# August 27, 2010 An Integrated Program of New Service Development via:

 Startup Cost Offsets

 Advertising/Marketing

 Revenue Guarantees

In Support of New Scheduled Air Service to/from Dallas/Fort Worth

Sponsor: Bismarck Airport Bismarck, North Dakota Greg Haug, Airport Manager Congressional Code: ND-001 Dun & Bradstreet Number: 080245640 

# BISMARCK AIRPORT, BISMARCK, NORTH DAKOTA
Proposal Under the Small Community Air Service Development Program Docket: DOT-OST-2010-0124 Before the Office of the Secretary of Transportation US Department of TransportationBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 2 TABLE OF CONTENTS

Section Page Introductory Letter 3 Summary Information 4-6
Introduction 7-8 Primary Objectives of Proposal 9 Executive Summary 10-13 Detailed Explanation of Propos al/Expected Results 14-17
Current Air Service in Bi smarck 18-21
Air Service Deficiencies in Bismarck 22-25 Extenuating Factors Affecting Air Service 26 Availability of Alternate Airports 27 Grant Funding Allocation and Use of Local & Federal Funds 28 Target Audiences for Grant-Funded Service 29 Public/Private Partnerships 30-31
Timeline 32 Air Service Advisory Groups 33
Previous Grant Award 34 Local Air Service Development Efforts 35-37 In-Kind Services from the Community 38
Performance Measures 39
Financial Controls 40
Return on Investment 41
Alternate Plan 42 Airport Information 43 Community Profile 44-51 Comparison to Other Communit ies in Region 52-58
Conclusions 59Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 3 INTRODUCTORY LETTERBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 4 SUMMARY INFORMATION

Small Community Air Service Development Program
Docket DOT-OST-2010-0124



### A. Applicant Information

Not a Consortium Community now receives EAS subsidy
Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, da te of Grant: __October 11, 2002

___ expiration date of Grant: __February 1, 2008

__


### B. Public/Private Partnership

Public:

1. Bismarck Airport
2. City of Bismarck
3. City of Mandan

Private:

1. Bismarck-Mandan Chamber of Commerce
2. Bismarck-Mandan Development Association
3. Bismarck-Mandan Convention and Visitors BureauBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 5 C. Project Proposal

Marketing Upgrade Aircraft New Route
Personnel Increased Frequency Low Fare Service
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (Specify)
Revenue Guarantee Launch New Carrier Startup Cost Offset First Competitive Service Study Secure Additional Carrier



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 500,000
2. State cash financial contribution: $ 0
3. Local cash financial contribution: $ 50,000 3a. Airport cash funds: $ 0 3b. Non-Airport cash funds: $ 50,000
3c. Total local cash funds: $ 50,000
4. TOTAL CASH FUNDING: $ 550,000
5. Local funds contributed from already existing Programs of projects included in line 3c: $ 0
6. Local funds contributed from new commitments
Or new resources included in line 3c: $ 50,000
7. Airport In-Kind contribution: $ Various Description: Fee waivers: One year without landing and terminal fees
8. Other In-Kind contribution: $ Various Description: See page 38
9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined
10. TOTAL PROJECT COST: $ 550,000Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 6 F. Enplanements at Airport

2000: 134,483
2001: 131,246
2002: 139,343
2003: 141,090
2004: 159,963
2005: 174,567
2006: 180,674
2007: 181,310
2008: 175,626
2009: 181,114



### G. Is Application Subject to Review by State Under Executive Order 12372 Process?

This application was made available to the State on ______. Program is subject to review, but has not been selected by the State. Program is not covered.



### H. Is Applicant Delinquent on any Federal Debt?

NoBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 7 INTRODUCTION

Among the country’s most isolated airports, the Bismarck Airport also has one of the nation’s most expensive airfares – averaging more than $2 24 each way, or a $448 roundtrip, for the year ending in the first quarter of 2010. In fact, amon g the top 200 US airports, there is not an airport within 750 miles of Bismarck with a more expensive average fare.

A prime factor contributing to these inflated prices is the Airport’s poor coverage to the South and East. Of its six regularly scheduled routes, Bi smarck currently offers no southbound service, and only one flight per day is scheduled to Chic ago – its most eastern direct destination. High ticket prices also result from the dominance of a single airline. Delta controls about two-thirds of Bismarck’s network passenger market, including shar es in excess of 80 percent in about half of the Airport’s top 50 markets.

This air service clearly is out of step with the region’s economic boom. The Bismarck-Mandan metro area enjoys the country’s lowest unemployment rate – only 3.8 percent in June 2010. This is in large part because the city sits at the epicenter of the Williston Basin Province, site to oil and gas reserves among the largest in the US. Fields in this region led North Dakota on its way to producing 79.7 million barrels of oil in 2009, up more than a quarter from a record 62.8 million barrels the year before. Similar gains are anticipated in years to come, making North Dakota one of the nation’s larg est producers of this critical energy source.

Bismarck also benefits from the development of other energy resources, including North Dakota’s vast coal deposits and its nation-leading wind supplies. Taken together, the development of this array of energy resources will continue to fuel the local and regional economies for years to come, in turn contributi ng to national prosperity while lessening our dependence on foreign energy.

Maximum benefits of this sustained economic upswing, however, are jeopardized under
Bismarck’s current commercial ai r service. A majority of the la rgest oil exploration companiesoperating in North Dakota are headquartered in Texas and other points in the South. Energyrelated business travel to important cities like Dallas and Houston, among others, is severely limited by the Airport’s high airfar es and poor airline route coverage. 

## “Bismarck has one of the nation’s most expensive airfares. A prime factor

contributing to these inflated prices is the Airport’s limited air service
to the South and East”Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 8 The Airport must take action to lower its airf ares through an expanded air service geography and increased carrier competition. In pursuit of these goals, this proposal offers three route options. Option one introduces American Eagle nonstop service to Dallas/Fort Worth. This route, in opening coverage to the South, would directly link Bismarck with the he adquarters of some of the country’s biggest energy companies and thereby ensure unimpeded two-way business travel for one of North Dakota’s – and the nation’s – most important industries. Indeed, this is the most desired route among petroleum companies operating in the state.

Alternate options reduce fares by enhancing eastern connectivity. Option two adds a second nonstop daily flight on United to Chicago O’Hare, doubling the number of seats to one of the country’s best-connected hubs and thereby cont ributing to greater network competition in Bismarck’s top eastern markets. And option three introduces direct service to Milwaukee on Frontier, spurring low-fare competition in a nu mber of Bismarck’s larg est domestic passenger
markets.
This grant proposal calls for Department funding of $500,000 and a local “new” money match of $50,000. The combined $550,000 would be used to recruit, abate risk, and market new
commercial air service. This new service would address the market’s current high fares, which
result from limited east- an d southbound access, low competition, and market share concentration issues that have arisen from the Delta/Northwest merger.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 9 PRIMARY OBJECTIVES OF PROPOSAL

Objectives for program include:

 reducing airfares at the Bismarck Airport;

 increasing air service to regions currently not served or underserved by the Airport;

 increasing airline competition in the Bismarck market; and

 improving business travel access to oil and gas production fields of North Dakota

Means to achieve objectives include:

 building a business case for addi tional commercial air service;

 providing financial support, in the form of a minimum revenue guarantee and other incentives, to reduce the finan cial risk to the airline; and

 recruiting American Eagle jet service between Bismarck and Dallas/Ft. Worth. Alternate options include doubling seat capacity to Chicago O’Hare on United, or introducing
new low-cost service on Frontier to Milwaukee.

Course of action to support means include:

 contributing startup costs to reduce the cost of entry into the market;

 providing revenue guarantees to ensu re success of the new service; and

 supplying marketing support to increase awareness of lower fares and increased connectivity.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 10 EXECUTIVE SUMMARY

Connecting central-western North Dakota with the national air transp ortation network, the Bismarck Airport plays an important role in th e region’s sustained economic boom, which is being driven largely by the development of the region’s tremendous energy resources. The Airport provides the only commercial air servic e within a radius of approximately 100 miles. Fargo, located some 200 miles away, is the nearest airport offering comparative
levels of service.

The Airport’s catchment area includes the area defined by
the US Census Bureau as the
Bismarck-Mandan Metropolitan Statistical Area (MSA), along with a large
swath of central-western
North Dakota and a small portion of northern South
Dakota. Due to its relative isolation, service at the Airport draws from a very large geographic area – farther
than even the two hour catchment encompassed by the dark, solid line in Figure 1.
Bismarck’s 60-minute
catchment area is home to about 110,000 people as of the latest US Census estimates, while the 120-minute catchment area is home to more than 225,000 people. Realistically, though, the Airport potentially attracts travelers from a 45-county area, displayed in orange in Figure 1, home to more than 380,000 people. 

### FIGURE 1: The Bismarck Airport’s catchment areaBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 11 Passengers at Bismarck Airport
have access to regular direct service by three
carriers to six destinations (see Figure 2), which, as of June 2010,
combine for an average of 13.5 flights per day each way (FDEW). Most frequent – 5.6 FDEW, or little more than 40 percent of all flights at Bismarck – is Delta service to Minneapolis. Servic e to four destinations in the West and Southwest account for just over half all flights, including fo ur daily flights to and from Denver on United, two roundtrips per day to Salt Lake City on Delta (thi s service will be reduced to one flight per day on November 23, 2010), and Allegiant service to Las Vegas (0.5 FDEW) and Phoenix/Mesa (0.4 FDEW). Only a single daily flight each way on United connects Bismarck travelers with Chicago O’Hare, the Airport’s easternmost nonstop destination. There is no direct southbound service.

The Airport’s poor coverage in the South and East poses a distinct challenge for the increasingly large business contingency flowing in and out of Bismarck and its surrounding communities. Particularly inconvenienced are travelers employed in the oil and gas industries, vital to the area’s economy. As a recent survey shows, 11 of the largest 20 oil companies with operations in North Dakota have headquarters in Texas, an d another three are based in other southern locales. Executives of these and multiple othe r companies developing North Dakota’s sizeable energy capacities cite Bismarck’s inadequate service to the South and East as a major inconvenience in conducting their business.

The Airport’s limited geography contributes to it s having some of the nation’s most expensive airfares, averaging $224 each way for the year ending in the first quarter of 2010 – $53 greater than the $171 average for the top 200 US airports (see Figure 3 on next page). Among airports in 

### FIGURE 2: Current air service at the Bismarck Airport, June 2010Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 12 North Dakota and its neighboring states ranked in the US top 200, only Kalispell, MT – more than 750 miles away – has a higher average fare. Accompanying
Bismarck’s exorbitant fares are particularly high revenue yields for its carriers. Tickets at the Airport generate average yields exceeding 19¢ per mile – 22 percent above the 200-airport national average and the highest among airports in North Dakota and its neighboring states (see Figure 4).

Bismarck’s burden of high fares, however, is not spread evenly. In markets east of Minneapolis (excluding Chicago) to rank among Bismarck travelers’ top 50 destinations, one-way fares averaged $279 for the year ending first quarter 2010. This is $55 above the Airport’s already exorbitant overall average and $108 more expensive than the typical US average one-way fare.
This uneven burden is tied to the monopoly-like conditions enjoyed by Delta in the East. The carrier,
which took over Northwest’s operations at the Airport following the airlines’ 2008 merger, cumulatively handles almost 90 percent of Bismarck’s eastbound
passengers.
In spite of high fares and poor geographical coverage, thanks to a booming regional economy passenger demand at Bismarck has climbed by more than 9 percent over the past five years (see Figure 5 on next page). The dip in origin an d destination passengers in the year ending in 

### FIGURE 3: Average one
‐ way fares at airports ranked among top US 200 in North Dakota and neighboring states, YE1Q2010 (source: US DOT Table DB1A) $233 $224 $214 $212 $209 $207 $206 $204 $183 $183 $181 $176 $164

$0 $50 $100 $150 $200 $250 Kalispell, MT Bismarck, ND Grand Forks, ND

Great Falls, MT

Bozeman, MT Sioux Falls, SD

Duluth, MN Missoula, MT

Fargo, ND Rapid City, SD Rochester, MN Billings, MT Minneapolis, MN National average = $171 4-state average = $200



### FIGURE 4: Average yields at airports ranked among top US 200 in North Dakota and neighboring states, YE1Q2010 (source: US DOT Table DB1A) 19.13¢ 17.96¢ 17.92¢ 17.06¢ 16.97¢ 16.91¢ 16.00¢ 15.85¢ 15.72¢ 15.31¢ 15.03¢ 14.97¢ 14.73¢

0¢ 2¢ 4¢ 6¢ 8¢ 10¢ 12¢ 14¢ 16¢ 18¢ 20¢ Bismarck, ND Sioux Falls, SD Rochester, MN Duluth, MN Great Falls, MT Grand Forks, ND

Rapid City, SD

Missoula, MT Kalispell, MT Bozeman, MT Minneapolis, MN Fargo, ND Billings, MT National average = 15.7¢ 4-state average = 16.4¢Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 13 the first quarter of 2009, far
milder than losses experienced at most US airports in the same period, has been mostly recouped this past year. For much of the past five years, rising numbers of passengers at the Airport has coincided with rising ticket prices, increasing from a one-way average of $192 for the year ending in the first quarter of 2005 to $249 four years later – a jump of 30 percent. The following year, howe ver, Bismarck’s average one-way fares fell by 10 percent.

It is no coincidence that this significant price decline follows the announcement in March 2009 of direct United service to and from Chicago O’Hare. The creation of the Chicago route brings the Airport ever closer to important markets in the East, evidence that increased competition and enhanced service across a broader geogra phy translate into lower airfares and, consequently, higher numbers of passengers at Bi smarck. However, with on ly a single roundtrip per day, this new route alone poses no real challenge to Delta’s dominance in the East.

In order to sustain its oil and gas-fuelled econom ic growth, west-central North Dakota needs an airport that is highly connected to national and, increasingly, international commercial transportation networks. Thus far, however, the Bismarck Airport has been unable to equal the challenge of the region’s emergence as major energy producer. The Airport can play its part in ensuring the continued growth of the surrounding economy by taking bold steps to reduce its airfares through the expansion of its geographic al coverage. The biggest positive impact most immediately would result from new service to the South, ideally to Dallas/Fort Worth. Expanded access to the East would also complement existing service at the Airport. But the Airport cannot take these steps alone. In spite of North Dakota’s growing profile as a key supplier of our nation’s energy needs, Bismarck will succeed in recruiti ng additional service only with the federal assistance necessary to reduce a new airline’s barriers that block entry into the market. 

### FIGURE 5: Domestic origin and destination passengers and average
one
‐ way fares at Bismarck, YE1Q2010 (source: US DOT Table DB1A) 318,950 341,100 343,000 348,410 330,120 348,070

$192 $199 $220 $235 $249 $224

$0.00 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 260,000 270,000 280,000 290,000 300,000 310,000 320,000 330,000 340,000 350,000 360,000

YE 1Q 05 YE 1Q 06 YE 1Q 07 YE 1Q 08 YE 1Q 09 YE 1Q 10 O&D Passengers Fared Average FareBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 14 DETAILED EXPLANATION OF PROPOSAL/EXPECTED RESULTS

The Bismarck Airport believes three different route/carrier combinations would fulfill the Grant objectives of lowing airfares, increasing east- and southbound air service, increasing competition, and improving business travel access to the oil and gas production fields of North
Dakota.


### Option One

The first option is recruitmen t of American Eagle regional jet service from Bismarck to Dallas/Fort Worth (see Figure 6). American Eagle has been aggressively adding smaller city service from its Dallas hub in recent years, notably Roswell, NM, Manhattan, KN, Cheyenne, WY, and Sioux Falls, SD.

The Bismarck – Dallas/Fort Worth local market is the ninth largest local origin and destination (O&D) passenger
market for Bismarck.

Bismarck – Dallas/Fort Worth service would create an estimated 31 new single-co nnect markets for Bismarck. The bulk of the oil and gas mining companies active in North Dakota have headquarters or major facilities in Texas. Thus, there is a significant oil and gas business community of interest between the two states.

The Bismarck – Dallas/Fort Worth route is 978 statute miles, and the Bismarck proposal would be for a once-daily roundtrip service pattern initially (see Figure 7).



### FIGURE 7: Bismarck

– Dallas/Fort Worth operational forecasts 

### Distance 978 Frequency One daily round trip Equipment EMB

‐ 140 Annual Flights 715

Block Time 2.6 Annual Block Hours 1,859.0 Annual Seats 31,460 ASM 30,767,880 FIGURE 6: Proposed route, Bismarck

– Dallas/Fort WorthBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 15 Bismarck – Dallas/Fort
Worth service could generate nearly 100
online-connect city pairs, including 69 domestic, 17
Caribbean and Mexico, nine South American,
and three in Europe (see Figure 8).

Assuming a
modest
stimulation of
the Bismarck – Dallas/Fort Worth local market and a fair share capture of that traffic plus connect flows, the potential for a viable route segment clearly exists. A 75-percent load factor on the single daily flight would require a 25-percent share of the 94,585 potential flow O&D (see Figure 9).


### Option Two

Another option for improving Bi smarck’s east- and southbound network carrier traffic is additional frequency to Chicago O’Hare. Bismarck is fortunate to have a single daily nonstop flight by incumbent carrier United Airlines to Chicago O’Hare. However, when matched against the high frequency Delta service to the powerful Minneapolis hub, this single daily flight cannot effectively compete for traffic flows to the East and South.

Grant funding could be used to provide risk abatement funding for a second United flight to Chicago O’Hare. 

### Traffic New Service Traffic Traffic Yr Q1 2010 Stimulation W AA Service Local 6,780 50% 10,170 Connect 80,395 5% 84,415

Total 87,175 94,585 

### FIGURE 8: One

‐ stop connections on proposed route, Bismarck

– Dallas/Fort Worth

FIGURE 9: Bismarck

– Dallas/Fort Worth traffic flowsBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 16 Chicago O’Hare is Bismarck’s sixth largest
local O&D market. United’s Bismarck – Chicago flights generate 85 connect city pairs, 75 domestic, and ten European or Asian (see Figure 10).

The Bismarck – Chicago
O’Hare route is 716 statute miles. The proposal would add once-daily roundtrip service to the existing once-roundtrip service pattern (see Figure 11).

Assuming a slight
stimulation of the Bismarck – Chicago local market and a fair share capture of that traffic plus connect flows, the potential for a viable route segment clearly exists.

A load factor of 75 percent on the combined twice-daily roundtrip pattern would require a 40- percent share of the 135,756 potential flow O&D.



### Traffic New Service Traffic Traffic Yr Q1 2010 Stimulation W UA Service Local 8,140 15% 9,361 Connect 120,376 5% 126,395

Total 128,516 135,756 Distance 716 Frequency One daily round trip Equipment EMB

‐ 145 Annual Flights 715

Block Time 2.1 Annual Block Hours 1,501.5 Annual Seats 35,750 ASM 25,597,000

Annual Flights 715

Block Time 2.1 Annual Block Hours 1,501.5 Annual Seats 35,750 ASM 25,561,250

Annual Flights 1,430

Block Time 2.1 Annual Block Hours 3,003.0 Annual Seats 71,500 ASM 51,158,250 g p

Combined with Existing Flight

Route Annual Total 

### FIGURE 12: Bismarck

– Chicago O’Hare traffic flows FIGURE 10: One

‐ stop connections on proposed route, Bismarck

– Chicago O’Hare

FIGURE 11: Bismarck

– Chicago O’Hare operational forecastsBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 17 Option Three

Another option for im proving Bismarck’s
east- and southbound network carrier traffic
is the addition of Fronti er Airlines regional jet
service to Milwaukee.

Milwaukee is Bismarck’s thirty-second largest
O&D local market. Milwaukee’s close proximity to the Chicago metro area, along
with the intermodal Amtrak service from the Milwaukee Airport Train Station to North Chicago and Downtown Union Station,
means that Milwaukee service would also draw some Chicago local traffic.

The Milwaukee Frontier hub would create 25 online connection city pairs from Bismarck (see Figure 13).

The Bismarck – Milwaukee route is 683 statute miles, and the proposal would be for a once-daily roundtrip service pattern initially (see Figure 14).

Assuming a slight stimulation of the Bismarck – Chicago local market and a fair share capture of that traffic plus connect flows the potential for a viable route segment clearly exists. A 75- percent load factor on the single roundtrip pa ttern would require a 27-percent share of the 73,649 potential flow O&D (see Figure 15).



### Traffic New Service Traffic Traffic Yr Q1 2010 Stimulation W F9 Service Local 2,220 50% 3,330 Connect 66,970 5% 70,319

Total 69,190 73,649 

### Distance 683 Frequency One daily round trip Equipment EMB

‐ 135 Annual Flights 715

Block Time 1.75 Annual Block Hours 1,251.3 Annual Seats 26,455 ASM 18,068,765 FIGURE 13: One

‐ stop connections on proposed route, Bismarck

– Milwaukee

FIGURE 15: Bismarck

– Milwaukee traffic flows

FIGURE 14: Bismarck

– Milwaukee operational forecastsBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 18 CURRENT AIR SERVICE IN BISMARCK
T AIR SERVICE IN BISMARCK

The Bismarck Airport is served by two network airlines and one low-cost carrier, combining to provide flights to six nonstop destinations. Delta has daily service to its hubs in Minneapolis and Salt Lake City, while United offers daily flight s to its hubs in Denver and Chicago. Allegiant provides low-cost service to Las Vegas and Phoenix/Mesa.

Despite the presence of three airlines in the market, the Airport remains saddled with fares that are among the most expensive in the nation – averaging about $224 each way as of the end of the first quarter 2010, or $448 roundtrip. This is about 30 percent higher than the average among the top 200 US airports. Bismarck’s fares are particularly expensive for travel to and from the East. For market pairs east of Minneapolis (excep t Chicago) to rank among Bismarck’s top 50 destinations, a typical one-wa y fare stands at $279 – one-forth more expensive than the Airport’s already high overall average.

Bismarck’s exorbitant fares relate to the poor geographical diversity of its current service. Of its six regularly scheduled flights, four are to destinations in the
West or Southwest. There curre ntly is no service to the South, in spite of the growin g importance of business-tobusiness contacts between North Dakota and Texas, and only a single flight per day is scheduled to Chicago – the Airport’s most easterly direct destination.

Sustained economic growth in west-central North Dakota, coming in large part thanks to the development its energy sectors, has produced an in creasingly large pool of travelers in Bismarck and its surrounding communities. The Airport, however, cannot adequately meet this growing demand with its stubbornly high fares and limited geographical coverage. New direct service to the South, ideally to Dallas/Fort Worth, or enhanced service to the East will simultaneously bring down ticket prices and raise passenger flows at Bismarck.


### Current Passenger Traffic in Bismarck

Bismarck has largely sidestepped the downturn in domestic travel that has affected other airports throughout the nation. After sagging slightly in year ending in the first quarter of 2009, the 

## “Economic growth has produced an increasingly large

pool of travelers at Bismarck. The Airport needs to expand its geographical coverage to the
South and East to meet this growing demand”Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 19 720 719 777 785

730 719 763

701 705 748 755 733 714 727 855 928

875

739 752 741 741 725 818 879

800

442 485 519 528

449 424 526
487 560

473 526 503
464 500 552 550

490 470 539
496 517 484 550 599

516

300 400 500 600 700 800 900 1,000 1,100

Available SDEW Onboard PDEW Flights Per DEW 10.1 10.2 10.0 10.2 9.6 9.7 10.1
9.2 8.9 9.6 10.1 9.8 10.2 10.1 12.1 12.4 12.1 11.5 11.2 11.0
10.1 10.2 11.2 11.6 11.5 number of onboard passengers ha s returned to an upward trajec tory that has characterized the Airport over the past decade. In fact, the number of passengers at Bismarck grew at a rate in excess of 5 percent for the year ending the first quarter of 2010 over the previous year. At the same time, the average one-way airfare dropped by $25 – a price reduction of more than 10 percent in a single year, yet still among the highest in the nation.

Over the past two years, the Bismarck Airport has witnessed overall modest gains in onboard passengers, seats available, and frequency of fl ights. Total onboard passengers at the Airport have increased 17 percent, rising from 443 passengers per day each way (PDEW) in April 2008 to 516 PDEW in April 2010 (see Figure 16). In the sa me timeframe, the availability of seats has grown by 11 percent, up from 719 seats per day each way (SDEW) for April 2008 to 800 SDEW two years later. Similarly, frequency of flights has climbed 14 percent, from 10.1 flights per day each way (FDEW) in April 2008 to 11.5 in April 2005.

These positive trends, however, should not be overstated. Bismarck’s fares are still far too high, especially in the East, and its coverage is far too low in both the South and East.



### FIGURE 16: Available seats, onboard passengers, and daily departures, April 2008

– April 2010 (source: T100 Reports)Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 20 In spite of high
fares and a limited geography, the Airport generated
more than ten
passengers per day each way (PDEW) to seven domestic markets,
and five or more
PDEW to all but two of its top 20
domestic markets as the year ended first quarter 2010 (see Figure 17). In that time period, the top destination
for Bismarck
travelers was Las Vegas, which accounted for more than 56,000 origin and destination trips, or almost 77 PDEW. The second most popular destination was Phoenix/Mesa, which generated in excess of 40,000 origin and destination passengers, or just under 56 PDEW. Denver and Minneapolis each generated more than 22,000 origin and destination passengers, greater than 30 PDEW. And Washington, DC accounted for more than 10,000 passengers, or almost 15 PDEW.

Dallas/Fort Worth is currently the Airport’s nint h-largest passenger market, while Houston is its thirteenth. And San Antonio, currently the twenty-second most popular destination, is fast becoming a popular destination for Bismarck-are a travelers, with the number of passengers growing by 24 percent for the year ending in the first quarter of 2010. Yet demand to these and
other southern destinations is li kely understated due to the twin suppressants of high airfares and limited coverage. 

### FIGURE 17: Bismarck’s top 20 origin and destination domestic passenger markets, YE1Q2010 (source: US DOT Table DB1A) 56,070 40,710 23,960 22,680 10,770 9,920 7,380 7,190 6,800 6,010 5,230 4,950 4,570 4,410 4,120 4,030 3,690 3,660 3,560 3,550 76.8 55.8 32.8 31.1 14.8 13.6 10.1 9.8 9.3 8.2
7.2 6.8 6.3 6.0 5.6
5.5 5.1 5.0 4.9 4.9

0 10,000 20,000 30,000 40,000 50,000 60,000 Las Vegas, NV Phoenix/Mesa, AZ Denver, CO Minneapolis, MN Washington, DC Chicago, IL Orlando/Sanford, FL Seattle/Tacoma, WA Dallas/Ft Worth, TX New York/Newark, NY Los Angeles, CA Salt Lake City, UT Houston, TX Atlanta, GA Portland, OR San Diego, CA St Louis, MO Kansas City, MO San Francisco, CA Boston, MA Annual Passengers

PDEWBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 21 Air Carrier Market Share in Bismarck
For many years, Northwest was the unrivaled ai rline at the Bismarck Airport. Since the Delta/Northwest merger in 2008, however, Unit ed and Allegiant have swiftly increased their shares of the market, although Delta easily main tains the largest shares of both passengers and revenue. Delta’s dominance is particularly evident in the East and Southeast, where the airline claims shares in excess of 90 percent in many important markets. Recent gains by United and Allegiant have brought grea ter choice and, over the past year, lower fares. Additional competition, if it leads to increased geographical diversity, will ensure the continuation of this positive trend.

As of the year ended first quarter 2010, Delta carried nearly 48 percent of Bismarck travelers, while United and Allegiant each carried about one-quarter of the total (see Figure 18). A year befo re, Delta claime d 55 percent of the passenger market, while United carried 24 percent of the Bismarck’s travelers and Allegiant carried 19 percent. Only modest shifts toward greater competition among the three airlines can be expected in the future without the introduction of new south- or
eastbound direct service.

Similar dynamics are evident in Bismarck’s reve nue market. For the year ended first quarter 2010, Delta took 56.6 percent of total revenues, United claimed 29.4 percent, and Allegiant earned 12 percent (see Figure 19). Compared with the prev ious year, Delta’s revenues at Bismarck were down 14.6 percent, while United gained 6.6 percent and revenues fo r the low-cost carrier shot up 28.4 percent. 

### FIGURE 18: Passenger market share at Bismarck, YE1Q2010 (source: US DOT Table DB1A) Delta 47.7%
United 26.0% Allegiant

25.0% Others 1.3%

Delta 56.6% United 29.4%

Allegiant

12.0% Others 2.0%



### FIGURE 19: Revenue market share at Bismarck, YE1Q2010 (source: US DOT Table DB1A)Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 22 Nonstop Destination Carrier Departures Per Day Seats Per Day Share of All Seats 

### Salt Lake City Delta 2 100 22% Denver United 4 198 44% Las Vegas Allegiant 0.5 85 19% Phoenix/Mesa Allegiant 0.4 64 14% TOTAL 6.9 447 100%

Nonstop Destination Carrier Departures Per Day Seats Per Day Share of All Seats 

### Minneapolis Delta 5.6 395 89% Chicago O’Hare United 1 50 11% TOTAL 6.6 445 100% 

## AIR SERVICE DEFICIENCIES IN BISMARCK

Domestic air service at the Bismarck Airport, among the most expensive in the US, is characterized by its limited geog raphical diversity. Today, only westbound travelers receive the choice in service they deserve. As seen in Figure 20, four flights on three separate airlines link Bismarck directly with the West/Southwest. Of the nearly seven westward flights per day from the Airport, no carrier claims an outright majority of the total seats, a fact that spurs competition in markets beyond immediate hubs in the West.

For eastbound travelers, it’s a much different story. Direct easterly service at the Airport is dominated by Delta flights to its Minneapolis hub, which handles almost nine in te n of Bismarck’s eastward travelers (see Figure 21). United nonstop service to Chicago, limited to a single flight per day, has yet to mount a real challenge to Delta for the Airport’s easterly passenger flows.

Currently there is no direct service for Bismarck’s southbound travelers, in spite of growing energy-related
business travel between North Dakota and Dallas, Houston, and other points in the South.

The geographical unevenness in nonstop domestic air service from the Airport translates into regional disparities in market shar es at subsequent destinations. As illustrated in Figure 22 on the next page, Delta’s 90-percent share of nonstop eastward service leads to the airline having similarly monopolistic shares at se veral of Bismarck’s most popular destinations. Of destinations in the Northeast ranked among the Airport’s top 50 pa ssenger markets, only in Boston does Delta’s share fall below 85 percent. In Florida, the ca rrier claims a cumulative share of 90 percent. Among all popular destinations east of Minneap olis (excluding Chicago), Delta controls 89 percent of Bismarck’s origin and destination pa ssenger traffic – mirroring the airline’s overall share of direct eastward passengers at the Airport. 

### FIGURE 20: Direct westbound service out of the Bismarck Airport, June 2010

FIGURE 21: Direct eastbound service out of the Bismarck Airport, June 2010Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 23 The dominance of a single airline in the East contrasts with the situation in the West, where there is real competition among network carriers for Bi smarck travelers. In almost all West Coast markets ranked among the Airport’s most popu lar destinations, Delta and United maintain relative parity in their passenger market shares.

The East-West division in Bismarck’s passenger mark ets is echoed by a geographical split in ticket prices. Not surprisingly, among the Airport’s top 50 destinations, lowest average one-way airfares are found in the West, where network carriers must compete for Bismarck travelers. As seen in Figure 23 on the next page, on ly two nonwestern destinations – Cincinnati and Cleveland – are among Bismarck’s 15 lowest-priced market pairs. The origin and destination passenger market among these 15 lower-priced destinations, again, not surprisingly, is shared almost evenly between Delta and United, with the latter enjoying only a very slight advantage.

A list of highest fares among the Airport’s top de stinations comes with a slightly more varied geography (see Figure 24 on the next page). About half of the highest-fare markets are in the



### FIGURE 22: Domestic O&D passengers, by airline, at Bismarck’s top 50 markets, YE1Q2010 (source: US DOT Table DB1A)Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 24 Northeast or Southeast, including Pittsburgh, Detroit, Philadelphia, Washington, Baltimore, Atlanta, Charlotte, and Tampa/St. Petersburg. These are passenger markets where Delta’s predominance is unquestioned. The airline’s virtual monopoly also explains exorbitant
fares at the Midwestern destinations of Omaha and Kansas City.

Much of the remainder of the list of highest-fare market pairs, however,
consists of destinations in the South with passenger shares divided relatively evenly between Delta and United. Prominent are Houston, with the highest average one-way airfare among Bismarck’s top destinations – a full $115 above the Airport’s overall average one-way airfare – and Austin, number six on the list. Expensive tickets in these markets, unlike in the Northeast, are not associated with the dominance of a single carrier. Rather, the high cost of air service from Bismarck to Houston, Austin, Oklahoma City, and other points in the South is a product of the Airport’s poor coverage in the South.

Bismarck’s most expensive fares are paired with especially high revenue yields. The 15 highest-fare O&D market pairs enjoy an average yield of 26.3 cents per passenger per mile – 37 

### FIGURE 23: Bismarck’s 15 lowest

‐ fare O&D passenger market pairs, from top 50, excluding markets with direct low

‐ cost service, YE1Q2010 (source: US DOT Table DB1A)

FIGURE 24: Bismarck’s 15 highest

‐ fare O&D passenger market pairs, from top 50, excluding markets in Hawaii and Alaska, YE1Q2010 (source: US DOT Table DB1A) Market Average One-Way

Fare Average Yield Passenger Share DELTA Passenger Share UNITED Colorado Springs, CO $202.30 29.49¢ 19% 81%

Salt Lake City, UT $208.05 22.28¢ 65% 35% Denver, CO $219.23 39.87¢ 6% 94% Spokane, WA $224.98 15.28¢ 66% 34%

Boise, ID $231.40 18.68¢ 42% 58% Cincinnati, OH $231.72 22.09¢ 85% 15% Seattle/Tacoma, WA $232.47 13.96¢ 64% 36% Reno, NV $232.75 17.42¢ 24% 76% San Diego, CA $233.30 15.10¢ 44% 56% Sacramento, CA $234.51 15.46¢ 30% 70% Orange County, CA $239.18 15.96¢ 39% 61%

Los Angeles, CA $242.98 15.25¢ 50% 50% San Francisco, CA $251.05 15.36¢ 40% 60%

Cleveland, OH $251.17 24.38¢ 88% 12% Portland, OR $251.41 15.42¢ 52% 48% 15-Market Average $232.43 19.73¢ 48% 52% Overall BIS Average $224.34 19.14¢ 48% 26%

Market Average One-Way

Fare Average Yield Passenger Share DELTA Passenger Share UNITED Houston, TX $339.25 24.0¢ 56% 44% Albuquerque, NM $337.61 34.4¢ 24% 76% Atlanta, GA $326.16 24.2¢ 93% 7% Pittsburgh, PA $323.48 28.4¢ 91% 9% Philadelphia, PA $311.39 22.5¢ 90% 10% Austin, TX $310.73 22.1¢ 51% 49% Baltimore, MD $305.51 21.9¢ 88% 12% Washington, DC $302.29 22.2¢ 87% 13% Detroit, MI $301.67 32.2¢ 96% 4% Charlotte, NC $300.65 22.4¢ 86% 14% Tampa/St. Petersburg, FL $293.67 17.0¢ 88% 12% Omaha, NE $289.72 44.1¢ 100% 0% Kansas City, MO $285.45 34.7¢ 81% 19% Oklahoma City, OK $283.89 26.3¢ 40% 60%

New Orleans, LA $279.61 18.6¢ 67% 33% 15-Market Average $306.07 26.34¢ 76% 24% Overall BIS Average $224.34 19.14¢ 48% 26%Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 25 percent higher than the overall Bismarck average and 68 percent higher than the national average for the year ending first quarter 2010. As seen in Figure 25, highest yields among Bismarck’s top 50 O&D city pairs (excluding market s with direct low-cost service) are posted in markets with lowest competition – namely, those in the Delta-dominated East. Much lower yields correspond with lower airfares in the West. Moderate-to-high yields are seen in the South.

The Airport’s uneven geography features high airfares, especially in the East, where Delta enjoys a virtual monopoly in several to p-ranked markets, and the South, which currently has no direct service from Bismarck. This limited geographical diversity can be reme died most immediately through the establishment of American nonstop se rvice to and from Dallas/Fort Worth, directly linking Bismarck with the headquarters of mult iple energy companies active in North Dakota while improving overall coverage in the South and Southeast. Increased service to the East, including additional United flights to Chicago O’Hare or low-cost Frontier service to Milwaukee, would also help to improve the Airport’s geographical diversity through increased competition in a number markets in the East currently dominated by Delta.



### FIGURE 25: Stage

‐ adjusted yields at Bismarck’s top 50 markets, YE1Q2010 (source: US DOT Table DB1A)Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 26 EXTENUATING FACTORS AFFECTING AIR SERVICE

In the wake of the Delta/Northwest merger, the Airport’s commercial air service market is dominated by Delta Air Lines. While Delta has a 48-percent share of the overall Bismarck market, when leisure carrier Allegiant is excluded from the calculation, Delta assumes a 67-percent share
of total network traffic.

As discussed in the previous section, this domina nce is particularly obvious in eastbound markets. Delta has shares of 80 percent or more of su ch important markets as Atlanta, Pittsburgh, Philadelphia, Baltimore, Washington, DC, Detroit, Charlotte, Tampa, Omaha, and Kansas City.

While the Bismarck market has some semblance of competitive balance in the West, with United service via Denver competing with Delta service via Salt Lake City, there is only a regional jetroundtrip per day to Chicago to compete with the Delta service pattern to Minneapolis for eastand southbound traffic.

While market share dominance situations do occa sionally develop in the deregulated domestic airline industry, the competitive imbalances in the Bismarck market are limiting business travel access to the critical domestic energy producti on fields and facilities of central and western
North Dakota.

It is essential and in the national interest for ou r domestic energy capability to be developed as efficiently as possible. The Bismarck Airport is th e closest, most accessible, and largest regional airport for a large area of the North Dakota/South Dakota/Montana energy fields.

Thus, addressing Bismarck’s air service needs, as de scribed in this application, is not just a matter
of the air service choices and airfares of a mo dest North Dakota community – it is also a contributing factor in the effective development of domestic energy supplies. This is in the
national interest.



## AVAILABILITY OF ALTERNATIVE AIRPORTSBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 27 AVAILABILITY OF ALTERNATE AIRPORTS

The Bismarck Airport is among the nation’s mo st isolated airports. Minneapolis, the closest national hub, is some 440 miles away. The near est airport matching or exceeding levels of service at Bismarck is Fargo, which requires a 2 00-mile drive that takes nearly three hours, not taking into account North Dakota’s often adverse winter traffic conditions (see Figures 26 and 27). Jamestown, Dickinson, and Minot are much closer, each about two hours or less from the Airport, yet none of these options approaches service levels provided at Bismarck. Devils Lake, Williston, and Grand Forks, all
located more than 200 m iles away, require drive
times in excess of three hours and also offer far reduced service. In short, there is no viable alternative to Bismarck for nearly 200 miles.



### FIGURE 27: Location of the Bismarck Airport in relation to other airports in region FIGURE 26: Drive time and distance from the Bismarck Airport to other airports in region Drive Mileage Time Bismarck to Jamestown (JMS) 106 1:41

Bismarck to Dickinson (DIK) 108 1:43

Bismarck to Minot (MOT) 115 2:02 Bismarck to Fargo (FAR) 199 2:54 Bismarck to Devils Lake (DVL) 202 3:12

Bismarck to Williston (ISN) 232 3:34 Bismarck to Grand Forks (GFK) 277 4:01Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 28 USE OF LOCAL AND FEDERAL FUNDS

Grant Funding Allocation

Total Grant cash funding will be $550,000, incl uding $500,000 from the Department and $50,000
from local Bismarck non-airport sources (see Figure 28). This
is an allocation percentage of 90.9 percent federal and 9.1 percent local.


### Marketing and Advertising

The Bismarck Airport proposes to spend $50,000 in funds on marketing and advertising efforts in support of new service. The goal is to increase new service enplanements and usage.



### Revenue Guarantee

The Airport proposes to make $500,000 in funds for a revenue guarantee to support the new service and to cover startup losses that may occur during the first 12 months of service. Subject to carrier negotiation, payments will be made to the new carrier quarterly, when income derived from passengers and ca rgo is less than agreed expens es on the route. Quarterly revenue that exceeds expenses will be cr edited to other quarters that do not.


### Startup Cost Offsets

The Airport proposes, subject to carrier negotiatio n, to use a small portion of Grant funding from the Revenue Guarantee pool to pay for startup co sts in support of new service introduction.



### Additional Costs

The Bismarck Airport may incur mode st additional costs related to recruitment of a carrier for the new service and program administration. Thes e modest additional costs will come from the revenue guarantee portion of the funding. Percent Revenue Guarantee Funding Source Amount Allocation Startup Offset & Admin Costs Marketing & Promotion Bismarck $50,000 9.1% $45,455 $4,545

DOT $500,000 90.9% $454,545 $45,455 Total $550,000 100.0% $500,000 $50,000 Allocation



### FIGURE 28: Bismarck grant funding allocationBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 29 TARGET AUDIENCES FOR GRANT-FUNDED SERVICE

The Bismarck Airport is a region al air service gateway for a large area of central and western North Dakota, parts of north-central South Dako ta, and even parts of far western Montana. While the local population in this vast area is mo dest in number, both business and leisure travel demand is strong. The goals of th is Grant application are to redu ce high average fares, improve east- and southbound air service, and increase overall air service competition at Bismarck. The target audiences for new service generated by this Grant include the following:


##  Bismarck-area business travelers and companies. The Bismarck region has a very healthy economy and area firms must compete in national and international markets despite the relative isolation of North Dakota. Quality air service is thus essential to the continued health and growth of local business and industry. 

##  The government of the State of North Dakota, along with federal agencies located in Bismarck. The State watches its budgets very carefully, but at the same time efficient government requires air travel. Therefore, state government will be a key target audience for this air service and a significant user of it. Additionally, as the state capital, Bismarck is home to many federal agencies th at also demand lots of out-of-state travel. 

##  The energy production businesses of central and northern North Dakota use the Bismarck Airport for air travel. These travelers are both local in origin and involve inbound destination traffic from headquarters or distant facilities, especially involving the large oil and gas industry infrastructure of Texas. 

##  Local residents on leisure or visits to friend s and relatives. The North Dakota climate is harsh, and even the hardiest of locals consider and take a trip to warmer climates during the winter. North Dakota’s low unemployment rate and relatively high ratio of wealthy
residents means there is demand for leisure tr avel. This new air service will help enable
that travel and drive down airfares. 

##  The Airport will make every effort to work wi th local companies to ensure that inbound
business travelers are aware of the new service. Where email or other contact information can be gathered for inbound traffic the airport will endeavor to promote the
new service via those means.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 30 PUBLIC/PRIVATE PARTNERSHIPS

A number of local partners will be working with the Bismarck Ai rport to promote, support, and
market the new air service. Contacts will be made with all members of the Bismarck-Mandan Chamber of Commerce and similar organizations, along with other groups and individuals with an interest in expanding the economic base of the community through local business growth, attraction of new businesses, and promotion of tourism and visitor traffic via the Airport.



### Bismarck-Mandan Chamber of Commerce

The Airport’s quest for new commercial air serv ice is supported foremost by the BismarckMandan Chamber of Commerce. The Chamber’s Foundation and its Air Services Committee are in full support of this application. The Fo undation has pledged $50,000 in private donations from its members, to be used as matching funds in support of the application to improve airservice to the communities of Bismarck and Mandan. The Air Services Committee works yearround on special projects to help raise awareness of the Airport and the importance of improving air service to the communities.


### Bismarck-Mandan Development Association

The Bismarck-Mandan Development Association has relationships with local service providers. Partnering with BMDA, many of these utility service providers will negotiate favorable terms, grants, and conditions for new or expanding comp anies. BMDA shares an interest in expanding the economic base of the community through local business growth, attraction of new businesses, and the promotion of tourism and visitor traffic via the Bismarck Airport.


### City of Bismarck

The City of Bismarck is one of the biggest supporters of bringing additional air service to the local Bismarck Airport, realizing how vital the Airport is to the growth of the entire region that it serves. City leaders continually work with the Airport to develop and support new service initiatives. The Airport is a department of the City of Bismar ck. The City of Bismarck controls the primary oversight of the Airport, but the City of Mandan will also contribute to expand air service.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 31 City of Mandan

The City of Mandan has implemented several progra ms to assist in the redevelopment efforts of the Central Business District (CBD). A growing comm unity, much of the city’s success derives from a network of contributors. Although the City of Bi smarck controls direct oversight of the Bismarck Airport, the City of Mandan will make a firm cont ribution to expand Airport service as well. The
fortunes of both cities are intertwined.



### Bismarck-Mandan Convention and Visitors Bureau

The Convention and Visitors Bureau focuses on making Bismarck-Mandan a sport and leisure hub in this part of the country. The Bureau is expanding meeting and event business in the government, medical, fraternal, agriculture, re ligious, education and military markets. The
Bureau is dedicated to the economic health of the area and the prosperity of its members. Moreover, the Bureau believes enhanced air service at the Bismarck Airport is essential to the interconnectivity of businesses, and is an essent ial part of any community’s plan for economic growth.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 32 TIMELINE

The first three milestones on the Bismarck Airport’s timeline include executing the grant agreement with the Department of Transportation, meeting with prospective airlines to negotiate for service, and signing the minimum revenue guarantee agreement with the appropriate airline partner (see Figure 29).
Once service is
announced and schedules are published, the Airport would begin marketing the new route and working with the new
carrier to monitor advance bookings. The Airport will continue its marketing program and
continue to work with the new carrier to moni tor the route once service begins. The Airport would submit grant status reports on a quarte rly basis to the Department throughout the proposed two-year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is awarded. It is also possible that new service could slip to 2013 should an airline require additi onal risk mitigation, beyond that included in this proposal, from the community. 

### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010 Executive Grant Agreement with DOT January 2011 Executive Agreement with Marketing Firm January 2011 Develop Creative February 2011 Develop Comprehensive Placement Strategy February 2011 Launch Campaign March 2011 Sustain Campaign March 2011 - May 2012 Monitor Route Performance March 2011 - May 2012 Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q2 2012 Close Grant May 2012



### FIGURE 29: Timeline for implementation of SCASD grant at the Bismarck AirportBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 33 AIR SERVICE ADVISORY GROUPS

The Bismarck Airport is a department of the City of Bismarck. The Airport Manager answers to the Assistant City Administrator of Bi smarck. The Board of City Commiss ioners, consisting of the Mayor and four Commissioners, must approve through a vote all major actions taken by the Airport Manager. The Board is overseeing the development of this grant application and will oversee
and administer funds awarded.

The Board of City Commissioners holds regular meetings every second and fourth Tuesday of each month to discuss Airport-related issues. Additionally, the Bismarck-Mandan Chamber ofCommerce’s Air Services Committee works with the City to provide advice on specific Airportrelated items of interest to the Chamber and broa der business community. Although the City of Bismarck controls the primary oversight of the Airp ort, the City of Mandan works to contribute to expanded air service.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 34 PREVIOUS GRANT AWARD

In 2002, the first year of the Small Communit y Air Service Development Grant Program, the Bismarck Airport was awarded a Grant for $1,557,500 in funding, matched by a local share of $512,500. The purpose of the 2002 Grant was to assess the feasibility of inaugurating new regional air service, recruit a re gional airline to provide the regional air service, and market the regional air service.

The proposal was groundbreaking in that it envi sioned an on-call point-to-point airways system using single engine aircraft providing service in rural areas where drive distances are great. The concept was tried and did not gain the traction necessary to continue as a going concern. Much was learned about the marketing, pricing, promotional and operational tactics needed to make such a concept work at some future time and place.

The 2002 Grant gets an “A” for creativity and for acquired learning for the Department and North Dakota on strategies and tactics to consid er in addressing rural air service needs. The Grant’s scope and purpose have almost noth ing in common with the current 2010 Grant application.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 35 AIR SERVICE DEVELOPMENT EFFORTS

2006 : November, Airport staff and Airport Corporation of America meet with Allegiant Air to discuss potential new service and status of exis ting Las Vegas, NV route; Air Service Committee
of Bismarck-Mandan Chamber of Commerce meet monthly to discuss air service discrepancies as well as any news which might affect air service in or out of Bismarck; Airport advertises in various print media, including business maga zines, local newspapers, and billboards across western and central North Dakota; marketing and advertising Budget: $25,000; professional services budget: $75,000.

2007 : January, SH& E is hired to assist with attrac ting Bismarck–Chicago O’Hare flight on United Airlines; January, Airport responds to Frontier Airlines RFP; January through March, numerous written and verbal conversations to United Airlines North American Planning Department occur regarding information needed for a potential Bismarck–Chicago O’Hare flight as well as likelihood of it coming to fruition; May, SH & E is hired to profile Bismarck passenger market, assess potential new markets, and develop marketing strategy for identified routes; May, attend meeting with United Airlines to discuss potentia l Chicago O’Hare service and present analysis of specific route; June, unveil new Airport website designed to provide information on area to potential airlines and traveling public; Au gust, Bismarck-Mandan Chamber of Commerce together with Bismarck-Mandan Development Association prepare Business Community Air Travel Survey looking at how Northwest Airlines’ reduction in seat capacity affects the community as well as the local community’s trav el patterns; dialogue with Allegiant Air on possible Phoenix/Mesa service continues througho ut the year via emails and phone calls; Air
Service Committee of Bismarck-Mandan Chamber of Commerce meets monthly to discuss air service discrepancies as well as any news which might affect service in or out of Bismarck; Airport advertises in various print media, including business magazines, local newspapers, and billboards across western and central North Dakota; marketing and advertising Budget: $25,000; professional services budget: $75,000.

2008 : February, phone correspondence is carried out with United Airlines North American Planning Director over the status of Bismarck–C hicago O’Hare route; February, attend annual Allegiant Air conference to network and discuss viability of new service routes from Bismarck, meet one-on-one with Allegiant Air representa tives; October, new service to Phoenix/Mesa begins on Allegiant Air; December, Delta Air Lines hosts a meeting for North DakotaBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 36 Congressional Delegation, Business Community, and Airport Managers to discuss the future of air service after the Northwest/Delta merger, Bismarck–Salt Lake City route is announced; Air
Service Committee of Bismarck Ma ndan Chamber begins tracking airfares from surrounding airports to judge any inequalities that might be occurring, discuss air service discrepancies as well as any news which may affe ct service in or out of comm unity; Airport partners with
Bismarck-Mandan Convention and Visitors Bu reau on cooperative advertisements in Regina/Saskatchewan, Canada; Airport is advertised in various print media, including business magazines, local newspapers, and billboards across western and central North Dakota; marketing and advertising Budget: $25,000; professional services budget: $90,000.

2009 : February, attend annual Allegiant Air conference to network and discuss viability of new service routes from Bismarck, meet one-on-one wi th Allegiant Air represen tatives; March, written correspondence occurs with United regarding frequency of a potential Bismarck–Chicago O’Hare flight; June, new service to Chicago O’Hare begins on United Airl ines; June, new service to Salt Lake City begins on Delt a Air Lines; June, Sixel Consulting Group is hired to prepare market analysis for presentation to Frontier Airlines about possible Denver–Bismarck service; June, travel for meeting with Frontier Airlines in Denver to discuss market opportunities; September, new advertising campaign focusing on Airport brand is unveiled; September, meet with North Dakota Congressional Delegate’s aide to discuss air service issues affecting Bismarck, including available seats and fall schedules for both Delta and United Airlines, goal is to keep existing service throughout the year; October, attend Sabre Roundtable Conference in Denver to establish link with Frontier Airlines over possible service to Denver; late October through early November, enlist Sixel Consulting to survey travelers, mainly business community, to establish the demand for cities not currently se rved by airlines in Bismarck; November, host business community luncheon in which Sixel Consulting presents survey results and narrows focus to determine which airlines to actively recruit; November, Sixel Consulting presents survey results to Bismarck-Mandan Chamber of Commerce to gain support for recruiting additional airline service; November, enter into yearlong TV contract with North Dakota NBC affiliate to air Bismarck Airport commercials in three markets across the state; December, begin production on first TV commercial advertising the Airport, completed for a January 2010 airing; December, enter into yearlong ag reement to air TV commercials quar terly on CBS station in Bismarck; Air
Service Committee of Bismarck Ma ndan Chamber continues tracking airfares from surrounding airports to judge any inequalities that might be occurring, discuss air service discrepancies as well as any news which may affect service in or out of community; Airport partners with
Bismarck-Mandan Convention and Visitors Bure au on cooperative print advertisements in Regina/Saskatchewan, Canada; Airport advertises in various print media, including businessBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 37 magazines, local newspapers, and billboards across western and central North Dakota; marketing and advertising Budget: $25,000; professional services budget: $100,000.

2010 : February 16-18, attend annual Allegiant Air Conference to network and discuss potential new service to Orlando, FL, Los Angeles, CA, an d Oakland, CA, meet one on one with Allegiant Air representatives; Febr uary 17, receive invitation to excl usive Allegiant Air luncheon for topperforming airports in Allegian t’s network, discuss potential growth opportunities; March, exchange numerous emails with Robert Ashcroft of Allegiant Air over route profiles from Bismarck; March, exchange numerous emails wi th Delta to develop advertisements promoting ridership on new Salt Lake City flight to save the route; April, radio ads are developed based on first TV advertisement, scheduled to run in June, July, and August; May, survey oil companies via North Dakota Petroleum Council’s contacts rega rding top destinations traveled to and from
Bismarck in an effort to showcase viability of service routes to American Airlines; June, exchange emails and phone calls with Brian Davis at Allegi ant Air over route profiles and possible Orlando, FL connection from Bismarck; Ju ne, production begins on seco nd TV commercial advertising Airport, completed for a July airing; June 6-9, attend 2010 Jumpstart Conference in San Diego, CA to meet with representatives from Delta Air Lines, United Airlines, Southwest Airlines, Frontier Airlines, Republic Airlines, and American Airlin es over possible expansion of service or new service routes; July, conclude promotional co ntest to advertise the Chicago O’Hare nonstop flight on United Airlines, winner provided two fr ee roundtrip tickets to Chicago O’Hare on United Airlines, two-night hotel stay, and major leag ue baseball game; August, second contest featuring Salt Lake City as a nonstop destination on Delta Air Lines is be ing assembled, winner to receive two free nonstop tickets on Delta Air Lines, two-night hotel stay at a nationally recognized ski resort, and ski lift tickets; August 2010, complete SCASDG Application; Air Service
Committee of Bismarck Mandan Chamber continues tracking airfares from surrounding airports to judge any inequalities that might be occurring, discuss air service discrepancies as well as any news which may affect air service in or out ofcommunity; Airport partners with BismarckMandan Convention and Visitors Bureau on cooperative print advertisements in Regina/Saskatchewan, Canada; Airport advertises in various print media, including business magazines, local newspapers, and billboards across western and central North Dakota; marketing and advertising Budget: $150,000; professional services budget: $40,000.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 38 IN-KIND SERVICES FROM COMMUNITY

The organizations listed below will help promote the new service through their various membership groups. The value of these services cannot be measured.

 City of Bismarck

 City of Mandan

 Bismarck-Mandan Chamber of Commerce

 Bismarck-Mandan Development Association

 Bismarck-Mandan Convention and Visitors BureauBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 39 PERFORMANCE MEASURES

The success of the program will be based on three variables. The first measure of success will be
the recruitment and retention of a new commercial air service to the Bismarck market. When new service is initiated, the first measure of succ ess will be met. The Airport will judge the second measure of success by the increased number of enplanements. Finally, the third measure of success will be based on how much average airfares charged in the community have gone down. The measurement of enplanements will include a monthly comparison, once the program begins, to past enplanement figures. The measurement of airfares will be derived from US DOT OD1A reports.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 40 FINANCIAL CONTROLS

As the sponsor, the Bismarck Airport and its governing body, the Bismarck Board of City Commissioners, will be the responsible part ies for all fiscal matters and DOT reporting requirements. The Board, consisting of the City’s Mayor and four commissioners, is established as a public governing body. As a public entity, the DOT can be assured that proper financial controls are in place to guarantee the DOT’s Grant will be used in accordance with any subsequent agreement. The Bismarck Airport un derstands the Grant is a reimbursable grant, meaning the Airport is responsible for program expe nditures and will submit invoices to the DOT for reimbursement, based on a percen tage of the total grant request.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 41 RETURN ON INVESTMENT

The Airport has developed a cost-effective and achievable strategy to add new service, increase enplanements, and lower airfares in Bismarck. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The proposal will lead to increased ai rline competition, access to lower airfares, and enhanced air service diversity. These projected outcomes are in line with the major goals of the Small Community Air Service Development Program.

The Bismarck Airport and its leadership are pruden t in all things financial. Grant funding will be carefully expended and only in ways consistent with this application and the Grant contract
that would result from award.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 42 ALTERNATIVE PLANS

The airline industry is unpredictable. Sudden shif ts in fuel prices or consumer travel demand make this industry one of feast or famine. With these dynamics in mind, the Bismarck Airport has outlined three distinct route/carrier options for improving east- and southbound air service. All three will, to some extent, address high average fares and market share concentration issues as well. The Airport has no crystal ball. We believe that outlining three rout e/carrier options shows that our plan is flexible and not dependent on th e 2011 strategy, tactics, or financial well-being of any single carrier.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 43 AIRPORT INFORMATION

The Bismarck Airport plays a vital role in connecting western and central North Dakota with the national air transportation network. The Airport today occupies a total of 2,400 acres. The airport was nationally recognized for its snow and ice control program for the 2008-2009 winter season, receiving honorable mention in the Balchen/Post award from the American Association of Airport Executives. The Airport also received the prestigious “2009 Airport Safety Award” from the Federal Aviation Administration Great Lakes Region Airports division.
The airport has two runways (see Figu re 30). Runway 13/31 is asphalt and is 8,794 feet in length. Runway 3/21 is also asphalt and is 6,600 feet in length.

In the spring of 2005 the City of Bismarck completed construction and inaugurated the new 70,000-square-foot
terminal which is used today. The new terminal building is 57 feet tall with sky-painted vaulted ceilings, a geothermal heating and cooling system, and a state-of-the-art in-line baggage handling system. Other amenities include a coffee kiosk, restaurant, and business kiosks with wireless internet. The Airport also offers convenient parking in both long- and short-term lots, less congestion than other airports, fast security screening, and many other amenities for business and leisure flyers. 

### FIGURE 30: Runways at BismarckBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 44 COMMUNITY PROFILE

City of Bismarck

Ranked number 74 on Money magazine’s list of top 100 best places to live, the 59,456 residents of Bismarck enjoy an excellent quality of life. The median family income here is $66,378. However, because of the low cost of living, this figure equates to a much higher purchasing power of $68,374. At $157,000, the median home price in Bismarck is more than one-third less expensive than the average of the other top 100 best places to live ($239,391).

Although located in a rather remote location where the weather can be harsh, Bismarck is a safe, thriving city with much to offer. Off hours, residents can see history come to life at Fort Abraham Lincoln, go fishing, hunting, and golfing, or spend the day shopping and then grab a bite to eat at one of
Bismarck’s numero us restaurants.

Inhabitants of Bismarck enjoy a numerous variety of activities. Possibilities rang e from farmer’s markets to an extensive parks and recreation system. For the arts aficionado, there beautifully restored Belle
Mehus Auditorium. The Belle Me hus Auditorium is home to the Bismarck-Mandan Symphony Orchestra, which has provided the area with the sights and
sounds of theater and music for 35 years, and the Sleepy Hollow
Summer Theatre.

Each Fourth of July, the Bismarck-Mandan area is treated to the Mandan Rodeo Days. The eagerly awaited annual event includes a parade, music, and other entertainment.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 45 Bismarck Economic Overview

The capital of North Dakota boas ts strong employment rates thanks to bountiful job opportunities (see Figure 31). The Bismarck-Mandan metro ar ea is home to two competing health care providers, MedCenter One Health Systems and St. Alexius Medical Center. Combined, those health care providers have more employees th an the State of North Dakota in Bismarck. Educational institutions and businesses associated with the oil and gas industry are among the other significant area employers.

While much of the country is experiencing a re cession with all-time unemployment highs (the national unemployment average was 9.5 percent in June 2010), Bismarck enjoys an astonishingly low unemployment rate of less than four percent. Unlike many other areas of the

country, where home values have dipped significantly, homes in Bismarck actually appreciated by a rate of about 2 percent over the past year. Bismarck residents spend an average of $7,560 a year on vacations.



### FIGURE 31: Top 20 employers in Bismarck, 2009 (source: Bismarck

‐ Mandan Development Association)

Rank Employer Employees

1 State of North Dakota 4,321
2 MedCenter One Health Systems 3,047
3 St. Alexius Medical Center 2,010
4 Bismarck Public School District 1,640
5 North Dakota Federal Offices 1,198
6 City of Bismarck 850

7 MDU Resources Group 693
8 Aetna 653
9 University of Mary 572
10 Dan’s Supermarkets 569
11 Mandan Public School District 535
12 Missouri Slope Lutheran Care Center 493
13 Basin Electric Power Cooperative 481
14 Pride, Inc. 471
15 Burlington Northern Railroad 420
16 Housing Industry Training (HIT) 420
17 Coventry Health Care, Inc. 415
18 Laducer and Associates, Inc. 258
19 Cloverdale Foods 250
20 Tesoro Petroleum 239 

## “Bismarck enjoys an astonishingly low unemployment
rate of less than four percent, less
than half the national figure”Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 46 The Oil and Gas Industry

North Dakota is a leading energy producer. The state produces enough oil to fuel over 700,000 cars and heat over 300,000 homes a day. North Dakota produces enough natural gas to meet the natural gas needs of almost 1 million homes a day. The 2007-2009 biennium was historical in many ways. The Bakken formation and the Three Forks formation directly underlying the Bakken gained attention as the biggest oil resource play in the continental United States. As a result, North Dakota moved up in ranking to become the fourth largest oil producing state. North Dakota’s 4,810 oil wells produced
79.7 million barrels of crude oil in 2009. New pipelines and railroad shi pping facilities for unit
trains of oil are now under construction near Stanley and New Town, and should be comple ted in 2010 (North Dakota State Land Department, 2007-2009 Biennial Report ).
North Dakota also produced 87,188 MMCF of natural gas in 2008 (EIA, Natural Gas Annual 2009). Future potential oil and natural gas resources are substantial. North Dakota’s 417 billion cubic feet (bcf) of proven natural gas reserves is enough to meet the needs of 417,000 homes for 15 years, and its proven oil reserves are enough to fuel 790,000 cars for 15 years and at the same time heat 322,000 homes for 15 years.

Expansion of the oil, ethanol, and biodiesel indu stries is good news for North Dakota as it represents new jobs, provides additional tax revenue, and supports a growing economy. For several years there were only two ethanol plants in North Dakota. Recently, two additional ethanol plants started production, and there are plans to add more ethanol and biodiesel plants in the near future. It is estimated that a 100-million-gallon ethanol plant could generate as many as 71,000 truckloads per year.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 47 Oil and natural gas, as well as alternative fuels such as ethanol and biodiesel, are driving North Dakota’s booming economy. The state’s natural gas and oil industry accounts for at least 3,500 jobs (direct and indirect wage earners). Job Service North Dakota estimates the average annual wage in the oil and gas extraction industry at $79,171 in 2007. Nearby Williston Basin is a hub for oil and gas mining support and logistics services (see Figure 32). The area also has a number of companies that support the oil industry through various services, further stimulating the economy (see Figure 33).

In August 2010, Jim Hirsch, director of Workforce Development for the Department of Commerce, said he expects employers to express a much stronger appetite for workers than when they were asked the same question four years ago. “There’s a good chance [the need for new oil workers] could triple,” according to Hirsch, which means about 3,600 new, properly skilled workers will have to find their way to western North Dakota’s oil patch every year for the next five years.

Because the Bismarck Airport is the major airport serving western North Dakota, the expansion of the natural gas industry is also big news. Tulsa-ba sed Oneok Partners LP said it will build a $350- 415 million plant near Watford City in western North Dakota by the end of next year that will process about 100 million cubic feet of natural gas daily, doubling the company’s capacity. 

### FIGURE 32: Williston Basin mining companies

FIGURE 33: Oil and gas support companies active in Bismarck and surrounding communities Companies Active in Williston Basin Mining MDU Resources (Williston Basin Interstate Pipeline CO)
Kodiak Oil & Gas Zargon Energy Trust Voyager Oil and Gas Abraxas Petroleum Corp
Credo Petroleum US Energy Corp. Brigham Exploration Corp
Samson Oil and Gas RPT Uranium Corp Teton Energy Corp

Oil and Gas Drilling S upport Firms Headquarters BJ Services Houston, TX Stallion Oil Field Services Houston, TX Marathon Oil Houston, TX Citation Oil and Gas Houston, TX Upton Resources Incorporated Dickinson, ND General Steel and Supply Dickinson, NDBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 48 Select Economic Profiles

State of North Dakota

The North Dakota State Capitol is the seat of government of North Dakota and is Bismarck’s largest employer. The Capitol, a 19-storey tower, is located in Bismarck at 600 East Boulevard Avenue, on a 160-acre campus that is home to many other government buildings. The capitol building and surrounding office buildings house the state's legislative and judicial bran ches, as well as many government agencies. It is the tallest building in North Dakota. Six buildings currently exist on the grounds; all were built in variou s time periods as the government grew. Not all state agencies are housed on the grounds, however; a large percentage of them are spread throughout Bismarck in various facilities. A total of 4,321 people in Bismarck are employed by the State of North Dakota (as well as an additional 1,200 in the city’s federal offices), and convenient, affordable air service for their extensive business needs is a necessity.

Cloverdale Meats

Headquartered in nearby Mandan , Cloverdale Foods Company has been delivering fine food products for more 90 years. As Clov erdale Foods has evolved over the decades, it has remained a multi- generation, family-owned business. Cloverdale products are found in a numb er of grocery and foodservice outlets
across the Midwest and in the Pacific Northwest.

Laducer and Associates, Inc.

Laducer and Associates, Inc. is de dicated to providing the best in computerized information mana gement services. The company specializes in large-scale information processing, specifically data entry and data capture, and takes great pride in its unbeatable rates of accuracy and overall customer satisfaction. Corporate headquarters are in Mandan. The 21,890-square-foot facility houses three separate production environments, as well as management, administrative support, information services, transportation, and maintenance departments. Laducer’s offsite prod uction facility, located in Belcourt (on the Turtle Mountain Indian Reservation in north central North Dakota) offers an additional 20,600 square feet of facility space.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 49 Bismarck Tourism

Bismarck’s combination of rich history and progre ssive recreation, shopping, and artistic offerings provides a plethora of activities for travelers.

Lewis and Clark Expedition Sites

The Lewis and Clark Interpretive Center offers visi tors the opportunity to discover the legacy of the two frontiersmen, Captains Meriwether Lewis and William Clark. Also operated by the Fort Mandan Foundation is the Fort Mandan site where the Corps of Discovery spent the winter of 1804-1805 and is lo cated two miles from the Interpretive
Center. Other Lewis and Clark sites in clude Keelboat Park, a 55-foot, fullscale keelboat just like the one Lewis and Clark used to travel the great Missouri River and Fort Yates, where Le wis and Clark stopped to trade with the Mandan. Today, this is home to the Standing Rock Sioux Tribe.

North Dakota Heritage Center

The North Dakota Heritage Center is the largest museum in the state, and following the recent groundbreaking of its $50-60,000,000 expansion, it soon will be even larger. The Center features temporary and permanent exhibits that explore life on the northern plains from prehistory to the present. In the main gallery, the “Corridor
of Time” exhibit covers more than 10 0 million years of history in North
Dakota and features fossils of dinosaur s. Exhibits on the fur trade era tell of economic competition and milita ry conflict over a vast prairie empire. More stories document the struggles and successes of the homesteaders and pioneers, the economic boom of the early twentieth century, and the disillusioning bust of the 1930s. Visitors can expe rience history through hund reds of objects, view images of the past through photographs and actual films made from 1916 to 1921, and participate in interactive exhibits su ch as cranking a Model-T Ford or even smelling a buffalo wallow.

Dakota Zoo

The Dakota Zoo features more than 600 an imals and 125 different animal species. The Dakota Zoo can be found on the banks of the Missouri River. The state’s largest zoo is surrounded by Sertoma Park, which is a terr ific place to enjoy some recreational activities.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 50 Historic Sites

State Capitol tours are among the many fun things to do in Bismarck if you are interested in learning about city an d state history. For those interested in learning more about regional Native American history, the Double Ditch Indian Village State Historic Site ca n be found just seven miles north of Bismarck. The ruins of a Mandan Indian village draw crowds of visitors. Historic sites figure prominently among the Bismarck attractions, and others
include the Former Governor's Mansion State Historic Site and the Steamboat Warehouse State Historic Site. About 50 miles south of the city, the Si tting Bull Burial State Hi storic Site offers those who are enjoying Bismarck travel a terrific side tr ip option. Sitting Bull, a Hunkpapa Sioux Indian leader, fought to hold on to his people’s land af ter white settlers arrived in the area. He lost his life in the pursuit in 1890.

Outdoor Activities

Hunting and fishing are among the other outdoor ac tivities you can enjoy on a visit to Bismarck. The Missouri River, angling through the communi ties of Bismarck and Mandan, is amazingly beautiful, embracing the imaginatio ns and passions of anglers from far and wide. While the Missouri is home to some exceptional opportunities for channel catfish, smallmouth bass, and cutthroat trout, the entire length of the river is legendary for walleye. In fact, you cannot mention the Missouri River without admitting that the walleye steal the show. Bismarck-Mandan has hosted such prestigious tournament circuits as the PWT Championship and the FLW Walleye Tour, along with several smaller regional
tournaments.

If visiting in the winter, you can add skiing and snowboarding to the mix. The Huff Hills Ski Area is one of the top Bismarck attractions in winter months, and while it might not rival the ski resorts in Colorado and other high mountain states, it does well to satisfy those who enjoy time on the slopes. Golfing can also be on the agenda for visitors.

Bismarck-Mandan has so many golf courses, it's impossible to swing through without landing on one. Nationwide, Bismarck-Mandan golf courses are ranked twenty-fourth overall and fifty-sixth
for best modern courses.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 51 Higher Education in Bismarck

There are three colleges and one university in Bismarck. The University of Mary, a four-year university operated by the Sisters of Saint Benedict, is the largest degree-granting institution in the city. Bismarck State College is a two-year public college and a member of the North Dakota University System. United Tribes Technical College is a two-year tribal college. And Rasmussen College, a two- to four-year private college, has a campus in Bismarck.

University of Mary

The University of Mary is the only private Catholic university in North Dakota. It has been accredited by the Learning Commission of the North Central Association of Colleges and Schools since 1969. Since its incorporation in 1959, the university’s enrollment has grown from 69 to close to 2,900.

Today, the University of Mary School of Accele rated and Distance Education has a total of 18 sites in the Upper Midwest and beyond, including the Butler Center in downtown Bismarck, the Fargo Center in Fargo,, and the B illings Center in Billings, MT.

Taking leadership to a new level, in 2006 th e University of Mary became a member of the National Collegiate Athletic Association (NCAA) Division II and the Northern Sun Intercollegiate Athletic Conference, setting a new standard of quality in programs campus-wide.

In 2006, U-Mary also launched the Gary Tharaldson School of Business. Named for North Dakota hospitality entrepreneur and industry innovator Gary Thar aldson, the new school –the university’s first – is a new model for preparing students for business careers that is uniquely designed to bridge the gap between the academic and business worlds. The new 29,000- square-foot flagship facility that houses the Tharaldson School opened its doors on September 11, 2008.

Today, with a faculty and staff of more than 500, the University of Mary remains committed to continuing the mission of its founders and serving th e people of the region in a spirit that fosters servant-leadership.Bismarck Airport – Small Community Air Service Development Grant – August 2010 

## 52 COMPARISON TO OTHER COMMUNITIES IN REGION

FIGURE 34: Top 50 Central Region airports ranked by average domestic fare, year ended first quarter 2010 (source: US DOT Table DB1A)

Itinerary Average Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Mileage Yield 08-10 09-10
1 Shreveport, LA $223.46 $263.39 $253.47 1,069 23.70¢ 6.5% -3.8% 2 Alexandria, LA $217.05 $247.68 $241.43 1,092 22.11¢ 5.5% -2.5% 3 Bismarck, ND $235.77 $247.73 $224.34 1,173 19.13¢ -2.5% -9.4% 4 NW Arkansas $228.88 $252.43 $218.63 1,047 20.88¢ -2.3% -13.4% 5 Killeen/Fort Hood, TX $210.54 $243.59 $217.88 1,153 18.89¢ 1.7% -10.6% 6 Grand Forks, ND $274.99 $262.06 $213.79 1,264 16.91¢ -11.8% -18.4% 7 Sioux Falls, SD $211.27 $233.46 $207.05 1,153 17.96¢ -1.0% -11.3% 8 Duluth, MN $204.85 $254.79 $205.68 1,206 17.06¢ 0.2% -19.3% 9 Lincoln, NE $197.81 $201.92 $200.94 1,049 19.15¢ 0.8% -0.5% 10 Lafayette, LA $196.73 $219.11 $198.74 1,066 18.65¢ 0.5% -9.3% 11 Baton Rouge, LA $188.19 $201.78 $187.87 1,019 18.44¢ -0.1% -6.9% 12 Cedar Rapids, IA $196.66 $210.15 $185.31 1,132 16.37¢ -2.9% -11.8% 13 Fargo, ND $246.15 $227.41 $183.38 1,225 14.97¢ -13.7% -19.4% 14 Des Moines, IA $191.80 $207.26 $183.17 1,153 15.88¢ -2.3% -11.6% 15 Rapid City, SD $225.46 $215.39 $183.11 1,144 16.00¢ -9.9% -15.0% 16 Rochester, MN $188.52 $218.65 $180.50 1,007 17.92¢ -2.2% -17.4% 17 Dallas/Ft Worth, TX $177.69 $195.85 $180.48 1,062 17.00¢ 0.8% -7.8% 18 Houston IAH, TX $178.07 $193.05 $180.09 1,087 16.57¢ 0.6% -6.7% 19 Springfield, MO $214.72 $227.42 $178.65 1,079 16.56¢ -8.8% -21.4% 20 McAllen, TX $190.34 $200.56 $176.46 1,162 15.19¢ -3.7% -12.0% 21 Oklahoma City, OK $166.82 $175.17 $173.01 1,021 16.94¢ 1.8% -1.2% 22 Corpus Christi, TX $162.71 $177.54 $171.59 860 19.95¢ 2.7% -3.4% 23 Green Bay, WI $189.95 $204.82 $169.59 1,081 15.69¢ -5.5% -17.2% 24 Laredo, TX $182.97 $196.46 $167.28 1,117 14.98¢ -4.4% -14.9% 25 Appleton, WI $203.78 $205.86 $166.40 1,115 14.92¢ -9.6% -19.2% 26 Wausau, WI $208.48 $213.47 $166.24 1,157 14.37¢ -10.7% -22.1% 27 Minneapolis, MN $179.68 $207.85 $164.28 1,093 15.03¢ -4.4% -21.0% 28 Little Rock, AR $160.63 $169.82 $163.86 961 17.05¢ 1.0% -3.5% 29 Madison, WI $194.39 $197.17 $161.87 1,098 14.74¢ -8.7% -17.9% 30 El Paso, TX $161.11 $168.92 $161.31 1,025 15.73¢ 0.1% -4.5% 31 Tulsa, OK $159.41 $167.65 $160.37 973 16.49¢ 0.3% -4.3% 32 Chicago O'Hare, IL $161.84 $174.18 $159.58 1,016 15.70¢ -0.7% -8.4% 33 Wichita, KS $179.05 $180.26 $159.33 1,107 14.39¢ -5.7% -11.6% 34 Peoria, IL $168.34 $174.87 $158.03 1,172 13.48¢ -3.1% -9.6% 35 Austin, TX $166.78 $161.91 $154.95 1,110 13.96¢ -3.6% -4.3% 36 San Antonio, TX $167.14 $161.36 $154.15 1,113 13.85¢ -4.0% -4.5% 37 Moline, IL $155.83 $165.95 $154.01 1,082 14.24¢ -0.6% -7.2% 38 New Orleans, LA $155.59 $153.30 $151.87 1,000 15.19¢ -1.2% -0.9% 39 Midland/Odessa, TX $136.65 $154.96 $150.59 753 20.00¢ 5.0% -2.8% 40 Omaha, NE $157.55 $161.26 $149.87 1,031 14.53¢ -2.5% -7.1% 41 Amarillo, TX $139.89 $147.93 $148.73 779 19.09¢ 3.1% 0.5% 42 St. Louis, MO $148.36 $154.97 $143.92 924 15.58¢ -1.5% -7.1% 43 Houston Hobby, TX $125.72 $141.08 $139.19 820 16.97¢ 5.2% -1.3% 44 Lubbock, TX $130.43 $143.07 $138.39 747 18.52¢ 3.0% -3.3% 45 Harlingen, TX $130.32 $142.66 $137.93 734 18.78¢ 2.9% -3.3% 46 Bloomington/Normal, IL $142.37 $146.78 $137.65 1,017 13.53¢ -1.7% -6.2% 47 Kansas City, MO $141.38 $149.81 $136.91 969 14.13¢ -1.6% -8.6% 48 Chicago Midw ay, IL $111.88 $131.59 $122.87 922 13.33¢ 4.8% -6.6% 49 Milw aukee, WI $159.10 $154.79 $121.43 1,032 11.77¢ -12.6% -21.6% 50 Dallas Love Field, TX $100.57 $117.64 $120.23 552 21.79¢ 9.3% 2.2%
Average Regional Fare $161.51 $173.29 $158.28 1,010 15.67¢ -1.0% -8.7% Avg. Ann. Change RankBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 53 FIGURE 35: Top 50 Central Region airports ranked by average domestic yield, year ended first quarter 2010 (source: US DOT Table DB1A)

Itinerary Average Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Mileage Fare 08-10 09-10
1 Shreveport, LA 21.49¢ 24.36¢ 23.70¢ 1,069 $253.47 5.0% -2.7% 2 Alexandria, LA 20.74¢ 23.12¢ 22.11¢ 1,092 $241.43 3.2% -4.4% 3 Dallas Love Field, TX 20.27¢ 22.70¢ 21.79¢ 552 $120.23 3.7% -4.0% 4 NW Arkansas 22.50¢ 24.04¢ 20.88¢ 1,047 $218.63 -3.7% -13.1% 5 Midland/Odessa, TX 19.86¢ 21.47¢ 20.00¢ 753 $150.59 0.4% -6.8% 6 Corpus Christi, TX 19.33¢ 21.19¢ 19.95¢ 860 $171.59 1.6% -5.9% 7 Lincoln, NE 20.10¢ 20.14¢ 19.15¢ 1,049 $200.94 -2.4% -4.9% 8 Bismarck, ND 20.25¢ 20.97¢ 19.13¢ 1,173 $224.34 -2.8% -8.8% 9 Amarillo, TX 18.96¢ 19.72¢ 19.09¢ 779 $148.73 0.3% -3.2% 10 Killeen/Fort Hood, TX 19.01¢ 20.97¢ 18.89¢ 1,153 $217.88 -0.3% -9.9% 11 Harlingen, TX 18.12¢ 19.25¢ 18.78¢ 734 $137.93 1.8% -2.4% 12 Lafayette, LA 20.27¢ 21.24¢ 18.65¢ 1,066 $198.74 -4.1% -12.2% 13 Lubbock, TX 19.43¢ 20.67¢ 18.52¢ 747 $138.39 -2.4% -10.4% 14 Baton Rouge, LA 18.46¢ 19.95¢ 18.44¢ 1,019 $187.87 -0.1% -7.6% 15 Sioux Falls, SD 18.31¢ 20.23¢ 17.96¢ 1,153 $207.05 -1.0% -11.2% 16 Rochester, MN 18.39¢ 21.06¢ 17.92¢ 1,007 $180.50 -1.3% -14.9% 17 Duluth, MN 17.50¢ 21.28¢ 17.06¢ 1,206 $205.68 -1.3% -19.8% 18 Little Rock, AR 17.42¢ 18.02¢ 17.05¢ 961 $163.86 -1.1% -5.4% 19 Dallas/Ft Worth, TX 16.95¢ 18.49¢ 17.00¢ 1,062 $180.48 0.1% -8.1% 20 Houston Hobby, TX 16.50¢ 17.83¢ 16.97¢ 820 $139.19 1.4% -4.8% 21 Oklahoma City, OK 17.04¢ 17.49¢ 16.94¢ 1,021 $173.01 -0.3% -3.1% 22 Grand Forks, ND 21.88¢ 20.25¢ 16.91¢ 1,264 $213.79 -12.1% -16.5% 23 Houston IAH, TX 17.00¢ 18.06¢ 16.57¢ 1,087 $180.09 -1.3% -8.3% 24 Springfield, MO 20.17¢ 21.17¢ 16.56¢ 1,079 $178.65 -9.4% -21.8% 25 Tulsa, OK 17.38¢ 17.77¢ 16.49¢ 973 $160.37 -2.6% -7.2% 26 Cedar Rapids, IA 17.66¢ 18.59¢ 16.37¢ 1,132 $185.31 -3.7% -11.9% 27 Rapid City, SD 19.52¢ 18.55¢ 16.00¢ 1,144 $183.11 -9.5% -13.7% 28 Des Moines, IA 17.34¢ 18.06¢ 15.88¢ 1,153 $183.17 -4.3% -12.1% 29 El Paso, TX 16.17¢ 16.67¢ 15.73¢ 1,025 $161.31 -1.4% -5.6% 30 Chicago O'Hare, IL 16.06¢ 17.19¢ 15.70¢ 1,016 $159.58 -1.1% -8.7% 31 Green Bay, WI 16.87¢ 18.57¢ 15.69¢ 1,081 $169.59 -3.6% -15.5% 32 St. Louis, MO 16.62¢ 17.13¢ 15.58¢ 924 $143.92 -3.2% -9.0% 33 McAllen, TX 17.10¢ 18.16¢ 15.19¢ 1,162 $176.46 -5.8% -16.4% 34 New Orleans, LA 15.83¢ 15.60¢ 15.19¢ 1,000 $151.87 -2.0% -2.6% 35 Minneapolis, MN 16.66¢ 18.62¢ 15.03¢ 1,093 $164.28 -5.0% -19.3% 36 Laredo, TX 17.75¢ 18.14¢ 14.98¢ 1,117 $167.28 -8.1% -17.4% 37 Fargo, ND 20.74¢ 18.76¢ 14.97¢ 1,225 $183.38 -15.0% -20.2% 38 Appleton, WI 18.90¢ 18.47¢ 14.92¢ 1,115 $166.40 -11.2% -19.2% 39 Madison, WI 17.98¢ 17.95¢ 14.74¢ 1,098 $161.87 -9.5% -17.9% 40 Omaha, NE 15.31¢ 15.49¢ 14.53¢ 1,031 $149.87 -2.6% -6.2% 41 Wichita, KS 16.76¢ 16.37¢ 14.39¢ 1,107 $159.33 -7.3% -12.1% 42 Wausau, WI 18.49¢ 19.10¢ 14.37¢ 1,157 $166.24 -11.8% -24.8% 43 Moline, IL 14.59¢ 15.25¢ 14.24¢ 1,082 $154.01 -1.2% -6.6% 44 Kansas City, MO 14.96¢ 15.59¢ 14.13¢ 969 $136.91 -2.8% -9.4% 45 Austin, TX 15.61¢ 14.91¢ 13.96¢ 1,110 $154.95 -5.4% -6.4% 46 San Antonio, TX 15.75¢ 14.80¢ 13.85¢ 1,113 $154.15 -6.2% -6.4% 47 Bloomington/Normal, IL 14.12¢ 14.63¢ 13.53¢ 1,017 $137.65 -2.1% -7.5% 48 Peoria, IL 14.56¢ 15.13¢ 13.48¢ 1,172 $158.03 -3.8% -10.9% 49 Chicago Midw ay, IL 12.24¢ 14.22¢ 13.33¢ 922 $122.87 4.4% -6.3% 50 Milw aukee, WI 15.39¢ 14.73¢ 11.77¢ 1,032 $121.43 -12.5% -20.1%
Average Regional Yield 16.41¢ 17.33¢ 15.67¢ 1,010 $158.28 -2.3% -9.5% Avg. Ann. Change RankBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 54 FIGURE 36: Top 50 Central Region airports ranked by domestic flights completed, year ended first quarter 2010 (source: US DOT Table DB1A)

Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Flights / Day YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 389,530 368,296 353,598 968.8 17.2% -4.7% -4.0% 2 Dallas/Ft Worth, TX 295,589 284,607 283,484 776.7 13.8% -2.1% -0.4% 3 Houston IAH, TX 234,649 222,748 210,882 577.8 10.3% -5.2% -5.3% 4 Minneapolis, MN 190,872 189,193 184,606 505.8 9.0% -1.7% -2.4% 5 St. Louis, MO 109,316 105,691 91,535 250.8 4.5% -8.5% -13.4% 6 Chicago Midw ay, IL 103,594 90,893 90,507 248.0 4.4% -6.5% -0.4% 7 Milw aukee, WI 75,210 65,677 75,390 206.5 3.7% 0.1% 14.8% 8 Kansas City, MO 89,647 73,185 69,284 189.8 3.4% -12.1% -5.3% 9 Houston Hobby, TX 56,881 54,438 52,720 144.4 2.6% -3.7% -3.2% 10 Dallas Love Field, TX 54,840 51,915 46,933 128.6 2.3% -7.5% -9.6% 11 Austin, TX 55,843 50,402 46,171 126.5 2.2% -9.1% -8.4% 12 San Antonio, TX 49,671 47,230 42,948 117.7 2.1% -7.0% -9.1% 13 New Orleans, LA 44,756 44,084 41,746 114.4 2.0% -3.4% -5.3% 14 Omaha, NE 33,231 30,053 29,766 81.6 1.4% -5.4% -1.0% 15 Oklahoma City, OK 31,912 27,239 25,688 70.4 1.3% -10.3% -5.7% 16 Tulsa, OK 28,905 25,007 22,387 61.3 1.1% -12.0% -10.5% 17 El Paso, TX 23,171 22,428 22,349 61.2 1.1% -1.8% -0.4% 18 Little Rock, AR 21,878 19,670 20,751 56.9 1.0% -2.6% 5.5% 19 Des Moines, IA 21,419 20,611 19,410 53.2 0.9% -4.8% -5.8% 20 NW Arkansas 16,350 16,060 15,287 41.9 0.7% -3.3% -4.8% 21 Madison, WI 16,945 16,368 14,784 40.5 0.7% -6.6% -9.7% 22 Wichita, KS 16,183 15,433 14,619 40.1 0.7% -5.0% -5.3% 23 Cedar Rapids, IA 13,073 13,126 12,155 33.3 0.6% -3.6% -7.4% 24 Moline, IL 10,939 10,828 10,199 27.9 0.5% -3.4% -5.8% 25 Springfield, MO 11,470 10,962 9,688 26.5 0.5% -8.1% -11.6% 26 Baton Rouge, LA 11,440 10,416 9,554 26.2 0.5% -8.6% -8.3% 27 Lubbock, TX 9,461 9,283 9,157 25.1 0.4% -1.6% -1.4% 28 Shreveport, LA 10,048 9,648 8,545 23.4 0.4% -7.8% -11.4% 29 Green Bay, WI 9,958 8,754 8,039 22.0 0.4% -10.2% -8.2% 30 Corpus Christi, TX 8,338 8,147 8,027 22.0 0.4% -1.9% -1.5% 31 Midland/Odessa, TX 8,328 7,904 7,861 21.5 0.4% -2.8% -0.5% 32 Amarillo, TX 8,653 8,434 7,698 21.1 0.4% -5.7% -8.7% 33 Appleton, WI 8,844 7,673 6,799 18.6 0.3% -12.3% -11.4% 34 Fargo, ND 5,885 6,271 6,766 18.5 0.3% 7.2% 7.9% 35 Lafayette, LA 7,003 6,531 6,567 18.0 0.3% -3.2% 0.6% 36 Sioux Falls, SD 7,402 6,588 6,479 17.8 0.3% -6.4% -1.7% 37 Peoria, IL 6,910 6,794 6,235 17.1 0.3% -5.0% -8.2% 38 Killeen/Fort Hood, TX 6,387 6,514 6,092 16.7 0.3% -2.3% -6.5% 39 Rapid City, SD 5,565 5,628 5,767 15.8 0.3% 1.8% 2.5% 40 Harlingen, TX 5,780 5,752 5,411 14.8 0.3% -3.2% -5.9% 41 Wausau, WI 5,287 5,573 5,319 14.6 0.3% 0.3% -4.6% 42 McAllen, TX 5,265 4,516 4,852 13.3 0.2% -4.0% 7.4% 43 Bloomington/Normal, IL 5,874 5,330 4,826 13.2 0.2% -9.4% -9.5% 44 Alexandria, LA 5,261 4,986 4,823 13.2 0.2% -4.3% -3.3% 45 Rochester, MN 4,907 5,047 4,216 11.6 0.2% -7.3% -16.5% 46 Bismarck, ND 3,445 3,575 4,064 11.1 0.2% 8.6% 13.7% 47 Monroe, LA 4,910 4,323 4,018 11.0 0.2% -9.5% -7.1% 48 Lincoln, NE 4,223 4,260 3,842 10.5 0.2% -4.6% -9.8% 49 La Crosse, WI 3,358 3,595 3,591 9.8 0.2% 3.4% -0.1% 50 College Station, TX 4,099 3,608 3,364 9.2 0.2% -9.4% -6.8%

Total of Above 2,162,505 2,035,294 1,958,79 9 5,366.6 95.3% -4.8% -3.8%
Total Flights Completed 2,269,093 2,134,440 2,054,360 5,628.4 100.0% -4.8% -3.8% Rank Avg. Ann. ChangeBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 55 FIGURE 37: Top 50 Central Region airports ranked by domestic seats available, year ended first quarter 2010 (source: US DOT Table DB1A)

Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Seats / Day YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 38,535,761 36,179,004 34,070,667 93,344 17.3% -6.0% -5.8% 2 Dallas/Ft Worth, TX 32,811,512 31,720,304 31,538,587 86,407 16.0% -2.0% -0.6% 3 Houston IAH, TX 20,974,414 20,038,584 19,307,328 52,897 9.8% -4.1% -3.6% 4 Minneapolis, MN 20,446,392 19,265,339 18,905,677 51,796 9.6% -3.8% -1.9% 5 Chicago Midw ay, IL 13,458,441 11,813,673 11,766,193 32,236 6.0% -6.5% -0.4% 6 St. Louis, MO 10,254,209 9,774,077 8,641,082 23,674 4.4% -8.2% -11.6% 7 Kansas City, MO 8,633,094 7,405,604 7,075,431 19,385 3.6% -9.5% -4.5% 8 Houston Hobby, TX 7,249,874 6,942,002 6,725,399 18,426 3.4% -3.7% -3.1% 9 Dallas Love Field, TX 6,479,258 6,471,662 6,048,875 16,572 3.1% -3.4% -6.5% 10 Milw aukee, WI 5,228,194 5,125,901 6,027,418 16,513 3.1% 7.4% 17.6% 11 Austin, TX 6,166,251 5,932,724 5,523,623 15,133 2.8% -5.4% -6.9% 12 New Orleans, LA 5,254,098 5,392,205 5,148,557 14,106 2.6% -1.0% -4.5% 13 San Antonio, TX 5,627,536 5,625,047 5,103,526 13,982 2.6% -4.8% -9.3% 14 Omaha, NE 2,887,568 2,777,629 2,790,102 7,644 1.4% -1.7% 0.4% 15 El Paso, TX 2,752,439 2,633,413 2,509,198 6,875 1.3% -4.5% -4.7% 16 Oklahoma City, OK 2,744,378 2,495,353 2,316,533 6,347 1.2% -8.1% -7.2% 17 Tulsa, OK 2,509,495 2,255,105 2,067,061 5,663 1.0% -9.2% -8.3% 18 Little Rock, AR 1,740,022 1,584,445 1,590,834 4,358 0.8% -4.4% 0.4% 19 Des Moines, IA 1,280,631 1,285,590 1,216,875 3,334 0.6% -2.5% -5.3% 20 Wichita, KS 1,169,402 1,113,825 1,065,513 2,919 0.5% -4.5% -4.3% 21 Madison, WI 1,073,328 1,041,958 944,156 2,587 0.5% -6.2% -9.4% 22 NW Arkansas 939,566 916,785 908,270 2,488 0.5% -1.7% -0.9% 23 Lubbock, TX 887,068 862,791 808,975 2,216 0.4% -4.5% -6.2% 24 Amarillo, TX 755,346 797,161 705,707 1,933 0.4% -3.3% -11.5% 25 Midland/Odessa, TX 778,006 718,508 697,820 1,912 0.4% -5.3% -2.9% 26 Cedar Rapids, IA 737,136 731,897 690,046 1,891 0.4% -3.2% -5.7% 27 Moline, IL 654,223 645,278 640,916 1,756 0.3% -1.0% -0.7% 28 Harlingen, TX 643,410 630,534 592,919 1,624 0.3% -4.0% -6.0% 29 Corpus Christi, TX 579,209 563,672 557,082 1,526 0.3% -1.9% -1.2% 30 Springfield, MO 627,662 602,042 554,467 1,519 0.3% -6.0% -7.9% 31 Fargo, ND 417,672 468,051 511,908 1,402 0.3% 10.7% 9.4% 32 McAllen, TX 541,044 497,416 497,728 1,364 0.3% -4.1% 0.1% 33 Green Bay, WI 642,348 597,585 492,621 1,350 0.3% -12.4% -17.6% 34 Sioux Falls, SD 547,445 530,962 488,926 1,340 0.2% -5.5% -7.9% 35 Baton Rouge, LA 625,178 552,506 478,309 1,310 0.2% -12.5% -13.4% 36 Shreveport, LA 486,923 485,779 447,096 1,225 0.2% -4.2% -8.0% 37 Rapid City, SD 359,602 373,202 372,597 1,021 0.2% 1.8% -0.2% 38 Appleton, WI 394,102 387,301 364,162 998 0.2% -3.9% -6.0% 39 Peoria, IL 389,625 375,068 348,137 954 0.2% -5.5% -7.2% 40 Bloomington/Normal, IL 376,694 346,666 346,431 949 0.2% -4.1% -0.1% 41 Lafayette, LA 304,010 297,137 312,677 857 0.2% 1.4% 5.2% 42 Killeen/Fort Hood, TX 306,231 330,064 304,939 835 0.2% -0.2% -7.6% 43 Bismarck, ND 267,756 269,671 288,658 791 0.1% 3.8% 7.0% 44 Wausau, WI 212,561 247,398 237,180 650 0.1% 5.6% -4.1% 45 Alexandria, LA 224,378 218,862 228,724 627 0.1% 1.0% 4.5% 46 Rochester, MN 279,742 274,109 220,025 603 0.1% -11.3% -19.7% 47 Lincoln, NE 231,135 223,723 201,285 551 0.1% -6.7% -10.0% 48 Duluth, MN 270,681 221,103 193,960 531 0.1% -15.3% -12.3% 49 La Crosse, WI 191,542 193,740 185,398 508 0.1% -1.6% -4.3% 50 Monroe, LA 188,357 174,960 178,540 489 0.1% -2.6% 2.0%

Total of Above 211,134,949 200,407, 415 193,238,138 529,420 98.1% -4.3% -3.6%

Total Seats Available 215,069,086 204,187,894 197,006,283 539,743 100.0% -4.3% -3.5% Rank Avg. Ann. ChangeBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 56 FIGURE 38: Top 50 Central Region airports ranked by domestic onboard passengers, year ended first quarter 2010 (source: US DOT Table DB1A)

Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Paxs / Day YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 30,464,106 27,705,230 26,486,070 72,565 17.8% -6.8% -4.4% 2 Dallas/Ft Worth, TX 26,169,283 24,618,711 24,627,803 67,473 16.6% -3.0% 0.0% 3 Houston IAH, TX 16,859,166 15,738,161 15,504,233 42,477 10.4% -4.1% -1.5% 4 Minneapolis, MN 15,863,635 14,847,951 14,538,119 39,830 9.8% -4.3% -2.1% 5 Chicago Midw ay, IL 9,613,880 8,415,658 8,950,346 24,521 6.0% -3.5% 6.4% 6 St. Louis, MO 7,387,004 6,869,023 6,361,001 17,427 4.3% -7.2% -7.4% 7 Kansas City, MO 6,307,351 5,503,300 5,333,931 14,614 3.6% -8.0% -3.1% 8 Houston Hobby, TX 4,919,411 4,696,156 4,674,939 12,808 3.1% -2.5% -0.5% 9 Milw aukee, WI 3,812,972 3,692,574 4,487,721 12,295 3.0% 8.5% 21.5% 10 Austin, TX 4,531,164 4,388,022 4,260,125 11,672 2.9% -3.0% -2.9% 11 Dallas Love Field, TX 4,517,844 4,421,846 4,119,482 11,286 2.8% -4.5% -6.8% 12 New Orleans, LA 4,024,103 4,015,936 4,034,778 11,054 2.7% 0.1% 0.5% 13 San Antonio, TX 4,084,026 4,125,532 3,936,991 10,786 2.7% -1.8% -4.6% 14 Omaha, NE 2,216,698 2,151,835 2,147,513 5,884 1.4% -1.6% -0.2% 15 Oklahoma City, OK 2,008,777 1,903,918 1,777,891 4,871 1.2% -5.9% -6.6% 16 El Paso, TX 1,986,342 1,838,273 1,746,170 4,784 1.2% -6.2% -5.0% 17 Tulsa, OK 1,726,583 1,625,056 1,467,870 4,022 1.0% -7.8% -9.7% 18 Little Rock, AR 1,318,449 1,240,572 1,187,694 3,254 0.8% -5.1% -4.3% 19 Des Moines, IA 969,559 890,331 867,757 2,377 0.6% -5.4% -2.5% 20 Madison, WI 776,823 734,641 755,809 2,071 0.5% -1.4% 2.9% 21 Wichita, KS 787,255 760,896 739,267 2,025 0.5% -3.1% -2.8% 22 Lubbock, TX 637,291 584,781 554,287 1,519 0.4% -6.7% -5.2% 23 NW Arkansas 576,384 529,887 542,798 1,487 0.4% -3.0% 2.4% 24 Amarillo, TX 524,522 517,645 473,136 1,296 0.3% -5.0% -8.6% 25 Cedar Rapids, IA 529,576 495,770 470,382 1,289 0.3% -5.8% -5.1% 26 Moline, IL 484,765 470,556 467,286 1,280 0.3% -1.8% -0.7% 27 Midland/Odessa, TX 530,569 489,488 439,821 1,205 0.3% -9.0% -10.1% 28 Springfield, MO 432,773 375,088 400,149 1,096 0.3% -3.8% 6.7% 29 Fargo, ND 306,049 335,693 367,851 1,008 0.2% 9.6% 9.6% 30 McAllen, TX 410,624 352,601 364,134 998 0.2% -5.8% 3.3% 31 Corpus Christi, TX 410,708 380,449 352,877 967 0.2% -7.3% -7.2% 32 Harlingen, TX 428,221 393,314 351,028 962 0.2% -9.5% -10.8% 33 Baton Rouge, LA 470,904 390,581 350,379 960 0.2% -13.7% -10.3% 34 Green Bay, WI 453,765 381,831 350,252 960 0.2% -12.1% -8.3% 35 Sioux Falls, SD 410,234 355,984 334,125 915 0.2% -9.8% -6.1% 36 Rapid City, SD 252,904 267,682 273,929 750 0.2% 4.1% 2.3% 37 Appleton, WI 284,667 260,626 270,210 740 0.2% -2.6% 3.7% 38 Bloomington/Normal, IL 266,822 255,238 246,251 675 0.2% -3.9% -3.5% 39 Peoria, IL 284,710 267,086 245,175 672 0.2% -7.2% -8.2% 40 Shreveport, LA 326,731 275,508 244,674 670 0.2% -13.5% -11.2% 41 Lafayette, LA 226,282 208,639 211,269 579 0.1% -3.4% 1.3% 42 Killeen/Fort Hood, TX 201,086 189,936 210,492 577 0.1% 2.3% 10.8% 43 Bismarck, ND 183,175 180,409 189,522 519 0.1% 1.7% 5.1% 44 Wausau, WI 156,746 150,264 150,826 413 0.1% -1.9% 0.4% 45 Lincoln, NE 165,698 157,392 143,763 394 0.1% -6.9% -8.7% 46 Alexandria, LA 134,144 130,075 134,290 368 0.1% 0.1% 3.2% 47 Duluth, MN 179,498 139,955 130,593 358 0.1% -14.7% -6.7% 48 Rochester, MN 169,617 148,549 125,914 345 0.1% -13.8% -15.2% 49 La Crosse, WI 123,184 107,785 106,412 292 0.1% -7.1% -1.3% 50 Laredo, TX 110,102 98,872 104,147 285 0.1% -2.7% 5.3%

Total of Above 160,016,182 149,075, 306 146,611,482 401,675 98.7% -4.3% -1.7%

Total Onboard Passengers 162,246,984 151,009,752 148,556,769 407,005 100.0% -4.3% -1.6% Avg. Ann. Change RankBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 57 FIGURE 39: Top 50 Central Region airports ranked by domestic origin and destination (O&D) passengers, year ended first quarter 2010 (source: US DOT Table DB1A)

PDEW Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 YE 1Q 10 YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 14,459,240 12,957,880 12,050,030 33,014 13.9% -8.7% -7.0% 2 Dallas/Ft Worth, TX 11,017,850 9,788,810 9,553,850 26,175 11.0% -6.9% -2.4% 3 Minneapolis, MN 7,908,760 6,918,760 7,237,410 19,829 8.3% -4.3% 4.6% 4 Houston IAH, TX 7,424,980 6,275,270 6,142,210 16,828 7.1% -9.0% -2.1% 5 Chicago Midw ay, IL 6,414,060 5,457,120 5,591,860 15,320 6.4% -6.6% 2.5% 6 St. Louis, MO 5,303,370 4,919,510 4,691,060 12,852 5.4% -5.9% -4.6% 7 Kansas City, MO 4,888,470 4,438,960 4,232,180 11,595 4.9% -7.0% -4.7% 8 Austin, TX 3,770,150 3,706,580 3,572,320 9,787 4.1% -2.7% -3.6% 9 New Orleans, LA 3,514,330 3,508,890 3,511,990 9,622 4.0% 0.0% 0.1% 10 San Antonio, TX 3,471,010 3,524,020 3,378,420 9,256 3.9% -1.3% -4.1% 11 Milw aukee, WI 2,796,680 2,729,320 3,088,160 8,461 3.6% 5.1% 13.1% 12 Houston Hobby, TX 3,263,210 3,163,280 3,035,030 8,315 3.5% -3.6% -4.1% 13 Dallas Love Field, TX 3,049,790 2,850,170 2,591,390 7,100 3.0% -7.8% -9.1% 14 Omaha, NE 1,992,760 1,934,030 1,892,480 5,185 2.2% -2.5% -2.1% 15 Oklahoma City, OK 1,654,430 1,585,740 1,484,930 4,068 1.7% -5.3% -6.4% 16 El Paso, TX 1,552,920 1,419,170 1,351,530 3,703 1.6% -6.7% -4.8% 17 Tulsa, OK 1,474,100 1,404,080 1,265,660 3,468 1.5% -7.3% -9.9% 18 Little Rock, AR 1,157,370 1,062,790 1,009,180 2,765 1.2% -6.6% -5.0% 19 Des Moines, IA 848,330 759,830 745,450 2,042 0.9% -6.3% -1.9% 20 Madison, WI 658,370 637,670 664,770 1,821 0.8% 0.5% 4.2% 21 Wichita, KS 700,290 674,400 654,350 1,793 0.8% -3.3% -3.0% 22 Lubbock, TX 561,730 516,210 503,480 1,379 0.6% -5.3% -2.5% 23 NW Arkansas 505,460 459,240 467,390 1,281 0.5% -3.8% 1.8% 24 Moline, IL 440,870 428,800 420,900 1,153 0.5% -2.3% -1.8% 25 Midland/Odessa, TX 486,620 453,610 400,800 1,098 0.5% -9.2% -11.6% 26 Cedar Rapids, IA 458,730 422,440 396,960 1,088 0.5% -7.0% -6.0% 27 Amarillo, TX 449,470 418,900 367,450 1,007 0.4% -9.6% -12.3% 28 Springfield, MO 382,650 327,810 354,520 971 0.4% -3.7% 8.1% 29 Harlingen, TX 435,930 392,140 349,200 957 0.4% -10.5% -11.0% 30 Fargo, ND 273,170 300,870 335,830 920 0.4% 10.9% 11.6% 31 McAllen, TX 376,480 324,700 331,360 908 0.4% -6.2% 2.1% 32 Corpus Christi, TX 404,530 352,790 321,660 881 0.4% -10.8% -8.8% 33 Baton Rouge, LA 435,240 348,170 310,310 850 0.4% -15.6% -10.9% 34 Green Bay, WI 412,690 337,010 306,040 838 0.4% -13.9% -9.2% 35 Sioux Falls, SD 362,340 309,520 297,620 815 0.3% -9.4% -3.8% 36 Rapid City, SD 230,880 244,000 250,290 686 0.3% 4.1% 2.6% 37 Appleton, WI 258,220 235,760 243,730 668 0.3% -2.8% 3.4% 38 Bloomington/Normal, IL 253,120 247,120 230,320 631 0.3% -4.6% -6.8% 39 Peoria, IL 251,800 233,330 218,780 599 0.3% -6.8% -6.2% 40 Shreveport, LA 274,830 231,840 210,930 578 0.2% -12.4% -9.0% 41 Killeen/Fort Hood, TX 173,510 166,050 190,500 522 0.2% 4.8% 14.7% 42 Lafayette, LA 187,620 175,900 181,520 497 0.2% -1.6% 3.2% 43 Bismarck, ND 174,780 165,980 174,750 479 0.2% 0.0% 5.3% 44 Wausau, WI 140,380 133,410 136,310 373 0.2% -1.5% 2.2% 45 Lincoln, NE 142,990 133,740 119,000 326 0.1% -8.8% -11.0% 46 Duluth, MN 161,920 123,320 118,060 323 0.1% -14.6% -4.3% 47 Alexandria, LA 122,740 110,540 114,000 312 0.1% -3.6% 3.1% 48 Rochester, MN 147,190 128,920 109,350 300 0.1% -13.8% -15.2% 49 Laredo, TX 103,000 91,790 96,090 263 0.1% -3.4% 4.7% 50 Grand Forks, ND 75,490 83,500 92,260 253 0.1% 10.6% 10.5%
Top 50 Airports 96,004,850 87,613,690 85,393,670 23 3,955 98.2% -5.7% -2.5%

Total Regional Passengers 97,832,220 89,174,510 86,981,090 238,304 100.0% -5.7% -2.5% Avg. Ann. Change RankBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 58 FIGURE 40: Top 50 Central Region airports ranked by domestic origin and domestic (O&D) revenue, year ended first quarter 2010 (source: US DOT Table DB1A)

RDEW Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 YE 1Q 10 YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL $2,196,844 $2,101,917 $1,794,811 $4,917 13.9% -9.6% -14.6% 2 Dallas/Ft Worth, TX $1,825,758 $1,772,167 $1,596,150 $4,373 12.4% -6.5% -9.9% 3 Minneapolis, MN $1,333,095 $1,340,130 $1,114,852 $3,054 8.6% -8.6% -16.8% 4 Houston IAH, TX $1,253,074 $1,143,806 $1,045,617 $2,865 8.1% -8.7% -8.6% 5 Chicago Midw ay, IL $681,093 $673,374 $645,490 $1,768 5.0% -2.6% -4.1% 6 St. Louis, MO $744,131 $719,965 $638,519 $1,749 4.9% -7.4% -11.3% 7 Kansas City, MO $657,273 $630,283 $548,720 $1,503 4.3% -8.6% -12.9% 8 Austin, TX $579,725 $554,010 $510,685 $1,399 4.0% -6.1% -7.8% 9 New Orleans, LA $519,135 $511,814 $505,355 $1,385 3.9% -1.3% -1.3% 10 San Antonio, TX $540,362 $532,199 $489,146 $1,340 3.8% -4.9% -8.1% 11 Houston Hobby, TX $381,291 $414,621 $389,356 $1,067 3.0% 1.1% -6.1% 12 Milw aukee, WI $422,987 $403,924 $362,290 $993 2.8% -7.5% -10.3% 13 Dallas Love Field, TX $286,108 $309,800 $285,796 $783 2.2% -0.1% -7.7% 14 Omaha, NE $298,650 $296,803 $269,585 $739 2.1% -5.0% -9.2% 15 Oklahoma City, OK $260,067 $261,545 $241,299 $661 1.9% -3.7% -7.7% 16 El Paso, TX $236,191 $225,489 $204,859 $561 1.6% -6.9% -9.1% 17 Tulsa, OK $219,570 $219,788 $188,699 $517 1.5% -7.3% -14.1% 18 Little Rock, AR $176,486 $171,431 $156,282 $428 1.2% -5.9% -8.8% 19 Des Moines, IA $153,896 $147,887 $128,769 $353 1.0% -8.5% -12.9% 20 Madison, WI $118,812 $117,212 $101,840 $279 0.8% -7.4% -13.1% 21 Wichita, KS $119,788 $116,873 $100,398 $275 0.8% -8.5% -14.1% 22 NW Arkansas $108,292 $108,085 $95,728 $262 0.7% -6.0% -11.4% 23 Cedar Rapids, IA $84,296 $82,685 $68,235 $187 0.5% -10.0% -17.5% 24 Lubbock, TX $67,688 $67,396 $63,567 $174 0.5% -3.1% -5.7% 25 Moline, IL $65,805 $68,607 $62,336 $171 0.5% -2.7% -9.1% 26 Springfield, MO $75,370 $67,893 $59,083 $162 0.5% -11.5% -13.0% 27 Fargo, ND $60,272 $63,210 $57,477 $157 0.4% -2.3% -9.1% 28 Sioux Falls, SD $71,992 $67,785 $57,298 $157 0.4% -10.8% -15.5% 29 McAllen, TX $68,386 $62,357 $56,285 $154 0.4% -9.3% -9.7% 30 Baton Rouge, LA $78,485 $67,337 $55,686 $153 0.4% -15.8% -17.3% 31 Midland/Odessa, TX $61,423 $64,601 $54,892 $150 0.4% -5.5% -15.0% 32 Corpus Christi, TX $61,743 $58,619 $51,508 $141 0.4% -8.7% -12.1% 33 Amarillo, TX $58,294 $56,805 $49,640 $136 0.4% -7.7% -12.6% 34 Shreveport, LA $57,975 $57,050 $49,453 $135 0.4% -7.6% -13.3% 35 Green Bay, WI $73,512 $64,622 $48,734 $134 0.4% -18.6% -24.6% 36 Harlingen, TX $53,384 $52,362 $44,717 $123 0.3% -8.5% -14.6% 37 Rapid City, SD $48,359 $49,477 $43,162 $118 0.3% -5.5% -12.8% 38 Killeen/Fort Hood, TX $35,375 $39,294 $40,501 $111 0.3% 7.0% 3.1% 39 Appleton, WI $49,310 $45,574 $38,517 $106 0.3% -11.6% -15.5% 40 Bismarck, ND $37,701 $37,859 $36,017 $99 0.3% -2.3% -4.9% 41 Lafayette, LA $35,268 $36,896 $34,444 $94 0.3% -1.2% -6.6% 42 Peoria, IL $40,527 $38,742 $32,746 $90 0.3% -10.1% -15.5% 43 Bloomington/Normal, IL $34,456 $35,352 $30,920 $85 0.2% -5.3% -12.5% 44 Alexandria, LA $25,709 $26,497 $26,664 $73 0.2% 1.8% 0.6% 45 La Crosse, WI $24,848 $25,843 $23,147 $63 0.2% -3.5% -10.4% 46 Lincoln, NE $26,479 $25,258 $22,207 $61 0.2% -8.4% -12.1% 47 Duluth, MN $30,675 $28,544 $22,063 $60 0.2% -15.2% -22.7% 48 Wausau, WI $27,435 $26,620 $21,145 $58 0.2% -12.2% -20.6% 49 Grand Forks, ND $18,507 $20,061 $18,294 $50 0.1% -0.6% -8.8% 50 Rochester, MN $25,814 $25,928 $18,033 $49 0.1% -16.4% -30.4%
Top 50 Airports $14,511,715 $14,136,399 $12,601,015 $17,262 97.6% -6.8% -10.9%
Total Regional Revenue $14,858,005 $14,473,124 $12,909,489 $17,684 100.0% -6.8% -10.8% Avg. Ann. Change RankBismarck Airport – Small Community Air Service Development Grant – August 2010 

## 59 CONCLUSIONS

The Bismarck market has some of the highest average fares in the northern tier of the United States. The nearest airport ranked among the US top 200 with a higher average fare is located some 750 miles away, in Kalispell, MT.
The Delta/Northwest merger has concentrated tw o-thirds of network carrier traffic in the Bismarck market in the hands of the newly merged Delta. Accented by the merger but true even before it, Bismarck’s air service has not kept pace with the strong economic growth of the city and surrounding region. While most of the rest of our country struggles with recovery from a deep economic recession, Bismarck cannot find en ough workers for all its job openings. And the driver of the Bismarck regional economy is domestic energy production, a top national economic priority that ties north-central North Dakota to petroleum headquarters in Texas and other points in the South.

Thus, air service issues in Bismarck have national importance due to their impact on the efficient development of domestic energy production. The Airport’s fares are high, much higher than the national or even regional averages. Bismarck air service is excessively concentrated in the hands of one carrier, and that carrier’s market share position in the East and South is essentially that of a monopoly.

The Bismarck Airport has put forth in this Grant application a set of three distinct new commercial air service options, all of which will help address East and South access issues, market share concentration concerns, and high average fare problems.
The Airport and its local and regional public/p rivate partnership have committed $50,000 in local, non-airport cash to match the Grant request of $500,000. This total funding will greatly assist the Airport in its efforts to bring new air service to Bismarck. The benefits of the new air service will greatly outweigh the modest Department and local match cost.

The Bismarck Airport and its partners urge the Department to approve this Grant request. We thank the Department in advance for its consideration of our proposal.