are also reviewed.



### Destinations, Service Providers and Traffic Levels

TWF has had SkyWest service to Salt Lake City for many years . Since the peak in departures and seats in 2005, SkyWest’s service at TWF has been declining. From 2005 to 2011, departures and seats declined 35 percent. This led to a 29 percent decline in TWF’s SkyWest passengers.

A bright light shone on TWF air serv ice in 2010. In July 2010, Allegiant Air began twice weekly nonstop service to Las Vegas’ McCarran International Airport. During this time, total departures and seats increased surpassing 2008/2009 levels but still remaining
below levels sustained from 200 3 to 2007 ( Table 3.2 , next page) . To the community’s dismay, Allegiant terminated service in early January 201 2 ending their 19

- month s ervice
in the Twin Falls market. 

# T This section addresses:



### • Description of existing

air service



### • Synopsis of historical

air service



### • Description of air

service development
efforts



## From 2005 to 2011, departures and
seats declined 35 percent.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

7 TABLE 3.2 HISTORICAL DESTINATIONS AND SERVICE PROVIDERS

DESTINATION AIRLINE ITEM ANNUAL DEPARTURES/SEATS
2003 2004 2005 2006 2007 2008 2009 2010 2011

Las Vegas, NV Allegiant Dept 0 0 0 0 0 0 0 57 82 Seats 0 0 0 0 0 0 0 8,530 12,316 Onboards 0 0 0 0 0 0 0 6,494 10,554

Salt Lake City, UT SkyWest/ Delta Dept 1,988 2,031 2,275 2,106 2,091 1,715 1,539 1,609 1,468 Seats 59,750 64,274 68,350 63,175 62,810 51,565 46,210 48,367 44,274 Onboards 32,825 38,096 39,272 35,474 32,974 28,401 27,103 28,342 27,821 Annual departures 2,146 2,275 2,532 2,268 2,155 1,782 1,562 1,666 1,550
Annual seats 66,434 74,176 78,821 70,196 64,730 53,590 46,900 56,897 56,590
Annual onboards 36,528 42,215 43,798 38,545 33,337 28,498 27,619 34,836 38,375
Source: Diio Mi; Note: Annual Totals incl ude other misc. reported flights; Allegiant terminated TWF service in January 2012

While the Twin Falls market greatly appreciated and valued the point

- to

- point, leisure oriented service offered by Allegiant, SkyWest’s service connecting to Delta’s hub at Salt Lake City provides the primary access to the national air transportation system. For many years, TWF supported five to six daily flights to Salt Lake City

. Table 3 .3 provides a summary of average daily flights in July since 2000.

TABLE 3.3 HISTOR ICAL DAILY TWF

- SLC DEPARTURES IN JULY

YEAR DAILY DEPARTURES

- MONTH OF JULY DEPT/ WEEK SEATS/ WEEK MON TUE WED THU FRI SAT SUN
2000 6 6 6 6 6 6 6 42 1,260
2001 5 5 5 5 5 5 5 35 1,050
2002 5 5 5 5 5 5 5 35 1,050
2003 5 5 5 5 5 5 5 35 1,050
2004 5 5 5 5 5 5 5 35 1,050
2005 6 6 6 6 6 6 6 42 1,260
2006 5 5 5 5 5 5 5 35 1,050
2007 6 6 6 6 6 6 5 41 1,230
2008 4 4 4 4 4 4 4 28 840
2009 4 4 4 4 4 4 4 28 840
2010 4 4 4 4 4 4 4 28 840
2011 4 4 4 4 4 4 4 28 840
2012 3 3 3 3 3 3 3 21 630

Source: Diio Mi

The goal of this application is to once again increase capacity to Salt Lake City via a fourth flight or an upgrade to 50

- seat regional jet aircraft on one or more existing flights

. Frequency and capacity are both major issues for air travelers in the Twin Falls market limiting reasonable access to the national air transportation system.



### Extenuating Factors that have A **ffected A**  **ir S**  **ervice**

Like most communities across the US, the recession and high fuel prices have greatly impacted air service at TWF over the last several years. In small markets, the fuel costs have made it very difficult for an airline to make a profit, particularly in short stage length
markets like TWF

- Salt Lake City. SkyWest’s flight reduction from four flights to three in Septemb er 2011 was due to a need for the airline to garner higher load factors on existing service to offset escalating costs.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

8 In addition, TWF ’s air service has been impacted by the catchment
area’s market size and location. Due to the catchment area’s modest market size, it can only support service to a major hub offering connecting opportunities to a wide range of destinations. The Salt
Lake Cit y hub fulfills that requirement

, but its close proximity is both a positive and a negative. The short TWF

- Salt Lake City flight segment provides a relatively inexpensive entry to the national air transportation system. However, aircraft economics result in a high cost per mile flown. Thus, the convenience factor of TWF’s service must be a readily perceived, clear

- cut advantage to dissuade catchment area passengers from seeking less convenient but more frequent and available travel options at surrounding air ports.



### P AST 

### A IR 

### S ERVICE 

### D EVELOPMENT 

### E FFORTS

In the last three years, TWF and the Twin Falls community have been actively involved in air service development and preserving current air service. TWF has maintained an open working relationship with SkyWest meeting regularly to discuss service performance. At a recent meeting in May 2012 with SkyWest, a fo urth roundtrip or the possibility of a regional jet upgrade was discussed. SkyWest’s suggestion of submitting a SCASDP grant application to support the ser vice improve ment is the impetus behind
this SCASDP.

Other efforts included meetings with Allegiant prior to their departure from the TWF
market as well as marketing program s to promote S alt L ake City service , free local parking, and the convenience of us ing the local airport

. 

## T he recession and high fuel prices

have greatly impacted air service
at TWF over the last several years.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

9 

# A IR 

# S ERVICE 

# N EEDS AND



# D EFICIENCIES

his section identifies TWF’s primary air service need s and deficienc ies

. A detailed analysis is provided to demonstrate that TWF is unde rserved and that more capacity to Salt Lake City is needed by the Twin Falls community

.



### A DDITIONAL 

### C APACITY 

### N EEDED

Currently all TWF catchment area air travelers are required to travel
via Salt Lake City International Airport on turboprop aircraft

. SkyWest
Airlines with Delta Air Lines codeshare provides multiple connecting opportunities at Salt Lake City, including 78 domestic destinations
and six international destinations in May 2012 . However, with only three daily roundtrips, many of these connections are missed or excessively long connect times at the hub are required. An additional roundtrip would provide more con necting options and improve the
Twin Falls community’s access to the national air transportation system.

Additionally, TWF is capacity constrained . Table 4. 1 provides the average load factor by month at TWF since departures were reduced from four to three daily . While average load factors are not considered abnormally high, load factors on smaller, turboprop aircraft tend to be lower than average for the large r regional jets. On 30

- seat turboprop
air c ra ft, one no

- show passenger or missed connection equ ates to a 3.3 load factor loss compared to a 2.0 load factor loss on a 50

- seat regional jet. Therefore, reasonably achievable lo ad factors are lower
on smaller ai rcraft.

The 74 percent load factor average for September 2011 through May

2012 suggests that rejected demand occurs on many flights. This is further compounded with SkyWest limiting the number of seats they sell on the majority of flights to 28 instead of 30 due to weight and
balance restrictions on the Embraer EMB

- 120 Brasilia in the TWF market

.

The convenience factor is not equal for every flight in the market. According to SkyWest’s data by flight, **t he**  **TWF early morning departure averaged a load factor of**
**86 percent from September 2011 to May 2012.** As shown in Table 4.1 , the early
morning departure averaged as high as 89 percent for the month of November. Individual flights during this time period often exceeded 90 percent. T his essentially mean s no seats are available on the morning departure since 100 percent load factors are 

# T

TABLE 4.1 TWF

- SLC LOAD FACTOR

MONTH LOAD FACTOR

TOTAL MORNING DEPT September 2011 74% 86%

October 2011 77% 86% November 2011 77% 89% December 2011 75% 83% January 2012 72% 84% February 2012 70% 83%

March 2012 73% 88% April 2012 72% 86% May 2012 74% 84% 9

- Month Total 74% 86% Source: SkyWest Airlines This section addresses: Description of the Twin Falls community’s air
service needs and
deficiencies.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

10 unachievable

. With the next flight departing at 1:20 pm, t he morning flight provides the highest number of connecting opportunities as well as the only option for business
travelers to make it to their destination and complete business the same day. On the inbound TWF flights, t he earliest flight for a traveler to get into town is on the noon time
arriv al. This creates a hardship for a visiting business traveler to get into and out of town on the same day.

Table 4.2 provides a comparison of other markets served by SkyWest with the 30

- seat turboprop aircraft at Salt Lake City. As demonstrated in the table, TWF has the second highest average load factor for SkyWest at Salt Lake City with their Embraer EMB

- 120
Brasilia a ircraft.

TABLE 4.2 SKYWEST AIRLINES' SALT CITY MARKETS

– EMBRAER 120 LOAD FACTOR COMPARISON SKYWEST

- SLC AIRPORT AVAILABLE SEAT MILES REVENUE SEAT MILES LOAD FACTOR Casper, WY 2,870,400 2,183,360 76% TWF 2,596,125 1,912,138 74% Cody, WY 1,126,440 808,474 72% Pocatello, ID 1,887,750 1,335,825 71% Sun Valley, ID 3,947,100 2,559,594 65% Elko, NV 2,994,000 1,882,000 63% West Yellowstone, MT 556,920 336,609 60%

Rock Springs, WY 1,463,490 776,986 53%

St. George, UT 1,254,885 647,080 52%

Gillette, WY 1,888,050 872,070 46% Cedar City, UT 1,869,660 840,463 45% EMB

- 120 SLC Markets 22,454,820 14,154,598 63% Source: Diio Mi; Sept 2011

- Jan 2012

Additional capacity via a fourth early or mid

- morning Embraer EMB

- 120 Brasilia flight or upgraded service to 50

- seat regional jets on one or more existing flights , particularly on the 7:00 am flight, would alleviate the inability to buy a seat during peak demand periods and provide the convenience required in this underserved market.



### U NMET 

### M ARKET 

### D EMAND

In a study conducted in 2002 , T WF catchment area air travelers were estimated at 137,280 annually. At the time, TWF retained only 39 percent of total catchment area

trav e lers with the majority of diverting passengers using Boise Airport or Salt Lake City

I nternational A irport. The estimate used data during a service period where SkyWest provided five daily departures. Departures are now almost half of what they were. Assuming that the total true market did not change and based on an annualized TWF

passenger base from the September 2011 through January 2012 timeframe, **TWF’s**

**retention has declined to an estimated 19**  **percent.** This indicates that over 110,000

air travelers annually are making the onerous drive to either Boise or Salt Lake City to find reasonable access to the national air transportation system. With a population increase of approximately 21 percent since that time, it is very likely that the number of diverting pass engers is even higher. This combined with the high l oad factors on the desired morning departure ampl y demonstrates that the TWF catchment area market is
unde r served and in need of additional capacity

. 

## TWF’s retention has
decli ned to an
estimated 19 percent indicating that over 110,000
air travelers

annua lly are making

the dri ve to either Boise or Salt

Lake City

.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

Page

11 

# S TRATEGIC 

# P LAN

he Strategic Plan proposed by TWF will achieve the communit y’s goals and help

t o alleviate the air service deficiencies of this community. This Strategic Plan section provides a detailed description of the goals of the project and a primary
and alternate plan for attaining those goals. This section also identifies a legal sponsor responsible for administering the program , the public

- private partnership, and the detailed incentive and support plan required to implement the Strategic Plan. A detailed description of the funding necessary for implementation of the Strate gic Plan, including
federal and non

- federal contributions, is included.



### P UBLIC


### - P RIVATE 

### P ARTNERSHIP

The City of Twin Falls/TWF has been designated as the sponsor of this grant application. For the purpose of this application, the City of
Twin Falls/TWF

, the Twin Falls Area Chamber of Commerce , the Southern Idaho Economic Development Organization , and Busines s Plus, Inc. have formed a public

- private partnership (refer to community support letters in Appendix A ). Collectively, the partnership is committed to completing the Strategic Plan
outlined herein.

All partners in the public

- private partnership will be f ully involved in the execution of the Strategic Plan ( Table 5 .1). The City of Twin Falls/TWF will execute all federal grant offers, process all associated reimbursement requests, oversee grant administration and administer the revenue guarantee. The Twin F alls Area Chamber of Commerce (Chamber) will be responsible for the coordination, development and administration of the marketing campaign. The City of Twin
Falls/TWF , Southern Idaho Economic Development Organization , and Business Plus, Inc. will assist as needed with the marketing campaign. Together these partners form a team committed to improving air service at TWF and seeing this Strategic Plan through

to completion.



### P ROJECT 

### G OALS

The project goal is to increase seat capacity at TWF , particularly in th e morning . The market is currently capacity constrained and access to the national air transportation system is limited. Three daily roundtrips with 30

- seat aircraft are not adequately serving
the market. 

# T

TABLE 5 .1 PUBLIC

- PRIVATE PARTNER ROLES PUBLIC

- PRIVATE PARTNER ROLE

City of Twin Falls/ TWF Grant and revenue guarantee administration, assistance with the marketing program

Twin Falls Area Chamber of Commerce Coordination and development of the marketing program Southern Idaho Economic Development Organization Assist with the marketing program
Business Plus, Inc. Assist with the marketing program This section addresses:



### • A Strategic Plan for

meeting TWF’s air
service needs and
deficiencies



### • Description of the

public

- private partnership



### • Funding necessary for

implementation of the Strategic Plan

.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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12 

### P ROPOSED 

### A IR 

### S ERVICE

With the reduction in daily roundtrips from a high of six in recent years down to just three daily beginning in September 2011, TWF ’s primary air service need is additional seat

c apacity to Salt Lake City. The reinstatement of a fourth Embraer EMB

- 120 Brasilia roundtrip in the morning or an aircraft upgrade to 50

- seat regional jets on one or more of the existing flights would accomplish the goal. An additional roundtrip would increase daily seat capacity by 33 percent and restore the TWF catchment area air trave lers’ ability to connect to more markets at Salt Lake City. While the regional jet upgrade would not improve connections, it would provide an increase in seat capacity of 22 percent with

one roundtrip or 44 percent with a partial upgrade of two regional je ts and one remaining
Embraer EMB

- 120 Brasilia roundtrip. Either an additional roundtrip or a regional jet upgrade would achieve the project goals

.



### A IRLINE 

### P ARTICIPATION

Recently

, TWF and Twin Falls community members met with SkyWest Airlines to discuss adding a fourth Embraer EMB

- 120 Brasilia roundtrip or upgrading aircraft to 50

- seat regional jets. While SkyWest agreed that the Twin Falls community could be expected to support the additional seat capacity, SkyWest indicated that the community would need to share in the economic risk of the added flight or aircraft costs. This SCASDP grant application is submitted in an effor t to do so and share in SkyWest’s risk. **SkyWest has**
**provided a letter of support for this air service initiative (included in Appendix A**  **).**



### M ARKET 

### A NALYSIS

For SkyWest to add an additional Embraer

EMB

- 120 Brasilia roundtrip or replace one or more of the existing Embraer EMB

- 120 Brasilia roundtrips with Canadair Regional Jet 200 aircraft, SkyWest will incur significa nt
financial risk. Table 5. 2 provides an analysis of SkyWest’s incremental cost for three
different adde d capacity scenarios in the
TWF market.

In the first scenario, with the addition of a
fourth Embraer EMB

- 120 Brasilia roundtrip,
the incremental cost is estimated at $1,434,450. The incremental cost goes down with the replacement of two Embraer EMB

120 Brasilias with Canadair Regional Jet 200 aircraft . The lower cost reflects only three roundtrips instead of four and the higher cost per segment of opera ting the regional jet. The incremental cost for Scenario 2 is $1,382,620. The final scenario includes the replacement of just the morning Embraer EMB

- 120 Brasilia flight with a regional jet. This would still result in a seat capacity increase of 22 percent over the existing three turboprop roundtrips. The incremental cost on this scenario is $691,310. TABLE 5. 2 TWF

- SALT LAKE CITY COST ESTIMATE

SCENARIO: 1 2 3

4 EMB

- 120 RT 2 CRJ

- 200 RT/1 EMB

120 RT 1 CRJ

- 200 RT/2 EMB

120 RT Cost per segment $1,965 $2,912 $2,912
EMB

- 120 segments per day 8 2 4 CRJ

- 200 segments per day 0 4 2

Additional seat capacity 21,900 29,200 14,600 Seat capacity increase 33% 44% 22%
EMB

- 120 annual cost $5,737,800 $1,434,450 $2,868,900 CRJ

- 200 annual cost $0 $4,251,520 $2,125,760

Total annual cost $5,737,800 $5,685,970 $4,994,660 Existing EMB

- 120 cost $4,303,350 $4,303,350 $4,303,350

Incremental cost $1,434,450 $1,382,620 $691,310
Source: Cost per segment = SkyWest Airlines' EAS Filings adjusted for mileage 

## SkyWest Airlines

has expressed
interest in adding seat capacity to Salt Lake City and support s this grant application.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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13 SkyWest is not looking to have the TWF community cover the entire incremental cost of the additional capacity. Rather SkyWest is looking for the community to share in the risk during the first year of service. Although it is estimated that SkyWest will earn a profit after the capacity addition matures, they will not generate this amount of revenue or margin at start

- up. Airlines typically incur losses during t he ramp

- up period. Based on discussions with SkyWest, a $485,000 revenue guarantee would be an adequate contribution by the community to share in the risk. This would cover between 34 to 70 percent of SkyWest’s incremental cost during the first y ear depend ing on the negotiated scenario.



### A LTERNATE 

### P LAN

While the public

- private partnership was encouraged by discussions with SkyWest , if

TWF fails to obtain added capacity through a fourth Embraer EMB

- 120 Brasilia roundtrip or regional jet upgrade to Salt Lake City in a reasonable time period , alternate carriers will be approached for service to TWF

. Service by another carrier to a hub that provides reasonable connecting opportunities such as Denver would fulfill the goal of this SCASDP application for addition al seat capacity at TWF. Consistent with the intent of the air service initiative proposed, obtaining alternate hub service is the best option for TWF catchment area passengers if added seat capacity by SkyWest to Salt Lake City is

not attainable

.



### I NCENTIVE AND 

### S UPPORT 

### P LAN

With most communities still battling to emerge out of the recession combined with high fuel prices, new or additional service initiatives such as the one proposed in this Strategic Plan are risky, particularly in smaller communities
like Twin Falls

. Accordingly, airlines are cautious and highly risk adverse requiring communities to partner with them to reduce economic uncertainty. In today’s industry, community risk mitigation programs have b ecome an expectation. To be effective, airline support packages must be structured to address the realities of today’s industry and ensure that investments made are quick to respond. This Strategic Plan is structured to address today’s industry realities.

The public

- private partnership proposes a n airline incentive program that has been tested and proved to be successful. To reduce SkyWest’s breakeven period and offset the economic risk during start

- up, the public

- private partnership proposes the following incentives ( Exhibit 5 .1 ):

• Revenue guarantee : reduce airline economic risk

• New service marketing campaign: c reate improved service awareness



### Revenue **Guarantee**

To reduce SkyWest’s risk and provide incentive to add capacity in the TWF market, this Strategic Plan includes an airline revenue guarantee as part of the community support package. SkyWest’s annual cost of providing additional capacity ranges from almost $700,000 to $1.4 million annually. To share in the risk for the first year, the Twin Falls 

## To reduce SkyWest’s risk in the TWF market, this Strategic Plan
includes an airline revenue guarantee.

EXHIBIT 5.1 INCENTIVE AND SUPPORT PLAN

Additional capacity

Revenue guarantee

US DOT Marketing program

Community/

AirportAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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14 community proposes up to a $ 48 5 ,000 airline revenue guarantee depending on the level of capacity provided by SkyWest. Exact t erms of the airline revenue guarantee agreement are subject to further discussions and negotiation.



### Marketing Campaign

To maintain the existing average load factor of 74 percent in the TWF market required incremental passengers range from 10,800 to 16,200 passengers annually or 15 to 22 passengers daily each way. The length of the ramp

- up period for any type of new service, i ncluding additional capacity, is highly dependent on marketing efforts. A strong marketing program will be required to make local air travelers aware of the added seat capacity to
attain 15 to 22 additional passengers daily each way.

A comprehensive mark eting strategy will be fully developed and implemented to support
increase d seat capacity to and from TWF and will be focused on supplying additional air
travelers to fill the increased seat capacity. The Chamber will lead the marketing effort, in cooperat ion with the City of Twin Falls/TWF, Southern Idaho Economic Development Organization, and Business Plus, Inc., as well as other partners.

V aluable information on historical load factors and market demand has been compiled to
show t he need for additional capacity . This data will serve as a base

- line from which to build marketing goals and strategies to meet those goals. In addition to the base

- line data available to assist with goal setting, this marketing plan will also assess current
market needs fr om the various customer sectors including business and leisure travelers.

MARKETING SCHEDULE

A complete marketing/advertising plan will be developed prior to any expenditure of marketing dollars . This plan will be specifically tailored to the needs and suppo rt of the Salt Lake City service. The marketing plan will be structured for a 14

- month program. Marketing will begin at least 60 days prior to the initiation of service. The initial program will focus on the target audience, solidify travel agent interest, schedule meetings and presentations to advise local area businesses of the service and schedule improvements , and begin the print and radio advertisements.

FUNDING

This $ 84,925 campaign will be funded by non

- airport sources ($55,000 cash and $19,925 in

- kind ) and TWF ($10,000 cash). Efforts to secure donations and other support for marketing will be ongoing. It is expected that a significant share of the budget will be expended in the first 60 days. However, the total advertising and promotion program is planned for 14 months. 

## The $ 84, 9 25 marketing campaign

will be funded by

non

- airport sources ($ 55 ,000 cash and $19,925 in

- kind ) and TWF ($ 10 ,000 cash).APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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15 TARGET AUDIENCE: BUSINESS TRAVELERS

The Chamber will coordinate a targeted market survey of existing
businesses within the catchment area. The goal of this survey will be
to assess their current and future needs for air travel t o and from
TWF and to match that need with the additional capacity created by this Strategic Plan.

TARGET AUDIENCE: LEISURE TRAVELERS

Broader marketing to the general public within the catchment area will showcase the messages of convenience, affordabilit y and availability of enhanced air service from TWF. Specific strategies to reach this market will be developed in the weeks immediately following successful negotiation with SkyWest for added seat capacity. This marketing will include an effective
mix of media outlets to including :

• Television

• Print

• Outdoor

• Radio • Social Media

• Web

• Direct Mail

• Local Consumer Events

Southern Idaho Tourism is a regional organization based in Twin Falls which markets the
Twin Falls area as a destination for travelers from outside the Twin Falls region. Their annual budget is approximately $250,000 and includes an effective mix of media outlets to share their message. A goal of this marketing plan will be to develop cooperative advertising to leverage a portion of their budget, where appropriate, to supplement their general tourism message with air service messaging to support this Strate gic Plan. A significant portion of Southern Idaho Tourism’s budget is derived from the Idaho Regional Travel and Convention Grant Program. Funding for the upcoming cycle of this grant begins in September 2012. Once that grant is awarded, the Chamber will

c oordinate with Southern Idaho Tourism to develop specific messaging to support
utilization of air service to TWF.

MARKETING RESOURCES

The Chamber staff members have extensive experience in developing and implementing marketing activities for a variety of community and business

- oriented campaigns. This marketing plan will be coordinated by the Chamber staff. In addition, the Chamber will count on the expertise of partner organizations with marketing experience such as Southern Idaho Economic Development Org anization, Southern Idaho Tourism, and the City of Twin Falls to jointly develop effective messages and strategies to promote use of
air service. The Chamber will contract with a professional advertising and marketing firm for content development and creat ive design.

MEDIA PARTNERSHIP

A key component of the public

- private partnership outlined in the Strategic Plan is participation by private business entities in achieving the goals of the initiative. The Chamber has built strong relationships with local me dia outlets and will pursue in

- kindAPPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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16 support from all when placing advertising for this campaign. Without a finalized budget,
no media outlets are able to confirm an exact in

- kind contribution amount at this time. However, in preliminary discussion of this in

- kind partnership concept, all have indicated a willingness to participate at some level, once specific placement budgets

are confirmed.

Earned media will also be a key strategy with local media partners. News coverage of specific air service messages will be pursued through an active public relations campaign. This earned media strategy will also be applied to out

- of

- market cooperative
initiatives with Southern Idaho Tourism.

MEASUREMENT

A key factor in the success of a marketing program is measuremen t through continuous tracking and evaluation. All aspects of this marketing plan will include metrics to measure the success of strategies and the achievement of goals of increasing load factors. The Chamber will coordinate this ongoing program monitoring and direct modifications to the strategies, as needed, to achieve success. Through consistent messaging, branding, and focus on key audiences, we will achieve the goals of the marketing plan and Strategic
Plan for this initiative.



### S TRATEGIC 

### P LAN 

### F UNDING

T he public

- private partnership is requesting US Department of Transportation assistance in funding 85 percent, or $ 500 ,000, of the Strategic Plan. Specifically, US Department of Transportation funding will be used to fund the airline revenue guarantee and

p rofessional services

. It is anticipated that the public

- private partnership will need professional assistance with revenue guarantee negotiations and the monitoring program. T he marketing campaign will be funded by the airport and the community.
Table 5

. 3 provides the Strategic Plan budget by element and sources of funding. TWF
and the community will fund 15 percent of the total proposed air service program. Non

airport funding sources will provide 10 percent of the cash requirement.

TABLE 5.3 STRATEGIC PLAN BUDGET

DESCRIPTION FUNDING SOURCE

TOTAL US DOT AIRPORT NON

- AIRPORT

CASH CASH IN

KIND CASH IN

KIND Airline incentive program:

Revenue guarantee $485,000 $485,000 Marketing campaign $10,000 $55,000 $19,925 $84,925 Professional Services $15,000 $15,000
Total $500,000 $10,000 $0 $55,000 $19,925 $584,925 Percent of total project 85% 2% 0% 9% 3% 100% Percent of cash contribution 88% 2% N/A 10% N/A 100%APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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17 

### P ROJECT 

### C ONTINUATION AND 

### S USTAINABILITY

Based on a strong marketing campaign for promoting additional
market capacity, it is anticipated that an additional flight or regional jet upgrade will be self

- sustaining after the start

- up period which can take up to a year. However, a leading cause of failure is lack of awareness in the community. With only three flights in the market since September 2011, it is possible that the lack of availability of flights is already ingrained in local catchment area traveler ’ s habits. Changing th ese habits is a top priority of the marketing campaign.

If at the end of the first 12 months of additional capacity the load factor does not meet a level satisfactory to SkyWest, t he public

- private partnership will consider funding a n additional marketing campaign. The public

- private partnership and the Twin Falls community are committed to the success of this project , have a vested interest in the outcome of this Strategic Plan, and understand the difficulties associated with profitably operating air service.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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18 

# S CHEDULE AND 

# M ONITORING

he public

- private partnership established for this Strategic Plan has developed a realistic timetable to achieve the goals of this application

. This section provides critical milestones to be achieved by the public

- private partnership. A monitoring program is also provided to track the progress of the additional seat capacity in the TWF

- Salt Lake City market

.



### C RITICAL 

### M ILESTONES

The following milestones are proposed to track the progress of this air
service initiative

. The timeline is highly dependent on the date of the
US Department of Transportation ’s grant award and the date SkyWest Airlines provides addi tional seat capacity in the

TWF market

.



### Airline Negotiations

: Immediately following award of this October

– December 2012
SCASDP application, the public

- private partnership will meet with SkyWest to negotiate the terms of the airline incentive program including the revenue guarantee agreement. Successful airline negotiations are critical to the timing of the rest of the Strategic Plan.



### Marketing Campaign Development/Initiation

: Development of the marketing campaign will be completed January 2013
immediately following successful SkyWest negotiations for added seat capacity. Development wil l be completed in time for the marketing campaign to be kicked off 30 to 60 days prior to new service initiation. Development of the marketing campaign is dependent on air service announcement and the proposed start

- up date.

: It is anticipated that the marketing campaign will begin by February February 20 1 3
1, 2013

, two months prior to new service initiation, and continue throughout the first year of new service.



### Service Improvement Initiation

: It is anticipated that SkyWest will add a fourth trip to Salt Lake City with April 201 3

the Embraer EMB

- 120 Brasilia or upgrade one or more of the existing flights to the

50

- seat regional jet in April 201 3

. Air service initiation is dependent on airline route planning and availability of a ircraft. 

# T This section addresses:



### • How the community will

monitor the progress of the project



### • The plan/schedule for

timely completion of the project



## It is anticipated that

SkyWest Airlines will add capacity
between TWF and

Salt Lake City in April 2013.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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19 

### Alternate Plan

: If SkyWest has not committed to adding seat capacity to April 201 3
the TWF market by April 1, 201 3

, TWF will contact alternate carriers that would meet the goals of this grant application. The primary goal is to add capacity to the TWF market which can be achieved by nonstop service to a hub by a carrier other than SkyWest

.



### End of First Year of Service

: At the end of the first year of service, the revenue guarantee will be March 20 1 4
calculated based on the terms of the agreement. If the service start date changes due to airline circumstances and/or equipment availability, the revenue guarantee contract term will change accordingly.

: If the load factor for the first 12 months of service does not reach a level March 201 4
satisfactory to SkyWest

, TWF will consider invest ing i n supplementary marketing for
an additional 12 months to help the service reach the potential passen ger levels required for SkyWest success.



### M ONITORING 

### P ROGRAM

To ensure the success of SkyWest’s added capacity, the monitoring program will include: service performance tracking, assessing the effectiveness of the marketing campaign, and determining the impact of the additional capacity on retention of catchment area passengers at TWF

.

The following will be completed:

• Review aircraft departur es, enplaned passengers and load factors on a monthly

basis. Airport data, US Department of Transportation airline reported data and data obtained directly from the airline will be used.

• Average airfares will be reviewed on a quarterly basis and compared a nd

evaluated to prior quarters. 

## The monitoring program will track

the success of SkyWest Airlines

added service
at TWF.APPLICATIONUNDER THESMALLCOMMUNITYAIRSERVICEDEVELOPMENTPROGRAMMAGICVALLEYREGIONALAIRPORT

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20 

# A PPENDIX 

# A

. L ETTERS OF


# S UPPORT

ppendix A includes letters of support for TWF’s application to the US Departm ent of Transportation to increase seat capacity in the Twin Falls
market

. Support letters were submitted by SkyWest Airlines, participants in the public

- private partnership , government off icials and members of the Twin Falls

area

. The letters of support are included on the following pages of this Appendix A
and are listed below.



### A IRLINE

SkyWest Airlines



### G OVERNMENT

United States Senate, Senator Mike Crapo and Senator James Risch
State of Idaho Department of Commerce Twin Falls County, Board of County Commissioners City of Twin Falls, ID, Mayor Greg Lanting



### P UBLIC


### - P RIVATE 

### P ARTNERSHIP

Business Plus City of Twin Falls/Magic Valley Regional Airport (see cover letter)
Southern Idaho Economic Development Organization
Twin Falls Area Chamber of Commerce



### B USINESSES AND 

### O RGANIZATIONS

Chobani Idaho, Inc. Clear Springs Foods College of Southern Idaho
Glanbia Foods
Southern Idaho Tourism
Twin Falls School District
Watki ns Distributing 

# A This section addresses: Letters of support from SkyWest Airlines, members of the public

- private partnership, the local business community and state government.

### June 1, 2012

Ms. Aloha Ley Associate Director, Small Community Program Office of Aviation Analysis US Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Program Docket DOT-OST-2012-0069 City of Twin Falls, ID – Magic Valley Regional Airport

Dear Ms. Ley,

As you are aware, quality passenger air service is a key component of our transportation infrastructure. In particular, business and commerce customers ne ed the ability to effectively, efficiently, and affordably travel to and from market. Twin Falls, Idaho is a market that currently has insufficient air service to meet

com munity and business demands and, as a result, I encourage you to consider funding the City of Twin Falls’ Small Community Air Service Development Program grant application to obtain additional capacity to Salt Lake City.

The Twin Falls region has experienced significant population growth in the past decade. Recent business expansions have increased the number of jobs available, and the economy is rebounding from the recession. Many of the companies that have expanded to Twin Falls or who already operate here have ties
to other parts of the nation; thus, the ability to travel between these distant locations in a timely fashion is important to their continued viability and economic success.

Impacts of the recession and high fuel prices have caused SkyWest Airlines to reduce service in Twin Falls in recent months. However, the demands of a growing economy demonstrate a need for additional service in this market. Through public-private partnership and with support of the Small Community Air Service Development Program, there is a strong need for expanded capacity from SkyWest in the Twin Falls region.

The Idaho Department of Commerce has maintained tremendous partnerships the Twin Falls region in the past and we look forward to working with them in the future. I am confident you will experience this same level of collaboration should you award this grant to the City of Twin Falls. Thank you in advance for your consideration.

Sincerely,

Jeffery Sayer Director

### J une 6, 2012

Aloha Ley Associate Director, Small Community Program Office of Aviation Analysis US Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Program Docket DOT-OST-2012-0069 City of Twin Falls, ID – Magic Valley Regional Airport

Dear Ms. Ley:

The Southern Idaho Economic Development Organization (SIEDO) strongly supports the air service proposal detailed in the City of Twin Falls’ Small Community Air Service Development Program grant application to obtain additional capacity to SkyWest’s hub-city in Salt Lake City, Utah. Like many businesses in Idaho and across the nation, our business and continued growth depends on access to reliable air service to continue to prosper.

As the regional economic development organization for southern Idaho, strong reliable air service is crucial to retaining and recruiting new business to the region. The southern Idaho region is rapidly emerging from the recession with the recruitment of a new Chobani manufacturing facility and the expansion of Glanbia Cheese headquarters just this year. We will not be able to continue this type of growth without adequate air service.

For many years, Twin Falls supported four to six roundtrips to Salt Lake City with the 30-seat Embraer 120. In September 2011, SkyWest Airlines reduced our service to three roundtrips as a result of the continued impact of the recession and high fuel prices. Since the reduction in air service to Magic Valley Regional Airport, there have been four occasions that people from our organization were unable to leave from Twin Falls and had to book out of Boise or Salt Lake. This has put a costly and time intensive burden on the organization.

We strongly believe that our community can support additional service through another roundtrip or a regional jet upgrade. SIEDO will partner with the Twin Falls Area Chamber of Commerce and Business Plus, Inc. to develop private investment in the overall strategic plan and marketing implementation.

As you evaluate the merits of this application, I encourage you to consider how critically important air service is to the Twin Falls community. The Airport has forged strong ties with the business community to support air service. We appreciate the opportunity to expand that partnership to include the US Department of Transportation through the Small Community Air Service Development Program. We are pleased to have the opportunity to support this grant application.

Sincerely,

J an W. Rogers Executive Director

## May 30, 2012

Aloha Ley Associate Director, Small Community Program Office of Aviation Analysis US Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Program Docket DOT

- OST -2012-0069 City of Twin Falls, ID – Magic Valley Regional Airport

Dear Ms. Ley:

Clear Springs Foods, Inc. strongly supports the air service proposal detailed in the City of Twin Falls’ Small Community Air Service Development Program grant applicatio n to obtain additional capacity to Salt Lake City. Like many businesses in Idaho and across the nation, our business depends on access to air service to continue to prosper.

Clear Springs is the world’s largest producer of aquacultured Rainbow Trout. Cle ar Springs is a vertically integrated company from brood stock through egg production, feed manufacturing, farm operations, processing, and primary distribution in its own fleet of refrigerated trucks. Clear Springs products can be found, fresh or frozen, on the menus of many fine restaurants and in the seafood sections of major supermarkets throughout the United States and Canada.

Clear Springs personnel utilize air services into and out of Twin Falls on a regular basis. We have customers that fly into the area for tours and visits. We have job candidates utilizing the flight services into and out of Twin Falls. Partners, suppliers and others also utilize the Twin Falls air services to provide our Company with vital information.

For many years, Twin Falls supported four to six roundtrips to Salt Lake City with the 30- seat Embraer 120. In September 2011, SkyWest Airlines reduced our service to three roundtrips as a result of the continued impact of the recession and high fuel prices. We have been challenged because of the availability of flights into and out of Twin Falls over the course of the last several months. We overcome the challenges by driving to Boise which adds additional time and Cally Parrott, VP Corporate Relations/ Organizational Development

Clear Springs Foods, Inc. General Office P. O. Box 712, Buhl, Idaho 83316 Phone 208

- 543

- 4316

Sales 800 635

- 8211

Fax 208

- 543

- 5608 E

- mail: cally@clearsprings.com

## June 5, 2012

Aloha Ley Associate Director, Small Community Program Office of Aviation Analysis US Department of Transportation 1200 New Jersey Ave, SE W86-310 W ashington, DC 20590

Subject: Small Community Air Service Development Program Docket DOT-OST-2012-0069 City of Twin Falls, ID – Magic Valley Regional Airport

Dear Ms. Ley:

The College of Southern Idaho would like to see continued and viable air service to and from the Twin Falls airport. We support the air service proposal detailed in the City of Twin F alls’ Small Community Air Service Development Program grant application to obtain additional capacity to Salt Lake City. Like many businesses in Idaho and across the nation, CSI de pends on access to local air service for economic development, student recruitment, and staff
tra ining. Reliable daily connections out of Twin Falls are vital to the southern Idaho business
economy.
For many years, Twin Falls supported four to six roundtrips to Salt Lake City with the 30

- se at Embraer 120. In September 2011, SkyWest Airlines reduced our service to three roundtrips as a result of the continued impact of the recession and high fuel prices. We highly valued the additional capacity in the market when it was provided. We strongly believe that our community can support additional service through another roundtrip or a regional jet upgrade.

As you evaluate the merits of this application, I encourage you to consider how critically important air service is to us in Twin Falls. The Airport has forged strong ties with the business

c ommunity to support air service. We appreciate the opportunity to expand that partnership to include the US Department of Transportation through the Small Community Air Service Development Program. We are pleased to have the opportunity to support this grant application.

Sincerely,

Dr. Gerald Beck, President College of Southern Idaho

### J une 5, 2012

Aloha Ley Associate Director, Small Community Program Office of Aviation Analysis US Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Program Docket DOT-OST-2012-0069 City of Twin Falls, ID – Magic Valley Regional Airport

Dear Ms. Ley:

Glanbia Foods strongly supports the air service proposal detailed in the City of Twin Falls’ Small Community Air Service Development Program grant application to obtain additional capacity to Salt Lake City. Like many businesses in Idaho and across the nation, our business depends on access to air service to continue to prosper.

Glanbia Foods is the largest American-style cheese manufacturer in the United States and one of the largest whey ingredient producers. Our business is based upon creating quality in every product and delivering excellent service to every customer. In order to achieve these objectives, air travel is a necessity.
For many years, Twin Falls supported four to six roundtrips to Salt Lake City with the 30-seat Embraer 120. In September 2011, SkyWest Airlines reduced its Twin Falls service to three roundtrips.

Our travel agency pulled reports for Glanbia Foods air travel. There were nearly 800 flights – with over 700 of them originating in Twin Falls on SkyWest aircraft and the rest were out of Boise or Salt Lake City due to availability and schedules. When you reduced the number of flights, it impacted the way we do business and travel.

Our 2012 numbers to date show an increase by about 30% for airline travel. With increased use, additional businesses coming to town and projected business growth

, 

### we strongly believe our community can support additional service through another roundtrip or a regional jet upgrade.

As you evaluate the merits of this application, I encourage you to consider how critically important air service is to the Twin Falls community. The airport has forged strong ties with the business community to support air service. We appreciate the opportunity to expand that partnership to include the US Department of Transportation through the Small Community Air Service Development Program. We are pleased to have the opportunity to support this grant application.

Sincerely,

Jeff Williams President/CEO Glanbia Foods

### Twin Falls School District #411 P 208.733.6900 201 Main Ave. W F 208.733.2895 Tw in Falls, ID 83301 w w w .t f sd.k12.id.us



### WILEY J. DOBBS
, PH.D. SUPERINTENDENT OF SCHOOLS

Wiley J. Dobbs, Ph.D. Pat t i O’Dell, Ed.S. Superint endent of Schools Associat e Superint endent 

## May 30, 2012

Aloha Ley Associate Director, Small Community Program Office of Aviation Analysis US Department of Transportation 1200 New Jersey Ave, SE W86-310 Washington, DC 20590

Subject: Small Community Air Service Development Program

Docket DOT-OST-2012-0069 City of Twin Falls, ID – Magic Valley Regional Airport

Dear Ms. Ley:

As Superintendent of the Twin Falls School District #411 I can say we strongly support the air service proposal detailed in the City of Twin Falls’ Small Community Air Service Development Program grant application to obtain additional capacity to Salt Lake City. Like many businesses in Idaho and across the nation, our school district relies on the convenience of air service locally to help us with time management
which in turn reduces costs to the district.

For many years, Twin Falls supported four to six roundtrips to Salt Lake City with the 30-seat Embraer 120. In September 2011, SkyWest Airlines reduced our service to three roundtrips as a result of the continued impact of the recession and high fuel prices. We highly valued the additional capacity in the market when it was provided. We strongly believe that our community can support additional service through another roundtrip or a regional jet upgrade.

Twin Falls School District #411 employs over 1,000 employees and has a current enrollment of 7,899 students. Employees, parents, and community members are currently forced to use other markets for travel due to limited service from the Magic Valley on a more frequent basis with the loss of the 4 th 

## daily flight.

## As you evaluate the merits of this application, I encourage you to consider how critically important air

service is to the Twin Falls community. The Airport has forged strong ties with the community to support air service. We appreciate the opportunity to expand that partnership to include the US Department of Transportation through the Small Community Air Service Development Program. We are pleased to have the opportunity to support this grant application.

Sincerely,

Wiley J. Dobbs Superintendent of Schools