# August 2, 2011 Sponsor: Southwest Oregon Regional Airport , North Bend, Oregon Theresa Cook, AAE, Executive Director Congressional Code: OR

- 004
Du n & Bradstreet Number: 051460470 Tax Identification Number (EIN): 72

- 1557818 

### Application for Federal Support for New Air Service via:
Revenue Guarantees Advertising/Marketing Program
Start

- Up Cost Offsets 

### In Support of Non

- Stop Service between North Bend/Coos Bay and Salt Lake City 

# SOUTHWEST OREGON REGIONAL AIRPORT NORTH BEND/COOS BAY, OREGON
Proposal Under the Small Community Air Service Development Program Docket DOT

- OST

- 2011

- 0119Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 2 TABLE OF CONTENTS

Introductory Letter of Support 3 Summary Information

– Appendix C 4
Introduction 7
The North Bend/Coos Bay Air Service Market 8
Current and Historical Service 8 Air Service Development Efforts 15
Air Service Needs and Deficiencies 16 Strategic Plan for New Air Service 23 Proposed New Route 23 Implementation Timeline 30
Alternate Plan 31
Public/ Private Partnership 32 Funding Plan 35
Performance Measures and Financial Controls 37 Legal Sponsor 38 Availability of Alternate Airports 39 Airport Information 40 Community Profile 41 Comparison to Other Communities in Region 47
Conclusions 53



### Section Page NumberSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 3 INTRODUCTORY LETTER OF SUPPORTSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 4 SUMMARY INFORMATION

– APPENDIX C

Small Community Air Service Development Program
Docket DOT

- OST

- 2011

- 0119



### A. Applicant Information

Not a Consortium Community now receives EAS subsidy
Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, date of Grant: ______ September 6
, 2006

_________ expiration date of G rant: __ August 8, 2009

___ ____


### B. Public/Private Partnership

Public:

1. Southwest Oregon Regional Airport
2. Coos County Airport District
3. City of Coos Bay
4. City of North Bend
5. Coos County
6. Curry County
7. Douglas County
8. South Coast Development Council , Inc.
9. CCD Business Development Corporation
10. International Port of Coos Bay
11. Bay Area Tourism and Promotions Bure au 12. Southwestern Oregon Community CollegeSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 5 Private:

1. Bandon Dunes Golf Resort
2. SkyWest Airlines
3. Bay Area Chamber of Commerce
4. Coos Bay Visitor Information Center
5. Bay Area Hospital
6. Friends of New and Sustainable Business (FONSI)
7. Bandon Chamber of Commerce 8. Coquille Chamber of Commerce
9. Lakeside Chamber of Commerce
10. Myrtle Point Chamber of Commerce
11. Reedsport/Winchester Bay Chamber of Commerce
12. CEDCO
13. Campbell Group (Menasha)
14. Sause Brothers



### C. Project Proposal

Marketing Upgrade Aircraft New Route
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee
Launch Ne w Carrier Start

- Up Cost Offset First Service Study Secure Additional Service Othe r (Specify)



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instru ment Approach
Localizer Other: MALSAR Approach LightingSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 6 E. Project Cost

1. Federal amount requested: $ 6 00,000
2. State cash financial contribution: $ 0
Local cash financial contribution:
3a. Airport cash funds: $ 0
3b. Non

- Airport cash funds: $ 18 0,000
3. Total local cash funds: $ 18 0,000
4. TOTAL CASH FUNDING: $ 78 0,000
In

- Kind Contribution:

a. Airport In

- Kind contribution: $ Various
b. Other In

- Kind contribution: $ Various
5. TOTAL IN

- KIND CONTRIBUTION: $ Undetermined
6. TOTAL PROJECT COST: $ 78 0,000



### F. In

- Kind Contributions

For funds in lines 7a (airport in

- kind contribution) and 7b (other in

- kind contribution), please describe the source(s) of fund(s) for each. Fee waivers: landing and terminal fees (airport) Advertising and marketing match money (media companies)



### G. Is Application Subject to Review by State Under Executive Order 12372 Process?
This application was made available to the State on ______. Program is subject to review, but has not been selected b y the State. Program is not covered.



### H. Is Applicant Delinquent on any Federal Debt?

NoSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 7 INTRODUCTION

T

he Southwest Oregon Regional Airport in North Bend/Coos Bay is the highest fare airport in the Pacific Northwest, with an average fare in 2010 of $205 each way

– 17% above the regional average of $175 each way. Fares have continued to increase as capacity is continually cut. Total capacity, in terms of available airline seats, is down 25% in the last two years at North Bend/Coos Bay

– a loss of an average of 50 departing seats every day. In just the last year, airlines have cut capacity by 7%.

Despite rising fares and capacity cuts, the Airport, and its ma jor partner, Bandon Dunes Golf Resort, were able to recruit the Oregon coast’s first ever jet service, which launched this summer on SkyWest/United Express to San Francisco. The jet has been well received, supporting load
factors around 80% in its first f ew weeks of service.

With this recent success in mind, the Airport is working to build on its momentum by recruiting Delta coded service to the Salt Lake City hub. The Airport
and the Resort have met with both Delta and SkyWest to pitch the idea

. As part of the overall project, Bandon Dunes has contributed $180,000, in cash

– 23% of the total project cost of $780,000. Additionally, SkyWest has written a letter of support in favor of this Grant proposal.

With strong, local financial support the project is already on solid footing. The Grant request of $600,000 will help move the project forward on a n accelerated timeline, with service launch being targeted for May of 2012.

This project is a key, not only to the future of the Southwest Oregon Regional Airport, but also to the region as a whole. As will be demonstrated in this application, the propos ed service will bring an influx of new tourism dollars to a region of the Pacific Northwest that has been largely unexplored. The service has the potential to boost the economy through increased tourism spending, increased business connectivity, and bette r access to the rest of the country. 

## “As part of the overall project,
Bandon Dunes has contributed

$180,000, in cash

– 23% of the total project cost...”Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 8 THE NORTH BEND/COOS BAY AIR SERVICE MARKET Current and Historical Air Service

In the summer of 2011, the Southwest Oregon Regional Airport and the communities of North Bend and Coos Bay are celebrating a win. For the first time ever, the Oregon coast has scheduled jet service. SkyWest/United Express added a third daily flight to San Francisco for this summer, with a 50

- seat regional jet. This incr eased capacity on the San Francisco route by a fifth

– and the route, which was originally supported by a Small Community Air Service Development Grant, continues to perform well, illustrating the value of the SCASD Program.

However, the news is not all good in North Bend/Coos Bay. Overall capacity continues to drop

– a trend that has continued since the beginning of 2008. Even with recent success, the market has lost an average of 50 departing seats per day since the summer of 2008. On average, the ai rcraft serving the market are smaller, and the flights are chronically delayed due to air traffic constraints at the Airport’s main hub
in San Francisco.

The Southwest Oregon Regional Airport is the only airport on
the Pacific Northwest coast with schedul ed service now that service has ended at both Astoria and Newport. The Airport remains one of the few in the country that has no other air service options within a two hour drive (see figure 1) . The region is isolated by it s topography

– with the Pacific Ocean to the west and the Pacific Coast Range of mountains to the
east.

The Southwest Oregon Regional Airport catchment area includes the area defined by the US Census Bureau as the North Bend/Coos Bay Metropolitan Statistical Area (MSA), along with othe r regions where the Airport is the nearest with commercial
air service

– including all areas of the Oregon coast from Florence in the north to the California border in the south (see f igure 1)

. This catchment area is home to 108,261 people as of the
late st US Census estimates

. There are no true competing airports within t wo hours of North 

### FIGURE 1: The Southwest Oregon Regional Airport Catchment AreaSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 9 Non-Stop Departures Seats Departures Seats Capacity Carrier Destination Per Day Per Day Per Day Per Day Change

United PDX 2 60 1 30 -50.0% SFO 3 90 3 110 22.2%

United Total 5 150 4 140 -6.7% North Bend/Coos Bay Total 5 150 4 140 -6.7% Aug-10 Aug-11 Bend/Coos Bay

. The Southwest Oregon Regional Airport catchment area covers more than half of the Oregon coast, but the Airport is classified by the FAA as a non

- hub due to its low passenger numbers.

All current air service at the Southwest Oregon Regiona l Airport is provided by SkyWest Airlines, doing business as United Express. SkyWest/United Express offers direct daily flights from North
Bend /Coos Bay to its hub in
San Francisco and its focus city in Portland , with three flights per weekday to San Francisco, and one fligh t per weekday to Portland (see
f igure 2)

. Three off the four daily flights are flown with 30

- seat Embraer 120 Brasilia turboprop aircraft, while one
round trip per day to and
from San Francisco is now
fl own with a 50

- seat Canadair Regional Jet (CRJ)

– the first scheduled jet to ever serve the Oregon coast.

The Portland route has been reduced, once again, in
2011. The route used to have as many as four flights per day in each direction when it was operat ed by Horizon Air in 2007 and 2008. Today, the route has just one departure in each direction per day, with just 30 seats offered in each direction per day (see figure 2). Capacity on the San Francisco route, meanwhile, has been increased, with 110 seats per day each way being offered in August of
2011.

United Express /SkyWest has been the Airport’s sole commercial carrier since October 2008. Just
three months after SkyWest entered the market with non

- stop service to San Francisco, Horizon
Air terminat ed its longstanding nonstop service from North Bend to Portland. SkyWest later filled 

### FIGURE 2 : Service at the Southwest Oregon Regional Airport August 2010 vs. August 2011; Source: Airline SchedulesSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 10 this gap to Portland, but its lack of true connectivity outside of a handful of one

- stop destinations on United has significantly impacted the pe rformance of the Portland route

– and is part of the reason service to Portland is only provided with a single flight per day each way.

A major reason for Horizon’s departure from the North Bend market was the retirement of its fleet of smaller, 37

- seat
, Dash 8

- 200 turboprops. Th is aircraft was perfectly suited for markets such as
North Bend /Coos Bay . The aircraft offered higher frequency with fewer seats per flight. Horizon’s
small market aircraft is now the 76

- seat Q400 turboprop

– which is not the right kind of aircraft for
t he more frequent service that is required in markets such as the South Coast.

Since Horizon left the market, capacity has been significantly reduced, and passengers have
tumbled. In 2010, the Airport averaged just 59.8 passengers per day each way on all service (see figure 3). 2010 passengers were down almost 6% from 2009, and they were down 38% from passengers seen in 2008, whe n almost 97 passengers per day each way flew in and out of the Airport.



### FIGURE 3 : O&D Passengers and Average One Way Fares at North Bend/Coos Bay 2001

– 2010; Source: US DOT Table OD1A

56,120 58,770 57,990 58,240 69,290 66,270 69,220 68,400

44,780 42,380 1,700 1,680 2,110 1,750 2,450 2,480 2,440 2,280

1,470 1,260 79.2 82.8 82.3 82.2 98.3 94.2 98.2 96.8

63.4 59.8

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Int'l Pax Domestic Pax

$135 $133 $147 $160 $161 $181 $178 $183

$154 $205Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 11 Additionally, in the last year, the average one way fare at the Southwest Oregon Regional Airport has jumped by $51 each way, or 33%, to an average of $205 (see figure 3). This is th e highest average fare in the North Bend/Coos Bay market in the last decade, and it has had the impact of suppressing local passengers and forcing them to make the more than two hour drive to Eugene to access air service.

A nother reason for the passenger drop in the market has been the loss of Horizon’s connectivity at the Alaska/Horizon hub in Portland. When service shifted to SkyWest/United Ex press, the frequency was cut from three flights per day in each direction to just one. At the same time, with the shift to a new airline, passengers on the South Coast lost access to the 40 one

- stop Alaska/Horizon destinations at Portland, trading that fo r the eight one

- stop destinations offered by United at Portland. This lack of connectivity made Portland service unattractive for all but local passengers

.

Although these
trends coincide
with a nationwide
downturn in
domestic air travel, macro

- level
economic forces are secondary in explaining the precipitous slide in
passenger demand at North Bend. The Airport’s
current passenger declines more fundamentally r elate to the current structure of its air service, specifically, the absence of competition among carriers , and limited, unreliable service . To bring passengers back, Southwest Oregon Regional Airport must have an additional competing carrier, one with

a s trong position in a market currently not served by the Airport. The best solution would be new
service from a United Express rival that could establish a direct link to a major eastbound hub that would not be affected by the same weather delays as San Fran cisco

. 

### FIGURE 4 : Flights, Seats, and Passengers per Day Each Way at OTH July 2008

– March 2011; Source: US DOT T100

194 198

166

134

116 110 111 117 120 120 118 120 117 120 120

94 90 88 84 89 89 88 90 132 147 148 148

97 88 87 83 89 88 134.3 144.7

121.9

82.0

57.3 54.5
43.3 49.6 56.0 61.5 64.0 68.2 74.3 81.4 79.0

57.0 47.7 46.5 41.0 45.4 51.6 51.8 55.9 75.8 82.4 93.1 93.0

59.5 55.3 47.5 40.6 43.3 49.7

0 50 100 150 200

Available SDEW Onboard PDEW Flights DEW 5.5 5.7

4.9

4.2 3.9 3.7 3.7 3.9 4.0 4.0 3.9 4.0 3.9 4.0 4.0

3.1 3.0 2.9 2.8 3.0 3.0 2.9 3.0 4.4 4.9 4.9 4.9

3.2 2.9 2.9 2.8 3.0 2.9Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 12 While some of the decline in North Bend/Coos Bay passengers can be attributed to increasing fares in the last year, it is clear the main reason for the declin e is the reduced capacity in the
market. Since summer of 2008
, airlines in the market have cut total available seats by 25% (see figure 4 on previous page ). Summer capacity in North Bend/Coos Bay, which is an admittedly highly seasonal market, is down by 50 departing seats per day, while winter capacity has been cut by 29 departing seats per day. In summer of 2008, airlines offered an average of 5.6 departing flights per day. By summer of 2010 that number had fallen to 4.9 departing flights per day. An d by winter of 2010/2011 airlines were offering just 2.9 departing flights per day in North Bend/Coos Bay.

While , as recently as 2008, Portland was the number one origin and destination market to and from North Bend/Coos Bay, it has now fallen to fourth, with just 3.3 passengers per day each way (see figure 5). This is an indication of just how unfavorable the recent Portland flight schedule is for North Bend/Coos Bay

- based traveler. The only northbound flight leaves after 8pm, while the only southbound flight leaves before 8am. The North Bend/Coos Bay

- based traveler must spend two nights in Portland for one day of business. This has caused more travelers headed north to drive, instead.

With better service to the south, through San Francisco, thanks to the support of a previous Small Community Air Service Development Grant, southern destinations have grown passengers to and from North Bend/Coos Bay. Los Angeles is now the Airport’s number one O&D market, with an average of 4.8 passengers per day each w ay (see figure 5). San Francisco ranks second, followed by San Diego. Las Vegas, Orange County, Phoenix, and Burbank have all grown in passengers since SFO service was launched. 

### FIGURE 5 : North Bend’s Top 20 O&D Passenger Markets CY2010; Source: US DOT Table OD1A

3,500 3,430 2,960 2,420 1,980 1,810 1,630 1,610 1,570 1,300 1,300
990
780
740
670
510
500
500
470
460 4.8
4.7
4.1
3.3
2.7
2.5
2.2
2.2
2.2
1.8
1.8
1.4
1.1
1.0
0.9
0.7
0.7
0.7
0.6
0.6

0 500 1,000 1,500 2,000 2,500 3,000 3,500 Los Angeles, CA San Francisco, CA San Diego, CA

Portland, OR Las Vegas, NV Washington, DC Chicago, IL Denver, CO Orange County, CA New York/Newark, NY Phoenix/Mesa, AZ Burbank, CA Seattle/Tacoma, WA
Boston, MA Houston, TX Philadelphia, PA Dallas/Ft Worth, TX Honolulu, HI Orlando/Sanford, FL Charlotte, NC Annual Passengers PDEWSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 13 Still, the challenge is that average fares to all but those southbound destinations are much above regional averages. The overall average fare at the Southwest Oregon Regional Airport climbed to $205 each way, or $410 roundtrip, in 2010 (see figure 6). In the top 25 O&D passenger markets,
all destinations to the east of the Rockies had average fares above the overall market average in 2010. For example, the average fare to Washington , DC
, was $282 each way, the average fare to Chicago was $295 each way, and the average fare to Dallas/Ft. Worth was $363 each way. These fares have the impact of suppressing and discouraging local air travel, and can be cited as part of the reason
passen gers in the market have declined by almost 40% in the last two years.

The North Bend/Coos Bay market cannot adequately be analyzed without looking a specific air service data related to the largest generator of air travel in the region

– the Bandon Dunes Golf Resort. The Resort has been named among the top ten golf destinations in the world. It draws more than 40,000 visitors a year from all 50 states and more than 25 foreign countries.

In preparing this application, the Airport and the Resort worked to gether to develop detailed air
service data for Resort visitors. This data shows an average of 42.7 passengers per day each way travel to and from Bandon by air (see figure 7). Just 18.1 passengers per day each way use current SkyWest service at the Sout hwest Oregon Regional Airport , meaning the Airport leaks 24.6 Bandon passengers per day each way, or 58%, to other airports in the region. 

### FIGURE 6 : Average One Way Fares in Top 20 O&D Markets CY2010; Source: US DOT Table OD1A

$161 $127

$154 $77 $135 $282 $295 $230 $162 $329 $139 $177 $105 $327 $311 $305 $363 $278 $262 $233

$0 $50 $100 $150 $200 $250 $300 $350 Los Angeles, CA San Francisco, CA San Diego, CA

Portland, OR Las Vegas, NV Washington, DC Chicago, IL Denver, CO Orange County, CA New York/Newark, NY Phoenix/Mesa, AZ Burbank, CA Seattle/Tacoma, WA
Boston, MA Houston, TX Philadelphia, PA Dallas/Ft Worth, TX Honolulu, HI Orlando/Sanford, FL Charlotte, NC Average One Way Fare : $ 205Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 14 Total PDEW Southwest Oregon Regional Airport
13,204 18.1
Coos Aviation, FBO
5,301 7.3 0 0.0 5,301 7.3
Ocean Air, FBO
2,600 3.6 0 0.0 2,600 3.6
Connoisseur's Shuttle Ground Transfers from EUG and PDX
10,079 13.8 8,567 11.7 1,512 2.1

13,204 18.1 8,567 11.7 9,413 12.9
31,184 42.7 Total Bandon-Related Passengers: Private Passengers, OTH: Commercial Passengers, Other Airports: Commercial Passengers, OTH: Commericial Aviation: Annual Passengers: Private Aviation: Commericial Aviation: Annual Passengers:

Private Aviation: Commericial Aviation:

Totals Annual Passengers: Private Aviation: 

### Bandon Dunes Air Passengers
Calendar Year 2010

Current SkyWest Service: The respective fixed base operators
at the Southwest Oregon Regional

Airport carry an average of 10.9 passengers per day each way to and from Bandon (see figure 7). At the same time, a ground shuttle service to airports in Eugene and
Portland carries an a verage of 27.6 passengers per day each way to
and from the Resort.

The Resort is committed to reducing this passenger leakage, and ensuring its clients can travel through the nearest airport, in order to increase the amount of time they have to play on th e courses. It is backing up that commitment with its cash sponsorship of this application, in the amount of $180,000

– 23% of the total project cost of this proposal.

The air service profile of the South Coast over the last three years underline s the vital importance of creating competition among carriers. Taken together, Horizon’s success in maintaining and growing its Portland route until 2008 and United Express’ success in expanding service to San Francisco over the past two years are proof tha t South Coast passengers will use their airport when the right carrier operates the right route. The falloff in passengers on the Portland route is an unfortunate and opposite corollary of this principle. When service is not timed properly, is not competi tive with other regional airports on fare, and does not offer sufficient connectivity, it will suppress and discourage the use of the local airport. 

### FIGURE 7 : Breakdown of Bandon Dunes Air Passengers CY2010; Source: Bandon Dunes Golf ResortSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 15 AIR SERVICE DEVELOPMENT EFFORTS

A key to previous air service development efforts at the Southwest Oregon Regional Airport has been the Small Community Air Service Development Program. The Airport won a SCASD Grant in 2006 in support of United Express/SkyWest ser vice between North Bend and San Francisco. This service is still in operation today, and is now self

- sustaining. In fact, the service was upgraded this summer to include the first ever regional jet service to the Oregon coast. Additionally, the Airport committed $400,000 in
local cash to recruit SkyWest/United Express to take
over the North Bend

– Portland
route after Horizon’s decision
to leave the market.

The Airport partners with a local business, Bandon Dunes Golf Resort, to split the cost of
an air service consulting firm.
This firm has undertaken
several market studies in the last year to determine areas of unmet demand, the best options for new service, and the potential for that new service to be successful. Additionally, t he Airport meets with a number of airlines each year, in one

- on

- one settings. Within the last year
, the Airport has met with Delta Air Lines, Frontier Airlines, Alaska Airlines, and SeaPort Airlines. Additionally, the Airport has hosted SkyWest executives in North Bend/Coos Bay on two occasions within the last year (see figure 8 )

.

SkyWest Airlines is a partner in this application. SkyWest would be the operator of the proposed service between North Bend/Coos Bay and Salt Lake City, operating under the Delta Connection brand. SkyWest has expressed support for the application, and the option of beginnin g service, should this Grant be awarded, in May of 2012. 

### FIGURE 8 : OTH Presentation to SkyWest Airlines March 2011; Source: Sixel Consulting GroupSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 16 AIR SERVICE NEEDS AND DEFICIENCIES

The Southwest Oregon Regional Airport has several air service deficiencies including a declining number of available seats and departures, service that is often operationally unreliable due to hub weather, and fares that are among the highest in the countr y. All of these deficiencies can be remedied by fulfilling a single need: service to a new hub on a second airline brand to bring new connectivity, seats, flights, and competition to the market.

Of all Oregon and Washington airports with current scheduled air service, the South Coast has the highest average one way fare as of calendar year 2010 (see figure 9 ). North Bend/Coos Bay’s average one way fare was $205, which is $30 each way, or 17%, higher than the Northwest region average of $175 each way.

The next closest airport, in terms of average one way fare, is Medford, where the non

- Allegiant
averag e is $192 each way (see figure 9 ). Medford’s average fare is s till 7% below the average at North Bend/Coos Bay. Moreover, the South Coast’s main competing airport

– Eugene

– has average fares of $177 each way as of 2010, which is much in line with the overall Northwest regional average. Eugene’s average fare is $28 less each way than the average in North Bend/Coos Bay, or 16% less on average.

Fare disparities are more pronounced in specific markets to the east of the Northwest where other Northwest markets have competitive air service, and where the Southwest Orego n Regional Airport does not. For example, the average fare in 2010 between North Bend/Coos Bay and New York Kennedy was $345 each way (see figure 10 ). The average fare from Medford to New York Kennedy was $232 each way

- $ 1 13 less each way, or 33 % less, than the fare from North Bend/Coos Bay. The fare from Eugene was even
lower in 2010

– just $215 each way, which is 38 % less than the North Bend/Coos Bay fare. 

### FIGURE 9 : Average One Way Fares in OR and WA Markets CY2 010; Source: US DOT Table OD1A

$205 $192 $184 $177 $176 $175 $172 $163 $163 $152 $149 $139 $103 $92 $62 $59

$0 $50 $100 $150 $200 North Bend, OR

Medford, OR Klamath Falls, OR Eugene, OR Seattle/Tacoma, WA Portland, OR Wenatchee, WA Walla Walla, WA

Redmond, OR Spokane, WA Pullman/Moscow, WA Moses Lake, WA Bellingham, WA

Pendleton, OR

Newport, OR Seattle Boeing Field, WA NW Average : $ 175Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 17 The same can be said about the fare to Boston. From North Bend/Coos Bay it was $296 each way in 2010, while it was $60 each way less from Medford and $86 each wa y less from Eugene (see figure 10 ). Both Chicago
O’Hare and Denver had smaller fare disparities in 2010, but the
fact remains that to the vast majority of markets to the east, North Bend/Coos Bay has significantly higher average fares than either Medford or Eugene.

The fare disparities put the Southwest Oregon Regional Airport at a natural disadvantage. I t should also be noted that, with far fewer airline
seats for sale in the South Coast market than either Medford or Eugene, the lower fare buckets sell out much more quickly on the South Coast than in either Medford or Eugene. It is difficult for
South Coast travelers to secure low fares, which forces them to two lane highways through the Coast Range mountains to access air service at other airports.

Part of the reason behind the recent rise in average fares in North Bend/Coos Bay is the continued loss of available seats. Total available seats are down by 25% in the last two years, while SkyWest is offering 7% fewer seats in the market in August 2011 than it did in August 2010.
Nowhere is the decline in available sea ts better illustrated than in the North Bend/Coos Bay

– Portland market.

When Horizon Air still served the Portland market, in the summer of 2008, it operated an average of 3.9 departures per day in each direction, offering an average of 146 seats per day each way (see figure 11 on next page ). When SkyWest took over in the fall of 2008, it quickly reduced capacity to roughly two departures per day and 60 seats per day each way, mainly due to the fact that the United Express brand has much less connectivit y in Portland than does the Alaska/Horizon brand. United offers very few one

- stop connect ions beyond Portland

– only eight (not counting Eugene and San Francisco

– which would be backtrack connections). For 

### FIGURE 10 : Average One Way Fares to Select Eastern Markets From OTH, MFR, and EUG; CY2010; Source: US DOT Table OD1A

$345 $296 $242 $200 $232 $236 $234 $176 $215 $210 $212 $168

$0 $50 $100 $150 $200 $250 $300 $350 $400

New York Kennedy Boston Chicago O'Hare Denver North Bend Medford EugeneSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 18 comparison, the route’s former operator, Horizon , has three times the number of connections in Portland, while United has more than 70 one

- sto p connections at San Francisco.

By winter of 2009/2010, SkyWest had pulled the Portland route down to a single daily flight, with 30 seats per day in each direction (see figure 11 ). The schedule is far from ideal, with a morning flight from Portland to North Bend/Coos Bay, and the retur n after 8pm. This makes it impossible for North Bend/Coos Bay

- based travelers to go to Portland for less than two nights at a time. This schedule has been another major reason the service has faltered.

A historical look back shows that Portland

- North Bend/Coos Bay service can be successful. Horizon was able to average a load factor of 74.2% for its last full year of service at the
South west Oregon Regional Airport (see figure 12 on next page ). Horizon adjusted its flying seasonally, which is often re quired in the North Bend/Coos Bay market due to its position on the coast as a tourist destination, but managed to support load factors above 70% in all but two months between the beginning of 2006 and its end of service in October of 2008. In all months



### FIGURE 11 : Flights, Seats and Passengers per Day Each Way, OTH

- PDX July 2008

– March 2011; Source: US DOT T100

146
138

107

74

56 54 54 58 60 60 59 60 58 60 60

34 30 29 29 29 30 30 30 53 58 59 59

30 29 30 28 30 29 108.8 107.7

83.8

41.3

20.0 19.3 15.7 19.4 19.5 23.6 23.8 26.9 29.1 33.8 31.8

12.9 7.0 8.0 6.1 8.3 9.6 10.1 10.7 20.5 21.9 28.3 32.2

12.4 9.8 8.3 6.8 9.0 9.9

0 20 40 60 80 100 120 140 160

Available SDEW Onboard PDEW Flights DEW 3.9
3.7

2.9

2.2

1.9 1.8 1.8 1.9 2.0 2.0 2.0 2.0 1.9 2.0 2.0

1.1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.8 1.9 2.0 2.0

1.0 1.0 1.0 0.9 1.0 1.0Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 19 Horizon offered at least three flights a day in each direction between Portland and North Bend/Coos Bay.

Portland was a good hub for reasons other than its connectivity on the Alaska/Horizon brand. Namely, it was not prone to the same kind of delays that are seen in San Francisco due to air traffic control holds during cloudy and foggy weather. Current air service at the South west Oregon Regional Airport has been plagued by operational delays. These delays have caused many of the Airport’s major users to consider sending their passengers to fly in and out of the Eugene Airport

– 106 miles a way over a range of mountains.

The Airport tracks the on

- time performance of its flights on a daily basis. In this proposal, it has
included data from the last three months available

– April, May, and June of 2011. In April, the morning departure to San Francisco was la te 30% of the time, while the afternoon San Francisco departure was late jus t 10% of the time (see figure 13 ). The late evening departure to Portland
was late 13% of the time. Total on

- time performance for April at North Bend/Coos Bay was 82%.



### FIGURE 12 : Flights, Seats and Passengers per Day Each Way, OTH

- PDX, on Horizon Air January 2006

– October 2008; Source: US DOT T100

109 106 104 102 106 147 176 179

147

118

102 100 101 104 105 106 129 176 178 181

152
140 140 139

113 113 113 116 141 149 146 138

107

36 70.3 75.9 82.0 87.6 87.9 116.2 128.1 138.7

116.2

96.9

83.7 77.7 70.6 73.2 79.4 85.2 104.8 135.6 133.6 139.9

115.3 110.7

98.4 91.2
79.6 82.6 88.5 90.6 104.8 113.8 108.8 108.2

84.0

26.2

0 50 100 150 200

Available SDEW Onboard PDEW Load Factor 64.8% 71.9% 78.5% 85.6% 83.1% 78.6% 72.5% 77.1% 78.3% 82.4% 82.2% 77.4% 69.6% 70.5% 75.5% 80.3% 81.2% 76.9% 75.1% 77.1% 76.1% 78.9% 70.3% 65.7% 70.7% 73.3% 78.5% 78.2% 74.4% 76.5% 74.7% 78.0% 78.3% 71.8%Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 20 That performance dropped to 79% on

- time in May. The morning San Francisco flight

– the most popular flight from a load factor standpoint

– continued to perform poorly in terms of on

- time performance due to ground

holds dictated by air traffic
control. It was
late 37% o f the time in May (see figure 14 ). The
afternoon San Francisco flight
was late 13% of the time in May,
while the Portland flight in the late evening
was also late
13% of the time.

On

- time performance dropped further in May, just
when the
weather in San
Francisco
should b e getting better. Altogether, just 75% of North Bend/Coos Bay flights operated on

- time in June of 2011. The morning San Francisco flight again was a trouble spot, with just 60% of those flights departing within 15 mi nutes of schedule (see figure 15 ). Th e early afternoon San Francisco departure had 30% of its flights delayed. The new regional jet flight performed better, as it operated in the late afternoon, with a 10% late mark. The Portland flight, meanwhile, was late
17% of the time in June. 

### FIGURE 13 : On

- Time Performance of North Bend Departures, April 2011; Source: Southwest Oregon Regional Airport

FIGURE 14 : On

- Time Performance of North Bend Departures, May 2011; Source: Southwest Oregon Regional AirportSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 21 Again, t hese delays are mostly due to weather in San Francisco, which has been socked in with
low clouds for much of the last few months , causing ATC backups for nearby markets. The Airport would
benefit from having another flight option through
another hub.
On the Portland route, the flight is often delayed
due to a late arriving aircraft.
The aircraft that operates between the Southwest Oregon Regional Airport and Portland arrives from San Francisco. When it arrives late, the Portland flight is delayed, as well

.

The region’s world

- ren owned golf club, Bandon Dunes
, accounts for an estimated 3 0% of the enplanements at the Southwest Oregon Regional Airport in the summer. Customers have
express ed extreme dissatisfaction with the San Francisco service . If ano ther alternative is not
created it is likely Bandon will change its current marketing stra tegy, bringing players into the area through the airport in Eugene, instead of using the Southwest Oregon Regional Airport.
Bandon Dunes spends hundreds of thousands in marketing of air service each year and is the major cash sponsor of this application.

With substantial seat cuts over the last two years, the South Coast ranks as one of
the most underserved markets in the
Pacific Northwest. As of calendar year
2010
, the South Coast had just 0.62 available departing airline seats per capita of its Metropolit an Statistical Area (MSA) (see f igu re 16 ). With less than one departing seat per resident per year, the 

### FIGURE 16 : Available Seats Per Capita in Northwest Markets CY2010; Source: US DOT T100, US Census Estimates FIGURE 15 : On

- Time Performance of North Bend Departures, June 2011; Source: Southwest Oregon Regional Airport

5.06 4.49 3.64 3.18 2.19 2.05 1.69 1.37 0.62

0 1 2 3 4 5 SEA GEG PDX BOI RDM MFR PSC EUG OTH 

### Northwest Average : 4

. 02Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 22 North Bend/Coos Bay MSA had fewer available departing seat s than Eugene, Eureka/Arcata, Pasco, Medford, and the other, larger airports in the region. The Pacific Northwest average number of available departing a irline seats per capita was 4.02 as of 2010

. The South Coast’s available departing seats per capita was 15% of that average

– meaning the South Coast is the
most underserved market in its surrounding region.

The same can be said about enplaned passengers per capita. The South Coast lags behind all
other Northwest cities of as calendar year 2010 (see figure 17 ). The Southwest Orego n Regional Airport saw just 0.36 passengers per resident of the North Bend/Coos Bay

MSA

– less than half the number of passengers per capita of the nearest airport, Eugene . The Northwest average number o f passengers per capita was 2.43 in
2010

– almost eight times the average in North B end/Coos Bay’s
MSA.

These indicators illustrate how the Southwest Oregon Regional Airport is relatively underserved when compared to corollary cities in its own region. The challenge for the Airport in recruiting additional service is the declining numbe r of passengers using the Airport. But, as illustrated in this proposal, passengers in the market have been suppressed by large se at cuts over the last two years and increasing fares

– which rank as the highest average fares in the Pacific
Northwest. 

### FIGURE 17 : Passengers per Capita in Northwest Markets CY2010; Source: US DOT T100, US Census Estimates

3.06 2.93 2.28 1.98 1.39 1.25 1.15 0.92 0.36

0.0 0.5 1.0 1.5 2.0 2.5 3.0 GEG SEA PDX BOI MFR RDM PSC EUG OTH 

### Northwest Average : 2

. 43Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 23 STRATEGIC PLAN FOR NEW AIR SERVICE

In order to increase the number of available seats and departures in North Bend/Coos Bay, offer more operationally reliable service, and bring down fares that are among the highest in the country, t he Southwest Oregon Regional Airport is working to secure SkyWest Airlines/Delta Connection service to the Salt Lake City hub (see map 2). The service is targeted to launch in May of 2012. This service is designed to provide better connectivity to the east of the market, as all of the South Coast’s current service goes directly north and south from the community.

The Airport has already secured a local cash match of $180,000, or 23% of the total project cost of $780,000, from Bandon Dunes Golf Resort in support of the new service. This cash match is new to the project, and was not part of the application made to the DOT last year. The federal portion of funding for the project,
under the Small Communit y Air Service Development Grant, is $600,000. Additionally the Airport has committed to fee waivers in support of the new non

- stop service, and additional marketing cash and in

- kind contributions to advertise the new service on the Oregon coast.

The Airport proposes to begin service with one daily flight on the route in each direction . It is likely the service will begin as summer seasonal, operating in the first season from t he middle of May of 2012 to the middle of September. If successful the Airport envisions the possibility of the service moving to year ‘round after the second season.

The route between North Bend/Coos Bay and Salt Lake City would cover 655 miles in a f light
time of one hour and 30 minutes, on average, assum ing an average groundspeed of 40 0 knots

on a Canadair CRJ200 regional jet aircraft seating 50 in an all

- economy layout (see figure 18 ). 

### MAP 2 : Proposed Route: North Bend

– Salt Lake CitySouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 24 Origin Destination Departs Arrives Block Time Equipment
OTH SLC 11:05 am 12:01p m 1:5 4 CRJ
SLC OTH 1:00p m 3:54 pm 1:5 4 CRJ

The proposed schedule aims to connect North Bend/Coos Bay to Delta’s largest connecting banks at Salt Lake City, in order to ensure optimum connection options for travelers heading beyond Salt Lake City (see figure 18 ). For the purposes of this schedule, flights are designed to
connect into the South Coast from the mid

- morning inbound bank into Salt Lake City. Flights
would th en depart the South Coast at midday, arriving in Salt Lake City in time to connect to the late afternoon bank. This schedule would not require an overnight aircraft at the Airport

– making it more attractive to the airline and making it easier for the air line to insert into its
schedule for the summer of 2012 . Moreover, this schedule would allow for inbound visitors to go directly to their hotels and meetings, and then, at normal check

- out time, go directly back to the Airport to depart.

The Southwest Oregon Regional Airport proposes that a relatively small portion of the cost of starting the new service be supported up front with federal funds from the Small Community Air Service Development Program. None of the Grant award will go to ward im mediate start

- up
costs

– those costs will be covered by other sources

.

The Southwest Oregon Regional Airport projects that all of the grant money be available to provide insurance in case SkyWest incurs a loss during the first two year s of operations. Wi th
demand for eastbound connecting service in the North Bend/Coos Bay market, and demand
for connectiv ity over a new airline network , the Airport projects the new flights will be profitable following the first season of service

.

If, for some unforeseen r eason, service is not commenced in a timely manner by SkyWest or
another Delta Connection carrier , the Southwest Oregon Regional Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help another c arrier launch a currently unserved route. Among the options that would be
considered is Alaska Airlines/ Horizon Air service to Seattle, San Jose, Los Angeles, or Sacramento; 

### FIGURE 18 : Proposed Flight Schedule: North Bend

– Salt Lake C itySouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 25 United Express service to Denver; US Airways service to Phoenix; or Frontier Airl ines service to
Denver.

Should these options, for an unforeseen reason, not be available for new service at the Southwest Oregon Regional Airport, the Airport will continue its discussi ons with all other carriers
that can provide additional seats to a hub not currently served.



### Route Specific Data: North Bend/Coos Bay

– Salt Lake City

Delta’s Salt Lake City hub would give South Coast travelers one

- stop access to a number of markets in which there is little current competition. Delta Connection service from North Bend to Salt Lake City would provide connections to 52 markets beyond SLC, from Los Angeles to Mexico City and from New York/Newark to Tokyo, Japan (see map 3 ). There are 17 North Bend/Coos Bay markets that
flow over Salt Lake City on Delta that
have no current

one

- stop service through either San
Francisco or
Portland on current United Express flights.

The North Bend/Coos Bay market currently produces 37.6 unstimulated origin and destination passengers per day each way (PDEW) to destinations that naturally connect over the Delta hub at Salt Lake City

– not ta king into account any stimulation from additional non

- stop service. A s of calendar year 2010 , the South Coast produced 2 7,490 total origin and destination passengers that would flow over Salt Lake City on 

### MAP 3 : One

- Stop Connections over Salt Lake City on Delta Air Lines July 2011; Source: Sixel Consulting Group Hub Builder SoftwareSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 26 Delta (see figure 19 ). In all, the South Coast

– Salt Lake City route has the potential to access
63 % of the current passengers flying in and out of the Southwest Oregon Regional Airport, itself, without taking int o account any passenger leakage. Leakage is significant

– especially to airports such as E ugene

– due to the lower fares, more frequent flights, and the lack of the same kind of weather delays found at those airports, especially to destinations to the east of the
market.

At the same time, the Delta Sal t Lake City hub could access 64 % of the current revenue generated at the Southwest Oregon Regional Airport (see figure 19)

. Currently, Delta markets
from the South Coast that flow over the Salt Lak e City hub generate more than $5.7 million in annual airline revenue, or $ 7,815 in revenue per day each way (RDEW) to and from the
Sou thwest Oregon Regional Airport

.

The Salt Lake City hub is especia lly well

- positioned to capture traffic traveling to destinations in
the intermountain W est, the S outhwest, the Midwest, and along the E ast C oast . The Salt Lake Hub can be expected to capture traffic in markets such as Los Angeles, which produces 8.8
passe ngers per day each way (PDEW) as of calendar year 2010; San Diego, which produces 4.1 PDEW; Washington

- Baltimore , which produces 2.9 PDEW; Las Vegas, which produces 2.7 PDEW; Denver, which produces 2.2 PDEW; and Chicago which also produces 2.2 PDEW in 2010 (see figure 20 ). 

### FIGURE 19 : North Bend O&D Passengers and Revenue Flowing over Salt Lake City on Delta CY2010; Source: Sixel Consulting Group Hub Builder Software

Salt Lake City 63% Other Hubs 37%

Salt Lake City 64% Other Hubs 36%

North Bend O&D Revenue $8,962,120 100% Revenue Flowing Over Salt Lake City $5,705,100 64% North Bend O&D Passengers 43,640 100% Passengers Flowing Over Salt Lake City 27,490 63%Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 27 It is likely new non

stop service to a hub
to the east of North Bend/Coos Bay
would stimulate the passenger market significantly, with a projected stimulation rate in its market of, at least, 100% to the
eastern markets that
would connect
better over Salt Lake City than over either
San Francisco or Portland. This gives the Airport reason to be optimistic that the
service can be self

sustaining in its
second full summer

season.

Should it launch
service between the
South Coast and Salt Lake City, Delta /SkyW est would be competing in markets that h ave current fares averaging $205 each way, which is the exact average one way fare in the North Bend/Coos Bay market as
of 2010 (see figure 21 on next page ). The average fare from North Bend/Coos Bay to markets

over the Delta hub at Salt Lake City is 17% higher than the average fare in the Northwest region
to those markets

– which is $175 each way.

It is likely that service over the Delta hub at Salt Lake City will have the impact of bringing down
fares in markets t o the east of the Rockies where the Delta brand would not only introduc e competitive pricing, but also provide a much less circuitous connection at a lower cost than a 

### FIGURE 20 : North Bend’s Top 20 O&D Passenger Markets Over Salt Lake City On Delta; CY2010; Source: Sixel Consulting Group Hub Builder Software

6,400 2,960 2,150 1,980 1,610 1,610 1,300 1,270
740
690
510
500
500
470
360
360
360
350
300
290 8.8
4.1
2.9
2.7
2.2
2.2
1.8
1.7
1.0
0.9
0.7
0.7
0.7
0.6
0.5
0.5
0.5
0.5
0.4
0.4

0 1,000 2,000 3,000 4,000 5,000 6,000 

### Los Angeles Basin San Diego Washington

- Baltimore Las Vegas
Denver Chicago

Phoenix
New York/Newark
Boston
Houston Philadelphia
Dallas/Ft. Worth
Honolulu
Orlando Kansas City Palm Springs
San Antonio Minneapolis/St. Paul
Austin
St. Louis Annual Passengers PDEWSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 28 backtrack
connection over
San Francisco or
Portland. Examples of
markets where fares might be expected to come
down would be Washington

Baltimore, where the current (2010)
average one way fare is $261; New York/Newark,
where the current (2010) average one way fare is $309; Boston,
where the current (2010) average one way fare is $296; and Dallas/Ft. Worth,
where the current (2010) average one way fare is $356 (see figure 21).

The best chance at fare rel ief in South Coast markets that flow over Salt Lake City on Delta is for an additional airline to offer competing service. Delta’s non

- stop eastbound service would go a long way toward providing enough competition to bring fares in line with those found i n other
markets in the region, such as Eugene

. 

### FIGURE 21 : North Bend’s Average One Way Fares Over Salt Lake City On Delta; CY2010; Source: Sixel Consulting Group Hub Builder Software

$155 $151 $261 $133 $200 $241 $136 $309 $296 $275 $281 $356 $244 $250 $201 $151 $194 $270 $256 $216

$0 $50 $100 $150 $200 $250 $300 $350 

### Los Angeles Basin San Diego Washington

- Baltimore Las Vegas
Denver Chicago

Phoenix
New York/Newark
Boston
Houston Philadelphia
Dallas/Ft. Worth
Honolulu
Orlando Kansas City Palm Springs
San Antonio Minneapolis/St. Paul
Austin
St. Louis 

### Average Over SLC : $ 205Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 29 It must be noted that service on SkyWest/Delta Connection to Salt Lake City is in line with the overarching regional tourism goals of the South Coast, including its major tourist attraction,
Bandon Dunes Golf Resort. Bandon reports that visitors from eastern markets tend to stay in the region and tend to spend more money at regional attractions.
Ba ndon’s own data shows that visitors from New York State stay longer at the resort than visitors from any other place

– an average of 6.3 room nights per visitor (see figure 22). Similarly, visitors from Colorado, Virginia, Vermont, Alabama, and New Jersey all stay, at least, an average of 3.7 room nights per visitor.

These travelers are much more valuable to the regional economy than travelers driving in for a day or two from nearby states. The best way for the region to access these travelers is to pr ovide better airline connectivity. The best way to provide better airline connectivity is to provide more one

- stop destinations through a new hub. The Delta Salt Lake City hub fits this need perfectly. 

### FIGURE 22 : Bandon Dunes’ Top Visitor Markets by Length of Stay CY2010; Source: Bandon Dunes Golf Resort

6.3 5.5 4.1 4.0 3.8 3.7 3.6 3.6 3.5 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.3 3.3 3.3 3.3 3.3 3.3 3.2 3.2 3.2 3.2 3.2 3.1 3.1 3.1

2 3 4 5 6 New York Colorado

Virginia Vermont Alabama New Jersey New Hampshire Mississippi Pennsylvania West Virginia Michigan Connecticut Georgia Manitoba Ohio Indiana Florida Quebec Louisiana Illinois Missouri Massachusetts North Carolina Nebraska Washington, DC Iowa Saskatchewan

Rhode Island Tennessee OntarioSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 30 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in September of 2011

. Once the award is announced, the Southwest Oregon Regional Airport will conduct additional airline me etings to secure a new service that is mutually beneficial

. Based on discussions the Airport has already had with the airline, it is optimistic service can begin in May of 2012

.

The first three milestones on the Airport's timeline are to execute the gr ant agreement with the Department of Transportation, meet with SkyWest and Delta to negotiate for service, and sign the minimum revenue guarantee agreement. Once service is announced and schedules are published, the Airport would begin marketing the new r oute and working with the new carrier to monitor advance bookings. The Airport will continue its marketing program and continue to
work with the new carrier to monitor the route once service begins. The Airport would submit grant status reports on a quar terly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is awarded. It is also possible that new service could slip to 2013 should an airline require additional risk mitigation, beyond that included in this proposal, from the community.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2011 Executive Grant Agreement with DOT October 2011 Meet With Prospective Airlines Oct/Nov 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline Dec 2011 - Jan 2012 Announce Service January 2012 Publish Schedule January 2012 Begin Marketing of New Route January 2012 Monitor Advance Bookings January - May 2012 Service Launch May 2012 MRG Available for Service May 2012 - October 2014 Monitor Route Performance May 2012 - October 2014 Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2014 Close Grant October 2014Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 31 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by SkyWest or
another Delta Connection carrier , the Southwest Oregon Regional Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help another carrier launch a currently unserved ro ute. Among the options that would be considered is Alaska Airlines/Horizon Air service to Seattle, San Jose, Los Angeles, or Sacramento; United Express service to Denver; US Airways service to Phoenix; or Frontier Airlines service to
Denver.

Should these options, for an unforeseen reason, not be available for new service at the Southwest Oregon Regional Airport, the Airport will continue its discussi ons with all other carriers
that can provide additional seats to a hub not currently served.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 32 PUBLIC/PRIVATE PARTNERSHIP

The Cities of Coos Bay and North Bend, Coos County, the Southwest Oregon Regional Airport
, and the Bandon Dunes Golf Resort consistently work together on air service development projects. Other local partners which work on a regular basis to strengthen the air service at the airport include the International Port of Coos Bay and the South Coast Development Council. All of these partners , along with others not specifically listed, will be working with the Airpo rt to promote and market this proposed new service. The Airport will manage and coordinate the marketing program.

Among the partners in this application are Bandon Dunes Golf Resort, which supports this effort
for additional air service in North Bend /Coo s Bay with the matching cash for this application , the South Coast Development Council, regional economic development corporations, and the Bay Area Chamber of Commerce. These partners will play vital roles in promoting new service and ensuring that servi ce is a success. All of the Airport’s partners are listed below, explaining their organization’s focus in the region, and including their role in the effort to retain current air service
and recruit additional air service.



### Bandon Dunes Golf Resort

Band on Dunes Golf Resort recognizes the importance of the Southwest Oregon Regional Airport to its ultimate success in bringing golfers from around the world to the Oregon coast. The Resort has pledged $180,000 in cash to this application

– which equates to 2 3% of the total project
cost.

The R esort features four distinctive, top

- 15 nationally ranked courses , built on a beautiful stretch of sand dunes perched 100 feet above the Pacific Ocean. Bandon Dunes and Pacific Dunes feature a dozen holes that run along the bluff overlooking 23 miles of sweeping, undisturbed shoreline. Bandon Trails begins on a massive dune, works its way through open meadows and upland forest, and then finishes in the dunes. Old Macdonald moves through dune s to ocean revealing breathtaki ng views throughout. The courses here weren't built as much as discovered. Among the coastal forest, dunes and gorse, lie golf holes that yield fresh rewards each time they

are played.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 33 SkyWest Airlines

SkyWest Airlines is a partner in this application. SkyWest would be the operator of the proposed service between North Bend/Coos Bay and Salt Lake City, operating under the Delta Connection brand. SkyWest has expressed support for the application, and the option of beginning service, should this Grant b e awarded, in May of 2012.



### The South Coast Development Council, Inc.

The South Coast Development Council, Inc. is a regional economic development organization, serving Coos, Curry and Western Douglas counties on the Oregon Coast. It is a 501(c)3 public/private partnership, which exists to enhance the economic vitality of the South Coast region. Its leadership and member partners, including the Southwest Oregon Regional Airport, Southwestern Oregon Community College, Bay Area Hospital, the Intern ational Port of Coos Bay, all Coos County communities and county government, work to build collaboration, consensus and partnerships with other economic development entities at the local, regional and state
levels.

Recently, the SCDC was successful in producing a visioning process for sustainable growth in the region, through an application to the American Institute of Architects Sustainable Design Assessment Team. This effort brought to Coos County and its communities, a team of specialists
in sustain able economic growth to the area for a three

- day, intense, county

- wide public meetings, culminating in a development plan to be delivered to the organization by the program in several weeks. Keenly identified by the team of nationally accomplished special ists for focus on improvement for the future sustainability of the region is Transportation; including enhanced air service for tourism and business travel in and out of OTH. Its importance to the future of this region is, according to the team, crucial t o the future of this area.



### Bay Area Chamber of Commerce

Founded in 1980, the Bay Area Chamber of Commerce was created from a merger of the Coos Bay and North Bend Chambers, and additionally serves the tourist/commercial fishing village of nearby Charlest on . With over 650 members, the Chamber's strength lies in the number and diversity of its membership. The activities of the BACC vary in response to the needs of the business community. Much of the Chamber's work is accomplished through the volunteeredSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 34 tim e and efforts of its members, primarily through committees, providing community leadership in the areas of economic development, government affairs, leadership development, natural resources, tourism and transportation. The Chamber also manages the City of Coos Bay Visitor Center, greeting over 36,000 visitors and responding to approximately 23,000 requests for information annually. Additionally, the BACC has just completed a new $1.2 million visitor’s
center.



### Oregon’s Adventure Coast

“Oregon’s Adventure Coast” is the name of the Visitor and Convention Bureau of North Bend, Coos Bay, and Charleston. The Group works to promote the “Bay Area” throughout the country. The Group spends much time and money publicizing the region’s outdoor activities, unique festivals, exciting events and spectacular scenery. The Group works with the Airport to spur additional inbound travel to the southern Oregon coast.



### The International Port of Coos Bay

With a deep appreciation for the beauty, diversity and resour ces of the magnificent region where it is located, the Oregon International Port of Coos Bay has a vision for the future and respect for the Bay Area’s past.

As Oregon’s Gateway, the port actively seeks ways to promote the use of Coos Bay’s deep

water por t to enhance the economy and quality of life in the region and strives to build a diversified, healthy and stable regional economy along southern Oregon’s coast.

As a major economic driver in the region, the Port has historically been proactive in the
tra nsportation issues which impact this isolated region of the south Oregon Coast. It has played a key role in the development of the Airport since its inception. Today, the Port has taken on the daunting task of acquiring and re

- establishing a closed rail service between Coquille and the northern cities of Oregon, in order to keep that leg of transportation

-- a key to economic vitality of the region's industries

-- functioning for the greater economic future of the region. They continue to be a strong ad vocate for the Airport and its vital role as a major transportation hub of cargo and carrier service.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 3 5 FUNDING PLAN

Revenue Guarantee

The Southwest Oregon Regional Airport proposes to make available $750 ,000 in funds for a revenue guarantee to SkyWest/Delta Connection , to cover start

- up losses that may occur during
the first t wo seasons of service . Subject to negotiation, payments will be made to the new
carrier at the end of each season when income derived from passengers and cargo is less tha n agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used.



### Marketing and Advertising

The Southwest Oregon Regional Airport proposes to spend at least $3 0,000 in funds , plus
substantial in

- kind from Bandon Dunes Golf Resort and other community partners, on marketing and advertising promotions in support of new service introductions. The goal is to increase ridership and usage of new service through targeted regional campaign s.



### In

- Kind Services

The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services.

**•** Bandon Dunes Golf Resort

**•** Bay Area Chamber of Commerce

**•** South Coast Development Council

**•** The International Port of Coos Bay

**•** Coos County Government

**•** Oregon’s Adventure Coast

**•** Coos County Airport District

**•** City of Coos Bay

**•** City of North Bend

**•** Southwestern Oregon Community College

**•** The Southern Oregon Marketing Team/SCDCSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 36 **•** Bay Area Hospital

**•** CEDC O

**•** Campbell Group (Menasha)

**•** Sause Brothers



### Additional Costs

As part of this program, the Southwest Oregon Regional Airport understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those
results back to the US DOT. In addition, the Airport expects to incur some expenses in the recruitment of the new carrier. The Airport will use other sources of funding to pay for these efforts, ensuring the DOT funding goes to the revenue guarantee and marketin g program

.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 37 PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of new service under this proposal will be based on three measurable variables: the increase in available seats in the market, the number of enplanements, and the average airfares charged in the affected city

- pairs. The first two measurements will include a monthly comparison
, once the program begins
, to past numbers. The second measurement will be derived from US DOT OD1A reports.

As the sponsor, the Southwest Oregon Re gional Airport and the Coos County Airport District will be the responsible parties for all fiscal matters and DOT reporting requirements. As a public entity, the DOT can be assured that proper financial controls are in place to guarantee that the DOT’s g rant will be used in accordance with any subsequent agreement. The Coos County Airport District understands that the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the DOT for reimbur sement, based on a percentage of the total grant request.

The Airport has developed this proposal as a one

- time grant. The advertising and marketing program will commence a few months before service starts, and last for at least two seasons

. The revenue guarantee program will also be in place for two seasons, with an additional twelve

month period available for negotiation. It is projected that the service on the route will be financially self

- sustaining by the second season of service.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 38 LEGAL SPONSOR

The Coos County Airport District is the legal sponsor responsible for administering the program. The Coos County Airport District is a government entity.

Coos County Airport District Southwest Oregon Regional Airport 1100 Airport Lane North Bend, Oregon 97459 Theresa Cook, AAE
, Executive Director 541.756.8531 theresa@flyoth.comSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 39 AVAILABILITY OF ALTERNATE AIRPORTS

The Southwest Oregon Regional Airport is relatively isolated. The nearest airport with scheduled airline service is Eugene, located 106 miles from North Bend. A drive to Eugene, which includes crossing the Coast Mountain Range in frequently foggy conditions, takes two hours and 15 minutes (see map 4 ). After Eugene, North Bend travelers are likely to use Portland International Airport, in spite of the long distance (235 miles) and significant time (about four hours and 15 minutes) required. Crescent City is a 139

- mile
drive that consumes about three hours, bu t offers significantly less
commercial air service than North Bend. Medford is a final adjacent airport, a 172

- mile drive that takes
about three and a half hours.

The net result is that the entire population of the South Coast lives
in what is already an economically

challenged region. The region is
under served in transportation opportunities that would, if supported by a second air carrier service to a major hub

-- such as Salt Lake City

-- be able to secure a greater economic, livable
, and sustainable fu ture. 

### MAP 4 : Locations of Alternate AirportsSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 40 AIRPORT INFORMATION

As the Oregon coast's only commercial a irport, the Southwest Oregon Regional Airport in North
Bend is the co nnection to the c oast. Formerly known as North Bend Municipal Airport, Southwest Oregon Regional Airport is operated by the Coos County Airport District and serves the e ntire county. The Southwest Oregon Regional Airport features full

- service air carriers, executive aircraft accommodations, and shipping facilities.

The airport has recently been inundated by private jets filled with golfers on their way to Bandon Dunes Golf Resort, located just miles from the airpo rt. It is estimated that as many as 50 percent of travelers flying into North Bend are headed to Bandon Dunes, wh ich features four nationally ranked golf courses. The airport opened a new $15 million dollar regional air terminal in July 2008, funded by the state and federal government s. A brand new air traffic
control t ower was commissioned for the airport in 2009.

Connect Oregon, a lottery

- bond

based funding that invests in rail, ports and marine, air and transit infrastructure in Oregon
, has aided the Coos County Airport District in constructing an ai r cargo handling area, portions of a new apron, and runway extension for passengers and freight at the North Bend Airport. The project makes the Southwest Oregon Regional Airport a more viable option for handling cargo. Enhancing freight capabilities at t he airport improves the modal connectivity between air, trucking, marine and potentially
, rail. This project not only reduces transportation costs, but also creates permanent jobs for Coos County residents. 

### FIGURE 23 : Airl ine Terminal Building, Southwest Oregon Regional AirportSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 41 COMMUNITY PROFILE

Coos Bay, with a population of 16,670, is the largest of the communities that comprise Oregon’s Bay Area. Founded in the 1850s, the city has been the commercial center of Oregon’s southern
coast. Coos Bay offers its residents a healthy lifestyle, from state

- of

- the

- art medi cal facilities and an expanding college, to endless outdoor adventures in its beautiful coastal environment. With
world

- class sporting opportunities, the largest expanse of
coastal sand dunes in North America , several museums, and local theaters, Coos Bay provides attractions for everyone. The Oregon Dunes Recreation Area attracts approximately 1.5 million visitors each year. Major events include the longest running community theater group in Oregon, Little Theatre on the Bay, which holds performances at th e historic Liberty Theater in North Bend. Every September is the Prefontaine Memorial Run. Musicians from across the country return yearly to play for South Coast residents in the Oregon Coast Music
Festival.

North Bend and Coos Bay flow seamlessly into one another. Coos Bay, the larger of the two, has become the commercial center of Oregon’s southern coast. These former lumber towns are experiencing an exciting revitalization. Storefronts are being renovated. Major expansion projects are planned or under way. And for the first time in its history, the area has direct access to natural gas. The Jordan Cove Energy Project is a proposed new, state

- of

- the

- art liquefied natural gas (LNG) import terminal that will be a catalyst for regional economic development through job creation and increased port use, as well as access to competitive sources of
energy.

Due to its proximity to the Pacific Ocean, the Coos Bay Port harbor is positioned to serve as a regional marine trade center to receive the projected doubling of Trans

- Pacific cargo between 2015 and 2020. The Oregon International Port of Coos Bay Port plans to develop marine industrial property on the North Spit of lower Coos Bay and expand marine terminal capacity in the
harbor to handle bulk commodities and i ntermodal containers. Potentially, it could become the third largest container port in the Pacific Northwest. Also, in the future, the Coos Bay waterfrontSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 42 will have a new set of condominiums, a $3 million historic maritime museum, and a large retail
center

.

South Coast Economic Overview

The City of Coos Bay is developing a vibrant, dynamic economy capitalizing on its waterfront and proximity to a geographically unique area. The City is poised as the region’s hub to support industrial growth. Employment i n natural

- resource industries, such as fishing and wood products, has decreased in recent years. Of
incre asing importance are retirement

related industries and tourism. Growth of
the retirement sector has added employment in retail trade and services,
espe cially health care. The City’s
commercial and industrial economic development is a balance of increasing the amount and occupancy of useable industrial land and maintaining a focus on services, hospitality, the retirement community, and related support serv ices.

Currently, forest products, tourism, fishing, and agriculture drive the Coos County economy. The service industry is replacing the former lumber

- driven economy. Tourists from around the world
are attracted to Bandon Dunes Golf Resort, north of Bandon and south of Coos Bay. Boating, dairy farming, Myrtlewood manufacturing, shipbuilding and repair, and agriculture specialty products, including cranberries, also play an important role. Untapped rich deposits of iron ore
and lead await deve lopment.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 43 Higher Education on the South Coast

Coos Bay’s Southwestern Oregon Community College is located within two miles
of the Pacific Ocean. Enrollment has increased from 815 total students in 1961 to around 10,000 students annually. Currently , Southwestern has about 60 full

- time faculty members, in addition to approximately 200 part

- time instructors. Thousands of guests are drawn to the college from the various cultural and athletic events. The College is also home to one of the finest culina ry institutes in the Pacific Northwest, the Oregon Coast Culinary Institute, which draws students from across the country.

The new Curry campus on the northern end of Brookings is currently being constructed. Scheduled to open in the fall of 2011, this ne w facility is a 27,000

- square

- feet, two

- story building equipped with wireless internet, advanced learning technology, and sited/designed to maximize sustainability options. Included in the classrooms are an allied health suite, science lab, and computer la b. A community wing, available for college classes, will provide a new and much needed venue for large public and private gatherings in Curry County.

As a partner in the South Coast’s economic development, Southwestern offers the regions’ employees, emplo yers, and industrial partners educational opportunities to meet their needs. Whether students enroll for a short course, a two

- year transfer, or a two

- year associate’s degree, they are preparing for a rewarding future and lifelong learning.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 44 Tourism on the South Coast

Growing in importance, t ourism is an integral part of the Coos Bay economic and cultural landscape. Visitors are drawn to Coos Bay and the surrounding area primarily for the variety of recreation opportunities offered by Oregon’ s uniquely beautiful southwestern coast, including fishing, golfing, hiking, cycling, and a host of other outdoor activities. Additionally, tourists come to indulge in the seafood, visit wineries, and visit a host of museums.

Bandon Dunes Golf Resort
Ban don Dunes is true to the spirit of
Scotland’s ancient links. Here, players
immerse themselves in the traditions of a timeless game and the grandeur of Oregon’s rugged coast. Sweeping,
untamed shores stretch for miles. Primeval grassy dunes roll to the sea

. Four distinctly different courses have been conceived in harmony with the
natural environment. All four courses are rated in the top 15 nationally by Golf Digest

. They combine with all the
essential elements to reveal a ne w golf experience every time they are play ed . The soul of the game resides here
, and draws more than a hundred thousand out of town visitors to the Bay Area of Oregon each year.

Coos Art Museum Coos Art Museum, establish ed in 1850, is the third oldest museum in Oregon. An art deco style building, the museum features an impressive permanent collection, as well as a Prefontaine Memorial gallery.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 45 Coos Historical and Maritime Museum
Visitors to the Coos Historical and Maritime Museum learn of the county's challenging and varied
terrain. A 20

- foot

- long photo collage timeline captures Coos Bay’s history. The county's diverse history is communicated through artifacts and images, including items associated with the Coos
and Coquille Indians, coal miners, loggers, ranchers, and shipbuilders. Local shipwrecks are chronicled for the period 1860 through1975.

Oregon Coast Historical Railway This museum has an outdoor display area and a mini

- museum with photos and railroad

memora bilia. The signature piece is a restored 1922 Baldwin steam locomotive that worked for many decades in the region’s forests. Also displayed is a diesel switcher locomotive used in a local sawmill, along with road building machines used in conjunction with railroad logging and a recently acquired Southern Pacific caboose.

Recreation

Wind

- sculpted sand dunes rising to 500 feet above sea level provide numerous recreational opportunities including off

- highway vehicle use, hiking, photography, fishing, canoei ng, horseback riding, and camping. The Oregon Dunes National Recreation Area extends for 40 miles along the Oregon Coast, including the Coos Bay Area. Formed by the ancient powers of wind, water, and time, these dunes are unique, the largest expanse of coa stal sand dunes in North
America.

Fishing Sport fishing, clamming, and crabbing are popular outdoor recreational activities and Oregon’s southern coast provides outstanding opportunities to land a great catch throughout the year.

Hiking Oregon’s southern coast offers a wealth of hiking trails. Here is a small sample of some of the locals’ favorite trails to be enjoyed.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 46 Bluebill Trail Located off Horsefall Road in the Oregon National Recreation Area, this trail loops around a seasonal lake, whic h is home to various bird species and aquatic animals. Bring your camera and binoculars to view the sights. A moderate trail, it offers easy access, but hikers will experience several surface changes from soft sands to packed trails.

Oregon Coast Trail
L

ocated off Cape Arago Highway, visitors are treated to four miles of trails winding along one of the most breathtaking coastlines in Oregon. This trail winds through coastal bluffs and offers amazing coastline views.

Empire Lakes at John Topits Park
John Topits Park is situated next to Southwestern Oregon Community College. The trail system located within is centered on the natural beauty of two lakes and dunes, offering four miles of paved walkways and another 1.5 miles of dirt paths. Along the trails are viewing areas of the lakes with benches to sit and enjoy the views and
wildlife.

Estuary Study Trails South Slough National Estuarine Research Reserve is located off Cape Arago Highway along Seven Devils Road. The South Slough watershed covers 19,000 acr es and offers hiking trails for all levels. The Estuary Study Trail begins in the uplands and follows Hidden Creek down the valley to the slough. This trail is perfect for wildlife observation.Southwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 47 COMPARISO N TO OTHER COMMUNITIES IN THE WEST

Outbound Percent of Airport CY 2008 CY 2009 CY 2010 Flights / Day CY 2010 08-10 09-10

1 Seattle/Tacoma, WA 147,221 136,307 134,199 367.7 33.3% -4.5% -1.5% 2 Portland, OR 88,016 80,751 79,730 218.4 19.8% -4.8% -1.3% 3 Boise, ID 25,763 22,071 21,001 57.5 5.2% -9.7% -4.8% 4 Spokane, WA 23,099 19,365 20,835 57.1 5.2% -5.0% 7.6% 5 Friday Harbor, WA 9,494 9,711 9,484 26.0 2.4% -0.1% -2.3% 6 Billings, MT 7,637 8,444 8,357 22.9 2.1% 4.6% -1.0% 7 Eugene, OR 8,295 7,817 7,620 20.9 1.9% -4.2% -2.5% 8 Bellingham, WA 6,853 6,884 7,248 19.9 1.8% 2.8% 5.3% 9 Medford, OR 8,874 7,312 6,900 18.9 1.7% -11.8% -5.6% 10 Bozeman, MT 6,574 6,181 6,620 18.1 1.6% 0.3% 7.1% 11 Eastsound, WA 5,964 6,025 6,143 16.8 1.5% 1.5% 2.0% 12 Pasco, WA 6,082 5,566 6,070 16.6 1.5% -0.1% 9.1% 13 Redmond, OR 7,147 5,854 5,766 15.8 1.4% -10.2% -1.5% 14 Missoula, MT 5,315 5,235 5,449 14.9 1.4% 1.3% 4.1% 15 Seattle Boeing Field, WA 4,802 6,045 5,276 14.5 1.3% 4.8% -12.7% 16 Seattle Lake Union SPB, WA 4,512 4,952 4,460 12.2 1.1% -0.6% -9.9% 17 Great Falls, MT 3,991 3,938 3,719 10.2 0.9% -3.5% -5.6% 18 Jackson, WY 3,935 3,807 3,448 9.4 0.9% -6.4% -9.4% 19 Kalispell, MT 4,045 3,344 3,370 9.2 0.8% -8.7% 0.8% 20 Anacortes, WA 3,362 3,361 3,362 9.2 0.8% 0.0% 0.0% 21 Idaho Falls, ID 3,907 3,715 3,292 9.0 0.8% -8.2% -11.4% 22 Gillette, WY 2,587 3,121 3,151 8.6 0.8% 10.4% 1.0% 23 Helena, MT 2,963 3,247 2,876 7.9 0.7% -1.5% -11.4% 24 Sun Valley, ID 3,454 2,659 2,553 7.0 0.6% -14.0% -4.0% 25 Casper, WY 3,075 2,485 2,265 6.2 0.6% -14.2% -8.9% 26 Lew iston, ID 2,406 2,034 2,141 5.9 0.5% -5.7% 5.3% 27 Cheyenne, WY 2,116 1,660 2,096 5.7 0.5% -0.5% 26.3% 28 Rock Springs, WY 1,951 2,008 2,078 5.7 0.5% 3.2% 3.5% 29 Port Angeles, WA 2,056 2,082 1,763 4.8 0.4% -7.4% -15.3% 30 Tw in Falls, ID 1,843 1,602 1,701 4.7 0.4% -3.9% 6.2% 31 Sheridan, WY 1,311 1,218 1,645 4.5 0.4% 12.0% 35.1% 32 Pullman/Moscow , WA 1,662 1,447 1,524 4.2 0.4% -4.2% 5.3% 33 Westsound, WA 1,509 1,653 1,450 4.0 0.4% -2.0% -12.3% 34 Pocatello, ID 1,664 1,442 1,402 3.8 0.3% -8.2% -2.8% 35 Kenmore, WA 1,278 1,466 1,393 3.8 0.3% 4.4% -5.0% 36 Laramie, WY 1,397 977 1,351 3.7 0.3% -1.7% 38.3% 37 Klamath Falls, OR 1,313 1,420 1,344 3.7 0.3% 1.2% -5.4% 38 Roche Harbor, WA 1,354 1,553 1,315 3.6 0.3% -1.5% -15.3% 39 North Bend, OR 1,455 1,352 1,307 3.6 0.3% -5.2% -3.3% 40 Cody, WY 1,175 1,025 1,261 3.5 0.3% 3.6% 23.0% 41 Bellevue, WA 1,320 1,308 1,260 3.5 0.3% -2.3% -3.7% 42 Riverton, WY 1,296 1,000 1,187 3.3 0.3% -4.3% 18.7% 43 Yakima, WA 1,896 1,399 1,178 3.2 0.3% -21.2% -15.8% 44 Pendleton, OR 953 1,086 1,057 2.9 0.3% 5.3% -2.7% 45 Wenatchee, WA 1,460 1,139 1,005 2.8 0.2% -17.0% -11.8% 46 Sidney, MT 395 1,165 932 2.6 0.2% 53.6% -20.0% 47 New port, OR 2 575 894 2.4 0.2% 2014.2% 55.5% 48 Lopez Island, WA 927 961 818 2.2 0.2% -6.1% -14.9% 49 Butte, MT 1,160 688 792 2.2 0.2% -17.4% 15.1% 50 Lew istow n, MT 382 558 766 2.1 0.2% 41.6% 37.3%

Total of Above 431,248 401,015 396,854 1,087.3 98.4% -4.1% -1.0%
Total Flights Completed 438,062 409,651 403,223 1,104.7 100.0% -4.1% -1.6% Rank Avg. Ann. Change 

### FIGURE 24: Top 50 Western Region Airports Ranked by Domestic Flights CY2010, Source: US DOT T100 DataSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 48 Outbound Percent of Airport CY 2008 CY 2009 CY 2010 Seats / Day CY 2010 08-10 09-10

1 Seattle/Tacoma, WA 18,790,716 17,676,803 17,251,062 47,263 48.0% -4.2% -2.4% 2 Portland, OR 9,015,092 8,170,960 8,151,615 22,333 22.7% -4.9% -0.2% 3 Spokane, WA 2,295,774 1,983,695 2,105,924 5,770 5.9% -4.2% 6.2% 4 Boise, ID 2,408,842 2,097,076 2,011,644 5,511 5.6% -8.6% -4.1% 5 Billings, MT 581,220 566,717 529,668 1,451 1.5% -4.5% -6.5% 6 Eugene, OR 509,273 484,562 482,574 1,322 1.3% -2.7% -0.4% 7 Bellingham, WA 371,385 405,161 469,029 1,285 1.3% 12.4% 15.8% 8 Bozeman, MT 516,114 459,255 466,451 1,278 1.3% -4.9% 1.6% 9 Pasco, WA 356,146 378,969 414,146 1,135 1.2% 7.8% 9.3% 10 Medford, OR 445,119 428,085 412,572 1,130 1.1% -3.7% -3.6% 11 Jackson, WY 433,463 411,177 402,261 1,102 1.1% -3.7% -2.2% 12 Missoula, MT 380,977 356,154 368,196 1,009 1.0% -1.7% 3.4% 13 Redmond, OR 363,100 341,607 347,476 952 1.0% -2.2% 1.7% 14 Great Falls, MT 260,097 274,361 255,714 701 0.7% -0.8% -6.8% 15 Kalispell, MT 260,161 221,845 226,886 622 0.6% -6.6% 2.3% 16 Idaho Falls, ID 225,760 215,778 194,017 532 0.5% -7.3% -10.1% 17 Helena, MT 167,938 195,026 176,522 484 0.5% 2.5% -9.5% 18 Lew iston, ID 142,515 140,848 147,027 403 0.4% 1.6% 4.4% 19 Casper, WY 137,474 121,859 122,575 336 0.3% -5.6% 0.6% 20 Pullman/Moscow , WA 110,129 110,850 116,513 319 0.3% 2.9% 5.1% 21 Sun Valley, ID 131,882 94,355 96,680 265 0.3% -14.4% 2.5% 22 Yakima, WA 115,269 108,509 91,645 251 0.3% -10.8% -15.5% 23 Gillette, WY 76,677 81,308 77,472 212 0.2% 0.5% -4.7% 24 Wenatchee, WA 68,590 86,356 76,304 209 0.2% 5.5% -11.6% 25 Friday Harbor, WA 61,814 63,146 61,630 169 0.2% -0.1% -2.4% 26 Rock Springs, WY 54,438 61,707 60,996 167 0.2% 5.9% -1.2% 27 Tw in Falls, ID 56,766 49,025 60,445 166 0.2% 3.2% 23.3% 28 Seattle Boeing Field, WA 58,004 62,078 57,258 157 0.2% -0.6% -7.8% 29 Cheyenne, WY 50,363 45,120 53,788 147 0.1% 3.3% 19.2% 30 Walla Walla, WA 46,097 76,001 49,783 136 0.1% 3.9% -34.5% 31 Cody, WY 47,846 43,217 43,501 119 0.1% -4.6% 0.7% 32 Pocatello, ID 52,616 45,038 42,910 118 0.1% -9.7% -4.7% 33 Klamath Falls, OR 45,282 42,720 40,732 112 0.1% -5.2% -4.7% 34 Butte, MT 70,830 35,200 40,100 110 0.1% -24.8% 13.9% 35 Sheridan, WY 35,557 34,626 39,532 108 0.1% 5.4% 14.2% 36 North Bend, OR 50,526 40,469 39,118 107 0.1% -12.0% -3.3% 37 Eastsound, WA 33,396 33,753 34,806 95 0.1% 2.1% 3.1% 38 Seattle Lake Union SPB, WA 35,015 36,769 33,792 93 0.1% -1.8% -8.1% 39 Riverton, WY 32,368 29,043 30,473 83 0.1% -3.0% 4.9% 40 Laramie, WY 27,834 20,852 27,745 76 0.1% -0.2% 33.1% 41 Sidney, MT 8,842 29,384 23,681 65 0.1% 63.7% -19.4% 42 Anacortes, WA 16,758 16,758 16,764 46 0.0% 0.0% 0.0% 43 Port Angeles, WA 18,357 18,341 15,444 42 0.0% -8.3% -15.8% 44 Lew istow n, MT 7,258 10,602 14,554 40 0.0% 41.6% 37.3% 45 Worland, WY 12,217 21,394 13,756 38 0.0% 6.1% -35.7% 46 Glasgow , MT 2,147 15,105 12,927 35 0.0% 145.4% -14.4% 47 Miles City, MT 5,985 16,389 12,901 35 0.0% 46.8% -21.3% 48 Kenmore, WA 10,008 11,252 10,858 30 0.0% 4.2% -3.5% 49 Havre, MT 2,166 8,436 10,532 29 0.0% 120.5% 24.8% 50 Westsound, WA 10,905 11,780 10,526 29 0.0% -1.8% -10.6%

Total of Above 39,017,108 36,289,521 35,852,525 98,226 99.7% -4.1% -1.2%

Total Seats Available 39,154,489 36,407,495 35,943,713 98,476 100.0% -4.2% -1.3% Rank Avg. Ann. Change 

### FIGURE 25: Top 50 Western Region Airports Ranked by Domestic Seats Available CY2010, Source: US DOT T100 DataSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 49 Outbound Percent of Airport CY 2008 CY 2009 CY 2010 Paxs / Day CY 2010 08-10 09-10

1 Seattle/Tacoma, WA 14,616,854 14,155,834 14,174,129 38,833 50.5% -1.5% 0.1% 2 Portland, OR 6,852,309 6,290,549 6,446,407 17,661 22.9% -3.0% 2.5% 3 Spokane, WA 1,695,993 1,501,900 1,565,395 4,289 5.6% -3.9% 4.2% 4 Boise, ID 1,673,488 1,495,863 1,476,662 4,046 5.3% -6.1% -1.3% 5 Bellingham, WA 278,503 326,996 398,752 1,092 1.4% 19.7% 21.9% 6 Billings, MT 424,635 399,739 391,060 1,071 1.4% -4.0% -2.2% 7 Eugene, OR 351,396 340,973 370,235 1,014 1.3% 2.6% 8.6% 8 Bozeman, MT 365,319 344,243 365,187 1,001 1.3% 0.0% 6.1% 9 Pasco, WA 249,309 270,226 313,762 860 1.1% 12.2% 16.1% 10 Medford, OR 297,850 302,210 312,465 856 1.1% 2.4% 3.4% 11 Jackson, WY 304,512 284,132 296,692 813 1.1% -1.3% 4.4% 12 Missoula, MT 289,391 281,837 290,535 796 1.0% 0.2% 3.1% 13 Redmond, OR 242,626 227,123 233,534 640 0.8% -1.9% 2.8% 14 Great Falls, MT 172,398 181,942 177,430 486 0.6% 1.4% -2.5% 15 Kalispell, MT 186,712 160,412 175,458 481 0.6% -3.1% 9.4% 16 Idaho Falls, ID 146,648 143,675 145,900 400 0.5% -0.3% 1.5% 17 Helena, MT 104,068 117,523 115,021 315 0.4% 5.1% -2.1% 18 Casper, WY 75,240 74,426 84,816 232 0.3% 6.2% 14.0% 19 Lew iston, ID 78,814 80,829 80,641 221 0.3% 1.2% -0.2% 20 Pullman/Moscow , WA 59,088 60,976 62,995 173 0.2% 3.3% 3.3% 21 Sun Valley, ID 69,314 53,584 57,536 158 0.2% -8.9% 7.4% 22 Yakima, WA 71,487 60,830 54,825 150 0.2% -12.4% -9.9% 23 Wenatchee, WA 48,100 51,440 46,932 129 0.2% -1.2% -8.8% 24 Tw in Falls, ID 30,659 29,322 37,294 102 0.1% 10.3% 27.2% 25 Gillette, WY 34,177 31,766 34,027 93 0.1% -0.2% 7.1% 26 Seattle Boeing Field, WA 33,770 32,678 32,666 89 0.1% -1.6% 0.0% 27 Walla Walla, WA 30,542 35,379 29,292 80 0.1% -2.1% -17.2% 28 Cody, WY 25,847 26,605 28,489 78 0.1% 5.0% 7.1% 29 Rock Springs, WY 26,649 25,117 27,488 75 0.1% 1.6% 9.4% 30 Butte, MT 39,113 25,166 25,410 70 0.1% -19.4% 1.0% 31 North Bend, OR 35,501 22,333 23,050 63 0.1% -19.4% 3.2% 32 Cheyenne, WY 21,045 18,953 22,553 62 0.1% 3.5% 19.0% 33 Klamath Falls, OR 26,982 20,093 21,575 59 0.1% -10.6% 7.4% 34 Pocatello, ID 26,601 22,543 21,281 58 0.1% -10.6% -5.6% 35 Friday Harbor, WA 21,710 21,518 20,569 56 0.1% -2.7% -4.4% 36 Seattle Lake Union SPB, WA 21,624 22,271 19,391 53 0.1% -5.3% -12.9% 37 Sheridan, WY 18,702 15,769 17,798 49 0.1% -2.4% 12.9% 38 Riverton, WY 17,332 14,371 15,193 42 0.1% -6.4% 5.7% 39 Laramie, WY 13,765 9,381 12,310 34 0.0% -5.4% 31.2% 40 Port Angeles, WA 12,138 12,809 10,193 28 0.0% -8.4% -20.4% 41 Eastsound, WA 7,062 5,676 6,213 17 0.0% -6.2% 9.5% 42 Roche Harbor, WA 5,691 6,562 5,413 15 0.0% -2.5% -17.5% 43 Westsound, WA 5,231 5,633 4,939 14 0.0% -2.8% -12.3% 44 Pendleton, OR 15,801 3,998 4,632 13 0.0% -45.9% 15.9% 45 West Yellow stone, MT 4,180 4,318 4,433 12 0.0% 3.0% 2.7% 46 Sidney, MT 1,329 2,885 3,605 10 0.0% 64.7% 25.0% 47 Worland, WY 3,666 4,648 3,179 9 0.0% -6.9% -31.6% 48 New port, OR 3 2,225 2,856 8 0.0% 2985.4% 28.4% 49 Lopez Island, WA 3,156 3,344 2,851 8 0.0% -5.0% -14.7% 50 Kenmore, WA 2,714 3,406 2,744 8 0.0% 0.6% -19.4%

Total of Above 29,139,044 27,636,031 28,075,813 76,920 99.9% -1.8% 1.6%
Total Onboard Passengers 29,181,442 27,661,608 28,093,644 76,969 100.0% -1.9% 1.6% Avg. Ann. Change Rank 

### FIGURE 26: Top 50 Western Region Airports Ranked by Domestic Onboard Passengers CY2010, Source: US DOT T100 DataSouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 50 PDEW Percent of Airport CY 2008 CY 2009 CY 2010 CY 2010 CY 2010 08-10 09-10

1 Seattle/Tacoma, WA 10,354,990 9,918,300 9,972,880 27,323 46.1% -1.9% 0.6% 2 Portland, OR 5,467,020 5,055,210 5,111,120 14,003 23.6% -3.3% 1.1% 3 Spokane, WA 1,568,980 1,386,280 1,433,040 3,926 6.6% -4.4% 3.4% 4 Boise, ID 1,401,650 1,247,610 1,252,190 3,431 5.8% -5.5% 0.4% 5 Bellingham, WA 261,920 314,950 387,330 1,061 1.8% 21.6% 23.0% 6 Billings, MT 393,730 367,710 357,220 979 1.7% -4.7% -2.9% 7 Bozeman, MT 325,010 316,240 332,350 911 1.5% 1.1% 5.1% 8 Eugene, OR 308,360 297,900 323,550 886 1.5% 2.4% 8.6% 9 Pasco, WA 220,150 234,420 283,400 776 1.3% 13.5% 20.9% 10 Medford, OR 260,940 259,000 279,190 765 1.3% 3.4% 7.8% 11 Missoula, MT 266,300 260,430 268,470 736 1.2% 0.4% 3.1% 12 Jackson, WY 278,640 261,350 260,370 713 1.2% -3.3% -0.4% 13 Redmond, OR 211,140 196,560 197,740 542 0.9% -3.2% 0.6% 14 Kalispell, MT 173,640 150,330 163,460 448 0.8% -3.0% 8.7% 15 Great Falls, MT 134,390 135,070 144,450 396 0.7% 3.7% 6.9% 16 Idaho Falls, ID 137,170 128,080 134,940 370 0.6% -0.8% 5.4% 17 Helena, MT 79,450 82,450 89,060 244 0.4% 5.9% 8.0% 18 Casper, WY 68,540 67,000 75,320 206 0.3% 4.8% 12.4% 19 Lew iston, ID 58,350 56,600 54,980 151 0.3% -2.9% -2.9% 20 Sun Valley, ID 60,460 47,000 48,310 132 0.2% -10.6% 2.8% 21 Yakima, WA 61,450 51,220 46,240 127 0.2% -13.3% -9.7% 22 Wenatchee, WA 42,730 45,240 41,650 114 0.2% -1.3% -7.9% 23 Pullman/Moscow , WA 27,610 28,650 31,480 86 0.1% 6.8% 9.9% 24 Tw in Falls, ID 24,760 23,300 27,910 76 0.1% 6.2% 19.8% 25 Gillette, WY 26,840 25,470 27,310 75 0.1% 0.9% 7.2% 26 Walla Walla, WA 27,470 30,360 27,110 74 0.1% -0.7% -10.7% 27 Seattle Boeing Field, WA 25,490 28,150 26,260 72 0.1% 1.5% -6.7% 28 Cody, WY 23,320 25,220 24,450 67 0.1% 2.4% -3.1% 29 Butte, MT 26,850 22,230 23,830 65 0.1% -5.8% 7.2% 30 North Bend, OR 34,860 23,470 22,510 62 0.1% -19.6% -4.1% 31 Rock Springs, WY 24,700 17,610 19,910 55 0.1% -10.2% 13.1% 32 Klamath Falls, OR 26,170 20,940 19,880 54 0.1% -12.8% -5.1% 33 Cheyenne, WY 14,400 10,390 17,440 48 0.1% 10.1% 67.9% 34 Pocatello, ID 22,210 19,350 16,040 44 0.1% -15.0% -17.1% 35 Sheridan, WY 17,210 13,680 14,830 41 0.1% -7.2% 8.4% 36 Riverton, WY 16,470 13,740 14,660 40 0.1% -5.7% 6.7% 37 Friday Harbor, WA 13,410 12,620 12,080 33 0.1% -5.1% -4.3% 38 Seattle Lake Union SPB, WA 11,690 12,650 10,390 28 0.0% -5.7% -17.9% 39 Port Angeles, WA 11,980 12,740 10,130 28 0.0% -8.0% -20.5% 40 Laramie, WY 9,140 7,350 7,780 21 0.0% -7.7% 5.9% 41 Pendleton, OR 6,670 3,830 4,900 13 0.0% -14.3% 27.9% 42 Eastsound, WA 4,060 3,380 3,720 10 0.0% -4.3% 10.1% 43 Sidney, MT 1,320 2,740 3,650 10 0.0% 66.3% 33.2% 44 West Yellow stone, MT 4,320 3,970 3,260 9 0.0% -13.1% -17.9% 45 New port, OR 0 1,990 3,010 8 0.0% 100.0% 51.3% 46 Worland, WY 2,980 2,630 2,880 8 0.0% -1.7% 9.5% 47 Roche Harbor, WA 2,840 3,220 2,510 7 0.0% -6.0% -22.0% 48 Westsound, WA 1,790 1,880 1,730 5 0.0% -1.7% -8.0% 49 Glasgow , MT 310 1,130 1,610 4 0.0% 127.9% 42.5% 50 Moses Lake, WA 0 2,610 1,430 4 0.0% 100.0% -45.2%
Top 50 Airports 22,543,880 21,254,250 21,639,960 59,288 100.0% -2.0% 1.8%
Total Regional Passengers 22,570,220 21,264,430 21,648,580 59,311 100.0% -2.1% 1.8% Avg. Ann. Change Rank 

### FIGURE 27: Top 50 Western Region Airports Ranked by Domestic O&D Passengers CY2010, Source: US DOT Table DB1ASouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 51 RDEW Percent of Airport CY 2008 CY 2009 CY 2010 CY 2010 CY 2010 08-10 09-10

1 Seattle/Tacoma, WA $1,678,175 $1,448,859 $1,623,302 $4,447 46.4% -1.6% 12.0% 2 Portland, OR $848,117 $743,848 $824,678 $2,259 23.6% -1.4% 10.9% 3 Spokane, WA $217,781 $186,117 $202,177 $554 5.8% -3.6% 8.6% 4 Boise, ID $192,100 $164,787 $181,047 $496 5.2% -2.9% 9.9% 5 Bozeman, MT $69,890 $57,912 $63,984 $175 1.8% -4.3% 10.5% 6 Billings, MT $72,775 $61,028 $63,513 $174 1.8% -6.6% 4.1% 7 Jackson, WY $61,126 $47,198 $54,530 $149 1.6% -5.5% 15.5% 8 Eugene, OR $55,198 $47,884 $52,545 $144 1.5% -2.4% 9.7% 9 Pasco, WA $46,410 $44,480 $50,345 $138 1.4% 4.2% 13.2% 10 Missoula, MT $53,673 $47,982 $49,643 $136 1.4% -3.8% 3.5% 11 Medford, OR $46,084 $39,067 $43,401 $119 1.2% -3.0% 11.1% 12 Bellingham, WA $32,920 $31,983 $39,099 $107 1.1% 9.0% 22.2% 13 Kalispell, MT $38,001 $29,339 $33,937 $93 1.0% -5.5% 15.7% 14 Great Falls, MT $30,457 $26,644 $28,895 $79 0.8% -2.6% 8.4% 15 Redmond, OR $32,317 $26,372 $28,837 $79 0.8% -5.5% 9.3% 16 Idaho Falls, ID $28,753 $25,027 $27,530 $75 0.8% -2.2% 10.0% 17 Helena, MT $20,076 $18,239 $19,630 $54 0.6% -1.1% 7.6% 18 Casper, WY $17,967 $14,158 $15,348 $42 0.4% -7.6% 8.4% 19 Lew iston, ID $10,067 $9,444 $9,726 $27 0.3% -1.7% 3.0% 20 Sun Valley, ID $12,414 $8,795 $9,049 $25 0.3% -14.6% 2.9% 21 Yakima, WA $11,174 $8,259 $7,901 $22 0.2% -15.9% -4.3% 22 Wenatchee, WA $6,828 $6,645 $6,423 $18 0.2% -3.0% -3.3% 23 Butte, MT $7,404 $5,745 $6,251 $17 0.2% -8.1% 8.8% 24 Gillette, WY $6,603 $5,368 $5,798 $16 0.2% -6.3% 8.0% 25 Cody, WY $5,594 $4,880 $4,774 $13 0.1% -7.6% -2.2% 26 North Bend, OR $6,110 $3,536 $4,303 $12 0.1% -16.1% 21.7% 27 Pullman/Moscow , WA $4,085 $4,004 $4,261 $12 0.1% 2.1% 6.4% 28 Rock Springs, WY $5,930 $3,771 $4,206 $12 0.1% -15.8% 11.5% 29 Walla Walla, WA $4,615 $4,325 $3,952 $11 0.1% -7.5% -8.6% 30 Klamath Falls, OR $4,801 $3,174 $3,488 $10 0.1% -14.8% 9.9% 31 Cheyenne, WY $2,996 $2,059 $3,355 $9 0.1% 5.8% 63.0% 32 Tw in Falls, ID $3,363 $2,856 $3,275 $9 0.1% -1.3% 14.7% 33 Riverton, WY $3,659 $2,787 $3,219 $9 0.1% -6.2% 15.5% 34 Sheridan, WY $3,779 $2,811 $3,074 $8 0.1% -9.8% 9.4% 35 Pocatello, ID $3,512 $2,361 $2,437 $7 0.1% -16.7% 3.2% 36 Seattle Boeing Field, WA $1,287 $1,606 $1,539 $4 0.0% 9.4% -4.2% 37 Laramie, WY $1,805 $1,325 $1,500 $4 0.0% -8.8% 13.2% 38 West Yellow stone, MT $705 $669 $732 $2 0.0% 1.9% 9.5% 39 Sidney, MT $234 $482 $716 $2 0.0% 74.9% 48.4% 40 Friday Harbor, WA $609 $596 $571 $2 0.0% -3.2% -4.1% 41 Worland, WY $528 $534 $551 $2 0.0% 2.1% 3.1% 42 Seattle Lake Union SPB, WA $616 $641 $548 $2 0.0% -5.7% -14.6% 43 Port Angeles, WA $557 $592 $471 $1 0.0% -8.0% -20.5% 44 Pendleton, OR $1,101 $354 $452 $1 0.0% -35.9% 27.9% 45 Miles City, MT $24 $146 $239 $1 0.0% 217.0% 64.2% 46 Glasgow , MT $28 $148 $218 $1 0.0% 180.9% 47.0% 47 Moses Lake, WA $0 $303 $193 $1 0.0% 100.0% -36.3% 48 New port, OR $0 $124 $188 $1 0.0% 100.0% 51.3% 49 Havre, MT $19 $119 $178 $0 0.0% 202.6% 49.3% 50 Eastsound, WA $165 $150 $172 $0 0.0% 1.9% 14.2%
Top 50 Airports $3,652,435 $3,149,533 $3,496,201 $4,789 100.0% -2.2% 11.0%
Total Regional Revenue $3,655,860 $3,150,430 $3,496,920 $4,790 100.0% -2.2% 11.0% Avg. Ann. Change Rank 

### FIGURE 28: Top 50 Western Region Airports Ranked by Domestic O&D Revenue CY2010, Source: US DOT Table DB1ASouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 52 Itinerary Average Airport CY 2008 CY 2009 CY 2010 Mileage Yield 08-10 09-10

1 Butte, MT $304.31 $285.23 $284.91 1,393 20.46¢ -3.2% -0.1% 2 West Yellow stone, MT $174.43 $180.83 $245.77 1,244 19.75¢ 18.7% 35.9% 3 Helena, MT $280.27 $250.06 $244.80 1,358 18.02¢ -6.5% -2.1% 4 Jackson, WY $252.40 $209.76 $244.29 1,500 16.29¢ -1.6% 16.5% 5 Kalispell, MT $259.20 $231.33 $241.90 1,443 16.76¢ -3.4% 4.6% 6 Riverton, WY $224.49 $205.08 $222.17 886 25.08¢ -0.5% 8.3% 7 Idaho Falls, ID $230.03 $215.25 $221.57 1,115 19.87¢ -1.9% 2.9% 8 Gillette, WY $250.67 $216.44 $219.37 1,122 19.55¢ -6.5% 1.4% 9 Bozeman, MT $249.01 $207.69 $217.33 1,358 16.00¢ -6.6% 4.6% 10 Rock Springs, WY $242.34 $217.49 $217.14 1,067 20.35¢ -5.3% -0.2% 11 Great Falls, MT $245.76 $213.17 $214.13 1,259 17.01¢ -6.7% 0.5% 12 Casper, WY $279.04 $224.16 $213.37 1,098 19.43¢ -12.6% -4.8% 13 Cody, WY $265.13 $214.04 $210.14 1,292 16.27¢ -11.0% -1.8% 14 Sheridan, WY $221.65 $206.82 $208.66 904 23.08¢ -3.0% 0.9% 15 Sun Valley, ID $234.85 $213.63 $208.21 1,132 18.39¢ -5.8% -2.5% 16 North Bend, OR $187.21 $160.01 $206.29 1,527 13.51¢ 5.0% 28.9% 17 Missoula, MT $224.40 $206.10 $204.64 1,283 15.95¢ -4.5% -0.7% 18 Cheyenne, WY $209.98 $200.27 $197.26 929 21.23¢ -3.1% -1.5% 19 Sidney, MT $177.28 $175.95 $196.07 818 23.97¢ 5.2% 11.4% 20 Laramie, WY $199.24 $180.73 $195.60 686 28.50¢ -0.9% 8.2% 21 Worland, WY $179.03 $203.83 $192.58 730 26.37¢ 3.7% -5.5% 22 Lew iston, ID $187.02 $180.53 $192.18 1,131 16.99¢ 1.4% 6.5% 23 Billings, MT $198.54 $176.50 $189.90 1,199 15.84¢ -2.2% 7.6% 24 Pasco, WA $227.87 $205.08 $189.81 1,300 14.60¢ -8.7% -7.4% 25 Yakima, WA $197.71 $175.39 $186.69 1,131 16.51¢ -2.8% 6.4% 26 Klamath Falls, OR $197.55 $158.85 $183.97 1,554 11.84¢ -3.5% 15.8% 27 Eugene, OR $199.79 $178.08 $177.46 1,286 13.80¢ -5.8% -0.3% 28 Seattle/Tacoma, WA $176.03 $157.06 $175.98 1,507 11.68¢ 0.0% 12.0% 29 Portland, OR $168.40 $159.11 $175.07 1,407 12.44¢ 2.0% 10.0% 30 Wenatchee, WA $175.48 $163.11 $172.21 1,017 16.94¢ -0.9% 5.6% 31 Medford, OR $197.96 $164.99 $168.95 1,204 14.03¢ -7.6% 2.4% 32 Pocatello, ID $169.39 $133.84 $167.40 1,104 15.16¢ -0.6% 25.1% 33 Walla Walla, WA $184.38 $159.49 $162.95 1,022 15.94¢ -6.0% 2.2% 34 Redmond, OR $173.21 $149.92 $162.69 1,188 13.70¢ -3.1% 8.5% 35 Boise, ID $146.15 $141.17 $154.36 996 15.50¢ 2.8% 9.3% 36 Spokane, WA $148.53 $144.24 $151.82 1,116 13.60¢ 1.1% 5.3% 37 Pullman/Moscow , WA $161.65 $154.46 $149.47 811 18.44¢ -3.8% -3.2% 38 Moses Lake, WA $0.00 $118.43 $138.94 1,185 11.72¢ 100.0% 17.3% 39 Glasgow , MT $89.20 $131.30 $135.50 440 30.83¢ 23.3% 3.2% 40 Tw in Falls, ID $146.36 $132.72 $124.20 969 12.82¢ -7.9% -6.4% 41 Bellingham, WA $131.64 $104.82 $103.29 1,023 10.10¢ -11.4% -1.5% 42 Pendleton, OR $175.82 $92.30 $92.30 182 50.71¢ -27.5% 0.0% 43 New port, OR $0.00 $62.30 $62.30 100 62.30¢ 100.0% 0.0% 44 Seattle Boeing Field, WA $50.48 $57.05 $58.60 95 61.51¢ 7.7% 2.7% 45 Westsound, WA $54.47 $54.51 $54.42 84 64.88¢ 0.0% -0.2% 46 Roche Harbor, WA $54.23 $54.26 $54.05 83 64.98¢ -0.2% -0.4% 47 Seattle Lake Union SPB, WA $52.73 $50.70 $52.75 81 65.43¢ 0.0% 4.0% 48 Friday Harbor, WA $45.44 $47.20 $47.26 71 66.46¢ 2.0% 0.1% 49 Port Angeles, WA $46.50 $46.50 $46.50 69 67.39¢ 0.0% 0.0% 50 Eastsound, WA $40.75 $44.50 $46.18 68 67.83¢ 6.5% 3.8%
Average Regional Fare $175.95 $159.95 $174.78 1,375 12.71¢ -0.3% 9.3% Avg. Ann. Change Rank 

### FIGURE 29: Top 50 Western Region Airports Ranked by Domestic Fares CY2010, Source: US DOT Table DB1ASouthwest Oregon Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 53 CONCLUSIONS

Despite being the only airport on the Pacific Northwest coast with scheduled airline service, the Southwest Oregon Regional Airport has seen huge cuts in service in the last two years. Total capacity has been slashed by an average of 50 departing seats pe r day, or 25%. At the same time, the average one way fare in the market has shot up to $205

– the highest average in the Pacific Northwest states of Oregon and Washington. The North Bend/Coos Bay average fare is 17% higher than the Northwest average, and 15% higher than the average fare at Eugene.

The good news in the market is that in the s ummer of 2011, for the first time ever, the Oregon coast has scheduled jet service. SkyWest/United Express added a third daily flight to San Francisco for this summer, with a 50

- seat regional jet. This increased capacity on the San Francisco route by a f ifth

– and the route, which was originally supported by a Small Community Air Service Development Grant, continues to perform well, illustrating the potential for success of the SCASD Program in North Bend/Coos Bay.

T

he Southwest Oregon Regional Airport is working to secure SkyWest Airlines/Delta Connection service to the Salt Lake City hub. The service is targeted to launch in May of 2012. SkyWest has written a letter of support for this application.

The Airport has already secured a local cash match of $180,000, or 23% of the total project cost of $780,000, from Bandon Dunes Golf Resort in support of the new service. This cash match is new to the project, and was not part of the application made to the DOT last year. The federal portion of funding for the project, under the Small Communit y Air Service Development Grant, is $600,000. Additionally the Airport has committed to fee waivers in support of the new non

- stop service, and additional marketing cash and in

- kind contributions to advertise the n ew service on the Oregon coast.

It is unlikely the project will be able to go forward without Grant support. The Airport has proven these kinds of Grants work in the market to build sustainable service. This project is another change for DOT success, du e to the large amount of local funding already in place. 

## “It is unlikely the project will go forward without Grant support. The Airport has proven these kinds of Grants work in the
market to build sustainable service.”