Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0113

SUMMARY INFORMATION

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL NUMBERING SYSTEM (DUNS)

NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: 

Routt County, Colorado

Name of Signatory Party for Legal Sponsor:

Mr. David Ruppel, Airport Manager

DUNS Number:

8247622280000

EIN/Tax ID:

84-6000801

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING:

1. HAYDEN AND STEAMBOAT SPRINGS, COLORADO

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY 

PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE).

1. Yampa Valley Regional Airport HDN

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY THE FEDERAL AVIATION 

ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO,” PLEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A 

CERTIFICATE OR WHETHER AN APPLICATION UNDER PART 139 IS PENDING.)

 Yes No (explain) X
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A 

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. CO-03

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air Service 

Development Program Grant

If previous recipient: Provide Year of grant(s): 2004

and, the text of the Grant agreement section(s) setting forth the scope of the grant project:

“Restore adequate year-round air access to Northwest Colorado.”

“Add competitive scheduled airline service at Steamboat Springs during the fall of the year to 

ensure year-round service.”

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. Yampa Valley Regional Airport 1. Steamboat Ski and Resort Corporation

2. Local Marketing District 2. Catamount Ranch and Club

3. CITIES OF STEAMBOAT SPRINGS, CRAIG AND HAYDEN 3. TWENTY MILE COAL COMPANY

4. Routt County Economic Development Coop 4. Atlantic Aviation

5. Routt County and Moffat County 5. Avis/Budget, Hertz & Enterprise Rental Car 

6. Steamboat Springs Chamber 6. Go Alpine

G. PROJECT PROPOSAL:

1. GRANT GOALS: (CHECK ALL THAT APPLY)

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services

Other (explain below)

X
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014

2 . FINANCIAL TOOLS TO BE USED: (CHECK ALL THAT APPLY)

Marketing (including Advertising): promotion of the air service to the public

Start-Up Cost Offset: offsetting expenses to assist an air service provider in setting up a 

new station and starting new service (for example, ticket counter reconfiguration)

Revenue Guarantee: an agreement with an air service provider setting forth a minimum

guaranteed profit margin, a portion of which is eligible for reimbursement by the

community

Recruitment of Air Carrier: air service development activities to recruit new air service,

including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service;

counted as in-kind contributions only

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp 

(below wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from participating parties for

the purchase of air travel on an air carrier, with defined procedures for the subsequent 

use of the pledges or the deposited funds; counted as in-kind contributions only

Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $400,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $350,000

3 Total local cash funds (3a + 3b) $350,000

4 TOTAL CASH FUNDING (1+2+3) $750,000

In-Kind contribution

5a Airport In-Kind contribution** Various

5b Other In-Kind contribution** Various

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) Various

6 TOTAL PROJECT COST (4+5) $750,000

J. IN-KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please 

describe the source(s) of fund(s) and the value ($) of each.

Local media companies will offer discounts on advertising; partner airlines will offer free tickets 

for giveaways, etc.

K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

a. This application was made available to the State under the Executive Order 12372 

Process for review on (date) _____________.

b. Program is subject to E.O. 12372, but has not been selected by the State for review.

c. Program is not covered by E.O. 12372.

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

_____________________________________________________________________________________________
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 1

TABLE OF CONTENTS

Legal Sponsor 1

Introduction 2

Location, Population and Economy 3 - 4

Current and Historical Air Service 5 - 7

Air Service Needs and Deficiencies 8 - 12

Air Service Development Plan and Implementation Timeline 13 - 17

Public/Private Partnership 18

Funding Proposal 18

Air Service Development Efforts and New Air Service Marketing 19 

Previous Grant Award and Conclusion 20

LEGAL SPONSOR

Routt County, Colorado, operator of the Yampa Valley Regional Airport, is the legal sponsor 

responsible for administering the proposed Grant and air service development program. The 

Airport is also a government agency, operated by the Routt County.

Routt County, Colorado

522 Lincoln Ave,

Steamboat Springs, Colorado 80477

Grant Administrator; Thomas Sullivan, County Manager

(970)879-0108

tsullivan@co.routt.co.us

Section Page Number
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 2

INTRODUCTION

The Yampa Valley Regional Airport and its community partners are seeking a Small Community 

Air Service Development (SCASD) Grant for the purpose of recruiting a second airline to provide 

eastbound service outside of the winter season. The Airport, working closely with a collaboration 

of community partners called the Local Marketing District (LMD) has been very active in winter 

season air service recruitment for many years. That activity has been focused on winter season 

service recruitment to support the Steamboat Ski Resort. The economic benefit of ski resort 

visitors by air makes it possible for the LMD and the Airport to recruit winter season service from 

multiple carriers on reasonable economic terms.

Unfortunately, air service outside of winter (roughly April to the 

third week of December) is very limited, consisting historically of 

low frequency United Express service to Denver. This seasonal 

imbalance of service, capacity, and most importantly 

competition, is damaging to the local economy and limits the 

ability of local residents and businesses to travel by air outside of 

the winter season.

The lack of market competition outside of winter is illustrated by the very high fares that our 

market endures from April to December each year. For the period April to December 2013 our 

domestic average fare was $267; this compares to $155 at Denver (our primary traffic leakage 

point) and $182 for all domestic passengers nationwide during that same period.

Our Airport serves all of Northwest Colorado, an isolated five county area with 59,000 year-round 

residents. The area population doubles in summer due to extended-stay tourists and second 

home owners. Key economic sectors include tourism, mining/power generation and healthcare.

Our need for additional non-winter air service from a second airline is clear. We have a detailed 

plan to recruit such air service. We believe this is exactly the type of air service challenge for 

which the SCASD Grant program was designed. We are seeking $400,000 in Grant funding, to be 

matched by $350,000 in local non-airport funding, for the purpose of recruiting a second airline 

to provide non-winter service. Our target carriers and routes are: American Airlines and Chicago

or Dallas or Delta Air Lines and Atlanta or Minneapolis.

“For the period April to December 

of 2013 our average domestic fare 

was $267; this compares to $155 at 

Denver.......and $182 for all 

domestic passengers nationwide”
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 3

County 2000 2012 Number Percent

Grand 12,490 14,195 1,705 14%

Jackson 1,576 1,348 -228 -14%

Moffat 13,166 13,200 34 0%

Rio Blanco 5,979 6,857 878 15%

Routt 19,690 23,334 3,644 19%

Total 52,901 58,934 6,033 11%

NORTHWEST COLORADO POPULATION GROWTH

Population Difference Alternative Drive Time Distance

DEN 3:11 179

EGE 1:43 87

GJT 3:24 194

SLC 5:50 342

Interstate I-70 1:37 87

ISOLATION FROM OTHER AIRPORTS

LOCATION, POPULATION AND ECONOMY

Market Location and Population – The Northwest Colorado catchment area of the Airport 

consists of five counties: Grand, Jackson, Moffat, Rio Blanco and Routt.

The total 2012 population of these counties was 

58,934. Area population has grown 11% since 2000, 

with Routt, Grand and Rio Blanco counties up 

between 14% and 19% each. Only Jackson County 

showed a decline in population while Moffat had no 

change

The Hayden-Steamboat Springs area is very isolated. The nearest interstate highway (I-70) (from 

downtown Steamboat Springs) is a 97 minute drive covering 87 miles over scenic, but slow,

Rabbit Ears Pass. The Vail/Eagle Airport is a 1:43 drive covering 87 miles while Denver, the primary 

alternative airport, is a 3:11 drive covering 179 miles, again 

over Rabbit Ears pass. The significant isolation of the 

Hayden-Steamboat Springs area from alternative airports, 

and indeed just from an interstate highway, makes local air 

service that much more important to the local economy.
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 4

Year Q1 Q2 Q3 Q4 Year

2011 90% 55% 68% 80% 83%

2012 89% 54% 71% 75% 82%

2013 93% 57% 72% 80% 86%

HAYDEN-STEAMBOAT SPRINGS TRAFFIC ORIGIN BY QUARTER

Percent of Traffic Inbound Origin for 2011 - 2013

The Hayden-Steamboat Springs Economy – Key economic sectors in the Hayden-Steamboat 

Springs region are: tourism, energy/utilities, healthcare, government and education. Four of the 

five counties in the catchment area had unemployment rates below 4.6% in April of 2014 and 

the combined five-county unemployment rate for that month was 4.5%, well below the state 

rate of 6.0 and the national rate of 6.3% for that month. 

Tourism is the largest area economic sector, powered by the globally renowned Steamboat 

Springs Ski Resort. Tourism has two peak seasons: winter and summer. There are over 3,400 

resort/hotel/motel/B&B rooms in the area with about 12,000 beds and 21,000 pillows. This 

economic sector employs almost 3,000 full-time or seasonal employees. Winter season tourists 

are drawn to the world class ski resort at Steamboat Springs while summer activities include 

mountain hiking and biking, dude ranches, fishing and river rafting. 

The impact of non-winter tourism in the Hayden-Steamboat Springs region is measurable. The 

Steamboat Springs Chamber Resort Association Summer Visitor Report, published in December 

of 2013, shows that the average summer visitor group consists of 3 visitors, 3.8 days average stay 

and $1,046 in local spending. This translates to $275 in spending per day and $92 per day per 

person. Thus, drawing additional 

tourism visitors outside winter has a 

significant impact on the local 

economy. The domestic traffic 

origin chart clearly shows the 

significant influx of tourists during 

the ski season (Q1). However, even outside of winter, Hayden-Steamboat Springs is still an 

inbound origin market with far more visitors with inbound origin travel than local residents with 

local origin outbound travel. Thus, new, non-winter air service will bring more tourism to the 

region and the economic impact of that new visitor local spending is significant. Every new nonwinter visitor to the region has a value of $92 per day in local spending.

Energy mining and utilities is another large sector with coal mining operation and a power plant 

operation. The Peabody mine and other nearby mines plus the power plant employ about 1,200.

Healthcare is another major local employer, anchored by the Yampa Valley Medical Center in 

Steamboat Springs and the Memorial Hospital in Craig. Combined local employment for the two 

medical centers and associated satellite offices totals nearly 1,000.
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 5

HISTORICAL AND CURRENT AIR SERVICE

Traffic History – Driven by growing energy mining in the Yampa Valley and the opening of the 

Steamboat Ski Resort in the early 1960s, the various communities of the Valley came together 

and built the current Airport in 1966. Frontier Airlines CV-580 services to Denver began on 

October 9, 1966. In 1986 the runway was extended to allow for use by 757-size aircraft. With the 

longer runway, the community began to recruit additional airline service, with winter season 

service being the easiest to gain and support. The results of the growth in winter season service 

were initially dramatic with traffic peaking at 269,610 O&D passengers in 2007.

The chart shows traffic history for the past 21 years with year-over-year, five year, and total 

period change for domestic, international and total traffic. Airport traffic peaked in 2007 and 

has declined significantly since. 2013 total traffic is down 32% from 2008 and 19% from 1993.

Service History – While United air service to Denver has been the only year-round constant, the 

Community has recruited a wide variety of winter season nonstop services, some that have 

succeeded and some that have failed, sometimes simply due to airline hub closures or 

realignments.

Year Traffic Traffic Total

1993 215,100 Y/Y 5 Year Period 4,720 Y/Y 5 Year Period 219,820 Y/Y 5 Year Period

1994 171,560 -20.2% 4,680 -0.8% 176,240 -19.8%

1995 161,320 -6.0% 3,420 -26.9% 164,740 -6.5%

1996 178,980 10.9% 4,530 32.5% 183,510 11.4%

1997 201,120 12.4% -6.5% 6,440 42.2% 36.4% 207,560 13.1% -5.6%

1998 199,760 -0.7% 5,430 -15.7% 205,190 -1.1%

1999 201,540 0.9% 4,660 -14.2% 206,200 0.5%

2000 211,060 4.7% 4,250 -8.8% 215,310 4.4%

2001 189,360 -10.3% 3,560 -16.2% 192,920 -10.4%

2002 202,470 6.9% 0.7% 3,030 -14.9% -53.0% 205,500 6.5% -1.0%

2003 197,720 -2.3% 3,080 1.7% 200,800 -2.3%

2004 230,820 16.7% 3,940 27.9% 234,760 16.9%

2005 242,420 5.0% 5,290 34.3% 247,710 5.5%

2006 246,200 1.6% 5,580 5.5% 251,780 1.6%

2007 262,730 6.7% 29.8% 6,880 23.3% 127.1% 269,610 7.1% 31.2%

2008 254,540 -3.1% 7,560 9.9% 262,100 -2.8%

2009 229,800 -9.7% 4,760 -37.0% 234,560 -10.5%

2010 206,750 -10.0% 6,320 32.8% 213,070 -9.2%

2011 203,370 -1.6% 4,810 -23.9% 208,180 -2.3%

2012 189,910 -6.6% -27.7% -11.7% 5,130 6.7% -25.4% 8.7% 195,040 -6.3% -27.7% -11.3%

2013 172,800 -9.0% -32.1% -19.7% 5,380 4.9% -28.8% 14.0% 178,180 -8.6% -32.0% -18.9%

Percent Change Percent Change Percent Change 

DOMESTIC O&D 1993 - 2013 INTERNATIONAL O&D 1993 - 2013 TOTAL O&D 1993 - 2013
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 6

Community recruiting efforts, airline availability of equipment during the slow first quarter, and 

the dramatic draw of the Steamboat Ski Resort have enabled Hayden-Steamboat Springs to 

support a variety of winter season air services. The Atlanta, Chicago, Dallas, Denver, Houston 

and Minneapolis winter services are daily. The other winter routes are weekend only.

However, the 21-year summary of Airport air service paints a clear picture of capacity decline. 

2013 total seats are down 17% from 2012, down 36% from 2008 and down 16% from 1993. Flight 

frequency has also declined as equipment gauge has increased, consistent with national trends.

City 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Atlanta X X X X X X X X X X

Chicago X X X X X X X X X X X X X X X X X X X X X

Cincinnati X X

Cleveland X X X

Dallas X X X X X X X X X X X X X X X X X X X X X

Denver X X X X X X X X X X X X X X X X X X X X X

Houston X X X X X X X X X X X X X X X X X X X X X

Los Angeles X X X X X X X X X X X

Minneapolis X X X X X X X X X X X X X X X X X X X X X

New York LGA X X X X

New York EWR X X X X X X X X X X X X X X X X X X X X X

New York JFK X X

Raleigh X X

St. Louis X X X X X X

Salt Lake City X X X X X X X X

San Francisco X X

Seattle X

HDN NONSTOP ROUTE AIR SERVICE SUMMARY: 1993 - 2013

Year round Winter

Year Seats Flights Seats/Flt

1993 316,782 Y/Y 5 Year Period 3,020 Y/Y 5 Year Period 104.9 Y/Y 5 Year Period

1994 287,467 -9.3% 2,846 -5.8% 101.0 -3.7%

1995 266,412 -7.3% 2,504 -12.0% 106.4 5.3%

1996 271,494 1.9% 5,316 112.3% 51.1 -52.0%

1997 292,130 7.6% -7.8% 4,325 -18.6% 43.2% 67.5 32.3% -35.6%

1998 285,553 -2.3% 2,953 -31.7% 96.7 43.2%

1999 325,309 13.9% 4,183 41.7% 77.8 -19.6%

2000 337,982 3.9% 4,111 -1.7% 82.2 5.7%

2001 287,539 -14.9% 2,883 -29.9% 99.7 21.3%

2002 315,588 9.8% 8.0% 3,581 24.2% -17.2% 88.1 -11.6% 30.5%

2003 305,422 -3.2% 3,398 -5.1% 89.9 2.0%

2004 355,603 16.4% 4,374 28.7% 81.3 -9.5%

2005 366,974 3.2% 4,753 8.7% 77.2 -5.0%

2006 349,198 -4.8% 4,906 3.2% 71.2 -7.8%

2007 396,419 13.5% 25.6% 5,193 5.8% 45.0% 76.3 7.2% -13.4%

2008 418,462 5.6% 4,738 -8.8% 88.3 15.7%

2009 381,877 -8.7% 4,048 -14.6% 94.3 6.8%

2010 339,180 -11.2% 3,494 -13.7% 97.1 2.9%

2011 313,496 -7.6% 3,632 3.9% 86.3 -11.1%

2012 323,582 3.2% -18.4% 3,570 -1.7% -31.3% 90.6 5.0% 18.7%

2013 267,376 -17.4% -36.1% -15.6% 2,825 -20.9% -40.4% -6.5% 94.6 4.4% 7.2% -9.8%

Percent Change Percent Change Percent Change 

AIRLINE SEATS 1993 - 2013 AIRLINE FLIGHTS 1993 - 2013 SEATS PER FLIGHT 1993 - 2013
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 7

Change

Year Q1 Q2 Q1 to Q2 Q3 Q4

2010 $155.52 $214.59 38.0% $211.38 $205.80

2011 $170.69 $218.68 28.1% $250.74 $228.98

2012 $178.20 $241.56 35.6% $237.89 $242.96

2013 $195.88 $258.86 32.2% $269.20 $269.21

HDN DOMESTIC AVERAGE FARE 

While the Hayden-Steamboat 

Springs air service map may look 

impressive, all the dashed lines 

represent seasonal service and that 

service to Seattle, Los Angeles, and 

New York City is weekend only.

While Steamboat Springs is a 

seasonal market (winter and 

summer peaks) the drop-off in local 

air service from winter to other 

seasons, even peak summer, is 

dramatic.

The Airport seat capacity by month chart below illustrates the dramatic drop in air service that 

occurs each year when the snow melts.

A startling 63% of annual capacity is offered in first quarter and 74% of capacity is offered in 

those months plus December. In some months of the April to mid-December period, the Airport 

sees one flight per day. During this eight-month period each year all service is via one airline.

Another significant “snow melt” shift occurs each year with domestic average fares. During the 

April to mid-December period (the second, third and fourth quarter of each year), HaydenSteamboat Springs domestic market fares increase dramatically. For the past four years market 

fares have gone up an average of 33.5% each 

second quarter, held those high levels for the 

balance of the year, and gone back down 

significantly the following first quarter. The clear 

driver of this consistent annual shift is competition, or 

the lack of it, during the second, third and fourth quarters of the year. 

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

2011 66,292 59,770 65,842 12,452 6,784 11,018 12,326 12,000 8,784 8,582 7,516 42,130 313,496

2012 67,384 64,148 68,591 10,878 7,440 10,806 15,244 14,178 10,868 11,107 8,054 34,884 323,582

2013 58,079 54,384 62,264 6,220 4,381 8,174 12,799 10,290 8,838 8,563 4,832 28,552 267,376

Average 63,918 59,434 65,566 9,850 6,202 9,999 13,456 12,156 9,497 9,417 6,801 35,189 301,485

Percent 21.2% 19.7% 21.7% 3.3% 2.1% 3.3% 4.5% 4.0% 3.1% 3.1% 2.3% 11.7% 100.0%

AIRPORT SEAT CAPACITY BY MONTH 2011 - 2013
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 8

AIR SERVICE NEEDS AND DEFICIENCIES

The Yampa Valley Regional Airport serves a large and isolated area of Northwest Colorado. The 

area has a vibrant economy powered by tourism, energy mining and healthcare, three 

economic sectors that rely upon air transportation. The Airport and its community partners have 

worked diligently for two decades to recruit additional air service, finding the most success 

recruiting winter season service.

Spring, summer and fall air service at the Airport has been of limited frequency and 

characterized by very high air fares. This lack of air service outside of winter is detrimental to the 

long term economic health of the region.

Every spring when the snow melts and the Ski Resort closes, most Yampa Valley Regional Airport 

air service melts away as well.

Over the past three years the Airport has averaged fewer than four flights a day, in and out,

during both May and November. Much of April also has very reduced service since the monthly 

average is inflated by end of ski season flights the first week of that month. In 2013 the Airport 

had only one arrival and one departure per day for much of April and all of May and 

November. Even summer service is limited, relative to the spike in tourist visitor demand, with a 

June – August average of only just over 6 flights per day in and out.

One-flight a day schedules, or even two-flight a day schedules, are not adequate for the needs 

of the Hayden-Steamboat Springs region. This is particularly true for both locally based and 

inbound origin business travelers, given the region’s significant isolation from alternative airports.

Furthermore, from April to mid-December Hayden-Steamboat Springs is a one airline market and 

airfares increase dramatically during that monopoly period each year. During the April to midDecember period Hayden-Steamboat Springs domestic fares are well above those of Denver 

(primary leakage point) and are among the highest for all Colorado mountain markets. 

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total

2011 622 555 606 156 120 214 246 240 174 171 118 410 3,632

2012 622 588 636 160 128 170 238 240 168 164 116 340 3,570

2013 538 502 568 92 62 114 181 144 126 121 67 310 2,825

Total 1,782 1,645 1,810 408 310 498 665 624 468 456 301 1,060 10,027

Average/Month 594 548 603 136 103 166 222 208 156 152 100 353 3342

Average/Per Day 19.2 19.6 19.5 4.5 3.3 5.5 7.2 6.7 5.2 4.9 3.3 11.4 9.2

HDN AIRLINE FLIGHTS BY MONTH AND PER DAY: 2011 - 2013 
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 9

Airline competition at Denver International is intense with United, Southwest and Frontier each 

having significant flight operations and service. So it certainly makes sense that the HaydenSteamboat Springs domestic market fares would be higher than those at Denver. 

The chart shows that over the past four years Hayden-Steamboat Springs domestic fares during 

first quarter have been between 17% and 30% higher than fares at Denver. However, during 

second quarter, third quarter and fourth quarter Hayden-Steamboat Springs fares are between 

46% and 77% higher than at Denver. Not only is the percentage of differential high, but the 

actual dollar difference reached $117 in fourth quarter of 2013. On a round trip basis, with taxes 

and fees added in, that is at least a $270 round trip difference.

A comparison of quarterly average domestic fares with Hayden-Steamboat Springs’s peer group 

of six other Colorado mountain airports again illustrates that outside of winter, HaydenSteamboat Springs residents and area visitors pay some of the highest fares in the region. 

During first quarter each year HDN has the lowest average fare in the group. However, during 

the balance of the year Hayden-Steamboat Springs average rank is 3rd highest among the 

group of seven, with Aspen consistently first by a wide margin.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Market Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare

HDN $156 $215 $211 $206 $171 $219 $251 $229 $178 $242 $238 $243 $196 $259 $269 $269

DEN $133 $138 $141 $140 $146 $150 $150 $153 $149 $156 $151 $150 $150 $154 $160 $153

Difference

Amount $23 $77 $71 $66 $25 $69 $100 $76 $29 $86 $87 $93 $46 $105 $110 $117

Percent 17% 56% 50% 47% 17% 46% 67% 49% 19% 55% 57% 62% 31% 69% 69% 77%

COMPARISON OF DOMESTIC AIRFARE BY QUARTER: HDN & DEN

2010 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

City Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare Fare

ASE $205 $213 $237 $229 $231 $235 $251 $278 $236 $272 $291 $296 $280 $279 $314 $331

DRO $166 $172 $177 $183 $182 $180 $200 $214 $200 $218 $201 $191 $182 $198 $211 $215

EGE $184 $211 $185 $225 $216 $271 $231 $261 $227 $262 $232 $263 $237 $239 $234 $288

GJT $169 $179 $174 $187 $193 $198 $203 $212 $203 $214 $212 $217 $219 $210 $219 $211

GUC $161 $198 $200 $208 $186 $230 $227 $232 $194 $226 $260 $223 $202 $246 $292 $262

HDN $156 $215 $211 $209 $171 $219 $251 $229 $178 $242 $238 $243 $196 $259 $272 $269

MTJ $179 $204 $200 $204 $195 $233 $220 $243 $224 $250 $260 $240 $210 $246 $271 $264

3rd 6th 2nd 3rd 3rd

HDN AVERAGE DOMESTIC FARE RANKING AMONG PEER GROUP: 2010 TO 2013 BY QUARTER

2010 2011 2012 2013

5th 1st 5th 7th 4th 4th HDN 

Rank 7th 1st 2nd 3rd 7th
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 10

Clearly Hayden-Steamboat Springs air service is deficient outside of winter, during second, third 

and fourth quarters. Frequency of air service drops to three, two or even, for several months, one 

trip per day. Domestic airfares soar to be some of the highest in Colorado, with the airfare gap 

with Denver (primary leakage point) exceeding $115 one-way net or about $270 gross round trip 

with taxes and fees added in.

The result is about 8.5 months per year of substandard air service with often non-competitive 

pricing. And the result of that ongoing service situation is very high traffic leakage. In 2013 the 

Yampa Valley Regional Airport commissioned a comprehensive study of resident true market 

demand and leakage to other airports during second, third and fourth quarters.

The study focused exclusively on resident or local origin traffic and excluded first quarter, when 

Hayden-Steamboat Springs has significant air service options. The study period was 2012 Q4 plus 

2013 Q2 and Q3. The study utilized ARC data, DOT data and a macroeconomic formula to 

calculate true resident and local origin traffic demand for the three quarter period. The study 

area was the 20-zip-code region surrounding the Airport, encompassing all principal cities and 

towns in the five-county area. The study excluded some zip codes of eastern Grand County due 

to proximity and ease of drive from those areas to Denver.

Key findings of the study include:

 The catchment area generated 152 local origin PDEW during the three quarters sampled

 Only 17% of domestic passengers use the HDN Airport, 77% drive to Denver for air service

 Passengers using HDN paid an average fare of $247, those using Denver paid $152

 United captured 37% of leaked traffic at Denver an average fare of $242

 Southwest captured 24% of leaked traffic at Denver at an average fare of $133

 Frontier captured 15% of leaked traffic at Denver at an average fare of $129

The study’s data clearly support several conclusions:

1) Market average fares are so high that significant numbers of local residents prefer the 

three hour plus drive to Denver over two mountain passes to using the local airport.

2) Even local business travelers, who would typically be less price sensitive, are driving to 

Denver to fly United and pay about the same fare ($242) as they pay at HDN ($247).
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 11

The chart below illustrates the geographic demand of the leaked traffic defined by the study.

TRUE MARKET STUDY DEMAND DISTRIBUTION FOR HAYDEN-STAMBOAT SPRINGS

Clearly, market traffic demand has an eastward orientation. Three of the top ten leakage 

markets are in Texas (DFW, IAH and AUS). New York/Newark is the third largest leakage market, 

Minneapolis is the fourth, Boston is the seventh, Atlanta the eighth, Washington/Baltimore ninth 

and Chicago tenth.

HDN YEAR 2013 DOMESTIC O&D BY DESTINATION 

This eastward market 

orientation is confirmed by 

measuring existing O&D 

traffic flow by region of 

the country.

The map at right shows 

actual 2013 domestic 

traffic by destination, with 

each destination bubble 

sized to show relative 

traffic demand.

The cities of Minneapolis, 

Chicago and Atlanta, the 
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 12

states of Texas and Florida and the broader Northeast region are significant traffic generators for 

Hayden-Steamboat Springs.

Taking the visual display of actual traffic and converting it to data further clarifies that HaydenSteamboat Springs domestic non-winter traffic flows are eastward oriented.

This chart breaks down Hayden-Steamboat Springs traffic by region of the country. The period 

measured is 2013 Q2, Q3 and Q4, the non-winter period.

A full 81.2% of domestic traffic and 82.3% of domestic revenue was exchanged with the 

northeast, southeast, south central or Midwest regions. Only 18.8% of traffic and 17.7% of revenue 

was exchanged with the mountain or far west regions of the country.

Average fares paid for travel involving the northeast ($284), southeast ($286), south central 

($261) and Midwest ($247) are very high, for an intermountain leisure destination market like 

Hayden-Steamboat Springs.

 

In summary, Hayden-Steamboat Springs air service is completely inadequate in the April to midDecember time frame each year. Flight frequency falls to as low as one flight per day during 

several months of that period. Even the June – August summer period, when inbound tourism 

traffic is strong, averages only three flights per day. And, most importantly, during this 8.5 month 

period the market only receives service from one carrier and airfares soar in that monopoly 

environment.

Our market badly needs two air service improvements during some or all of the 8.5 month nonwinter period, a second airline to provide airfare competition, and a new eastbound hub as an 

alternative to Denver. 

Region Traffic Percent Avg Fare Revenue Percent

Northeast 15,120 25.2% $284 $4,297,255 26.7%

Southeast 11,300 18.8% $286 $3,229,427 20.1%

South Central 12,610 21.0% $261 $3,287,553 20.5%

Midwest 9,740 16.2% $247 $2,409,676 15.0%

Mountain 2,600 4.3% $215 $559,650 3.5%

Far West 8,730 14.5% $261 $2,281,847 14.2%

Total 60,100 100.0% $267 $16,065,409 100.0%

HAYDEN DOMESTIC O&D BY REGION

Year 2013 Q2 Q3 Q4
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 13

The residents and businesses of the Hayden-Steamboat Springs area, working through the Local 

Marketing District (LMD) organization, have worked hard for many years to expand local air 

service. The most success in that undertaking has happened during winter. This is due to the 

support of the Steamboat Ski Resort, the powerful draw of that leisure venue, and the fact that 

network airlines have more seasonal service capability and flexibility in the mid-December to 

early April time frame than they have in most other periods of the year.

The LMD has not found an airline, other than year-round incumbent United, willing to commit 

scarce peak spring summer season aircraft and crew resources to the Hayden-Steamboat 

Springs market outside of the ski season. We believe that a significant minimum revenue 

guarantee (MRG) program, combining local non-airport cash funding with SCASD Grant 

funding, can change that viewpoint at American Airlines or at Delta Air Lines.

The detailed market research we have performed and have summarized in this report suggests 

that eastbound service to a network carrier hub would have an excellent potential for initial and 

long term success. Our primary air carrier/route combination targets will be American Airlines to 

Chicago ORD or Dallas/Fort Worth DFW or Delta Air Lines to Minneapolis MSP or Atlanta ATL.

American Airlines Options – American Airlines has large connecting hub operations at both 

Chicago ORD and at Dallas/Fort Worth DFW. The carrier operates from both hubs to HaydenSteamboat Springs during the mid-December to early April ski season. We believe that grant 

supported American non-winter service to either of Chicago or Dallas/Fort Worth would be 

successful.

For both markets, we envision up to a 37-week annual operating time frame from early April to 

mid-December, service of five flights per week and the use of 76-seat E175 equipment. Chicago 

service would connect on to up to 60 cities that currently (Q2, Q3 and Q4 of 2013) generate 

26,620 HDN O&D at $273. The leakage study estimated 3,732 leaked local Chicago O&D and 

156,000 leaked domestic connect O&D that could connect via American and Chicago ORD.

Dallas service would have the same service pattern, equipment and time frame. Dallas service 

could connect onward to 89 cities that currently (Q2, Q3, Q4 of 2013) generate 40,660 O&D at 

AIR SERVICE IMPROVEMENT PLAN AND IMPLEMENTATION TIMELINE
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 14

$272. Leakage is estimated at 3,869 local and 190,000 connect O&D that could connect via 

American and Dallas/Fort Worth DFW.

AMERICAN AIRLINES ONLINE CONNECTIONS VIA CHICAGO AND DALLAS 

Service to Chicago would provide nonstop service from Hayden-Steamboat Springs to its 3rd

largest non-winter O&D destination and its 10th largest leakage market.

The service is forecast to generate 22,095 O&D the first year (37 weeks of operation from early 

April to mid-December). With a seat count of 28,120, this would forecast as a 78.6% load factor. 

The first year is forecast to incur a modest segment operating loss.

Service to Dallas/Fort Worth would provide Hayden-Steamboat Springs with nonstop service to its 

2nd largest non-winter O&D market and its 9th largest leakage market.

Traffic Revenue Seg Rev

Distance 1,009 Local O&D 2,550 Local Share 70%

Equipment E175 Fare $232 Local O&D 1,785 1,785 $383,775 $383,775

Seats 76 Fare $215

Blk Time 2.9 Leaked Local 3,723 Recapture Share 50%

Frequency 5 x week Fare $181 Recapture O&D 1,862 1,862 $413,253 $413,253

Duration 37 weeks Fare $222

Segments 370 Conx O&D 26,620 Conx O&D Share 40% 10,648 $2,715,240 $1,819,211

Seats 28,120 Fare $273 Fare $255

Blk Hours 1,073.0 Leaked Conx 156,000 Conx Recapture Share 5% 7,800 $1,497,600 $1,003,392

Cost/Hour $3,800 Fare $182 Fare $192

Seg Cost $4,077,400 22,095 $5,009,868 $3,619,631

-$457,769

Operational Forecast Traffic/Reveue Metrics American ORD Traffic/Revenue

AMERICAN AIRLINES FIRST YEAR CHICAGO SEGMENT FORECAST

FIRST YEAR PROFIT/LOSS
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 15

This service is forecast to generate 21,245 O&D the first year (37 weeks of operation from early 

April to mid-December). With a seat count of 28,120 this would forecast as a 75.5% load factor. 

The first year is forecast to generate a modest segment operating profit.

Delta Air Lines Options – Delta Air Lines has large connecting hub operations at both Minneapolis 

and at Atlanta. The carrier operates from both hubs to Hayden-Steamboat Springs during the 

mid-December to early April ski season.

DELTA AIR LINES CONNECTIONS VIA ATLANTA AND MINNEAPOLIS

For both markets, we envision up to a 37-week annual operating time frame from early April to 

mid-December, service to be 3 to 5 times per week and the use of 76-seat E175 equipment 

Traffic Revenue Seg Rev

Distance 769 Local O&D 2,760 Local Share 70%

Equipment E175 Fare $235 Local O&D 1,932 1,932 $415,380 $415,380

Seats 76 Fare $215

Blk Time 2.2 Leaked Local 3,869 Recapture Share 40%

Frequency 5 x week Fare $153 Recapture O&D 1,548 1,548 $280,116 $280,116

Duration 37 weeks Fare $181

Segments 370 Conx O&D 40,660 Conx O&D Share 25% 10,165 $2,592,075 $1,736,690

Seats 28,120 Fare $272 Fare $255

Blk Hours 814.0 Leaked Conx 190,000 Conx Recapture Share 4% 7,600 $1,459,200 $977,664

Cost/Hour $3,900 Fare $179 Fare $192

Seg Cost $3,174,600 21,245 $4,746,771 $3,409,850

$235,250

AMERICAN AIRLINES FIRST YEAR DALLAS/FORT WORTH SEGMENT FORECAST

Operational Forecast Traffic/Reveue Metrics American DFW Traffic/Revenue

FIRST YEAR PROFIT/LOSS
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 16

(MSP) or 124-seat 737/700s (ATL). Minneapolis service would 5 times weekly and would connect 

on to up to 64 cities that currently (Q2, Q3 and Q4 of 2013) generate 30,650 HDN O&D at $273. 

The leakage study estimated 5,402 leaked Minneapolis local O&D and 151,000 leaked domestic 

connect O&D that could connect via Delta and Minneapolis. Atlanta service would be three 

times weekly over the same time frame. Atlanta service could connect onward to 73 cities that 

currently (Q2, Q3, Q4 of 2013) generate 24,590 O&D at $286. Leakage is estimated at 4,964 local 

and 145,000 connect O&D that could connect via Atlanta.

Service to Minneapolis would provide nonstop service from Hayden-Steamboat Springs to its 16th

largest non-winter O&D destination and its 4th largest leakage market.

This service is forecast to generate 21,182 O&D the first year (37 weeks of operation from early 

April to mid-December). With a seat count of 28,120 this would forecast as a 75.3% load factor. 

The first year is forecast to generate a modest segment operating profit.

Service to Atlanta would provide nonstop service from Hayden-Steamboat Springs to its 5th 

largest non-winter O&D destination and its 8th largest leakage market.

Traffic Revenue Seg Rev

Distance 774 Local O&D 1,030 Local Share 70%

Equipment E175 Fare $239 Local O&D 721 721 $155,015 $155,015

Seats 76 Fare $215

Blk Time 2.25 Leaked Local 5,402 Recapture Share 40%

Frequency 5 x week Fare $153 Recapture O&D 2,161 2,161 $412,713 $412,713

Duration 37 weeks Fare $191

Segments 370 Conx O&D 30,650 Conx O&D Share 40% 12,260 $3,126,300 $2,094,621

Seats 28,120 Fare $273 Fare $255

Blk Hours 832.5 Leaked Conx 151,000 Conx Recapture Share 4% 6,040 $1,159,680 $776,986

Cost/Hour $3,900 Fare $179 Fare $192

Seg Cost $3,246,750 21,182 $4,853,708 $3,439,334

$192,584

DELTA AIR LINES FIRST YEAR MINNEAPOLIS SEGMENT FORECAST

Operational Forecast Traffic/Reveue Metrics Delta MSP Traffic/Revenue

FIRST YEAR PROFIT/LOSS

Traffic Revenue Seg Rev

Distance 1,340 Local O&D 1,890 Local Share 75%

Equipment 737/7 Fare $233 Local O&D 1,418 1,418 $311,850 $311,850

Seats 124 Fare $220

Blk Time 3.1 Leaked Local 4,964 Recapture Share 60%

Frequency 3 x week Fare $161 Recapture O&D 2,978 2,978 $598,658 $598,658

Duration 37 weeks Fare $201

Segments 222 Conx O&D 24,590 Conx O&D Share 45% 11,066 $2,821,703 $2,116,277

Seats 27,528 Fare $286 Fare $255

Blk Hours 688.2 Leaked Conx 145,000 Conx Recapture Share 6% 8,700 $1,670,400 $1,119,168

Cost/Hour $7,400 Fare $179 Fare $192

Seg Cost $5,092,680 24,161 $5,402,611 $4,145,953

-$946,727

Operational Forecast Traffic/Reveue Metrics Delta ATL Traffic/Revenue

FIRST YEAR PROFIT/LOSS

DELTA AIR LINES FIRST YEAR ATLANTA SEGMENT FORECAST
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 17

Milestone Date

SCASD Grant Award Q3 2014

Grant Agreement with DOT Q3 2014

Meet with Target Airline Q4 2014

Conclude MRG New Service Agreement Q1 2015

Develop Detailed New Service Marketing Plan Q1 2015

Announce New Service starting June, 2015 Q1 2015

Begin New Route Marketing per Marketing Plan Q1 2015

Submit First Grant Status Report to DOT Q1 2015

New Service Inaugural June, 2015

Second Grant Status Report to DOT Q2 2015

Monitor Advance Bookings; Adjust Marketing as 

needed

Balance of 2015 

and 2016

Close Grant on or Before Q1 2017

HAYDEN SCASD GRANT IMPLEMENTATION TIMELINE

Submit Quarterly Grant Status Reports to DOT Balance of 2015 

and 2016

This service is forecast to generate 24,161 O&D the first year (37 weeks of operation from early 

April to mid-December). With a seat count of 27,528 this would forecast as an 87.8% load factor. 

The first year is forecast to generate a significant segment operating loss.

The challenges of market entry for a second airline in the Hayden-Steamboat Springs market are 

significant. All major hubs for American and Delta are at least 770 miles from HDN, which means 

a significant per segment operating cost for any second carrier market entry. Furthermore, 

United Airlines has the advantage of having the ability to operate multiple daily frequencies to 

nearby Denver if they choose, and Denver is close enough and is a large enough hub 

operation, to permit United to sell service Omni-directional via that hub.

We have offered four distinct second-carrier non-winter new service options. Those options, per 

the cursory forecasts herein, appear to have different levels of viability and ultimate success. It is 

clear that the risks for either American or Delta to become year round service providers in the 

Hayden-Steamboat Springs market are significant but manageable, with community and SCASD 

Grant supported MRG funding.

Implementation Timeline – Our LMD has, 

via the relationships that the Steamboat 

Ski & Resort Company has developed, a 

strong relationship with both American 

Airlines and Delta Air Lines. We have 

discussed the concept of service beyond 

the winter period with both carriers. We 

are confident that, with Grant supported 

MRG funding in hand, we will be able to 

secure second carrier service in the nonwinter period beginning in 2015.

The timeline at the right is based on two assumptions: Grant award and contract execution in 

third quarter of 2014, and conclusion of new service MRG agreement in first quarter of 2015. 

Based on those assumptions, Grant supported service will begin in Spring or Summer of 2015 and 

the Grant should be ready for closure in 2017. Due to the challenges of recruiting new air 

service we do request a three year timespan on this proposed Grant, to allow for delays in 

carrier recruiting.
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 18

Source Amount Cash %

DOT $400,000 53.3%

LMD and Public/Private Partners $300,000 40.0%

LMD Marketing Funding $50,000 6.7%

Total Cash Funding $750,000

HAYDEN SCASD GRANT FUNDING PLAN Public Sector Partners Private Sector Partners

Yampa Valley Regional Airport Steamboat Springs Ski Resort

Local Marketing District Catamount Ranch and Club

City of Steamboat Springs Twenty Mile Coal Company

Town of Hayden Atlantic Aviaton

City of Craig Avis/Budget Rental Car

Routt County Hertz Rental Car

Steamboat Springs Chamber Enterprise Rental Car

Routt County Econ Dev Coop Go Alpine

Moffat County

HAYDEN - STEAMBOAT SPRINGS PUBLIC PRIVATE PARTERSHIP

PUBLIC PRIVATE PARTNERSHIP

Hayden – Steamboat Springs local government bodies, private sector businesses and local 

citizens are very active, via civic groups, in strengthening the local economy while preserving 

the quality of life that makes the region such a special place.

Oversight of ongoing air service recruitment has been the responsibility of the Local Marketing 

District (LMD), a five member elected body. The purpose and duties of the LMD Board is to 

provide funding for air service/marketing with agreed upon participation from the Steamboat Ski 

& Resort Corporation and surrounding municipalities. The LMD works closely with the Steamboat 

Ski & Resort Corporation to determine the best air service recruitment strategies and tactics. The 

LMD Board meets eight times per year. 

The Airport and Routt County and their community 

partners, including the City of Steamboat Springs, 

Steamboat Ski & Resort Corporation, the 

Steamboat Springs Chamber Resort Association

and the LMD, have a well thought out plan for 

recruiting a second carrier, but some community financial support of that carrier will be needed 

to bring in new competition.

FUNDING PROPOSAL

The Yampa Valley Regional Airport and its broad cross-section of community partners propose 

to begin to address the glaring non-winter air service deficiencies by recruiting a second nonwinter air carrier to provide flight and price competition for existing year-round United service. 

Grant funding of $400,000, combined with 

$350,000 in non-airport local cash match, will 

provide for a $750,000 MRG fund with which 

to recruit a second network carrier to 

provide non-winter service at HDN. The total 

of $350,000 in local funding will come from both the LMD funds (which are supported by a local 

bed tax) and from local public and private sector parties interested in supporting this important 

local initiative. The $350,000 will consist of $300,000 in MRG funding and $50,000, over two years, 

in marketing support directly assigned to the recruited carrier and its non-winter services.
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 19

AIR SERVICE DEVELOPMENT EFFORTS AND AIR SERVICE MARKETING

Air Service Development – The LMD, through the Steamboat Ski & Resort Corporation, has 

regular contact with both its incumbent carriers (United year-round, American and Delta 

seasonally) and with potential new entrant carriers, such as Alaska Air which began weekendonly winter season service from Seattle last December.

While the details of these meetings are a confidential matter between the Ski Corporation and 

the Airline, the Ski Corporation meets with our airline partners at least twice a year and has 

phone or email contact at least monthly, if not weekly. The Ski Corporation does report back to 

the LMD Board in executive session on the contacts with our Airline partners.

Air Service Marketing – The LMD has, for many years, marketed Hayden – Steamboat Springs air 

services, primarily through cooperative marketing efforts with the Ski Corporation. The limited 

nature of spring, summer and fall service has meant that, historically, most marketing efforts 

have been focused on supporting the much larger winter season service pattern.

The marketing of the Hayden–Steamboat Springs to tourists is a year-round activity. Considerable 

marketing resources are allocated to key visitor markets, including Texas, Illinois, Minnesota and 

the southeast United States. This effort utilizes a broad range of media venues:

 Print publications with strong regional distribution among targeted audiences

 Electronic marketing and eMarketing newsletters using the Ski Corporation’s data base

 Radio promotions on stations that serve targeted audiences in select cities

 Websites are designed to attract and retain initial interest

 We are rapidly expanding our social media participation and efforts

 

Currently, air service marketing to our local population is limited, simply because, outside of 

winter, our local air service is limited. Media costs are low in northwest Colorado and our resident 

population is modest. New non-winter air service will be fully supported locally at low cost using 

print, radio, billboard and our local email data base. We anticipate working closely with the new 

year-round air carrier on marketing efforts. Our community is close-knit and, via a wide range of 

channels, we are very confident in our ability to make sure every citizen knows about improved 

non-winter air service, even before that service makes its first flight.
Proposal of Yampa Valley Regional Airport • Hayden-Steamboat Springs, Colorado • July 2014 20

PREVIOUS GRANT AWARD AND CONCLUSION

Previous Grant – In 2004, the second year of the SCASD program, the Yampa Valley Regional 

Airport and its community partners applied for, and were awarded, a SCASD Grant. The Grant’s 

goals and objectives, as stated on page three of the Grant contract, were:

 Restore adequate year-round air access to Northwest Colorado

 Add competitive scheduled airline service at Steamboat Springs during the fall of the 

year to ensure year-round service.

The Airport and its community partners used the Grant to foster Delta Air Lines regional jet service 

to Salt Lake City during periods outside of winter starting in September of 2005 and running, with 

shutdowns each spring, until September of 2009. All Delta SLC service ended after the winter of 

2009 – 2010. The Grant was closed in September 15, 2008. The 2004 Grant was typical of the initial 

years of the SCASD program, with a very broad goals and objectives statement. As the program 

has matured Grant applicants tend to submit proposals that are more focused and narrow in 

scope and the Department tends to award grants that have a more narrow focus.

This 2014 Grant application is narrowly focused on improved non-winter air service by recruiting 

a second carrier to provide new eastbound service during that period of the year. Whereas the 

first Grant was used for Salt Lake City service, this Grant will be used for service in an easterly 

direction. Whereas the first Grant targeted “adding competitive scheduled airline 

service...during the fall of the year” this Grant is targeting the entire non-winter period. We 

believe that this Grant application is materially different than the 2004 Grant.

Conclusion – The deficiencies of air service at Hayden-Steamboat Springs are clear and are 

precisely the type of air service situation for which the SCASD Grant program was designed.

 Market fares during the non-winter period are well above the national average, over 

$100 one way more than at Denver and among the highest at all Colorado mountain 

airports.

 The Airport and its community partners place a very high priority on addressing this issue 

and will match DOT Grant funding at almost a dollar for dollar ratio.

 The community has had, and will continue to have, a powerful public-private partnership 

devoted to air service improvement, led by the Local Marketing District.

 The proposed new service will have clear local economic benefit.

 We believe we will be able to use the Grant in a timely manner.

July 31, 2014

Mr. Anthony Foxx,

Secretary of Transportation

United States Department of Transportation

1200 New Jersey Avenue, Southeast

Washington D.C. 20590

Reference: DOT-OST-2014-0113 Small Community Air Service Development Program 2014

Dear Mr. Secretary,

I am writing this letter to express my very strong support for the Small Community Air Service 

Development (SCASD) Grant application of the Yampa Valley Regional Airport, which serves Hayden and 

Steamboat Springs and much of northwestern Colorado.

As Chairman of the Local Marketing District, which collects and directs funds for air service, I continue to 

have significant concerns and frustrations by the poor air service this airport and NW Colorado receives 

outside of the winter ski season. As the Grant application notes, only one airline offers air service from 

April to December and flight frequencies are limited and airfares are extremely high, well above national 

averages, well above those at Denver and often well above those at other Colorado airports as well.

The Airport’s Grant application is for a modest $400,000, matched by $300,000 in local funding. The 

purpose of the Grant is to recruit a second airline to provide service outside of winter, and thus provide 

some schedule options and airfare competition in northwest Colorado during that period.

The Airport and Routt County and their community partners, including the City of Steamboat Springs, 

Steamboat Ski & Resort Corporation, the Steamboat Springs Chamber Resort Association and the Local 

Marketing District, have a well thought out plan for recruiting a second carrier, but some community 

financial support of that carrier will be needed to bring in new competition.

This seems to me to be a perfect use for the SCASD Grant program, as it is intended to aid smaller cities 

with higher fares and limited competition.

I urge you to give this Grant application your fullest consideration.

Sincerely,

Charles Porter

Chairman, Steamboat Springs Local Marketing District

1310 Robert E Lee Ln

Steamboat Springs, CO 80487

 CPorter

COLORADO

HOUSE OF REPRESENTATIVES

State Capitol

Denver

80203

State Representative Committee Member:

DIANE MITSCH BUSH Agriculture, Livestock, 

Colorado State Capitol Natural Resources 

HD26 Eagle & Routt

200 East Colfax Avenue, Room 271 Transportation & Energy 

Denver, Colorado 80203 Committee

Office: 303-866-2923 

Email: diane.mitschbush.house@state.co.us 

July 31, 2014 

Mr. Anthony Foxx, 

Secretary of Transportation 

United States Department of Transportation 

1200 New Jersey Avenue, Southeast 

Washington D.C. 20590 

Reference: DOT-OST-2014-0113 Small Community Air Service Development Program 2014 

Dear Mr. Secretary, 

I am writing this letter to express my very strong support for the Small Community Air Service Development (SCASD) Grant application of the Yampa Valley Regional Airport, which serves Hayden and 

Steamboat Springs and much of northwestern Colorado. 

I am alarmed by the poor air service this airport and region receives outside of the winter ski season. 

As the Grant application notes, only one airline offers air service from April to December and flight 

frequencies are limited and airfares are extremely high, well above national averages, well above 

those at Denver and often well above those at other Colorado airports as well. 

The Airport’s Grant application is for a modest $300,000, matched by $300,000 in local funding. The 

purpose of the Grant is to recruit a second airline to provide service outside of winter, and thus provide 

some schedule options and airfare competition in northwest Colorado during that period. 

The Airport and Routt County and their community partners, including the City of Steamboat Springs, 

Steamboat Ski & Resort Corporation, the Steamboat Springs Chamber Resort Association and the LMD, 

have a well thought out plan for recruiting a second carrier, but some community financial support of 

that carrier will be needed to bring in new competition. 

This seems to me to be a perfect use for the SCASD Grant program, as it is intended to aid smaller 

cities with higher fares and limited competition. 

I urge you to give this Grant application your fullest consideration and I wish to be advised of the ultimate disposition of this Grant application. 

Sincerely,

Colorado State Representative House District 26 Diane Mitsch Bush