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-2011-0119
Rogue 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

Letters 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 Number
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 3

INTRODUCTORY LETTER OF SUPPORT
Rogue 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 Grant: _______________________

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 4a (airport in-kind contribution) and 4b (other in-kind contribution), 

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

Fee Waivers: One year waivers of landing and terminal fees (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?

 No
Rogue 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 growth in 2010 – with total passengers up 7% to 814 

passengers per day each way.

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. Since the summer of 2009, 

airlines have reduced available seats at Medford by 25% - a loss of 319 departing 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.

Medford 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 last year. Medford has had nonstop 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 International – 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 its 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 about 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 minute) 

and extended (120 minute) catchment areas; Source: Sixel Consulting Group
Rogue 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, the 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 versus 

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 true 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 Data
Rogue 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). It 

must be 

noted, 

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 in 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 growth 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 Data
Rogue 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

It 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 carriers have not declined at the same rate. Essentially, the only true “fare 

relief” the Medford market has seen 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 fare structure is much different 

than 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. 

Network 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 DB1A
Rogue 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 expensive 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 total 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. 

But for the region’s travelers, this loss reflects a decrease in the connectivity available at the 

local airport.

FIGURE 3: Available Seats, Passengers, and Departures per Day Each Way at the Rogue Valley 

International – Medford Airport; June 2009 – March 2011; Source: US DOT T100
Rogue 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 2008, 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 

daily 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 airline 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 additional service to 

fill gaps created by airline cuts.

Allegiant’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 business 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 2010
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 14

service in the 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 average fares to 

Medford’s top 20 origin and 

destination passenger markets are 

analyzed. The non-Allegiant

average fare in Medford is $192

each way, or $384 roundtrip. The 

Allegiant average fare is $56 each 

way – less than a third of the 

network 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 hubs, 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 disparity 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-G4 Average: $192

Allegiant Market
Rogue 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 connectivity 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 would indicate otherwise.

Allegiant continues to carve out a profitable and 

growing niche in the Medford market. As of August

of 2011, 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. United 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 

Allegiant’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 sense. 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 funds, but 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 Group
Rogue 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 than 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 service. 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 than 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: $175
Rogue 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 control 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 T100, November 2008 – March 2010
Rogue 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 

Statistical Area (MSA) (see figure 

10). Medford had fewer available 

departing seats than Bend/Redmond, Portland, Spokane, and Seattle/Tacoma.

The Pacific Northwest average for available departing airline 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 Redmond/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 available 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: 2.43
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 20

Medford enplanes 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 the Rogue Valley 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 

impression 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-stop 

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 service 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, assuming an average groundspeed of 400 knots on a 

Canadair CRJ200 aircraft seating 50 in an all-economy layout.

Origin Destination Departs Arrives Block Time Equipment

MFR PHX 5:35am 7:50am 2:15 CRJ

PHX MFR 8:10pm 10:25pm 2:15 CRJ

MAP 3: Proposed Route:

Medford – Phoenix

FIGURE 12: Proposed Flight Schedule:

Medford – Phoenix
Rogue 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 Phoenix 

(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 account 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 Grant 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 connectivity over the US 

Airways 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 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 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 

Valley International – Medford Airport, the Airport will continue its discussions with all other 

carriers that can provide additional seats to a hub not currently served. Since the community 

has never before received a Small Community Air Service 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 2002. 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). The 

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 – 2010
Rogue 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 declining 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 2008
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 25

Many 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 recent 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 onestop 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 

highest average 

fares. In another 

eight of these cities 

US Airways would be 

providing the first 

one-stop service 

from Medford.

The Medford 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). As 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 2011
Rogue 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 Medford, 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 in 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 

Medford’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 

PDEW
Rogue 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 Southeast, and the East Coast – including large markets such as Phoenix, which 

produces 58.4 passengers per day each way (PDEW) as of calendar year 2010; Denver, which 

produces 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 have 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 fares 

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 average roundtrip fare was 

$480; 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 Northwest 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: $187
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 28

be forced to offer rock-bottom fares in Medford 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 have 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 market.
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 

meetings 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 least 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 Airways. 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 carrier 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 2014
Rogue 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 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 

Valley International – Medford Airport, the Airport will continue its discussions with all other 

carriers that can provide additional seats to a hub not currently served. Since the community 

has never before received a Small Community Air Service Development Grant, it should have no 

limitations 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 Regional Economic 

Development and the Medford/Jackson County Chamber of Commerce. 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 recruit 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). It 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 benefits from the work performed by The Chamber. The Chamber seeks

to have a major impact on business, income and future growth of the Medford/Jackson County 

area.

Medford Visitor Convention 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 southern 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 Airways 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-month 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 outlets
Rogue 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 proposal 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 necessary 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 Phoenix 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, the DOT can be assured 

that proper financial controls are in place to guarantee that the DOT’s grant will be used in 

accordance with any subsequent agreement. The Rogue Valley International – Medford Airport

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

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

percentage of the total grant request.

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

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

Medford, Oregon 97504

Bern Case, AAE, Airport Director

541.776.7222

CaseBE@jacksoncounty.org
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 37

LETTERS OF SUPPORT
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 38
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 39
Rogue 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). 

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

MAP 5: Medford’s Location in Southern Oregon

Source: Sixel Consulting Group
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • August 2011 41

AIRPORT INFORMATION

The Rogue Valley International – Medford Airport is 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 operated 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 bridges 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.

The $3.6 million, 100-foot tall control tower was completed 

in late 2008. The Rogue Valley International – Medford 

Airport is equipped with two 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. This runway is 3,136 feet long.

FIGURE 18: Rogue Valley International Airport, 

Source: Google Earth 
Rogue 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 attractive 

geographic position at the base of the Cascades and the 

Coast Range, and 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 visitors. 

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 Community 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 one 

of the few national markets to post job growth in the last year, adding 1,100 full-time jobs. The 

Medford catchment area has seen some of the strongest job growth in the West in the last 

decade – adding 19.7% more jobs 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, 2011
Rogue 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 the largest companies in the US. They ranked fourth in their industry for 

America'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.

Until recently, Lithia Motors had its headquarters scattered around separate buildings in 

downtown Medford – but now construction has begun on centralizing the Lithia headquarters 

into a four-story building in downtown Medford. The project 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 headquarters 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 Center (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 through 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 

the 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 technology building, packing 

houses, storage facilities, a candy kitchen and bakery 

complex, an employment and education center, 

customer service call center, marketing offices, an inhouse 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 center 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 corporation 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 supermarkets 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 halfmillion 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 

drive 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 feet (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 quiet 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 learning 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 nation. 

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 million, 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 mountains, 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 beautiful 175-acre campus is 

home to 4,600 students from around the world. SOU, a fouryear 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 and letters, 

sciences, social sciences, and business. SOU 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 participate 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

COMPARISON 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 DB1A
Rogue 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 DB1A
Rogue 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 T100
Rogue 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 T100
Rogue 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 T100
Rogue 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 DB1A
Rogue 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 departing airline 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 the 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 continues, 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 support for Medford’s 

plan for continuing service to Phoenix.

The 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 support that has been 

afforded to other Northwest cities...”