Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

1

Pangborn Memorial Airport

Wenatchee, Washington

Submission of Application 

Under The 2012

Small Community Air 

Service Development 

Program

Docket OST-2012-0069

DUNS # 832579945

Congressional District: WA - 04
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

2

SUMMARY OF PROPOSAL 3

Background 3

North Central Washington Economy 3

Capturing the Local Traveler Just as Critical as Inbound Visitors 4

A Precise Solution: Targeted Marketing 4

Contact Information 4

I. MARKET & SERVICE AREA 5

Pangborn Memorial Airport Air Service Influence Area 5

Current Air Service 6

II. PASSENGER TRAFFIC HISTORY AT PANGBORN 7

Long Term Trend: Lower Capacity 7

SEA and GEG – The Allure of Higher Levels of Air Service 7

Recapturing Inbound Traffic 9

Load Factors – Room For Traffic Recapture 10

Pangborn Memorial Load Factor Performance 10

Pangborn Memorial: Higher Fares 11

III. THE GRANT IMPLEMENTATION 12

The Marketing Plan 12

Marketing & Communication Strategy 12

Eligibility 13

Continuing Community Support 13

Past Air Service Efforts 13
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

3

Summary of Proposal

The Ports of Chelan and Douglas Counties, Washington, and the Pangborn 

Memorial Airport, herein respectfully submits an application for a grant under the 

2012 Small Community Air Service Development Grant Program.

Background 

The Pangborn Memorial Airport is located in north central Washington, with 

Seattle approximately three hours drive time to the west and Spokane 

approximately three hours drive time to the east. Because of the proximity to 

these larger metropolitan areas with much greater levels of air service, 

significant passenger traffic leakage occurs to both Seattle and Spokane. 

Pangborn Memorial Airport currently has Alaska Airlines nonstop service with 

three daily to Seattle–Tacoma International (SEA), and SeaPort Airlines service to 

Yakima and Portland International (PDX). The SeaPort service is new in 2012, 

and is valuable for the business community and the inbound tourism economy as 

there is a strong community of interest between north central Washington and 

the Portland region.

While it is clear that traffic leakage exists to the larger metropolitan airports in 

Washington state, there are steps that can be taken through a 

marketing/advertising campaign to ensure that Pangborn Memorial Airport 

maintains its current levels of air service into the future and that the north 

central Washington region’s economy stays strong with continued air service.

North Central Washington Economy

The economy of north central Washington is based strongly on agriculture. 

However, tourism is a rapidly growing number two industry, with numerous 

outdoor activities to partake in as well as major arts and cultural festivals. From 

farmers markets and wine tasting to museums, galleries, and studios, the 

Wenatchee region is a venerable cultural and outdoor paradise for those looking 

to escape the hustle and bustle of city life. As a tourism based economy with 

thousands of annual inbound visitors, air service is a critical component in the 

overall health of the regional economy served by Pangborn Memorial Airport. 

Today, a very high percentage of visitors use SEA and GEG to access the region. 

A goal of this grant is to identify key tourism generators and apply marketing and 

advertising efforts to boost use of air service directly to Pangborn Memorial 

Airport.
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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With higher levels of service at these larger airports, and a general unawareness 

of the capabilities of Pangborn Memorial Airport, tourists often fly into these 

alternative airports, rent cars, and drive the approximate three hours to the 

Wenatchee region. This is unnecessary with the excellent levels of air service 

between Pangborn and SEA and PDX, and a marketing/advertising campaign will 

bring awareness to the public about the usefulness of the Pangborn Memorial 

Airport.

Capturing the Local Traveler Just as Critical as Inbound Visitors

While the economy in the region is largely based on tourism, it is equally as 

important for Pangborn Memorial Airport to capture the local traveler, ones who 

may be tempted to utilize SEA or GEG, so that quality levels of air service persist 

into the future. With the new SeaPort Airlines service connecting north central 

Washington to Portland, and the established Alaska Airlines service to SEA, there 

is little reason for local residents not to use Pangborn for their travels, and a 

portion of this grant will aim at recapturing the segment of travelers currently 

utilizing alternative airports for their travels. 

A Precise Solution: Targeted Marketing 

In order to ensure that Pangborn Memorial Airport retains the current levels of 

air service well into the future, the airport is requesting a SCASD grant to 

implement a targeted marketing/advertising campaign to increase both inbound 

visitor traffic and to recapture the outbound portion of the local population that 

is using alternative airports in the region. 

Contact Information

Pangborn Memorial Airport will serve as the legal sponsor and be responsible for 

administering the grant. All correspondence regarding this proposal should be 

referred to:

Mr. Ron Russ

Interim Airport Director

Pangborn Memorial Airport

One Pangborn Drive

East Wenatchee, Washington 98802

Tel: (509) 884-2494

Email: ron.russ@pangbornairport.com
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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I. Market & Service Area

Pangborn Memorial Airport Air Service Influence Area

Pangborn Memorial Airport is located in north central Washington, with the 

closest airports with high levels of air service being three hours away in Seattle 

and Spokane. However, this still draws local residents and inbound tourists alike 

to these larger metropolitan centers for their travels due to general unawareness 

of the capabilities of Pangborn Memorial Airport.

Pangborn Memorial Airport

Service Area

Prior analyses have found that the core population served by Pangborn Memorial 

Airport is approximately 214,000. This population base generates over 231,000 

annual passengers. Based on year 2011 data, this indicates a leakage rate of 

over 60%. 

The activities that this grant will make possible will be a major factor in 

recapturing some of this lost traffic.
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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Current Air Service

Pangborn is currently served by Alaska Airlines, with service to its hub at Seattle.

In 2012, the community welcomed SeaPort to the market. The 9-seat turboprops 

provide access to Portland with a stop in Yakima. Both of these cities are 

important business destinations for north central Washington.

The Alaska Airlines flights are operated with the Bombardier Q400 aircraft, while 

the SeaPort flights are operated with 9 seat Cessna Caravan and Pilatus PC12 

aircraft. Again, the addition of another airline such as SeaPort is excellent for the 

community, but in order to ensure not only the success of SeaPort, but also the 

continued success of Alaska a marketing and advertising campaign can be 

implemented. 

There is very high leakage to other airports, predominantly Seattle. In order to 

aid in the success of the current Pangborn Memorial air service, it is important to 

understand why travelers use alternative airports for their travels to the north 

central Washington region. This grant is important to these efforts.
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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II. Passenger Traffic History at Pangborn

A review of the passenger traffic at Pangborn reveals some interesting trends. 

The first trend is that approximately 61% of the passenger traffic originates at 

Pangborn, meaning that only 39% of the passenger traffic is inbound visitors. 

This is unusual for a market of this size, which typically has more of a 50/50 

distribution of inbound vs. outbound air travelers. The table below shows the top 

25 O&D markets for Pangborn Memorial.

Long Term Trend: Lower Capacity

The Alaska Airlines service at Pangborn Memorial has been performed fairly well 

over the last several years, but a review of the scheduled departures and seats 

over the last four years reveals a disturbing trend. 

Carrier Dest 2009 2012 Change

% 

Chang

2009 2012 Change

% 

Chang

Alaska SEA 1,187 983 (204) -17.2% 87,838 74,708 -13,130 -14.9%

Seaport YKM 650 650 6,410 6,410

Total 1,187 1,633 446 37.6% 87,838 81,118 -6,720 -7.7%

Departures Seats

The Alaska scheduled departures and seats in 2012 are 17.2% and 14.9% lower 

than the 2009 levels, respectively. The addition of Seaport has offset these 

numbers to some degree, but it is the Alaska flights that provide connectivity to 

bring consumers to the region.

These data are a very compelling indication of the importance of this grant to the 

north central Washington economy. This is even more important in light of the 

fact that fuel costs in the past year are up more than 50%, while load factors 

and traffic have remained stagnant.

SEA and GEG – The Allure of Higher Levels of Air Service

A simple understanding of the number of nonstop destinations offered at SEA 

and GEG illustrates why air travelers would be tempted to use these airports as 

opposed to Pangborn. However, Pangborn allows for easy connections over SEA, 

and it is reasonable to expect that a marketing/advertising campaign would 

recapture local travelers while also using targeted marketing in key tourism 

markets to increase inbound visitors, and by extension fully utilize the current air 

service offered by the incumbent airlines.
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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The combined schedules of SEA and GEG reveals that there are approximately 

440 daily departures, making frequency a major contributor when air travelers 

are choosing which airport to use when visiting or traveling from the north 

central Washington region.1A review of Pangborn’s top current O&D markets 

gives extensive direction to how the grant will be used to recapture traffic.

Pangborn Memorial Top 25 O&D Markets

CY 2011

R ank M arket P sgr P D EW % Originating 

@ EA T

Gro ss OW

F are

N et OW

F are

% o f

P ax

N et R evenue

1 SEA 22,252 30.5 54.0% $84.57 $69.00 24.5% $1,448,196

2 PDX 4,532 6.2 46.8% $160.65 $130.10 5.0% $556,170

3 PHX 4,024 5.5 71.0% $227.57 $192.15 4.4% $640,364

4 LAS 3,960 5.4 91.3% $213.03 $178.64 4.4% $616,827

5 LAX 3,262 4.5 56.8% $213.96 $179.46 3.6% $526,181

6 SAN 2,946 4.0 70.1% $203.17 $169.54 3.2% $445,727

7 ANC 2,849 3.9 55.7% $376.32 $330.63 3.1% $724,544

8 SMF 2,721 3.7 48.4% $231.82 $196.16 3.0% $508,037

9 SJC 2,376 3.3 47.1% $216.10 $181.64 2.6% $396,617

10 DEN 2,201 3.0 53.1% $208.39 $174.45 2.4% $360,987

11 SFO 2,115 2.9 57.5% $198.22 $164.96 2.3% $330,208

12 SNA 2,078 2.8 73.7% $200.68 $167.26 2.3% $299,949

13 OAK 1,548 2.1 45.9% $207.73 $173.53 1.7% $241,964

14 BOI 1,424 2.0 53.6% $167.32 $136.27 1.6% $181,540

15 OGG 1,277 1.7 92.7% $292.04 $251.69 1.4% $258,468

16 RNO 1,276 1.7 80.8% $196.31 $163.19 1.4% $178,275

17 ORD 1,256 1.7 73.4% $310.73 $269.21 1.4% $316,177

18 ATL 1,207 1.7 64.0% $341.46 $297.65 1.3% $330,046

19 ONT 1,200 1.6 48.3% $208.50 $174.34 1.3% $196,812

20 MSP 1,181 1.6 59.9% $307.43 $266.49 1.3% $241,516

21 BUR 1,105 1.5 51.4% $195.14 $162.11 1.2% $157,845

22 PSP 1,066 1.5 80.7% $206.76 $172.65 1.2% $135,652

23 FAT 1,018 1.4 55.7% $219.98 $184.73 1.1% $172,930

24 MCO 978 1.3 85.2% $343.72 $299.49 1.1% $233,490

25 DCA 975 1.3 81.2% $359.87 $314.72 1.1% $243,071

Total 70,829 97.0 60.6% $181.53 $152.56 77.9% $9,741,592

While it is of course unrealistic for Pangborn to compete on a frequency basis 

with these larger airports, there is excellent connectivity over SEA when flying 

to/from Pangborn and a marketing/advertising campaign will help clarify the 

advantages of using the local airport. From this data, we can ascertain some key 

marketing opportunities:

 

1 Based on schedules filed the week of May 28th, 2012
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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 Phoenix is a major destination from Pangborn. Over 70% of the 

passenger traffic originates at EAT. Therefore, given the high leakage that 

the airport experiences, this sector of the traveling public can be targeted 

with the grant funds.

 Note that destinations in central and southern California are 

important to the region. These, then are key destinations that can be 

targeted with the marketing funds.

 SNA shows a very high local trip origination rate. This would indicate 

either some community of business interest between north central

Washington and that part of the Los Angeles Basin, or strong tourist 

traffic to leisure points (Disneyland, etc.) located near SNA. This also 

represents potential to recapture leakage with the targeted marketing this 

grant will support.

These are only a few examples of how the Airport and the community will make 

use of important travel data to assure that the grant dollars are effectively spent.

Recapturing Inbound Traffic

Of the 70,829 top 25 market O&D passengers at Pangborn in 2011, the 

outbound visitors accounted for 42,922. If the market were more balanced, 

approximately 35,415 passengers would be inbound as opposed to the 27,907 

that is currently achieved. The SCASD grant award would be utilized to increase 

the inbound passengers in top markets on the west coast. 

The second trend indicates that of the top 25 O&D markets, only four of them 

can be considered midwestern or eastern markets (ORD, MSP, MCO, DCA). By 

far the majority of the passengers are west coast or western United States 

passengers. While it is known that east coast residents visit the north central 

Washington region, it is clear that they are using alternative airports and that 

there is a deficiency in east coast ridership at EAT. These passengers are 

unaware of the ease of travel that Pangborn affords the air traveler. 
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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Load Factors – Room For Traffic Recapture

While fuel costs at the airline industry have gone up substantially in the past 

year, load factors at Pangborn Memorial have remained level.

This points to another imperative that this grant will address: increased ridership 

to assure Alaska service remains strong. Every net new passenger that this grant 

will help attract represents entirely new revenue to the Alaska Airlines system, 

with low or no additional expense to the airline. The program will also be 

valuable in assuring that the SeaPort service to Portland is also successful.

The community is confident that in identifying key passenger sectors for 

recapture, very rapid results will be seen.

Pangborn Memorial Load Factor Performance

Three Year Trend: 2009 - 2011

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Horizon - SEA

This clearly is a situation that can be addressed by the grant requested in this 

application. The recapture of even a low percentage of the current leakage will 

materially increase the incumbent airline’s load factors.
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

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Pangborn Memorial: Higher Fares

One of the realities that persists in today’s aviation industry is the general 

pattern of higher fares at smaller, regional airports than at larger metropolitan 

airports. This pattern exists at Pangborn. While it is unrealistic to expect fare 

parity with SEA and GEG at Pangborn, high fares are a reason why travelers

choose to use these larger airports over Pangborn. 

However, when factoring in time savings of being able to fly directly into north 

central Washington vs. flying into the other regional airports and renting a car 

(and the associated cost of fuel), it becomes clear that the higher fares that 

persist at Pangborn can be offset by the elimination of rental car fuel expense 

and the time it takes to drive to and from north central Washington.

Pangborn Memorial One Way Average

Gross Fares vs. SEA and GEG

CY 2011

Market Psgr Gross Fare Gross Rev. Psgr Gross Fare Gross Rev. Psgr. Gross Fare Gross Rev.

PDX 4,532 $160.65 $686,804 208,839 $120.42 $24,622,455 188,108 $107.12 $19,602,708

PHX 4,024 $227.57 $758,409 774,386 $180.31 $126,017,231 134,186 $182.26 $22,125,644

LAS 3,960 $213.03 $735,543 861,753 $152.23 $124,283,493 128,577 $175.41 $20,810,293

LAX 3,262 $213.96 $627,332 1,001,185 $169.11 $161,087,681 91,191 $177.65 $15,008,688

SAN 2,946 $203.17 $534,147 634,019 $171.17 $102,052,591 76,963 $199.57 $13,849,654

ANC 2,849 $376.32 $824,671 290,854 $335.86 $81,084,752 35,604 $351.91 $9,493,998

SMF 2,721 $231.82 $600,391 388,037 $163.94 $59,070,724 56,607 $192.93 $10,016,697

SJC 2,376 $216.10 $471,852 487,705 $151.84 $70,904,996 27,125 $194.86 $4,847,925

DEN 2,201 $208.39 $431,203 675,056 $168.02 $106,980,890 133,474 $150.61 $19,006,356

SFO 2,115 $198.22 $396,786 944,189 $145.52 $131,776,634 33,189 $244.32 $7,477,758

Total 30,987 $195.80 $6,067,139.02 6,266,024 $157.66 $987,881,445.37 905,026 $157.17 $142,239,722.82

EAT SEA GEG
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

12

III. The Grant Implementation

The Community and the Airport are requesting a grant in the amount of 

$200,000 to facilitate the implementation of a comprehensive marketing and 

advertising plan which will increase ridership for both inbound and outbound air 

travelers at Pangborn Memorial Airport.

The community is matching the grant dollars with $40,000, for a total in hard 

dollars of $240,000.

The Marketing Plan

Currently, 61% of all traffic in the market is originated at Pangborn. Therefore, 

the marketing efforts will be concentrated on both increasing the awareness of 

top inbound markets, such as Phoenix, Santa Ana, Sacramento, Portland and 

Seattle, of the outstanding tourism opportunities in north central Washington, as 

well as increasing the awareness of the levels of air service offered at Pangborn 

among the local residents. The recapture of local passengers using alternative 

regional airports will be critical to the future success of Pangborn.

Marketing & Communication Strategy

The marketing plan will include aggressive advertising and promotional tactics, 

with the primary audiences being the general public and local businesses:

 General Public: Advertising campaign around the convenience and ease of 

travel that the Pangborn Memorial Airport affords the local community. 

This will include the merits of an uncongested terminal, minimal drive 

time when compared to other regional airports, excellent connectivity 

through the hubs served from EAT, and the short check-in and security 

lines.

 Business Community: The Business community will also be targeted via 

the marketing and advertising campaign. Specific data will be utilized to 

demonstrate how the air service at EAT has had a direct and significant 

impact on the local economy.

Examples of the types of marketing and advertising tactics use include 

billboards, print advertisements in local media, radio advertisements, and social 

media marketing to espouse the virtues of Pangborn Memorial Airport. 
Department of Transportation Docket OST-2012-0069

Application of Pangborn Memorial Airport

13

Funding Distribution

The grant requested is for $200,000, with a match of $40,000 from the local 

community for a total of $240,000. The cash distribution will be as follows:

Category

SCASD 

Grant

% of 

Total

Matching 

Funds

% of 

Total

TOTAL

Marketing/Advertising Program $200,000 83.3% $40,000 16.7% $240,000

TOTAL $200,000 83.3% $40,000 16.7% $240,000

Eligibility

Pangborn Memorial Airport is in complete compliance with the eligibility 

requirements as outlined in DOT Docket 2012-0069.

Continuing Community Support

The community believes that the success of the incumbent airlines and the 

increased ridership which would accompany the use of the SCASD grant funds 

will be critical to its future success as a commercial airport. 

The funding from this grant will establish a marketing approach that will be used 

after the end of the grant period. The Airport and the community fully 

understand the dynamics of the market, and will be able to focus future efforts 

on consumer sectors and geographic points that can expand both business and 

tourism travel at Pangborn Municipal.

Past Air Service Efforts

The community represents a relatively small population base. Therefore, as a 

practical matter, only two gateways are within logical reach of Pangborn. These 

are the Alaska/Horizon hub at SEA and the large metropolitan center of Portland, 

OR (PDX). Therefore the community has been diligent of the need to stay in 

communication with their two incumbent carriers in order to aid and assist in any 

manner feasible.
June 6, 2012 

Secretary Ray LaHood 

United States Department of Transportation 

1200 New Jersey Avenue SE 

Washington DC 20590 

RE: Support of Pangborn Memorial Airport Application for Funding Under the Department of 

Transportation Small Community Air Service Development Program 

Dear Mr. Secretary; 

I am writing to express the support of the Wenatchee Valley Chamber of Commerce for the Pangborn 

Memorial Airport's 2012 Small Community Air Service Development grant submission. 

This Airport serves as a vital link to the national air transportation system for all of North Central 

Washington, encompassing the east slopes of the Cascade Mountains from Canada to Interstate 90. The 

airport is an essential public facility that facilitates economic growth within the community and 

represents a significant asset to the local tourism industry. 

The Pangborn Memorial Airport is currently experiencing modest passenger growth after declining 

passenger enplanements in 2010. However, a significant number of local residents and visitors to North 

Central Washington are not taking advantage of the convenient transportation services offered by 

Alaska Airlines and SeaPort Airlines. 

The Small Community Air Service Development Program offers the Airport an opportunity to more 

effectively promote the services offered by its airline partners. The requested grant funding would help 

the community to preserve the value ?fan important local asset by ensuring the long term sustainability 

of local air service. 

Sincerely, 

9~ & Jerrilea 

Interim 

Crawford 

Executive Director 

~ 

2 S. Mission Street, P.O. Box 850, Wenatchee, WA 98807 • 509-662-2116/509-663-2022 Fax • info@wenatchee.org/www.wenatchee.org 

The mission of the Wenatchee Valley Chamber of Commerce is to strengthen the economic climate of the Wenatchee Valley. 
PO Box 834 • Cashmere, WA • 98815 • 509.782.7404 509.782.1265 Fax • info@cashmerechamber.com 

OFFICERS

LAURIE SHORETT, 

PRESIDENT 

CASCADE VALLEY INN

ALEX CRUZ, VICE PRESIDENT

CASHMERE VALLEY BANK

KALE HILL, SECRETARY

HILL INSURANCE

KEITH WEBB, TREASURER

WEBB ACCOUNTANCY

DIRECTORS

KEN BROWNSTEIN 

STUDEBAKER’S RESTAURANT

DAN DEAN 

OVERALL KITCHEN & 

BATH DESIGN 

VAL GILMOUR 

RAVENOUS CATERING & 

THE CONSERVATORY 

BUMFIELD’S PARTY 

RENTAL & SUPPLY 

JAN MEREDITH-EVANS 

CASHMERE COTTAGE YARN

GAIL MORRISON 

CRUNCH PAK

LISA WAREHAM 

WATERVILLE WINERY/ 

MISSION DISTRICT 

DAVID WEBER 

MARTIN’S MARKET PLACE

MICHELLE WHITFORD 

APPLE ANNIE’S ANTIQUE 

GALLERY 

June 4, 2012 

Secretary Ron LaHood 

United States Department of Transportation 

1200 New Jersey Ave. S.E. 

Washington, D.C., 20590 

Dear Mr. Secretary, 

 

I am writing to express the support of the Cashmere Chamber of 

Commerce for the Pangborn Memorial Airport's 2012 Small Community 

Air Service Development grant submission. 

This airport serves as a vital link to the national air transportation system 

for all of North Central Washington, encompassing the east slopes of the 

Cascade Mountains from Canada to Interstate 90. It is an essential public 

facility that facilitates economic growth within the community and 

represents a significant asset to the local tourism industry, including that 

in Cashmere. 

Pangborn Memorial Airport is experiencing modest passenger growth 

after declining passenger enplanements in 2010. However, a significant 

number of local residents and visitors to North Central Washington still 

are not taking advantage of the convenient transportation services offered 

by Alaska Airlines and SeaPort Airlines. 

The Small Community Air Service Development Program offers the 

Pangborn an opportunity to more effectively promote the services offered 

by its airline partners. The requested grant funding would help the region 

preserve the value of an important local asset by ensuring the long-term 

sustainability of local air service. 

Sincerely, 

 

Laurie Shorett 

President, Cashmere Chamber of Commerce