August 2, 2011

Sponsor: McClellan-Palomar Airport, Carlsbad, California

Peter Drinkwater, Director of County Airports, County of San Diego

Congressional Code: CA-050

Dun & Bradstreet Number: 1870326770000

Tax Identification Number (EIN): 95-6000934

Application for Federal Support for New Air Service via:

Revenue Guarantees

Advertising/Marketing Program

In Support of Non-Stop Service on California Pacific Airlines to Various Destinations

McCLELLAN-PALOMAR AIRPORT, CARLSBAD, CA

Proposal Under the Small Community Air Service Development Program

Docket DOT-OST-2011-0119
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 2

TABLE OF CONTENTS

Introductory Letters of Support 3

Summary Information – Appendix C 5

Introduction 8

The Carlsbad/North San Diego County Air Service Market 10

Current and Historical Service 12

Air Service Development Efforts 18

Air Service Needs and Deficiencies 19

Strategic Plan for New Air Service 23

Proposed New Routes 23

Implementation Timeline 38

Alternate Plan 39

Public/Private Partnership 40

Funding Plan 43

Performance Measures and Financial Controls 45

Legal Sponsor 46

Letters of Support 47

Availability of Alternate Airports 57

Airport Information 58

Community Profile 59

Comparison to Other Communities in Region 66

Conclusions 70

Section Page Number
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 3

INTRODUCTORY LETTERS OF SUPPORT
McClellan

-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 20114
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 5

SUMMARY INFORMATION – APPENDIX C

Small Community Air Service Development Program

Docket DOT-OST-2011-0119

A. Applicant Information

 Not a Consortium Community now receives EAS subsidy

 Interstate Consortium Intrastate Consortium

 Community previously received a Small Community Grant

 If previous recipient, date of Grant: ________________________________

expiration date of Grant: _______________________

B. Public/Private Partnership

Public:

1. County of San Diego

2. McClellan-Palomar Airport

Private:

1. California Pacific Airlines

2. Carlsbad Chamber of Commerce

3. San Diego North Convention and Visitors Bureau

4. San Diego North Chamber of Commerce

5. San Diego North County Economic Development Council

6. Palomar Airport Association
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 6

C. Project Proposal

 Marketing Upgrade Aircraft New Route

 Travel Bank Service Restoration Subsidy

 Surface Transportation Regional Service Revenue Guarantee

 Launch New Carrier Start-Up Cost Offset First Service

 Study Secure Additional Service Other (Specify)

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach

 Localizer Other: GPS Approach

E. Project Cost

1. Federal amount requested: $ 1,000,000

2. State cash financial contribution: $ 0

Local cash financial contribution:

3a. Airport cash funds: $ 0

3b. Non-Airport cash funds: $ 300,000

3. Total local cash funds: $ 300,000

4. TOTAL CASH FUNDING: $ 1,300,000

In-Kind Contribution:

a. Airport In-Kind contribution: $ Various

b. Other In-Kind contribution: $ Various

5. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

6. TOTAL PROJECT COST: $ 1,300,000 + In-Kind

F. In-Kind Contributions

For funds in lines 7a (airport in-kind contribution) and 7b (other in-kind contribution), 

please describe the source(s) of fund(s) for each.

Advertising and marketing match money (airport and media companies)
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 7

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

 This application was made available to the State on ______.

 Program is subject to review, but has not been selected by the State.

 Program is not covered.

H. Is Applicant Delinquent on any Federal Debt?

 No
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 8

INTRODUCTION

The McClellan-Palomar Airport in Carlsbad is one of the most underserved airports in the country 

when the size of its primary catchment area is taken into account. The Airport is the closest 

access point to air service for 1.1 million people in north San Diego County. And yet, the Airport 

is served by just one carrier, with turboprop aircraft, to one hub - Los Angeles – with just 150 

departing seats per day on average.

Capacity continues to be cut in Carlsbad, with total available seats down 22% in the last three 

years – a loss of an average of 43 departing seats per day. The situation is little better at the 

nearest “big airport” – San Diego International. Airlines at San Diego have cut seats by a similar 

22% - or an average of 7,800 departing seats per day – since the summer of 2008. As seats have 

been cut, fares have been going up. The average 

roundtrip fare at the McClellan-Palomar Airport has 

gone up by $40 roundtrip, or 14%, in just the last 

year.

The effect of seat cuts and rising fares has been 

increased passenger leakage from the Carlsbad 

catchment area to other airports in the region. The Airport recently commissioned a leakage 

study to quantify passenger leakage. The study found just 1.6% of total passengers generated in 

the area closest to the McClellan-Palomar Airport, actually use the Airport. The catchment area 

leaks an average of 4,400 passengers per day each way to other airports, clogging already 

congested southern California freeways and increasing the carbon footprint of travelers 

throughout the region.

In order to address these challenges, the Airport has teamed up with a new airline – California 

Pacific Airlines – on a range of non-stop jet service to be provided at the McClellan-Palomar 

Airport beginning in the early second quarter of 2012. Daily non-stop service will be provided, 

under this proposal, to Oakland, San Jose, Sacramento, Las Vegas, and Phoenix on new 

Embraer ERJ170 jets. California Pacific Airlines is so committed to the service, it has located its 

headquarters just a few miles from the Airport, and it has committed the cash match for this 

Grant proposal. California Pacific has pledged $300,000 in cash for marketing and advertising 

under this proposal – 23% of the total project cost of $1.3 million.

“California Pacific has pledged 

$300,000 in cash for marketing and 

advertising under this proposal –

23% of the total project cost.”
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 9

In addition to the benefits of new airline service to five non-stop destinations, this application will 

also help support a start-up airline that seeks to compete along the West Coast. The value of a 

new airline to a community cannot be understated – especially in a time where consolidation 

reigns. The US has lost four major carriers in the last several years: Northwest, Continental, AirTran, 

and Midwest. California Pacific Airlines is one of the few start-ups that has the financial backing 

to start flying. In order to be successful, however, 

it will require support from the McClellan-Palomar 

Airport – its main base of operations.

Unlike most other proposals, this Grant project will 

also lead to the creation of several hundreds of 

new jobs in Carlsbad. With its headquarters near 

the Airport, CP Air plans to have a little over 100 employees working full-time in Carlsbad at 

service launch, in the second quarter of 2012. This number is projected to grow to 500 

employees by the fifth year of service.

The McClellan-Palomar Airport SCASD Program project is ready to go. The Airline is the cash 

partner in the application and is committed to launching service. An agreement can be made 

with the carrier as soon as the Grant is awarded. And this Grant will do much more than simply 

link a community to a new hub. It will help to launch a new airline and support a new base of 

operations in the very small community the Grant is designed to help.

“...this Grant will do much more 

than simply link a community to a 

new hub. It will help launch a 

new airline...”
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 10

THE CARLSBAD/NORTH SAN DIEGO COUNTY AIR SERVICE MARKET

Current and Historical Air Service

The McClellan-Palomar Airport in Carlsbad, California, serves one of the largest catchment 

areas, in terms of population, of all non-hub airports in the country. More than 1.1 million people 

live closer to the McClellan-Palomar Airport than any other airport. Yet the Airport has just five 

departing flights per day, all on 30-seat turboprop aircraft, with only 150 daily outbound seats. 

Moreover, available seats in the market have been cut by 22% in the last two years.

The Carlsbad catchment area, seen in orange in map 1, is home to 1,146,522 people as of the 

latest US Census estimates. The Carlsbad area comprises 12.3% of the overall population of the 

entire shaded area – the 

area that includes San 

Diego, Carlsbad, Orange 

County, and Long Beach. 

The total population of 

the shaded area is 9.3 

million, making it one of 

the most populous onehour catchment areas of 

any airport in the country.

Despite comprising 12% 

of the region’s 

population, most of 

Carlsbad catchment 

area passengers fly from 

other airports in the 

region, largely due to the 

breadth of service 

offered at those other 

airports.

Catchment Area Population Share of Pop.

Carlsbad/McClellan-Palomar Airport 1,146,522 12.3%

Santa Ana-Orange County/John Wayne Airport 2,635,931 28.3%

Long Beach/Daugherty Field 3,621,575 38.9%

San Diego Lindbergh International 1,902,720 20.4%

Total of Region 9,306,748 100.0%

MAP 1: The McClellan-Palomar Airport Catchment Area

Relative to the Catchments of Other Southern California Airports
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 11

Non-Stop Departures Seats Departures Seats Capacity

Carrier Destination Per Day Per Day Per Day Per Day Change

United LAX 5.6 167 6.5 195 16.8%

United Total 5.6 167 6.5 195 16.8%

Carlsbad Total 5.6 167 6.5 195 16.8%

Aug-10 Aug-11

Despite the relative 

size of the Carlsbad 

catchment area, the 

Airport has much less 

service than other 

California markets 

home to more than a 

million people. As of 

August of 2011, the 

McClellan-Palomar 

Airport had service 

to just one non-stop 

destination – LAX 

(see figure 1). The 

Airport will see a 

slight year-over-year 

increase in available 

August 2010 to 

August 2011, with SkyWest adding another daily LAX frequency, and boosting 

capacity to 195 departing seats per day on average. Nonetheless, Carlsbad 

airline capacity is down more than 20% since the summer of 2008.

The McClellan-Palomar Airport has seen dramatic passenger declines in the last three years, 

after a near record 2006. That doesn’t mean the market is shrinking, and demand for air service 

is declining. The reality is, with seat cuts and flight frequency reductions at the McClellanPalomar Airport, more and more Carlsbad area passengers are being forced to use other 

airports in the region to access the national air transportation system – a theory that is proven by 

the Airport’s recent leakage study, which will be detailed in this application.

In 2006 the McClellan-Palomar Airport saw an average of 180 passengers per day each way at 

an average fare of $156 each way (see figure 2). The number of passengers using the Airport 

dropped to just 74 passengers per day each way on average in 2009– a loss of 106 passengers

per day each way, or 59% of passengers. The market did experience a slight rebound in 2010, 

adding an average of four passengers per day each way, to bring the average to almost 78 

passengers per day each way. 

FIGURE 1: Scheduled Service at the McClellan-Palomar Airport,

August 2010 vs. August 2011; Source: Airline Schedule Data
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 12

Passengers increased in Carlsbad in 2010 despite the fact that average fares rose to their highest

point in six years, at $165 each way (see figure 2). Between 2009 and 2010, the average one 

way fare at the McClellan-Palomar Airport went up by $20 – an increase of 14% - outpacing the 

national and regional averages for fare growth.

To go along with these relatively high average fares, the Carlsbad market has been dealing with 

the continuing loss of available airline seats. Since the summer of 2008 the McClellan-Palomar 

Airport has gone from an average of 6.5 daily departures to an average of 5.1 daily departures. 

This has resulted in a loss of 21% of daily flights (see figure 3).

While flights in Carlsbad are down 21%, available seats are down 22% since the summer of 2008, 

or by an average of 43 departing seats per day (see figure 3). At the same time, passengers 

using the McClellan-Palomar Airport have increased. In summer of 2008, an average of 98 

passengers per day each way used the airport. That number was up to as many as 107 

FIGURE 2: O&D Passengers and Average One Way Fares at McClellan-Palomar Airport,

2001 – 2010; Source: US DOT Table OD1A

124,450

99,590

90,320

84,680

78,760

120,450

114,580

63,570

47,000 50,090

7,170

6,440

5,730

6,620

5,500

10,880

10,950

10,090

6,820

6,510

180.3

145.2

131.6

125.1

115.4

179.9

172.0

100.9

73.7 77.5

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PDEW Int'l Pax Domestic Pax

$175 $169 $173

$186

$179

$156

$139

$159

$145

$165
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 13

passengers per day each way during the fall of 2010 – an increase of 9% in total onboard 

passengers.

Many markets can tell the same story about higher than average fares and decreased airline 

capacity. But the story in Carlsbad is punctuated by the fact that the flight reductions have 

drastically increased the region’s passenger “leakage” to other airports in southern California. 

This is a more critical situation in southern California than in almost any other part of the country, 

due to the heavy congestion on virtually all freeways in and out of Carlsbad, at virtually all times 

of day. The McClellan-Palomar Airport must do a better job serving its local 1.13 million 

population by attracting additional air service and keeping travelers off the freeways.

In preparation for its application for Grant funding, the McClellan-Palomar Airport commissioned 

a True Market/Leakage study, so that it could better understand its local air travel market before 

requesting federal funding for additional flights. The study results show that the Airport retains just 

1.6% of the passengers generated by its local, immediate catchment area.

FIGURE 3: Average Daily Departures, Daily Available Seats, Daily Onboard Passengers

July 2008 – December 2010; Source: US DOT T100 Data

195

189

179 179

165

169 172

180 183 186

172

190

182 184

177 177 175

156 155

161 164

134

87

94

129

165

156

150 153 152

98 95

86 85

73 73

61

67 67

75

62 64

71

63 64

70 68

59 58

67

76

63

31 34

64

83

99

106 107 105

0

50

100

150

200

Available SDEW Onboard PDEW Flights DEW

6.5 6.3 6.0 6.0

5.5 5.6 5.7 6.0 6.1 6.2

5.7

6.3 6.1 6.1 5.9 5.9 5.8

5.2 5.2 5.4 5.5

4.5

2.9

3.1

4.3

5.5 5.2 5.0 5.1 5.1
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 14

Most of those “lost” passengers found their 

way to service at other airports in the 

region, such as San Diego International 

and John Wayne Airport in Orange County. 

The majority of Carlsbad area passengers, 

in fact, currently fly out of the San Diego 

airport at Lindbergh Field. As of the year 

ended first quarter 2010, according to the 

Airport’s recently commissioned True 

Market/Leakage Study, the McClellanPalomar Airport’s catchment area 

generated 2,485,803 total passengers who 

flew out of San Diego, or an average of 

3,405 passengers per day each way (see 

figure 4). 

The Airport’s catchment area generated 

an additional 518,394 passengers, or 710 

passengers per day each way, who flew out of Los Angeles International (LAX); 184,677 

passengers, or 253 passengers per day each way, who flew out of John Wayne Airport in 

Orange County; 59,393 passengers, or 81 passengers per day each way who flew out of Ontario; 

and 6,403 passengers, or nine passengers per day each way, who flew out of Long Beach (see 

figure 4). Only 53,520 Carlsbad-area passengers, or 73 passengers per day each way, actually 

flew out of the McClellan-Palomar Airport as of the year ended first quarter 2010 – or 1.6% of the 

catchment area’s total passengers. In other words, Carlsbad leaks 98.4% of its origin and 

destination passengers to other airports in southern California. That leakage represents an 

average of 4,407 passengers per day each way.

It will be an uphill battle for a new airline in the market to re-capture these “leaked” passengers. 

Passenger behavior is often ingrained and travel habits can be difficult to break. That is why it is 

essential the Airport offer risk mitigation and marketing support to a new carrier – to make sure 

the new carrier has a sufficient “ramp up” phase to win back passengers to the McClellanPalomar Airport.

FIGURE 4: Carlsbad Area O&D Passengers by Airport Used

YE1Q10; Source: Sixel Consulting Group True Market Study

San Diego, CA

75.3%

Los Angeles, CA

15.7%

Orange County, 

CA

5.6%

Ontario, CA

1.8% Carlsbad, CA

1.6%

Airport Passengers PDEW Share

1 SAN San Diego, CA 2,485,803 3,405.2 76.0% 

2 LAX Los Angeles, CA 518,394 710.1 15.8% 

3 SNA Orange County, CA 184,677 253.0 5.6% 

4 ONT Ontario, CA 59,393 81.4 1.8% 

5 CLD Carlsbad, CA 53,520 73.3 1.6% 

6 LGB Long Beach, CA 6,403 8.8 0.2% 

Total Carlsbad Area Passengers 3,270,633 4,480 100.0% 

Originating Airport For Carlsbad Area Passengers

Tw elve Months Ended March 2010

Rank

True Market with LCC Adjustment
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 15

The McClellan-Palomar Airport’s top 20 

origin and destination passenger markets 

are spread throughout the country, with 

somewhat of an emphasis on west coast 

travel. The market’s number one O&D 

destination is the San Francisco Bay Area, 

with an average of almost six passengers 

per day each way (see figure 5). Other 

large western markets include Los Angeles, 

with an average of nearly 5 passengers per 

day each way; Las Vegas, with an average 

of 2.8 passengers per day each way; 

Seattle/Tacoma, with an average of 2.7 

passengers per day each way; and 

Sacramento, with an average of 1.5

passengers per day each way. It must be 

noted that these figure do not include any 

of the passengers leaking to other airports 

from the Carlsbad catchment area – they 

only include actual travel from McClellan-Palomar Airport, itself, as of calendar year 2010.

As noted, the average one way 

fare at the McClellan-Palomar 

Airport in 2010 was $165 (see figure 

6). This average does a poor job of 

taking into account the actual 

available fares in the market at most 

times. Due to the fact that there are 

far fewer available seats at 

McClellan-Palomar Airport than at 

other airports in the region, the lower 

fare buckets at McClellan-Palomar 

Airport tend to sell out much more 

quickly than at San Diego or LAX.

FIGURE 5: Carlsbad’s Top 20 O&D Passenger Markets 

CY2010; Source: US DOT Table OD1A

FIGURE 6: Average One Way Fares at Top 20 CLD O&D Passenger Markets

CY2010; Source: US DOT Table OD1A

4,260

3,350

3,210

2,730

2,080

1,980

1,960

1,900

1,540

1,440

1,300

1,280

1,060

1,030

990

980

980

880

840

800

5.8

4.6

4.4

3.7

2.8

2.7

2.7

2.6

2.1

2.0

1.8

1.8

1.5

1.4

1.4

1.3

1.3

1.2

1.2

1.1

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

San Francisco, CA

Los Angeles, CA

Washington, DC

Denver, CO

Las Vegas, NV

Seattle/Tacoma, WA

Honolulu, HI

Chicago, IL

New York/Newark, NY

Boston, MA

Orlando/Sanford, FL

Portland, OR

Sacramento, CA

Kahului, HI

Philadelphia

Phoenix/Mesa, AZ

San Jose, CA

Salinas/Monterey, CA

Fresno, CA

Colorado Springs, CO

Annual Passengers 

PDEW

$87

$58

$187

$106

$77

$137

$172

$146

$199

$165

$132

$120

$89

$147

$159

$83

$97

$43

$100

$123

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200

San Francisco, CA

Los Angeles, CA

Washington, DC

Denver, CO

Las Vegas, NV

Seattle/Tacoma, WA

Honolulu, HI

Chicago, IL

New York/Newark, NY

Boston, MA

Orlando/Sanford, FL

Portland, OR

Sacramento, CA

Kahului, HI

Philadelphia

Phoenix/Mesa, AZ

San Jose, CA

Salinas/Monterey, CA

Fresno, CA

Colorado Springs, CO

Average One Way Fare: $165
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 16

This phenomenon is best documented by researching the lowest available fare to specific 

destinations from the three airports in question: McClellan-Palomar, San Diego International, and 

Los Angeles International. To all of the Carlsbad market’s largest nearby origin and destination 

passenger markets, the lowest available fare in August of 2011 from McClellan-Palomar Airport is 

significantly higher than 

the average fare from 

either San Diego or LAX 

(see figure 7).

The lowest available 

August 2011 fare 

between McClellanPalomar Airport and 

Oakland was $432, 

according to 

ExpertFlyer.com (see 

figure 7). The Carlsbad 

fare to Oakland was 

140% higher, or $252

more, than the $180 

fare from either LAX or San Diego. In the Sacramento market, the $278 fare from Carlsbad was 

64% higher than the $170 fare from LAX, and 89% higher than the $147 fare from San Diego. 

Similarly, the lowest available fare from the McClellan-Palomar Airport to San Jose was $269, 

while the lowest LAX fare was $159 and the lowest available San Diego fare was $147. All fares 

noted here are round trip but do not include taxes and fees. Fare disparities to Phoenix and Las 

Vegas were smaller, but still apparent. The effect of the disparities in the lowest available fare 

from the three airports is that the McClellan-Palomar Airport loses passengers to both other 

airports, as they work to take advantage of much better travel pricing. This unnecessarily clogs 

southern California freeways, and increases the region’s already large carbon footprint.

Higher fares often arise from a lack of competition. There is no current airline competition at the 

McClellan-Palomar Airport. But while United Express/SkyWest has a 100% market share of both 

passengers and revenue at the McClellan-Palomar Airport, United does not rank as the top 

airline for Carlsbad catchment area passengers when all catchment area passengers, traveling 

from all airports, are taken into account. It is important in markets such as Carlsbad to analyze 

FIGURE 7: Lowest Available Fares in Select Markets

August 2011; Source: ExpertFlyer.com

$432

$278 $269

$197 $180 $178 $147 $147 $119 $140

$180 $170 $159 $135

$86

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Oakland Sacramento San Jose Phoenix Las Vegas

Carlsbad San Diego Los Angeles (LAX)
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 17

not just the market share at the local Airport, but the market share including those passengers 

who “leak” to other airports in the region.

The Airport’s recently completed True 

Market/Leakage Study shows that most 

Carlsbad catchment area passengers use 

Southwest Airlines – not United service 

provided directly at the Airport, itself (see 

Figure 8). These Southwest passengers are 

“leaking,” primarily, to San Diego and Los 

Angeles International (LAX). Despite the 

fact that Southwest does not serve 

Carlsbad, it captures almost a third of all 

Carlsbad catchment area passengers at 

other airports in southern California. United 

ranks as the market’s second largest 

carrier, with 14% of the total market, while 

American ranks third with 12.5% of the 

market’s origin and destination passengers. 

Somewhat surprisingly, low cost carriers not 

named Southwest draw just a combined 

6.6% of Carlsbad area passengers, which 

suggests fare is not the major consideration in choosing which airline and airport to use.

The McClellan-Palomar Airport is an underused facility in one of the most heavily populated

areas of the world. There is tremendous potential for success in the market for the right kind of 

airline, offering non-stop service to the most in-demand destinations. However, it has been 

difficult to convince airlines of the potential due to the difficult metrics of current service, 

including declining passengers and declining capacity.

FIGURE 8: Carlsbad’s True Airline Passenger Share

YE1Q10; Source: Sixel Consulting Group True Market Study

Southwest

34.4%

United

14.8%

American

13.2%

Delta 

(+Northwest)

10.7%

US Airways

6.9%

Continental

6.7%

Alaska

6.2%

jetBlue

2.8%

Virgin America

2.2%

Frontier

2.0%

Airline Passengers PDEW Share

1 Southw est 1,062,528 1,455.5 32.5% 

2 United 456,948 626.0 14.0% 

3 American 408,645 559.8 12.5% 

4 Delta (+Northw est) 331,287 453.8 10.1% 

5 US Airw ays 213,731 292.8 6.5% 

6 Continental 206,610 283.0 6.3% 

7 Alaska 191,451 262.3 5.9% 

8 jetBlue 86,228 118.1 2.6% 

9 Virgin America 67,919 93.0 2.1% 

10 Frontier 62,240 85.3 1.9% 

Total of Above 3,087,587 4,230 94.4% 

Total Carlsbad Area Passengers 3,270,633 4,480 100.0% 

Tw elve Months Ended March 2010

Rank

Top Airlines For Carlsbad Area Passengers
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 18

AIR SERVICE DEVELOPMENT EFFORTS

For the last several years, the McClellan-Palomar Airport has been working to retain, expand, 

and attract new airline service at the Airport. It realizes it must work to recruit additional service, 

so it can better serve its catchment area of 1.13 million people. As part of this effort, in 2010, the 

McClellan-Palomar Airport commissioned a True Market/Leakage Study, using its own funding, so 

it could better understand the travel patterns of local catchment area residents. The results of 

this Study were completed for inclusion in this Grant application. The Study shows a local market 

for almost 3.3 million annual passengers.

The Airport also hired an air service 

development consulting firm to aid in 

the preparation of specific airline case 

studies, and to facilitate direct airline 

one-on-one meetings. Within the last 

year, the Airport hosted officials from 

both Horizon Air and California Pacific 

Airlines for meetings on field. 

Additionally, the Airport has met with 

airlines such as Frontier and Cape Air to 

discuss new service opportunities.

These meetings have led to a more 

fully-developed partnership with a 

locally headquartered new airline, 

California Pacific Airlines. California Pacific is the cash partner in this project, putting up $300,000 

of its own cash funding as the match to the federal portion of the project. Very few Small 

Community Air Service Development Grant projects have airlines contributing direct cash 

funding. The fact that Carlsbad has an airline partner with money in the project makes this 

application much more likely to be successful in the long term.

FIGURE 9: McClellan-Palomar True Market Study

YE1Q10; Source: Sixel Consulting Group
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 19

AIR SERVICE NEEDS AND DEFICIENCIES

The region served by Carlsbad’s McClellan-Palomar Airport has a number of air service 

deficiencies, most of which would be best remedied by additional non-stop destinations in its 

markets of most demand. Among the deficiencies are the lack of available seats, declining 

capacity, and fares that are not competitive with other airports in the region.

Additionally, the area around McClellan-Palomar Airport has the highest concentration of major 

employers in all of San Diego County – a higher concentration than even downtown San Diego, 

where San Diego 

International Airport is 

located. 19 of San 

Diego County’s top 35 

employers, in terms of 

total employees in the 

region, are located 

within seven miles of 

McClellan-Palomar 

Airport (see figure 10). 

Another eight 

companies are 

located within 14 miles 

of the Airport. A total 

of 28 of the 35 largest 

companies in San 

Diego County are 

located closer to 

McClellan-Palomar 

Airport than San Diego 

International Airport. This business travel demand would be better met at McClellan-Palomar 

Airport – but that will take non-stop service to the specific points of demand for those businesses, 

which includes the Bay Area, Phoenix and Las Vegas.

It has been documented in this application that the McClellan-Palomar Airport’s limited service, 

which includes flights only to LAX, is a deterrent to the County’s large businesses using the 

FIGURE 10: Location of San Diego County’s Top Employers

Summer 2011; Source: California Pacific Airlines
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 20

Airport. While those businesses are located much closer to McClellan-Palomar Airport than San 

Diego, San Diego is still able to capture 76% of total Carlsbad catchment area demand, as 

noted in the Airport’s recent True Market/Leakage Study. In fact, the McClellan-Palomar Airport 

captures less than 5% of its catchment area passengers to all 25 of its top true passenger markets 

as of the year ended first quarter 2010 (see map 2).

Among the Carlsbad catchment area’s largest origin and destination passenger markets are the 

cities of the Bay Area, Phoenix, and Las Vegas. In each of these markets, the McClellanPalomar Airport retains less than 3% of total passenger demand, with San Diego capturing more 

than 75% of all passengers (see map 2). In these markets, John Wayne Airport in Santa 

Ana/Orange County captures almost 16% of Carlsbad catchment area passengers, while LAX 

captures the remaining 6% of passengers.

MAP 2: Airport Share of Carlsbad Catchment Area Passengers

YE1Q10; Source: Sixel Consulting Group True Market Study
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 21

This extensive passenger leakage from the Carlsbad catchment area puts a large burden on the 

already saturated freeway system of southern California. The region is known for its traffic 

bottlenecks. The more than three million airline passengers who leak out of the Carlsbad 

catchment area to other airports in the region put an undue burden on other modes of 

transportation. These passengers could be much better served by the McClellan-Palomar 

Airport. Moreover, it would likely save the Department of Transportation further funding for the 

southern California roadway system should it support further development of the McClellanPalomar Airport.

There are two key reasons behind Carlsbad’s “leakage” to other airports in southern California. 

One: a lack of sufficient available seats in the market to allow local travelers to use their local 

airport. And two: airfares that are much higher than those found at competing airports. 

Average fares in Carlsbad aren’t accurately reported, as SkyWest does not report fare 

information to the DOT as part of Table OD1A. As SkyWest operates Carlsbad service “at risk,” 

average fares reported by the DOT in the 

Carlsbad are arbitrarily assigned by stage 

length. Due to these fare reporting issues, a 

simple comparison of average fares in the 

Carlsbad market is not accurate.

There is no question that the Carlsbad 

catchment area is not only affected by air 

service offered at the McClellan-Palomar Airport, but also by the service offered at San Diego 

International. It is important to analyze service changes in San Diego to understand the overall 

deficiencies in service in the region.

At the same time the McClellan-Palomar Airport sees airline service declines, San Diego’s 

Lindbergh International Airport has seen its most significant seat cuts in two decades. Since the 

summer of 2008, San Diego has lost an average of 74 daily departures – a loss of 26% of that 

Airport’s daily flights (see figure 11). During that same time period, San Diego has lost an 

average of 7,818 daily outbound available seats, or 22% of the market’s available airline 

capacity.

These flight and seat losses not only hurt the immediate San Diego catchment area, but also 

Carlsbad. As Carlsbad has seen its flights and seats cut even more drastically over the last two 

“... extensive passenger leakage from 

the Carlsbad catchment area puts a 

large burden on the already saturated 

freeway system of southern California.”
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 22

years, Carlsbad area travelers have had to rely more on service provided at San Diego for 

access to the national air transportation system. This access is becoming more difficult as the 

region, as a whole, sees huge cuts in airline service. Together, Carlsbad and San Diego have lost 

an average of almost 8,000 daily departing seats since the summer of 2008 – almost a quarter of 

all the region’s airline capacity. Airlines have not lined up to fill that capacity at San Diego. The 

McClellan-Palomar Airport believes now is the time to shift the travel patterns of the region, and 

to enhance service in north San Diego County.

There are many more needs and deficiencies in air service in the Carlsbad catchment area. 

These additional deficiencies will be highlighted in the section of this report dedicated to 

explaining the strategic plan for new service for McClellan-Palomar Airport.

FIGURE 11: Available Seats, Passengers, and Departures per Day Each Way

San Diego International Airport; CY2010; Source: US DOT T100

35,433

34,474

30,79330,69530,313

29,26128,77129,22829,51129,567

30,403

32,06232,301

31,517

29,14428,963

28,23627,902

26,63927,049

27,99328,583

29,602

31,03230,95330,423

28,22228,436

27,45827,11026,68626,716

27,615

28,02927,817

22,544

23,472

21,89121,647

19,699

21,471

22,720

23,936

23,212

25,825

27,291

26,227

22,570

23,540

22,44821,924

20,17420,675

22,72923,11722,698

25,617

26,43825,879

22,642

23,414

22,71022,125

20,45321,011

22,449

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Available SDEW Onboard PDEW Flights DEW

286.2

276.7

241.1 239.6 233.6

227.0 225.0 228.9 230.7 232.5 236.4

247.6 249.0 243.8

225.4 223.5 217.7 215.8

205.8 211.0

218.2 221.9

228.9

236.8 234.7 230.4

213.1 213.5 208.0 205.5 204.4 205.2

212.1
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 23

STRATEGIC PLAN FOR NEW AIR SERVICE

McClellan-Palomar Airport has developed a partnership with California Pacific Airlines (CP Air) in 

support of this strategic plan for additional air service in north San Diego County. CP Air is 

providing the local matching cash for this plan – one of the very few Small Community Air 

Service Development plans for new air service that is being supported by direct airline cash. This 

plan is aimed to address the extensive passenger leakage from the Carlsbad catchment area, 

to add available airline seats to the market, to add non-stop service to the Carlsbad catchment 

area’s largest origin and destination markets, and to bring down airfares throughout the region.

Uniquely, this strategic plan also includes the support of a newly launched air carrier. Federal 

support for this plan translates to federal support for a new competing carrier, California Pacific 

Airlines, offering service along the West Coast. There is tremendous value to this added 

competition, not only in Carlsbad and north San Diego County, but also in the proposed cities 

served under this plan.

This strategic plan does not 

include simple service through 

a new hub. It is predicated 

upon the launch of California 

Pacific Airlines in Carlsbad, 

itself – with a number of routes 

non-stop from the McClellanPalomar Airport to destinations 

of top demand for catchment 

area passengers. In this case, 

the goals of the Airport and 

the Airline are 100% in line with 

each other.

This plan would include new, 

non-stop service on California 

Pacific Airlines from the McClellan-Palomar Airport to five of the Airport’s top eight origin and 

destination passenger markets (see map 3). These markets include Oakland, ranked number 

MAP 3: Proposed Routes - Carlsbad to Oakland, Las Vegas,

Sacramento, Phoenix and San Jose
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 24

two; Las Vegas, ranked number five; Sacramento, ranked number six; Phoenix, ranked number 

seven; and San Jose ranked number eight.

California Pacific Airlines has been in existence for three years. Its planning process is nearly 

complete, as is the process to gain certification from the FAA. The Airline expects to have 

certification materially complete in the fall of 2011. The timeline for new service under this plan is 

the beginning of second quarter of 2012, which would be much faster action on a new Grant 

award than most other applications that have been approved in the past. CP Air has the 

financial backing to take delivery of the Embraer ERJ170 aircraft it has on order, and to begin 

service on this timeline.

Both the Airport and California Pacific Airlines independently identified the same markets as 

priorities for new service to and from Carlsbad. The Airport’s own True Market/Leakage Study 

verifies the viability of the routes initially chosen by CP Air for non-stop service. Oakland is the 

top potential route, with an average of 204 passengers per day each way to and from the 

Carlsbad catchment area (see figure 12). As of the year ended first quarter 2010, just five of 

those 204 passengers per day each way used the McClellan-Palomar Airport, with 76% using San 

Diego.

Carlsbad – Las Vegas ranks as the second potential route, with an average of 185 passengers 

per day each way as of the year ended first quarter 2010, with just 2.5% of those passengers 

using the McClellan-Palomar Airport (see figure 12). Sacramento ranks third, with an average of 

171 passengers per day each way, with 76% of those passengers using the San Diego 

International Airport. Phoenix ranks fourth, with an average of 158 passengers per day each 

way, with 76% of those passengers using the San Diego International Airport. And, finally, San 

Jose ranks as the fifth best opportunity in the Carlsbad market, with an average of 156

passengers per day each way, with just 2.5% of those passengers using the local Airport.

FIGURE 12: Airport Share to Proposed Destinations under This Plan

YE1Q10; Source: Sixel Consulting Group True Market Study

Total

Rank Airport Paxs PDEW Paxs PDEW Paxs PDEW Paxs PDEW Passengers

1 Oakland, CA 113,413 155.4 8,426 11.5 23,651 32.4 3,730 5.1 149,220 

2 Las Vegas, NV 102,711 140.7 7,631 10.5 21,420 29.3 3,378 4.6 135,140 

3 Sacramento, CA 94,932 130.0 7,053 9.7 19,797 27.1 3,122 4.3 124,905 

4 Phoenix, AZ 87,602 120.0 6,508 8.9 18,269 25.0 2,881 3.9 115,260 

5 San Jose, CA 86,701 118.8 6,441 8.8 18,081 24.8 2,852 3.9 114,075 

Total Carlsbad Area Passengers 485,359 76.0% 36,059 5.6% 101,218 15.8% 15,964 2.5% 638,599 

San Diego, CA Los Angeles, CA Orange County, CA Carlsbad, CA (+Others)
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 25

In all, the five identified markets that would gain service under this proposal generate an 

average of 875 passengers per day each way in the Carlsbad catchment area as of the year 

ended first quarter 2010 (see figure 12). Of those passengers, 76% currently fly from the San 

Diego International Airport, with 16% flying from Orange County, and 6% flying from Los Angeles 

International. Less than 3% of those passengers currently use the McClellan-Palomar Airport. CP 

Air gives the Airport the best possible chance at recapturing these passengers.

The Airport feels that California Pacific Airlines should not be required to undertake this project 

alone. The addition of five new non-stop routes, a new start-up carrier, and the Airport’s first jet 

service in years will be a tremendous boost to the Carlsbad region as a whole. For these 

reasons, the McClellan-Palomar Airport is seeking Small Community Air Service Development 

Grant support for the project.

California Pacific Airlines has committed $300,000 in direct cash to this strategic plan. The 

McClellan-Palomar Airport is seeking a Small Community Air Service Development Grant in the 

amount of $1 million as the federal share 

of the project. The CP Air portion of 

funding represents 23% of the total 

project cost, which is $1.3 million. Of 

that total project cost, $800,000 will be 

used in support of marketing and 

advertising of the new service at the 

McClellan-Palomar Airport. The 

remaining $500,000 will be used as a revenue guarantee in support of the five new routes CP Air 

will offer from McClellan-Palomar Airport.

The goal of the marketing and advertising campaign will be to convert Carlsbad catchment 

area passengers from users of the San Diego International Airport to users of the McClellanPalomar Airport. This campaign will focus on north San Diego County. The goal of the revenue 

guarantee will be to cover any losses CP Air faces in the first year of new service from the 

McClellan-Palomar Airport.

Due to the latent demand for air travel in the Carlsbad catchment area, it is estimated new 

service will be immediately profitable in the summer season. The revenue guarantee would 

“The addition of five new routes, a new 

start-up carrier, and the Airport’s first jet 

service in years would be a tremendous 

boost to the Carlsbad region...”
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 26

likely cover losses in the first winter season. The reasons for the belief that service will be quickly 

profitable are included in the route by route analysis that follows.

Route Specific Data: Carlsbad – Oakland

The number one route proposed under this strategic plan, in terms of passengers generated in 

the Carlsbad catchment area, is McClellan-Palomar Airport – Oakland. In determining the 

potential for Oakland service to be successful, it’s important to look at both current capacity to 

the Bay Area from the greater San Diego region and current traffic from the same region.

Capacity between the San Diego area and the Bay Area has been cut by a quarter since the 

summer of 2008, with no major additions of service anticipated in the near term. In July of 2008, 

airlines offered an average of 53 departures a day in each direction between San Diego 

International Airport and the Bay Area airports of Oakland, San Jose, and San Francisco (see 

figure 13). By March of 2011, the number of daily departures had fallen to 38, a loss of 29% of all 

daily flights, or an average of 15 flights per day each way.

FIGURE 13: Average Daily Departures, Daily Available Seats, and Daily Onboard Passengers

SAN – OAK+SJC+SFO; July 2008 – March 2011; Source: US DOT T100 Data

6,7496,564

6,3426,3456,3916,2606,2076,1866,2926,2236,1276,2756,268

6,007

5,5725,5745,5145,5115,3755,4985,6035,7415,6335,7075,6215,575

5,3005,3105,379

5,1735,1635,2105,068

4,6884,780

4,1974,356

4,0664,053

3,503

3,9794,159

4,476

4,261

4,5294,6134,487

4,1644,2684,2474,166

3,6543,741

4,0624,1804,047

4,4094,3734,452

4,2364,3134,343

4,040

3,530

3,8083,798

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Available SDEW Onboard PDEW Flights DEW

53.0 51.4

49.7 49.5 49.2 48.4 47.9 48.0 49.0 49.1 48.2 49.3 49.4

46.7

40.4 40.5 40.6 40.4 39.1 40.4 41.3 41.8 40.9 41.8 41.0 40.4

37.9 38.0 38.5 37.1 37.3 38.1 37.9
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 27

At the same time, available seats in the San Diego – Bay Area market have tumbled. In July of 

2008, airlines offered an average of 6,749 seats per day each way (see figure 13). By March of 

2011 that number had fallen to 5,068 seats per day each way – a loss of 25% of all seats, or 1,681 

seats per day each way.

Capacity has been cut similarly between San Diego and Oakland, itself. In July of 2008, airlines 

offered an average of 15 departures a day in each direction between San Diego International 

Airport and Oakland International (see figure 14). By March of 2011, the number of daily 

departures had fallen to 11, a loss of 27% of all daily flights, or an average of four flights per day 

each way.

Available seats in the San Diego – Oakland market have fallen in much the same way. In July of 

2008, airlines offered an average of 2,086 seats per day each way (see figure 14). By March of 

2011 that number had fallen to 1,527 seats per day each way – a loss of 27% of all seats, or 559 

seats per day each way.

Assuming California Pacific Airlines operates four flights per day in each direction between 

Carlsbad and Oakland, those flights would offer an average of 264 seats per day each way on 

CP Air’s 66-seat Embraer EMB170 aircraft. The seats would only replace 47% of the Oakland 

FIGURE 14: Average Daily Departures, Daily Available Seats, and Daily Onboard Passengers

SAN-OAK; July 2008 – March 2011; Source: US DOT T100 Data

2,086

2,0152,0102,0002,021

1,946

1,7691,708

1,7841,8071,7511,7871,774

1,649

1,5301,5371,5431,5241,5901,6471,6751,6941,6351,6951,6541,608

1,5301,5501,4971,4821,455

1,5311,527

1,3781,387

1,1671,2281,1801,149

954

1,0941,116

1,242

1,109

1,2191,2271,195

1,0751,1141,1211,109

967 1,021

1,1441,1791,115

1,2691,2061,216

1,1441,1771,1231,123

977

1,0781,116

0

500

1,000

1,500

2,000

2,500

Available SDEW Onboard PDEW Flights DEW

15.3 14.8 14.7 14.6 14.8 14.2

12.9 12.5 13.1 13.3 12.8 13.1 13.1

12.1

11.2 11.3 11.4 11.3 11.7 12.1 12.3 12.5 12.0 12.5 12.2 11.8 11.3 11.4 11.0 10.9 10.7 11.3 11.2
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 28

seats that have been removed from the larger San Diego market. Even with CP Air’s entrance 

into the market, it is likely the market will still be underserved, and demand for seats will still 

exceed capacity.

The passenger demand between the San Diego area and Oakland has fallen in the last four 

years as capacity has been cut and fares have risen. In 2007 the San Diego/Carlsbad –

Oakland route generated 1,418 passengers per day each way on average (see figure 15). In 

2010 the average number of passengers per day each way traveling between the Carlsbad 

area and Oakland dropped to just 888 – a loss of 37% of local passengers, or 528 passengers per 

day each way.

While the largest reason for the decline in passengers between the Carlsbad area and Oakland 

is the decline in available seats – down 27% since 2008 – another factor has been rising fares. 

The average one way fare between the Carlsbad area and Oakland in 2007 was $78 (see figure 

15). The average fare has risen 17% since then, to $91 each way in 2010.

Oakland is a large, local market with capacity that has been squeezed in the last several years. 

California Pacific Airlines would merely be replacing a small portion of the capacity that has 

been lost, giving the Airport confidence the route will perform well.

FIGURE 15: O&D Passengers and Average One Way Fares, SAN+CLD – OAK

2001 – 2010; Source: US DOT Table OD1A

886,390

991,310 983,750 1,038,700 1,049,460 1,076,370 1,035,060

808,280

655,910 648,360

1,214.2

1,358.0 1,347.6

1,422.9 1,437.6 1,474.5

1,417.9

1,107.2

898.5 888.2

0

200,000

400,000

600,000

800,000

1,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PDEW Total Passengers

$71

$67

$73 $74

$80

$86

$78

$83 $83

$91
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 29

Route Specific Data: Carlsbad – Las Vegas

The San Diego – Las Vegas route has seen similar cuts to the San Diego – Oakland route. In 

January of 2009, airlines offered an average of 17 departures a day in each direction between 

San Diego International Airport and McCarran International in Las Vegas (see figure 16). By 

March of 2011, the number of daily departures had fallen to 11.5, a loss of 32% of all daily flights, 

or an average of five flights per day each way.

Available seats in the San Diego – Las Vegas market have fallen in much the same way. In 

January of 2009, airlines offered an average of 2,234 seats per day each way (see figure 16). By 

March of 2011, that number had fallen to 1,571 seats per day each way – a loss of 30% of all 

seats, or 663 seats per day each way.

Assuming California Pacific Airlines operates two flights per day in each direction between 

Carlsbad and Las Vegas, those flights would offer an average of 132 seats per day each way on 

CP Air’s Embraer EMB170 aircraft. The seats would only replace 20% of the Las Vegas seats that 

have been removed from the larger San Diego market.

The passenger demand between the San Diego area and Las Vegas has fallen in the last four 

years as capacity has been cut and fares have gone up by $20 each way. In 2007 the San 

FIGURE 16: Average Daily Departures, Daily Available Seats, and Daily Onboard Passengers

SAN-LAS; July 2008 – March 2011; Source: US DOT T100 Data

2,1262,152

2,2342,2362,235

2,082

2,2022,234

2,0432,0001,9731,9591,9771,9741,937

1,8041,7811,776

1,5421,5751,5871,5941,5471,5751,5571,5621,5561,5491,5031,475

1,5541,5721,571

1,4891,554

1,3841,3811,3331,379

1,302

1,3841,322

1,412

1,2241,238

1,4071,395

1,2711,228

1,2991,268

1,0981,100

1,1881,194

1,0501,086

1,2071,187

1,1001,1621,1691,1581,1281,0981,091

500

1,000

1,500

2,000

2,500

Available SDEW Onboard PDEW Flights DEW

15.6 16.0

16.9 16.9 16.8

15.7

16.5 16.8

14.9 14.6 14.4 14.5 14.6 14.5 14.3 14.3 14.2 14.2

11.4 11.5 11.6 11.7 11.3 11.5 11.4 11.4 11.4 11.4 11.0 10.811.4 11.6 11.5
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 30

Diego/Carlsbad – Las Vegas route generated 1,096 passengers per day each way on average 

(see figure 17). In 2010 the average number of passengers per day each way traveling 

between the Carlsbad area and Las Vegas dropped to just 764 – a loss of 30% of local 

passengers, or 332 passengers per day each way.

While the largest reason for the decline in passengers between the Carlsbad area and Las 

Vegas is likely the decline in available seats – down 30% since early 2009 – another factor has 

been rising fares. The average one way fare between the Carlsbad area and Las Vegas in 2007 

was $77 (see figure 17). The average fare has risen 26% since then, to $97 each way in 2010.

Route Specific Data: Carlsbad – Sacramento

The San Diego – Sacramento route has not seen cuts as deep as some of the other routes from 

the region, but total capacity has come down by about a fifth in the last three years. In July of 

2008, airlines offered an average of 12.6 departures a day in each direction between San Diego 

International Airport and Sacramento International (see figure 18). By March of 2011, the 

number of daily departures had fallen to 10.2, a loss of 19% of all daily flights, or an average of 

two and a half flights per day each way.

FIGURE 17: O&D Passengers and Average One Way Fares, SAN+CLD – LAS

2001 – 2010; Source: US DOT Table OD1A

716,600

660,070 690,330

743,240

823,050 801,930 800,010

716,680

625,800

557,740

981.6

904.2

945.7

1,018.1

1,127.5 1,098.5 1,095.9

981.8

857.3

764.0

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PDEW Total Passengers

$59 $57

$62

$65

$68

$76 $77

$86 $84

$97
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 31

Available seats in the San Diego – Sacramento market have fallen in much the same way. In 

July of 2008, airlines offered an average of 1,714 seats per day each way (see figure 18). By 

March of 2011 that number had fallen to 1,392 seats per day each way – a loss of 19% of all 

seats, or 322 seats per day each way.

Assuming California Pacific Airlines operates three flights per day in each direction between 

Carlsbad and Sacramento, those flights would offer an average of 198 seats per day each way. 

The seats would only replace 62% of the Sacramento seats that have been removed from the 

larger San Diego market.

Passenger demand between the San Diego area and Sacramento has fallen in the last four 

years as capacity has been cut and fares have gone up by $15 each way. In 2007 the San 

Diego/Carlsbad – Sacramento route generated 1,149 passengers per day each way on 

average (see figure 19). In 2010 the average number of passengers per day each way traveling 

between the Carlsbad area and Sacramento dropped to just 896 – a loss of 22% of local 

passengers, or 253 passengers per day each way.

FIGURE 18: Average Daily Departures, Daily Available Seats, and Daily Onboard Passengers

SAN-SMF; July 2008 – March 2011; Source: US DOT T100 Data

1,7141,6791,6801,6651,661

1,5231,5501,5471,5671,5811,5441,5461,5741,5551,5211,5181,5291,526

1,457

1,517

1,5721,5731,5421,557

1,5071,479

1,3911,3701,3461,3211,3581,3991,392

1,2931,256

1,122

1,184

1,1261,092

934

1,061

1,145

1,266

1,161

1,2591,253

1,2031,169

1,232

1,1791,158

996

1,070

1,1551,1971,156

1,213

1,1601,1241,1051,1071,0981,074

964 1,0071,014

500

700

900

1,100

1,300

1,500

1,700

1,900

Available SDEW Onboard PDEW Flights DEW

12.6 12.3 12.3 12.2 12.2

11.2 11.3 11.3 11.5 11.6 11.3 11.4 11.5 11.4 11.2 11.1 11.2 11.1

10.7

11.1 11.5 11.5 11.3 11.4 11.0 10.8

10.2 10.0 9.9 9.7 10.0 10.3 10.2
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 32

While the largest reason for the decline in passengers between the Carlsbad area and 

Sacramento was likely a reduced number of available seats – down 19% since summer of 2008 –

another factor was rising fares. The average one way fare between the Carlsbad area and 

Sacramento in 2007 was $79 (see figure 19). The average fare has risen 19% since then, to $94

each way in 2010.

Route Specific Data: Carlsbad – Phoenix

The San Diego – Phoenix route typically sees a seasonal peak in the winter, as is the case for 

most Phoenix routes. Available seats, flights, and passengers between the San Diego area and 

Phoenix have continued to decline for the last four years. In July of 2008, airlines offered an 

average of 21 departures a day in each direction between San Diego International Airport and 

Phoenix Sky Harbor International (see figure 20). By March of 2011, the number of daily 

departures had fallen to 17.6, a loss of 17% of all daily flights, or an average of three and a half 

flights per day each way.

FIGURE 19: O&D Passengers and Average One Way Fares, SAN+CLD – SMF

2001 – 2010; Source: US DOT Table OD1A

715,730 758,080 720,420

773,490 797,460 792,470 838,590

758,010

682,220 654,050

980.5

1,038.5

986.9

1,059.6 1,092.4 1,085.6

1,148.8

1,038.4

934.5

896.0

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PDEW Total Passengers

$68

$62

$69 $70

$76

$83

$79

$89

$87

$94
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 33

Available seats in the San Diego – Phoenix market have fallen in much the same way. In July of 

2008, airlines offered an average of 3,018 seats per day each way (see figure 20). By March of 

2011 that number had fallen to 2,590 seats per day each way – a loss of 14% of all seats, or 428

seats per day each way.

Assuming California Pacific Airlines operates three flights per day in each direction between 

Carlsbad and Phoenix, those flights would offer an average of 198 seats per day each way. The 

seats would only replace 46% of the Phoenix seats that have been removed from the larger San 

Diego market.

Passenger demand between the San Diego area and Phoenix has fallen in the last six years as 

capacity has been cut and fares have gone up by $25 each way. In 2005 the San 

Diego/Carlsbad – Phoenix route generated 1,101 passengers per day each way on average 

(see figure 21). In 2010 the average number of passengers per day each way traveling 

between the Carlsbad area and Phoenix dropped to just 819 – a loss of 26% of local passengers, 

or 282 passengers per day each way.

FIGURE 20: Average Daily Departures, Daily Available Seats, and Daily Onboard Passengers

SAN-PHX; July 2008 – March 2011; Source: US DOT T100 Data

3,018

2,894

2,687

2,5592,546

2,449

2,5782,6482,6252,6292,5672,6272,654

2,559

2,4282,3842,4002,3732,352

2,4482,4972,5052,487

2,5692,5712,5252,5262,5172,4812,4912,5012,5232,590 2,312

2,233

1,8491,849

1,7431,6891,675

1,769

1,869

2,001

1,762

1,906

2,102

2,010

1,775

1,8761,8261,7801,736

1,863

1,9481,960

1,758

1,868

2,038

1,939

1,8281,8651,8881,8871,8161,871

1,965

500

1,000

1,500

2,000

2,500

3,000

Available SDEW Onboard PDEW Flights DEW

21.1

20.3

18.6 18.2 18.1

17.4

18.0 18.5 18.3 18.4

17.7 18.1 18.2

17.5

16.8 16.6 16.8 16.5 16.3

17.0 17.4 17.5 17.6

18.4 18.3 18.0 17.7 17.5

16.8 16.7 17.0 17.1 17.6
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 34

While the largest reason for the decline in passengers between the Carlsbad area and Phoenix

was likely the loss of available seats – down 14% since summer of 2008 – another factor was rising 

fares. The average one way fare between the Carlsbad area and Phoenix in 2005 was $65 (see 

figure 21). The average fare has risen 38% since then, to $90 each way in 2010.

Route Specific Data: Carlsbad – San Jose

As has been documented in this proposal, capacity between the San Diego area and the Bay 

Area has been cut by a quarter since the summer of 2008, with a total loss of 1,681 seats per day 

each way in that time. A portion of those seat loses have come in the San Jose market. As 

recently as July of 2009, airlines offered an average of 14 departures a day in each direction 

between San Diego International Airport and San Jose Mineta International (see figure 22). By 

March of 2011, the number of daily departures had fallen to eight, a loss of 41% of all daily flights, 

or an average of six flights per day each way.

FIGURE 21: O&D Passengers and Average One Way Fares, SAN+CLD – PHX

2001 – 2010; Source: US DOT Table OD1A

740,620

683,100 728,190 760,490 803,710 788,920 777,710

717,640

631,420 598,070

1,014.5

935.8

997.5

1,041.8

1,101.0 1,080.7 1,065.4

983.1

865.0

819.3

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PDEW Total Passengers

$57 $56 $55

$57

$65

$73

$76

$82 $81

$90
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 35

Available seats in the San Diego – San Jose market have fallen in much the same way. In July of 

2009, airlines offered an average of 1519 seats per day each way (see figure 22). By March of 

2011 that number had fallen to 1,147 seats per day each way – a loss of 24% of all seats, or 372

seats per day each way.

Assuming California Pacific Airlines operates four flights per day in each direction between 

Carlsbad and San Jose, those flights would offer an average of 264 seats per day each way. 

The seats would only replace 71% of the San Jose seats that have been removed from the larger 

San Diego market.

Passenger demand between the San Diego area and San Jose has fallen in the last four years as 

capacity has been cut and fares have gone up by $12 each way. In 2007 the San 

Diego/Carlsbad – San Jose route generated 1,069 passengers per day each way on average 

(see figure 23). In 2010 the average number of passengers per day each way traveling 

between the Carlsbad area and San Jose dropped to just 812 – a loss of 24% of local 

passengers, or 257 passengers per day each way.

FIGURE 22: Average Daily Departures, Daily Available Seats, and Daily Onboard Passengers

SAN-SJC; July 2008 – March 2011; Source: US DOT T100 Data

1,5191,4761,4761,4731,478

1,4101,4611,4771,4911,5131,4771,5051,508

1,443

1,2581,2671,2441,2371,2001,2521,2901,3141,2781,2961,2681,211

1,1231,1161,1541,1481,132 1,1391,146 1,1641,147

1,0481,078

972

915

822

933 986

1,095

980

1,1041,1011,104

942 957 943 954

812 862

946 976 952

1,0421,010 988 947 945 953 909

799

901 895

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Available SDEW Onboard PDEW Flights DEW

14.3 13.9 13.9 13.8 14.0 13.5 13.9 14.1 14.2 14.4 14.1 14.4 14.3

13.1

9.2 9.3 9.1 9.1 8.8 9.2 9.5 9.6 9.4 9.6 9.3 8.9 8.3 8.2 8.5 8.4 8.3 8.6 8.4
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 36

While the largest reason for the decline in passengers between the Carlsbad area and San Jose

is likely the decline in available seats – down by a quarter since summer of 2009 – another factor 

was rising fares. The average one way fare between the Carlsbad area and San Jose in 2007 

was $86 (see figure 23). The average fare has risen 14% since then, to $98 each way in 2010.

Job Creation under This Strategic Plan

This strategic plan for new service under the federal Small Community Air Service Development 

Program is unique in that it has the potential to create a large number of new jobs in the 

Carlsbad area – many more new 

jobs than most other proposals. 

Because the airline benefitting from 

the Small Community Air Service 

Development Grant under this 

proposal is based in Carlsbad, itself, 

and will be using the McClellanPalomar Airport as its base of 

operations, it already employs a full 

headquarters staff within a few miles 

FIGURE 23: O&D Passengers and Average One Way Fares, SAN+CLD – SJC

2001 – 2010; Source: US DOT Table OD1A

817,310 828,190

721,160

788,510 774,970 787,100 780,430

686,670

608,410 592,550

1,119.6 1,134.5

987.9

1,080.2 1,061.6 1,078.2 1,069.1

940.6

833.4 811.7

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PDEW Total Passengers

$71

$65

$75 $76

$83

$91

$86

$90

$86

$98

FIGURE 24: Projected Job Growth at California Pacific Airlines,

Years One through Five in Carlsbad
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 37

of the Airport. That staff currently numbers almost 100 employees.

California Pacific Airlines will have an estimated $90 million annual economic contribution to the 

North County Economy. This figure is projected to grow to over $200 million by the Airline’s fifth 

year of operation. Once the airline is up and running, projected for early second quarter of 

2012, CP Air will employ over 150 people (see figure 24). Employment is forecasted to grow to 

more than 500 people by year five, creating many new jobs in North County. 
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 38

IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation

will award Small Community Grant Funding in September 2011. Once the award is announced, 

the McClellan-Palomar Airport will enter into a service agreement with California Pacific Airlines, 

providing detail on both the revenue guarantee and marketing portions of the proposal. Based 

on CP Air’s timeline for certification and service start, McClellan-Palomar Airport expects flights 

to begin in the early part of the second quarter of 2012.

Once service is announced and schedules are published, the Airport will begin marketing the 

new routes and working with California Pacific Airlines to monitor advance bookings. The Airport 

will continue its marketing program and continue to work with the new carrier to monitor the 

route once service begins. The Airport will submit grant status reports on a quarterly basis to the 

Department of Transportation throughout the proposed two year term of the minimum revenue 

guarantee.

While the estimated dates are targets, it is possible that new service could slip to later in 2012

should California Pacific Airlines not receive DOT certification on its current timeline.

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2011

Executive Grant Agreement with DOT October 2011

Negotiate Minimum Revenue Guarantee (MRG) With CPA October 2011

Announce Service December 2011

Publish Schedule December 2011

Begin Marketing of New Route December 2011

Monitor Advance Bookings January - April 2012

Service Launch April 2012

MRG Available for Service April 2012 - October 2014

Monitor Route Performance April 2012 - October 2014

Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2014

Close Grant October 2014
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 39

ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by California 

Pacific Airlines, McClellan-Palomar Airport proposes to use federal grant money awarded under 

the Small Community Air Service Development Program for other carriers that can provide 

connections to a large origin and destination market in the West, or connectivity through a large 

hub. The Airport will continue its discussions with all other airlines that can provide additional 

seats to strong markets. 

Since the community has never before received a Small Community Air Service Development 

Grant, it will have no limitations on which new hub the DOT could fund. Among the options are 

Alaska Airlines/Horizon Air service to San Jose or Sacramento; Delta service to Salt Lake City; US 

Airways service to Phoenix; Frontier Airlines service to Denver; and/or United service to Denver. 

The Airport will not, however, be limited by this list of potential destinations, as the landscape for 

service could change before the Grant is awarded.
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 40

PUBLIC/PRIVATE PARTNERSHIP

San Diego County and McClellan-Palomar Airport consistently work together, with several 

community organizations, on air service development projects. Many local partners have 

committed to work with the Airport to promote and market the new service. The Airport and the 

County will manage and coordinate the marketing program.

Major partners are listed below, with profiles of their organizations. Other, smaller partners, 

including many area businesses, will also work with County Airports to promote and support 

additional local air service, beyond the major organizations listed below.

California Pacific Airlines

California Pacific Airlines is the cash partner in this Small Community Air Service Development 

Grant proposal, making a commitment of $300,000 in direct marketing money. The Airline 

already leases space at McClellan-Palomar Airport, paying monthly terminal fees for a ticket 

counter and office space. The Airline is committed to its partnership with the Airport.

The Airline will begin with five pure-jet aircraft, Brazilian-built Embraer 170s. The Embraer is a 70-

passenger, twin-engine, which will be the quietest jet aircraft (Stage 4) to fly out of Palomar 

Airport. The aircraft has a 1,550-mile range, and the planned CP Air passenger configuration will 

have 6 First Class, 20 Business Class, and 44 Economy seats. With a 2x2 configuration, the aircraft 

will have no middle seats and more leg room. 

San Diego North County Economic Development Council

The San Diego North County Economic Development Council has a mission to grow and sustain 

the economy of San Diego’s North County through attraction, retention and new business 

development. The group is a member-driven coalition of the private and public sectors working 

together to sustain and carefully grow the economic base of San Diego’s North County. The 

Group’s main goal is to market the area internally and externally in an effort to retain and 

attract quality businesses and create additional, higher paying jobs. The San Diego North EDC 

works with businesses, chambers of commerce, health organizations, local governments and 

educational institutions to improve the quality of life and economic sustainability of North 

County. The EDC also undertakes initiatives to establish North County as a "business-friendly" 
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 41

region and promote a regional approach to marketing North County as "San Diego's Smart 

Place to Grow" a business.

San Diego North Chamber of Commerce

The San Diego North Chamber of Commerce is the steward for business in the region’s

communities, supporting businesses of every size through proven programming, a unified voice 

in front of government, and dedicated committees. Strong support from membership allows the 

Chamber to thoroughly focus on each individual community while providing the benefit of a 

regional Chamber of Commerce.

The Chamber has three main areas of focus: 

1. Business Development – To identify and promote policies and programs that allow 

companies to invest in the region either through retention or expansion.

2. Workforce Development – Provide a regional workforce that is capable and competent 

through collaboration with business and education. 

3. Infrastructure – Develop and implement strategies to ensure regional capacity in six 

business-critical categories: water, housing, energy, transportation, economic 

competitiveness and environmental stewardship. 

Carlsbad Chamber of Commerce

With more than 1,600 member businesses employing 65,000 or more, the Carlsbad Chamber is 

the second largest chamber in San Diego County and the 10th largest in California. It truly is an 

influential force for the region’s business community. It’s important to note that the Carlsbad 

Chamber is independent from government. The Chamber receives no operating funds from the 

City of Carlsbad or any other government agency. 

San Diego North Convention and Visitors Bureau

The San Diego North Convention and Visitors Bureau is a full-service organization providing 

information and assistance to the region's tourism and hospitality industries, including the areas 

of La Jolla north to Oceanside, Rancho Bernardo north to Fallbrook, Julian and the Anza-Borrego 

Desert. The CVB works closely with its members to promote San Diego North as a premier, yearround resort destination, including McClellan-Palomar Airport.
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 42

Palomar Airport Association (PAA)

The Palomar Airport Association (PAA) is an all-volunteer California Corporation. The PAA is a 

general-interest, public-benefit community service organization for pilots and non-pilots alike, for 

McClellan-Palomar Airport. The PAA is an aviation resource for the community, government 

agencies and the press for McClellan Palomar Airport.

The PAA works together with neighboring aviation organizations and supporters for the benefit of 

McClellan-Palomar Airport. The Group’s focus is airport preservation and education, and it

promotes balanced public airport use for all types/classes of aviation--from small private 

aviation through commercial operations. PAA hosts community programs, events, education, 

public relations and coordination of volunteer support activities. The PAA believes that when 

everyone gets together, things are better for all: for aviation users, businesses and the 

community.
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 43

FUNDING PLAN

Marketing and Advertising

McClellan-Palomar Airport proposes to spend $800,000 in funds on marketing and advertising 

promotions in support of California Pacific Airlines’ new service at the Airport. The goal is to

decrease leakage and increase ridership and usage of new service through campaigns

targeted at north San Diego County. $300,000 of the marketing budget will come from 

California Pacific Airlines, itself, while $1,000,000 will come from the SCASD Program.

Revenue Guarantee

McClellan-Palomar Airport proposes to make available $500,000 in funds for a revenue 

guarantee to California Pacific Airlines, to cover start-up losses that may occur during the first 12 

months of service. Subject to negotiation, payments will be made to the new airline quarterly 

when income derived from passengers and cargo is less than agreed expenses on the route. 

Revenue generated that exceeds expenses will be carried forward and tapped before any 

grant funds are used.

In-Kind Services

The following organizations will help promote the new service through their various membership 

groups. There is no estimated value to these services.

• California Pacific Airlines

• Carlsbad Chamber of Commerce

• San Diego North Convention and Visitors Bureau

• San Diego North Chamber of Commerce

• San Diego North County Economic Development Council

• Palomar Airport Association

• County of San Diego

• City of Carlsbad
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 44

Additional Costs

As part of this program, McClellan-Palomar Airport understands that additional expenses will be 

incurred, such as monitoring the results of the program and reporting those results back to the US 

DOT. In addition, the Airport expects to incur some expenses in the negotiation of the revenue 

guarantee with California Pacific Airlines. The Airport will fund these projects out of other Airport 

sources.
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 45

PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of new service will be based on three measurable variables: the increase in 

available seats in the market, the number of enplanements on the route, and the average 

airfares charged in the affected city-pairs. The first two measurements will include a monthly 

comparison once the program begins to post numbers. The third measurement will be derived 

from US DOT OD1A reports.

As the sponsor, McClellan-Palomar Airport, and the Airport’s operator, County of San Diego, will 

be the responsible parties for all fiscal matters and DOT reporting requirements. As a public 

entity the DOT can be assured that proper financial controls are in place to guarantee that the 

DOT’s grant will be used in accordance with any subsequent agreement. The Airport 

understands that the grant is a reimbursable grant, meaning the Airport is responsible for 

program expenditures and will submit invoices to the DOT for reimbursement, based on a 

percentage of the total grant request.

The Airport has developed this proposal as a one-time grant. The advertising and marketing 

program will commence a few months before service starts and last for at least 12 months. The 

revenue guarantee program will also be in place for 12 months, with two additional 12-month 

periods available for negotiation. It is projected that the service will be financially self-sustaining 

within the second 12 months of service. 
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 46

LEGAL SPONSOR

McClellan-Palomar Airport is the legal sponsor responsible for administering the program.

McClellan-Palomar Airport is a government entity.

McClellan-Palomar Airport

2192 Palomar Airport Road

Carlsbad, California 92011

Peter Drinkwater, Director of Airports

619.956.4800

Peter.Drinkwater@sdcounty.ca.gov
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 47

LETTERS OF SUPPORT
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McClellan

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McClellan

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McClellan

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McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 57

AVAILABILITY OF ALTERNATE AIRPORTS

Carlsbad, California is serviced by McClellan-Palomar Airport, located 2.9 miles off Interstate 5. 

The Carlsbad catchment area, seen in orange (See figure 25), is home to almost 1.15 million. 

• The Carlsbad area comprises 12.3% of the overall population of the entire shaded area –

the area that includes San Diego, Carlsbad, Orange County, and Long Beach.

• The total population of the shaded area is 9.3 million, making it one of the most populous 

one-hour catchment areas of any airport in the country. 

FIGURE 25: Location of San Luis Obispo County in relation to other Southern California airports 
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 58

AIRPORT INFORMATION

Expansion has been ongoing since the airport’s opening in 1959, culminating in the 2008 Grand 

Opening of a new 18,000 sq. ft. state-of-the-art terminal building. This building combines airline 

terminal/security screening with a restaurant, Customs facility and other amenities. The 

terminal’s overhead canopies mimic sailboats and shell-encrusted floors form sweeping conch 

shell patterns, reminiscent of the ocean only a few miles away. Floor-to-ceiling windows and

several outdoor areas provide passengers the opportunity to 

watch aircraft come and go. Rocking chairs offer a place to 

sit and wait for passengers or take a quick break.

The airport has a single 5,000 ft. runway that underwent a 

major renovation in August 2010. With the new terminal 

building and 5,000-foot runway, McClellan-Palomar Airport is

one of the most modern airports in the country, an airport 

that the citizens of Carlsbad and all of San Diego County can 

be proud of; and one of the finest bases for aviation 

businesses on the west coast.

New Terminal Building

McClellan-Palomar Airport
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 59

COMMUNITY PROFILE

The City of Carlsbad prides itself on providing an exceptionally high level of service to its 

residents. This mid-sized city has maintained its small-town feel by carefully managing growth, 

encouraging community involvement and preserving almost half of the city as open space.

Carlsbad is home to 106,804 residents with a median age of 41 years. The median family income 

in Carlsbad was $104,412 in 2009 – one of the highest median incomes in the State of California –

an increase of 9.5% since 2008. Carlsbad residents spend an average of $8,000 on vacation 

each year – almost $2,000 above the national average spent on vacation. 

The City offers its residents a thriving Parks and Recreation system as well as an extensive trail 

system. While the citywide trails system provides many recreational opportunities to enjoy the 

City's unique natural areas, it also provides a comprehensive network for non-motorized 

transportation routes, connecting neighborhoods to commercial and business areas, schools, 

parks, and Carlsbad beaches.

Tourism in the Carlsbad Region

Carlsbad is an area worthy of the 30 million visitors it attracts each year. San Diego County 

enjoys more than 30 million leisure travelers a year and those travelers spend more than $8 billion 

throughout the county. Boasting nearly seven miles of beautiful beaches, picturesque lagoons 

and the charm of a European village coupled with world class golf, spas and shopping --

Carlsbad provides something for every travel taste and budget.

Carlsbad is host to unmatched shopping, dining, beaches, golf, nature and attractions such as 

LEGOLAND® California, sporting events and seasonal festivals. Major Events include the

Carlsbad Marathon, Carlsbad 5000, Junior Carlsbad, Carlsbad Village Street Faire, Carlsbad 

Triathlon, Art in the Village, ArtSplash, Beach'n 101 Cruise, Bike MS Bay to Bay Tour, Oktoberfest, 

Jazz in the Park (seasonal), and Shakespeare in the Park (seasonal).
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 60

Beaches

Carlsbad is home to seven miles of pristine, 

uncrowded and sun-drenched beaches. 

Renowned as one of the best surf spots in 

Southern California, there’s plenty of water and 

sand for all to enjoy. Visitors can walk along the 

water’s edge, splash in the waves or soak in 

the sun. For the more adventurous, the area also offers surfing, sailing, jet skiing, fishing, 

kayaking, swimming, boogie boarding, biking, birding, nature walks, golf, tennis, hiking, and 

whale watching.

Resorts

In Carlsbad, golf isn’t just a game, it’s an experience. Beautifully designed, world-class courses 

offer unmatched amenities, such as GPS-equipped golf carts that help gauge your next shot, 

gorgeous clubhouses to relax in, golf classes with top golf pros, and nearby resorts and spas for 

when you’re done playing and want to unwind.

LEGOLAND® California and Water Park

The 128-acre Park is designed specifically to appeal to families with children 

ages 3 to 12. The Park features roller coasters, LEGO-themed rides, interactive 

shows, hands-on attractions, LEGO-building play areas, and the famously 

breathtaking Miniland, restaurants, shopping, landscaped features and 

gardens.

Opened June 2010, the world’s first and only LEGOLAND Water Park lets the

imagination flow at this interactive, splash-filled, fun time for the entire family. The centerpiece 

of the Water Park is a 45-foot-tall tower designed to immerse children in the creative world of 

LEGO®. The park also includes The Build-A-Raft river – a lazy river where guests float on their own 

custom-built LEGO raft as well as several water slides including six-person raft slides and oneperson tube slides as well as slides designed especially for toddlers.
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 61

Leo Carrillo Ranch Historic Park

Once part of the original 2,538 acre working rancho and 

vacation retreat of Leo Carrillo, (who acted in almost 100 films 

from 1927 to 1950 and co-starred in the TV series The Cisco Kid) 

this historic ranch is an extraordinary educational and 

recreational resource. The City of Carlsbad has stabilized, 

preserved and restored many of the buildings on this 27 acre 

parcel. Historic ranch structures include a visitors center, handcrafted adobe buildings, hacienda, reflecting pool, cabana, 

cantina, carriage house tack shed, stable, barn and foundry, and equipment shed.

SEA LIFE Aquarium

Merlin's SEA LIFE® attractions are an ideal, friendly and authoritative 

guide to the last great frontier...the seas and oceans of the world and 

their myriad mysterious and amazing inhabitants. Unrivalled display 

technology, biological expertise and entertainment skills combine to 

provide seamless journeys through US and tropical waters, and 

astonishing close encounters with everything from humble shrimps and starfish to seahorses, 

sharks and stingrays.

SEA LIFE® is designed to be a child’s first interactive guide to the life of the sea, combining 

active, hands-on learning with fascinating educational talks, and opportunities to have up close 

and personal encounters with a variety of sea creatures. A visit to SEA LIFE® is an experience like 

no other!
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 62

Carlsbad Economic Overview

At a time when many cities are experiencing population and job losses, Carlsbad is exceeding 

state and national averages in both areas. Population growth in Carlsbad outpaces growth 

throughout California. As of 2009 it is four points higher than San Francisco and Los Angeles (see 

figure 27).

From 2000 to 2008, jobs in Carlsbad grew by 22.80%. Since February, the Carlsbad/San Diego 

Economy has added 1,100 new full-time jobs – the second best job growth in California.

1.5%

2.7%

3.6%

3.9%

4.1% 4.3%

5.3%

6.9%

8.1%

1.04%

0.70%

0.40%

0.17% 0.31%

0.63% 1.58%

2.99%

4.38%

0.42% 0.57%

0.65%

0.34%

0.12%

-0.28%

0.18%

0.97%

1.82%

1.02% 1.90%

2.57%

2.95% 2.92%

2.54% 2.37%

2.98%

3.84%

-2%

0%

2%

4%

6%

8%

2001 2002 2003 2004 2005 2006 2007 2008 2009

Carlsbad-San Diego

San Francisco-Oakland

San Jose

FIGURE 27: Population Growth in Select California Metro Areas 
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 63

Employment in the Carlsbad Area 

Select Company Profiles

Callaway Golf Co.

Headquartered in Carlsbad, Callaway Golf Company is one of the world’s 

designers and manufacturers of golf equipment, including clubs, balls and 

apparel. High-end clientele include customers for their custom-made 

products. With ever-expanding global markets, including India, Korea, 

China, Europe and Latin America, the need for air service is undeniable. 

ViaSat, Inc.

ViaSat, Inc. is a high-technology company, specializing in the design and 

manufacture of communications and networking equipment with its global 

headquarters in Carlsbad. Sectors within which they work include the military, 

aviation, maritime and mass transit. With 13 additional offices of ViaSat and 

their subsidiaries around the world, employee air travel is frequent. The company also has a 

regular presence at industry conferences on both a national and global scale, requiring 

additional employee travel several times a month. 
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 64

LEGOLAND® California, LLC

LEGOLAND® California is a 128-acre family theme park located in 

Carlsbad, featuring more than 15,000 LEGO® models in the Park 

created from more than 35 million of the iconic LEGO® bricks. In 

addition to employing 1,100 people in the Carlsbad office, the park brings in more than 

1,750,000 visitors annually.

LaCosta Resort and Spa

Providing employment for 1,000 people in the Carlsbad area, La Costa 

Resort and Spa, “California's Playground for All Ages”, brings a taste of the 

coastal California lifestyle to each and every visitor. Set within a lovely 400-

acre village, La Costa Resort and Spa offers 610 spacious and wellappointed guestrooms including luxury Villas and 76 suites. La Costa is a place where high-end 

clientele with busy schedules escape the everyday to experience a life of play and leisure. 

More convenient air service would help this destination well. 

Life Technologies

The systems, consumables and services of Life Technologies enable researchers to accelerate 

scientific exploration, driving to discoveries and developments that make life even better. Their 

customers do their work across the biological spectrum, working to 

advance personalized medicine, regenerative science, molecular 

diagnostics, agricultural and environmental research, and 21st century 

forensics. While the Carlsbad headquarters employs 960, the corporation itself employs more 

than 9,500 company-wide in 60 offices in 28 countries, so local, national and global travel is 

essential for this diverse company. 

Gemological Institute of America

Established in 1931, the Gemological Institute of America is

headquartered in Carlsbad and is the world’s foremost 

authority on diamonds, colored stones, and pearls. GIA 

exists to protect all purchasers of gemstones, by providing 

the education, laboratory services, research, and instruments needed to accurately and 

objectively determine gemstone quality. The headquarters in Carlsbad, which also includes a 

laboratory and instrument center, employs 600 people, while the organization itself has 17 offices 

globally.
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 65

Military Presence

The Carlsbad Area is home to a major military installation with 38,000 active duty 

and over 60,000 military and civilian personnel. Camp Pendleton is located in 

North San Diego County, in Southern California. The base is adjacent to the City 

of Oceanside, a military town, by the Main Gate in the South. The size of Camp 

Pendleton is comparable to the size of the State of Rhode Island.

Marine Corps Base Camp Pendleton has the responsibility of providing housing, 

training facilities and logistical support for the Fleet Marine Force elements and other units 

assigned here. In addition, the base conducts specialized schools and other such training as the 

Commandant of the Marine Corps may direct.

Major commands are Marine Corps Base, 1st Marine Expeditionary Force, 1st Marine Division, 1st 

Marine Logistics Group, elements of the 3rd Marine Aircraft Wing, and many tenant units (Marine 

Corps Air Station Miramar, ACU-5, Balboa Naval Hospital, the Marine Corps Tactical Systems 

Support Activity (MCTSSA), Naval Weapons Station Fallbrook, and a Reserve Support Unit).

The neighboring cities of Carlsbad, Escondido, Fallbrook, Oceanside, San Clemente, San 

Marcos, Temecula and Vista provide employment, housing and services needed by the Camp 

Pendleton population.

Many military personnel use commercial flights for their personal travel during leaves and other 

uses. With nearly 100,000 people to accommodate, many of whom are on tight schedules, air 

service that provides a more convenient location and greater options in schedule would be a 

major benefit to this base.
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 66

COMPARISON TO OTHER COMMUNITIES IN REGION

FIGURE 27: Top 60 Southwest Region Markets Ranked by O&D Passengers

Q4 2010; Source: US DOT Table OD1A

Airport

1 Los Angeles, CA 3,262,610 3,801,070 4,028,890 3,759,550 40,865 3.9% 12.9% 14,852,120 40,691 2.1% 

2 Las Vegas, NV 3,435,850 3,691,240 3,561,780 3,475,090 37,773 1.0% 11.9% 14,163,960 38,805 -2.4% 

3 Denver, CO 2,685,070 2,992,150 3,229,240 2,950,010 32,065 5.4% 10.1% 11,856,470 32,483 4.3% 

4 San Francisco, CA 2,327,220 2,817,180 2,961,780 2,840,430 30,874 4.5% 9.7% 10,946,610 29,991 3.9% 

5 Phoenix, AZ 2,644,380 2,573,120 2,205,250 2,596,670 28,225 1.1% 8.9% 10,019,420 27,450 -1.2% 

6 San Diego, CA 1,666,760 1,880,730 2,016,600 1,834,270 19,938 0.2% 6.3% 7,398,360 20,269 -0.9% 

7 Honolulu, HI 1,220,170 1,318,350 1,385,400 1,277,440 13,885 -0.9% 4.4% 5,201,360 14,250 -4.6% 

8 Salt Lake City, UT 1,230,960 1,123,010 1,176,340 1,115,750 12,128 2.3% 3.8% 4,646,060 12,729 -1.5% 

9 Oakland, CA 901,110 1,076,100 1,121,660 1,062,350 11,547 -0.6% 3.6% 4,161,220 11,401 -1.7% 

10 Orange County, CA 949,130 1,068,280 1,070,610 1,019,250 11,079 -3.0% 3.5% 4,107,270 11,253 -0.5% 

11 Sacramento, CA 882,850 1,087,710 1,073,490 1,006,120 10,936 0.0% 3.4% 4,050,170 11,096 -0.7% 

12 San Jose, CA 813,650 978,420 993,440 953,360 10,363 1.9% 3.3% 3,738,870 10,243 -1.1% 

13 Albuquerque, NM 502,890 619,490 642,560 600,720 6,530 -1.5% 2.1% 2,365,660 6,481 -4.1% 

14 Ontario, CA 518,490 606,400 587,910 570,890 6,205 1.5% 2.0% 2,283,690 6,257 -0.5% 

15 Burbank, CA 516,040 567,870 563,040 546,970 5,945 -2.8% 1.9% 2,193,920 6,011 -2.7% 

16 Kahului, HI 492,000 538,990 578,610 518,040 5,631 11.1% 1.8% 2,127,640 5,829 2.3% 

17 Tucson, AZ 431,840 428,510 386,610 428,630 4,659 3.4% 1.5% 1,675,590 4,591 2.3% 

18 Reno, NV 413,030 427,370 454,830 376,800 4,096 1.3% 1.3% 1,672,030 4,581 2.2% 

19 Long Beach, CA 287,920 336,840 372,410 341,630 3,713 11.3% 1.2% 1,338,800 3,668 1.4% 

20 Kona, HI 258,410 269,980 283,820 268,320 2,917 6.7% 0.9% 1,080,530 2,960 -2.1% 

21 Kauai Island, HI 257,750 287,430 307,120 263,510 2,864 -0.2% 0.9% 1,115,810 3,057 -4.6% 

22 Colorado Springs, CO 165,310 203,570 217,670 194,550 2,115 -4.8% 0.7% 781,100 2,140 -7.8% 

23 Palm Springs, CA 205,480 142,700 86,550 150,700 1,638 0.2% 0.5% 585,430 1,604 -0.9% 

24 Hilo, HI 148,140 152,750 154,370 146,280 1,590 -6.7% 0.5% 601,540 1,648 -6.0% 

25 Fresno, CA 100,660 127,610 133,360 122,850 1,335 1.8% 0.4% 484,480 1,327 0.6% 

26 Mesa Gatew ay, AZ 101,740 100,760 96,800 102,160 1,110 32.5% 0.3% 401,460 1,100 39.9% 

27 Santa Barbara, CA 73,650 90,570 97,100 82,680 899 2.7% 0.3% 344,000 942 2.3% 

28 Grand Junction, CO 41,280 49,120 55,020 52,040 566 10.1% 0.2% 197,460 541 -4.7% 

29 Monterey, CA 38,050 47,140 44,490 40,450 440 -4.2% 0.1% 170,130 466 0.6% 

30 Durango, CO 31,820 37,860 49,100 36,380 395 1.6% 0.1% 155,160 425 11.0% 

31 San Luis Obispo, CA 25,940 30,130 29,620 33,520 364 23.6% 0.1% 119,210 327 11.1% 

32 Aspen, CO 80,470 32,160 52,760 32,740 356 -13.4% 0.1% 198,130 543 2.0% 

33 Eagle/Vail, CO 117,790 11,360 24,760 31,380 341 -9.4% 0.1% 185,290 508 8.2% 

34 Bakersfield, CA 20,070 23,950 24,070 26,480 288 15.7% 0.1% 94,570 259 3.3% 

35 Santa Rosa, CA 18,320 22,170 24,940 24,400 265 7.8% 0.1% 89,830 246 2.8% 

36 Arcata/Eureka, CA 18,140 22,780 20,770 23,100 251 -1.6% 0.1% 84,790 232 -11.2% 

37 Guam 20,590 23,630 26,080 22,770 248 8.1% 0.1% 93,070 255 3.3% 

38 Hoolehua, HI 13,370 13,570 13,610 21,120 230 50.6% 0.1% 61,670 169 -5.2% 

39 Hayden, CO 66,750 7,700 10,850 18,960 206 -6.1% 0.1% 104,260 286 -10.1% 

40 Yuma, AZ 19,890 17,990 14,680 18,830 205 -0.8% 0.1% 71,390 196 5.2% 

41 Montrose, CO 35,800 13,760 23,820 16,360 178 3.5% 0.1% 89,740 246 2.1% 

42 Saipan, PT 17,930 17,980 18,290 16,260 177 -3.7% 0.1% 70,460 193 1.2% 

43 Bull. City/Laughlin, AZ 23,250 15,650 14,810 13,230 144 53.5% 0.0% 66,940 183 15.5% 

44 Stockton, CA 7,040 9,320 19,370 12,760 139 145.4% 0.0% 48,490 133 81.5% 

45 Flagstaff, AZ 10,530 16,440 16,290 12,760 139 -14.5% 0.0% 56,020 153 -6.0% 

46 Redding, CA 10,240 13,380 12,120 12,500 136 8.1% 0.0% 48,240 132 3.7% 

47 Fort Collins, CO 7,700 7,680 7,530 11,300 123 71.5% 0.0% 34,210 94 15.8% 

48 Santa Maria, CA 9,660 11,760 12,270 11,150 121 8.5% 0.0% 44,840 123 10.0% 

49 Carlsbad, CA 6,320 4,010 6,170 9,880 107 54.4% 0.0% 26,380 72 7.0% 

50 Lanai City, HI 10,060 10,410 9,920 9,870 107 1.0% 0.0% 40,260 110 -3.3% 

51 Santa Fe, NM 7,860 11,580 11,800 9,410 102 77.2% 0.0% 40,650 111 319.5% 

52 Saint George, UT 8,550 9,450 3,160 9,240 100 8.6% 0.0% 30,400 83 -20.0% 

53 Kapolua, HI 8,820 9,340 9,370 9,110 99 7.4% 0.0% 36,640 100 -6.0% 

54 Rosw ell, NM 7,280 9,480 10,340 8,910 97 -10.7% 0.0% 36,010 99 0.7% 

55 Gunnison, CO 18,090 3,580 7,140 6,990 76 -8.0% 0.0% 35,800 98 -11.8% 

56 Chico, CA 5,100 6,020 4,570 5,700 62 -4.8% 0.0% 21,390 59 -8.2% 

57 Modesto, CA 5,170 6,410 4,830 5,650 61 -12.0% 0.0% 22,060 60 -16.9% 

58 Elko, NV 4,370 4,730 2,940 4,950 54 11.2% 0.0% 16,990 47 -5.0% 

59 Pueblo, CO 1,290 1,490 1,960 4,750 52 271.1% 0.0% 9,490 26 139.6% 

60 Rota, PT 5,840 4,320 4,780 4,400 48 -25.8% 0.0% 19,340 53 -15.4% 

1 Q 10 2 Q 10 3 Q 10 4 Q 10

Regional Passengers 27,267,070 29,884,300 30,426,720 29,223,010 317,641 2.2% 100.0% 116,801,100 320,003 0.1% 

4 Q 10 Dec-10 Dec-10 ?

2010 PDEW Qtr/Qtr Share PDEW YE YE/YE

Rank 1 Q 10 2 Q 10 3 Q 10 4 Q 10 4 Q 10 ?
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 67

Airport

1 Los Angeles, CA $549,420 $680,390 $733,660 $660,550 $3,610 10.3% 14.4% $2,624,020 $3,595 12.6% 

2 San Francisco, CA $385,390 $515,540 $546,150 $508,440 $2,778 14.5% 11.1% $1,955,520 $2,679 16.9% 

3 Las Vegas, NV $472,430 $542,610 $503,640 $489,990 $2,678 9.2% 10.7% $2,008,670 $2,752 10.0% 

4 Denver, CO $356,850 $411,120 $452,740 $410,350 $2,242 9.9% 8.9% $1,631,060 $2,234 10.7% 

5 Phoenix, AZ $386,610 $386,740 $322,410 $397,550 $2,172 12.5% 8.7% $1,493,310 $2,046 10.3% 

6 San Diego, CA $247,680 $292,450 $317,410 $285,780 $1,562 9.9% 6.2% $1,143,320 $1,566 11.1% 

7 Honolulu, HI $215,480 $246,930 $259,350 $250,000 $1,366 10.5% 5.4% $971,760 $1,331 5.9% 

8 Salt Lake City, UT $192,400 $180,130 $195,390 $178,970 $978 11.0% 3.9% $746,890 $1,023 12.8% 

9 Orange County, CA $131,360 $157,890 $166,910 $153,090 $837 12.2% 3.3% $609,250 $835 13.8% 

10 Sacramento, CA $119,180 $158,260 $162,310 $147,800 $808 10.3% 3.2% $587,550 $805 9.5% 

11 San Jose, CA $106,260 $142,360 $147,430 $136,330 $745 15.4% 3.0% $532,380 $729 14.1% 

12 Oakland, CA $105,700 $136,880 $146,380 $133,540 $730 6.4% 2.9% $522,500 $716 9.8% 

13 Kahului, HI $89,940 $94,380 $102,530 $97,080 $530 23.5% 2.1% $383,930 $526 11.8% 

14 Albuquerque, NM $71,710 $92,990 $98,760 $90,890 $497 7.2% 2.0% $354,350 $485 6.5% 

15 Ontario, CA $69,740 $87,320 $88,420 $81,180 $444 8.8% 1.8% $326,660 $447 9.8% 

16 Tucson, AZ $66,110 $69,980 $61,470 $70,900 $387 11.4% 1.5% $268,460 $368 9.9% 

17 Burbank, CA $61,000 $71,670 $73,650 $69,850 $382 5.5% 1.5% $276,170 $378 6.7% 

18 Reno, NV $58,650 $63,640 $69,130 $53,240 $291 3.5% 1.2% $244,660 $335 8.3% 

19 Kona, HI $45,330 $47,790 $48,110 $50,360 $275 23.1% 1.1% $191,590 $262 13.5% 

20 Kauai Island, HI $41,650 $49,350 $52,640 $48,120 $263 15.8% 1.0% $191,760 $263 10.3% 

21 Long Beach, CA $29,540 $38,030 $40,890 $39,770 $217 16.4% 0.9% $148,230 $203 5.3% 

22 Colorado Springs, CO $28,420 $36,070 $37,720 $33,230 $182 0.2% 0.7% $135,440 $186 0.0% 

23 Palm Springs, CA $34,440 $23,560 $14,920 $26,790 $146 10.2% 0.6% $99,710 $137 4.6% 

24 Fresno, CA $18,100 $24,050 $26,210 $24,570 $134 18.2% 0.5% $92,930 $127 11.1% 

25 Santa Barbara, CA $12,790 $16,190 $18,810 $16,260 $89 12.8% 0.4% $64,050 $88 10.3% 

26 Hilo, HI $13,690 $14,920 $14,990 $15,340 $84 23.1% 0.3% $58,940 $81 24.7% 

27 Guam $10,510 $12,550 $15,100 $11,420 $62 27.9% 0.2% $49,580 $68 13.7% 

28 Grand Junction, CO $7,010 $8,850 $9,540 $9,610 $53 17.3% 0.2% $35,010 $48 5.7% 

29 Mesa Gatew ay, AZ $9,790 $8,960 $7,420 $9,030 $49 40.7% 0.2% $35,200 $48 45.5% 

30 Monterey, CA $6,620 $8,740 $9,240 $7,730 $42 6.6% 0.2% $32,330 $44 10.6% 

31 Aspen, CO $16,960 $6,990 $12,800 $7,500 $41 -8.6% 0.2% $44,250 $61 9.9% 

32 Eagle/Vail, CO $21,990 $2,510 $4,610 $6,990 $38 -0.6% 0.2% $36,100 $49 19.7% 

33 Durango, CO $5,340 $6,490 $8,750 $6,600 $36 6.1% 0.1% $27,180 $37 15.0% 

34 San Luis Obispo, CA $4,540 $5,530 $6,360 $6,590 $36 17.9% 0.1% $23,020 $32 3.9% 

35 Bakersfield, CA $4,330 $5,370 $5,630 $6,100 $33 29.0% 0.1% $21,430 $29 12.9% 

36 Yuma, AZ $4,480 $4,400 $3,750 $4,580 $25 7.0% 0.1% $17,210 $24 10.2% 

37 Arcata/Eureka, CA $3,460 $4,290 $3,950 $4,030 $22 -8.4% 0.1% $15,730 $22 -6.0% 

38 Hayden, CO $10,450 $1,660 $2,320 $3,910 $21 -5.1% 0.1% $18,340 $25 -0.4% 

39 Montrose, CO $6,500 $2,830 $4,790 $3,310 $18 5.8% 0.1% $17,430 $24 13.3% 

40 Santa Rosa, CA $2,000 $2,640 $3,030 $2,830 $15 12.7% 0.1% $10,500 $14 7.6% 

41 Flagstaff, AZ $1,830 $3,010 $3,130 $2,760 $15 14.0% 0.1% $10,730 $15 14.5% 

42 Pago Pago, PT $2,820 $3,810 $3,660 $2,540 $14 -28.0% 0.1% $12,830 $18 -5.5% 

43 Bull. City/Laughlin, AZ $3,210 $2,180 $2,210 $2,090 $11 69.9% 0.0% $9,690 $13 27.8% 

44 Rosw ell, NM $1,550 $2,050 $2,260 $1,910 $10 3.2% 0.0% $7,770 $11 7.3% 

45 Redding, CA $1,680 $2,190 $2,390 $1,860 $10 -13.5% 0.0% $8,120 $11 -1.0% 

46 Santa Fe, NM $1,380 $2,390 $2,420 $1,850 $10 96.8% 0.0% $8,040 $11 372.9% 

47 Santa Maria, CA $1,470 $1,720 $2,060 $1,730 $9 10.9% 0.0% $6,980 $10 5.3% 

48 Saipan, PT $1,990 $2,220 $2,330 $1,700 $9 9.0% 0.0% $8,240 $11 18.7% 

49 Gunnison, CO $2,960 $710 $1,450 $1,460 $8 -1.4% 0.0% $6,580 $9 2.3% 

50 Carlsbad, CA $800 $510 $970 $1,130 $6 50.7% 0.0% $3,410 $5 21.8% 

51 Lanai City, HI $1,010 $900 $820 $950 $5 8.0% 0.0% $3,680 $5 -1.6% 

52 Hoolehua, HI $710 $660 $670 $910 $5 37.9% 0.0% $2,950 $4 1.4% 

53 Kapolua, HI $880 $920 $910 $880 $5 1.1% 0.0% $3,590 $5 -1.9% 

54 Inyokern, CA $920 $1,140 $1,240 $860 $5 -1.1% 0.0% $4,160 $6 -6.9% 

55 Saint George, UT $810 $960 $690 $830 $5 13.7% 0.0% $3,290 $5 3.1% 

56 Chico, CA $650 $800 $770 $790 $4 9.7% 0.0% $3,010 $4 16.2% 

57 Modesto, CA $720 $850 $890 $760 $4 -1.3% 0.0% $3,220 $4 3.2% 

58 Elko, NV $640 $700 $890 $710 $4 24.6% 0.0% $2,940 $4 25.6% 

59 Fort Collins, CO $440 $420 $370 $690 $4 72.5% 0.0% $1,920 $3 11.6% 

60 Farmington, NM $530 $650 $670 $640 $3 39.1% 0.0% $2,490 $3 27.0% 

1 Q 10 2 Q 10 3 Q 10 4 Q 10

Regional Revenue $4,056,860 $4,697,340 $4,835,880 $4,592,190 $25,094 11.2% 100.0% $18,182,270 $24,907 11.2% 

2010 RDEW Qtr/Qtr Share RDEW YE/YE

Rank 1 Q 10 2 Q 10 3 Q 10 4 Q 10 4 Q 10 ? 4 Q 10 Dec-10 Dec-10 ?

FIGURE 28: Top 60 Southwest Region Markets Ranked by O&D Revenue

Q4 2010; Source: US DOT Table OD1A
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 68

Airport

1 Guam $533.40 $554.61 $601.64 $533.00 19.5% $86.96 $557.97 10.7% $54.10 

2 Eagle/Vail, CO $236.52 $264.75 $222.82 $278.77 10.9% $27.44 $243.56 13.1% $28.24 

3 Aspen, CO $241.19 $242.20 $265.33 $258.65 7.0% $17.01 $250.83 8.2% $19.10 

4 Yuma, AZ $233.94 $252.11 $264.05 $253.08 8.5% $19.86 $249.78 5.3% $12.57 

5 Bakersfield, CA $225.33 $238.23 $245.21 $241.16 11.5% $24.90 $238.08 10.5% $22.56 

6 Hayden, CO $187.04 $235.47 $231.29 $238.47 1.7% $3.94 $205.28 13.8% $24.93 

7 Gunnison, CO $192.32 $221.23 $222.87 $231.67 4.2% $9.28 $209.51 18.3% $32.39 

8 Montrose, CO $212.32 $230.30 $228.10 $228.61 0.7% $1.54 $222.37 12.7% $25.10 

9 Rosw ell, NM $221.73 $224.28 $226.57 $225.17 17.6% $33.75 $224.64 6.9% $14.44 

10 Flagstaff, AZ $181.50 $189.68 $198.41 $224.96 33.0% $55.84 $198.73 20.8% $34.17 

11 Santa Fe, NM $202.54 $226.22 $231.49 $220.65 9.9% $19.89 $221.99 11.4% $22.72 

12 Santa Barbara, CA $194.39 $196.72 $212.16 $215.72 8.4% $16.77 $205.20 7.7% $14.73 

13 Honolulu, HI $194.20 $203.90 $204.63 $214.60 11.4% $21.99 $204.45 12.1% $22.07 

14 San Luis Obispo, CA $193.14 $201.01 $233.63 $213.13 -4.5% -$10.11 $210.89 -4.9% -$10.76 

15 Fresno, CA $190.71 $201.55 $210.67 $212.95 15.4% $28.36 $204.68 10.6% $19.65 

16 Kahului, HI $207.91 $196.76 $198.73 $210.61 10.2% $19.54 $203.23 9.5% $17.67 

17 Monterey, CA $189.22 $200.78 $229.07 $210.29 12.9% $24.06 $207.76 10.5% $19.68 

18 Kona, HI $198.41 $197.24 $190.51 $209.02 15.2% $27.64 $198.70 17.2% $29.09 

19 Kauai Island, HI $179.87 $190.81 $191.36 $203.20 15.9% $27.86 $191.36 16.6% $27.24 

20 Palm Springs, CA $191.03 $186.82 $192.01 $200.84 10.0% $18.23 $192.68 5.8% $10.61 

21 Grand Junction, CO $180.36 $190.25 $185.04 $196.70 7.0% $12.90 $188.43 11.6% $19.57 

22 San Francisco, CA $177.24 $198.40 $202.19 $194.16 10.1% $17.85 $193.76 13.1% $22.39 

23 Durango, CO $180.01 $182.03 $187.70 $193.64 5.0% $9.17 $186.14 3.5% $6.31 

24 Los Angeles, CA $181.77 $193.09 $198.30 $190.29 6.5% $11.62 $191.29 10.7% $18.54 

25 Arcata/Eureka, CA $208.17 $202.84 $202.49 $186.96 -8.7% -$17.80 $199.53 4.8% $9.09 

26 Colorado Springs, CO $182.78 $188.18 $184.90 $182.03 5.4% $9.30 $184.59 9.5% $15.98 

27 Tucson, AZ $165.80 $175.51 $171.74 $178.45 7.5% $12.50 $172.90 7.7% $12.31 

28 Salt Lake City, UT $172.06 $173.60 $180.87 $174.46 8.8% $14.15 $175.25 15.0% $22.87 

29 San Diego, CA $159.17 $167.31 $171.02 $167.35 10.2% $15.45 $166.48 12.8% $18.87 

30 Redding, CA $182.52 $181.51 $214.96 $166.11 -18.0% -$36.57 $186.31 -3.8% -$7.43 

31 Phoenix, AZ $158.56 $163.01 $160.31 $165.65 11.7% $17.37 $161.93 12.3% $17.72 

32 Albuquerque, NM $156.13 $164.48 $170.81 $165.12 9.0% $13.57 $164.56 11.8% $17.36 

33 Santa Maria, CA $158.34 $152.33 $174.46 $162.43 3.0% $4.71 $162.20 -4.1% -$7.00 

34 Orange County, CA $148.21 $159.15 $170.13 $161.95 16.4% $22.84 $160.13 14.8% $20.69 

35 Bull. City/Laughlin, AZ $138.20 $139.00 $149.30 $158.30 11.1% $15.80 $144.82 10.8% $14.12 

36 Sacramento, CA $144.04 $155.43 $162.72 $156.86 10.6% $15.05 $155.22 10.6% $14.89 

37 Chico, CA $142.36 $151.13 $183.24 $152.99 14.3% $19.13 $156.52 25.6% $31.95 

38 Reno, NV $154.36 $160.32 $166.08 $152.43 2.3% $3.50 $158.62 6.2% $9.29 

39 Modesto, CA $148.79 $147.21 $202.68 $152.30 9.5% $13.24 $161.02 20.5% $27.37 

40 San Jose, CA $138.10 $154.54 $158.54 $150.97 13.2% $17.64 $151.09 15.5% $20.32 

41 Ontario, CA $142.39 $152.66 $160.30 $150.39 7.1% $9.98 $151.71 10.1% $13.97 

42 Las Vegas, NV $146.13 $156.12 $151.16 $150.12 8.1% $11.28 $150.98 13.1% $17.45 

43 Elko, NV $149.26 $150.69 $314.99 $148.19 10.1% $13.64 $177.76 30.3% $41.35 

44 Denver, CO $142.23 $145.92 $150.00 $148.06 4.2% $6.00 $146.73 5.9% $8.23 

45 Burbank, CA $125.36 $134.44 $140.57 $135.60 9.3% $11.49 $134.14 10.0% $12.22 

46 Oakland, CA $124.97 $136.34 $140.72 $133.36 7.6% $9.44 $134.27 11.9% $14.30 

47 Carlsbad, CA $144.43 $151.36 $179.38 $127.99 -9.2% -$12.95 $147.33 6.3% $8.77 

48 Santa Rosa, CA $112.26 $124.33 $127.80 $120.24 5.4% $6.17 $121.68 4.9% $5.65 

49 Long Beach, CA $107.16 $119.03 $117.90 $119.72 3.8% $4.39 $116.33 4.8% $5.36 

50 Hilo, HI $98.54 $104.02 $103.71 $112.40 32.5% $27.55 $104.62 34.6% $26.89 

51 Saipan, PT $111.94 $124.09 $128.30 $105.47 13.3% $12.39 $117.81 17.6% $17.65 

52 Saint George, UT $100.55 $108.09 $233.37 $98.75 5.1% $4.83 $116.24 25.8% $23.83 

53 Kapolua, HI $100.50 $98.73 $97.42 $96.52 -6.1% -$6.29 $98.27 4.0% $3.82 

54 Lanai City, HI $100.90 $86.35 $83.30 $96.29 5.8% $5.24 $91.67 1.5% $1.35 

55 Pueblo, CO $139.18 $158.87 $145.54 $93.68 -38.5% -$58.62 $120.90 -23.9% -$37.99 

56 Mesa Gatew ay, AZ $96.41 $89.06 $76.88 $88.77 6.5% $5.41 $87.91 4.1% $3.45 

57 Fort Collins, CO $58.13 $55.23 $49.90 $61.61 0.9% $0.52 $56.81 -2.6% -$1.53 

58 Stockton, CA $48.01 $51.30 $38.98 $47.30 -5.0% -$2.49 $44.85 -4.8% -$2.28 

59 Rota, PT $47.00 $51.70 $48.20 $45.00 -0.9% -$0.40 $47.89 4.1% $1.89 

60 Hoolehua, HI $53.36 $48.41 $49.18 $43.12 -8.6% -$4.05 $47.84 6.6% $2.98 

1 Q 10 2 Q 10 3 Q 10 4 Q 10

Average Regional Fare $160.30 $169.01 $172.28 $169.08 9.0% $13.94 $167.84 11.5% $17.29 

2010 Qtr/Qtr Qtr/Qtr YE/YE YE/YE

Rank 1 Q 10 2 Q 10 3 Q 10 4 Q 10 % ? Fare ? Dec-10 % ? Fare ?

FIGURE 29: Top 60 Southwest Region Markets Ranked by Domestic Fare

Q4 2010; Source: US DOT Table OD1A
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 69

Airport

1 Rota, PT 63.86¢ 40.85¢ 59.08¢ 68.46¢ 0.3% 0.18¢ 55.94¢ -13.5% -8.75¢ 

2 Hoolehua, HI 24.70¢ 31.42¢ 35.19¢ 39.37¢ 14.4% 4.97¢ 32.08¢ -1.3% -0.41¢ 

3 Lanai City, HI 22.70¢ 27.28¢ 23.13¢ 26.67¢ 9.3% 2.26¢ 24.76¢ 3.9% 0.93¢ 

4 Saipan, PT 23.52¢ 22.86¢ 22.86¢ 23.33¢ 0.4% 0.09¢ 23.12¢ -3.8% -0.91¢ 

5 Aspen, CO 20.37¢ 20.52¢ 23.18¢ 21.88¢ 7.3% 1.49¢ 21.40¢ 8.0% 1.58¢ 

6 Kapolua, HI 19.85¢ 21.51¢ 21.91¢ 21.14¢ -1.5% -0.32¢ 21.08¢ 3.6% 0.73¢ 

7 Santa Rosa, CA 20.38¢ 21.99¢ 22.51¢ 21.14¢ 6.5% 1.29¢ 21.58¢ 8.9% 1.77¢ 

8 Hilo, HI 17.67¢ 17.58¢ 17.99¢ 20.36¢ 25.5% 4.13¢ 18.36¢ 16.6% 2.62¢ 

9 Eagle/Vail, CO 16.75¢ 20.22¢ 17.37¢ 20.17¢ 11.7% 2.11¢ 17.61¢ 13.9% 2.15¢ 

10 Santa Fe, NM 17.29¢ 17.69¢ 19.00¢ 19.95¢ 8.1% 1.49¢ 18.51¢ 3.4% 0.61¢ 

11 Rosw ell, NM 20.73¢ 20.64¢ 21.07¢ 19.74¢ 4.9% 0.92¢ 20.56¢ 1.1% 0.23¢ 

12 Gunnison, CO 15.99¢ 18.63¢ 20.05¢ 19.30¢ 4.9% 0.90¢ 17.74¢ 19.9% 2.95¢ 

13 Durango, CO 17.35¢ 17.31¢ 17.94¢ 18.87¢ 8.2% 1.42¢ 17.88¢ 4.0% 0.68¢ 

14 Hayden, CO 13.91¢ 18.34¢ 18.94¢ 18.43¢ 4.7% 0.82¢ 15.58¢ 11.5% 1.61¢ 

15 Grand Junction, CO 17.06¢ 17.09¢ 16.40¢ 18.30¢ 6.4% 1.09¢ 17.20¢ 8.1% 1.29¢ 

16 Bakersfield, CA 15.76¢ 16.45¢ 16.33¢ 17.81¢ 15.8% 2.43¢ 16.64¢ 12.3% 1.82¢ 

17 Flagstaff, AZ 14.54¢ 15.28¢ 15.86¢ 17.22¢ 21.0% 2.99¢ 15.77¢ 14.8% 2.03¢ 

18 Yuma, AZ 16.06¢ 16.45¢ 16.72¢ 16.90¢ 7.8% 1.23¢ 16.53¢ 3.1% 0.50¢ 

19 Montrose, CO 15.08¢ 16.97¢ 17.78¢ 16.87¢ 1.8% 0.30¢ 16.39¢ 12.4% 1.81¢ 

20 Burbank, CA 16.18¢ 16.76¢ 16.57¢ 16.81¢ 10.3% 1.56¢ 16.59¢ 10.5% 1.58¢ 

21 Santa Maria, CA 16.74¢ 15.62¢ 16.81¢ 16.59¢ -2.2% -0.38¢ 16.44¢ -6.7% -1.18¢ 

22 Albuquerque, NM 15.40¢ 15.18¢ 15.47¢ 15.65¢ 7.9% 1.14¢ 15.42¢ 10.5% 1.47¢ 

23 Colorado Springs, CO 15.39¢ 15.47¢ 15.31¢ 15.47¢ 4.8% 0.71¢ 15.41¢ 7.4% 1.06¢ 

24 Salt Lake City, UT 14.73¢ 15.19¢ 15.63¢ 15.44¢ 5.7% 0.84¢ 15.24¢ 12.4% 1.68¢ 

25 Elko, NV 17.30¢ 16.68¢ 29.82¢ 15.28¢ 1.7% 0.26¢ 18.95¢ 28.2% 4.17¢ 

26 Pueblo, CO 22.46¢ 23.08¢ 24.29¢ 15.15¢ -41.7% -10.86¢ 19.33¢ -18.0% -4.24¢ 

27 Arcata/Eureka, CA 17.87¢ 16.06¢ 15.40¢ 15.07¢ -4.8% -0.77¢ 15.99¢ 5.1% 0.78¢ 

28 Fresno, CA 13.83¢ 13.90¢ 14.22¢ 14.75¢ 12.4% 1.63¢ 14.19¢ 7.8% 1.03¢ 

29 Guam 15.66¢ 15.09¢ 15.43¢ 14.68¢ 3.0% 0.42¢ 15.22¢ 6.7% 0.95¢ 

30 Palm Springs, CA 14.11¢ 14.14¢ 13.01¢ 14.67¢ 10.5% 1.39¢ 14.09¢ 5.0% 0.67¢ 

31 Santa Barbara, CA 14.18¢ 13.52¢ 14.26¢ 14.67¢ 4.8% 0.67¢ 14.16¢ 2.5% 0.34¢ 

32 Monterey, CA 13.55¢ 14.32¢ 15.53¢ 14.64¢ 8.6% 1.16¢ 14.55¢ 5.4% 0.74¢ 

33 Oakland, CA 14.16¢ 14.47¢ 14.14¢ 14.58¢ 11.8% 1.54¢ 14.34¢ 14.2% 1.78¢ 

34 Bull. City/Laughlin, AZ 12.01¢ 12.85¢ 14.48¢ 14.55¢ 9.4% 1.25¢ 13.22¢ 12.9% 1.51¢ 

35 Reno, NV 13.64¢ 13.85¢ 14.75¢ 14.41¢ 1.6% 0.23¢ 14.16¢ 3.6% 0.49¢ 

36 Tucson, AZ 13.41¢ 13.92¢ 13.82¢ 14.29¢ 5.2% 0.71¢ 13.86¢ 6.2% 0.81¢ 

37 Denver, CO 13.52¢ 13.70¢ 14.02¢ 14.06¢ 3.5% 0.48¢ 13.84¢ 5.5% 0.72¢ 

38 Orange County, CA 13.39¢ 13.53¢ 13.89¢ 13.83¢ 9.1% 1.16¢ 13.67¢ 11.0% 1.36¢ 

39 San Luis Obispo, CA 12.37¢ 12.70¢ 14.07¢ 13.65¢ -3.6% -0.51¢ 13.26¢ -6.4% -0.91¢ 

40 San Jose, CA 13.45¢ 13.71¢ 13.75¢ 13.65¢ 6.8% 0.87¢ 13.65¢ 11.4% 1.40¢ 

41 Phoenix, AZ 13.18¢ 13.16¢ 13.28¢ 13.58¢ 10.4% 1.28¢ 13.30¢ 11.7% 1.39¢ 

42 Stockton, CA 13.42¢ 14.29¢ 11.18¢ 13.52¢ -2.2% -0.31¢ 12.73¢ -3.0% -0.40¢ 

43 Ontario, CA 13.51¢ 13.43¢ 13.49¢ 13.50¢ 3.4% 0.44¢ 13.48¢ 5.6% 0.71¢ 

44 Sacramento, CA 13.29¢ 13.27¢ 13.21¢ 13.42¢ 5.5% 0.70¢ 13.29¢ 7.0% 0.87¢ 

45 Kona, HI 11.49¢ 11.32¢ 11.33¢ 12.66¢ 4.8% 0.57¢ 11.69¢ 7.1% 0.77¢ 

46 Saint George, UT 13.50¢ 13.17¢ 18.65¢ 12.60¢ -0.7% -0.09¢ 13.97¢ 17.5% 2.08¢ 

47 Redding, CA 15.43¢ 14.91¢ 16.85¢ 12.32¢ -32.2% -5.84¢ 14.82¢ -14.6% -2.54¢ 

48 Kauai Island, HI 11.08¢ 11.14¢ 11.37¢ 12.28¢ 4.9% 0.57¢ 11.46¢ 5.5% 0.60¢ 

49 San Diego, CA 11.87¢ 12.15¢ 12.24¢ 12.19¢ 7.4% 0.84¢ 12.12¢ 10.7% 1.17¢ 

50 San Francisco, CA 11.27¢ 11.99¢ 12.13¢ 11.99¢ 8.1% 0.89¢ 11.88¢ 11.8% 1.25¢ 

51 Las Vegas, NV 11.70¢ 12.15¢ 11.81¢ 11.87¢ 6.9% 0.77¢ 11.89¢ 12.0% 1.27¢ 

52 Los Angeles, CA 11.52¢ 11.81¢ 12.00¢ 11.84¢ 5.5% 0.62¢ 11.81¢ 9.9% 1.06¢ 

53 Long Beach, CA 9.24¢ 10.48¢ 11.08¢ 11.75¢ 19.2% 1.89¢ 10.66¢ 12.9% 1.22¢ 

54 Chico, CA 9.67¢ 10.84¢ 14.29¢ 11.32¢ 17.3% 1.67¢ 11.39¢ 23.0% 2.13¢ 

55 Kahului, HI 10.57¢ 10.13¢ 10.20¢ 11.00¢ 0.0% 0.00¢ 10.46¢ 0.9% 0.09¢ 

56 Modesto, CA 10.41¢ 10.38¢ 15.39¢ 10.85¢ 8.7% 0.87¢ 11.57¢ 20.3% 1.95¢ 

57 Honolulu, HI 9.88¢ 9.97¢ 10.24¢ 10.71¢ 5.6% 0.57¢ 10.20¢ 6.8% 0.65¢ 

58 Fort Collins, CO 9.26¢ 8.82¢ 7.97¢ 9.88¢ 1.6% 0.16¢ 9.08¢ -2.4% -0.22¢ 

59 Carlsbad, CA 10.24¢ 10.46¢ 12.97¢ 8.91¢ -3.5% -0.32¢ 10.41¢ 7.3% 0.71¢ 

60 Mesa Gatew ay, AZ 8.68¢ 8.05¢ 6.98¢ 8.41¢ 10.4% 0.79¢ 8.04¢ 3.9% 0.30¢ 

1 Q 10 2 Q 10 3 Q 10 4 Q 10 $12.38 $12.59 $12.72 $12.82 

Average Regional Yield 12.38¢ 12.59¢ 12.72¢ 12.82¢ 6.6% 0.79¢ 12.63¢ 9.4% 1.08¢ 

2010 Qtr/Qtr Qtr/Qtr YE/YE YE/YE

% ? Yld ? Rank 1 Q 10 2 Q 10 3 Q 10 4 Q 10 % ? Yld ? Dec-10

FIGURE 30: Top 60 Southwest Region Markets Ranked by Domestic Yield

Q4 2010; Source: US DOT Table OD1A
McClellan-Palomar Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 70

CONCLUSIONS

McClellan-Palomar Airport SCASD Program project is well thought out and ready to be put in 

place. California Pacific Airlines is the cash partner in the application, committing $300,000 of its 

own money to the project. The Airline is committed to launching service in Carlsbad. An 

agreement will be finalized with the carrier as soon as the Grant is awarded. Moreover, this 

Grant will do much more than simply link a community to a new hub. It will help to launch a new 

airline and support a new base of operations in the small community the Grant is designed to 

help – adding as many as 500 new jobs in Carlsbad in the next five years.

McClellan-Palomar Airport has seen continuous flight reductions over the last three years, 

resulting in almost a quarter fewer local available seats and, ultimately, fewer passengers. Many 

markets can tell the same story. But the story in Carlsbad is punctuated by the fact that the 

flight reductions have drastically increased the region’s passenger “leakage” to other airports in 

Southern California. The Airport retains just 1.6% of 

its local passengers. It loses more than 4,400 

passengers per day each way to other airports in 

the region.

This is a more critical situation in Southern 

California than in almost any other part of the 

country, due to the heavy congestion on virtually 

all freeways in and out of Carlsbad, at virtually all times of day. McClellan-Palomar Airport must 

do a better job serving its 1.13 million person catchment area by attracting additional air 

service.

The Airport feels that California Pacific Airlines should not be required to undertake this project 

alone. The addition of five new non-stop routes, a new start-up carrier, and the Airport’s first jet 

service in years will be a tremendous boost to the Carlsbad region as a whole. For these 

reasons, McClellan-Palomar Airport is seeking Small Community Air Service Development Grant

support for the project.

“The Airport retains just 1.6% of its 

local passengers. It loses more 

than 4,400 passengers per day 

each way to other airports...”