August 2, 2011

Legal Sponsor: Grand Junction Regional Airport Authority

DUNS: 15-615-5394

Docket Number: OST-2011-0119

Contact: Rex A. Tippetts, A.A.E.

 Director of Aviation

 Grand Junction Regional Airport

 2828 Walker Field Drive, Suite #301

 Grand Junction, Colorado 81506

 Phone: 970-248-8588

 Email: rtippetts@gjairport.com

Grand JunctionRegional Airport

Proposal Under the 2011 

Small Community Air Service 

Development Program
ii

I Summary Information Pg. 1

II Proposal Highlights Pg. 4

III Air Service Background Pg. 7

IV Air Service Issues Pg. 15

V Action Plan Pg. 16

VI Schedule/Monitoring Pg. 21

TABLE OF CONTENTS
1

| Grand Junction Regional Airport

SUMMARY INFORMATION

APPENDIX B

Page 1

Order: 2010-7-16

Docket DOT-OST-2010-0124

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2010-0124

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form SF424 on 

http://www.grants.gov.

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives EAS subsidy

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

If previous recipient: Date of grant: xxxxxxxxxxxxxx

Expiration date of grant: xxxxxxxxxxxxxx

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

Public Private

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Personnel Increase Frequency Low Fare Service

Travel Bank Service Restoration Subsidy

X

Grand Junction Regional Airport West Star Aviation

Grand Junction Visitor & Convention Bureau

X X

X
| Grand Junction Regional Airport

2

SUMMARY INFORMATION

APPENDIX B

Page 2

Surface Transportation Regional Service Other (specify)

Revenue Guarantee Launch New Carrier

Start Up Cost Offset First Service

Study Secure Additional Carrier

D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

E. PROJECT COST:

1. Federal amount requested: __________________________

2. State cash financial contribution: __________________________

3. Local cash financial contribution...

3a. Airport cash funds: __________________________

3b. Non-airport cash funds: __________________________

3c. Total local cash funds (3a. + 3b.): __________________________

4. TOTAL CASH FUNDING (1. + 2. + 3c.): __________________________

5. Local funds contributed from already-existing

programs or projects included in line 3c. amount: __________________________

6. Local funds contributed from new commitments

or new resources included in line 3c. amount: __________________________

7. Airport In-Kind contribution: __________________________

(amount & description)

8. Other In-Kind

(amount & description)

contribution: __________________________

9. TOTAL IN-KIND CONTRIBUTION (7. + 8.): __________________________

10. TOTAL PROJECT COST (4. + 9.): __________________________

X X

X

$150,000.00

$0.00

$10,000.00

$5,000.00

$15,000.00

$15,000.00

$0.00

$15,000.00

$5,000.00

Program Administration

$10,000.00

In-Kind Marketing/Promotion

$15,000.00

$30,000.00
3

| Grand Junction Regional Airport

SUMMARY INFORMATION

APPENDIX B

Page 3

F. ENPLANEMENTS:

2000 ________________ 2004 ________________ 2008 ______________

2001 ________________ 2005 ________________ 2009_______________

2002 ________________ 2006 ________________ 

2004 ________________ 2007 ________________

G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

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

review on (date) _____________.

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

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

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE EXPLANATION)

No Yes (explain) _____________________________________________

136,611 144,027 212,598

120,057 159,715 228,850

125,441 160,307

127,584 170,836

X

X
| Grand Junction Regional Airport

4

PROPOSAL HIGHLIGHTS

PROPOSAL HIGHLIGHTS

This Small Community Air Service Development Program grant application for the Grand Junction 

Regional Airport Authority/Grand Junction Regional Airport, in Grand Junction, Colorado meets the 

guidelines set out in Docket DOT-OST-2010-0124. The Grand Junction Regional Airport Authority, 

the Airport sponsor, is requesting $150,000.00 in federal assistance to facilitate the implementation 

of a $180,000.00 air service improvement initiative. The project’s goals are to improve air service to 

abroad section of Grand Junction’s community traveling to destination located to the northeast and west 

United States, mitigate the need to drive long distances to access air service and competitive fares to 

these markets, and improve local access to the national air transportation systems for this isolated part of 

Colorado.

The plan to accomplish these goals are:

1. Secure additional seat service with an airline that has a hub located northeast or west of Grand 

Junction, Colorado.

2. Support the long-term success of the initiative with a creative, three-part marketing program that 

specifically targets the market’s barrier to entry.

3. Support alternate airline initiatives at other hub airport that accomplish the goals of this application.

This plan will reduce local air travelers’ need to drive to Denver International Airport or Salt Lake 

City International Airport to access air service and competitive fares to destinations located in the 

northeastern or western United States and beyond. Increasing the supply of seats will have the added 

benefit of decreasing airfares to destinations east of Grand Junction, Colorado.
5

| Grand Junction Regional Airport

PROPOSAL HIGHLIGHTS

AIR SERVICE ISSUES

Grand Junction is a relatively isolated community in west central Colorado approximately 250 miles 

from Denver, Colorado. It is the economic center of the regional and more importantly, is the epicenter 

of Colorado’ energy industry,, as well as the regional center for medical, business, and retail. This remote 

part of Colorado is highly dependent on air service for commerce and communication with the rest 

of the country. Currently, eastbound air service does not provide the service needed to meet robust 

demand. Northeast bound service is focused on the Denver hub and service is provided by only one 

carrier, causing high airfares and high load factors. The net result is that one out of every three passenger 

in Grand Junction’s top 29 eastbound markets drives nearly five hours to Denver, Colorado. It is an 

understanding to say that Grand Junction is in need of additional eastbound air service/service.

Secondly, westbound service is focused on primarily the Salt Lake City hub and service is provided 

primarily by only one carrier year-round and by a second carrier seasonally. The net result is that the 

majority of travelers are driving four hours to Salt Lake City, Utah or five hours to Denver, Colorado to 

access service and competitive airfares. 

Consistent with the law of supply and demand, Grand Junction’s shortage of northeast bound and west 

bound service and limited competition have resulted in over priced airfares. Average airfares for the 

year ending July 2011 were significantly higher than Denver in 21 of the top 25 markets and notably 

higher in all the westbound markets. On a sample day in July 2011, published business airfares in Grand 

Junction’s top northeast bound markets ranged from $80.00 to $374.00 higher than comparable Denver 

fares. Given the service shortage, the fare comparisons are not surprising, but they are a handicap to 

market growth and evidence that the Grand Junction market is over priced. 

Grand Junction is and under served and overpriced market in terms of west bound and north east bound 

service.

A WELL DEFINED PLAN

The proposed plan includes a creative and comprehensive three-part marketing campaign to support 

additional airlines service to a hub airport located either west or northeast for Grand Junction. Using 

the marketing program as an initiative, the plan is to add airline service and/or service to a western of 

northeastern hub. 

With high demand and airlines seats in short supply, Grand Junction’s air travelers have been trained 

to drive to Denver or Salt Lake City to catch flights for western or eastern destinations. Strategically, 

the eight-month marketing plan underwrites the success of this initiative by focusing on breaking 

those travel habits and expanding our catchment area, with a heavy emphasis on capturing the business 

traveler. The marketing plan uses the power of a unique Mileage Award Bonus Program (frequent flyer) 

in concert with a Business Flyer Marketing Plan and traditional General Public Marketing Plan to 

promote service improvements, stem passenger diversions and increase our catchment area.
| Grand Junction Regional Airport

6

PROPOSAL HIGHLIGHTS

BROAD COMMUNITY SUPPORT

The Grand Junction Regional Airport Authority, the Grand Junction Visitor and Convention Bureau, 

and West Star Aviation, have formed a public-private partnership in support of this application. The 

strength of this public-private partnership comes from the cohesiveness of these groups and their 

ability to work collectively to market and promote air service opportunities. The partners have a broad 

knowledge and history of collaborating and developing marketing goals that support and benefit the 

overall community. The public-private partnership created for this grant application builds on the 

foundation of these relationships that span many years and numerous projects. 

Non-airport sources will fund just over 3 percent ($5,000.00) of the $150,000.00 cash requirement of 

the proposed plan. Grand Junction Regional Airport Authority and the Grand Junction Visitor and 

Convention Bureau will provide an additional $25,000.00 in cash and in-kind contributions to support 

the project.

STRONG ABILITY TO IMPLEMENT THE PROJECT

Communications with the primary target airlines indicate an interest by the carriers in servicing markets 

to either the northeast or west of Grand Junction. From the community’s perspective, the Grand 

Junction Regional Airport Authority, the Grand Junction Visitor and Convention Bureau, and West 

Star Aviation, are ready to launch the Air Service Support Program as soon as a grant is received and an 

agreement is reached with a carrier. 

MULTIPLE SECTORS OF THE COMMUNITY WILL BENEFIT

Grand Junction is the type of community/region that the United States Congress had in mind when 

it created the Small Community Air Service Development Program. Grand Junction MSA has a 

population of 143,171 and is over 250 miles form the larger metropolitan areas of Denver and Salt Lake 

City. By any measure, it is a remote location. Unlike other Colorado communities, Grand Junction’s 

economy is first business and second leisure. Grand Junction is the regional center for travel, retail, 

health care, construction and supplies, education, business and professional services, and more. Because 

of Grand Junction’s isolated location and its role as a regional center, air service is critical to all aspects of 

the community. The importance of air service to this region is compounded by its vast energy resources. 

It is not a stretch to mention that these resources are also important to our nation and that the proposed 

improvements support their development.
7

| Grand Junction Regional Airport

AIR SERVICE BACKGROUND 

AIR SERVICE BACKGROUND

The Air Service Background section provides a community overview including the airport catchment 

area and economic and demogrpahic imformation. Information on exsisting and historical air service is 

also covered.

GRAND JUNCTION REGIONAL AIRPORT CATCHMENT AREA

To understand airport use, it is important to understand the relative size of the catchment area, current 

air service, and enplanement activity. Grand Junction Regional Airport’s use was determined using year 

ended March 31, 2010, MIDT data for the zip codes from the primary catchment area.

An airport catchment area, or service area, is a geographic area surrounding an airport where it can 

reasonably expect to draw passenger traffic and is representative of the local market. The primary 

catchment area contains the population of travelers who should use Grand Junction Regional Airport 

considering the drive time from the catchment area to competing airports. This population of travelers 

is Grand Junction Regional Airport’s focus market for air service improvements and represents the 

majority of travelers using the local airport. The secondary catchment area represents the broader area 

that Grand Junction Regional Airport draws from; however, these areas have alternate commercial 

service airports that are a closer drive distance. The focus of this report is the primary catchment area.

The map identifies 

the Grand Junction 

Regional Airport 

primary and secondary 

catchment areas. The 

primary catchment 

area is comprised of 

38 zip codes with an 

estimated population 

of almost 220,000. The 

secondary catchment 

area has 49 zip codes 

with an estimated 

population of 185,381.

Copyright © and (P) 1988–2009 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/mappoint/

Certain mapping and direction data © 2009 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: © Her Majesty the Queen in Right of Canada, © Queen's Printer for 

Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2009 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc. © 2009 by Applied Geographic Systems. All 

rights reserved.

GJT Catchment Area

0 mi 50 100 150
| Grand Junction Regional Airport

8

AIR SERVICE BACKGROUND 

COMMUNITY ECONOMIC AND DEMOGRAPHICS

As our national economy slowly begins to rebound, the Grand Junction Metropolitan Statistical Area 

(MSA) continues to see some signs of recovery. 

The Business Conditions Index for Colorado has current rating of 56.8 (neutral point of this scale is 50). 

This is the highest level since the second quarter of 2006. Expectations for sales, industry profits, hiring 

and capital expenses all recorded aggressive gains (Source: LEEDS Business Confidence Index®(LBCI).

Colorado’s State Quarterly Personal Income increased slightly in the fourth quarter of 2010 to $218,203. 

(Source: US Department of Commerce.)

The Colorado Office of State Planning and Budgeting has forecasted the per person Per-Capita Income 

for 2011 to be $43,272. This is slightly above the 2010 level of $42,651.

Jobs and Wages

(Sources: Colorado Department of Labor, US Department of Labor, Mesa County WFC.)

The unemployment rate in Grand Junction remains high: 11.2% in March 2010. This is higher than both 

Colorado’s unemployment rate of 9.2% and the nation’s at 8.8%.

As of March 2011, the total MSA labor force is reported at 77,627 a 2.5% decrease from March 2010.

The average annual wage in Mesa County for the third quarter of 2010 is $40,646.

The Mesa County Workforce Center recorded 400 open positions in the first quarter of 2011, a 38% 

increase from the first quarter of 2010.

The ratio of applicants to every job order was 43:1 as of March, 2011. In the first quarter of 2010 the 

ratio was 65:1.

Tax Revenues

The City of Grand Junction collected $3,363,516 in Sales & Use Tax Revenue in March 2011. This 

represents an 11.2% increase from March 2010.

Sales & Use Tax revenues comprise more than 40% of the City of Grand Junction’s total revenues.

The combined tax rate is 7.65%. This includes rates from the State of Colorado, Mesa County, and the 

City of Grand Junction.

In the first quarter of 2011, the Grand Junction VCB collected $174,902 in lodging tax. This represents a 

2.9% decrease from the first quarter of 2010.

Real Estate

(Source: City of Grand Junction, Mesa County and zillow.com)

24 New Construction Permits have been issued in the first quarter of 2011. This represents a 40% 

decrease from the first quarter of 2010.

The City of Grand Junction estimates that $11,266,087 has been spent on construction activities in the 
9

| Grand Junction Regional Airport

first quarter of 2011 – a 63.7% decline from the first quarter of 2010.

The median home sale price has decreased again to $174,700. This represents a decrease from the first 

quarter of 2010.

PROXIMITY TO A COMPETING AIRPORT

Grand Junction Regional Airport is approximately 265 miles west of Denver and 290 miles east of Salt 

Lake City. Although these airports have service to hundreds of destination and thousands of flights per 

week, the distance and complications associated with driving over high mountain passes makes driving 

to/from these airports impractical at best. Several non-hub airports such as Monstrose and Eagle/Vail 

are located within 100 miles of Grand Junction; however, their limited service that is geared toward ski 

traffic offers little to no benefit to the residents of the Grand Valley.

AIR SERVICE BACKGROUND 
| Grand Junction Regional Airport

10

AIR SERVICE BACKGROUND 

FACTORS AFFECTING AIR SERVICE

Air service at the Grand Junction Regional Airport is primarily affected by three factors: geogrpahic 

location, modest market size, and aircraft size/economica. The modest marekt size is insufficent to 

support additional point-to-point service to the Denver, Phoenix, and Salkt Lake City hubs. Westbound 

trvelers use exsisting Salt Lake City service, 215 miles to the west/northwest and Phoeinx service, 440 

miles to the southwest. Both hubs provide connecting service to the wes coast, but circuity limits the 

competitiveness of service to Southern California and the Pacific Northwest. The Denver hub, 210 miles 

to the east, is the gateway to the eastern two-thirds of the country. The nearest alternative is Dallas/Fort 

Worth, 770 miles tot he south/southeast and Houston, 980 miles south/southeast. 

PAST AIR SERVICE DEVELOPMENT EFFORTS

Over the past several years Grand Junction Regional Airport has engaged in an aggressive air service 

development program that has included air service research and retainment.. The Airport has been 

successful at aquiring and maintianing additional service that includes:

2006 Allegiant Air Begins Twice Weekly Service to Las Vegas, NV 

•	 Marketing Program Implmentended Successfully

•	 Service Reaimins Successful Today with High Load Factors

2008 American Eagle Begins Twice Daily Service to Dallas/Fort Worth, TX

•	 Marketing Program Implmentended Successfully

•	 Service Reaimins Successful Today with High Load Factors

2009 Allegiant Air Begins Twice Weekly (SEasonal) Service to Los Angeles, CA

•	 Marketing Program Implmentended Successfully

•	 Service Reaimins Successful Today with High Load Factors

2011 Continental Begins Twice Daily Service to Houston, TX

•	 Marketing Program Implmentended Successfully

•	 Service Reaimins Successful Today with High Load Factors

CURRENT AIR SERVICE

Grand Junction Regional Airport is served by six marketing carriers: Allegient, American Eagle, 

Continental, Delta Airlines, United Airlines, US Airways. Non-stop commercial service is provided to 

seven cities: Dallas/Fort Worth, Denver, Houston, Las Vegas, Los Angeles (seasonal), Phoenix, and Salt 

Lake City. 
11

| Grand Junction Regional Airport

AIR SERVICE BACKGROUND 

Weekly Departures and Seats 

By Airline and Destination

Destination Marketing Carrier Flights 

Per Week

Seat Per 

Week Seats Per Day

Dallas/Fort Worth (DFW) American Airlines 21 1,050 150

Denver (DEN) United Airlines 48 2,400 350 Sun-Fri / 300 Sat

Houston (IAH) Continental Airlines 14 700 100

Las Vegas (LAS) Allegiant Air 2 300 *Allegiant services 

Grand Junction with 

four (4) flights, twice 

(2) weekly. Two flights 

weekly to LAS and two 

flights to LAX.

Los Angeles (LAX) Allegiant Air 2 300

Phoenix (PHX) US Airways 20 760 108 

Salt Lake City (SLC) Sky West/Delta 20 1,000 142

Total 127 6510 850* Sun-Fri / 800* 

Sat 

*Does not include Allegiant Air

Note: Week of February 12, 2011.
| Grand Junction Regional Airport

12

AIR SERVICE BACKGROUND 

GJT Leakage - Top 10 Markets by Passenger 2010

Rank Code Destination Reported 

pax

Retention Diversion True 

Market

DEN MTJ ASE SLC EGE HDN

1 LAS Las Vegas, NV 37,577 95.1% 1,948 39,525 1,593 0 284 35 35 0

2 DEN Denver, CO 32,014 95.7% 1,426 33,440 0 389 907 0 0 0

3 LAX Los Angeles, CA 26,481 89.2% 3,219 29,700 2,288 124 621 186 0 0

4 DFW Dallas, TX (DFW) 22,409 88.3% 2,966 25,374 494 1,153 494 824 0 0

5 PHX Phoenix, AZ 18,861 78.3% 5,229 24,090 4,640 236 236 118 0 0

6 IAH Houston, TX (IAH) 12,803 77.3% 3,766 16,569 2,259 452 603 0 452 0

7 SEA Seattle, WA 9,523 70.0% 4,080 13,603 2,336 134 1,006 604 0 0

8 ATL Atlanta, GA 6,397 49.2% 6,610 13,006 4,478 320 107 0 213 1,493

9 SFO San Francisco, CA 7,888 67.2% 3,843 11,730 2,933 152 455 0 303 0

10 MSP Minneapolis, MN 7,826 78.2% 2,183 10,009 1,461 120 361 0 120 0

4187

12845

13908

25202

30760

0

0

24441

34472

30760

27303

25072

25443

24245

28888

42431

42645

36909

38202

38651

70640

75035

79841

79061

90355

0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

2006

2007

2008

2009

2010

2006 2007 2008 2009 2010

United (DEN) 70640 75035 79841 79061 90355

Delta (SLC) 42431 42645 36909 38202 38651

US Airways (PHX) 27303 25072 25443 24245 28888

American (DFW) 0 0 24441 34472 30760

Allegiant (LAS/LAX) 4187 12845 13908 25202 30760

2006-2010 Enplanement Data By Airline
13

| Grand Junction Regional Airport

$100

$120

$140

$160

$180

$200

$220

$240

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2005 2006 2007 2008 2009 2010

Average fares by quarter

DEN GJT

GJT Average Fares by Quarter

AIR SERVICE BACKGROUND 
| Grand Junction Regional Airport

14

2010 GJT Origin & Destination Traffic

By Airline and Destination

Passenger 

Rank Destination PDEW Average Fare Passenger Revenue

1 LAX Los Angeles CA 48.0 69 2,432,237

2 LAS Las Vegas NV 44.4 65 2,108,918

3 PHX Phoenix AZ 29.7 146 3,167,506

4 DEN Denver CO 25.0 149 2,709,857

5 DFW Dallas/Fort Worth TX 20.0 204 2,984,265

6 IAH Houston-Intercontinental TX 18.4 222 2,977,128

7 ORD Chicago-O'Hare IL 13.9 165 1,680,772

8 SEA Seattle/Tacoma WA 11.6 183 1,548,370

9 SFO San Francisco CA 10.5 156 1,202,234

10 ATL Atlanta GA 10.1 160 1,183,660

11 SAN San Diego CA 9.8 162 1,163,463

12 PDX Portland OR 9.3 184 1,251,481

13 MSP Minneapolis/St. Paul MN 8.8 168 1,076,471

14 MCO Orlando FL 8.1 183 1,079,081

15 SMF Sacramento CA 7.9 178 1,028,958

16 SLC Salt Lake City UT 7.7 175 987,144

17 BOS Boston MA 7.2 199 1,046,107

18 LGA New York-La Guardia NY 6.9 221 1,109,868

19 IAD Washington-Dulles VA 6.5 186 879,443

20 PIT Pittsburgh PA 6.4 238 1,106,344

21 SNA Orange County CA 6.2 147 665,301

22 MCI Kansas City MO 6.1 158 707,133

23 SAT San Antonio TX 6.0 155 684,422

24 AUS Austin TX 5.5 157 633,563

25 PHL Philadelphia PA 5.5 208 832,688

Total All Markets 581.8 188 79,988,861

AIR SERVICE BACKGROUND 
15

| Grand Junction Regional Airport

AIR SERVICE ISSUES

AIR SERVICE ISSUES

Grand Junction is the poster child for an under served/overpriced market. Currently, the demand 

situation west bound and northeast bound is such that limited service can be purchased at very high 

fares. Though discount fares are published, only a small number of discount seats are offered since the 

tight service situation requires minimal numbers of discount fare passengers to achieve high load factors. 

Additional service is needed to an additional hub to the northeast or west to better align eastbound and 

westbound traffic demand. Additional service will address the under served situation while creating an 

environment whereby fares either eastbound or westbound will moderate to lower more reasonable and 

competitive fare levels. The additional service resulting in more competitive fares will create a situation 

conducive to more passengers electing to use Grand Junction Regional Airport’s air service rather than 

driving to Denver or Salt Lake City.

2010 GJT Performance Report

By Airline and Destination

Airline Dest AVG/Departure LF % Local Average Fare Yield RASM

Pax Seats Local Segment System

UA DEN 34 49 70 10 149 72 192 33.9 23.6

DL SLC 38 51 75 7 180 69 192 31.9 24.1

US PHX 29 40 72 33 146 108 190 24.7 17.8

AA DFW 42 50 85 18 202 130 222 16.9 14.3

G4 LAS 132 150 88 98 45 46 46 10.9 9.5

G4 LAX 135 150 90 99 44 44 44 6.7 6.0

TOTAL 39 52 75 25 148 81 178 22.4 17.4
| Grand Junction Regional Airport

16

ACTION PLAN

ACTION PLAN

The Action Plan proposed by the Grand Junction Regional Airport’s public-private partnership will 

achieve the goals described in this application by increasing airline service and lowering ticket prices to 

markets located either northeast or west of Grand Junction. This Action Plan section provides a detailed 

description of the project goals and a plan for attaining those goals. In addition to the Action Plan, this 

section identifies self-sufficiency of the service as an integral part of the community’s goals and provides 

a descriptions of how the community plans to continue with the project if it is not self-sustaining after 

the grant award expires. A detailed description of the funding necessary for implementation for the 

Action Plan, including federal and non-federal contributions, is included.

PUBLIC-PRIVATE PARTNERSHIP

The Grand Junction Regional Airport Authority is the owner/sponsor of the Grand Junction Regional 

Airport. The organizations and companies listed below have formed a public-private partnership. 

Collectively, this partnership is committed to completing the outline Action Plan. 

Public-Private Partnership Members:

Grand Junction Regional Airport Authority (Public)

Grand Junction Visitor and Convention Bureau (Public)

West Star Aviation (Private)

The Grand Junction Regional Airport Authority will execute all federal grant offers, process all 

associated reimbursement requests, and oversee grant administration. The Grand Junction Visitor and 

Convention Bureau will contribute non-airport in-kind marketing and promotional services to support 

the additional air service. West Star Aviation will contribute non-airport cash to the project. This small, 

but effective partnership has collaborated numerous times in the past to develop and promote travel. The 

strength of this partnership is that is builds on the foundation of relationship that span many years and 

numerous past projects. 

PROJECT GOALS

The Project Goals are to:

1. Improve air service to all sectors of the population served by the Grand Junction Regional Airport 

that travel to or from the northeast or west United States.

2. Mitigate the need to drive long distances to access air service and competitive fares to destinations in 

these regions.

3. Improve regional access to the national air transportation system.
17

| Grand Junction Regional Airport

ACTION PLAN

The Action Plan outlined herein will support a burgeoning energy industry, local business, universities, 

and government employees. Improved access to the national air transportation system and, specifically, 

improved access to either the northeast or the west United States, is vital to businesses and importantly 

to the development of the energy resources in Western Colorado.

PROPOSED AIR SERVICE

As detailed in the Air Service Issues section, Grand Junction’s core problem is that airline service is 

dramatically lower that local demand, and high ticket prices are an associated result. To accomplish the 

goals of this application, the plan is to add airline service to a connecting hub located either northeast or 

west of Grand Junction. 

AIR SERVICE SUPPORT PLAN

The shortage of airline seats and the high airfares is not a new problem in Grand Junction. Grand 

Junction has been an under served and overpriced market for most of its history, and not surprisingly, 

local air travelers have developed a habit of driving to Denver or Salt Lake City for air service. An 

indicator of the magnitude of the problem is that the drive to both Denver and Salt Lake City require 

the traveler to drive over mountain passes and the trip can be especially dangerous in the winter.

For the airlines that adds service in Grand Junction, the number one barrier to entry id the existing 

travel habits; people driving to access better air service and fares. The carrier is at risk during the startup period, and the rate of absorption of the added service by the market will depend on breaking those 

habits and making the current market aware of the new service, as well as expanding the catchment are 

and making that area aware of the new service. Business flyers are less price sensitive, more accepting of 

smaller aircraft, and fly locally for convenient. Accordingly, efforts to change existing travel habits must 

target the areas business flyer’s. Likewise, efforts to increase the catchment area are best made to the out 

lying business communities. 

Without community involvement and support, considering the hurdles discussed above, the carrier that 

adds service in the Grand Junction market will have a protracted ramp-up period that translates to adds 

risk. However, the carrier will not spend the dollars or effort to address the basic barriers to entry. Grand 

Junction’s public-private partnership has conceived a creative, integrated Air Service Support Plan. Its 

focus is two-fold; engage Grand Junction’s business community in reducing the ramp-up period for the 

improved service and alter the air travel habits in the market. The three elements of this plan, include:

1. Mileage Award Bonus Program

2. Business Flyer Marketing

3. General Public Marketing
| Grand Junction Regional Airport

18

ACTION PLAN

MILEAGE AWARD BONUS PROGRAM

The Airport will purchase an undetermined number of award miles/frequent flyer miles from the airline 

that adds additional service/service (no less than 50-seats per day) to a hub northeast or west of Grand 

Junction. The public-private partnership would work together to award these frequent flyer miles to 

travelers. To be eligible for the award, each person will: 

1. Need to provide proof of purchase of travel on the target airlines within he first four months of 

improved service.

2. Be a member (existing or new) of the target airline’s mileage reward program. 

Use of the Mileage Reward Program has the following strategic benefit:

•	 Promotes use of the service improvements during the start-up period

•	 Provides an incentive to break the habit of driving to Denver or Slat Lake City for air service

•	 Provides a mechanism to reach the high-value business flyer

•	 Vests travelers in the airlines mileage award program

•	 Provides a marketing hook

•	 Provides the airlines with up-front cash that is not a subsidy

GENERAL PUBLIC MARKETING

Successfully countering the propensity of Grand Junction’s travelers to drive to Denver or Salt Lake City 

to catch flights requires a well coordinated and aggressive marketing plan. It has to break existing travel 

habits. Also, enlarging the Airport’s catchment area is not small feat. This will require extensive research 

and outreach to outlying communities. This plan proposes to use paid advertising and promotion linked 

with Mileage Award Bonus Program to inform Grand Junction and surrounding areas of air service 

improvements. The Mileage Award Bonus Program will add an element of excitement to the marketing 

message that will stimulate interested and the community involvement. Nothing creates more interest 

like giveaway programs, and airlines miles are a tried and true marketing tool that is used by a wide array 

of vendors to promote sales.

Managed by the public-private partnership, the $175,000.00 marketing budget will fund a six month, 

multi-media program. Promotion will begin 60-days prior to the service improvement date and continue 

for six months. A significant portion of the budget will be expended during the first 120-days of the 

campaign; however, the total advertising promotion is planned for six months. The marketing message 

will be developed jointly by the partnership and the carrier and will focus on the features and benefits 

of the new service. The use of this message along with the promotion of the Mileage Bonus Award 

Program will effectively reach the general public and specifically, the business traveler. 
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| Grand Junction Regional Airport

ACTION PLAN

BUSINESS FLYER MARKETING

The public-private partnership will work to promote the air service improvements extensively to the 

business communities within the current Airport catchment area as well as the business communities 

that are just outside the catchment area. The partnership will work with area Chambers to participate 

in events, newsletters, e-mails, and mail-outs to promote the air service improvements and the Mileage 

Award Bonus Program. Working with the Chambers assures that the message and program targets the 

high-value airline customer, the business traveler. 

Administration and financial oversight of the Air Service Support Plan will be the responsibility of the 

Grand Junction Regional Airport Authority. The public-private partnership members will oversee the 

planning and execution of the marketing program. In-kind services for the public-private partnership are 

estimated to be at $15,000.00 total.

PROJECT CONTINUATION AND SUSTAINABILITY

If at the end of the first six months of service the airlines has not achieved a minimum of 60 percent 

average load factor, the Grand Junction Regional Airport Authority will extend the air service 

improvement marketing campaign for an additional three months. The Grand Junction Regional Airport 

Authority will commit $30,000.00 for this purpose.

Grand Junction’s business community and the Grand Junction Regional Airport Authority understand 

the difficulties associated with profitability operating air service to the Grand Junction market and the 

importance of making new service ventures successful. In the event adjustments are needed, this groups 

is committed to doing whatever it takes.

ALTERNATE PLAN

If the Grand Junction Regional Airport Authority fails to secure airline service to either a westbound or 

northeast bound destination, an alternate plan will be pursued to achieve the community’s goals. Some 

other options would be to:

•	 Secure additional service to an already existing hub servicing Grand Junction.

•	 Other services options that may surface during the research period. 
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FUNDING

Grand Junction Regional Airport is seeking $150,000.00 in United States Department of Transportation 

funding top be used for an air service improvement program to mitigate a portion of the participating 

airlines risk associated with improving air service. The community intends to participate in the funding 

of the program by contributing a portion of the air service marketing budget, in-kind marketing and 

promotional services, and program administration. The Grand Junction Regional Airport is familiar with 

the grant application guidelines and understands that grant funds are provided on a reimbursement basis. 

The table below provide the Action Plan budget broken down by element and sources of funding. 

DESCRIPTION

FUNDING SOURCE

US DOT AIRPORT NON-AIRPORT TOTAL

CASH CASH IN-KIND CASH IN-KIND

Airline Incentive Program:

Mileage Award Program $80,000 $5,000 $5,000 $90,000

General Public Marketing $70,000 $5,000 $10,000 $85,000

Program Administration $5,000 $5,000

TOTAL $150,000 $10,000 $5,000 $5,000 $10,000 $180,000

Percent of Total Project 83.3% 5.6% 2.8% 2.8% 5.6% 100.0%

ACTION PLAN
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| Grand Junction Regional Airport

SCHEDULE & MONITORING

Considering the ever changing nature of the airlines industry, it is difficult to precisely identify when 

the goals of the Action Plan will be realized. Accordingly, the public-private partnership has developed 

a realistic schedule to achieve the goals of this proposal. Admittedly, there is extra time built into 

the schedule, but the intent is to aggressively execute the Action Plan. This section identifies critical 

milestones to be achieves by the public-private partnership. A monitoring program is also provided to 

track the performance of the service improvements and progress of the project.

MILESTONES

The following milestones are proposed to track the progress of this air service initiative:

Service Start-Up

By July 2012, the public-private partnership will negotiate with a carrier for planned service. The 

schedule is to reach an agreement and begin service with a carrier prior to July 2012.

General Public Marketing 

Implement 60-days prior to service star date: Completion of the marketing plan associated with all the 

elements of the marketing program will be completed at least 90 days prior to the start of service. The 

plan will use the Mileage Award Bonus Program as a means to stimulate interest in the service. This 

timing of the marketing effort will, to a large degree, depend on how much lead time the airlines gives 

the community on the service announcement. 

Business Flyer Marketing

Implement 60 days prior to the start of service: The public-private partnership will coordinate with 

business organizations (Chambers of Commerce, Corporate Organizations and Clubs, etc...) to plan 

and execute a coordinated promotion program to their respective members. The Mileage Award Bonus 

Program will be a key element of this program.

Mileage Award Bonus Program

Service start date plus 120 days (or sooner): Award miles will be distributed to the travelers who fly 

on the airline that provides the new service within the first 120 days of service. Distribution of award 

miles will be on a first-come-first-serve basis, and the program will end when all bonus miles have been 

distributed.
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SCHEDULE & MONITORING

MONITORING PROGRAM

The performance of the air service initiatives, project budget, and effectiveness of the marketing 

campaign will be tracked. Timely tracking of some performance indicators will require the cooperation 

of the partner airline. The following service performance indicators will be tracked by the Grand 

Junction Regional Airport Authority:

•	 Monthly - Aircraft departures, cancellations, seats/service, passenger per flight, load factors by 

flight.

•	 Monthly for the first six months of service - Monitor published fares by category (walk-up, 

business, leisure) for the top 20 eastbound destinations.

•	 Quarterly for the first year of service - Monitor average airfares for the top 20 west bound and 

eastbound destinations and compare with the previous two years on a quarter by quarter basis.

•	 After the first 12 months of service, the Airport will complete a passenger diversion study to 

measure the diversion of travelers to Denver and Salt Lake City.

•	 At the end of the first year of service, compare origin and destination passengers for the top 20 

westbound and eastbound destinations with the previous two years.
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| Grand Junction Regional Airport