# 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 Consiste nt with DOT Priorities 6 Community

Profile 6 Economic Data 8 Air Service History 9 Current Air Service 9 Passenger Leakage 10 Top M arkets for St. George 11 Air Servic e Comparison 11 Passenger Forecast for Denver Service 12 Estimated Prof

itability for Sky West 13 Action Plan 14 Plan Elements 14 Marketing Program 14 Revenue Guarantee 15 To tal Incentive Packa ge 16 Perf ormance M easurement 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 L etter from Sky

West Airlines Support L etter from Senator Hatch Support L etter from Congressman Support L etter from Convention and Tourism Bureau Other Letters of SupportProposal 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 SF

424 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, develop ment 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 Tha t 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 IL S 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: 10 0,000 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

- KI

ND 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 b y St. George Convention and Tourism Bureau and

$25,000 for advertising b y 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 b y E.O. 12372.

**H. IS**  **THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?** NoProposal 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

f or an Air Service M arket S tudy to determine passenger demand , to pay f or a Recruiting P rogram to attract new air service , and to pay

f or an advertising program promoting the new airport

. T he second phase is to secure a grant under this ye ar’s program to provide a revenue guarantee and marketing funds to support new non - stop regional jet ai r service to Denver b y Sky West Airlines

. The City of St. George open ed a new replacement airport on January 13, 2 011. This new airport has a 9,300 foot runway c apable of handling most commercial jet aircraft. T he 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 accommo date 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 activel y 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 Li nes, Frontier Airlines, Horizon Air, Sky W est, Southwest Airlines, United Airlines, US Airway s, and Vision Air. A ll of the airlines have requested an incentive package to consider providing service at the new St. George Airport. T he airlines have requested fund s for a revenue guarantee and cost offset for the first ye ar of service, funds for marketing and advertising and a travel bank ticket purchase program.
In order to create an attractive incentive package, the City o f 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 match ed with $100,000 of local cash, $ 10 0,000 of in

kind funding, and a travel bank program of $1 0 0,000 resulting in a total incenti ve package of $850,000.
St. George is located in Washington County i n southwest Utah and serves residents in three states

. T he St. George Airport catchment area encompasses over 25 0 ,000 residents in southern Utah, northern Arizona, and eastern Nevada. S t. George Airport is a small non - hub airport and has regional jet service to Salt Lak e City and commuter service to Los Angeles

. S t. George is a key d estination market being the gateway airport for six major National Parks and other popular destinations.
A l eakage study

w as developed by

S abre Airline Solutions in 2009 and showed that the local market generated 627 airline passengers per day but the St. George Airport only r etained 122 passengers per day , a retention rate of 19.5%. T he destination s that had the larges t amount of passenger demand were Salt Lak e City , San Francisco, Chicago, Denver, Los Angeles, and Phoenix. T he 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

. T he first phase w as to request a grant to fund an Air Service Market S tudy , start recruiting air line service for the new replacement airport , and pay f or advertising to promote the new airport

. T he 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 o f St. George and St. George Airport received the first grant from the Department of Transport ation 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 dev elopment program.
The St. George Airport hired Tri

- Star Marketing Company f rom Irvine, CA, to develop the Air Service Business and Marketing Plan and use th e data from this Plan to develop presentations to be given to target airlines. Representatives of the City and the Airport attended various airport

airline conference s and had discussions with eleven airlines regarding improved or new air service. This program is showing signs of success

. After numerous meetings and discussio ns with Sky W est, in earl y 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. T he airline also reinstated service between St. George and Los Angeles International Airport with E MB

- 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 S t. George developed a marketing and advertising program to promote the upgra ded Sky W est service and continu es 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 o f St. George went ahead with the development of a $175 mill ion replacement airport. The new airport has a 9,300 foot by 1 50 foot runway

and a 35,000 square foot terminal. F uture plans call for extending the runway to 11,500 feet if needed.
The new St. George Airport is a full service Airport. T he passenger terminal includes state of the art sy stems for passenger check

- in, baggage handling, and se curity screening. T here is space for multiple airlines, rental car companies, and a restaurant. C onvenient, 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 theProposal 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 S ky W est Airlines operating as the Delta Connection to Salt Lake City

and as United Express to Los Angeles

. T he Airport meets FAA Part 139 requirements. P assenger screening is provid ed by T SA. T he 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 ye ars prior to the opening

. T he 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

E conomic Development Council, St. George Convention and Tourism, Dixie State College, Zi on National Park, and various local businesses. This group provided funds for the first Small Community Grant in 2010 and has be en 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. T he 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. T he new service will be flown by S ky West Airlines operating as United Express.
The award of the grant will provide mat erial benefits for a broad segment of the traveling public to and from St. George. T he new air service will provide a key l ink 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 La s Vegas International Airport.
The airport and the community e stablished a Public

- Private Partnership in 200 8 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 fro m eight counties in Utah, cities in Arizona, and cities in southeast Nevada. **Community Profile**
St. George was founded as a cotton mission in 18 61 as part of a greater effort of the Church of Jesu s Christ of Latter

- D ay S aints to help the colony become self sufficient. Over the past 150 ye ars, St. George has become the population and commercial center for southern Utah. D ue to its southern location and its early c otton farming, the area is sometimes known as “Dixie”. T he 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 L ake 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 c ounty in the United States. T he greates t economic impact has been the growth of retail sales. The primary c atchment area has seen retail sales increase b y 130% and effective buyi ng income has doubled.

**POPULATION GROWTH OF WASHINGTON COUNTY**
Year Population Growth
2000 90,354

--- 2005 127,120 40.7% 2010 138,115 5 2.9 %
2020 205,000 48.4 % 2030 251,900 22.9 % 2031 Source: Washington County Economic Development CouncilProposal of the City of St. George and St. George Airport Page 7



### The St. George economy i s service orie nted. T here is a large employ ment base in health care , education, government, and tourism. T he St. George Area Chamber of Commerce will continue to support existing employers in the area while the Washington County E conomic Development Council is attracting new businesses that will contribute to the economi c 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 ye ar and is marke ting in the domestic and international markets. There are approximately

4 ,3 00 hotel rooms in the area with prices ranging from $3 9 to $395 per night. The area has 23 golf courses within one hour of downtown St. George. S t. George has the second largest conference center in the state of Utah. D ixie 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 mod erate, the residents of St. George have an excellent quality o f 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 132Proposal 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. T he area is a combination of high plateau desert and mountains. T here are eight counties in Utah, three cities in Arizona, and one city i n 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 B eaver County 6,629 2,870 103.4 90.3 Gar field 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** P age City 7,247 2,600 n/a 158.3 C olorado City 4,820 1,630 n/a 67.8 F redonia City 1 ,313 455 n/a 17.8 **Nevada** Mesquite City 19,750 9,300 n/a 399.3 T otal 261,470 95,778Proposal of the City of St. George and St. George Airport Page 9



### Air Service History
St. George Airport has been served continuously s ince 1972 by

S ky W est Airlines. In the earl y ye ars, Sky

W est shuttled business travelers to Salt Lak e 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 Lo s Angeles International Airport and this service replaced the service to Las Vegas. O n September 1, 2009, S ky W est terminated service to Lo s Angeles. Ine arl y 2011, Sky W est 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 Lo s 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 1,35 0 45 1,35 0 2011 7 210 35 1,630 42 1,840 2012 7 210 35 1,630 42 1,840
S ource: Official Airline Guide, 2000

- 2012

.



### Current Air Service Sky W est currently

o p erates thirty

- five flights p er 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

. T hese 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 relative s and for passengers making connections to Delta Air Li nes flights, other Sky W est flights, and the flights of other airlines. Sky W est operates an EMB

- 120 aircraft between St. George and Los Angeles International Airport as part of the United Express pro gram.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* 6:1 3 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 anal ys is developed by S ab re 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 ye ars have been 40% to 60% higher than fares available at Las Vegas. Over 85% of the St. George

– Denver passengers are using other airports. T he new St. George air service to Denver will drasticall y 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 20 11, an increase of 23.2% from 2009

. T he St. George

- Salt Lake City m arket is the number one market and accounted for 4 3.4 % of the total passengers. T he top 15 markets accounted for 71.5% of the total passengers. T he leakage study developed by S abre showed that the St. George

- Salt Lake City m arket captured 88% of all of the bookings in the local St. George market. O n the other hand, over 86% of the passengers going to destinations other than Salt Lake City utilized another airport . L isted 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. N ot only i s Denver a key

d estination 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 Intern ational destinations. The following table compares eight cities in the region that have nonstop regional jet service to Denver. T hese 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 SERVIC E 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 For **ecast 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 b y 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 Tam pa 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 T otal 444.3 162,150 330,790 49,320Proposal of the City of St. George and St. George Airport Page 13



### This forecast shows th at 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. T he passenger forecast also indicates that the passenger demand will easil y support one daily ro undtrip CRJ

200 flight. T he market share is conservatively l ow since there is already n onstop to Salt Lake City and the customer can connect to Delta flights in some cases. T here is also indirect competition at L as 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 analy sis of the average fare for comparable markets to Denver (Casp er, Grand Junction, Great Falls, and Id aho Falls) shows that an average one way f are of $180 for the St. George

- Denver market would be reasonable.
B ased on operating cost for Sky W est , the total expense for a one way f light between St. George and Denver w ith a CRJ

- 200 is estimated to be $ 5,000 . Based on this expense and an average one way f are of $18 0 , the airline will need 20,280 passeng ers to break even for the route, or a load factor of 55 %. Iti s 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 ope ration. The second ye ar should produce a profit as shown below.

**REVENUE AND EXPENSE FORECAST FOR SGU** 
**- DEN**  Passenger Forecast 2 4,600 Average Fare $1 80 Passeng er Revenue $4,428,000 Other Revenue 44,280 Total Revenue $4,472,280 Number of Daily Flights 1 R.T. Numbe r of Annual Flights 730 Cost per Flight $ 5,000 Total Expense $3,650 ,000 Estimated Operating Profit $ 822,280 

### The first ye ar of operation will have a ramping

- up of passengers and fares during the first few months. T his normall y happens when new air service is introduced in a new market and the passenger awareness factor is increased as time passes
. M arketing and adve rtising usually s tarts 90 day s 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



### Actio **n 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. T hi s 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 t o 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 $1 0 0,000

. The target audience for outbound service will be the local business traveler. T he most effec tive way t o contact this customer is by t argeting: ( 1) the traveler; (2) the travel agent; (3) the corporate travel coordinator; and (4) the business associations. A ll of these targets can be approached utilizing the same advertising media

- radio, newsp aper, magazine, direct mail, internet and billboards. The target audience for the inbound service will be the business traveler and the vacation/leisure traveler. T he business travel market for inbound will use the same strategy and outbound business travel. T he vacation/leisure market will include domestic and international travelers. There will be a m ajor 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 u sing local newspaper, local radio, outdoor , direct mail, trade publications, and online advertising via the internet. The Denver market c an 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 4 0 ,000 Outdoor 10,000 20,000 30,000 Production 20 ,000 2 0,000 Internet/direct mail 5 ,000 5 ,000 Total $100 ,000 $ 75 ,000 $175 ,000 Travel Bank Program $100,000Proposal of the City of St. George and St. George Airport Page 15



### Advance Ticket Sales Program **(Travel Bank)** The St. George business community i s fully s upporti ve of the new air service to Denver

. T o show its support, the Chamber of Commerce will sponsor a travel bank program for advance ticket sales

. T he initial local incentive being offered for the new air se rvice is a commitment to sell at least $1 0 0,000 of tickets in advance. T he 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 t o six major National Parks, there is an excellent opportunity t o sell tour programs and packages to the area. T he St. George Convention and Tourism Bureau have a $ 1 million budget for the development of tourism to the St. Ge orge and Zion National Park. They

h ave 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. T hey have agreed to also lead a program to ca pture the Asian market with an extensive sales program to the major Asian tour companies

. **Sales Promotions** The St. George Airport in partnership with Sky W est Airlines, the Convention and Tourism Bureau and the Chamber of Commerce will work with a majo r radio station in the Denver metro area in promoting a Zion National Park vacation package. T his ty pe of program has been very successful in metro market s 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

W est has told the City

o f St. George th at the airline will need an incentive program that includes a revenue guarantee to offset initial operating losses. B ased on the an al ys is of our consultants, it is believed that a $5 0 0,000 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. Lo ad factors for Sky W est are estimated to be 3 0% 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 3,1 00 3 0 % 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 3,1 00 40 % 1,240 162 200,880 5,000 310,000 ($109,120 ) April 60 3,0 00 45 % 1,350 171 230,850 5,000 300,000 ($ 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 5,0 00 310,000 $24,800 Sub Total ($499,810) **Total Reven ue Guarantee Needed**  **$5 0**  **0,000**


### Total Incentive Package Combining the Small Community A ir Service Development Program grant and local participation, St. George Airport will be able to offer a very c omplete incentive package for Sky West Airlines

. T he combined incentive package will create an extremely s trong marketing component, flight guarantee program, and a strong public/private partnership. W ith the federal assistance the total incentive package that would be offered for Sky W est Airlines new air service will be **$ 850,000** 
**.** Total Federa l participation requested is $55 0,000 with the local community

p roviding $ 30 0,000, 35.3% of the incentive package. T he local community w ill provide 15.4% of the total cash for the incentive package.

**SUMMARY OF INCENTIVE PACKAGE FOR NEW AIR SERVICE** Federal Local Total Flight Guarantee $45 0,000 50,000 $5 0 0,000 Marketing and Advertising 100,000 15 0,000 2 5 0,000 Pre

-purchased tickets 1 0 0,000 1 0 0,000 Total $550,000 $300 ,000 $ 850 ,000Proposal 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 quarterl y basis. T his tracking will measure the number of passengers carried by Sky W est Airlines, the average fare , and the passenger revenue
. The Airport will also monitor the number of flights being provided, the aircraft ty pe, and the amount of revenue guarantee paid out each month. T his measurement of performance will be done by m eeting with Sky

W est Airlines , reviewing advance schedules in the Official Airline Guide, and reviewing advance tariffs on file. Ninety d ay s prior to the start of new air service to Denver , the Airport will institute the marketing and advertising program. D aily and monthly

l oad factors will be tracked to see the i mpact of the marketing program. If the passengers do not initially respond to the new air service, then the community w ill implement an additional marketing and advertising program to spike the market.
**Schedule**
It is the assumption of St. George Airpo rt that the following schedule c ould be employed should the grant application be successful. The City and the Airport commit to the completion of the grant, if awarded, within two ye ars of acceptance and will diligently p ursue an earlier closeout. The foll owing timeline is proposed: **PROPOSED TIMELINE** It em Estimated Date Submit Application Ju ne 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. T his public/private partnership is composed of business leaders, educational institutions, ass ociation representatives, community o rganizations and residents. T he 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 De sert Canyons 

### Dixie State CollegeProposal 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. A s 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 C ity 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 o f St. George and St. George Airport h ave developed a cost effective and achievable strategy t o recruit new air service that will fill the void in air service in the St. George

- Los Angeles market

. T his proposal utilizes proven methods and techniques for forecasting and de veloping a successful marketing program.
The City o f St. George and St. George Airport is requesting $55 0,000 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 w ith 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, passeng er facility charges, and auto parking from the new flight

. It is estimated that the community w ill 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 f or a market study

and recruit air service. T he community

r eceived 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 f or a revenue guarantee and pay f or marketing to support new air service. I f awarded, th is grant request will start in September 2012

. The advertising and marketing will commence 90 day s prior to the start of air servic e and continue for the first six months of air service. T he revenue guarantee will be in place for the first 12 months. B ased on the proje ctions contained herein, Sky W est Airlines should be profitable at the end of the first ye ar and should experience a profitable second year. If Sky W est Airlines does not meet the forecast number and the losses are greater than expected, then the community

c an either come up with additional funds on its own to supplement the revenue guarantee program , reduce airport cost, or the airline may d ecide to absorb the losses or terminate service.Proposal of the City of St. George and St. George Airport Page 19



### Assurances The City o f St. George and St. George Airport (hereinafter referred to as “Sponsor”) hereb y provides the U.S. Department of Transportation with the following assurances:

 The Sponsor will comply w ith 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 ha s the legal authority to apply f or the Small Community A ir Service Development Program grant, and to finance and carry out the proposed project; that a resolution, motion, or similar action has been duly a dopted 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 app lication 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 ass ure 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 full y 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 o ther sources, and such other financial records pertinent to the project. T he accounts and re cords shall be kept in accordance with an accounting sy stem 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, an y books, documents, papers, and records of the recipient that are pertinent to the grant.

 The Sponsor will ex ecute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved.

 The Sponsor will furnis h 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

Th e H onor able Ray La H ood Sec r etary U nlted State s Dep a rtm e nt of Transportati o n 12 00 New Jer sey Ave. SE Was hington D.C.
D ea r Secretary LaHood:
I a m writing yo u o n b e half of the Cit y of St. Georg e to e xpres s appr eciation f or yam effo r ts t o mak e t h e St. George Muni c ipal Airport a r e ality and to indicate m y s upp o rt for the applicat ion for a grant in t he 2012 Small Community Air Service D evelop m ent P 1·ogram. Since it 's openin g in Janua1y 2011 the airpol"t h as see n increased u se of n ea rly 20 percen t wh e n compared to the f or mer ai rport

. Tho se who u se the airport h av e indicated a n eed for ot h er destinations aside from t hose we curre ntl y se rvice. To allow St. George tra veler s b e tter access to th e national tra n s porta tion syste m , I am su pport ing th e a pplication of St

. Geo r ge Ajrp o rt in t h e Small Community Ait· Se rvi ce D eve lopm e n t Program for a gran t to s upp ort new n o n stop j et service b e tw ee n St. George and D e n ve r In te rn atio n a l Airp o rt. Over th e cours e of o ul" n egatio n s with a num b e r of r egi o nal airlin e ca ni e r s, the y have told t h e co mmunity that t h ey ne e d an incentiv e prog r a m t h at will includ e a revenu e guarantee, and funds for mark et in g. To m ee t thi s requ est, the C ity of St. Geor ge i s requesti ng a grant of $550, 000 with a l oca l co ntribution and titck e t purchase progr a m of $300,000 as an inc e ntive for new air se rvice at our new airport.
Rece nt air service mark e t s tudies show tha t ove rall passenger d e mand for St. Georg e 

### i s quite large but more than 80% o f the pa sse n gers i n the St. Geo rg e market area ru ·e u sing ot h e r airports , so m e a s m a n y a s 3 00 mil es away. In Sout hw ester n Utah and sur roundin g r egio n there i s a s tro n g d e mand for air se r vice 

### to t h e Midwe st, the East, t he Southwest , and t h e Southeast as well as fb g ht s to Etu·op e. N e w n onstop flight s to D e nv e r can me et this d e mand.
S k y We st Airlin es, h ead-quartered in St. George b as e xpr esse d th e mo s t int e rest at thi s time and could provid e non s top service with 1· e gional jet aircraft to D e nv e r. SkyWest h as r e quested an inc e n t iv e packag e that includ es a r eve nu e guarantee, local advertising a nd marketing , a pre-pul·chase ticket program b y loca l businesses , a nd a n inbound tour p r ogram
. The i n it i al ser vi ce would includ e o n e d a ily round trip fli g h t b etween St. Georg e a nd D e n ver wi t h a 5 0 sea t CRJ-200 a i rcraft.

CITY OF ST. GEORGE 175 East 200 North

. StGeorge

. Utah 84770 Phone · (435) 627-4000 www sgcity

. org MAYOR Da nie l D

. M c Arthur C IT Y MANAGER Gary s
. E s plin CITY COUNCIL G 1

l Almqui st Gail Bunker

. Jlmm1e Hughes Ben1am m Nickle , Jon Pike'l 'he n e w nonstop serv i ce to Denver w o uld assist in the contin u ed effo rt to attrac t m o r e busi n ess to the St. George area. It will also mak e St. George accessible to the internati onal market. Th e four US National P arks n ea r St

. George are major attrac tions for the internatio nal touri s t mark e t and thi s new n o n sto p flight will likely b e ve ry popular. [ would lik e to e xpress my gratit ude for yoU1 · care ful co nsideration in this matter. T wh ole h ea rtedly support t hi s e ff ort to obtain a Smail Co mmunity Air Service d evelo pment Gr ant a n d am availabl e s h o uld yo u h ave any qu estions regardi n g t hi s l etter o r o ur efforts to improve tran s p ortation o p tio n s t o o ur b ea u ti ful co mmuni ty. Si n ce r e ly.

Dani e l D. McAr t hur MayorJune 7, 2012

A l oha Ley Associate Director Small Community A i r Serv i ce Development Program Un i ted States Department of Transportat i on 1200 New Jersey Ave n ue SE Washington , DC 20590
S ub j e c t : S kyWe s t Airlines ' Letter of Support - St. George Municipal A i rport

Dear Ms Ley · SkyWest Ai r lines would like to info r m you of o ur support for the grant a pplication filed by the St. George Municipal Airport

. Given that St. George is t h e h ome o f SkyWest Airlines. w e have a l o ng his to r y a nd p artne rs h ip wi t h the community

. T h e airport has been active 1n its work to secure addit i onal non - stop dest i nations

. We know that the i mproved connectiv i ty will greatly benefrt the region ' s growing bus i ness and le i sure commun i ty

. But with today ' s high fuel costs and continuing economic uncertainty , initiating a n e w rou t e is incredibly risky

. The availability of a small community grant to help mitigate the r i sk could allow us to in i tiate the ne w route w ith a sufficient level of financial confidence

. SkyWest looks forward to working with the U

. S

. Department of Transportation and the St. George Mun i cipal A i rport on this important air serv i ce init i ative

. Please contact me i f you have questions

. Sincerely ,

Brad Rawson Manager of Network Plann i ng SkyWest Airlines

4 44 So uth Rive r R oad S

t

. G e<Jrge

. U tah 8 4 790 4 3 5

. 6 :34 .3000

www . s k

y w est

. co m

### SUPPORT LETTER FOR AIRPORT GRANT

June G

. 2012

The H o norabl e Ra y LaHood Sec r e tary U ni ted**lt es**  D e p artm e nt n f T r a n ::;port at i o n L

200 New Jer sey Ave

. S t: Was h ington D

. C.
Denr Sec r e tary LaH oo d ; This l etter i s se n t to you to in d icate my s upport fo r the application o f t h e new St

. Geo r ge .t\ irp ot·t fnr R**L** in th e• :.WI:! S m all Co mmunity A ir Se rvic e D e velopment Program

. T h e C ity o f S t. Ge o r ge o p e rwd a nl'w r e p l aceme n t airp o rt in Ja nu a r y nf20 11 a nd the r es po11$ c of the l ocal travel e r s h as b ee n outsta n d in g
. To a ll ow St. Geo rge b e t te r a ccess to th e Nntio nnl Tr n n s p o r t a t ion !'lyste m
. I ; ull H upporting t h e appli cat ion o f St. Geo r g e Air p o rt i n t h e S mall Co mmuni ty Air Se r vice IJI'w lo pm e n t Pr og r a m f o r a grunt. to s upp u rl n ew n o n sto p jet se rv ice b e tween St. Oeo r gl ' and D e n ve r In ternati o nal Ait·po r t.
Th e airline !': hn vc to lcl t h e co m munity t ha t t h ey n ee d a n in ce n t i ve p r ogram t h at wi ll includ e tt t• e v e nu () gunnmtee. nnd l'und s fo r mark e ti n g. To m eel thi s r e que st, t h e C ity of St. George a nd t h e n ew St. G eo q ;e fll 't!io nal A it·por t are**que tin~;**  a g r a n t o f $55 0 , 000 with a l oc a l co ntri bu ti o n a n d ti c k et purc ha se p r ogram of S300 , 000 a s an incentive for new air sc r vt<:e at o u r n e w Airpu a ·t.
C mre ntl y . t h e Ai rp o l't h as**on~to p**  se rvi ce by S ky We sl with fiv e dail y Oight to Sn i t La k e C ity a n d o n e d t 1il y ni g ht t o L M A n ge l es In te rna tio nal A irp o r t

. Rec e n t s tudi es s h o w t h at o v e r all p asse n ge r dcmu n d l or St. Geo r g e is quite l arge hut ove r 80 % o f the pn ssc n g c • · s in the St

. Geo r ge mark t't a r e a nrt- u si n g o th e a · ai rp o rt s
. Th e r e i s a !'l tl' o n g lu c ul dcmnnd fo r air se r v i ce t o th e Midwc;o;t. tlw**ast ,**  the Southwe s t , a nd th e S o uth east as w e ll as fli ghts to Europ e
. Ne w n o n s t op**ig ht** **~** t o Den ve r c an m ee t t h is d e mand

. S k y West An·lin C' s h a;-;**I' XJ** **H' I.!r-** **~(·d** t h e m ost i n terest at t h is tim e a n d co uld pro vid e n o n s to p se rvi ce with r eg i o n al jet ain: raft to D e n ve r
. Sky West h as r e qu es t e d a n in ce n tive pa c kag e t ha t**nclud e~**  a r eve nu e g u ara n tee. loca l a d ve r ti s in g and mark e ti n g , a pr e· purc h a se tic k et pr og r nm b y l oc al**ou 1n** **sscs ,**  and a n i n bound t o ur p r og ram
. Th e Ini tia l s erv ice would i n clude o n e dni l y wund Ll'ip flig h t between St. Geo r ge n nd De n ver with 50 sea t C HJ· 200 a irc r aft.

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

. Mayor : K o n ne lt 1 F N altson City Ma n ager Ro q or Ca rt w Council Memb e rs Bill Hudson • Tilad D Seegmiller • Kress Statwh • Ronntd w Truman • Julf TuwkThe 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 CityJune 6 , 2012

The Honorable Ray LaHood Secretary United States Department of Transportation 1200 New J ersey Ave. SE Washington D.C.
D ear 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 In ter n ational Airpo rt. The St George area business economy i s greatly affected by the available access to our community. As the area's Convention and Tourism office l ooks 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· u cial to o ur future s ucc ess. St Georg e area businesses r ely heavily on travel and growth. The expa n sio n of routs to our airport will tr ul y 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 s upport the expansion of SkyWest air se rvices to the Denver area. We will provide local marketing support to businesses and citizens in the community and externa l marketing support to all who are seeking to visit and/or relocate to the area. We strong ly suppol't the application of the City of St. George and St. George Airport for a grant under this pro gram and will actively support the new air serv i ce.
Sincerely yo ur s ,

# &~ 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.comExec u tive Com m ittee Lowry Snow Chairman Traveller D evelop ment Mike Gardner Chairman

- Elect Coral Canyon Alan Ga r dner Washington County Commiss io ner Stephen N adauld Presi de nt, Dixie Stat e College
Dan McA rth ur May o r, City of St. George
L i

nda B a ker Workers Compe ns ation Fund of Utah
Krista Black Smart Hard M oney Mark Hendrickson Henrik sen/Butler Design Group Doug Watts Watts Construction Inc. CarolSapp Southern Utah Home Builders Association Director Scott Hirsch i 

### 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
Na sh in g t o n C o u nt y Econo m ic Deve l opme n t C o u n ci l 1071 Eas t 10 0 S o u th , Bui ld i ng C , S uit e C7 • S t. Ge orge, U t a h 847 70 ( 4 3 5) 652

- 775 0 • Fa x : 6 5 2-4 0 7 3 • www . dix i eb u sinessal l iance

. co m wc e d c@d ixie.edu

# ST.GEORGE .**~** ..V{flll'

.... &**'PIIIP~M** 

# DU.,,

J une 6

. 201 2

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 loca l contribution and ticket purchase program of $300 , 000 as an i ncentive 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 i nvolved in a major push to attra ct more i nternational business and the air service to Denver would alow for easy comections to and from Europe , Canada , and Mexi co
. 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 tailor i ng 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 OfficeJune 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 o f support for the application of St. George Airport for a grant in the 2012 Small Comm un ity 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 f l ight. This would a l so 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

.

Sincere l y ,

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 Dan i e l D

. McA rt hUI CITY MANAGER Gary S. Esplin CITY COUNCIL Gi l Al mqwst Gail B un ker , Benjam in Ni c k le J on Pi k e. G l oria Shakespea reThe 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 S t: Georfile', Ufl;;th,8Lf.790**p~~@~<::Omt**