Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

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

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

Legal Sponsor Name: 

City of Idaho Falls - Idaho Falls Regional Airport

DUNS Number:

09-202-7010

EIN/Tax ID:

86-6000208

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

1. IDAHO FALLS REGIONAL AIRPORT, IDAHO FALLS, IDAHO

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

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

1. Idaho Falls Regional Airport (IDA)
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013

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

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. ID-02

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

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

Development Program Grant

If previous recipient: Year of grant(s): 2005 & 2010

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

PUBLIC PRIVATE

1. City of Idaho Falls - Idaho Falls Regional Airport 1.Idaho National Laboratory

2. 2.Idaho Falls Chamber of Commerce

3. 3.Grow Idaho Falls Economic Development Agency

4. 4.Post Register newspaper

5. 5.Various local radio stations

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

X
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $500,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds $50,000

3 Total local cash funds (3a + 3b) $50,000

4 TOTAL CASH FUNDING (1+2+3) $550,000

In-Kind contribution

5a Airport In-Kind contribution** $37,500

5b Other In-Kind contribution** $10,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) $47,500

6 TOTAL PROJECT COST (4+5) $597,500

J. IN-KIND CONTRIBUTIONS**

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

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

Airport will waive landing fees for additional flights; local media companies will offer discounts on 

advertising.
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013

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

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

Process for review on (date) _____________.

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

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

L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE EXPLANATION)

No Yes (explain) 

_____________________________________________________________________________________________
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 1

TABLE OF CONTENTS

Legal Sponsor 1

Introduction 2

The Idaho Falls Air Service Market 4

Idaho Falls Leakage Problem 9

The Idaho Falls Economy 11

Major National Parks Near Idaho Falls 13

History of Minneapolis Service 14

Service Development Plan: Idaho Falls - Minneapolis 15

Proposed Budget and Timeline 18

Public/Private Partnership 19

Conclusion 20

LEGAL SPONSOR

Idaho Falls Regional Airport is the legal sponsor responsible for administering the proposed air 

service development program. The Airport is a government agency, operated by the City of 

Idaho Falls.

Idaho Falls Regional Airport

2140 North Skyline Drive

Idaho Falls, Idaho 83405

Craig Davis, Airport Director

(208) 612-8221

chdavis@idahofallsidaho.gov

Section Page Number
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 2

INTRODUCTION

Idaho Falls Regional Airport is seeking a federal Small Community Air Service Development 

(SCASD) Grant. The Airport has been tremendously active in air service development over the 

last decade, recruiting new air service on eight new routes. Five of those eight routes remain in 

service today. Unfortunately four routes from Idaho Falls have been discontinued due to the 

difficult economic and airline industry environment over the last five years. Airlines are 

becoming increasingly risk-averse in selecting and beginning new routes. The Airport now finds 

itself in an environment where additional air service development is very challenging without the 

help of a SCASD Grant.

The Airport serves a large area in eastern Idaho that is home to more than 660,000 people. It has 

seen its network airline seats decline by 29% in the last five years, causing fares to jump to an 

average of $230 each way – which ranks as the third highest average fare in the Mountain West. 

Because of this challenge the Airport has seen a 

temporary dip in traffic since 2007. However, 

traffic is beginning to improve. In 2012, 314,000 

passengers were travelling through the airport. 

This is only 4,000 fewer passengers than the 

Airport’s record year in 2007.

Idaho Falls Regional Airport benefits from regular 

scheduled nonstop service to six destinations as of August 2013. All of these markets are in the 

West. Four of the six markets are Allegiant markets that offer no beyond connectivity. The 

remaining two markets, Salt Lake City and Denver, offer limited connectivity to the Midwest and 

East Coast, respectively. These hubs’ primary mission is to connect travelers to communities in

the West and communities on the western edge of the Midwest. Minneapolis/St. Paul is the 

largest market from Idaho Falls that is within range of regional jet aircraft and is east of the 

Mountain West region. This combination makes Minneapolis the closest and largest hub that 

would allow access not only to the Minneapolis local market, but to the vast array of 

destinations east of Minneapolis. Today many of these destinations require two stops, have only 

one competitor, or both. This results in very high air fares in these markets. Because of the 

potential of this market, Northwest Airlines (now Delta Air Lines) served this route from 2005-2009. 

The service was discontinued in the midst of record high fuel prices and the subsequent 

economic recession.

“Unfortunately four routes from Idaho 

Falls have been discontinued due to 

the difficult economic and airline 

industry environment over the last 

five years.”
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 3

The Airport is seeking $500,000 in federal assistance to provide a revenue guarantee to 

reestablish service to Minneapolis/St. Paul. The Airport has put together a coalition of local 

support to help provide matching dollars for the project, and to provide broad outreach to 

ensure new service is immediately supported. The Airport has worked with many of these 

partners in the past to ensure support 

and cooperation for new service to 

previous markets. Two of these 

markets were supported by SCASD 

grants. In 2005 a SCASD grant was 

awarded for Denver service. This 

market was so successful that United 

Airlines never collected the grant 

money in the Denver market. Even though the SCASD grant funds were not used, the grant was 

successful because it gave United Airlines the risk abatement it needed to begin the service. 

That service has doubled in seats and is thriving today. The community came together again for 

a second SCASD grant for San Francisco service that was obtained in 2010. United Airlines 

began that market the following year. The market successfully generated new traffic and used 

the full value of the grant. This delivered the promised community benefits of the service for 18 

months, at which time the service was discontinued. With traffic levels growing at Idaho Falls the 

Airport believes the time is right to provide the risk abatement needed to reinstate service to 

Minneapolis/St. Paul.

“The Airport has put together a 

coalition of local support...and has 

worked with many of these partners 

in the past....for new service to 

previous markets.”
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 4

THE IDAHO FALLS AIR SERVICE MARKET

Current and Historical Air Service

The Idaho Falls Regional Airport is the main gateway for air travel in the eastern Idaho corridor. 

As the only airport in its region with service on more than one carrier, and the only airport with 

low cost airline service, the Airport has a large role in connecting dozens of cities to the national 

air transportation system.

Due to its relative isolation, Idaho Falls’ service can draw from a very large geographic area –

farther than even the two hour catchment represented in gray in Map 1. This area is home to 

665,359 people as of 

the 2010 US Census. 

There are 294,557 

people within one 

hour of the airport 

which is represented 

in red. The nearest 

competing airports 

with year-round low 

cost carrier service are 

in Boise, ID, which is 

over four hours away 

by car, and Salt Lake 

City, UT, which is 

nearly four hours away 

by car. 

Due to the large number of people in the Airport’s catchment area, several carriers have 

chosen to serve Idaho Falls Regional Airport. As of July 2013, the Airport is served by Delta Air 

Lines, United Airlines, and Allegiant Air. Altogether, Idaho Falls Regional Airport has non-stop 

service to six cities (see Map 2, next page). Only four of those cities are year-round service as 

the Allegiant service to both Oakland (OAK) and Los Angeles (LAX) are flown in the summer 

season only.

MAP 1: Idaho Falls Airport Catchment Area

Source: Sixel Consulting Group, 2010 US Census Estimates
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 5

As of August of 2013, carriers 

serving Idaho Falls Regional

Airport will offer 13% fewer seats 

than they offered at the same 

time last year (see Figure 1). 

United’s available seats are 

down 21%, with the 

cancellation of non-stop service 

to San Francisco. 

Additionally, Allegiant has

reduced significant capacity in 

the Oakland market. This 

change will force westbound 

traffic from Idaho Falls to use 

Delta connecting service via 

Salt Lake City to reach points on 

the West Coast. With Delta’s 

capacity being flat to Salt Lake 

City, these changes will have 

the effect of reducing the seats 

available for eastbound passengers connecting in Salt Lake City. This will further tighten the 

supply of seats to reach important destinations for travelers in Idaho Falls. 

The result of these 

capacity shifts is that 

Delta offers about half 

of Idaho Falls available 

seats as of August 2013 

(see Figure 2). 

Allegiant capacity has 

remained stable at 

approximately 22%. 

United has also held 

steady with about 29% 

of Idaho Falls available airline seats.

FIGURE 1: Scheduled Service at Idaho Falls Regional Airport, 8/12 vs. 8/13

Source: Sixel Consulting Group; OAG Schedule Data, August 2013

MAP 2: Current Service at Idaho Falls Airport

Source: Sixel Consulting Group; OAG Schedule Data, July 2013

Non-Stop Departures Seats Departures Seats Capacity

Destination Per Day Per Day Per Day Per Day Change

Delta SLC 5.4 315 5.7 305 -3%

Delta Total 5.4 315 5.7 305 -3%

United DEN 3.6 181 3.6 182 1%

SFO 1.0 50 0.0 0 -100%

United Total 4.6 231 3.6 182 -21%

Allegiant AZA 0.3 48 0.3 48 0%

LAS 0.3 48 0.3 48 0%

LAX 0.1 21 0.1 21 0%

OAK 0.3 48 0.1 21 -56%

Allegiant Total 1.0 170 0.8 139 -18%

Idaho Falls Total 11.0 716 10.2 626 -13%

Aug-12 Aug-13

Carrier

Idaho Falls

OAK

AZA

LAS

LAX

SLC

DEN
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 6

Airline capacity at Idaho Falls Regional

Airport has experienced a dip as have origin 

and destination passengers. Since 2007, 

Idaho Falls passengers dipped and then 

largely recovered. In 2012 there were 430

passengers per day each way (PDEW) (see 

Figure 3). The recovery can be attributed 

primarily to Allegiant. However, network carrier passengers are very recently beginning to grow 

again. Idaho Falls now has growth in both the low fare leisure end of the market and the higher 

fare business portion of the market. This simultaneous growth illustrates the broad strength of the 

economy and travel market in Idaho Falls.

FIGURE 3: O&D Passengers, Average One Way Fares, and Network Carrier Fares - Idaho Falls Regional Airport

Source: US DOT OD1A, Calendar Year 2004 – Calendar Year 2012

FIGURE 2: Seat Capacity Share by Carrier, Idaho Falls Regional Airport

Source: Sixel Consulting Group; OAG Schedule Data, August 2013
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 7

An analysis of average one way fares in 

Mountain West markets shows that Idaho Falls 

has the third highest average fare in the 

region as of 2012. The one way average in 

Idaho Falls is $230 (see Figure 4). Only 

Jackson Hole and West Yellowstone, 

Wyoming, had a higher average fare in 2012 

than Idaho Falls. Both Airports have the 

absence of low fare carriers. In addition,

Jackson Hole is primarily a very high-end ski 

destination that mostly brings in-bound 

tourists as opposed to serving the local 

population. West Yellowstone is a summer 

seasonal market with limited service by props. 

When Allegiant passengers are removed from 

the Idaho Falls analysis, the average network 

carrier fare jumps to an astronomical $316 each 

way in 2012 (see Figure 3, previous page)! This is 

a whopping 65% increase since 2004. This is 

much higher than even high-end Jackson Hole. 

The market’s non-Allegiant fare is the highest 

average network carrier fare in the Mountain 

West in 2012, bar none. Indeed, it is one of the 

highest average fares in the country. However, it 

is interesting that the high fares in Idaho Falls do 

not appear to be suppressing traffic, as the 

market has nearly recovered to within striking 

FIGURE 5: Average One Way Fares at Top 25 Markets at IDA

Source: US DOT OD1A, Calendar Year 2012

FIGURE 4: Avg. One Way Fare in Mountain West Markets 

Source: US DOT OD1A, Calendar Year 2012
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 8

distance of its record passenger year in 2007 even as fares have risen in the last few years.

Allegiant’s impact is also seen in the list of Idaho Falls’ top origin and destination passenger 

markets. The four markets to which Allegiant has provided non-stop service – Las Vegas, 

Phoenix/Mesa, Los Angeles, and Oakland – all rank in the top four largest markets for 2012 (see 

Figure 6). Idaho Falls Regional Airport generated an average of 45 PDEW to and from Las Vegas 

in 2012, 44 PDEW to and from Phoenix/Mesa, 35 PDEW to and from Los Angeles, and 29 PDEW to 

and from Oakland. These markets also have very low fares (Figure 5, previous page). The 

average Allegiant fare to all of these markets is less than $100. In contrast, all of the other top 25 

markets have fares in excess of $200 without any exceptions.

While Allegiant’s service at Idaho Falls Regional Airport provides the region with a low cost 

alternative for leisure travel, the core of the Idaho Falls market is driven by eastern Idaho

businesses. Large nuclear research and technology companies, such as Idaho National Lab 

(INL), generate vast amounts of passengers each day. These travelers fly primarily on network 

carriers.

Allegiant’s presence, as noted, brings down the overall average fare in the Idaho Falls market, 

but network carriers rarely match Allegiant on price. The result is high fares on all other carriers, 

even in markets where they directly compete with Allegiant. If you travel for business, and must 

FIGURE 6: Top 25 O&D Passenger Markets at Idaho Falls Airport

Source: US DOT OD1A, Calendar Year 2012
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 9

travel on specific days of the week, or at specific times, Allegiant is rarely an option. The Idaho 

Falls business travelers subsequently pay much more for access to the national air transportation 

system than the average fares would illustrate.

Despite some of the highest fares in the West, passenger traffic in Idaho Falls is growing. From 

2011 to 2012 traffic grew over 7%. This is at an increased pace from the prior year and marks the 

fourth year in a row of consecutive traffic growth.

If we take a look at airline seat deployment we find two distinctly different trends. Since 2007 

Allegiant Air has grown 256% in seat capacity in Idaho Falls. On the other hand, network carrier 

capacity is down 29% over that same period. This is putting an increasing squeeze on 

passengers that rely on that network carrier access, which is the only way to get to the vast 

majority of destinations in the United States and, indeed, the world.

The market’s respectable traffic growth, coupled with high average fares, indicate the ability of 

the market to profitably support its air service. It also illustrates the need for additional 

competition. There has been be a gap in non-stop connectivity with the loss of Minneapolis

service on Northwest, and that gap would be best filled by a network carrier offering daily flights.

IDAHO FALLS MARKET LEAKAGE PROBLEM

In addition to Idaho Falls having very high average fares it also has the unenviable distinction of 

losing – or leaking – the majority of its traffic to other airports. A mammoth 70% of Idaho Falls 

area travelers are not using Idaho Falls Regional Airport. This equates to over 1,000 passengers 

per day each way! These passengers are not leaking to some of the geographically close 

airports such as Pocatello, ID, or Jackson Hole, WY. They are crossing state boundaries by driving 

almost four hours to Salt Lake City International Airport. Salt Lake City is the primary airport for 

67.7% of Idaho Falls area travelers (see figure 7 next page). There is a minimal amount of traffic, 

1.8%, that leaks to Boise, ID, and only a handful of people leak to other airports in the region.
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 10

Keep talking about leakage for 

As can be seen in the figure below, if we look at the revenue picture of Idaho Falls area travelers 

we find that they create a $212 million market annually. $71.7 million or 33.8% of that revenue is 

originating at Idaho Falls Regional Airport. A look at the average fare at Salt Lake City reveals a 

$192 average fare. This compares to Idaho Falls at a much higher $230 average fare. This shows 

that high fares are a factor in passengers’ decisions to drive almost four hours to Salt Lake City to 

catch a flight.

Although fares 

are certainly a 

factor in the 

Idaho Falls 

leakage there is 

another element 

at work here. We 

see that Boise, ID,

FIGURE 7: Airport usage for Idaho Falls area passengers as measured in PDEW

Source: Sixel Consulting Group Ticket Analysis, CY2012

FIGURE 8: Average fares paid and revenue generated by Idaho Falls area passengers

Source: Sixel Consulting Group Ticket Analysis, CY2012
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 11

which is both closer to, and has lower average fares than, Salt Lake City is receiving only a tiny 

1.5% of the Idaho Falls area revenue (see Figure 8, previous page). This suggests access is 

another factor in the travelling public’s decisions. Right now Boise and, especially, Idaho Falls,

offer limited access to the East Coast and Midwest. Many of these passengers are leaking to the 

much larger Salt Lake City because it has either one-stop or non-stop service to most points in 

the US. This Idaho Falls access shortfall can be improved with a link to Minneapolis/St. Paul.

THE IDAHO FALLS ECONOMY

Idaho Falls features an economy that has high-education, high-income jobs. Idaho Falls is the 

national center for nuclear and high-tech energy – home to more than 4,000 engineers working 

for various companies at the Idaho National Laboratory, which is operated by the Department 

of Energy (see Figure 9). Idaho Falls is uniquely positioned as the home to groundbreaking future 

research and, as such, the Inland Northwest Research Alliance chose the City as its home.

The Idaho National Lab – the world’s leading nuclear research facility – continues to grow in 

2013 with two new laboratories. The Energy Systems Laboratory will add jobs for 40 new 

scientists. It focuses on three main research areas: biofuels and renewable energy, energy 

storage and transportation systems, and Hybrid Energy Systems Testing. Facility researchers will 

work on developing safer and longer-lasting batteries and energy storage. That capability will 

allow researchers to work with the 

automotive industry in hybrid 

vehicle development.

A second new building, the 

Research and Education 

Laboratory, will be completed by 

September 2013. At the facility, 

researchers will study how various 

scientific equipment behaves with 

nonradioactive fuels and materials. 

Once the tests are completed, the 

equipment will be taken to the 

FIGURE 9: Top employers in Idaho Falls

Period: CY2012
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 12

Department of Energy's desert site, where it will be subjected to radioactive elements. Research 

at the facility also will focus on energy and the environment, in labs such as a battery test lab.

Much new investment is focused on the Eastern Idaho technology corridor (see Map 3), with 

Idaho Falls at its heart. Flanking Interstate 15 from Pocatello to Rexburg, the Eastern Idaho 

Technology Corridor constitutes a unique collection of assets providing a rich environment for 

technology-based companies. Eastern Idaho is gaining national recognition as home to a 

growing number of companies whose products and services are based on the development or 

application of technology in a wide array of industries ranging from the improvement of 

agricultural practices to software and systems development. Areas of expertise that are 

particularly prevalent in the area include: 

Information security, subsurface 

technology, environmental remediation, 

integrated circuit design, radiation 

sciences, and particle acceleration.

The median family income in Idaho Falls is 

among the highest in the nation at $59,850 

– moreover that income translated to the 

purchasing power of more than $69,400

due to the low cost of living. CNBC named 

Idaho Falls one of the top ten most 

affordable cities in the US in 2012. Idaho 

Falls average cost of living is just 86% of the 

national average.

The high quality jobs, high incomes, and low cost of living create a powerful economic magnet 

that continuously attracts people and businesses to the area. It also indicates growth in the 

number of people who will be able to afford to travel. With these factors in place, it stands to 

reason the market can support additional air service. It is now up to the Airport to bring 

additional air service to the region to help support its continued economic growth.

MAP 3: Eastern Idaho Technology Corridor
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 13

MAJOR NATIONAL PARKS NEAR IDAHO FALLS

More than eight million annual visitors are drawn to the attractions surrounding Idaho Falls, 

including Yellowstone and Grand Teton Parks. Idaho Falls is uniquely located as an easy access 

point to two national parks, a number of national forests, the Snake River wild lands, and the 

Teton Wilderness. Idaho Falls serves as the western gateway to both Grand Teton National Park 

and Yellowstone National Park. The gate to Yellowstone is just 107 miles, by car, from the Idaho 

Falls Regional Airport – a drive of an hour and 50 minutes. The gate to Grand Teton National 

Park is just 90 miles from the Airport – a drive of just over two hours (slower than average due to 

mountainous terrain).

AIR 

MAP 4: Yellowstone and Grand Teton National Park

Source: Sixel Consulting Group
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 14

HISTORY OF IDAHO FALLS – MINNEAPOLIS

Northwest Airlines (who has since merged with Delta Air Lines) has served the Idaho Falls –

Minneapolis market in the past. They began the service in June 2005 and the route generated 

new passengers in the local market. It also increased access to points in the Midwest and East 

Coast. In fact, before Northwest Airlines served IDA-MSP non-stop, there were only 4.5 PDEW in 

the market. The nonstop service greatly stimulated the market to where it became the 6th 

largest market from Idaho Falls with an average of 10.5 PDEW (see Figure 10). This is a 135% 

increase from the period prior to nonstop service. 

The data shows that the loads carried on the previous Minneapolis service were higher than 

what Idaho Falls saw on an average at that time. The MSP loads averaged 3.2 load factor 

points higher than the Idaho Falls market average during the period the market was served. This 

shows that there is proven demand for this service that exceeds existing markets from Idaho Falls. 

It also shows that the likelihood of this being a valuable travel asset to the community is high.

FIGURE 10: Minneapolis – Idaho Falls average fare and PDEW history

Source: US DOT OD1A, Q1 2004 – Q4 2010
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 15

Northwest Airlines pulled the market in April 2009. This was during the time of two devastating 

events for air service. The record high fuel spike occurred in 2008 and, shortly thereafter, was

followed by the economic recession. These two events changed the economic viability of flying 

across the nation. In particular, it drastically changed the economics of the 50-seat jet flying 

long routes such as Idaho Falls - Minneapolis. Airlines’ regional jet fleets have been readjusted 

and retooled to larger aircraft in the 65-90 seat range. These aircraft have improved the viability 

of long regional jet markets. This change, combined with the slow but progressing economic 

recovery, improves conditions for the Idaho Falls – Minneapolis market. However there are still 

risks that only a SCASD grant combined with Idaho Falls community support can overcome. 

SERVICE DEVELOPMENT PLAN: IDAHO FALLS - MINNEAPOLIS

Idaho Falls Regional Airport seeks the restoration of nonstop service from Idaho Falls to 

Minneapolis/St. Paul. As Minneapolis/St. Paul is northeast of Idaho Falls, the Airport has identified 

it as a key to serve markets that are either not served or inadequately served today. The Airport 

has identified that Delta Air Lines would be an ideal airline to help fill the service void that Idaho 

Falls currently has in its air service. Delta Air Lines operates a hub at MSP with as many as 500 

departures per day. Delta Air Lines has signed a letter of support this grant. This grant would 

allow risk sharing on a market that the airline is evaluating for potential new service. This service 

would provide superior access to the Midwest and East Coast.

Idaho Falls only current options are to access the Midwest and East Coast via United’s Denver 

hub and Delta’s Salt Lake City hub. Delta at Salt Lake City has a very minimal schedule to points

in the Midwest and East Coast. Denver offers slightly better options but is still compromised, and 

in many cases only serves a connecting city once per day, rendering flight schedules for timesensitive business travelers problematic.

So far in 2013, the Airport has attended two airline planning conferences and has spoken to a 

number of carriers about additional service. A common theme from these discussions is the 

need for the community to share the risk on a new route. This is particularly true with 

Minneapolis/St. Paul Service mainly due to its stage length – 939 miles – and potential regional jet 

fuel burn over that stage length. The funding plan contained in this application constitutes the 

risk sharing necessary for the service to begin.
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 16

Network carrier 

service to 

Minneapolis would 

not only serve the 

origin and 

destination market, 

it would also be 

able to connect 

Idaho Falls to a 

number of new 

one-stop 

destinations not 

served through 

current hubs. When 

analyzing the 

connection 

package on Delta 

Air Lines, there are 

95 one-stop destinations that could be served over the MSP hub (see Map 5). The Idaho Falls 

market currently generates an average of 130 passengers per day each way (PDEW) to and 

from these connecting cities and Minneapolis, itself. Currently the fares in these markets are 

incredibly high. They average $313 one way.

New Delta Air Lines service to 

Minneapolis will also bring much 

needed competition to United 

Airlines. There are currently 27 

markets that can only be served 

one-stop via United Airlines’

Denver hub (see Map 6). These 

markets currently have a 

stratospheric fare of $348 one 

way! These are good examples 

of markets that, because of 

limited competition, are driving

MAP 6: Newly Competitive One-Stop Markets via MSP, CY12

Source: Sixel Consulting Group Schedules Analysis, July 2013

MAP 5: Connections over MSP on Delta Air Lines

Source: Sixel Consulting Group Hub Builder Software, July 2013
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 17

to Salt Lake City in search for more attractive fares.

Delta Minneapolis service will connect to 38 unique one-stop cities (see Map 7). These cities all 

currently require two stops to be reached today. These markets have an average fare today of 

$352 one way. These markets 

are in great need of better 

competition and access.

As can be seen, average fares 

in many of the Idaho Falls

markets that could be served 

by Delta over MSP are 

incredibly high – they clearly 

reflect a general lack of 

competition and service 

options at Idaho Falls. As 

mentioned earlier, the overall 

average fare paid by 

passengers that could flow 

over MSP on Delta, for 2012, was $313 each way. Service to and through Minneapolis on Delta 

Air Lines would be targeting many current high fare markets, providing additional competition in 

Idaho Falls.

Idaho Falls has been awarded two previous grants. In 2005 a grant was awarded for Denver 

service. That market has been wildly successful. Demand for Denver service exploded by 123% 

(see Figure 11, next page). It went from 8.8 PDEW to 19.6 PDEW in its first full year of service. 

United entered the market with 2 flights per day. This market was so successful that United 

Airlines never collected the grant money in the Denver market. Even though the SCASD grant 

funds were not used, the grant was successful because it gave United Airlines the risk abatement 

it needed to begin the service. The route continues to be successful as evidenced by United 

more than doubling service to the current 4.5 flights per day. 

The second SCASD grant was awarded in 2010 for San Francisco service. United Airlines began 

that market the following year. The market successfully generated new traffic and used the full 

value of the grant. This delivered the promised community benefits of the service for 18 months,

MAP 7: Unique One-Stop Markets via MSP, CY12

Source: Sixel Consulting Group Schedules Analysis, July 2013
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 18

at which time the service 

was discontinued. As in 

Denver, there was sizeable 

market stimulation of 116% in 

the local market. The 

market ballooned from 6.5 

PDEW to 14 PDEW (see Figure 

11).

An emerging pattern of 

market simulation is 

remarkably similar when new 

service is added at Idaho 

Falls Regional Airport. The 

previous Northwest 

Minneapolis service stimulated the market by 135%, the new United Denver service stimulated 

the market 123%, and finally the new United San Francisco service stimulated the market by 

116%. 

PROPOSED BUDGET AND TIMELINE

The total project cost is $597,500 (see Figure 12). The majority of that funding, $500,000, will 

provide a revenue guarantee for the carrier operating the new route. If the route sees 

immediate success, as would be suggested in the data included in this application, the revenue 

guarantee portion of the funding would not be used. In addition to the revenue guarantee, the 

Airport has earmarked $37,500 for fee waivers, including landing fee discounts. The City of Idaho 

Falls, Grow Idaho Falls Economic Development Agency, Idaho National Lab, and The Idaho Falls 

Chamber of Commerce have combined forces to deliver $50,000 in direct support for the new 

service which will be used for marketing and 

advertising. In addition the Post Register newspaper

and the radio stations KLCE, KMGI, and KID-AM have 

committed a combined $10,000 in in-kind support for 

marketing and advertising purposes. This is a key to 

getting people onto the flights as soon as they begin.

FIGURE 12: Project Budget

Source: Idaho Falls Airport, July 2013

FIGURE 11: New service market simulation

Source: US DOT OD1A, YE 1Q06-YE 2Q12

Denver San Francisco

Project Component Funding Amount

Revenue Gaurantee $500,000

Marketing/Advertising $60,000

Fee Waivers $37,500

Total Project Cost $597,500
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 19

The anticipated timeline for the project assumes a Grant would be awarded in September of 

2013 (see Figure 13 on next page). If the Grant agreement with the DOT is finalized in October of 

2013, the Airport will step up its recruitment efforts in the fall, endeavoring to meet with Delta Air 

Lines through the winter. In a best-case scenario, the Airport would hope to target April of 2014 

for a new service announcement, with creative materials ready for the marketing program 

shortly after a formal service announcement. The targeted start date for service would be June 

of 2014, with a two-year revenue guarantee period, allowing the Grant to be closed by 

September of 2016.

It is possible the 

timeline could slip, 

based on economic 

factors, airline 

planning factors, and 

events outside the 

control of the Airport 

or prospective 

airlines. It is also 

possible prospective airlines could prefer to use the funding under this plan for an alternate 

route. Idaho Falls Regional Airport would like the grant to be used for alternate airports that 

would facilitate similar service benefits to Idaho Falls area travelers. Among alternate routes the 

Grant could be used for would be Chicago, Houston, or Dallas/Ft. Worth. These markets are 

similar in their reach to the Midwest and East Coast and would provide viable alternatives to 

Minneapolis.

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is 

supported by a group of community partners who have pledged their financial support for the 

effort to bring network service to Minneapolis/St. Paul. These partners include The City of Idaho 

Falls, Grow Idaho Falls Economic Development Agency, Idaho National Lab, The Idaho Falls 

Chamber of Commerce, Post Register newspaper, and the radio stations KLCE, KMGI, and KIDAM. Several of these entities have partnered before on previous successful air service 

development efforts in the community including supporting previous SCASD grants.

FIGURE 13: Project Timeline

Source: Idaho Falls Regional Airport, July 2013

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement Sepetmber 2013

Executive Grant Agreement with DOT October 2013

Meet with Airlines to Recruit Route Fall/Winter 2013 - 2014

Targeted Announcement Date for Service April 2014

Develop Creative/Launch Marketing April 2014

Targeted Start Date for Service June 2014

Submit Grant Status Reports to DOT Quarterly Q4 2013 - Q2 2016

Close Grant Sepetmber 2016
 

Proposal of Idaho Falls Regional Airport • Idaho Falls, Idaho • July 2013 20

CONCLUSION

It is clear the current Idaho Falls market can support additional service. It is also clear that 

Northwest’s previous non-stop service on the Idaho Falls – Minneapolis (MSP) route helped to 

stimulate the market to a level where it can support daily network carrier service. Despite high 

fares and less capacity, the Airport has been able to grow passengers in recent years. 2012 was 

within striking distance of record-setting 2007, but this trend will be unsustainable without 

additional service. The number one target for service that would provide the greatest benefit to 

the community is Minneapolis/St. Paul. The Airport has conducted discussions with numerous air 

carriers for increased service. Delta Air Lines has written a letter supporting our application. 

Given the history of the IDA-MSP route being entered and then exited during a time of record 

fuel prices and the beginning of the economic recession, there is a need for risk sharing to affect

a route launch.

Idaho Falls Regional Airport has applied for and successfully used Small Community Air Service 

Development Grants. It successfully launched Denver service and San Francisco service. These 

two markets service two distinctly different missions. They also serve different purposes than 

Minneapolis service would. The Airport has also had sizable success with Allegiant Air without the 

aid of SCASD grants. The Airport realizes, due to the increasingly risk-averse position of the airline 

industry, it must offer risk sharing on targeted routes. This SCASD Grant application is the key to 

additional service in Idaho Falls.