# August 27, 2010 An Integrated Program of New Service Development via: Advertising/Marketing and Revenue Guarantees In Support of New Scheduled Air Service to/from San Francisco

Sponsor: Idaho Falls Regional Airport Idaho Falls, Idaho Len Nelson, Airport Director Congressional Code: ID-002
Dun & Bradstreet Number: 190437095 

# IDAHO FALLS REGIONAL AIRPORT
Proposal Under the Small Community Air Service Development Program Docket: DOT-OST-2010-0124 Before the Office of the Secretary of Transportation US Department of TransportationIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 2 TABLE OF CONTENTS

Section Page Introductory Letters of Support 3 Summary Information 5
Introduction 8 Primary Objectives of Proposal 9 Executive Summary 10 Detailed Explanation of Proposal 14 Expected Results 16 Letter of Support 20
Current Air Service 21
Air Service Deficiencies 26 Extenuating Factors Affecting Air Service 29 Availability of Alternate Airports 32
Use of Local/Federal Funds 33 Public/Private Partnerships 34 Implementation Timeline 36 Air Service Advisory Groups 37 Local Air Service Development Efforts 38 In-kind Services from the Community 40
Performance Measures 41 Legal Sponsor 42
Financial Controls 43
Return on Investment 44 DOT Exit Strategy 45
Alternate Plan 46 Airport Information 47 Community Profile 48 Comparison to Other Commun ities in Region 60
Conclusions 64Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 3 INTRODUCTORY LETTERS OF SUPPORTIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 4Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 5 SUMMARY INFORMATION

Small Community Air Service Development Program
Docket DOT-OST-2010-0124



### A. Applicant Information

Not a Consortium Community now receives EAS subsidy
Interstate Consortium Intrastate Consortium Community previously re ceived a Small Community Grant If previous recipient, date of Grant: ________2005

____________________ expiration date of Grant: _October 2008

_________


### B. Public/Private Partnership

Public:

1. Idaho Falls Regional Airport
2. City of Idaho Falls

Private:

1. Idaho Falls Chambe r of Commerce
2. GROW Idaho Falls Economic Development Council 3. Idaho National Laboratories (INL)Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 6 C. Project Proposal

Marketing Upgrade Aircraft New Route
Personnel Increased Frequency Low Fare Service
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (Specify)
Revenue Guarantee Launch New Carrier Start Up Cost Offset First Competitive Service Study Secure Additional Carrier



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Inst rument Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 500,000
2. State cash financial contribution: $ 0
3. Local cash financial contribution: $ 50,000 3a. Airport cash funds: $ 25,000 3b. Non-Airport cash funds: $ 25,000
3c. Total local cash funds: $ 50,000
4. TOTAL CASH FUNDING: $ 550,000
5. Local funds contributed from already existing Programs of projects included in line 3c: $ 0
6. Local funds contributed from new commitments
Or new resources included in line 3c: $ 0
7. Airport In-Kind contribution: $ Various Description: Fee waivers: One year without landing and terminal fees
8. Other In-Kind contribution: $ 10,000 Description: Advertising and marketing match money
9. TOTAL IN-KIND CONTRIBUTION: $ 10,000
10. TOTAL PROJECT COST: $ 560,000Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 7 F. Enplanements at Airport

2000: 114,625
2001: 110,185
2002: 106,950
2003: 108,165
2004: 109,045
2005: 126,935
2006: 143,005
2007: 152,660
2008: 136,915
2009: 127,325



### 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?

NoIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 8 INTRODUCTION

Idaho Falls was the recipient of what some ha ve described as one of the most successful previous Small Community Air Service Development Grants. In 2005, the Idaho Falls Regional Airport was awarded a Grant in support of a re venue guarantee for the entrance of United Express to the market, supporting the non-stop route to Denver with two daily frequencies. Service launched in the summer of 2006. It was immediately profitable – in the first year of service. The full revenue guarantee portion of the Grant was returned to the DOT at the termination of the Grant, in 2008.

Idaho Falls will be left without any westbound connecting service as of August 22, 2010, as Horizon leaves the market and pulls its Idaho Falls – Boise service. It appears the service is not being pulled because of lack of demand. On the other hand, it appears service is being pulled
due to Horizon’s lack of the ri ght type of aircraft to make the service work well for intrastate travel. The Airport believes there is significant demand for westbound service. It believes Horizon’s service pattern made Boise the wrong
hub for most of Idaho Falls’ westbound travelers.

As of the first quarter of 20 10, Idaho Falls had the highest average fare in the Northwest region, as defined by the FAA, of airports with catchment areas of 300,000 or more residents – at $223 each way. Fare relief will only come with additional competition. It is likely fares will increase more with the loss of Horizon service. As Horizon leaves the market, Delta gains a virtual monopoly to markets west of Idaho Falls. The only way the Airport will secure competition in these western markets is to add new westbound
service.

The Airport proposes a new route between Idaho Fa lls and San Francisco. The Airport met with United to discuss the potential route and its pr ojected performance in Jul y at United’s Chicago headquarters. United expressed interest in launching the route as soon as summer of 2011, but its forecast shows the route losing money in the start-up phase. The Airport is requesting a Small Community Air Service Development Grant to ensure this route is launched in the next 12
months. 

## “As of the first quarter of 2010, Idaho Falls had the highest average fare in the Northwest region... it is li kely fares will
increase more with the loss of
Horizon service.”Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 9 PRIMARY OBJECTIVES OF PROPOSAL

Objectives for Program:

 Increase connectivity to the western US

 Create better opportunitie s for business connections

 Increase connections to international markets

 Increase the use of local air service

Means to Achieve Objectives:

 Continue discussion with United Airlines about additional markets

 Develop risk mitigation package

 Work towards launch of new route

Course of Action to Support Means:

 Make available revenue guarantee in first 24-months of new service

 Initiate marketing and ad vertising campaign to publicize new air service

 Work with local business partners to make sure new service is successfulIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 10 EXECUTIVE SUMMARY

The Idaho Falls Regional Airport has seen much success with its previous Small Community Air Service Development Grant, in support of United’s entrance into the market with non-stops to Denver. As of this fall, the service between Idaho Falls and Denver will increase to three daily flights in each direction, with an addition of 46% more available seats. As noted, this service has been profitable for United since its inception – and did not draw on any of the revenue guarantee money from Idaho Falls’ previous Gran t award. The funding was returned to the DOT
in 2008 for use in
another Grant to another airport.

The Idaho Falls Regional Airport
serves an isolated area, as the hub for
air travel in eastern Idaho. The Airport
is four and a half
hours from the
nearest true
alternate service –
at both Boise and Salt Lake City. Due
to its relative isolation, Idaho
Falls’ service can draw from a very large geographic area – farther than even the two hour catchment represented in the dark, solid line in Figure 1.
The 60-minute Idaho Falls catchment area is home to 231,741 people as of the latest US Census estimates, while the 120-minute catchment area is home to 3 40,073 people. This catchment area is the second largest in the State of Idaho. The Idaho Falls Regional Airport is classified as a non-hub. With the Airport serving such a large and isolated area, the service it provides is of utmost importance for the regional economy. 

### FIGURE 1: The Immediate and Extended Idaho Falls Regional Airport Catchment Areas; Source: Sixel Consulting Group AnalysisIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 11 Despite the relative size of the Idaho Falls ca tchment area, the Airport has much less service than other Northwest markets that are home to almost 350,000 people. As of September 2010, the Idaho Falls Regional Airport will have service to just two network airline hubs – Denver and Salt Lake City (see Figure 2).

Horizon Air has left the market as of August 21, 2010, endi ng its last route – the non-stop to Boise. Horizon had served the route profitably for almost two decades, when it had smaller aircraft as its disposal and could offer three to four frequenc ies to Boise per day. This business travel schedule was lost when Horizon retired its 48-seat Dash 8-200 aircraft and replaced them with 74-
seat Q400 aircraft. As soon as the route fell be low three frequencies, and it was impossible to do a day trip between Boise and Idaho Falls, enplanemen ts began to fall. This led to the eventually that, without the right kind of aircraft, Horizon could not support the intrastate route. Non-Stop Departures Seats Departures Seats Capacity Carrier Destination Per Day Per Day Per Day Per Day Change
Alaska/Horizon BOI 1.7 128 0 0 -100.0%
Alaska/Horizon Total 1.7 128 0 0 -100.0%

Delta SLC 4.8 242 5.7 283 16.9%
Delta Total 4.8 242 5.7 283 16.9% Allegiant LAS 0.3 45 0.3 45 0.0% LAX 0 0 0.3 45 100.0% Allegiant Total 0.3 45 0.6 90 100.0%

United DEN 2 98 2.9 143 45.9%
United Total 2 98 2.9 143 45.9%
Idaho Falls Total 8.8 513 9.2 516 0.6% Sep-09 Sep-10 

### FIGURE 2: Idaho Falls Regional Airport Service Profile September 2009 vs. September 2010; Source: Airline SchedulesIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 12 In all, the Idaho Falls market will have lost an average of 90 network carrier departing seats per day between September of 2009 and September of 2010 (see Figure 2). This network carrier seat loss is somewhat mitigated by the addition of Allegiant Air service between Idaho Falls and Los Angeles/Long Beach – but it should be noted Al legiant doesn’t offer the same kind of network connectivity that Horizon offered through Boise. These Allegiant seats are more than welcome in the market, but they don’t replace the loss of Horizon. The Airport must recruit additional westbound service to fill the gap left by Horizon.

As seats have been pulled out of the Idaho Fa lls market, it has seen a decline in overall passengers since the year ended first quarter 20 08. The year ended first quarter was a record setter in Idaho Falls, with 418 passengers per day each way (see Figure 3). Since then, as Idaho Falls has lost available seats, and as fares have continued climbing, Idaho Falls passengers have dropped by an average of 69 per day each way, or 17%.

Rising fares have also had the e ffect of suppressing passengers in Idaho Falls. Since the year ended first quarter 2002, when the average one way fare was $166 each way, Idaho Falls fares 225,590 216,300 210,020 212,890 213,450 248,860 279,960 298,000

266,280 246,930 3,660 4,070 3,880 3,440 4,640 5,010 6,050 7,320

7,550

7,720 314.0 301.9 293.0 296.3 298.8 347.8 391.8 418.2

375.1

348.8

0 50,000 100,000 150,000 200,000 250,000 300,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW International Domestic

$176
$166 $172 $178 $187 $197 $216 $221 $225
$215 

### FIGURE 3: O&D Passengers and Average Fares at Idaho Falls Regional Airport YE1Q01

– YE1Q10; Source: US DOT Table DB1AIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 13 have risen to $215 each way – an increase of 30% (see Figure 3). As of the first quarter of 2010, Idaho Falls average one way fare had risen to $223, ranking it as the highest in the Northwest region, as defined by the FAA, of airports with catchment areas of 300,000 or more residents (see Figure 4).

While the average one way fare in the first quarter of 2010 in Idaho Falls was $223, just across the State, in Boise, the average fare was $151 each way for the same period - 47% cheaper on average (see Figure 4). In fact, the average first quarter fare in Idaho Falls was 21% higher than the next closest market – Pasco/Tri-Cities, Washington, which had an average fare of $184 each way in the same period.

Due to Idaho Falls relative isolation – more than four hours away from an alternate airport – the region’s travelers have no choice but to pay the higher than average fares. This exacerbates the already difficult travel situation, and suppr esses demand. The fare challenges will likely continue, as the Airport loses a carrier – Horizon – in August 2010, and all westbound connecting
service.

In order to bring additional seat s into the market, and to bring fares in line with those found at other markets in the Pacific Northwest, it is impe rative the Idaho Falls Regi onal Airport offer risk mitigation to encourage United/United Express to add westbound service through San Francisco. While the Airport has mined very specific data, showing the route will be successful, United will require some insurance to ensure it doesn’t lose money.

With Idaho Falls’ track record of success in the SCASD Grant program, it should be at the top of the list for a second Grant opportunity. Much like the situation in 2005, when Idaho Falls won its previous, successful Grant, the market is unde rserved and suppressed by high fares, and a general lack of adeq uate connectivity. $223
$184
$180
$172
$165
$164
$160
$151
$146
$61

$0 $50 $100 $150 $200 Idaho Falls, ID

Pasco, WA Billings, MT
Eugene, OR
Seattle/Tacoma, WA
Portland, OR
Medford, OR
Boise, ID
Spokane, WA
Seattle Boeing Field, WA Northwest Average: $171 

### FIGURE 4: Average Fares in Northwest Markets of 300,000+ First Quarter 2010; Source: US DOT Table DB1AIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 14 DETAILED EXPLANATION OF PROPOSAL

The Idaho Falls Regional Airport proposes to us e a combination of locally raised funding in conjunction with federal Small Community Air Service Development Grant funding in support of the addition of a new westbound hub. In the Airp ort’s discussions with United Airlines and United Express, most recently at an in-person meeting in July of 2010, the Airline indicated an interest in flying a Canadair Regional Jet CRJ200 between Idaho Falls and San Francisco (see Figure 5).
The Airline did indicate it would need some type of risk mitigation to enter the market.

A westbound service is essential in Idaho Falls after the loss of the region’s only westbound service in August of 2010: Horizon’s service
between Idaho Falls and Boise. The loss of this flight left the market with no easy westbound
access. All westbound connections must now
be made with a “backtrack” connection over Salt Lake City or Denver.

The Idaho Falls Regional Airport seeks a Small Community Air Service Development Grant, in the amount of $500,000, to help mitigate United’s initial monetary risk in serving the Idaho Falls – San Francisco route. The Airport proposes one daily flight on the route in each direction. The route between Idaho Falls and San Francisco
would cover 677 miles in a flight time of one hour and 30 minutes, on averag e, assuming an average groundspeed of 425 knots on a CRJ200 ai rcraft seating 50 in an all-economy layout (see Figure 6).

Origin Destination Departs A rrives Block Time Equipment
IDA SFO 6:36am 7:30am 1:54 CRJ SFO IDA 7:15pm 10:09pm 1:54 CRJ 

### FIGURE 6: Proposed Schedule, Idaho Falls

– San Francisco FIGURE 5: Proposed Route, Idaho Falls

– San FranciscoIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 15 The proposed schedule is design ed for ease of network integration into the San Francisco hub, ideal business connectivity to west coast destinatio ns for Idaho Falls business travelers – allowing for same day business trips to most destinations in California, Nevada, Arizona, and Oregon, and to avoid San Francisco’s peak hub timing at midday so as not to add to the congestion of that Airport (see Figure 6). The aircraft would overnigh t at Idaho Falls, departing early enough to hit the first departing bank of the morning at SFO on United, and re turning in mid-evening, during the second-to-last United bank of the night at SFO. To achieve the best possible Asian connections, a second daily frequency would need to be added, although this patterns does connection to Tokyo, Hong Kong, Shanghai, Beijing, Seoul, and Osaka with long layovers.

The Idaho Falls Regional Airpor t 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. Of the total Grant request of $500,000, only $60,000 will be used for marketing and advertising projects. The federal share of the project will be $500,000, all of which will be used for the airline revenue guarantee.

The Idaho Falls Regional Airport projects that the bulk of the grant money be available to provide insurance in case United/United Express incurs a loss during the first year of operations.
With demand for westbound service in the Idah o Falls market, and the lack of any current westbound service as of the end of August 2010, the Airport projects the new flights will be profitable within one year.

If, for some unforeseen reason, service is not commenced in a timely manner by United, the Idaho Falls Regional Airport proposes to us e federal grant money awarded under the Small Community Air Service Development Program for additional westbound connectivity on another airline. Other options include service to Boise on a carrier to be determined, service to Phoenix on US Airways, service to Los Angeles on United, Horizon, or American Eagle, service to Portland on Horizon, and/or service to Se attle on Horizon or one of its pa rtner carriers. Should none of these options become workable, the Airport will continue its discussions with all other carriers than can provide additional seats to a hub not currently served. 

## “The proposed schedule is designed for... ideal business

connectivity to west coast
destinations for Idaho Falls
business travelers...”Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 16 EXPECTED RESULTS

Route Specific Data: Idaho Falls – San Francisco

Idaho Falls will be left without any westbound connecting service as of August 22, 2010, as Horizon leaves the market and pulls its Idaho Falls – Boise service. It is imperative that the Airport work quickly to replace westbound service, to provide the connectivity to the west coast that is necessary for the region’s major businesses.

The Idaho Falls Regional Airport proposes United/United Express launch non-stop service between
Idaho Falls and San Francisco with 50-seat regional jets. This service would provide Idaho Falls with its first ever non-stop flight to the San Francisco Bay Area, along with one-stop connections to 40 cities (see Figure 7).

The Idaho Falls market currently produces 108 unstimulated origin and destination passengers per day each way to destinations that naturally connect over the United Airlines/Star Alliance San Francisco hub. As of the year ended first quarter 2010, Idaho Falls produced 79,045 total origin and destination passengers that would flow ov er San Francisco on United (see Figure 8). 

### FIGURE 7: One

‐ Stop Connections Over SFO on United, YE1Q10; Source: Sixel Consulting Group Hub BuilderIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 17 In all, the Idaho Falls – San Francisco route has the potential to capture 26% of the current passengers flying in and out of Idaho Falls, it self, without taking into account any passenger leakage, which will be more significant when Idaho Falls loses all westbound service (see Figure 8).

At the same time, the United San Francisco hub could capture 29% of the current revenue generated in the market as of the year ended first quarter 2010 (see Figure 8). Currently, United/Star Alliance markets from Idaho Falls th at flow over the San Francisco hub generate almost $18 million in annual airline revenue, or $24,600 in revenue per day each way (RDEW) to
and from Idaho Falls as of the year ended first quarter 2010.

The United hub at San Francisco has potential to capture large portions of traffic in 40 of Idaho Falls’ largest origin and destination markets. Th e San Francisco hub is espe cially well positioned to capture traffic traveling to the west coast and to Asia – including large Idaho Falls markets such as the Los Angeles Basin, which produces 20.2 passengers per day each way (PDEW) to and from Idaho Falls as of the year ended first quarter 2010; the San Francisco Bay Area, itself, which produces 14.4 PDEW; Sacramento, which pr oduces 8.4 PDEW; San Diego, which produces PDEW; Honolulu, which produces 2.8 PDEW; and Re no, which produces 2.4 PDEW as of the year ended first quarter 2010 (see Figure 9 on next page). San Francisco

26%

Other Hubs 74% San Francisco

29%

Other Hubs 71%

Idaho Falls O&D Revenue $62,639,900 100% Revenue Flowing Over SFO $17,959,010 29% Idaho Falls O&D Passengers 304,998 100% Passengers Flowing Over SFO 79,045 26% 

### FIGURE 8: Available Passengers and Revenue Over SFO on United, YE1Q10; Source: Sixel Consulting Group Hub BuilderIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 18 It is likely United would stimulate the passenge r market significantly in Idaho Falls, with a projected stimulation rate in its market of, at least, 50%. This stimulation would be seen most on new one-stop markets to the west of Idaho Falls, that were not served by Horizon over Boise with one stop. This gives the Airport re ason to be optimistic that the service can be self-sustaining in as little as 12 months from the start of flights.

Should it launch service between Idaho Falls and San Francisco, United would be adding service
in markets that have current fares well above the Pacific Northwest regional average of $171 each way. The average one way fare to Idaho Falls markets that United would connect with one-stop service over San Francisco was $227 as of the year ended first quarter 2010 – which is 33% above the current regional average of $171 each way (see Figure 10 on next page). United service to San Francisco would provide much-n eeded competition for Idaho Falls catchment area residents traveling to the market’s top destinations in the west and overseas, where fares top the regional average, such as San Francisco, itself, where the average roundtrip fare was $360 as of the year ended first quarter 2010; Sacramento, where the average roundtrip fare was $358; San Diego, where the average roundtrip fa re was $364; Fresno, where the average fare 14,740 14,430 10,510 6,160 5,570 4,800 4,630 3,820 2,350 2,020 1,740 1,090
850
760
650
600
590
560
510
479 20.2
19.8
14.4
8.4
7.6
6.6
6.3
5.2
3.2
2.8
2.4
1.5
1.2
1.0
0.9
0.8
0.8
0.8
0.7
0.7

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Los Angeles Basin - 1 Washington/Baltimore - 2 San Francisco Bay Area - 3
New York/Newark - 4
Sacramento - 5

San Diego - 6
Orlando/Sanford Area - 7
Boston - 8 Philadelphia - 9

Honolulu - 10
Reno - 11
Cancun - 12

Fresno - 13
Kahului - 14
Kauai Island - 15 Palm Springs - 16
Santa Barbara - 17
Kona - 18
London Heathrow - 19
San Jose Del Cabo - 20 Annual Passengers PDEW 

### FIGURE 9: Top 20 O&D Passenger Markets Over SFO on United, YE1Q10; Source: Sixel Consulting Group Hub BuilderIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 19 was $462 roundtrip; Santa Barbara, where the average roundtrip fare was $386; and London Heathrow, where the average roundtrip fare was $988 as of the year ended first quarter 2010. The only real chance at fare reli ef in markets to the west of Idaho Falls is for an airline to offer new service to a new hub along the west coast.

The Airport believes there is sufficient passen ger traffic and revenue that would flow over United’s San Francisco hub to make the service pr ofitable. United would not be forced to offer rock-bottom fares in Idaho Falls to be competitive – even fares slightly higher than those found in
other western markets would be considered low for local Idaho Falls travelers. The Idaho Falls Regional Airport believes in th is new market, and must develop a risk mitigation package to ensure United can enter the market without the fear of an operating loss during the start-up phase of new service. $173 $303 $180 $227 $179 $182 $202 $223 $226 $282 $174 $241 $231 $306 $211 $145 $193 $131 $494 $231

$0 $50 $100 $150 $200 $250 $300 Los Angeles Basin - 1 Washington/Baltimore - 2 San Francisco Bay Area - 3 New York/Newark - 4
Sacramento - 5

San Diego - 6 Orlando/Sanford Area - 7
Boston - 8 Philadelphia - 9

Honolulu - 10
Reno - 11
Cancun - 12

Fresno - 13
Kahului - 14
Kauai Island - 15 Palm Springs - 16
Santa Barbara - 17
Kona - 18
London Heathrow - 19
San Jose Del Cabo - 20 Average Over SFO: $227

London Heathrow Not to Scale 

### FIGURE 10: Average One Way Fares at Top 20 O&D Passenger Markets Over SFO on United, YE1Q10; Source: Sixel Consulting Group Hub BuilderIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 20 LETTER OF SUPPORTIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 21 CURRENT AIR SERVICE IN IDAHO FALLS

As of the beginning of August of 2010, the Idah o Falls Regional Airport had service to three hub airports in the west, on regional affiliates of three major airlines. But on August 22, 2010, the Idaho Falls market will lose its only westbound connecting service, as Horizon Air leaves the market. As will be explained in this proposal , Horizon could not continue to operate the IDABoise route with the size of aircraft it now uses – the Q400 is just too big to offer sufficient frequency. The Airport must now work to a ttract an airline to offer a new westbound hub
service.

In September of 2010, Idaho Falls will have networ k service to Denver on United and Salt Lake City on Delta, with Allegiant Air low cost leisure service to Las Vegas and Los Angeles International (LAX). In the fall of 2010, Allegian t’s LA Basin service will shift from LAX to Long Beach. In all, Idaho Falls network seats will be down by almost 20% from September of 2009 to September of 2010.



### Current Passenger Traffic in the Idaho Falls Market

Since the summer of 2009, Idaho Falls has seen a steep reduction in the number of daily flights, the number of seats offered per day, and subseq uently, in the number of passengers able to
travel to and
from the Idaho Falls Regional Airport. During the
summer of 2008, airlines
offered an average of
almost 13 daily departures
from Idaho 660 742 723 736 738 714 740 758

717

554

498 738 724 729

603 603 602 598 608 608 670

564 597 658 687

645

509 515 503 525

470 467 468 509 505 550

488 482 484 474 458 510

465

288 274 478 501 498

424 424

377 405

355 355 372
337 399 450 484 456

382 375 360 371

329 340 343 366

0 100 200 300 400 500 600 700 800 900

Available SDEW Onboard PDEW Flights Per DEW 12.6 12.7 12.6 12.7 12.7 12.0 12.8 13.0

12.1

9.1

8.0 12.5 12.2 12.8

11.1 11.1 10.5 10.5 10.5 10.6 11.3

9.7 9.8 11.6 12.1 11.3

8.8 8.8 8.6 9.0

7.8 7.9 8.0 8.7 

### FIGURE 11: Flights, Seats, and Passengers Per Day Each Way, Idaho Falls Regional Airport, July 2007

– April 2010; Source: US DOT T100 DataIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 22 Falls (see Figure 11).

By the winter of 2010, the average number of daily departures had fallen to roughly eight – a drop of five daily departures or 39%.

In the summer of 2008, the average number of daily departing seats at the Idaho Falls Regional Airport was around 730 (see Figure 11). This number dropped to just 470 daily departing seats – including all airlines – by the winter of 2010 – a decrease of 260 seats per day each way or 36%.

The effect of the flight and seat reductions in the Idaho Falls market has been to suppresses overall onboard passengers. In the summer of 2008, the Idaho Falls market generated an average of 500 passengers per day each way (see Figure 11). By the winter of 2010 the average number of passengers per day each way had fallen by 30, to 470 passengers per day each way – a decline of 6%. It is interesting to note that, while the number of seats offered by Idaho Falls’ airlines fell by 36% between 2008 and 2010, the average number of passengers using the service provided at the Airport each day dropped by just 6%. Even as airlines cut service, and as fares go up, demand for service stays strong in Idaho Falls.

30,950 19,780 13,030 12,760 11,710 11,420 9,180 8,940 6,550 5,860 4,780 4,610 4,230 4,150 4,010 3,560 3,530 3,460 3,430 3,390 3,350 3,300 3,030 2,940 2,340 42.4 27.1 17.8 17.5 16.0 15.6 12.6 12.2 9.0 8.0 6.5 6.3 5.8 5.7 5.5 4.9 4.8 4.7 4.7 4.6 4.6 4.5 4.2 4.0 3.2

0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 Las Vegas

Seattle Washin g ton-Baltimore LA Basin Denver Portland Boise SF Bay Area Phoenix Atlanta Sacramento Spokane Anchora g e

Orlando San Diego Chicago Dallas/Ft.Worth

Albuquerque Boston Salt Lake City Minneapolis/St. Paul Houston Newark

Pasco Pittsbur g h Annual Passengers PDEW 

### FIGURE 12: Top 25 O&D Passenger Markets, YE1Q10 Idaho Falls Regional Airport; Source: US DOT Table DB1AIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 23 Idaho Falls has seen explosive growth in markets where new non-stop service has been initiated. Las Vegas now ranks as IDA’s top origin and destination passenger market, with an average of 42.4 passengers per day each way (PDEW) as of the year ended first qu arter 2010 (see Figure 12). At the same time, traffic is just now building to and from the LA Basin, which now averages17.5 passengers per day each way (PDEW). Each of these markets has been stimulated by nonstop service offered by Allegiant Air.

Of the top 25 passengers markets at Idaho Falls as of the year ended first quarter 2010, 14 would connect over United’s hub at San Francisco with one-stop. Large markets such as Las Vegas, Seattle, the LA Basin, Portland, the San Francisco Bay Area, Phoenix, and Sacramento would gain new competing service – to fly against Delt a’s current connecting service over the hub at Salt Lake City (see Figure 12). It is also likely the Bay Area, which currently generates 12.2 passengers per day each way (PDEW) to and from Idaho Falls as of the year ended first quarter 2010 will see significant new passenger stim ulation because of the non-stop service.

$63 $152 $314 $184 $187 $156 $95 $191 $196 $232 $185 $158 $227 $214 $193 $257 $226 $286

$235 $160 $246 $197 $213

$228 $299

$0 $50 $100 $150 $200 $250 $300 Las Vegas Seattle Washington-Baltimore LA Basin Denver Portland Boise SF Bay Area Phoenix Atlanta Sacramento Spokane Anchorage Orlando San Diego

Chica g o Dallas/Ft.Worth

Albuquerque Boston Salt Lake City Minneapolis/St. Paul Houston Newark

Pasco Pittsbur g h IDA Ex-Allegiant Domestic Average: $217 

### FIGURE 13: Average One Way Fares to Top 25 O&D Passenger Markets, YE1Q10 Idaho Falls Regional Airport; Source: US DOT Table DB1AIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 24 The non-Allegiant domestic average fare at Idah o Falls as of the year ended first quarter 2010 was $217 each way, or $434 roundtrip (see Figure 13). This is 27% higher than the Pacific Northwest regional average of $171 each way as of the year ended first quarter 2010.

The average fare to Las Vegas is Idaho Falls’ only one way fare below $90 each way – because it is dominated by Allegiant’s leisure pricing (see Figure 13). All of Idah o Falls’ business markets have fares in excess of $150 each way – with the exception of Boise, which had its service pulled as of August 22 of 2010.



### Air Carrier Market Share in Idaho Falls

Delta, with its non-stop service to Salt Lake City, has long been the passenger market share
leader in the Idaho Falls market. For the last four quarters, Delta’s market share has topped 46% of all Idaho Falls passengers in each quarter (see Fi gure 14). As recently as the third quarter of 2008, Horizon Air had almost 28% of all Idaho Falls pa ssengers. But it has left the market as of the end of August of 2010.

47.7%
45.3%

41.9% 42.4% 43.2% 41.4%

36.9% 44.3% 43.5% 46.9% 47.7% 46.8% 47.1%

18.1% 22.5% 22.1% 21.5%

18.6% 19.8%

18.7% 19.8%
17.2% 24.3% 22.8%

20.1% 20.9%

15.7% 16.1% 20.2%

20.7% 19.7% 21.4% 27.7%

17.1%

17.3% 15.5% 16.6%

17.5% 17.8%

10.0%
7.7% 7.4% 7.2% 10.7% 9.3% 8.0% 10.1% 14.7%

10.5% 9.6% 11.4% 12.1%

0% 10% 20% 30% 40% 50% 60%

2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 Delta United Horizon Allegiant 

### FIGURE 14: Passenger Market Share by Air Carrier, First Quarter 2007

– First Quarter 2010 Idaho Falls Regional Airport; Source: US DOT Table DB1AIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 25 United entered the Idaho Falls market in the second quarter of 2006. It has slowly been building market share – carrying 21% of Idaho Falls passenge rs as of the first quarter of 2010 (see Figure 14). But United is limited by its service pattern at IDA. With only one route, through the Denver hub, United offers only connections to the east of the market, while Delta can offer nearly omnidirectional connections through Salt Lake City. As Horizon leaves the market, Delta gains a virtual monopoly to markets west of Idaho Falls. The only way United will be able to compete in
these western markets is to add Idaho Falls – San Francisco service.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 26 AIR SERVICE DEFICIENCIES IN IDAHO FALLS

When evaluating the strengths and weaknesses of air service in a community, it is important to compare the subject community to strong corollari es in terms of both population and service profile. An interesting corollary for Idaho Fall s is Billings, Montana. Billings has a 60-mile catchment area population of 163,000 people, while Idaho Falls has a 60-mile catchment area population of 304,000 people (see Figure 15). Idaho Falls is 87% larger than Billings in terms of catchment area population.

Despite this, in the calendar year 2009,
airlines offered a total of 1.13 million available seats in and out of Billings (see Figure 15). During th e same year, airlines offered just 431,400 available seats in and
out of Idaho Falls – 62% fewer than the number offered in Billings. Billings had an average of 6.9 seats per capita in 2009, while Idaho Falls had just 2.7 seats per capita in the same year – illustrating just
how underserved Idaho Falls is.

While Idaho Falls offers a much bigger catchment than Billings, United offers much more service at Billings than it doesat Idaho Falls. At Billings, United flies nonstop to both Denver and Chicago O’Hare, with some flights on mainline jet aircraft. In Idaho Falls, United offers only regional jet
service to Denver. Between June of 2007 and April of 2010, United offered an average of 75% more available seats at Billings than it did at Idaho Falls, despite greater competition in Billings and fewer 

### BIL 60 Mile Population: 163,000 BIL 2009 Available Seats: 1.13 Million Population-to-Seat Ratio: 6.9 Seats Per Person



### IDA 60 Mile Population: 304,000 IDA 2009 Available Seats: 431,400 Population-to-Seat Ratio: 2.7 Seats Per Person



### FIGURE 15: Comparison of the Billings Catchment Area Versus the Idaho Falls Catchment AreaIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 27 people in the catchment area (see Figure 16).

In the first four months of 2010, United offered an average of almost 100 departing seats per day at Idaho Falls (see Figure 16). During the same four month period at Billings United offered an average of 360 departing seats per day - 72% more than the number of seats the Airline offered
at Idaho Falls.

The result is that Billings ’ United service boards more passengers than Idaho Falls’ United service. Between January and April of 2010, United ha s averaged 260 onboard departing passengers per day at Billings (see Figure 17). 496 505 524

443 440

379 412 410 402 403 412 407 487 500 491

418 400

334 357 353 354 345 356 430 585 580 591

431 410

343 382

353 360 358 383

155 148 150 143 150 144 136 140 144 136 143 140 170 166 166

138 138 134 128 131 136 137 137 124 146 144 146

98 99 98 102 92 98 97 100

0 100 200 300 400 500 600 700

BIL Available UA SDEW IDA Available UA SDEW UA Offers DEN and ORD at BIL, Including Some Mainline Service, Despite it Being 46% Smaller Than IDA 

### FIGURE 16: United

‐ Coded Available Seats Per Day Each Way (SDEW) J une 2007

– A p ril 2010; Source: US DOT T100 DataIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 28 During the same period of time in Idaho Fa lls United has averaged 79 onboard departing passengers per day - 70% fewer departing passengers than Billings (see Figure 17).

Billings generated an average of 1.44 United Airlines passengers per capita as of the year ended first quarter 2010. During the sa me period, Idaho Falls generated United Airlines 0.14 passengers per capita. This is a function not of less demand for travel in the Idaho Falls catchment area than in the Billings catchment area. It is a functi on of a lack of available seats in the Idaho Falls
area. It is within reason to assume Idaho Falls could support, at least, the level of United service that Billings supports. 396 398 403

327 322

284 313

258 292 299

273 325 370

348 359

301

279

232 280

224 231 260 266 302 411 425 432

363

323

266 305

241 266 272

251

126 118 121

101 95 91 90 79 93
76 72 79 93 101 92 82 82 72 82 68 61 60 71 75 97 106 105

84 82 79 80 71 78 77 80

0 50 100 150 200 250 300 350 400 450 500
BIL Onboard UA PDEW IDA Onboard UA PDEW



### FIGURE 17: United

‐ Coded Passengers Per Day Each Way (PDEW) J une 2007

– A p ril 2010; Source: US DOT T100 DataIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 29 EXTENUATING FACTORS AFFECTING AIR SERVICE

As has been noted in this proposal, Idaho Falls will be left without any westbound connecting service as of August 22, 2010, as Horizon leaves the market and pulls its Idaho Falls – Boise service. It is important to understand the extenuating circumstances surrounding this service cancellation, as it appears the service is not being pulled because of lack of demand. On the other hand, it appears service is being pulled due to Horizon’s lack of the right type of aircraft to make the service work well for intrastate travel. The Airport believes there is significant demand
for westbound service. It believes Horizon’s se rvice pattern made Boise the wrong hub for most
of Idaho Falls’ westbound travelers.

The local Idaho Falls – Boise market was served fo r the intra-Idaho business travel market. As such, it was essential to the service’s success for there to be options for travelers to leave either Boise or Idaho Falls in the morning, and then return home the same evening. When Idaho Falls – Boise service was operated by Horizon’s 48-seat Dash 8-200 aircraft, the airline could offer three daily flights in each direction, with morning departures and evening arrivals at each city, and fly just 144 seats per day in each direction.
When Horizon retired its entire Dash 8-200 fleet and replaced it with larger, 76-seat Q400 aircraft, it reduced the frequency on the route between Idaho Falls and Boise to just two departures per day. Despite the frequency reduction, Horizon offered 152 seats per day in each direction between the two cities. So, while flights had decreased by 33%, seats had increased by 6%. It was no longer possible to fly from Boise to Idaho Falls in the morning, meaning business travel ers decided to drive, instead of fly, so they could avoid an overnight. The Idaho Falls – Bois e market had lost its most lucrative travelers,
while Horizon added seats – a re cipe for the route’s failure.

An examination of the data on the Idaho Falls – Boise route for the period between June of 2007 and April of 2010 shows that, when three or more flights per day were offe red in each direction, the route performed at a 78% load factor (see Figure 18). But when flight frequency fell to just 

## “The Airport believes there is significant demand for westbound
service. It believes Horizon’s service pattern made Boise the wrong hub for most of Idaho Falls’
westbound travelers.”Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 30 one flight per day in each direction the route oper ated at less than a 35% load factor – speaking
to the business travel demand for sufficient frequency for day trips to be possible.

It is the Airport’s contention that the Idaho Falls – Boise route could still be profitable, with the right kind of high frequency servic e on smaller aircraft. It is al so the Airport’s contention that
Boise did not work well as a hub for westbound travelers.

Between June of 2007 and April of 2010, the Alas ka/Horizon focus city at Boise went from an average of 26.5 departures per day to an average of just 16.1 departures per day (see Figure 19). Boise lost more than 10 departures per day during that time period, or 39% of all of its Alaska/Horizon flights. At the same time, Alas ka/Horizon cuts its Boise available seats per day each way from 1,946 to just 1,205 – a loss of an average of 741 available seats per day each way, or 28% of all Alaska/Horizon seats. 111 120 149

136 146 148 147

136 145
137 139 136 143 151 148 143

102

75

64 74 71 79 76 70 71 73 91 129 130

122 130
123 128 131 132

85 87 97

70 79 88 87

78 86
79

62 60 80 99 94 113

54

29 28 29 25 27 27 24 30 42 45 64 58 57 73

56 58 59 61

0 20 40 60 80 100 120 140 160 180 200

Available SDEW Onboard PDEW Flights Per DEW 3.0 2.6
2.0 1.8 2.0 2.0 2.0 1.8 1.9 1.8 1.9 1.8 1.9 2.0 2.4 3.9

2.0

1.0 0.8 1.0 0.9 1.0 1.0 0.9 0.9 1.0 1.2 1.7 1.7 1.6 1.7 1.6 1.7 1.7 1.7 When Horizon Could Operate the Dash 8-200 With Higher Frequency the Idaho Falls – Boise Route Worked Much Better for Business Travelers 

### FIGURE 18: Flights, Seats, and Passengers Per Day Each Way Idaho Falls

– Boise, June 2007

– A p ril 2010; Source: US DOT T100 DataIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 31 With this seat loss, there was less and less servic e for Idaho Falls travelers on Horizon to connect to at Boise. This lack of connectivity undermined the Boise focus city as a connection point, and made it difficult for travelers from Idaho Falls to connect to cities in the San Francisco Bay Area, in the LA Basin, and in the Pacific Northwest.

The Airport contends a service to the west shou ld be provided to a better hub, with more connectivity, in order to be successful. It believes the United hub at San Francisco will offer local travelers much more value, through increased connectivity and a better service patterns than what has recently been offere d by Horizon through Boise. 1,814 1,867 1,946 1,886 1,968 1,883

1,772 1,769 1,843 1,824 1,791 1,713 1,769 1,857 1,790

1,477 1,424 1,343 1,326 1,391 1,386 1,385 1,386 1,340 1,423 1,419 1,428 1,418 1,386 1,324 1,322

1,176 1,190 1,203 1,205 1,498 1,474 1,515

1,300 1,313 1,377

1,230

1,125 1,269 1,276

1,148 1,163 1,337 1,386 1,350

1,127
1,034

940 955

851 934 964 907 942 1,097 1,134 1,095

991 947 932 972

814 855 879 860

0 500 1,000 1,500 2,000

Available SDEW Onboard PDEW Flights Per DEW 26.3 26.5 26.5 25.3 26.5 25.5 24.0 24.6 25.9 24.8 23.7 23.1 23.9 25.0 24.6

22.3

20.0

18.0 17.6 18.5 18.7 18.7 18.6 18.0 19.1 19.0 19.2 19.0 18.6 17.6 17.6

15.7 15.8 16.0 16.1 

### FIGURE 19: Flights, Seats, and Passengers Per Day Each Way At Boise on Alaska/Horizon, June 2007

– A p ril 2010; Source: US DOT T100 DataIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 32 AVAILABILITY OF ALTERNATE AIRPORTS

Idaho Falls, Idaho is served by the Idaho Falls Region al Airport, located directly off I-15. Due to its relative isolation, Idaho Falls’ service can draw from a very large geographic area – farther than even the two hour catchment represented in the dark, solid line.

• The 60-minute Idaho Falls catchment area is ho me to 231,741 people as of the latest US Census estimates, while the 120-minute catchment area is home to 340,073 people.

• The nearest competing airport with low cost service is Boise, which lies 278 miles away
from Idaho Falls – a drive of 4 hours and 23 minutes.



### FIGURE 20: Location of the Idaho Falls Regional AirportIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 33 USE OF LOCAL AND FEDERAL FUNDS

Marketing and Advertising

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



### Revenue Guarantee

The Idaho Falls Regional Airport proposes to make available at least $500,000 in funds for a revenue guarantee, to cover start-up losses that may occur during the first twelve months of service on the new route. Subject to negotiation, payments will be made to the airline operating the new route quarterly when income de rived from passengers an d 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.



### Additional Costs

As part of this program, the Idaho Falls Regional 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 the new airline to fly the new route. The Airport will not use DOT funding in these efforts.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 34 PUBLIC/PRIVATE PARTNERSHIPS

The City of Idaho Falls and the Idaho Falls Region al Airport consistently work together on air service development projects. Other local partners will be working with the Airport to promote and market the new service. The Airport will manage and coordinate the marketing program.

The Airport has also developed an air service development partnership program, reaching out to businesses and community leaders. Those partners are listed below, including their role in the
effort to retain current air service and recruit additional air service.



### City of Idaho Falls/Idaho Falls Regional Airport

The City of Idaho Falls owns and operates the Idaho Falls Regional Ai rport. As a public governing body, the City operates the Airport as a publically governed facility. The City supports the Airport in all air service development projects.



### GROW Idaho Falls Economic Development Council

GROW IDAHO FALLS, INC. is an investor-based organization dedicated to the development and growth of Idaho Falls, Ammon, and Bonnevil le County. GROW IDAHO FALLS, INC. plays an important role in the expansion of existing bu siness, job retention and the attraction of new business to our area. Originally called the Eastern Idaho Economic Development Council, GROW IDAHO FALLS, INC. has been in existence since 2000. The organization’s primary goal is to create good paying jobs with benefits fo r the people and families of our community. As such, it is a financial part ner in air service development.



### Idaho Falls Chamber of Commerce

The Greater Idaho Falls Chamber of Commerce is a voluntary organization of citizens who are investing their time and money in a community development program - working together to improve the economic, civic and cultural well-being of the area. Any citizen who is interested in helping to develop the area (which means more money, more business, more jobs, and better living for everyone) is eligible to be a member of the Ch amber of Commerce.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 35 The work of the Chamber is financed by the investment of the members who support it through annual dues as well as through fund raisers, grants and other donations.

The Chamber of Commerce is composed of Committee Workers, Directors, and Officers who serve without pay. A Chamber Executive and staff devote their full time to the Chamber of Commerce as the only paid employees.

The Chamber of Commerce is a service institutio n and an action organization. It provides a medium through which people can take effective action for the progress of the community. It helps create job opportunities through stimulation of industrial and commer cial growth. It seeks the improvement of community facilities; streets, highways, parks, schools, marketing facilities, and human resources. It brings conventions, sales meetings and other gatherings to the city. It works toward developing the agriculture industry of the area. In all of these functions the Chamber of Commerce is serving as a department - a partner - of every business and every professional person in the area.



### Idaho National Laboratories (INL)

In operation since 1949, INL is a science-base d, applied engineering national laboratory dedicated to supporting the U.S. Department of Energy's missions in nuclear and energy research, science, and national defense. The INL ensures the nation's energy security with safe, competitive, and sustainable energy systems and unique national and homeland security capabilities. By 2015, INL will be the pre-eminent nuclear energy laboratory with synergistic, world-class, multi-program capabilities and partnerships.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 36 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in De cember 2010. Once the award is announced, the Idaho Falls Regional Airp ort will conduct an additional airline meeting to secure SkyWest/United Express service that is mutually beneficial. Based on airline planning lead times and the need for advance bookings, we assume th e service would not be able to begin service until at least August of 2011.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with United Express and/or SkyWest to negotiate for service, and sign the minimum revenue guarantee agreement with the appropriate airline partner. 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 wo rk 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 addition al risk mitigation, beyond that included in this proposal, from the community.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010 Executive Grant Agreement with DOT January 2011 Meet With Prospective Airlines February 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline March 2011 Announce Service May 2011 Publish Schedule May 2011 Begin Marketing of New Route June 2011 Monitor Advance Bookings May - August 2011 Service Launch August 2011 MRG Available for Service August 2011- March 2014 Monitor Route Performance August 2011 - March 2014 Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q1 2014 Close Grant April 2014Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 37 AIR SERVICE ADVISORY GROUPS

The Idaho Falls Regional Airport works closely with the Idaho Falls Chamber of Commerce, the GROW Idaho Falls Economic Development Council, Idaho National Laboratories, and the City of Idaho Falls to support and promote local air service and local service clubs.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 38 LOCAL AIR SERVICE DEVELOPMENT EFFORTS

The Idaho Falls Regional Airport has worked tirelessly to ensure the community has the best possible air service. As the center for worldwide nuclear energy research at the Idaho National Laboratory, it has been essentia l that the community has effective access to worldwide markets on a daily basis. The Airport has undertaken se veral major efforts to en sure this access grows and prospers.

The focus of air
service development
with network
carriers over the last five years has
been the
addition of United/United Express to the market to fly
between Idaho
Falls and the
Denver hub. This service launched in 2006, with the help of a Small Community Air Service Development Grant revenue guarantee. While the revenue guarantee made the service possible, as United would not have taken the risk in launching service to Id aho Falls without it, at no point did United ever pull funding from the guarantee. The route was immediately profitable, with the margin peaking in third quarter of 2007, when revenues topped stated expenses by $1.06 million – a margin of 53% (see Figure 21).

That Grant expired after the second quarter of 2008, and the full revenu e guarantee amount of $450,000 was returned to the Department of Transportation for use in launching service at another airport. Many in the indu stry still refer to this Grant as the most successful ever under the SCASD Grant program – and an exampl e of how the Program should work. $357,930 $1,372,065 $1,300,479 $1,232,870 $2,040,201 $2,012,362 $2,056,109 $1,976,569 $2,087,925

$434,218 $2,001,670

$1,758,002 $1,605,587 $2,804,143 $3,072,201

$2,601,796

$2,365,143 $2,430,650

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000

2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 UA Revenue Target UA Actual Revenue 

### FIGURE 21: United’s Actual Revenue vs. Target Revenue, IDA

‐ DEN Second Quarter 2006

– Second Quarter 2008; Source: United Airlines DOT FilingIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 39 United’s cumulative profit on the Idaho Falls – Denver service topped $4.6 million by the end of the second quarter 2008 (see Figure 22). While United’s profit on the route grew, it also drove up its average segment fare from $120 each way to $168 each way – an indication of the robust demand for seats. Today, the service operates with three daily frequencies in each direction, without any community financial support or incentives.

Additionally, the Airport has
seen success in working with
low cost carrier Allegiant Air. Allegiant flies
to both Las Vegas and the Los Angeles
basin from
Idaho Falls.
While this
service has notprovided wideranging connectivity, it has brought lower fares to the community, and more leisure/vacation options. The Airport continues to work with A llegiant on other potential route opportunities. $76,288 $705,893 $1,163,416 $1,536,132 $2,300,074 $3,359,913 $3,905,600 $4,294,174 $4,636,899

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

2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 UA Avera g e Se g ment Fare UA Cumulative Profit2 $120 $143 $147

$139 $149 $158 $157 $162 $168 

### FIGURE 22: United’s Cumulative Revenue and Segment Fare, IDA

‐ DEN Second Quarter 2006

– Second Quarter 2008; Source: United Airlines DOT FilingIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 40 IN-KIND SERVICES FROM COMMUNITY

The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services.

 Idaho Falls Regional Airport

 Idaho Falls Chambe r of Commerce

 GROW Idaho Falls Economic Development Council

 Idaho National Laboratories

 City of Idaho FallsIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 41 PERFORMANCE MEASURES

The success of new service in Idaho Falls will be based on three measurable variables: the increase in available seats in the market, the number of enplanements on the route, and the average airfares charged in the affected city pairs. The first two measurements will include a monthly comparison once the program begins to past numbers. The second measurement will be derived from US DOT OD1A reports.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 42 LEGAL SPONSOR

The Idaho Falls Regional Airport is the legal sponsor responsible for administering the program. The Idaho Falls Regional Airport is a government entity.

Idaho Falls Regional Airport 2140 North Skyline Drive Idaho Falls, Idaho 83405 Len Nelson, Director of Aviation 208.612.8221 LNelson@ci.idaho-falls.id.usIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 43 FINANCIAL CONTROLS

As the sponsor, the Idaho Falls Regional Airport wi ll 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 gran t will be used in accordance with any subsequent agreement. As a previous recipient, the Idaho Falls Regional 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 to tal grant request.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 44 RETURN ON INVESTMENT

The Idaho Falls Regional Airport has developed a cost effective and achievable strategy to increase enplanements at the airport. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be co mfortable with choosing this proposal. The increased competition and access to increased competition with airfares by adding service is a major goal of the Small Community Ai r Service Development Program.

As a previous Grant recipient, with an enviable track record as a steward of Department of Transportation funding under the Program, the Department can be comfortable that the Airport understands the goals and limitations of this Grant award.

Approximately $60,000 of the $560,000 in cash is committed to being spent as the marketing share of the project. The remaining $500,000 in cash will be available for the revenue guarantee portion of the project. Should the revenue guarantee be unused, or unneeded for the new airline, it will be returned to the DOT in the same way as Idaho Falls’ previous Grant award.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 45 DOT EXIT STRATEGY

The Airport has developed this proposal as a on e-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 new route will be financially self-sustaining within the second twelve months of service.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 46 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by United, the Idaho Falls Regional Airport proposes to us e federal grant money awarded under the Small Community Air Service Development Program for additional westbound connectivity on another airline. Other options include service to Boise on a carrier to be determined, service to Phoenix on US Airways, service to Los Angeles on United, Horizon, or American Eagle, service to Portland on Horizon, and/or service to Se attle on Horizon or one of its pa rtner carriers. Should none of these options become workable, the Airport will continue its discussions with all other carriers than can provide additional seats to a hub not currently served.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 47 AIRPORT INFORMATION

Idaho Falls Regional Airport, fo rmerly known as Fanning Field, is a primary commercial service airport located in eastern Idaho, approximately one mile northwest of downtown Idaho Falls. The airport is owned and operated by the City of Idaho Falls under the authority of the Director
of Aviation.

Idaho Falls Regional Airport is located at an elevation of 4,744 feet Mean Sea Level (MSL). The airport has two paved runways. Runway 2/20 is 9,001 feet by 150 feet and Runway 17/35 is 4,051 feet by 75 feet. The airport
encompasses approximately
980 acres of
land.

The airport currently serves four airlines including United , Delta, Horizon and Allegiant as well as a mix of general aviation users ranging from light si ngle-engine piston aircraft to multi-engine jets.

The airport has a 48,100 square foot terminal building. In 2001 the terminal building was remodeled to meet the requirements of TSA. Th e terminal building provides approximately 1,290 square feet of ticket counter spac e. The security screening area currently utilizes approximately 1,820 square feet of space. The sterile passenger waiting area is approximately 12,200 square feet, while the non-sterile waiting area is approximately 8,040 square feet. The terminal building has two jet-bridges to provide access to airc raft and one ground loading access gate. The airport also has a gift shop which, a restaurant and several rental car companies. The baggage claim area occupies approximately 5,290 square feet. The existing baggage screening is conducted within the lobby area in front of the airline ticket counters. 

### Exterior of the Idaho Falls Regional AirportIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 48 COMMUNITY PROFILE

The City of Idaho Falls

Idaho Falls is located at an elevation of approximately 4,744 feet along the Snake River on the western side of the Rocky Mountains. The area offers world-class fishing, golfing, hiking and camping with its proximity to Yellowstone Nation al Park, Grand Teton National Park, Craters of
the Moon National Park and the Caribou National Forest. Idaho Falls serves as the regional center for healthcare, shopping and entertainment for the entire area. The region has continuously attracted businesses small and large with its high quality of life and opportunity for continuous growth.

With a population of 52,716 and a median age of 33.1 years, this young and vibrant city enjoys a cost of living that is 5% less than the national average. The median family income in Idaho Falls is among the highest in the nation at $59,850 – moreover that income translated to the purchasing power of more than $69,400 due to the low cost of living. In addition, Idaho Falls residents spend an average of $7,300 on vacation each year – higher than the Idaho average of $6,500.

Offering its own symphony, opera, chamber or chestra, community drama, performing arts groups, museums, zoos, and of co urse professional minor league baseball, there are many things to do. Centrally located in the heart of some of the world’s best known recreation areas, Idaho Falls has positioned itself as the gateway to year-round adventures and activities. 

### Downtown Idaho FallsIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 49 What’s New in Idaho Falls

AREVA Selects Bonneville County, Idaho, for its Uranium Enrichment Facility

In 2009, AREVA Inc. announced that it had selected the state of Idaho for its new U.S. uranium enrichment facility. The site is located in Bonneville County, 18 miles west of Idaho Falls, close to the Idaho National Lab. The selection was made after an extensive technical, environmental,
and socio-economical anal ysis of several potential sites thro ughout the United States. With its decision, AREVA will move forward to seek all ne cessary approvals from federal, state and local agencies, including a license from the Nuclear Regulatory Commission to construct and operate the facility.

Source: AREVA and Grow Idaho Falls, 2009

Idaho Falls listed #3 on Towns to Watch in the West

This town is fast becoming a desirable destination due to an influx of downtown restoration. The Idaho Falls Downtown group is aiming to preserve the architectural styles of buildings from the early 1900s, “which is the heart and soul” of the community. These buildings are further stabilized by lava rock walls and refurbished century-year-o ld windows. The National Park Service’s close watch on the project guarantees a future that will provide impressive nostalgia. With 26 buildings on the historic register, Idaho Falls is anxious to add more.

Source: True West Magazine, 2009

Eastern Idaho Technology Corridor

Much of the new investment in the area is fo cused on the Eastern Idaho Technology Corridor (ITC). With Idaho Falls at its heart, it flanks Interstate 15 from Pocatello to Rexburg. The Eastern Idaho Technology Corridor constitu tes a unique collection of assets providing a rich environment for technology-based companies. Because of the ITC, Eastern Idaho is gaining national recognition as home to a growing number of companies whose products and services are based on the development or application of tec hnology in a wide array of industries ranging from the improvement of agri cultural practices to software and systems development.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 50 Tourism in the Idaho Falls Area

Activities and attractions for everyone abound in and around Idaho Falls. With museums, art galleries and outdoor activities right in the city it self, Idaho Falls attracts many visitors in its own right. Additionally, Idaho Falls is located just hours from Grand Targhee and Sun Valley ski resorts, Henry’s Lake, Craters of the Moon, the Sawtooths, Island Park, Jackson Hole, and several
national forests. There are six counties maki ng up the Yellowstone Teton Territory, and that translates into a variety of outdoor activities from boating on Ririe Reservoir and Palisades Reservoir to hiking, ATVing and snowmobiling in the Caribou Range to fishing in the famed South
Fork of the Snake
River to scenic
mountain drives to hunting to camping—the list is practically endless.
And it is all within a
few hours of Idaho
Falls.

More than eight
million annual visitors
are drawn to the
attractions surrounding Idaho Falls, Including
Yellowstone and
Grand Teton Parks.
Idaho Falls serves as
the western gateway to both
Grand Teton National Park and Yellowstone National Park. The entrance to Yellowstone is just 107 miles, by car, from the Idaho Falls Regional Airport – a driv e of an hour and 50 minutes. The entrance to Grand Teton National Park is just 90 miles from th e Airport – a drive of just over two hours (slower than average due to mountainous terrain). 

### Proximity of Grand Teton and Yellowstone National ParksIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 51 Yellowstone National Park

People have been visiting and living in the Yello wstone area for thousands of years. In the mid 1800s, explorers and artists brought Yellowston e’s wonders to the attention of the federal government. The park was established in 1872. Visit Mammoth Hot Springs to walk the self-guiding trail around Fort Yellowstone, which chronicles the U.S. Army’s role in protecting the park. Other historic sites include the Norris Geyser Basin Museum, Obsidian Cliff, and the Old Faithful Inn and Historic
District.

Geysers, hot springs, mudpots, and fumaroles are evidence of ongoing volcanic activity. To see them, visit Mammoth Hot Springs, Norris Geyser Basin, Fountain Paint Pot & Firehole La ke Drive, Midway Geyser Basin, the Old Faithful area, West Thumb Geyser Basin, and Mud Volcano. 

### FIGURE 23: Visits Per Month to Grand Teton and Yellowstone National Parks, 2009

Yellowstone National ParkIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 52 Yellowstone Lake is North America’s largest high-altitude lake. The area is prime habitat for many birds and mammals. Visitors can also enjoy boat ing, fishing, hiking, and viewing hydrothermal features, as well as an abundance of wildlife unparalleled in the lower 48 states. All the large mammals present when Yellowstone became a park are here today: grizzly and black bears, wolves, mountain lions, elk and bison.

Grand Teton National Park

Located in northwestern Wyoming, Grand Te ton National Park preserves a spectacular landscape rich with majestic mountains, pristi ne lakes and extraordinary wildlife. The abrupt vertical rise of the jagged Teton Range contrasts with the horizontal sage-covered valley and glacial lakes at their base , creating world-renowned.

Mountain climbing, hiking and backpacking, skiing, snowshoeing, camping, fishing, wildlife and bird watching, horseback riding, boating on Jackson and Jenny Lakes, rafting on the Snake River, bicycling, photography and more await visitors to the park.

Grand Teton National Park is home to over 80 species of animals, 300+ species of birds and numerous invertebrates. Seven species of coniferous tr ees and over 900 species of flowering plants can also be found in the park. Human history includes the activities of Paleo-Indian, American Indians, fur trappers, homesteaders, ranchers and farmers, conservationists and recreationists. 

### Grand Teton National ParkIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 53 The Arts Scene

From exotic exhibits and marquee performances to historic tours, local festivals and functional sidewalk sculptures, Idaho Falls has a rich trad ition of celebrating the arts. Thanks to evergrowing interest and generous do nations, the Idaho Falls Arts Council and its many partners have made this small city a big-time draw for visito rs of all cultural persuasions. Visitors to Idaho Falls enjoy the City’s incredible offering of arts and cultural
events.
Flourishing facilities include Willard Arts Center/colonial Theater, The Museum of Idaho, The Art Museum of Eastern Idaho, Actors repertory Theatr e of Idaho and the Idaho Falls Public Library.

Founded in 1949, the Idaho Falls Symphony is a flagship of cultural life in eastern Idaho. The orchestra today consists of approximately 100 musicians. Since its inception 25 years ago, Actors Repertory Theatre of Idaho (ARTI) has offered a yearly slate of plays ranging from established classics to cutting-edge comedy and drama from contempo rary playwrights.

Fun in the Sun and the Water

East Idaho has bucket loads of pristine waters for quiet reflection, but the real gems of the area’s aquatic recreation are found on whitewater stretches of the upper Snake River above Palisades Reservoir and the famous wild and scenic Salmon River to the northwest. By kayak, raft or drift boat, either fork of the Upper Snake should be in prime shape for ca sual floaters by midsummer. Novices should definitely consider guided trips, while more seasoned boaters should be able to find easy access for put-in and take-out. Favorite stretches include the canyon stretch of the South Fork starting at the launch point in Swan Valley, the Henry’s Fork between Warm River and Ashton and the famous Box Canyon stretch below Island Park Dam. Gem Lake is right in town, Ririe Reservoir is just up the road and you can easily make a day trip out
of Palisades Reservoir to the east and Island Park Reservoir to the north. Grab a ski or board and give 

### Idaho Falls Arts

Snake Rive rIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 54 it a go!

Few family angling opportunities in the Snake River Valley can top a simple one- or two-hour outing to the river in Idaho Falls. The river is highly accessible, most notably around the Greenbelt, but also upstream at Freeman Park and downstream at Gem Lake. Fish in the river include brown, rainbow and the occasional cutthroat trout.

Tautphaus Park Zoo

Watch the flock of threatened African Penguins, experience a wallaby mob on the move, discover the gibbons aerobatic ab ilities or surround yourself wi th sights and sounds of South American birds in the walk-through aviary. Stop by the Children's Zoo and pat a donkey, feed a lamb or just relax on a bench and enjoy the beau tifully landscaped grounds. Over 400 animals, the largest collection in Idaho, call Tautphaus Park Zoo home.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 55 Idaho Falls Economic Overview

While many cities across the country have been hard hit by the economy, Idaho Falls is a standout in positive growth and economy. It is the fastest growing medium-sized city in one of the fastest growing regions in the US – the Pacific Northwest (see Figure 24). In the last year, the Idaho Falls economy has added 600 new full-time jobs – the fifth best job growth in the Pacific Northwest (see Figure 24). Idaho Falls also has the second lowest unemployment of all 25 Metro Areas in the Northwest – 1.2 Points below the regional average.

Idaho Falls is the national center for nuclear and high-tech energy – home to more than 4,000 engineers working for various companies at the Id aho National Laboratory, which is operated by the Department of Energy. Idaho Fa lls is uniquely positioned as the home to groundbreaking future research, and as such, the Inland
Northwest Research Alliance chose th e City as its home. Idaho Falls has continually posted strong econ omic growth in the last decade, despite the lagging economy in other parts of the country, with total job growth of 11.6% between 2000 and 2008. The Idaho Falls workforce is highly educated, with 63% of residents having completed some college.

Idaho Falls has become a regional business hub. It hosts the headquarters of the United Potato Growers of Idaho and District 7 of the Idaho Department of Heal th and Welfare. It is also the
home to several small to medium sized national corporations such as Melaleuca, Inc and Press-A-Print International.

Idaho Falls serves as a regional hub for health care, travel and
business in southeast Idaho. Also thriving in Idaho Falls is a growing retail, entertainment, and restaura nt sector, a regional medical center, and added funding for small businesses. In May 2006, Inc. magazine ranked Idaho Falls eighth on its list of "Hottest Small Cities" in the U.S. based on the region's job growth rate ov er the prior 10 years. Idaho
Falls

was also listed #2 on MSN Real Estate's list of top ten best smaller cities in America, in terms of job prospects, quality of life and cost of living.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 56 Firm # of Employees Battelle Energy Alliance 3,800
CH2M Hill 1,700
Idaho Falls School Districts 1,700 Eastern Idaho Regional Medical Center 1,300 Malaleuca, Inc. 1,300
Bechtel BWXT 960
Bonneville Joint School District 850 City of Idaho Falls 750
Center Partners 600 Bonneville County 450 Albertsons, Inc. 350 

### FIGURE 24: Cumulative Population Growth in Select Pacific Northwest MSAs

FIGURE 25: Top Employers in the Idaho Falls MSAIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 57 Select Company Profiles

Battelle Energy Alliance’s Idaho National Laboratory

Battelle is an international science and technology enterprise that explores emerging areas of science, develops and commercializes technology, and manages laboratories for customers. Battelle supports community and education programs to promote an enhanced quality of life for our community neighbors. Areas of focus include energy, health & life sciences, national security, laboratory management and education. Battelle employees logged more than 13,000 trips from Idaho Falls to more than 35
national and international de stinations in 2009 alone!

CH2M Hill

In business for 60 years, CH2M HILL has delivered innovative and practical technology solutions on a wide range of water, envi ronmental, transportation, nuclear, manufacturing, power and energy, pharmaceutical, communications, chemicals, electronics, and biotechnology projects. With over 17,000 employees in nearly 125 offices across the US and more than 25,000 employees worldwide in 54 offices, as well as US$5.8 billion in revenue, travel in and out of Idaho Falls would greatly benefit CH2M Hill.

Eastern Idaho Regional Medical Center

The largest medical facility in the region, EIRMC employs 1,300 staff and serves as the area's healthcare hub. Whether coming from Jackson, Yellowstone, or right here in Idaho Fa lls, patients at EIRMC are greeted by the best Medical Staff in the region. EIRMC is the only Level I Critical Care Center in Southeast Idaho. People who need specialty se rvices such as open-heart surgery, cancer treatment, stroke intervention, neurosurgery, high-risk pregnancy/newborn care, hyperbaric medicine, and Behavior Health Services come to EIRMC from around the region.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 58 Melaleuca, Inc.

Headquartered in Idaho Falls with a worldwide distribution, Melaleuca develops, manufactures and sells over 350 of the world's leading wellness products for home and family. While in itially based predominantly on melaleuca plant extracts, the product line has since expanded beyo nd this initial focus. Melaleuca sells products including environmentally friendly household cleaners, personal care items, pharmaceuticals and nutritional supplements. The company markets itself as being earth-friendly, and many of their products are certified organic and Kosher certified.

Bechtel BWXT

Bechtel is managing operations at the U.S. Department of Energy’s Advanced Mixed Waste Treatment project in Idaho Falls, Idaho. It is DOE’s most advanced waste treatment facility, where transuranic waste is safely treated and packaged for shipment and final disposal. Bechtel National is the lead partner in Bechtel BWXT Idaho, LLC, which operates the project, located at DOE’s Idaho National Laboratory.

Center Partners
Headquartered in the West (Fort Collins, CO), Center Partners has three offices in Idaho, including Idaho Falls, the company provides contact center services for inbound, outbound communications using the Internet, on the phone, and in person. The company offers expertise creating, implementing, and mana ging multichannel programs covering sales and acquisition, customer care, and technical support for client s in such industries as telecommunications, utilities, health care, financial se rvices, high technology, and insuranc e. It is a unit of WPP Group, one of the world's larges t media conglomerates.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 59 Higher Education

Higher education opportunities abound in Idaho Falls! The Center for Higher Education at University Place in Idaho Falls is a many face ted education opportunity offering certificates through advanced degrees. The Center is a collaborative effort between Idaho State University (ISU) and the University of Idaho, created for the benefit of local residents. Through a partnership between the two universities, students register for classes, pay fees, and receive financial aid under a joint system.

Situated along the scenic Snake River in the northwestern part of town, University Place is an excellent, accessible, and affordable option fo r students who choose to stay close to home. Offerings include undergraduate and graduate degrees, remedial courses, general education requirements, and professional development deliv ered on-site and via distance learning. More than 3,000 Idaho State University and University of Idaho students attend each semester. Students currently being served by the center include high school, place-bound non-traditional, Idaho National Laboratory employ ees, BYU-I transfers, graduate and professional development students. Over 500 course sections are taught throughout the day and evening. Ten
telecommunication classrooms connec t Idaho Falls with Twin Falls, Boise, Pocatello and Moscow for over 200 hours per week of distance learning opportunities. The two universities offer over 50 degrees. Associate, bachelor, masters, specialis t, and doctoral degrees may all be completed through University of Idaho or Idaho State Univ ersity at University Place in Idaho Falls.Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 60 COMPARISON TO OTHER CO MMUNITIES IN REGION

FIGURE 2 6 : Top 60 Northwest Region Airports, Domestic O&D Passengers, Ranked by First Quarter 2010

OTH

Airport

1 Seattle/Tacoma, WA 2,612,600 2,931,710 2,309,960 2,039,350 22,410 -1.2% 39.2% 10,174,870 9,893,620 27,106 -2.8% 2 Portland, OR 1,305,520 1,444,290 1,235,230 1,072,280 11,783 0.2% 20.6% 5,283,640 5,057,320 13,856 -4.3% 3 Spokane, WA 345,070 378,370 347,570 315,500 3,467 0.1% 6.1% 1,501,430 1,386,510 3,799 -7.7% 4 Anchorage, AK 403,590 534,140 329,960 297,730 3,272 2.1% 5.7% 1,733,860 1,565,420 4,289 -9.7% 5 Boise, ID 312,380 335,070 310,490 280,170 3,079 -3.3% 5.4% 1,342,710 1,238,110 3,392 -7.8% 6 Bellingham, WA 82,170 87,900 80,640 86,540 951 34.7% 1.7% 267,690 337,250 924 26.0% 7 Bozeman, MT 69,110 103,590 63,710 80,680 887 1.1% 1.6% 321,360 317,090 869 -1.3% 8 Fairbanks, AK 92,610 111,320 88,380 78,150 859 4.2% 1.5% 387,940 370,460 1,015 -4.5% 9 Billings, MT 93,110 112,740 89,490 73,640 809 1.8% 1.4% 374,480 368,980 1,011 -1.5% 10 Eugene, OR 74,120 84,910 77,790 68,190 749 11.6% 1.3% 291,150 305,010 836 4.8% 11 Jackson, WY 46,750 116,400 33,880 64,300 707 0.0% 1.2% 270,250 261,330 716 -3.3% 12 Pasco, WA 57,720 63,310 63,900 62,390 686 26.1% 1.2% 214,580 247,320 678 15.3% 13 Medford, OR 67,190 74,760 65,780 57,620 633 12.4% 1.1% 252,480 265,350 727 5.1% 14 Missoula, MT 64,690 85,010 61,060 52,970 582 6.6% 1.0% 258,910 263,730 723 1.9% 15 Redmond, OR 46,740 55,430 50,020 46,160 507 4.0% 0.9% 201,770 198,350 543 -1.7% 16 Juneau, AK 58,170 70,650 42,960 42,080 462 9.0% 0.8% 229,110 213,860 586 -6.7% 17 Great Falls, MT 33,060 39,500 33,530 31,070 341 7.2% 0.6% 132,770 137,160 376 3.3% 18 Kalispell, MT 36,240 53,350 30,810 30,320 333 1.3% 0.6% 168,490 150,720 413 -10.5% 19 Idaho Falls, ID 31,900 35,720 31,230 27,930 307 -4.4% 0.5% 129,720 126,780 347 -2.3% 20 Bethel, AK 32,200 34,280 36,010 27,560 303 11.8% 0.5% 131,250 130,050 356 -0.9% 21 Helena, MT 19,670 25,360 22,260 17,840 196 17.7% 0.3% 77,530 85,130 233 9.8% 22 Kenai, AK 18,420 24,510 18,960 17,780 195 -2.1% 0.3% 87,650 79,670 218 -9.1% 23 Casper, WY 15,980 16,700 19,610 15,820 174 7.5% 0.3% 68,890 68,110 187 -1.1% 24 Sun Valley, ID 9,080 14,980 8,250 15,470 170 5.3% 0.3% 55,380 47,780 131 -13.7% 25 Ketchikan, AK 22,440 34,640 17,450 14,790 163 7.3% 0.3% 95,650 89,320 245 -6.6% 26 Kodiak, AK 18,260 23,750 16,390 12,740 140 -2.0% 0.2% 74,270 71,140 195 -4.2% 27 Yakima, WA 11,770 11,440 13,890 12,590 138 -10.8% 0.2% 57,140 49,690 136 -13.0% 28 Lew iston, ID 14,450 14,070 14,380 12,210 134 -10.9% 0.2% 56,320 55,110 151 -2.1% 29 Nome, AK 12,060 14,160 11,960 11,960 131 6.6% 0.2% 53,170 50,140 137 -5.7% 30 Kotzebue, AK 11,800 14,000 14,160 11,900 131 12.1% 0.2% 56,370 51,860 142 -8.0% 31 Sitka, AK 15,580 17,930 11,180 10,210 112 5.4% 0.2% 58,460 54,900 150 -6.1% 32 Wenatchee, WA 11,130 11,510 11,400 9,770 107 -12.8% 0.2% 42,460 43,810 120 3.2% 33 Barrow , AK 9,190 10,150 10,160 8,190 90 4.9% 0.2% 38,430 37,690 103 -1.9% 34 Pullman/Moscow , WA 6,860 5,780 9,240 7,880 87 16.4% 0.2% 28,410 29,760 82 4.8% 35 Prudhoe Bay/Deadhors e 7,910 8,140 6,100 7,340 81 1.0% 0.1% 81,330 29,490 81 -63.7% 36 Homer, AK 8,930 12,170 7,760 7,180 79 -4.3% 0.1% 40,460 36,040 99 -10.9% 37 Walla Walla, WA 7,550 7,180 8,370 6,390 70 -12.0% 0.1% 27,760 29,490 81 6.2% 38 Gillette, WY 6,510 6,450 6,840 6,370 70 12.3% 0.1% 26,950 26,170 72 -2.9% 39 Tw in Falls, ID 5,750 5,800 6,050 5,720 63 0.4% 0.1% 23,030 23,320 64 1.3% 40 Seattle Boeing Field, W A 8,590 8,690 6,240 5,110 56 10.4% 0.1% 25,440 28,630 78 12.5% 41 Dutch Harbor, AK 7,500 7,000 6,330 4,840 53 -5.5% 0.1% 25,870 25,670 70 -0.8% 42 North Bend, OR 6,220 7,440 4,870 4,790 53 -3.0% 0.1% 32,720 23,320 64 -28.7% 43 Butte, MT 6,030 6,500 5,290 4,770 52 8.2% 0.1% 24,330 22,590 62 -7.2% 44 Rock Springs, WY 4,170 3,670 4,910 4,750 52 -2.3% 0.1% 24,090 17,500 48 -27.4% 45 Klamath Falls, OR 4,910 5,610 5,660 4,740 52 -0.4% 0.1% 24,380 20,920 57 -14.2% 46 Dillingham, AK 7,060 10,940 5,990 4,720 52 8.3% 0.1% 30,240 28,710 79 -5.1% 47 Pocatello, ID 5,200 5,070 4,720 3,940 43 -9.6% 0.1% 20,910 18,930 52 -9.5% 48 Cody, WY 7,260 8,770 5,220 3,530 39 -11.1% 0.1% 23,340 24,780 68 6.2% 49 Riverton, WY 3,510 3,550 3,500 3,210 35 0.9% 0.1% 15,840 13,770 38 -13.1% 50 Sheridan, WY 3,310 3,770 3,580 3,140 35 4.0% 0.1% 16,290 13,800 38 -15.3% 51 King Salmon, AK 9,530 21,650 4,550 3,100 34 5.1% 0.1% 40,090 38,830 106 -3.1% 52 Aniak, AK 3,450 4,160 3,800 2,970 33 0.7% 0.1% 15,890 14,380 39 -9.5% 53 Cordova, AK 3,710 5,030 2,980 2,700 30 20.5% 0.1% 14,460 14,420 40 -0.3% 54 Valdez, AK 3,630 4,530 2,900 2,690 30 -5.9% 0.1% 14,300 13,750 38 -3.8% 55 Petersburg, AK 3,320 5,480 3,070 2,580 28 -1.5% 0.0% 15,760 14,450 40 -8.3% 56 Emmonak, AK 2,110 2,280 2,440 2,240 25 31.8% 0.0% 7,490 9,070 25 21.1% 57 Cheyenne, WY 2,800 2,680 2,530 2,210 24 -7.1% 0.0% 12,810 10,220 28 -20.2% 58 Unalakleet, AK 2,290 2,990 2,580 2,200 24 22.9% 0.0% 10,540 10,060 28 -4.6% 59 Galena, AK 1,670 1,590 1,810 2,200 24 41.0% 0.0% 7,220 7,270 20 0.7% 60 Port Angeles, WA 4,870 3,360 2,480 1,990 22 -2.0% 0.0% 11,370 12,700 35 11.7% 2 Q 09 3 Q 09 4 Q 09 1 Q 10 Regional Passengers 6,303,540 7,293,880 5,794,460 5,197,800 57,119 1.1% 100.0% 25,564,710 24,589,680 67,369 -3.8% 1 Q 10 Mar-09 Mar-10 Mar-10 ? Airport Traffic Quarterl y Top 60 Northwest Region Airports - Domestic O&D Passengers Ranked by First Quarter 2010 Approximates 100% Sample - Directional Journeyed Passengers - Outbound Only

Qtr/Qtr Share Total Paxs YE PDEW YE YE/YE 2009-2010 PDEW Rank ? 2 Q 09 3 Q 09 4 Q 09 1 Q 10 1 Q 10Idaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 61 FIGURE 27: Top 60 Northwest Region Airports, Domestic O&D Revenue, Ranked by First Quarter 2010

OTH

Airport
1 Seattle/Tacoma, WA $366,810 $450,900 $340,950 $313,040 $1,720 7.9% 38.2% $1,616,490 $1,471,700 $2,016 -9.0% 2 Portland, OR $181,340 $220,830 $189,610 $163,420 $898 7.5% 19.9% $819,180 $755,200 $1,035 -7.8% 3 Anchorage, AK $89,600 $125,950 $74,600 $67,790 $372 2.1% 8.3% $402,150 $357,940 $490 -11.0% 4 Spokane, WA $45,030 $53,580 $46,370 $43,130 $237 4.8% 5.3% $208,620 $188,110 $258 -9.8% 5 Boise, ID $39,480 $45,330 $43,030 $39,620 $218 7.3% 4.8% $183,160 $167,460 $229 -8.6% 6 Fairbanks, AK $21,600 $27,480 $20,440 $17,280 $95 5.9% 2.1% $88,330 $86,800 $119 -1.7% 7 Bozeman, MT $11,930 $18,600 $12,540 $15,320 $84 3.2% 1.9% $66,410 $58,390 $80 -12.1% 8 Billings, MT $15,200 $18,030 $15,430 $12,410 $68 0.3% 1.5% $69,000 $61,070 $84 -11.5% 9 Jackson, WY $8,160 $20,270 $7,410 $11,850 $65 4.2% 1.4% $58,010 $47,690 $65 -17.8% 10 Pasco, WA $11,260 $12,030 $11,500 $10,840 $60 11.8% 1.3% $45,580 $45,630 $63 0.1% 11 Eugene, OR $11,640 $13,840 $12,550 $10,730 $59 8.9% 1.3% $51,660 $48,760 $67 -5.6% 12 Missoula, MT $11,590 $15,960 $11,440 $9,240 $51 2.8% 1.1% $51,720 $48,230 $66 -6.7% 13 Bellingham, WA $8,000 $8,920 $8,680 $8,520 $47 33.8% 1.0% $31,650 $34,120 $47 7.8% 14 Medford, OR $9,860 $11,470 $9,770 $8,490 $47 6.5% 1.0% $44,170 $39,590 $54 -10.4% 15 Juneau, AK $10,740 $14,210 $7,580 $7,820 $43 7.1% 1.0% $44,960 $40,350 $55 -10.3% 16 Great Falls, MT $6,420 $7,710 $6,690 $6,060 $33 3.9% 0.7% $29,590 $26,880 $37 -9.2% 17 Redmond, OR $6,080 $7,700 $6,670 $6,050 $33 2.2% 0.7% $30,600 $26,500 $36 -13.4% 18 Kalispell, MT $6,770 $10,870 $6,280 $5,800 $32 7.2% 0.7% $36,080 $29,720 $41 -17.6% 19 Idaho Falls, ID $6,180 $7,050 $6,200 $5,720 $31 2.3% 0.7% $26,830 $25,150 $34 -6.3% 20 Helena, MT $4,440 $5,390 $4,760 $3,870 $21 6.0% 0.5% $19,460 $18,460 $25 -5.1% 21 Bethel, AK $3,740 $3,990 $4,030 $3,250 $18 12.8% 0.4% $14,860 $15,010 $21 1.0% 22 Casper, WY $3,510 $3,400 $3,890 $3,110 $17 -7.7% 0.4% $17,950 $13,910 $19 -22.5% 23 Ketchikan, AK $4,740 $7,430 $3,530 $3,040 $17 10.9% 0.4% $20,850 $18,740 $26 -10.1% 24 Sun Valley, ID $1,370 $3,120 $1,480 $2,610 $14 -7.4% 0.3% $11,540 $8,580 $12 -25.6% 25 Prudhoe Bay/Deadhors e $2,850 $2,870 $2,070 $2,560 $14 -0.8% 0.3% $20,100 $10,350 $14 -48.5% 26 Dutch Harbor, AK $3,360 $3,430 $3,010 $2,510 $14 8.2% 0.3% $12,580 $12,310 $17 -2.1% 27 Kodiak, AK $3,420 $4,870 $2,970 $2,410 $13 4.3% 0.3% $14,350 $13,670 $19 -4.7% 28 Lew iston, ID $2,420 $2,370 $2,490 $2,040 $11 -5.6% 0.2% $9,600 $9,320 $13 -2.9% 29 Yakima, WA $1,960 $2,050 $2,170 $1,990 $11 -4.3% 0.2% $10,180 $8,170 $11 -19.7% 30 Nome, AK $2,020 $2,670 $1,850 $1,940 $11 7.8% 0.2% $8,730 $8,480 $12 -2.9% 31 Sitka, AK $3,050 $3,980 $1,920 $1,860 $10 6.3% 0.2% $12,030 $10,810 $15 -10.1% 32 Barrow , AK $1,960 $2,060 $2,050 $1,700 $9 7.6% 0.2% $8,410 $7,770 $11 -7.6% 33 Kotzebue, AK $1,700 $2,160 $1,980 $1,560 $9 4.7% 0.2% $7,800 $7,400 $10 -5.1% 34 Wenatchee, WA $1,600 $1,820 $1,610 $1,370 $8 -14.9% 0.2% $6,790 $6,400 $9 -5.7% 35 Butte, MT $1,540 $1,630 $1,380 $1,360 $7 13.3% 0.2% $6,830 $5,910 $8 -13.5% 36 Kenai, AK $1,550 $2,200 $1,480 $1,330 $7 8.1% 0.2% $6,930 $6,560 $9 -5.3% 37 Gillette, WY $1, 430 $1,400 $1,370 $1,220 $7 4.3% 0.1% $6,550 $5,420 $7 -17.3% 38 Pullman/Moscow , WA $940 $820 $1,310 $1,060 $6 14.0% 0.1% $4,130 $4,130 $6 0.0% 39 Rock Springs, WY $860 $770 $1,030 $920 $5 -16.4% 0.1% $5,870 $3,580 $5 -39.0% 40 Walla Walla, WA $1,090 $1,050 $1,220 $900 $5 -7.2% 0.1% $4,530 $4,260 $6 -6.0% 41 North Bend, OR $950 $1,100 $680 $740 $4 -7.5% 0.1% $5,770 $3,470 $5 -39.9% 42 Klamath Falls, OR $760 $840 $770 $720 $4 -10.0% 0.1% $4,390 $3,090 $4 -29.6% 43 Tw in Falls, ID $660 $810 $740 $710 $4 10.9% 0.1% $3,060 $2,920 $4 -4.6% 44 Riverton, WY $720 $740 $730 $660 $4 10.0% 0.1% $3,480 $2,850 $4 -18.1% 45 Homer, AK $700 $1,120 $650 $620 $3 8.8% 0.1% $3,520 $3,090 $4 -12.2% 46 Sheridan, WY $630 $810 $780 $580 $3 -1.7% 0.1% $3,590 $2,800 $4 -22.0% 47 Dilli ngham, AK $1,180 $1,950 $760 $560 $3 3.7% 0.1% $4,770 $4,450 $6 -6.7% 48 Cody, WY $1,400 $1,790 $820 $500 $3 -42.5% 0.1% $5,720 $4,510 $6 -21.2% 49 Pocatello, ID $610 $690 $550 $490 $3 -5.8% 0.1% $3,310 $2,340 $3 -29.3% 50 Cordova, AK $630 $1,190 $500 $460 $3 17.9% 0.1% $2,690 $2,780 $4 3.3% 51 Petersburg, AK $680 $1,260 $540 $420 $2 -10.6% 0.1% $3,210 $2,900 $4 -9.7% 52 Valdez, AK $500 $710 $420 $410 $2 5.1% 0.0% $2,120 $2,040 $3 -3.8% 53 Laramie, WY $340 $360 $340 $370 $2 27.6% 0.0% $1,620 $1,410 $2 -13.0% 54 Cheyenne, WY $520 $560 $500 $370 $2 -22.9% 0.0% $2,720 $1,950 $3 -28.3% 55 King Salmon, AK $1,530 $3,790 $550 $350 $2 12.9% 0.0% $6,380 $6,220 $9 -2.5% 56 Saint Paul Island, AK $280 $160 $200 $320 $2 10.3% 0.0% $980 $960 $1 -2.0% 57 Wrangell, AK $520 $690 $380 $310 $2 0.0% 0.0% $1,790 $1,900 $3 6.1% 58 Seattle Boeing Field, W A $470 $490 $370 $310 $2 14.8% 0.0% $1,330 $1,640 $2 23.3% 59 Aniak, AK $280 $400 $320 $260 $1 4.0% 0.0% $1,350 $1,260 $2 -6.7% 60 Adak Island, AK $290 $280 $200 $260 $1 62.5% 0.0% $1,020 $1,030 $1 1.0% 2 Q 09 3 Q 09 4 Q 09 1 Q 10 Regional Revenue $937,790 $1,179,350 $902,380 $820,320 $4,507 6.5% 100.0% $4,226,900 $3,839,840 $5,260 -9.2% Airport Traffic Quarterl y Top 60 Northwest Region Airports - Domestic O&D Revenue Ranked by First Quarter 2010 Approximates 100% Sample - Total Revenue in $thousands - Outbound Only

RDEW YE/YE 2009-2010 RDEW Qtr/Qtr Share ? 1 Q 10 Mar-09 2 Q 09 3 Q 09 4 Q 09 1 Q 10 1 Q 10 Mar-10 Mar-10 ? Year Ended RankIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 62 FIGURE 28: Top 60 Northwest Region Airports, Domestic Average Fare, Ranked by First Quarter 2010

OTH

Airport
1 Dutch Harbor, AK $477.74 $530.96 $508.22 $563.11 17.1% $82.28 $519.90 $515.65 -0.8% -$4.25 2 Prudhoe Bay/Deadhorse, AK $363.38 $356.54 $344.21 $351.49 -1.7% -$6.15 $248.39 $354.57 42.7% $106.18 3 Butte, MT $280.37 $278.78 $293.43 $313.19 7.4% $21.66 $306.23 $289.91 -5.3% -$16.32 4 Anchorage, AK $260.97 $277.12 $263.17 $269.63 0.2% $0.57 $271.13 $268.58 -0.9% -$2.55 5 Fairbanks, AK $272.65 $283.85 $267.29 $260.23 2.8% $7.09 $261.35 $272.18 4.1% $10.83 6 Ketchikan, AK $249.15 $257.01 $237.65 $244.52 2.5% $6.04 $254.96 $249.14 -2.3% -$5.82 7 Helena, MT $254.04 $245.40 $237.71 $240.12 -11.3% -$30.70 $278.75 $244.23 -12.4% -$34.52 8 Barrow , AK $236.11 $228.35 $223.45 $235.51 3.2% $7.20 $241.35 $230.46 -4.5% -$10.89 9 Sitka, AK $244.19 $274.39 $209.44 $231.60 7.2% $15.49 $247.83 $244.60 -1.3% -$3.23 10 Kalispell, MT $223.39 $242.59 $236.59 $224.18 4.1% $8.89 $252.89 $233.04 -7.8% -$19.85 11 Idaho Falls, ID $214.66 $217.36 $215.66 $223.20 4.9% $10.35 $227.57 $217.56 -4.4% -$10.01 12 Jackson, WY $201.98 $201.28 $254.80 $220.89 6.6% $13.72 $246.65 $213.06 -13.6% -$33.59 13 Juneau, AK $219.46 $236.17 $208.37 $219.81 -0.9% -$2.04 $231.15 $222.85 -3.6% -$8.30 14 Bozeman, MT $196.13 $202.25 $222.47 $217.51 2.1% $4.50 $235.93 $208.84 -11.5% -$27.09 15 Kodiak, AK $215.49 $233.63 $205.19 $214.80 9.0% $17.80 $219.37 $219.03 -0.2% -$0.34 16 Petersburg, AK $255.03 $261.56 $220.52 $210.23 -4.4% -$9.73 $246.73 $242.97 -1.5% -$3.76 17 Riverton, WY $209.27 $209.39 $211.11 $209.16 10.6% $20.07 $221.92 $209.75 -5.5% -$12.17 18 Great Falls, MT $210.25 $213.82 $215.54 $206.04 -3.2% -$6.84 $240.14 $211.58 -11.9% -$28.56 19 Casper, WY $233.89 $218.34 $208.96 $203.77 -15.2% -$36.60 $275.88 $215.80 -21.8% -$60.08 20 Rock Springs, WY $210.12 $214.61 $214.37 $199.89 -12.7% -$29.17 $246.45 $209.51 -15.0% -$36.94 21 Gillette, WY $225.85 $221.76 $207.27 $199.64 -5.2% -$10.98 $248.59 $213.67 -14.0% -$34.92 22 Missoula, MT $200.35 $213.12 $206.88 $191.65 -4.6% -$9.16 $222.15 $204.15 -8.1% -$18.00 23 Cordova, AK $194.86 $267.70 $196.80 $190.81 -5.3% -$10.68 $213.27 $220.17 3.2% $6.90 24 Sheridan, WY $192.87 $216.80 $218.02 $185.58 -5.5% -$10.87 $222.61 $204.26 -8.2% -$18.35 25 Sun Valley, ID $186.80 $227.98 $209.06 $185.16 -14.3% -$30.98 $238.02 $203.36 -14.6% -$34.66 26 Pasco, WA $210.82 $206.05 $193.11 $184.12 -13.5% -$28.65 $229.74 $198.20 -13.7% -$31.54 27 Lew iston, ID $180.03 $185.04 $186.08 $180.29 5.7% $9.67 $185.14 $182.94 -1.2% -$2.20 28 Nome, AK $186.25 $213.99 $171.38 $179.96 0.4% $0.77 $182.21 $188.86 3.6% $6.65 29 Billings, MT $174.11 $171.05 $182.60 $179.57 -0.5% -$0.85 $197.55 $176.34 -10.7% -$21.21 30 Cheyenne, WY $187.54 $212.87 $198.67 $172.89 -14.8% -$30.06 $214.55 $193.78 -9.7% -$20.77 31 Eugene, OR $173.72 $180.59 $177.28 $172.23 -4.8% -$8.75 $198.70 $176.19 -11.3% -$22.51 32 Yakima, WA $180.89 $194.76 $167.48 $170.42 4.7% $7.60 $194.55 $177.64 -8.7% -$16.91 33 North Bend, OR $161.68 $156.74 $150.87 $166.47 -3.0% -$5.11 $188.71 $158.85 -15.8% -$29.86 34 Seattle/Tacoma, WA $150.69 $166.33 $157.90 $164.80 9.1% $13.68 $172.29 $159.90 -7.2% -$12.39 35 Portland, OR $149.96 $166.10 $165.75 $164.17 7.1% $10.94 $168.39 $161.43 -4.1% -$6.96 36 Medford, OR $160.20 $167.47 $161.01 $160.13 -7.4% -$12.81 $195.70 $162.43 -17.0% -$33.27 37 Wenatchee, WA $158.20 $176.09 $156.89 $158.86 -1.3% -$2.15 $176.42 $162.71 -7.8% -$13.71 38 Valdez, AK $140.73 $159.98 $145.61 $158.70 15.1% $20.84 $150.76 $151.57 0.5% $0.81 39 Klamath Falls, OR $161.14 $157.33 $145.51 $156.83 -9.7% -$16.81 $192.89 $154.98 -19.7% -$37.91 40 Walla Walla, WA $161.43 $164.90 $159.82 $155.97 2.8% $4.30 $180.65 $160.62 -11.1% -$20.03 41 Cody, WY $214.02 $225.20 $172.46 $154.49 -36.8% -$89.94 $270.47 $200.63 -25.8% -$69.84 42 Boise, ID $135.50 $145.37 $147.66 $150.58 11.1% $15.10 $145.54 $144.64 -0.6% -$0.90 43 Pullman/Moscow , WA $159.45 $159.09 $151.19 $146.97 -2.3% -$3.47 $159.74 $153.39 -4.0% -$6.35 44 Kotzebue, AK $160.79 $170.83 $150.75 $146.87 -4.8% -$7.38 $149.94 $157.55 5.1% $7.61 45 Spokane, WA $140.12 $153.24 $142.14 $146.39 4.3% $6.01 $149.12 $145.61 -2.4% -$3.51 46 Redmond, OR $145.34 $156.08 $148.05 $145.61 -2.4% -$3.59 $171.52 $149.07 -13.1% -$22.45 47 Pocatello, ID $124.86 $148.38 $128.11 $137.73 2.7% $3.68 $170.04 $134.59 -20.8% -$35.45 48 Tw in Falls, ID $124.67 $148.01 $133.78 $133.50 8.0% $9.86 $142.78 $135.09 -5.4% -$7.69 49 Bethel, AK $121.89 $122.58 $115.89 $123.95 1.3% $1.54 $117.98 $120.83 2.4% $2.85 50 Dillingham, AK $180.06 $188.46 $128.29 $120.86 -4.8% -$6.08 $163.89 $162.07 -1.1% -$1.82 51 King Salmon, AK $174.41 $181.72 $122.82 $115.28 8.3% $8.81 $164.59 $167.46 1.7% $2.87 52 Bellingham, WA $100.70 $104.58 $110.34 $100.43 -2.9% -$3.00 $123.67 $103.95 -15.9% -$19.72 53 Unalakleet, AK $88.70 $92.72 $85.93 $88.80 12.8% $10.10 $78.14 $89.20 14.2% $11.06 54 Homer, AK $80.28 $93.90 $85.55 $88.59 16.4% $12.49 $88.31 $87.68 -0.7% -$0.63 55 Aniak, AK $82.60 $96.29 $84.70 $87.40 4.5% $3.80 $84.89 $88.09 3.8% $3.20 56 Galena, AK $93.00 $97.20 $91.30 $84.60 -7.5% -$6.90 $93.64 $90.95 -2.9% -$2.69 57 Kenai, AK $86.56 $91.93 $79.71 $76.89 12.1% $8.27 $80.23 $84.43 5.2% $4.20 58 Emmonak, AK $67.10 $73.60 $65.00 $68.10 7.4% $4.70 $60.65 $68.42 12.8% $7.77 59 Seattle Boeing Field, WA $54.80 $56.80 $58.90 $61.20 3.4% $2.00 $52.67 $57.44 9.1% $4.77 60 Port Angeles, WA $46.50 $46.50 $46.50 $46.50 0.0% $0.00 $46.50 $46.50 0.0% $0.00
2 Q 09 3 Q 09 4 Q 09 1 Q 10 Average Regional Fare $161.51 $176.66 $168.17 $171.07 5.2% $8.42 $161.51 $176.66 9.4% $15.15 Airport Traffic Quarterl y Fared Average Fare Rank at Top 60 Northwest Region O&D Passenger Airports Ranked by First Quarter 2010 Approximates 100% Sample - Fared Average Fares - Onew ay

YE/YE Year Ended YE/YE 2009-2010 Qtr/Qtr Qtr/Qtr
Mar-09 Mar-10 4 Q 09 1 Q 10 % ? Fare ? 2 Q 09 3 Q 09 % ? Fare ? RankIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 63 FIGURE 29: Top 60 Northwest Region Airports, Domestic Average Yield, Ranked by First Quarter 2010

OTH

Airport
1 Port Angeles, WA 67.39¢ 67.39¢ 67.39¢ 67.39¢ 0.0% 0.00¢ 67.39¢ 67.39¢ 0.0% 0.00¢ 2 Seattle Boeing Field, WA 63.27¢ 62.76¢ 61.85¢ 60.94¢ -1.2% -0.73¢ 64.59¢ 62.34¢ -3.5% -2.25¢ 3 Prudhoe Bay/Deadhorse, AK 51.53¢ 48.99¢ 53.05¢ 52.03¢ 2.9% 1.49¢ 37.78¢ 51.22¢ 35.6% 13.44¢ 4 Emmonak, AK 40.74¢ 39.71¢ 47.12¢ 43.93¢ 9.7% 3.90¢ 41.11¢ 42.68¢ 3.8% 1.57¢ 5 Galena, AK 41.76¢ 41.81¢ 42.29¢ 42.61¢ 2.4% 1.02¢ 41.22¢ 42.14¢ 2.2% 0.92¢ 6 Aniak, AK 39.90¢ 33.95¢ 40.04¢ 39.37¢ -0.9% -0.34¢ 38.55¢ 37.74¢ -2.1% -0.81¢ 7 Bethel, AK 31.40¢ 33.58¢ 34.40¢ 37.45¢ 8.7% 3.00¢ 33.15¢ 33.97¢ 2.5% 0.82¢ 8 Unalakleet, AK 35.02¢ 32.56¢ 33.28¢ 35.92¢ 0.1% 0.02¢ 35.26¢ 33.98¢ -3.6% -1.28¢ 9 Kotzebue, AK 29.30¢ 33.65¢ 33.94¢ 34.88¢ 0.1% 0.03¢ 33.45¢ 32.86¢ -1.8% -0.59¢ 10 Homer, AK 30.02¢ 31.75¢ 32.57¢ 33.48¢ -10.1% -3.75¢ 31.67¢ 31.85¢ 0.6% 0.18¢ 11 Barrow , AK 27.89¢ 29.45¢ 27.40¢ 31.65¢ 0.1% 0.03¢ 30.35¢ 28.96¢ -4.6% -1.39¢ 12 King Salmon, AK 23.88¢ 29.94¢ 33.75¢ 31.52¢ -18.0% -6.90¢ 29.03¢ 28.42¢ -2.1% -0.61¢ 13 Dillingham, AK 24.97¢ 27.73¢ 31.91¢ 31.49¢ 2.5% 0.78¢ 27.14¢ 27.80¢ 2.4% 0.66¢ 14 Kenai, AK 27.60¢ 27.62¢ 30.17¢ 30.92¢ -14.0% -5.02¢ 30.70¢ 28.79¢ -6.2% -1.91¢ 15 Dutch Harbor, AK 28.06¢ 30.06¢ 28.00¢ 30.86¢ 7.6% 2.17¢ 29.11¢ 29.16¢ 0.2% 0.05¢ 16 Nome, AK 26.61¢ 30.28¢ 29.75¢ 30.71¢ 4.8% 1.41¢ 28.61¢ 29.31¢ 2.4% 0.70¢ 17 Valdez, AK 32.65¢ 29.38¢ 30.36¢ 29.95¢ -11.3% -3.82¢ 30.93¢ 30.46¢ -1.5% -0.47¢ 18 Ketchikan, AK 24.20¢ 23.63¢ 24.45¢ 28.70¢ 9.0% 2.38¢ 24.18¢ 24.66¢ 2.0% 0.48¢ 19 Cheyenne, WY 28.53¢ 27.52¢ 26.80¢ 27.64¢ -6.9% -2.05¢ 29.97¢ 27.63¢ -7.8% -2.34¢ 20 Sitka, AK 22.77¢ 23.10¢ 22.34¢ 26.61¢ 3.1% 0.81¢ 23.38¢ 23.45¢ 0.3% 0.07¢ 21 Riverton, WY 21.96¢ 24.76¢ 23.84¢ 24.99¢ 2.3% 0.56¢ 25.39¢ 23.82¢ -6.2% -1.57¢ 22 Sheridan, WY 21.95¢ 21.89¢ 22.37¢ 23.88¢ -4.0% -0.99¢ 24.36¢ 22.43¢ -7.9% -1.93¢ 23 Kodiak, AK 22.23¢ 22.92¢ 22.04¢ 23.68¢ -5.0% -1.25¢ 22.79¢ 22.69¢ -0.4% -0.10¢ 24 Juneau, AK 20.56¢ 20.87¢ 19.38¢ 23.57¢ 4.1% 0.94¢ 21.11¢ 20.96¢ -0.7% -0.15¢ 25 Cordova, AK 21.56¢ 20.75¢ 21.25¢ 22.95¢ 7.3% 1.56¢ 21.45¢ 21.47¢ 0.1% 0.02¢ 26 Petersburg, AK 23.07¢ 20.87¢ 22.32¢ 22.92¢ -11.6% -3.01¢ 23.37¢ 22.17¢ -5.1% -1.20¢ 27 Butte, MT 19.08¢ 19.85¢ 21.14¢ 22.76¢ 9.1% 1.89¢ 22.63¢ 20.58¢ -9.1% -2.05¢ 28 Idaho Falls, ID 18.06¢ 18.71¢ 19.54¢ 20.44¢ 5.1% 1.00¢ 20.48¢ 19.11¢ -6.7% -1.37¢ 29 Rock Springs, WY 21.10¢ 21.06¢ 20.40¢ 19.92¢ -12.9% -2.94¢ 25.84¢ 20.59¢ -20.3% -5.25¢ 30 Casper, WY 21.74¢ 20.19¢ 19.53¢ 19.12¢ -16.0% -3.63¢ 25.45¢ 20.12¢ -20.9% -5.33¢ 31 Fairbanks, AK 17.09¢ 17.66¢ 17.83¢ 18.70¢ 4.0% 0.73¢ 17.22¢ 17.76¢ 3.1% 0.54¢ 32 Helena, MT 19.38¢ 18.05¢ 18.39¢ 18.54¢ -13.1% -2.80¢ 21.01¢ 18.55¢ -11.7% -2.46¢ 33 Pullman/Moscow , WA 16.72¢ 17.89¢ 17.97¢ 18.16¢ 1.6% 0.29¢ 19.76¢ 17.70¢ -10.4% -2.06¢ 34 Sun Valley, ID 15.77¢ 20.03¢ 17.65¢ 18.01¢ -7.1% -1.39¢ 21.28¢ 18.19¢ -14.5% -3.09¢ 35 Gillette, WY 21.06¢ 20.94¢ 19. 17¢ 17.86¢ -12.9% -2.64¢ 24.29¢ 19.75¢ -18.7% -4.54¢ 36 Lew iston, ID 15.42¢ 15.81¢ 17.39¢ 17.35¢ 8.7% 1.39¢ 17.94¢ 16.43¢ -8.4% -1.51¢ 37 Great Falls, MT 16.67¢ 16.97¢ 17.42¢ 16.80¢ -5.5% -0.98¢ 18.91¢ 16.97¢ -10.3% -1.94¢ 38 Kalispell, MT 13.51¢ 16.45¢ 16.99¢ 16.18¢ 25.5% 3.28¢ 16.61¢ 15.72¢ -5.4% -0.89¢ 39 Yakima, WA 15.91¢ 16.54¢ 14.93¢ 15.90¢ -3.7% -0.61¢ 17.40¢ 15.79¢ -9.3% -1.61¢ 40 Boise, ID 13.65¢ 14.58¢ 15.30¢ 15.68¢ 9.8% 1.40¢ 15.41¢ 14.77¢ -4.2% -0.64¢ 41 Wenatchee, WA 15.06¢ 16.68¢ 14.80¢ 15.65¢ -6.9% -1.17¢ 18.78¢ 15.57¢ -17.1% -3.21¢ 42 Bozeman, MT 14.51¢ 14.68¢ 16.90¢ 15.59¢ 0.8% 0.13¢ 17.16¢ 15.31¢ -10.8% -1.85¢ 43 Walla Walla, WA 15.91¢ 17.33¢ 14.87¢ 15.50¢ -8.6% -1.45¢ 19.64¢ 15.86¢ -19.2% -3.78¢ 44 Anchorage, AK 13.50¢ 13.61¢ 14.81¢ 15.46¢ 0.6% 0.09¢ 14.47¢ 14.14¢ -2.3% -0.33¢ 45 Missoula, MT 15.64¢ 16.02¢ 16.28¢ 15.32¢ -3.2% -0.51¢ 17.21¢ 15.85¢ -7.9% -1.36¢ 46 Billings, MT 14.57¢ 13.94¢ 15.50¢ 15.28¢ -1.0% -0.15¢ 16.49¢ 14.74¢ -10.6% -1.75¢ 47 Pasco, WA 15.56¢ 15.23¢ 14.78¢ 14.59¢ -12.7% -2.12¢ 17.63¢ 15.03¢ -14.7% -2.60¢ 48 Jackson, WY 13.81¢ 13.87¢ 17.41¢ 14.37¢ 8.0% 1.07¢ 16.58¢ 14.44¢ -12.9% -2.14¢ 49 Medford, OR 13.12¢ 13.56¢ 13.13¢ 13.56¢ -5.2% -0.75¢ 15.78¢ 13.34¢ -15.5% -2.44¢ 50 Eugene, OR 12.67¢ 13.06¢ 13.46¢ 13.52¢ -1.4% -0.19¢ 14.64¢ 13.16¢ -10.1% -1.48¢ 51 Cody, WY 15.40¢ 16.11¢ 13.88¢ 13.42¢ -31.7% -6.22¢ 20.66¢ 15.14¢ -26.7% -5.52¢ 52 Spokane, WA 12.68¢ 13.30¢ 13.30¢ 13.36¢ 0.8% 0.10¢ 14.00¢ 13.15¢ -6.1% -0.85¢ 53 Redmond, OR 12.32¢ 13.07¢ 12.86¢ 12.68¢ -3.7% -0.48¢ 15.19¢ 12.75¢ -16.1% -2.44¢ 54 Pocatello, ID 11.36¢ 13.29¢ 11.45¢ 12.57¢ 4.1% 0.50¢ 14.79¢ 12.17¢ -17.7% -2.62¢ 55 Tw in Falls, ID 11.03¢ 13.05¢ 11.18¢ 12.26¢ 16.3% 1.72¢ 12.47¢ 11.88¢ -4.7% -0.59¢ 56 Portland, OR 10.81¢ 11.55¢ 12.05¢ 12.18¢ 5.5% 0.64¢ 12.36¢ 11.61¢ -6.1% -0.75¢ 57 Seattle/Tacoma, WA 10.09¢ 10.91¢ 10.74¢ 11.24¢ 7.1% 0.74¢ 11.73¢ 10.72¢ -8.6% -1.01¢ 58 North Bend, OR 11.40¢ 11.17¢ 11.58¢ 11.16¢ -11.5% -1.45¢ 17.63¢ 11.33¢ -35.7% -6.30¢ 59 Klamath Falls, OR 10.97¢ 10.08¢ 10.64¢ 11.02¢ -14.8% -1.91¢ 16.50¢ 10.66¢ -35.4% -5.84¢ 60 Bellingham, WA 9.87¢ 10.26¢ 10.63¢ 9.62¢ -4.3% -0.43¢ 12.16¢ 10.09¢ -17.0% -2.07¢ 2 Q 09 3 Q 09 4 Q 09 1 Q 10 $11

. 81 $12

. 57 $12

. 67 $13

. 04 Average Regional Yield 11.81¢ 12.57¢ 12.67¢ 13.04¢ 4.0% 0.50¢ 12.57¢ 12.67¢ 0.8% 0.10¢ Airport Traffic Quarterly Fared Average Yield Rank at Top 60 Northwest Region O&D Passenger Airports Ranked by First Quarter 2010 Approximates 100% Sample - Fared Average Yields

YE/YE Year Ended YE/YE 2009-2010 Qtr/Qtr Qtr/Qtr
Mar-09 Mar-10 4 Q 09 1 Q 10 % ? Yld ? 2 Q 09 3 Q 09 % ? Yld ? RankIdaho Falls Regional Airport – Small Community Air Service Development Grant – August 2010 

## 64 CONCLUSIONS

Idaho Falls will be left without any westbound connecting service as of August 22, 2010, as
Horizon leaves the market and ends its Idaho Falls – Boise service. It is imperative that the Airport work quickly to replace westbound service, to provide the connectivity to the west coast that is necessary for the region’s major businesses.

The Airport proposes a new route between Idaho Fa lls and San Francisco. The Airport met with United to discuss the potential route and its pr ojected performance in Jul y at United’s Chicago headquarters. United expressed interest in launching the route as soon as summer of 2011. The Airport is requesting a Sm all Community Air Service Development Grant to ensure this route is launched.

The Idaho Falls market continues to be squeezed by seats cuts and fare increases. It is interesting to note that, while the number of seats offered by Idaho Falls’ airlines fell by 36% between 2008 and 2010, the average number of passengers using the service provided at the Airport each day dropped by just 6%. Even as airlines cut se rvice, and as fares go up, demand for service stays strong in Idaho Falls. This is evidenced by the fact that Idaho Falls has the highest average fare of all Pacific Northwest markets of 300,000 or more residents – at $446 roundtrip as of the year ended first quarter 2010.

With Idaho Falls’ track record of success in the SCASD Grant program, it should be at the top of the list for a second Grant opportunity. Much like the situation in 2005, when Idaho Falls won its previous, successful Grant, the market is unde rserved and suppressed by high fares, and a general lack of adeq uate connectivity.

The Idaho Falls Regional Airport is a model for Small Community Air Service Development Grant success. It is likely that success can be dupl icated. Idaho Falls should be rewarded for their excellent stewardship of SCASD Grant funding in a previous project, with a new Grant, and new route support, in 2010. 

## “With Idaho Falls’ track record of success, it should be at the top of the list for a second Grant opportunity.”