1 

Proposal 

Provo City Corporation, Utah 

United States Department of Transportation 

Office of Aviation Analysis 

Small Community Air Service Development Program 

Application under the: 

 -Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) 

As Reauthorized by the: 

 -Vision 100-Century of Aviation Reauthorization Act 

Proposal Sponsor: Provo City Corporation 

Contact: Mr. Steve Gleason

Airport Manager

Provo Municipal Airport

351 West Center Street

PO Box 1849

Provo, Utah 84603

 

Docket: OST-2010-0149

Date: August 27, 2010
2 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET OST-2010-0149 

SUMMARY INFORMATION FOR PROVO: 

A. Applicant Information: 

 This is not a consortium. 

 

B. Public/Private Partnership: 

 Public: Private:

 1. Provo City Corporation 1. Utah Valley Chamber of Commerce Members 

2. Provo Economic Development 

3. Utah County 

(Collectively the Provo community) 

C. Project Proposal: 

 X Marketing _ _ Upgrade Aircraft _X _ New Route 

___ Personnel _ Increase Frequency _X_ Low Fare Service 

_ _ Travel Bank __ Service Restoration _X__ Subsidy 

___ Surface Trans. Regional Service ___ Other 

_X_ Revenue Guarantee _X_ Launch New Carrier 

_X Start Up Cost Offset First Service 

_ Study __ Secure Additional Carrier 

D. Existing Landing Aids at Local Airport: 

_X Full ILS _X _ Outer Marker __X__ Other (Radar/GPS) 

 _X _ Localizer _X _ Published Instrument Approach
3 

E. Project Cost: 

1. Federal Amount Requested: $500,000 

2. State Cash Financial Contribution: $0 

3. Local Cash Financial Contribution-- 

 3a. Airport Cash Funds: $0 

 3b. Non-Airport Cash Funds: $50,000 

 3c. Total Local Cash Funds: $0 

4. TOTAL CASH FUNDING: $50,000 

5. Local Funds Contributed from Already-Existing 

Programs or Projects included in Line: $0 

6. Local Funds Contributed from New Commitments 

Or New Resources included in Line 3c.: $0 

 7. Airport In-Kind Contribution: $50,000 

 8. Other In-Kind Contribution: $50,000 

 9. TOTAL IN-KIND CONTRIBUTION: $100,000 

10. TOTAL PROJECT COST: $650,000 

F. Enplanements: 

___0____ 2000____1,086___ 2001____333__ 2002____800___ 2003____882__ 2004

___948___ 2005__1,070_ 2006___595___ 2007_ _712 _ 2008 _ _1,568 _ 2009

Source: ACAIS; Note: Operations are Air Taxi Charter, No scheduled service 

G. Is this application subject to review by State under Executive Order 12372 

 Process 

 

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

 12372 Process for review on (date) _________. 

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

 review. 

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

H. Is the Applicant Delinquent on any Federal Debt? 

 

_X_ No 

___ Yes (explain) 
4 

TABLE OF CONTENTS 

Subject Page

Executive Summary 1 

 

Introduction 5 

Major Issues 6 

 Role of the Provo Airport 7 

Factors That Have Affected Air Service 8 

Catchment and Community Profile 8 

Market Analysis 10 

Potential Passengers 12 

Potential Air Service 13 

Proposed Fares 14 

Passenger and Revenue Forecast 14 

Action Plan for the Provo Airport 15 

Public-Private Partnership 15 

Project Goals 15 

Action Plan Elements 15 

Marketing Program 15 

Target Audience 15 

Marketing and Media Selection 16 

Total Incentive Package 16 

Sponsor Participation 16 

Performance Measurement 17 

Recruitment of Air Service 17 

Marketing and Media Plan 17 

Air Service Performance 17 

Community Support 17 

Assurances 18 

Appendix A - Letters of Support 

 (Note Congressional Letter sent directly to Secretary LaHood) 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

1 

EXECUTIVE SUMMARY 

For purposes of this executive summary, we have identified and summarized the 

bulleted and checked items directly from the 2010 Order to ensure a comprehensive, 

competitive response. The Order says our application should help communities secure 

air service enhancements that will be responsive to their air transportation/air fare 

needs on a long-term basis after the financial support of the grant has ended. 

Specifically, the Order identifies the following items and our response follows each. 

1. Promoting awareness among residents of locally available service. 

Government and business teaming for informal air service recruitment efforts were 

initiated some years ago and continue to represent the Provo community. These ongoing air service efforts and economic development efforts represent almost every 

local constituency, and fully meet the intent and spirit of a public-private partnership. 

2. Attracting a new carrier through revenue guarantees or operating cost 

offsets. 

As you will read in this application, the Provo community is supporting this air 

service effort by providing $150,000 worth of support. Provo City Corporation has 

already spend in excess of $100,000 to obtain scheduled air service. 

3. Attracting new forms of service, such as on-demand air taxi service. 

While the Provo community is herein intending to attract low-cost scheduled air 

service and this application is written to seek support to make that happen, we 

believe non-scheduled charter activity will continue to be an important part of the 

airport’s suite of services. 

4. Offering an incumbent carrier financial or other incentives to lower its 

fares, increase its frequencies, add new routes, or deploy more suitable 

aircraft, including upgrading its equipment from turboprops to regional 

jets. 

Although the Provo Municipal Airport does not have an incumbent carrier, we 

propose to add a new route in cooperation with an existing low-cost carrier. 

5. Combining traffic support from surrounding communities with regionalized 

service through one airport; or providing local ground transportation service 

to improve access to air service to the community and the surrounding area. 

The Provo Municipal Airport is increasingly becoming an important part of the ability 

of our business community to remain competitive and for the citizenry’s local 

access to the national air transportation system. The Provo community believes that 

the airport, in this regard, will only increase in scope and role. There are several 

cities, towns, and counties within the catchment area outside of Utah Valley. 

In addition, the Order notes these as important: 

6. A description of the community's existing air service. 

A detailed description may be found in the Proposal section of this application. 

7. A synopsis of the community's historical service. 

A detailed description may be found in the Proposal section of this application. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

2 

8. A description of the community air service development efforts over the 

past five years and the results of those efforts. 

A detailed description may be found in the Proposal section of this application. 

9. A description of the community air service needs or deficiencies. 

A detailed description may be found in the Proposal section of this application. 

10. A strategic plan for meeting those needs under the Small Community 

Program, including: 

The Action Plan for the Provo Airport contains the strategic plan. 

(1) Clear identification of the target audience of each component of the 

proposed transportation initiative, including all advertising and promotional 

efforts. 

The target audience for this application is the Denver-bound/connecting traveler 

based upon our recent air service market analyis. The primary reason for working 

through Denver International Airport as proposed is for its connecting ability. 

Advertising and marketing is contained in the Action Plan section. 

(2) A realistic timetable for implementation of the grant project. 

As outlined in the Action Plan section, initiation of the service would begin as soon 

as the service is funded with the SCASDP grant and coordinated with the airline. 

(3) An explanation of how the service will become self-sufficient. 

As outlined in the Action Plan section, self sufficiency is demonstrated with the 

appropriate load factor and yield. Advertising, promotions, and a public relations 

program are all part of the marketing program to support the air service. 

(4) A clear outline the goals and objectives sought to be achieved. 

The goal is to bring low-cost scheduled air service to the Provo community from 

Denver International Airport. 

11. A description of any public-private partnership that will participate in the 

project. 

Provo City Corporation and the Provo business community (the public-private 

partnership) represent public and private local interests in this regard. Other 

surrounding counties will also benefit and may be asked to participate in the future. 

12. A detailed description of the funding necessary for implementation of the 

service, including the federal and non-federal contributions. 

The grant amount requested is $500,000 while airport and community cash and inkind contributions total $150,000 for a total proposal amount of $650,000. More 

details are found in the Action Plan section. 

13. An explanation of how the community will ensure that its own funding 

contribution is spent in the manner proposed. 

Provo City Corporation will ensure that funds are spent timely and wisely. 

Explanation is found in the Performance Measurement section. 

14. A description of how the community will monitor the progress of the grant 

project and the identity of critical milestones to be met during the life of the 

grant. 

A description of our responsiveness in this regard found in the Performance 

Measurement section. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

3 

15. A description of how the community plans to continue with the project if it 

is not self-sustaining after the grant award expires. 

We believe that we have prepared a very strong proposal for DOT consideration. 

The Provo community has committed to $150,000 in local funds, of which $50,000 is 

local cash. The Provo Community is committed to the six-month start up period and 

our estimates of demand herein show potential for a substantial increase in demand 

as the market matures. 

16. Designation of a legal sponsor responsible for administering the program. 

Provo City Corporation with minimal assistance from the business community and 

substantial assistance from the Airport Manager and outside consultants will 

administer the grant and the activities outlined in the Action Plan section. 

Also, the Order indicates that priority will be given to those applicants who 

competitively answer these inquiries: 

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

Given that no scheduled service exists, this question does not apply. 

18. The community or consortium will provide a portion of the cost of the 

activity from local sources other than airport revenue sources. 

The Provo community proposes to provide nearly $100,000 of in-kind funding for 

the proposed service over a year. 

19. The community or consortium has established or will establish a publicprivate partnership to facilitate air carrier service to the public. 

The Provo community (the public-private partnership) is established and has 

engaged air service recruitment efforts and strategies. 

20. The assistance will provide material benefits to a broad segment of 

the traveling public, including business, educational institutions, and 

other enterprises, whose access to the air system is limited. 

We expect that the grant will be used to establish a new profitable route for a 

national air carrier, a new low-cost way for the residents of the Utah county and 

surrounding counties (catchment area) to connect to the world’s air 

transportation system and provide for a substantial economic benefit to the 

residents and businesses of the Utah Valley. Several educational institutions 

exist within the catchment area, including as Brigham Young University with a 

35,000 student population and the LDS Missionary Training Center where 

25,000 students are trained annually. 

21. The assistance will be used in a timely manner. 

The Provo community anticipates that assistance will be drawn on a monthly 

basis until exhausted. 

22. The relative size of each applicant community. 

As can be seen in the Major Issues section of this application, we are a community 

with a relatively small number (673,000) of citizens, fitting the spirit and intent of the 

Small Community Air Service Program. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

4 

23. The geographic location of each applicant, including the community's 

proximity to larger centers of air service and low-fare service alternatives. 

Provo is approximately 55 miles south from the Salt Lake City Metropolitan area, 

separated by a congested Interstate 15 drive. 

24. Whether the community's proposal, if successfully implemented, could 

serve as a working model for other communities. 

Not only do we believe that this model will be successful, but believe variants of 

this model have been successful elsewhere. We hope to refine and improve upon 

previous business models and share that information with those to follow. 

25. Current demographic indicators for the community, such as population, 

income and business activity. 

The Major Issues section contains this information. 

26. The community's demonstrated commitment to and participation in 

the proposed grant project. 

The Provo community is committed to attracting low-cost air carrier service and we 

believe the service will be sustainable given the market analysis conclusions 

reached in upcoming pages. 

27. The grant amount requested compared with total funds available for all 

communities. 

The Provo community believes that our proposed assistance figure is large enough 

to be effectual but small enough to make us competitive. 

28. The proposed federal grant amount requested compared with the local 

share offered. 

The Provo community believes that our proposed share is comparable to what may 

be found in other competitive applications. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

5 

PROPOSAL OF PROVO AIRPORT (PVU) 

Introduction 

The Provo community has for a number of years been preparing the Provo Municipal 

Airport (PVU) to be the commercial airport for the Utah Valley, a market catchment area 

of approximately 673,000 people. 

This catchment area 

includes Utah County 

and five smaller counties 

to the south. The Utah 

Valley comprises 

approximately 22% of 

the economic base of 

the Wasatch Front. 

Sabre MIDT data 

indicate that 17% of the 

originating passengers 

from the Wasatch Front 

are from Utah County 

alone, with a population 

of 545,000. 

Community leaders 

believe that 

passenger air service 

with jet equipment to key 

markets in the west will 

help to continue the 

development of area 

business. To add new 

air service at Provo 

Municipal Airport, the 

airlines need to view 

Provo Municipal Airport 

as being more beneficial 

to their long term goals 

than other airports. 

Airlines are seeking 

route profitability, good facilities, community support, available resources for long term 

improvements, and limited competition. Initial or short-term incentives such as reduced 

fees, free rents, and promotional funds will be necessary to attract new air service. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

6 

New commercial air service at Provo Airport will produce new jobs and bring revenue to 

the community. Revenue from new air service will create visitor expenditures at hotels, 

restaurants, car rentals, and local shops. The Airport will receive new fees in the form of 

terminal rents, landing fees, fuel flowage fees, and passenger facility charges. The new 

airline will purchase fuel, supplies, and crew meals. All of these expenditures will 

translate into new jobs. 

Eight other airports in the west, serving cities approximately the same size as the Provo 

Municipal Airport market, average 28 jet flights and 17 commuter flights per day. The 

top twenty air markets for Salt Lake City International Airport have historically accounted 

for approximately 60% of the total passengers for the Airport. Fourteen of these top 20 

markets for Salt Lake City International Airport are located in the western states. It is 

expected the same trend will hold true for Provo Municipal Airport. 

The Provo Municipal Airport market is a significant part of the total Salt Lake City 

International Airport market. The Provo Municipal Airport market area has 26.8% of the 

population, 23.6% of the households, 20.6% of retail sales, and 22.2% of the buying 

income for the entire region. A weighting of these economic indices gives the Provo 

Municipal Airport market area a 20.1% share of the total air travel market. 

Based on Sabre MIDT data for the Provo Airport market area, the current passenger 

potential to all points in the United States is 718,000 annual passengers. 

The passenger forecast for Provo Airport indicates that there is a large enough demand 

to support daily jet flights to DEN, DFW, LAS, LAX, PHX, SFO and SEA. Utilizing fares 

comparable to the average fares at Salt Lake City International Airport, flights to 

Denver, Los Angeles, Phoenix, Portland/Seattle, and Las Vegas are projected to be 

profitable with standard twin jet aircraft. Service to and from Los Angeles will be very 

attractive for the international market and service to Denver will be very attractive for 

customers connecting to the midwest, east, or southeast. 

Today, catchment area passengers must drive to Salt Lake City International Airport on 

a very congested freeway (Interstate 15) and the drive can take as much as two hours 

depending on traffic conditions and the origin of the drive. Furthermore, major 

construction is expected over the next two years on this interstate. This will be a 

substantial hassle and will play a large role in the potential initialization of air service. 

Major Issues 

Due to drastic shifts in the commercial aviation business model, the air traveler in the 

United States has had to endure a much longer transit time through airports, higher load 

factors and poorer service on the airlines, and a reduction of flights and seats to many 

markets has occurred. Security measures implemented after 9/11 often require air 

travelers to arrive at an airport two hours in advance of departure for domestic flights 

and three hours in advance of departure for international flights. Travelers ticketed on 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

7 

commercial service providers located at hub airports having increasingly endured longer 

lines for checking in, checking baggage and for passing through the security gates. 

To remain competitive and profitable, airlines continue to cut costs through reducing 

employee wages/benefits, staffing levels and discontinuing non-performing routes. 

Morale issues with remaining airline staff have impacted customer service levels with 

the traveling public. Several carriers have exited the industry, while mergers and 

takeovers have affected other major service providers (i.e.-Delta/Northwest; 

Republic/Frontier, etc.). Industry consolidation has been expected for some time but 

seems to be just now gaining momentum while increasing passenger loads continue to 

strain capacity and profitability even in the current economic uncertainty. 

With new marketing strategies to retain market share, increase revenue and enhance 

brand recognition, commercial air service providers are opting to expand air service to 

smaller airports. This program makes it easier for the air traveler that lives or works near 

these smaller airports to more easily reach business or personal destinations and also 

reduces the congestion at the major airports by spreading out the passengers and 

flights to other airports. 

The Role of Provo Airport 

The Provo Municipal Airport is currently a general aviation airport and an commercial 

service alternate for Salt Lake City International Airport. The Provo Municipal Airport fits 

the classic role of a satellite airport. Provo Municipal Airport is sponsored, owned and 

operated by Provo City Corporation. The Airport's budget is approved by the City and 

any annual deficient is made up solely by the City. As such, any "In-Kind" contributions 

made by the Airport toward this grant request are a subsidy of the City. Provo Municipal 

Airport is managed by an Airport Manager that reports to the City Department of Public 

Works. 

The Provo Municipal Airport is designated a Part 139, Class 1, Category III facility. 

Provo Municipal Airport has completed major improvements to its runways and aprons. 

The Provo Airport presently accommodates charter operations, small cargo, air taxi 

operations, general aviation, aircraft storage, and aircraft maintenance and repair. 

Provo Municipal Airport is minutes from Interstate 15 giving it easy access to all 

communities in the catchment area. 

The primary runway is 8,600 feet long by 150 feet wide with high intensity lighting, a 

140,000 pavement strength rating, ILS/DME and GPS approaches, VOR on the field, 

Air Traffic Control Tower and Radar. These are the necessary aviation infrastructure 

items to safely accommodate airline traffic. Initially, passengers will utilize Millionaire 

Aviation Terminal; check-in counters for two airlines, a departure lounge with security 

and a common baggage claim area all exist within the building. Discussions with TSA 

regarding space, security equipment and personnel have already occurred and await a 

carrier. Parking and rental cars are currently available right in front of the current 

terminal. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

8 

Factors That Have Affected Air Service 

Provo Municipal Airport does not have scheduled passenger air service. The Salt Lake 

City International Airport, in the past, has been able to meet the air travel needs of the 

total metropolitan area. In the past few years getting to and using Salt Lake City 

International Airport has become difficult and time consuming. 

The development of a satellite airport in the Salt Lake City metro market would help 

eliminate congestion and lost time for air travelers. Provo Municipal Airport is the ideal 

location for a satellite airport in the region. In the past, the Airport did not meet the air 

carrier standards for passenger air service. Now the Airport has insrastructure that can 

accommodate standard twin jet aircraft and scheduled service jet aircraft. The Provo 

Municipal Airport has a privately-owned air terminal that can accommodate regional 

passenger air service. The Provo Municipal Airport also owns land that can 

accommodate a new modern terminal if the passenger and flight demand becomes 

large enough. The current Airport Master Plan anticipates this possibility. 

The Air Service Market Study indicates that the catchment area for Provo Municipal 

Airport is large enough to support passenger air service to major hub markets. Airport 

Management has upgraded the Provo Airport to meet the operational requirements of 

the commercial airlines. Based on other metro areas with multiple airports, the Provo 

Municipal Airport is well located in the Salt Lake metro area and should be attractive to 

the travelers in its region and allow the airlines the ability to operate either regional jets 

or standard twin jets. 

Catchment Area and Community Profile 

The Provo Municipal Airport is a convenient airport for the residents of Utah Valley, 

Utah County and five counties to the south and to the east. The dividing point between 

Provo Municipal Airport and Salt Lake City International Airport, in terms of distance and 

driving time, is the “point of the mountain”. This a geological (Salt Lake/Utah Valley) and 

cultural (Salt Lake/Provo-Orem) dividing line of the Salt Lake Metropolitan Area. 

The Provo Municipal Airport catchment area encompasses a population of 

approximately 673,000 and 194,000 households. 

County Population 2000 2009 Growth

Utah 368,540 545,307 48.0% 

Carbon 20,425 19,989 (2.2%) 

Duchesne 14,371 17,948 24.9% 

Juab 8,238 10,244 24.4% 

Millard 12,405 12,276 (1.1%) 

Sanpete 22,763 25,946 14.0% 

Sevier 18,842 19,976 6.0% 

Wasatch 15,215 21,600 42.0%

Totals 480,659 673,286 40.1% 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

9 

Total retail sales for the catchment area approximate $7.7 billion. Approximately 32% of 

the area households have an annual buying income in excess of $50,000. 

County Housings Sales($) Buying Income ($)

Utah 143,052 6,105,784 7,125,712 

Carbon 9,127 296,113 308,690 

Duchesne 8,125 224,307 228,015 

Juab 3,522 134,058 121,167 

Millard 4,857 135,632 182,975 

Sanpete 8,637 179,318 285,380 

Sevier 7,846 361,416 282,590 

Wasatch 9,660 271,461 432,972

Totals 194,825 7,707,819 8,967,501 

Brigham Young University and Utah Valley State University are a great source of air 

travel for the catchment area. The Universities each enroll of 35,000 students who come 

from all over the United States and from foreign countries. Both Universities have a 

large demand for business travel, sports charters, individual student travel, and visiting 

friends and relatives. The Missionary Training Center is also a major force for travel. It 

moves 25,000 to 30,000 missionaries annually. Other major employers include: 

Ameritech Library Systems, Novatek, Convergys, Corel, Folio Corporation, Micron 

Technologies, Nature’s Sunshine, Nimbus Manufacturing, Novell, Nestle, Nu Skin, 

Powder River Manufacturing, Power Quest Corporation, Symantec, Intel and Viewsoft. 

Employment Sector Percent of Total

Education and Health Services 20.8% 

Trade, Transportation, Utilities 16.1% 

Government 14.5% 

Professional and Business Services 12.0% 

Manufacturing 10.7% 

Leisure and Hospitality 7.8% 

Construction and Mining 7.3% 

Information Technology 4.4% 

Financial 3.7% 

Other Services 2.4% 

The airport is also a gateway for tourism. There are five ski areas, Alta, Brighton, 

Snowbird, Solitude and Sundance that are within thirty minutes of the Provo Municipal 

Airport. When trying to plan the perfect Utah family vacation, there is no better 

destination than Provo. With the beauty of the scenery, diversity of the activities, and 

abundance of family attractions including: skiing, hiking, horseback riding, fishing, 

rafting, and biking. Utah Valley is the gateway to the following recreational 

opportunities: Utah Lake, Thanksgiving Point, Timpanagos Cave, Seven Peaks Resort 

Water Park, Provo Town Square and the BYU Earth Science Museum. Approximately 

2,700 hotel rooms exist in the City with rates ranging from $29 to $395 per night. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

10 

MARKET ANALYSIS 

The Provo Municipal Airport market area exhibits the characteristics of other successful 

satellite airports like Orange County and Burbank: 

• The catchment area is experiencing positive economic growth, and citizens and 

businesses in the area are seeking a more convenient way to travel by commercial 

airline than the major airport. 

• There is heavy highway congestion from the market area to the major airport and 

this creates long driving times, extra hassle and adds to area pollution. 

• The major airport suffers from long lines and long waits to process through the 

security area. 

• Lower fares to regional markets can be obtained at the satellite airports. 

Given a mature air service market and the catchment area population, the Provo 

Municipal Airport can effectively accommodate a substantial number of passengers and 

markets. Other mature market satellite airports, like Colorado Springs for example, have 

a number of daily non-stop departures. 

Community Population Non-Stop Markets

Provo, UT 673,000 0 

Colorado Springs, CO 608,510 9 

Boise, ID 594,960 17 

Eugene, OR 343,960 8 

Grand Junction, CO 137,700 6 

Idaho Falls, ID 166,070 5 

Spokane, WA 468,000 14 

Reno, NV 453,400 13 

Almost all of the catchment area passengers are using Salt Lake City (SLC) 

International Airport. Based upon Sabre MIDT data, the catchment area generates 

850,000 passengers per year. Catchment area bookings account for 17% of SLC 

initiated passengers in the top 50 city-pair markets and 11% of catchment area 

passengers are internationally-bound. 

Catchment Area Community Bookings Daily Pax City Share

Provo 588,814 1,613 69.1% 

Orem 148,462 406 17.4% 

American Fork 73,068 200.2 8.6% 

Price 31,559 86.5 3.7% 

Lindon 5,636 14.7 0.6% 

Payson 3,383 9.3 0.4% 

Lehi 1,936 5.3 0.2%

Totals 852,583 2,335 100% 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

11 

Given that Provo Municipal Airport does not currently have scheduled air carrier service, 

SLC data from Sabre MIDT data for 2009 were used to infer market share. The 

following table shows 661.6 average daily SLC enplanements bound for DEN and that 

139.0 per day (50,735 annually), or 12%, of them originated from the Provo catchment 

area. Of course, not all those passengers connected through Denver. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

12 

An annual number of passengers for the potential Provo market can then be calculated 

from the top city-pair SLC markets from the Sabre data:

Market SLC PDEW SLC Annual PVU Share PVU Potential Passengers

SLC – DEN 661.6 482,970 21% 101,423 

SLC – LAX 618.9 451,800 18% 81,324 

SLC – BUR 72.3 52,780 16% 8,445 

SLC – LGB 430.1 313,970 16% 50,235 

SLC – ONT 111.6 81,470 25% 20,367 

SLC – SNA 272.1 198,630 13% 25,822

LA Area Totals: 1505 1,098,650 -- 186,193 

SLC – SFO 255.9 186,800 20% 37,360 

SLC – SJC 121.1 88,400 27% 23,868 

SLC – OAK 341.4 249,220 24% 59,813

Bay Area Totals: 718.4 524,420 -- 121,041 

SLC – LAS 795.0 580,350 12% 69,642 

SLC – DFW 265.5 193,810 29% 56,205 

SLC – PHX 672.3 490,780 9% 44,170 

SLC – SAN 526.8 384,560 12% 46,147 

SLC – SEA 490.7 358,210 13% 46,567

Grand Totals: 5,635.3 4,113,750 -- 671,388 

 

Based upon the above information, the potential airlines and markets are as follows: 

DEN: Frontier, United DFW: American SFO: United, Southwest 

LAX: Southwest, United OAK: Southwest SEA: Alaska 

LAS: Allegiant; Southwest PHX: USAir, Sun Country, Allegiant 

Potential Passengers

Based on these potential passengers, there are a number of airports that are large 

enough to support service from Provo: Denver, Los Angeles International, Long Beach, 

Oakland and Las Vegas. All five of these markets are prime candidates for new air 

service and would need the incentive package to support the recruitment of air service. 

A decision was reached to solicit Frontier Airlines from their Denver hub. This route has 

the greatest potential for success because it has more potential passengers than any 

other city. The community wishes a low-cost carrier and because Frontier’s operation at 

Denver offers easy, one-stop flights to the eastern, southern and northern US along with 

the potential for international flights. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

13 

Because of Denver’s hubbing ability, additional city-pairs should be included in the 

potential passenger counts. Also, it is not reasonable to assume that the service will 

capture the entire market; an 80% share of the market is assumed for the Denver route 

and a 20% share is assumed to connecting cities. SLC Sabre data for the connecting 

cities was used: 

Market PVU Potential Pax Market Share Potential Pax

PVU to Denver 101,423 80% 81,160 

PVU to Atlanta 32,850 20% 6,570 

PVU to Albuquerque 26,940 20% 5,390 

PVU to Chicago-MDW 44,680 20% 8,940 

PVU to Dallas DFW 56,360 20% 11,270 

PVU to Detroit 13,500 20% 2,700 

PVU to Ft. Lauderdale 9,560 20% 1,910 

PVU to Houston 11,600 20% 2,300 

PVU to Kansas City 13,720 20% 2,740 

PVU to Minneapolis 20,000 20% 4,000 

PVU to New York JFK 66,360 20% 13,270 

PVU to Orlando 34,740 20% 6,950 

PVU to St. Louis 18,840 20% 3,770 

PVU to Tampa 7,800 20% 1,560 

PVU to All Others 20,000 20% 8,000

Total 160,540 

Potential Air Service 

Provo City and Frontier representatives met at the recent ACI Jumpstart Conference to 

discuss the proposal. Frontier planning staff indicated a willingness to investigate the 

proposal and Provo City representatives will again meet with Frontier Airlines staff on 

September 2, 2010 to flesh out details. Provo feels that Frontier is supportive of the 

proposal, but simply needs a bit more time to finalize market planning. Frontier Airlines 

has provided a support letter found in the Appendix following this narrative. 

To determine the revenue guarantee that may be needed, the Provo-Denver market 

was analyzed. It is estimated that it will take approximately 50,000 annual origin and 

destination passengers to support two daily round trip flights per day with ERJ-145, 50 

seat regional jet equipment. 

Both Frontier and Provo agree that there will be a ramp-up period of passengers and 

revenue until Frontier reaches its full market share. In this instance, it is assumed that 

the ramp-up period will take approximately six months. 

Listed on the next page is a sample schedule that will meet local needs as well as 

connecting needs.
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

14 

POTENTIAL FLIGHT SCHEDULE 

Non-Stop Market Depart Arrive Aircraft Frequency

Provo - Denver 6:15 am 7:25 am ERJ-145 Daily 

Denver - Provo 6:05 pm 7:15 pm ERJ-145 Daily 

Provo - Denver 9:15 am 10:25 am ERJ-145 Daily 

Denver - Provo 3:50 pm 5:00 pm ERJ-145 Daily 

Proposed Fares 

Because many of the passengers on this new route are expected to be connecting, 

special attention will be required to make sure that the fares are competitive and that 

times are coordinated with Denver banks. Fares to Denver will need to be competitive 

with SLC in order to attract passengers and develop the passenger base. 

Passenger and Revenue Forecast 

Prudent planning for this proposal suggests that Provo will have a conservative 

penetration rate for the planned four daily flights. It is estimated that the Frontier will 

achieve a 50% load factor in the first month and increase five percentage points until it 

reaches a 75% load factor in month six. This assumption is based on experience at 

other markets in the west which have introduced new service to an airport that did not 

previously or recently have air service. Based on these ramp-up assumptions and small 

increases in fares through the start up period, it is estimated that the airline will achieve 

80% market penetration in the Provo-Denver route following month six and reach a near 

break-even point. 

SUBSIDY REQUIRED FOR SIX MONTHS OF OPERATIONS 

Month Load Fare Pax. Revenue Expense Profit(Loss) Cumulative

1 50 $95 2,200 $209,000 $396,000 ($187,000) ($187,000)

2 55 $100 2,420 $242,000 $396,000 ($154,000) ($341,000)

3 60 $100 2,640 $264,000 $396,000 ($132,000) ($473,000)

4 65 $115 2,860 $328,900 $396,000 ($67,100) ($540,100)

5 70 $115 3,080 $354,200 $396,000 ($41,800) ($581,900)

6 75 $115 3,300 $379,500 $396,000 ($16,500) ($598,400)

During the start up phase, it is estimated that the Provo Community will need a revenue 

guarantee of $598,400 to cover initial six-month operating losses. On an annualized 

basis, the new route is projected to produce $4,806,000 in passenger revenue. 

Operating costs are estimated to be $4,752,000, resulting in an operating profit for 

regional jet service. Note that the 41,400 passengers generated under this scenario are 

substantially less than the 160,540 potential passengers noted on the previous page 

and half of the potential 81,130 passenger count just to Denver. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

15 

ACTION PLAN FOR PROVO AIRPORT 

Public-Private Partnership 

The Provo Municipal Airport is administered by the Provo City Corporation through its 

Airport Manager, Mr. Steve Gleason. The Utah Valley Chamber of Commerce and its 

members constitute the private portion of the Partnership. Members of the Chamber are 

key leaders from the major businesses in the Valley. Both the City and the Partnership 

know that continued economic development depends on low-cost scheduled air service 

with flights via a hub. 

The Partnership is committed to completing the following Action. The Airport Manager 

will administer this program under the direction of the Partnership. The Airport Manager 

and staff of the Provo Municipal Airport will execute all federal grant offers and process 

all associated reimbursement requests. 

Project Goals 

The goal of the Partnership is to establish scheduled air service with Frontier Airlines to 

the Provo Municipal Airport. Low-cost scheduled air service will allow the community to 

better compete for new business and allow the businesses, industry, government 

organizations and the community as a whole to significantly reduce the amount of travel 

time and hassle required. 

Action Plan Elements 

The goal of the Action Plan is to address issues associated with the proposed air 

service that are critical to the long-term success of that service. In this regard, this 

Action Plan will address these elements for the Provo Municipal Airport: 

1. Recruit new air service for Provo from Frontier Airlines. 

2. Market, promote, and support new air service; spread the word around the 

catchment area. 

3. Secure additional revenue to support airline service. 

Marketing Program 

The advertising, promotions, public relations program are all part of the marketing 

program to support new air service. The target market for the Provo-Denver service is 

the business and leisure traveler. New marketing dollars will be spent in the Salt Lake 

and Utah Valley areas. The marketing in the Provo area will include advertising, 

promotions, and public relations in the local community. These mediums will be 

combined in a campaign to introduce the new air service. 

Target Audience 

The target audience for the new air service is the business and leisure traveler. The 

most effective way to contact this customer is by targeting the consumer at a critical 

time. All of these targets can be approached utilizing the same advertising media. For a 

market like Provo and the Salt Lake City metro area, the use of television, radio, 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

16 

newspaper, and outdoor are the best media. Even though television is the best media 

for reaching the leisure market, the small amount of air service that will be offered 

makes television not a sub-optimally cost effective media. The Provo Community will 

find that a combination of local radio, newspaper, and outdoor billboards will be the 

most cost effective approach to an advertising program. This should also be 

supplemented with a direct mail program and a series of press releases. 

Marketing and Media Selection 

The Provo Municipal Airport market area can best be reached by using local radio, local 

newspaper, outdoor, direct mail, trade publications, and the internet. Upon review of the 

local medium for the Provo market, the following is recommended. Run advertisements 

in the Salt Lake Tribune, Deseret News, the Daily Herald and on various Valley radio 

stations along with the network affiliate television stations. 

The Utah Valley Chamber will coordinate a direct mail program to its constituencies and 

to other businesses in the surrounding areas. The development of a promotion with 

area businesses with promotional material at the airport will also be undertaken. A 

public relations specialist will be retained to issue press releases and handle press 

relations. 

Total Incentive Package 

In order to attract the air service from Frontier Airlines between Denver and Provo an 

incentive package has been established which would be supportive of their new air 

service and reduce the risk of this new air service. The total incentive package 

developed herein includes: flight guarantees to off-set initial operating losses, funds for 

marketing and advertising, and waiver of certain airport fees. 

TOTAL INCENTIVE PACKAGE FOR NEW AIR SERVICE 

Category Estimated Cost

SCASDP Grant $500,000 

Local Community Cash Contribution $50,000 

Airport In-Kind Contribution $100,000 

Total Package Costs $650,000 

Sponsors Participation 

Provo agrees to manage the Airport In-kind program and obtain at least $100,000 in 

trade. The Small Community Air Service Development grant is proposed to cover 

$500,000 of the total proposed and the remaining $50,000 in cash shall be used for 

either further subsidy or other expenses. The Small Community Air Service 

Development grant will need to cover $500,000 of the total budget. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

17 

Upon the award of this requested grant, the Partnership is prepared to launch a drive to 

sell tickets in advance under a “travel bank” program and develop a barter program from 

local businesses to fund the marketing, advertising, and public relations for the new air 

service. The Airport will offer an attractive fee program for the first six months of service. 

PERFORMANCE MEASUREMENT 

Recruitment of Air Service 

Provo City and Frontier representatives met at the recent Jumpstart Conference to 

discuss the proposal. Frontier planning staff indicated a willingness to investigate the 

proposal and Provo City representatives will again meet with Frontier Airlines staff on 

September 2, 2010 to flesh out details. Provo feels that Frontier is supportive of the 

proposal, but simply needs a bit more time to finalize market planning. Frontier Airlines 

has provided a support letter found in the Appendix following this narrative. 

Marketing and Media Plan 

The Partnership will work within the community and with a marketing firm to develop a 

marketing and media plan to support this new air service. This plan will be shared and 

coordinated through Frontier. 

Air Service Performance 

The City will need Frontier to provide monthly reports listing the number of passengers 

carried in both directions, the number of flights flown, the passenger revenue for the 

month, other revenue for the month, and the cost of the operation. The Partnership will 

cover the shortfall of any monthly loss until the grant money has been exhausted. If the 

airline achieves profitability earlier than projected, then the cost offset funds will be 

either be transferred to supplement marketing and advertising for the air service or be 

refunded to the US DOT. If Frontier continues to need some form of incentive after the 

grant funds have been expended, the Partnership will continue to provide marketing and 

advertising for Frontier and the Provo Airport will continue to offer lower fees. 

COMMUNITY SUPPORT 

Resolutions supporting the proposal of Provo Municipal Airport and letters of support 

from Utah’s key congressional delegation and state and local lawmakers are included in 

the Appendices. Various civic and business organizations in the area have also 

submitted letters and resolutions supporting this proposal and scheduled air service for 

Provo Municipal Airport and these are included in the Appendices. 
Provo Airport (PVU), Provo City Corporation, Utah 

Small Community Air Service Development Program (SCASDP) 

Application Narrative 

18 

ASSURANCES 

Provo City Corporation hereby provides the U.S. Department of Transportation with the 

following assurances: 

1. It will comply with all of the applicable Federal laws, regulations, executive 

orders, policies, guidelines, and requirements as they relate to the application, 

acceptance, and use of the Federal funds for this project. 

2. It has legal authority to apply for the grant, and to finance and carry out the 

proposed project; that a resolution, motion, or similar action has been duly 

adopted or passed as an official act of the applicant’s governing body authorizing 

the filing of the application, including all understanding and assurances contained 

herein, and directing and authorizing the person identified as the official 

representative of the applicant to act in connection with the application and to 

provide such additional information as may be required. 

3. It has access to the funds available for that portion of the project costs, which are 

not to be paid by the United States government. It has sufficient funds to assure 

operating and maintenance of items funded under the grant agreement, which it 

will own or control. 

4. It shall keep all project accounts and records which fully disclose the amount and 

disposition by the recipient of the proceeds of the grant, the total cost of the 

project in connection with which the grant is given or used, and the amount or 

nature of that portion of the cost of the project supplied by other sources, and 

such other financial records pertinent to the project. The accounts and records 

shall be kept in accordance with an accounting system that will facilitate an 

effective audit in accordance with the Single Audit Act of 1984. 

5. It shall make available for the purpose of audit and examination, any books, 

documents, papers, and records of the recipient that are pertinent to the grant. 

6. It will execute the project in accordance with the approved program narrative 

contained in the project application or with the modifications similarly approved. 

7. It will furnish quarterly reports as required pertaining to the project and activities. 








The Honorable Ray LaHood August 24, 2010

Secretary 

U.S. Department of Transportation 

400 Seventh Sheet, SW 

Washington, D.C. 20590 

Subject: Provo Municipal Airport, Provo City, Utah 

 Support for Small Community Air Service Development 

Program Application, Docket DOT-OST-2010-0124 

Dear Secretary LaHood: 

I am writing to support the Provo City Airport which has filed an application with the Department of 

Transportation to participate in the Small Community Air Service Development Grant Program. 

Provo City, with support from elected community leaders and local business interests, is working 

toward the initiation of direct air service to Denver, Los Angeles, San Francisco and/or Las Vegas 

from the Provo Airport. 

Provo City has completed an Air Service Study which shows excellent potential for the Provo 

market. Commercial air service, including passenger, and cargo operations, will significantly improve 

the competitive environment for local businesses in the national and global marketplace. By 

improving aviation services at the Provo Municipal Airport, local business travelers will be better 

able to access important national and international destinations. 

Novatek is very supportive of the initiative to bring scheduled air service to the Provo Airport and 

would appreciate your consideration of Provo City’s application for assistance through the Small 

Community Air Service Development Grant Program. 

Thank you for your time reviewing this letter. 

Sincerely, 

Travis R. Bird 

Director, Corporate Development 

Novatek, Inc.