Proposal under the Small Community Air 

Service Development Program For

St. George Airport

Docket DOT-OST-2012-0069

Sponsor: City of St. George and St. George Airport

DUNS Number: 627376569

Congressional District Code: UT02

Contact: Mr. Richard Stehmeier

Airport Manager

St. George Airport

4550 S. Airport Parkway

St. George, UT 84790

(435) 627-4080

Rich.stehmeier@sgcity.org

Due Date: June 11, 2012
Table of Contents

Subject Page

DOT Summary Information 1

Executive Summary 3

Previous Grant 4

Our Airport 4

Our Public-Private Partnership 5

Plan is Consistent with DOT Priorities 6

Community Profile 6

Economic Data 8

Air Service History 9

Current Air Service 9

Passenger Leakage 10

Top Markets for St. George 11

Air Service Comparison 11

Passenger Forecast for Denver Service 12

Estimated Profitability for Sky West 13

Action Plan 14

Plan Elements 14

Marketing Program 14

Revenue Guarantee 15

Total Incentive Package 16

Performance Measurement and Schedule 17

Measurement 17

Schedule 17

Community Support 17

Requirements 18

Financial Controls 18

Return on Investment 18

Exit Strategy 18

Assurances 19

Community and Airline Support

 Support Letter from Sky West Airlines 

 Support Letter from Senator Hatch

 Support Letter from Congressman 

 Support Letter from Convention and Tourism Bureau 

 Other Letters of Support
Proposal of the City of St. George and St. George Airport Page 1

APPENDIX C

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET OST-2012-0069

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form SF424 on http://www.grants.gov

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

 Not a Consortium Interstate Consortium Intrastate Consortium

 Community now receives EAS subsidy

 Community previously received a Small Community Grant in 2010 

If previous recipient: Date of Grant: March 8, 2010 Expiration date of grant: 2012

Federal Funds Requested: $100,000 for an Air Service Business and Marketing Plan, 

development of program to recruit new air service, and advertising for new airport

B. PUBLIC/PRIVATE PARTNERSHIP 

Public: Private:

1. City of St. George 1. Sky West Airlines

2. St. George Airport 2. St. George Area Chamber of Commerce

3. Washington County 3. Washington County Economic Development

4. St. George Convention and Tourism

5. Dixie State College

6. Ft. Pierce Industrial Park

7. Zion National Park

C. PROJECT PROPOSAL (Check All That Apply)

 X Marketing Upgrade Aircraft X New Route

 X Travel Bank Service Restoration ___ Subsidy

___ Surface Transport X Regional Service _X Revenue Guarantee

 _ Launch New Carrier _X_ Start Up Cost Offset First Service 

 Study Secure Additional Carrier ___ Other

X

X
Proposal of the City of St. George and St. George Airport Page 2

D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

 X Full ILS X Outer/Middle Marker X Published Instrument Approach

 X Localizer X Other (Specify) _GPS__

E. PROJECT COST:

Line Description Sub Total Total Amount

1. Federal Amount Requested: $550,000

2. State cash financial contribution 0

 Local Cash Financial Contribution: 

 3a. Airport cash funds: 

 3b. Non-Airport cash funds: 100,000

3. Total local cash funds: 100,000

4. TOTAL CASH FUNDING $650,000

 In-Kind Contribution

 5a. Airport In-Kind contribution* 25,000

 5b. Other In-Kind contribution** 175,000

5. TOTAL IN-KIND CONTRIBUTION $200,000

6. TOTAL PROJECT COST $850,000

F. IN-KIND CONTRIBUTIONS**

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

 source of funds for each.

 Airport In-Kind - $25,000 for airport and landing fees waived during first year

 Other In-Kind - $50,000 for advertising by St. George Convention and Tourism Bureau and

 $25,000 for advertising by the State of Utah Tourism

 $100,000 for a travel bank program

 

G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 

 PROCESS? Program is not covered by E.O. 12372.

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? No
Proposal of the City of St. George and St. George Airport Page 3

PROPOSAL OF THE CITY OF ST. GEORGE AND

ST. GEORGE AIRPORT

Executive Summary

This proposal is part of a two phase program to get new air service for St. George Airport in St. 

George, Utah. The first phase secured a grant in February 2010 to pay for an Air Service Market 

Study to determine passenger demand, to pay for a Recruiting Program to attract new air service, 

and to pay for an advertising program promoting the new airport. The second phase is to secure 

a grant under this year’s program to provide a revenue guarantee and marketing funds to support 

new non-stop regional jet air service to Denver by Sky West Airlines.

The City of St. George opened a new replacement airport on January 13, 2011. This new airport 

has a 9,300 foot runway capable of handling most commercial jet aircraft. The terminal is

35,000 square feet and can handle multiple airlines. The old St. George Airport was located on a 

bluff and was not able to accommodate commercial jet aircraft to meet the air travel needs of the 

future. St. George now has a new airport to meet these needs.

Since award of the DOT grant in 2010, the leaders of St. George have been actively recruiting 

airlines to provide air service at the new airport. During this time, meetings and discussions have 

been held with Allegiant Air, American Airlines, American Eagle, Delta Air Lines, Frontier 

Airlines, Horizon Air, Sky West, Southwest Airlines, United Airlines, US Airways, and Vision 

Air. All of the airlines have requested an incentive package to consider providing service at the 

new St. George Airport. The airlines have requested funds for a revenue guarantee and cost 

offset for the first year of service, funds for marketing and advertising and a travel bank ticket

purchase program.

In order to create an attractive incentive package, the City of St. George and St. George Airport 

is requesting a grant of $550,000 from the Department of Transportation under the Small 

Community program. These funds will be matched with $100,000 of local cash, $100,000 of inkind funding, and a travel bank program of $100,000 resulting in a total incentive package of 

$850,000.

St. George is located in Washington County in southwest Utah and serves residents in three 

states. The St. George Airport catchment area encompasses over 250,000 residents in southern 

Utah, northern Arizona, and eastern Nevada. St. George Airport is a small non-hub airport and 

has regional jet service to Salt Lake City and commuter service to Los Angeles. St. George is a 

key destination market being the gateway airport for six major National Parks and other popular 

destinations.

A leakage study was developed by Sabre Airline Solutions in 2009 and showed that the local 

market generated 627 airline passengers per day but the St. George Airport only retained 122 

passengers per day, a retention rate of 19.5%. The destinations that had the largest amount of 

passenger demand were Salt Lake City, San Francisco, Chicago, Denver, Los Angeles, and 

Phoenix. The St. George-Denver segment has the greatest demand with 444 local and 

connecting passengers per day.
Proposal of the City of St. George and St. George Airport Page 4

Previous Grant

The City of St. George has approached the Small Community Air Service Development Program 

as a two phased project. The first phase was to request a grant to fund an Air Service Market 

Study, start recruiting airline service for the new replacement airport, and pay for advertising to 

promote the new airport. The second phase was to request a grant to provide funds for an airline 

as a revenue guarantee to offset initial operating losses and provide marketing support to start 

new air service.

The City of St. George and St. George Airport received the first grant from the Department of 

Transportation under this program in February 2010 for $100,000. The local community 

contributed $20,000 in cash and $20,000 of in-kind advertising to support the air service 

development program.

The St. George Airport hired Tri-Star Marketing Company from Irvine, CA, to develop the Air 

Service Business and Marketing Plan and use the data from this Plan to develop presentations to 

be given to target airlines. Representatives of the City and the Airport attended various airportairline conferences and had discussions with eleven airlines regarding improved or new air 

service. This program is showing signs of success. 

After numerous meetings and discussions with Sky West, in early 2011 the airline went ahead 

and replaced almost all of its EMB-120 turbo prop flights between St. George and Salt Lake City 

with CRJ-200 regional jets. The airline also reinstated service between St. George and Los 

Angeles International Airport with EMB-120 aircraft. This upgraded service produced 136,816 

outbound passengers in 2011, an increase of 22.5% over outbound passengers for 2010.

The St. George Airport and the City St. George developed a marketing and advertising program 

to promote the upgraded Sky West service and continues to promote this service. It is estimated 

that the funding for the air service recruiting and advertising will be spent by the end of the 

summer of 2012, making St. George eligible for a new grant this year.

Our Airport

The St. George Airport received its first air mail service in 1938 and has had scheduled 

passenger air service since 1959. In order to accommodate regional jets and standard twin jets, 

the City of St. George went ahead with the development of a $175 million replacement airport. 

The new airport has a 9,300 foot by 150 foot runway and a 35,000 square foot terminal. Future 

plans call for extending the runway to 11,500 feet if needed. 

The new St. George Airport is a full service Airport. The passenger terminal includes state of 

the art systems for passenger check-in, baggage handling, and security screening. There is space 

for multiple airlines, rental car companies, and a restaurant. Convenient, reasonable priced, 

automobile parking is available at the terminal. The new Airport is located seven miles from 

downtown St. George connected to Interstate 15 by its own highway. Tenants and vendors at the 
Proposal of the City of St. George and St. George Airport Page 5

new Airport provide a full range of aviation services including fueling, maintenance, instruction, 

charter flights, and aircraft storage.

Currently, the Airport is served by Sky West Airlines operating as the Delta Connection to Salt 

Lake City and as United Express to Los Angeles. The Airport meets FAA Part 139 

requirements. Passenger screening is provided by TSA. The Airport meets all FAA avionics 

requirements. 

LOCATION OF THE NEW REPLACMENT AIRPORT

Our Public-Private Partnership

The City of St. George, St. George Airport and the local community have been working together 

to improve the air service for the new replacement airport since 2008, three years prior to the 

opening. The Public-Private Partnership includes the St. George Airport, local St. George City 

government departments, Washington County, the St. George Area Chamber of Commerce, the 

Washington County Economic Development Council, St. George Convention and Tourism, 

Dixie State College, Zion National Park, and various local businesses. This group provided 

funds for the first Small Community Grant in 2010 and has been active in promoting special 

events in the community that attracts more tourism to the area.
Proposal of the City of St. George and St. George Airport Page 6

Our Plan Is Consistent With DOT Priorities

The St. George Airport qualifies as an eligible project for this grant program. The Airport is 

planning to use the funds from the grant award to improve air service at St. George with new 

nonstop air service to Denver with regional jet aircraft. The new service will be flown by Sky 

West Airlines operating as United Express.

The award of the grant will provide material benefits for a broad segment of the traveling public 

to and from St. George. The new air service will provide a key link to the national and 

international air transportation system. This new air service will allow the St. George air traveler 

to fly to the United Airlines hub at Denver and connect to other markets to the east, north and 

south of Denver at fare levels comparable to fares at Las Vegas International Airport.

The airport and the community established a Public-Private Partnership in 2008 and members 

from this Partnership will provide a portion of the funding to facilitate the new air service. 

The new air service at St. George Airport will benefit residents from eight counties in Utah, 

cities in Arizona, and cities in southeast Nevada.

Community Profile

St. George was founded as a cotton mission in 1861 as part of a greater effort of the Church of 

Jesus Christ of Latter-Day Saints to help the colony become self sufficient. Over the past 150 

years, St. George has become the population and commercial center for southern Utah. Due to 

its southern location and its early cotton farming, the area is sometimes known as “Dixie”. The 

City of St. George is located on Interstate 15 and south of the starting point of Interstate 70. The 

City is 120 miles north of Las Vegas and 300 miles south of Salt Lake City.

Washington County (where St. George is located) has seen a population increase of 53% since 

2000, one of the largest population increases for any county in the United States. The greatest 

economic impact has been the growth of retail sales. The primary catchment area has seen retail 

sales increase by 130% and effective buying income has doubled.

POPULATION GROWTH OF WASHINGTON COUNTY

Year Population Growth

2000 90,354 ---

2005 127,120 40.7%

2010 138,115 52.9%

2020 205,000 48.4%

2030 251,900 22.9%

2031

Source: Washington County Economic Development Council
Proposal of the City of St. George and St. George Airport Page 7

The St. George economy is service oriented. There is a large employment base in healthcare, 

education, government, and tourism. The St. George Area Chamber of Commerce will continue 

to support existing employers in the area while the Washington County Economic Development 

Council is attracting new businesses that will contribute to the economic growth of the area. 

ST. GEORGE HAS A DIVERSE ECONOMY

Sector Employment % of Total

Retail/Wholesale 8,779 18.3%

Healthcare 7,493 15.5%

Government 7,202 15.0%

Hospitality/Entertainment 7,010 14.6%

Services 5,959 12.4%

Construction 4,021 8.4%

Transportation/Utilities 2,842 5.9%

Manufacturing 2,472 5.1%

Finance/Real Estate/Insurance 2,033 4.2%

Mining/Agriculture 276 0.6%

The St. George Convention and Tourism Board works to bring visitors to St. George, to Zion 

National Park and five other National Parks. This group has an extensive marketing budget in 

excess of $3 million per year and is marketing in the domestic and international markets. There 

are approximately 4,300 hotel rooms in the area with prices ranging from $39 to $395 per night. 

The area has 23 golf courses within one hour of downtown St. George. St. George has the 

second largest conference center in the state of Utah. Dixie Conference Center has a 47,500 

square foot exhibit hall, twenty-one meeting rooms, and seating for 6,200 in the Concert Center.

Even though the average retail sales and average median income are somewhat moderate, the 

residents of St. George have an excellent quality of life and due to the geographical nature of the 

market area and the lower cost of living.

ST. GEORGE HAS A LOW COST OF LIVING

Market Cost of Living Index

St. George 93

Bakersfield 103

Bozeman 102

Denver 103

Flagstaff 115

Las Vegas 100

Los Angeles 136

Ontario 112

Salt Lake City 95

San Diego 132
Proposal of the City of St. George and St. George Airport Page 8

St. George Airport Catchment Area and Economic Data

The St. George Airport catchment area covers southwest Utah, northwest Arizona and part of 

southeast Nevada. The area is a combination of high plateau desert and mountains. There are 

eight counties in Utah, three cities in Arizona, and one city in Nevada that are in the St. George 

Catchment Area. The total catchment area has an estimated population of 261,000.

ST. GEORGE AIRPORT CATCHMENT AREA

 

ECONOMIC DATA FOR ST. GEORGE AIRPORT CATCHMENT AREA

 Housing Retail Sales Buying Income

Market Population Units (million) (million) 

Utah

Washington County 138,115 49,446 $2,607.8 $2,423.9

Iron County 46,163 14,638 734.8 619.2

Sevier County 20,802 6,666 374.4 297.5

Kane County 7,125 2,603 74.4 114.0

Beaver County 6,629 2,870 103.4 90.3

Garfield County 5,175 3,320 32.6 67.0

Wayne County 2,778 1,450 27.2 41.1

Piute County 1,556 800 5.7 17.7

Arizona

Page City 7,247 2,600 n/a 158.3

Colorado City 4,820 1,630 n/a 67.8

Fredonia City 1,313 455 n/a 17.8

Nevada

Mesquite City 19,750 9,300 n/a 399.3

Total 261,470 95,778
Proposal of the City of St. George and St. George Airport Page 9

Air Service History

St. George Airport has been served continuously since 1972 by Sky West Airlines. In the early 

years, Sky West shuttled business travelers to Salt Lake City. In the 1990’s the airline started 

nonstop service to Las Vegas with flights continuing on to Phoenix. In 2000, new nonstop 

service was added to Los Angeles International Airport and this service replaced the service to 

Las Vegas. On September 1, 2009, Sky West terminated service to Los Angeles. In early 2011, 

Sky West replaced almost all of the EMB-120 flights between St. George and Salt Lake City

with CRJ-200 regional jet aircraft and reinstated the EMB-120 flight to Los Angeles 

International Airport. 

HISTORICAL NONSTOP SERVICE AT ST. GEORGE

 Los Angeles Salt Lake City All Markets

Year Flts/wk. Seats/wk. Flts/wk. Seats/wk. Flts/wk. Seats/wk.

2000 14 420 37 1,110 51 1,530

2001 14 420 42 1,260 56 1,680

2002 14 420 42 1,260 56 1,680

2003 14 420 48 1,440 62 1,860

2004 14 420 42 1,260 56 1,680

2005 14 420 41 1,230 55 1,650

2006 12 360 56 1,680 68 2,040

2007 14 420 56 1,680 70 2,100

2008 14 420 45 1,350 59 1,770

2009 14 420 44 1,320 58 1,740

2010 0 0 45 1,350 45 1,350

2011 7 210 35 1,630 42 1,840

2012 7 210 35 1,630 42 1,840

Source: Official Airline Guide, 2000- 2012.

Current Air Service

Sky West currently operates thirty-five flights per week between St. George and Salt Lake City 

utilizing the 50 seat CRJ-200 aircraft for twenty-eight of these flights. There are seven flights per 

week with the 30 seat EMB-120 aircraft. These flights are operated as the Delta Connection. 

These frequent flights meet the needs of the local passenger going to Salt Lake City for a day trip 

to conduct business or visit friends and relatives and for passengers making connections to Delta 

Air Lines flights, other Sky West flights, and the flights of other airlines. Sky West operates an 

EMB-120 aircraft between St. George and Los Angeles International Airport as part of the 

United Express program.
Proposal of the City of St. George and St. George Airport Page 10

CURRENT ST. GEORGE-SALT LAKE CITY OUTBOUND SERVICE

MAY 2012

Market Airline Depart Arrive Aircraft Frequency

SGU-SLC DL* 6:15 am 7:27 am CRJ-200 x Sa, Su

 DL* 8:00 am 9:11 am CRJ-200 Sa & Su

 DL* 9:15 am 10:30 am CRJ-200 x Sa, Su

 DL* 11:10 am 12:22 pm CRJ-200 Sa

 DL* 1:15 pm 2:26 pm CRJ-200 x Sa

 DL* 3:05 pm 4:17 pm CRJ-200 Sa

 DL* 3:21 pm 4:30 pm EMB-120 Sa

 DL* 6:13 pm 7:25 pm CRJ-200 Daily

 DL* 7:20 pm 8:40 pm EMB-120 Daily

SGU-LAX UA* 4:55 pm 5:48 pm EMB-120 Daily

Passenger Leakage

A leakage analysis developed by Sabre Airline Solutions in 2009 found that over 80% of the St. 

George airline customers went to other airports with 55% of the passengers using Las Vegas. 

The average fares for the top ten markets for St. George for the past five years have been 40% to 

60% higher than fares available at Las Vegas. Over 85% of the St. George – Denver passengers 

are using other airports. The new St. George air service to Denver will drastically reduce this 

leakage.
Proposal of the City of St. George and St. George Airport Page 11

Top Markets for St. George

There were 92,710 origin and destination passengers for St. George Airport in 2011, an increase 

of 23.2% from 2009. The St. George-Salt Lake City market is the number one market and 

accounted for 43.4% of the total passengers. The top 15 markets accounted for 71.5% of the 

total passengers. The leakage study developed by Sabre showed that the St. George-Salt Lake 

City market captured 88% of all of the bookings in the local St. George market. On the other 

hand, over 86% of the passengers going to destinations other than Salt Lake City utilized another 

airport. Listed below are the top origin and destination markets for St. George for 2011.

TOP PASSENGER MARKETS FOR ST. GEORGE AIRPORT

Market O&D Passengers

Salt Lake City 40,210

Los Angeles 5,360 

Seattle 3,250

Denver 2,940 

Portland 1,790

New York City 1,510 

Boise 1,430 

San Francisco 1,340

Washington DC 1,340

Dallas/Ft. Worth 1,290

Sacramento 1,260 

 Atlanta 1,180

Minneapolis 1,160

San Diego 1,130

Chicago 1,080

Other Cities 26,440

Total 92,710

 

Source: DOT O&D data, 2011 

Air Service Comparison

When the St. George Airport market area is compared to other markets in the Rocky Mountain 

area that have nonstop service to Denver, it is clear that St. George is a larger market without 

nonstop service. Not only is Denver a key destination but it is a major hub airport with United 

Airlines, Southwest Airlines, and Frontier Airlines all having major operations that go to almost 

all major U.S. and International destinations. The following table compares eight cities in the 

region that have nonstop regional jet service to Denver. These markets average almost 5 flights 

per day even though their populations are much smaller than St. George.
Proposal of the City of St. George and St. George Airport Page 12

AIR SERVICE COMPARISON FOR ST. GEORGE

Nonstop Flights

Metro Area Population to DEN (RT)

St. George 261,000 0

Billings 152,100 7

Bismarck 105,490 5

Bozeman 91,710 5

Casper 88,850 4

Durango 50,760 6

Grand Junction 144,300 4

Great Falls 81,940 3

Missoula 107,790 4

Average 102,870 5

Passenger Forecast for Service to Denver

The passenger forecast for Denver and markets beyond Denver is based on Sabre Booking Data 

for St. George Airline for outbound passengers using all airports and adjusted for inbound 

passengers. Market share was determined by competitive service at Las Vegas.

PASSENGER FORECAST FOR ST. GEORGE – DENVER

Outbound Annual

Passengers Outbound Total O&D UA UA O&D

Market Per Day Passengers Passengers Share Passengers

Denver 18.2 6,640 13,540 90% 12,180

Chicago 27.0 9,850 20,100 10% 2,010

Orlando 20.0 7,300 14,890 10% 1,490

New York City 11.9 4,340 8,850 10% 890

Boston 9.8 3,580 7,300 10% 730

Boise 9.2 3,360 6,850 20% 1,370

Philadelphia 7.5 2,740 5,590 10% 560

Houston 7.1 2,590 5,280 10% 530

Atlanta 6.9 2,520 5,140 30% 1,540

Minneapolis 6.7 2,440 4,980 20% 1,000

Spokane 6.3 2,300 4,690 20% 940

Detroit 6.0 2,190 4,470 30% 1,340

Washington DC 5.0 1,820 3,710 30% 1,110

Dallas 4.4 1,600 3,260 20% 650

Colorado Springs 3.8 1,390 2,830 10% 280

Baltimore 3.2 1,170 2,390 20% 480

San Antonio 3.2 1,170 2,390 10% 240

Missoula 1.9 690 2,390 20% 480

Tampa 1.9 690 1,490 20% 300

St. Louis 1.7 620 1,260 20% 380

Other 282.6 103,150 210,000 10% 21,000

Total 444.3 162,150 330,790 49,320
Proposal of the City of St. George and St. George Airport Page 13

This forecast shows that there is a strong demand for service to markets beyond Denver and that 

nonstop service by United Express to Denver will be able to tap this demand. The passenger 

forecast also indicates that the passenger demand will easily support one daily roundtrip CRJ200 flight. The market share is conservatively low since there is already nonstop to Salt Lake 

City and the customer can connect to Delta flights in some cases. There is also indirect 

competition at Las Vegas.

Estimated Profitability for Sky West Airlines

The passenger forecast for one daily round trip flight between St. George and Denver is 

estimated to be 24,600 passenger or one half of the total forecast listed above. An analysis of the 

average fare for comparable markets to Denver (Casper, Grand Junction, Great Falls, and Idaho 

Falls) shows that an average one way fare of $180 for the St. George-Denver market would be 

reasonable.

Based on operating cost for Sky West, the total expense for a one way flight between St. George 

and Denver with a CRJ-200 is estimated to be $5,000. Based on this expense and an average one 

way fare of $180, the airline will need 20,280 passengers to break even for the route, or a load 

factor of 55%. It is expected that the first year will operate at a loss due to the ramp up of 

service and the small community grant will off-set this loss operation. The second year should 

produce a profit as shown below.

REVENUE AND EXPENSE FORECAST FOR SGU-DEN

Passenger Forecast 24,600

Average Fare $180

Passenger Revenue $4,428,000

Other Revenue 44,280

Total Revenue $4,472,280

Number of Daily Flights 1 R.T.

Number of Annual Flights 730

Cost per Flight $5,000

Total Expense $3,650,000

Estimated Operating Profit $822,280 

The first year of operation will have a ramping-up of passengers and fares during the first few 

months. This normally happens when new air service is introduced in a new market and the 

passenger awareness factor is increased as time passes. Marketing and advertising usually starts 

90 days in advance of the air service. It normally takes much longer to develop top-of-the-mind 

awareness for the new air service.
Proposal of the City of St. George and St. George Airport Page 14

Action Plan

Plan Elements

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

are critical to the long-term success of this service. This action plan will address two elements

for St. George Airport: (1) marketing, promotion, and support of new air service; and (2) 

revenue guarantees for initial air service.

Marketing Program

We believe that a strong marketing and advertising program is the key to the success of a grant 

program. For this project, we are allocating $175,000 to advertising, marketing, sales, and public 

relations. We have also included an advance purchase ticket program with a goal of $100,000.

The target audience for outbound service will be the local business traveler. The most effective 

way to contact this customer is by targeting: (1) the traveler; (2) the travel agent; (3) the 

corporate travel coordinator; and (4) the business associations. All of these targets can be 

approached utilizing the same advertising media - radio, newspaper, magazine, direct mail, 

internet and billboards. The target audience for the inbound service will be the business traveler 

and the vacation/leisure traveler. The business travel market for inbound will use the same 

strategy and outbound business travel. The vacation/leisure market will include domestic and 

international travelers. There will be a major emphasis on tour operators and travel agencies that 

specialize in leisure travel.

Advertising and Media Selection

The market in the St. George Airport market area can best be reached by using local newspaper, 

local radio, outdoor, direct mail, trade publications, and online advertising via the internet. The 

Denver market can be reached via newspaper radio, and internet. 

ESTIMATED ADVERTISING EXPENDITURES FOR NEW AIR SERVICE

 Cash In Kind Total

Advertising

 Newspaper/Magazine $ 50,000 $30,000 $80,000

 Radio 20,000 20,000 40,000

 Outdoor 10,000 20,000 30,000

 Production 20,000 20,000

 Internet/direct mail 5,000 5,000

 Total $100,000 $75,000 $175,000

Travel Bank Program $100,000
Proposal of the City of St. George and St. George Airport Page 15

Advance Ticket Sales Program (Travel Bank)

The St. George business community is fully supportive of the new air service to Denver. To 

show its support, the Chamber of Commerce will sponsor a travel bank program for advance 

ticket sales. The initial local incentive being offered for the new air service is a commitment to 

sell at least $100,000 of tickets in advance. The Chamber of Commerce will develop a program 

with a local credit union or bank to escrow and manage the travel bank. The credit union or bank 

will accept deposits and issue debit cards that can be used for travel on Sky West Airlines. 

Direct Sales

Since St. George is the gateway to six major National Parks, there is an excellent opportunity to 

sell tour programs and packages to the area. The St. George Convention and Tourism Bureau 

have a $1 million budget for the development of tourism to the St. George and Zion National 

Park. They have agreed to head up the sales program for the new air service and work with the 

tour operators and travel companies that will sell vacation/leisure business to the area. They

have agreed to also lead a program to capture the Asian market with an extensive sales program 

to the major Asian tour companies. 

Sales Promotions

The St. George Airport in partnership with Sky West Airlines, the Convention and Tourism 

Bureau and the Chamber of Commerce will work with a major radio station in the Denver metro 

area in promoting a Zion National Park vacation package. This type of program has been very 

successful in metro markets in the past.

Public Relations

St. George Airport and its marketing partners will sponsor a trip to St. George for travel writers 

at various newspapers in Denver and the Mid West to sample the new National Parks Vacation 

program. The Airport will also produce and deliver press releases and stories supporting the new 

air service. 

Revenue Guarantee

Management at Sky West has told the City of St. George that the airline will need an incentive 

program that includes a revenue guarantee to offset initial operating losses. Based on the 

analysis of our consultants, it is believed that a $500,000 revenue guarantee will be sufficient to 

support the initial new air service for the first year of operation. 

It is assumed that there will be a ramp up of passengers during the start up period. Load factors 

for Sky West are estimated to be 30% for the first month and increasing to 55% in the peak 

travel months. It is also assumed that the average fares will be over 20% lower in the first few

months to stimulate air travel. 
Proposal of the City of St. George and St. George Airport Page 16

ESTIMATED REVENUE GUARANTEE TO COVER INTIAL OPERATING LOSSES

FOR SERVICE BETWEEN ST. GEORGE AND DENVER

 Monthly Avg. Cost/ Profit

Month Flights Seats L.F. % Passengers Fare Revenue Flight Expense (Loss)

 Jan. 62 3,100 30% 930 $144 $133,920 $5,000 $310,000 ($176,080)

Feb. 56 2,800 35% 980 153 149,940 5,000 280,000 ($130,060)

Mar. 62 3,100 40% 1,240 162 200,880 5,000 310,000 ($109,120)

April 60 3,000 45% 1,350 171 230,850 5,000 300,000 ($69,150)

May 62 3,100 50% 1,550 176 272,800 5,000 310,000 ($37,200)

June 60 3,000 55% 1,650 180 297,000 5,000 300,000 ($3,000)

July 62 3,100 60% 1,860 180 334,800 5,000 310,000 $24,800

Sub Total ($499,810)

Total Revenue Guarantee Needed $500,000

Total Incentive Package

Combining the Small Community Air Service Development Program grant and local 

participation, St. George Airport will be able to offer a very complete incentive package for Sky

West Airlines. The combined incentive package will create an extremely strong marketing 

component, flight guarantee program, and a strong public/private partnership. With the federal

assistance the total incentive package that would be offered for Sky West Airlines new air 

service will be $850,000. Total Federal participation requested is $550,000 with the local 

community providing $300,000, 35.3% of the incentive package. The local community will 

provide 15.4% of the total cash for the incentive package. 

SUMMARY OF INCENTIVE PACKAGE FOR NEW AIR SERVICE

 Federal Local Total

Flight Guarantee $450,000 50,000 $500,000

Marketing and Advertising 100,000 150,000 250,000

Pre-purchased tickets 100,000 100,000

Total $550,000 $300,000 $850,000
Proposal of the City of St. George and St. George Airport Page 17

Performance Measurement and Schedule

Measurement 

The performance of the proposed air service development project will be tracked on a monthly 

and quarterly basis. This tracking will measure the number of passengers carried by Sky West

Airlines, the average fare, and the passenger revenue. The Airport will also monitor the number 

of flights being provided, the aircraft type, and the amount of revenue guarantee paid out each 

month. This measurement of performance will be done by meeting with Sky West Airlines, 

reviewing advance schedules in the Official Airline Guide, and reviewing advance tariffs on file.

Ninety days prior to the start of new air service to Denver, the Airport will institute the 

marketing and advertising program. Daily and monthly load factors will be tracked to see the 

impact of the marketing program. If the passengers do not initially respond to the new air 

service, then the community will implement an additional marketing and advertising program to 

spike the market.

Schedule

It is the assumption of St. George Airport that the following schedule could be employed should 

the grant application be successful. The City and the Airport commit to the completion of the 

grant, if awarded, within two years of acceptance and will diligently pursue an earlier closeout. 

The following timeline is proposed:

PROPOSED TIMELINE

Item Estimated Date

Submit Application June 2012

Execution of Grant Agreements September 2012

Completion of Marketing Plan September 2012

Implement Marketing Program October 2012

Start Air Service January 2013

Community Support

The City and the Airport have created a public/private partnership to aid in our recruitment 

efforts. This public/private partnership is composed of business leaders, educational institutions, 

association representatives, community organizations and residents. The leading organizations 

of the Partnership are as follows:

The City of St. George Sky West Airlines

Washington County St. George Convention & Tourism

St. George Airport Zion National Park

Washington County Economic Development Ft. Pierce Industrial Park

St. George Area Chamber of Commerce Desert Canyons

Dixie State College

 
Proposal of the City of St. George and St. George Airport Page 18

DOT Requirements

Financial Controls

As the sponsor, the City of St. George will be the responsible party for all fiscal matters and 

DOT reporting requirements. As a public entity the DOT can be assured that proper financial 

controls are in place to guarantee that this grant will be used in accordance with the agreement 

between the City and the DOT. The City of St. George understands that the grant is a 

reimbursable grant and the City will be responsible for program expenditures and will submit 

invoices and contracts to the DOT for approval and reimbursement.

Return on Investment

The City of St. George and St. George Airport have developed a cost effective and achievable 

strategy to recruit new air service that will fill the void in air service in the St. George-Los 

Angeles market. This proposal utilizes proven methods and techniques for forecasting and 

developing a successful marketing program. 

The City of St. George and St. George Airport is requesting $550,000 from the DOT and will 

contribute another $100,000 in cash. For this investment, the St. George Airport will again have 

air service to Denver with regional jet aircraft and competitive fares. It is estimated that Sky

West Airlines will achieve an operating profit of $822,000 in the second year of operation. The 

St. George Airport will get $80,000 in revenue from landing fees, fuel fees, passenger facility 

charges, and auto parking from the new flight. It is estimated that the community will attract 

over $6 million in visitor spending as a direct impact from the new air service.

Exit Strategy

The sponsor has developed this proposal as the second phase of a two phase program for new air 

service. The first phase was for a grant to pay for a market study and recruit air service. The 

community received a grant for this phase. The funds from the first grant will be expended by

June 2012. 

The second phase is for a grant to pay for a revenue guarantee and pay for marketing to support 

new air service. If awarded, this grant request will start in September 2012. The advertising and 

marketing will commence 90 days prior to the start of air service and continue for the first six 

months of air service. The revenue guarantee will be in place for the first 12 months. Based on 

the projections contained herein, Sky West Airlines should be profitable at the end of the first 

year and should experience a profitable second year. 

If Sky West Airlines does not meet the forecast number and the losses are greater than expected, 

then the community can either come up with additional funds on its own to supplement the 

revenue guarantee program, reduce airport cost, or the airline may decide to absorb the losses or 

terminate service. 
Proposal of the City of St. George and St. George Airport Page 19

Assurances

The City of St. George and St. George Airport (hereinafter referred to as “Sponsor”) hereby 

provides the U.S. Department of Transportation with the following assurances:

 The Sponsor 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.

 The Sponsor has the legal authority to apply for the Small Community Air Service 

Development Program 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 understanding 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.

 The Sponsor has access to the funds available for that portion of the project costs, 

which are not to be paid by the United States government. The Sponsor has sufficient 

funds to assure operating and maintenance of items funded under the grant 

agreement, which it will own or control.

 The Sponsor 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 

nature 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 

accordance with the Single Audit Act of 1984.

 The Sponsor 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.

 The Sponsor will execute the project in accordance with the approved program 

narrative contained in the project application or with the modifications similarly

approved.

 The Sponsor will furnish such periodic reports as required pertaining to the project 

and activities.
Proposal of the City of St. George and St. George Airport Page 20

LETTERS OF SUPPORT
CITY OF ST. GEORGE 

175 East 200 North 

St. George Utah 8477{)~fldlll,_,.~~ 

June 7, 2012 

The Honorable Ray LaHood 

Secretary 

U nlted States Depa rtment of Transportation 

1200 New Jersey Ave. SE 

Washington D.C. 

Dear Secretary LaHood: 

I am writing you on behalf of the City of St. George to express appreciation for yam efforts 

to make the St. George Municipal Airport a reality and to indicate my support for the 

application for a grant in the 2012 Small Community Air Service Development P1·ogram. 

Since it's opening in Janua1y 2011 the airpol"t has seen increased use of nearly 20 percent 

when compared to the former airport. Those who use the airport have indicated a need for 

other destinations aside from those we currently service. To allow St. George travelers 

better access to the national transportation system, I am supporting the application of St. 

George Ajrport in the Small Community Ait· Service Developmen t Program for a grant to 

s upport new nonstop jet service between St. George and Denver International Airport. 

Over the course of oul" negations with a number of regional airline caniers, they have told 

the community that they need an incentive progr am that will include a revenue guarantee, 

and funds for marketing. To meet this request, the City of St. George is requesting a grant 

of $550,000 with a local contribution and titcket purchase program of $300,000 as an 

incentive for new air service at our new airport. 

Recent air service market studies show that overall passenger demand for St. George is 

quite large but more than 80% of the passengers in the St. George market area ru·e using 

other airports, some as many as 300 miles away. In Southwestern Utah and surrounding 

region there is a strong demand for air service to the Midwest, the East, the Southwest, and 

the Southeast as well as fbghts to Etu·ope. New nonstop flights to Denver can meet this 

demand. 

Sk y West Airlines, head-quartered in St. George bas expressed the most interest at this 

time and could provide nonstop service with 1·egional jet aircraft to Denver. SkyWest has 

requested an incentive package that includes a revenue guarantee, local advertising and 

marketing, a pre-pul·chase ticket program by local businesses, a nd an inbound tour 

program . The initial service would include one daily round trip fli ght between St. George 

and Denver with a 50 seat CRJ-200 aircraft. 

CITY OF ST. GEORGE 

175 East 200 North. StGeorge. Utah 84770 

Phone· (435) 627-4000 

www sgcity.org 

MAYOR 

Daniel D. McArthur 

CITY MANAGER 

Gary s. Esplin 

CITY COUNCIL 

G1l Almquist 

Gail Bunker. Jlmm1e Hughes 

Ben1amm Nickle, Jon Pike 
'l'he new nonstop service to Denver would assist in the continued effort to attract more 

business to the St. George area. It will also make St. George accessible to the international 

market. The four US National Parks near St. George are major attractions for the 

international tourist market and this new nonstop flight will likely be ve ry popular. 

[ would like to express my gratitude for yoU1· careful consideration in this matter. T whole 

heartedly support this effort to obtain a Smail Community Air Service development Grant 

and am available s hould you have any questions regarding this letter or our efforts to 

improve transportation options to our beautiful community. 

Sincerely. 

Daniel D. McArt hur 

Mayor 
June 7, 2012 

Aloha Ley 

Associate Director 

Small Community Air Service Development Program 

United States Department of Transportation 

1200 New Jersey Avenue SE 

Washington, DC 20590 

Subject: SkyWest Airlines' Letter of Support - St. George Municipal Airport 

Dear Ms Ley· 

SkyWest Airlines would like to inform you of our support for the grant application filed by the St. 

George Municipal Airport. 

Given that St. George is the home of SkyWest Airlines. we have a long history and partnership 

with the community. The airport has been active 1n its work to secure additional non-stop 

destinations. We know that the improved connectivity will greatly benefrt the region's growing 

business and leisure community. But with today's high fuel costs and continuing economic 

uncertainty, initiating a new route is incredibly risky. 

The availability of a small community grant to help mitigate the risk could allow us to initiate the 

new route with a sufficient level of financial confidence. 

SkyWest looks forward to working with the U.S. Department of Transportation and the St. George 

Municipal Airport on this important air service initiative. Please contact me if you have questions. 

Sincerely, 

Brad Rawson 

Manager of Network Planning 

SkyWest Airlines 

444 South River Road 

St. Ge<Jrge. Utah 84790 

435.6:34.3000 

www.skywest.com 
SUPPORT LETTER FOR AIRPORT GRANT 

June G. 2012 

The Honorable Ray LaHood 

Secre tary 

United ltes Department nf Tr a n::;portation 

L200 New Jersey Ave. S t: 

Wash ington D.C. 

Denr Secre tary LaHood; 

This letter is sent to you to ind icate my support for the application of t he new St. George 

.t\irpot·t fnr R L in the• :.WI:! Small Community Air Service Development Program. The 

City of St. George ope rwd a nl'w replacemen t airport in Janua ry nf20 11 a nd the respo11$c of 

the local travele rs has bee n outstand ing. To a llow St. George be tter a ccess to the Nntionnl 

Trnns port a tion !'lystem. I ;ull Hupporting t he application of St. George Airport in t he Small 

Community Air Service IJI'wlopment Progra m for a grunt. to s uppurl new nonstop jet 

service between St. Oeorgl' and Denve r International Ait·port. 

The airline!': hnvc tolcl the community t hat t hey need a n incen tive p rogram t hat will include 

tt t•eve nu() gunnmtee. nnd l'unds for marke ti ng. To meel this request, t he City of St. George 

a nd t he new St. Geoq;e fll't!ional Ait·port are que tin~; a gra n t of $550 ,000 with a loca l 

contribution a nd ticket purchase p rogram of S300,000 a s an incentive for new air sc rvt<:e at 

our new Airpua·t. 

Cmrently. t he Airpol't has on~top se rvice by S ky Wesl with five daily Oight to Snit La ke 

City a nd one dt1ily night to LM Angeles International Airport. Recent studies s how t hat 

ove r all passe nger dcmu nd lor St. George is quite large hut over 80% of the pnsscngc •·s in 

the St. George markt't a rea nrt- using othea· airports. The re is a !'ltl'ong lucul dcmnnd fo r air 

service to the Midwc;o;t. tlw ast, the Southwest, a nd the Southeast as well as flights to 

Europe . New nonstop ight ~ to Denver can meet t his demand. 

Sky West An·linC's ha;-; I' XJH'I.!r- ~(·d t he most interest at t his time a nd could provide nonstop 

service with regional jet ain:raft to Denver. Sky West has r equested a n incentive package 

that nclud e~ a revenue guara ntee. local advertising and marke ti ng, a pre·purchase ticket 

progrnm by local ou 1n sscs , and a n in bound tour program. The Initia l service would 

include one dnily wund Ll'ip flight between St. George nnd De nver with 50 seat CHJ·200 

a irc raft. 

11 1 North 100 East · W<lshrngton Ctty, Utah 811780 • Ph (435) 656-6300 • Fax (435) 656 6370 h t · • wu~ 1ngtonc1 y.org 

. Mayor: Konnelt1 F Naltson City Manager Roqor Cartw 

Council Members Bill Hudson • Tilad D Seegmiller • Kress Statwh • Ronntd w Truman • Julf Tuwk 
The new nonstop service to and from Denver be a great help in the continued effort to 

attract more buaineaa to the St. George area. It wlll also make St. Georp acceaaible to the 

international market. The many National Parka near ·st. George are major attractions for 

the interQational tourist market and this new nonstop flight should be very popular. 

Thank you for your attention to this important request. I sincerely endorse the application 

and hope that you will. give full and fair consideration to the City of St. George anti St. 

George Municipal Airport application consistent with all relevant rules and rerulations. 

Sincerely, 'JI/l.,.;t. ________ __ ~~~.n~ . -

Mayor . 

Washingto.n City 
June 6, 2012 

The Honorable Ray LaHood 

Secretary 

United States Department of Transportation 

1200 New J ersey Ave. SE 

Washington D.C. 

Dear Secretary LaHood; 

This letter is sent to you to indicate our support of the application of St. George Airport for 

a grant in the 2012 Small Community Air Service Development Program. The grant 

requested is $550,000 with a local contribution and ticket pw·chase prog1·am of $300,000 as 

an incentive for the start of air service to Denver International Airport. 

The St George area business economy is greatly affected by the available access to our 

community. As the area's Convention and Tourism office looks to attract more international 

business and our Economic Development Council seeks to attract more manufacturers to 

the area the need for expanded air services is c1·ucial to our future success. St George area 

businesses rely heavily on travel and growth. The expansion of routs to our airport will 

truly facilitate both of these needs and will ultimately elevate all business in the area. 

The St George Area Chamber of Commerce stands ready to fully support the expansion of 

SkyWest air services to the Denver area. We will provide local marketing support to 

businesses and citizens in the community and external marketing support to all who are 

seeking to visit and/or relocate to the area. 

We strongly suppol't the application of the City of St. George and St. George Airport for a 

grant under this program and will actively support the new air service. 

Sincerely yours, 

Gregg 

&~ McArthur 

Executive Director- St George Area Chamber of Commerce 

~)~wlrflt~htMt.~/Bu~------- --

97 East StGeorge Blvd. St. George, UT 84770 I p: 435-628-1650 1 f: 435-673-1587 1 www.stgeorgechamber.com 
Execu tive 

Committee 

Lowry Snow 

Chairman 

Traveller 

Development 

Mike Gardner 

Chairman -Elect 

Coral Canyon 

Alan Gardner 

Washington 

County 

Commissioner 

Stephen Nadauld 

President, Dixie 

State College 

Dan McArthur 

Mayor, City of 

St. George 

Linda Baker 

Workers 

Compensation 

Fund of Utah 

Krista Black 

Smart Hard Money 

Mark Hendrickson 

Henriksen/Butler 

Design Group 

Doug Watts 

Watts 

Construction Inc. 

CarolSapp 

Southern Utah 

Home Builders 

Association 

Director 

Scott Hirschi 

7 June 2012 

The Honorable Ray LaHood 

Secretary, U.S. Department of Transportation 

1200 New Jersey Avenue, SE 

Washington D.C. 20590 

Re: Small Community Air Service Development Program for the SGU Airport. 

Dear Secretary LaHood; 

The Washington County Utah Economic Development Council supports the 

City of St. George and St. George Airport application for a grant under the 

Small Community Air Service Development Program. 

The St. George Airport provides passenger and air cargo service for a service 

area that includes the City of St. George, Washington County, and other 

communities in southern Utah, northern Arizona, and eastern Nevada. The 

airport service area has a population in excess of 250,000 people. Good air 

service is necessary for our local businesses to be competitive in today's world. 

I understand that St. George City is applying for SCASDP funds to support a 

new route to Denver with regional! jet aircraft. That additional designation 

would be a critically important enhancement for local air service. Denver is an 

imperative eastern hub connection for our community as current designations 

include Salt Lake City and Los Angeles, both western locations. Being able to 

fly from St. George to Denver and beyond to eastern sites would be extremely 

beneficial. 

We strongly support the City's application to the Small Community Air Service 

Development Program believing the grant would represent a major step 

forward to improving the economy of St. George and the surrounding 

population. We urge your favorable consideration of the City's application. 

Sincerely, 

-.,._- Scott Hirschi, 

Director 

Nashing t o n Co unty Economic Deve l opment Co un cil 

1071 East 100 So uth, Buildi ng C, Suite C7 • St. George, Ut a h 847 70 

(43 5) 652 - 7750 • Fax : 652-4 0 7 3 • www . dixi ebusinessall iance . com 

wce d c@dixie.edu 
ST.GEORGE. ~ .. V{flll' .... & 'PIIIP~M DU.,, 

June 6. 2012 

The Honorable Ray LaHood 

Secretary 

United States Department of Transportation 

1200 New Jersey Ave. SE 

Washington D.C. 

Dear Secretary LaHood: 

This letter Is sent to vou In support of the application of St. George Airport for a grant in 

the 2012 SmaH Community Air Service Development Program. The grant reQuested Is 

$550,000 wtth a local contribution and ticket purchase program of $300,000 as an 

incentive for the start of air service to Denver International Airport. 

The lack of air service to and from Denver and markets to the East Is impacting our local 

economy. St. George Is a major visitor mar1cet with more than 4.400 hotel rooms. 12 golf 

courses, and a maJor conference and convention center. and is the gateway to five 

national paries. We are currently involved in a major push to attract more international 

business and the air service to Denver would alow for easy comections to and from 

Europe, Canada, and Mexico. 

The St. George convention & Tourism Office will work with the City of St. George and St 

George Airport in providing advertising and marketing in Denver. other major markets in 

the United States and In the International marlcetplace. As Denver is already a strong golf 

market for us. we antldpate tailoring our advertising efforts to include the new direct 

flight. 

We believe that this joint effort will produce passenger load factors sufficient for 

SkVWest to achieve a profit and add more flights. We strongly support the application of 

the City of St. George and St. George Airport for a grant under this program and will 

actively support the new air service. 

~~Director. StGeorge ~ Convention & Tourism Office 
June 1, 2012 

The Honorable Ray LaHood 

Secretary 

United States Department of Transportation 

1200 New Jersey Ave. SE 

Washington, D.C. 

Dear Secretary LaHood, 

This is a letter of support for the application of St. George Airport for a grant in the 2012 Small 

Community Air Service Development Program. The grant requested is $550,000 with a local 

contribution and ticket purchase program of $300,000 as an incentive for the start of air service to 

Denver International Airport. 

St. George is a major tourism destination with over 3,000 hotel rooms, 12 golf courses, a convention 

center, and access to Zion National Park and Bryce Canyon National Park. Air Service to and from 

Denver will be a critical piece to attract more visitors to experience Southern Utah. It will allow travel 

time to be cut from an 8 hour drive down to 2 hour flight. This would also allow easy connections 

through Denver to and from other destinations. 

The City of St. George Golf Division is strongly in support of the application of the City of ST. George and 

the St. George Airport for a grant under this program. 

Sincerely, 

Colby Cowan 

Director of Golf Operations 

City of St. George 

CITY OF ST. GEORGE 

175 East 200 North St George, Utah 84770 

Phone: (435) 627·4000 

www.sgclty.org -------

MAYOR 

Daniel D. McArthUI 

CITY MANAGER 

Gary S. Esplin 

CITY COUNCIL 

Gil Almqwst 

Gail Bunker, Benjamin Nickle 

Jon Pike. Gloria Shakespeare 
The Honorable Ray LaHood 

Secretary 

June 8, 2012 

United States Department of Transportation 

1200 New Jersey Ave SE 

Washington D.C. 

Dear Secretary LaHood; 

This letter is sent to you to indicate my support of the application of the St. George 

Airport for a Grant in the 2012 Small Community Air Service Development Program. 

The grant requested is $550,000 with a local contribution and ticket purchase 

program of $300,000 as an incentive for the start of new nonstop jet service between 

St. George and Denver International Airport. 

With the new St. George area replacement Airport built in 2011 the lack of air service 

to and from Denver and markets to the East is impacting our local economy and 

opportunity for growth. The St. George area is a major business and visitor 

destination with 23 golf courses, a major convention center, inviting world class 

events and festivals and of course the gateway to six National Parks and many 

National Monuments, Recreation Areas and State Parks. The St. George area is 

currently involved in a major push to attract more international business and tourism 

and the air service to Denver would allow for easy connections to and from the 

eastern and southern US, Europe, Canada and Mexico. 

Recently attending the dedication of the Beaver Dam Wash and Red Cliffs National 

Conservation Areas in Utah the Honorable Secretary of Interior Mr. Ken Salazar 

expressed the importance of tourism into the West and into Utah for our national and 

international visitors. The addition of the direct air service into Denver will certainly 

help facilitate this travel and assist the growth and well being of the business and 

tourism community in the St. George area. 

Thank you for your attention to this request and appreciate that you will give full and 

fair consideration to the City of St. George and the St. George Municipal Airport in 

their application for this Grant for 2012 Small Community Air Service Development 

Program 

Pamela Hilton 

Board of Directors. St. George Area Convention and Travel Office 

111713a.nebenyVrwes St: Georfile', Ufl;;th,8Lf.790 

p~~@~<::Omt