1

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application 

coversheet, a completed standard form SF424 and the full application proposal on 

www.grants.gov.

For your preparation convenience, this Summary Information schedule is located at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP

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 Klamath Falls, Oregon

DUNS Number: 01-074-3300

EIN/Tax ID: 93-6002195

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

1. KLAMATH FALLS, OREGON

2.

3.

4.

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. Klamath Falls Airport (LMT) 2.

3. 4.
2

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. OR-02 2.

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): 2007

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

PUBLIC PRIVATE

1. City of Klamath Falls, OR 1. Discover Klamath

2. 2. Klamath County Chamber of Commerce

3. 3.

4. 4.

5. 5.

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: )
3

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $135,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $20,000

3 Total local cash funds (3a + 3b) $20,000

4 TOTAL CASH FUNDING (1+2+3) $155,000

In-Kind contribution

5a Airport In-Kind contribution** $0

5b Other In-Kind contribution** $20,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

$20,000

6 TOTAL PROJECT COST (4+5) $175,000

J. IN-KIND CONTRIBUTIONS**

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

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

5a: N/A

5b: Marketing 
4

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) 

______________________________________________________________________________

______________________________________________________________________________
Application Under the Small Community 

Air Service Development Program 

Docket DOT-OST-2013-0120

Klamath Falls Airport 

Klamath Falls, OR 

 

Contact: John Longley 

Airport Director 

Klamath Falls Airport 

6775 Arnold Avenue 

Klamath Falls, OR 97603 

Phone: (541) 883-5372 

Email: jlongley@flykfalls.com 


TABLE OF CONTENTS

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

KLAMATH FALLS AIRPORT

Prepared by 

 Page Page 

Application Highlights .................................. 1

Air Service Issues ............................................... 1

Strategic Plan ...................................................... 1

Community Cost Contribution ............................. 1

Public-Private Partnership................................... 2

Material Benefits ................................................. 2

Ability to Implement Project ................................. 2

Air Service Environment .............................. 3

Remote Airport Catchment Area ......................... 3

Proximity to Alternate Airport .............................. 4

Business Community .......................................... 4

Educational and Government Institutions ........... 5

Tourism ............................................................... 5

Air Service – Existing/Historical .................. 6

Existing Air Service ............................................. 6

Historical Air Service ........................................... 6

Past Air Service Development Efforts ................. 7

Air Service Needs and Deficiencies ............ 8

Declining Air Service ........................................... 8

Market Profitability a Concern ............................. 8

Underserved Market with High Diversion ............ 9

High Airfares ..................................................... 10

Strategic Plan .............................................. 11

Project Goals .................................................... 11

Public-Private Partnership................................. 11

Proposed Plan .................................................. 11

Marketing Objectives ................................. 12

Marketing Message ................................... 12

Target Audience ........................................ 12

Marketing Plan ........................................... 12

Marketing Research Plan Overview ........... 13

Tactics/Implementation .............................. 13

Marketing Budget ....................................... 14

Campaign Timing ....................................... 14

Program Metrics ........................................ 14

Strategic Plan Funding ...................................... 14

Project Continuation and Sustainability ............. 15

Previous Grant Recipient - New Project and 

Goals ................................................................ 15

Schedule and Monitoring ........................... 16

Critical Milestones ............................................. 16

Monitoring Program .......................................... 16

Appendix A Letters of Support................. 17
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 1 

KLAMATH FALLS AIRPORT

SECTION 1 

APPLICATION HIGHLIGHTS

This Small Community Air Service Development 

Program (SCASDP) grant application for Klamath 

Falls Airport (LMT) meets the criteria of Docket DOTOST-2013-0120. The City of Klamath Falls is 

requesting $135,000 in federal assistance to 

implement a $175,000 marketing campaign to support 

SkyWest Airlines’ existing Klamath Falls service. 

AIR SERVICE ISSUES

Because of its isolated location in southern Oregon, 

air service is extremely important to the Klamath 

Basin. SkyWest Airlines is the sole service provider 

with one daily roundtrip to Portland and San 

Francisco, operated with the 30-seat Embraer Brasilia 

turboprop aircraft but is struggling to maintain 

the service. 

Since Horizon Air pulled out of the market in 2008 and 

SkyWest reduced service to one flight per day to 

Portland and San Francisco, the number of available 

seats has declined 50 percent within the last five 

years. Compared to markets of similar size across the 

Northwest, the Klamath Basin is significantly 

underserved and overpriced. 

Because of the service degradation and high airfares, 

an estimated 53 percent of air travelers opt to drive to 

an alternate airport often choosing Medford, Reno or 

Portland for air service. Given southern Oregon’s 

geography and climate during the winter months, 

driving to alternate airports can take an excessively 

long time in bad conditions and be a major safety 

hazard. The lack of convenient access to and from 

the Klamath Basin hinders commerce and impedes 

economic vitality in the community. 

Recently, SkyWest representatives indicated that 

poor load factor performance and increasing costs 

have led to the LMT market being unprofitable and 

potentially unsustainable without an improvement 

in ridership. 

STRATEGIC PLAN

Immediate action is needed to increase load factors 

and bring SkyWest back to profitability in the LMT 

market. Without immediate action the Klamath 

Basin is in danger of losing access to the national 

air transportation system. 

The Strategic Plan to increase SkyWest’s load factors 

is to implement a comprehensive marketing campaign 

to generate awareness and association that LMT is 

the home of Crater Lake National Park, and thereby 

capture more inbound air traffic. A unique brand 

identify, “Crater Lake-Klamath Connection”, will be 

established through this marketing campaign. The 

plan is contingent on getting the marketing funds 

through this SCASDP to complete it. 

SkyWest Airlines supports the Strategic Plan 

outlined herein and has provided a letter of 

support for the City of Klamath Falls’ application 

(Appendix A).

COMMUNITY COST CONTRIBUTION

To support this air service initiative, non-airport 

revenue sources will fund 23 percent ($20,000 cash 

This section addresses: 

 Project goals 

 Description of the Strategic Plan 

 Highlights of the grant application 
SECTION 1 

APPLICATION HIGHLIGHTS

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 2 

KLAMATH FALLS AIRPORT

and $20,000 in-kind) of the proposed $175,000 

Strategic Plan. This is a strong commitment by the 

Klamath Falls community to support SkyWest. 

 

PUBLIC-PRIVATE PARTNERSHIP

The City of Klamath Falls, Discover Klamath, and the 

Klamath County Chamber of Commerce have formed 

a public-private partnership in support of this 

application. This is a long standing partnership 

founded in 2010. It was created as a top priority of the 

Klamath County Chamber of Commerce to support air 

service at LMT. In addition, eight entities have 

provided financial assistance in support of 

this application. 

MATERIAL BENEFITS

Commercial air service at LMT benefits a broad 

section of the traveling public including businesses, 

educational institutions, military, healthcare providers 

and leisure travelers. LMT serves a local population in 

excess of 82,000, not including the growing number of 

inbound leisure travelers. The Klamath Basin includes 

a vibrant business community such as JELD-WEN, 

Inc., the military through the 173rd Fighter Wing of the 

Oregon Air National Guard, 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 Sanford 

Pediatric Clinic, a regional healthcare provider. 

The Klamath Basin and the surrounding area have 

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 benefit from 

access to local air service and help drive the local 

tourism industry. Clearly, LMT air service is highly 

valued by the community and will meet the goals of 

the SCASDP to benefit air travelers by helping to 

sustain air service at LMT and access to the national 

air transportation system. 

ABILITY TO IMPLEMENT PROJECT

The air service partnership listed above, and other 

local businesses in the Klamath Basin, 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 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 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. 
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 3 

KLAMATH FALLS AIRPORT

SECTION 2 

AIR SERVICE ENVIRONMENT

To identify community air service needs, it is 

important to understand the characteristics of the 

community. The Klamath Basin is a remote region 

with declining air service access and few air service 

options remaining. Air service is critical to this isolated 

community. This section shows the broad segment of 

the traveling public, including businesses, educational 

institutions, military and other enterprises that benefit 

from local air service. 

REMOTE AIRPORT CATCHMENT AREA

The Klamath Basin is located in south-central Oregon 

approximately 15 miles north of the Oregon/California 

border. It is situated on the eastern slopes of the 

Cascade Mountains and the southern shore of Upper 

Klamath Lake. 

Commercial air service at LMT has far reaching 

benefits to a population that is secluded from major 

population centers. LMT serves a large geographic 

area with a growing population. The LMT catchment 

area (identified in blue in Exhibit 2.1) encompasses 

Klamath and Lake Counties in Oregon and portions of 

Modoc and Siskiyou counties in California. LMT 

serves the City of Klamath Falls, Oregon, as well as 

multiple cities in northern California and rural areas in 

both states. More than 82,000 people reside in the 

LMT catchment area. Within a 50-mile radius the 

population increases to almost 90,000. 

This section addresses: 

Description of the Klamath Falls community in 

relation to air service to demonstrate the benefit 

of the Strategic Plan to a broad segment of the 

traveling public. 

EXHIBIT 2.1 LMT CATCHMENT AREA 

Note: LMT catchment area identified in blue by zip code. 
SECTION 2 

AIR SERVICE ENVIRONMENT

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 4 

KLAMATH FALLS AIRPORT

PROXIMITY TO ALTERNATE AIRPORT

The Klamath Basin is an isolated community, having 

access to the Oregon state highway system but no 

interstate that passes through it. As a result, local 

access to the national air transportation system has 

more importance as a mode of transportation. 

Based on a study of passenger retention, 53 percent 

of LMT catchment area air travelers drive to an 

alternate airport to access air service. Twenty-six 

percent use Medford’s Rogue Valley International 

Airport (a non-hub airport), 78 miles west, and nine 

percent drive 290 miles north to use Portland 

International Airport (a medium hub airport nearly five 

hours away). The nearest large hub airport is 366 

miles to the south. Table 2.1 provides drive miles, 

times, and airport hub size for alternate airports. 

LMT catchment area travelers using alternate airports 

encounter road congestion, longer pre-boarding time 

requirements, and unsafe driving conditions in the 

winter that increase travel time and potentially lead to 

delays and missed flights. The drive between Klamath 

Falls and Medford on Oregon Highway 140 is a major 

concern and safety issue in the winter with hazardous 

driving conditions in certain times of the year. 

BUSINESS COMMUNITY

Local air service at LMT is valued by all sectors of the 

Klamath Basin, including government, business, 

education, healthcare, military 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. Table 2.2 provides the top employers in 

the Klamath Basin. 

Historically, the region’s chief industries included 

manufacturing (generally associated with the timber 

trade), wood products, and agriculture. Manufacturers 

and natural resource-related businesses in the area 

reliant on local air service include: JELD-WEN, Inc. 

(corporate headquarters, research and development, 

TABLE 2.2 TOP EMPLOYERS 

COMPANY/ 

ORGANIZATION PRODUCTS 

# OF 

EMPLOYEES

Private Employers: 

JELD-WEN, Inc. Window, Doors 1,200 

Sky Lakes Medical Center Medical 

Services 1,040 

N.E.W. Customer Service 

Companies, Inc. 

Warranty 

Service 650 

Columbia Plywood Hardwood, 

Plywood 430 

Wal-Mart Super Center Retail Goods 400 

Collins 

Products 

Particle Board, 

Hardwood 335 

Sterling Savings Bank Banking 250 

Public Employers: 

State Government Government 1,550 

Local Government Government 1,430 

Federal Government Government 870 

Klamath County 

School District 

Educational 

Services 676 

Klamath Falls 

School District 

Educational 

Services 421 

Source: Herald & News (2010) 

TABLE 2.1 DRIVE TIME TO ALTERNATE AIRPORTS 

AIRPORT MILES 

ESTIMATED 

DRIVE 

TIME 

HUB 

SIZE 

Medford (MFR) 78 1.4 hours Non-hub 

Redding (RDD) 148 2.3 hours Non-hub 

Redmond 

(RDM) 153 2.7 hours Non-hub 

Eugene (EUG) 184 3.2 hours Small 

Reno (RNO) 255 4.0 hours Medium 

Portland (PDX) 291 4.7 hours Medium 

San Francisco 

(SFO) 366 5.4 hours Large 

Source: Microsoft MapPoint 2010 
SECTION 2 

AIR SERVICE ENVIRONMENT

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 5 

KLAMATH FALLS AIRPORT

millwork and window and door manufacturing) and 

Klamath Falls Biomass (renewable energy). 

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 Basin with the 

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 Sanford Pediatric Clinic. For all of these 

business sectors, maintaining local commercial air 

service is critical. 

EDUCATIONAL AND GOVERNMENT 

INSTITUTIONS

In Klamath Falls, educational, non-profit and 

government entities benefit from local air service such 

as the Oregon Institute of Technology (Oregon Tech) 

and the Oregon Air National Guard. Oregon Tech, the 

Pacific Northwest’s only public institute of technology, 

has an enrollment of almost 4,000 annually. The 

university is home to the nation's first undergraduate 

program in renewable energy engineering, and today 

the school is working to become the first geothermally powered university in the country. Klamath 

Community College is also located in the area with 

over 2,000 full-time equivalent students enrolled. 

The 173rd Fighter Wing of the Oregon Air National 

Guard occupies 61 acres of leased land on LMT with 

485 full-time personnel. A unit training drill is 

conducted once a month and results in a surge of up 

to 1,235 personnel, exclusive of personnel on 

temporary duty for formal training or any of a number 

of periodic air exercises. 

TOURISM

LMT 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. Crater Lake is 1,932 feet deep; the deepest lake 

in the US and the seventh deepest lake in the world. 

Though resource gathering and manufacturing 

industries remain a vital part of the regional economy, 

over the last two decades, tourism has grown 

significantly and is the leading industry of the region. 

On a year-to-date basis (January through May 2013) 

the Klamath Basin’s lodging occupancy rates are up 

17.3 percent (versus an overall increase at the state 

level of plus 5.1 percent) making the Klamath Basin 

one of the hottest destinations in the state. However, 

stronger growth could have been achieved if the 

appropriate links with local commercial air service 

were in place. The Crater Lake-Klamath Connection 

campaign will achieve these results. 

The Klamath Basin has a diversified economic base 

that includes a dynamic service industry. 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. Because of the area’s 

isolation and pristine beauty, the tourism industry is 

greatly dependent on maintaining air service access. 

 
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 6 

KLAMATH FALLS AIRPORT

SECTION 3 

AIR SERVICE –

EXISTING/HISTORICAL

This section provides an overview of existing air 

service. Carriers providing service, service frequency, 

nonstop destinations offered, and equipment types 

are included in the discussion. A summary of 

historical air service is also included. A description of 

air service development efforts concludes the section. 

EXISTING AIR SERVICE

Currently, SkyWest Airlines (United Express) offers 

service to Portland International Airport and to San 

Francisco International Airport from LMT. The 

Portland and San Francisco services are operated 

with the 30-seat Embraer Brasilia 120 turboprop 

aircraft once daily. LMT had 14 weekly departures 

and 420 available seats in July 2013 (Table 3.1), 

down significantly since 2009. 

TABLE 3.1 EXISTING AIR SERVICE 

NONSTOP 

DESTINATION CARRIER AIRCRAFT 

WEEKLY 

FLIGHTS

WEEKLY 

SEATS 

Portland, OR 

(PDX) 

United 

Express 

(SkyWest) 

EMB-120 7 210 

San Francisco, 

CA (SFO) 

United 

Express 

(SkyWest) 

EMB-120 7 210 

Total 14 420 

Source: Diio Mi, July 2013 

While SkyWest has a codeshare with United Airlines 

at Portland and San Francisco to allow for connecting 

opportunities, SkyWest operates the LMT services on 

a pro-rate basis (i.e. at risk). This means that 

SkyWest ultimately decides the fate of the LMT 

service and must be profitable on the LMT segments 

to remain in the market. SkyWest has indicated that 

the LMT service is not currently profitable. There are 

currently no service changes scheduled through June 

2014; however, if SkyWest does not return to 

profitability, LMT is at risk of losing access to the 

national air transportation system. 

HISTORICAL AIR SERVICE

From 1997 to 2008, Horizon was the exclusive 

provider of commercial air service at LMT with 

nonstop service to Portland, OR. In October 2008, 

due to a decision by Horizon to eliminate its fleet of 

37-seat de Havilland Dash 8 Q200 turboprop aircraft 

and operate only the larger 76-seat Bombardier Q400, Horizon ceased serving LMT noting that airport 

use did not generate enough passengers in the 

market to fill the larger aircraft. 

In July 2008, SkyWest began nonstop service to San 

Francisco, CA. By that October, SkyWest also began 

providing service between LMT and Portland with two 

nonstop flights per day after Horizon left the market. 

Table 3.2, next page, shows historical hub 

destinations and service providers over the past 10 

years with the transition from Horizon to SkyWest 

service. Scheduled annual departures and seats are 

provided. With the partial overlap of the Horizon and 

SkyWest service in 2008, 2008 service levels almost 

reached the 10-year high provided in 2003. However, 

since then, the Portland service was reduced to just 

one flight per day (October 2010) and in April 2012, 

SkyWest also reduced the San Francisco service to 

just one flight per day. This has resulted in a 10-year 

low in departures and seats in 2013, with seats 

This section addresses: 

 Description of existing air service 

 Synopsis of historical air service 

 Description of air service development efforts 
SECTION 3 

AIR SERVICE – EXISTING/HISTORICAL

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 7 

KLAMATH FALLS AIRPORT

declining 55 percent and departures declining 44 

percent since 2003. In just the last five years, seats 

and departures have decreased 50 percent. 

Exhibit 3.1 provides a summary of annual seats and 

onboard passengers from 2003 through 2012. 

EXHIBIT 3.1 HISTORICAL SEATS AND PASSENGERS 

Source: Diio Mi 

Over the 10-year period, outbound passengers (i.e. 

enplanements) at LMT have decreased by 44 

percent, a slightly lesser amount than seats at a 55 

percent decrease. From 2003 to 2007, outbound 

passengers remained near 30,000 with little change 

year to year. However, since 2008, passengers have 

declined to less than 16,000 during a time when 

tourism and business relocation were expanding. 

Of particular note is the percentage of originating 

passengers. In calendar year 2012, 68 percent of 

passengers originated their trips at LMT. This is a 

high origination percentage for a market of this size 

indicating that inbound travelers are using alternative 

airports to reach the Klamath Basin. This shows an 

opportunity to try to capture those inbound 

passengers at LMT if a comprehensive marketing 

awareness campaign is initiated, such as the one 

proposed in the Strategic Plan with branding as 

“Crater Lake-Klamath Connection”. 

PAST AIR SERVICE DEVELOPMENT EFFORTS 

For the past three years, management at LMT has 

been actively engaged in air service development. To 

understand the impact of air service on the market, 

LMT studied its catchment area to quantify the level of 

demand and retention/diversion. In addition, LMT 

corresponds regularly with SkyWest to discuss 

existing service and performance. These discussions 

are the reason behind submission of this SCASDP 

grant application as SkyWest has indicated concern 

over the performance of the service. The community 

needs financial assistance in order to conduct a 

comprehensive marketing campaign to retain 

SkyWest’s service in the LMT market. 

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

2003200420052006200720082009201020112012

Calendar year

Passengers Seats

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Dept 1,300 1,128 1,034 1,150 828

Seats 48,166 41,802 38,258 42,550 30,636

Dept 162 728 636 365 366 365

Seats 4,860 21,840 19,080 10,950 10,980 10,950

Dept 349 728 729 728 457 365

Seats 10,470 21,840 21,870 21,840 13,710 10,950

1,300 1,128 1,034 1,150 1,339 1,456 1,365 1,093 823 730

48,166 41,802 38,258 42,550 45,966 43,680 40,950 32,790 24,690 21,900

TABLE 3.2 HISTORICAL HUB DESTINATIONS AND SERVICE PROVIDERS

SCHEDULED ANNUAL DEPARTURES/SEATS

HUB AIRLINE ITEM

Annual seats

Source: Diio Mi

Horizon Air

United Express 

(SkyWest)

Annual departures

San Francisco, 

CA (SFO)

United Express 

(SkyWest)

Portland, OR 

(PDX)
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 8 

KLAMATH FALLS AIRPORT

SECTION 4 

AIR SERVICE NEEDS AND 

DEFICIENCIES

The Air Service Needs and Deficiencies section 

identifies the impetus behind this SCASDP grant 

application. This section demonstrates the critical 

need for the Klamath Basin to take action to preserve 

the highly valued air service at LMT. 

DECLINING AIR SERVICE

Since 2008 LMT has had SkyWest Airlines nonstop 

service to Portland International Airport and San 

Francisco International Airport. Prior to SkyWest’s 

entrance in the market, Horizon Air was the only air 

service provider with service to Portland. When 

Horizon changed their fleet from the 37-seat 

Bombardier Q200 turboprop aircraft to the 76-seat 

Bombardier Q400 aircraft small communities across 

the Northwest were impacted. While the larger aircraft 

provided more capacity per trip, market sizes 

necessitated the reduction in frequency and, in LMT’s 

case, cessation of service. Where LMT once had as 

many as five daily roundtrips and 1,160 seats, LMT 

now has only two roundtrips per day and 420 weekly 

seats (Table 4.1). 

The reduced departures and seats have deteriorated 

the quality of air service provided at LMT. When 

SkyWest reduced frequency to one roundtrip per day 

to Portland and San Francisco the community 

absorbed the loss of frequency although it impacted 

local businesses significantly. In a market with such 

limited air service, any reductions seriously 

impede the community’s access to the national air 

transportation system. LMT’s concern going forward 

is ensuring SkyWest’s profitability so that LMT service 

is not completely eliminated. This Strategic Plan is 

crafted to address that concern. 

MARKET PROFITABILITY A CONCERN

The reduction from two daily roundtrips to one was a 

result of SkyWest’s assessment of the LMT market 

performance. Prior to the reduction in San Francisco 

flights in April 2012, load factors averaged just 56 

percent. To raise loads, the flights were reduced. As 

shown in Table 4.2, next page, the 

reduction to one daily roundtrip flight was 

effective in raising load factors. However, 

based on discussions with SkyWest, 

loads are still not adequate to meet their 

profitability targets. Conversely, while the 

San Francisco loads improved year-overyear until March 2013, the LMT-Portland 

load factors have decreased year-overyear in almost every month with a 12-

month average decrease of seven 

percentage points. The Portland service 

is significantly under-performing. 

MON TUE WED THU FRI SAT SUN

2003 4 4 4 4 4 4 4 28 1,036 37

2004 4 4 4 4 4 3 4 27 999 37

2005 4 4 4 4 4 3 3 26 962 37

2006 3 3 3 3 3 2 3 20 740 37

2007 3 3 3 3 3 2 3 20 740 37

2008 5 5 5 5 5 4 5 34 1,160 34

2009 4 4 4 4 4 4 4 28 840 30

2010 4 4 4 4 4 4 4 28 840 30

2011 3 3 3 3 3 3 3 21 630 30

2012 2 2 2 2 2 2 2 14 420 30

TABLE 4.1 NONSTOP DAILY FLIGHTS

Source: Diio Mi

CALENDAR AVG FLIGHTS PER DAY - JULY

YEAR

FLIGHTS/ 

WEEK

SEATS/ 

WEEK

SEATS/ 

DEPT

This section addresses: 

Description of the Klamath Basin’s air service 

needs and deficiencies. 
SECTION 4 

AIR SERVICE NEEDS AND DEFICIENCIES

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 9 

KLAMATH FALLS AIRPORT

TABLE 4.2 AVERAGE LOAD FACTOR BY MONTH 

MONTH 

PDX SFO 

LOAD 

FACTOR 

% 

YOY 

CHANGE 

% PT 

LOAD 

FACTOR 

% 

YOY 

CHANGE 

% PT 

Apr-12 59 (9) 74 29 

May-12 67 (0) 67 18 

Jun-12 66 (10) 74 18 

Jul-12 59 (14) 71 10 

Aug-12 64 (7) 75 12 

Sep-12 62 (0) 72 20 

Oct-12 64 (3) 68 19 

Nov-12 69 (4) 77 14 

Dec-12 74 0 72 11 

Jan-13 64 3 67 16 

Feb-13 60 (16) 62 3 

Mar-13 52 (19) 63 (3) 

Average 63 (7) 70 14 

Source: Diio Mi, CY 2012; Note: YOY = year-over-year 

SkyWest has indicated that at these load factors the 

market is no longer profitable, the result of worsening 

traffic and cost pressures over the past couple of 

years. Based on these results for both Portland and 

San Francisco, SkyWest is considering pulling 

the service. The public-private partnership ardently 

believes that positive tourism trends and assorted 

outbound travel opportunities, when combined with a 

strong local marketing effort as outlined in the 

Strategic Plan, will provide the growth in passengers 

that SkyWest needs to be profitable. 

UNDERSERVED MARKET WITH 

HIGH DIVERSION

The magnitude of LMT’s passenger diversion was 

identified in a 2007 passenger analysis as part of the 

Northwest Regional Air Service Initiative. The study 

indicated that approximately 53 percent of the 

travelers in the LMT catchment area drive to other 

airports in search of better service and lower fares, 

particularly Medford’s Rogue Valley International 

Airport approximately 80 miles to the west, RenoTahoe International Airport 255 miles to the 

southeast, and Portland International Airport, 

approximately 290 miles to the north. Exhibit 4.1

provides airport use by LMT catchment area travelers.

The study suggests that there is potential to 

increase the number of passengers flying in/out 

of LMT by advertising the benefits of flying local 

and the “Crater Lake-Klamath Connection”.

EXHIBIT 4.1 LMT CATCHMENT AREA AIRPORT USE 

In terms of the extent this community is underserved, 

Table 4.3, next page, provides a comparison of 

communities with similar Metropolitan/Micropolitan 

Statistical Area populations in the Northwest region. 

LMT’s air service options in terms of weekly 

departures and weekly available seats are very low 

compared to other communities. LMT has, by far, 

either the lowest number of weekly departures or 

weekly available seats for the size of their population. 

The Strategic Plan proposed herein will create more 

awareness of SkyWest’s service in the Klamath Basin 

thereby increasing ridership and local airport retention 

and returning SkyWest to profitability on the LMTPortland and LMT-San Francisco routes. 

LMT

47%

MFR

26%

RNO

10%

PDX

9%

SMF

5%

SFO

3%
SECTION 4 

AIR SERVICE NEEDS AND DEFICIENCIES

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 10 

KLAMATH FALLS AIRPORT

HIGH AIRFARES

The Klamath Basin suffers from high airfares and 

overall cost of air travel. LMT is losing over 63,000 

annual passengers to other airports. Consequently, 

the marketplace’s reaction has been to endure the 

inconvenience, major driver safety issues in the 

winter, and expense of driving to another airport. 

As shown in Exhibit 4.1, previous page, 53 percent of 

LMT catchment area travelers drive between 78 to 

366 miles to access alternate airports. At the IRS 

mileage rate of 56.5 cents per mile, the drive adds an 

out-of-pocket expense of $45 to over $200 one-way 

depending on the airport used, not including the cost 

of the traveler’s time to make the drive. 

Inconvenience and expense are not the only 

consequences. Southern Oregon’s geography and 

climate make travelling over mountain passes to 

Medford or Portland in the winter a considerable 

safety issue. Snow and ice on the highway between 

Klamath Falls and Medford can be severe. The extra 

time needed for these trips 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. 

LMT has a significant fare discrepancy with other 

surrounding airports, the state of Oregon, the 

Northwest region and the national average as shown 

in Table 4.4. In 2012, LMT’s one-way average 

domestic fare was $23 higher than the state of 

Oregon, $22 higher than the Northwest region and 

$18 higher than the US average. To further 

exacerbate the problem, LMT’s average fare has 

increased 16 percent within the last year while 

Medford’s fare increased only one percent. Since 

2011, the Oregon average decreased slightly while 

the regional average increased three percent and the 

US national average increased only four percent. This 

puts LMT travelers at a significant disadvantage. 

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

LMT $146 $158 $165 $182 $175 $173 $151 $168 $167 $194

Eugene, OR $142 $144 $156 $171 $167 $174 $160 $164 $174 $173 $21

Medford, OR $144 $153 $156 $172 $165 $172 $152 $157 $175 $176 $18

North Bend, OR $135 $144 $148 $164 $155 $165 $150 $180 $183 $186 $8

Pendleton, OR $106 $113 $107 $125 $118 $132 $101 $101 $100 $99 $95

Portland, OR $125 $128 $134 $146 $146 $154 $147 $161 $172 $171 $23

Redmond, OR $138 $149 $155 $161 $149 $148 $138 $147 $161 $173 $21

Oregon $127 $131 $137 $149 $148 $156 $147 $161 $172 $171 $23

Northwest Region $133 $133 $140 $151 $151 $155 $141 $155 $166 $172 $22

US $134 $131 $135 $147 $147 $157 $143 $157 $170 $176 $18

TABLE 4.4 AVERAGE ONE-WAY FARE PAID

AVERAGE DOMESTIC FARE LMT $ 

DIFF

Source: Diio Mi; Domestic only

MSA/MICRO/AIRPORT POPULATION CARRIERS

DESTINATIONSWEEKLY 

FLIGHTS

WEEKLY 

SEATS

Bozeman, MT 99,617 5 12 178 14,712

Cheyenne, WY 93,016 1 2 43 817

Great Falls, MT 81,697 5 7 85 6,146

Casper, WY 77,887 3 3 49 2,542

Port Angeles, WA 73,272 1 1 21 189

Klamath Falls, OR 67,615 1 2 14 420

Lewiston, ID 62,169 2 4 33 2,144

Walla Walla, WA 59,399 1 1 13 988

Durango, CO 57,761 4 3 83 5,543

Pullman, WA 45,418 1 1 13 988

Source: Diio Mi; July 2013; Woods & Poole Economics, Inc.

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

TABLE 4.3 AIR SERVICE COMPARISON
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 11 

KLAMATH FALLS AIRPORT

SECTION 5 

STRATEGIC PLAN 

The Strategic Plan proposed by the City of Klamath 

Falls will achieve the community’s goals and help to 

alleviate the air service needs and deficiencies of this 

community. This section provides a detailed 

description of the goals of the project and a plan for 

attaining those goals. This section also identifies the 

legal sponsor responsible for administering the 

program and the public-private partnership that has 

been formed to actively participate in implementing 

the proposed project. A detailed description of the 

funding necessary for implementation of the Strategic 

Plan, including federal and non-federal contributions, 

is included. 

PROJECT GOALS

The project goal is to increase enplanements at LMT 

to return SkyWest Airlines’ Portland and San 

Francisco services to profitability and ensure this 

remote Oregon community continued access to the 

national air transportation system. 

PUBLIC-PRIVATE PARTNERSHIP

The City of Klamath Falls is the owner and operator of 

LMT and the sponsor of this application. The City of 

Klamath Falls, Discover Klamath, and Klamath 

County Chamber of Commerce have formed a publicprivate partnership (refer to community support letters 

in Appendix A). This long-standing partnership was 

formed in 2010, created and sponsored by Klamath 

County Chamber of Commerce. Collectively, this 

partnership is committed to completing the Strategic 

Plan outlined herein. 

All partners in the public-private partnership will be 

fully involved in the execution of the Strategic Plan 

(Table 5.1). The City of Klamath Falls will execute all 

federal grant offers and process all associated 

reimbursement requests. Discover Klamath, the 

official tourism agency for Klamath County, and a 501 

(c)(3) non-profit entity, will be responsible for 

coordinating and administering the advertising and 

promotion program for this air service initiative in the 

Klamath Basin. The Klamath County Chamber of 

Commerce will assist Discover Klamath with local 

marketing efforts, particularly to the local business 

community. In addition, eight entities are providing 

financial assistance in support of this 

grant application. 

PROPOSED PLAN

The City of Klamath Falls and other Klamath Falls 

representatives meet and/or speak regularly with 

SkyWest to discuss LMT’s market performance. 

SkyWest recently indicated that efforts must be made 

to return the market to profitability. The public-private 

partnership believes that a comprehensive marketing 

campaign will increase ridership to the level that will 

meet SkyWest’s load factor and profitability targets. 

The purpose of the "Crater Lake Klamath Connection" 

marketing campaign is to ensure continued 

passenger growth on inbound and outbound 

LMT flights. 

TABLE 5.1 PUBLIC-PRIVATE PARTNER ROLES 

PUBLIC-PRIVATE 

PARTNER ROLE 

City of Klamath Falls/ 

Klamath Falls Airport Grant administration 

Discover Klamath Develop and administer 

the marketing campaign 

Klamath County 

Chamber of Commerce 

Generate support from 

Klamath Falls’ business 

community; Assist with 

the marketing campaign 

This section addresses: 

 A Strategic Plan for meeting the Klamath 

Basin’s air service needs and deficiencies 

 Previous grant recipient with new project 

and goals 

 Description of the public-private 

partnership 

 Designation of a legal sponsor 

 Funding necessary for implementation 

 Sustainability of the project 
SECTION 5 

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 12 

KLAMATH FALLS AIRPORT

SkyWest Airlines and Crater Lake National Park 

fully support the proposed plan. Both have 

provided letters of support which are included in 

Appendix A.

Marketing Objectives 

For SkyWest Airlines to meet its profitability targets, 

the goal is to increase enplanements by an average 

of two passengers daily each way (14 per week) on 

each of the services, Portland and San Francisco. On 

the 30-seat aircraft, this will increase the load factor 

from current levels to an average of 70 percent on the 

Portland flights and 77 percent on the San Francisco 

flights annually. Annual enplanements will increase 

by 1,460. 

To accomplish this passenger increase, the marketing 

campaign has three objectives: 

1. Increase the number of passengers flying in 

to LMT who originate elsewhere. 

2. Increase the number of passengers 

originating out of LMT. 

3. Conduct a marketing research study to 

obtain quantitative data on air service 

into/out of LMT. 

Marketing Message 

The marketing campaign will have two primary 

marketing messages. 

BRANDING 

The marketing program will generate awareness and 

association that LMT is the home of Crater Lake 

National Park, and thereby capture more inbound air 

traffic. The first step will be to establish the brand 

identify, “Crater Lake-Klamath Connection” through 

this marketing campaign. Step one is contingent on 

getting the marketing funds through this SCASDP to 

complete it. The second step will be based on the 

success of establishing the brand identity. If the brand 

identity is successful, the public-private partnership 

may seek a change in the airport name, “Crater LakeKlamath Regional Airport”. The current airport name, 

Klamath Falls Airport, does not identify the region with 

its most valuable asset, Crater Lake National Park. 

AIRPORT AMENITIES 

The other general marketing message will stress the 

convenience and amenities available by flying local. 

LMT offers: free parking, high convenience, an onsite 

restaurant, and onsite national rental car agencies. 

LMT is close to town, significantly reducing travel 

time. LMT offers short wait times at airline ticket 

counters for check-in, TSA and boarding. 

This element of the marketing message will be to 

emphasize the benefits and convenience of using 

SkyWest Airlines at LMT. 

Target Audience 

The marketing campaign will target both business and 

leisure and inbound and outbound air travelers to the 

Klamath Basin. The focus will be divided as follows: 

 Leisure (70 percent of focus): Out of County 

(75 percent of leisure focus), In County (25 

percent of leisure focus) 

 Business (30 percent of focus); Out of 

County (20 percent of business focus); In 

County (80 percent of business focus) 

Marketing Plan 

The marketing plan has been organized according to 

leisure and business travelers and inbound 

(originating outside of Klamath Falls) and outbound 

(originating in Klamath Falls) travelers. Marketing 

strategies are identified for each group. 

LEISURE TRAVELERS 

Strategy 1 Out of County – LMT service will be 

promoted to Portland-area leisure travelers and San 

Francisco Bay area leisure travelers, attracting them 

to the Klamath Basin. To do so, the following will 

be completed. 
SECTION 5 

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 13 

KLAMATH FALLS AIRPORT

 Create alliances/partnerships with 

Destination Marketing Organizations 

(DMO’s) in Portland and San Francisco, to 

increase and leverage marketing dollars 

 Develop bundled promotional packages for 

lodging, food, transportation, and events and 

connect ‘Like’ things (e.g. theaters) 

 Ensure message connects LMT as being the 

‘Home of Crater Lake National Park’ 

Strategy 2 In County – Portland and San Francisco 

will be promoted as desirable destinations via Co-op 

Programming through bundling promotional packages 

for lodging, food, transportation, and events and 

connecting ‘Like’ things (e.g. theaters). 

BUSINESS TRAVELERS 

Strategy 1 Out of County – Twenty percent of the 

business traveler program will be allocated to Out of 

County business travelers with a focus on the 

convenience of LMT. 

Strategy 2 In County – The In County business 

traveler campaign will reinforce that local air travel is 

good for business. Public relations will be used to get 

the message out and local meetings will be used as a 

platform (e.g. Team Klamath). High profile traveler(s) 

will be identified as spokesperson(s) (e.g. Chivas 

Regal Campaign) to show strong support for using the 

local airport. 

Marketing Research Plan Overview 

A secondary objective of this project is to capture new 

and actionable consumer intelligence about air travel 

into and out of LMT. We will do this via an “AA&U 

Study”. An Awareness, Attitudes, and Usage Study 

will use five percent of the project budget to gain a 

statistically relevant study of passenger’s perceptions 

and experiences with air service into and out of LMT. 

This information will be insightful, and actionable, in 

terms of future messaging and in terms of prioritizing 

operational and/or service challenges which are 

currently creating barriers to incremental travel, 

resulting in a loss of market share to surrounding 

airports such as Medford and others. 

Tactics/Implementation 

INTEGRATED MARKETING COMMUNICATIONS 

This plan will use an integrated marketing approach, 

meaning multiple mediums will be used to 

communicate key message(s). Discover Klamath and 

its partners will use both old and new media 

approaches to reach key target audiences with its 

messaging. The following will be considered: 

 Mobile technology is gaining momentum with 

nearly 40 percent of Americans owning and 

using a mobile device. Mobile marketing will 

be a key aspect of the marketing efforts. 

 Social Media platforms, such as Pinterest, 

Facebook, YouTube, and others are viewed 

daily by millions who look to the opinions of 

others for guidance on trends and 

purchasing decisions. 

 Travel and referral websites such as Trip 

Advisor and YELP! have huge user bases 

who seek information on travel (Trip Advisor 

has over 60 million monthly website visitors). 

 Traditional media (e.g. Television, Radio, 

Newspapers, and Magazines) has not gone 

away, despite dire predictions a few years 

ago. Their audiences have become fractured 

and segmented, meaning advertisers must 
SECTION 5 

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 14 

KLAMATH FALLS AIRPORT

define target audiences well, then purchase 

the appropriate media. 

• Public relations remains a viable approach 

for generating “earned media” – that is, “free” 

stories. Klamath’s story, and its impending 

name change, provides plenty of public 

relations opportunities. 

PARTNERSHIPS 

While these have not been finalized, our group is in 

discussions with tourism organizations in the San 

Francisco Bay area and Portland (e.g. Visit San 

Francisco® and Travel Portland®) to explore cross 

promotional opportunities that will drive air traffic 

between our respective markets. 

We envision creating and promoting offers that 

include airfare and lodging, and likely events, 

activities and attractions. The Klamath Basin has 

much to offer as demonstrated in the Tourism section 

on page 5. 

AIRPORT NAME CHANGE 

As evidenced by the support letters in Appendix A

from the Southern Oregon Visitors Association, the 

United States Department of the Interior (Crater Lake 

National Park, and the company that runs Crater Lake 

National Park, Xanterra Parks and Resorts, it should 

be obvious the concept of a name change is a 

potentially big idea. The Klamath Basin is the home of 

Crater Lake National Park and to this end Discover 

Klamath and others are trying to solidify the link and 

association with Klamath and Crater Lake. Changing 

the airport name to Crater Lake-Klamath Regional 

Airport is a low risk, low cost move that should help 

solidify that link and with it add a few more occupied 

seats to inbound Klamath flights. 

The name change provides the perfect vehicle for 

building a marketing campaign that is compelling and 

relevant to audiences it will reach. 

Marketing Budget 

The total budget for the marketing campaign including 

development and implementation is $175,000 over a 

nine-month period. 

Campaign Timing 

The marketing campaign will be implemented for a 

nine-month period. Table 5.2 provides the proposed 

timing for each of the elements. 

TABLE 5.2 CAMPAIGN TIMING 

ELEMENT MONTH 

Plan development/application 

submission Jul-13 

Determination of funding (grant 

award) Sep-13 

Review/adjust plan Oct-Nov 2013 

Launch Marketing Plan Feb-Mar 2014 

Plan wraps up Sep-14 

Analysis and reporting Oct-14 

Program Metrics 

The effectiveness of the marketing campaign will be 

measured using the following metrics: 

1. Measure/track number of enplanements 

2. Communicate results of marketing 

research study 

3. Measure/track web traffic to various 

websites, including: 

a. www.FlyKFalls.com 

b. www.DiscoverKlamath.com 

c. www.KlamathCommunity.com 

d. Others 

4. Capture anecdotal information providing 

feedback on impact/results of campaign 

STRATEGIC PLAN FUNDING

The public-private partnership is requesting US 

Department of Transportation (DOT) assistance in 

funding 77 percent, or $135,000, of the Strategic 

Plan. The remaining cash funds for the marketing 

campaign will be provided by nonairport revenue sources. 
SECTION 5 

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 15 

KLAMATH FALLS AIRPORT

Table 5.3 provides the Strategic Plan budget by 

element and sources of funding. The community will 

fund 23 percent of the total proposed air 

service program. 

Local businesses are providing $20,000 for the local, 

non-airport cash contribution for the marketing 

program and $20,000 in-kind. Contributors include: 

 Basin Mediactive, LLC 

 Diversified Contractors, Inc. 

 Herald & News 

 JELD-WEN, Inc. 

 Klamath County 

 Klamath County Chamber of Commerce 

 Klamath County Development Corporation 

 South Central Oregon Economic 

Development District 

PROJECT CONTINUATION AND 

SUSTAINABILITY

The comprehensive marketing campaign, branding as 

“Crater Lake-Klamath Connection”, is anticipated to 

generate increased ridership at LMT. During the 

campaign, the public-private partnership plans to 

meet with SkyWest Airlines annually to assess the 

effectiveness of the program. If SkyWest indicates 

that the program has not achieved the desired 

average load factor and profitability targets, the 

public-private partnership will consider funding further 

marketing efforts. Other programs to increase 

ridership and awareness in the community will also be 

considered. The public-private partnership is 

committed to making SkyWest’s service selfsustaining. 

PREVIOUS GRANT RECIPIENT - NEW PROJECT 

AND GOALS

In 2007, the City of Klamath Falls was awarded a 

SCASDP grant. The previous application’s goals were 

specifically targeted at San Francisco service and 

southbound connections by a second air carrier. The 

application was submitted in conjunction with North 

Bend, Oregon’s Southwest Oregon Regional Airport. 

The plan included a revenue guarantee and 

marketing to support the proposed service. With the 

assistance of the grant funds, the community was 

successful in implementing the program and obtaining 

nonstop service to San Francisco. 

This application’s goals focus specifically on 

supporting existing air service through a 

comprehensive marketing campaign and branding the 

Klamath Basin as the “Crater Lake-Klamath 

Connection”. As demonstrated, this application 

qualifies as a new project and meets the requirements 

of the SCASDP. 

TABLE 5.3 STRATEGIC PLAN BUDGET 

DESCRIPTION 

FUNDING SOURCE 

TOTAL 

US DOT AIRPORT NON-AIRPORT 

CASH CASH IN-KIND CASH IN-KIND 

Marketing Campaign $135,000 $0 $0 $20,000 $20,000 $175,000 

Total $135,000 $0 $0 $20,000 $20,000 $175,000 

Percent of total project 77% 0% 0% 11% 11% 100% 

Percent of cash contribution 87% 0% N/A 13% N/A 100% 
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 16 

KLAMATH FALLS AIRPORT

SECTION 6 

SCHEDULE AND 

MONITORING

The public-private partnership has developed a 

realistic timetable to achieve the goals of this 

proposal. This section provides critical milestones to 

be achieved by the public-private partnership. A 

monitoring program is also provided to track the 

progress of the project. 

CRITICAL MILESTONES

Immediate action is needed to increase load factors 

and bring SkyWest Airlines back to profitability in the 

Klamath Falls market. Because of this, the publicprivate partnership has set an aggressive timeline for 

completion of the Strategic Plan. The following 

milestones are proposed. The timeline is highly 

dependent on the date of the US DOT’s grant award. 

September 2013: It is anticipated that the US DOT 

will award SCASDP grants in September 2013. If the 

date of grant award changes, earlier or later, the 

remaining milestone dates will also change. 

October to December 2013: Development of the 

marketing campaign will be completed from October 

through December 2013. The marketing plan will be 

completed no later than December 31, 2013, so as to 

facilitate implementation of the advertising and 

promotion program on January 1, 2014. 

February to September 2014: The marketing 

campaign to increase enplanements at LMT will begin 

in February/March 2014 and continue through 

September 2014. 

MONITORING PROGRAM

The public-private partnership will monitor 

enplanement activity and load factors at LMT monthly 

to track the effectiveness of the market campaign. 

The public-private partnership will also meet at a 

minimum annually, likely more frequently, with 

SkyWest Airlines to discuss service performance and 

the progress of the marketing campaign. It is 

anticipated that the partnership will work closely with 

SkyWest in marketing efforts and promotion of 

the service. 

This section addresses: 

 How the community will monitor the 

progress of the project 

 The plan/schedule for timely completion of 

the project 
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

KLAMATH FALLS AIRPORT

APPENDIX A

LETTERS OF SUPPORT

Appendix A includes letters of support for the City of 

Klamath Falls’ application to the US DOT for a 

comprehensive, marketing campaign to improve 

SkyWest Airlines’ load factors and profitability in the 

Klamath Falls market. Support letters were submitted 

by , participants in the public- SkyWest Airlines

private partnership and other members of the Klamath 

Falls community. The letters of support are included 

on the following pages of this Appendix A and are 

listed below. 

Airline 

SkyWest Airlines 

Government 

Department of the Air Force – 173rd Fighter Wing 

Klamath County Commissioners 

Oregon Department of Aviation 

United States Department of the International, 

National Park Service 

Public-private partnership 

City of Klamath Falls (refer to cover letter) 

Discover Klamath 

Klamath County Chamber of Commerce 

Businesses and Organizations 

Basin Mediactive, LLC 

Diversified Contracts, Inc. 

JELD-WEN, Inc. 

Klamath Community College 

Klamath Community Development Corporation 

Klamath Youth Development Center 

Ross Ragland Theater 

South Central Oregon Economic Development District 

Southern Oregon Visitors Association (Travel Oregon) 

US Bank 

Xanterra Parks & Resorts 

This section addresses: 

Letters of support from SkyWest Airlines, 

members of the public-private partnership, the 

local business community, and 

state government. 

DEPARTMENT OF THE AIR FORCE 

173d FIGHTER WING 

KINGSLEY FIELD OREGON 

19 July 2013 

Colonel Jeremy O. Baenen 

Commander 

211 Arnold Ave, Ste 11 

Klamath Falls OR 97603 

Mr. Brooke Chapman 

Associate Director 

Small Community Air Service Development Program 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Dear Associate Director Chapman 

 The 173d Fighter Wing supports the Klamath Falls Airport’s grant application for Small Community 

Air Service Development Program. Air service from Klamath Falls Airport to other major air service 

hubs provides the 173d Fighter Wing service members and their families a great resource for travel to 

temporary duty locations or leisure travel plans. The 173d Fighter Wing’s mission is to train F-15 pilots 

for the United States Air Force. Students attending training at Kingsley Field are temporarily assigned 

and often travel to their home of record for family visits abroad. 

 Pending Chief of Staff of the United States Air Force approval, the 173d Fighter Wing may see an 

increase in the number of airmen (approximately 80 families this year and an additional 70 families in 

two years). This increase will be a significant benefit to the Klamath Falls economy. It will also increase 

the number of travelers, many of which may be younger Airmen without dependents who will travel 

home to see relatives or who entertain family members traveling here. Additionally, the proposed 

increase will bring more travel requirements inherent to Active Duty personnel rotations and 

deployments. Having air carrier service at Klamath Falls will ease the logistics burden often times 

associated with traveling to temporary duty locations or traveling to one’s next assignment. 

 The 173d Fighter Wing considers air carrier service at Klamath Falls Airport a vital component to our 

mission success. 

 Sincerely, 

 JEREMY O. BAENEN, Colonel, ORANG 

 Commander, 173d Fighter Wing 

BAENEN.JEREMY.

O.1145902890

Digitally signed by 

BAENEN.JEREMY.O.1145902890 

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, 

ou=USAF, cn=BAENEN.JEREMY.O.1145902890 

Date: 2013.07.22 09:43:06 -07'00'


 

United States Department of the Interior 

NATIONAL PARK SERVICE 

Crater Lake National Park

Post Office Box 7

Crater Lake, Oregon 97604 

 IN REPLY REFER TO: 

July 18, 2013 

Ms. Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Subject: Letter of Support – Crater Lake National Park 

 Small Community Air Service Development Program Grant Application 

 Docket DOT-OST-2013-0120

 City of Klamath Falls – Klamath Falls Airport 

Dear Ms. Chapman: 

We have been briefed by Discover Klamath Visitor and Convention Bureau, an active participant 

in this proposed grant, on plans to apply for an air service grant for marketing the Klamath Falls 

airport (LMT). 

We recognize the need for a stronger marketing connection for the longstanding relationship 

between Crater Lake National Park and Klamath County and Klamath Falls, Oregon. Crater Lake 

National Park has developed a long term strategy to increase and better manage visitation. Part of 

that plan is to conduct outreach to the large metropolitan centers of Seattle, Portland, and the San 

Francisco Bay Area in order to maintain and enhance relevance to our ever changing society. 

Further, the park is strongly encouraging inbound international travel through a variety of 

marketing and partnership agreements. This grant would complement our efforts and would allow 

Klamath County to better collaborate with the National Park Service in bringing more air travelers 

to the region. 

We also understand the concept of linking the airport to the national park through renaming the 

airport the Crater Lake-Klamath Regional Airport. We agree that potential visitors and airline 

passengers would be better able to identify LMT as the closest regional airport to Crater Lake. 

Therefore, we endorse awarding this air services grant to the group consisting of Discover 

Klamath Visitor and Convention Bureau, the Klamath Falls airport, and, the Klamath County 

Chamber of Commerce. We believe they will be successful in leveraging these grant dollars to 

increase air traffic to LMT. 

Craig W. Ackerman 

Superintendent
 

July 15, 2013 

Ms. Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310

Washington, DC 20590 

Subject: Discover Klamath’s Letter of Support 

 Small Community Air Service Development Program Grant Application 

 Docket DOT-OST-2013-0120

 City of Klamath Falls – Klamath Falls Airport 

Dear Ms. Chapman: 

Discover Klamath Visitor and Convention Bureau is the official tourism agency for Klamath 

County, Oregon; and, we are an active participant in this Grant development and submission. 

We are in full support and recommendation of the City of Klamath Falls receiving an air service 

development grant for the express purpose of marketing our local airport with the objective of 

increasing enplanements in 2013-2014 and beyond. 

Our community has a very active tourism marketing program that touches recreational travelers 

from Seattle, Portland and other points in the Pacific Northwest; to San Francisco, Los Angeles, 

and other points in California and the west coast. 

Our outbound branding campaign appears to be working. On a year-to-date basis (January 

through May 2013) our lodging occupancy rates are at +17.3%* making Klamath one of the 

hottest destinations in the state, versus an overall increase at the state level of +5.1%. 

Unfortunately, the majority of these lodging (and other) visitors are not flying into LMT (Klamath 

Falls) for a variety of reasons. With funds from this grant we have a very real opportunity to 

capture more air traffic by connecting Klamath Falls airport with being the home of Crater Lake 

National Park – a connection that today is not obvious at all. With nearly 500K visitors annually, 

Crater Lake National Park is a large economic draw/driver to our region but many fly into other 

airports including Portland, Medford, and Bend/Redmond. 

We believe strongly that through our proposed name-change to Crater Lake-Klamath Regional 

Airport, we will clear-up much of the natural confusion about how best to get to Crater Lake 

National Park, and in the process stimulate much needed enplanement figures. 

We thank you for your support and consideration of this grant. 

Jim Chadderdon 

Executive Director 

*Source: Smith Travel Research and State of Oregon Tourism Commission 

DISCOVER KLAMATH 205 Riverside Drive, Suite B Klamath Falls, Oregon 97601 800-445-6728
“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”

Board	of	Directors	

Stan Gilbert 

 Klamath Youth Development Center 

Bridgitte Griffin 

 AG-SENSE

Dan Keppen 

 Dan Keppen & Associates, Inc 

Heidi Wright 

 Herald and News 

Kathie Philp 

 Pacific Crest FCU 

Col. Curtis Waite 

 173d Fighter Wing, Kingsley Field 

Willie Riggs 

 OSU Extension Office 

Ellsworth Lang 

 Kla-Mo-Ya Casino 

Mike Angeli 

 The Ledge 

Rachael Spoon

 KBHBA 

Randy Shaw 

Coldwell Banker/Holman Premier 

Realty 

Jason Chapman 

Chapman Ranch 

Jennifer McKeon 

County Cork Collectables 

George Ormsbee 

 Cal-Ore Communications 

Werner Reschke 

 Wrinkledog, Inc 

Kelley Minty-Morris 

 Citizens for Safe Schools 

Maggie Polson 

 Cascade Comprehensive Care 

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 

Andie Alvarez 

 Member Outreach Coordinator 

205 Riverside Drive, Suite A

Klamath Falls, OR 97601

Phone: (541) 884‐5193

Fax: (541) 884‐5195

www.klamath.org

July 11, 2013

Brooke Chapman

Associate Director

Small Community Air Service Development Program

U.S. Department of Transportation

1200 New Jersey Ave, SE W86‐310

Washington, DC 20590

Subject: Small Community Air Service Development Program

Docket DOT‐OST‐2013‐0120

City of Klamath Falls, OR – Klamath Falls Airport

Dear Ms. Chapman:

Klamath County Chamber of Commerce strongly supports the air service

proposal detailed in the City of Klamath Falls’ Small Community Air Service

Development Program grant application for a comprehensive marketing

program to support SkyWest Airlines’ service at Klamath Falls Airport. With our

remote location in southern Oregon, local businesses depend on access to air

service to continue to prosper.

SkyWest Airlines provides the link to the national air transportation system to

our region. Air service is vitally important to the health and growth of the

Klamath business community. Given the unique transportation challenges which

confront Klamath County, maintaining and supporting SkyWest’s service at

Klamath Falls Airport is our highest priority.

Klamath County Chamber of Commerce is pleased to be one of the private

partners in the public‐private partnership, and pledges $5,000 in in kind staff

support to the marketing effort. The Airport has forged strong ties with the

business community to attract better air service. We appreciate the opportunity

to expand that partnership to include the US Department of Transportation

through the Small Community Air Service Development Program. We are

pleased to have the opportunity to support this grant application.

Sincerely,

Charles “Chip” Massie

Executive Director
July 19, 2013 

Brooke Chapman 

Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Program 

 Docket DOT-OST-2013-0120 

 City of Klamath Falls, OR – Klamath Falls Airport 

Dear Ms. Chapman: 

Radio broadcasting group, Basin Mediactive, LLC strongly supports the air service proposal 

detailed in the City of Klamath Falls’ Small Community Air Service Development Program grant 

application for a comprehensive marketing program to support SkyWest Airlines’ service at 

Klamath Falls Airport. With our remote location in southern Oregon, local businesses depend on 

access to air service to continue to prosper. 

Our organization is pledging $5000.00 to this effort and will work with the Chamber, Airport, and 

Discover Klamath to implement the marketing plan to rebrand and improve use of commercial air 

service in Klamath County. 

SkyWest Airlines provides the link to the national air transportation system to our region. Air 

service is vitally important to the health and growth of the Klamath business community. Given 

the unique transportation challenges which confront Klamath County, maintaining and supporting 

SkyWest’s service at Klamath Falls Airport is our highest priority. 

Basin Mediactive, LLC is pleased to be one of the private partners in the public-private 

partnership. The Airport has forged strong ties with the business community to attract better air 

service. We appreciate the opportunity to expand that partnership to include the US Department 

of Transportation through the Small Community Air Service Development Program. We are 

pleased to have the opportunity to support this grant application. 

Sincerely, 

Rob Siems 

General Manager - Basin Mediactive, LLC 
EM DIVERSIFIED 

CONTRACTORS1 

P 0 Box 223 

Klamath Falls OR 97601 

(541) 884-1770 

Oregon CCB #41320 

July 19, 2013 

Brooke Chapman 

Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Program 

Docket DOT-OST-2013-0120 

City of Klamath Falls, OR — Klamath Falls Airport 

Dear Ms. Chapman: 

Diversified Contractors, Inc strongly supports the air service proposal detailed in the City of Klamath Falls' Small 

Community Air Service Development Program grant application for a comprehensive marketing program to support 

SkyWest Airlines' service at Klamath Falls Airport. With our remote location in southern Oregon, local businesses depend 

on access to air service to continue to prosper. 

Our organization is pledging $500.00 to this effort and will work with the Chamber, Airport, and Discover Klamath to 

implement the marketing plan to rebrand and improve use of commercial air service in Klamath County. 

SkyWest Airlines provides the link to the national air transportation system to our region. Air service is vitally important to 

the health and growth of the Klamath business community. Given the unique transportation challenges which confront 

Klamath County, maintaining and supporting SkyWest's service at Klamath Falls Airport is our highest priority. 

Diversified Contractors, Inc is pleased to be one of the private partners in the public-private partnership. The Airport has 

forged strong ties with the business community to attract better air service. We appreciate the opportunity to expand that 

partnership to include the US Department of Transportation through the Small Community Air Service Development 

Program. We are pleased to have the opportunity to support this grant application. 

Sincerely, 

Mark R Wendt 

President 
July 18, 2013 

Brooke Chapman 

Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310

Washington, DC 20590 

Subject: Small Community Air Service Development Program 

 Docket DOT-OST-2013-0120 

 City of Klamath Falls, OR – Klamath Falls Airport 

Dear Ms. Chapman: 

JELD-WEN, inc. strongly supports the air service proposal detailed in the City of 

Klamath Falls’ Small Community Air Service Development Program grant application 

for a comprehensive marketing program to support SkyWest Airlines’ service at 

Klamath Falls Airport. With JELD-WEN’s remote location in southern Oregon, local 

businesses depend on access to air service to continue to prosper. 

Our organization is pledging $2,500.00 to this effort and will work with the Chamber, 

Airport, and Discover Klamath to implement the marketing plan to rebrand and 

improve use of commercial air service in Klamath County. 

SkyWest Airlines provides the link to the national air transportation system of our 

region. Air service is vitally important to the health and growth of the Klamath 

business community. Given the unique transportation challenges that confront 

Klamath County, maintaining and supporting SkyWest’s service at Klamath Falls 

Airport is our highest priority. 

JELD-WEN, inc. is pleased to be one of the private partners in the public-private 

partnership. The Airport has forged strong ties with the business community to attract 

better air service. We appreciate the opportunity to expand that partnership to include 
the US Department of Transportation through the Small Community Air Service 

Development Program. We are pleased to have the opportunity to support this grant 

application. 

Sincerely, 

Ron Saxton 

Executive Vice President


Klamath Youth Development Center

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

July 17, 2013 

Brooke Chapman 

Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Subject: Small Community Air Service Development Program 

 Docket DOT-OST-2013-0120 

 City of Klamath Falls, OR – Klamath Falls Airport 

Dear Ms. Chapman: 

As the largest social service agency in the region, the Klamath Youth Development Center strongly 

supports the air service proposal detailed in the City of Klamath Falls’ Small Community Air Service 

Development Program grant application for a comprehensive marketing program to support SkyWest 

Airlines’ service at Klamath Falls Airport. With our remote location in southern Oregon, local businesses 

depend on access to air service to continue to prosper. 

SkyWest Airlines provides the link to the national air transportation system to our region. Air service is 

vitally important to the health and growth of the Klamath business community. Given the unique 

transportation challenges which confront Klamath County, maintaining and supporting SkyWest’s service at 

Klamath Falls Airport is our highest priority. 

Klamath Youth Development Center is pleased to support Chamber and Airport efforts to market and 

improve commercial air service in the community. We are also pleased to have the opportunity to support 

this grant application.

Sincerely, 

Stanley Gilbert 

Chief Executive Officer


southernoregon.org / office@southernoregon.org 

PO Box 1645 Medford, OR 97501 

Travel Southern Oregon is a 501c6 non-profit organization dedicated to regional tourism marketing. 

July 22, 2013 

Ms. Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

U.S. Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

Letter of Support from Travel Southern Oregon on behalf of: 

 Small Community Air Service Development Program Grant Application 

 Docket DOT-OST-2013-0120 

 City of Klamath Falls – Klamath Falls Airport 

Dear Ms. Chapman: 

On behalf of the Board of Directors of the Southern Oregon Visitors Association (Travel 

Southern Oregon), I am pleased to submit this letter of support for the air service grant 

application for the Klamath Falls airport (LMT). 

The Discover Klamath Visitor and Convention Bureau has provided an excellent summary of 

the proposed grant, and of the ways in which creating vibrant marketing connections between 

Crater Lake National Park and Klamath County will lead to success. 

The two markets – Portland and San Francisco – that are served by the United/Skywest group 

out of Klamath Falls are critically important consumer tourism markets for the Southern 

Oregon region. Renaming the airport the “Crater Lake-Klamath Regional Airport,” and 

aggressively marketing it in these markets, will create momentum and increase air traffic at 

LMT. 

To the applicants for this grant (the Discover Klamath Visitor and Convention Bureau, the 

Klamath Falls airport, and the Klamath County Chamber of Commerce), Travel Southern 

Oregon offers its support and endorsement. 

Thank you, and best regards, 

Carolyn S. Hill, CEO 

Travel Southern Oregon 

Executive Director, Crater Lake National Park Trust