# August 2, 2011 Sponsor: Jackson County/ Rogue Valley International

– Medford Airport , Medford, Oregon Bern Case, Airport Director Congressional Code: OR

- 002 Dun & Bradstreet Number: 155788276 Tax Identification Number (EIN): 93

- 6002298 

### Application for Federal Support for New Air Service via:
Revenue Guarantees Advertising/Marketing Program
Start

- Up Cost Offsets 

### In Support of Non

- Stop Service between Medford and Phoenix 

# ROGUE VALLEY INTERNATIONAL

– MEDFORD AIRPORT Proposal Under the Small Community Air Service Development Program Docket DOT

- OST

- 2011

- 0119Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 2 TABLE OF CONTENTS

Introductory Letter of Support 3 Summary Information

– Appendix C 4
Introduction 7
The Rogue Valley

– Medford Air Service Market 8
Current and Historical Service 11 Air Service Development Efforts 16
Air Service Needs and Deficiencies 17 Strategic Plan for New Air Service 21 Proposed New Route 23 Implementation Timeline 29
Alternate Plan 30
Public/ Private Partnership 31 Funding Plan 33
Performance Measures and Financial Controls 35 Legal Sponsor 36
Letter s of Support 37 Availability of Alternate Airports 40 Airport Information 41 Community Profile 42 Comparison to Other Communities in Region 49
Conclusion 55



### Section Page NumberRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 3 INTRODUCTORY LETTER OF SUPPORTRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 4 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 G rant: _______________________



### B. Public/Private Partnership

Public:

1. Rogue Valley International

– Medford Airport 2. Jackson County 3. City of Medford

Private:

1. US Airways 2. Medford/Jackson County Chamber of Commerce 3. Southern Oregon Regional Economic Development, Inc. 4. Medford Visitors Convention Bureau



### 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)Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 5 D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 500,000
2. State cash financial contribution: $ 0
Local cash financial contribution:
3a. Airport cash funds: $ 25,000 3b. Non

- Airport cash funds: $ 25,000
3. Total local cash funds: $ 50,000
4. TOTAL CASH FUNDING: $ 550,000
In

- Kind Contribution:

a. Airport In

- Kind contribution: $ Various Fee Waivers: One year waivers of landing and terminal fees
b. Other In

- Kind contribution: $ Various Advertising and marketing matching funds
5. TOTAL IN

- KIND CONTRIBUTION: $ Undetermined
6. TOTAL PROJECT COST: $ 550,000 + In

- Kind



### F. In

- Kind Contributions

For funds in lines 4 a (airport in

- kind contribution) and 4 b (other in

- kind contribution), please describe the source(s) of fund(s) for each.
Fee Waivers: One year waivers of landing and terminal fe es (airport) Advertising and marketing matching funds (media companies)Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 6 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?

NoRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 7 INTRODUCTION

The Rogue Valley International

– Medford Airport has a reputation with airlines as being a low fare airport, largely due to the presence of Allegiant Air. The perception couldn’t be further from the truth. In 2010, Medford has the second highest non

- Allegiant average fare of larger airports in the Pacific Northwest

– at $192 each way. Despite high fares relative to the rest of the Northwest, the Airport saw passenger gro wth in 2010

– with total passengers up 7% to 814 passengers per day each way.

The Airpor t has been beating the odds. It has grown passengers despite some of the highest fares in the region and despite continuing airline capacity cutbacks. Since the summer of 2009, airlines have reduced available seats at Medford by 25%

- a loss of 319 depar ting seats per day. At the same time, airlines have reduced flights, with departures down 29% since the summer of
2009

– a loss of six departures per day, including the cancellation of long

- standing United branded
service between Medford and Portland.

Me dford faces another airline cut this fall. Allegiant has told the Airport it plans to end service between Medford and Phoenix/Mesa after Labor Day, despite the fact the service has averaged 58 passengers per day each way at a load factor of 93% in the las t year. Medford has had non

stop Phoenix service since October of 2002. The local market has grown by almost 300% in that time. This proposal seeks to ensure service to Phoenix is continued

– but this time on a network
carrier.

The Rogue Valley Interna tional

– Medford Airport proposes a partnership with the Department of Transportation in the form of a Small Community Air Service Development Grant supporting US Airways Express service between Medford and Phoenix. US Airways is a partner in this proposal

– writing a letter of support. The service would fill a need, not only, for non

- stop Phoenix service, but also for competition to the Southwest , the Midwest, and to the East Coast

.

The Airport has never been a Grant recipient. It has waited to ask for federal support until it identified a project that could not go forward without that support. This is that project, for the reasons that will be stated in this proposal. 

## “The Airport has been beating the odds. It has grown passengers despite some of the highest fares in

the region and despite continuing airline capacity cutbacks.”Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 8 THE MEDFORD/ROGUE VALLEY AIR SERVICE MARKET Current and Historical Air Service

The Rogue Valley lies in an isolated section of the western US, about halfway between the San Francisco Bay Area and Portland. Medford sits at the center of the Rogue Valley

– a commercial and cultural hub for a population of about a half million people. The Rogue Valley
International

– Medford Airport is one of the few in the country that has no other air service options within a two hour drive. The region is also isolated by it s topography. Medford is surrounded by mountains

– located in a valley which is sandwiched by the Siskiyou Mountains to
the south and west and the Cascade Mountains to the north and east.

The Rogue Valley International

– Medford Airport catchment area (see map 1) includes the area defined by the US Census Bureau as the Medford Metropolitan Statistical Area (MSA), along with other regions where
Medford is the nearest airport with
commercial air
service

– including all
areas of southern Oregon and
northern California
within a two hour drive of the airport.
The one

- hour
Medford catchment
area is home to 291,324 people as of
the latest US Census estimates, while the
two

- hour catchment
area is home to
501
, 238 people. The population of the region has grown by 5%

- by a bout 16,000 people

– in the last two years. The Rogue Valley International

-- Medford Airport catchment area is the second largest in the State of Oregon, but the Airport is still classified as a non

- hub. 

### MAP 1: The Rogue Valley International Airport’s immediate (60 m inute) and extended (120 minute) catchment areas; Source: Sixel Consulting GroupRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 9 The Medford market is served by four airlines, with non

- stop flights to eight destinations

– two of
which are served less

- than

- daily by Allegiant, and six of which are served on a daily basis by
network carriers (see map 2)

. With the recent loss of United service to Portland, there is competition on just one
route at Medford

– to Los Angeles

– with both Alaska/ Horizon and Allegiant providing
service. Other than Allegiant, t he Rogue Valley International

– Medford Airport has no service on low cost
carriers.

The Rogue Valley
International

– Medford Airport has seen a decline
in available seats in the last year, with August 2011
seats down about 7% over August 2010 seats (see figure 1 on next page ). The largest source of seats cuts has been from United, and its United Express operators, which will offer 24% fewer departing seats per day in August of 2011 than it did in August of 2010. This
reflects the loss of United coded service between Medford and Portland

– a route which that airline had flown since the 1940s. United also decreased capacity between Medford and San
Francisco for the summer of 2011.

Both Alaska/Horizon and Allegiant will boost their Medford capacity slightly in August 2011 ver sus August of 2010

– both up a marginal 3% (see figure 1 on the next page). Alaska’s growth comes on the Portland route, as it added capacity back after United cancelled service. At the same time, Alaska cut its Los Angeles capacity (at Medford’s only tr ue southwest US hub) by more than half, reducing it to a single frequency per day. 

### MAP 2 : Medford’s Scheduled Service July 2011; Source: Airline Schedule DataRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 10 Non-Stop Departures Seats Departures Seats Capacity Carrier Destination Per Day Per Day Per Day Per Day Change
Horizon/Alaska LAX 1.7 124 1 74 -67.6% PDX 2.9 213 3.7 277 23.1% SEA 2 148 2 148 0.0% Horizon/Alaska Total 6.6 485 6.7 499 2.8%
Delta SLC 2 100 2 100 0.0% Delta Total 2 100 2 100 0.0%
United DEN 2 131 2.3 142 7.7% PDX 3 90 0 0 -100.0% SFO 6.1 246 7.7 234 -5.1%
United Total 11.1 467 10 376 -24.2% Allegiant LAS 0.25 43 0.3 45 4.4% LAX 0.25 43 0.4 45 0.0% AZA 0.25 43 0.25 43 0.0% Allegiant Total 0.75 129 0.95 133 3.0%

Medford Total 20.45 1181 19.65 1108 -6.6% Aug-10 Aug-11 Allegiant has been an excellent partner with the Airport, spurring much new travel since its
entrance into the Medford market

. Its capacity will be up slightly in August of 2011 due to a slight increase
in available
seats on the Las Vegas route (see figure 1). I t must be
note d
, however, the Allegiant has plans to end
its Medford

– Phoenix/Mesa
service this fall, leaving
the Medford
market
without a non

- stop to Phoenix for the first time since 2002. The Phoenix/Mesa market generates an average of 58 passengers per day each way , so it will be important for the Airport to find replacement service.

It is also important to note that Allegiant does not provide the network connectivity that is so important to most of the region’s travelers. With network connectivity being reduced i n both Portland and Los Angeles, it is important that the Airport work to bring additional options into the
market.

The Rogue Valley International

– Medford Airport saw passenger growth in 2010. This was the first time the Airport saw year

- over

- year grow th since 2007. Growth was seen in both network airline passengers and in low cost, less

- than

- daily passengers. Passengers in Medford increased in 2010, despite an increase in average fares. 

### FIGURE 1 : Scheduled Service at the Rogue Valley International

– Medford Airport August 2010 vs. August 2011; Source: Airline Schedule DataRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 11 437,590 428,860 454,720 498,620 563,280 575,170 589,030 529,180 481,210 497,300 18720

31660 73530 97320

599.4 587.5 622.9 683.0 771.6 787.9 832.5

768.3 759.9 814.5

0 100,000 200,000 300,000 400,000 500,000 600,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Allegiant Non Allegiant

$166 $165 $165 $171 $178 $195 $192 $201

$182 $192

$69 $58 $55 $56 Non

- Allegiant Average Fare

Allegiant Average Fare I t is important to note the impact Allegiant Air has had on the Medford market when analyzing passenger and fare trends . While overall fares have gone down since Allegiant arrived, average
fares on network carrier s have not declined at the same rate. Essentially, the only true “fare
relief” the Medford market has se en has been to specific Allegiant non

- stop markets

– Las Vegas, Phoenix/Mesa, and Los Angeles.

While the overall average fare at Medford might make the market look like it has lower fares than many of its peers, it is important to quantify how far the overall average fare is brought down by the presence of targeted Allegiant service. Allegiant’s fa re structure is much different
tha n those of the network carriers . Allegiant does not offer Medford travelers the wide range of destinations offered by the network carriers. For fair analysis, it is important to separate Allegiant
fares from the fares of other network carriers that bring broad connectivity to the market.
N etwork carriers provide all the Medford market’s national connectivity, and as such it is clear that the average fare for access to the national air transportation system is well above the overall market average

– and increasing.



### FIGURE 2 : O&D Passengers and Average One Way Fares at the Rogue Valley International

– Medford Airport; 2001

– 2010; Source: US DOT Table DB1ARogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 12 1,284 1,297 1,277

1,187 1,170 1,130

997 1,008 1,083 1,114 1,143 1,167 1,220 1,261 1,213

1,102 1,106
1,038 1,047

959 925 965 1,025 1,004 991

886 865

801
746

654 693 771 792 845 1,007 1,025 1,012

890 868 828 826

684 695 783

300 500 700 900 1,100 1,300 1,500

2009

- 06 2009

- 07 2009

- 08 2009

- 09 2009

- 10 2009

- 11 2009

- 12 2010

- 01 2010

- 02 2010

- 03 2010

- 04 2010

- 05 2010

- 06 2010

- 07 2010

- 08 2010

- 09 2010

- 10 2010

- 11 2010

- 12 2011

- 01 2011

- 02 2011

- 03 Available SDEW Onboard PDEW Flights DEW 21.8 21.6 21.7

19.6 19.0 17.9

16.4 16.3 17.7 18.4 18.7 18.9 20.5 21.1 20.5
19.2 19.1 18.0 18.1

16.1

14.5 15.5 For the calendar year 2010, the average network carrier fare at Medford was $192 each way, or $384 roundtrip (see figure 2). This ranks Medford, as will be explained later in this proposal, among the most expe nsive air service markets in the Pacific Northwest. The average fare paid by Allegiant passengers, by contrast, was just $56 each way.

Allegiant’s low fares on less

- than

- daily service at Medford have sparked impressive passenger growth. Allegiant’s tota l passengers are up by 65,660 per year in the last two years

– an increase of 207% (see figure 2). Allegiant carried 16% of Medford’s passengers in 2010

– its highest ever passenger share in the market.

While Medford’s network carrier passengers did grow from 2009 to 2010, despite fares that were $10 higher each way, network passengers are still well off their high seen in 2007. Since 2007, Medford has lost almost 92,000 annual network carrier passengers, or 16% of network passengers (see figure 2). For the Airport, Allegiant has made up for the loss, generating additional revenue.
B ut for the region’s travelers, this loss reflects a decrease in the connectivity available at the local airport.



### FIGURE 3 : Available Seats, Passengers, and Depa rtures per Day Each Way at the Rogue Valley International

– Medford Airport; June 2009

– March 2011; Source: US DOT T100Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 13 91,370 49,570 46,670 42,620 41,780 16,030 14,990 12,060 11,870 11,720 8,160 8,090 7,920 7,870 7,630 6,480 6,450 6,260 6,190 5,450 125.2
67.9
63.9
58.4
57.2
22.0
20.5
16.5
16.3
16.1
11.2
11.1
10.8
10.8
10.5
8.9
8.8
8.6
8.5
7.5

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Los Angeles, CA Portland, OR Las Vegas, NV Phoenix/Mesa, AZ Seattle/Tacoma, WA Denver, CO San Francisco, CA Chicago, IL San Diego, CA New York/Newark, NY Anchorage, AK Salt Lake City, UT Dallas/Fort Worth, TX Washington, DC Spokane, WA Orlando/Sanford, FL Honolulu, HI Minneapolis/St Paul, MN Boston, MA Kahului, HI Annual Passengers PDEW Airlines have gained more traction in increasing Medford fares as capacity at the Rogue Valley
International

– Medford Airport continues to be cut. The region saw large capacity cuts, first, in
the summer of 2 008, when fuel initially spiked. In the summer of 2008, the Airport had an average of 28 daily departures . By summer of 2009, this number had been reduced to just 22
dail y departures (see figure 3).

Since that time, airlines have further cut Medford capacity, especially on a seasonal basis. Between June of 2009 and March of 2011, airlines reduced daily departures by 6.3 per day, to just 15.5 daily departures

– 29% less than the summer of 2009 and 45% less than the summer of 2008 (see figure 3). Available airline seats have been similarly cut in Medford. In June of 2009, airlines offered an average of 1,284 daily departing seats. By March of 2011 that number had fallen to just 965 daily departing ai rline seats

– a decrease of 25%, and a loss of 319 departing seats per day. It is clear network carrier connectivity is now a major issue at The Rogue Valley
International

– Medford Airport , as it is clear the Airport must continue to
work to recruit addi tional service to fill gaps created by airline cuts.

Allegia nt ’s impact on the market can be seen in Medford’s top 20 origin and destination passenger markets for the calendar year 2010 . In what used to be a market dominated by busine ss travel, three of the top four markets have been fueled by vacation travel on Allegiant

– number one Los Angeles, number three Las Vegas, and
number four Phoenix/Mesa ( see figure 4). This growth has been good for the Airport, but as leisure markets move up the list, and as average fares come down due to the Allegiant influence, it has become increasingly difficult for Medford to argue that it can support additional
network carrier seats. It must also be noted that Allegiant plans to end Medford

– Phoenix/Mesa 

### FIGURE 4 : Medford’s Top 20 O&D Passenger Markets Source: US DOT Table DB1A, Calendar Year 2010Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 14 service in th e fall of 2011, which will most certainly result in a reduction in passengers between
the two markets.

For the first time in over a decade, Seattle/Tacoma has been displaced from the top four O&D
markets from Medford

– now checking in at number five (see figure 4). It was overtaken by Phoenix/Mesa in 2010. It should also be noted that while Portland still ranks second, it is likely to fall as well, with the loss of competition on the route with United’s departure.

The fare disparity between Medford’s Allegiant markets and

non

- Allegiant markets is clear
when the ave rage fares to Medford’s top 20 origin and
destination passenger markets are

a nalyzed. The non

- Allegiant average fare in Medford is $192 each way , or $ 384 roundtrip . The Allegian t average fare is $56 each
way

– less than a third of the
netwo rk carrier average (see figure 5). In the two markets Allegiant serves without competition

– Las Vegas and Phoenix/Mesa

– average fares are
well below those found in markets where network connectivity is required for access.

In markets where there is little Allegiant competition, and little connecting competition due to a lack of competing hub s, fares are much higher. Take San Francisco, for example, which is about

one

- third the stage length from Medford as Los Angeles. The average one way San Francisco fare is $190, while the average Los Angeles fare is just $97 (see figure 5). This dispari ty reflects the competition on the Los Angeles route, and the lack of competition on United to San Francisco. 

### FIGURE 5 : Average Fares in Medford’s Top 20 O&D Passenger Markets Source: US DOT Table DB1A, Calendar Year 2010

$97 $84 $72 $77 $114 $176 $190 $235 $167 $238 $212 $204 $256 $251 $135 $216 $250 $214

$237 $219

$0 $50 $100 $150 $200 $250 Los Angeles, CA Portland, OR Las Vegas, NV Phoenix/Mesa, AZ Seattle/Tacoma, WA Denver, CO San Francisco, CA Chicago, IL San Diego, CA New York/Newark, NY Anchorage, AK Salt Lake City, UT Dallas/Fort Worth, TX Washington, DC

Spokane, WA Orlando/Sanford, FL
Honolulu, HI Minneapolis/St Paul, MN
Boston, MA Kahului, HI 

### Non

- G 4 Average : $ 192 Allegiant MarketRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 15 The Allegiant impact has been good for leisure travelers in the Rogue Valley and for the Airport, but it does not provide the network connectivit y that is so important for business travelers. It has also depressed the average fare

– taking into account all airlines

– meaning network carriers worry their yields will be too low on new routes to and from Medford, when the non

- Allegiant average fare w ould indicate otherwise.

Allegiant continues to carve out a profitable and growing niche in the Medford market. As of August
of 201 1 , Allegiant is the third largest carrier in Medford, in terms of available seats (see figure 6). Alaska/Horizon still ranks as the number one carrier in Medford, but it has less than 50% of the market’s available seats for only the second time in the last
decade. Unit ed ranks second with almost 34% of
available seats. Allegiant will likely fall as it removes
Medford

– Phoenix/Mesa service from its schedule in
the latter half of 2011.

With rising fares, declining capacity, and more route cuts on the horizon, the Rogue Valley
International

– Medford Airport must continue its work to bring additional capacity to the market. The Airport has found, through extensive meetings with current and prospective carriers, it is unlikely to secure additional service without a more complete risk mitigation package. This Small Community Air Service Development Grant will be an essential a part of the overall air service development program in Medford. 

### FIGURE 6 : Available Seat Share by Airline at Medford Source: Airline Schedules, August 2011

Horizon 45.04%

United 33.94% Delta 9.03% Allegiant 12.00%Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 16 AIR SERVICE DEVELOPMENT EFFORTS

For the last 15 years, the Rogue Valley International

– Medford Airport has been very active in working to attract new air service, and ensure the new service is supported in the community. The Airport meets with a number of airlines each year, in one

- on

- one headquarter settings.

So far
, in 2011, the Airport has spent considerable time talking directly with airline planners and producing materials in support of expanded service. So far this year, the Airport has met, in person, with Alaska Airlines, SkyWest, Frontier (see figure 7) , SeaPort Airlines, and Allegiant Air. The Airport also produced a market study in support of expanded Alaska Airlines service
to Portland which led to a 25% increase in frequency on the route.

The Airport has had much success in bringing additional service to the Rogue Valley. Among the new routes recruited by the Airport is Delta’s service to Salt Lake City, Horizon’s service to Los Angeles, and Allegi ant’s routes to Las Vegas, Los Angeles, and Phoenix/Mesa. The Airport
also worked with America West on service to both Phoenix and Las Vegas before that Airline’s merger with US Airways.

The Airport will continue to recruit new service where it makes sen se. The Airport is focused on sustainable service opportunities. This is only the second time the Airport has requested a Small Community Air Service Development Grant. The Airport has been able to previously requite new
service without federal Grant fu nds, b ut the reality now is that, for service to be expanded

– even where there’s a strong business case

– a revenue guarantee is required in a market of
Medford’s size. 

### FIGURE 7 : Medford’s Presentation to Frontier Airlines March 2011; Source: Sixel Consulting GroupRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 17 AIR SERVICE NEEDS AND DEFICIENCIES IN MEDFORD

Medford, despite its relative isolation on the West Coast , had long been a market that benefitted from competition to many of its top destinations, and, as such, it was a market with fares near the regional and nationwide averages. That has changed in the last year. In the calendar year 2010, the average one way,

non

- Allegiant, fare at the Rogue Valley
International

– Medford Airport shot up to $192 (see figure 8).

The average one way fare in the Northwest region, as defined by the FAA, was $175 in 2010 (see figure 8). Medford’s average fare was 10% higher t han the regional average, ranking Medford as the second most expensive Northwest market for network
carrier air service in 2010. Only North Bend, Oregon
, had higher average fares, in the Northwest, than Medford, and it only has one carrier providing servi ce. Of markets with multiple carriers in the Northwest, Medford has the highest average fares.

Medford is a similar market to Eugene, Oregon

– a Small Community Air Service Development Grant selectee for 2010. Eugene, however, benefitted from 2010 fares averaging 8% below Medford’s average. The average one way fare in Eugene in 2010 was $177, which was near the regional average, and $15 less than Medford’s $192 average each way (see figure 8).

Medford travelers will continue to struggle with higher tha n average fares due to the lack of competition to many of the community’s largest passenger markets. Each airline at Medford seems to have a specific, and protected, niche. United does well in markets to the south of
Medford through its gateway at San Francisco. Alaska/Horizon does well in markets to the north with its gateways in Portland and Seattle/Tacoma. While Delta and United compete to many 

### FIGURE 8 : Average One Way Fares in the Northwest Region Source: US DOT Table DB1A, Calendar Year 2010

$206
$192
$184
$177
$176
$175
$172
$163
$163
$152
$149
$139
$103
$92
$62
$59

$0 $50 $100 $150 $200 North Bend, OR

Medford, OR
Klamath Falls, OR Eugene, OR
Seattle/Tacoma, WA
Portland, OR
Wenatchee, WA
Walla Walla, WA

Redmond, OR Spokane, WA
Pullman/Moscow, WA
Moses Lake, WA Bellingham, WA

Pendleton, OR

Newport, OR Seattle Boeing Field, WA NW Average : $ 175Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 18 40 44 44 43 44

40 44 45 44 44

40 44 44

36 44 43 44 45 44

38 44 44 43 44 45 44 41 43

39

28 33 31 33 40

34 39 41
38

34

30 33 35

27 33 36 39 41 39

35 41 40 39 38 42 41

38 40
37

0 10 20 30 40 50 60

Available Seats Onboard Passengers Load Factor 69.5% 75.0% 71.1% 76.4% 90.8% 85.1% 90.5% 90.8% 86.5%
78.0% 74.1% 75.8% 79.4% 75.7% 76.2% 84.9% 90.5% 90.4% 88.4% 93.3% 94.7% 90.8% 92.7% 87.3% 92.3% 94.8% 91.6% 94.0% 95.2% markets in the East , capacity to both Salt Lake City and Denver is so limited both airlines are able
to c ontrol fares. Another network carrier option, through a new gateway that can compete effectively in many of these markets, is a key to lower fares in Medford.

It has been documented that total capacity at the Rogue Valley International

– Medford Airport
is down 25% since the summer of 2009

– a loss of an average of 319 departing seats per day. Capacity is set to take another hit in the fall, as Allegiant has told the Airport of its intention to discontinue service between Medford and Phoenix/Mesa. This service is being discontinued due to lower than average ancillary revenue and not due to a lack of demand for non

- stop service to/from Phoenix.

In nine of the ten months between July of 2010 and March of 2011, Allegiant averaged a load
factor on its Medford

– Phoenix/Mesa flights in excess of 90%, with a load factor of 95% in March of this year (see figure 9). The average one way fare between Medford and Phoenix during this time was $77, which is well within profitability range for Allegiant. The challenge was the fact that a lot of the users of the service were traveling to/from second homes, and had no need for ancillary products such as rental cars and hotel rooms. Ancillary revenue is key for the Allegiant model, and despite lots of passengers at a solid fare, the route doesn’t appear to fit their model



### FIGURE 9 : Seats and Passengers per Day Each Way, and Load Factor, on Allegiant’s MFR

- AZA; Source: US DOT T1 00, November 2008

– March 2010Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 19 any longer.

This does not mean there is not demand for non

- stop service between Medford and Phoenix. Passengers have proven the demand. But it is of utmost importance to match that demand with the right product

– the Allegiant product might not be best suited to the market. The market might, in fact, be better served by a network carrier.

With continued capacity cuts in
2011 , Medford ranks the most
underserved medium

- sized market
in the Pacific Northwest. As of calendar year 2010, Medford had just 2.05 available departing airline seats per capita of its Metropolitan
Stati stical Area (MSA ) (see f igure
10 ). Medford had fewer available departing seats than Bend/Redmond, Portland, S pokane, and Seattle/Tacoma.

The Pacific Northwest average for available departing a irline seats per capita was 4.02 as of the year ended first quarter 2010 (see figure 10 ). Medford’s available departing seats per capita was roughly half that average

– meaning Medford is underserved when compared to its surrounding region. A good corollary airport to Medford is Redmon d/Bend, Oregon. It had an average of 2.19 available seats per capita in 2010

- 7% above the Medford average despite a smaller population.

Another measure of the relative quality of local air service, and the air service market, is departing, or enplaned, passengers per capita. Medford is ahead of Bend/Redmond on that list for 2010

– meaning
Medford filled a higher percentage of its availabl e departing seats than Bend/Redmond

– but it still lags behind all other major Northwest cities as of calendar year 2010 largely due to its lack of available seats (see figure 11 ). While the Northwest region enplanes 2.43 passengers per capita, 

### FIGURE 11 : Departing Passengers per Capita Source: US DOT T100, US Census, Calendar Year 2010 FIGURE 10 : Available Departing Seats per Capita Source: US DOT T100, US Census, Calendar Year 2010

5.06

4.49

3.64

2.19

2.05

0 1 2 3 4 5 

### SEA

GEG

PDX

RDM

MFR Northwest Average : 4

. 02

3.06

2.93

2.28

1.39

1.25

0 1 1 2 2 3 3 

### GEG

SEA

PDX

MFR

RDM Northwest Average : 2

. 43Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 20 Medford en planes 1.39 passengers per capita

- 43% behind the regional average. The reason for the disparity is the lower number of available seats per capita, illustrating, again, that Medford is underserved relative to its peers.

While it is clear t he Rogue Valle y International

– Medford Airport is relatively underserved when compared to corollary cities in its own region , it is not easy to make the case for additional service when meeting with airline planners . The challenge for the Airport is the statistical
im pression of low fares caused by specific leisure fares offered only by Allegiant. Medford is actually a high fare market, as illustrated in this proposal, although simple DOT data analyzed by airline planners would indicate otherwise.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 21 STRATEGIC PLAN FOR NEW AIR SERVICE

The Rogue Valley International

– Medford Airport proposes to use a combination of locally raised funding , including fee waivers and marketing support, in conjunction with federal Small Community Air Service Development Grant funding in support of the addition of new service

on a US Airways Express carrier to Phoenix Sky Harbor International Airport (see map 3)

. This service would provide direct, one

- st op competition in 40 of Medford’s largest passenger markets, and provide new one

- stop options in eight markets. Additionally, this route would bring

non

- stop Phoenix service back to Medford following the anticipated loss of Allegiant’s Phoenix/Mesa servic e in fall of 2011.

The Rogue Valley International

– Medford Airport seeks a Small Community Air Service Development Grant, in the amount of $500,000, to help mitigate the initial monetary risk in serving the route . Additionally, the Airport has committed to fee waivers for a period of one year from the start of the new non

- stop service and additional marketing cash and in

- kind support to advertise the new service throughout northern California and southern Oregon.

The Airport proposes an initial schedule of one daily flight on the route in each direction. The
route between Medford and Phoenix Sky Harbor would cover 854 miles in a flight time of one hour and 51 minutes, on average, assum ing an average groundspeed of 40 0 knots on a
Canadair CRJ200 aircraft seating 50 in an all

- economy layout.

Origin Destination Departs Arrives Block Time Equipment
MFR PHX 5:35 am 7:50 am 2 :15 CRJ
PHX MFR 8:1 0p m 10:2 5 pm 2 :15 CRJ 

### MAP 3 : Proposed Route: Medford

– Phoenix

FIGURE 12 : Proposed Flight Schedule: Medford

– PhoenixRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 22 The proposed schedule aims to connect Medford to US Airways’ largest connecting banks at Phoenix , in order to ensure optimum connection options for travelers heading beyond Phoeni x (see figure 12 on previous page). The schedule is also designed with the Medford

- based business traveler in mind, with an early morning Medford departure and a late evening return, allowing for a full day of business in Phoenix

. The flight times do not take into accoun t upper level winds or weather . For the purposes of these schedules it is assumed the aircraft would overnight at Medford , where US Airways can take advantage of no

- charge overnight parking for the initial service period, as part of this proposal.

The Rogue Valley International

– Medford Airport proposes that a relatively small portion of the cost of starting the new service be supported up

- front with federal funds from the Small Community Air Service Development Program. None of the Gra nt award would be going
to immediate start

- up costs. The federal share of the project will be $500,000, all of which will be used for the airline revenue guarantee. The Rogue Valley International

– Medford Airport projects that all of the grant money will be available to provide insurance in case the US Airways Express carrier incurs a loss during the first year of operations. With demonstrated demand for
Phoenix service in the Medford market, and demand for additional connectiv ity over the US Airway s hub at Phoenix , the Airport projects the new flights will be profitable within one year. It must also be noted that US Airways is a partner in this proposal

– writing a letter of support.

If, for some unforeseen reason, service is not commenced in a ti mely manner by a US Airways Express carrier , the Rogue Valley International

– Medford Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help another carrier launch a currently unserved route. Among the options that would be considered are Alaska/ Horizon service to San Jose , American service to Dallas/Ft. Worth, and United service to Chicago O’Hare.

Should these options, for an unforeseen reason, not be available for new service at the Rogue
Va lley International

– Medford Airport , the Airport will continue its discussions with all other
carriers tha t can provide additional seats to a hub not currently served. Since the community has never before received a Small Community Air S ervice Development Grant, it should have no
limitations on which new hub the DOT could fund. 

## “The proposed schedule aims to connect Medford to US Airways’ largest connecting banks at Phoenix...”Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 23 12,780 17,900 18,850 23,980 26,300 25,280 21,550 20,990 36,790 42,610

17.5 24.5 25.8 32.8 36.0 34.6

29.5 28.8 50.4 58.4

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Total Pax

$136 $146 $148 $137 $155 $173 $173
$155

$79 $77 

### Route Specific Data: Rogue Valley/Medford

– Phoenix

The Medford

– Phoenix route has had virtually continuous non

- stop service, in one form or another, since October of 2 002. From that time until August of 2008
, America West Express and US Airways Express served the route. US Airways Express ended its service on the route at the end of the summer of 2008, despite high load factors, due to the increased cost of fuel

– as fuel approached $150 per barrel in the US.

Sensing an opportunity, Allegiant began service between the Rogue Valley International

– Medford Airport and Phoenix/Mesa in November of 2008. Allegiant has served the route twice weekly since that time, but has indicated it will permanently end service after Labor Day of 2011, as detailed in this proposal. Allegiant’s average load factor for the duration of its service between Medford and Phoenix/Mesa has been 88%.

The Medford

– Phoenix market currently generates 58.4 passengers per day each way as of the calendar year 2010, or 42,610 annual origin and destination passengers (see figure 13). T he
Medford

– Phoenix market has grown by 103%, adding almost 30 passengers per day each way since Allegiant entered. The last time US Airways served the market, the Medford

– Phoenix route generated 28.8 passengers per day each way.



### FIGURE 13 : O&D Passengers and One Way Fares, Medford

– Phoenix (PHX+AZA) Source: US DOT Table DB1A; 2001

– 2010Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 24 48 49 51 48 48 49 49 58

46 44 46 49 50 49 48 97 99

60

42 41 44 42 41 38 43 47

36 36 38 40 39 44 42 81 83

52

0 20 40 60 80 100 120

2007

- 03 2007

- 04 2007

- 05 2007

- 06 2007

- 07 2007

- 08 2007

- 09 2007

- 10 2007

- 11 2007

- 12 2008

- 01 2008

- 02 2008

- 03 2008

- 04 2008

- 05 2008

- 06 2008

- 07 2008

- 08 Available Seats Onboard Passengers Load Factor 86.2% 82.9% 85.7% 89.2% 86.2%

77.0% 88.1%
80.6% 78.4% 80.3% 82.0% 80.5% 77.7% 89.5% 86.3% 83.0% 83.4% 86.5% It is clear that decl ining fares stimulated passengers between Medford and Phoenix when Allegiant entered the market. It is not anticipated that the market will remain this size should Allegiant be replaced by US Airways. However, it is anticipated that fares will return to levels

near those seen in 2008, and that the market will remain robust

– in excess of 30 local passengers per day each way. The large size of the local market should help ensure US Airways has success
on the route.

It is important to note that US Airways Express had little trouble filling aircraft when it served the route between Medford and Phoenix. In the last year and a half of non

- stop service provided under the US Airways code the service averaged a load factor of 83.1% (see figure 14). Even when capacity was increased during the summer of 2008, load factors remained above 83%.

The question must then be asked , why did US Airways pull the Medford

- Phoenix route if it appeared to have been performing well? It was likely the result of a general corporate strategy
to retire fuel inefficient 50

- seat regional jets as the cost of fuel soared above $140 per barrel. 

### FIGURE 14 : Seats and Passengers Per Day Each Way, and Load Factor, MFR

- PHX on US Airways Source: US DOT T100; March 2007

– August 2008Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 25 M any Northwest markets lost service to Phoenix on the US code, including Medford, Eugene, Redmond/Bend, and Kalispell.

With the price of fuel stabilizing below $100 per barrel (as of the time of the writing of this proposal) and with US Airways reporting r ecent profits, the Rogue Valley International

– Medford Airport believes now is an ideal time for US Airways to revisit the Medford market.

The US Airways hub at Phoenix acts as an excellent connecting point from Medford to 48 one

stop destinations (see map 4). In 40 of these markets the addition of US Airways would add a competing carrier, and likely help to
lower what are the
Northwest’s second
h ighest average
fares. In another eight of these cities US Airways would be providing the first

one

- stop service
from Medford.

The Medfo rd market currently produces
286 unstimulated origin and
destination passengers per day each way to destinations that naturally connect over the US Airways hub at Phoenix

– not taking into account any stimulation from additional non

- stop service (see figure 15 on next page ) . A s of calendar
year 2010 , Medford produced 208,730 total origin and destination passengers that would flow

over Phoenix on the US code

. 

### MAP 4 : One

- Stop Connections over PHX on US Airways Source: Sixel Consulting Group Hub Builder, July 2011Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 26 In all, the Medford

– Phoenix route has the potential to capture 35 % of the current passengers flying in and out of Medfo rd, itself, without taking into account any passenger leakage (see figure 15 ). At the same time, the Phoenix US Airways hub could capture 39 % of the current revenue generated in
the Medford market. Currently, US Airways markets from Medford that
flow over Phoenix generate almost $40 million i n annual airline revenue, or $53,350 in revenue per day each way (RDEW) to and from
Medford

.

The US Airways hub at Phoenix has potential to capture large portions of traffic in the vast majority of
Medf ord’s largest origin and
destination markets. The Phoenix 

### FIGURE 15: Medford Passengers and Revenue Flowing over PHX on US Airways Source: Sixel Consulting Group Hub Builder, Calendar Year 2010

FIGURE 16 : Medford’s Top Passenger Markets over PHX on US Airways Source: Sixel Consulting Group Hub Builder, Calendar Year 2010

Phoenix

35%

Other Hubs 65% Phoenix 39%

Other Hubs 61%

Medford O&D Revenue $100,847,540 100% Revenue Flowing Over Phoenix $38,995,040 39% Medford O&D Passengers 594,620 100% Passengers Flowing Over Phoenix 208,730 35%

42,620 16,030 11,990 11,870 9,980 7,920 6,480 6,450 6,260 6,190 5,970 5,450 4,810 4,790 4,160 4,140 3,950 3,700 3,500 3,020 58.4

22.0
16.4
16.3
13.7
10.8
8.9
8.8
8.6
8.5
8.2
7.5
6.6
6.6
5.7
5.7
5.4
5.1
4.8
4.1

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Phoenix
Denver Chicago San Diego
New York/Newark

Dallas/Ft. Worth
Orlando
Honolulu Minneapolis/St. Paul
Boston Washington

- Baltimore
Maui

- Kahului Philadelphia
Atlanta
Houston
Puerto Vallarta
Kona
Kauai
Charlotte
Los Cabos Annual Passengers
PDEWRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 27 hub is especially well positioned to capture traffic traveling to destinations in the Southwest
, the Midwest, the S outheast, and the East Coast

– including large markets such as Phoenix, which prod uces 58.4 passengers per day each way (PDEW) as of calendar year 2010; Denver , which produce s 22.0 PDEW; Chicago, which produces 16.4 PDEW; San Diego, which produces 16.3 PDEW; New York/Newark, which produces 13.7 PDEW; and Dallas/Ft. Worth, which produces 10.8 PDEW (see figure 16 on previous page ).

Should it launch service between Medford and Phoenix
, US Airways would be competing in
markets that h ave current fares averaging $187 each way (see figure 17 ). Essentially, US Airways would provide much

- needed competition for Medford catchment area residents traveling to most of the market’s top destinations, where fa res top the regional average. Examples
include Chicago , where the average roundtrip fare was $468 as of calendar year 2010 ; New York/Newark , where the average roundtrip fare was $478 as of calendar year 2010 ; Dallas/Ft. Worth,
where the average roundtrip fare was $512 as of calendar year 2010 ; Boston
, where the average fare was $474 roundtrip; Washington

- Baltimore
, where the averag e roundtrip fare was $48 0; and Philadelphia , where the average roundtrip fare was $502 as of calendar year 2010

.

The best chance at fare relief in markets that flow over Phoenix on US Airways is for an additional airline to offer competing service. US Airways service would go a long way towards providing enough competition to bring fares inline with those found in other Nor thwest markets.

The Airport believes there is sufficient passenger traffic and revenue that would flow over the US Airways hub at Phoenix to make the service profitable over the long term

. US Airways would not 

### FIGURE 17 : Average One Way Fares in Medford’s Top Markets
over PHX on US ; Source: Sixel Consulting Group Hub Builder, 2010

$127 $176 $234 $167 $239 $256 $216 $250 $214

$237 $240 $219 $251

$275 $237 $183 $215

$235

$263 $181

$0 $50 $100 $150 $200 $250 Phoenix
Denver Chicago San Diego New York/Newark

Dallas/Ft. Worth
Orlando
Honolulu Minneapolis/St. Paul
Boston Washington

- Baltimore
Maui

- Kahului Philadelphia
Atlanta
Houston Puerto Vallarta
Kona Kauai Charlotte Los Cabos Average Over PHX : $ 187Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 28 be forced to offer rock

- bottom fares in Medf ord to be competitive

– even fares slightly higher
than those found in other Northwest markets would be considered low for local Medford
travelers. The Rogue Valley International

– Medford Airport believes in the Medford

– Phoenix
market . Two airlines ha ve served the route with proven demand

– and some of the highest load factors in their respective systems. Still, due to the Allegiant effect on fares in the Medford market, it will likely take a revenue guarantee to convince US Airways to re

- launch the m arket.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 29 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in September of 2011

. Once the award is announced, the Rogue Valley International

– Medford Airport will conduct additional airline meeting s to secure new service that is mutually beneficial

. Based on airline planning lead times and the need for advance bookings, we assume the new carrier would not be able to begin
service until at lea st June of 2012

.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with US Airways to negotiate for service, and sign the minimum revenue guarantee agreement with US Airwa ys

. Once service is announced and schedules are published, the Airport would begin marketing the new route and working with the
new carrier to monitor advance bookings. The Airport will continue its marketing program and
continue to work with the new car rier to monitor the route once service begins. The Airport would submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is awarded. It is also possible that new service could slip to 2013 should an airline require additional risk mitigation, beyond that included in this proposal , from the community.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2011 Executive Grant Agreement with DOT October 2011 Meet With Prospective Airlines Oct/Nov 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline Jan - Mar 2012 Announce Service March 2012 Publish Schedule March 2012 Begin Marketing of New Route March 2012 Monitor Advance Bookings March - June 2012 Service Launch June 2012 MRG Available for Service June 2012 - October 2014 Monitor Route Performance June 2012 - October 2014 Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2014 Close Grant October 2014Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 30 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by a US Airways Express carrier , the Rogue Valley International

– Medford Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help another carrier launch a currently unserved route. Among the options that would be considered are Alaska/Horizon service to San Jose, American se rvice to Dallas/Ft. Worth, and United service to Chicago O’Hare.

Should these options, for an unforeseen reason, not be available for new service at the Rogue Valley International

– Medford Airport , the Airport will continue its discussions with all other
carriers tha t can provide additional seats to a hub not currently served. Since the community has never before received a Small Community Air S ervice Development Grant, it should have no
limitatio ns on which new hub the DOT could fund.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 31 PUBLIC/PRIVATE PARTNERSHIP

The City of Medford, Jackson County, and the Rogue Valley International

– Medford Airport consistently work together on air service development projects. Other local partners will be working with the Airport to promote and market this proposed new service. The Airport will manage and coordinate the marketing program.

Among the partners in this application are the Southern Oregon Re gional Economic Development and the Medford/Jackson County Chamber of Com merce. These partners will play vital roles in ensuring new service is a success.

The Airport’s additional partners are listed below, including their role in the effort to retain current
air service and recru it additional air service.



### US Airways

US Airways is a partner in this application. A US Airways Express affiliate would be the operator of the proposed service between Medford and Phoenix. US Airways has expressed support for the application, and the option of beginning service, should this Grant be awarded, in June of 2012.



### Southern Oregon Regional Economic Development, Inc.

Southern Oregon Regional Economic Development, Inc. (SOREDI) is the primary economic development agency for Jackson County and the rest of southern Oregon. Covering a wide geographic region, SOREDI assists local and relocating companies with a variety of business resources and services including business attraction and creation; business retention and expansion; site location, commercial property acquisition, and building permits; international
trade
, and import and export issues.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 32 Medford/Jackson County Chamber of Commerce

The Medford/Jackson County Chamber of Commerce is a totally independent non

- profit corporation (not affiliated with government or any other agency) . I t is uniquely able to serve the needs of its southern Oregon members. Over 1,500 small and large businesses collectively work together to achieve this goal by promoting the community, providing networking opportunities and representing business issues through lobbying and political action.

The Chamber is the number one business resource citizens look to in the community. The area's
economic well

- being bene fits from the work performed by The Chamber. The Chamber seek s to have a major impact on business, income and future growth of the Medford/Jackson County

area.



### Medford Visitor Con vention Bureau

The Medford Visitor Convention Bureau works to promote the Rogue Valley throughout the country. The Bureau spends much time and money publicizing the region’s outdoor activities, unique festivals, exciting events and spectacular scenery. The Bureau works with the Airport to spur additional inbound travel to sout hern Oregon.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 33 FUNDING PLAN

Marketing and Advertising

The Rogue Valley International

– Medford Airport proposes to spend at least $50,000 in funds on marketing and advertising promotions in support of new service introductions. The goal is to increase ridership and usage of new service through targeted regional campaigns.



### Revenue Guarantee

The Rogue Valley International

– Medford Airport proposes to make available at least $500,000 in funds for a revenue guarantee to US Airways , to cover start

- up losses that may occur during the
first twelve months of service on the Phoenix route. Subject to negotiation, payments will be
made to US Airwa ys 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. The Airport may opt to invoke a second
12

- mo nth period of revenue guarantees.



### 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.

**•** Southern Oregon Regional Economic Development, Inc.

**•** Medford/Jackson County Chamber of Commerce

**•** Medford Visitor Convention Bureau

**•** City of Medford

**•** Jackson County

**•** Various local Medford media outletsRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 34 Startup Cost Offsets

The Airport proposes to use a small portion of the funding provided under this propo sal to pay for
start

- up costs in support of new service introductions. Money will be reimbursed to the new carrier, from the revenue guarantee portion of this proposal, as invoices are submitted detailing the work performed to offset the acquisition of ne cessary equipment to begin service (items include carts, tugs, power units, computer equipment, cabling, software, etc.).



### Additional Costs

As part of this program, the Rogue Valley International

– Medford 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
recruitment of US Airways to fly the Phoeni x route. The Airport will use other sources of funding to pay for these efforts, ensuring the DOT funding goes to the revenue guarantee.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 35 PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of new service under this proposal will be based on three measurable variables: the increase in available seats in the market, the number of enplanements, and the average airfares in the affected city

- pairs. The first two measurements will include a monthly comparison
, once the program begins
, to past numbers. The second measurement will be derived from US DOT OD1A reports.

As the sponsor, the Rogue Valley International

– Medford Airport will be the responsible party for all fiscal matters and DOT reporting requirements. As a public entity
, t he 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 Rogue Valley International

– Medford Airport understands that the grant is a reimbursable gra nt, 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 mark eting program will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will also be in place for twelve months, with two additional
twelve

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

- sustaining within the second twelve months of service.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 36 LEGAL SPONSOR

The Jackson County/ Rogue Valley International

– Medford Airport is the legal sponsor responsible for administering the program. The Jackson County/ Rogue Valley International

– Medford Airport is a government entity.

Jackson County/Rogue Valley International

– Medford Airport 1000 Terminal Loop Parkway, Suite 201 Med ford, Oregon 97504 Bern Case, AAE , Airport Director 541.776.7222 CaseBE@jacksoncounty.orgRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 37 LETTER S OF SUPPORTRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 38Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 39Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 40 AVAILABILITY OF ALTERNATE AIRPORTS

The Rogue Valley International

– Medford Airport catchment area includes the area defined by the US Census Bureau as the Medford Metropolitan Statistical Area (MSA), along with other regions where Medford is the nearest airport with commercial air service

– including all areas of southern Oregon and northern California within a two hour drive of the airport (see map 5 ).
T

here are no true alternate airports within three hours of Medford.



### MAP 5 : Medford’s Location in Southern Oregon Source: Sixel Consulting GroupRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 41 AIRPORT INFORMATION

The Rogue Valley International

– Medford Airport i s a public airport located 3 miles (5 km) north of downtown Medford in Jackson County, Oregon, USA. In addition to Jackson County, the airport serves seven nearby counties in southwest Oregon. It is owned and o perated by Jackson County's Aviation Authority. The Rogue Valley International

– Medford Airport is the third busiest airport in Oregon

.

The Airport’s new 100,000 square foot terminal was built with the future of southern Oregon/northern California air
service in mind. The new terminal hosts an observation deck on the second floor, as well as a restaurant for screened and unscreened passengers. Also, second

- story loading bridg es have been put in place for easier loading and unloading of passengers. Now that the new terminal is complete, there is a main concourse, and two open

- air

concourses. The terminal lobby houses five rental car agencies, a gift shop, a restaurant/lounge, and airline operations. Coincidentally with the construction of a new terminal, a new control tower was built

.

T

he $3.6 million, 100

- foot tall control tower was completed
in late 2008

. The Rogue Valley International

– Medford Airport is equipped with t wo runways , available space in the air carrier terminal, and an excellent location with nearby highway access.

The $35 million terminal was funded in such a way as to
divert the cost from the air carriers serving the Medford market. The Airport’s main air carrier runway is Runway 14/32, which is 8,800 feet in length and 150 feet wide . The main runway
features an ILS/DME approach. The Airport has a shorter, crosswind, secondary runway, 9/27
, which is designed for general aviation operations. T his runw ay is 3,136 feet long

. 

### FIGURE 18: Rogue Valley International Airport, Source: Google EarthRogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 42 COMMUNITY PROFILE

Medford is the major economic and cultural capital of a huge swath of southern Oregon and
northern California . Due to the City’s relative isolation

– located about halfway between San
Francisco and Portland

– it has become the de

- facto hub of influence for a huge area that is home to more than 500,000 people

.

Due to the Rogue Valley’s mild climate, its attracti ve geographic position at the base of the Cascades and the Coast Range, a nd its lower cost of living than nearby Napa and Sonoma, Medford is increasingly becoming a
retirement destination.

Nearby Ashland

– a suburb of Medford just south of the City

– is a huge tourist destination , drawing 100,000 visitors each year for its famed Oregon Shakespeare Festival. Medford is also the gateway to Crater Lake National Park , as the closest commercially served airport

– a Park that draws more than 500,000 annual visi tors

.

Medford benefits from a diversified economy , which smoothes out highs and lows in the “boom and bust” cycle. The largest direct marketer of fruits and food gifts in the United States, Harry & David, is based in Medford. Medford and the surrounding area is home to the expanding Oregon wine industry that includes a large variety of Bordelaise, Rhone, and Burgundian
varietals.

Ashland is also home to Southern Oregon University , which is one of the State’s premier liberal arts institutions, enrolling roughly 5,000 full

- time students. Medford, itself
, is home to Rogue Co mmunity College, and 4,300 full

- time students.

As there are no towns of equal or larger size within several hours' drive, Medford is a regional hub for medical services.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 43 Medford Economic Overview Medford’s economy is doing extremely well, despite the nationwide recession. Medford is o ne of the f ew n ational m arkets t o p ost j ob g rowth in the l ast y ear, a dding 1,100 full

- t ime j obs

. The
Medford c atchment a rea h as s een s ome of the s trongest j ob g rowth in the W est in the l ast d ecade

– a dding 19.7 % m ore j obs in the last nine years.

The median family income in Medford is $57,100 in 2009

– holding steady from 2008. The median home price in Medford in 2009 was just $245,000

– 20% less than the national median price of $294,000.

The Medford community is well educated, with almost 61% of those living in the catchment area having graduated from college . Medford ACA residents spend an average of $7,200 on
vacation each year

– about $1,200 above the national average spent on vacation.



### FIGURE 19 : Top Employers in the Medford Area, bold indicates corporate headquarters location. Source: The Chamber of Medford/Jackson County, 2011Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 44 Select Company Profiles

Lithia Motors , Inc.
Lithia Motors is an automotive dealership network headquartered in Medford, Oregon, primarily serving the western United States. It is the seventh largest automotive retailer in the United States, and ranks as number 615 on the
Fortune 1000 list of t he largest companies in the US

. They ranked fourth in their industry for
A merica's Most Admired Companies . The corporate offices in Medford employ 330, while nearly 2,500 additional people are employed at local Lithia dealerships throughout the country.

U ntil recently
, Lithia Motors had its headquarters scattered around separate buildings in
downtown Medford

– but now construction has begun on centralizing th e Lithia headquarters
into a four

- story building in downtown Medford. The pro ject includes a Lithia office building, two city blocks of park space and a promenade, and a pedestrian thoroughfare through a Sixth Street city parking garage.

Asante Health System and Rogue Valley Medical Center As the largest healthcare provider in nine counties, Asante provides comprehensive medical care to more than 580,000 people throughout southern Oregon and northern California
, through local facilities and additional healthcare partnerships throughout the region. Asante Health System is headquartered in Medford and is governed by local volunteers and physicians. The headquarte rs employs nearly 3,000 people and
, with facilities throughout the area, regional air travel is a necessity.

Asante’s facilities include Rogue Valley Medical Center in Medford , which employs an additional 1,638 people. In May 2008
, Rogue Valley Medical C enter (RVMC) celebrated its fiftieth year serving the region. With 378 licensed beds, RVMC continues to uphold its national reputation for expertise in cardiology, stroke care, and other medical specialties

. RVMC also offers advanced orthopedic care throu gh the Joint Replacement Center and state

- of

- the

- art oncology care at the Dubs Cancer Center.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 45 Harry & David Harry & David was founded in Medford and to this day is headquartered here as one of Southern Oregon's largest employer. The extensive 55 acre campus is comprised of numerous buildings, each housing some aspect of the vertically integrated operations which are
th e strength and tradition of Harry & David's companies.

The most visible landmark is the 1937 art deco packing house, a local attraction prominently located along the main highway. The campus consists of administrative offices, an information te chnology building, packing houses, storage facilities, a candy kitchen and bakery complex, an employment and education center,
customer service call cent er, marketing offices, an in

ho use advertising agency and much more. Additionally there are 2,700 acres of orchards located around the Rogue Valley. Here, the normal workforce of about 2,000 swells to over 6,700 at the peak of the holiday season, with as many as 100,000 calls received in a single day.

The company also operates a 500

- seat seasonal call cent er in Eugene, Oregon
, which is instrumental in handling the call volume during their busy holiday season. There is also a second campus in Hebron, Ohio
, as well as more than 125 stores nationwide.

Amy’s Kitchen Amy's Kitchen is a privately held corporat ion with the purpose of making healthy, organic, and easy

- to

- prepare frozen food. Owned and run by Andy and Rachel Berliner, Amy's Kitchen took its name from their then

- newborn daughter. While the headquarters are now in Petaluma, CA, the company still operates one of its two processing plants in Medford (the other in Santa Rosa, CA). The company employs over 1,500 people; more than 450 of those in Medford. Nearly all U.S. mainstream sup ermarkets carry Amy's soups, sauces and/or frozen food.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 46 Tourism in the Medford Area

Medford offers visitors an array of year

- round attractions, outdoor activities, unique festivals, exciting events and spectacular scenery. Located just 27 miles north of the Oregon/California border, Medford is surrounded with historic wealth, cultural attractions, and rich agricultural land

.

Crater Lake National Park Crater Lake is the major tourist draw for all of southern Oregon , bringing in more than a half

mill ion visitors from around the world each year. It is located in Southern Oregon on the crest of the Cascade Mountain range , 100 miles (160 km) east
of the Pacific Ocean. Crater Lake is 86 miles from the Rogue Valley International

- Medford Airport

– a dri ve of 2 hours and 20 minutes.

It lies inside a caldera, or volcanic basin, created when the 12,000 foot (3,660 meter) high Mount Mazama collapsed 7,700 years ago following a large eruption, with no inlets or outlets to the lake . Crater Lake, at 1,943 f eet (592 meters) deep, is the seventh deepest lake in the world and the deepest in the United States.

Open year round, this national park offers something for every visitor. The endless options include watching the sunrise over the lake or spending a qu iet evening by the fireplace at Crater Lake Lodge, gazing at the lake from more than 20 scenic overlooks during a breathtaking trip around Crater Lake on Rim Drive , exploring the park by hiking up mountain peaks, cruising through the volcano area on daily boat tours, or learn ing more about the area’s natural and cultural history on a guided walk.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 47 Oregon Shakespeare Festival Founded in 1935, the Tony Award

- winning Oregon Shakespeare Festival (OSF) is among the oldest and largest professional non

- profit theatres in the natio n. Each year OSF presents an eight

- and

- a

- half

- month season of eleven plays in three theatres plus numerous ancillary activities, and undertakes an extensive theatre education program. Operating on a budget exceeding $26 mi llion, OSF presents more than 780 performances annually with attendance of approximately 400,000

.

Wine Country Southern Oregon is quickly emerging as one of the premier wine regions of the country. Surrounded by Southern Oregon’s vast
collection of mo untains, rivers and green forests, the area boasts nearly sixty vineyards and cellars, most open to the public to draw in
visitors to the area. The area also features a diverse array of fine restaurants with talented chefs who often prepare locally grown cuisine to pair with the award winning wines.

The rugged mountain valleys and diverse climates allow for a wide variety of intensely flavored wine grapes to be grown. The cooler areas of Southern Oregon produce wonderful Pinot Noir, Pinot Gris, Riesling, Sauvignon Blanc, Chardonnay, and Gewürztraminer while the warmer, more arid regions ripen big reds such as Cabernet Sauvignon, Cabernet Franc, Tempranillo, Merlot, Malbec, Dolcetto, Zinfandel, Grenache and Syrah; making Southern Oregon one of the most diverse winegrowing regions in the world.

A visit to a winery in Southern Oregon can involve much more than just tasting wine. Located in beautiful valleys with stunning vistas, a family member or winemaker may be pouring wine in the tasting room, or be nearby to share stories and special wines with you.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 48 Higher Education

Southern Oregon University SOU’s main campus is located in Ashland, Oregon, an ideal college town with its own rich heritage of culture and outdoor activities that complement life on campus. The school has an enrollment of 4,460 students , along with faculty and staff of 976.

Situated in Ashland, Southern Oregon University combines quality education with a spectacular location. Surrounded by rugged mountains, rivers, and lakes, the beautifu l 175

- acre campus is
home to 4
, 6 00 students from around the world. SOU, a four

year university specializing in liberal arts, sciences, and select graduate and professional programs, offers 100 areas of study, including 37 majors in the schools of arts an d letters, sciences, social sciences, and business. S OU specializes in individual attention offering small class sizes.

The school's sports teams are called the Raiders with the Red
Tailed Hawk as a mascot. They have twelve varsity teams
and part icipate in the NAIA and in the Cascade
Conference

. SOU’s football team is an NAIA independent . It is the host to Patrick Voigtsberger, who not only is the youngest NCAA coach, but is the first to officially coach two colleges in the same conference. SOU's wrestling team competes in the NAIA West Regional and has won the National Wrestling Championship four times: in 1978, 1983, 1994, and 2001. SOU's teams compete in men's and women's cross country, women's soccer, volleyball, men's and women's basketball, men's and women's track and field, women's tennis
, and softball.Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 49 COMPARISO N TO OTHER COMMUNITIES IN THE NORTHWEST

PDEW Percent of Airport CY 2008 CY 2009 CY 2010 CY 2010 CY 2010 08-10 09-10

1 Seattle/Tacoma, WA 10,354,990 9,918,300 9,972,880 27,323 46.1% -1.9% 0.6% 2 Portland, OR 5,467,020 5,055,210 5,111,120 14,003 23.6% -3.3% 1.1% 3 Spokane, WA 1,568,980 1,386,280 1,433,040 3,926 6.6% -4.4% 3.4% 4 Boise, ID 1,401,650 1,247,610 1,252,190 3,431 5.8% -5.5% 0.4% 5 Bellingham, WA 261,920 314,950 387,330 1,061 1.8% 21.6% 23.0% 6 Billings, MT 393,730 367,710 357,220 979 1.7% -4.7% -2.9% 7 Bozeman, MT 325,010 316,240 332,350 911 1.5% 1.1% 5.1% 8 Eugene, OR 308,360 297,900 323,550 886 1.5% 2.4% 8.6% 9 Pasco, WA 220,150 234,420 283,400 776 1.3% 13.5% 20.9% 10 Medford, OR 260,940 259,000 279,190 765 1.3% 3.4% 7.8% 11 Missoula, MT 266,300 260,430 268,470 736 1.2% 0.4% 3.1% 12 Jackson, WY 278,640 261,350 260,370 713 1.2% -3.3% -0.4% 13 Redmond, OR 211,140 196,560 197,740 542 0.9% -3.2% 0.6% 14 Kalispell, MT 173,640 150,330 163,460 448 0.8% -3.0% 8.7% 15 Great Falls, MT 134,390 135,070 144,450 396 0.7% 3.7% 6.9% 16 Idaho Falls, ID 137,170 128,080 134,940 370 0.6% -0.8% 5.4% 17 Helena, MT 79,450 82,450 89,060 244 0.4% 5.9% 8.0% 18 Casper, WY 68,540 67,000 75,320 206 0.3% 4.8% 12.4% 19 Lew iston, ID 58,350 56,600 54,980 151 0.3% -2.9% -2.9% 20 Sun Valley, ID 60,460 47,000 48,310 132 0.2% -10.6% 2.8% 21 Yakima, WA 61,450 51,220 46,240 127 0.2% -13.3% -9.7% 22 Wenatchee, WA 42,730 45,240 41,650 114 0.2% -1.3% -7.9% 23 Pullman/Moscow , WA 27,610 28,650 31,480 86 0.1% 6.8% 9.9% 24 Tw in Falls, ID 24,760 23,300 27,910 76 0.1% 6.2% 19.8% 25 Gillette, WY 26,840 25,470 27,310 75 0.1% 0.9% 7.2% 26 Walla Walla, WA 27,470 30,360 27,110 74 0.1% -0.7% -10.7% 27 Seattle Boeing Field, WA 25,490 28,150 26,260 72 0.1% 1.5% -6.7% 28 Cody, WY 23,320 25,220 24,450 67 0.1% 2.4% -3.1% 29 Butte, MT 26,850 22,230 23,830 65 0.1% -5.8% 7.2% 30 North Bend, OR 34,860 23,470 22,510 62 0.1% -19.6% -4.1% 31 Rock Springs, WY 24,700 17,610 19,910 55 0.1% -10.2% 13.1% 32 Klamath Falls, OR 26,170 20,940 19,880 54 0.1% -12.8% -5.1% 33 Cheyenne, WY 14,400 10,390 17,440 48 0.1% 10.1% 67.9% 34 Pocatello, ID 22,210 19,350 16,040 44 0.1% -15.0% -17.1% 35 Sheridan, WY 17,210 13,680 14,830 41 0.1% -7.2% 8.4% 36 Riverton, WY 16,470 13,740 14,660 40 0.1% -5.7% 6.7% 37 Friday Harbor, WA 13,410 12,620 12,080 33 0.1% -5.1% -4.3% 38 Seattle Lake Union SPB, WA 11,690 12,650 10,390 28 0.0% -5.7% -17.9% 39 Port Angeles, WA 11,980 12,740 10,130 28 0.0% -8.0% -20.5% 40 Laramie, WY 9,140 7,350 7,780 21 0.0% -7.7% 5.9% 41 Pendleton, OR 6,670 3,830 4,900 13 0.0% -14.3% 27.9% 42 Eastsound, WA 4,060 3,380 3,720 10 0.0% -4.3% 10.1% 43 Sidney, MT 1,320 2,740 3,650 10 0.0% 66.3% 33.2% 44 West Yellow stone, MT 4,320 3,970 3,260 9 0.0% -13.1% -17.9% 45 New port, OR 0 1,990 3,010 8 0.0% 100.0% 51.3% 46 Worland, WY 2,980 2,630 2,880 8 0.0% -1.7% 9.5% 47 Roche Harbor, WA 2,840 3,220 2,510 7 0.0% -6.0% -22.0% 48 Westsound, WA 1,790 1,880 1,730 5 0.0% -1.7% -8.0% 49 Glasgow , MT 310 1,130 1,610 4 0.0% 127.9% 42.5% 50 Moses Lake, WA 0 2,610 1,430 4 0.0% 100.0% -45.2%
Top 50 Airports 22,543,880 21,254,250 **21,639,960** 59,288 100.0% -2.0% 1.8%
Total Regional Passengers 22,570,220 21,264,430 21,648,580 59,311 100.0% -2.1% 1.8% Avg. Ann. Change Rank 

### FIGURE 20: Top 50 Northwest Region Airports Ranked by O&D Passengers Calendar Year 2010, Source: US DOT Table DB1ARogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 50 Itinerary Average Airport CY 2008 CY 2009 CY 2010 Mileage Yield 08-10 09-10

1 Butte, MT $304.31 $285.23 $284.91 1,393 20.46¢ -3.2% -0.1% 2 West Yellow stone, MT $174.43 $180.83 $245.77 1,244 19.75¢ 18.7% 35.9% 3 Helena, MT $280.27 $250.06 $244.80 1,358 18.02¢ -6.5% -2.1% 4 Jackson, WY $252.40 $209.76 $244.29 1,500 16.29¢ -1.6% 16.5% 5 Kalispell, MT $259.20 $231.33 $241.90 1,443 16.76¢ -3.4% 4.6% 6 Riverton, WY $224.49 $205.08 $222.17 886 25.08¢ -0.5% 8.3% 7 Idaho Falls, ID $230.03 $215.25 $221.57 1,115 19.87¢ -1.9% 2.9% 8 Gillette, WY $250.67 $216.44 $219.37 1,122 19.55¢ -6.5% 1.4% 9 Bozeman, MT $249.01 $207.69 $217.33 1,358 16.00¢ -6.6% 4.6% 10 Rock Springs, WY $242.34 $217.49 $217.14 1,067 20.35¢ -5.3% -0.2% 11 Great Falls, MT $245.76 $213.17 $214.13 1,259 17.01¢ -6.7% 0.5% 12 Casper, WY $279.04 $224.16 $213.37 1,098 19.43¢ -12.6% -4.8% 13 Cody, WY $265.13 $214.04 $210.14 1,292 16.27¢ -11.0% -1.8% 14 Sheridan, WY $221.65 $206.82 $208.66 904 23.08¢ -3.0% 0.9% 15 Sun Valley, ID $234.85 $213.63 $208.21 1,132 18.39¢ -5.8% -2.5% 16 North Bend, OR $187.21 $160.01 $206.29 1,527 13.51¢ 5.0% 28.9% 17 Missoula, MT $224.40 $206.10 $204.64 1,283 15.95¢ -4.5% -0.7% 18 Cheyenne, WY $209.98 $200.27 $197.26 929 21.23¢ -3.1% -1.5% 19 Sidney, MT $177.28 $175.95 $196.07 818 23.97¢ 5.2% 11.4% 20 Laramie, WY $199.24 $180.73 $195.60 686 28.50¢ -0.9% 8.2% 21 Worland, WY $179.03 $203.83 $192.58 730 26.37¢ 3.7% -5.5% 22 Lew iston, ID $187.02 $180.53 $192.18 1,131 16.99¢ 1.4% 6.5% 23 Medford, OR $197.96 $164.99 $192.10 1,204 14.03¢ 16.4% 2.4% 24 Billings, MT $198.54 $176.50 $189.90 1,199 15.84¢ -2.2% 7.6% 25 Pasco, WA $227.87 $205.08 $189.81 1,300 14.60¢ -8.7% -7.4% 26 Yakima, WA $197.71 $175.39 $186.69 1,131 16.51¢ -2.8% 6.4% 27 Klamath Falls, OR $197.55 $158.85 $183.97 1,554 11.84¢ -3.5% 15.8% 28 Eugene, OR $199.79 $178.08 $177.46 1,286 13.80¢ -5.8% -0.3% 29 Seattle/Tacoma, WA $176.03 $157.06 $175.98 1,507 11.68¢ 0.0% 12.0% 30 Portland, OR $168.40 $159.11 $175.07 1,407 12.44¢ 2.0% 10.0% 31 Wenatchee, WA $175.48 $163.11 $172.21 1,017 16.94¢ -0.9% 5.6% 32 Pocatello, ID $169.39 $133.84 $167.40 1,104 15.16¢ -0.6% 25.1% 33 Walla Walla, WA $184.38 $159.49 $162.95 1,022 15.94¢ -6.0% 2.2% 34 Redmond, OR $173.21 $149.92 $162.69 1,188 13.70¢ -3.1% 8.5% 35 Boise, ID $146.15 $141.17 $154.36 996 15.50¢ 2.8% 9.3% 36 Spokane, WA $148.53 $144.24 $151.82 1,116 13.60¢ 1.1% 5.3% 37 Pullman/Moscow , WA $161.65 $154.46 $149.47 811 18.44¢ -3.8% -3.2% 38 Moses Lake, WA $0.00 $118.43 $138.94 1,185 11.72¢ 100.0% 17.3% 39 Glasgow , MT $89.20 $131.30 $135.50 440 30.83¢ 23.3% 3.2% 40 Tw in Falls, ID $146.36 $132.72 $124.20 969 12.82¢ -7.9% -6.4% 41 Bellingham, WA $131.64 $104.82 $103.29 1,023 10.10¢ -11.4% -1.5% 42 Pendleton, OR $175.82 $92.30 $92.30 182 50.71¢ -27.5% 0.0% 43 New port, OR $0.00 $62.30 $62.30 100 62.30¢ 100.0% 0.0% 44 Seattle Boeing Field, WA $50.48 $57.05 $58.60 95 61.51¢ 7.7% 2.7% 45 Westsound, WA $54.47 $54.51 $54.42 84 64.88¢ 0.0% -0.2% 46 Roche Harbor, WA $54.23 $54.26 $54.05 83 64.98¢ -0.2% -0.4% 47 Seattle Lake Union SPB, WA $52.73 $50.70 $52.75 81 65.43¢ 0.0% 4.0% 48 Friday Harbor, WA $45.44 $47.20 $47.26 71 66.46¢ 2.0% 0.1% 49 Port Angeles, WA $46.50 $46.50 $46.50 69 67.39¢ 0.0% 0.0% 50 Eastsound, WA $40.75 $44.50 $46.18 68 67.83¢ 6.5% 3.8%
Average Regional Fare $175.95 $159.95 $174.78 1,375 12.71¢ -0.3% 9.3% Avg. Ann. Change Rank 

### FIGURE 26: Top 60 Northwest Region Airports Ranked by O&D Revenue YE1Q10, Source: US DOT Table DB1A FIGURE 21: Top 50 Northwest Region Airports Ranked by Average Fare Calendar Year 2010, Source: US DOT Table DB1ARogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 51 Seats Overall Airport CY 2008 CY 2009 CY 2010 CY 2010 3 Yr Avg 08-10 09-10

1 Bellingham, WA 75.0% 80.7% 85.0% 469,029 80.6% 6.5% 5.3% 2 Seattle/Tacoma, WA 77.8% 80.1% 82.2% 17,251,062 79.9% 2.8% 2.6% 3 Portland, OR 76.0% 77.0% 79.1% 8,151,615 77.3% 2.0% 2.7% 4 Missoula, MT 76.0% 79.1% 78.9% 368,196 78.0% 1.9% -0.3% 5 Bozeman, MT 70.8% 75.0% 78.3% 466,451 74.5% 5.2% 4.4% 6 Kalispell, MT 71.8% 72.3% 77.3% 226,886 73.7% 3.8% 6.9% 7 Eugene, OR 69.0% 70.4% 76.7% 482,574 72.0% 5.4% 9.0% 8 Pasco, WA 70.0% 71.3% 75.8% 414,146 72.5% 4.0% 6.2% 9 Medford, OR 66.9% 70.6% 75.7% 412,572 71.0% 6.4% 7.3% 10 Idaho Falls, ID 65.0% 66.6% 75.2% 194,017 68.6% 7.6% 12.9% 11 Spokane, WA 73.9% 75.7% 74.3% 2,105,924 74.6% 0.3% -1.8% 12 Billings, MT 73.1% 70.5% 73.8% 529,668 72.5% 0.5% 4.7% 13 Jackson, WY 70.3% 69.1% 73.8% 402,261 71.0% 2.5% 6.7% 14 Boise, ID 69.5% 71.3% 73.4% 2,011,644 71.3% 2.8% 2.9% 15 Great Falls, MT 66.3% 66.3% 69.4% 255,714 67.3% 2.3% 4.6% 16 Casper, WY 54.7% 61.1% 69.2% 122,575 61.4% 12.4% 13.3% 17 Redmond, OR 66.8% 66.5% 67.2% 347,476 66.8% 0.3% 1.1% 18 Port Angeles, WA 66.1% 69.8% 66.0% 15,444 67.4% -0.1% -5.5% 19 Cody, WY 54.0% 61.6% 65.5% 43,501 60.2% 10.1% 6.4% 20 Helena, MT 62.0% 60.3% 65.2% 176,522 62.4% 2.5% 8.1% 21 Butte, MT 55.2% 71.5% 63.4% 40,100 61.4% 7.1% -11.4% 22 Tw in Falls, ID 54.0% 59.8% 61.7% 60,445 58.5% 6.9% 3.2% 23 Wenatchee, WA 70.1% 59.6% 61.5% 76,304 63.3% -6.3% 3.3% 24 Yakima, WA 62.0% 56.1% 59.8% 91,645 59.3% -1.8% 6.7% 25 Sun Valley, ID 52.6% 56.8% 59.5% 96,680 55.9% 6.4% 4.8% 26 North Bend, OR 70.3% 55.2% 58.9% 39,118 62.2% -8.4% 6.8% 27 Walla Walla, WA 66.3% 46.6% 58.8% 49,783 55.4% -5.8% 26.4% 28 Seattle Lake Union SPB, WA 61.8% 60.6% 57.4% 33,792 59.9% -3.6% -5.3% 29 Seattle Boeing Field, WA 58.2% 52.6% 57.1% 57,258 55.9% -1.0% 8.4% 30 Lew iston, ID 55.3% 57.4% 54.8% 147,027 55.8% -0.4% -4.4% 31 Pullman/Moscow , WA 53.7% 55.0% 54.1% 116,513 54.2% 0.4% -1.7% 32 Klamath Falls, OR 59.6% 47.0% 53.0% 40,732 53.3% -5.7% 12.6% 33 Riverton, WY 53.5% 49.5% 49.9% 30,473 51.0% -3.5% 0.8% 34 Pocatello, ID 50.6% 50.1% 49.6% 42,910 50.1% -1.0% -0.9% 35 Westsound, WA 48.0% 47.8% 46.9% 10,526 47.6% -1.1% -1.9% 36 Rock Springs, WY 49.0% 40.7% 45.1% 60,996 44.7% -4.1% 10.7% 37 Sheridan, WY 52.6% 45.5% 45.0% 39,532 47.6% -7.5% -1.1% 38 Laramie, WY 49.5% 45.0% 44.4% 27,745 46.4% -5.3% -1.4% 39 Gillette, WY 44.6% 39.1% 43.9% 77,472 42.5% -0.7% 12.4% 40 Cheyenne, WY 41.8% 42.0% 41.9% 53,788 41.9% 0.2% -0.2% 41 Friday Harbor, WA 35.1% 34.1% 33.4% 61,630 34.2% -2.5% -2.1% 42 Kenmore, WA 27.1% 30.3% 25.3% 10,858 27.6% -3.5% -16.5% 43 Worland, WY 30.0% 21.7% 23.1% 13,756 24.3% -12.2% 6.4% 44 Eastsound, WA 21.1% 16.8% 17.9% 34,806 18.6% -8.1% 6.1% 45 Sidney, MT 15.0% 9.8% 15.2% 23,681 12.6% 0.6% 55.0% 46 Glasgow , MT 14.5% 11.1% 14.6% 12,927 12.8% 0.3% 31.0% 47 Miles City, MT 16.7% 14.4% 11.9% 12,901 13.9% -15.5% -17.0% 48 Lew istow n, MT 12.8% 9.8% 9.8% 14,554 10.5% -12.5% 0.2% 49 Havre, MT 8.0% 8.8% 9.3% 10,532 9.0% 7.5% 5.3% 50 Anacortes, WA 9.8% 5.7% 4.4% 16,764 6.6% -33.0% -23.5%
Average Load Factor 74.6% 76.1% 78.3% 35,852,525 76.3% 2.4% 2.8% Avg. Ann. Change Rank 

### FIGURE 22: Top 50 Northwest Region Airports Ranked by Load Factor Calendar Year 2010, Source: US DOT T100Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 52 Outbound Percent of Airport CY 2008 CY 2009 CY 2010 Seats / Day CY 2010 08-10 09-10

1 Seattle/Tacoma, WA 18,790,716 17,676,803 17,251,062 47,263 48.0% -4.2% -2.4% 2 Portland, OR 9,015,092 8,170,960 8,151,615 22,333 22.7% -4.9% -0.2% 3 Spokane, WA 2,295,774 1,983,695 2,105,924 5,770 5.9% -4.2% 6.2% 4 Boise, ID 2,408,842 2,097,076 2,011,644 5,511 5.6% -8.6% -4.1% 5 Billings, MT 581,220 566,717 529,668 1,451 1.5% -4.5% -6.5% 6 Eugene, OR 509,273 484,562 482,574 1,322 1.3% -2.7% -0.4% 7 Bellingham, WA 371,385 405,161 469,029 1,285 1.3% 12.4% 15.8% 8 Bozeman, MT 516,114 459,255 466,451 1,278 1.3% -4.9% 1.6% 9 Pasco, WA 356,146 378,969 414,146 1,135 1.2% 7.8% 9.3% 10 Medford, OR 445,119 428,085 412,572 1,130 1.1% -3.7% -3.6% 11 Jackson, WY 433,463 411,177 402,261 1,102 1.1% -3.7% -2.2% 12 Missoula, MT 380,977 356,154 368,196 1,009 1.0% -1.7% 3.4% 13 Redmond, OR 363,100 341,607 347,476 952 1.0% -2.2% 1.7% 14 Great Falls, MT 260,097 274,361 255,714 701 0.7% -0.8% -6.8% 15 Kalispell, MT 260,161 221,845 226,886 622 0.6% -6.6% 2.3% 16 Idaho Falls, ID 225,760 215,778 194,017 532 0.5% -7.3% -10.1% 17 Helena, MT 167,938 195,026 176,522 484 0.5% 2.5% -9.5% 18 Lew iston, ID 142,515 140,848 147,027 403 0.4% 1.6% 4.4% 19 Casper, WY 137,474 121,859 122,575 336 0.3% -5.6% 0.6% 20 Pullman/Moscow , WA 110,129 110,850 116,513 319 0.3% 2.9% 5.1% 21 Sun Valley, ID 131,882 94,355 96,680 265 0.3% -14.4% 2.5% 22 Yakima, WA 115,269 108,509 91,645 251 0.3% -10.8% -15.5% 23 Gillette, WY 76,677 81,308 77,472 212 0.2% 0.5% -4.7% 24 Wenatchee, WA 68,590 86,356 76,304 209 0.2% 5.5% -11.6% 25 Friday Harbor, WA 61,814 63,146 61,630 169 0.2% -0.1% -2.4% 26 Rock Springs, WY 54,438 61,707 60,996 167 0.2% 5.9% -1.2% 27 Tw in Falls, ID 56,766 49,025 60,445 166 0.2% 3.2% 23.3% 28 Seattle Boeing Field, WA 58,004 62,078 57,258 157 0.2% -0.6% -7.8% 29 Cheyenne, WY 50,363 45,120 53,788 147 0.1% 3.3% 19.2% 30 Walla Walla, WA 46,097 76,001 49,783 136 0.1% 3.9% -34.5% 31 Cody, WY 47,846 43,217 43,501 119 0.1% -4.6% 0.7% 32 Pocatello, ID 52,616 45,038 42,910 118 0.1% -9.7% -4.7% 33 Klamath Falls, OR 45,282 42,720 40,732 112 0.1% -5.2% -4.7% 34 Butte, MT 70,830 35,200 40,100 110 0.1% -24.8% 13.9% 35 Sheridan, WY 35,557 34,626 39,532 108 0.1% 5.4% 14.2% 36 North Bend, OR 50,526 40,469 39,118 107 0.1% -12.0% -3.3% 37 Eastsound, WA 33,396 33,753 34,806 95 0.1% 2.1% 3.1% 38 Seattle Lake Union SPB, WA 35,015 36,769 33,792 93 0.1% -1.8% -8.1% 39 Riverton, WY 32,368 29,043 30,473 83 0.1% -3.0% 4.9% 40 Laramie, WY 27,834 20,852 27,745 76 0.1% -0.2% 33.1% 41 Sidney, MT 8,842 29,384 23,681 65 0.1% 63.7% -19.4% 42 Anacortes, WA 16,758 16,758 16,764 46 0.0% 0.0% 0.0% 43 Port Angeles, WA 18,357 18,341 15,444 42 0.0% -8.3% -15.8% 44 Lew istow n, MT 7,258 10,602 14,554 40 0.0% 41.6% 37.3% 45 Worland, WY 12,217 21,394 13,756 38 0.0% 6.1% -35.7% 46 Glasgow , MT 2,147 15,105 12,927 35 0.0% 145.4% -14.4% 47 Miles City, MT 5,985 16,389 12,901 35 0.0% 46.8% -21.3% 48 Kenmore, WA 10,008 11,252 10,858 30 0.0% 4.2% -3.5% 49 Havre, MT 2,166 8,436 10,532 29 0.0% 120.5% 24.8% 50 Westsound, WA 10,905 11,780 10,526 29 0.0% -1.8% -10.6%

Total of Above 39,017,108 36,289,521 **35,852,525** 98,226 99.7% -4.1% -1.2%

Total Seats Available 39,154,489 36,407,495 35,943,713 98,476 100.0% -4.2% -1.3% Rank Avg. Ann. Change 

### FIGURE 23: Top 50 Northwest Region Airports Ranked by Available Seats Calendar Year 2010, Source: US DOT T100Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 53 Outbound Percent of Airport CY 2008 CY 2009 CY 2010 Flights / Day CY 2010 08-10 09-10

1 Seattle/Tacoma, WA 147,221 136,307 134,199 367.7 33.3% -4.5% -1.5% 2 Portland, OR 88,016 80,751 79,730 218.4 19.8% -4.8% -1.3% 3 Boise, ID 25,763 22,071 21,001 57.5 5.2% -9.7% -4.8% 4 Spokane, WA 23,099 19,365 20,835 57.1 5.2% -5.0% 7.6% 5 Friday Harbor, WA 9,494 9,711 9,484 26.0 2.4% -0.1% -2.3% 6 Billings, MT 7,637 8,444 8,357 22.9 2.1% 4.6% -1.0% 7 Eugene, OR 8,295 7,817 7,620 20.9 1.9% -4.2% -2.5% 8 Bellingham, WA 6,853 6,884 7,248 19.9 1.8% 2.8% 5.3% 9 Medford, OR 8,874 7,312 6,900 18.9 1.7% -11.8% -5.6% 10 Bozeman, MT 6,574 6,181 6,620 18.1 1.6% 0.3% 7.1% 11 Eastsound, WA 5,964 6,025 6,143 16.8 1.5% 1.5% 2.0% 12 Pasco, WA 6,082 5,566 6,070 16.6 1.5% -0.1% 9.1% 13 Redmond, OR 7,147 5,854 5,766 15.8 1.4% -10.2% -1.5% 14 Missoula, MT 5,315 5,235 5,449 14.9 1.4% 1.3% 4.1% 15 Seattle Boeing Field, WA 4,802 6,045 5,276 14.5 1.3% 4.8% -12.7% 16 Seattle Lake Union SPB, WA 4,512 4,952 4,460 12.2 1.1% -0.6% -9.9% 17 Great Falls, MT 3,991 3,938 3,719 10.2 0.9% -3.5% -5.6% 18 Jackson, WY 3,935 3,807 3,448 9.4 0.9% -6.4% -9.4% 19 Kalispell, MT 4,045 3,344 3,370 9.2 0.8% -8.7% 0.8% 20 Anacortes, WA 3,362 3,361 3,362 9.2 0.8% 0.0% 0.0% 21 Idaho Falls, ID 3,907 3,715 3,292 9.0 0.8% -8.2% -11.4% 22 Gillette, WY 2,587 3,121 3,151 8.6 0.8% 10.4% 1.0% 23 Helena, MT 2,963 3,247 2,876 7.9 0.7% -1.5% -11.4% 24 Sun Valley, ID 3,454 2,659 2,553 7.0 0.6% -14.0% -4.0% 25 Casper, WY 3,075 2,485 2,265 6.2 0.6% -14.2% -8.9% 26 Lew iston, ID 2,406 2,034 2,141 5.9 0.5% -5.7% 5.3% 27 Cheyenne, WY 2,116 1,660 2,096 5.7 0.5% -0.5% 26.3% 28 Rock Springs, WY 1,951 2,008 2,078 5.7 0.5% 3.2% 3.5% 29 Port Angeles, WA 2,056 2,082 1,763 4.8 0.4% -7.4% -15.3% 30 Tw in Falls, ID 1,843 1,602 1,701 4.7 0.4% -3.9% 6.2% 31 Sheridan, WY 1,311 1,218 1,645 4.5 0.4% 12.0% 35.1% 32 Pullman/Moscow , WA 1,662 1,447 1,524 4.2 0.4% -4.2% 5.3% 33 Westsound, WA 1,509 1,653 1,450 4.0 0.4% -2.0% -12.3% 34 Pocatello, ID 1,664 1,442 1,402 3.8 0.3% -8.2% -2.8% 35 Kenmore, WA 1,278 1,466 1,393 3.8 0.3% 4.4% -5.0% 36 Laramie, WY 1,397 977 1,351 3.7 0.3% -1.7% 38.3% 37 Klamath Falls, OR 1,313 1,420 1,344 3.7 0.3% 1.2% -5.4% 38 Roche Harbor, WA 1,354 1,553 1,315 3.6 0.3% -1.5% -15.3% 39 North Bend, OR 1,455 1,352 1,307 3.6 0.3% -5.2% -3.3% 40 Cody, WY 1,175 1,025 1,261 3.5 0.3% 3.6% 23.0% 41 Bellevue, WA 1,320 1,308 1,260 3.5 0.3% -2.3% -3.7% 42 Riverton, WY 1,296 1,000 1,187 3.3 0.3% -4.3% 18.7% 43 Yakima, WA 1,896 1,399 1,178 3.2 0.3% -21.2% -15.8% 44 Pendleton, OR 953 1,086 1,057 2.9 0.3% 5.3% -2.7% 45 Wenatchee, WA 1,460 1,139 1,005 2.8 0.2% -17.0% -11.8% 46 Sidney, MT 395 1,165 932 2.6 0.2% 53.6% -20.0% 47 New port, OR 2 575 894 2.4 0.2% 2014.2% 55.5% 48 Lopez Island, WA 927 961 818 2.2 0.2% -6.1% -14.9% 49 Butte, MT 1,160 688 792 2.2 0.2% -17.4% 15.1% 50 Lew istow n, MT 382 558 766 2.1 0.2% 41.6% 37.3%

Total of Above 431,248 401,015 **396,854** 1,087.3 98.4% -4.1% -1.0%
Total Flights Completed 438,062 409,651 403,223 1,104.7 100.0% -4.1% -1.6% Rank Avg. Ann. Change 

### FIGURE 24: Top 50 Northwest Region Airports Ranked by Flights Completed Calendar Year 2010, Source: US DOT T100Rogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 54 RDEW Percent of Airport CY 2008 CY 2009 CY 2010 CY 2010 CY 2010 08-10 09-10

1 Seattle/Tacoma, WA $1,678,175 $1,448,859 $1,623,302 $4,447 46.4% -1.6% 12.0% 2 Portland, OR $848,117 $743,848 $824,678 $2,259 23.6% -1.4% 10.9% 3 Spokane, WA $217,781 $186,117 $202,177 $554 5.8% -3.6% 8.6% 4 Boise, ID $192,100 $164,787 $181,047 $496 5.2% -2.9% 9.9% 5 Bozeman, MT $69,890 $57,912 $63,984 $175 1.8% -4.3% 10.5% 6 Billings, MT $72,775 $61,028 $63,513 $174 1.8% -6.6% 4.1% 7 Jackson, WY $61,126 $47,198 $54,530 $149 1.6% -5.5% 15.5% 8 Eugene, OR $55,198 $47,884 $52,545 $144 1.5% -2.4% 9.7% 9 Pasco, WA $46,410 $44,480 $50,345 $138 1.4% 4.2% 13.2% 10 Missoula, MT $53,673 $47,982 $49,643 $136 1.4% -3.8% 3.5% 11 Medford, OR $46,084 $39,067 $43,401 $119 1.2% -3.0% 11.1% 12 Bellingham, WA $32,920 $31,983 $39,099 $107 1.1% 9.0% 22.2% 13 Kalispell, MT $38,001 $29,339 $33,937 $93 1.0% -5.5% 15.7% 14 Great Falls, MT $30,457 $26,644 $28,895 $79 0.8% -2.6% 8.4% 15 Redmond, OR $32,317 $26,372 $28,837 $79 0.8% -5.5% 9.3% 16 Idaho Falls, ID $28,753 $25,027 $27,530 $75 0.8% -2.2% 10.0% 17 Helena, MT $20,076 $18,239 $19,630 $54 0.6% -1.1% 7.6% 18 Casper, WY $17,967 $14,158 $15,348 $42 0.4% -7.6% 8.4% 19 Lew iston, ID $10,067 $9,444 $9,726 $27 0.3% -1.7% 3.0% 20 Sun Valley, ID $12,414 $8,795 $9,049 $25 0.3% -14.6% 2.9% 21 Yakima, WA $11,174 $8,259 $7,901 $22 0.2% -15.9% -4.3% 22 Wenatchee, WA $6,828 $6,645 $6,423 $18 0.2% -3.0% -3.3% 23 Butte, MT $7,404 $5,745 $6,251 $17 0.2% -8.1% 8.8% 24 Gillette, WY $6,603 $5,368 $5,798 $16 0.2% -6.3% 8.0% 25 Cody, WY $5,594 $4,880 $4,774 $13 0.1% -7.6% -2.2% 26 North Bend, OR $6,110 $3,536 $4,303 $12 0.1% -16.1% 21.7% 27 Pullman/Moscow , WA $4,085 $4,004 $4,261 $12 0.1% 2.1% 6.4% 28 Rock Springs, WY $5,930 $3,771 $4,206 $12 0.1% -15.8% 11.5% 29 Walla Walla, WA $4,615 $4,325 $3,952 $11 0.1% -7.5% -8.6% 30 Klamath Falls, OR $4,801 $3,174 $3,488 $10 0.1% -14.8% 9.9% 31 Cheyenne, WY $2,996 $2,059 $3,355 $9 0.1% 5.8% 63.0% 32 Tw in Falls, ID $3,363 $2,856 $3,275 $9 0.1% -1.3% 14.7% 33 Riverton, WY $3,659 $2,787 $3,219 $9 0.1% -6.2% 15.5% 34 Sheridan, WY $3,779 $2,811 $3,074 $8 0.1% -9.8% 9.4% 35 Pocatello, ID $3,512 $2,361 $2,437 $7 0.1% -16.7% 3.2% 36 Seattle Boeing Field, WA $1,287 $1,606 $1,539 $4 0.0% 9.4% -4.2% 37 Laramie, WY $1,805 $1,325 $1,500 $4 0.0% -8.8% 13.2% 38 West Yellow stone, MT $705 $669 $732 $2 0.0% 1.9% 9.5% 39 Sidney, MT $234 $482 $716 $2 0.0% 74.9% 48.4% 40 Friday Harbor, WA $609 $596 $571 $2 0.0% -3.2% -4.1% 41 Worland, WY $528 $534 $551 $2 0.0% 2.1% 3.1% 42 Seattle Lake Union SPB, WA $616 $641 $548 $2 0.0% -5.7% -14.6% 43 Port Angeles, WA $557 $592 $471 $1 0.0% -8.0% -20.5% 44 Pendleton, OR $1,101 $354 $452 $1 0.0% -35.9% 27.9% 45 Miles City, MT $24 $146 $239 $1 0.0% 217.0% 64.2% 46 Glasgow , MT $28 $148 $218 $1 0.0% 180.9% 47.0% 47 Moses Lake, WA $0 $303 $193 $1 0.0% 100.0% -36.3% 48 New port, OR $0 $124 $188 $1 0.0% 100.0% 51.3% 49 Havre, MT $19 $119 $178 $0 0.0% 202.6% 49.3% 50 Eastsound, WA $165 $150 $172 $0 0.0% 1.9% 14.2%
Top 50 Airports $3,652,435 $3,149,533 **$3,496,201** $4,789 100.0% -2.2% 11.0%
Total Regional Revenue $3,655,860 $3,150,430 $3,496,920 $4,790 100.0% -2.2% 11.0% Avg. Ann. Change Rank 

### FIGURE 25: Top 50 Northwest Region Airports Ranked by O&D Revenue Calendar Year 2010, Source: US DOT Table DB1ARogue Valley International

- Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 

## 55 CONCLUSION

Medford ranks as one of the most underserved markets in the Pacific Northwest. In 2010, Medford had just 2.05 available departing airline seats per capita of its Metropolitan Statistical Area (MSA). The Pacific Northwest average number of available depar ting a irline seats per capita was 4.02 in 2010. Medford’s available departing seats per capita were roughly half the
average.

The result of the limited number of available seats in the market is higher than average fares. In 2010, Medford has the dubious honor of having the second highest network carrier average fare
in the Northwest

– at $192 each way, or $ 384 roundtrip. Airlines have reduced Medford capacity by 25% in the last two years. The result: they now have strong control over the amount they can charge passengers for
each seat.

The situation could get worse in th e fall of 2011, as Allegiant has told the Airport it plans to end its long running non

- stop service to Phoenix/Mesa. Medford has had

non

- stop to Phoenix, in one form or another, for the last nine years. This proposal seeks to ensure
that service continue s, by supporting US Airways’ return to the market on the Medford

– Phoenix
route.

US Airways is a partner in this application. The Airline has written a letter of suppor t for Medford’s plan for continuing service to Phoenix.

T

he Rogue Valley International

– Medford Airport has recruited seven new routes in the last 15 years without ever asking the DOT for a Small Community Air Service Development Grant. Times have changed, and Medford now seeks the same kind of support that has been afforded to
other Northwest cities such as Eugene, Idaho Falls, North Bend/Coos Bay, Kalispell, and Helena. The Airport will be an excellent steward of SCASD Grant funding, as it works to enhance air service throughout southern Oregon. 

## “The... Airport has recruited seven new

routes... without ever asking the DOT

for a... Grant. Medford seeks the same kind of sup port that has been afforded to other Northwest cities...”