Legal sponsor: Ventura County

DUNS: 066691122

Tax ID: 95-6000944

Congressional District Code: CA-23

Contact: Jorge Rubio, CM, Airports Manager

Address: 555 Airport Way, Suite B

Camarillo, CA 93010-8530

Phone: (805) 388-4246

Email: Jorge.Rubio@ventura.gov

OXNARD AIRPORT APPLICATION UNDER 

THE SMALL 

COMMUNITY AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

Docket DOT-OST-2012-0069


Prepared by

APPLICATION 

UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

COUNTY OF 

VENTURA/OXNARD 

AIRPORT

TABLE OF CONTENTS

Application Highlights.............................................. 1

Lack of Air Service.............................................................1

Detailed Market Analysis ...................................................2

Community Cost Contribution............................................2

Public-Private Partnership .................................................2

Material Benefits................................................................2

Use of Funds in a Timely Fashion .....................................2

Air Service Environment .......................................... 3

Market Reach and Potential ..............................................3

Large and Diverse Employers ...........................................4

Military Presence...............................................................5

Tourism .............................................................................5

Air Service – Existing and Historical....................... 6

Historical Air Service .........................................................6

Destinations, Service Providers and Traffic Levels ....7

Extenuating Factors that have Affected Air Service ...8

Past Air Service Development Efforts................................8

Air Service Needs and Deficiencies ........................ 9

High Catchment Area Demand, No Service ......................9

Local, Convenient Access ...............................................10

Strategic Plan – Air Service.................................... 11

Project Goals...................................................................11

Proposed Air Service.......................................................11

Airline Participation..........................................................12

Market Analysis ...............................................................12

Forecast Assumptions..............................................12

Mature Market Results .............................................12

Airline Risk During Ramp-Up ...................................12

Alternate Plan..................................................................13

Strategic Plan – Implementation and 

Funding.............................................................. 14

Public-Private Partnership...............................................14

Incentive and Support Plan .............................................15

Marketing Campaign ................................................16

Revenue Guarantee.................................................16

Airline Travel Bank® ................................................16

Fee Waivers .............................................................17

Strategic Plan Funding ....................................................17

Project Continuation and Sustainability ...........................18

Schedule and Monitoring ....................................... 19

Milestones for Timely Completion of Project ...................19

Strategic Plan Monitoring Program..................................20

Appendix A. Community Support......................... 21

Government.....................................................................21

Public-Private Partnership...............................................21

Businesses and Organizations........................................21
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APPLICATION 

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AIRPORT

APPLICATION HIGHLIGHTS

his Small Community Air Service 

Development Program (SCASDP) grant 

application for Oxnard Airport (OXR) meets 

the criteria of Docket DOT-OST-2012-0069. 

The County of Ventura Department of Airports, the 

airport sponsor, is requesting $500,000 in federal 

assistance to implement a $993,013 air 

service initiative. 

The project goal is to re-introduce air service at 

OXR in order for catchment area passengers to 

access the national air transportation system. Reintroduction of air service is the region’s top priority.

The Strategic Plan, Alaska Airlines service to the

San Francisco Bay Area, will achieve the 

project goal.

Lack of Air Service

The lack of air service at OXR has led the community to drive to surrounding airports in order to 

access the national air transportation system. OXR’s last carrier, United Express operated by 

SkyWest Airlines, ended service in mid-2010. OXR has an estimated true market of over 1,080,000 

origin and destination passengers annually; however, with the lack of air service at OXR, all of those 

passengers must travel to other airports. Local Ventura County companies highly prefer to originate 

travel at OXR especially with the uncertainty of drive times associated with traveling to Burbank’s 

Bob Hope Airport (BUR) or Los Angeles International Airport (LAX) to start their travels. New 

competitive service to the San Francisco Bay Area will reduce passenger diversion for OXR’s top 

priority destinations.

T
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Detailed Market Analysis

The research and analysis necessary to determine the viability of OXR-San Francisco Bay Area service 

has been completed. The route forecast is positive, and feedback from Alaska has been encouraging. 

However, an incentive package to mitigate the start-up year’s risks will be required. Accordingly, OXR and 

its partners have created an incentive package as part of the Strategic Plan that addresses the economic 

risks that Alaska will face during start-up.

Community Cost Contribution

It is estimated that a $500,000 revenue guarantee, $100,000 one-year marketing program, Airline Travel Bank®, and fee 

waivers will be required for twice daily, roundtrip service to the San Francisco Bay Area. OXR and the community will fund 50 

percent of the proposed $993,013 Strategic Plan. Non-airport revenue sources will fund eight percent ($50,000) of the $595,000 

cash requirement.

Public-Private Partnership

The County of Ventura/OXR has formed a public-private partnership with eight private partners: Economic Development of 

Oxnard, Gold Coast Broadcasting, KCLU Radio, Oxnard Chamber of Commerce, Oxnard Convention & Visitors Bureau, 

Ventura Chamber of Commerce, the Ventura Convention and Visitors Bureau, and the Ventura County Lodging Association. 

This partnership has worked together in the past to improve air service at OXR. 

Material Benefits

OXR is important to the future economic prosperity of Ventura County, and its importance will continue to increase if air service 

is reintroduced. Within OXR’s catchment area are several major employers including a number of Fortune 1000 companies. 

Ventura County is also home to a significant military presence at both the US Navy Base Ventura County Point Mugu and the 

Navy’s SeaBees at Port Hueneme. With combined personnel of nearly 15,000, the US Navy has a critical need for local air 

service access. A link between OXR and the San Francisco Bay Area will help meet the needs of these sectors.

Use of Funds in a Timely Fashion

The public-private partnership has a solid schedule and strategic plan to ensure timely use of the funds. Meetings have been 

held with Alaska in anticipation of this grant application, and the route is under consideration.

Currently OXR-San 

Francisco Bay Area 

service is under 

review by Alaska 

Airlines, and they 

continue to 

express interest.
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AIR SERVICE ENVIRONMENT

XR is a county-owned, non-primary airport serving Ventura County. OXR is vital to the 

economic future of Ventura County, and its importance will continue to increase with the 

reintroduction of air service and area economic growth. This section shows the broad 

segment of the traveling public, including businesses, military and other enterprises that will benefit 

from the proposed Strategic Plan.

Market Reach and Potential

OXR has a large close in population compared to 

many airports without air service. Within a 25-mile 

radius is a population of approximately 685,000; 

expanded to 50 miles the population increases to 

over 3.5 million. OXR’s primary catchment area, 

shown in Exhibit 2.1, has a population of almost 

605,000 residents.

Population is expected to grow 12 percent from 

2012 to 2020, while household income is 

anticipated to grow by 35 percent. Comparatively, 

the state of California population and the national 

average is projected to grow by eight percent.

O

EXHIBIT 2.1 AIRPORT CATCHMENT AREA
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APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

Since OXR lost air service in 2010, all of its estimated 1,086,000 travelers divert from the area and use 

other surrounding airports including BUR, LAX, Orange County and Santa Barbara. Table 2.1 shows an 

estimated drive time from the Oxnard community to each of these airports. The primary diversionary 

airport is LAX with 74 percent of the catchment area making the 60 plus mile trip. The Oxnard-Los 

Angeles drive can be upwards of two hours in rush hour traffic. At a reimbursable rate of 55.5 cents per 

mile, this is costly to local businesses adding almost $70 per trip and loss of employee productivity.

TABLE 2.1 DRIVE TIME TO ALTERNATE AIRPORTS

DIVERSION

AIRPORT MILES

ESTIMATED

DRIVE TIME

% DIVERSION

FROM OXR

Burbank 56 1.3 hours 15

Los Angeles 63 1.5 hours 74

Orange County 102 2.0 hours6

Santa Barbara 48 0.9 hours5

Large and Diverse Employers

The OXR catchment area has a dynamic and growing local business community with significant air travel demand. Within OXR’s 

catchment area are several major employers with extensive travel requirements. Ventura County is home to a number of 

Fortune 1000 companies including: Kellogg Company, Whirlpool Corporation, Stryker Corporation, Parker Hannifin, Pfizer and 

Eaton Corporation. A few of the companies are highlighted below. • Amgen: Amgen’s headquarters is in Ventura County and closer to OXR than alternate airports. Amgen is the world’s 

largest independent biotechnology firm. 

• Bank of America • Well Point: Well Point’s California operations are headquartered in Ventura County. Well Point operates the Blue 

Cross Blue Shield of California.

• Baxter Bioscience: Diverse bioscience manufacturer that operates a division in Ventura County.

• Farmers Insurance

Availability of scheduled commercial air service at OXR will enhance future regional economic development efforts. Ventura 

County companies, including the Fortune 1000 corporations listed above, rely on commercial air transportation in order to 

conduct business in our global economy. 
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Military Presence

Reinstating air service at OXR will benefit the military facilities 

throughout the Ventura County area. There are more than 20,000 

active duty military and civilian contractors located at the two Naval 

installations within Ventura County: Naval Base Ventura County Point 

Mugu and Naval Base Ventura County Port Hueneme. 

• Point Mugu: Naval Air Station Point Mugu is home to 

numerous Naval Squadrons including Airborne Command 

Control and Logistics Wing, Air Test and Evaluation 

Squadrons 9 and 10, and the Fleet Logistics Support 

Squadron 55. Point Mugu is also home to the Naval Air 

Warfare Center Weapons Division as a major testing center 

for new Naval weapons. The more than 19,000 military and 

civilian personnel on the base support over 100 individual 

military commands at Point Mugu.

• Port Hueneme: Port Hueneme is the West Coast home to

the Naval Construction Battalion, or more commonly referred 

to as SeaBees. The 2,600 active duty personnel support the 

US Navy worldwide with their specialized skill set.

Tourism

Tourism is one of California’s major industries. Successful tourism initiatives in Ventura County require that travelers have the 

ability to move in and out of the region efficiently and cost effectively. Air service improvements at OXR will help attract more 

visitors to the area for meetings, vacations and conferences. The following is a list of just some of the events and attractions 

drawing visitors to Ventura County. 

• Channel Islands National Park: Located just off the coast of Ventura County, the Channel Islands National Park 

offers tourists a significant amount of recreational activities including hiking, sailing, diving, and sightseeing boat tours.

• San Buenaventura Mission: Established in 1782, this is one of the oldest Spanish missions in California. 

• Wineries: As with much of the California central coast, the Ventura County area is home to many wineries and the 

draw of tourists to them is increasing.

Significant Military 

Presence

There are more than 

20,000 active duty 

military and civilian 

contractors located at 

the two Naval 

installations within 

Ventura County.
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AIR SERVICE – EXISTING AND 

HISTORICAL

XR does not have existing air 

service. However, this section 

provides an overview of historical 

air service at OXR. The most recent 

carriers providing service, service 

frequency, nonstop destinations and 

equipment types are included in the 

discussion. A summary of historical air 

service is also included with destinations, 

traffic levels, service providers, and an 

overview of extenuating factors that have 

affected air service. A description of air 

service development efforts concludes the section.

Historical Air Service

In 2001, OXR had service to two hub airports, LAX (United) and Phoenix (America West). Over the 

course of the next decade, despite steady increases in population and a stable economy, the number 

of airlines, hub airports, flights and seats decreased until they were eliminated in 2010. The effects of 

September 11, 2001, and the fuel increases in 2008, that caused a dramatic increase in airfares over 

what were available in the past, reduced the number of passengers below a sustainable level. 

This subsection summarizes OXR’s air service history including: destinations, traffic levels, and 

service providers. Extenuating factors that have affected air service over time is also reviewed.

O
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Destinations, Service Providers and Traffic Levels

Annual onboard passengers decreased 

throughout the decade from 2001 despite 

population growth of approximately nine 

percent since 2000. Exhibit 3.1 shows the 

significant decrease in onboard passengers, 

departures and seat capacity that OXR 

experienced prior to air service ceasing in 

2010. OXR’s passenger decline was largely 

due to decreasing seat capacity, reduction in 

frequency and high fares compared to 

competing airports.

Table 3.2 provides average weekly departures 

and seats by destination and airline from 2000 

through 2010. In 2000, OXR had 42 weekly 

departures and 1,260 average weekly seats. In 

2001, OXR service peaked with United and 

America West serving the market. Triggered by 

the events of September 11, 2011, departures 

and seats gradually declined until all service 

was terminated in 2010.

TABLE 3.2 HISTORICAL DESTINATIONS AND SERVICE PROVIDERS

DESTINATION AIRLINE ITEM

MONTH OF JULY

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Los Angeles United Dept 42 35 34 35 35 34 31 26 25 25 -

Seats 1,260 1,050 1,020 1,050 1,050 1,020 930 780 750 750 -

Phoenix America West Dept - 14 - - - - - - - - -

Seats - 518 - - - - - - - - -

Average weekly departures 42 49 34 35 35 34 31 26 25 25 -

Average weekly seats 1,260 1,568 1,020 1,050 1,050 1,020 930 780 750 750 -

Source: Diio Mi

Onboard 

Passengers

From 2001, annual 

onboard passengers

declined until service 

ceased in 2010.

EXHIBIT 3.1 HISTORICAL DEPARTURES, SEATS AND 

ONBOARD PASSENGERS

Source: Diio Mi

0

20,000

40,000

60,000

80,000

100,000

120,000

0

500

1,000

1,500

2,000

2,500

3,000

2001200220032004200520062007200820092010

Seats/Onboard Passengers

Departures

Calendar year

Departures Seats Enplanements
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APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

Extenuating Factors that have AffectedAir Service

With a catchment area population of over 600,000 augmented by military installations and major facilities of Fortune 1000 

companies, there is a dire need for convenient air transportation access to serve existing demand and support further economic 

development. The demise of OXR’s previous air service was due to factors that were only partially related to market demand. 

Phoenix service had a short life span and was discontinued in the aftermath of the wrenching changes in air service that 

occurred after September 11, 2001. The LAX service fell victim to unfavorable economics of short haul flights, particularly those 

under 100 miles. Such flights are totally dependent on lower yielding connecting traffic since there is no local market demand. 

The continually escalating fuel costs since September 11, 2001, while affecting all airline operations have been especially 

devastating to the less efficient short flight segments. As the cost of flying between OXR and LAX increased disproportionately, 

OXR fares increased rapidly. Catchment area demand reacted by opting to drive to surrounding airports such as LAX and BUR 

where much lower fares were available.

Past Air Service DevelopmentEfforts 

OXR has taken a proactive approach to improving air service. 

OXR’s marketing plan contains a number of initiatives related to 

increasing the use of OXR when there was air service, as well as 

efforts taken over the past few years since air service ceased. OXR 

has worked to fill the three main air service needs during this time:

1. Add new routes and improve service with existing and 

new carriers

2. Work to lower airfares with incumbent carrier

3. Reintroduce air service at OXR

Table 3.3 provides an overview of the air service development 

efforts since 2009.

TABLE 3.3 PAST AIR SERVICE DEVELOPMENT EFFORTS

YEAR INITIATIVE

2009

Hired air service development consultant

Advertising campaign; radio and print

Completed Passenger Booking Analysis

Completed route forecast

Attended Network USA conference

Attended ACI-NA’s Jumpstart® conference

2010

Attended Network USA conference

Attended ACI-NA’s Jumpstart® conference

Hired air Service development consultant

Created airport incentive program

Attended airline headquarters meetings

Applied for SCASDP grant to re-instate service

2011

Attended Network USA conference

Attended ACI-NA’s Jumpstart® conference

Coordinated with local Lodging Association 

2012

Hired new air service development consultant

Attended Network USA conference

Attended ACI-NA’s Jumpstart® conference

Completed True Market Estimate

Completed route analyses for new service
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AIRPORT

AIR SERVICE NEEDS AND 

DEFICIENCIES

he Air Service Needs and Deficiencies section identifies the issues at OXR. This section 

provides detailed analyses to demonstrate that Ventura County is underserved and in need of 

access to the national air transportation system. 

High Catchment Area Demand, No Service

OXR and its catchment area with no scheduled commercial air service 

qualify as a poster child for underserved markets. A Passenger Demand 

Analysis (i.e. retention/diversion study) based on booking data and US 

Department of Transportation (DOT) reported origin and destination data 

when air service was most recently available produces an estimated true 

market of over 1 million annual passengers to/from the OXR catchment area

(refer to Table 4.1).

The previous OXR service with very short flights to LAX and an absence of 

local LAX passengers resulted in the market being overpriced, a major factor 

in the discontinuation of the OXR service. The inability of OXR to sustain its 

previous service was a function of correctable negative factors rather than 

the inadequacy of catchment area demand. However, since the market was 

not Essential Air Service eligible, OXR must re-establish its market viability. 

This can best be done by establishing service to the San Francisco Bay Area

which is the OXR catchment area’s largest market. San Francisco is the 

number one market for the OXR catchment area, and other San Francisco 

Bay Area airports are also within the top 10. There is an estimated 167,359 

annual passengers resulting in a defined need for nonstop air service from 

OXR to the San Francisco Bay Area. While the service does not address all 

of the market’s air service needs, it provides service in the biggest local 

T

TABLE 4.1 OXR TRUE MARKET ESTIMATE

RANK DESTINATION

DIVERTING PAX TRUE 

LAX BUR OTHER MARKET

1 San Francisco, CA 64,581 13,317 8,211 86,110

2 Denver, CO 53,545 7,093 7,440 68,078

3 Chicago, IL (ORD) 43,358 1,188 6,824 51,370

4 Las Vegas, NV 41,352 4,353 4,331 50,037

5 Oakland, CA 15,812 26,071 4,953 46,836

6 Seattle, WA 23,525 9,973 8,033 41,532

7 San Jose, CA 2,966 26,232 5,214 34,413

8 Phoenix, AZ (PHX) 12,054 12,618 4,831 29,504

9 Washington, DC (IAD) 27,598 376 1,117 29,090

10 Sacramento, CA 7,877 12,862 5,065 25,804

11 Honolulu, HI 21,299 73 235 21,607

12 Salt Lake City, UT 13,322 4,505 2,409 20,235

13 San Antonio, TX 18,539 487 1,110 20,137

14 Dallas, TX (DFW) 14,301 3,156 2,518 19,975

15 Portland, OR 9,406 5,959 4,225 19,590

Total Domestic 723,635 169,425 111,838 1,004,897

Total International 79,007 285 2,301 81,594

Total OXR Catchment Area 802,642 169,709 114,139 1,086,491
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APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

market and connecting opportunities in major Pacific Northwest markets. Connecting opportunities would be 

available in transpacific markets and major eastbound markets. Success of the service to the San Francisco 

Bay Area provides validation of the OXR market and a foundation for future air service initiatives that will 

more fully address catchment area needs.

Local, Convenient Access

Although there are many nonstop flights daily from BUR and LAX to the San Francisco Bay Area, it is 

inconvenient to drive, especially due to inconsistent traffic delays on the highway system. Drives that can be 

made without traffic congestion in 75 minutes regularly take 120 minutes or more with traffic. At the 2012 

IRS allowed automobile expense of 55.5 cents per mile, it costs local travelers approximately $70 in direct 

expenses to travel to/from Oxnard to LAX. With the inclusion of time for these travelers, there is a significant 

expense that is born locally by not having access to the national air transportation system.
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STRATEGIC PLAN –

AIR SERVICE

he Strategic Plan proposed by OXR will achieve the 

community’s goals and reduce its air service 

deficiencies. This Strategic Plan section provides a 

detailed description of the goals of the project and a 

primary and alternate plan for attaining those goals.

Project Goals

The project goal of this SCASDP grant application is to reestablish air service from OXR by targeting service to its 

largest and highest priority market, the San Francisco Bay 

Area, thereby allowing the local community access to the 

national air transportation system. By meeting this goal the 

cost and inconvenience for local travelers will be reduced 

and the need for air travelers to drive to other airports to 

access air service will be mitigated. Market success will also 

establish the viability of the OXR catchment area and 

provide the foundation for future air service growth as 

demand increases.

Proposed Air Service

The lack of needed air service at OXR forces air travelers to drive on congested, delay-prone 

highways to BUR or LAX. Without access to the national air transportation system, OXR is forced to 

rely on this drive which impacts economic development. To counter these issues and provide 

Ventura County access to the national air transportation system, the Strategic Plan is to add nonstop 

service to the San Francisco Bay Area, the highest demand market for air travel out of the OXR 

catchment area

T
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Airline Participation

In recent years, OXR has engaged in discussions with Alaska Airlines regarding improving overall service 

and adding nonstop service to the San Francisco Bay Area. Recent discussions with Alaska have 

been positive.

Market Analysis

A financial analysis and route forecast have been developed for Alaska service to San Francisco 

International Airport. The public-private partnership understands and agrees with the US DOT that a 

thorough understanding of the target market is essential for the success of new air service. Results of the 

Alaska service analysis is summarized below. 

Forecast Assumptions

A route forecast was completed for a two roundtrip schedule on a 76-seat Bombardier Dash-8-Q400. The primary market 

assumption was that Alaska will capture a share of the passengers that are driving to competing airports (i.e. BUR and LAX) to 

travel to the San Francisco Bay Area and cities beyond San Francisco. The analysis utilized a Quality of Service Index (QSI) 

ratio for the nonstop service to San Francisco with driving to BUR or LAX and is based on the number of reasonable 

connections available in the market.

Mature Market Results

Table 5.1 provides a summary of the Alaska San Francisco market analysis for 

two roundtrips per day on Bombardier Dash 8-Q400 aircraft. Passenger 

projections were based on a mature market (i.e., passenger projections would 

be at 100 percent on the first day of service). It is estimated that two roundtrips 

per day will generate $7.4 million in annual revenue for Alaska, while having a 

projected segment profit of over $900,000 for a 12 percent profit margin. 

Airline Risk During Ramp-Up

It is estimated that Alaska will earn a system profit of over $900,000 after the market matures. Although this market is projected 

to be self-sustaining in the long-run, Alaska will not generate this amount of revenue or margin at start-up. Airlines typically incur 

losses in new markets during the ramp-up period in the first year of service. Adding to initial economic risk in the market is the 

TABLE 5.1 OXR-SAN FRANCISCO 

MARKET ANALYSIS

ITEM STATISTICAL CATEGORY

MATURE 

MARKET

1 Seats per departure 76

2 Segments per day 4

3 Onboard Passengers 71,098

4 Load Factor 64%

5 Average Fare (all markets) $116.10 

6 Segment revenue $7,444,478 

7 Segment profit $909,294 

Source: Mead & Hunt, Inc.
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challenge of changing existing travel habits and airline allegiance which will take time. This could cause a longer than normal 

ramp-up period and lead to significant losses in the short-term.

Table 5.2 provides an adjustment to passenger 

projections to account for ramp-up to a fully mature 

market and breaks down the passenger projections for 

the first 12 months. At service initiation, it is 

conservatively estimated that Alaska will realize 60 

percent of the potential revenue in a mature market

and mature throughout the first nine months of service. 

The ramp-up period is highly dependent on service 

awareness and the community’s support of the new 

service. Table 5.2 also provides the estimated loss by 

month and in total for the first 12 months of service. 

OXR-San Francisco segment revenues adjusted for 

the ramp-up period for the first year of service total 

$6.02 million. The total shortfall is expected to 

be $514,464.

Alternate Plan

If OXR fails to obtain Alaska service to San Francisco or another San Francisco Bay Area airport, alternate carriers will be 

approached with the intent of obtaining nonstop service to the San Francisco Bay Area or another hub that would provide 

access to the national air transportation system. Alternate carrier service to another hub would fulfill the goals of this grant 

application of re-establishing air service.

TABLE 5.2 SERVICE RAMP-UP

MONTH

SEASONALITYRAMPUPLOAD 

FACTOR REVENUE

COST

PER 

MONTH

NET 

SURPLUS/ 

SHORTFALL

Apr-13 8.22% 60% 38% $366,985 $537,138 ($170,153)

May-13 8.43% 64% 41% $401,592 $555,043 ($153,451)

Jun-13 8.85% 68% 47% $448,085 $537,138 ($89,054)

Jul-13 9.04% 72% 49% $484,361 $555,043 ($70,682)

Aug-13 8.82% 76% 51% $499,100 $555,043 ($55,943)

Sep-13 8.10% 80% 51% $482,645 $537,138 ($54,493)

Oct-13 8.27% 84% 52% $517,056 $555,043 ($37,987)

Nov-13 8.22% 88% 56% $538,658 $537,138 $1,519 

Dec-13 8.23% 92% 57% $563,887 $555,043 $8,844 

Jan-14 7.83% 96% 57% $559,734 $555,043 $4,691 

Feb-14 7.76% 100% 61% $546,098 $501,329 $44,769

Mar-14 8.23% 100% 62% $612,518 $555,043 $57,475 

Total 100.00% N/A 52% $6,020,719 $6,535,183 ($514,464)

Source: Mead & Hunt, Inc.

Strategic Plan

The Strategic Plan is 

critical in Alaska’s 

decision whether or 

not to serve OXR.
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STRATEGIC PLAN –

IMPLEMENTATION AND FUNDING

his section, Strategic Plan - Implementation and 

Funding, provides the detailed incentive and support 

plan required to implement the Strategic Plan. A 

legal sponsor responsible for administering the program has 

been designated, and a public-private partnership has been 

formed to actively participate in implementing the proposed 

project. In addition, this section identifies self-sufficiency of 

the service as an integral part of the community’s goals and 

provides a description of the community’s plan to continue 

with the project if it is not self-sustaining after the grant 

award expires. A detailed description of the funding 

necessary for implementation of the Strategic Plan, 

including federal and non-federal contributions, is included.

Public-Private Partnership

The Ventura County Department of Airports, the owner/sponsor of OXR, has been designated as the 

sponsor of this grant application. Ventura County has formed a public-private partnership with eight

private entities. Private partners in the public-private partnership include:

• Economic Development Corporation of Oxnard

• Oxnard Chamber of Commerce

• Oxnard Convention and Visitors Bureau

• Ventura Chamber of Commerce

• Ventura Visitors and Convention Bureau

• Gold Coast Broadcasting

• KCLU Radio

• Ventura County Lodging Association

T
PAGE 15

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

Collectively, the partnership is committed to completing the Strategic Plan 

(refer to community support letters in Appendix A). All partners in the 

public-private partnership will be fully involved in the execution of the 

Strategic Plan (Table 6.1). The Ventura County Department of Airports will 

execute all federal grant offers, process all associated reimbursement 

requests and oversee grant administration. The Ventura County 

Department of Airports will also administer the revenue guarantee. Private 

partners will be responsible for administering the $100,000 marketing 

campaign and the Airline Travel Bank® in conjunction with OXR. Together 

these partners form a team committed to reinstating air service at OXR.

Incentive and Support Plan

In today’s airline environment, community support packages have become increasingly important and virtually required for most

new service. To be effective, support packages must be structured to address the issues of new airline entry and ensure that the 

market responds quickly. The public-private partnership proposes a community support package that has been tested and 

proven to be successful. To reduce Alaska’s breakeven period and offset the risk during start-up, the public-private partnership 

proposes the following incentives (refer to Exhibit 6.1): marketing campaign (create service awareness for the Alaska San 

Francisco service); revenue guarantee (reduce airline risk); Airline Travel Bank® (create service awareness and reduce airline 

risk); and fee waivers (reduce airline start-up costs).

EXHIBIT 6.1 AIR SERVICE INCENTIVE PLAN

TABLE 6.1 PUBLIC-PRIVATE PARTNER ROLES

PUBLIC-PRIVATE 

PARTNER ROLE

Ventura County 

Department of 

Airports/OXR

Grant and revenue 

guarantee 

administration and 

assist with the local 

marketing efforts

Private Partners

Coordination of the 

marketing program and 

Airline Travel Bank®; 

Assist with local 

marketing efforts 
PAGE 16

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

Marketing Campaign A marketing campaign must be targeted toward 

aggressive promotion of the service to make the 

new service successful and sustainable. Table 

6.2 provides the marketing budget for the first 

year of service. OXR has established an 

extensive partnership agreement with many 

media outlets. This $100,000 marketing 

campaign will be funded by non-airport sources 

($50,000 cash and $50,000 in-kind).

Revenue Guarantee

To reduce airline risk and provide incentive for nonstop San Francisco Bay Area service, this Strategic Plan includes a revenue 

guarantee as part of the community support package. Although pro forma projections for San Francisco service are positive, 

service ramp-up and breakeven can take up to 12 months, particularly in a market with significant barriers-to-entry. It is 

anticipated that Alaska would require at least a $500,000 revenue guarantee to initiate service to San Francisco.

Airline Travel Bank®

To aggregate the support of the business community, change existing travel habits including frequent flyer loyalty programs, and 

reduce the airline’s breakeven period, the public-private partnership will commit to the creation of a $250,000 Airline Travel 

Bank®. An Airline Travel Bank® is a money-in-the-bank financial commitment of a business community to support a specific air 

service initiative for a specified period. Unlike subsidies or pledges that do not guarantee that new service initiatives will be 

used by the flying public, the Airline Travel Bank® guarantees that travelers will use a specific air service offering by securing a 

“use-it-or-lose-it” financial commitment. The strength of the Airline Travel Bank® concept is the broad-based financial 

commitment of the business community. It is a simple, logical program that communities and airlines seem to like.

The public-private partnership will use Mead & Hunt’s proven Airline Travel Bank® program. Over the last 10 years, Mead & 

Hunt has implemented multiple successful programs including the Pensacola-Atlanta AirTran Airways program that finished with 

$2.1 million and 219 participating companies. The Eugene, OR business community has supported three Airline Travel Bank® 

programs in recruiting service to Los Angeles, Phoenix, and Salt Lake City. These are just some of the examples of the 

successful programs using this method. This is not a pledge program, an Airline Travel Bank® locks in the community financial 

commitment that pledges lack.

TABLE 6.2 MARKETING BUDGET

MEDIA OUTLET

Year 1

CASH IN-KIND TOTAL

Newspaper/Magazine $25,000 - $25,000 

Radio- $20,000 $20,000 

Outdoor $10,000 $20,000 $30,000 

Production $10,000 - $10,000 

Internet/direct mail $5,000 $10,000 $15,000 

Total $50,000 $50,000 $100,000 
PAGE 17

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

Fee Waivers

The air service support program includes a waiver of landing 

fees, terminal rents, and overnight parking fees. Table 6.3

provides a summary of estimated fees that would be waived 

for Alaska, totaling $98,013. 

Strategic Plan Funding

The public-private partnership is requesting US DOT assistance in funding 50 percent, or $500,000, of the Strategic Plan. 

Specifically, US DOT funding will be used to fund the revenue guarantee. OXR and the community will fund 50 percent of the 

total proposed air service program. Non-airport funding sources will provide eight percent of the cash requirement and 35

percent of the funding for the total program including in-kind services (Table 6.4).

TABLE 6.4 STRATEGIC PLAN BUDGET

DESCRIPTION

FUNDING SOURCE

TOTAL

US DOT AIRPORT NON-AIRPORT

CASH CASH IN-KIND CASH IN-KIND

Airline incentive program:

 Marketing campaign--- $50,000 $50,000 $100,000 

 Revenue guarantee $500,000 ---- $500,000 

 Airline Travel Bank®---- $250,000 $250,000 

 Fee waivers--$98,013-- $98,013 

Monitoring program- $30,000 --- $30,000 

Airline meetings/negotiations- $15,000 --- $15,000 

Total $500,000 $45,000 $98,013 $50,000 $300,000 $993,013

Percent of total project 50% 5% 10% 5% 30% 100%

Percent of cash contribution 84% 8% N/A 8% N/A 100%

TABLE 6.3 ESTIMATED FEE WAIVERS CATEGORY CALCULATION VALUE

Landing Fees $1.30 x 64.5lbs gtow x 730 flts$61,211

Terminal Rents $1.37 sq. ft. x 120 sq. ft. x 12 mo. $1,973 

Office Space $1.10 sq. ft. x 110 sq. ft. x 12 mo. $1,452 

Baggage Make Up $0.55 sq. ft. x 420 sq. ft. x 12 mo. $2,772 

Overnight Parking $1.30 x 64.5lbs gtow x 365$30,605

Total Estimated Fees Waiver$98,013
PAGE 18

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

Project Continuation and Sustainability

Based on the positive pro forma projections for Alaska service to San Francisco, it is anticipated that 

service will be self-sustaining after the start-up period which can take up to 12 months or more. However, 

the public-private partnership understands that service failure is often due to the lack of awareness in the 

community. Should the revenue guarantee have remaining funds, the public-private partnership will use 

up to $100,000 for on-going marketing of the San Francisco route. The Oxnard business community and 

the public-private partnership understand the economic importance of this project to the region and the 

challenges associated with profitably operating air service to the Oxnard market and will work to ensure 

its long-term success.
PAGE 19

APPLICATION 

UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

COUNTY OF 

VENTURA/OXNARD 

AIRPORT

SCHEDULE AND MONITORING

he public-private partnership has 

developed a realistic timetable for 

achieving the project goals. This 

section provides critical milestones to be 

achieved by the public-private partnership 

to timely execute this air service initiative. 

A monitoring program is also provided to 

track the progress of the project.

Milestones for Timely 

Completion of Project

Target dates are proposed in Table 7.1 to track the progress of this air service initiative assuming a 

grant award by December 31, 2012.

TABLE 7.1 STRATEGIC PLAN SCHEDULE

DATE ACTION ITEM DESCRIPTION

January 1, 2013 Marketing campaign

development

Development of the marketing campaign will be 

completed in January 2013 in order to begin the 

marketing campaign 60 days prior to new service.

February 1, 2013 Marketing initiation

It is anticipated that the marketing campaign will 

begin by February 1, 2013, and continue throughout 

the first year of new service.

April 1, 2013 Service initiation

The service start date is the critical date for the rest 

of the Strategic Plan. It is anticipated that Alaska will 

initiate nonstop service in April 2013. Air service 

initiation is dependent on airline route planning, 

economics and availability of aircraft for OXR.

June 30, 2013 Alternate plan

If Alaska has not committed to a date to implement 

nonstop San Francisco Bay Area service by June 

30, 2013, OXR will contact other airlines.

March 31, 2014 Revenue guarantee 

contract completion

At the end of the first year of service, the revenue 

guarantee will be calculated. The revenue guarantee 

contract term will be based on the service start date.

T
PAGE 20

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMCOUNTY OF VENTURA/OXNARD AIRPORT

Strategic Plan Monitoring Program

The monitoring program includes service performance tracking, assessing the effectiveness of the marketing campaign, tracking

airfares and determining the influence of new service on retention at OXR. Table 7.2 provides the action items and frequency to 

monitor the Strategic Plan over a one-year period.

TABLE 7.2 STRATEGIC PLAN MONITORING

FREQUENCY ACTION ITEM DESCRIPTION

Monthly Airline performance Load factors, enplanements, departures

Revenue guarantee indicators Ticket revenue, cost, drawdown

Quarterly

Airline performance Load factors, enplanements, departures, revenue per available 

seat mile

Airfares

Compare US DOT airline reported average airfares on a quarterly 

basis, when available, to prior quarters

Published airfares will be monitored for the first three months of 

service then quarterly thereafter via one of the Global 

Distribution/Computer Reservations Systems (GDS/CRS)

9 Months Program assessment Complete an overall assessment of the program to determine if 

additional community marketing support is needed beyond one year

12 Months Passenger Demand Analysis Conduct a follow

-up true market estimate to determine retention at 

OXR after the first 12 months of service. 
PAGE 21

APPLICATION 

UNDER THE 

SMALL 

COMMUNITY 

AIR 

SERVICE 

DEVELOPMENT 

PROGRAM

COUNTY OF 

VENTURA/OXNARD 

AIRPORT

APPENDIX A.

COMMUNITY SUPPORT

ppendix A includes letters of support for the OXR application to the US DOT to reinstate air 

service at OXR. Support letters were submitted by participants in the public-private 

partnership and members of the Ventura County community. The letters of support are 

included on the following pages of this Appendix A.

Government

Congress of the US, Member of Congress 

Lois Capps

Department of the Navy, Port Hueneme 

Division

California Assembly District 12, 

Assemblywoman Fiona Ma

County of Ventura Board of Supervisors, 

Supervisor Kathy Long

County of Ventura Board of Supervisors, 

Supervisor John Zaragoza 

City of Oxnard, Community Development 

Director Curtis P. Cannon

City of Ventura, Mayor Mike Tracy

Public-Private Partnership

County of Ventura Department of 

Airports/OXR (see cover letter)

Public-Private Partnership (cont.)

Economic Development Corporation of 

Oxnard

Oxnard Convention and Visitors Bureau

Oxnard Chamber of Commerce

KCLU Radio

Businesses and Organizations

Budget Rent A Car

California Airports Council

Crowne Plaza Ventura Beach Hotel

Dollar Rent A Car

Embry Riddle Aeronautical University

Four Points by Sheraton

Gold Coast Broadcasting, LLC

Holiday Inn Express & Suites

San Francisco International Airport

Ventura County Lodging Association

Yellow Cab Company

A







501 Poli Street • P.O. Box 99 • Ventura, California 93002-0099 • 805.654.7800 • cityofventura.net 

June 4, 2012 

Aloha Ley 

Associate Director, Small Community Program 

Office of Aviation Analysis 

1200 New Jersey Avenue, SE W86-310 

Washington, DC 20590 

Dear Ms. Ley: 

I am writing in support of the Ventura County/Oxnard Airport application for funding through the Small 

Community Air Service Development Program. 

Until 2010, Oxnard Airport provided access to the National Transportation System for the residents of 

Ventura County. Since losing service in 2010, Oxnard Airport has been working with carriers to re-instate 

service at the airport, however in today’s economic climate, airlines are looking for financial support to 

help reduce the risk associated with starting new service. The funds requested will be used for airline 

incentives to attract new service at the Oxnard Airport and re-instate access to the National 

Transportation System by adding service to San Francisco International Airport. 

I understand that over 1 million passengers a year are generated from the Oxnard Airport’s catchment 

area, and these passengers today are forced to drive to Burbank’s Bob Hope or Los Angeles International 

Airport to gain access to the National Transportation System. This drive adds significant costs for 

Ventura County travelers, as well as adding to congestion and pollution for Southern California. 

Again, it is my hope that you will give the Oxnard Airport proposal full consideration and award the funds 

requested to help Oxnard re-establish access to the National Transportation System by attracting new 

service to the San Francisco bay area with Alaska Airlines. 

Sincerely, 

Mike Tracy 

Mayor 



national sponsorship group 

1623 bridgegate street ▪ westlake village ▪ ca 91361

o: 805.230.2230 ▪ e: rpack@nationalsg.com ▪ c: 818.422.0152 

June 11, 2012 

Aloha Ley 

Associate Director, Small Community Program 

Office of Aviation Analysis 

1200 New Jersey Avenue, SE W86-310 

Washington, DC 20590 

Docket #: DOT-OST 2012-069 

Dear Ms. Ley; 

This letter is sent to you to indicate my support of the application of Ventura 

County/Oxnard Airport or a grant in the 2012 Small Community Air Service Development 

Program. The grant requested is $500,000 with a local contribution and revenue guarantee 

program of $493,000 as an incentive for new air service at Oxnard Airport. Should Ventura 

County choose to advertise through NSG for the air service development, NSG will provide 

a percentage of in kind advertising to benefit the program. 

The Oxnard Airport has had continuous passenger air service since 1946 and, 

unfortunately, United Express terminated its scheduled air service leaving Oxnard Airport 

with no air service. The loss of air service has a significant impact on our business. Our 

only option is to now drive to either Burbank Airport or Los Angeles International Airport. 

The drive on the freeways from Ventura County is long and very congested. It can easily 

take over two hours to get to either airport. 

I understand that Ventura County Department of Airports management has had meetings 

with Alaska/Horizon Air about providing nonstop service to the San Francisco Bay area 

with flights continuing on to other destinations. We are in support of this type of air 

service and will be an important link to markets and connections to other areas. We believe 

that if Alaska/Horizon Air is successful at Oxnard Airport, they will add more flights to 

other markets or other airlines will come to our airport with nonstop service to other 

regional hub airports. 

I strongly support the application of Ventura County/Oxnard Airport for a grant under this 

program and will support the new air service. 

Sincerely yours, 

Rick Pack 

Rick Pack 

President/CEO 

KCLU Radio 

Sales and Marketing Representatives 

June 6, 2012 

Ms. Aloha Ley 

Associate Director 

Small Community Program – Office of Aviation Analysis 

1200 New Jersey Avenue, SE W86-310 

Washington, DC 20590 

Docket Number – DOT-OST-2012-0069 

Dear Ms. Ley: 

I am writing to you as the current President of the California Airports Council. The California Airports Council 

was formed in 2009 and is comprised of 30 publicly-owned, commercial airports in California. 

The Council wishes to express its strong support for the Ventura County-Oxnard Airport application for a 

$500,000 grant under the Department of Transportation’s Small Community Air Service Development Grant 

Program. The requested grant funding is critical to promote air service from Oxnard to the Oakland/San 

José/San Francisco Bay Area. 

Oxnard began providing commercial air service to the residents of Ventura County in 1946. However, since 

2010, when Oxnard lost commercial air service, this region of 800,000 has had no convenient options for air 

service. Ventura County residents wishing to travel to the Bay Area – or to any other destination – must now 

drive between 47 and 63 miles (one-way) to get to the nearest commercial airports in Los Angeles, Burbank or 

Santa Barbara. In fact, 74 percent of all Ventura County residents needing commercial air drive the 63 miles to 

Los Angeles. In the past year, Ventura County had more than one million origin and destination passengers 

needing to drive to and/or from Los Angeles, Burbank or Santa Barbara for commercial air service. That 

represents a significant amount of inconvenience for a significant number of travelers. 

Supporting commercial air service between Ventura County and the Bay Area will: 1) restore a degree of 

commercial air service convenience for Ventura County residents; 2) reduce traffic congestion and the negative 

impact on local air quality; 3) generate jobs and other related economic benefits for the community; and 4) 

strengthen California’s the air service system. 

For all of the aforementioned reasons, we urge your thoughtful consideration and approval of Oxnard’s funding 

application. 

William F. Sherry, A.A.E. 

President 

1510 14th Street, Sacramento, CA 95814 

Tel. 916.553.4999 Fax 916.447.4947 

www.calairportscouncil.org








Ventura County Lodging Association 

5235 Mission Oaks Boulevard, Suite 741 

Camarillo, CA 93012 

 June 6, 2012 

Ms. Aloha Ley 

Associate Director, Small Community Program 

Office of Aviation Analysis 

1200 New Jersey Avenue, SE W86-310 

Washington, DC 20590 

RE: Commercial Air Service at Oxnard, California Airport 

Dear Ms. Ley: 

The Ventura County Lodging Association (VCLA) offers this letter in full support of the 

Ventura County/Oxnard Airport application for funding through the Small Community Air 

Service Development Program. 

By way of background, the VCLA consists of sixty hotels in Camarillo, Oxnard and 

Ventura. It was formed during 2011 to promote tourism in the area, particularly from 

businesses and from group visitors. The program is supported by a 1.5 percent 

additional room fee on local hotel rooms that generates an annual operating budget of 

$1.2 million for advertising purposes. VCLA advertising is placed strategically 

throughout Southern and Central California to bring to the public’s attention the many 

attributes of visiting, recreating and doing business in Ventura County. 

Until 2010, Oxnard Airport provided access to the National Transportation System for 

the residents of Ventura County. Since losing service in 2010, Oxnard Airport has been 

working with carriers to re-instate service at the airport, however in today’s economic 

climate airlines are looking for financial support to help reduce the risk associated with 

starting new service. The funds requested will be used for airline incentives to attract 

new service at the Oxnard Airport and re-instate access to the National Transportation 

System by adding service to San Francisco International Airport. 

Interest has been expressed by our hotel operators and prospective visitors for the 

return of scheduled commercial air service to our area. The hospitality industry believes 

that air service would be well utilized by our customers. Such service would offer 

convenience to the customer base and thus serve to encourage conducting more 

business in Ventura County. The Oxnard-San Francisco route is of particular interest to 

this community. 

Ventura County, with a population of nearly 840,000 is the eleventh largest county in 

California and the only one in the top tier without commercial air service. 
Ms. Aloha Ley 

June 6, 2012 

Page 2 

As the economy slowly improves and the VCLA and other business interests attract 

more commercial, hospitality and casual tourism to this area, it is apparent that the 

sustained need for air service has arrived. The business and general communities are 

prepared to demonstrate both that need and support for its return. 

It is our understanding that over 1 million passenger trips are generated annually from 

the Oxnard Airport’s catchment area. Currently these passengers are forced to drive to 

Burbank’s Bob Hope Airport or Los Angeles International Airport to gain access to the 

National Transportation System, trips that often average 90 minutes through the Los 

Angeles area traffic. The drive adds significant costs for Ventura County travelers, as 

well as adding to congestion and air pollution in Southern California. 

Again, it is our hope that you will give the Oxnard Airport proposal full consideration and 

award the funds requested to help Oxnard re-establish access to the National 

Transportation System by attracting new service to the San Francisco bay area with 

Alaska Airlines. 

Sincerely, 

Gary Wartik 

Gary Wartik 

Administrator 

C: Ventura County Department of Airports