APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0133 

SUMMARY INFORMATION1

All applicants must submit this Summary Information schedule, as the application 

coversheet, a completed standard form SF424 and the full application proposal on 

www.grants.gov. 

For your preparation convenience, this Summary Information schedule is located at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL 

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER 

(EIN) OR TAX ID.

Legal Sponsor Name: 

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING: 

1.____________________________________________________ 

2.____________________________________________________ 

3.____________________________________________________ 

4.____________________________________________________ 

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE 

APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY 

SEEKING SERVICE).

1. 2.

3. 4.

 

1 Note that the Summary Information does not count against the 20-page limit of the SCASDP application.
DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY 

THE FEDERAL AVIATION ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO”, PLEASE 

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN 

APPLICATION UNDER PART 139 IS PENDING.) 

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________ 

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air 

Service Development Program Grant

If previous recipient: Provide year of grant(s):_______________________________; and, 

the text of the grant agreement section(s) setting forth the scope of the grant project:

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) 

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.
G. PROJECT PROPOSAL:

 1. GRANT GOALS: (CHECK ALL THAT APPLY) 

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services2

Other (explain below)

2. FINANCIAL TOOLS TO BE USED: (CHECK ALL THAT APPLY) 

Marketing (including Advertising): promotion of the air service to the public 

Start-up Cost Offset: offsetting expenses to assist an air service provider in setting up a 

new station and starting new service (for example, ticket counter reconfiguration)

Revenue Guarantee: an agreement with an air service provider setting forth a minimum 

guaranteed profit margin, a portion of which is eligible for reimbursement by the 

community 

Recruitment of Air Carrier: air service development activities to recruit new air service, 

including expenses for airport marketers to meet with air service providers to make the 

case for new air service

Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service; 

counted as in-kind contributions only 

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp (below 

wing) services provided by third party ground handlers 

Travel Bank: travel pledges, or deposited monetary funds, from participating parties for 

the purchase of air travel on an air carrier, with defined procedures for the subsequent use 

of the pledges or the deposited funds; counted as in-kind contributions only 

 

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing 

plan, study, air carrier proposal, etc.
Other (explain below) 

______________________________________________________________________________ 

______________________________________________________________________________ 

H. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

Full ILS Outer/Middle Marker Published Instrument Approach 

Localizer Other (specify)

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds

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

4 TOTAL CASH FUNDING (1+2+3)

In-Kind contribution

5a Airport In-Kind contribution**

5b Other In-Kind contribution**

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) 

6 TOTAL PROJECT COST (4+5)

J. IN-KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please 

describe the source(s) of fund(s) and the value ($) of each.
K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE 

ORDER 12372 PROCESS? 

a. This application was made available to the State under the Executive Order 12372 

Process for review on (date) _____________. 

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

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

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT?

(IF “YES”, PROVIDE EXPLANATION) 

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________ 

APPLICATION CHECKLIST

INCLUDED? ITEM

For Immediate Action

Determine Eligibility

New Grants.gov users must register with www.grants.gov.

Existing Grants.gov users must verify existing www.grants.gov account has not expired 

and the Authorized Organization Representative (AOR) is current.

For Submission by 5:00 PM EDT on July 31, 2014

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate 

existing grant in order to be eligible for selection in FY2014 

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

Summary Information schedule complete and used as cover sheet (see Appendix B)

Application of up to 20 one-sided pages (excluding any letters from the 

community or an air carrier showing support for the application), to include:

• A description of the community’s air service needs or deficiencies.

• A strategic plan for meeting those needs under the Small Community Program.

• A detailed description of the funding necessary for implementation of the 

community's project. 

• An explanation of how the proposed project differs from any previous projects 

for which the community received SCASDP funds (if applicable). 

• Designation of a legal sponsor responsible for administering the program.

• A motion for confidential treatment (if applicable) – see Appendix D below.
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 1

REDDING MUNICIPAL AIRPORT

SECTION 1

APPLICATION HIGHLIGHTS

This Small Community Air Service Development 

Program (SCASDP) grant application for Redding 

Municipal Airport (RDD) meets the criteria of Docket 

DOT-OST-2014-0113. The City of Redding is 

requesting $450,000 in federal assistance to 

implement a $500,000 airline assistance program to 

retain access to the air transportation system by 

preserving critically important commercial air service 

in the Redding market.

AIR SERVICE ISSUES

The number one air service issue in the Redding 

market is the reduction of SkyWest Airlines’ Embraer 

Brasilia 120 (EMB-120) service. Recently, there have 

also been several EMB-120 service cancellations 

including cessation of service at Klamath Falls, 

Oregon, and Modesto, California, and the elimination 

of the EMB-120 aircraft at Portland, OR. Reduction of 

smaller turboprop service is a well-known industry 

issue and is likely to continue. The solution for RDD is 

a regional jet upgrade to RDD’s existing hub service, 

San Francisco International Airport (SFO).

SkyWest (United Express) is the sole service provider

at RDD with three daily roundtrips to SFO, operated 

with the 30-seat EMB-120 turboprop aircraft. If 

SkyWest continues to reduce their EMB-120 service, 

RDD is at serious risk of losing access to the national 

air transportation system. The impact of the loss of air 

service would likely be severe, with loss of local jobs 

and a negative impact on the local economy. This 

application is intended to mitigate the potential loss of 

air service and its negative impact on the economy.

By upgrading existing EMB-120 turboprop service to 

the 50-seat Canadair Regional Jet 200 (CRJ-200), 

RDD will benefit from increased seat capacity and 

maintain access to the air transportation network even 

if frequency is reduced. Compared to other markets of 

similar geography and population, RDD is significantly 

underserved. A SCASDP grant award will assist RDD 

with securing a regional jet upgrade which will retain 

air service and increase seat capacity, making RDD

more comparable to other communities.

An estimated 87 percent of air travelers are forced to 

drive to a distant alternate airport such as 

Sacramento or San Francisco because of high 

airfares, a reduction in service and significant delays 

and cancellations, which should be relieved

somewhat with operation of the larger jet aircraft.

Given California’s traffic congestion, driving to 

alternate airports can take an excessively long time

with one-way drive times exceeding 2.5 hours. The 

lack of convenient access to and from the Redding 

community would hinder commerce and impede 

economic vitality in the community by increasing the 

cost of doing business.

The Bureau of Transportation Statistics (BTS) 

database for calendar year 2013 shows RDD with an 

average gross roundtrip fare of $570, 49 percent

higher than the national average of $382.

STRATEGIC PLAN

With the current trends of EMB-120 service

reductions, immediate action is needed to maintain 

local air service. Without immediate action the 

Redding community is in danger of losing access 

to the national air transportation system.

This section addresses: 

 Project goals

 Description of the Strategic Plan

 Highlights of the grant application
SECTION 1

APPLICATION HIGHLIGHTS

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 2

REDDING MUNICIPAL AIRPORT

The Strategic Plan to preserve RDD’s air service is to 

upgrade the existing EMB-120 aircraft to the CRJ-200 

aircraft. To support the upgrade and share in the 

increased financial risk to SkyWest, the public-private 

partnership is proposing a revenue guarantee and 

marketing campaign to support the improved service. 

The plan is contingent on getting assistance with the 

funding of the revenue guarantee through 

the SCASDP. SkyWest Airlines supports the 

Strategic Plan outlined herein and has provided a 

letter of support for the City of Redding’s

application (Appendix A).

COMMUNITY COST CONTRIBUTION

To support this air service initiative, non-airport 

revenue sources will fund 10 percent ($50,000 cash) 

of the proposed $500,000 Strategic Plan. This is a 

strong commitment by the Redding community to 

support SkyWest.

PUBLIC-PRIVATE PARTNERSHIP

The City of Redding and the Economic Development 

Corporation of Shasta County have formed a publicprivate partnership in support of this application. This 

is a long standing partnership that has successfully 

worked together for several years on air service 

development initiatives. 

MATERIAL BENEFITS

Commercial air service at RDD benefits a broad 

section of the traveling public including businesses, 

educational institutions, healthcare providers and 

leisure travelers. RDD serves a local population in 

excess of 284,000 in the primary catchment area, and 

has the potential to serve a secondary catchment 

area with 176,000 residents to the south. 

The Redding community includes a vibrant business 

community with growing companies such as CH2M 

Hill, Southern Aluminum Finishing and 3M and 

supports educational institutions such as Shasta 

College and Simpson University. All are at risk of 

increased cost of conducting business if local air 

service is not preserved.

An institution of particular note is the Bethel School of 

Supernatural Ministry. Bethel has more than 2,000 

students enrolled annually with almost 40 percent 

international students. Their Post-Graduate 

Leadership Development program hosts about 12,000 

people per year at events/conventions in Redding and 

is responsible for over two million travel miles 

every year. Local access to air service is a critically 

important issue to Bethel.

Redding, the “Gateway to a World Renown 

Recreation Area”, has many scenic attractions that 

attract thousands of visitors each year including: Lake 

Shasta, Mt. Shasta, Lassen National Park, and 

Whiskeytown National Recreation Area. Clearly, RDD

air service and the access it provides to the air 

transportation system is highly valued and needed by 

the community. The plan to preserve local air service 

will meet the goals of the SCASDP to benefit air 

travelers by helping to sustain air service at RDD and 

retain access to the national air transportation system.

ABILITY TO IMPLEMENT PROJECT

The air service partnership listed above and other 

local businesses in the Redding community fully 

support this plan and have the ability to implement 

this project as proposed. Key members of the air 

service partnership have been particularly active 

since Alaska Airlines left the market and have 

developed a good working relationship with the 

management of SkyWest. The air service partnership 

has met regularly with SkyWest management and 

though SkyWest can provide no assurances that they 

will initiate a service change, SkyWest supports this 

grant application and proposed Strategic Plan. 

The Redding community has a well-thought-out 

achievable Strategic Plan strong desire and a 

business and population base to support this air 

service initiative to maintain local air service. In short, 

all of the pieces are in place to implement the 

proposed plan.
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 3

REDDING MUNICIPAL AIRPORT

SECTION 2

AIR SERVICE ENVIRONMENT

To identify community air service needs, it is 

important to understand the characteristics of the 

community. This section shows the broad segment of 

the traveling public, including businesses, educational 

institutions, and other enterprises that benefit from 

local air service.

SERVING NORTHERN CALIFORNIA

The RDD catchment area, located in the northern tip 

of California’s Central Valley, encompasses Shasta 

County and portions of Siskiyou, Trinity, Tehama, and 

Plumas Counties. Commercial air service at RDD 

benefits a population in the primary airport catchment 

area exceeding 284,000. The catchment area 

includes Red Bluff, Anderson, Cottonwood, Redding, 

and rural communities in the mountainous areas to 

the north, east, and west. The secondary catchment 

area to the south has a population of almost 176,000. 

While the secondary catchment area includes areas 

currently served by Chico Municipal Airport, Chico is 

also in danger of losing commercial air service as, 

similar to RDD, they are served solely with the EMB120 aircraft.

The combined catchment area has a population of 

460,000. Exhibit 2.1 provides a map of RDD’s 

primary catchment area (shown in yellow) and 

secondary catchment area (shown in purple). Within a 

75-mile radius the population is almost 485,000. 

This section addresses: 

Description of the Redding community in relation 

to air service to demonstrate the benefit of the 

Strategic Plan to a broad segment of the 

traveling public.

Note: RDD primary catchment area identified in yellow by zip code. Secondary catchment area identified in purple.

EXHIBIT 2.1 RDD CATCHMENT AREA
SECTION 2

AIR SERVICE ENVIRONMENT

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 4

REDDING MUNICIPAL AIRPORT

PROXIMITY TO ALTERNATE AIRPORT

RDD has the ability to serve a large portion of 

northern California; however, due to air service 

reductions, much of the catchment area is being 

forced to drive to Sacramento International Airport 

(SMF) or San Francisco International Airport (SFO) to 

access air service. If RDD loses commercial air 

service, all travelers will be forced to make 

these drives and incur the increased time 

and expense. 

Although there are 379,000 origin and destination 

passengers per year in the RDD catchment area, 

RDD only serves 13 percent of those passengers.

Sixty-seven percent use SMF, 11 percent use SFO 

and 9 percent use other airports including airports at 

Medford, Oakland, Reno, San Jose, Chico and 

Eureka/Arcata (source: RDD True Market Estimate, 

year ended June 30, 2013).

These alternate airports require excessive drive times 

from the Redding community. Table 2.1 provides 

drive miles, times, and airport hub size for alternate 

airports. The closest airport is Chico which currently 

has similar turboprop service as RDD and may also 

be in danger of losing service. The closest medium 

hub airport is over two hours to the south while the 

closet large hub airports is a drive of almost 3.5 

hours. Drive times do not include the impact of major 

traffic congestion which can increase the drive 

times significantly.

BUSINESS COMMUNITY NEEDS LOCAL 

AIR SERVICE

Local air service at RDD is valued by all sectors of the 

Redding community, including government, business, 

education, healthcare, and tourism. The region is 

becoming more economically diverse with many 

businesses and institutions reliant on air service for

connections to customers, suppliers, consultants and 

facilities located in other parts of the state or 

the country. The local Redding economy is fueled by 

business in-migration from southern California. Losing 

local air service and the access it provides to the air 

transportation network via SFO threatens to dampen 

that economic growth.

Redding’s top employers are provided in Table 2.2. 

These employers and others need local access to air 

service to compete in the global marketplace.

One example of the top employers is CH2M Hill. 

CH2M Hill is a large architectural and engineering firm 

TABLE 2.1 DRIVE TIME TO ALTERNATE AIRPORTS

AIRPORT MILES

ESTIMATED 

DRIVE TIME

HUB 

SIZE

Chico (CIC) 72 1 hr, 9 min Non

Eureka/Arcata 

(ACV) 143 2 hrs, 25 min Non

Medford (MFR) 151 2 hrs, 13 min Non

Sacramento (SMF) 154 2 hrs, 14 min Medium

Reno (RNO) 200 3 hrs, 3 min Small

Oakland (OAK) 220 3 hrs, 12 min Medium

San Francisco 

(SFO) 228 3 hrs, 19 min Large

San Jose (SJC) 245 3 hrs, 32 min Medium

Source: Microsoft MapPoint 2013

TABLE 2.2 TOP EMPLOYERS

EMPOYER EMPLOYER

Barr Brothers Company NComputing

Bethel Church Premiere Brand Meats

Blue Shield of California Record Searchlight

CH2M Hill Redding Electric Utility

Coca Cola Bottling Co. SECO Manufacturing

Comptech Marine Shasta College

Global Flex Manufacturing Shasta Regional Medical

Knauf Insulation Sierra Pacific Industries

Lehigh Southwest Cement Simpson University

Les Schwab Tire Recap Skyway Recreation

MariTech Industries State Fund Insurance

Mercy Medical Center The Fly Shop
SECTION 2

AIR SERVICE ENVIRONMENT

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 5

REDDING MUNICIPAL AIRPORT

that has approximately 240 employees in their 

Redding office and 14,500 employees and 200 offices 

worldwide. Another example is The Fly Shop, quoted 

as the largest commercial fly-fishing distributor in the 

world. The Fly Shop books over 4,000 rooms annually 

for visitors. CH2M Hill and The Fly Shop are just two

examples of the many companies in the area that rely 

on local, commercial air service.

New business development is strong in Redding. A 

few examples of recent business 

development include: 

 Southern Aluminum Finishing recently 

opened a 200,000 square foot facility and 

added over 30 employees. Their West 

Coast-Redding office is their top producer in 

the U.S. With their entrance into new 

markets in Asia, local air service is critical.

 AirCover Integrated Solutions, an 

Unmanned Aerial Vehicle (UAV) company, 

works with several large Department of 

Defense manufacturers and contractors. 

They are currently working with Lockheed 

Martin - Skunk Works and FireWhat to 

establish a Certificate of Authorization (COA) 

in the Mt. Shasta region.

 3M has purchased 1,900 acres in northern 

Shasta County that will be developed by 

Moody Flats Quarry, LLC, a subsidiary of 

3M. One-hundred, full-time jobs will be 

created with a capital investment of 

approximately $80 million.

 IASCO Flight Training trains 180 Chinese 

students and 40 Japanese students. They 

are initiating their first domestic pilot training 

program. They have a fleet of 34 aircraft 

performing primary training during their 12-

month program. 

These examples and more support the critical need 

for local, continued commercial air service. Air service 

is simply how “business does business”. Without local 

air service, these businesses will suffer and it will 

hamper future development efforts in the community.

EDUCATIONAL INSTITUTIONS

Shasta College, a two-year community college, and 

Simpson University, a private, liberal arts college, 

serve the higher education needs in the Redding 

community. Shasta College has over 10,000 annual 

enrollments. Simpson University, has over 1,100

annual enrollments and over 140 staff.

Another institution with significant travel needs is the 

Bethel School of Supernatural Ministry. Bethel has 

more than 2,000 students enrolled annually with 

almost 40 percent international students.

More importantly, Bethel Post-Graduate Leadership 

Development hosts about 12,000 people per year at 

events/conventions in Redding. Bethel is responsible 

for over two million travel miles every year valued at 

approximately $3 million with over a dozen individuals 

with travel of at least 100,000 miles annually on 

United Airlines. An additional 1,200 students were 

sent on mission trips around the world in spring 2013. 

Because of this, Bethel has been very active in air 

service development efforts.

TOURISM

RDD is the “Gateway to a World Renown Recreation 

Area”. In addition to the diverse and growing business 

community, the Redding region is a magnet for 

tourists seeking an outdoor experience. Local 

attractions include: Lake Shasta, Mt. Shasta, Lassen 

National Park, Whiskeytown National Recreation 

Area, and other outdoor attractions that are nearby.
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 6

REDDING MUNICIPAL AIRPORT

SECTION 3

AIR SERVICE –

EXISTING/HISTORICAL

This section provides an overview of existing air 

service. Carriers providing service, service frequency, 

nonstop destinations offered, and equipment types 

are included in the discussion. A summary of 

historical air service is also included. A description of 

air service development efforts concludes the section.

EXISTING AIR SERVICE

Currently, SkyWest Airlines (United Express) offers 

the only remaining service from RDD. The SFO 

service is operated with the 30-seat EMB-120 

turboprop aircraft three times daily. RDD has just 21

weekly departures and 630 weekly seats in July 2014

(Table 3.1), down 25 percent since July 2013 and 79 

percent since July 2010. Since service is provided 

solely with the EMB-120, the continued downward 

trend indicates the possibility that RDD service could 

be further reduced or eliminated.

TABLE 3.1 EXISTING AIR SERVICE

NONSTOP 

DESTINATIONMARKETING 

CARRIER

AIRCRAFT

WEEKLY 

DEPARTURESWEEKLY 

SEATS

San 

Francisco, CA 

(SFO)

SkyWest (United 

Express)

EMB-120 21 630

Total 21 630

Source: Diio Mi, July 2014

While SkyWest has a codeshare with United Airlines 

at SFO to allow for connecting opportunities, SkyWest 

operates the RDD services on a pro-rate basis (i.e. at 

risk). This means that SkyWest ultimately decides the 

fate of the RDD service which must be profitable to 

remain an ongoing market. SkyWest has indicated 

that there is significant increase in operating costs in 

upgrading RDD to regional jets which adds financial 

risk to the airline. Without the support of the SCASDP

to partially offset that increased cost, RDD is at risk 

of losing access to the national air 

transportation system.

HISTORICAL AIR SERVICE

In the last five years, RDD has experienced significant 

reductions in commercial air service. This section 

discusses historical air service including destinations, 

traffic levels, and service providers and extenuating 

factors that have affected air service over time.

Over the last 10 years, RDD has had service to 

multiple destinations including Las Vegas provided for 

a short period of time by Allegiant and Los Angeles, 

Portland and Seattle provided by Alaska Airlines until 

2011. Since Alaska pulled service, SkyWest has been 

the sole service provider at RDD.

Table 3.2, next page, shows historical hub 

destinations and service providers over the past 10 

years. Scheduled annual departures and seats are 

provided. Peak service over the 10-year period was 

reached in 2006 when Alaska provided service to Los 

Angeles and Portland and SkyWest provided an 

average of six daily roundtrips to SFO. However, 

since then, Alaska pulled out of the market and 

SkyWest reduced service to just three daily 

roundtrips. This has resulted in a 10-year low in 

departures and seats in 2013, with seats declining 79 

percent and departures declining 66 percent 

since 2006. 

This section addresses: 

 Description of existing air service

 Synopsis of historical air service

 Description of air service development efforts
SECTION 3

AIR SERVICE – EXISTING/HISTORICAL

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 7

REDDING MUNICIPAL AIRPORT

Scheduled seats and departures in the RDD 

market have decreased 23 percent from calendar 

year 2012 to 2013 alone and are decreasing

another 7 percent in 2014.

Exhibit 3.1 provides a summary of annual seats and 

onboard passengers from 2004 through 2013. 

EXHIBIT 3.1 HISTORICAL SEATS AND PASSENGERS 

Source: Diio Mi

Over the 10-year period, outbound passengers (i.e. 

enplanements) at RDD have decreased by 65

percent, a slightly lesser amount than seats at a 71

percent decrease. From 2004 to 2006, outbound 

passengers increased by almost double and has 

since then steadily declined. An upgrade to regional 

jets would preserve important local access to the 

national air transportation system and increase 

available seats to reverse these negative trends.

PAST AIR SERVICE DEVELOPMENT EFFORTS 

The City of Redding and its air service development 

partners have been very aggressive in air service 

development efforts over the past three years. With 

annual headquarters meetings and regularly 

scheduled conference calls with potential carriers, 

RDD has consistently explored every possibility in 

developing and preserving existing air service.

As an example, the City of Redding in partnership 

with the Economic Development Corporation of 

Shasta County and Bethel Church developed an 

Airline Travel Bank® (ATB)/revenue guarantee 

program in support of reinstating nonstop Los 

Angeles service. This program was one of the first of 

its kind in that it was a hybrid program funding both 

the ATB and a revenue guarantee by companies 

within Redding. The program is fully funded by local 

companies that deposited 50 percent of their pledged 

funds to support the initiative. The other 50 percent of 

the funds are contractually obligated. Their 

participation in the program was in good faith, without 

the knowledge of when or what carrier would provide 

the service. This demonstrates the community’s vast 

support of local commercial air service.

10,000

30,000

50,000

70,000

90,000

110,000

130,000

150,000

170,000

190,000

2004200520062007200820092010201120122013

Calendar year

Onboards Seats

TABLE 3.2 HISTORICAL HUB DESTINATIONS AND SERVICE PROVIDERS

HUB AIRLINE ITEM

SCHEDULED ANNUAL DEPARTURES/SEATS

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Arcata, CA 

(ACV) Alaska Dept 366 605 699 708 547 689 569 106

Seats 23,244 42,152 51,726 52,638 40,478 51,436 43,244 8,056

Las Vegas, NV 

(LAS) Allegiant Dept 43

Seats 6,450

Los Angeles, 

CA (LAX) Alaska Dept 250 363 363 364 363 467 106

Seats 17,500 26,862 26,986 26,576 27,104 35,492 8,056

Portland, OR 

(PDX) Alaska Dept 366 363 365 365 366 234

Seats 24,696 25,410 27,010 27,134 27,084 17,316

San Francisco, 

CA (SFO)

SkyWest 

(United 

Express)

Dept 2,154 1,832 2,044 1,795 1,686 1,439 1,438 1,720 1,529 1,171

Seats 64,620 54,960 61,320 53,850 50,580 43,170 43,140 51,600 45,870 35,130

Seattle, WA 

(SEA) Alaska Dept 131 233

Seats 9,938 17,708

Annual departures 2,929 3,050 3,471 3,231 2,963 2,856 2,707 1,932 1,529 1,171

Annual seats 119,010 140,022 166,918 160,608 144,718 148,964 139,584 67,712 45,870 35,130

Source: Diio Mi
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 8

REDDING MUNICIPAL AIRPORT

SECTION 4

AIR SERVICE NEEDS AND 

DEFICIENCIES

The Air Service Needs and Deficiencies section 

identifies the impetus behind this SCASDP grant 

application and demonstrates the critical need to take 

action to preserve the highly valued air transportation 

access that air service at RDD provides.

FLEET REDUCTIONS

SkyWest Airlines recently announced the cessation of 

service at Crater Lake-Klamath Regional Airport in 

Klamath Falls, Oregon, and Modesto City-County 

Airport in Modesto, California, effective June 2014. 

Each of these markets were served with the EMB120s. SkyWest determined that the current financial 

risk of continuing to serve these two communities was 

too great. Additionally, SkyWest announced the 

elimination of the EMB-120s at Portland International 

Airport. If this trend continues, RDD is also subject to 

potentially losing all commercial air service as their 

service is provided solely with the EMB-120 aircraft.

Service cessation would impact a significant number 

of air travelers and local businesses. For the year 

ended March 31, 2014, SkyWest served almost 

24,000 annual passengers. Losing local 

commercial air service would force these 

travelers to drive long distances to alternate 

airports, further adding to the well-documented road 

congestion issues in California and increasing the 

cost of commerce.

The only current viable replacement in RDD for this 

aircraft is the 50-seat CRJ-200. However, the CRJ200 is much more expensive for SkyWest to operate 

than the EMB-120. Because of this, there is a high 

financial risk for SkyWest to provide the aircraft 

upgrade at RDD. In addition, the CRJ-200 are in short 

supply and in high demand for SkyWest. The limited 

aircraft resources make it very competitive for 

markets that are served with the EMB-120s. This 

SCASDP would provide the needed risk abatement 

for SkyWest and give the Redding community the 

opportunity to prove that the market can support the 

move to larger and more expensive aircraft.

DECLINING AND UNRELIABLE AIR SERVICE

Since 2011 when Alaska Airlines pulled out of the 

RDD market, SkyWest has been the sole service 

provider at RDD. Because of this, RDD’s access to 

the national air transportation system is completely 

reliant on SkyWest. They currently provide nonstop 

service to SFO, three times daily. Since 2003, 

SkyWest provided as much as six daily roundtrips but 

has reduced air service with the lowest level of air 

service reached in July 2014 (Table 4.1).

TABLE 4.1 SKYWEST-RDD NONSTOP 

DAILY FLIGHTS

CALENDAR 

YEAR

FLIGHTS/ 

WEEK

SEATS/ 

WEEK

SEATS/ 

DEPT

2003 42 1,260 30

2004 42 1,260 30

2005 35 1,050 30

2006 40 1,200 30

2007 35 1,050 30

2008 35 1,050 30

2009 28 840 30

2010 28 840 30

2011 34 1,020 30

2012 29 870 30

2013 28 840 30

2014 21 630 30

Source: Diio Mi

This section addresses: 

Description of the Redding community’s air 

service needs and deficiencies.
SECTION 4

AIR SERVICE NEEDS AND DEFICIENCIES

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 9

REDDING MUNICIPAL AIRPORT

The nearly 80 percent reduction in departures and 

seats since July 2010 has significantly deteriorated 

the quality of air service provided at RDD. In a 

market with such limited air service, any further 

reductions seriously impede the community’s 

access to the national air transportation system.

The significant reductions in frequency have

exacerbated other issues. When a flight is cancelled 

or delayed, air travelers are left stranded and must 

find alternate ways to get to their destination. With the 

use of the 30-seat EMB-120, delays and cancellations 

have been significant to/from SFO (Table 4.2). For 

example, in April 2014, RDD’s cancellations of 6 

percent of flights were double SkyWest’s average at 

SFO and the problem seems to be getting worse. 

While some delays and cancellations were expected 

with the SFO summer construction, communities 

served solely with the smaller turboprop aircraft were 

hit the hardest as they are canceled before the larger 

aircraft where more travelers are impacted. 

TABLE 4.2 RDD DELAYS/CANCELLATIONS

CALENDAR 

YEAR

CALENDAR 

MONTH

TOTAL 

FLIGHTS

% 

FLIGHTS 

DELAYED

% 

FLIGHTS 

CANCELLED

2014

May 93 23% 3%

Apr 90 22% 6%

Mar 93 18% 2%

Feb 84 25% 10%

Jan 93 18% 2%

Dec 88 16% 5%

Nov 89 11% 1%

2013

Oct 93 18% 1%

Sep 90 29% 3%

Aug 119 36% 8%

Jul 124 29% 11%

Jun 115 22% 9%

Source: Diio Mi

Upgrading to regional jet aircraft will solve many of 

the community’s air service issues and provide more 

seats in the market. Even if frequency were reduced 

with the upgrade to larger aircraft, at two roundtrips 

per day, seats will increase by 11 percent. An 

upgrade to regional jets will also likely lessen delays 

and cancellations for RDD at SFO.

UNDERSERVED MARKET WITH 

HIGH DIVERSION

A study of RDD’s passenger diversion for year ended 

June 30, 2013, shown in Exhibit 4.1, indicated that 

approximately 87 percent of the travelers in the 

RDD catchment area drive to other airports.

Previous studies showed that nearly 40 percent of 

potential travelers used RDD when service levels 

were greater, an indicator that the market responds to 

service improvements. Losing RDD’s existing air 

service will exacerbate the problem. The regional jet 

upgrade will improve local air service thereby pulling 

more air travelers from the congested roadways.

EXHIBIT 4.1 RDD CATCHMENT AREA AIRPORT USE

In terms of the extent this community is underserved, 

Table 4.3 provides a comparison of communities with 

similar geography and populations within a 50-

mile radius. 

TABLE 4.3 AIR SERVICE COMPARISON - JULY 2014

AIRPORT

POPULATION

# OF 

CARRIERS/

DESTINATIONSWEEKLY 

FLIGHTS

WEEKLY 

SEATS

Medford, OR 

(MFR) 331,332 4/7 124 8,473

Redding, CA 

(RDD) 282,252 1/1 21 630

Redmond, OR 

(RDM) 203,742 4/6 124 6,993

North Bend, OR 

(OTH) 155,637 2/2 37 907

Arcata/Eureka, 

CA (ACV) 129,692 1/2 59 1,770

Source: Diio Mi - July 2014; Population = 50-mile radius

SMF

67%

RDD

13%

SFO

11%

OTHER

9%
SECTION 4

AIR SERVICE NEEDS AND DEFICIENCIES

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 10

REDDING MUNICIPAL AIRPORT

RDD’s air service options in terms of weekly 

departures and weekly available seats are very low 

compared to other communities with a similar 

population and geography. RDD has, by far, either the 

lowest number of weekly departures or weekly 

available seats for the size of their population. 

The Strategic Plan proposed herein will help to 

ensure the availability of commercial air service at 

RDD and increase the number of available seats in 

this highly underserved market.

IMPACTS OF LOSS OF AIR SERVICE

This SCASDP grant application is the direct result of 

the threat to RDD losing commercial air service. 

Airports are life lines that connect residents to the 

national and international aviation systems. If RDD 

loses air service, there will be significant impacts at 

the City of Redding level as well as the regional level.

First and foremost, job losses for the City and airline 

staff are likely. Additionally, fees from airport users

help to maintain the airport, not only for commercial 

aviation users but also general aviation users. Without 

service, airport funding will decline. In addition, U.S. 

Department of Transportation (DOT) grant revenues 

through the Airport Improvement Program will go 

down significantly and result in the possible erosion of 

major maintenance at RDD.

Beyond the direct impacts of loss of air service, there 

are regional impacts to the economy. Commercial air 

service is a key to economic development and 

contributes to the economic health of the region. 

Connectivity has become increasingly important for 

businesses – it is how “business” does “business”. 

Businesses depend on convenient airline service in 

order to facilitate face-to-face contact around

the world. 

Though beyond the scope of this grant to quantify the 

direct impact that the loss of air service would have 

on the Redding community, it has been demonstrated 

in other studies that counties that have lost air service 

have shown significant losses in the share of national 

personal income whereas counties that have obtained 

air service have dramatically increased their share of 

the national personal income.

In short, if RDD loses commercial air service it could 

have a devastating impact on the regional economy, 

especially the growth of the local economy. It is well 

known that business site locators use information on 

access to commercial air service as a major factor in 

making recommendations to firms on where to locate. 

Without air service, Redding will no longer be a 

contender for development for these firms.

The Redding community has shown over several 

decades that it can support commercial air service; 

however, factors outside of the community’s control 

such as the growing trend in the reduction of the 

EMB-120 fleet and industry consolidation have 

impacted its access to the national air transportation 

system. Funding of this SCASDP application will help 

RDD transition to the larger aircraft and prove to its 

sole service provider, SkyWest, the RDD market can 

be profitably served with larger more costly aircraft.

HIGH AIRFARES

The Redding community suffers from high airfares 

and overall cost of air travel and is losing over 

328,000 annual passengers to other airports. 

Consequently, the marketplace’s reaction has been to 

endure the inconvenience and expense of driving to 

another airport.
SECTION 4

AIR SERVICE NEEDS AND DEFICIENCIES

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 11

REDDING MUNICIPAL AIRPORT

As shown in Exhibit 4.1, page 9, the majority of RDD

catchment area travelers drive between 154 to 228

miles to access either SMF or SFO. At the IRS 

mileage rate of 56.5 cents per mile, the drive adds an 

out-of-pocket expense of $87 to over $129 one-way

depending on the airport used, not including the cost 

of the traveler’s time to make the drive. This also does 

not include the cost of parking, which can be very 

costly at $10 to $17 per day at SMF and a minimum 

of $18 per day at SFO. RDD is just $8 per day.

Inconvenience and expense are not the only 

consequences. Traffic congestion, particularly to/from 

SFO, can be extensive. The extra time needed for 

these trips increases the likelihood of missed flights, 

further compounding the problem of added expense, 

inability to conduct business and slowing the 

economic recovery of the region.

The Bureau of Transportation Statistics (BTS) 

Research and Innovative Technology Administration 

database for calendar year 2013 shows RDD with an 

average gross roundtrip fare of $570, significantly 

higher than the national average of $382. RDD’s 

average fare is 49 percent higher than the national 

average based on this database.

RDD’s significant fare discrepancy is shown further in 

comparison to other competing airports, the state of 

California, the West region and the national average 

as shown in Table 4.4. 

The diversion to SMF and SFO in large part is related 

to airfare differences. Over the last 10 years, the fare 

disparity between RDD and SMF has ranged 

significantly. In 2010, the fare difference was only 

$10; however, in 2013, the fare difference has grown 

to an average of $88 one-way. Compared to SFO in 

2013, the fare difference is $54 one-way. To further 

exacerbate the problem, RDD’s average fare has 

increased 21 percent within the last year while SMF’s 

fare increased only 7 percent and SFO’s fare 

increased only 5 percent. These high airfares have 

led the majority of travelers to use these alternate 

airports, driving in excess of 2.5 hours each way.

RDD’s high airfares is further exemplified in 

comparison to the state, region and national levels. In 

2013, RDD’s one-way average domestic fare was $70

higher than the state of California, $72 higher than the 

West region and $82 higher than the U.S. average.

Over the past 10 years, RDD’s average domestic 

fare increased 93 percent while the U.S. average 

increased only 37 percent. This puts RDD travelers 

at a significant disadvantage.

TABLE 4.4 AVERAGE ONE-WAY FARE PAID

AVERAGE DOMESTIC FARE RDD $ 

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 DIFF

RDD $136 $137 $152 $152 $165 $151 $155 $182 $217 $262 

SMF $109 $118 $127 $127 $137 $132 $145 $161 $164 $174 $88 

SFO $161 $175 $190 $187 $184 $155 $176 $194 $198 $208 $54 

California $132 $142 $156 $156 $165 $149 $166 $180 $184 $192 $70 

West Region $132 $141 $154 $153 $164 $148 $166 $179 $184 $190 $72 

U.S. $131 $135 $147 $147 $157 $143 $157 $170 $176 $180 $82 

Source: Diio Mi; Domestic only
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 12

REDDING MUNICIPAL AIRPORT

SECTION 5

STRATEGIC PLAN 

The Strategic Plan proposed by the City of Redding

will achieve the community’s goals and help to 

alleviate the air service needs and deficiencies of this 

community. This section provides a detailed 

description of the goals of the project and a plan for 

attaining those goals. This section also identifies the 

legal sponsor responsible for administering the 

program and the public-private partnership that has 

been formed to actively participate in implementing 

the proposed project. A detailed description of the 

funding necessary for implementation of the Strategic 

Plan, including federal and non-federal contributions, 

is included.

PUBLIC-PRIVATE PARTNERSHIP

The City of Redding, CA, is the sponsor of the 

Redding Municipal Airport and this grant application.

In support of the proposed service and this 

application, the City of Redding has formed a publicprivate partnership with the Economic Development 

Corporation of Shasta County (refer to community 

support letters in Appendix A). This long-standing 

partnership was formed many years ago in support of 

local, commercial air service. Each of the partners is 

committed to and has an active role in the publicprivate partnership (Table 5.1).

Strategic Plan/Revenue Guarantee: The City of 

Redding/Redding Municipal Airport will execute, 

manage, and administer grants associated with this 

application and administer the revenue guarantee.

Marketing Program: The Economic Development 

Corporation of Shasta County will plan, manage, and 

execute the marketing program proposed for the 

improved air service.

PROJECT GOALS

The project goal is to preserve commercial air service 

at RDD by supporting a regional jet upgrade in the 

face of the reduction of the EMB-120 aircraft fleet. 

This upgrade will increase seat capacity in the RDD 

market and will help ensure that this vibrant California 

community has continued access to the national air 

transportation system. 

PROPOSED AIR SERVICE

RDD is served solely by SkyWest Airlines, three times 

daily to SFO, with the 30-seat EMB-120 turboprop 

aircraft. With the potential reduction of SkyWest’s 

EMB-120 fleet, RDD is at risk of losing all commercial 

air service and access to the air 

transportation system.

An upgrade from the EMB-120 to the 50-seat CRJ200 will preserve RDD’s air service and this vital link

to the national air transportation system. The upgrade 

will also increase seat capacity in this underserved 

northern California market. If aircraft were exchanged 

one-for-one, seat capacity would increase by 67 

percent. If SkyWest replaced the three EMB-120

flights with two CRJ-200 flights, seat capacity still 

increases by 11 percent. 

TABLE 5.1 PUBLIC-PRIVATE PARTNER ROLES

PUBLIC-PRIVATE 

PARTNER ROLE

City of Redding/

Redding Municipal Airport

Grant 

administration/Revenue 

guarantee

Economic Development 

Corporation of Shasta 

County

Develop and administer 

the marketing campaign

This section addresses: 

 A Strategic Plan for meeting the Redding 

community’s air service needs and 

deficiencies

 Previous grant recipient with new project 

and goals 

 Description of the public-private 

partnership

 Designation of a legal sponsor

 Funding necessary for implementation 

 Sustainability of the project
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 13

REDDING MUNICIPAL AIRPORT

AIRLINE PARTICIPATION

The public-private partnership has had regular 

correspondence with SkyWest to discuss upgrading 

aircraft to 50-seat regional jets. SkyWest has 

indicated that there is significant financial risk in 

upgrading to the larger aircraft and has requested that 

the community share in the economic risk. This 

SCASDP grant application is submitted in an effort to 

do so. SkyWest has provided a letter of support for 

this air service initiative (included in Appendix A).

MARKET ANALYSIS

For SkyWest to replace the three existing EMB-120

roundtrips with two or three CRJ-200 aircraft, 

SkyWest will incur significant financial risk. Table 5.2

provides an analysis of SkyWest’s incremental cost 

for the two scenarios.

TABLE 5.2 RDD-SFO COST ESTIMATE

EXISTING 

SERVICE

PROPOSED SERVICE

OPTION 1 OPTION 2

Aircraft EMB-120 CRJ-200 CRJ-200

Cost per 

segment $2,335 $3,327 $3,327

Segments 

per day 6 6 4

Additional seat 

capacity 0 43,800 7,300

Seat capacity 

increase 0% 67% 11%

Annual aircraft 

cost $5,113,650 $7,286,130 $4,857,420

Incremental 

cost $2,172,480 ($256,230)

Source: Cost per segment = SkyWest Airlines' EAS Filings

On a cost per segment basis, the CRJ-200 is 42

percent more expensive for SkyWest to operate in the 

RDD-SFO market than the EMB-120s. In the first 

scenario, which is the optimal scenario for the 

Redding community, SkyWest will incur an additional 

$2.2 million in financial exposure. The risk is that the 

RDD community cannot fill the additional 67 percent 

of seat capacity. To reduce the risk of adding such a 

substantial seat capacity increase, SkyWest may

replace the three EMB-120 roundtrips with two CRJ200 roundtrips until the market can adjust. While the 

financial outlay is slightly less for the CRJ-200 with 

two roundtrips, there is an additional 11 percent of 

seat capacity to fill and the lower frequency may 

cause some travelers to divert to alternate airports.

With the two roundtrip option, maintaining passenger 

levels is a risk.

SkyWest is not looking to have the RDD community 

cover the entire incremental cost of the additional 

capacity. Rather SkyWest is looking for the 

community to share in the risk during the first year of 

service. Although it is estimated that SkyWest will 

earn a profit after the capacity addition matures, they 

will not generate this amount of revenue or margin at 

start-up. Airlines typically incur losses during the 

ramp-up period. Based on discussions with SkyWest, 

a $450,000 revenue guarantee would be an adequate 

contribution by the community to share in the risk. 

This would cover approximately 25 percent of 

SkyWest’s incremental cost with three roundtrips 

during the first year of service. 

ALTERNATE PLAN

As previously mentioned, while SkyWest has a 

codeshare with United Airlines at SFO to allow for 

connecting opportunities, SkyWest operates the RDD 

services on a pro-rate basis (i.e. at risk). This means 

that SkyWest decides the fate of the RDD service and 

must be profitable on the RDD segments to remain in 

the market. If SkyWest decides to not upgrade the 

market to regional jets, United will be approached to 

operate the service on a contract basis.
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 14

REDDING MUNICIPAL AIRPORT

INCENTIVE AND SUPPORT PLAN

New service initiatives such as the one proposed in 

this Strategic Plan are expensive and financially risky, 

particularly in smaller communities like Redding.

Accordingly, airlines are cautious and highly risk 

adverse requiring communities to partner with them to 

reduce economic uncertainty. In today’s industry, 

community risk mitigation programs have become an 

expectation. To be effective, airline support packages 

must be structured to address the realities of today’s 

industry and ensure that investments made are quick 

to respond. This Strategic Plan is structured to 

address today’s industry realities.

The public-private partnership proposes an airline 

incentive program that has been tested and proved to 

be successful. To reduce SkyWest’s breakeven 

period and offset the economic risk during start-up, 

the public-private partnership proposes the following 

incentives (Exhibit 5.1):

 Revenue guarantee: reduce airline economic risk

 Marketing campaign: create improved 

service awareness

Revenue Guarantee

To reduce SkyWest’s risk and provide incentive to 

upgrade aircraft to the CRJ-200 in the RDD market, 

this Strategic Plan includes an airline revenue 

guarantee as part of the community support package. 

SkyWest’s annual cost of providing additional 

capacity will be as much as $2.2 million annually. To 

share in the risk for the first year, the Redding 

community proposes a $450,000 airline revenue 

guarantee. Exact terms of the airline revenue 

guarantee agreement are subject to further 

discussions and negotiation. 

Marketing Campaign

Promotion of the proposed service will begin 60 days 

prior to the start date of the aircraft upgrade and 

continue for an additional six months. The budget is 

$50,000. Since a previous marketing campaign for 

new service was implemented, the public-private 

partnership is experienced at planning and executing 

successful promotion programs for air service. The 

public-private partnership will partner with SkyWest to 

create the necessary artwork for distribution in the 

media outlets.

TARGET AUDIENCE

The seat cost of operating regional jets is high, 

especially compared to the EMB-120. Accordingly, 

the airfares associated with the proposed service 

improvement will be competitive but not cheap, similar 

to the existing service today. The success of the 

proposed service hinges on the support of the air 

traveler that is flying for a business/job related 

purpose. These are the air travelers that are not as 

price sensitive and more inclined to pay a small fare 

premium for the convenience of flying locally. Cost 

conscious leisure flyers tend to drive to distant 

airports to take advantage of low-fare carrier service 

especially if there are multiple people 

traveling together.

The primary target audience is the outbound Redding 

business flyer. Also, companies in the Redding area 

that have regular inbound visitors (e.g. branch offices, 

vendors) are considered part of the primary target 

audience. The secondary target audience is the 

convenience oriented, time sensitive, leisure traveler.

High income travelers, some retirees, and people 

traveling on short notice fall into this category.
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 15

REDDING MUNICIPAL AIRPORT

MARKETING MESSAGE

The key messages for marketing of the improved 

service are stressing the convenience of flying local 

and the change in the aircraft type. The community is 

very familiar with flying on smaller, turboprop aircraft. 

Regional jet aircraft will be a very positive 

improvement for local travelers.

MEDIA MIX

The media mix is provided in Exhibit 5.1 and 

detailed below:

EXHIBIT 5.1 MEDIA MIX/BUDGET

Printed Advertising – Once the upgraded service is

loaded into the airline’s computer system (which is 

typically 90 days in advance of the start date), 

marketing will begin by purchasing ad space in one or 

more of the following newspapers:

 Redding Record Searchlight

 Red Bluff Daily News

 Chico Enterprise Record

 Chico News and Review

 Siskiyou Daily News

Billboards – The Economic Development 

Corporation of Shasta County will contract with 

regional/national billboard firms for prime billboard 

locations throughout the catchment area. The 

billboards will go up in advance of the start date of the 

service upgrade. 

 Viacom

 Others

Radio – The Economic Development Corporation of 

Shasta County will buy airtime on popular radio 

stations that broadcast within the catchment area.

 Redding

 Red Bluff

 Chico

 Siskiyou County

Television – The Economic Development 

Corporation of Shasta County will buy commercial 

slots on local programming as well as local 

access channels.

 Redding

 Chico

Public Outreach – The Economic Development 

Corporation of Shasta County will use their internal 

communication vehicles and events to inform and 

solicit the support of the business community.

 Airport, Economic Development Corporation, 

and Chamber speaking engagements and 

local service organizations (e.g. Rotary Club)

 Website additions

 Community activities (e.g. Air Show, 

Energy Fair)

 Interviews on television, in local newspapers, 

and local radio stations

 Social media

STRATEGIC PLAN FUNDING

The public-private partnership is requesting U.S. DOT

assistance in funding 90 percent, or $450,000, of the 

Strategic Plan. The remaining cash funds for the 

marketing campaign will be provided by nonairport revenue sources, specifically Economic 

Development Corporation of Shasta County.

Printed 

advertising

25%

Billboards

33%

Radio

17%

Television

25%
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 16

REDDING MUNICIPAL AIRPORT

Table 5.3 provides the Strategic Plan budget by 

element and sources of funding. The community will 

fund 10 percent of the total proposed air 

service program.

TABLE 5.3 STRATEGIC PLAN BUDGET

DESCRIPTION

FUNDING SOURCE

TOTAL

U.S. 

DOT

NONAIRPORT

CASH CASH

Airline Support Program:

Revenue Guarantee $450,000 $450,000 

Marketing Campaign $50,000 $50,000 

Total $450,000 $50,000 $500,000 

Percent of total project 90% 10% 100%

PROJECT CONTINUATION AND 

SUSTAINABILITY

Based on a strong marketing campaign for promoting 

the regional jet upgrade, it is anticipated that the

regional jet upgrade will be self-sustaining after the 

start-up period which can take up to a year. However, 

a leading cause of failure is lack of awareness in the 

community. With recent negative impacts of delays 

and cancellations at SFO and the continued reduction 

in service over the past two years, it is possible that 

the lack of availability of flights is already ingrained in 

local catchment area traveler’s habits. Changing 

these habits is a top priority of the 

marketing campaign. 

If at the end of the first 12 months of regional jet 

service the load factor does not meet a level 

satisfactory to SkyWest, the public-private partnership 

will consider funding an additional marketing 

campaign. The public-private partnership and the 

Redding community are committed to the success of 

this project, have a vested interest in the outcome of 

this Strategic Plan, and understand the difficulties 

associated with profitably operating air service.

PREVIOUS GRANT RECIPIENT - NEW PROJECT 

AND GOALS

The City of Redding has been the fortunate recipient 

of two previous SCASDP grants. In 2004, the

application and grant award had two goals:

 Improve air service to a broad section of air 

travelers at both the RDD and Arcata/Eureka 

airports by adding nonstop service to a new 

destination, Los Angeles International Airport

 Provide better access to the national 

transportation system

The City of Redding in coordination with 

Arcata/Eureka Airport successfully utilized the grant 

by obtaining nonstop Los Angeles service; however, 

due to Alaska’s change in focus in the Los Angeles 

market, several markets including RDD and 

Arcata/Eureka were canceled. The service 

cancellation was due to factors beyond the control of 

either community.

The City of Redding also received a SCASDP grant in 

2008. The grant goals in 2008 specifically targeted 

new air service to the east, with the primary target of 

Salt Lake City. Unfortunately, timing was very poor 

with this grant being awarded at the beginning of the 

recession. Over the next several years, airlines were 

contracting with severe capacity cutbacks. Few new 

markets were added nationwide and the grant had to 

be returned to the U.S. DOT.

This grant is very different from the first two grants. 

The primary objective of this grant is to preserve 

existing air service at RDD. The first two grants were 

focused on expanding air service to new destinations. 

This grant is for the replacement of the EMB-120 

aircraft with the CRJ-200 aircraft to an existing 

destination. Although the methods used to achieve 

the goals are similar to the 2004 and 2008 projects 

(i.e. revenue guarantee and marketing campaign), the 

goals are clearly different. As demonstrated, this 

application qualifies as a new project and meets the 

requirements of the SCASDP.
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 17

REDDING MUNICIPAL AIRPORT

SECTION 6

SCHEDULE AND 

MONITORING

The public-private partnership has developed a 

realistic timetable to achieve the goals of this grant 

application. This section provides critical milestones 

to be achieved by the public-private partnership. A 

monitoring program is also provided to track the 

progress of the regional jet upgrade.

CRITICAL MILESTONES

The following milestones are proposed to track the 

progress of this air service initiative. The timeline is 

highly dependent on the date of the U.S. DOT’s grant 

award and the date SkyWest Airlines provides the 

regional jet upgrade in the RDD market.

Airline Negotiations

October – December 2014: Immediately following 

award of this SCASDP application, the public-private 

partnership will meet with SkyWest to negotiate the 

terms of the airline incentive program including the 

revenue guarantee agreement. Successful airline 

negotiations are critical to the timing of the rest of the 

Strategic Plan.

Marketing Campaign Development/Initiation

January 2015: Development of the marketing 

campaign will be completed immediately following 

successful SkyWest negotiations for the regional jet 

upgrade. Development will be completed in time for 

the marketing campaign to be kicked off 30 to 60 days 

prior to new service initiation. Development of the 

marketing campaign is dependent on announcement 

of the replacement of the EMB-120 with the CRJ-200 

and the proposed start-up date. 

February 2015: It is anticipated that the marketing 

campaign will begin by February 1, 2015, two months 

prior to new service initiation, and continue throughout 

the first year of new service.

Service Improvement Initiation

April 2015: It is anticipated that SkyWest may replace 

the EMB-120 aircraft with the CRJ-200 aircraft as 

early as April 2015. Air service initiation is dependent 

on airline route planning and availability of aircraft.

Alternate Plan

December 2015: If SkyWest has not committed to 

upgrading the RDD-SFO route to the CRJ-200 by 

December 1, 2015, RDD will contact United Airlines to 

assess interest in providing RDD-SFO CRJ-200 

service on a contract basis.

End of First Year of Service

March 2016: At the end of the first year of service, the 

revenue guarantee will be calculated based on the 

terms of the agreement. If the service start date 

changes due to airline circumstances and/or 

equipment availability, the revenue guarantee 

contract term will change accordingly. 

This section addresses: 

 How the community will monitor the 

progress of the project

 The plan/schedule for timely completion of 

the project
SECTION 6

SCHEDULE AND MONITORING

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 18

REDDING MUNICIPAL AIRPORT

March 2016: If the load factor for the first 12 months 

of service does not reach a level satisfactory to 

SkyWest, RDD will consider investing in 

supplementary marketing for an additional 12 months 

to help the service reach the potential passenger 

levels required for SkyWest success. 

MONITORING PROGRAM

To ensure the success of SkyWest’s upgrade to 

regional jets, the monitoring program will include: 

service performance tracking, assessing the 

effectiveness of the marketing campaign, and 

determining the impact of the additional capacity on 

retention of catchment area passengers at RDD.

The following will be completed:

 Review aircraft departures, enplaned 

passengers and load factors on a monthly 

basis. Airport data, U.S. DOT airline reported 

data and data obtained directly from the 

airline will be used.

 Average airfares will be reviewed on a 

quarterly basis and compared and evaluated 

to prior quarters.

 An updated true market estimate will be 

completed after a full year of U.S. DOT origin 

and destination data is available (estimated 

to be available July 2016 for the year ended 

March 31, 2016).
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

REDDING MUNICIPAL AIRPORT

APPENDIX A

LETTERS OF SUPPORT

Appendix A includes letters of support for the City of 

Redding’s application to the U.S. DOT to maintain 

commercial air service in Redding by upgrading SFO 

service to regional jets. Support letters were submitted by 

SkyWest Airlines, participants in the public-private 

partnership and other members of the Redding community.

The letters of support are included on the following pages 

of this Appendix A and are listed below.

Airline

SkyWest Airlines

Public-private partnership

City of Redding

Economic Development Corporation of Shasta County 

Government

California State Senate, Senator Ted Gaines

California Legislature, Assemblyman Brian Dahle

Shasta County

City of Anderson

City of Shasta Lake

Businesses and Organizations

Bethel Church, Bill Johnson

Bethel Church, Brian and Jenn Johnson

Bethel Church, Kris Vallotton

Bethel Church, Stephen De Silva

Redding Bank of Commerce

Shasta Regional Medical Center

Sierra Pacific Industries

The Fly Shop

This section addresses: 

Letters of support from SkyWest Airlines,

members of the public-private partnership, the 

local business community, and 

state government. 



“ ”

July 28, 2014 

Ms. Brooke Chapman 

Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave., SE W86-307 

Washington, DC 20590 

RE: Docket DOT-OST-2014-0113 

Dear Ms. Chapman, 

I am writing in support for the air service proposal detailed in the Small Community Air Service 

Development Program grant application submitted by the City of Redding. The Redding Municipal 

Airport is critical to providing support to business, government, education and leisure travel to and 

from the region. Our community is in need of improved air service. The proposal to assist with the 

cost associated with Skywest’s transition from the 30-passenger EMB-120 Turboprops to 50 passenger 

CRJ-200 regional jets is essential in retaining passenger service at Redding Municipal Airport. 

Shasta EDC recognizes that access to air services enhance the region’s competitive edge for business 

attraction, expansion and retention. Support of enhanced air service and assisting in Redding 

Municipal Airport’s expansion project has been an ongoing element of our business plan. The City of 

Redding and the entire region benefit when businesses can conveniently and cost-effectively transport 

executives and staff, and have greater access to clients. 

Thank you for your consideration. 

Sincerely, 

Mark Lascelles 

President 

(T) 530.224.4920

(F) 530.224.4921

www.shastaedc.org

410 Hemsted Drive

Suite 100

Redding, CA 96002