# Application under the

Small Community Air Service Development Program

Docket: DOT

‐ OST

‐ 2011

‐ 0119



### Sponsor: Yellowstone Regional Airport

Cody, Wyoming



### DUNS : 182778746



### Congressional District Code: WY

‐ 01



### EIN : 83

‐ 0293310



### Contact : Robert Hooper, Airport Manager

P.O. Box 2748

3001 Duggleby Drive

Cody, WY 82414

‐ 2748

(307) 587

‐ 5096

BobH@FlyYRA.comSUMMARY INFORMATION

A. Applicant Information:

X Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives EAS Subsidy

X Community (or Consortium member) previously received a Small Community Grant

If previous recipient: Date of Grant: August, 2005 (Wyoming Consortium)

Expiration Date of Grant: March 2007

Federal Funds Requested: $800,000

Carrier(s) Service Obtained: Marketing Support

Destination(s) Served 10 Wyoming Airports

B. Public/Private Partnerships (List Organization Names)

Public

1 City of Cody, Wyoming

2 Park County, Wyoming

3 Park County Travel Council

4

5

Private

1 Buffalo Bill Historical Center; Cody, Wyoming

2 Wild Sheep Foundation; Cody, Wyoming

3 Cody Country Chamber of Commerce; Cody, Wyoming

4 Cody-Yellowstone Air Improvement Resources; Cody, Wyoming

5

C. Project Proposal

X Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)

D. Existing Landing Aids At Local Airpor t

Full ILS Outer/Middle Marker X Published Instrument Approach

Localizer X Other (specify) WAAS/GPS ApproachE. Project Cost

Subtotal Total Amount

1 Federal Amount Requested $100,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $10,000

3b Non-airport cash funds $0

3 Total local cash funds (3a+3b) $10,000

4 TOTAL CASH FUNDING (1+2+3) $110,000

In-Kind Contribution

5a Airport In-Kind Contribution ** $0

5b Other In-Kind Contribution ** $0

5 TOTAL IN-KIND CONTRIBUTION $0

6 TOTAL PROJECT COST (4+5) $110,000

F. In-Kind Contributions **

Please describe the source of funds

G. Application Subject to Review by State Under Executive Order 12372

a. This appliation 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.

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

H. Is the Applicant Delinquent On Any Federal Debt?

(If "Yes", provide explanation)

X No.

Yes. (explain)

### Table of Contents

Overview.......................................................................................................................

..... 1

Cody’s Air Service Needs

................................................................................................... 2

I. Geographic Setting and Challenges

......................................................................... 2

Historic Air Service

............................................................................................................. 3

I. Summary

................................................................................................................. 3

II. Traffic

................................................................................................................... 3

Current Air Service Deficiencies and Needs

....................................................................... 4

I. Seasonal Issues

........................................................................................................ 4

II. Leakage

................................................................................................................ 5

III. Overall Service Needs

........................................................................................... 5

Air Service Development Efforts

........................................................................................ 6

Extenuating Circumstances

............................................................................................. 10

I. Weight Restrictions

............................................................................................... 10

II. Fuel

..................................................................................................................... 10

III. Fleet Changes

..................................................................................................... 10

Program Overview And Plan

............................................................................................ 11

I. Program Details

..................................................................................................... 11

II. Allocation of Funds

............................................................................................. 11

III. Implementation Timeline

................................................................................... 11

IV. Monitoring

......................................................................................................... 12

V. Alternatives

........................................................................................................ 12

VI. Previous Project Goals

........................................................................................ 13

Priority Selection Criteria

................................................................................................. 14

I. Air Fares at Yellowstone Regional Airport are Higher than the National Average. 14

II. The Local Community in Cody Will Match Ten Percent of the Grant

................. 14

III. The Local Community in Cody Has Well

‐ Established Public

‐ Private Partnerships

that Support the Program.

........................................................................................... 14

IV. The Assistance Will Materially Benefit the Local Community in Cody By

Stimulating Seasonal Service and Ensuring Continued Service.

................................... 16

V. The Assistance Will Be Used Within Months of the Grant’s Issuance.

............... 16

Other Factors

................................................................................................................... 16I. Sustainability

......................................................................................................... 16

II. Legal Sponsor

..................................................................................................... 17

III. Financial Oversight

............................................................................................. 17

Letters of Support

............................................................................................................ 181 

### OVERVIEW

Yellowstone Regional Airport (“YRA”) serving Cody, Wyoming seeks $100,000

through a Small Community Air Service Development (“SCASD”) Grant to

implement a ticket rebate marketing program (the “Program”) to stimulate

passenger traffic on YRA flights receiving federal funds through the Essential Air

Service Program during the months of January through April 2013.

The fundamental goal YRA hopes to achieve is to minimize its reliance on state,

local or federal subsidies to maintain daily year round service in its two

destination markets, Denver, Colorado and Salt Lake City, Utah. The Program’s

marketing and promotional push will increase ridership during the slow winter

months, which will help make airfares more competitive and decrease the leakage

of passengers to Billings.

While the Cody market can support air service by SkyWest during most of the

year, flights between January and April are the airport’s most challenging months.

However, with the stabilization likely to be achieved by the Program, the Cody

market is likely to become self

‐ sustaining even during the winter months.

Receiving a SCASD Grant to implement the Program would help ensure that the

existing SkyWest air service in Cody remains profitable throughout 2013 and

would help protect against the loss of future service.2 

### CODY’S AIR SERVICE NEEDS

Yellowstone Regional Airport serving Cody, is located east of Yellowstone National Park,

and is a vital access point for business and tourism in the area. The local economy

depends on the airport for convenient service to the national air transportation system.



### I. Geographic Setting and Challenges

Cody is an important access point to Yellowstone National

Park. Located about 50 miles from the East Gate of the

park, Yellowstone Regional Airport has the geography and

the capacity to handle more visitor traffic.

2010 was a record year for Yellowstone National Park with

3.6 million visitors. 2011 was close behind with 3.4 million

visitors. Attendance at

Yellowstone has grown by

800,000 annual visitors, or

30%, since 2000. However, Cody is not proximate to a

large center of air service, nor is it close to airports with

substantial low

‐ fare alternatives. Most nearby Wyoming

communities have very limited turboprop service to

Denver.

Billings is the largest city with a sizeable amount of air

service. However, at nearly a 112 mile car ride, it’s hardly close to Cody. Low cost

service at Billings is limited to twice

‐ a

‐ week service on Allegiant Air to Las Vegas,

Phoenix, Los Angeles and Oakland. Another low

‐ cost option in Billings is daily service to

Portland and twice

‐ daily service to Seattle on Alaska Airlines. Frontier Airlines also

serves the market with twice

‐ daily flights to Denver.

Legacy carriers Delta Airlines and United Airlines also operate flights out of Billings.

Delta Airlines flies nonstop to Salt Lake City and Minneapolis. United Airlines operates

nonstop service between Billings and both Denver and Chicago.

Jackson is about three

‐ and

‐ a

‐ half hours away, but is not accessible in the winter months

due to road closures. Jackson’s air service is largely seasonal and is generally geared

towards inbound traffic generated by tourism.3 Eight hours by car from Cody, Denver and Salt Lake City are the closest airports with

significant service and a large low

‐ fare airline presence.



### HISTORIC AIR SERVICE

I. Summary

Air service to Cody was stable until very recently. During the summer of 2011, SkyWest

announced it would discontinue winter service for Delta Airlines beginning with

reductions in September 2011. However, with the help of Essential Air Service Program,

service was able to continue without interruption.

Currently, two carriers operate out of YRA. SkyWest has typically operated two trips per

day for Delta Airlines on 30

‐ seat Embraer 120 turboprops to Salt Lake City, upgrading

flights to 50

‐ seat CRJs or adding frequencies in high season. Likewise, SkyWest operates

the same equipment to Denver for United Airlines with once

‐ daily flights during the off

season and twice daily in the peak season.

The general stability of the Cody market has combined with the efforts of the local

community to retain local traffic and lower fares, and has contributed to increased

levels of traffic at the airport. These state and local efforts are discussed on pages 8

‐ 11

of this proposal.



### II. Traffic

With 55,385 passengers in 2011, YRA’s traffic in the past couple years is maintaining

near record highs since 9/11, and will likely surpass pre

‐ 9/11 numbers in the coming

years. In the height of the recession, load factors dipped and fares increased. However,

with the help of many different initiatives developed and run by both the local

community and the state, airfares are becoming more competitive

with other small hub airports in the region.

SkyWest, operating for Delta Airlines, first offered summer service to

Cody in 1994. The carrier returned in 1995 year

‐ round, and has

operated Cody to Salt Lake City ever since with Embraer Brasilias and

Canadair CRJs.

Between 2001 and 2003, Great Lakes Airlines operated 19

‐ seat

Beech 1900 turboprops from Cody to Denver, almost all of the time

with an intermediate stop in another Wyoming city. Great Lakes last

operated two flights a day between Cody and Denver with an

intermediate stop in Worland, WY. Year Total

Passengers

2000 60,580

2001 51,400

2002 41,197

2003 40,308

2004 52,736

2005 56,298

2006 56,440

2007 53,266

2008 51,841

2009 52,220

2010 55,739

2011 55,3854 United Airlines operated various

turboprop and regional jet aircraft

to Denver, with a temporary two

year suspension when Great Lakes

served the market. Since United

Airlines returned, its pattern of

service has remained relatively

stable with two summer flights and

one winter flight.



### CURRENT AIR SERVICE DEFICIENCIES AND NEEDS

Yellowstone Regional Airport is currently served by SkyWest Airlines. SkyWest, flying for

Delta Airlines to Salt Lake City has historically maintained two daily flights in the peak

season and one daily flight in off

‐ peak winter months. SkyWest also operates for United

Airlines to Denver with two daily flights in peak season and one daily flight in the off

peak season.



### I. Seasonal Issues

Both Delta Airlines and United

Airlines fly at risk during the peak

season because planes are easily

filled. However, during off

‐ peak

months, demand is much lower

and Delta and United have

historically operated at a loss.

In the spring of 2011, SkyWest

announced that it would be

discontinuing its twice

‐ a

‐ day winter service between Yellowstone Regional Airport in

Cody and Salt Lake City during the winter months. SkyWest’s winter service to Denver

was not in jeopardy because of a revenue guarantee under the Air Service Enhancement

grant program. The airline cited the high price of fuel as one of its primary reasons for

pulling out of Salt Lake City. Shortly after the announcement, the US DOT accepted a

proposal by SkyWest to the Essential Air Service Program that would allow them to

continue operating one daily flight during the off

‐ peak winter months.

Having continued air service to both Denver and Salt Lake City during winter months is

vital to the community of Cody. Not only is the commute to the closest hub airport

(Billings) a two

‐ plus hour drive, but often times in the winter, roads are impassible due5 to heavy snowfall. The need for continued air service to both Denver and Salt Lake City

during slower off peak months is imperative for residents to have access to the national

air transportation system.

This proposal is seeking grant money to help fill seats through a well

‐ planned rebate

program that will help keep traffic in the city of Cody. Service in the winter months

appears to be on the verge of not requiring federal subsidy money. Between October 1,

2011 and April 30, 2012, the community of Cody and the state of Wyoming provided a

modest $63,828 in the form of a revenue guarantee to United Airlines. This minor

amount suggests that the amount requested in this proposal will be enough to stimulate

the purchase of SkyWest tickets and in turn, ensure continued commercial air service in

Cody during low travelled times of the year.



### II. Leakage

Leakage is a significant problem for Yellowstone Regional Airport, which contributes to

the lack of demand during the winter months. Yellowstone Regional Airport retains

about 80% of passengers bound for Salt Lake City as a final destination, a fact that can

be attributed to the comparatively low fares between the two cities.

Retention to Denver

is better than

average for

Yellowstone

Regional Airport, but

much less than Salt

Lake City. Cody

‐

Denver fares have

historically been

higher than Billings

‐

Denver fares.

United also cuts

Cody

‐ Denver to a single round

‐ trip in the winter. More Cody area passengers travel to

Billings to fly to Denver than to Salt Lake City.



### III. Overall Service Needs

In light of the foregoing seasonality and leakage issues, the Cody market needs:

 Increasing traffic and load factors. Increasing traffic and load factors in the

slower winter months is crucial to maintaining the presence of SkyWest year

round.6  To maintain airfares that are competitive with other regional airports. Airfares

are becoming more competitive with other regional airports, but are still lagging

which contributes to the high leakage rate.

 Consistency in its air service providers. More consistency and more service

during peak season would force fewer passengers to Billings for more flight time

options.

 Reasonably frequent, seasonally adjusted service to Delta’s Salt Lake City hub and

United’s Denver hub.



### AIR SERVICE DEVELOPMENT EFFORTS

In 2002, state government officials recognized the economic value of aviation in the

state of Wyoming, leading to the most significant continuing air service development

effort, which came in 2004 with the passing of the Air Service Enhancement Program

(“ASEP”). The plan addresses the state of Wyoming’s tremendous need to focus on and

improve air service. ASEP was originally funded at $6M per biennium. To date, the

state has expended $26.7M, with $2.6M reallocated to the air service account due to

varying successes.

The primary goals of ASEP are to:

 work with existing airlines to improve operational reliability,

 continue to improve fares

 focus on ways to decrease leakage

 ensure carriers are financially stable to operate in the state

 achieve financial stability on existing EAS markets7 

## Wyoming Air Service Enhancement Program

Community Specific

‐ Cody

For every passenger segment SOLD in Cody, only 2 in 5 use the Cody airport. There are nearly as

many Cody residents driving to Billings as use their home airport.

48,546 COD

passengers

used the BIL

airport in

2009 In 2009, of 48,546 passengers

living in COD but using the BIL

airport, UA retained only 25%

of them in BIL.

Source: APGDat / Sabre ADI

Since 2004, the community of Cody, in cooperation with the State of Wyoming and the

ASEP, has contracted with United Airlines and Delta Air Lines to obtain a total of $5.3

million for enhanced air services to the community. Because these services have

effectively reduced revenue risk, to an even greater degree than expected, the

community and the state have only paid approximately $2.7 million towards these

services to date. In that time, the community itself has invested $482,000 towards

these air services efforts.

In April of 2010, members of the Wyoming Air Service Enhancement Program met with

executives at United Airlines to discuss concerns over the increasingly high fares out of

Cody vs. Billings. High fares were also responsible for the increase in leakage to Billings.

Members convinced United Airlines to begin pricing airfares out of Cody more

competitively with fares out of Billings than they had in the past. Executives agreed that

if they lose the passenger driving to Billings, there was only a 25% chance that that

passenger would be travelling on United Airlines out of Billings. United Airlines has

much more to gain by capturing local passengers at a lower fare out of Cody, then risk

losing 75% of them to other airlines out of Billings. Fares have become more

competitive out of Cody in recent years, but there is still much room for improvement

compared to large hubs with low fare service.8 Cody again intends on working with United Airlines this coming winter season with a

new contract. Cody seeks this grant as a way to help alleviate the financial burden on

the local community and the state of Wyoming.

Other Air Service Development efforts made on behalf of Yellowstone Regional Airport,

in conjunction with its public and private partners, are as follows:

 Successfully negotiated United Airlines winter service to Denver, 2004 thru 2011.

Minimum Revenue Guarantee from Wyoming has funded service October

‐ April.

 Successfully negotiated with Delta to add regional jets to Cody.

 Successfully implemented the “Fly Local” marketing program. Yearly since 2000.

 Conducted annual passenger retention studies since 2007 to track airport usage

of the region’s passenger base.

 Successfully negotiated with both United and Delta to create Cody fare sales in

2011.

 Convinced United Airlines to adjust fare levels to be more comparable with

regional airports: 2010

‐ 2012.

 Convinced Delta Air Lines to adjust fare levels to be more comparable with

regional airports: 2010

‐ 2012.

 Expanded web presence, activated booking engine on Yellowstone Regional

Airport’s website, and expanded social media ties: 2010

‐ present.

 Expanded advertising area to more closely match Yellowstone Regional Airport’s

catchment areas: 2008

‐ ongoing.

 Completed study assessing “value of local air service” to the region: 2010.

 Opened new airport terminal facility in 2010.9748,396755,020714,306743,616692,700677,287734,595

‐ 300,000 200,000 700,000 1,200,000

600,000 650,000 700,000 750,000 800,000

1997 1998 1999 2000 2001 2002 2003USDomestic(000)Wyoming Wyoming Passenger Traffic

Compared to US Domestic Traffic

1997

‐ 2003

37.81%

8.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 

### Passenger Growth Rates 2003

‐ 2010

Wyoming & US Domestic Totals

Wyoming Cumulative US Cumulative From 1997 to

2003, the state of

Wyoming saw a

2% decrease in

passenger traffic

when US domestic

traffic saw a 10%

increase in traffic.

With the help of the air service development programs listed above, along with the

marketing efforts made possible by the 2005 Small Community Air Service Development

Program awarded to the state of Wyoming, passenger growth rates in Wyoming have

increased 37.81% from 2003 to 2010.

Since members of the Wyoming Air Service Enhancement Program met with officials at

United Airlines in 2010, passenger retention for the airport has improved from 38% in

2008 to 59% in 2011. 2008

‐ Sabre ADI (Source); 2011

‐ ARC (Source).10 

### EXTENUATING CIRCUMSTANCES

I. Weight Restrictions

The Embraer 120 aircraft operated into Yellowstone Regional Airport in peak months

often are payload

‐ restricted due to the elevation of the airport and temperatures in the

summer. While this has not been the case over the entire history the aircraft has been

in service, changes to the way passenger weights are calculated have reduced the

effective payload, especially of turboprop aircraft. Regulations now assume that the

average passenger and their bags weigh more than 10 years ago. As summer is Cody’s

peak season, and aircraft are more likely to be payload

‐ restricted during the summer,

the ability of airlines to carry a full load is reduced. Therefore, the revenue associated

with passengers and bags is significantly impacted. In addition, there is potential for

passengers to be bumped in order for the aircraft to get off the ground, leading to loss

of revenue.



### II. Fuel

Flying empty seats around is bad, but flying empty seats around when fuel is near record

levels is worse. Since January 2009, average spot Jet fuel prices have more than

doubled. Much of that increase occurred in 2011.



### III. Fleet Changes

While SkyWest has not yet made a formal announcement about the future of its

Embraer 120 fleet, the Aircraft dedicated to Cody service was returned to its lessor. As

these aircraft age, it is expected that, similar to the Delta Airlines Saab SF

‐ 340 fleet, they

will eventually be retired. At any rate, the current fleet appears to be getting smaller,

limiting the aircraft available to serve cities like Cody, and increasing competition

between cities for the remaining aircraft. This further increases the pressure for

Yellowstone Regional Airport to perform with positive numbers.11 

### PROGRAM OVERVIEW AND PLAN

I. Program Details

Yellowstone Regional Airport seeks $100,000 in grant money to implement the Program.

For each roundtrip ticket originating in Cody during the months of January through April

2013, the passenger would receive a $50 rebate in the form of “Cody Bucks.” Cody

Bucks would be issued by the Cody Country Chamber of Commerce in the name of the

passenger and redeemable at any local merchant. Redemption would be handled

jointly by the Airport, Cody Yellowstone Air Improvement Resources (CYAIR), and Cody

Country Chamber of Commerce. Individuals can earn unlimited rebates.

The Program would continue to issue rebates as long as funds are available. If there are

excess funds after April 2013, those funds would roll over to the following winter.



### II. Allocation of Funds

Yellowstone Regional Airport will allocate funds under the Small Community Air Service

Development Program as follows:

YRA intends to make available a minimum of $110,000 to the rebate program. This

amount will be composed of the $100,000 Small Community Air Service Development

Grant and $10,000 in local contributions made in cash. The $100,000 will be used

exclusively in the form of rebates. The additional $10,000 of local matching funds will

be used to market the program.

The airport will not use SCASD funds for administration, or monitoring and reporting of

results under the grant. Additional expenses incurred will be paid out of the airport’s

general operating funds.



### III. Implementation Timeline

Yellowstone Regional Airport is already working with local merchants and CYAIR

regarding the Program. They will continue to work together to build a platform for

which the rebate program will be launched, allowing them to begin marketing the

program as soon as grants are awarded. The program will run until funds have been

depleted. If however, funds are still available after the April 2013 travel months, the

remaining funds will be put toward a similar program for the following winter.12 

### IV. Monitoring

Yellowstone Regional Airport already monitors many passenger metrics via the

Wyoming State Department of Transportation. These metrics will continue to be closely

monitored to determine the success of the Program.

Traffic levels For each airport within the state and regionally.

Monitored monthly.

Selling fares For each airport within the state and regionally.

Fares are scraped from Expedia for various advance

purchase windows on a weekly basis.

Load factors Monitored by airline by route for the state and regionally.

Monitored monthly.

O&D Statistics Monitored quarterly within the state and regionally.

Monitored quarterly.

Revenue Guarantee Monitored for existing United Airlines MRG on a monthly

basis.

Airport Leakage Monitored monthly.

Spot Fuel Prices Monitored weekly.

Advance bookings

(MRG Markets) Tracked weekly.

This data will be compiled into reports that Yellowstone Regional Airport will submit on

a quarterly basis to USDOT.



### V. Alternatives

If for any reason during the course of the marketing/rebate program there is a need to

change or discontinue any component of the plan due to service changes or any other

circumstances, a modified project proposal will be submitted to USDOT.13 

### VI. Previous Project Goals

Yellowstone Regional Airport’s 2012 Small Community Air Service Grant proposal differs

substantially from the 2005 SCASD grant awarded to the state of Wyoming. The 2005

Grant awarded to the State of Wyoming was used to correct the misperceptions about

Wyoming’s air service offerings through a massive advertising campaign. Along with

increasing passenger retention at all Wyoming airports, these were the two main goals

of the proceeds from the 2005 grant. The current 2012 proposal is necessary to help

market winter service exclusively at Yellowstone Regional airport. The fundamental

goal of this Program is to ultimately not rely on state, local or federal subsidies to

maintain daily year round service to Denver and Salt Lake City. This added marketing

and promotional push will help make airfares more competitive and decrease the

leakage of passengers to Billings.14 

### PRIORITY SELECTION CRITERIA

I. Air Fares at Yellowstone Regional Airport are Higher than

the National Average.

Airfares at Yellowstone Regional Airport in Cody are unreasonably high. Over the past

ten years, Cody’s airfares have exceeded the national average by up to $164 round

‐ trip,

and have exceeded the two closest large low fare airports by up to $192 and $178

round

‐ trip.

Cody fares also exceed those of Billings, the nearest airport of size, and of the two

regional large hubs of Denver and Salt Lake City. For every passenger segment sold in

Cody, only two in five utilize the Cody Airport. There are nearly as many Cody residents

driving to Billings as those using their home airport. This leakage is largely due to lower

fares in Billings.

By working with airlines directly, Yellowstone Regional Airport has managed to bring

airfares more in line with the regional average since 2008. However, Cody’s airfares still

exceed regional and U.S. averages by significant amounts.



### II. The Local Community in Cody Will Match Ten Percent of

the Grant

The Program will be supported with local advertising covering the geographical areas

that frequently utilize the Yellowstone Regional Airport in Cody, Wyoming.

Local matches will be made in the form of cash contributions. Given the nature of the

Program, local merchants will likely make additional in

‐ kind contributions toward

marketing and promoting the rebates.



### III. The Local Community in Cody Has Well

‐ Established Public

‐

Private Partnerships that Support the Program.

The Airport’s public and private partnerships, as well as local merchants, will actively

participate in the implementation of the Program. In fact, the involvement of the local

community is critical to the Program. While the Program’s primary goal is to stimulate

interest in air service from Yellowstone Regional Airport during the winter months, the

Program will also stimulate the local economy, since Cody Bucks are redeemable by

local merchants. The Program will further strengthen relationships between local

merchants and Cody Yellowstone Air Improvement Resources.15 

### Public Partners:

Yellowstone Regional Airport: Yellowstone Regional Airport is designed to operate

cooperatively with city and county governments. Yellowstone Regional Airport is owned

by the City of Cody and operated by the seven

‐ member Yellowstone Regional Airport

Joint Powers Board. The City of Cody appoints four members to the Board, while Park

County appoints the remaining three. The Regional Airport Joint Powers board was

established in 1981 to plan for the future and provide the means to operate and safely

maintain an airport adequate to the needs of the flying public.

City of Cody, Wyoming: Joint owner of the airport, the City of Cody contributes to the

operation of the airport and supports it in all air service development efforts.

Park County, Wyoming: Joint owner of the airport, Park County brings regional

interests and needs to the attention of the Joint Airport Powers Board. The County also

contributes to the funding and operation of Yellowstone Regional Airport.

Park Country Travel Council: The Park County Travel Council markets Park County,

Wyoming in its entirety, including the communities of Powell, Meeteetse, the East

Yellowstone Valley, as well as Yellowstone National Park. The role of the Travel Council

is to administer Park County’s lodging tax revenues, to be spent for tourism promotion

only.



### Private Partners:

Buffalo Bill Historical Center: Through ideas, collections and programs and scholarship,

the Buffalo Bill Historical Center’s mission is to educate and entertain international

audiences about the past, present and future of the American West. The BBHC

conducts research, field trips, lectures, seminars and school and family programs in

support of its mission.

Wild Sheep Foundation: The Wild Sheep foundation was incorporated in 1977;

committed to enhancing wild sheep populations, promoting professional wildlife

management and educating the public about wild sheep and the conservation benefits

of hunting and protecting sportsmen’s rights. The foundation is one of the fastest

‐

growing wildlife conservation organizations of its kind.

Cody Country Chamber of Commerce: The Cody Country Chamber of Commerce,

Wyoming’s oldest, was founded at the turn of the 20th Century by a group of

enterprising business leaders. Together with the City of Cody, the Cody Chamber of

Commerce nurtures a diversified business community focused on energy, tourism,

agriculture, manufacturing, retail and the arts. The Chamber of Commerce has over 500

members, the 5th largest in the state of Wyoming.16 Cody Yellowstone Air Improvement Resources (CYAIR): CYAIR is a local group of civic

‐

minded individuals and organizations that work with the community and Yellowstone

Regional Airport to help determine appropriate levels of air service for the region and

work to help obtain funding to support local air service.



### IV. The Assistance Will Materially Benefit the Local Community

in Cody By Stimulating Seasonal Service and Ensuring

Continued Service.

By offering a rebate to every passenger who books a flight between the winter months

of January and April, the Program will result in overall airfares that are more

competitive with fares offered at other regional airports. This will discourage Cody

residents from driving to nearby (and not

‐ so

‐ nearby) airports to find cheaper flights.

Not only does the Program benefit the community by ensuring year round air service to

continue in slow winter months, it also benefits local merchants by retaining the money

within the community.



### V. The Assistance Will Be Used Within Months of the Grant’s

Issuance.

As detailed in the timeline included above, Cody’s marketing efforts will begin very

shortly after the announcement of awards. The City of Cody intends for the Grant

money to be used during the winter of 2013, with any excess funds to be used during

the following winter.



### OTHER FACTORS

I. Sustainability

SkyWest has cited high fuel costs and low load factors as primary reasons for low

profitability during the winter months.

A Small Community Air Service Development Grant would allow Yellowstone Regional

Airport to help fill planes during winter months. The rebate program would also be a

great marketing tool to gain more positive exposure for the airport and community.

Furthermore, it would allow the airport to potentially stop relying on federal, state and

local funds to operate the much

‐ needed air service during the winter months.

Yellowstone Regional Airport believes that the Grant funds will substantially offset

SkyWest’s current losses with higher load factors in the winter months by increasing

passenger retention rates. This in return would decrease the amount of money paid out

in revenue guarantees to the airlines. The program would incentivize passengers to fly17 out of their local community as opposed to driving to other local airports in seek of

lower fares and better schedules.

The public

‐ private partnership, the City of Cody and Park County, Wyoming understand

the critical importance of air service to their community and are prepared to explore all

options to preserve and maintain it.



### II. Legal Sponsor

The Yellowstone Regional Airport Joint Powers Board is the official sponsor responsible

for administering the program. The Joint Powers board is a government entity

registered with the State of Wyoming and is responsible for the operation of

Yellowstone Regional Airport.

Signatory:

Robert Hooper

Airport Manager

– Yellowstone Regional Airport Manager

Physical Address:

3001 Duggleby Drive

Cody, WY 82414

‐ 2748

Mailing Address:

P.O. Box 2748

Cody, WY 82414

‐ 2748

Phone: (307) 587

‐ 5096

Email: BobH@FlyYRA.com



### III. Financial Oversight

As the governing body operating Yellowstone Regional Airport, the Yellowstone

Regional Airport Joint Powers Board will be responsible for all fiscal issues and D.O.T.

reporting requirements. As a government entity chartered by the City of Cody,

Wyoming and Park County, Wyoming, D.O.T should be assured that proper financial

oversight for implementation rests in the hands of the Joint Powers Board. The Joint

Powers Board understands that it is responsible for program expenditures and will

submit invoices to D.O.T for reimbursement based on the grant request.18 

# LETTERS OF SUPPORT

# GepnrCq.nmr@ffiCw

Jvne6,20l2

:

Aloha Ley

Associate Director

U.S. Department of Transportation

400 7th Street SW

Washington. D.C. 20590

Dear Associate Director Ley:

I am writing on behalf of the 565 members of the Cody (Wyoming) Country Chamber 

### of

Commerce in support of a $100,000 Small Community Air Service Development

Program Grant request submitted by the Cody Yellowstone Air Improvement Resources

group, and Yellowstone Regional Airport.

This grant will be used to help fund a ticket rebate program that will both incentivize

local residents tg utilize serVice from Yellowstone Regional Airport, while at the same

time encouraging spending at our Cody businesses. Our goal is to encourage local flying

from January



### - April, 2013 by offering a very good benefit to both travelers and business

owners within our community.

Overall, the Cody Chamber membership believes that having convenient, local air service

is critical to their success. Future business and community growth is strongly dependent

on us continuing to support our connections to United and Delta hubs in Denver bnd Salt

Lake City respectively.

It is my hope that you will award this grant to Cody so we can have a strong program in

place to encourage flyers to utilize our local air service.

If you have any questions, please don't hesitate to contact me.

Scott Balyo

Executive Director

Cody Country Chamber of Commerce

Cody, Wyoming



### 836 Snenroaw AveNue



### . Cooy' WyoMrhre A2414



### . 307-587-2777



### . www.coDycHAMBER.oRG incerely,



# TsW