# Application Under the Small Community Air Service Development Program, Docket

DOT-OST-2012-0069

Community Applying for Grant: Town of Mammoth Lakes, California

Legal Sponsor: The Town of Mammoth Lakes, California DUNS number: 1446033390000

Tax ID No. /EIN: 

### 770043067 Congressional District Code: 25 June 11, 2012

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page i 

## Table of Contents

Introduction and Statement of Need ............................................................................................ 1 Community’s Existing Air Service .............................................................................................. .2 Community’s Historical Service ................................................................................................ ...3 Air Service Development Effo rts over Past Five Years ...........................................................4 Marketing and Promotional Efforts to Support Air Service .....................................................4 Air Service Needs/Markets Not Adequately Served ...................................................................5 Fare Levels that Community Deems Re levant to Consideration of Grant ...............................6 Market Analyses ............................................................................................................... ........6 Strategic Plan for Meeting Needs U nder the Small Community Program ..............................6
How Service Will Become Self-Sufficient ...............................................................................7 Public/Private Partnership .................................................................................................... ....8 Funding Necessary for Implementation of the Project .............................................................9 Cash Contributions from Stat e and/or Local Government .......................................................9 Community Plans to Continue Project .....................................................................................9 Legal Sponsor Responsible for Administering the Program ....................................................9 How Community will ensure Funding Cont ribution is spent as Proposed / Critical Milestones/Reports ............................................................................................................ .......9 Closing /Summary .............................................................................................................. ..........10
Exhibits ...................................................................................................................... ...................11 Exhibit A: Market analyses/studies dem onstrating understanding of local air service needs ......................................................................................................................... ..............12

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 1 

### Introduction and Statement of Need Mammoth Lakes, Calif., located in eastern Calif ornia about 300 miles from Los Angeles, is home to the Mammoth Mountain Ski Area. Southe rn California's most popular mountain resort, MMSA ranks consistently among the top ski resorts in the country. In addition, the proximity of Mammoth Lakes to Yosemite National Park and th e Eastern Sierra range offer unmatched worldclass outdoor recreation opportunities during the spri ng/summer/fall season. The Mammoth Lakes economy is 100-percent touris m-dependent, with seasonal ebb and flow of visitors creating extreme economic and employment fluctuations. The locale is remote – Los Angeles, the area’s largest vis itor market, is a five- to six-hou r drive. The ongoing challenge for Mammoth Lakes has been to stabilize visitor occupancy during the shoul der seasons. For the past several years, th e community has focused major resources and investment, public and private, on providing year-round commercial air service, amenities a nd attractive meeting facilities. Grant Request: The Town of Mammoth Lakes is requesting a DOT subsidy of $600,000 to be provided over two years 2013-2014. The grant will be used to add a second daily Los Angeles flight for June, July, August and half of Sept ember and pay for the minimum revenue guarantee to Alaska Airlines. Furthermore, we are requesting $100,000 to be used for the summer 2012 marketing of a new frequent flyer offer, currently being called the “Super Flex Pass” which will be geared towards increasing frequency of flying for both our local and des tination markets. The grant would be administered by Mammoth Lakes Tourism [MLT], the public/private Partnership behind this effort that was formed in 2010. DOT funding is requested to offset the additional subsidy required to add the second f light from LAX to MMH during the peak summer months of June-mid-September. The request is for $350,000 for 2013 and an estimated $250,000 for 2014, when funding needs for this second da ily flight are expect ed to decrease. The Mammoth Lakes proposal achieves the 83.33-pe rcent reimbursement rate and acknowledges the requirement. This grant would allow Mammoth Lakes to enha nce service during its peak summer months when demand for service and flexibility is high est and this funding support during its critical startup phase is paramount for the success of the program. It would also help the public/private Partnership and community achieve their stra tegic plan of offering regular twice daily commercial air service du ring our peak season. With receipt of the $100,000 marketing grant fo r the “Super Flex Pass” the Mammoth Lakes Partnership would increase the reach of this ne w frequent flyer or bulk purchase program to increase load factors during the 2012 season. Once established this program should be self sufficient but this grant is key towards achievi ng that self sufficiency as soon as possible. In only its second summer, the air program has al ready shown encouraging results with just one flight daily. Alaska Air load factors into MMH were 41 per cent in 2010 spring/summer/fall season and achieved 52 percent load ( paid passengers) – based on the final summer 2011 results. This was a 26.8 percent increase in load factor year over year. Of these passengers, 30 percent said their only reason fo r visiting Mammoth Lakes was dire ct, reliable flight service.

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 2 With a concentrated marketing push that focuse s on spring/summer/fall air, the Partnership is confident they can give a critic al “kick start” to passenger awar eness of the second daily flight option. Even before the Great Recession, Mammoth busine sses have been hard-pressed to keep their doors open after ski season, to keep good employees, or to invest in facilities or housing. The community goals to be realized from a DOT gr ant will be sustainable employment, full-time economic opportunities, and an improved tax base from second-homeowners.

The DOT grant is critical to sustain the additi onal spring/summer/fall air service into Mammoth Lakes until the second-daily; peak summer flight can become self-sustaining – projected for summer 2015. Once this occurs, the Partnershi p anticipates Mammoth Lakes can offer the second daily LAX flight w ith no subsidy required Proposal Request The following proposal by the Town of Mammoth La kes, [TML], a public entity, responds to the items outlined in the DOT Order Soliciting Small Grant Proposals. 

### Community’s Existing Air Service After decades with no commercial air service, the Mammoth Mountain Ski Resort [MMSA] in 2008 negotiated a Minimum Revenue Guarantee with Horizon Airlines (now Alaska Airlines) to fly a 76-seat turboprop daily between MMH a nd Los Angeles International Airport (LAX) during the December 2008 – April 2009 ski season. Th is winter service has grown to include up

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 3 to seven daily flights, two from Los Angeles (LAX), two from San Francisco as well as air service from San Jose, Orange County and San Die go, California. In spring /summer/fall, there is currently one flight a day from Los Angeles (2012 is the thir d summer for this operation).

Traffic Levels During the 2011 spring/summer/fall season, Alaska Air reported 9,246 actual enplanements. The service achieved a 52-percent load factor – far less than is requ ired for break-even, but up from 41% in 2010 and considered by the community as indication of future growth. Onboard revenue was also up 62 percent, driven by a 17 per cent improvement in yield and 56 percent improvement in RASM. Overall contribution improved 32 percent, or 44 margin points. However, Alaska Air’s operating costs out of L AX year over year have increased dramatically with the high price of fuel and cost of opera tions out of the LAX hub. Wh ile load factors have risen, the actual amount of the subsidy to Alaska Air has actually increase d quit substantially.

Fare Levels One-way fares for service into Mammoth have ra nged from $79 to $164. It is important to note that fare levels are not consid ered a factor in passenger use of the flights – convenience and reliability are cited by passengers as more important. In 2011, even with passenger loads ahead of 2010, the summer air program was a heavy financial burden on the funding partners. With the se verely depressed economic conditions and government cutbacks that have impacted Californi a, it has become increasingly hard to go to public entities for support. However, year-round ai r is still considered so essential to the local economy the Partnership has contin ued to subsidize the service

. The addition of a second summer flight during peak times is expected to raise load factors for both flights by adding more flexibility for passengers both lo cal and destination passengers. 

### Community’s Historical Service Long before the start of Alaska Airlines’ flights in 2008, year-round air was named by the Mammoth Lakes community as the single most impor tant aspect to the area’s economic survival, as shown with excerpts from the General Plan for Mammoth Lakes of 2007 : Community Vision

• Being a premier, year-round resort comm unity based on diverse outdoor recreation, multiday events and an ambiance that attracts visitors. Economy

• Be a premier destination community in or der to build a sustainable year-round economy.

• Achieve a more diversified economy and empl oyment base consistent with community character. Air Service

• Establish and maintain air service connecti ng the Mammoth Lakes area with destination visitor markets around the world.

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 4 

### Air Service Development Effort s over Past Five Years In 2009 the Town of Mammoth Lakes and MMH completed $15 million in major capital improvement and environmental impact study projects to initiate commercial air service. These essential upfront costs were funded from a mix of public/private sources as shown below. No funding has been from the Small Community Program.
Capital Project Cost Funding Source Runway Renovation, and Infrastructure for Initiation of Commercial Air Service $15,000,000 FAA/Caltrans/Town



### Marketing and Promotiona l Efforts to Support Super Flex Pass With the $100,000 DOT grant, marketing of the new Super Flex Pass could be greatly increased – by a projected 50 percent over current budget outlined for summer 2012. This marketing would target the core summer vis itor markets in Southern California as well as local residents in Mono and Inyo Counties. The targets for summer service are active out door enthusiasts who have been driving to Mammoth for generations for summer vacation. The goal would be to increase their visitation in number of visits a nd length of stay by eliminating a day of driving on either side of their trip. By offering the 6 a nd 10 Super Flex Pass options (each worth a one-way segment on Alaska Airlines to/from MMH and L AX) we are looking to introduce new guests to the air service and increase traffic for those who ar e already familiar and use the service. Goal is to sell 1800 of these in year one and 2500 in year two. Building on the formal winter marketing program s of Mammoth Lakes Tourism and the ski area, a spring/summer/fall marketing program for th e Super Flex Pass would use these media:

• Digital marketing – E-mail lists, web sites, geo-target ed online advertising and social media are high-impact, cost-effective social media that communicate directly with loyal followers. MMSA has the largest number of Fa cebook followers of any ski resort in North America (just under 120,000); Mammoth Lakes Tourism has nearly 14,000. Increased use of SEM [paid search engine mark eting] would target vi sitors searching for keywords like Mammoth Lakes, Yosemite, fi shing, mountain biking, hi king, Sierra, Mono Lake, etc. These tactics are yielding an excellent ROI of 6 to 1. Additional dollars would be invested in Digi tal Display Advertising networks to allow behaviorally geo-targeted online advertising to those with a prope nsity to travel to the region.

• Collateral – Development and distribution of brochures/rack cards and special flyers/posters for all area l odging and information centers.

• Advertising – Campaigns would be expanded in targeted media such as Eastside Magazine, Bike Magazine, Decline Magazine, Mountain Bike Action Ma gazine and others. Further investments would be made in key markets around LAX in newsprint (LA Times, OC Register), radio, and outdoor (billboard). All marketing will in clude a call to action promoting the newly developed bulk air options to guests. An additional focus will be to encourag e Mammoth Lakes, Mono County and Inyo County “locals” to take advantage of the Super Flex Pass to book flights to Southern California. This would be promoted around the region with radio and newspaper and mailings.

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
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Legal Sponsor: Town of Mammoth Lakes, CA Page 5

• Public relations/media placements – Media hosting is expens ive, involving travel, lodging, food, and entertainment. Efforts would bring in travel writer s to experience – and write about -- the air service and the des tination. Funding would enable Mammoth Lakes to host far more writers from expanded mark ets, demographics and publications and drive home the message that air is a great way to access the region.

• Direct Mail – Direct mail via local mailbox drops will promote the program to our local markets and utilizing tax records we will ma il to all second homeowners in the area. Mammoth Mountain will also direct mail to all winter season passholders alerting them to the Super Flex Pass as well as events & activitie s to draw guests to the region in summer.

Timing – The marketing focus on the Super Flex Pass would begin in mid-June 2012nand continue through mid-August to maximize the reach. The usage of the product is set to be valid through mid-December. Marketing & Additional Summer Flight Subsidy Funding The DOT funding request is $600,00 0 over two years. Using these funding amounts, the DOT local contribution reimbursement rate would equal roughly 30 percent. Below is a breakout of 2013 spend on spring/su mmer/fall air including the additional flight: Mammoth Lakes Tourism [public] Online- $51,500 Print- $175,000 Radio- $32,000 Trade Shows- $18,000 Total $314,000 Mammoth Mountain Ski Area [private] Online- $221,500 Print- $50,500 Out of Home- $6000 PR- $20,000 Total- $298,000 If the program goes as planned, the Partners hip would increase the 2014 marketing budget by an additional $300,000. The need to aggressively mark et spring/ summer/fall is imperative for the region. Visitor recognition is not at the same le vel as Mammoth Lakes as a winter destination, yet there is a tremendous amount to offer. Summer focus is on fishing, hiking, biking (mountai n and road), golf, high-altitude running and the natural beauty of th e region. With the entrance to Yosem ite National Park just 1⁄2 hour away, this is a key message for people to make Mamm oth Lakes/Mono County a base for their summer trips. The remote location makes the air service critical to eliminate that objection to Mammoth Lakes/Mono County as a summer destination. The biggest opportunities are from JuneSeptember. Additional summer air service makes Mammoth Lakes accessible for weekend fishing or fall color trips connecting through LAX.



### Additional Air Service Needs/Ma rkets Not Adequately Served The spring/summer/fall ai r program has already begun to addre ss “inadequately” served markets:

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 6 Los Angeles/Southern California. Approximately 75-85 percent of Mammoth Lakes’ visitors are from this region. Flights eliminat e the need to drive five-six hours.
Second homeowners. A key growth driver, this affluent traveler wants to semi-commute with longer midweek visits and is willing to pay airfar es. Both the addition of a second summer flight as well as the introduction of the Super Flex Pass are key to this market segment. Domestic and international visitors to Eastern Sierra region. Many of these want lengthy stays. Flights make Mammoth Lakes a destination vs. a pass-through. The second summer flight will allow for far better connectivit y during our peak summer travel months. Mammoth Lakes business community. Year-round air opens doors for investment. The business community would be able to invest in facilities to serve major conferences and conventions. The opportunity for people to live in Mammoth and “commute” for their job becomes very real with increased air access and he lps combat the perception of remoteness. The addition of a second summer flight would allo w much easier access for the business community. The next logical step in increasi ng air capacity to MMH is to explore this se cond daily flight for the peak summer season. When wint er service from Alaska Airlines went from one flight to two per day in 2009-2010, overall load factors went up for both flights. Offering departure time options made both flights more attractive to guest s. The Partnership is requesting the DOT grant to add this second daily fli ght during the summer of 2013. 

### Fare Levels that Community Deems Re levant to Consideration of Grant LAX-MMH fares of $79 - $86 per segment have met with no resistance from passengers. The addition of the Super Flex Pass will allow more fre quency of visits as well as more trial due to the transferability of the product. Mo re information, please see Exhibit A. 

### Market Analyses Numerous surveys by Mammoth Lakes’ area entities and Alaska Airlines have consistently cited air service is a chief reason for th eir visit and repeat visits. For study results, see Exhibit A. Program Sponsor The Town of Mammoth Lakes [TOML], a public entity, is official program sponsor. Prior Small Community Program Grants No member of the Partnership has received prior Small Community Program grants. Factors Affecting Traffic in the Past The chief factor has been lack of awareness of reliable commercial air service to/from MMH as well as flexibility of scheduling – the second f light will make this less of a challenge for travelers. 

### Strategic Plan for Meeting Need s Under the Small Community Program The Town of Mammoth Lakes considers this proposal as serving as a Strategic Plan. It clearly defines the goals and objectives for the grant fu nding, presented in light of a well-thought-out

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 7 strategy for continuing summer air service. Th e Timetable and Critical Milestone information below provides details on how th e initiative will be executed.

• Note on possible “change in objectives.” The Partnership has cl early identified our need for funding – to offset the subsidy for additiona l flight operations. We anticipate no change in this objective over the life of the grant. Timetable for Implementation/Critical Milestones
Date Activity 10/1/2012 Partnership starts negotiations with Alaska Air for summer 2013 service
12/15/2012 DOT Grant awarded; Partnership signs agreement with Alaska Air for additional (second flight June-September) summer 2013 service 12/16/2012 Partnership signs agreement with MMSA, TOML and Mono County guaranteeing subsidy costs will be split 12/20/2012 Alaska Air loads newly created second summer service into systems for sale
12/27/2012 Partnership initiates marketing program to continue through September 15, 2013
4/25/2013 Second summer air service/flight 2013 season begins
9/15/2013 Second summer air service/f light 2013 season ends
9/30/2013 Reconciliation of June through September financials and any payment to Alaska; Quarterly report to DOT 10/1/2013 Partnership starts negotiations with Alaska Air for spring/summer/fall 2013 service
12/20/2013 Alaska Air loads second summer service fl ight (year two) into systems for sale
12/27/2013 Partnership initiates marketing program to continue through September 15, 2014
1/7/2014 Alaska provides final cost for 2013 subsidy to Partnership; Partnership applies to DOT to use funds to pay 50% of costs, is paid balance by three existing Partners 4/24/2014 Second summer air service/flight 2014 season begins
9/15/2014 Second summer air service/f light 2014 season ends
9/30/2014 Reconciliation of June through financials and an y payment to Alaska; Quarterly report to DOT
1/7/2015 Alaska provides final cost for 2014 subsidy to Partnership; Partnership applies to DOT to use funds to pay 50% of costs, is paid balance by three existing Partners
1/31/2015 Final DOT report

Based on the track record with wi nter air service, the Partnershi p is confident it can meet all milestones as shown above.


### How Service Will Become Self-Sufficient
Mammoth Lakes is confident that the second su mmer flight program, as well as the exisiting summer service, will continue to show improved fi nancial results. The 11-poi nt increase in load factor from 2010 to 2011 and a 62-percentage incr ease in onboard revenue over last year, the first year of spring/summer/fall service.
The confidence of success in the service is driven by history. In the firs t year of LAX winter service (2008-09) program loss was $167,000. The following season (2009-10) the LAX service

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 8 turned a profit of $137,000 with twice as many fli ghts. This shows the opportunity we have by adding the second daily flight from June through September. 

### Public/Private Partnership The Mammoth Lakes Tourism Partnership consis ts of three key members: the Town of Mammoth Lakes [owner of MMH], Mammoth Mountain Ski Area, and the Mono County Economic Development and Tourism Office. Partners have support from the Lodging Association and other private ar ea businesses. The Partnership ha s a track record of working cohesively to build a viable air program. The Town of Mammoth Lakes (through tour ism tax dollars), Mono County, and Mammoth Mountain Ski Area have committed to providing f unding for the summer air initiative with funding for marketing and/or the subsidy to Alaska Airlines. Member roles include:

• Town of Mammoth Lakes – Legal sponsor of grant. TO ML will fund up to 50 percent of the subsidy to Alaska Airlines for the mi nimum revenue cap. TOML will report to DOT on the status of the project and will manage the marketing plan and implementation.

• Mammoth Lakes Tourism – MLT Executive Director will serve as Program Manager. MLT will be lead entity in signing the contract with Alaska Airlines and paying the subsidy using funds from the Partners and the DOT Grant.

• MLT will also oversee program direction; reporting of load factors, average ticket yields, origination/destination and financial reports. Will participate in discussions on potential new markets, f unding options and marketing.

• Mammoth Mountain Ski Area – Funds up to 50 percent of MRG subsidy to Alaska Air.

• Will evaluate results of the Air Service Interact with Town Manager, Airport and Transportation Director, and MLT Executive Director

• Continue to provide, expand marke ting support for summer program

• Continue to operate dedicated local shuttle for air passengers [In-kind]

• MMH Airport and Transportation – Will operate MMH terminal, ground support.

• Mono County – Will participate in subsidy for marketing.

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 9 

### Funding Necessary for Implem entation of the Project A DOT grant of $600,000 over a two-year period, 2013 – 2014, would be used to offset 50 percent of the Minimum Revenue Guarantee to Alas ka Air to subsidize th e second daily flight.
Source EST June-Sept 2013 Est. June-Sept 2014 Total
MRG Est. Net Subsidy Owed to Alaska Airlines $700,000 $500,000 $1,200,000
DOT Grant Contribution 50% $350,000 $250,000 $600,000

Funding Calculations The cost calculations for the grant request are de tailed in the tables belo w using the cost basis from the existing spring/summer/fall MRG c ontracts with Alaska Airlines from 2011.
Variable Amount Alaska Air Revenue Guarantee $1,400,000 Roundtrips summer (June-Sept) season 97 Seats per plane 76 Total seats (June-September) 14,744
Funding Sources and Commitments These are outlined above.


### Cash Contributions from Stat e and/or Local Government Mammoth Lakes Tourism spends roughly $314,000 for summer marketing. A major source of MLT funding is the Transit Occupancy Tax [TOT ]. MMSA’s contribution is $612,000 per year. 

### Community Plans to Continue Project If the project fails to become se lf-sustaining at year 2014, the Part nership will be severely limited in its ability to continue the air service. A co mmunity of Mammoth Lakes’ size simply could not afford to keep its off-peak air program in place until the economy, awareness and visitor traffic grow to the point of sustaining th e service. Air service is the key driver of economics in Mono County, impacting real estate, t ourism, second homeownership, qua lity of life for locals, along with better health opportuniti es and a vision of progress. 

### Legal Sponsor Responsible fo r Administering the Program The legal sponsor is the Town of Mammoth Lakes, a public entity. 

### How Community will ensure Funding Contribution is spent as Proposed / Critical Milestones/Reports The Program Manager will manage the grant progr am, project plan, Critical Milestones, and invoicing DOT, and reporting. This includes weekl y, monthly and quarterly reports on financial

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
June 11, 2012

Legal Sponsor: Town of Mammoth Lakes, CA Page 10 data, booking trends, load factors, average ticket price, total cost and total revenue. 

### Closing /Summary The Town of Mammoth Lakes and Partnership me mbers take this opportunity to summarize the reasons for a request for DOT funding unde r the Small Community Grant Program.

• The members of the Partnership – Town of Mammoth Lakes, Mammoth Mountain Ski Area, Mono County, and Mammoth Lakes Tourism initiated a Minimum Revenue Guarantee in 2010 to subsidize Alaska Ai rline for daily summer flights.

• Since then, spring/summer/fall f light service introduced with one flight daily has been well received by passengers. By adding a second summ er flight during peak times we anticipate a growth in both flights lo ad factors moving forward.

• A DOT grant would allow Mammoth Lakes to b oost marketing of summer air service via the Super Flex Pass by upwards of 50 percen t. This would reach highest-priority demographic and geo-markets wi th more reach and frequency.

• The program would be managed by a proven pr ofessionals according to best-practices implementation plans and critical milestones

• The entire Mammoth Lakes community is behi nd this request and realizes the economic future of the area depends on co mmercial flight service. Mammoth Lakes appreciates consideration of this proposal and looks forward to forging a solid relationship with the U.S. De partment of Transportation. Respectfully submitted,

David Wilbrecht, Town Manager Town of Mammoth Lakes

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
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Legal Sponsor: Town of Mammoth Lakes, CA Page 11 

### Exhibits

• Exhibit A: Market analyses/studies demons trating understanding of local air service needs

• Exhibit B: Mono County Tourism – Letter of Support

• Exhibit C: Mammoth Lakes Tourism – Letter of Support

• Exhibit D: Town of Mammoth Lakes – Letter of Support

• Exhibit E: Mammoth Mountain Ski Area – Letter of Support

Please let us know if you need furt her detail or supporting information

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
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### Exhibit A: Market analyses/studies demonstrating understanding of local air service needs

Alaska Air Passenger Quantitative Satisfaction Study Research administered to Adults who had flown during the Summer months from LAX to MMH

• One third of summer passengers would not have visited the area if Alaska Air did not offer air service, split evenly with not travel ing at all or going to a different resort.

• 76% express a positive impact of the air servi ce on their likelihood for fu ture visits to the area – during both summer and winter months.

• 80% are extremely likely to recommend others use Alaska Air service to travel to area (9/10 rating on 10-point scale).

• Average Length of Stay was 4 nights in the area, approximately $144 spent per person per day on all accommodations, f ood/beverages and activities

• Among the few with suggestions for improvemen t: offering additional flights -- both from other cities, as well as more flights per day which leads us to the second daily LAX flight.

• The convenience of air travel to the ar ea drives Passengers’ overall satisfaction specifically that it is fast/quick/short.

• Air service impacts future intent to visit the area; over 75% of Passengers reporting they would visit “much more/somewhat more frequently” C.A. Walker Survey Survey of Alaska Air passengers – Impacts of Spring/Summer/Fall Air Program

• 33 percent of those flying to Mammoth Lakes would not have come to the area if not for the flights

• The average time spent in the area by each customer: 3.7 days; average amount spent in the area by each person was $144 per day Mono County Economic & Fiscal Impacts and Visitor Profile – FY 2008 Important benchmark; speaks to regional need for air service.

• In 2008, the Mono County visitor market cap tured 1.5 million visitors and 5.5 million visitor days in the area.

• Visitors generated $370MM in direct total spend, $16MM in taxes, supporting 4,500 jobs.

• Spring/summer/fall visitor volume was 1.2 million with spend of $145MM.

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
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Legal Sponsor: Town of Mammoth Lakes, CA Page 13 

### Exhibit B: Mono County Economic Development and Tourism – Letter of Support

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
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### Exhibit C: Mammoth Lakes Tourism – Letter of Support

### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
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Legal Sponsor: Town of Mammoth Lakes, CA Page 15 

### Exhibit D: Town of Mammoth Lake s, Town Manager – Letter of Support

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### Proposal Under the Small Community Air Service Development Program Docket DOT-OST-2012-0069
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### Exhibit E: Mammoth Mountain Ski Area – Letter of Support