iii 

### Table of Contents

I. Executive Summary Airport and Community Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Community and Region Served . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Participation Qualification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Project Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II. Air Service Description of Existing Air Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Air Fare Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5 Historic Air Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-8

III. Community Air Service Needs & Deficiencies Meadows Field (BFL) Airport’s Top 10 Domestic O&D Markets

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

- 9 Meadows Field (BFL) Airports Top 20 Leakage Markets

. . . . . . . . . . . . . . . . . 10 Similar Market Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12 Competing Markets

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

IV. Strategic Plan Air Service Deficiencies to be Addressed Through this Project . . . . . . . . . . . 14 Project Goals . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-15 Marketing Plan: Community Awareness of Service Available . . . . . . . . . . . . . . . 15-16 Revenue Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-17 Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

V. Public and Private Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

VI. Project Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

VII. Budget for Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-20

VIII. Critical Milestones, Measur es of Success, Monitoring, Modification and Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

IX. Letters of Support Great Lakes Airlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 The Honorable Jean Fuller, California State Senator 18 th District

. . . . . . . . . . . . . . . . . 23 The Honorable Michael J. Rubi o, California State Senator 16 th District

. . . . . . . . . . . . . 24 Assemblywoman Shannon Grove, California Legislature 32 nd Assembly District

. . . . . 25 Mike Maggard, Kern County Supervisor 3 rd District

. . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Kern County Superintendent of Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Kern County Water Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Greater Bakersfield Chamber of Commerce (GBCC) . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Bakersfield Convention & Visitors Bureau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 The Bakersfield Californian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 KGET TV Ch 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 KERO TV Ch 23, A division of the McGraw-Hill Companies . . . . . . . . . . . . . . . . . . . . . . 33 KBAK TV Ch 29/KBFX TV 58/THIS TV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Kern County Airports Department 1



## Executive Summary

Airport and Community Name

Meadows Field (BFL) Airport 3701 Wings Way, Suite 300 Bakersfield, CA 93308-7026 Contact: Jack Gotcher, Airports Director


### Community and Region Served

Meadows Field (BFL) Airport, operated by the Kern County Department of Airports, currently serves Bakersfield, CA, greater Kern County, and Southern Tulare County. The 60-mile radius served by Meadows Field encompasses a population of more than 839,600 1 and is the sixth largest airport service area in the state; growing at an annua l rate of approximately 2.7%. 2



### Participation Qualifications

1. BFL enplaned 121,075 passengers in CY 1997. 2. BFL is the highest fare market in our region. 3. Fares paid by travelers out of BFL are more than 17% higher than the national average for the same approximate trip length. The ticket yield per passenger mile for BFL is 17.12 compared to the national average of 14.62. 3
4. There is a strong demand for travel to the Pacifi c Northwest with Sacramento as a key part of the segment. 5. The Meadows Field (BFL) Airport service ar ea is a significantly underserved market. 6. Meadows Field (BFL) Airport has gained local co ntributions to assist in advertising new air service on Great Lakes Airlines to Sacramento. 7. Meadows Field (BFL) Airport has established a public-private partners hip with Great Lakes Airlines and our local business community to ensure the success of the new service.


### Project Goals

This proposal seeks to address the deficiencies listed above by requesting a grant to introduce two non-stop flights per day to Sacramento on an EMB 120 Brasilia by Great Lakes Airlines. In addition, funding will be used to develop a uniform and c onsistent identity to promote the airport to the general public in order to regain leakage passengers.

1 Source: US Census Bureau State and County QuickFacts
2 Source: US Census Bureau State and County QuickFacts
3 Source: Aviation DataMiner; Domestic National Bottom Line and Airport O&D Report -between 1 st and 4 th

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 Q uarter 2010Kern County Airports Department 2

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

## Air Service

Description of Existing Air Service

Two airlines serve Mead ows Field (BFL) Airport; SkyWest Ai rlines performs ground-handling for United Continental Express and US Airways. In 2010, passengers in the market were divided almost evenly between the two airlines. Currently these carriers serve a total of five non-stop destinations; however only offer a total of 554 departure seats per day.

US Airways operates three f lights daily to PHX; two on 86-passenger CRJ’s and one daily flight on a 50- passenger CRJ. United Continental Express operates one flight daily to DEN on a 50-passenger CRJ, two daily flights to IAH on a 66-passenger CRJ, three flights daily to SFO and two flights daily to LAX, all on 30-passenger EMB 120 Brasilia. United Continental Express has one hundred nineteen direct destinations available from its Denver hub, 157 direct destinations ava ilable from its Houston hub, seventy-two direct destinat ions available from its Los Angeles hub, and eighty-f our direct destinations from its San Francisco hub. US Airways has seventy-seven direct destin ations available from its Phoenix hub. 2010 Airline Market Share

US Airways, 51.1% United Continenal Express
, 48.9%

Current Air Service at M eadows Field (BFL) Airport

*Source: Meadows Field Website; One –stop connections information from Aviation DataMiner, Schedule Data Time Carrier Non-stop One-stop Connections Aircraft Weekly Frequency Weekly Capacity United Continental Express Denver 119
connections from DEN CRJ 200 – 50 passenger 7 350

United Continental Express Houston 157
connections from IAH CRJ 700 – 66 passenger 13 858

United Continental Express Los Angeles 72
Connections from LAX Embraer 120- 30 passenger 14 420

United Continental Express San Francisco 84
Connections from SFO Embraer 120- 30 passenger 21 630

US Airways Phoenix 77
Connections from PHX CRJ 900 – 86 passenger CRJ 200 – 50 passenger 20 1504

75 3762

Period (Departure) Report July 29, 2011Kern County Airports Department 3

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

### Air Fare Comparison

The following fare comparison is based on average fares for BFL’s top ten domestic markets as reported in Aviation Data Miner Airport O&D report. 4 The average price for BFL’s top markets is the highest of the airports in our region of southern California and western Nevada, and BFL has the highest fares for five of our top mark ets. Pricing spiked dur ing the end of 2008 when flight frequencies and available seats in the market were reduced almost in half, creating an artificial shortage in su pply, directly resulting in continued high airfares.

5 

### Average Fares for Meadows Fiel d (BFL) Airport’s Top Markets

$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00

BFL $156.01 $327.51 $252.30 $208.37 $328.69 $176.38 $303.41 $241.42 $279.60 $311.60 $258.53

BUR 121.47 199.3 188.79 168.41 250.20 175.57 264.54 219.79 182.90 236.66 $200.76

FAT 154.42 222.19 264.50 194.60 290.14 283.28 304.73 212.42 197.06 275.19 $239.85

LAX 122.34 294.14 139.14 162.20 265.3 149.83 247.49 250.83 188.41 277.21 $209.69

LAS 113.30 223.87 111.38 149.94 218.29 113.69 209.37 184.01 150.63 269.57 $174.41

SAN 116.98 264.36 133.84 183.22 183.22 163.77 259.53 214.73 171.87 386.73 $207.83 Phoenix Houston Denver Seattle Chicago Salt Lake City Dallas Ft. Worth Minneapolis Portland Washington, DC Market Average

While Great Lakes Airlines is not a low fare carrier, they can provide additional service. Previous experience has shown additional competit ion in the BFL market will help bring pricing more in line with the rest of th e region’s airports, and increase tr avel through this airport. The following chart quantifies the impact of lost competition on airfares and enplanements.

4 Source: Aviation DataMiner, Airport O&D Report, 3 rd Quarter 2010
5 Source: Aviation DataMiner, Airport O&D Report, 3 rd Quarter 2010Kern County Airports Department 4

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 BFL Enplanements & Average Annual Air Fares 2006-2010 6

The chart to the left shows the

relationship between average fares and annual enplanements. Note that in 2009, although our enplanements declined due to lo ss of air service, our average one-way fare fell from $259.83 to $250.68. We conclude that one of the factors for the decline in average air fare was due to average fares stabilizing as fuel prices started to decrease. Even so, prices were higher than at the end of the 1 st Quarter of 2008(average one-way fare was $246.63 ) when there was more air service options available and higher enplanements.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2006 11,907 11,903 14,031 14,534 15,813 16,997 16,422 15,486 13,659 14,879 14,174 13,932 173,737 2007 11,683 11,662 14,489 14,053 13,356 15,521 14,632 14,423 13462 14455 14420 14,247 166,403 2008 11,586 11,977 13,520 13,807 13,888 14,154 15,031 12,223 9,271 9,854 8,601 8,927 142,839 2009 7,605 7,128 8,153 8,899 9,390 10,010 9,734 9,310 8,466 8,723 8,203 8,452 104,073 2010 7,164 7,094 8,304 8,313 9,045 9,600 9,099 9,174 9,377 9,563 9,712 10,039 106,484 Enplanements

*Source: Meadows Field Website, Airport Statistics, Passe nger Enplanements & Deplanements Report 2006 through 2010

The Primary impact from the events of the 2008 oil crisis that caused the pr ice of a barrel of oil to spike to a historical high, a nd the resulting economic decline, was the loss of several airlines. Delta and Mexicana reduced system wide service a nd the bankruptcy of ExpressJet, caused them to withdraw service from BFL. These service changes eliminated five (5) daily departure flights and 269 daily departure seats from BFL’s flight schedule. Customer comments continually indicate the loss of traveling flexibility has motiv ated them to drive to LAX. Capacity reductions in the market have created an artificial reduction in enplanement levels. The shortage of seats in the market then, has directly led to higher airfar es and greater fare disp arities between Meadows Field (BFL) Airport and the other airports in our region.

6 Source: Aviation DataMiner, Airport O&D Report, 1 st through 4 th Quarter 2006, 2007, 2008, 2009, 2010; Meadows Field Website, Airport Statistics, Passenger E nplanements & Deplanements Report 2006 through 2010 0 25000 50000 75000 100000 125000 150000 175000 200000

2006 2007 2008 2009 2010Enplanements

$210 $220 $230 $240 $250 $260 $270 $280 $290Average Air Fares

Enplanements Av erage Air Fares Increase in average fares as enplanements decline.

BFL Annual Enplanements 2006-2010Kern County Airports Department 5

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 Average Fares for Competing Airports 7

The BFL catchment area generates close to 400,000 passengers annually, unfortunately the limited air service causes approximately 75% of our passengers to drive to other airports, primarily in the LA Basin. 8 In addition to inadequate service, BFL has the highest average fare among all airports that were utilized by passengers booking from our air service market. 9



### Historic Air Service

Annual enplanements at BFL Airport were 148,200 in 2000. 10 Enplanements increased by almost 40% from 1996 to 2000, outstripping the ar ea’s annual population gr owth rate, at that time of 2.2%. We believe that this can be attr ibuted to the entrance of America West Express operated by Mesa into the market, and is an indi cation of the pent up demand for air travel from BFL. In 2001 prior to 9/11, enplanements we re up over 2% despite the already weakening economy. After 9/11, air service le vels dropped by almost half.

1 07,632 1 21 ,075 1 28,390 1 47,1 42 1 48,200 1 28,842 96,549 90,634 11 9,147 1 46,786

0 50,000 100,000 150,000 200,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 0 5 10 15 20 25 30 35 40 45 50

Daily Flights 9/8/2001

6/4/2002 46 Daily Flights

24 Daily Flights

2001 200 2 $280 $245
$217
$186 $178 $175 $174 $156 $139

$0 $50 $100 $150 $200 $250 $300

BFL FAT LAX SNA ONT SJC LAS BUR LGB Average Fares 2010

34.9% Drop in enplanements from 2000 48% Decrease in Daily Flights

In 2004, the granting of the SCASD Award allowe d Meadows Field (BFL) to begin service in April to Houston in partnership with Continental Airlines. The grant also helped in successfully marketing Meadows Field (BFL), which brought additional air service. In 2005, America West added the Las Vegas route, and Delta began service to Salt Lake City. The additional air service increased enplanements from a low 90,634 in 2003, to 146,786 in 2005. 11

7 Source: Aviation DataMiner, Airport O&D Report, 1 st through 4 th Quarter 2010
8 Source: 2002 Market Leakage Study conducted by Sabre, Inc.
9 Source: Aviation DataMiner, Airport O&D Report, 1 st through 4 th Quarter 2010
10 Source: Department of Transportation
11 Source: Meadows Field Website, Airport Statistics, Pa ssenger Enplanements & Deplan ements 2003 & 2005Kern County Airports Department 6

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 Unfortunately, the 2008 oil crisis and economic dec line took a toll on our air service. Air service levels are now 35% less than what they were prior to May, 2008. On April 27, 2008, there were 34 scheduled flights on five carriers, with 877 departure seats available. 12 Today, there are 22 scheduled flights on two carriers (US Air and Un ited/Continental) with 554 departure seats available. The loss of three airline carri ers and air service re ductions, during the 2 nd and 3 rd Quarter of 2008, has left an unfilled void in service.

173,737 166,403 142,839

104,073 106,484

0 50,000 100,000 150,000 200,000

2006 2007 2008 2009 2010

The decrease in enplanements and increase in pri ces are directly related to the decrease in air service. The number of flights at BFL has decreased by 35% since 2008 while enplanements have dropped by 36% since 2007. The reduction in capacity has also led to higher fares.



### Air Service 2004-June 2011 13

12 Source: Aviation DataMiner, Service Pattern Trend, May 2008 and April 2008
13 Source: Aviation DataMiner, Service Pattern Trend 2004 through 2011 

### Airline 2004 2005 2006 2007 2008 2009 2010 2011 Allegiant Airlines (Began service to LAS in Nov. 17, 2010; discontinued servic e in June 26, 2011)

America West US Airways Service to PHX; added service to LAS April 2005; merged with US Airways at the end of 2006 (US Airways merged with America West Airlines) Service to LAS and PHX; discontinued LAS service in August of 2008

Continental Began service to IAH April 2004; discontinued in May 2007 (Restarted service in April 2011)

Delta Began service to SLC July 2005; discontinued in August 2008 ExpressJet (Began service to SAN May 2007; added SMF Nov. 2007; discontinued in Aug. 2008) Mexicana Airlines (Began Service to GDL March 2007; discontinued May 2008) United Express Service to LAX and SFO; added service to DEN on September 2009

The above chart shows the air lines and routes that have o p erated at BFL from 2004 throu g h June 2011 Enplanements 2006-2010 36% Drop in enplanements from 2007

0 5 10 15 20 25 30 35 40

Daily Flights 4/27/2008

7/6/2011

22 Daily Flights

2008 2011 34 Daily Flights 35% Decrease in Daily FlightsKern County Airports Department 7

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 A past leakage study indicated that over 400,000 people fly from the BFL catchment area with over 300,000 driving or taking the bus to other airports for service, particularly due to high costs. This is 75% leakage! Whenever new servic e is added, the community has responded positively by flying from BFL in strong numbers. At th e peak of service in 2007, over 170,000 passengers flew from BFL, however this is still a 58% leakage rate and aircra ft were frequently full or over sold. 14

Inadequate service levels and significantly highe r fares are the primary cause for leakage from the BFL market. Market capacity since 2008 has been reduced near ly 40%, while enplanements have dropped nearly 30%. This has led to higher prices in the BFL market. LAX, with the most service options in Southern California capture s the majority of BFL’s market leakage.

Surprisingly, Burbank (BUR), which is closer and also has low fare carri er Southwest Airlines, captures only 5% of BFL’s market leakage. Some other surprises in the Sabre data were that, of the six percent of passengers that leak to Fresno (FAT), the majority of the leakage is from the 932 57 (Porterville) and 93274 (Tulare) zip codes, which are approximately halfway between Bakersfield and Fresno. 15 SJ
1% BF SN ON 1% C

R

T

S X L A T

25% 1%

BU 5% FA
6% LA LA 59% 2%
BFL Market Leaka g e

In addition, the destinations with the highest leakage of Portervi lle and Tulare residents are to Seattle and Las Vegas, which have direct service from Fresno. In terestingly, markets closer to Bakersfield than Fresno do not fl y from Fresno with any degree of significance even when direct service is offered from Fresno. Although Horizon (now Alaska Airlines) offers direct service from Fresno to Seattle, the majority of Kern Co unty passengers traveling to Seattle, not flying from BFL, drive to LAX for service.

While the above study was conducted in 2002, demographics and suggested demand have not significantly changed, thus the above study can be considered as current actual data. Although BFL’s leakage is significant, local passengers respond overwhelmingly when new direct service is offered.

14 Source: 2002 Market Leakage Study conducted by Sabre, Inc.
15 Source: 2002 Market Leakage Study conducted by Sabre, IncKern County Airports Department 8

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 Direct service on regional jets recaptured most of the passengers traveling fr om BFL’s service area to Phoenix. Please note th at actual performance substantially outperformed estimates, suggesting greater than estimated leak age recovery and some market stimulation. Travel from Meadows Field (BFL) Airport to Phoenix increased more than 10 times when direct service was available. Travel from Bakersfield to destinations with good connections from Phoenix have also increased substantially. 16



## Community Air Service Needs & Deficiencies

Meadows Field (BFL) Airport’s Top 10 Domestic O&D Market Market Leakage Recapture: Phoenix

Destinations 1996 Actual Annual PAX 1996 Estimated Annual PAX (with direct service to Phoenix) 2000 Actual Annual PAX (Direct service to Phoenix began in 1998) PHX 3,190 18,887 35,580 IAH 7,430 9,240 12,270 ORD 4,360 9,055 7,570 NYC 3,930 7,923 4,970 WAS 4,035 7,092 7,390 BOS 2,130 5,382 1,900 ATL 2,320 5,336 3,740 Total 27,395 45,915 73,420

Rank* Market* Daily Passengers

One Way* A verage One-way Fare* Ticket Yield per passenger mile Avg. Ticket Miles*
1. Phoenix 28.8 $156.01 31.48 430 2. Houston 20.2 $327.51 19.00 1,501 3. Denver 17.4 $252.30 22.65 971 4. Seattle 16.2 $208.37 18.37 948 5. Chicago 11.0 $328.69 15.14 1,888 6. Salt Lake City 9.5 $176.38 16.66 869 7. Dallas 9.4 $303.41 19.30 1,361 8. Minneapolis 7.5 $241.42 12.10 1,692 9. Portland 6.3 $279.60 21.75 1,106 10. Washington, DC 4.8 $311.60 10.66 2,523 *Source: Aviation DataMiner, Airport Top Markets O&D Report, 3 rd

Quarter 2010

Prior to direct service, Phoenix was BFL’s se venth largest originati on and destination (O&D) market and had only 3,190 annual passenge rs, less than 10 daily passengers. 17 Direct service to Phoenix reclaimed BFL’s Phoenix market leakag e and is now BFL’s largest O&D market with over 22,000 annual passengers a nd 56+ daily passengers. 18

16 Source:1996 Annual Passengers, Data Base Pro ducts, Inc. AIRS Market Averages Report 4 th Quarter 1996; 1996 Market Estimates, The Boyd Group, Inc; 2000 Passengers Da ta Base Products, Inc. AIRS Market Averages Report 4 th Quarter
17 Source: Data Base Products, Inc. AIRS Base Averages Report 2 nd Quarter 1996
18 Source: Aviation DataMiner, Airport O&D Report 1 st through 4 th Quarter 2010Kern County Airports Department 9

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 y. BFL’s second largest domestic O&D market behind Phoenix is Houston with 14,578 annual passengers and 20 daily passengers each way. 19 In 2004, BFL received a SCASD Grant to bring Continental Airlines between BFL and Houston (IAH). When Continental Airlines started providing direct service to Houston, it becam e our number one domestic O&D market with 36,129 annual passengers and 50 daily passengers each way. 20 Continental provided service until ExpressJet began to “Fly at Risk” with the ERJ 200’s; flying the route for Continental Express. The route was highly successful filling on averag e 143 seats out of 150 seats available. The loss of ExpressJet caused Continental Express to stop se rvice, with 3 flights daily on 50 seat ERJ’s. The success of this route is rein forced by the return of Contin ental in April 2011 with the ER700 66 seat aircraft to our proven market. Just as Continental Express proved successful with the BFL-IAH market, we believe this grant will enable Great Lakes Airlines to provide su ccessful BFL-SMF service that will stimulate travel by air and move passengers from th eir auto and rail to air travel again.

In 2007 before direct service to Sacramento wa s provided with ExpressJet Airlines, Sacramento was number fifty-seven (57) in our domestic O&D market. 21 Direct service to Sacramento began in November 2007, and by the end of the 1 st Quarter of 2008, Sacramento became number three (3) in our domestic O&D market with 21 + daily passengers each wa 22

2008Q1 to 2008Q1
Rank Market Psgr PDEW (passengers daily each way)
1 PHX 6,750 37.1

2 IAH 4,571 25.1
3 SMF 3,891 21.4

4 SAN 3,290 18.1

5 DEN 2,959 16.3 6 DFW 2,828 15.5

7 SLC 1,997 11.0
8 SFO 1,811 10.0
9 0 R D 1

, 7 2 9 9

. 5
10 SE A 1,710 9.4 A ir p ort Market O&D

In and Outbound 2007Q2 to 2007Q2 Rank Market Psgr PDEW (p assen g ers dail y each wa y) 1 P H X 7

, 9 4 3 4 3

. 6
2 I A H 3

, 5 2 9 1 9

. 4 3 DFW 3,332 18.3
4 D E N 3

, 2 8 6 1 8

. 1
5 O R D 2

, 5 0 1 1 3

. 7
6 S A N 2

, 2 8 7 1 2

. 6
7 S E A 2

, 1 4 7 1 1

. 8
8 S F O 2

, 0 7 3 1 1

. 4
9 S L C 1

, 9 9 2 1 0

. 9 10 PDX 1,951 10.7
*57 SMF 357 2.0 A ir p ort Market O&D

In and Outbound

ExpressJet regularly carried 19 to 24 passengers to Sacramento and our analysis, without including leakage passengers, indi cates another 20 passengers from our catchment area currently fly to Seattle and Portland. 23 This would provide 39 to 44 daily passengers, perfect for two 30 seat Embraer aircraft if we include leakage passengers. Survey data from the Chamber of Commerce and County Departments indicate a str ong demand for travel to Sacramento. The community can strongly support dire ct Sacramento air service, ra ther than the 6 hour drive or train ride. While these surface transportation routes are available, they spike trip costs with a need for an overnight stay for business traveler s. We often have Water Agency travelers who spend $800 per seat to charter flights, while Stat e, County and school districts must reduce trips or drive and remain overnight.

19 Source: Aviation DataMiner, Airport O&D Report 1 st through 4 th Quarter 2010
20 Source: Aviation Dataminer, Airport O&D Report 1 st through 4 th Quarter 2006
21 Source: Aviation Dataminer, Airport O&D Report 2 nd Quarter 2007
22 Source: Aviation Dataminer, Airport O&D Report 1 st Quarter 2008
23 Source: Aviation Dataminer, Airport O&D Report 1 st through 4 th Quarter 2010Kern County Airports Department 10

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

### Meadows Field (BFL) Airport s Top 20 Leakage Markets 24



### City Airport Code Annual Leakage Passengers Daily Leakage Passengers Guadalajara, Mexico GDL 37009 101.4 Mexico City, Mexico MEX 12087 33.1 Seattle, WA SEA 9194 25.2 Leon-Guanajuato, Me xico BJX 8721 23.9 Chicago, Il MDW,ORD 7722 21.2 Dallas, TX DFW, DAL 6038 16.5 New York City, NY JFK,LGA,EWR 5860 16.1 San Salvador, El Salvado r SAL 5828 16.0 Honolulu, HI HNL 5555 15.2 Morelia, Mexico MLM 4997 13.7 Houston, TX IAH,HOU 4734 13.0 Portland, OR PDX 4482 12.3 Atlanta, GA ATL 4418 12.1 Las Vegas, NV LAS 4376 12.0 Maui, HI OGG 3797 10.4 Orlando, FL MCO 3640 10.0 Midland/Odessa, TX MAF 3587 9.8 Baltimore,MD BWI 3240 8.9 Puerto Vallarta, MX PVR 3030 8.3 Salt Lake City, UT SLC 2935 8.0

The chart above shows the top 20 leakage market s for BFL and the number of annual and daily passengers who book flights in the BF L service area, but fly from a nother airport. Accurate data is not available on those who dr ive or take Amtrak to Sacramento. If it were, these numbers could be significantly greater based on letters from the comm unity. The direct flight to Sacramento can capture the Seattle and Portland leakage markets as well.

24 Source: 2002 Market Leakage Study conducted by Sabre, Inc.Kern County Airports Department 11

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

### Similar Market Comparison

All of the markets selected for comparison, except for Santa Barbara, CA, were chosen because they are similar in population si ze to the Bakersfield (BFL) Metr opolitan statistical area as reported by the US Census Bureau. However, population alone does not define a market as similar. This is why Santa Barbara, CA (SBA) was added as an airport for comparison because of its proximity from LAX. Santa Barbara is located 107 miles from LAX. Meadows Field (BFL) is located 123 miles from LAX. One of th e biggest factors impacting service in small communities is the cost of servi ce at the nearest hub versus the cost of service at the small community airport.
Ranked by population, on the chart below the yield per Coupon Passenger Mile (CPM) premium is the difference between the yield per Coupon Passenger Mile (CPM) at the nearest large hub airport and the yield per Coupon Passenger Mile (CPM) at the sm all community airport. BFL Airport highlighted in yellow on the chart belo w is 123 miles from LAX and has the highest yield premiums Per Coupon Passenger Mile (CPM). More interesting, however, are the airports highlighted in green. Even though th ese airports are just as close or closer to large hub airports their enplanements are substant ially higher. What makes the di fference? It appears that the difference in yield per CPM plays an important role. What drives down the yield per CPM? Competition!
The yield per CPM does not have to match the lower cost hub option; airlines can get a reasonable fare premium in smaller markets, a nd customers respond positively to lower rates with higher enplanements. 

### Similar Markets Comparison 25

MSA Airport Population Annual Enplanements Miles to a Large Hub Closest Large Hub Per Capita demand Yield/C PM Small Airport Yield/C PM at Hub Airport CPM Premium Albuquerque, NM ABQ 857,903 2,825,966 330 PHX 3.29 15.44 13.51 1.93 Albany, NY ALB 857,592 1,250,155 162 LGA 1.46 15.13 17.22 -2.09 Allentown, PA ABE 816,012 413,387 75 PHL 0.51 14.09 15.04 -0.95 Bakersfield, CA BFL 807,407 106,484 123 LAX 0.13 17.12 11.92 5.20 Baton Rouge BTR 786,947 381,508 79 MSY 0.48 18.34 16.11 2.23 Columbia, SC CAE 744,730 480,827 107 CLT 0.65 23.36 19.18 4.18 McAllen, TX MFE 741,152 344,288 247 SAT 0.46 16.96 14.78 2.18 Knoxville,TN TYS 699,247 804,469 188 ATL 1.15 21.80 18.13 3.67 Akron, OH CAK 699,935 771,047 54 CLE 1.10 14.28 18.41 -4.13 Little Rock, AR LIT 685,488 1,096,548 145 MEM 1.60 18.87 22.47 -3.60 Charleston, SC CHS 659,191 1,010, 625 206 CLT 1.53 20.80 19.18 1.62 Witchita, KS ICT 612,683 751,107 216 MCI 1.23 15.19 15.72 -0.53 Santa Barbara, CA SBA 407,057 382,894 107 LAX 0.94 14.41 11.92 2.49 Net difference between Yield/CPM Small Airport and Yield/CPM at Hub Airport

Santa Barbara, CA airport has a lower yield per Coupon Passenger Mile (CPM) than BFL, yet they do not have a true low cost carrier. They simply have more service per capita. Out of the highlighted airports, Akron, OH (C AK) has the highest service per capita and has the lowest yield per Coupon Passenger Mile (CPM). When suppl y is insufficient to meet market demand, prices will rise.

25 Source: All Metropolitan Statistic al Area information is from the US Census Bureau July, 1 2009; Annual Enplanements and Yield/CPM is from Aviation DataMine r, Directional Enplanement Trend Report 2010 and Airport O&D Report 1 st through 4 th Quarter 2010Kern County Airports Department 12

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 The chart below compares service levels at ai rports that have both similar service area populations and are also close to a major hub airport. The BFL ma rket is severely underserved when compared to the majority of other market s that are locate d within a two- hour drive of a major hub airport and have similar sized populations . ABE, BTR, CAE, and SBA all have close to three times the air service that BFL has. BFL also has one weekly flight per 10,765 people, compared to SBA which has one weekly flight per 1,801 people; clearly a positive indication of pent up demand for service at BFL.

Bakersfield 

## (BFL) Allentown 

## (ABE) Baton Rouge 

## (BTR) Columbia 

## (CAE) Akron 

## (CAK) Santa Barbara 

## (SBA)
2009 MSA Population 26 807,407 816,012 786,947 744,730 699,935 407,057

Enplanements 27 106,484 413,387 381,508 480,827 771,047 382,894 Weekly Frequencies 28 75 231 204 256 280 226

Number of Carriers 29 2 9 4 5 5 5

Number of Nonstop Destinations 30 5 14 5 10 14 5

One Weekly Flight per 10,765 People 3,533 People 3,858 People 2,909 People 2,500 People 1,801 People


### Average fares for Similar Markets 31
1% Difference

$282 $280

$242 $227

$187
$163

$100 $120 $140 $160 $180 $200 $220 $240 $260 $280 $300

Columbia, SC (CAE) Bak ersfield, CA (BFL) S anta Barbara, CA (SBA) Baton Rouge, LA (B TR) Allentown, PA (A BE) Akron, OH (CA K) 14% Difference 42% Lower than BFL

BFL has a high average fare when compared with similar markets. The most expensive markets within the group are within 1% of each other. The lowest co st market in the group, CAK’s average fare, is almost 42% lower than BFL’s.

26 US Census Bureau Metropolitan Statis tical Area information July 1, 2009
27 Aviation DataMiner, Directional Enplanement Trend Report 2010
28 Source: Individual Airport Websites; Aviation DataMiner, Time Period Schedule (Departures) Report, August 1-7, 2011
29 Source: Individual Airport Websites
30 Source: Individual Airport Websites
31 Source: Aviation DataMiner, Airport O&D Report 1 st through 4 th Quarter 2010Kern County Airports Department 13

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

### Competing Markets



## Fare Comparison of BFL’s Top Ten Markets 32 Against BFL’s Three Top Leakage Airports

$- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00

BFL $156.01 $327.51 $252.30 $208.37 $328.69 $176.38 $303.41 $241.42 $279.60 $311.60 $258.53

LAX $122.34 $294.14 $139.14 $162.20 $265.30 $149.83 $247.49 $250.83 $188.41 $277.21 $209.69

FAT $154.42 $222.19 $264.50 $194.60 $290.14 $283.28 $304.73 $212.42 $197.06 $275.19 $239.85

BUR $121.47 $199.30 $188.79 $168.41 $250.20 $175.57 $264.54 $219.79 $182.90 $236.66 $200.76 Phoenix Houston Denver Seattle Chicago Salt Lake City Dallas Ft. Worth Minneapolis Portland Washington, DC Market Average

The more important fare comparison is with those markets that compete for passengers with BFL. BFL has the highest overall average fare for its top ten markets compared with BFL’s top leakage airports. Often market pricing variances ar e attributed to equipment differences in large markets versus smaller markets. However, data proves this statement to be contrary in this instance. A flight from Los Angeles (LAX) to Phoenix (PHX) currently costs $372.00 round trip. From Santa Barbara (SBA) to Phoenix (PHX) th e fare is $374.00 round trip. While from BFL the price is $491.00, with al l itineraries being on the same CRJ model. 33

32 Source: Aviation DataMiner, Airport O&D Report, 3 rd Quarter 2010
33 Source: Orbitz, July 26, 2011Kern County Airports Department 14

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

## Strategic Plan

Air service deficiencies to be addressed through this project:

1. BFL is an underserved airport with approxi mately 1/3 the air service of similar communities. 2. Capacity reductions have caused fares at BF L to rise until we are currently the highest priced airport in Southern California. 3. BFL serves the many schools, water agencies and companies who deal with the State government in Sacramento. Because of this, there is substantial business travel between BFL and SMF. When direct service to Sacramento was av ailable, Sacramento quickly became part of our top ten largest markets, and yet at this time there is no direct service. 4. Total market leakage of 75% from BFL is due to inadequate service. The addition of new service will again require that BFL deve lop a uniform and consistent identity to promote our airport to the general public and reduce auto travel to LAX.



### Strategic Plan to Address Air Service Deficiencies:

1. Project Goals

Our primary project goal is to add another air ca rrier to our market in order to address the identified air service deficiencies. Our seconda ry project goal is to develop a uniform and consistent identity and to promote the airpor t to the general public in order to regain leakage passengers.

2. Action Plan

In order to meet our primary pr oject goal, we have identified Great Lakes Airlines as the carrier that can meet a primary unmet air service deficiency th at exists in the BFL market. The introduction of two flight s per day by Great Lakes Airl ines to Sacramento on the EMB-120 will add approximately 420 more weekly seats to the BFL market increasing capacity by close to 11%. In addition, Great Lakes Airlines serves the central western states and has code share with United Airlin es in un-served Pacific Northwest. . While this will not cure all of our air service deficiencies, it will be a healthy start to providing the service that will fill the si gnificant needs of our community.

The first part of our action plan includes thre e elements in order to be successful. The first element is to offset the initial risk of entering our market by assisting with station start-up costs. Great Lakes will already have a substantial investment in the cost of the aircraft to operate the service between BFL and SMF. The second element involves marketing the new service to our community. Th e third element is to set aside funds for revenue guarantees in order to offset the ongoi ng risk of beginning se rvice in a brand new market.Kern County Airports Department 15

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 We have begun the dialogue with Great Lakes Airlines to meet our primary objective. While our market looks promis ing, Great Lakes, as with most airlines, are not in a position to take risks on new and unproven market s. In order to be successful in gaining service to Sacramento we need to:

 Modify ticket counters, lif t stations and hold rooms

 Equip back room offices (office furniture and equipment)

 Obtain equipment to service aircraft

 Equip the terminal with additional electronic monitors for the public

 Waive landing fees

 Advertise and promote the launch of service

 Provide ongoing promotion

 Provide revenue guarantees

We, as an airport, can fund part of this a nd have gained some financial support from the community. However, we need the assistan ce from the grant in order to complete the financial package.

 Station Start-up Costs

The cost of an aircraft to begin serv ice in a new market is a substantial investment; however it is not the only cost that a carrier must consider. Station start-up costs for new service at BFL are a pproximately at $408, 225.

The second part of our action plan involves hi ring a consultant to run a new leakage study for the BFL catchment area. The Leakage Study will help us market to new carriers by:



##  Evaluating the impact of new serv ice on leakage from our market.



##  Identifying the current top leakage markets for the BFL catchment area.



##  Examining any changes in travel patterns from the leakage study we performed in 2002.

3. Marketing Plan: Community Awa reness of Service Available

Our marketing plan encompasses a broad range of media and collateral materials in order to saturate the market. Marketing will in clude not only marketing new service to Sacramento on Great Lakes Airlines, but will al so include marketing the airport as well.

Marketing the new Great Lakes Airlines serv ice to Sacramento will begin approximately six weeks prior to the start of service. The firs t part of the marketing effort will be a press release to local media announcing the new servic e. It has been our past experience that new service will be covered by all of our local news media. Two weeks later we will start our saturation campaign, which will last until one week after servic e is initiated. The saturation campaign will include television spots, radio spots, newspaper ads and billboards. We will also place newspaper ads and billboards in the Valencia/Castaic area and Southern Tulare County. Valencia/Castaic is halfway between BFL and LAX and is one of the fastest growing areas in Californi a and can commute more easily north to BFL than south to LAX.Kern County Airports Department 16

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 rports for service. After the saturation campaign is complete, we will run maintenance advertising for the next two months. Then we will run another one-month saturation campaign prior to the start of summer that will mirror the initial kick-off campaign. We have partnered with local television and press in or der to maximize our marketing efforts. They have agreed to provide 30% to 50% in additional advertisi ng for every dollar we spend. We will also provide collateral materials to local travel agents to give to their clients who book flights from BFL.

In addition to traditional advertising, we will r un a marketing effort with our local travel agencies called “Think Meadows Field First.” As a part of our promotion of Great Lakes Airline service, we will meet with Great La kes Airline sales representatives and local travel agencies to promote their new service from BFL. We will also put together various travel related promotional items for the travel agencies to give to clients who book their air travel from BFL duri ng the saturation campaigns.

The marketing program will not only focus on the new service but will also include marketing of the airport to enhance ridershi p on existing carriers at BFL. The airport marketing will require emphasis of the airpor t logo, graphics and copy layout for ads and promotional items, publication and widespread distribution of an electronic newsletter, updating the airport website, and the creation of brochures to promote the airport to the airlines and the general public.

4. Revenue Guarantees

The final element in our plan involves setting aside $225,000 in funding to offset operating losses that may occur during the firs t eighteen months of operation. Because of the extensive traffic analysis that we have done and the tremendous support for service to Houston from our community, we believe th at the service will very quickly reach profitability. However, these are very uncertain times that we live in and the first eighteen months of service will be critical. The terms and conditions surrounding the revenue guarantees will be negotiated with Great Lakes Airlines should we be successful in our grant application. The negotiation process will include setting traffic and revenue targets and will contain performance and reliability requirements for Great Lakes Airlines service in the BFL market such as mutu ally agreed upon completion rates and on time performance requirements.

5. Sustainability

The BFL catchment area generates close to 400,000 passengers annually. 34 Unfortunately, due to limited air service from BFL, approximately 75% of these passengers drive to other ai

34 Source: 2002 Market Leakage Study conducted by Sabre, Inc.Kern County Airports Department 17

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 When analyzing BFL’s top ten markets during the time frame that direct service to Sacramento was available, Sacramento became BFL’s third (3 rd ) largest O&D market and generated approximately 23 daily passengers with 28+ daily passengers going further north. 35 Kern County has significant business links with the state capital, Sacramento, generating substantial business travel between BFL and SMF. Passengers book air travel from BFL’s service area to domestic destinations served th rough Sacramento, but because of the current air service inadequacies at BFL, these passengers drive or take AMTRAK to Sacramento. In addition, a route to the Pacific Northwest could capture all of the local market, providing the following passengers daily each way (PDEW): 36

BFL-SMF: 23 BFL-SEA: 14 BFL-PDX: 6 BFL-GEG: 3 BFL-ANC: 1 The total passengers for these core routes are 47 passengers per day each way. If we add 40% of the leakage passengers from the Sabre Study, there would be an additional 19 passengers for a total of 66 PDEW. 37
The bottom line sustainability is based on population and demographics. Is there a passenger base capable of sustaining the service? A small community cannot afford to continue to subsidize service that is underutilized forever. As an airport, we can subsidize service for a short period of time; however, the service must make sense and offer real value to the community. We feel that service on Great Lakes Airlines through Sacramento meets this criterion. BFL has the passenger base to sustain service on Great Lakes Airlines to Sacramento. With adequate marketing, BFL to SMF should be a very profitable route for Great Lakes Airlines.



### Population Growth 2000-2010

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

California Bakersfield Santa Clarita Fresno Stockton Modesto

*Source: U.S. Census Bureau State & County Quick Facts, Census 2010

For the past decade Bakersfield has been one of the fastest growing communities in California.

35 Source: Aviation DataMiner, Airport O&D Report, 2 nd Quarter 2008
36 Source: Aviation DataMiner, Airport O&D Report, 1 st through 4 th Quarter 2010; SMF number based on the time period when ExpressJet was offering the se rvice – Aviation DataMiner, Airport O&D Report, 2 nd Quarter 2008
37 Source: 2002 Market Leakage Study conducted by Sabre, Inc.: SEA 10, PDX 5, GEG 2, ANC 21.)Project Timeline: Great Lakes Airlines: 2 Daily Flights to Sacramento on Brasilia EMB 120ActivityReceipt ofGrantJ-12F-12M-12A-12M-12J-12J-12A-12S-12O-12N-12D-12J-13F-13M-13A-13M-13J-13J-13A-13Negotiate Agreement with GreatLakes2.)Purchase and Install Equipmentfor Station Start-up3.)Great Lakes service betweenBFL and SMF4.)Funding for OperationsRevenue Guarantees(up to 18 Months)Waive landing fees:( 3 months)5.)Marketing and Promotion ofServiceSaturation CampaignsProvide ongoing promotionTravel agency meetingPromotional items6.)Airport MarketingBrochuresPromotional ItemsWebsite UpdateMedia Advertising forAirportQuarterly ElectronicNewsletterKern County Airports Department 19

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

## Public and Private Partnership

The Kern County Department of airports ha s partnered with the local community to ensure the success of Great Lakes Airlines se rvice to Sacramento. The Department of Airports has been in constant contact with organizations that travel frequently to Sacramento. Many of these companies have wr itten letters of support (attached) for the new service:

 Kern County Superintendent of Schools

 Kern County Water Agency

 Greater Bakersfield Cham ber of Commerce (GBCC)

 Bakersfield Convention & Visitors Bureau

In addition to the support from our local schoo ls, water agencies and government offices, local media have pledged matching funds to market Great Lakes Ai rlines service to Sacramento.

 The Bakersfield Californian

 KGET TV Ch17 (affiliated with CW and Telemundo television stations)

 KERO TV Ch 23, A division of the McGraw-Hill Companies

 KBAK TV Ch 29/KBFX TV Ch 58 /THIS TV 

## Project Sponsor

The sponsor and fiscally responsib le party for this project is:

The Kern County Airports Department 3701 Wings Way, Suite 300 Bakersfield, CA 93308-7026 

## Budget for Program

The Airports Chief Financial Officer manages contracts and grants for the organization. She and her staff have 35 years combined experience managing large state and federal grants. Staff utilizes a mode rn computerized accounting system designed for contract management. Legal counsel, engineering, and purchasing staff are avai lable to assist as required.

This organization receives annua l entitlement grant funds and periodic discretionary grant funds from the Federal Aviation Administ ration Airport Improvement Program. The funds are managed through a regimented pro cess of project engi neering and proposal, project approval, grant fund acceptance, proj ect implementation and execution, project completion and acceptance, and expenditure reimbursement. The mechanics of the process are well established and efficient. Projects completed with FAA AIP funds over the last ten years have ranged from $65,000 to $33,000,000.Kern County Airports Department 20

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

### Program Budget

Activity A irport Cash A irport In

Kind Community Grant Total

1.) Equipment for Station Start-up
GSE $150,000.00 $150,000.00
Radio $10,000.00 $10,000.00 Telephones and Data $160,000.00 $160,000.00
Electronic Service Center $10,000.00 $10,000.00 ATO, Bag Belts, Security $60,000.00 $60,000.00 Furniture Fixtures and Equipment $18,255.00 $18,255.00 Total for Equipment $0.00 $0.00 $0.00 $408,255.00 $408,255.00

2.) Funding for Operations
Provide Revenue Guarantees $225,000.00 $225,000.00 Airline Rent abatement (3 months) $18,450.00 $18,450.00 Waive landing fees: ( 3 months) $3,933.00 $3,933.00 Total for Operations $0.00 $22,383.00 $0.00 $225,000.00 $247,383.00

3.) Marketing and Promotion of Service Leakage Study and Market Analysis $20,000.00 $20,000.00 Saturation Campaigns $52,580.00 $120,600.00 $173,180.00 Provide ongoing promotion $39,000.00 $91,000.00 $130,000.00 Promotional items $15,000.00 $15,000.00 Total for Marketing and Promotion $0.00 $0.00 $91,580.00 $246,600.00 $338,180.00

4.) Airport Marketing
Board of Trade $1,500.00 $1,500.00 Brochures $2,500.00 $2,500.00 Promotional Items $2,000.00 $2,000.00 Website Update $2,500.00 $2,500.00 Quarterly Electronic Newsletter $5,200.00 $5,200.00 Total for Airport Promotion $8,500.00 $5,200.00 $0.00 $0.00 $13,700.00

Project Totals $8,500.00 $27,583.00 $91,580.00 $879,855.00 $1,007,518.00 

### Great Lake Airlines: 2 Daily Flights to Sacramento on Embraer'sKern County Airports Department 21

Small Community Air Service Deve lopment Program Proposal 8/2/2011 Docket DOT-OST-2011-0119 

## Critical Milestones, measures of success, monitoring, modification and termination

Critical milestones for the project will be:

1. Execution of an agreement between Great Lakes Airlines and BFL to begin service to SMF 2. The start of BFL-SMF service by Great Lakes Airlines

The success of the program will be evaluated based on several performance criteria including:

 Initiation of BFL-SMF service two f lights daily on Embraer Brasilia EMB-120 by Great Lakes Airlines

 Overall traffic generated by BF L-SMF on Great Lakes Airlines

 A decrease in average fares at BFL

 An increase in overall enplanements at BFL

What we will use to monitor results:

 Monthly airline traffic statistics

 Aviation DataMiner: Quarterly Report of Airline Statistics

 The Department of Transportation’ s: The Domestic Airline Fares Consumer Report

If an agreement is not reached with Great Lakes Airlines or for some reason scheduled service is not started by September of 2012 then we would look at the need to modify the project to meet our objectives. If it is not possible to modify the project in order to meet our goals then we would terminate the project and return the grant funding. 

## Letters of Support

 Great Lakes Airlines

 The Honorable Jean Fuller, California State Senator 18 th District

 The Honorable Michael J. Rubi o, California State Senator 16 th District

 Assemblywoman Shannon Grove, California Legislature 32 nd Assembly District

 Mike Maggard, Kern County Supervisor 3 rd District

 Kern County Superintendent of Schools

 Kern County Water Agency

 Greater Bakersfield Cham ber of Commerce (GBCC)

 Bakersfield Convention & Visitors Bureau

 The Bakersfield Californian

 KGET TV Ch 17 (affiliated with CW and Telemundo television stations)

 KERO TV Ch 23, A Division of the McGraw-Hill Companies

 KBAK TV Ch 29/KBFX TV Ch 58/THIS TV