PROPOSAL UNDER THE SMALL COMMUNITY 

AIR SERVICE DEVELOPMENT PROGRAM

Docket #: DOT-OST-2011-0119

Arcata/Eureka Airport

Eureka, California

Legal sponsor:

Humboldt County

DUNS: 143535529

Congressional District: 

CA-01

Contact: Jacquelyn Hulsey

Airport Director

3561 Boeing Avenue

McKinleyville, California 

95519-9358

Phone: (707) 839-5401

Fax: (707) 839-3596

jhulsey@co.humboldt.ca.us


PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Prepared by

TABLE OF CONTENTS

Summary Information...................................................................... 1

Proposal Highlights ......................................................................... 2

Higher than Average Airfares.........................................................................2

Community Cost Contribution ........................................................................2

Public-Private Partnership..............................................................................2

Material Benefits ............................................................................................3

Use of Funds in a Timely Fashion..................................................................3

Air Service Environment ................................................................. 4

Remote Catchment Area................................................................................4

Strong and Diverse Economy ........................................................................5

Air Service – Existing/Historical ..................................................... 7

Existing Air Service........................................................................................7

Historical Air Service......................................................................................7

Past Air Service Development Efforts ............................................................9

Air Service Needs and Deficiencies.............................................. 10

Service Needs to a Second Hub..................................................................10

Unmet Market Demand................................................................................11

High Airfares ................................................................................................11

Strategic Plan – Air Service........................................................... 12

Project Goals ...............................................................................................12

Proposed Air Service ...................................................................................12

Airline Participation ......................................................................................12

Market Analysis............................................................................................13

Alternate Plan ..............................................................................................14

Previous Grant Recipient - New Project and Goals .....................................14

Strategic Plan – Implementation and Funding............................. 15

Public-Private Partnership............................................................................15

Incentive and Support Plan..........................................................................15

Strategic Plan Funding.................................................................................19

Project Continuation and Sustainability........................................................19

Schedule and Monitoring .............................................................. 20

Critical Milestones........................................................................................20

Monitoring Program .....................................................................................21

Appendix A. Letters of Support .................................................... 22

Appendix B. Detailed Market Analysis ......................................... 37
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 1

SUMMARY INFORMATION

A. Applicant Information: 

(Check all that apply)

X

Not a 

Consortium

Interstate 

Consortium

Intrastate 

Consortium

Community now receives EAS subsidy

X

Community (or Consortium member) previously 

received a Small Community Grant

If previous recipient, date of grant: 2004; 

Expiration date of grant: September 14, 2006

B. Public/Private Partnerships: 

(List organization names)

Public Private

Humboldt County

Arcata/Eureka Airport

Redwood Region 

Economic Development 

Commission

C. Project Proposal: 

(Check all that apply)

X Marketing X Start-Up Cost 

Offset

Travel Bank X Secure Additional 

Service

Surface 

Transportation X New Route

X Launch New Carrier Subsidy

Study X Revenue 

Guarantee

Upgrade Aircraft First Service

Service Restoration Other (specify): Regional Service

D. Existing Landing Aids at Local Airport:

X Full ILS X Published Instrument Approach

X Localizer X Outer/Middle Marker

X Other (specify): GPS

E. Project Cost:

Line Description

Sub 

Total

Total 

Amount

1 Federal amount 

requested $480,000

2 State cash financial 

contribution $0

Local cash financial 

contribution

3a. Airport cash funds $5,000

3b. Non-airport cash

funds $69,220

3 Total local cash funds 

(3a+3b) $74,220

4 TOTAL CASH FUNDING 

(1+2+3) $554,220

In-Kind contribution

5a. Airport In-Kind 

contribution ** $37,545

5b. Other In-Kind 

contribution** $73,800

5

TOTAL IN-KIND 

CONTRIBUTION 

(5a+5b)

$111,345

6 TOTAL PROJECT 

COST (4+5) $665,565

F. 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) for each.

Airport: Landing fee waiver; program administration

Other: Marketing; program administration

G. Is this application 

subject to review by 

State under Executive 

Order 12372 process?

c. Program is not 

covered by E.O. 

12372.

H. Is the Applicant 

delinquent on any 

Federal debt? (if “yes”, 

provide explanation)

X No

X
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 2

PROPOSAL HIGHLIGHTS

his grant application for the Arcata/Eureka Airport (ACV) meets the criteria of 

Docket DOT-OST-2011-0119. Humboldt County, the legal sponsor and 

owner/operator of ACV, is requesting $480,000 in federal assistance to 

implement a $665,565 air service initiative.

The project goal is to improve eastbound connections. Improving eastbound 

connections is a top priority of the community. The Strategic Plan, 

nonstop United Express service to Denver, will achieve the project 

goals. The proposed Strategic Plan will improve connectivity and 

increase competition at ACV which will reduce airfares and the need 

to drive long distances to alternate airports to access adequate air 

service and competitive fares.

HIGHER THAN AVERAGE AIRFARES

Since 2001, ACV’s airfares have risen dramatically, 39 percent 

compared to only 12 percent for the state of California and nine 

percent nationally. ACV has a significant fare discrepancy with other 

surrounding California airports, the West region and the national 

average. In 2010, ACV’s one-way average fare was $28 higher than 

California, $30 higher than the West region and $29 higher than the 

US average. 

ACV is losing 24 percent of its traffic base to alternate airports, likely 

more following the loss of Alaska Airlines in April 2011. Lower fares 

and greater service levels are likely the greatest cause of this 

unnecessary diversion. Excessive drive distances to San Francisco 

and Sacramento of five-plus hours, high airfares and lack of 

competing service at ACV drive the need to use alternate airports 

making improving air service, specifically adding eastern connections, a top priority.

COMMUNITY COST CONTRIBUTION

To support this air service initiative, ACV and the community will fund 28 percent of 

the proposed $665,565 Strategic Plan. Non-airport revenue sources will fund 12

percent ($69,220) of the $554,220 cash requirement. This is a strong commitment by 

the local community to be proactive and improve local service.

PUBLIC-PRIVATE PARTNERSHIP

Local businesses and the public-private partnership have the ability to successfully 

implement this project. ACV has partnered with the Redwood Region Economic

Development Commission (RREDC) for purposes of air service development. This is 

T This section addresses: 

• Project goals

• Description of the 

Strategic Plan

• Highlights of the grant 

application

New hub service 

that increases 

eastbound 

connecting 

opportunities is a 

top priority of the 

community. 
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 3

not a new partnership. This public-private partnership has worked 

successfully together for many years partnering on new air service 

initiatives. ACV and the community are committed to the successful 

development of air service at ACV and have a vested interest in the 

successful outcome of this Strategic Plan.

MATERIAL BENEFITS

ACV’s isolated catchment area has a population that exceeds 

140,000. Arcata/Eureka’s strength is through its diverse base of 

businesses and institutions all of which depend on the local airport. 

The Eureka-Arcata-Fortuna Micropolitan area is listed in the top 15 percent in the 

country for economic strength. Humboldt State University, located just minutes from 

ACV, is nationally known and has the largest proportion of out-of-state students of 

any of the California State Universities. Known as the “California’s Redwood Coast”, 

Humboldt County is home to the world's tallest trees and more than 100 miles of 

stunning Northern California coast. The air service improvement plan proposed in this 

grant application will benefit a broad segment of the traveling public, including 

business, educational institutions and tourism.

USE OF FUNDS IN A TIMELY FASHION

The public-private partnership has a solid schedule and Strategic Plan to ensure 

timely use of the funds. An initial meeting was held with the targeted airline in 

anticipation of this grant application, and the Strategic Plan proposal is 

under consideration.

Known as the 

“California’s 

Redwood Coast”, 

Humboldt County is 

home to numerous 

businesses, 

educational 

institutions and 

tourist destinations 

driving the need for 

improved air 

service. 
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 4

AIR SERVICE ENVIRONMENT

CV is a non-hub, commercial service airport located in Humboldt County in 

northwestern California. ACV serves a remote catchment area that is relatively 

isolated and has a very prominent business, education and tourism economy. 

This section provides an overview of the Arcata/Eureka community and its need for 

improved air service and improved connectivity to the east.

REMOTE CATCHMENT AREA

The primary catchment area for ACV includes communities in Humboldt and Mendocino 

counties. The catchment area covers 40 zip codes, with a population of approximately 

140,220 residents. The area displayed in Exhibit 3.1 in blue is the area that ACV should 

ideally serve given drive distances.

From 2000 to 2010, the Humboldt County 

population has grown steadily as people 

continue to be drawn by the quality of life 

offered by the region. Over the next 10 

years, the population of Humboldt County is 

expected to grow an additional seven

percent (source: Woods & Poole 

Economics, Inc.). Air service at ACV must

expand to keep pace with this 

growing community.

While ACV serves the majority of their 

catchment area, 76 percent, 24 percent use 

alternate airports including San Francisco 

International Airport (14 percent) and 

Sacramento International Airport (six 

percent). Excessive drive distances of five 

hours or greater each way to San Francisco 

and Sacramento (Table 3.1) along with high 

airfares and lack of competing service at 

ACV are the key determinates of the need 

to drive long distances to use alternate 

airports making improving air service, 

specifically adding eastern connections, a 

top priority.

A

TABLE 3.1 DRIVE TIMES TO ALTERNATE AIRPORTS

AIRPORT MILEAGE

DRIVE 

TIME

Redding, CA (RDD) 155 2 hr, 57 min

Medford, OR (MFR) 177 3 hr, 12 min

Sacramento, CA (SMF) 299 4 hr, 54 min

San Francisco, CA (SFO) 303 5 hr, 36 min

This section addresses: 

Description of the 

Arcata/Eureka community 

in relation to air service to 

demonstrate the benefit of 

the Strategic Plan to a 

broad segment of the 

traveling public.

EXHIBIT 3.1 ACV CATCHMENT AREA
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 5

STRONG AND DIVERSE ECONOMY

Voted as one of Sunset Magazine’s “Best Places to Live”, the 

Arcata/Eureka community is dynamic and growing. The EurekaArcata-Fortuna Micropolitan area is listed in the top 15 percent in the 

country for economic strength. Foreclosure rates are low, and May 

2011 unemployment was 0.6 percent lower than the California state 

average. All indicators show that Arcata/Eureka is not your typical 

small community and is in great need of improved air service access.

The following subsections discuss local businesses in the community 

and their significant growth, higher education facilities and tourism.

Local Businesses

There are multiple large local employers in Humboldt County with 

high travel needs. Table 3.1 lists a sample of the companies and 

organizations in the Arcata/Eureka area that would benefit from new 

nonstop air service at ACV.

Top growth industries in Arcata/Eureka include Healthcare, Building 

and System Construction and Maintenance, Investment Support 

Services, Management and Innovation Services, Niche 

Manufacturing, and Tourism. Niche Manufacturing has 500 different 

companies in the five-county north coast region with a high 

concentration around Arcata. Humboldt County has the highest 

concentration of the five counties. The north coast region sells 

90 percent plus out of the region, into the US and Europe, and 

require air service to the global marketplace to sell their products. 

The Management and Innovations Service Industry provide 

professional, business-to-business services with 90 percent plus 

export. The industry grew 85 percent in the last 15 years and 

requires air service access to continue to grow.

Other projects of statewide and national significance include the 

completion of a $10 million fiber optic line scheduled for the third 

quarter of 2011 creating full telecommunications redundancy for the 

area. This will lead to greater service and attractiveness to growing 

sectors of the economy. In addition, the new clean energy projects 

have received national attention. Projects include the Shell Wind 

Energy’s Bear River Project and the Schatz Energy Lab’s 

development of the hydrogen powered car. The projects require 

efficient air service access.

Education

The Arcata/Eureka community is the home of Humboldt State 

University (HSU). HSU is nationally known and has the largest 

proportion of out-of-state students of any of the California State 

TABLE 3.1 LOCAL COMPANIES WITH HIGH 

TRAVEL NEEDS

COMPANY/

ORGANIZATION

Humboldt State University

Humboldt County

St. Joseph Health System

Redwoods Community College District

Mad River Community Hospital

Hoopa Valley Tribe

Sun Valley Group

Pacific Gas & Electric

Blue Lake Casino and Hotel

Bear River Casino

Cher-Ae Heights Casino

Schmidbauer Lumber Company

Coast Seafoods

Pacific Choice Seafoods

Cypress Grove Chevre

Tomas Jewelry

Holly Yashi Jewelry

Green Diamond/California Redwood Co.

Lost Coast Brewery

Wing Inflatables

Kokatat

Carlson Wireless

C. Crane Company

Jessicurl

Marimba One

Dell‘Arte

Fire & Light Originals
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 6

Universities. HSU’s annual contribution to the Humboldt County economy is estimated to 

be approximately $216 million annually. Their Small Business Development Center 

(SBDC) program directs the California SBDC program by the US Small Business 

Administration. There are over 100 SBDC locations in California with a total budget of 

$20 million with HSU at the center of the activity.

HSU is also a state-of-the-art research facility and the county’s second largest employer

with over 1,000 faculty and staff and annual payroll of over $92 million. Annual 

enrollment is approximately 7,700 students and grew nine percent from 2006 to 2011. 

HSU has expended over $41 million over the last three years on new construction. This 

growth and investment requires convenient access to the region via ACV to 

remain viable.

Another nearby educational institution is the College of the Redwoods. Annual student 

enrollment is approximately 9,100 with 1,113 total personnel. Both University and 

College students will greatly benefit from improved eastbound connecting opportunities.

Tourism

Humboldt County, “California’s Redwood Coast”, is home of the world's tallest trees and 

more than 100 miles of stunning Northern California coast. Tourism provides substantial 

economic benefits to the Arcata/Eureka economy but cannot survive without sufficient air 

service access. The following provides just a few of the many tourist attractions in 

the area:

• 3,000 plus rooms

• 2.3 million acres – total land area in Humboldt County

• Redwood National Park – World Heritage Site 

• Arcata Marsh and Wildlife Sanctuary

• Avenue of the Giants

• World’s tallest trees – over 2,000 years old

• Madaket Cruise

• Humboldt Bay Maritime Museum
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 7

AIR SERVICE –

EXISTING/HISTORICAL

his section provides an overview of existing air service. Carriers providing 

service, service frequency, nonstop destinations offered, fares and equipment 

types are included in the discussion. A summary of historical air service is also 

included with destinations, traffic levels, service providers and average airfares. A 

description of air service development efforts concludes the section.

EXISTING AIR SERVICE

ACV is only served by United Express to two nonstop destinations, 

Sacramento and San Francisco. The Crescent City service is 

provided by United under the Essential Air Service program to 

connect Crescent City to Sacramento and San Francisco. No jet 

service exists today as the market is served exclusively with 30-seat 

turboprop aircraft. Eastern connectivity is heavily reliant on United’s 

San Francisco connections. There are an average of 66 weekly 

flights and an average weekly capacity of 1,980 seats (Table 4.1).

Turboprop service with limited connectivity to the east does not meet 

the needs of the region.

Through December 2011 there are no 

improvements anticipated in United’s service at 

ACV. The only change is United plans on 

reducing the San Francisco service by one flight 

per week in September.

HISTORICAL AIR SERVICE

ACV has suffered from a significant decline in air 

service over the last five years. This subsection summarizes ACV’s air service history 

including: destinations, traffic levels, service providers and airfares. Extenuating factors 

that have affected air service over time are also reviewed.

Destinations, Service Providers and Traffic Levels

From 2001 to 2011, ACV’s air service declined significantly (Table 4.2, next page). Total 

departures in the month of July since 2001 declined 49 percent while seats declined 51

percent. Since 2008, capacity has been reduced an astounding 54 percent underscoring 

the need for this Strategic Plan to provide improved access to the area. ACV has lost not 

only frequency but also service to major hubs that provided substantial 

eastbound connections: 

T

TABLE 4.1 EXISTING AIR SERVICE

NONSTOP 

DESTINATION

MARKETING 

CARRIER AIRCRAFT

WEEKLY 

DEPT

WEEKLY 

SEATS

Crescent City, 

CA United Saab 340 (turboprop) 6 180

Sacramento, 

CA United Saab 340 (turboprop) 12 360

San Francisco, 

CA United Saab 340 (turboprop) 48 1,440

Total 66 1,980

Source: apgDat, July 2011

This section addresses: 

• Description of existing 

air service

• Synopsis of historical 

air service

• Description of air 

service development 

efforts
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 8

• Alaska Airlines service to Los Angeles

• Alaska Airlines service to Portland

• United Airlines service to Portland

• Delta Air Lines service to Salt Lake City

At one time, ACV supported three carriers to four primary destinations (2008/2009). The 

loss of Portland, Los Angeles and Salt Lake City services has seriously deteriorated 

ACV’s ability to meet the air service needs of the community.

TABLE 4.2 HISTORICAL DESTINATIONS AND SERVICE PROVIDERS

DESTINATION AIRLINE ITEM

MONTH OF JULY

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Crescent City, CA United Dept 12 13 13 13 12 12 7 7 7 6 6

Seats 360 390 390 390 360 360 210 210 210 180 180

Los Angeles, CA Alaska Dept 7 7 7 14 7 7

Seats 490 518 532 1,036 518 532

Portland, OR

Alaska Dept 7 7 8 7

Seats 259 259 527 490

United Dept 14

Seats 420

Redding, CA Alaska Dept 14 14 7 7 14 14 14 7 14 14

Seats 518 518 490 490 980 1,036 1,064 518 1,036 1,064

Sacramento, CA United Dept 12 13 13 13 12 12 12 12 12 12 12

Seats 360 390 390 390 360 360 360 360 360 360 360

Salt Lake City, UT Delta Dept 14 12

Seats 700 600

San Francisco, CA United Dept 70 61 49 56 56 51 62 49 38 49 48

Seats 2,100 1,830 1,610 1,820 1,820 1,530 1,860 1,470 1,140 1,470 1,440

Average weekly departures 129 108 90 96 101 96 102 103 90 88 66

Average weekly seats 4,017 3,387 3,407 3,580 4,010 3,804 4,026 4,294 3,864 3,606 1,980

Source: apgDat

Airfares

Since 2001, ACV’s airfares have risen dramatically, 39 percent compared to only 12 

percent for the state of California and nine percent nationally. ACV has a significant fare 

discrepancy with other surrounding California airports, the West region and the national 

average as shown in Table 4.3. In 2010, ACV’s one-way average fare was $16 higher 

than Redding, $41 higher than Sacramento, $8 higher than San Francisco, $28 higher 

than California, $30 higher than the West region and $29 higher than the US average.

ACV is losing 24 percent of its traffic base to alternate airports. Lower fares and greater 

service levels are likely the greatest cause of this unnecessary diversion.

TABLE 4.3 AVERAGE ONE-WAY FARE PAID

AVERAGE FARE ACV $ 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 DIFF

ACV $135 $143 $145 $152 $153 $178 $179 $189 $177 $187 

Redding, CA $140 $150 $151 $154 $165 $183 $184 $197 $177 $171 $16 

Sacramento, CA $114 $108 $112 $112 $119 $130 $130 $139 $132 $145 $41 

San Francisco, CA $194 $178 $176 $165 $177 $194 $193 $188 $159 $179 $8 

California $143 $134 $133 $129 $138 $151 $152 $159 $143 $159 $28 

West Region $131 $125 $127 $126 $134 $145 $144 $155 $140 $157 $30 

US $146 $136 $138 $134 $137 $149 $149 $160 $144 $158 $29 

Source: Data Base Products, Inc.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 9

Extenuating Factors that have Affected Air Service

The primary factors that have impacted ACV’s air service are its geographic location and 

available aircraft size and capabilities. Its relatively isolated location in the northwest 

quadrant of California, removed from major population and commercial centers, has 

created ready-made air travel demand. With no major airports nearby and limited 

highway access, the dependence on air travel is unusually high. Accordingly, the need 

for quality air service is a necessity.

The high dependence on air service translates into a need for frequency of service and 

additional hub access. The frequency needs combined with the geographic proximity to 

San Francisco International Airport has offered economic support only for smaller 

aircraft. This has translated to turboprop aircraft whose speed and range have rendered

them appropriate only for markets of approximately 300 miles or less, such as San 

Francisco. The reduction of smaller jet turboprop aircraft in regional airline fleets will 

impact ACV’s future air service making the implementation of this Strategic Plan of vital 

economic importance.

PAST AIR SERVICE DEVELOPMENT EFFORTS 

ACV and its community supporters have been very proactive in attempts to maintain and 

improve air service. Each year ACV staff makes numerous proposals to airlines who 

could successfully serve the ACV market. This strategy includes frequent follow-up and 

communication to keep potential air carriers informed on ACV’s market as well as 

provide continuous information that could affect their decision to begin service. ACV 

recently attended both the Network USA and ACI-NA JumpStart conferences where they 

met with multiple airlines. This grant application is one more example of a community 

fully engaged in its air service development efforts.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 10

AIR SERVICE NEEDS AND 

DEFICIENCIES

he Air Service Needs and Deficiencies section identifies the major 

origin/destination markets that are not served adequately and the high fare levels

in the ACV market. This section provides a detailed analysis to demonstrate that 

ACV is underserved and overpriced. 

SERVICE NEEDS TO A SECOND HUB

Currently virtually all ACV catchment area air travelers are required to travel via San 

Francisco International Airport on turboprop aircraft. While this can be a reasonable 

routing for southbound passengers, congestion and weather problems at San Francisco 

are well known with frequent reliability issues for connecting passengers. The option of 

connecting via an additional hub for eastbound travel would greatly improve the quality 

of catchment area air service and aid economic and market development. 

The market served by ACV is in need of additional capacity as San Francisco flights 

averaged 79 percent for the year ended March 31, 2011. This is a very high load factor 

for flights with an average capacity of 30 seats suggesting that rejected demand occurs 

on many flights. Service to a second hub would alleviate the inability to buy a seat 

during peak demand periods in 

this underserved market and 

provide the added value of 

routing options when 

operational problems exist at 

the San Francisco hub.

Compared to other turboprop 

markets from San Francisco, 

ACV’s load factor is extremely 

high (as Table 5.1 shows).

The ACV market responded 

strongly to Delta Air Lines’ Salt 

Lake City eastbound 

connecting service. Table 5.2

shows the load factor for the 15 months that Delta served the market. While load factors 

dipped during the low-season months, during the summer months the load factor 

exceeded 80 percent. June load factors were up nine percentage points year over year. 

This clearly demonstrates the market’s need for additional service. Delta also operated at 

a time when both Alaska Airlines and United Airlines operated in the market. It is 

anticipated with current service levels limited to connections at San Francisco, the 

market will react even stronger to new hub service in the future.

T

TABLE 5.2 ACV-SLC LOAD 

FACTOR

MONTH

LOAD

FACTOR

Jun-08 70.4

Jul-08 83.1

Aug-08 83.8

Sep-08 61.5

Oct-08 64.4

Nov-08 70.1

Dec-08 66.7

Jan-09 54.7

Feb-09 48.5

Mar-09 61.4

Apr-09 63.0

May-09 71.4

Jun-09 79.2

Jul-09 85.0

Aug-09 81.1

Source: apgDat

TABLE 5.1 SAN FRANCISCO TURBOPROP 

LOAD FACTOR COMPARISON

SFO MARKET

LOAD 

FACTOR %

SEATS/

OPERATION

ACV 79 30

Sacramento, CA 76 30

Santa Barbara, CA 76 30

Redding, CA 72 30

North Bend, OR 70 30

Monterey, CA 67 30

Crescent City, CA 66 30

San Luis Obispo, CA 66 30

Klamath Falls, OR 59 30

Bakersfield, CA 57 30

Chico, CA 56 30

Modesto, CA 49 30

Source: apgDat; Year Ended 3/31/11

This section addresses: 

Description of the 

Arcata/Eureka community’s

air service needs and 

deficiencies.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 11

UNMET MARKET DEMAND

The ACV catchment area has an estimated 

true market demand of 340 passengers daily 

each way. For the year ended July 31, 2011, 

approximately 195 seats daily each way were 

provided at ACV to San Francisco. This 

combined with the high load factors on the 

segment amply demonstrates that the ACV 

catchment area market is underserved and in 

need of service to a second hub that provides 

eastbound connections.

Table 5.3 shows ACV’s top catchment area 

markets and ACV’s retention in these markets. 

ACV has relatively high retention to West Coast 

markets, particularly California markets with 

nonstop service (note the retention study was 

conducted when ACV had nonstop Los 

Angeles service). Retention is much lower, 

however, in eastern markets and 

internationally. For example, ACV’s Dallas 

retention is only 49 percent while retention to 

Washington, DC is only 22 percent. The 

proposed service will drastically improve 

retention to these eastern markets and reduce 

the need to drive long distances. Improved 

retention of air travelers from ACV’s market 

area who currently use other airports is the key 

to improving existing air service and the 

foundation for future air service improvements.

HIGH AIRFARES

As shown in Table 4.3 on page 8, ACV’s oneway average fares are high, exceeding the 

state of California’s average by $28 one-way 

and the national average by $29. Table 5.4

further demonstrates ACV’s higher than 

average fares, particularly to eastern markets. 

When compared to San Francisco and 

Sacramento, the catchment area’s top two 

diversionary airports, ACV’s fares are high. To 

Denver, ACV’s fares exceed Sacramento by 

$53 one-way and San Francisco by $40 one-way. In the Dallas market, ACV exceeds 

Sacramento by $96 and San Francisco by $84. These are just a few examples of the 

excessively high fares caused by the limited air service offerings and lack of eastbound 

connection opportunities in the ACV market.

TABLE 5.3 ACV RETENTION/DIVERSION BY MARKET

MARKET

O&D PAX 

PDEW

RETENTION 

%

TRUE 

MARKET 

PDEW

Los Angeles, CA 44,306 91 66.7

San Diego, CA 9,926 79 17.2

San Francisco, CA 9,852 98 13.8

Seattle, WA 7,529 78 13.2

Denver, CO 6,363 77 11.3

Phoenix, AZ (PHX) 4,115 68 8.3

Las Vegas, NV 5,090 86 8.2

Chicago, IL (ORD) 3,818 76 6.9

Sacramento, CA 4,390 98 6.2

New York, NY (JFK) 2,227 60 5.1

Portland, OR 3,128 87 4.9

Dallas, TX (DFW) 1,718 49 4.8

Washington, DC (IAD) 2,513 80 4.3

Boston, MA 2,280 79 4.0

San Jose Cabo, Mexico 852 30 3.9

Honolulu, HI 2,004 73 3.8

Minneapolis, MN 1,972 74 3.7

Orange County, CA 2,301 89 3.6

Philadelphia, PA 1,803 71 3.5

Washington, DC (DCA) 509 22 3.2

Total all markets 187,855 76 339.5

Source: Mead & Hunt, Inc. Passenger Demand Analysis

TABLE 5.4 AIRFARE COMPARISON BY MARKET

RANK DESTINATION

ACV 

FARE

SFO 

FARE

SMF 

FARE

ACV 

DIFF.

1 Los Angeles, CA $131 $81 $100 $49 

2 San Diego, CA $141 $82 $94 $59 

3 San Francisco, CA $186 $0 $88 $98 

4 Seattle, WA $152 $112 $120 $40 

5 Denver, CO $174 $134 $121 $53 

6 Phoenix, AZ (PHX) $169 $127 $134 $42 

7 Las Vegas, NV $172 $95 $114 $77 

8 Chicago, IL (ORD) $233 $222 $210 $22 

9 Sacramento, CA $101 $88 $0 $13 

10 New York, NY (JFK) $242 $272 $192 $50 

11 Portland, OR $177 $150 $96 $81 

12 Dallas, TX (DFW) $308 $224 $211 $96 

13 Washington, DC (IAD) $258 $247 $267 $11 

14 Boston, MA $238 $227 $195 $43 

15 Honolulu, HI $255 $204 $233 $51 

16 Minneapolis, MN $258 $218 $213 $46 

17 Orange County, CA $147 $90 $99 $57 

18 Philadelphia, PA $289 $280 $215 $74 

19 Washington, DC (DCA) $354 $188 $229 $166 

20 Anchorage, AK $263 $218 $247 $45 

All domestic markets $187 $179 $145 $41 

Source: Mead & Hunt Passenger Demand Analysis; Data Base Products, Inc.; CY 2010
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 12

STRATEGIC PLAN – AIR SERVICE

he Strategic Plan proposed by ACV will achieve the community’s goals and help 

to alleviate the air service deficiencies of this community. This Strategic Plan

section provides a detailed description of the goals of the project and a primary 

and alternate plan for attaining those goals. As a previous grant recipient, this 

application is a new project with different goals than the previous project.

PROJECT GOALS

The project goal is to significantly improve eastbound connections to adequately serve 

the Arcata/Eureka area. By improving eastbound connections, which is ACV’s top air 

service deficiency, the following will be achieved:

• High airfares will be reduced and more in line with other markets with the additional 

capacity and competition in the marketplace.

• The need to drive excessively long distances to use alternate airports to access 

adequate air service and competitive fares will be mitigated.

PROPOSED AIR SERVICE

With existing service limited to San 

Francisco, ACV’s primary air service need 

is to a hub offering significant eastern 

connecting opportunities, specifically 

Denver International Airport (Exhibit 6.1).

High average fares and diversion of 

catchment area travelers support the need 

for this air service initiative. United 

Airlines’ Denver service would provide 

ACV with optimal air service access and 

new unique one-stop connections. This 

plan will achieve the project goals by

offering more service options and 

providing a more reliable hub airport 

compared to San Francisco, which is 

plagued with delays and cancellations.

AIRLINE PARTICIPATION

Recently, members of the public-private partnership (Table 7.1, page 15) met with 

United Airlines regarding nonstop eastbound service. Discussions with United have been 

positive. However, based on preliminary discussions, the community support package 

proposed in the Strategic Plan is critical in the airline’s decision to serve the Denver 

market. United to Denver would meet the goals of this Small Community Air Service 

Development Program grant application and is the highest priority of the community.

T This section addresses: 

• A Strategic Plan for 

meeting ACV’s air 

service needs and 

deficiencies

• Alternate plan to meet 

the goals

United Airlines’ Denver:

428 daily departures

121 nonstop destinations

11 international destinations

62 unique one-stop destinations

EXHIBIT 6.1 PROPOSED AIR SERVICE

ACV

DEN

SLC

LAX

PHX
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 13

MARKET ANALYSIS

A financial analysis and forecast has been developed for United 

service to Denver International Airport. The detailed analysis is

included as Appendix B, Detailed Market Analysis.

Mature Market Results

Projections were completed for a one roundtrip schedule on a 50-seat 

Canadair Regional Jet. Table 6.1 provides a summary of the detailed 

market analysis completed. Passenger projections were based on a 

mature market (i.e., passenger projections would be at 100 percent on the first day of 

service). It is estimated that one roundtrip per day will generate at least $6.7 million in 

system revenue for United. Projected system profit is estimated at over $1.5 million. The 

estimated profit margins suggest that after the initial service ramp-up that the service 

would be self-sustaining and profitable for United. Previous eastbound connecting 

service via Salt Lake City was reaching maturity when pulled due to fuel cost increases.

TABLE 6.1 ACV-DENVER SUMMARY DETAILED MARKET ANALYSIS

ITEM STATISTICAL CATEGORY

1 Available seats per departure 50

2 Segments per day 2

3 Onboard passengers 27,836

4 Load factor 76.30%

5 Average fare all markets $228 

6 Segment 1 revenue $4,269,186 

7 Segment 1 cost $5,155,812 

8 Segment 1 profit margin $ $36,661 

9 Segment 1 profit margin % 1%

10 System revenue $6,705,976 

11 System cost $5,155,812 

12 System profit/loss $1,550,164 

13 System margin 23%

Source: Mead & Hunt, Inc.

Airline Risk During Ramp-Up

Although it is estimated that United will earn a profit on both a segment and a system 

basis, they will not generate this amount of revenue or margin at start-up. Airlines 

typically incur losses in new markets during the ramp-up period. The length of the rampup period is highly dependent on marketing efforts. In the case of the proposed service to 

Denver, a ramp-up period was created (Table 6.2, next page). The ramp-up period 

assumes that 75 percent of the mature marker traffic will fly in the first month, April 2012.

The market will then mature at a rate of 2.5 percent per month until reaching 100 percent

by the eleventh month, February 2013. Based on the ramp-up forecast, it is estimated 

that United will require a revenue guarantee of at least $480,000 to begin service. For 

success, the new service will also require a strong marketing program.

Carriers have

expressed interest 

in serving ACV to a 

hub with eastbound 

connecting 

opportunities and 

support this grant 

application.
PROPOSAL UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

ARCATA/EUREKA AIRPORT

Page 14

TABLE 6.2 ACV-DENVER RAMP-UP AND SHORTFALL

MONTH SEASONALITY

RAMP-

UP

LOAD 

FACTOR REVENUE

COST 

PER

MONTH

NET 

SURPLUS/ 

SHORTFALL

Apr-12 8.4% 75% 58% $270,921 $350,892 ($79,971)

May-12 9.3% 78% 65% $309,681 $362,588 ($52,908)

Jun-12 9.8% 80% 73% $336,725 $350,892 ($14,167)

Jul-12 9.2% 83% 68% $328,188 $362,588 ($34,401)

Aug-12 9.6% 85% 73% $351,025 $362,588 ($11,564)

Sep-12 5.9% 88% 48% $223,647 $350,892 ($127,245)

Oct-12 8.4% 90% 68% $326,870 $362,588 ($35,719)

Nov-12 7.8% 93% 67% $309,448 $350,892 ($41,444)

Dec-12 9.3% 95% 79% $379,211 $362,588 $16,622 

Jan-13 7.6% 98% 67% $321,037 $362,588 ($41,552)

Feb-13 6.6% 100% 66% $284,466 $327,499 ($43,034)

Mar-13 8.1% 100% 72% $347,123 $362,588 ($15,465)

Total 100% 67% $3,788,341 $4,269,186 ($480,845)

Source: Mead & Hunt, Inc. ALTERNATE PLAN

While the public-private partnership was encouraged by discussions with United, if ACV

fails to obtain Denver service in a reasonable time period, alternate carriers will be 

approached for eastbound connecting service. Alternate hub service that would fulfill the 

goals of this grant application include: Salt Lake City, Phoenix, or Los Angeles.

Consistent with the intent of the air service initiative proposed, obtaining nonstop service 

to an alternate hub airport with numerous eastbound connecting opportunities and 

competitive airfares is the best option for ACV catchment area passengers. PREVIOUS GRANT RECIPIENT - NEW PROJECT AND GOALS

In 2004, the US Department of Transportation awarded Redding Municipal Airport and 

ACV (as a consortium member) a Small Community Air Service Development Program 

grant. The 2004 grant included the following project goals: • Introduce service to Los Angeles to meet the needs of the Los Angeles basin 

travelers

• Reduce fares by adding a second carrier to the airport

The US Department of Transportation’s portion of the project budget, $500,000, 

included partial funding of a revenue guarantee and marketing support. Where the 

previous application’s goals were specific in nature by concentrating on the Los 

Angeles Basin destined traveler, this application’s goals focus specifically on eastbound 

connection needs: obtain competitive eastbound service with concentration on Denver 

International Airport. As demonstrated, this application qualifies as a new project and 

meets the requirements of the Small Community Air Service Development Program.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 15

STRATEGIC PLAN –

IMPLEMENTATION AND FUNDING

his section, Strategic Plan - Implementation and Funding, provides the detailed 

incentive and support plan required to implement the Strategic Plan. A legal 

sponsor responsible for administering the program has been designated, and a 

public-private partnership has been formed to actively participate in implementing 

the proposed project. In addition, this section identifies self-sufficiency of the service as 

an integral part of the community’s goals and provides a description of the community’s 

plan to continue with the project if it is not self-sustaining after the grant award expires. A 

detailed description of the funding necessary for implementation of the Strategic Plan, 

including federal and non-federal contributions, is included.

PUBLIC-PRIVATE PARTNERSHIP

Humboldt County/ACV has been designated as the sponsor of 

this grant application. For the purpose of this application, 

Humboldt County/ACV and RREDC have formed a public-private 

partnership (refer to community support letters in Appendix A).

Collectively, the partnership is committed to completing the 

Strategic Plan outlined herein.

All partners in the public-private partnership will be fully involved in the execution of the 

Strategic Plan (Table 7.1). Humboldt County/ACV will execute all federal grant offers, 

process all associated reimbursement requests, oversee grant administration and 

administer the revenue guarantee. RREDC will be responsible for administering the 

marketing campaign. Together these partners form a team committed to improving air 

service at ACV and seeing this Strategic Plan through to completion.

INCENTIVE AND SUPPORT PLAN

The current industry status filled with recent and ongoing airline mergers and buyouts, 

limited fleet availability, volatile fuel prices and an uncertain economy is challenging for 

many communities like Arcata/Eureka. These obstacles work against new service and 

extend the time it takes for new or increased service to gain profitability. 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.

T

TABLE 7.1 PUBLIC-PRIVATE PARTNER ROLES

PUBLIC-PRIVATE 

PARTNER ROLE

Humboldt County/ACV

Grant and revenue 

guarantee administration, 

marketing program

RREDC Assist with the marketing 

program

This section addresses: 

• Description of the 

public-private 

partnership

• Designation of a legal 

sponsor

• Funding necessary for 

implementation of the 

Strategic Plan

• Sustainability of the 

project

Humboldt 

County/ACV and 

RREDC have 

formed a publicprivate partnership.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 16

The public-private partnership proposes 

an airline incentive program that has 

been tested and proved to be 

successful. To reduce United Express’

breakeven period and offset the 

economic risk during start-up, the 

public-private partnership proposes the 

following incentives (Exhibit 7.1):

• Revenue guarantee: reduce airline 

economic risk

• New service marketing campaign: 

create improved service awareness

• Landing fee waivers: reduce startup costs

Revenue Guarantee

ACV is competing with other markets 

stretched across the country for a very 

limited resource. Without a revenue 

guarantee, ACV has little chance of 

becoming one of United’s priority Denver markets. To reduce airline risk and provide 

incentive to United to initiate nonstop service to Denver, this Strategic Plan includes an 

airline revenue guarantee as part of the community support package. United’s annual 

cost of providing daily service to Denver with the Canadair Regional Jet 200 is estimated 

at $5.2 million. It is anticipated that United would require at least a $480,000 airline

revenue guarantee to consider ACV-Denver service. Exact terms of the airline revenue 

guarantee agreement are subject to further discussions and negotiation.

Marketing Campaign

A complete marketing/advertising plan will be developed prior to any expenditure of 

marketing dollars. This plan will be specifically tailored to the needs and support of new 

service with improved eastern connectivity.

Extensive efforts have been underway for years. Currently, there is a community-wide 

effort to garner support for new and existing service. This effort has involved the use of 

social media, traditional media, electronic newsletters, and the gathering of information 

and pledges from the public. All of these efforts provide a strong base from which to 

support new service supported by this grant. Implementation of marketing and 

advertising can be immediate and effective with minimal effort or resources needing to 

be spent on planning beyond the tailoring and delivery of specific messaging toward 

building the new service.

The marketing plan will be structured for an 18-month program and will focus on public 

awareness of the new service. However, a permanent marketing program will be in 

place, meaning that existing efforts will continue in an expanded and enhanced manner 

past the grant period.

To reduce airline 

risk and provide 

incentive to United 

Express to provide 

new nonstop, highpriority hub service, 

this Strategic Plan 

includes an airline 

revenue guarantee.

New hub service

Revenue 

guarantee

US DOT

Marketing 

program/

Landing fee 

waiver

Community/ 

Airport

EXHIBIT 7.1 INCENTIVE AND SUPPORT 

PLAN
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 17

Marketing service ramp-up will emphasize how the new service will

make air travel more convenient, less time-consuming, and less 

costly, while providing more direct access to primary destinations. In 

addition, there will be a more general awareness campaign on the 

issues of supporting local air service, already underway. This 

campaign will become a permanent part of the operation of ACV and 

will include the entire marketing mix discussed below.

In addition, there will be extensive “free media” via commentaries and 

news stories. For example, the executive director of RREDC, who will 

be coordinating marketing for this project, has a twice per month 

radio commentary which can be used to promote service.

MARKETING MESSAGES:

Key marketing messages that will be directed to the new service supported by this grant 

will emphasize the features and benefits of the proposed service to the identified 

audiences. Messages will focus on the following:

• Convenience: The new service will get passengers to key eastern destinations 

with more convenience.

• Cost effective: The new service will reduce the cost of travel to key 

eastern destinations.

• Airline name and aircraft type: The new service is provided by a name brand 

airline and larger aircraft.

TARGET AUDIENCE

The target audience for the new air service is a combination of business travel and 

leisure travel. For the business market, the target audience can best be identified as 

follows: direct to consumer; corporate/government account; and travel agency. For the 

leisure market, the target audience is: direct to consumer; tour operator/consolidator; and 

travel agency.

MEDIA MIX

• Print: We have received offers of discounted advertising from our local 

daily paper. 

• Television: Advertising and messaging will be televised on local broadcast 

stations and our cable provider. Local broadcasters are offering free and 

reduced marketing exposure. In addition, news coverage of our efforts to date 

has been extensive. A news conference will be held upon the announcement of 

new service. 

• Radio: Commitments for free and reduced advertising have been secured from 

local radio stations. 

• Websites: Websites promoting the service will include, but not be limited to:

o www.FlyHumboldt.org

o www.Humboldtmade.com

The $83,800

marketing campaign 

will be funded by 

non-airport sources 

($10,000 cash and 

$68,800 in-kind) and 

ACV ($5,000 cash).
PROPOSAL UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

ARCATA/EUREKA AIRPORT

Page 18

o www.NorthcoastProsperity.com o www.Rredc.com o www.Humboldt.edu o www.co.humboldt.ca.us/aviation

• Social Media: The social media effort will include the already existing 

@FlyHumboldt (Twitter), www.facebook.com/flyhumboldt and 

www.facebook.com/lovehumboldtmade.

• Direct email contact: Over 1,000 recipients targeted for direct email from airline 

surveys and pledges will be contacted. We currently use Constant Contact for 

this effort.

• Other print ande-newsletters: This will include print and e-newsletters from the 

local Chambers of Commerce, Main Street organizations and others.

• Speaking engagements: A detailed presentation will be created and delivered to 

local service clubs and business organizations. A sample presentation is 

embedded on flyhumboldt.org.

MARKETING SCHEDULE

Marketing will begin at least 60 days prior to the initiation of service. The initial program 

will focus on the target audience, solidify travel agent interest, schedule meetings and 

presentations to advise local area businesses of service and schedule, and begin the 

print and radio advertisements. 

In addition, a welcoming celebration will be held at ACV to herald the arrival of the first 

aircraft of the new service. This will be a heavily publicized public event that will draw 

significant local coverage. 

It is expected that a significant share of the budget will be expended in the first 60 days. 

However, the total advertising and promotion program is planned for 18 months. Efforts 

to secure donations and other support for marketing will be ongoing.

FUNDING

A partnership agreement with local media outlets has been established. This $83,800

campaign will be funded by non-airport sources ($10,000 cash and $68,800 in-kind) and 

ACV ($5,000 cash).

Fee Waivers

The air service support program includes a landing fee waiver. As part of ACV’s standard 

rates and charges, in 2012, signatory airlines will be charged a landing fee assessed at 

$1.70 per 1,000 pounds of gross landed weight. ACV will waive landing fees for the first 

12 months for new hub service. Landing fees for the first 12 months are estimated at $31,645 with the use of the Canadair Regional Jet 200 with one daily roundtrip. The 

landing fee waiver may vary depending on aircraft type used, the number of roundtrips 

offered and final negotiations with the airline.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 19

STRATEGIC PLAN FUNDING

The public-private partnership is requesting US Department of Transportation assistance 

in funding 72 percent, or $480,000, of the Strategic Plan. Specifically, US Department of 

Transportation funding will be used to fund the airline revenue guarantee. All other 

elements including the marketing campaign, fee waivers, Strategic Plan monitoring and 

airline meetings will be funded by the community.

Table 7.2 provides the Strategic Plan budget by element and sources of funding. ACV

and the community will fund 28 percent of the total proposed air service program. Nonairport funding sources will provide 12 percent of the cash requirement and 21 percent of 

the funding for the total program including in-kind services.

TABLE 7.2 STRATEGIC PLAN BUDGET

DESCRIPTION

FUNDING SOURCE

TOTAL

US DOT AIRPORT NON-AIRPORT

CASH CASH IN-KIND CASH IN-KIND

Airline incentive program:

 Revenue guarantee $480,000 $20,000 $500,000 

 Marketing campaign $5,000 $10,000 $68,800 $83,800 

 Fee waivers $31,645 $31,645 

Strategic Plan monitoring $25,540 $25,540 

Airline meeting/negotiations $13,680 $13,680 

Program administration $5,900 $5,000 $10,900 

Total $480,000 $5,000 $37,545 $69,220 $73,800 $665,565 

Percent of total project 72% 1% 6% 10% 11% 100%

Percent of cash contribution 87% 1% N/A 12% N/A 100%

PROJECT CONTINUATION AND SUSTAINABILITY

Based on a strong marketing campaign for promoting United Express Denver hub 

service, it is anticipated that the new service will be self-sustaining after the start-up 

period which can take up to a year. However, a leading cause of service failure is lack of 

awareness in the community. The public-private partnership will fund an additional 

$50,000 marketing campaign if at the end of the first year of service the market average 

load factor for the 12-month period averaged less than 65 percent. The public-private 

partnership and the Arcata/Eureka business 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.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 20

SCHEDULE AND MONITORING

he public-private partnership established for this Strategic Plan has developed 

a realistic timetable to achieve the goals of this proposal. 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 project.

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 US Department of Transportation’s grant award and the service 

start date.

Marketing Campaign Development/Initiation

January 2012: Development of the marketing campaign will be 

completed in January 2012 in order to begin the marketing campaign 

30 to 60 days prior to new service initiation. Development of the 

marketing campaign is dependent on air service announcement and 

start-up. It is anticipated that the marketing campaign will begin by 

February 1, 2012, and continue throughout the first year of new service.

Service Improvement Initiation

April 2012: The service start date is the critical date for the rest of the Strategic Plan.

It is anticipated that United Express will begin nonstop Denver service in April 2012.

Air service initiation is dependent on airline route planning and availability of aircraft.

Alternate Plan

April 2012: If United has not committed to nonstop Denver service by April 1, 2012, 

ACV will contact alternate carriers that would meet the goals of this grant application.

Nonstop Salt Lake City, Phoenix or Los Angeles service are the top priorities

following nonstop Denver service to provide the eastbound connections needed by 

the community.

End of First Year of Service

March 2013: 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.

T This section addresses: 

• How the community will 

monitor the progress of 

the project

• The plan/schedule for 

timely completion of 

the project

It is anticipated that 

United Express will 

begin Denver 

service in April 

2012.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 21

March 2013: If the load factor for the first 12 months of service does 

not reach an average of 65 percent, ACV will invest $50,000 in 

supplementary marketing for an additional 12 months to help the 

service reach the potential passenger levels required for 

carrier success.

MONITORING PROGRAM

The monitoring program proposed is aggressive and comprehensive. 

The monitoring program includes: service performance tracking, 

assessing the effectiveness of the marketing campaign, and 

determining the impact of the service on retention of catchment area 

passengers at ACV.

The following will be completed:

• Review aircraft departures, enplaned passengers and load 

factors on a monthly basis. Airport data, US Department of 

Transportation 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. Published airfares will 

also be tracked via one of the Global Distribution/Computer Reservations 

Systems (GDS/CRS) or through airline web sites.

• A follow-up retention/diversion study will be performed to determine changes in 

passenger retention/diversion after the first 12 months of service. By comparing 

post-service improvement retention levels to pre-service retention levels, the 

study will determine the impact of the air service improvements on 

retention/diversion at ACV.
PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 22

APPENDIX A. LETTERS OF

SUPPORT

ppendix A includes letters of support for ACV’s application to the US

Department of Transportation to increase eastbound connecting 

opportunities. Support letters were submitted by participants in the publicprivate partnership, government officials and members of the Arcata/Eureka area.

The letters of support are included on the following pages of this Appendix A and are 

listed below.

Public-private partnership

Humboldt County/ACV (refer to cover letter)

Redwood Region Economic Development Commission

Government

California Legislature – Assemblyman Wesley Chesbro

County of Humboldt – Board of Supervisors

County of Humboldt – District Attorney

City of Eureka – City Council

City of Rio Dell – Chief of Police

Arcata Police Department – Chief of Police

Businesses and Organizations

Fulkerson & Associates

Greater Eureka Chamber of Commerce

Humboldt County Convention & Visitors Bureau

Humboldt State University

O&M Industries

The California Redwood Company

A This section addresses: 

Letters of support from 

members of the publicprivate partnership, the 

local business community 

and state government. 



August 1, 2011 

Aloha Ley 

Associate Director X-50 

US Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Re: Small Community Air Service Development Program 

 Docket DOT-OST-2011-0119 

 Humboldt County, Arcata/Eureka Airport 

Dear Ms. Ley: 

As a Humboldt County resident and the District Attorney of Humboldt County, I strongly support 

the air service proposal detailed in the Small Community Air Service Development Program 

grant application. The Arcata/Eureka airport plays an important role in providing support to 

business, government, education, and leisure travel to this northwester California rural 

community. The proposed nonstop United Express service to Denver will improve eastbound 

connectivity much needed by our community. 

Growth in our area in recent years has been fueled by the presence of the Eureka/Arcata Airport. 

Continued growth in our area will depend largely on our local airport’s ability to meet the needs 

of our current business stronghold as well as the needs of potential businesses considering 

locating in Humboldt County. 

Arcata/Eureka Airport has forged strong ties with the business community to attract better air 

service. We appreciate the opportunity to expand the partnership to include the U.S. Department 

of Transportation through the Small Community Air Service Development Program. 

Respectfully, 

Paul V. Gallegos 

District Attorney 



July 27, 2011

Aloha Ley

Associate Director, X-50

US Department of Transportation

1200 New Jersey Ave, SE W86-310

Washington, DC 20590

Subject: Small Community Air Service Development Program

 Docket DOT-OST-2011-0119

 Humboldt County, Arcata/Eureka Airport

Dear Ms. Ley:

As a business owner and elected official, I strongly support the air service 

proposal detailed in the Small Community Air Service Development Program 

grant application. Arcata/Eureka plays an important role in providing support to 

business, government, education, and leisure travel to/from this northwestern 

California community. The proposed nonstop United Express service to Denver 

will improve eastbound connectivity much needed by the community.

Growth in the Arcata/Eureka area over the past few years has been fueled by the 

presence of the Arcata/Eureka Airport. Future community growth depends, in part, 

on the Airport’s ability to meet the needs of existing local businesses as well as 

companies considering Arcata/Eureka as a location for their operations. 

Arcata/Eureka Airport has forged strong ties with the business community to 

attract better air service. We appreciate the opportunity to expand that partnership 

to include the U.S. Department of Transportation through the Small Community 

Air Service Development Program.

Sincerely,

 julie fulkerson

Julie Fulkerson 

City Council, City of Trinidad 

Fulkerson & Associates
July 28, 2011 

Ms. Aloha Ley, Associate Director, X-50 

US Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

RE: SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM - DOT- OST2011-0119 – ARCATA/EUREKA AIRPORT, HUMBOLDT COUNTY CALIFORNIA

 

Dear Ms. Ley: 

 

I am writing on behalf of the Board of Directors and members of the Greater Eureka Chamber of 

Commerce in support of the above referenced application. The Chamber Board strongly 

supports the air service proposal detailed in the Small Community Air Service Development 

Program grant application. The Arcata/Eureka Airport plays an integral role in providing 

support to business, government, education, and leisure travel to/from this northwestern 

California community. The proposed nonstop United Express service to Denver will 

significantly improve eastbound connectivity much needed by the community. 

Growth in the Arcata/Eureka area over the past few years has been aided by the presence of the 

regional Airport facilities. Future community growth depends, in part, on the Airport’s ability to 

meet the needs of existing local businesses as well as companies considering Arcata/Eureka as a 

location for expanded operations. 

Arcata/Eureka Airport has forged strong ties with the business community to attract better air 

service. We appreciate the opportunity to expand that partnership to include the U.S. 

Department of Transportation through the Small Community Air Service Development Program. 
Ms. Aloha Ley – July 28, 2011 – Page 2 

If you or your staff have any questions or care to discuss this recommendation in greater detail, 

please feel free to contact me. 

 

Sincerely, 

J Warren Hockaday 

President/CEO 

 

 

 

 

1 Harpst Stre

THE CALIFORNIA STA

Maritime Academy 

Offi

July 28, 20

Aloha Ley

Associate 

US Depart

1200 New

Washingto

Subject: S

 D

 H

Dear Ms. L

As the Pre

in the Sma

airport is a

who must 

plays a cri

leisure trav

Express se

Many of o

these trips 

One of the

business en

our region

presence o

ability to m

Arcata/Eur

The Arcata

attract bett

U.S. Depa

Program. 

 

 

 

 

 

et  Arcata,

ATE UNIVERSITY  Bake

Monterey Bay  Northri

ce of the P

011 

y

Director, Xtment of Tra

 Jersey Ave,

on, DC 2059

Small Comm

Docket DOT

Humboldt Co

Ley: 

esident of Hu

all Communi

a critical serv

travel freque

tical role in 

vel to/from t

ervice to Den

ur faculty tr

much easier

e significant 

nvironment 

n. Growth in

of the Arcata

meet the nee

reka as a loc

a/Eureka Air

ter air servic

artment of Tr

Thank you f

 California 9552

ersfield  Channel Islan

dge  Pomona  Sacram

President 

-50 

ansportation 

, SE W86-31

90 

munity Air Se

T-OST-2011-

ounty, Arcat

umboldt Stat

ity Air Servi

vice for our 

ently to our 

providing su

this northwe

nver will imp

avel to acad

r and less ex

problems af

here suffers 

n the Arcata/E

a/Eureka Airp

ds of existin

cation for the

rport has for

ce. We appre

ransportation

for your con

 

21-8299  70

nds  Chico  Domi

mento  San Bernardino 

10 

ervice Devel

-0119 

ta/Eureka Ai

te University

ice Developm

students and

Chancellor’

upport to bus

stern Califor

prove eastbo

emic meetin

xpensive. 

ffecting our a

from the dif

Eureka area 

port. Future 

ng local busin

eir operation

rged strong t

eciate the op

n through the

nsideration of

Sincerely

Rollin C

Presiden

07.826.3311 

nguez Hills  Fresno 

 San Diego  San Fran

lopment Pro

irport 

y, I strongly 

ment Progra

d their famili

s Office in S

siness, gover

rnia commun

ound connec

ngs in the Ea

area is pover

fficulties of 

over the pas

community 

nesses as we

ns. 

ties with the 

pportunity to

e Small Com

f our propos

y, 

. Richmond

t 

 fax 707.826

 Fullerton  Haywa

ncisco  San Jose  San 

ogram 

support the 

am grant app

ies, our facu

Southern Cal

rnment, othe

nity. The pr

ctivity much 

ast and the pr

rty especiall

getting peop

st few years 

y growth dep

ell as compa

business an

o expand tha

mmunity Air

sal. 

6.3505  ww

ard  Humboldt  Lo

Luis Obispo  San Marc

air service p

plication. Th

ulty and staff

lifornia. The

er education

roposed non

needed by t

roposed serv

y among chi

ple and mate

has been fu

pends, in part

anies conside

nd education 

at partnership

r Service Dev

ww.humboldt.ed

ong Beach  Los Ange

cos  Sonoma  Stanis

proposal deta

he Arcata/Eu

f and many o

e airport also

nal institution

nstop United 

the communi

vice would m

ildren. The 

erials in and 

eled by the 

t, on the Airp

ering 

communitie

p to include t

velopment 

du 

eles 

laus

ailed 

ureka 

of us 

o

ns, and 

ity. 

make 

out of 

rport's 

es to 

the 
Industrial Construction • Food Grade & Process Piping • Structural Steel • Millwrighting • Rigging • Blow Pipe 

Fabrication & Installation • Structural & Miscellaneous Metal • Heating, Ventilation, Air Conditioning • Industrial & 

General Sheet Metal 

(PHONE 707 / 822-8800 • FAX 707 / 822-8995 • www.omindustries.com) 

 

 

 

July 29, 2011 

Aloha Ley 

Associate Director X-50 

US Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Re: Small Community Air Service Development Program 

 Docket DOT-OST-2011-0119 

 Humboldt County, Arcata/Eureka Airport 

Dear Ms. Ley: 

As a Humboldt County resident and small business owner, I strongly support the air service proposal detailed in the 

Small Community Air Service Development Program grant application. The Arcata/Eureka airport plays an 

important role in providing support to business, government, education, and leisure travel to this northwester 

California rural community. The proposed nonstop United Express service to Denver will improve eastbound 

connectivity much needed by our community. 

Growth in our area in recent years has been fueled by the presence of the Eureka/Arcata Airport. Continued growth 

in our area will depend largely on our local airport’s ability to meet the needs of our current business stronghold as 

well as the needs of potential businesses considering locating in Humboldt County. 

Arcata/Eureka Airport has forged strong ties with the business community to attract better air service. We 

appreciate the opportunity to expand the partnership to include the U.S. Department of Transportation through the 

Small Community Air Service Development Program. 

Sincerely, 

Rob McBeth, Owner of O&M Industries Inc. 

 Corporate Office • 5901 Ericson Way • Arcata, California 95521 • 707 / 822-8800 

 Colusa, CA 530 / 458-8850 • Medford, OR 541 / 772-4606 • Crane Hill, AL 256 / 747-2747 

PROPOSAL UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

ARCATA/EUREKA 

AIRPORT

Page 37

APPENDIX B. DETAILED MARKET 

ANALYSIS

onfidential submission of Humboldt County.

C This section contains:

An in-depth analysis 

evidencing familiarity with 

the Denver market and 

ultimate success of the 

proposed Strategic Plan.