Proposal of Tri-Cities Airport • Pasco, Washington • July 2014

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0113

SUMMARY INFORMATION

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

NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: 

Tri-Cities Airport

Name of Signatory Party for Legal Sponsor:

Ron Foraker, Airport Director

DUNS Number:

04-583-4921

EIN/Tax ID:

91-600100222

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

1._TRI-CITIES AIRPORT, PASCO, WASHINGTON_

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY 

PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE).

1. Tri-Cities Airport (PSC)

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY THE FEDERAL AVIATION 

ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO,” PLEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A 

CERTIFICATE OR WHETHER AN APPLICATION UNDER PART 139 IS PENDING.)

 Yes No (explain) X
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A 

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. WA-04

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

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

Development Program Grant

If previous recipient: Year of grant(s): 2003; Did not execute contract with DOT

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

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

PUBLIC PRIVATE

1. Tri-Cities Airport 1. TRIDEC

2. Port of Pasco 2. Tri-City Regional Chamber of Commerce

G. PROJECT PROPOSAL:

1. GRANT GOALS: (CHECK ALL THAT APPLY)

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services

Other (explain below)

X

X X

X

X
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014

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

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

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

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

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

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

community

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

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

case for new air service

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

counted as in-kind contributions only

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

(below wing) services provided by third party ground handlers

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

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

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

Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

X

X

X

X
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $750,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $35,339.30

3b Non-airport cash funds $69,000

3 Total local cash funds (3a + 3b) $104,339.30

4 TOTAL CASH FUNDING (1+2+3) $854,339.30

In-Kind contribution

5a Airport In-Kind contribution** Various

5b Other In-Kind contribution** Various

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) Various

6 TOTAL PROJECT COST (4+5) $854,339.30

J. IN-KIND CONTRIBUTIONS**

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

describe the source(s) of fund(s) and the value ($) of each.

Local media companies will offer discounts on advertising; partner airlines will offer free tickets 

for giveaways, etc.

K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

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

Process for review on (date) _____________.

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

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

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

_____________________________________________________________________________________________
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 1

TABLE OF CONTENTS

Legal Sponsor 1

Introduction 2

The Tri-Cities Air Service Market 3

Passenger Heat Maps of the Catchment Area 3

Ten Year Passenger Trend 5

Top Origin and Destination Markets 6

Air Service Needs and Deficiencies 8

Airfares in Pacific Northwest Markets 8

Passenger Leakage Profile 9

Regional Airfares 10

Air Service Development Plan: Tri-Cities – Los Angeles 11

Top Los Angeles Basin Markets without Service 12

Route Profile and Potential Performance 14

Project Funding 15

Project Timeline 16

Public/Private Partnership 18

Conclusion 19

LEGAL SPONSOR

The Tri-Cities Airport is the legal sponsor responsible for administering the proposed air service 

development program. The Airport is a government agency, operated by the Port of Pasco.

Tri-Cities Airport

3601 North 20th Avenue

Pasco, Washington 99301

Ron Foraker, Airport Director

(509) 547-6352

rforaker@portofpasco.org

Section Page Number
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 2

INTRODUCTION

For this year’s Small Community Air Service Development (SCASD) Grant application the Tri-Cities 

Airport has developed additional community cash to match its request for federal funding. In 

addition, the Airport has met with its two target carriers, in person, in the last three months, to 

ensure their support for this project. With this collation of support the Airport has more 

confidence that its proposed service, daily non-stops between the Tri-Cities and Los Angeles, its 

number one unserved market, will be successful.

Tri-Cities Airport has been tremendously active in air service development over the last decade, 

recruiting new air service on five new routes. It accomplished these air service goals without 

seeking federal aid. At the same time, the air service climate has changed dramatically, with 

carriers now avoiding routes without risk sharing in place. The Airport now finds itself in an 

environment where additional air service 

development will be either difficult, or 

impossible, without the help of a SCASD Grant.

While Tri-Cities Airport has solid service to a 

number of hubs, Los Angeles ranks as the 

market’s number one destination, averaging 

145 passengers per day each way (PDEW). However, only 51% of those passengers use Tri-Cities 

Airport, with the others “leaking” to airports in Seattle/Tacoma, Spokane, and Portland.

Passenger retention is a major problem in the Tri-Cities. The Airport only retains 43% of the 

passengers generated by its catchment area. The Airport completed a True Market Study in 

preparation of this application to better understand its deficiencies for passengers. In most 

cases those passengers leak to other airports for lower fares. In 2013, the Tri-Cities had the 

highest average fare in all of Washington and Oregon, at $215 one way.

The Airport has developed more than $104,000 in local cash matching funds for this Grant. It is 

seeking $750,000 in federal assistance to provide a revenue guarantee to a network carrier for

Los Angeles service. This amount will allow it to mitigate risk for the new carrier, as well as 

provide marketing to help curb its passenger leakage.

“Passenger retention is a major problem 

in the Tri-Cities. The Airport only retains 

43% of the passengers generated by its 

catchment area.”
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 3

THE TRI-CITIES AIR SERVICE MARKET

Current and Historical Air Service

The Tri-Cities Airport, serving the cities of Pasco, Kennewick, and Richland, is the main gateway 

for a huge area in eastern Washington State, northeastern Oregon, and parts of the panhandle 

of western Idaho. As the only airport in its region with service on more than one carrier, the 

Airport has a large role in 

connecting a regional 

population of nearly 1.1 million 

people to the national air 

transportation system.

The Airport’s catchment area, 

including all the areas shaded 

in green in map 1, is home to 

1,036,438 people as of the 2010 

US Census. This map illustrates 

the relative passenger 

generation of each zip code 

within the catchment area –

the darker the green, the more 

passengers generated. This 

map does not measure the 

number of passengers that use 

the Tri-Cities Airport, but all 

passengers using all airports in the region.

The immediate Tri-Cities Airport catchment area, 

which includes the main three-county area 

surrounding the airport, generates more than 60% 

of all the passengers in the larger region. Most of 

those passengers are generated in the Tri-Cities. 

Benton County, seen in the darkest green in map 

2, is the largest of the three and generates 59.9% 

of all passengers in the larger region.

MAP 1: Passenger Heat Map of Tri-Cities Airport Extended Catchment Area

Source: Sixel Consulting Group PSC True Market Study, YE3Q13

MAP 2: Passenger Heat Map of PSC’s Immediate Catchment

Source: PSC True Market Study, YE3Q13
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 4

Tri-Cities Airport has non-stop service to nine cities in the summer season, on four airlines (see 

map 3). Alaska’s regional sister-company operates service to both Seattle/Tacoma and 

Portland; Delta operates service with regional partners to 

both Minneapolis/St. Paul and Salt Lake City; United’s 

regional partners operate flights to Denver and San 

Francisco; while Allegiant operates year ‘round service to 

Las Vegas and Phoenix/Mesa, with seasonal flights to Los 

Angeles (LAX). It should be noted, LAX service will be 

discontinued in September of 2014, and it does not reappear in the Allegiant schedule at this time.

Tri-Cities airline capacity is flat in August 2014 as compared 

to August 2013 (see figure 1). Allegiant’s capacity is up a 

little more than 25%, as it brought back Los Angeles service 

for the summer, but that service will end in September. 

Network airline capacity is actually down from the summer 

of 2013. The Tri-Cities network carriers, Alaska, Delta, and 

United, have cut capacity by an average of 41 departing seats per day, or 4%, as of August 

2014. United had the biggest cut, reducing Tri-Cities service by an average of 38 departing seats 

per day, or almost 18%. 

Alaska is the capacity 

market share leader in the 

Tri-Cities, with 36% of all 

available seats. Delta 

offers 32% of the market’s 

available seats. United 

ranks third, with 18% of 

available seats, while 

Allegiant offers 14% of the 

Tri-Cities airline capacity.

FIGURE 1: Scheduled Service at Tri-Cities Airport, 8/12 vs. 8/13

Source: Sixel Consulting Group; OAG Schedule Data, July 2013

MAP 3: Current Service at Tri-Cities Airport

Source: OAG Schedule Data

Non-Stop Departures Seats Departures Seats Capacity

Carrier Destination Per Day Per Day Per Day Per Day Change

Horizon/Alaska SEA 4.7 353 4.6 348 -1.4%

PDX 1 76 1 76 0.0%

Horizon/Alaska Total 5.7 429 5.6 424 -1.2%

Delta MSP 1.8 140 1.8 140 0.0%

SLC 3.8 242 4 244 0.8%

Delta Total 5.6 382 5.8 384 0.5%

United DEN 2.9 153 3.3 165 7.3%

SFO 2 100 1 50 -100.0%

United Total 4.9 253 4.3 215 -17.7%

Allegiant LAS 0.5 80 0.5 75 -6.7%

LAX 0 0 0.3 48 100.0%

AZA 0.3 48 0.3 48 0.0%

Allegiant Total 0.8 128 1.1 171 25.1%

Pasco/Tri-Cities Total 17 1192 16.8 1194 0.2%

Aug-13 Aug-14
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 5

Fares in the Tri-Cities have been creeping upwards over the last four years to their highest point 

in half a decade. The average one way fare in the market was $215 in 2013, which is up from 

$196 in 2010 – an increase of 10% (see figure 2). Rising fares have begun to suppress passengers, 

as 2013 saw passengers decline in the market for the first time since 2008, when the Great 

Recession started.

In 2013, Tri-Cities Airport averaged 888 passengers per day each way (PDEW), on almost 599,000 

domestic passengers and more than 49,000 international passengers (see figure 2). 2013 saw a 

passenger decline of almost 1% over 2012, which was the all-time record year for the market. 

The market saw a big jump in passengers between 2009 and 2010, when Allegiant aggressively 

expanded service into the Pacific Northwest. The subsequent decrease in fares was a result of 

this Allegiant capacity.

Allegiant’s impact is also seen in the list of the Tri-Cities’ top origin and destination passenger 

markets. The three markets to which Allegiant has provided non-stop service, Las Vegas, 

Phoenix/Mesa, and Los Angeles, all rank in the top five largest markets for 2013 (see Figure 3). 

FIGURE 2: O&D Passengers and Average One Way Fares, Tri-Cities Airport

Source: US DOT OD1A, Calendar Year 2004 – Calendar Year 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 6

The Tri-Cities Airport generated an 

average of 145 PDEW to and from the Los 

Angeles Basin in 2013, 113 PDEW to and 

from Las Vegas, 90 PDEW to and from 

Phoenix/Mesa. Those numbers include 

both passengers who use the Tri-Cities 

Airport, and passengers who “leak” to 

other airports. Overall, Tri-Cities Airport 

retains just 43% of the passengers 

generated in its catchment area.

While Allegiant’s service at Tri-Cities 

Airport provides the region with a low cost 

alternative for leisure travel, the core of 

the Tri-Cities market is driven by eastern 

Washington and northwest Oregon 

businesses. Large nuclear research and 

engineering companies such as Areva, 

Battelle, Bechtel, Energy Northwest, URS, 

and CH2M Hill generate more than one 

hundred passengers per day each way, 

primarily on network carriers.

Allegiant’s presence, as noted, brings 

down the overall average fare in the TriCities market, but network carriers rarely 

match Allegiant on price. The result is 

high fares on all other carriers, even in 

markets where they directly compete with 

Allegiant. If you travel for business, and 

must travel on specific days of the week, 

or at specific times, Allegiant is rarely an 

option. The Tri-Cities’ business travelers 

subsequently pay much more for access 

FIGURE 3: Top 25 O&D Passenger Markets at Tri-Cities Airport

Source: US DOT OD1A, Calendar Year 2013

FIGURE 4: Average One Way Fares at Top 25 Markets at PSC

Source: US DOT OD1A, Calendar Year 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 7

to the national air transportation system than the average fares would illustrate.

The overall average fares in Allegiant markets run 25% lower than the overall average fares in 

non-Allegiant markets. In an extreme example, the average one way fare to and from Las 

Vegas, in 2013, was $98 (see Figure 4 on previous page). Meanwhile, the average fare in 

Denver, which is a market served non-stop by United, was $176 each way, despite the fact that 

both cities are roughly the same distance from the Tri-Cities. The Tri-Cities overall non-Allegiant 

average one way fare, not including taxes and fees, was $230 in 2013, versus the fare including 

Allegiant, which was $215.

Despite some of the highest fares in the West, passengers in the Tri-Cities provide the Airport with 

some of the region’s highest load factors – or percentage of seats filled. In calendar year 2013, 

the Tri-Cities market had filled an average of 79.4% of its available seats (see Figure 5). Load 

factors in the market peaked in December of 2013, at 90.3% for that month.

The market’s high load factors, coupled with high average fares, indicate the ability of the 

market to profitably support its air service. It also illustrates the ability of the market to support 

additional air service. There will be a gap in non-stop connectivity with the loss of Los Angeles 

service on Allegiant in the fall of 2014, and that gap would likely be best filled by a network 

carrier offering daily flights.

FIGURE 5: Passengers and Seats per Day Each Way, and Load Factor at Tri-Cities Airport

Source: US DOT T100; January 2011 – December 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 8

AIR SERVICE NEEDS AND DEFICIENCIES IN THE TRI-CITIES

The Tri-Cities boast the fastest growing economy in the Pacific Northwest, some of the highest 

airline load factors in the region, and some of the highest average fares. The Tri-Cities has seen 

capacity cuts in the last two years that 

have made it one of the more underserved 

markets in the country.

An analysis of average one way fares in 

Oregon and Washington markets shows the 

Tri-Cities has the highest average fare in the 

region as of calendar year 2013. The one 

way average in the Tri-Cities is $215, which is 

21%, or an average of $38 each way, 

higher than the regional average fare (see 

Figure 6). Tri-Cities had a higher average 

fare than its similarly sized peer markets, 

including Medford, which had 15% lower 

fares; Eugene, which had 24% lower fares; and Bellingham, which had 75% lower fares.

As previously noted, when Allegiant passengers are removed from the Tri-Cities analysis, the 

average fare jumps to $230 each way. These high average fares on network carriers have 

started to suppress the number of passengers using Tri-Cities Airport, which dropped in 2013 by 

1%. It was the first passenger decline in the market in six years.

In the last six months, the Airport sought to better quantify this passengers suppression, and also 

its passenger retention and leakage within its catchment area. It commissioned a True 

Market/Leakage Study in support of its air service development efforts. As the Tri-Cities is 

somewhat isolated – more than four hours away from both Seattle/Tacoma and Portland by car 

– it was anticipated that leakage would be relatively minor.

By pulling actual ticket stock by zip code within the catchment area, through the Airline 

Reporting Corporation (ARC), Tri-Cities Airport found it retained just 43% of the catchment’s 

passengers as of the year ended third quarter 2013 (see map 4 on next page). Surprisingly, the 

biggest draws away from Tri-Cities Airport for passengers in the catchment area are the airports 

FIGURE 6: Average One Way Fare in WA+OR Markets 

Source: US DOT OD1A, Calendar Year 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 9

in Seattle and Portland. The True Market 

Study found that 27% of Tri-Cities passengers 

drive to Seattle, over a Cascade mountain 

pass, to access flights, while another 18% 

drive through the Columbia River Gorge to 

Portland. Only 7% of passengers drive the 

two hours to Spokane, mainly because 

Spokane’s service profile is so similar to that 

of the Tri-Cities. Smaller percentages of 

passengers use other airports in the region 

with less service.

The Tri-Cities Airport catchment area 

generates almost 1.4 million annual 

passengers or an average of 1,885 

passengers per day each way (PDEW) (see 

figure 7). Tri-Cities Airport, itself, retains just 

803 PDEW for the period. Seattle/Tacoma is 

able to draw an average of 500 PDEW from 

the Tri-Cities area while Portland draws an 

average of 333 PDEW. 

This passenger leakage reflects the 

extenuating circumstances with air service 

in the Tri-Cities. Tri-Cities service, on network 

carriers, is expensive, especially relative to the other airports in the Pacific Northwest. The TriCities also lacks the breadth of service of the larger surrounding airports, with no daily non-stop 

service to major markets such as Los Angeles, Phoenix, Sacramento, and San Diego. These 

factors cause people to seek service at other airports, even if those airports are more than four 

hours away by car in ideal weather.

The True Market data confirms the reasons behind the passenger leakage from the Tri-Cities 

catchment area. Average fares, paid by passengers from the catchment area at all the airports 

they use, are lower at all but one of the surrounding airports than at Tri-Cities Airport. While the 

average fare at Tri-Cities, itself, was $216 each way for the study period, the fare at Portland, 

MAP 4: Airport Used by Tri-Cities Catchment Passengers

Source: Tri-Cities True Market Study, YE3Q13

FIGURE 7: Airport Used by Tri-Cities Catchment Passengers

Source: Tri-Cities True Market Study, YE3Q13
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 10

which captures 18% of Tri-Cities 

passengers, was just $174 each way 

(see map 5). The Portland fare was 

19% less than the Tri-Cities fare. Fares 

are also lower at the Spokane, and 

the smaller airports in the region. Both 

Yakima and Walla Walla have fares 

below those paid at Tri-Cities Airport. 

Walla Walla’s fare averaged $47 less 

each way than the Tri-Cities’ fare.

The exception to this trend is found at 

Seattle/Tacoma. The average one 

way fare at Seatac, for Tri-Cities 

catchment area passengers, was $250 each way or 16% higher than the Tri-Cities Airport 

average (see map 5). The data shows that when passengers from the Tri-Cities drive all the way 

to Seattle for a flight, they tend to fly longer distances. A large proportion of international 

passengers to and from the Tri-Cities catchment drive to Seattle to access non-stop international 

flights. This drives up the average Seattle fare. But it also illustrates the fact that Tri-Cities 

passengers leak out of the catchment area not only for low fares, but also for the breadth of 

service available.

Passenger leakage in the Tri-Cities is much higher than originally anticipated. The Airport has two 

mechanisms to reduce leakage: one, work to ensure non-stops are offered to more highdemand destinations; and two, work to lower fares. The second objective will likely happen 

organically if the first objective is achieved. This Small Community Air Service Development 

(SCASD) Grant application is a step toward the recruitment of additional, daily, network airline 

service. It will be critical to reducing passenger leakage and removing the Tri-Cities from the list 

of Northwest airports with the highest average fares.

MAP 5: Average One Way Fare by Airport Used

Source: Tri-Cities True Market Study, YE3Q13
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 11

AIR SERVICE DEVELOPMENT PLAN: TRI-CITIES – LOS ANGELES

Tri-Cities Airport seeks to help lower fares and better connect its catchment area passengers to 

the national air transportation system by recruiting daily, non-stop, network airline service to Los 

Angeles. The LA Basin ranks as the Tri-Cities number one overall origin and destination market, 

and, subsequently, its largest market without daily non-stops. The Tri-Cities – LA Basin market will 

be left without any non-stop service at all in September when Allegiant ends its service.

The Tri-Cities Airport saw an average of 81 passengers per day each way (PDEW) traveling to 

and from airports in the Los Angeles Basin in 2013 (see figure 8). Almost 43% of those passengers 

traveled to Los Angeles International (LAX), with smaller percentages using John Wayne/Orange 

County, Ontario, Burbank, and Long Beach, in that order.

The Tri-Cities’ Los Angeles Basin passengers have been suppressed in the past three years by the 

lack of continuous non-stop service. Allegiant operated seasonal Los Angeles service in 2010, 

followed by ten months of LAX service in 2011 and 2012. But in 2013, Allegiant operated only 

summer seasonal service, as it did again in 2014. The Allegiant LAX schedule has not been 

published for 2015, but, at this point, Los Angeles service does not return to the Tri-Cities. The 

result of this non-continuous service is a passenger decline of 18% from 2011 to 2013 (see figure 

8).

FIGURE 8: O&D Passengers and Average One Way Fares, Tri-Cities – LA Basin Airports

Source: US DOT OD1A, CY2004 – CY2013; Includes LAX, BUR, LGB, ONT, and SNA
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 12

When the Tri-Cities – Los Angeles Basin “true market” is taken into account, including those 

passengers from the Tri-Cities catchment area that leak to other airports in the region for their LA 

Basin trips, Tri-Cities is the largest LA market without daily non-stops (see figure 9). The Tri-Cities –

LA Basin true market generates an 

average of 145 PDEW at an 

average one way fare of $133. TriCities has a larger market to the LA 

Basin than other, larger cities such 

as Hartford, San Juan, Providence, 

and Louisville. With 145 PDEW, the 

market would be sufficiently large 

to fill three regional jet flights per 

day in each direction with 100% 

passenger retention and no 

passenger stimulation. Thus, the 

Airport’s proposal for a single daily 

flight in each direction is 

reasonable when compared to the 

current passenger data.

Tri-Cities Airport retains just 51% of its 

Los Angeles Basin passengers, leaking the other 49% to other airports. Of the 145.2 PDEW in the 

market on a daily basis, just 74.4 PDEW use Tri-Cities Airport (see figure 10). Another 70.9 PDEW 

use airports such as Seattle/Tacoma, Portland, and Spokane when traveling to and from the LA 

Basin. The entire Tri-Cities – LA Basin market generated more than $14.1 million in total fare 

revenue as of the year ended third quarter 2013, according to the Airport’s True Market Study

FIGURE 9: LA Basin’s Top Unserved Passenger Markets

Source: US DOT OD1A, Calendar Year 2013

Market Passengers PDEW One Way Fare Coupons

Tri-Cities, WA 106,032 145.2 $133 1.7

Hartford, CT 101,730 139.4 $227 2.0

Omaha, NE 81,320 111.4 $160 2.0

San Juan, PR 74,480 102.0 $272 2.0

Jacksonville, FL 73,580 100.8 $220 2.0

Buffalo, NY 71,860 98.4 $219 2.0

Dayton, OH 65,880 90.2 $183 2.0

Sao Paulo, Brazil 64,550 88.4 $792 2.0

Norfolk, VA 58,370 80.0 $243 2.0

Richmond, VA 52,240 71.6 $240 2.0

Beijing, P. R. China 52,230 71.5 $905 2.1

Bellingham, WA 51,710 70.8 $98 1.2

Little Rock, AR 48,930 67.0 $174 2.0

Des Moines, IA 47,590 65.2 $173 1.9

Providence, RI 42,940 58.8 $221 2.0

Albany, NY 42,260 57.9 $258 2.0

Grand Rapids, MI 41,130 56.3 $225 2.0

Buenos Aires, Argentina 40,380 55.3 $822 2.0

Fort Myers, FL 39,210 53.7 $234 2.0

Louisville, KY 38,170 52.3 $271 2.0

Barcelona, Spain 38,140 52.2 $655 2.1

Charleston, SC 37,280 51.1 $241 2.0

Rochester, NY 36,560 50.1 $243 2.0

Tulsa, OK 36,530 50.0 $238 1.8

Birmingham, AL 35,530 48.7 $255 2.0

FIGURE 10: The True Tri-Cities – Los Angeles Basin Passenger Market

Source: Tri-Cities True Market Study, YE3Q13
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 13

It’s unlikely that Allegiant’s Tri-Cities – Los Angeles (LAX) service was shifted to a seasonal pattern 

because of its performance. It averaged a load factor of 94% in 2012 and 2013, when the 

service was provided. In fact, in the summer of 2013, load factors between the Tri-Cities and LAX 

grew from 92% in June to almost 97% in August (see figure 11).

The service had load factors above 90% in all but four months since the beginning of 2011 (see 

figure 11). It had been shifted to seasonal, Allegiant reports, because of the Airline’s space 

constraints at LAX. It does not have the ability to maintain a gate at LAX full-time, so it must shift 

service around. This hurts the Tri-Cities traveler and is one of the factors leading 49% of 

passengers between the Tri-Cities and the LA Basin to fly from other airports. Allegiant will end 

service again after the summer of 2014, with no firm re-start date announced.

So far in 2014, the Airport has met, in person, with planners from two prospective network carriers 

that could serve the route: American Airlines and SkyWest Airlines. Planners from both airlines 

expressed the need for the community to share the risk on the route, mainly due to its stage 

length – 739 nautical miles – and potential regional jet fuel burn over that stage length. The 

funding plan contained in this application constitutes the risk sharing necessary for the service to 

begin.

Network carrier service to Los Angeles would not only serve the origin and destination market, 

which currently generates sufficient traffic to fill at least a single daily 50-seat regional jet, it 

would also be able to connect the Tri-Cities to a number of new one-stop destinations not 

FIGURE 11: Passengers and Seats per Day Each Way, and Load Factor, PSC-LAX on Allegiant

Source: US DOT T100; January 2011 – November 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 14

served through current hubs. 

When analyzing the connection 

package on the American

code there are 42 one-stop 

destinations that could be 

served over the LAX hub (see 

Map 6). The Tri-Cities market 

currently generates an average 

of 815 “true market” passengers 

per day each way (PDEW) to 

and from these connecting 

cities and Los Angeles, itself. 

Service on American between 

Tri-Cities Airport and LAX would 

access an average of 154 PDEW to 

and from the Los Angeles Basin (see 

Figure 12). It would also be able to 

access large traffic flows to cities in the 

Southwest, in Mexico, and in Hawaii. 

Los Angeles would be the preferred

connecting point for Tri-Cities 

passengers to cities such as Phoenix,

which averages 90 PDEW; San Diego, 

which averages 66 PDEW; 

Albuquerque, which averages 33

PDEW; Honolulu, which averages 30 

PDEW; Maui, which averages 16 PDEW; 

and San Jose del Cabo, which 

averages eight PDEW.

Average fares in many of the Tri-Cities 

markets that could be served by 

American over LAX are high – they 

clearly reflect a general lack of 

MAP 6: Connections over LAX on American Airlines

Source: Sixel Consulting Group Hub Builder Software, July 2014

FIGURE 12: Top 25 Markets over LAX on American

Source: Tri-Cities True Market Study, YE3Q13
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 15

competition between Tri-Cities carriers. 

The overall “true average” fare paid by 

passengers that could flow over LAX on 

Alaska or American, for the year ended 

third quarter 2013, was $190 each way 

(see Figure 13). That overall average 

includes passengers who currently fly on 

Allegiant, and it does not include any 

ancillary fees or taxes. It also includes 

passengers who drive away from Tri-Cities 

Airport to other airports in search of lower 

fare service. Service to and through Los 

Angeles on American would be targeting 

many current high fare markets, providing 

additional competition in the Tri-Cities.

The Airport’s recruitment effort for network 

carrier service to Los Angeles began more 

than 18 months ago. In 2014, in 

anticipation of applying for this Grant, the 

Airport and its partners traveled to meet 

with both American Airlines and its regional 

partner, SkyWest. They also studied other airports’ recent successful recruiting efforts for Los 

Angeles service, including the efforts of both Eugene and Bend/Redmond, Oregon. These 

efforts helped determine the amount of both local and 

federal funding required for the project.

The total project cost is $854,339.30 (see Figure 14). The 

majority of that funding, $764,000, will provide a revenue 

guarantee for the carrier operating the new route. If the route 

sees immediate success, as would be suggested in the data 

included in this application, the revenue guarantee portion of 

the funding would not be used. In addition to the revenue guarantee, the Airport has 

earmarked $50,000 for marketing and advertising of the new service. This cash for marketing 

comes from local partners. This is a key to getting people onto the flights as soon as they begin. 

FIGURE 13: Average One Way Fares in Top Markets over LAX

Source: Tri-Cities True Market Study, YE3Q13

FIGURE 14: Project Budget

Source: Tri-Cities Airport, July 2013

Project Component Funding Amount

Revenue Guarantee $764,000

Marketing/Advertising $50,000

Start-Up Cost Offsets $10,000

Fee Waivers $39,339.30

Total Project Cost $854,339.30
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 16

The Airport will also set aside $10,000 to cover the carrier’s start-up expenses and another 

$39,339.30 for fee waivers, including landing fee discounts.

A total of ten local partners have 

pledged cash funding for this 

project. The largest partners, in 

terms of cash allocation, include 

the Tri-Cities Airport, the Tri-City 

Development Council (TRIDEC), 

the Tri-City Visitor and Convention 

Bureau, and the Port of Kennewick 

(see Figure 15). Local groups 

including the Port of Benton, TriCities Chamber of Commerce, 

and Washington River Protection Solutions have also pledged cash. Private companies 

including Battelle, Bechtel, and Mission Support Alliance also have pledged cash matches for 

additional air service at the Tri-Cities Airport. This diverse group of public and private partners all 

has interest in expanded air service, and represents some of the diverse users of potential new 

service.

The anticipated timeline for the project assumes a Grant would be awarded in September of 

2014 (see Figure 16). If the Grant agreement with the DOT is finalized in October of 2014, the 

Airport will step up its recruitment efforts in the fall, endeavoring to meet with the targeted 

airlines through the winter. In 

a best-case scenario, the 

Airport would hope to target 

April of 2015 for a new 

service announcement, with 

creative materials ready for 

the marketing program 

shortly after a formal service 

announcement. The 

targeted start date for service would be June of 2015, with a two-year revenue guarantee 

period, allowing the Grant to be closed by September of 2017.

FIGURE 16: Project Timeline

Source: Tri-Cities Airport, July 2014

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2014

Executive Grant Agreement with DOT October 2014

Meet with Airlines to Recruit Route Fall/Winter 2014 - 2015

Targeted Announcement Date for Service April 2015

Develop Creative/Launch Marketing April 2015

Targeted Start Date for Service June 2015

Submit Grant Status Reports to DOT Quarterly Q4 2014 - Q2 2017

Close Grant September 2017

FIGURE 15: Project Funding Partners

Source: Tri-Cities Airport, July 2014

Funding Source Cash Amount Cash Use

Tri-Cities Airport $35,339.30 Landing Fee Rebate

Tri-City Development Council $50,000 Revenue Guarantee

Tri-City Visitor and Convention Bureau $5,000 Marketing

Port of Kennewick $5,000 Revenue Guarantee

Port of Benton $3,000 Revenue Guarantee

Battelle $2,000 Revenue Guarantee

Tri-Cities Chamber of Commerce $1,000 Revenue Guarantee

Washington River Protection Solutions $1,000 Revenue Guarantee

Bechtel $1,000 Revenue Guarantee

Mission Support Alliance $1,000 Revenue Guarantee

Total Local Cash $104,339.30
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 17

As Tri-Cities Airport has never received a Small Community Air Service Development Grant for a 

revenue guarantee, it should not be limited in alternate uses. Among alternate routes the Grant 

could be used for would be Phoenix on a network carrier, San Jose, Sacramento, San Diego, 

Dallas/Ft. Worth, or any other route that would provide new connectivity for the market.
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 18

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is 

supported with cash that has been committed by a group of community partners. These 

partners support the effort to bring network service to the Tri-Cities – Los Angeles route. Grant 

application partners include a local economic development organization, a Chamber of 

Commerce, and the port that owns and operates Tri-Cities Airport.

TRIDEC

The Tri-City Development Council, known as TRIDEC, handles all economic development 

activities in the Tri-Cities region, which includes the cities of Pasco, Kennewick, and Richland. 

TRIDEC has been a long-term Airport partner, sending its representatives with Airport leaders to 

airline headquarters meetings and conferences. TRIDEC shares in the expense of air service 

development consulting work, and in the expense of advertising air service. TRIDEC has 

pledged $50,000 in matching cash for this application.

Port of Pasco

In Washington State, ports are often charged with owning and operating airports. The Port of 

Pasco operates as an independent government agency, separate from any of the other 

government structures in the region. The Tri-Cities Airport is one of the three main divisions within 

the Port of Pasco, the other two being marine and rail. The Port is constantly working on 

economic development projects in the Tri-Cities, and the Airport is at the center of that effort.

Tri-City Regional Chamber of Commerce

The Tri-City Regional Chamber of Commerce is the leading business advocate for nearly 1,300 

private, public and non-profit member firms in the Tri-Cities region. The fifth largest chamber in 

Washington, the Tri-City Regional Chamber advocates for a strong business community. The 

Chamber promotes regional prosperity and strengthens its member businesses through 

advocacy, leadership, networking and innovative business programs. Its businesses have 

expressed strong support and demand for additional air service.
Proposal of Tri-Cities Airport • Pasco, Washington • July 2014 19

CONCLUSION

Tri-Cities Airport is not only the highest fare airport in the Pacific Northwest, with an average one 

way fare of $215, but one of the highest fare airports in the country for 2013. Increasing fares –

that have gone up much faster than fares at surrounding airports – have caused the market to 

be suppressed, posting its first passenger loss in six years in 2013. Rising fares have also increased 

passenger leakage to other airports, as travelers to and from the Tri-Cities seek fare relief by 

driving as far as Portland and Seattle for flights.

Specifically for this Grant application, Tri-Cities Airport commissioned a new True Market Study, to 

determine, not only, total passenger leakage, but to identify gaps in service that could be filled 

to reduce leakage. The biggest gap the True Market Study found was the lack of daily non-stop 

service to the Tri-Cities number one origin and destination passenger market: Los Angeles. While 

the Tri-Cities generates an average of 145 

passengers per day each way (PDEW) to and from 

the LA Basin, only 51% use their local airport. 

The Airport has two mechanisms to reduce leakage: 

one, work to ensure non-stops are offered to more 

high-demand destinations; and two, work to lower 

fares. The second objective will likely happen 

organically if the first objective is achieved. This Small Community Air Service Development 

(SCASD) Grant application is a step toward the recruitment of additional, daily, network airline 

service. It will be critical to reducing passenger leakage and removing the Tri-Cities from the list 

of Northwest airports with the highest average fares.

The Tri-Cities Airport has never won a Small Community Air Service Development (SCASD) Grant

to be used for a revenue guarantee. It has been able to recruit five new routes over the last 

decade without federal support. But the Airport realizes the environment has changed and, in 

order to be competitive with other non-hub airports, it must offer risk sharing on targeted routes. 

This SCASD Grant application is the key to additional service, reduced leakage, and lower fares 

in a large and isolated portion of the Pacific Northwest.

“[This Grant] will be critical to 

reducing passenger leakage 

and removing the Tri-Cities from 

the list of Northwest airports with 

the highest average fares.”