Proposal Under the Small Community 

Air Service Development Program

Docket:	 	 	 	 	 	 	 	 DOT-OST-2014-0113 

Sponsor:	 	 	 	 	 	 	 	 Sheridan County Airport 

	 	 	 	 	 	 	 	 	 Sheridan, WY 

Airport DUNS:		 	 	 	 	 	 169645892 

County DUNS:		 	 	 	 	 	 033802372 

Congressional District Code:	 	 	 	 WY-AL 

Tax ID:	 	 	 	 	 	 	 	 836000124 

Contact:	 	 	 	 	 	 	 	 John Stopka 

	 	 	 	 	 	 	 	 	 Airport Manager 

									 908 W. Brundage Lane, 

Sheridan, WY 82801 

(307) 674-4222

July, 2014

Sheridan County Airport 
Table of Contents

Summary Information	 	 	 	 	 	 	 	 	 	 3 

Proposal	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 8 

Air Service Challenges/History		 	 	 	 	 	 9 

Economic Impact	 	 	 	 	 	 	 	 	 	 	 	 15 

Plan And Overview	 	 	 	 	 	 	 	 	 	 	 16 

Priority Selection Criteria	 	 	 	 	 	 	 	 	 19 

Secondary Selection Criteria		 	 	 	 	 	 	 21 

Previous Project Goals	 	 	 	 	 	 	 	 	 	 23 

Letters of Support		 	 	 	 	 	 	 	 	 	 	 24

2
Summary Information

3
Summary Information

4
Summary Information

5
Summary Information

6
Summary Information

7
Proposal

8

Sheridan County, Wyoming is located midway between Yellowstone Park 

and the Black Hills at the foot of the majestic Big Horn Mountains. Home to 

nearly 30,000 residents, Sheridan County is a lively tourist area, with robust 

wildlife and a rich history. Sheridan’s economy is diverse, with large 

employers in the natural resources, tourism and railroad industries, as well as 

Federal and State government. Continued growth of these industries requires 

reliable, stable, and affordable connections to the U.S. air service network. 

Sheridan is applying for a SCASD grant for these purposes. 

Sheridan faces a set of unique challenges retaining and attracting new air 

service. Changes in the airline environment have caused fares to increase; 

capacity and reliability to drop. Sheridan is located in a remote geographic 

area; a 6-hour plus drive from either a large hub airport or city with a 

substantial low-fare presence. 

Only one airline serves Sheridan currently. Sheridan seeks a Small 

Community Air Service Development Grant to fund a revenue guarantee for 

nonstop service to a large hub by a second airline, securing the community’s 

link to the national air service network. 

Sheridan County Airport proposes funding a portion of this revenue 

guarantee with a $500,000 Small Community Air Service Development Grant. 

Federal funds will be combined with $1.3 million in cash funds from the State of 

Wyoming and $450,000 cash from local sources. An additional $50,000 in inkind contributions for landing fee waivers and marketing costs will also be 

provided. The total package of funds for this project will be $2,300,000. 

However, federal dollars will account for 22% of total funds for this revenue 

guarantee. 

Sheridan County and the State of Wyoming realize the importance of 

stable, competitive air service to the regional economy and are willing to fund 

nearly 80% of this revenue guarantee. 
Air Service Challenges

9

Sheridan County Airport currently has service to Denver on Great Lakes 

Airlines. Great Lakes currently three round-trips on 30-seat Embraer 120 

aircraft. 

However, levels of service have fluctuated over the years.

Sheridan-Denver: July, 2014

Airline Origin Dest Flt # Equip Seats Depart Arrive Freq

ZK SHR DEN 3023 EM2 30 715 840 1234567

ZK SHR DEN 3045 EM2 30 1225 1350 1234567

ZK SHR DEN 3007 EM2 30 1551 1716 12345.7

ZK DEN SHR 3045 EM2 30 1040 1205 1234567

ZK DEN SHR 3007 EM2 30 1401 1526 12345.7

ZK DEN SHR 3007 EM2 30 1530 1655 .....6.

ZK DEN SHR 3039 EM2 30 1855 2020 12345..

Capacity at Sheridan County Airport is well off peak 

levels. And the implementation of Part 117 at the airline 

currently serving the airport makes future capacity difficult to 

predict.

Seats Per Day Each Way

0

32.5

65

97.5

130

2004

20052006

2007

20082009

2010

2011

2012

2013

Jan 2014

Feb 2014

Mar 2014

Apr 2014

May 2014

Jun 2014

Jul 2014

Aug 2014

Sep 2014

Oct 2014

Nov 2014

Dec 2014

82 86 86 85 86 85 86 83 85 86 86 85 86

68

83

123

103 103

129

79

31

64

Departures Per Day

0

1.75

3.5

5.25

7

2004

20052006

2007

20082009

2010

2011

2012

2013

Jan 2014

Feb 2014

Mar 2014

Apr 2014

May 2014

Jun 2014

Jul 2014

Aug 2014

Sep 2014

Oct 2014

Nov 2014

Dec 2014

2.9 2.9 2.8 2.9 2.8 2.9 2.8 2.8 2.9 2.9 2.8 2.9

3.0

1.6

4.2

6.1

3.7 3.5

4.9

3.8

3.0 2.9

Flown Scheduled

Seats Down:

36% from Peak

Flights Down: 

52% from Peak
10

Air Service Challenges

More troubling than capacity, average fares at Sheridan County Airport have risen 

sharply over the past several years, and now are well above the U.S. average. 

Annual Enplaned Passengers Vs. Fare - SHR

Annual Passengers

0

5,250

10,500

15,750

21,000

Average Fare

$60

$120

$180

$240

2000

2001

20022003

2004

20052006

2007

20082009

2010

2011

2012

2013

Passengers Fare

$0

$60

$120

$180

$240

2000

2001

20022003

2004

20052006

2007

20082009

2010

2011

2012

2013

Sheridan Continental US Average

$176 $172 $166

$153

$139

$154 $144 $144 $132 $128 $132 $137 $143 $155

$219 $229

$199

$212 $200 $211

$178

$159

$104

$178

$213 $201

$220

$207

Sheridan’s airfares peaked in 2012. In 2013, Sheridan fares stood at $219 one-way. 

That’s $43 or 25% more than the average for the Continental U.S.. 

Sheridan meets one of the most important priority selection criteria for a Small Community 

Air Service Development Grant. Sheridan’s fares are consistently above average.
11

Air Service Challenges

% 

Rank

Airport City 2013 Ave 

Fare

81% CMI Champaign, IL, US $222

81% ESC Escanaba, MI, US $222

81% TLH Tallahassee, FL, US $221

81% CMX Hancock, MI, US $221

81% CRW Charleston, WV, US $220

80% MLU Monroe, LA, US $220

80% MHK Manhattan, KS, US $220

80% SHR Sheridan, WY, US $219

80% PUB Pueblo, CO, US $219

79% HON Huron, SD, US $219

Average Continental US $176

In 2013, Sheridan’s average 

U.S. Domestic fares were higher 

than 80% of 426 markets in the 

lower 48 states. 

Sheridan Vs. Denver Fares

100%

125%

150%

175%

200%

Average Fare

$100

$135

$170

$205

$240

2000

2001

20022003

2004

20052006

2007

20082009

2010

2011

2012

2013

Sheridan Denver CYS as & of DEN

While Sheridan County Airport’s average fares dipped slightly in 2013, they’re 

still consistently higher than the region’s largest hub in Denver. Over the past 

several years, Sheridan’s fares have been roughly 50% higher than Denver’s fares. 

Sheridan’s fares dropped between 2005 and 2007 due new service, new 

destinations and new competition at the airport. 
12

Air Service Challenges 

Recent passenger retention analysis 

demonstrates that Sheridan County Airport 

retains only 30% of airline traffic from its 

natural catchment area. 

However, in 2014, Sheridan County 

airport’s passenger retention has steadily 

and materially worsened, dropping to levels 

not seen before. 

New airline service would stimulate 

competition, lower fares and attract traffic 

from the 70-80% of passengers who are 

driving to other airports for air travel. 

New, competitive airline service 

would allow Sheridan County Airport 

to improve passenger retention from its 

currently very low levels and reduce 

the long drive a large percentage of 

residents are making to large hubs to 

access the U.S. air transportation 

network.

Passenger Retention Trends 

Sheridan County Airport

2010

2011

2012

2013

Jan-14

Feb-14

Mar-14

Apr-14

0% 25% 50% 75% 100%

82%

80%

83%

73%

69%

76%

76%

74%

18%

20%

17%

27%

31%

24%

24%

26%

Gillette 

Denver 5%

17%

Casper 

13%

Billings 

42%

Sheridan 

23%

Airport Usage YTD 2014 

Sheridan Catchment
Air Service Challenges 

13

Drive from Sheridan 

to:

Distance Drive 

Time

Ave. 

Fare

N/S 

Cities

N/S Flts. 

Day

Denver 432 mi 6hr $150 190 760

Salt Lake City 562 mi 9hr $184 96 320

Billings* 134 mi 2hr $202 12 28

Rapid City 258 mi 4hr $224 9 14

Sheridan’s air service needs 

cannot adequately be met by driving 

to nearby airports. 

The two closest airports, Billings 

and Rapid City, have high average 

fares and limited nonstop flights to 

limited destinations. 

Drive times to large nearby hubs 

with lower fares and more service 

are inconveniently long, especially 

when inclement weather is a factor. 

Affordable, reliable, convenient 

access to a large hub is necessary 

for Sheridan to recapture the leaking 

to other airports.		

* Excludes Intra-Montana flights
Air Service Challenges 

14

Reliability of air service has been one of Sheridan’s most pressing issues. 

Sheridan’s existing air service has performed well below U.S. Averages, both in 

delays and cancellations. These two factors are an important part of Sheridan’s 

ability to retain passengers from within its catchment area. If service is not 

reliable; if service is much worse than U.S. averages, Sheridan County Airport 

passengers will choose to drive to airports where the service is more reliable. 

Sheridan’s flights, on average, have been 10-20 percentage points worse than 

the U.S. average for delays for the past 2 years. 

Sheridan’s flights have been substantially more likely to be cancelled than 

other flights, on average. In 2014, 38% of Sheridan’s flights were cancelled, while 

only 1.5% of U.S. flights were cancelled. This is an abnormal level of cancellations 

for a U.S. airline. 

There can be no doubt that reliability at Sheridan County Airport is negatively 

impacting passenger traffic. Improved reliability is another reason Sheridan seeks 

additional air service. 

0%

10%

19%

29%

38%

2013 2014 (YTD)

21.8% 21.7%

31.6%

37.9%

Sheridan U.S. 

% Flights Delayed % Flights Cancelled

0%

10%

20%

30%

40%

2013 2014 (YTD)

3.3% 1.5%

38.0%

8.9%

Sheridan U.S. 
Air Service 

Economic Impact

15

2007 2011 2013

Passenger Segments 41,314 27,637 28,510

% Visitors to Sheridan 55% 55% 55%

Visiting Passengers* 11,361 7,600 7,840

Average Length of Stay* 4.8 4.8 4.8

Average Daily Spend $82 $82 $82

Incremental Dollars From Airport $4,471,827 $2,991,429 $3,085,922

Change since 2007 ($1,480,398) ($1,385,905)

* From 2010 Wyoming Department of Transportation Aeronautics economic impact study

The current level of air service in Sheridan is damaging the local economy. 

The decline in ridership over the past 7 years is costing the local economy at least 

$1.4 million annually. 

Sheridan seeks to bolster its economy by increasing traffic above and beyond 

2007 levels with new, competitive air service, benefitting local business and 

residents. 

A more recent 2013 study of economic impacts of commercial airports and 

airline services in Wyoming estimated the total off-airport and on-airport impact of 

Sheridan County Airport to be $23,418,570. 
Plan and Overview 

16

Sheridan County Airport plans to use state, local and SCASD funds to solicit a 

second carrier to serve the airport. Sheridan requests a $500,000 Small Community 

Air Service Development Grant to fund a $2.3 million dollar total revenue guarantee. 

Program Goals: 

Increasing local utilization of Sheridan County Airport.

	 	 Sheridan’s passenger retention is declining drastically in 2014. 

	 	 Only 15-25% of area passengers are estimated to currently use SHR. 

	 	 New, competitive airline service to a large hub with increased 

	 	 	 frequency and capacity will increase passenger retention.

Increasing reliability of airline service. 

	 	 The reliability of air service at Sheridan County Airport is much worse than 

	 	 U.S. averages. A new carrier would increase reliability and thereby increase 

	 	 passenger usage of the airport. 

Reducing airfares paid at Sheridan County Airport. 

	 	 Sheridan’s fares are well above the national average. 

	 	 New airline service should cause some price competition in Sheridan 

	 	 	 This has happened in the past. 

	 	 Better access to the U.S. Air Transportation Network. 

Additional airline service will provide better, more reliable 		 	 	 	

	 	 	 connectivity than currently exists at Sheridan.

Plan Specifics/Allocation of Funds: 

Revenue Guarantee: 

The revenue guarantee will be used to incentivize new airline service at Sheridan 

County Airport. The funds will be used to offset the new airline’s losses for up to three 

years after commencing service. Exact terms will be negotiated once grant money is 

awarded. 

Federal funds will constitute only 22% of the total revenue guarantee. 

78% of the funds will come from state and local sources. 

$500,000 Small Community Air Service Development Grant. 

$450,000 Local matching funds from 2 Wyoming counties & local businesses.

$1,300,000 State of Wyoming - Air Service Enhancement Program. 

$50,000		 In-kind contributions.
Plan and Overview 

17

Marketing/Advertising: 

Sheridan County Airport proposes $25,000 in reduced marketing costs for the new 

service. 

Facilities Use Abatements/Startup Costs Offsets: 

Sheridan County Airport proposes $25,000 in waiver of landing fees for the new 

airline. 

Other Costs: 

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

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

general operating funds. 

Oversight: 

The governing body of Sheridan County Airport, the Sheridan County Board of County 

Commissioners, will be responsible for all fiscal issues and D.O.T. reporting 

requirements. As a government entity, D.O.T. should be assured that proper financial 

oversight for implementation rests in the hands of the Commissioners. The Board of 

Commissioners understands that it is responsible for program expenditures and will 

submit invoices to D.O.T. for reimbursement based on the grant request. 
Plan and Overview 

18

Timeline: 

Assuming the Department of Transportation awards Small Community Air Service 

Development grants in late 2014, Sheridan County Airport will move as aggressively 

as possible to implement air service under the terms of the grant. Sheridan County 

Airport is already in talks with various airlines for additional service to the airport. 

Should Sheridan County Airport receive SCASD funds, it will solidify negotiations with 

those airlines and develop timelines and dates to begin new service. 

Legal Sponsor:

Sheridan County Airport is the legal sponsor of this proposal. The Airport will 

administer the programs outlined. The Sheridan County Airport is a government entity.
19

Priority Selection Criteria

Air fares are higher than the national average for all communities.

Sheridan’s air fares are higher than average. 

In 2013, Sheridan’s air fares were : 

25% higher than the U.S. average. 

43% higher than the nearest hub airport in Denver. 

The community or consortium will provide a portion of the cost of the activity from local 

sources other than airport revenues.

Sheridan plans to fund this revenue guarantee as follows: 

$500,000	 	 Small Community Air Service Development Grant 

$450,000	 	 Local matching funds 

$1,300,000	 	 State of Wyoming - Air Service Enhancement Program. 

$50,000	 	 In-kind contributions 

$2,300,000	 	 Total 

Federal Funding:		 	 22% of revenue guarantee. 

State/Local Funding:	 	 78% of revenue guarantee. 
20

Priority Selection Criteria

The community will establish a public-private partnership

Sheridan County has established a public-private partnership. 

Sheridan County Airport’s Task Force consisting of Sheridan and Johnson County

stakeholders began meeting in May of 2012. The task force renamed themselves as

the Critical Air Service Team (CAST) in October of 2012. The organization became a

501(c)3 in January of 2013. CAST has adopted by-laws and current officers are Bruce 

Garber, Chairman, Jay Stender, Vice President, and Angela Jarvis, Secretary. 

CAST is a multiple stakeholder group of citizens and government that are working to 

assure commercial service is in Sheridan, reliable, and cost effective. Members include, 

Representative from the Sheridan County Commission, City of Sheridan, Forward 

Sheridan, Sheridan Chamber of Commerce, Johnson County Chamber of Commerce, 

Sheridan Travel and Tourism, representatives from local Travel Agencies, oil and gas 

industry, financial institutes, and real estate agencies. 

The assistance will provide material benefits to a broad segment of the traveling public, 

including businesses, educational institutions and other enterprises, whose access to the 

national air transportation system is limited.

As only 15-25% of Sheridan County Airport’s catchment area airline traffic currently 

chooses to fly locally, additional service that attracts a larger percentage of traffic will 

naturally benefit a broad segment of the traveling public. 
21

Priority Selection Criteria

The assistance will be used in a timely manner

As Sheridan County Airport’s passenger retention issues worsen, Sheridan has 

begun to make contingency plans to reverse this process. Sheridan is prepared to act 

immediately to solicit an airline for new service to the airport. 

Secondary Selection Criteria

Innovation

Wyoming’s Air Service Enhancement Program (ASEP) is unlike any air service 

development program in the United States. The State of Wyoming combines state funds 

with local funds to attract and retain air service within the state of Wyoming. The 

program was originally funded at $6M per biennium. 

The primary goals of ASEP are to: 

	 	 Work with existing airlines to improve operational reliability 

	 	 Work to make airfares affordable. 

	 	 Increase passenger retention of Wyoming airports. 

	 	 Ensure airlines are financially stable to operate in Wyoming. 

	 	 Achieve financial stability in existing Essential Air Service markets. 

The program funds a number of routes within the state. 

Sheridan seeks to combine Federal funds with those from this unique program to 

augment Sheridan County Airport’s air service. 
22

Secondary Selection Criteria

Participation

Efforts to attract new airline service to Sheridan have always enjoyed broad 

community support. The State of Wyoming’s and Sheridan area’s willingness to fund 

80% of the proposed minimum revenue guarantee demonstrates that commitment. 

Location

Other Factors

The proposal directly addresses Sheridan’s stated problems: 

New competitive airline service will: 

	 	 Reduce fares 

	 	 Increase enplanements 

	 	 Positively benefit the Sheridan and Wyoming economies. 

Sheridan’s air service is decreasing, and the airport seeks to reverse this trend. 

Sheridan has access to Wyoming’s Air Service Enhancement Program to continue 

	 	 financial support for this project (if necessary)after SCASD funds have expired. 

The proposed Federal funding is only 20% of the total revenue guarantee. 

Sheridan’s geography is unique. Wyoming is the least populated state in the United 

States. Sheridan is located in a remote portion of Wyoming, with long drives to hub 

airports that can provide acceptable access to the U.S. air transportation network. 

Sheridan County Airport is not proximate to an existing or prior grant recipient, 

and, therefore, award of a SCASD grant would have no negative impact on Sheridan’s 

proposal or another active SCASD recipient. 
Previous Project Goals

23

Sheridan County Airport’s 2014 Small Community Air Service Development Grant 

application differs substantially from the 2005 SCASD grant awarded to the State of 

Wyoming. 

The 2005 Wyoming grant was used to correct misperceptions about Wyoming’s air 

service through an advertising/marketing campaign. The 2005 grant was also used to 

increase passenger retention across all Wyoming airports. Although that grant was 

successful for the state, the 2014 grant application is geared mainly to attracting and 

funding new airline service at a specific airport with specific air service issues, rather 

than marketing existing air service. 
Letters of Support

24