Legal sponsor: City of Klamath Falls, OR 

DUNS: 01-074-3300 

Tax ID: 93-6002195 

Congressional 

 District: OR 02 

Contact: John Longley

City of Klamath Falls, OR 

Airport Director 

6775 Arnold Avenue 

Klamath Falls, OR 97603 

Phone: (541) 883-5372 

Email: jlongley@flykfalls.com 

Docket #: DOT-OST-2011-0119 

Date: August 2, 2011 

Proposal Under 

the Small 

Community Air 

Service 

Development 

Program 
Table of Contents 

Page 

1. Summary ........................................................................................................ 1

2. Proposal Highlights....................................................................................... 2

3. Air Service Background ................................................................................ 5

 A. Klamath Falls Catchment Area ........................................................... 5

 B. Community Economics and Demographics ..................................... 6

 C. Proximity to a Competing Airport ...................................................... 7

 D. Factors Affecting Air Service ............................................................. 8

 E. Klamath Falls Airport Current Air Service ........................................ 8

 F. Klamath Falls Airport Historical Air Service ..................................... 9

 G. Past Air Service Development Efforts ............................................. 10

4. Air Service Needs and Deficiencies .......................................................... 12

 A. Passenger Diversion ......................................................................... 12

 B. High Airfares ...................................................................................... 12

 C. Underserved Market .......................................................................... 13

5. Strategic Plan ............................................................................................... 14

 A. Public-Private Partnership ................................................................ 14

 B. Project Goals ...................................................................................... 15

 C. Proposed Air Service ........................................................................ 16

 D. How This Project Differs from the SFO Service Project ................ 16

 E. Airline Participation ........................................................................... 17

 F. Analysis and Forecasts .................................................................... 17

 G. Action Plan ......................................................................................... 19

 H. Alternate Plan ..................................................................................... 20

 I. Funding and In-Kind Contributions ................................................. 20

6. Schedule and Monitoring ........................................................................... 22

 A. Action Plan Schedule ........................................................................ 22

 B. Milestones .......................................................................................... 22

 C. Monitoring Program .......................................................................... 23

 D. Project Continuation and Sustainability ......................................... 23

Attachment A. Airline & Community support ................................................ 24
Section 1 

Summary 

Page 1

1. Summary 

The Klamath Falls community served by the Klamath Falls Airport in southern Oregon is underserved to 

top destination markets and is overpriced compared to similar communities. Since Horizon Air pulled out 

of the market in 2008 and SkyWest Airlines (the incumbent carrier) reduced service to one flight per day 

to Portland, the number of available seats to Portland has been reduced by 46%. 

The lack of timely air service coverage and connectivity has increased travel costs for business and 

leisure travelers and is impeding the economic recovery of the area. To address this problem, the City of 

Klamath Falls, the airport sponsor, is requesting $250,000 in federal assistance to facilitate the 

implementation of a $314,500 air service improvement initiative that would add an early morning flight 

between Klamath Falls and Portland. The project goal is to improve air service to a broad section of 

Klamath Falls’ traveling community, mitigate the need to drive long distances to access acceptable and 

timely air service, and provide better local access to the air transportation system. 

Assistance will provide material benefit to businesses, educational institutions and healthcare providers 

whose access to clients, suppliers, customers and facilities is limited by the infrequency and timing of the 

one currently available flight between Portland and Klamath Falls. 

Community partner commitment is strong and is in the form of cost sharing through both cash and in-kind 

contributions and anticipated ticket purchases. SkyWest Airlines also supports the project and the grant 

application. Community partners have committed to over 2,200 roundtrips per year should this service 

become available. 

Non-airport sources will fund 8 percent ($22,000) of the $274,500 cash requirement of the proposed plan. 

The airport and the community will provide 20 percent ($64,500) of the total funding plan in the form of 

cash and in-kind services. Of the $64,500 local contribution, $24,500 is cash with the remaining $40,000 

in in-kind services. 
Section 2 

Proposal Highlights

Page 2

2. Proposal Highlights 

This Small Community Air Service Development Program (“SCASDP”) grant application for the City of 

Klamath Falls representing the Klamath Falls Airport meets the criteria set out in Docket DOT-OST-2011-

0119. The City of Klamath Falls, the airport sponsor, is requesting $250,000 in federal assistance to 

facilitate the implementation of a $314,500 air service improvement initiative that benefits a rural region of 

southern Oregon and northern Oregon. The project goal is to improve air service to a broad section of 

Klamath Falls’ traveling community, mitigate the need to drive long distances to access acceptable and 

timely air service, and provide better local access to the air transportation system. The plan to 

accomplish this goal is to improve time of day coverage and connectivity by adding an early morning flight 

to SkyWest Airlines’ (the incumbent carrier) existing schedule from Klamath Falls Airport to Portland 

International Airport with the Embraer 120 aircraft. 

Air Service Issues 

The Klamath Falls community served by the Klamath Falls Airport is underserved to top destination 

markets and is overpriced compared to similar communities. Air service has decreased as SkyWest 

ceased offering two flights to Portland in October 2010 and currently there is only one flight per day to 

Portland International Airport. This sole flight is scheduled at a time of day that, for the majority of 

travelers, requires an overnight stay in Portland in order to make connections to flights to other parts of 

the country and precludes business travelers from Klamath Falls from arriving in Portland in time to 

conduct any business on the day of arrival. Travelers will often choose to fly out of to Medford to get to 

Portland if it is their destination or they are making a connection, or drive to Portland. Given Oregon’s 

geography and climate, during the winter months, driving to Portland can take six to 10 hours in bad 

conditions, and be a safety hazard. The lack of convenient access to and from Klamath Falls hinders 

commerce and impedes economic vitality in the community. 

Strategic Plan 

The proposed plan includes resumption of an early morning round trip nonstop flight between Klamath 

Falls Airport and Portland International Airport operated by SkyWest Airlines. From a community 

perspective, early morning service to Portland will provide more options to the local air traveler, enable 

business travelers to conduct a day’s business without incurring lodging costs and reduce long drives for 

local air travelers to surrounding airports. The nonstop service will be supported by a two part plan: 

1. Airline start-up support 

2. Advertising and promotion 

SkyWest Airlines firmly supports the proposed plan. It is anticipated that SkyWest Airlines will implement 

early morning nonstop service to Portland International Airport from Klamath Falls on April 1, 2012. The 

proposed plan will be completed by April 2013 with ongoing early morning nonstop service to Portland. It 

is estimated that the additional service to Portland will serve 15,768 passengers per year. 

Broad Community Support 

The following public and private entities formed a public-private partnership (the “air service partnership”) 

in support of this application: 
Section 2 

Proposal Highlights

Page 3

• City of Klamath Falls 

• JELD-WEN, inc. 

• Klamath Falls Biomass 

• JWTR 

• Klamath Employment Trends 

• Klamath Falls Herald and News 

• Basin Mediactive 

• Sky Lakes Medical Center 

• Iberdrola Renewables 

• Klamath Falls Chamber of Commerce 

• Discover Klamath (local tourism agency) 

• Wynne Broadcasting 

Non-airport sources will fund 8 percent ($22,000) of the $274,500 cash requirement of the proposed plan. 

The airport and the community will provide 20 percent ($64,500) of the total funding plan in the form of 

cash and in-kind services. Of the $64,500 local contribution, $24,500 is cash with the remaining $40,000 

in in-kind services. 

Strong Ability to Implement Project 

The air service partnership listed above, and other local businesses in the Klamath Falls area fully 

support this plan and have the ability to implement this project as proposed. Key members of the air 

service partnership have been particularly active since Horizon Air left the market and have developed a 

good working relationship with the management of SkyWest, the current carrier. The air service 

partnership has met regularly with SkyWest management and the relevant local transportation authorities 

over the past few years to discuss proposed changes in air service or make recommendations. Staffing 

and funding for the proposed plan has been committed by all private and public partners. In addition, 

management at SkyWest Airlines supports the proposed plan. The Klamath Falls community has a 

strong desire and a population base to support the air service initiative. In short, all of the pieces are in 

place to implement the proposed plan. 

Multiple Sectors of the Community Will Benefit from the Proposed Plan 

Improved commercial air service at Klamath Falls Airport will benefit a broad section of the traveling 

public including businesses, educational institutions, healthcare providers and leisure travelers. The 

airport serves a local population in excess of 78,000, not including the growing number of inbound leisure 

travelers. The Klamath Falls area includes a vibrant business community, educational institutions such 

as the Oregon Institute of Technology and the Klamath Community College, and healthcare facilities such 

as Sky Lakes Medical Center and the proposed Sanford Pediatric Clinic, a regional healthcare provider 

(construction expected to start by year end 2011). Klamath Falls and the surrounding area has many 

scenic attractions that attract thousands of visitors each year including Crater Lake National Park, 

Klamath Lake Migratory Bird Flyway, Lava Beds National Monument and the Running Y Ranch Resort. 

Many of these inbound leisure travelers will benefit from the air service improvements contemplated in the 
Section 2 

Proposal Highlights

Page 4

proposed plan. Clearly, the proposed air service will meet the goals of the Small Community Air Service 

Development Program to benefit air travelers. 
Section 3 

Air Service Background

Page 5

3. Air Service Background 

To identify community air service needs, it is important to understand the characteristics of the community 

and know the past and present air service situation. This Air Service Background section provides a 

community overview including the airport catchment area and economic and demographic data. 

Extenuating factors that affected air service in the past (e.g. proximity to a competing airport) are 

discussed as well as a description of air service development efforts over the past five years. Information 

on existing air service, including air carriers, service frequency, direct and connecting destinations, and 

equipment types, and a synopsis of historical service, including destinations, traffic levels, and service 

providers, is also covered in this section. 

A. Klamath Falls Catchment Area 

Klamath Falls Airport serves a large geographic area with a growing population. The Klamath Falls 

Airport catchment area encompasses Klamath and Lake Counties in Oregon and portions of Modoc and 

Siskiyou counties in California. The airport not only serves the city of Klamath Falls, Oregon but also 

multiple cities in Northern California and rural areas in both states. Overall, an estimated 78,3681

 people 

reside in the Klamath Falls Airport catchment area. 

Exhibit 3.1 Airport Catchment Area 

Source: Microsoft MapPoint 2004 

 

1

This number and much of the data presented in this application is from a Market Analysis performed in 2007 for the Northwest 

Regional Air Service Initiative. The leakage data contained herein is the most current. 
Section 3 

Air Service Background

Page 6

B. Community Economics and Demographics 

The proposed air service improvement to Portland from Klamath Falls Airport will extend benefits to all 

sectors of the Klamath Falls community, including government, business, education, healthcare and 

tourism. The region is becoming more economically diverse with many businesses and institutions reliant 

on air service for connections to customers, suppliers, consultants and facilities located in other parts of 

the state or the country. Improving time of day coverage and connections to and beyond Portland is the 

top priority of the community. 

Klamath Falls is located in south-central Oregon approximately 15 miles north of the Oregon/California 

border. Klamath Falls is situated on the eastern slopes of the Cascade Mountains and the southern 

shore of Upper Klamath Lake. It serves as the gateway to the nearly unlimited outdoor recreation 

opportunities offered by a pristine landscape of mountains, marshes, lakes, and the crown jewel of the 

Cascades, Crater Lake National Park. Historically, the region’s chief industries include manufacturing 

generally associated with the timber trade, wood products, and agriculture. Manufacturers and natural 

resource related businesses in the area with interest in additional service to Portland include JELD-WEN, 

inc. (corporate headquarters, research and development, millwork and window and door manufacturing) 

and Klamath Falls Biomass (renewable energy). 

Though resource gathering and manufacturing industries remain a vital part of the regional economy, the 

area has a diversified economic base that includes a dynamic service industry. Over the last two 

decades, tourism has grown significantly and is the leading industry of the region. This is largely 

attributed to the extraordinary natural setting and the proximity of tourist attractions such as Crater Lake 

National Park, Lava Beds National Monument and the Running Y Ranch, a major destination resort just 

outside of Klamath Falls. 

In recent years, there has been an increase in business relocations to the area from other states, 

particularly high-tech businesses from California. This trend is likely to continue given Klamath Falls’ 

close proximity to California and Nevada. The healthcare industry is also growing in the Klamath Falls 

area with the recent significant expansion of the Sky Lakes Medical Center which serves the healthcare 

needs of people in a 10,000 square mile area of Oregon and California, and the proposed Sanford 

Pediatric Clinic. However, for the business, service and tourism sectors to continue to grow, improved air 

service is essential. The Strategic Plan proposed will improve time of day coverage and connectivity via 

Portland and will help meet the needs of this growing community. 

Improved air service will also serve a broad spectrum of other types of organizations as well. In Klamath 

Falls, the Oregon Institute of Technology (OIT), Klamath Youth Development Center and Oregon Air 

National Guard are specific educational, non-profit and government entities that will use and benefit from 

new air service if available. 

While the local airport must serve the residents of its catchment area, it also has a high potential for 

serving travelers destined for Oregon from throughout the United States. Additional air service to 

Portland International Airport from Klamath Falls Airport will have far reaching benefits for a broad 
Section 3 

Air Service Background

Page 7

spectrum of travelers and will accomplish the goals of the Small Community Air Service Development 

Program. 

C. Proximity to a Competing Airport 

Klamath Falls is a relatively isolated community, having access to the Oregon state highway system but 

no interstate that passes through it. As a result, acceptable air service takes on more importance as a 

mode of transportation. 

Fifty-three percent of Klamath Falls Airport catchment area air travelers drive to an alternate airport to 

access air service. Of the passengers not using the local airport, 26 percent use Medford’s Rogue Valley 

International Airport, 81 miles west, 9 percent drive 301 miles north to use Portland International Airport. 2

Travelers destined from Klamath Falls who use alternate airports are likely to encounter high levels of 

road traffic in metropolitan areas, long pre-boarding time requirements of over 90 minutes, and unsafe 

driving conditions in winter that increase travel time and potentially lead to delays and missed flights. 

Choice of airport to use by the local population is influenced by a variety of factors including, but not 

limited to: nonstop destinations offered, flight frequency, and travel costs. The proposed additional flight 

to Portland International Airport would mitigate these factors, and encourage more use of air travel, 

particularly for business travelers. Consequently, an increase in use could potentially result in lower fares 

by spreading airline costs among more passengers and offering more discounted seats. 

 

2

 Source: Northwest Regional Air Service Initiative Market Analysis – 2007 
Section 3 

Air Service Background

Page 8

Exhibit 3.2 Proximity to a Competing Airport 

Source: Microsoft MapPoint 2004 

D. Factors Affecting Air Service 

Klamath Falls’ catchment area is a mixed blessing. On one hand, the catchment area is isolated from 

larger competing airports; on the other hand, the airport catchment area contains a modest population of 

78,368. The community’s isolated location in southern Oregon, removed from major population and 

commercial centers, has ready-made air travel demand. With no major airports nearby and limited 

highway access, the dependence on air travel is high. The current service that puts business travelers 

into Portland at a time of the day when business cannot be conducted or travel connections cannot be 

made without having to incur the additional cost of an overnight stay is driving passengers and airline 

revenues to competing airlines and competing airports. Additional service, utilizing the same fleet of 

smaller aircraft, is necessary to meet the market demand created by the dynamic growth in the business, 

educational and healthcare sectors and continued development of the tourist market. 

 

E. Klamath Falls Airport Current Air Service 

Currently, SkyWest Airlines offers service to Portland International Airport and to San Francisco 

International Airport from Klamath Falls. The service to Portland consists of one afternoon flight per day 

and is operated with Embraer 120 aircraft. Although this service provides essential access to the national 

air transportation system, connections eastbound out of Portland at the time this flight arrives are limited 

to overnight flights (“red eye” flights). Most connections for eastbound flights depart Portland in the 

morning and, in many cases, travelers making connections through Portland from Klamath Falls will need 
Section 3 

Air Service Background

Page 9

to stay overnight in Portland in order to make their connection, significantly increasing both travel time 

and cost. For those just travelling to Portland, the surrounding area, or to Salem, the State Capitol, it is 

not possible to conduct a full or partial day’s business without having to incur the additional cost of an 

overnight stay. Improved time of day coverage as proposed in this Strategic Plan will eliminate many of 

the issues related to insufficient connectivity. 

Air service to San Francisco International Airport consists of an early morning flight and an evening flight. 

Table 3.1 Current Air Service 

Airport Marketing Carrier Destination Aircraft Weekly 

Departures 

Weekly 

Seats 

Klamath Falls 

SkyWest / United 

Airlines 

Portland, OR EMB-120 7 210 

San Francisco, CA EMB-120 14 420 

Source: apgDat, Inc July 2011 schedule 

F. Klamath Falls Airport Historical Air Service 

From 1997 to 2008, Horizon Air was the exclusive provider of commercial air service into and out of 

Klamath Falls Airport. In October 2008, due to a decision by Horizon Air to eliminate its fleet of 37 seat 

deHavilland Dash 8 Q200 turboprop aircraft and operate only the larger 76 seat Bombardier Q-400, it 

ceased serving Klamath Falls noting that airport usage did not generate enough passengers in the market 

to fill the larger aircraft (the Strategic Plan herein proposes the use of 30 seat aircraft). The elimination of 

Horizon Air service has resulted in a 46 percent reduction in available seats3

. 

Table 3.2 Historical Air Service 

Airport Nonstop 

Destination 

Marketing 

Carrier 

Calendar Year

2005 2006 2007 2008 2009 2010 2011

Klamath 

Falls 

Portland, OR 

Horizon Air / 

Alaska Air 

 

SkyWest / 

United Airlines 

 

San Francisco, 

CA 

SkyWest / 

United Airlines 

 

Source: apgDat, Inc – week of July 18, 2011 

In October 2008, SkyWest began providing service between Klamath Falls and Portland with two nonstop flights per day between the two cities. In July 2008, with financial assistance obtained by the City of 

Klamath Falls through a SCASDP grant, SkyWest began to offer additional non-stop service to and from 

San Francisco. That service continues today and is self-sustaining. However, SkyWest ceased the 

morning service between Klamath Falls and Portland in October 2010 due to low passenger 

enplanements likely driven by a less than optimal schedule that departed Klamath Falls at 5:30 AM and 8 

PM. The Strategic Plan proposes to improve overall ridership by improving time of day coverage and 

 

3

 Source: apgDat, Inc. comparison of July 2011 and July 2008 schedules 
Section 3 

Air Service Background

Page 10

connectivity by restoring the lost service at a more optimal time to eliminate the need to drive to alternate 

airports. 

Over the 10-year period from 1996 to 2005, enplanements at Klamath Falls Airport increased by a 

compounded annual growth rate of 2.8 percent. From 1999 to 2004, enplanements remained near 

30,000 with little growth. A modest growth in enplanements occurred from 2004 to 2005. Since the loss 

of Horizon Air service in 2008, enplanements have declined with the loss of service. 

With the market generating approximately 10,000 more annual enplanements in 2003 than in 2010, the 

region is more than capable of sustaining the proposed additional Portland frequency, but needs the 

Strategic Plan funding for the project to move forward. Adding a better timed Portland flight will tap into 

the unmet air service demand in the market, better serving the people and businesses of Klamath Falls. 

Exhibit 3.3 Historical Enplanements 

Source: apgDat, Inc 

G. Past Air Service Development Efforts 

For the past five years, management at Klamath Falls Airport has actively engaged in air service 

development. The airport studied its catchment area to quantify the level of demand for southbound air 

service. Klamath Falls also conducted several studies of their market area, including a Passenger 

Demand Analysis, a Market Airfare Analysis, a Business Travel Survey, and a pro forma analysis of San 

Francisco service. These efforts were key to securing the southbound service to San Francisco from 

Klamath Falls and to obtaining the SCASDP grant that facilitated the start up of that service. 

Unfortunately, the air service development efforts were not able to prevent the decrease in service 

northbound. As the business community begins to pull out of a long economic recession, it is finding that 
Section 3 

Air Service Background

Page 11

it does not have the air service levels it needs to maintain its growth momentum. Further, recovering 

businesses are financially disadvantaged by the resultant added costs of doing business outside of the 

Klamath Falls area. The community needs financial assistance in order to provide the needed incentive to 

the incumbent carrier to restore service and offset the airline’s risk. The proposed Action Plan would 

provide this needed financial assistance and serve as the bridge towards continued business recovery 

that would then result in self sustaining air service, eliminating the need for any subsidy. 

Table 3.4 Past Air Service Development Efforts 

Date Initiative Result 

March-05 UA SFO pro-forma Completed 

March-05 Northwest Regional Air Service 

Initiative SCASDP Application 

Successful 

August-05 Business Travel Survey Completed 

April-07 SFO SCASDP Application Successful 
 Section 4 

 Air Service Needs and Deficiencies 

Page 12

4. Air Service Needs and Deficiencies 

This section provides an in depth description of the community’s air service needs and deficiencies. 

Major origin/destination markets not now served or that are served inadequately are discussed. In 

addition to being underserved, this community is overpriced. This section presents a detailed analysis to 

demonstrate that the average airfare in this community is higher than other comparable communities. 

A. Passenger Diversion 

The magnitude of Klamath Falls’ passenger diversion problem was identified in a 2007 passenger 

analysis. The study indicated that approximately 53 percent of the travelers in the Klamath Falls Airport 

catchment area drive to other airports in search of better service and lower fares, particularly Medford’s 

Rogue Valley International Airport 81 miles distant and Portland International Airport, 301 miles distant. 

Klamath Falls’ lack of service options result in artificially high fares, which force large numbers of air 

travelers to drive long distances to obtain better service and relief from high fares. Consequently, the 

marketplace’s reaction has been to endure the inconvenience and expense of driving to another airport. 

However, inconvenience and expense are not the only consequences. Southern Oregon’s geography and 

climate make travelling over mountain passes to the Rogue Valley International Airport or to Portland 

International Airport in the winter a considerable safety issue. The extra time needed for these trips due to 

traffic (accident) and weather delays increases the likelihood of missed flights, further compounding the 

problem of added expense, inability to conduct business and slowing the economic recovery of the 

region. 

B. High Airfares 

Klamath Falls suffers from high airfares. Klamath Falls is losing over 63,000 annual passengers to other 

airports. In large part this loss of air travelers to competing airports is due to higher than average airfares 

at the local airport. Table 4.1 shows the average airfares paid by passengers traveling from Oregon’s 

commercial service airports to Portland International Airport. 

Table 4.1 Average Airfares to Portland 

Rank Oregon Airports Portland

1 Pendleton $99 

2 Medford $83 

3 Klamath Falls $81 

4 Redmond $72 

5 North Bend $71 

6 Eugene $65 

7 Newport $58 

8 Astoria $45 

Source: apgDat, Inc. – Calendar Year 2010 

As indicated in Table 4.1, passengers at Klamath Falls pay the third highest average airfare to Portland 

compared to all other Oregon airports. Beyond the local Portland market, Klamath Falls has a significant 

fare discrepancy with other surrounding airports, the West region and the national average as shown in 
 Section 4 

 Air Service Needs and Deficiencies 

Page 13

Table 4.2. In 2010, Klamath Falls’ one-way average fare was $24 higher than Medford, $18 higher than 

Portland, $19 higher than Oregon, $25 higher than the West region and $22 higher than the US average. 

Table 4.2 Average One-Way Fare Paid

Airport Average Fare $ Klamath Falls Diff $

Klamath Falls $180 

Medford $156 $24 

Portland $162 $18 

Oregon $161 $19 

West Region $155 $25 

US $158 $22 

Source: Database Products, Inc CY 2010 Avg Fare

C. Underserved Market 

As stated above, despite the time savings afforded by using the local airport, approximately 53 percent of 

Klamath Falls Airport catchment area air travelers access air service at an alternate airport. Current 

afternoon service to Portland fulfills a portion of Klamath Falls Airport’s needs, but does not provide 

sufficient time of day coverage and among the top 50 domestic destinations, Klamath Falls has excellent 

retention for destinations that are easy to connect to over Portland, particularly to the north. The addition 

of a morning Portland departure with improved connectivity will improve retention and reduce the need to 

drive to alternate airports. 

In terms of the extent this community is underserved, Table 4.3 provides a comparison of communities 

with similar Metropolitan/Micropolitan Statistical Area populations in the Northwest region4

. Klamath Falls 

Airport’s air service options in terms of weekly departures and weekly available seats are low compared 

to other communities. Compared to Walla Walla, Pullman and Port Angeles, WA, Klamath Falls has, by 

far, either the lowest number of weekly departures or weekly available seats for the size of their 

population. The proposed service enhancement would add more departures and seats making the 

market more competitive with other similarly sized communities in the region. 

Table 4.3 Air Service Comparison 

MSA/Micro/Airport Population Carriers Destinations 

Weekly 

Departures Weekly Seats 

Bozeman, MT 96,725 5 10 157 12,779 

Great Falls, MT 82,297 4 7 84 5,824 

Durango, CO 53,357 4 3 98 5,187 

Lewiston, ID-WA 61,137 2 4 34 2,220 

Casper, WY 74,700 3 3 44 2,080 

Pullman, WA 41,794 1 1 14 1,064 

Cheyenne, WY 88,994 2 2 45 1,030 

Walla Walla, WA 58,283 1 1 13 988 

Klamath Falls, OR 67,543 1 2 21 630

Port Angeles, WA 73,275 1 1 42 462 

Source: Source: apgDat, Inc – Schedule July 2011; Woods & Poole Economics, Inc. 

Note: MSA = Metropolitan Statistical Area; Micro = Micropolitan Statistical Area 

 

4

 Northwest region includes Colorado, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. 
 Section 5 

 Strategic Plan 

Page 14

5. Strategic Plan 

The strategic Action Plan proposed by the Klamath Falls community will achieve the community’s goals, 

meet the air service needs and alleviate the air service deficiencies of this community. This Action Plan 

section provides a detailed description of the goals of the project and a strategic plan for attaining those 

goals. A legal sponsor responsible for administering the program has been designated and a publicprivate partnership (the air service partnership) has been formed to actively participate in implementing 

the proposed project. In addition to the strategic Action Plan, this section identifies self-sufficiency of the 

service as an integral part of the community’s goals and provides a description of how the community 

plans to continue with the project if it is not self-sustaining after the grant award expires. A detailed 

description of the funding necessary for implementation of the Strategic Plan, including federal and nonfederal contributions, is included in this section. 

A. Public-Private Partnership 

The City of Klamath Falls is the owner and operator of the Klamath Falls Airport and the sponsor of this 

proposal. The following Klamath Falls entities are participating in this effort to improve local air service: 

• City of Klamath Falls 

• JELD-WEN, inc. 

• Klamath Falls Biomass 

• JWTR 

• Klamath Employment Trends 

• Klamath Falls Herald and News 

• Basin Mediactive 

• Sky Lakes Medical Center 

• Iberdrola Renewables 

• Klamath Falls Chamber of Commerce 

• Discover Klamath (local tourism agency) 

• Wynne Broadcasting 

For the purpose of continuing air service development work, past SCASDP applications and this 

application, several of the above entities are part of an ongoing air services partnership formed when 

Horizon Air left the market in 2008. Some of the organizations have been included in this public private 

partnership for just this application as they are new to the area or have recently come to realize the 

importance of obtaining increased air service in Klamath Falls. They have all expressed their support and 

commitment in letters that are included as Attachment A. 

All partners will be fully involved in the execution of the Strategic Plan. The City of Klamath Falls will 

execute all federal grant offers, process all associated reimbursement requests, and oversee grant 

administration. In addition, the City of Klamath Falls will oversee and fund the air service related 

consulting services necessary to implement the Strategic Plan. Discover Klamath will be responsible for 

administering the $49,000 local advertising and promotion program for this air service initiative in the 
 Section 5 

 Strategic Plan 

Page 15

Klamath Falls area. The Klamath County Chamber of Commerce will assist Discover Klamath with local 

marketing efforts, particularly to the local business community, and will lead the efforts in generating early 

ticket and reservation commitments. The Klamath Falls Herald & News will also assist with the local 

marketing efforts, specifically with newspaper advertising, and will contribute $10,000 (in-kind) in 

advertising dollars to the promotion effort. Air service partners have committed to an estimated 2200 

ticket purchases of the SkyWest Airlines’ early morning Portland service during the first year of service 

with an estimated value of approximately $178,000. However, this ticket purchase estimate has not been 

included as part of the budget for this project. 

Table 5.1 Roles of Public-Private Partners 

Public-Private Partner Role

City of Klamath Falls 

Cash contribution for marketing campaign; grant and program 

administration, monitoring. 

JELD-WEN, inc Cash contribution; ticket purchases 

Klamath Falls Biomass Cash contribution; ticket purchases 

JWTR Cash contribution 

Klamath Employment Trends Cash contribution; ticket purchases 

Klamath Falls Herald and News 

In-kind contribution; assist with local marketing efforts in Klamath 

Falls area 

Basin Mediactive In-kind contribution; assist with marketing campaign. 

SkyLakes Medical Center Cash contribution 

Iberdrola Renewables Cash contribution 

Klamath Falls Chamber of Commerce In-kind contribution towards marketing campaign 

Discover Klamath 

Cash contribution; coordination of marketing program/promotion in the 

Klamath Falls area/inclusion of service in existing marketing program 

Wynne Broadcasting In-kind contribution; assist with marketing campaign 

B. Project Goals 

The project goals are to improve time of day schedule coverage and connectivity, mitigate the need to 

drive long distances to access adequate air service, and provide improved access to the global 

marketplace for the Klamath Falls community. Specifically, the Strategic Plan outlined herein will provide 

more air service options to air travelers in this remote Oregon community and support local businesses, 

universities, healthcare organizations and government employees. The local economy is highly 

dependent on businesses in Klamath Falls such as JELD-WEN, inc. the Running Y Ranch, OIT and Sky 

Lakes Medical Center and places high priority in meeting the air service needs of the businesses in the 

Klamath Falls area. 
 Section 5 

 Strategic Plan 

Page 16

C. Proposed Air Service 

With a catchment area market of approximately 163 passengers per day each way and approximately 

10,000 more historical annual enplanements than today, the Klamath Falls market is capable of 

supporting additional service. 

The proposed air service to accomplish the project goals includes an additional daily round trip flight 

between Klamath Falls and Portland in the morning to improve time of day coverage and connectivity to 

the global marketplace. The service will be provided by SkyWest Airlines operating 30-seat Embraer 120 

aircraft. 

SkyWest Airlines’ early morning service to Portland would provide ample single connect opportunities for 

north and eastbound passengers, and many international markets. SkyWest Airlines offers easy 

connections through their code-share relationship with United Airlines at Portland International Airport. 

United Airlines, including United Express, serve more than 160 destinations across North America and 

200 destinations throughout Europe, Latin America, Asia, and the South Pacific. United Airlines is part of 

the globe-spanning Star Alliance network. The proposed service would allow Klamath Falls area air 

travelers improved access to this global network. 

The proposed additional nonstop flight to Portland International Airport will have a significant positive 

impact on the Klamath Falls economy. Another flight will allow this community to better compete for new 

businesses and allow existing businesses such as JELD-WEN, inc., government organizations, 

healthcare entities and college/university employees to significantly lower the amount of travel time 

required to perform their work. In addition, it will benefit the tourism industry for the Klamath Falls 

economy including Klamath Falls’ Running Y Ranch. Given the region’s growing reputation as a 

destination community, if new service were made available, air travel into the Klamath Falls area would 

increase opening further options for air service improvements. This plan will achieve the project goal by: 

• Providing nonstop morning air service to Portland International Airport to/from Klamath Falls, 

an underserved Oregon community; 

• Reducing the need for air travelers to drive to competing airports including Medford’s Rogue 

Valley International Airport and Portland International Airport. 

D. How This Project Differs from the San Francisco Service Project 

The previous application’s goals were specifically targeted at San Francisco service and southbound 

connections in conjunction with North Bend, Oregon, whereas this application’s goals focus specifically 

on northbound connection needs via Portland. San Francisco service serves international and US 

southbound travelers and has both directed and expanded tourism growth in the region. This project that 

focuses on an additional flight to Portland is intended to primarily meet the needs of local and regional 

businesses by addressing insufficient northbound time of day coverage and connectivity issues of the 

community. While tourism will also benefit, the lack of morning service is a significant disadvantage to 

business, government, non-profit and healthcare sectors of the regional economy. 
 Section 5 

 Strategic Plan 

Page 17

E. Airline Participation 

SkyWest Airlines supports the proposed plan and an estimated service start date of April 2012. The 

service start date is subject to airline adjustment depending on aircraft availability and other airline 

considerations. The SkyWest Airlines’ commitment letter is included in Attachment A. 

F. Analysis and Forecasts 

A financial analysis has been developed for the proposed additional nonstop Portland International Airport 

flight. The analysis includes the following assumptions: 

• Local Portland passengers will approximate the number of passengers that previously existed 

when Horizon Air served the market with greater time of day coverage. 

• Onboard connecting markets will be similar to passengers being carried on the current Portland 

service. 

• SkyWest Airlines will capture a share of diverting passengers that are forced to drive to an 

alternate airport today due to poor time of day coverage. 

• SkyWest Airlines will receive a pro-rated share of revenue for those passengers connecting 

beyond Portland. 

• The average one-way segment fare will be based on the reported average fare for year ended 

March 31, 2011. 

The following is a summary of previously reported local market sizes when the schedule provided greater 

time of day coverage: 

Table 5.2 Portland Historical Market Sizes 

Year PDEW Fare $ 

2001 35.2 100 

2002 36.0 106 

2003 43.6 106 

2004 39.5 114 

2005 40.5 119 

2006 37.5 133 

2007 39.4 122 

2008 30.3 108 

2009 9.6 78 

2010 10.5 81 

Source: apgDat

 

The following is a summary of the pro forma analysis: 

Table 5.3 Passenger Projections 

Item Statistical Category Full Year

1 Available Seats per Departure 30 

2 Segments per Day 2 

3 Days Operating 365 

4 Annual Segments 730 

5 Annual Seats 21,900 

6 Average Cost per Segment $1,800 

7 Cost per Year $1,314,000 

8 Onboard Passengers 15,768 
 Section 5 

 Strategic Plan 

Page 18

9 Load Factor 72% 

10 Total Revenue $1,340,280 

11 Average prorated fare $85.00 

 

12 Projected Earnings $26,280

13 Projected Margin 2.0%

Source: Mead & Hunt, Inc. 

Note: SkyWest Airlines LMT-PDX; represents a mature market 

Passenger projections (Table 5.3) were based on a mature market (i.e., passenger projections would be 

at 100 percent on the first day of service). Table 5.4 provides an adjustment to passenger projections to 

account for building passenger traffic to a fully mature market. The following table breaks down the 

passenger projections for the first 12 months with service estimated to begin on April 1, 2012: 

Table 5.4 Service Ramp-Up 

Month Seasonal % Seasonal Adj 

OO Pax 

Ramp-Up Adj RampUp OO Pax Days Seats/Month

Apr-12 7.1% 1,119 50% 559 30 1,800 

May-12 7.5% 1,181 55% 649 31 1,860 

Jun-12 9.1% 1,435 60% 861 30 1,800 

Jul-12 8.5% 1,342 65% 873 31 1,860 

Aug-12 8.9% 1,401 70% 980 31 1,860 

Sep-12 8.5% 1,346 75% 1,009 30 1,800 

Oct-12 8.2% 1,298 80% 1,038 31 1,860 

Nov-12 9.2% 1,451 85% 1,234 30 1,800 

Dec-12 9.6% 1,509 90% 1,358 31 1,860 

Jan-13 8.0% 1,257 95% 1,194 31 1,860 

Feb-13 7.7% 1,211 100% 1,211 28 1,680 

Mar-13 7.7% 1,219 100% 1,219 31 1,860 

Total/Year 15,768 12,186 21,900

Source: Mead & Hunt, Inc. 

Note: Ramp-up = 67 percent first month increasing 3 percent until the tenth month.

At the initiation of service, it is estimated that SkyWest Airlines will realize 50 percent of the potential 

passengers in a mature market. For each subsequent month, it is assumed that SkyWest Airlines will 

increase passengers by approximately 5 percent per month until the eleventh month of service, which is 

assumed to be a mature market. 

Table 5.5 Net Surplus/Shortfall Projection 

Month OO Load Factor 

Adj Ramp-Up 

OO Pax Revenue 

Cost Per 

Month 

Net 

Surplus/Shortfall 

Apr-12 31% 559 $47,555 $108,000 ($60,445) 

May-12 35% 649 $55,198 $111,600 ($56,402) 

Jun-12 48% 861 $73,174 $108,000 ($34,826) 

Jul-12 47% 873 $74,166 $111,600 ($37,434) 

Aug-12 53% 980 $83,340 $111,600 ($28,260) 

Sep-12 56% 1,009 $85,806 $108,000 ($22,194) 

Oct-12 56% 1,038 $88,247 $111,600 ($23,353) 

Nov-12 69% 1,234 $104,857 $108,000 ($3,143) 

Dec-12 73% 1,358 $115,462 $111,600 $3,862 

Jan-13 64% 1,194 $101,493 $111,600 ($10,107) 

Feb-13 72% 1,211 $102,914 $100,800 $2,114 

Mar-13 66% 1,219 $103,578 $111,600 ($8,022) 

Total/Year 56% 12,186 $1,035,789 $1,314,000 ($278,211) 

Source: Mead & Hunt, Inc. 
 Section 5 

 Strategic Plan 

Page 19

Total revenues adjusted for seasonality and the ramp-up period for the first year of service total 

$1,314,000. This is a shortfall of $278,211. 

G. Action Plan 

Although the passenger projections are positive, SkyWest Airlines will undertake a high level of risk 

during the start-up period that must be partially offset. The Action Plan addresses issues associated with 

offsetting SkyWest Airlines’ risk with the implementation of an additional morning flight to Portland 

International Airport that are critical to the long-term success of that service. In this regard, this Action 

Plan addresses two essential areas: 

1. Airline start-up support 

2. Service awareness 

(1) Airline start-up support 

This Action Plan proposes to use a revenue guarantee to limit financial risk and provide incentive 

to SkyWest Airlines to operate the proposed service. The pro forma projections associated with 

the proposed air service are based on a mature market. However, it is estimated that it will take 

10 months for passenger projections associated with the proposed air service to reach maturity 

and match pro forma projections. SkyWest Airlines’ service is estimated to begin in April 2012. 

Accordingly, April 2012 passenger traffic and revenue is estimated to be 50 percent of pro forma 

projections. Passenger and revenue projections are expected to grow approximately 5 percent 

per month between April 2012 and January 2013. At the end of the ten-month ramp-up period, 

February 2013, passenger and revenue projections are estimated to match the mature market 

projections shown in the pro forma. The net shortfall for the ten-month ramp-up period is 

estimated to be approximately $278,211. 

To mitigate SkyWest Airlines’ risk, the Action Plan proposes a revenue guarantee of $250,000. 

This is the minimum amount of revenue guarantee required by SkyWest Airlines to initiate this 

service. The exact terms of the revenue guarantee agreement are subject to further discussions 

and negotiation with SkyWest Airlines. 

(2) Service awareness 

This service awareness plan proposes to use advertising and promotion to inform the traveling 

public of the availability of regularly scheduled air service between the communities of Klamath 

Falls and Portland International Airport. Discover Klamath, the official Klamath County tourism 

agency, along with the assistance of the Klamath County Chamber of Commerce and Klamath 

Falls Herald & News, will have responsibility for the advertising and promotion program in the 

Klamath Falls area. The following elements will be included in the advertising/promotion 

program: 
 Section 5 

 Strategic Plan 

Page 20

(a) Marketing message 

Marketing messages will emphasize the features and benefits of the proposed service to the 

identified audiences. Messages will focus on the following: 

• Airline name: The new service is provided by a name brand regional airline with easy 

connections to United Airlines and their globe-spanning network. 

• Convenience: The new service will get passengers to key destinations with less 

inconvenience. 

• Cost: The new service will reduce the cost of travel to key destinations. 

(b) Target market 

The target market for the proposed air service are people living in the Klamath Falls area who 

have business or leisure travel needs to Portland and beyond destinations. In addition to the 

local air travelers, business travelers and leisure travelers with interests in travel to Southern 

Oregon will be targeted. Discover Klamath and the Klamath Falls Chamber of Commerce will 

assist in reaching this target market by integrating the new airline service into their existing 

marketing programs. 

(c) Media mix 

A variety of media outlets will be used to promote this service. The media mix will potentially 

include print media (e.g. newspaper ads), television (e.g. local cable networks), radio, internet 

(Discover Klamath website) and targeted search engine banner advertisement. 

(d) Marketing schedule 

Marketing will begin approximately 60 days prior to the initiation of service and will focus on the 

features and benefits of the new service, especially the convenience of using the local airports. 

The initial program will focus on the target audience, solidify travel agent participation, and begin 

the print and radio advertisements. A significant portion of the budget will be expended during 

the first 60 days of service; however, the total advertising and promotion program is planned for 

12 months. 

H. Alternate Plan 

If the City of Klamath Falls fails to reach an agreement with SkyWest Airlines for additional service to 

Portland, an alternate plan will be pursued to achieve the goal of a timely connection to Portland. The City 

will explore the option of service to Seattle on the incumbent carrier or another carrier (Horizon/Alaska 

Air) that would provide morning connectivity to Portland as well as other destinations. 

I. Funding and In-Kind Contributions 

The City of Klamath Falls is seeking $250,000 of U.S. Department of Transportation funding to mitigate 

SkyWest Airlines’ risk to provide additional service between Klamath Falls and Portland International 

Airport. The community intends to participate in the funding of the program by providing 

advertising/promotion (cash and in-kind services) for the service and funding of the necessary program 
 Section 5 

 Strategic Plan 

Page 21

administration, grant monitoring and oversight (in-kind services). Table 5.6 provides the Action Plan 

budget broken down by element and sources of funding: 

Table 5.6 Action Plan Budget 

Description 

Funding source 

Total 

US DOT Airport Non-airport 

Cash Cash In-Kind Cash In-Kind 

Airline Incentive Program: 

 Revenue Guarantee $250,000 $250,000 

 MarketingCampaign $2,500 $22,000 $27,500 $52,000 

Strategic Plan Monitoring/Program 

Adminstration: $12,500 $12,500 

Airline Meetings/Negotiations: $0 

Program Administration: $0 

Total $250,000 $2,500 $12,500 $22,000 $27,500 $314,500 

Percent of Total Project 80% 1% 4% 7% 8% 100% 

Percent of Total Cash Contribution 91% 1% N/A 8% N/A 100% 

Non-airport funding sources will provide 8 percent of the funding of the cash contribution. In the Klamath 

Falls area, JELD-WEN, inc. and other businesses are contributing $22,000 for the local, non-airport cash 

contribution for the marketing program. Discover Klamath, Basin Mediactive, Klamath Falls Herald & 

News and others are contributing in-kind services for additional marketing coverage. Table 5.7 provides 

a breakdown of the non-airport funding sources. 

Table 5.7 Non-Airport Funding Sources 

Non-Airport Funding Sources Klamath Falls 

Cash In-Kind 

JELD-WEN, inc. $12,000 $ - 

Klamath Falls Biomass $1,500 $ - 

JWTR $1,500 $ - 

Klamath Employment Trends $1,500 $ - 

Klamath Falls Herald & News $ - $10,000 

Basin Mediactive $ - $2,000 

SkyLakes Medical Center $1,500 $ - 

Iberdrola Renewables $1,500 $ - 

Klamath Falls Chamber of Commerce $ - $5,000 

Discover Klamath $2,500 $7,500 

Wynne Broadcasting $ - $3,000 

The community will ensure that its own funding contribution, both cash and in-kind is spent in the manner 

proposed by requiring documentation from all partners on a monthly basis tracking both cash and in-kind 

expenditures. This information will then be included in the City of Klamath Falls quarterly report to the US 

Department of Transportation under the rules of the SCASDP grant. 
 Section 6 

 Schedule and Monitoring 

Page 22

6. Schedule and Monitoring 

The public-private partnership developed a realistic timetable to achieve the goals of this proposal. This 

section, Schedule and Monitoring, provides the Action Plan schedule and identifies critical milestones to 

be achieved by the public-private partnership. A monitoring program is also provided to track the 

progress of the project. 

A. Action Plan Schedule 

The proposed service is estimated to begin on April 1, 2012. The marketing program will start 2 months 

prior to the start of the service on February 1, 2012. The program will run for a total of 12 months. 

Table 6.1 Action Plan Schedule 

 

B. Milestones 

The following milestones are proposed to track the progress of this air service initiative: 

December 31, 2011 – Airline contract: In order to meet April 1, 2012 start date, a signed contract between 

the City of Klamath Falls and SkyWest Airlines will need to be concluded by December 31, 2011. This 

will allow the marketing plan to be developed and the airline to load changes into the Computer 

Reservation System in advance of the new service start date. 

 

January 31, 2012 – Marketing plan development: The marketing plan will be completed by January 31, 

2012 to facilitate implementation of the advertising and promotion program in February 2012. 

February 1, 2012 – Marketing plan initiation: Advertising and promotion need to be in the market 60 days 

prior to the new service start date, April 1, 2012. 

April 1, 2012 – Service initiation: The service start date is the critical date for the rest of the Action Plan. If 

this date changes due to airline circumstances and/or equipment availability, other milestone dates will 

change accordingly. The service start date is not likely to change after the equipment change is loaded in 

the Computer Reservation System. 

 

March 31, 2013 – Revenue guarantee contract completion: At the end of the first year of service, the 

revenue guarantee will be calculated based on the terms of the agreement. If the service start date 

Action Item 2011 2012 2013

 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 

Grant Award 

Airline 

Negotiation 

 

Marketing 

 Development 

Implementation 

Service 
 Section 6 

 Schedule and Monitoring 

Page 23

changes due to airline circumstances and/or equipment availability, the revenue guarantee contract term 

will change accordingly. 

June 30, 2012 – Alternate plan: If SkyWest Airlines has not implemented the proposed service by June 

30, 2012, the sponsor will propose an alternate plan that meets the goals of this grant application. 

C. Monitoring Program 

The performance of the proposed air service will be tracked monthly. Tracking will measure aircraft 

operations numbers, passenger statistics, and revenue guarantee indicators. The airline will provide flight 

segments flown, flight segments cancelled, onboard fared passengers, and average airfares (less taxes 

and fees). This data will be compared to the forecast projections to measure the performance of the 

program and evaluate revenue guarantee payments. In accepting this incentive package, the airline will 

agree to operate the service for not less than 12 months. This should be sufficient time to prove the 

viability of the new market. The following table provides the schedule for performance measures: 

Table 6.2 Performance Measures 

Performance 

Measure 

2012 2013

4 5 6 7 8 9 10 11 12 1 2 3

Service 

Period 

Advertising 

Campaign 

Air Service Performance 

Cancelled 

Flights 

 

Completed 

Flights 

 

Customer 

Comments 

 

Load 

Factors 

 

Passengers 

Published 

Fares 

 

Average 

Airfares 

 

Total 

Revenue 

 

D. Project Continuation and Sustainability 

As indicated in Table 5.3, it is estimated that after the first 12 months of service, the SkyWest Airlines’ 

Portland service will be self-sustaining with a profit margin of $26,280 or 2 percent in the second 12 

months. If, at the end of the second six months of service (months six through 12), the service does not 

attain a minimum of a 50 percent average load factor, the City of Klamath Falls will extend the marketing 

program for an additional 3 months. 
Attachment A 

Analysis and Forecasts 

Page 24

Attachment A. Airline & Community support 

Attachment A includes letters of support for the City of Klamath Falls’ application to the U.S. Department 

of Transportation for additional SkyWest Airlines’ service to Portland International Airport. Support letters 

were submitted by SkyWest Airlines, participants in the public-private partnership, and members of the 

Klamath Falls community. The letters of support are included on the following pages of this Attachment 

A. 

July 27, 2011 

Aloha Ley 

US Dept. of Transportation 

400 7th Street SW Room 6401 

Washington, DC 20590 

RE: Partnership Opportunities

Dear Ms. Ley, 

Discover Klamath Visitor and Convention Bureau is pleased to submit this letter of support for 

the Klamath Falls Airport grant application to the U.S. Department of Transportation Small 

Community Air Service Development Grant Program. Discover Klamath Visitor and Convention 

Bureau is anxious to partner with the Klamath Falls Airport for the mutual objective of driving 

more visitors to our community while promoting the Klamath Falls – Portland connection. 

While there is still work to be completed in terms of working through specific tactical 

approaches, timing of campaign, etc..., our group is nonetheless supportive of the airport’s 

goals, as they mirror ours as well. 

To this end, Discover Klamath would like to commit up to $2500 in cash and $7500 in in-kind 

electronic marketing/advertising for purposes of supporting this exciting initiative. 

Again, Discover Klamath Visitor and Convention Bureau strongly supports this grant application 

and we hope that you will give it favorable consideration. 

Best Wishes, 

Jim Chadderdon 

Jim Chadderdon 

Executive Director 
July 25, 2011 

Aloha Ley 

US Dept. of Transportation 

400 7th Street SW, Room 6401 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket OST-2011-0119 

 Klamath Falls, OR 

Dear Ms. Ley: 

The Herald and News strongly supports the grant application to the U.S. Department of Transportation 

for funding of its program to initiate an additional round trip flight between Portland and Klamath Falls. 

The Herald and News commits to supporting the northbound Essential Air Service grant with a $10,000 

advertising match. We recognize the contribution that quality, commercial air service will make to the 

economic vitality of our area. The additional support this service brings to our growing area businesses, 

organizations and institutions through improved access for visitors is invaluable. 

The Herald and News is pleased to have the opportunity to support this grant application. We will work 

diligently to insure the long-term success of this air service through not only our support but the combined 

efforts of our Klamath Falls community. 

Sincerely, 

Kendal Daiger 

Director of Advertising 

Herald and News 

541.885.4423 direct 

541.883.4007 fax

kdaiger@heraldandnews.com
“The Klamath County Chamber of Commerce is committed to Klamath County by advancing its economic vitality and quality of life 

through the education, promotion and networking of our members” 

 

 

Klamath County Chamber of Commerce 

205 Riverside Street Suite A  Klamath Falls, Oregon 97601 

(541) 884-5193 Phone  (541) 884-5195 Fax 

www.klamath.org - inquiry@klamath.org

Board of Directors 

 

Jodi Kucera 

 Mia & Pia’s Pizzeria & Brewhouse

Barb Meng 

 US Cellular –Cellular Solutions 

Stan Gilbert 

 Klamath Youth Development Center 

Toby Freeman 

 Pacific Power 

Heidi Wright 

 Herald and News 

Shari Watterberg 

 Integra Telecom 

Tim Wehrly 

 Above & Beyond Catering 

Bridgitte Griffin 

 South Valley Bank & Trust 

Curtis Waite 

 173d Fighter Wing, Kingsley Field 

Dan Keppen 

 Dan Keppen & Associates, Inc 

Kathie Philp 

 Pacific Crest FCU 

Willie Riggs 

 OSU Extension Office 

Linda Thompson 

 Fred Meyer Stores 

Ellsworth Lang 

 Kla-Mo-Ya Casino 

Mike Angeli 

 The Ledge 

Rachael Spoon

 KBHBA 

Reba Van Acker 

 The Epicenter 

Randy Shaw 

Coldwell Banker/Holman Premier 

Realty 

Ex-Officio Members 

 

City of Klamath Falls 

Klamath County 

KCEDA 

Oregon Institute of Technology 

Klamath Community College 

KUHS DECA 

Staff 

 

Charles Massie 

 Executive Director 

Heather Tramp

 Programs & Marketing Coordinator 

July 27, 2011 

Aloha Ley 

US Dept. of Transportation 

400 7th Street SW Room 6401 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket DOT-OST-2011-0119 

 Klamath Falls, OR 

Dear Ms. Ley: 

The Klamath County Chamber of Commerce is pleased to submit this letter of support 

for the Klamath Falls Airport grant application to the U.S. Department of 

Transportation Small Community Air Service Development Grant Program. We 

believe that there is high demand for a second round trip flight between Portland and 

Klamath Falls and that it will contribute greatly to the economic vitality of our area. 

We recognize the importance of quality commercial air service to the economy 

through improved access for visitors, and most importantly, to support area 

businesses, organizations and institutions. 

We are willing to donate $5,000 of local advertising and marketing support to promote 

air service between Klamath Falls and Portland should the Klamath Falls Airport 

receive a grant. 

The contemplated improvements will bring the material benefits of scheduled air 

transportation to a broad section of the traveling public, including businesses, 

educational institutions, and other enterprises whose access to the national air 

transportation system is limited. 

Again, the Klamath County Chamber of Commerce strongly supports this grant 

application and we hope that you will give it favorable consideration. 

Sincerely, 

Charles Massie 

Executive Director 

 
6400 Highway 66, Klamath Falls, OR 97601 

Phone: 54 1-884-2240 Fax: 54 1·880·548 T JWTR 

July 28, 2011 

Aloha Ley 

US Dept. of Transportation 

400 i h Street SW Room 6401 

Washington, DC 20590 

Subject: 	 Small Community Air Service Development Grant Application 

Docket DOT -OST-2011-0119 

Klamath Falls, OR 

Dear Ms. Ley: 

JWTR, LLC is pleased to submit this letter of support for the Klamath Falls Airport grant 

application to the U.S. Department ofTransportation Small Community Air Service 

Development Grant Program. We believe that there is high demand for a second round trip 

flight between Portland and Klamath Falls and that it will contribute greatly to the economic 

vitality of our area. We recognize the importance of quality commercial air service to the 

economy through improved access for visitors, and most importantly, to support area businesses, 

organizations and institutions. 

JWTR, LLC is pledging $1,500 in cash towards the advertising and promotion of this 

second roundtrip flight to Portland. 

The contemplated improvements will bring the material benefits of scheduled air 

transportation to a broad section ofthe traveling public, including businesses, educational 

institutions, and other enterprises whose access to the national air transportation system is 

limited. 

Again, JWTR, LLC strongly supports this grant application and we hope that you will give it 

favorable consideration. 

President 

SKYlAKES
 

MEDI \L CE :TER 

!FE: HALING: PEAC ~.

2SI1:; Dilggelt \\Tntll' 

KI'lll1'lth r<lll 01 J7h( I 

Ph 'i-ll SS2 (111 

h 541 2/ 11 725 

P,lull'. 'it '\ ,lrt 

1'1 ""jd 'Ilt " lEO 

July 27, 2011 

Aloha Ley 

US Dept. of Transportation 

400 7th Street SW R~m MOl 

Washington, DC 20590 

Subject:	 Small Community Air Service Development Grant Application 

Docket DOT-OST-2011-0119 

Klamath Falls, OR 

Dear Ms. Ley: 

Sky Lakes Medical Center is pleased to submit this letter of support for the Klamath Falls Airport 

grant application to the U.s. Department of Transportation Small Community Air Service 

Development Grant Program. We believe that there is high demand for a second round trip flight 

between Portland and Klamath Falls and that it will contribute greatly to the economic vitality of 

our area. We recognize the importance of quality commercial air service to the economy through 

improved access for visitors, and most importantly, to support area businesses, organizations and 

institutions. 

Sky Lakes Medical Center pledges $1,500 in cash towards the advertising and promotion of this 

second roundtrip flight to Portland. 

The contemplated improvements will bring the material benefits of scheduled air transportation to a 

broad section of the traveling public, including businesses, educational institutions, and other 

enterprises whose access to the national air transportation system is limited. 

Again, Sky Lakes Medical Center strongly supports this grant application and we hope that you 

will give it favorable consideration. 

7~-----"' Paul R. Stewart 

President and CEO 

07/28/2011 IQ:31 SQ18842845 INNNE BROADCASTII'JG 

July 27, 2011 

Aloha Lt~y

US Dept. of Transportation 

400 7th Street SW Room 6401 

Washington, DC 20590 

Subject:	 Small Community Air Service Development Grant Applicat on 

Docket DOT·OST··2011-0119 

Klamath FalJs, OR 

Dear Ms. Ley: 

Vlynne Broadcasting is pleased 10 submit this letter OfSUPPClrt for the Klan:ath Falls Airport 

grant appHcatbn to the U.S. Department of Transportation SmaJl Comm1Ully Air Service 

Development Grant Program. We believe th.at there is high demand for a s ~cond round trip 

flight between P,xtland aDd Klarr".ath FaIls and that it will contribl1te great!;' to the economic 

vitality of our area, We recognize the importance of quality commercial ai . service to the 

economy t.lJrQugh improved <J.Gcess for visitors, i?.nd most importantly, to su pport area businesse,;, 

organizations and institutions. 

We W: \Villing to donate $3,000 of advertising to promote air servic.e betw :efJ Klamath Falls al.d 

P01tlancl should the Klamath Falls Airport receive a grant 

The contemplated improvements 'N111 bring th\': material benefits ofschedu ,ed air transportatior 

to a broad. Sel.'tioD ofljle traveling public~ including b\lSinesses.. educatiQoa institutions, and otl.e.r 

enterprises whose access to the national air transportation system is limitec, 

Again, WyntiC Broadcasting strongly supports thjs grant application and v, e hope thai you "Yill 

give it f::\vorable consideration, 

Sinctdty, ''-1 

I~~~~n/X:

Wynne Brooad~asting Co., Jne, • P.O. Box 141Q • K!am211h r<lU3. OR 97601·02lH • pn. {541 ) eS;J·4656 • fa); (541} ~.84-2845
DEPARTMENT OF THE AIR FORCE 

173D FIGHTER WING 

KINGSLEY FIELD OREGON 

08 July 2011 

Mr. Michael Thompson 

VP Market Development 

SkyWest Airlines 

444 South River Road 

St George, Utah 84790 

Dear Mr Thompson: 

I understand that United Express which is being operated by SkyWest is considering restoring a flight to 

and from Portland for at least two flights to and two flights from Portland Airport each day. We are 

specifically interested in an early departure to Portland from Klamath Falls and a late return to Klamath 

Falls. 

It is difficult to calculate an exact amount of support due to the fact that we do not have prices, timetables, 

or a specific time for when service would begin; However, based on our best good faith estimate, and 

assuming schedules and process would remain at their current level, or improve, we estimate our 

commitment to fly United Express to Portland would increase by 45 roundtrips per month 

Kingsley Field is the nation's premier training site for F-15 pilots, and home of more than 800 citizen 

Airmen. Co-located at the Klamath Falls Airport, it is our mission to prepare the next generation of fighter 

pilots, in addition to serving our state and Nation during times of peace and war. The men and women of 

Kingsley field routinely travel all over the United States for training, conference attendance, and other duty 

directed purposes. The addition of additional airline service would greatly enhance our ability to travel 

effectively. 

We hope your early review of increasing the number of trips between Portland and Klamath Falls is a 

favorable one and we look forward to further discussions with representatives of SkyWest, United 

Express, the Klamath County Chamber of Commerce and the City of Klamath-Falls Airport. 

Sincerely, 

;7je~

VAMES ~MI:ER, Colonel, ORANG 

Commander 

Cc:	 Klamath County Chamber of Commerce, 205 Riverside Drive Suite A, Klamath Falls, OR 97601;
 

Klamath Falls Airport, 6775 Arnold Avenue, Klamath Falls, Or 97603
 
I4i 002/002 07/28/2011 08:07 FAX 541 883 3724 BELL HARDWARE KFALLS 

July 27,2011 

Aloha T,ey
 

US Dept. of Transponation
 

400 7th Street SW RooUl 6401
 

Washington, DC 20590
 

Subje<:t: Small Community Air Service Development (irant Application
 

Docket DOT-OST-2011-0119
 

Klamath Falls~ OR
 

Dear Ms. Ley: 

Bell Hardware is plt~ased to submit thi~ letter ofsupport J()T the Klamath Fall~ Airport 

grant application to the U-S. Department ofTransportation Small Community Air Service 

Development Grant Program. We believe that there is high demand for a second round trip 

flight betwcen Portland and Klamath Falls and that it will c<Jntributc greatly to the economic.; 

vitality of our area. We recognize the importance of quality commercial air service to the 

economy tluough improved access for visitors, and most importantly, to support area businesses, 

organizations and institutions. 

It is difficult to calculate an exact amount ofsupport due to the fact that we do not have prices, 

timetables, or a specific time for when service would begin; however, based on our best good 

faith estimates we would expect to commit to an additional 4 roundtrips to Portland per month. 

The contemplated improvements will bring the matcrial benefits of scheduled air transportation 

to a broad section ofthe traveling public, including businesses, educational institutions, and other 

enterprises whose access to the national air transportation system is limiteu. 

Again, Bell Hardware strongly supports this grant application and we hope that you 

will give it favorable consideration. 

\ Preside t
 

~_Hell ardware
 

Sincerely, 

\ 

/ 

( John B 11 
07/25/2011 1520 TEL 5418841970 CASCADE	 @ 001 

July 27, 2011 

Aloha Ley 

US D~t. of Transportation 

4300 7 S~ SW Room 6401 

Washington, DC 20590 

Subject:	 Small Community Air Service Development Grant Application 

Docket DOT-OST-2011-0119 

Klamath Falls, OR 

DeIII' Ms. Ley: 

Cascade Auto Group is pleased to submit this letter of support for the KI8TTIatfJ Falls Airport grant 

application to the U.S. Department of Trnnsportation Small Community Air Service Development Grant 

Program. We believe that there is high demand for lL second round trip fligbt between PortlWld and 

Klamath Falls and that it will contribute greatly to the economic vitalitY of OW' area. We recognize the 

importance of quality commercial air service to the economy through improved access fur visito~. lUld 

most importantly, to support area businesses, ol"ganiozations and institutions. 

It is difficult to calculate an exact amount of support due to the fact that we do not have prices, timetables, 

or a specific time for when service would begin; however, based on our best good faith estimates we would 

expect to commit to an additional 6 roundtrips to Portland per month. 

The contemplated improvements will bring the material benefits ofscheduled air transportAtion to a broad 

section of the traveling public, including bUllinesses, educational instirutions and other enterprises whose 

access to the national air transportation system is limited. 

Again, Cascade Auto Group strongly supports this grant application and we hope that you will give it 

favorable consideration. 

Sincerely, 

Trish Salvati 

General Manager 

CASCADE AUTO GROUP 

~.o. Box 7399 • 2810 Washbum Way • KI~math 'Fells, OR 97602-0399 • Fax: 541.8S.4·101S • Bus: 541.883.7701 : .' : .) .' .. :~.~.";"

July 27, 2011 

Aloha Ley 

US Dept. of Transportation 

400 7th Street SW Room 6401 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

Docket DOT-OST-2011-0119 Klamath Falls, OR 

Dear Ms. Ley: 

Holliday Jewelry is pleased to submit this letter of support for the Klamath Falls Airport grant 

application to the U.S. Department of Transportation Small Community Air Service 

Development Grant Program. We believe that there is high demand for a second round trip flight 

between Portland and Klamath Falls and that it will contribute greatly to the economic vitality of 

our area. We recognize the importance of quality commercial air service to the economy through 

improved access for visitors, and most importantly, to support area businesses, organizations and 

institutions. 

It is difficult to calculate an exact amount of support due to the fact that we do not have prices, 

timetables, or a specific time for when service would begin; however, based on our best good 

faith estimates we would expect to commit to an additional 12-15 round-trips to Portland per 

year. 

The contemplated improvements will bring the material benefits of scheduled air transportation 

to a broad section of the traveling public, including businesses, educational institutions, and other 

enterprises whose access to the national air transportation system is limited. 

Again, Holliday Jewelry strongly supports this grant application and we hope that you will give 

it favorable consideration. 

Sincerely, 

Raymond E Holliday
July 27, 2011 

Aloha Ley 

Office of Aviation Analysis 

1200 New Jersey Avenue, SE, W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket DOT-OST 2011-0119 

 Klamath Falls, OR 

Dear Ms. Ley: 

JELD-WEN, inc. is pleased to submit this letter of support for the Klamath Falls Airport grant 

application to the U.S. Department of Transportation Small Community Air Service Development 

Grant Program (SCASDP). We believe that there is high demand for a second round trip flight 

between Portland and Klamath Falls and that it will contribute greatly to the economic vitality of 

our area. We recognize the importance of quality commercial air service to the economy through 

improved access for visitors, and most importantly, to support area businesses, non-profit 

organizations, and educational and healthcare institutions. 

It is difficult to calculate an exact amount of support due to the fact that we do not have prices, 

timetables, or a specific time for when service would begin. However, based on our best good 

faith estimates we would expect to commit to an additional 200 roundtrips to Portland per month, 

and this number could increase significantly as economic conditions improve. 

The contemplated improvements will bring the material benefits of scheduled air transportation to 

a broad section of the traveling public, including businesses, educational institutions, and other 

enterprises whose access to the national air transportation system is limited. 

Again, JELD-WEN strongly supports this grant application and we hope that you will give it 

favorable consideration. 

Sincerely, 

Michelle Halle 

External Affairs 
Klamath Youth Development Center

2210 Eldorado Avenue ● Klamath Falls, OR 97601 ● (541) 883-1030 

July 27, 2011 

Aloha Ley 

US Dept. of Transportation 

400 7th Street SW Room 6401 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

 Docket DOT-OST-2011-0119 

 Klamath Falls, OR 

Dear Ms. Ley: 

I am writing in support of the Klamath Falls Airport grant application to the U.S. Department of 

Transportation Small Community Air Service Development Grant Program. 

I operate the largest mental health clinic for children in this region of the state. I also currently 

serve on two state mental health planning and advisory committees, both of which meet monthly 

in either Salem or Portland. Also, when the Oregon Legislature is in session, I travel more 

frequently to Salem to advocate for issues important to my industry. Prior to reducing flights 

going north from Klamath Falls my routine practice was to fly to Portland, rent a car to attend my 

meetings, then fly back to Klamath Falls in the late afternoon or later that night. Since flights 

have been reduced I've been forced to drive to these meetings, which is not a very efficient use 

of time. I would much prefer to return to the one day travel cycle. 

I believe that there is high demand for a second round trip flight between Portland and Klamath 

Falls and that it will contribute greatly to the economic vitality of our area. We recognize the 

importance of quality commercial air service to the economy through improved access for 

visitors, and most importantly, to support area businesses, organizations and institutions. 

It is difficult to calculate an exact amount of support due to the fact that we do not have prices, 

timetables, or a specific time for when service would begin; However, based on our best good 

faith estimate, and assuming schedules and process would remain at their current level, or 

improve, we estimate our commitment to fly United Express to Portland would increase by at 

least two roundtrips per month. 

The contemplated improvements will bring the material benefits of scheduled air transportation 

to a broad section of the traveling public, including businesses, educational institutions, and 

other enterprises whose access to the national air transportation system is limited. I strongly 

support this grant application and we hope that you will give it favorable consideration. 

Sincerely, 

Stanley Gilbert 

Stanley Gilbert, Chief Executive Officer 

Hands-on education for real-world achievement

Christopher G. Maples, President

3201 Campus Drive

Klamath Falls, OR 97601 USA

Phone: 541.885.1112

FAX: 541.885.1101

chris.maples@oit.edu

July 27, 2011

Aloha Ley

US Dept. of Transportation

400 7th Street SW Room 6401

Washington, DC 20590

Subject: Small Community Air Service Development Grant Application

Docket DOT-OST-2011-0119

Klamath Falls, OR

Dear Ms. Ley:

Oregon Institute of Technology is pleased to submit this letter of support for the Klamath Falls 

Airport grant application to the U.S. Department of Transportation Small Community Air 

Service Development Grant Program. We believe that there is high demand for a second round 

trip flight between Portland and Klamath Falls and that it will contribute greatly to the economic 

vitality of our area. We recognize the importance of quality commercial air service to the 

economy through improved access for visitors, and most importantly, to support area businesses, 

organizations and institutions.

It is difficult to calculate an exact amount of support due to the fact that we do not have prices, 

timetables, or a specific time for when service would begin; however, based on our best good 

faith estimates we would expect to commit to an additional 6-12 roundtrips to Portland per 

month.

The contemplated improvements will bring the material benefits of scheduled air transportation 

to a broad section of the traveling public, including businesses, educational institutions, and other 

enterprises whose access to the national air transportation system is limited. 

Again, Oregon Institute of Technology strongly supports this grant application and we hope that 

you will give it favorable consideration.

Sincerely,

Christopher G. Maples

President
July 27, 2011 

Aloha Ley 

US Dept. of Transportation 

400 7th Street SW Room 6401 

Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application 

Docket DOT-OST-2011-0119 

Klamath Falls, OR 

Dear Ms. Ley: 

Seasons Change LLC is pleased to submit this letter of support for the Klamath Falls Airport 

grant application to the U.S. Department of Transportation Small Community Air Service 

Development Grant Program. We believe that there is high demand for a second round trip 

flight between Portland and Klamath Falls and that it will contribute greatly to the economic 

vitality of our area. We recognize the importance of quality commercial air service to the 

economy through improved access for visitors, and most importantly, to support area businesses, 

organizations and institutions. 

It is difficult to calculate an exact amount of support due to the fact that we do not have prices, 

timetables, or a specific time for when service would begin; however, based on our best good 

faith estimates we would expect to commit to an additional 3 roundtrips to Portland per year. 

The contemplated improvements will bring the material benefits of scheduled air transportation 

to a broad section of the traveling public, including businesses, educational institutions, and other 

enterprises whose access to the national air transportation system is limited. 

Again, Seasons Change LLC, strongly supports this grant application and we hope that you 

will give it favorable consideration. 

Sincerely, 

Angela Day 

Office Manager 
JUL-2&-2011 (TUE) 07: 38 POOl/DOl 

STERLING r;;.)SIn 

SAVINGS BANK~

_____ 8USINESS SANKING 

To Whom it May Concern, 

Sterling Savings Bank has 5 branches and a commercial banking team in Klamath County. Our corporate 

head quarters are in Spokane. We are often called to Spokane or Portland for business meetings and 

training. Since United Express took over air service, I personally have found that travel from Klamath 

Falls is not efficient. Two out of three trips I took with them left me ln other locations (once Medford 

and once in Redding) where I was responsible for getting myself home. This caused an additional 

expense to Sterling Savings Bank and a loss of productivity. 

I currently fly out of Medford when I need to make a business trip since they have good connections and 

seem to be able to get you where you want to go. I would appreciate additional connections to 

Portland in the early morning. I know that there are other Sterling Savings employees that would utilize 

the flight as well. Thanks for the consideration. 

I 

~~Jennifer Scanlan 

Commercial Banking Team Leader 

Sterling Savings Bank 

541-880-7100 

540 MAIN STREET
 

KLAlvlATH FALLS, OR 97601
 

I:' H 0 N E:: 4 1 • 1;1 EI Z - 3 4 4 4 FAX: 5 4 1 • Z 7 :3 - 0 6 5 6
 
July 27, 2011 

Aloha Ley 

 US Dept. of Transportation 

400 7th Street SW Room 6401 

 Washington, DC 20590 

Subject: Small Community Air Service Development Grant Application Docket 

DOT-OST-2011-0119 

 Klamath Falls, OR 

Dear Ms. Ley: 

Yainix Ranch is pleased to submit this letter of support for the Klamath Falls Airport 

grant application to the U.S. Department of Transportation Small Community Air Service 

Development Grant Program. We believe that there is high demand for a second round 

trip flight between Portland and Klamath Falls and that it will contribute greatly to the 

economic vitality of our area. We recognize the importance of quality commercial air 

service to the economy through improved access for visitors, and most importantly, to 

support area businesses, organizations and institutions. 

It is difficult to calculate an exact amount of support due to the fact that we do not have 

prices, timetables, or a specific time for when service would begin; however, based on 

our best good faith estimates we would expect to commit to an additional 4 roundtrips to 

Portland per month. 

The contemplated improvements will bring the material benefits of scheduled air 

transportation to a broad section of the traveling public, including businesses, educational 

institutions, and other enterprises whose access to the national air transportation system is 

limited. 

Again, Yainix Ranch strongly supports this grant application and we hope that you will 

give it favorable consideration. 

Sincerely, 

Becky Hyde