Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 1 of 30

DOT OST-2011-0119 

PROPOSAL UNDER THE SMALL

COMMUNITY AIR SERVICE 

DEVELOPMENT PROGRAM

(SCASDP)

 

 

 

Community Proposal of 

City of Flagstaff: 

Flagstaff Pulliam Airport 

Flagstaff, Arizona 

 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 2 of 31

Table of Contents

 

Proposal 

 

 Existing Air Service 3 

 Historical Air Service 4 

 Development Efforts 7 

 Flagstaff Air Service Needs/Deficiencies 8 

 Strategic Plan 13 

 Grant Project Implementation 18 

 Community Partners 19 

 Funding Description 20 

 Monitoring Plan 21 

 Continuation Plan 23 

 Designation of Legal Sponsor 24 

 Letters of Support 25 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 3 of 31

Existing Air Service

The City of Flagstaff’s Pulliam Airport is a non-hub Primary Commercial Service Airport 

(FAA Class 1), with an A-index ARFF service. Flagstaff Pulliam Airport is a Category 3 

security facility with a full TSA staff. It has an Instrument Landing Approach on Runway 21 

and a Contract Control Tower working in conjunction with Albuquerque Center for air 

traffic control needs. The runway was extended in 2007 to 8,800 feet to handle larger 

aircraft.

Flagstaff Pulliam Airport has a single air carrier, U.S. Airways, which provides nonstop 

service to Phoenix Sky Harbor International Airport. This service provides the Flagstaff 

market with four to seven daily flights averaging 5,166 monthly enplanements and 182 

monthly departures.

Currently, U.S. Airways has two primary aircraft, the de Havilland-dash 8 turbo prop 

aircraft and the CRJ 200. U.S. Airways corporate office has determined that, given the short 

flight distance between Flagstaff Pulliam Airport and Phoenix Sky Harbor International

Airport, the Dash 8 is the most appropriate aircraft to meet their economic needs; however, 

it does not meet the City’s present demand.

Per the October 2007 Phase One Air Service Study, conducted by Wilbur Smith and 

Associates, the overall Flagstaff average fare is $58 higher than Phoenix, with 13 of the top 

25 catchment area markets having average fare differences of $50 or more which equates 

to over $100 on a round trip basis. It is expected that Flagstaff fares will be higher due to 

the cost of the added flying involved, but a fare spread of $30 to $35 would appear more 

reasonable.

The goal of this project is to utilize the SCASDP funds to attract a new carrier through a 

revenue guarantee and provide air service from Flagstaff to the West Coast and/or Eastern

markets. Flagstaff Pulliam Airport and its partners believe that the presence of one airline 

and one direct destination is insufficient to meet the needs of the traveling public, 

including business travelers, educational institutions, residents, visitors, and other 

Northern Arizona agencies whose access to the national air transportation system is 

limited.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 4 of 31

Historical Service

In June 2008, Horizon Air began direct service to Los Angeles (LAX) from Flagstaff (FLG). They 

discontinued that service in August, 2010. During this period, Flagstaff Pulliam Airport saw an 

increase from 44,029 enplanements (the previous 12 months) to 62,891 enplanements (over 

the first 12 months), then to 68,175 enplanements (over the second 12 months). Flagstaff 

Pulliam Airport has had continual growth every year since 2002, when enplanement totals 

were approximately 24,000 and are now anticipated to be 65,000 (which is an increase of 

41,000 over nine years). These increases support the public demand for additional service and 

destinations. 

In June of 2009, after a successful first year in Flagstaff, the lease agreement with Horizon Air 

was extended and approved by the Flagstaff City Council for an additional two year period;

however, due to a company reorganization, Horizon discontinued service in August 2010. 

Horizon’s decision to leave Flagstaff was due to a corporate reorganization forcing them to 

reduce their fleet and drop several routes. Even with the departure of Horizon Airways, U.S. 

Airways, currently the sole carrier to Flagstaff, experienced a 22% increase in enplanements in 

2010. 1, 2

Per the agreement, Horizon Air, a subsidiary of Alaskan Airlines of Seattle, Washington, was 

required to provide at least four commercial air transportation service flights per day between 

Flagstaff Pulliam Airport (FLG) and Los Angeles International Airport (LAX), including two 

inbound and two outbound flights. Both daily inbound flights and both daily outbound flights 

provided non-stop air service between Flagstaff and Los Angeles. Air transportation was 

provided for a minimum of five days per week on a 76 seat Bombardier Q400 aircraft. In 

addition, at least one of the daily inbound flights and one of the daily outbound flights provided

one-stop service via Prescott, Arizona, and Los Angeles. 

Sky Harbor International Airport, which is the closest alternative commercial service airport to 

Flagstaff, is 21⁄2 hours and 151 driving miles from downtown Flagstaff. The drive to Phoenix 

and subsequent longer wait times can amount to an additional four hours to the beginning of a 

trip and includes the cost of long term parking. Even with this inconvenience, many local 

business and resident travelers make the drive to Phoenix for the opportunity of reaching 

other providers and additional destinations that could be served from Flagstaff with an 

additional airline. As such, this has created a significant need for additional air service options 

in Flagstaff. 

1 City of Flagstaff Enplanements, 2009-2011 2 City of Flagstaff Airport Passenger Load Factors, June 2010 – June 2011 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 5 of 31

 

 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

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FLG AIRPORT PASSENGER LOAD FACTORS 

June 2011 

 

HORIZON AIR (FLG-LAX) 

 

Date 

Load Factor 

Outbound 

Passenger 

Enplanements 

Total 

Number of 

Flights 

Load Factor 

Inbound 

Passenger 

Deplanements 

Aug ‘09 52.2 2221 56 57.9 2464

Sep ‘09 49.4 2064 55 47.5 1987

Oct ‘09 50.4 2144 56 46.9 1997

Nov ‘09 43.9 1769 53 42.3 1703

Dec ‘09 44.7 1357 40 41.6 1264

Jan ‘10 34.7 580 22 43.7 731

Feb ‘10 34.4 627 24 41.2 752

Mar ‘10 43.9 935 28 61.9 1317

Apr ‘10 55.3 1218 29 63.7 1404

May ‘10 46.8 1102 31 57.6 1358

Jun ‘10 51.7 1178 30 63.7 1452

Jul ‘10 45.5 1002 29 65.0 1434

Aug ‘10 55.0 878 21 66.6 1063

12-Month 

Total 

 

46.8% 

 

19,399 

 

531 

 

53.8% 

 

21,399 

NOTE: Horizon chart only reflects activity through August 2010 since they ended service on 

August 22. These numbers are Flagstaff enplanements only and do not include those passengers 

that enplaned in Prescott.

US AIRWAYS EXPRESS (FLG-PHX) 

 

 

Date 

Load Factor 

Outbound 

Passenger 

Enplanements 

 

Total 

Number of 

Flights 

Load Factor 

Inbound 

Passenger 

Deplanements 

Jun ‘10 86.6 5706 143+35 RJ 85.7 5641

Jul ‘10 83.2 5358 155+19 RJ 79.5 5117

Aug ‘10 82.0 5669 179+8 RJ 83.1 5750

Sep ‘10 85.0 5547 166+11RJ 84.4 5527

Oct ‘10 80.7 6218 188+20 RJ 79.0 6027

Nov ‘10 67.5 4945 181+17 RJ 67.0 4895

Dec ‘10 59.0 4187 183+9 RJ 54.0 3824

Jan ‘11 54.4 3479 157+16 RJ 58.5 3743

Feb ‘11 65.0 3558 133+15 RJ 65.5 3588

Mar ‘11 71.1 4497 145+26 RJ 72.0 4556

Apr ‘11 81.1 5099 161+9 RJ 79.9 5024

May ‘11 83.0 6224 178+24RJ 84.0 6298

Jun ‘11 84.3 5705 180+3RJ 86.9 5887

12-Month 

Total 

 

74.7% 60,486 2183 

 

 

74.5% 

 

 

60,236 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 7 of 31

Development Efforts

Given current economic conditions, it is critical to provide the community with all of the 

tools to not only sustain business, but also to grow the economic vitality of the Flagstaff 

region. Flagstaff is the regional hub for Northern Arizona and has a population of over 

345,000 within Coconino County and Yavapai County. (Source: 2010 U.S. Census website)

In 2007, the City of Flagstaff completed the Flagstaff Pulliam Airport Master Plan. The 

Master Plan estimated that in recent years the total economic impact of aviation activity at 

Flagstaff Pulliam Airport to be more than $100 million annually. The Plan also identified 

the need for additional air service provided that the City of Flagstaff secured a FAA grant to 

develop a runway extension of 1,800 feet. This project increased the runway to 8,800 feet 

which enabled Flagstaff to accommodate larger regional aircraft in the market. This 

runway extension and other planned projects at the Airport provides an excellent facility 

for airlines to operate safely and efficiently.

Once the runway extension project was completed, the City then contracted with Wilbur 

Smith and Associates to provide the Phase One Air Service Study, an air service analysis for 

Flagstaff and the Northern Arizona region. Following this analysis, the City secured a 

second airline for Flagstaff Pulliam Airport, resulting in a lease agreement with Horizon Air.

During the time Horizon Air provided additional air service in Flagstaff, U.S. Airways 

passenger counts also increased, which not only added to the economic impact but also 

confirmed that the community wanted, needed and valued additional air service at 

Flagstaff Pulliam Airport.

There is an inextricable link between a community’s economic condition and its ability to 

market and incentivize efforts to secure an air service provider. In the past six months, 

City of Flagstaff officials have met with two prospective air service providers, American 

Eagle Airlines and SkyWest Airlines and had several conversations with other airlines, in an 

effort to bring a second airline to Flagstaff Pulliam Airport. City of Flagstaff officials believe 

that providing a revenue guarantee for a second airline to begin service at Flagstaff Pulliam 

Airport through the Small Community Air Service Development Program would greatly 

increase the chances for success in securing a second airline.

The inability of Flagstaff officials to retain an additional air service provider in Flagstaff 

without the assistance of the SCASDP grant reflects the general aversion of most airlines to 

provide secondary service in smaller communities, a reality that has become an even 

greater challenge during the recent economic downturn. In the not too distant past, 

smaller and mid-size communities have been able to offer airlines significant funding to 

mitigate the financial risk associated with locating in smaller communities. However, given 

the current economic climate, it has become essential for communities to leverage those 

funds with grant opportunities, such as those offered by the Small Community Air Service 

Development Program.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 8 of 31

Flagstaff Air Service Needs/Deficiencies

As stated previously, there is a significant need for additional air service options in 

Flagstaff. The presence of one airline and one direct destination is not sufficient to meet 

the travel needs of the business travelers, residents, and visitors to the area. The City of 

Flagstaff currently provides service to air travelers via one air service provider, U.S. 

Airways. Currently, U.S. Airways only provides flights directly to Sky Harbor International 

Airport in Phoenix, Arizona, where travelers can then pick-up connecting flights to their 

final destination. 

Local citizenry continue to contact Flagstaff Pulliam Airport and the Flagstaff City 

Manager’s office requesting additional air service options. The Flagstaff City Council has 

made it their highest priority to bring additional air service to Flagstaff in order to meet 

these demands. 

Flagstaff travelers have identified Los Angeles, San Francisco, Las Vegas, Denver, Salt Lake 

City, and Dallas as the most requested destinations. As such, it is essential for Flagstaff 

Pulliam Airport to secure a second airline in order to meet the travel demands identified by 

the citizens of Flagstaff and the Northern Arizona region. As will be outlined in this 

proposal, the public has expressed the need for travel to both the West Coast and Eastern 

markets, making Los Angeles the preferred West Coast destination and utilizing either 

Denver or Dallas as a connection to the Midwest and Eastern markets, which will allow for 

increased domestic and international travel destinations.

An analysis of historic and current air service levels in Flagstaff and the Northern Arizona 

region indicates that the market is currently underserved and, historically, has proven that 

it can more than adequately support an additional air service provider. The Phase One Air 

Service Study provides information on the Top 25 Domestic Destinations for Flagstaff 

travelers, which supports the assertion that a second airline can be a successful air service 

provider for Flagstaff and the Northern Arizona region. 1

Approximately 15% of the catchment area travelers originated travel at Flagstaff Pulliam 

Airport, 83% originated out of Phoenix Sky Harbor International Airport, and 

approximately 2% used other airports. 2 The table on the following pages illustrates the 

top ten destinations for catchment area passengers utilizing Flagstaff and Phoenix airports. 

Of the travelers that diverted to Phoenix, nine of the top ten destinations were in the top 25 

destinations. To capture a greater portion of the 83% of travelers that divert to Phoenix, a 

second air service provider that provides additional destinations is a necessity. 2, 3

Additionally, a second air service provider increases competition, thereby resulting in 

lower airfares. This was proven during the time that Horizon Air provided direct service 

from Flagstaff Pulliam Airport to Los Angeles International Airport. Should the City of 

Flagstaff secure a second air service provider, the capture of any portion of the 83% 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 9 of 31

diversion rate would provide passengers with more competitive airfare opportunities and 

a more direct route.

1 Flagstaff Pulliam Airport Top Markets – Phase One Air Service Study 2 Top Ten Destinations by Originating Airport – Phase One Air Service Study 3 Flagstaff Pulliam Airport Catchment Area Map
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

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Flagstaff Pulliam Airport Top Markets
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

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Flagstaff Pulliam Airport Top Ten

Destinations by Originating Airport

 

 

 

 

 

NOTE: The above chart reflects the diversion of passengers driving to 

Phoenix versus flying out of Flagstaff in order to reach alternative 

carriers and flights to access the national air transportation system.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 12 of 31

Flagstaff Pulliam Airport

Catchment Area Map
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

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Strategic Plan

This proposal is supported by the City of Flagstaff, which will be responsible for the 

following:

• Develop the procurement process using the City’s procurement procedures which 

will reflect applicable Federal, State and local laws and regulations to negotiate an 

agreement with second air service provider subsequent to grant award.

• Liaison with the Department of Transportation in regard to second air service 

provider performance during grant period. 

• Administration of total program funding, including contact with Department of 

Transportation.

• Preparation of financial and quarterly reports, as determined necessary by the 

Department of Transportation.

Increased air service to a hub airport(s) is a necessity for the City to enhance its economic 

vitality. As previously indicated, major employers throughout the region support 

additional air routes that provide greater access to the Midwest and Eastern markets as 

members of Flagstaff’s scientific, medical, educational and other industries frequently 

travel to these destinations on business. Additionally, direct routes to Los Angeles allow 

for greater international visitation to Flagstaff, which comprises 17% of our traveler base 

currently, and also California residents which comprise 14% of our visitor market.

A second carrier will generate a significant, positive economic impact for local businesses 

and will provide more air service options for Flagstaff business travelers, residents, and 

visitors alike.

The ever changing transportation needs of communities and the dynamic and often volatile 

nature of the airline industry, presents an on-going challenge for small markets across the 

United States. The link between a community’s economic condition and air service demand 

is of utmost importance in maintaining and improving air service in smaller communities. 

Due to its unique location, Flagstaff Pulliam Airport strives to meet the ever growing needs 

of its business and tourism related travelers.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 14 of 31

Business

Given current economic conditions, it is critical to provide the business community with all 

of the tools to not only sustain business, but also grow the economic vitality of our region. 

Flagstaff is the regional hub for Northern Arizona and serves a population of over 345,000 

just within Coconino and Yavapai Counties. Economic development professionals have 

indicated that the absence of flights to certain key business markets has become a major 

issue in attempting to attract new businesses to Flagstaff, as well as retaining existing ones. 

Flagstaff is home to several major private employers including W. L. Gore & Associates, 

Nestle-Purina Pet Care, Walgreens Distribution, Southwest Windpower, TGen North, SCA 

Tissue, Flagstaff Medical Center, and Northern Arizona University, which has over 17,500 

students, and includes international students from over 76 countries. All of these 

businesses have employees that travel extensively or, at the very least, host inbound 

travelers.

Examples of Local Business Air Service Needs

 

Science and Bio-Science Organizations - The following natural science and bioscience institutions regularly travel to numerous Midwest and East Coast 

destinations to attend conferences, workshops, and seminars and to meet with their 

counterparts in other parts of the nation to further their ongoing research and 

educational opportunities. These organizations include, but are not limited to: 

• Translational Genomics Research Institute (TGen) North is an organization 

focused on innovative advances arising from the Human Genome and 

applying them to the development of diagnostics, prognostics and therapies 

for cancer, neurological disorders, diabetes and other complex diseases. The 

objective of TGen's Education and Outreach Division is to increase the 

scientific community’s working knowledge of genomics, and to educate, train, 

and inspire the next generation of researchers and physicians. The Pathogen 

Genomics Division is led by Dr. Paul Keim, the world's foremost expert in 

anthrax and other dangerous infectious diseases.

• Northern Arizona Center for Entrepreneurship and Technology (NACET) a 

business incubator that fosters business growth and economic vitality, 

creating high-quality jobs for the region. 

• Innovation Mesa is a science and technology park currently under 

development that is located in central Flagstaff on top of McMillan Mesa that 

will include an expansion of the USGS facilities, and will be the preferred 

location for the graduates of NACET’s entrepreneurial companies.

• United States Geological Survey (USGS), a world leader in the natural sciences 

through scientific excellence that serves the Nation by providing reliable 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 15 of 31

astro-geology, geography, geology and water resource information to 

describe and understand the Earth.

• W.L. Gore, a privately-held company headquartered in Newark, Delaware, 

who for more than 50 years, has built a worldwide reputation for providing 

innovative solutions throughout industry, in next-generation electronics, for 

medical products, and with high-performance fabrics. Gore has 

approximately 2,000 employees in Flagstaff and over 9,000 employees 

located in 30 countries worldwide, with manufacturing facilities in the 

United States, Germany, Scotland, Japan, and China, and sales offices around 

the world. Flagstaff is the headquarters for their medical products division.

Nestle-Purina employees and its affiliates currently drive to/from Phoenix to 

acquire service from airlines, such as United and American Eagle Airlines, due to 

non-competitive prices with the City’s single carrier. 

 

Northern Arizona University (NAU) requires air service for researchers and faculty 

attending conferences and seminars, and has expressed even greater additional air 

service needs for staff visiting other Midwest and East Coast university partners. 

 

Coconino Community College (CCC) has four campuses in Northern Arizona and 

sends 90% of its faculty and staff to various East Coast destinations.

Aviation activities at Flagstaff Pulliam Airport create “spin-off” benefits that include jobs 

and consumer spending, which support non-aviation businesses in cities and towns 

throughout Northern Arizona, including Sedona, Flagstaff, Camp Verde, Williams, and 

Winslow. According to the 2007 Airport Master Plan, total airport activity in Flagstaff 

supports more than 1,400 local jobs.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 16 of 31

Tourism

Flagstaff serves as a hub for Northern Arizona. Situated 80 miles from the Grand Canyon, 

Flagstaff is a draw for domestic and international tourists who travel to destinations in 

Northern Arizona such as Native American lands, historic Route 66 sites, numerous state 

and national parks, and Sedona. There are many natural wonders and outdoor recreational 

opportunities, as well as museums and art galleries that provide additional travel 

amenities. Flagstaff is also a target for regional and national conferences with the addition 

of the High Country Conference Center on the campus of Northern Arizona University.

With four million visitors to Flagstaff each year, tourism provides a total economic impact 

of over $501 million annually, employing more than 5,400 individuals in the area. Many of 

our visitors travel from the West and Eastern regions of the United States to visit our many 

wonders. 

Additional direct air service will positively impact Flagstaff’s ability to effectively reach 

these growing markets and expand our capacity to generate traveler interest from new 

regions.

The following Flagstaff Visitor Profile, provided by the Flagstaff Convention and Visitors 

Bureau, provides information on visitor demographics, including, but not limited to, 

Demographics, Annual Economic Impact, Visitor Origin, Trip Purpose, and Party type.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 17 of 31
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

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Grant Project Implementation

Upon receipt of the grant, the City of Flagstaff’s timetable is aligned with a start up in spring 

for peak season summer traffic. The following steps will be implemented once grant funds 

are secured for a second air service provider:

Year One 

(October 2011 – September 2012)

Year Two 

(October 2012 – September 2013)

Quarter 1 (October-December) 

• Accept Grant Award

• Submit Progress & Financial Report

• Update City Council & Airport 

Commission

Quarter 1 (October-December) 

• Work with successful candidate on 

installation of physical assets

• Launch Marketing Campaign

• Submit Progress & Financial Report

• Update City Council & Airport 

Commission

Quarter 2 (January-March) 

• Begin procurement process

• Submit Progress & Financial Report

• Update City Council & Airport 

Commission

Quarter 2 (January-March) 

• Begin new Air Carrier Service

• Submit Progress & Financial Report

• Update to City Council & Airport 

Commission

Quarter 3 (April-June) 

• Select service provider

• Submit Progress & Financial Report

• Update City Council & Airport 

Commission

Quarter 3 (April-June) 

• Submit Final Progress & Financial 

Report

• Final update to City Council & Airport 

Commission

Quarter 4 (July-September) 

• Negotiate Lease Agreement/Contract

• Develop Marketing Campaign

• Submit Progress & Financial Report

• Update City Council & Airport 

Commission

Quarter 4 (July-September) 

• Grant Closeout

• Monitoring
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 19 of 31

Community Partners

The City of Flagstaff, and its community partners throughout the Northern Arizona region, 

including the Sedona Chamber of Commerce, the City of Winslow, City of Williams and the 

Verde Valley, believes that the addition of a second airline at Flagstaff Pulliam Airport will 

positively impact Flagstaff’s growing business and tourism economies. The grant funds 

requested in this proposal will be utilized as a revenue guarantee to secure a second air 

service provider from Flagstaff to the West Coast and/or Eastern markets.

Each community partner will retain the responsibility to promote and market to their 

businesses and visitors for air service into and out of Flagstaff Pulliam Airport. This 

proposal contains steps to be taken by the City of Flagstaff’s community partners in order 

to meet these responsibilities. The Flagstaff community, with its Northern Arizona 

partners, has a proven track record of effectively utilizing funds to obtain results, as 

evidenced by securing a second airline in the not-so-distant past. 

Partners of the City of Flagstaff will meet with tour operators and travel planners to bring 

about awareness of new potential markets made available by the establishment of a new 

air service provider. In addition, the City of Flagstaff and its business partners will work 

with the various business communities to encourage the use of this new service.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 20 of 31

Funding Description

The City of Flagstaff is seeking a Federal funding allocation of $800,000 in Small 

Community Air Service Development Program funds as a revenue guarantee in order to 

secure a second airline at Flagstaff Pulliam Airport to increase direct routes via West Coast 

and/or Eastern markets. In addition, the following funding resources will be utilized:

• Upon City Council approval, the City of Flagstaff is willing to provide a 10% cash 

contribution ($80,000) towards ongoing marketing efforts/marketing campaigns 

for the new route(s), to be implemented by the Flagstaff Convention and Visitors 

Bureau. 

• Additional marketing and promotional efforts will also be undertaken by the City of 

Flagstaff community partners, including but not limited to the City of Winslow, City 

of Williams, Sedona Chamber of Commerce, Flagstaff Chamber of Commerce, and 

Flagstaff 40.

• City of Flagstaff will fund all related costs for Airport Administration employees, 

including the Economic Vitality Director, Airport Director, Airport Administrative 

Support, Airport Service Workers, Grants Administration and Finance.

In the past, smaller and mid-size communities, such as the City of Flagstaff, have been able 

to offer airlines funds to mitigate the financial risk associated with locating to a new 

community. Similarly in 2007, utilizing City General Funds, we were able to provide 

$458,000 as a revenue guarantee to Horizon Air for air service to Los Angeles, California. 

Given current economic conditions, and with ongoing budget deficits, no funds were 

available in the Fiscal Year 2012 budget for this purpose. However, the City of Flagstaff 

continues to be dedicated to securing a second air service provider utilizing a Small 

Community Air Service Development Program grant as a revenue guarantee.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 21 of 31

Monitoring Plan

The City of Flagstaff will be responsible for implementation of the grant funds. 

The City of Flagstaff has the ability to manage this grant and oversee the work. We have a 

Grants Management Team (GMT) which is composed of the Grants Manager, Financial 

Officer/Accountant, and the Project Representative. This team approach has assured the 

City’s success in grant compliance from award to closeout. The GMT ensures all terms and 

conditions of the grant agreement are followed, provides the necessary financial and 

performance reports, monitors grant and contract performance, and that all evaluation, 

audit and closeout procedures are met.

Furthermore, we have extensive history in managing Federal and State funds. The City has 

a full time Grants Manager position which involves researching, monitoring, and applying 

for available municipal related grants, monitoring, implementing, evaluating, and assuring 

the compliance of terms and conditions, and in general, is the central coordinator for all 

grants, which may involve internal auditing and holding others accountable for proper 

grant compliance. The Accountants assigned to the grants have a high level of technical 

expertise in governmental budgeting and accounting. In addition, the Project 

Representatives have extensive knowledge in the targeted areas in which they are seeking 

funds and administering the funded programs.

In addition, the Flagstaff Pulliam Airport Director, as Project Director for the funds, will be 

responsible for all quarterly reporting notifications to the Primary Contact/Grants 

Administrator.

Based on the proposed timeline:

• Grant presented to City Council for approval/acceptance of grant funds 

o Stacey Brechler-Knaggs, Grants Manager 

o Barney Helmick, Airport Director 

• Develop the procurement process using the City procurement procedures which 

will reflect applicable Federal, State and local laws and regulations.

o Rick Compau, Purchasing Director 

o Barney Helmick, Airport Director 

• Selection Panel for submitted Proposals 

o Jerene Watson, Deputy City Manager 

o Stacey Button, Economic Vitality Director 

o Stacey Brechler-Knaggs, Grants Manager 

o Barney Helmick, Airport Director 

o Rick Compau, Purchasing Director 

• Negotiation of Lease Agreement/Contract 

o Rosemary Rosales, City Attorney 

o Stacey Button, Economic Vitality Director 
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 22 of 31

o Barney Helmick, Airport Director 

o Rick Compau, Purchasing Director 

o Jill Trompeter, Real Estate Manager 

• Marketing campaign development 

o Stacey Button, Economic Vitality Director 

o Heather Ainardi, Convention & Visitor Bureau Director 

o Successful Candidate

• Installation of physical assets 

o Barney Helmick, Airport Director 

• Launch Date 

o City Manager 

o Elected Officials 

o Community Partners 

• Ongoing monitoring of air service provider 

o City Council - Quarterly 

o Airport Commission - Monthly 

o Community Partners Input/Feedback - Ongoing

o Customer Input/Feedback – Ongoing

o Service provider
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 23 of 31

Continuation Plan

By meeting quarterly with the City Council, monthly with the Airport Commission, and 

ensuring that the City of Flagstaff continues to seek and receive input from both our 

community partners and the community at large, there will be ongoing monitoring of the 

success of the air service provider. 

Utilizing the five ongoing monitoring provisions, the City of Flagstaff will implement these 

various methods to ensure ongoing communication with the provider and to seek and 

receive feedback for the success of the airline.

In addition, marketing endeavors for the service provider will be coordinated and 

conducted by the Flagstaff Convention and Visitors Bureau throughout the life of the 

service provider.

The City of Flagstaff will work in partnership with the airlines and our community partners 

to promote travel. This will require feedback from the air service provider on the various 

community endeavors to ensure that sales are proceeding at an acceptable rate. Should a 

community partner fail to meet expectations, the City of Flagstaff will work with that 

partner to assist in strengthening their promotional endeavors.
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 24 of 31

Designation of Legal Sponsor

Legal Sponsor: 

City of Flagstaff

211 West Aspen Avenue

Flagstaff, Arizona 86001

928/774-5281

Project Director: Primary Contact/Grants Administrator:

Barney Helmick Stacey Brechler-Knaggs

Airport Director Grants Manager

6200 South Pulliam Drive 211 West Aspen

Flagstaff, AZ 86001 Flagstaff, AZ 86001

928/556-1234 928/213-2227

bhelmick@flagstaffaz.gov sknaggs@flagstaffaz.gov
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 25 of 31

Letters of Support

Aloha Ley

Office of Aviation Analysis

1200 New Jersey Avenue, SE, W86-310

Washington, D.C. 20590

 

The following pages contain Letters of Support for a second airline in Flagstaff from our 

community partners:

• Flagstaff Forty

• Flagstaff Chamber of Commerce

• Sedona Chamber of Commerce

• City of Flagstaff Airport Commission

• Flagstaff Convention and Visitors Bureau

• City of Winslow
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 26 of 30

April 11, 2011

Stacey Button

Economic Vitality Director

City of Flagstaff

211 W. Aspen

Flagstaff, AZ 86001

Dear Stacey,

Flagstaff Forty supports the City of Flagstaff in your efforts to secure a second airline to 

Pulliam airport. Increased air service has been a priority for the City to increase the 

economic viability and respond to the demand of our community and region.

Your presentation to our membership on March 23, 2011, indicated a very high interest 

level from the CEO’s and managers of Flagstaff’s largest companies. I was glad the 

members were so vocal and supportive of your intentions of securing a second airline. It 

was also quite clear that the large employers in Flagstaff support air routes that have 

better access to the Midwest and Eastern metropolitan areas. Flagstaff’s scientific, 

medical, educational, and many other industries frequently travel east on business.

The southern California and Las Vegas markets are geographically close and should not 

be discounted. But the priority is to seek a carrier that has options to broaden the 

opportunities to the remainder of the Country.

Let me know if I can assist you any further.

Sincerely,

J.R. Murray

Chairman, Flagstaff Forty
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 27 of 31
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 28 of 31

May 26, 2011

To Whom It May Concern:

Thank you for considering new air service to and from Flagstaff, Arizona. Flagstaff is located 

approximately 30 miles north of Sedona and serves as a primary gateway for visitors to Sedona and to 

the Grand Canyon.

In Sedona, tourism is the primary economic generator serving more than 4 million visitors who infuse 

almost $200 million into our local economy each year. Tourism generates nearly 10,000 jobs and 

touches just about all aspects of life in the entire Verde Valley.

The Sedona Chamber of Commerce acts as the destination marketing arm for the City of Sedona and 

targets visitors from all over the country and the world. We work with meeting planners, wholesale and 

receptive tour operators, travel agents, concierge, and the general public.

Many of our visitors live in the Midwest or on the East Coast. In fact, those geographic areas have been 

part of our overall marketing approach for many years. In 2010, our top five domestic markets were: 

California, Arizona, Texas, Illinois and New York respectively. According to our walk-in statistics at our 

Uptown Visitor Center, which serves 300,000 visitors per year, the states of California, Arizona, Texas, 

Illinois and New York made up 43% of our total walk-in visitors for 2010, which was a 23% increase over 

2009.

More direct air service to those markets would greatly impact our tourism promotional efforts. 

Accessibility is a key component for travel decision makers. Air service into Flagstaff would have a 

positive direct impact on our efforts to attract those visitors to our beautiful state and to our region. You 

can count of us supporting the service and promoting it not only to our 1000 Chamber of Commerce 

members, but also through our destination marketing efforts and visitor services.

Thank you again for considering service into Flagstaff. Please feel free to contact me if there is any 

other information that I may provide.

Sincerely,

Jennifer Wesselhoff

President/CEO

Sedona Chamber of Commerce
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 29 of 31
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 30 of 31

May 26, 2011

Visitors from across the United States and around the world are attracted to Flagstaff for 

its clean mountain air and the West’s most beautiful country. From the depths of Grand 

Canyon National Park to the heights of the San Francisco Peaks, Flagstaff is a gateway to 

all the treasures of northern Arizona.

With four million visitors a year, tourism provides a total economic impact of over $501 

million annually, employing more than 5,400 individuals in the area. Many of our 

visitors travel from the Midwest or Northeast regions of the United States to visit our 

many great wonders. In fact, over the past three years fulfillment requests from potential 

travelers residing in these areas regularly rank in the top five states contacting the 

Flagstaff Visitor Center for travel information. Over 44.1 percent of all toll-free calls 

received at the Flagstaff Visitor Center originate from the Midwest and Northeastern 

states, with 6.5 percent of those from Illinois. 

Over the past two years the CVB has worked with many tour operators, meeting planners 

and associations from these states, generating 76 business leads with the potential to 

bring almost 22,000 room nights to the city.

Additional direct air service will positively impact Flagstaff’s ability to effectively reach 

these growing markets and expand our capacity to generate traveler interest from these 

regions. Additionally, international travelers comprise 17 percent of Flagstaff’s traveler 

base. We would be able to utilize different air routes to reach our proven international 

markets, which include the United Kingdom, Canada, Germany, France, and Japan. 

Thank you for considering expanding your air service to Flagstaff.

Sincerely,

Heather Ainardi, Director

Flagstaff Convention & Visitors Bureau
Proposal under the Small Community Air Service Development Program

Flagstaff Pulliam Airport

Docket # OST-2011-0119 Page 31 of 31