# Proposal under the Small Community Air Service Development Program For

County of Ventura - Oxnard Airport

Docket DOT-OST-2010-0124

Sponsor: County of Ventura – Oxnard Airport

DUNS Number: 066691122

Congressional District Code: CA-023

Contact: Mr. Todd McNamee, AAE Director of Airports County of Ventura 555 Airport Way Camarillo, CA 93010 (805) 388-4200 todd.mcnamee@ventura.org

Due Date: August 27, 2010

Small Community Air Service Development Program County of Ventura – Oxnard Airport ProposalAPPENDIX B Page 1

Order: 2010-7-16

Docket DOT-OST-2010-0124

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET OST-2010-0124

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form SF424 on http://www.grants.gov

A. APPLICANT INFORMATION: (C HECK ALL THAT APPLY)

Not a Consortium Interstate Cons ortium Intrastate Consortium

Community now receives EAS subsidy X

Community previous ly received a Small Community Grant in 2004.

B. PUBLIC/PRIVATE PARTNERSHIP

Public: Private: 1. County of Ventura 1. Economic Development Corporation of Oxnard 2. Oxnard Airport Authority 2. Oxnard Chamber of Commerce 3. City of Oxnard 3. Oxnard Convention and Visitors Bureau 4. City of Ventura 4. Ve ntura Chamber of Commerce 5. Congresswoman Lois Capps 5. Vent ura Visitors and Convention Bureau 6. Assemblyman Pedro Nava 6. Gold Coast Broadcasting

7. California Senator Fran Pavl ey 7. KCLU Radio

C. PROJECT PROPOSAL

Project Proposal: (Che ck All That Apply)

X Marketing Upgrade Aircraft X New Route

Personnel Increase Frequency X Lower Fares

X Travel Bank X Service Restoration ___ Subsidy ___ Surface Transport X Regional Service ___ Other (Specify)

X Revenue Guarantee X Launch New Carrier

___ Start Up Cost Offset First Competitive Service Study Secure Additional Carrier

Small Community Air Service Development Program ii

Ventura County-Oxnard Airport ProposalD. EXISTING LANDING AIDS AT LOCAL AIRPORT:

X Full ILS X Outer/Middle Marker X Published Instrument Approach

X Localizer X Other (Specify) _GPS__

E. PROJECT COST:

1. Federal Amount Requested: $520,000

2. State cash financial contribution 0

3. Local Cash Financial Contribution: 3a. Airport cash funds: 50,000 3b. Non-Airport cash funds: 50,000
3c, Total local cash funds: 100,000 4. TOTAL CASH FUNDING $620,000

5. Local funds contributed from al ready existing Programs or projects included in line 3c

6. Local funds contributed from new commitments 100,000

or new resources included in line 3c.

7. Airport In-kind contribution: 7a. Advertising 50,000 7b. Airport Landing Fees a nd Rents 90,000

8. Other In-kind contribution: 8a. Travel Bank Ticket Program 250,000

9. TOTAL IN-KIND CONTRIBUTION $390,000

10. TOTAL PROJECT COST $1,010,000

F. ENPLANEMENTS:

2000 33,999 2005 22,865
2001 34,696 2006 23,717
2002 22,829 2007 21,473
2003 21,889 2008 16,036
2004 23,836 2009 11,959

G. IS THIS APPLICATION SUBJECT TO RE VIEW BY STATE UNDER EXECUTIVE ORDER

PROCESS? Program is not covered by E.O. 12372.

H. IS THE APPLICANT DELI NQUENT ON ANY FEDERAL DEBT? No

Small Community Air Service Development Program iii

Ventura County-Oxnard Airport ProposalSmall Community Air Service Development Program iv

Ventura County-Oxnard Airport Proposal 

### Table of Contents

Subject Page

Key Letters of Support 1

Introduction 6 Primary Objectives 7 Executive Summary 7
General Information 10 Our Community Team 10 Our Airport 10

Plan is Consistent with DOT Priorities 11 Unique Circumstances 11 Air Service and Passenger Data 11 History 11 Recently Terminated Service 12 High Airfares 13 Top Markets for Oxnard Airport 13 True Passengers 14 Passenger Forecast 15 Flight Forecast and Schedule 16 Connecting Opportunities at SJC 17 Proposed Fares 17 Estimated Profitability 18 Ventura County Community Profile 18

Economic Data 19 Comparison to Similar Markets 21

Action Plan 22

Plan Elements 22 Marketing Program 22 Advertising and Media Selection 22 Waiver of Airport Fees 23 Advance Ticket Sales Program 23

Revenue Guarantees for Horizon 23 Total Incentive Package 24
Economic Stimulus 24

Performance Measurement and Schedule 25

Measurement 25
Schedule 25 Community Support 25 DOT Requirements 26

Financial Controls 26

Return on Investment 26 DOT Exit Strategy 27

Alternate Plan 27

Assurances 27 Air Service Survey 28 Additional Letters of Support 36

### PROPOSAL OF VENTURA COUNTY/OXNARD AIRPORT

Introduction

The County of Ventura is seeking a Sm all Community Air Service Development Program grant to address the loss of air servic e at Oxnard Airport. The Oxnard Airport

has had continuous air service since 19 46 and on June 8, 2010, United Express terminated its service leaving Oxnard Airpor t with no scheduled passenger air service. United Express operated 30 seat EMB-120 turbo prop aircraft between Oxnard and Los Angeles International Airport.

Prior to this action by United and United Express, the County of Ventura had been actively recruiting new service to other hub airports in the West. Now with the termination of service by United Express, our need is more critical. Over the past seven months of this year, meetings and discuss ions have been held with American, American Eagle, Allegiant, Delta, Fr ontier, Horizon, Sky West, United, and US Airways. Reception by the airlines has been good, but all of the airlines are requesting an incentive package that includes a revenue guarantee, local market ing, and a reduction in airport fees.

In order to create an attractive incentive package, the County of Ventura and Oxnard Airport will need a grant of $520,000 from the Department of Transportation under the Small Community program. These funds will be match with $240,000 of local cash and in-kind funding and a travel bank program of $250,000 resulting in a total incentive package of $1,010,000.

Ventura County is located nor th of the Los Angeles metropolitan area and has a large population of over 820,000 people. In terms of population, it is now the largest unserved airport market in the United States. Vent ura County had a study developed

in 2009 to determine the true size of the air passenger market for Ventura County. The Study reviewed the entire Los Angeles metr opolitan market and found that over 900,000 airline passengers from Ventura County were using other air ports due to poor service and extremely high fares at Oxnard Airport.

In 2008, passengers in the top 15 Oxnard Airport markets paid an average fare that was 74.4% higher than fares at LAX to the sa me 15 markets and 69.7% higher than fares at Burbank Airport to the same 15 markets. When compared to Palm Springs and Carlsbad, other commuter type markets in s outhern California, the fares to the major domestic markets at Oxnard Airport were 62% higher than Palm Springs Airport and 125% higher than Carls bad/Palomar Airport.

Even though Ventura County loo ks close to Burbank and LAX on a map, the drive time to these two airports is unpredictable and can be extraordinarily long. It is quite common that passengers from Ventura County traveling on early morning flights at Burbank or LAX spend the night before at a hotel near one of these airports. Oxnard

Small Community Air Service Development Program 6
Ventura County-Oxnard Airport ProposalAirport is very convenient to the Vent ura County population and is a wonderful alternative to the congested free ways in the Los Angeles area.



### Primary Objectives of this Proposal

Objectives for the Program:

• Connect Oxnard Airport back into the National Transportation System

• Replace the departed United Express high fare commuter ope ration to LAX with

better service and lower fare s by Horizon Air to SJC

• Provide air service to the San Franc isco Bay Area, Sacramento, and to the

Pacific Northwest

• Connect at a convenient airport (SJC ) to over thirty other markets

• Save local passengers from having to drive to Burbank or LAX

• Use this as a stepping stone to recruit addi tional airlines to other hub airports

Means to Achieve Objectives:

• Continue discussions with Horizon Ai r about entering the OXR-SJC market

• Develop risk mitigation and incentiv e package to meet airline needs

• Work towards launch of service to Sa n Jose with beyond service to Sacramento and Portland, and connecting service to other SJC markets in the next 12 to 24

months

Course of Action to Support Means:

• Provide start-up cost and revenue guarantee for airline

• Initiate Marketing Plan to support new service

• Develop local Ventura County ad ca mpaign to publicize new air service

• Contract with local businesses to join travel bank and make ticket commitments

• Work with airline in publishing govern ment and military fares to capture large government and military mark et in Ventura County

• Provide local sales and prom otions support for Horizon Air



### Executive Summary

Oxnard Airport is situated along the coast in Ventura County. Geographically, it is located halfway between Los Angeles and Santa Barbara near the famous Pacific Coast Highway (US 101). Th e Oxnard Airport serves a primary market of 820,000 people in Ventura Count y and is convenient to resident s in southern Santa Barbara County and the Malibu area of Los Angeles County. The total market area is close to

one million residents.

Small Community Air Service Development Program 7
Ventura County-Oxnard Airport ProposalOxnard Airport has had continuous air se rvice since 1946 until June 8, 2010 when United Express terminated its co mmuter service to LAX. The current situation is not acceptable to the residents of Ventura Coun ty. The Ventura County community is a growing, diverse area that needs airline service to connect its populace to the nation’s air transportation system and to assist ot hers who serve and visit the area from throughout the United States and abroad.

Economic growth in Ventur a County has shown a strong increase over the past ten years and has outpaced California nearly every year during that period of time. This is due to the County having an in flux of businesses from Los Angeles County moving to Ventura County to improve the “quality of life”. The County has had a net inflow of migrants from other southern California counties that have supported the growth in business and the businesses in the County.

Oxnard Airport Catchment Area

Since 1998, the population has increased 11.6% and the number of households has increased by 13.7%. The greatest economic impact has been the growth in Retail Sales. Ventura County has seen Retail Sales increase by almost 150% during this period. The business market is strong a nd diverse in Ventura County. Community

leaders will continue to support existing employers whil e attracting new businesses that

will contribute to the we ll being of the area.

The U.S. Military, es pecially the Navy, plays a big ro le in the economy of Ventura County and for passenger demand at the Ox nard Airport. The Naval Air Weapons Station, Point Mugu, operates and maintains station facilities and provides support
services for the Naval Air Warfare Cent er, Weapons Division an d assigned tenants and

activities. These services include air terminal , air traffic control, firefighting and crash crews, and an outlying landing faci lity at San Nicolas Island.

Small Community Air Service Development Program 8
Ventura County-Oxnard Airport ProposalLocal passenger use of Oxnard Ai rport has been declining over the past eight years. In 2001, the Oxnard Airport accounted for 68,000 total passengers. By 2009, the total passengers had decreased to 24,800 passengers. This was due to a reduction in the number of flights from 56 flig hts per week to 21 flights per week and a drastic increase in the fares to the key connecting markets. Oxnard Airport has the highest average fare in southern California. A Study of Passen ger Bookings for Ventura County for 2009 showed that over 900,000 Ventura County ar ea passengers used air service at other airports. The poor air service and the hi gh fares were responsible for a passenger leakage and diversion of 97.5%, o ne of the highest in the nation.

OXNARD AIRPORT PASSENGERS

Enplaned Deplaned Total

Year Passengers Passengers Passengers

2000 33,999 32,095 66,094 2001 34,696 33,326 68,022 2002 22,829 21,544 44,373 2003 21,889 20,290 42,179 2004 23,836 22,778 46,614 2005 22,865 21,307 44,172 2006 23,717 21,568 45,285

2007 21,473 20,928 42,401

2008 16,036 15,968 32,004 2009 11,959 12,865 24,824

Passengers at Oxnard Airport have declined by 40%. This is due to an increase in

airfares and a reduction of service. The average fare for the top fifteen markets has increased by 44% and the average number of weekly seats has declined 60% during this ten year period.

The management for Ventura Co unty Department of Airports has been actively seeking new air service over the past 12 months. This activity has included having a consulting firm develop a Passenger Forecast and Air Se rvice Analysis for Oxnard Airport. Booking data from this analysi s indicated that the air pass enger market was very large and there was a strong demand for service to hub airports in the West. Airline presentation packages were developed and discussions were held with American Airlines, American Eagle, Allegiant, Aaron Ai r, Delta, Frontier, Horizon, Sky West, United, US Airways, and Viscount.

Of these airlines, Horizon Air showed the greates t interest in servi ng Oxnard Airport with nonstop service to San Jose and having the flights continue on to the Pacific Northwest

and Sacramento. Additional discussions have been held recently with Horizon Air and they requested that Ventura County/Oxnard Airport devel op an incentive package that

will reduce their risk of enterin g a new market. Horizon is requesting funds for flight guarantees, advertising and marketing, and ai rport landing fee and terminal rental fee waivers for the first year. They also want the local community to step up and establish a

Small Community Air Service Development Program 9
Ventura County-Oxnard Airport Proposaltravel bank program and commit to the pre- purchase of tickets on Horizon to support

the new route.

To meet this request, Ventur a County/Oxnard Airport is re questing a grant of $520,000 from the Department of Tr ansportation to be matched with $100,000 in cash, $50,000 in barter advertising, $90,000 in airport fee waiv ers, and an initial trav el bank of $250,000. The total incentive package for the first year is $1,010,000.



### General Information for the Proposal

Our Community Team

The Director of Airports is working wi th various businesses, local government departments, the Oxnard, Cama rillo, and Ventura Chambers of Commerce, the Oxnard Economic Development Corporat ion, the Oxnard and Ventura Visitors Bureau, and the U.S. Navy in developing a public-private pa rtnership to provide community support for the development of better air service.

Our Airport

The Oxnard Airport has had scheduled passenger ai r service for over sixty years. The passenger terminal can accommodate three airl ines. The Airport meets FAA Part 139 requirements. Passenger screening is currently provided by TSA. The Airport meets all FAA avionics requirements. It can easily handle the EMB- 120 service on its 5,963 foot runway. In order to accomm odate regional jets, the displa ced landing threshold will be relocated 924 feet to the east providing 5,5 00 feet of landing distance. The County of Ventura is currently conducting the NEPA/CE QA environment review to relocate the displaced threshold under a FA A Airport Improvement grant.

Small Community Air Service Development Program 10
Ventura County-Oxnard Airport ProposalOur Plan Is Consistent With DOT Priorities

This project to attract new air service with lower airfares at Oxnard Airport is consistent with the priorities established by the Secret ary of Transportation. The Plan to have Horizon Air operate the 76 seat Q-400 aircraft with two daily round trip flights between Oxnard and San Jose with fares competit ive to Burbank and LAX is an excellent opportunity for Oxnard Airport and the residents of Ventura Count y. This air service will allow Oxnard Airport to again have acce ss to the National Transportation System.

This project will benefit local businesses, higher education institutions, the general public, and the U.S. Navy. It will also provide an excellent alternative to the difficult and highly congested two-hour av erage drive on the Highway 10 1 to either the Burbank Airport or Los Angeles International Airport

.

Unique Circumstances

The major highway connecting Ventura County to Los Angeles Inter national Airport and Burbank Airport is U.S. Highw ay 101 or commonly referred to as the Ventura Freeway. The intersection of the Ventura Freeway wit h the San Diego Freeway (I-405) is the heaviest traffic point in the United States an d this is the access route for Ventura County residents to LAX. Trips to LAX and Burbank Airport are costly in terms of pollution, congestion and dollars. These trips, take tw o to two and one half hours at most peak times of the day because of highway congesti on. The alternate to U.S. Highway 101 is State Route 1. This is a very scenic rout e that takes the traveler along the Pacific Ocean through various neighborhoods and citi es including Malibu and Santa Monica. This route is slow and very conges ted in the summer and on weekends.



### Air Service and Passengers at Oxnard Airport

History

Oxnard Airport had scheduled air service from 1946 to June 8, 2010. Prior to the Airline Deregulation Act of 1978, the Oxnard Airport had service up the coast to San Francisco (SFO) and Sacramento (SMF) and service to Los Angeles International Airport (LAX). Hughes Air West operated forty-four seat F-27 turbo prop aircraft. In the late seventies, the air service was provided by Golden West Airlines operating 19 seat DHC-6 Twin Otter aircraft to Los Angeles International Airport and to San Diego. The airline upgraded to DHC-7 aircraft in 1981. Golden West Airlines ceased operations in April of 1984 due to a labor dispute.

In 1984, West Air Commuter began serving Oxnar d Airport to Los Angeles International Airport as United Express. The airline operated 19 seat Embraer Banderante aircraft. West Air upgraded the fleet to 30 seat EMB-120 ai rcraft and sold out to Mesa Airlines in

Small Community Air Service Development Program 11
Ventura County-Oxnard Airport Proposalthe late 1980’s. Oxnard Airport has had air service over the past twenty years by American Eagle, America West Express, and a couple of start up commuter airlines

.

Air service has been limited at Oxnard Airpor t over the years due to the location of Oxnard High School at the east end of the runway and having a runway that was artificially limited for landing due to its displaced threshold. The High School closed its doors about 10 years ago and built a new facilit y in another location distant from the airport. The landing limit on the airport runway is being elimi nated at the current time. The Airport is working with the FAA to extend the threshold 950 feet to the East giving the Airport 5,953 feet for take off and 5,533 feet for landing. This will eliminate any weight penalties for any of the regional jets. The Horizon Air Q-400 aircraft can easily operate at Oxnard Air port without the airport runway upgrades.

HISTORICAL AIR SERVICE AT OXNARD AIRPORT

Year Airline Aircraft Flights/Wk

. Seats/Wk

.

2000 UA* EM-120 42 1,260 2001 UA* EM-120 35 1,050
2001 HP* DCH-8 14 420 2002 UA* EM-120 34 1,020 2003 UA* EM-120 35 1,050 2004 UA* EM-120 35 1,050 2005 UA* EM-120 34 1,020

2006 UA* EM-120 31 930

2007 UA* EM-120 26 780

2008 UA* EM-120 25 750

2009 UA* EM-120 25 750

2010 UA* EM-120 21 630

Source: Official Airline Guide, summer editions

Recently Terminated Air Service

United Express operated by Sky West Airli nes has been operating at Oxnard for a number of years. The airline operated 30 seat EMB-120 aircraft between Oxnard and LAX. This service provided online conn ecting passengers to United Airlines and interline passengers to the other airlines at LAX. As part of their overall agreement with Sky West to operate as United Express, United Airlines wa s paying Sky We st a flight guarantee for each flight flown between Oxnard and LAX and Sky West received a bonus for on time performance and ot her operational factors.

Earlier this year, United Airlines changed this relationship and no longer guaranteed the flights flown by Sky West on this route. S ky West could continue to operate the route on a pro-rate basis with United Airlines sh aring the revenue on a set formula with Sky West absorbing all of the oper ating expenses. According to Sky West, this arrangement was not economically feasible an d the airline decided to terminat e service on this route.

Small Community Air Service Development Program 12
Ventura County-Oxnard Airport ProposalDiscussions and a meeting has been held with Sky West regarding new regional jet

service between Oxnard and San Francisco and between Oxnard and Las Vegas. Sky West indicated that their goal was to term inate the EMB-120 from the United Express operation and greatly reduce thei r operations as United Expre ss on the West Coast. On August 3, 2010, it was announced that Sky West was moving ahead to acquire Express Jet Holdings. This will certainly detract Sky West from any expansion in markets like Oxnard for a period of time.

High Airfares

As mentioned earlier, the Ventura County air travelers are paying very high fares to use the air service at Oxnard Airport. These high airfares have pushed air travelers to drive to either Burbank Airport or Los Angeles International Airport to originate their flights. In 2000, the average airfares for the top fifteen Oxnard Airpor t passenger markets were 19% higher than the combined average for Burbank and LAX to the same fifteen markets. By 2008, the averag e airfares for the top fifteen Oxnard Airport passenger markets were 72% higher than the combined av erage for Burbank and LAX to the same fifteen markets. The average airfares for th e top fifteen Oxnard ma rkets have increased 44% at Oxnard Airport since 2000 while t he average airfares at LAX have increased 5.7% and the average fares at Bu rbank have decreased 6.0%.

This situation will change with the implementation of air serv ice by Horizon Air to San

Jose. Horizon Air has indicated that its fa res will be very compet itive with the Burbank and LAX fares to San Jose and beyond to the Pacific Northwest. This has been the

case for Horizon Air in other California markets.

COMPARISON OF AVERAGE FARES FOR TOP 15 OXNARD MARKETS

OXR Greater

Year Oxnard Los Angeles Burbank than LAX/BUR

2000 $166.28 $130.03 $150.41 19.5%

2004 $173.09 $108.75 $114.84 54.9%

2009 $239.87 $137.57 $141.38 72.0%

Top Markets for Oxnard Airport

There were 24,824 total passengers in 2009 fo r Oxnard Airport. T he top fifteen markets

accounted for 53.4% of the total market. Even though all of the flights are to Los Angeles International Airpor t, only 2.0% of the passenger s were OXR-LAX passengers. 98% of the passengers are connecting to and fr om other markets. The U.S. Navy, other military service organizations, and various military contractor s are the major travelers for the market. Many of the top markets are military and govern ment oriented –

Small Community Air Service Development Program 13
Ventura County-Oxnard Airport ProposalWashington D.C., San Francisco, Seattle, Norfolk, Honolulu, Colorado Springs, Sacramento, and San Jose. Li sted below are the top mark ets for Oxnard Airport in

2009.

TOP PASSENGER MARKETS FOR OXNARD AIRPORT - 2009

Market Passengers

San Francisco 2,190 Washington D.C. 1,610 Denver 1,610 Chicago 1,390 Seattle/Tacoma 1,020

Tucson 800 Las Vegas 730

Norfolk 580 Colorado Springs 580

Phoenix 580

Honolulu 510 New York City 510

Sacramento 440

Portland 365
San Jose 365 Total 13,280

True Passengers for Ventura County

It was obvious that the low fr equency of flights and high fare s were causing the Ventura County air traveler to fly out of airports other than Oxnard Airport. In the Summer of 2009, Ventura County Department of Airports retained a consultant to analyze the passenger bookings for the residents of Vent ura County. All Ventura County air passengers for the twelve months ending June 30, 2009 that used other airports in the Los Angeles metropolitan area were calculated. The bookings exceeded 900,000 for this 12 month period. The total outbound and return passengers resulting from these bookings are estimated to be 1.8 million. Assuming that the Ventura County passengers are equal to 50% of the total market, then we are looking at a true passenger market over 3.6 million annually.

Small Community Air Service Development Program 14
Ventura County-Oxnard Airport ProposalTOP PASSENGER BOOKING MARKETS

FOR VENTURA COUNTY – 2009

Market Via LAX Via Bur Total

New York JFK 17,198 2,362 19,560 Las Vegas 11,752 6,180 17,932 San Francisco 14,037 1,136 15,173 Dallas/Ft. Worth 9,364 3,458 12,822 Chicago – ORD 12,024 377 12,401 Denver 10,712 1,066 11,778 Seattle/Tacoma 7,513 2,104 9,617 Phoenix 5,346 3,512 8,858 Orlando 8,376 397 8,773 Atlanta 8,192 321 8,513 San Jose 4,131 4,182 8,313 Newark 6,721 755 7,476 Oakland 2,800 4,580 7,380 Washington DC 6,593 401 6,994 Portland 3,194 3,378 6,572 Total 162,162

Source: MIDT outbound passenger bookings for Ventura County zip codes

The true passenger bookings for the top 15 markets are 162,162. When adjusted for these passengers to return to Ventura County and to include visitors to Ventura County, then the total O&D passenger total is appr oximately 650,000. This compares quite favorably to the 24,000 passengers t hat used Oxnard Air port in 2009. There is a very large passenger market and it needs air service.

Passenger Forecast for Horizon Air Service

The San Francisco Bay Area and the Pacific No rthwest markets of S eattle and Portland are in the top 15 passenger booking market s for Ventura County. The three San Francisco Bay Area airports account for 30,866 outbound pass enger bookings during the survey period. This equates to 123,5 00 origin and destinat ion passengers on an
annual basis. The Seattle and Portland markets accounted for 16,189 outbound passenger bookings during the survey period. This equates to 64,750 origin and destination passengers. The total for the San Francisco Bay Area and the two Pacific Northwest markets is 188,250 orig in and destination passengers.

Small Community Air Service Development Program 15
Ventura County-Oxnard Airport ProposalPASSENGER FORECAST FOR HORIZON AIR SERVICE

IN THE OXNARD – SAN JOSE MARKET

Outbound Annual Horizon Horizon

Market Passengers/Day Passengers Share Passengers

OXR-SJC 22.77 33,250 80% 26,600 OXR-SFO 41.56 60,690 40% 24,200

OXR-OAK 20.20 29,520 40% 11,800 Total Bay Area 123,460 62,600

OXR-PDX 18.00 26,290 25% 6,500 OXR-SMF 13.70 20,000 25% 5,000 OXR-SEA 26.34 38,470 25% 9,600

OXR-GEG 3.60 5,250 25% 1,300 Total Beyond Markets 90,010 22,400

Grand Total All Markets 213,470 85,000

This forecast shows that the passengers flown by Horizon Air will be less than 40% of the total market. This is a reasonable market share. Also, the base data for this forecast is the MIDT booked passenger data and does not include passengers who may have gone online and booked dire ctly with any of the air lines. This could be a significant number and will onl y increase the amount of pa ssengers who could use the

new air service.

Flight Forecast and Flight Schedule for Horizon Air

Based on the above forecast of passengers, it is estima ted that Horizon Air could provide two daily nonstop flights with 76 seat Q-400 aircraft between Oxnard Airport and San Jose International Airport. The l oad factor is estimated to be 75.7%.

Forecast Daily Annual Load

Market Passengers Aircraft Flights Seats Factor

OXR-SJC 85,000 Q-400 2 RT 110,960 76.6%

The nonstop distance between Oxnar d Airport and San Jose International Airport is 268 miles. Based on Horizon Air flights with the Q- 400 in markets of similar distance, it is
estimated that the block time for a Q-400 fl ight between Oxnard and San Jose will be 1:15. Since traffic patterns in California favo r an early morning flight from the south to the north, it is recommended that Horizon Air operate the following pattern and flight

schedule:

FLIGHT PATTERN FOR HORIZON

Oxnard – San Jose – Sacramento 1 Daily Round Trip Flight

Oxnard – San Jose – Portland 1 Daily Round Trip Flight

Small Community Air Service Development Program 16
Ventura County-Oxnard Airport ProposalThe proposed flight schedule will provide for one stop f lights between Oxnard and

Portland and between Oxnard a nd Sacramento. The departure and arrival times at San

Jose will allow for connections to Alaska and Horizon flights to Boise, Portland, Seattle, and Spokane.

PROPOSED FLIGHT SCHEDULE FOR HORIZON

Market Depart Arrive Aircraft Stops

Oxnard-San Jose 7:00 am 8:15 am Q-400 0 2:00 pm 3:15 pm Q-400 0

San Jose-Oxnard 12:10 pm 1:25 pm Q-400 0 6:55 pm 8:10 pm Q-400 0

Oxnard-Sacramento 7:00 am 9:25 am Q-400 1

Sacramento-Oxnard 5:40 pm 8:10 pm Q-400 1

Oxnard-Portland 2:00 pm 6:30 pm Q-400 1

Portland-Oxnard 9:30 am 1:25 pm Q-400 1

Connecting Opportunities at San Jose

The new Horizon Air service to San Jose wi ll definitely help Vent ura County passenger get connected to the Nationa l Air Transport System. T he proposed flight schedule connects to other airline flights at SJC to 23 nonstop markets and includes the following airports: Atlanta, Austin, Baltimore, Boise, Boston, Chicago O’Hare, Chicago Midway, Dallas/Ft. Worth, Denver, H onolulu, Houston, Kahului, Kona, Las Vegas, Minneapolis, New York City Kennedy, Phoenix , Portland, Reno, Sacramento, Salt Lake City, Seattle, and Spokane.

Proposed Fares for Oxnard

Horizon Air has told us that thei r fares in the new Oxnard markets will be comparable to the fares at Burbank Airport and Los A ngeles International Airport to the same markets. This will be very beneficial fo r the Ventura County market since they have been paying extremely high fares with t he United Express air service.

Small Community Air Service Development Program 17
Ventura County-Oxnard Airport ProposalCOMPARISON OF AVERAGE FARES - 2009

Market OXR BUR LAX

San Jose $120.15 $85.50 $85.47

Portland 177.82 136.82 138.80
Sacramento 148.18 88.74 90.63

Seattle 191.14 116.42 105.79

On the average, the Oxnard fare s with United Express in 2009 were 50% higher than the fares at Burbank and LAX. The lower Horizon fares will be very attractive to the Ventura County traveler.

Estimated Profitability for Horizon Air

Horizon Air has told us that based on their current cost, the total expense for a one way flight between Oxnard and San Jose is $4,400 per flight. Based on this expense and based on an average one way fare of $85.50 per passenger, the air line will need 75,134 passengers to breakeven for two daily round trip flights. This equat es to a 67.7% load

factor.

One of the key factors of this proposal is that the air service by Horizon Air can be profitable after the init ial operating losses in the first year . Listed below is an operating

forecast for Horizon Air fo r the second year of operati on. The amount requested by applicant in this application will cover the initial losses until the airline reaches

breakeven.

REVENUE AND EXPENSE FORECAST FOR HORIZON AIR

Passenger Forecast 85,000 Average Fare $85.50 Passenger Revenue $7,267,500

Other Revenue 145,350 Total Revenue $7,412,850 Number of Daily Flights 2 RT Number of Annual Flights 1,460 Cost per Flight $4,400 Total Expense $6,424,000 Estimated Operating Profit $ 988,850 Operating Margin 13.4%



### Ventura County Community Profile

The Ventura County market is now the largest market in the United States without passenger air service. The Ventura County community is a growing and diverse area

that needs airline service to connect to t he nation’s air transport system. Economic

Small Community Air Service Development Program 18
Ventura County-Oxnard Airport Proposalgrowth in Ventura County shown a strong increase over the past ten years and has outpaced California in every year during this time.

ECONOMIC GROWTH IN VENTURA COUNTY

1998 2008 Growth

Population 735,300 820,710 11.6% Households 233,600 265,550 13.7% Retail Sales (mil) $6,282 $15,631 148.9% Buying Income (mil) $12,383 $20,238 63.4% Retail Sales/Household $26,894 $58,877 119.0% Income/Household $53,012 $76,226 43.8% Population over 25 63.6% 63.5%

Household with Income Over $50,000 44.7% 60.1%

In 2008, Ventura County had a population of 820,700 with 265,550 households. Total retail sales for the County are $15.6 billio n or approximately $ 58,866 per household, one of the highest for the State. The effective buying income for the County is over $20 billion or $78,470 per household, one of the highest in the nat ion. Over 60% of the area households have an annual buying inco me in excess of $50,000.

The economic indicators for the Airport market area are higher than the average for the

State of California where the retail sales average is $48,213 per household, buying income averages $64,731 per household, and 47.9% of the total households have buying incomes in excess of $50,000. The table below compares economic data for Ventura County with Los Angeles County and Santa Barbara County.

COMPARISON OF ECONOMIC DATA

Retail Buying % Hshlds. County Population Households Sales/Hshld Income/Hshld over $50,000 (000) (000)

Ventura 820,700 265,550 $58,866 $78,470 60.1% Los Angeles 10,224,700 3,321,180 45,886 61,016 42.9% Santa Barbara 413,800 142,900 48,068 64,901 46.7%

Source: Survey of Buying Power, 2008

The Ventura County market has a much stronger economy than other markets in California that have frequent air service. Its retail sales, income, and households over $50,000 a year in income are far gr eater than the other markets.

Small Community Air Service Development Program 19
Ventura County-Oxnard Airport ProposalECONOMIC COMPARISON WITH OTHER CALIFORNIA MARKETS

Ventura Santa San Luis

County Fresno Monterey Barbara Obispo Bakersfield Population 820,710 1,071,041 420,218 413,810 263,430 812,050 Households 265,550 330,275 124,610 142,880 102,105 250,590 Retail Sales (mil) $15,631 $14,263 $6,163 $6,869 $4,543 $11,986 Buying Income (mil) $20,238 $16,289 $7,810 $9,274 $5,759 $12,034

Retail Sales/Hshld. $58,877 $43,195 $49,462 $48,075 $44,539 $47,944

Income/Hshld. $76,226 $49,310 $62,680 $64,907 $56,460 $48,136 Population Over 25 63.5% 58.9% 61.1% 61.9% 66.2% 59.3% Hshlds over $50,000 60.1% 35.1% 47.5% 46.7% 43.1% 35.4%

The business market is strong and diverse in Ventura County. Co mmunity leaders will continue to support existing employers wh ile attracting new businesses that will

contribute to the economic we ll being of the area.

MAJOR EMPLOYERS IN VENTURA COUNTY

Organization Location Employees Industry

US Navy Missile Base Pt. Mugu 11,800 Military AMGEN Thousand Oaks 10,000 Manufacturing County of Ventura Ventura 7,190 Government Bank of America Simi Valley 5,700 Finance Well Point Thousand Oaks 3,740 Finance US Navy Sea Bee’s Port Hueneme 2,600 Military Conejo School Dist. Thousand Oaks 2,450 Education Vons Markets County Wide 2,400 Retail Simi Valley Schools Simi Valley 2,370 Education Baxter Bio Science Westlake Village 1,000 Medical Farmers Insurance Simi Valley 1,000 Insurance St. John's Med. Ctr. Oxnard 1,000 Medical Premium Outlet Mall Camarillo 1,000 Retail Calif. State Univ. Camarillo 2,000 Education

Point Mugu is part of the Naval Air Wa rfare Center Weapons Division (NAWCWPNS), the Navy's full spectrum research, devel opment, test evaluation, and in-service engineering center for weapons systems associated with air warfare (except for antisubmarine warfare systems), missiles and missile subsystems, aircraft weapons integration and assigned airborne electroni c warfare systems. NAWCWPNS also maintains and operates the air, land, and sea Naval Western Test Range Complex (NWTRC). There are over 5,000 peopl e employed or based at Pt. Mugu.

Naval Construction Battalion Center Port Hueneme is the west coast homeport of the Navy’s Sea Bees. Port Hueneme, supports t he training and mobili zation requirements

Small Community Air Service Development Program 20
Ventura County-Oxnard Airport Proposalfor more than 2,600 active duty personn el. The CBC also o perates a 1,600-acre (6.5 km 2 ) naval base.

The 146th Airlift Wing (AW) of the California Air National Guard occupies 206 acres of fee-owned land adjacent to the Po int Mugu Naval Air Station, an active duty Navy flying

installation. The Channel Islands ANG Station is located 50 miles northwest of Los Angeles in Port Hueneme, Calif ornia. The mission of the 146th AW is to provide global military airlift capability to a full spectrum of state and federal agencies. The unit currently flies the C-130 Hercules. The 146th AW occupies two administrative, nine industrial, and four services buildings totaling approximat ely 345,191 square feet with 354 full-time personnel. A unit training dril l is conducted once a month and results in a surge of up to a total of 1,204 personnel

.
Ventura County is an ideal pl ace to both live and work. With this combination and our excellent quality of life, strong business climate, gr eat weather and wonderful beaches, Ventura County is an i deal match for air service. Air se rvice by Horizon Air at Oxnard Airport to San Jose and beyond is project ed to be successful and be supported by the whole community.

Comparison of Air Service to Similar Market Areas

When the Oxnard Airport market area is compar ed to other markets that are near major metropolitan market areas in the west, it is clear that the Ventura County community is not getting the air service that its population and economic buying power can support. The average size of the ei ght markets listed below is 580,780 people. These metro markets average air service to ten cities. T he average driving time to the closest major airport is 1.7 hours, well within the driving range from Oxnard Airpor t to either Burbank Airport or Los Angeles International Airport.

COMPARISON OF AIR SERVICE TO SIMILAR MARKETS

Cities Nearest Driving

Metro Area Population Served Airport Time

Ventura County 820,700 0 LAX 1.5 – 2.0 hrs

.

Colorado Springs 608,500 10 DEN 1.5 hrs. Monterey 420,200 5 SJC 1.5 hrs. Santa Barbara 413,800 9 LAX 2.0 hrs. Santa Rosa 476,500 4 SFO 1.5 hrs.

Tucson 984,800 21 PHX 2.0 hrs

. Average 580,800 10 1.7 hrs.

Without knowing more, it is tempting to suggest that the Ventura County Airport does not have the frequent air service because of it s proximity to the Bu rbank Airport and Los Angeles International Airport. The proximity to these air ports is deceiving not only based on road mileage, but also in terms of travel time. They are quite far versus comparable situations. Some examples in clude the Eugene Airport which is close to the Portland International Airpor t; the Monterey Airport whic h is close to the San Jose

Small Community Air Service Development Program 21
Ventura County-Oxnard Airport ProposalInternational Airport; the Santa Barbara Ai rport which is close to the Los Angeles International Airport and Burbank Airport; t he Tucson Airport which is close to the Phoenix Airport. All of these airports support frequent air servic e with multiple airlines.



### Action Plan

Plan Elements

The goal of the Action Plan is to address issues associated with the proposed new air service that are critical to the long-term succe ss of that service. In this regard, this action plan will address three areas for Ventura County/Oxnard Airport: (1) marketing, promotion, and support of new air service; (2) fee waivers by the Airport during the start-up phase; and (3) revenue guarant ees for initial air service.

Marketing Program

We believe that the success of a grant pr ogram is a strong marketing and advertising program. For this project, we are allocati ng $100,000 to advertising, marketing, and public relations. We have also included an advance purchase ticket program with a goal of $250,000

The target audience for outbound service will be the business traveler. The most effective way to contact this customer is by targeting: (1) the traveler; (2) the travel agent; (3) the corporate travel coordinator; and (4) the business associations. All of these targets can be approached utilizing the same advertising media - radio, newspaper, magazine, direct ma il, internet and billboards.

Advertising and Media Selection

The market in the Ventura County Airpor t market area can best be reached by using local newspaper, local radio, billboards, direct mail, tr ade publications, and online advertising via the internet. Upon review of the local medium for the market, the following is recommended.

ESTIMATED ADVERTISING EXPENDITURES FOR NEW AIR SERVICE

Cash In Kind Total Advertising Newspaper/Magazine $ 25,000 $25,000
Radio 20,000 20,000 Outdoor 10,000 20,000 30,000 Production 10,000 10,000
Internet/direct mail 5,000 10,000 15,000 Total $50,000 $50,000 $100,000

Small Community Air Service Development Program 22
Ventura County-Oxnard Airport ProposalWaiver of Airport Fees

An additional support program for new Horizon air service will be the waiver of landing fees, terminal rents, and common area fees for the first year of operation by the airline. The total amount is estimated to be $90,000.

CALCULATION OF FEES WAIVED FOR HORIZON

Landing Fees ($1.15 x 64.5 lbs gtow x 730 flts.) $54,147 Terminal Rents ($1.37 sq. ft. x 120 sq. ft. x 12 mo) 1,973 Office Space ($1.10 sq. ft. x 110 sq. ft. x 12 mo) 1,452 Baggage Make Up ($ .55 sq. ft. x 420 sq. ft. x 12 mo) 2,772 Overnight Parking ($1.15 x 64.5 lbs.gtwo x 365) 27,073

Other incidental 2,580 Total Fees Waived $90,000

As stated in their letter of support for this application, the Mineta S an Jose International Airport has a program in plac e that will allow them to waiv e airport fees for this new service for a period of one year.

Advance Ticket Sales Program

Another requested program by Horizon Air is the advance ticket sales program or travel

bank. The initial local incentive being offered for the new air service is a commitment to sell $250,000 of tickets in advance. The Chamber of Commerce wil l develop a program

with a local credit union or bank to escrow and manage the travel bank. The credit union or bank will accept deposits and issue debit cards that can be used for travel on

Horizon Air.

Revenue Guarantee for Horizon

Horizon Air has told the Director of Airpor ts for Ventura County that they will need an incentive program that inclu des a revenue guarantee to offset initial operating losses. Based on the analysis of our consultants, it is believed that a $570,000 revenue guarantee sufficient to support new air service. It is estimated that the two daily flights

between Oxnard and San Jose will generate 85,000 annual passengers. Based on actual average fares for 2009 for both Burbank and LAX to San Jose, it is estimated that the average one-way fare will be $86 (a fter start up promotions).

It is assumed that there will be a ramp up of passengers during th e start up period.

Load factors for Horizon are estimated to be 50% for the first month and increasing to 70% in the peak travel months. It should be noted that the lowest load factor that Horizon Air experienced at Sonoma County Ai rport was in the star t of the Las Vegas

service and this load factor was 63%. It is also assumed that the average fares will be

lower in the first two months as a motivator for air travel. The cost per flight was provided by management of Horizon Air for the Oxnard-San Jose market.

Small Community Air Service Development Program 23
Ventura County-Oxnard Airport ProposalESTIMATED REVENUE GUARANTEE TO CO VER INTIAL OPERATING LOSSES

FOR SERVICE BETWEEN OXNARD TO SAN JOSE

Monthly Est. Avg. Cost/ Profit

Month Flights Seats L.F. % Passengers Fare Revenue Flight Expense (Loss)

April 120 9,120 50% 4,560 $76 $346,560 $4,400 $528,000 ($181,440) May 124 9,424 55% 5,184 $81 419,904 4,400 545,600 ($125,696) June 120 9,120 60% 5,472 $86 470,592 4,400 528,000 ($57,408) July 124 9,424 65% 6,124 $86 526,664 4,400 545,600 ($18,936) Aug. 124 9,424 70% 6,596 $86 567,256 4,400 545,600 $21,656 Sept. 120 9,120 70% 6,384 $86 549,024 4,400 528,000 $21,024 Oct. 124 9,424 65% 6,124 $86 526,664 4,400 545,600 ($18,936) Nov. 120 9,120 60% 5,472 $86 470,592 4,400 528,000 ($57,408) Dec. 124 9,424 70% 6,596 $86 567,256 4,400 545,600 $21,656 Jan. 124 9,424 55% 5,184 $86 445,824 4,400 545,600 ($99,776) Feb. 112 8,512 60% 5,108 $86 439,288 4,400 492,800 ($53,512)

March 124 9,424 65% 6,125 $86 526,750 4,400 545,600 ($18,850)

1 st yr. total 1,460 110,960 68,929 $5,856,374 $6,424,000 ($567,626)

Total Revenue Guarantee Needed $570,000

Total Incentive Package

Combining the Small Community Air Servic e Development Program grant and local participation, the Ventura C ounty/Oxnard Airport will be able to offer a very complete incentive package for Horizon Air. The combined incentive package will create an extremely strong marketi ng component, flight guarantee program, and a strong public/private partnership. With the federal assistance the total incentive package that

would be offered for Horizon Air will be $1,010,000. Total Federal participation requested is $520,000 with the community providing $490,00 0, almost half of the incentive package. The local community will contribute 48. 5% of the total incentive package and 16 % of the total cash for the incentive package.

SUMMARY OF INCENTIVE PACKAGE FOR NEW AIR SERVICE

Federal Local Total

Flight Guarantee $520,000 50,000 $570,000 Marketing and Advertising 100,000 100,000 Airport Fees Waived 90,000 90,000 Pre-purchased tickets 250,000 250,000

Total $520,000 $490,000 $1,010,000

Economic Stimulus

A study developed for the Oxnard Airport indica ted that the total ec onomic benefits from the Airport totaled $80.2 million in 2008. Of this total air visitors spent $7.3 million in the airport service area. With the new Horizo n Air service, there will be an upgrade in the aircraft type, lower airfares, and beyond servic e to key markets. The Oxnard Airport should see passenger levels greater than thos e in 2000 and 2001. It is estimated that

Small Community Air Service Development Program 24
Ventura County-Oxnard Airport Proposalthe new Horizon Air flights will generate over $12 million in visitor spending in the Ventura County area plus create numerous new jobs.



### Performance Measurement and Schedule

Measurement

The performance of the proposed air servic e development projec t will be tracked on a monthly and quarterly basis. This tracki ng will measure the number of passengers carried by Horizon and the average fare for each market. The Airport will monitor the number of flights being provided, the aircraft type, and the amount of revenue guarantee paid out each month. This measurement of performance will be done by meeting with Horizon, reviewing advance schedules in t he Official Airline Guide, and reviewing

advance tariffs on file with t he Airline Tariff Publishers.

Ninety days prior to the start of new air serv ice to San Jose, the Ai rport will institute the marketing and advertising program. Daily and monthly load factors will be tracked to see the impact of the marketi ng program. If the passengers do not initially respond to the new air service, then the community will implement an additional marketing and advertising program to spike the market.

Schedule

It is the assumption of Ventura County/Oxnard Airport that the fo llowing schedule would be employed should the grant application be successful. Ventura County/Oxnard Airport commits to the completion of th e grant, if awarded, within two years of acceptance and will diligently pursue an earlier closeout. The following timeline is proposed:

PROPOSED TIMELINE

Item Estimated Date

Execution of Grant Agreements December 2010
Consultant Selection February 2011 Meet with Ventura County Parties March 2011 Start Negotiations with Horizon Air April 2011
Start Air Service On or before April 2012

Community Support

The County and the Airport have created a publ ic/private partnership to aid in our recruitment efforts. This public/private par tnership is composed of business leaders, educational institutions, association repr esentatives, medical representatives,

Small Community Air Service Development Program 25
Ventura County-Oxnard Airport Proposalcommunity organizations and residents. The leading organizations of the Partnership

are as follows: County of Ventura De partment of Airports Oxnard Airport City of Oxnard Economic Developm ent Corporation of Oxnard

Oxnard Convention and Visitors Bureau

Oxnard Chamber of Commerce City of Ventura

Ventura Visitors and Convention Bureau

Ventura Chamber of Commerce United States Navy Gold Coast Broadcasting

KCLU Radio



### DOT Requirements

Financial Controls

As the sponsor, Ventura Count y Department of Airports will be the responsible part for all fiscal matters and DOT repor ting requirements. As a pub lic entity the DOT can be assured that proper financial co ntrols are in place to guar antee that this grant will be

used in accordance with the agreement between the Count y and the DOT. Ventura County Department of Airports understands that t he grant is a reimbursable grant and the County will be responsible for program expenditures and will submit invoices and
contracts to the DOT for approval and reimbursement.

Return on Investment

Ventura County/Oxnard Airpor t has developed a cost effective and achievable strategy

to recruit new air service that will fill the void in air service at Oxnard Airport. This proposal utilizes proven methods and techniques for forecasting and developing a successful marketing program.

The Ventura County/Oxnard Airport is requesting $520,000 from the DOT and will contribute another $100,000 in cash. For this investment, the Oxnard Airport will again have air service with bigger aircraft going to a mo re popular market at lower fares. It is estimated that Horizon will achieve an operati ng profit of $988,000 in the second year of operation. Oxnard Airpor t will get $900,000 in fees from t he airline and it is estimated that the community will attract over $12 milli on in visitor spending as a direct impact

from the new air service.

Small Community Air Service Development Program 26
Ventura County-Oxnard Airport ProposalDOT Exit Strategy

The sponsor has developed this proposal as a one-time grant. The advertising and marketing will commence prior to the start of air service and continue for the first six months of air service. The revenue guarantee will be in place for the first 12 months. Based on the projections contained herein, Horizon will achieve a profit for the peak months in the first year and should experienc e a very profitable second year. This is very similar to the experienc e at Sonoma County Airport.

If Horizon Air does not meet the forecast number and the losses are greater than expected, the community can either come up with additional funds on its own to supplement the revenue guarant ee program or the airline may decide to terminate service. If this occurs, Ventura County /Oxnard Airport will go to the Alternative Plan.

Alternate Plan

If Horizon Air were to, due to unforeseen circumstances, not start air service or terminate air service at Oxnard Airport, th en Ventura County/Oxnard Airport will meet again with Sky West regarding service to San Francisco, US Airways regarding service to Phoenix, Allegiant Air regarding servic e to Las Vegas and Phoenix, and Delta Air Lines regarding service to Salt Lake City. Al l four airlines expressed interest in service at Oxnard Airport but were not ready to make a commitment at this time.

Assurances

The County of Ventura and the Oxnard Airpor t (hereinafter referred to as “Sponsor”) hereby provides the U.S. D epartment of Transportation wit h the following assurances:

• The Sponsor will comply with all of t he applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance, and use of t he Federal funds for this project.

• The Sponsor has the legal authority to apply for the Small Community Air Service Development Program gran t, and to finance and carry out the proposed project; that a resolution, mo tion, or similar action has been duly adopted or passed as an official act of the applicant’s governing body authorizing the filing of the applicat ion, including all understanding and assurances contained herein, and di recting and authorizing the person

identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required.

• The Sponsor has access to the funds av ailable for that portion of the project costs, which are not to be paid by the United States government. The Sponsor has sufficient funds to assure operating and main tenance of items funded under the grant agreement, wh ich it will own or control.

Small Community Air Service Development Program 27
Ventura County-Oxnard Airport ProposalSmall Community Air Service Development Program 28
Ventura County-Oxnard Airport Proposal • The Sponsor shall keep a ll project accounts and records which fully disclose the amount and disposition by the recipi ent of the proceeds of the grant, the total cost of the project in connection with which the grant is given or used,

and the amount or nature of t hat portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with an accounting system

that will facilitate an effective audit in accordance with the Single Audit Act of

1984.

• The Sponsor shall make available for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to the grant.

• The Sponsor will execute the proj ect in accordance with the approved program narrative contained in t he project application or with the modifications similarly approved.

• The Sponsor will furnish such periodic reports as required pertaining to the project and activities.

Air Service Survey

The County of Ventura, with the help of the Oxnard, Cama rillo, and Ventura Chambers of Commerce, conducted a surv ey of the business community to determine the support

for the Horizon air service and use of th e Oxnard airport, and ot her destinations of interest. The results of the survey were fa vorable. The survey confirmed the leakage problem with 92% of the respo ndents stating they use LAX or BUR instead of Oxnard, but 58% have used Oxnard at one time or another. Seventy percent of the respondents stated they travel to the San Francisco Bay area and 77% stated they would use the
Horizon service from Oxnard to San Jose if it were implemented. And at least 11% of the 414 respondents st ated they would participate in th e Travel Bank program and it is anticipated that number would increase should a grant be awarded for this proposed program. Several other destinat ions were surveyed and all were ranked similar to San Jose which would suggest that if the Oxnar d – San Jose service were implemented there would be demand for growth into other markets to serve additional destinations.