1 

# Proposal

Ogden City Corporation, Utah

United States Department of Transportation

Office of Aviation Analysis

Small Community Air Service Development Program

Application under the:

- Wendell H. Ford Aviation Investment and Reform Act for the 21 st Ce ntury (AIR

- 21)

As Reauthorized by the:

- Vision 100

- Century of Aviation Reauthorization Act

Proposal Sponsor: Ogden City Corporation

Contact : Mr. Royal Eccles

Airport Manager

Ogden

- Hinckley Airport

3909 Airport Road

PO Box 1 8 49

Ogden

, Utah 8 4 405

Docket : DOT

- OST

- 2011

- 0 119

Date: August 2 , 20 1 12 SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET OST

- 201 1

- 0119

SUMMARY INFORMATION FOR OGDEN CITY CORPORATION :

A. Applicant Information:

Not a consortium. No previous SCASDP grant

.

B. Public/Private Partnership:

Public: Private:

1. Ogden City Corporation 1. Ogden Weber Chamber

2. Ogden Economic Development 2. Frontier Airlines

3. Ogden

- Weber Convention/Visitors Bureau

(Collectively the Ogden community)

C. Project Proposal:

__X__ Marketing

__ ____ Upgrade Aircraft

__ X__ New Route

__ _

__ Travel Bank __X

__ Service Restoration

__ X

__ Subsidy

__ _

__ Surface Transportation

__ _

__ Regional Service

__ X__ Revenue Guarantee

__X__ Launch New Carrie r __X__ Start

- Up Offset Cost

______ First Service

__ _

__ Study

__ _

__ Secure Addt ’ l Service

______ Other

D. Existing Landing Aids at Local Airport:

_X Full ILS _X _ Outer /Middle Marker ____ Other

_X _ Localizer _X _ Published Instrument Appro ach

E. Project Cost:

Description Sub

- Total Total Amount

Federal Amount Requested $6 00,000

State cash financial contribution $0

Local cash financial contribution

Airport cash funds $0,000

Non

- Airport cash funds $ 2 00,000

Total local ca sh funds $ 2 0 0,000

TOTAL CASH FUNDING $ 2 0 0,000

In

- kind contribution

Airport In

- kind contribution $ 10 0,000

Other In

- kind contribution $ 10 0,000

TOTAL IN

- KIND CONTRIBUTION $ 2 00,000

TOTAL PROJECT COST $ 1,0 0 0,0003 F. In

- Kind Contributions :

Airport In

- Kind Contribution: Waiver of landing fees, terminal rents and other use fees

Other In

- Kind Contribution: Marketing and Advertising support

G. Is this application subject to review by State under Executive Order 12372

Process ?

___ a . This application was made available to the State under 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.

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

H. Is the Applicant Delinquent on any Federal Debt?

_ X _ No

___ Yes (explain)4 TABLE OF CONTENTS

Subject Page

Executive Summary 1

Introduction 5

Major Issues 7

Role of the Ogden Airport 7

Factors That Have Affected Air S ervice 8

Catchment and Community Profile 8

Market Analysis 11

Potential Passengers 13

Potential Air Service 14

Proposed Fares 15

Passeng er and Revenue Forecast 15

Action Plan for the Ogden Airport 16

Public

- Private Partnership 16

Project Goals 16

Action Plan Elements 16

Marketing Program 16

Target Audience 16

Marketi ng and Media Select ion 17

Total Incentive Pack age 17

Sponsor Participation 17

P erformance Measurement 18

Recru itment of Air Service 18

Mar keting and Media Plan 18

Air Service Performance 18

Community Support 18

Assura nces 1 9

Appendix A

- Letters of SupportOgden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

1 EXECUTIVE SUMMARY

For purposes of this executive summary, we have identified and summarized the

bulleted and chec ked items directly from the 2011 Order to ensure a comprehensive,

competitive r esponse. The Order says our application should help communities secure

air service enhancements that will be responsive to their air transportation/air fare

needs on a long

- term basis after the financial support of the grant has ended.

Specifically

, the O rder identifies the following items and our response follows each.

1. Promoting awareness among residents of locally available service.

Government and business teaming for i nformal air service recruitment efforts were

initiated some years ago and con tinue to today in the Ogden community

. These on

going air service and economic development efforts represent almost every local

constituency, and fully meet the intent and spirit of a public

- private partnership.

2. Attracting a new carrier through revenu e guara ntees or operating cost

offsets.

As you will read in this application

, the Ogden c ommunity is supporting this ai r service effort by providing $ 4 0 0,000 worth of support. Ogden City Corporation has

already spend in excess of $ 5 0,000 to obtain schedule d air service.

3. Attracting new forms of service, suc h as on

- demand air taxi service

. While the Ogden community is herein intending to attract scheduled air carrier

service and this application is written to seek support to make that happen, we

believe n on

- scheduled charter activity will continue to be a n important part of the

airport ’ s suite of services

. 4. Offering an incumbent carrier financial or other incentives to lo w er its

fares, increase its frequencies, add new routes, or deploy more suitable

ai rcraft, including upgrading its equipment f rom turboprops to regional

jets.

Although the Ogden

- Hinckley Airport does not have an incumbent carrier, we

propose to add a new route in cooperation with an existing carrier , Frontier Airlines

. 5. Combining traf fic support from surrounding communities with regionalized

service through one airport; or p roviding local ground transportation service

to improve access to air service to the community and the surrounding area.

The Ogden

- Hinckley Airport is increasingl y becoming an important part of the ability

of our business community to remain competitive and for the citizenry ’ s local

access to the national air transportation system. The Ogden community believes

that the airport

, in this regard

, will only increase in scope and role. There are

several cities, towns, and counties within the catchment area and leakage from the

northern Salt Lake metro area is expected.

In addition, the Order notes these as important:

6. A description of the community's existing air se rvice

. A detailed description m ay be found in the P roposal section of this application.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

2 7. A synopsis of the community's historical service

. A detailed description may be found in the P roposal section of this application.

8. A description of the communi ty air service development efforts over the

past f ive years and the results of those efforts

. A detailed description may be found in the Proposal section of this application.

9. A description of the community air service needs or deficiencies.

A detailed description may be found in the Proposal section of this application.

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

Program, including:

The Action Plan for the Ogden Airport contains the strategic plan

. (1) Clea r identification of the target audience of each component of the

proposed transportation initiative, including all advertising and promotional

efforts.

The target audience for this appl ication is the Denver

- bound /connecting traveler

based upon our recent air service market analysis

. The primary reason for

working through Denver

, as pr oposed

, is for its connecting ability

. Advertising and

marketing is contained in the A ction P lan section

. (2) A realistic timetable for implementation of the grant project.

As outlined in the Action Plan section

, initiation of the service would begin as soon

as the service is funded with the SCASDP grant and coordinated with the airline

. (3) An explanation of how the service will become self

- sufficient.

As outlined in the Action Plan secti on

, self sufficiency is demonstrated with a

market load factor and yield

. Advertising, promotions, and a public relations

program are all part of the marketing program to support the service.

( 4 ) A clear outline the goals and objectives sought to be achi eved.

The goal is to bring low

- cost scheduled air service to the Ogden community from

Denver International Airport

. 11. A description of any public

- private partnership that will participate in the

project.

Ogden City Corporation and the Ogden business community (the public

- private

partnership) represent pub l ic and private local interests in this regard. Other

surrounding counties will also benefit and may be asked to participate in the future.

12. A detailed description of the funding necessary for implementation of the

service, including the federal and non

- federal contributions.

The grant amount requested is $ 6 00,000 while airport and community cash an d in

kind contributions total $ 4 0 0,000 for a total proposal amount of $ 1,0 0 0,000. More

details are f o und in the Action P lan section.

13. An explanation of how the community will ensure that its own funding

contribution is spent in the manner proposed.

Ogden City Corporation will ensure that funds are spent timely and wisely.

Explanation is found in the Performance Measurement section.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

3 14. A description of how the community will monitor the progress of the grant

project and the identity of critical milestones to be met during the life of the

grant.

A description of our responsiveness in this regard found in the Performance

Measurement section.

15. A description of how the community plans to continue with the project if it

is not self

- sustaining a f ter the grant award expires.

We believe that we have prepared a very strong proposal for DOT considerat ion.

The Ogden community will commit to $ 4 0 0,000 in local funds, of which $ 2 0 0,000 is

local cash. The Ogden Community is committed to the six

- month start up period and

our estimates of demand herein show potential for a substantial increase in demand

as t he market matures.

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

Ogden City Corporation with minimal assistance from the business community and

substantial assistance from the Airport Manager and outside consultants will

a dminister the grant and the activities outlined in the Action Plan section

.

Finally , the Order indicates that priority will be given to those applicant s who

competitively answer these inquiries:

17. Air fares are higher than the national average air f ares for all communities;

Given that no scheduled service exists , this question does not apply

. 18. T he community or consortium will provide a portion of the cost of the

activity from local sources oth er than airport revenue sources.

The Ogden community propose s to provide $ 4 0 0,000 of cash and in

- kind

funding for the proposed service over a year ’ s period

. 19. T he community or consortium has established or will establish a public

private partnership to facilitate ai r carrier service to the public.

The Og den community (the public

- private partnership) is establis hed and has

engaged air service recruitment efforts and strategies.

20. T he assistance will provide material benefits to a broad segment of

the traveling public, including business, educational ins titutions, and

other enterprises, whose access to the air system is limited.

We expect that the grant will be used to establish a new profitable route for a

air carrier, a new way for the resident s of the Ogden, Weber County and the

surrounding counties (catchment area) to connect to the world ’ s air

transportation system and provide for a substantial economi c benefit to

residents and businesses

. Several educational institutions exist within the

catchment area, including as Weber State University with more than 24, 000

student population . Hill Air Force Base is within Weber County with more than

22,000 military and civilian assignments.

21. T he as sistance will be used in a timely manner.

The Ogden community anticipates that assistance will be drawn on a mon thly

basis until exhausted.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

4 22. T he relative s ize of each applicant community.

As can be seen in the Major I ssues section of this application, w e are a community

with a relatively moderate number ( 700 ,000) o f citizens, fitting the spirit and intent of

th e Small Community Air Service Program.

23. T he geographic location of each applicant, including the community's

proximity to larger cent ers of air service an d low

- fare service alternatives.

Ogden is approximately 38 miles north from Salt Lake City , separ ated by a

congested Interstate 15 drive.

24

. W hether the community's proposal, if successf ully implemented, could

serve as a work ing model for other communities.

N ot only do we believe that this model will be successful

, but believe variants of

this mode l have been successful elsewhere. We hope to refine and improve upon

previous business models and share that information with those to follow.

2 5 . C urrent demographic indicators for the community, such as populatio n,

income and business activity.

The Maj or Issues section contains this information.

2 6 . T he community's demonstrated commitment to and participation in

the proposed grant proj ect.

The Ogden community is committed to attracting an air carrier and we believe the

service will be sustainable give n the market analysis conclusions reached in

upcoming p ages.

2 7 . T he grant amount requested compared with total fund s available for all

communities.

The Ogden community believe s that our proposed assistance figure is large enough

to be effectual but small enough to make us competitive given the $15 million in

available assistance this year

. 2 8

. T he proposed federal grant amount requested compar ed with the local

share offered.

The Ogden community believe s that our proposed share is comparable to what may

be found in other competitive applications.

Note: P age six of the Order specifies that communities without existing air service must

be able to demonstrate the ability to meet certificate requirements. The Ogden

community understands that certificate i n this instance refers to:

FAR Part 139. The Ogden

- Hinckley Airport is currently certified pursuant to this

regulation and for all practical purposes operates as a Class I commercial service

airport.

FAR Part 121/135. Our partner for purposes of this a pplication, Frontier Airlines, is a

certificated airline pursuant to Part 121. Given that the Ogden

- Hinckley Airport

received commercial service in its past , environmental issues are addressed.

TSA 1542. Although the Ogden

- Hinckley Airport does not current ly have an Airport

Security Plan, in

- house and consultant assistance is ready to prepare the plan in an

expedited manner. Coordination with TSA has already been completed.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

5 PROPOSAL OF OGDEN CITY CORPORATION

Introduction

The Ogden community has for a nu mber of years been preparing the Ogden

- Hinckley

Airport (OGD ) to be the commercial airport for the northern Utah , a market catchment

ar ea of approximately nearly 700 ,000 people.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

6 This catchment area includes Weber and Davis Count ies and several smaller

sur rounding counties . T he catchment area comprises approximately 33 % of the

economic base of the Wasatch Front. Sabre MIDT data indicate that 17 % of the

originating passengers from the Wasatch Front are from Weber and Davis c ount ies

alone

, with a population o f 52 5,000.

Community leaders believe that commercial service with jet equipment to key markets

in the west will help to continue the development of area business. To add new air

service at Ogden

- Hinckley Airport, the airlines need to view Ogden

- Hinckley Airport as

bein g more beneficial to their long

- term goals than other airports. Airlines are seeking

route profitability, good facilities, community support, available resources for long

- term

improvem ents, and limited competition. Initial or short

- term i nce ntives such as reduced

fees, free rents, and promotional funds will be necessary to attract new air service.

New commercial air service at the Ogden

- Hinckley Airport will produce new jobs and

bring revenue to the community. Revenue from new air service wi ll create visitor

expenditures at hotels, restaurants, car rentals, and local shops. The Airport will receive

new fees in the form of terminal rents, landing fees, fuel flowage fees, a nd passenger

facility charges. The new airline will purchase fuel, suppl ies, and crew meals. All of

these expenditures will translate into new jobs.

Eight other airports in the west, serving cities approximately the same size or smaller as

the Ogden

- Hinckley Airport market, average 28 jet flights and 17 commuter flights per

da y. The top twenty air markets for Salt Lake City International Airport (SLCIA) have

historically accounted for approximately 60% of the total passengers for the Airport.

Fourteen of these top 20 markets for SLCIA are located in the western states. It is

ex pected the same trend will hold true for Ogden

- Hinckley Airport as its market

matures.

The Ogden

- Hinckley Airport market is a significant part of the total SLCIA market. The

Ogden

- Hinckley Airport market area has 29% of the population and 30 % of the

house holds for the entire region. A weighting of these economic indices gives the

Ogden

- Hinckley Airport market area a 29 % share of the total air travel market.

Based on Sabre MIDT data for the Ogden Airport market area, the current passenger

potential to al l points in the United States is nearly 1 million annual passengers.

The passenger forecast for Ogden Airport indicates that there is a large enough

demand to support daily jet flights to DEN, LAS, LAX, PHX, SFO and SEA. Utilizing

fares comparable to the average fares at SLCIA , flights to Denver, Los Angeles

, Phoenix, Portland/Seattle, and Las Vegas are projected to be profitable wi th standard

twin jet aircraft. Service to and from Los Angeles will be very attractive for the

international market and servi ce to Denver will be very attractive for customers

connecting to the mid west, east, or southeast.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

7 Today, catchment area passengers must drive to SLCIA on a congested Interstate 15,

and the drive can take as much as an hour or more depending on traffic cond itions and

the origin of the drive.

Major Issues

Due to drastic shifts in the commercial aviation business model, the air traveler in the

United States has had to endure a much longer transit time through airports, higher load

factors and poorer service o n the airlines. A reduction of flights and seats to many

markets has occurred a capacity is managed and demand increases

. Security

measures implemented after 9/11 often require air travelers to arrive at an airport two

hours in advance of departure for dom estic flights and three hours in advance of

departure for international flights. Travelers ticketed on commercial air carriers located

at hub airports have increasing ly endured longer lines for checking in, checking

baggage and for passing through the sec urity gates.

To remain competitive and profitable, airlines continue to cut costs through reducing

employee wages/benefits, staffing levels and discontinuing non

- performing routes

. Morale issues with remaining airline staff have impacted customer service levels with

the traveling public. Several carriers have exited the industry, while mergers and

takeovers have affected other major service providers (i.e.

- Delta/Northwest;

Republic/Frontier, etc.). Industry consolidation has been expected for some time but

seems to be just now gaining momentum while increasing passenger loads continue to

strain capacity and profitability even in the current economic uncertainty.

With new marketing strategies to retain market share, increase revenue and enhance

brand recogn ition, commercial air service providers are opting to expand ai r service to

smaller airports. This program makes it easier for the air traveler that lives or works near

these smaller airports to more easily reach business or personal destinations and also

reduces the congestion at the major airports by spreading out the passengers and

flights to other airports.

The Role of Ogden Airport

The Ogden

- Hinckley Airport is currently a general aviation airport and a commercial

service alternate for SLCIA . The Ogd en

- Hinckley Airport fits the classic role of a satellite

airport. The Ogden

- Hinckley Airport is sponsor ed , owned and operated by Ogden City.

The Airport's budget is approved by the City and any annual deficient is made up solely

by the City. As such, any " In

- k ind" contributions made by the Airport toward this grant

request are a subsidy of the City. Ogden

- Hinckley Airport is managed by an Airport

Manager that reports to the City Department of Public Works.

The Ogden

- Hinckley Airport is designated a Part 13 9, Class I facility. Ogden

- Hinckley

Airport has completed major improvements to its runways and apron s. The Ogden

Hinckley Ai rport presently accommodates charter operations, small cargo, air taxi

operations, general aviation, aircraft storage, and aircraft maintenance and repair.

Ogden

- Hinckley Airport abuts Interstate 15

, giving it easy access to all communities inOgden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

8 the catchment area.

The primary runway is 8,103 feet long by 150 feet wide with high intensity lighting, a

1 52 ,000 pavement strength rating, I LS and GPS approach es

, along with a n Air Traffic

Control Tower and Radar coverage . These are the necessary aviation infrastructure

items to safely accommodate airline traffic. Initially, passengers will utilize the existing

terminal building ; with check

- in counters for airlines, a departure lounge with security

and a common baggage claim area all exist within the building. Discussions with TSA

regarding space, security equipment and personnel have already occurred and await a

carrier. Parking and rental car s are currently available right in front of the current

terminal.

Factors That Have Affected Air Service

Ogden

- Hinckley Airport does not have sc heduled passenger air service. SLCIA , in the

past, has been able to meet the air travel needs o f the Northern Utah residents. In the

past few years getting to and using SLCIA has become difficult and time consuming due

to Interstate 15

.

The development of a n alternative commercial service airport north of the Salt Lake City

metro market would help eliminate conge stion and lost time for air travelers. Ogden

Hinckley Airp ort is the ideal location for such a facility

. T he Airport has infrastructure that

can accommodate standard , scheduled service, twin jet aircr aft

. The Ogden

- Hinckley

Airport has a publicly owned ter minal building that can accommodate commercial air

service with minor modifications, some of which have already been initiated

. The

Ogden

- Hinckley Airport reserves land that can accommodate a new, multi

- gate modern

terminal when passenger demand is suffici ent

. The current Airport Master Plan

anticipates , and focuses on this possibility.

The Air Service Market Study indicates that the catchment area for Ogden

- Hinckley

Airport is large enough to support passenger air service to major hub markets. Airport

M an agement has upgraded the Ogden Airport to meet the operational requirements of

the commercial airlines in anticipation of service . Based on other metro areas with

multiple airports, the Ogden

- Hinckley Airport is well located in the Salt Lake metro area

and should be attractive to the travelers in its region and allow the airlines the ability to

operate either regional jets or standard twin jets.

Catchment Area and Community Profile

The Ogden

- Hinckley Airport is a convenient airport for the residents of nor thern Utah,

Weber and Davis counties and five counties due north. The primary Ogden

- Hinckley

Airport catchment area encompasses a population of approximately 700,000 in 218 ,000

households.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

9 County Population 2000 2009 Growth

Davis 238,994 30 0,827 25

. 9 %

Morgan 7,129 9,908 25.0%

Weber 196,533 231,834 18.0%

Box Elder 42,751 49,902 16

. 7 %

Cache 91,391 115,269 26.1%

Rich 1,691 2,160 1 0

. 1 %

Sum m ary 578

, 759 708

, 900 22

. 4 %

Total retail sales in 2009 for the primary catchm ent area approximate $ 9

. 1 billion.

County Households Sales ($ 000 ) Buying Income ($)

Davis 91

, 932 3,803,453 5,856,600

Morgan 2,637 91,041 167,280

Weber 74,940 3,226,560 3,931,980

Box Elder 15,148 632,856 733,920

Cache 33,438 1,3 39,523 1,584,752

Rich 749 13,577 38,605

Summary 218,835 9,107,013 12,322,137

Weber State University is a strong sour ce of air travel for the catchment area. The

University currently enroll s of 24

, 000 students who come from all over the United St ates

and from foreign countries. The University has a large demand for business travel,

sports charters, individual student travel, and v isiting friends and relatives. Other major

employers include: IRS, McKay

- Dee Hospital, Weber County School District, Au toliv,

Weber State University, Convergys, Fresenius, Ogden City School District, State of

Utah and Weber County

Employment Sector Percent of Total

Mining 0. 19 %

Construction 8.00 %

Manufacturing 12.86 %

Trade, Transportation and Utilities 1 7. 54 %

Information 1.10 %

Financial 4 .8 0 %

Professional and Business Services 11 .3 8 %

Education, Health and Social Services 11.39 %

Leisure and Hospitality 8.53 %

Other Services 2.99 %

Government 21.21%

Summary 100%Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

10 The Ogden

- Hinckley Airp ort is a tourism gateway . There are three ski areas,

Snowbasin, Wolf Creek and Power Mountain that are within thirty minutes of the Ogden

- Hinckley Airport. When trying to plan the perfect Utah family vacation, there is no better

destination than Ogden

. Wi th the beauty of the scenery, diversity of the activities, and

abundance of family attractions including: skiing, hiking, horseback riding, fishing,

rafting, and biking. Approximately 2,6 00 hotel ro oms exist in the City with rates ranging

from $5 9 to $3 2 5 per night

.

Ogden is home to Hill Air Force Base and the Ogden Air Logistics Center. The Air Force

Base is a material command base and is the third largest employer in Utah, excluding

State and Edu cation employment. There are more than 22,000 military and civilian

personnel assigned. The Logistics Center provide s worldwide engineering and logistics

management for the F

- 16 Fighting Falcon, A

- 10 Thunderbolt II, Minuteman III

intercontinental ballistic missile platforms. Depot maintenance is performed for the F

- 16,

A

- 10 and C

- 130 Hercules aircraft.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

11 MARKET ANALYSIS

The Ogden

- Hinckley Airport market area exhibits the characteristics of other successful

satellite airports like Orange County and Burbank:

· The catchment area is experiencing positive economic growth, and citizens and

businesses in the area are seeking a more convenient way to travel by commercial

airline than the major airport

.

· There is highway congestion from the market area to the major air port and this

creates long er driving times , extra hassl e and adds to area pollution

.

· The major airport suffers from long lines and long waits to process through the

security area.

· Lower fares to regional markets can be obtained at the satellite airports.

Given a mature air service market along with the primary catchment area

demographics , the Ogden

- Hinckley Airport can effectively accommodate a substantial

number of passengers and markets. Other mature market satellite airports , like

Colorado Springs for e xample, have a number of daily non

- stop departures.

Community Population Non

- Stop Markets

Ogden , UT 673,000 0

Colorado Springs, CO 608,510 9

Boise, ID 594,960 17

Eugene, OR 343,960 8

Grand Junction, CO 137,700 6

Idaho Falls, ID 166,070 5

Spokane, WA 468,000 14

Reno, NV 453,400 13

Almost all of the catchment area passengers (7 2 %) are using SLCIA. Based upon

Sabre MIDT data, the catchment area generates more than 2,100 daily passengers or

nearly 77 0,000 annual passen gers

.

Given that Ogden

- Hinckley Airport does not currently have scheduled air carrier service,

SLC IA data from Sabre MIDT data were used to infer potential market share . The table

on the following page shows 2118.9 average daily SLC IA enplanements origin ating

within the Ogden catchment bound for all destinations.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

12 

### Outbound Outbound

Rank Market Psgrs. Rank Market Psgrs.

1 LAX 142.6 26 ONT 22.3

2 LAS 133.2 27 BOS 21.7

3 PHX 128.9 28 BWI 21.4

4 SEA 85.4 29 GEG 20.8

5 BOI 55.4 30 COS 19.9

6 PDX 55.3 31 IAH 19.4

7 SNA 53.1 32 OKC 18.1

8 DCA 47.5 33 VPS 17.6

9 MCO 45.4 34 PHL 17.5

10 DFW 45.1 35 SFO 16.9

11 SAN 43.0 36 MCI 15.7

12 OAK 41.2 37 FLL 15.6

13 ATL 36.1 38 IAD 14.8

14 DEN 35.6 39 SJC 14.7

15 SLC 35.0 40 JFK 13.2

16 ABQ 31.4 41 MIA 12.9

17 SAT 31.0 42 MSY 12.8

18 RNO 29.7 43 MDW 12.6

19 ORD 29.0 44 CVG 12.0

20 DAY 26.9 45 TPA 11.8

21 TUS 26.2 46 SBA 11.2

22 DTW 26.1 47 CMH 11.1

23 MSP 25.3 48 HNL 10.6

24 SMF 25.1 49 ANC 10.2

25 STL 23.5 50 CUN 9.7

Sub-Total 1,641.5

Other 477.4

Total 2,118.9Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

13 Potential Passengers

An annual number of passengers for the potential Ogden market can then be calculated

from the select city

- pair market s from the Sabre data . B oth Denver and Los Angeles are

summarized as they are the most desirable from the sponsor ’ s perspective.

Because of either hub ’ s connection ability, additional city

- pairs were included in the

potential passenger counts. It is not reasonable to assume tha t the service will capture

the entire market; an 80% share of the market is assumed for the Denver route and a

1 0% share is assumed to conn ecting cities in most instances.

Denver was analyzed because of its ability to connect points east. As can be seen

below connecting passengers in Denver outnumber those bound for Los Angeles.

Denver Ou t bound Passengers Load Total Pax

OGD

- DEN 12,994 51,980 80% 41,584

OGD

- WAS 17,338 69,350 10% 6,935

OGD

- MCO 16,571 66,280 10% 6,630

OGD

- DFW 16,462 65,850 10% 6,585

OGD

- CHI 15,184 60,730 10% 6,075

OGD

- ATL 13,177 52,700 10% 5,270

OGD

- ABQ 11,461 45,840 10% 4,585

OGD

- SAT 11,315 45,260 10% 4,525

OGD

- DTW 9,527 38,110 10% 3,811

OGD

- NYC 9,490 37,960 10% 3,795

OGD

- STL 8,578 34,310 10% 3,430

OGD

- PHL 6,388 25,550 10% 2,555

OGD

- MCI 5,731 22,920 10% 2,290

OGD

- FLL 5,694 22,770 10% 2,280

OGD

- Other 174,000 696,000 5% 34,800

Total 711,100 135,150

Los Angeles Ou t bound Passengers Load Total Pax

OGD

- LAX 52,050 208,200 80% 166,560

OGD

- SNA 19,380 77,520 20% 15,500

OGD

- SAN 15,695 62,780 10% 6,280

OGD

- TUS 9,565 38,260 10% 3,820

O GD

- ONT 8,140 32,560 20% 16,280

OGD

- SBA 4,090 16,360 10% 1,630

OGD

- HNL 3,870 15,480 10% 1,550

OGD

- Other 11,300 45,200 5% 2,260

Total 496,360 2 13,880Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

14 Based on the se potential passen g ers Denver and Los Angeles seem to present the best

opportunity. Both of these markets are prime candidates for new air service and would

need the incentive package to support t he recruitment of air service.

P otential airlines and markets are as follows:

DEN: Frontier, United DFW: American SFO: United, Southwest

LAX: Southwest, United OAK: Southwest SEA: Alaska

LAS: Allegiant; Southwest PHX: USAir, Sun Country, Allegiant

A decision was reached to solicit Frontier Airlines from their Denver hub. This route has

a fantastic potential for success because it has mo re potential direct passengers than

any other c ity . T he community wishes a low

- cost carrier and because Frontier ’ s

op eration at Denver offers easy

, one

- stop flights to t he eastern, southern and northern

US along with the potential for international flights.

Potential Air Service

Ogden City and Frontier representatives met at the recent J umpstart Conference to

discuss t he proposal. Frontier route planning staff indicated a willingness to investigate

the proposal and Ogden City representatives will again meet with Frontier Airlines staff

to flesh out details. Ogden feels that Frontier is supportive of the proposal, but si mply

needs a bit more time to finalize market planning. Frontier Airlines has provided a

support letter found in the Appendix following this narrative.

To determine the revenue guarantee that may be needed, the Ogden

- Denver market

was analyzed

. It is esti mated that it will take approximately 50,000 annual origin and

destination passengers to support two daily round trip flights pe r day with E

- 190, 99

seat jet equipment.

Both Frontier and Ogden agree that there will be a ramp

- up period of p assengers and

re venue until Frontier reaches its full market share. In this instance, it is assumed that

the ramp

- up period will take approximately six months.

Below is a sample schedule that will meet local needs as well as connecting needs.

POTENTIAL FLIGHT SCHEDULE

Non

- Stop Market Depart Arrive Aircraft Frequency

Ogden

- Denver 6 :15 a m 7 :2 5 a m E

- 190 Daily

Denver

- Ogden 6:05 pm 7:15 pm E

- 190 Daily

Ogden

- Denver 9 : 15 a m 10:25 a m E

- 190 Daily

Denver

- Ogden 3:50 pm 5:00 pm E

- 190 DailyOgden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

15 Proposed Fares

Because many of the passengers on this new route are expected to be connecting,

special attention will be required to make sure that the fares are competitive and that

times are coordinated with Denver banks

. Fares to Denver will need to be competitive

wi th SLC IA in order to attract passengers and develop the passenger base.

Passenger and Revenue Forecast

Prudent planning for this proposal suggests that Ogden will have a conservative

penetration rate for the planned four daily f lights

. It is estimated th at Frontier will achieve

a 50% load factor in the first month and increase five percentage points until it reaches

a 75% load factor in month six. This assumption is ba sed on expe rience at other

markets in the w est which have introduced new service to an a irport that did not

previously or recently have air service. Based on these ramp

- up assumptions and small

increase s in fares through the start up period, it is estimated that the airline will achieve

80% market penetration in the Ogden

- Denver r oute followi ng month nine and reach a

near break

- even point.

SUBSIDY REQUIRED FOR NINE MONTHS OF OPERATIONS

Month Load Fare Pax. Revenue Expense Profit(Loss) Cumulative

1 35 $69 2,079 $143,451 $396,000 ($252,549) ($252,549)

2 40 $69 2,376 $163,944 $396,000 ($232,056) ($484,605)

3 50 $79 2,970 $234,630 $396,000 ($161,370) ($645,975)

4 50 $89 2,970 $264,330 $396,000 ($131,670) ($777,645)

5 55 $89 3,267 $290,763 $396,000 ($105,237) ($882,882)

6 55 $109 3,267 $356,103 $396,000 ($39,897) ($922,779)

7 60 $119 2,640 $314,160 $396,000 ($81,840) ($1,004,619)

8 65 $129 2,860 $368,940 $396,000 ($27,060) ($1,031,679)

9 70 $139 3,080 $428,120 $396,000 $32,120 ($999,559)

During the start up phase, it is estimated that the Ogden Community will need a

revenue guarantee of $ 999

, 559 to cover initial nin e

- month operating losses. On an

annualized basis, the new route is pro jected to produce $4,767 ,000 in passenger

revenue . O perating costs are estimated to be $4,7 52 ,000

, resulting in an operating

profit for service. Note that the 38

, 049 passengers generated under this scenario are

s ubstantially less than the 135

, 1 40 potential passengers noted on the previous page

and about equal to the potential passenger count just t o Denver

.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

16 ACTION PLAN FOR OGDEN AIRPORT

Public

- Private Partnership

The Ogden

- Hinckley A irport is administered by the Ogden City Corporation through its

Airport Manager , Mr. Ed Rich

. The Ogden

- Weber Chamber and its members constitute

the private portion of the Partnership. M embers of the Chamber are key leaders from

the major businesses in th e Ogden area. Both the City and the Partnership know that

continued economic development depends on scheduled air service with connecting

flights

.

The Partnership is committed to completing th e following Action. The Airport Manager

will administer this pr ogram under the direction of the Partnership . T he Airport Manager

and staff of the Ogden

- Hinckley Airport will execute all federal grant offers and process

all associated reimbursement requests.

Project Goals

The goal of the Partnership is to establish scheduled air service with Frontier Airlines to

the Ogden

- Hinckley Airport

. S cheduled air service will allow the community to better

compete for new business and allow the businesses, industry , government

organizations and the community as a whole to signi ficantly reduce the amount of travel

time and hassle required.

Action Plan Elements

The goal of the Action Plan is to address issues associated with the proposed air

service that are critical to the long

- term success of that service. In this regard, thi s

Action P lan will address these elements for the Ogden

- Hinckley Airport:

1. Recruit new air service for Ogden from Frontier Airlines.

2. Market, promote, and support new air service ; spread the word around the

catchment area

. 3. Secure a dditional revenue to supp ort airline service

.

Marketing Program

The advertising, promotions, public relations program are all part of the marketing

program to support new air service. The target market for the Ogden

- Denver service is

the business and leis ure traveler. N ew market ing dollars will be spent in the Salt Lake

and Ogden area s. The marketing in the Ogden area will include advertising, promotions,

and public relations in the local community. These mediums will be combined in a

campaign to introduce the new air service.

T arget Audience

The target audience for the new air service is the business and leisure traveler. The

most effective way to contact this customer is by targeting the consumer at a critical

time. All of these targets can be approached utilizing the same adv ertising media. For a

market like Ogden and the Salt Lake City metro area, the use of television, radio,Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

17 newspaper, and outdoor are the best media. Even though television is the best media

for reaching the leisure market, the small amount of air service that will be offered

makes televis ion not a sub

- optimally cost effective media. The Ogden Community will

find that a combination of local radio, newspaper, and outdoor billboards will be the

most cost effective approach to an advertising program. This shou ld also be

suppleme nted with a direct mail program and a series of press releases.

Marketing and Media Selection

The Ogden

- Hinckley Airport market area can best be reached by using local radio, local

newspaper, outdoor, direct mail, trade publications, an d the internet. Upon review of the

local medium for the Ogden market, the following is proposed

. Run advertisements in

the Salt Lake Tribune, Deseret News, the Standard

- Examiner and on various local radio

stations along with the network affiliate televisio n stations.

The Ogden

- Weber Chamber will coordinate a direct mail program to its constituencies

and to other businesses in the surrounding areas. The development of a promotion with

area businesses with promotional material at the airport will also be un dertaken . A

public relations specialist will be retained to issue press releases and handle press

relations.

Total Incentive Package

In order to attract the air service from Frontier Airlines between Denver and Ogden an

incentive package has been establi shed which would be supportive of their new air

service and reduce the risk of this new air service. The total incentive pack age

developed herein includes: f light guarantees to off

- set initial operating losses

, funds for

marketing and advertising, and w aiv er of certain airport fees.

TOTAL INCENTIVE PACKAGE FOR NEW AIR SERVICE

Category Estimated Cost

SCASDP Grant $6 00,000

Cash Contribution $ 2 0 0,000

In

- k ind Contribution $ 2 00,000

Total Package Costs $ 1,00 0 ,000

Sponsors Participation

Ogden agrees to manage the I n

- kind program and obtain at least $100,000 in trade.

The Small Community Air Service Development grant is proposed to cover $6 00,000 of

the total proposed and the remaini ng $3 0 0,000 in cash shall be used for either further

subsidy or other expenses.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

18 Upon the award of this requested grant, the Partnership is prepared to launch a drive to

sell tickets in advance under a “ travel bank ” program and develop a barter program from

local businesses to fund the marketing, advertising, and public rela tions for the new air

service. The Airport will offer an attractive fee program for the first six months of service.

PERFORMANCE MEASUREMENT

Recruitment of Air Service

Ogden City and Frontier representati ves met at the recent Jumpstart Conference to

discuss the proposal. Frontier planning staff indicated a willingness to investigate the

proposal and Ogden City representatives will again meet with Frontier Airlines staff to

flesh out details. Ogden feels th at Frontier is supportive of the proposal, but simply

needs a bit more time to finalize market planning. Frontier Airlines has provided a

support letter found in the Appendix following this narrative.

Marketing and Media Plan

The Partnership will work with in the community and with a marketing firm to develop a

marketing and media plan to support this new air service. This plan will be shared and

coordinated through Frontier

.

Air Service Performance

The City will need Frontier to provide monthly reports l isting the number of passengers

carried in both directions, the number of flights flown, the passenger revenue for the

month, other revenue for the month, and the cost of the operation. The Partnership will

cover the shortfall of any monthly loss until the grant money has been exhausted. If the

airline achieves profitability earlier than projected, then the cost offset funds will be

either be transferred to supplement marketing and advertising for the air se rvice or be

refunded to the US DO T. If Frontier c ontinues to need some form of incentive after the

grant funds have been expended, the Partnership will continue to provide ma rketing and

advertising for Frontier and the Ogden Airport will continue to offer lower fees.

COMMUNITY SUPPORT

Resolutions supp orting the proposal of Ogden

- Hinckley Airport and letters of support

from Utah ’ s key congressional delegation and state and local lawmakers a re included in

the A ppendices. Various civic and business organizations in the area have also

submitted letters and resolutions supporting this proposal and scheduled air service for

Ogden

- Hinckley Airport and these are included in the A ppendices.Ogden Airport (OGD), Ogden Ci ty Corporation, Utah

2011 Small Community Air Service Development Program

Application Narrative

19 AS SURANCES

Ogden City Corporation hereby provide s the U.S. Department of Transportation with the

following assuranc es:

1. It will comply with all of the applicable Federal laws, regulations, executive

orders, policies, guidelines, and requirements as they relate to the application,

acceptance, and use of the Federal funds for this project.

2. It has legal authority to appl y for the grant, and to finance and carry out the

proposed project; that a resolution, motion, or similar action has been duly

adopted or passed as an official act of the applicant ’ s governing body authorizing

the filing of the application, including all u nderstanding and assurances contained

herein, and directing and authorizing the person identified as the official

representative of the applicant to act in connection with the application and to

provide such additional information as may be required.

3. It h as access to the funds available for that portion of the project costs, which are

not to be paid by the United States government. It has sufficient funds to assure

operating and maintenance of items funded under the grant agreement, which it

will own or c ontrol.

4. It shall keep all project accounts and records which fully disclose the amount and

disposition by the recipient of the proceeds of the grant, the total cost of the

project in connection with which the grant is given or used, and the amount or

natu re of that portion of the cost of the project supplied by other sources, and

such other financial records pertinent to the project. The accounts and records

shall be kept in accordance with an accounting system that will facilitate an

effective audit in a ccordance with the Single Audit Act of 1984.

5. It shall make available for the purpose of audit and examination, any books,

documents, papers, and records of the recipient that are pertinent to the grant.

6. It will execute the project in accordance with the approved program narrative

contained in the project application or with the modifications similarly approved.

7. It will furnish quarterly reports as required pertaining to the project and activities.