August 27, 2010 

An Integrated Program of New Service Development via: 

Advertising/Marketing and Revenue Guarantees 

 In Support of New Horizon Air Service to/from San Jose 

Sponsor: Jackson County/Rogue Valley International – Medford Airport 

 Medford, Oregon 

 Bern Case, Airport Director 

 Congressional Code: OR-002 

 Dun & Bradstreet Number: 155788276 

ROGUE VALLEY INTERNATIONAL – MEDFORD AIRPORT 

MEDFORD, OREGON 

Proposal Under the Small Community Air Service Development Program 

 

Docket: DOT-OST-2010-0124

Before the Office of the Secretary of Transportation 

US Department of Transportation
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 2

TABLE OF CONTENTS

Section Page 

Introductory Letter of Support 3 

Summary Information 4 

Introduction 7 

Primary Objectives of Proposal 8 

Executive Summary 9 

Detailed Explanation of Proposal 15 

Expected Results 17 

Letters of Support 22 

Current Air Service 26 

Air Service Deficiencies 30 

Extenuating Factors Affecting Air Service 32 

Availability of Alternate Airports 34 

Use of Local/Federal Funds 35 

Public/Private Partnerships 36 

Implementation Timeline 38 

Air Service Advisory Groups 39 

Local Air Service Development Efforts 40 

In-kind Services from the Community 41 

Performance Measures 42 

Legal Sponsor 43 

Financial Controls 44 

Return on Investment 45 

DOT Exit Strategy 46 

Alternate Plan 47 

Airport Information 48 

Community Profile 49 

Comparison to Other Communities in Region 57 

Conclusions 59 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 3

INTRODUCTORY LETTER OF SUPPORT 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 4

SUMMARY INFORMATION 

Small Community Air Service Development Program 

Docket DOT-OST-2010-0124 

A. Applicant Information 

 Not a Consortium Community now receives EAS subsidy 

 Interstate Consortium Intrastate Consortium 

 Community previously received a Small Community Grant 

 If previous recipient, date of Grant: ________________________________ 

 expiration date of Grant: _______________________ 

B. Public/Private Partnership

Public: 

1. Rogue Valley International – Medford Airport 

2. Jackson County 

3. City of Medford 

Private: 

 

1. Horizon Air 

2. Medford/Jackson County Chamber of Commerce 

3. Southern Oregon Regional Economic Development, Inc. 

4. Medford Visitors Convention Bureau 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 5

C. Project Proposal 

 Marketing Upgrade Aircraft New Route 

 Personnel Increased Frequency Low Fare Service 

 Travel Bank Service Restoration Subsidy 

 Surface Transportation Regional Service Other (Specify) 

 Revenue Guarantee Launch New Carrier 

 Start Up Cost Offset First Competitive Service 

 Study Secure Additional Carrier 

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach 

 Localizer Other:

E. Project Cost 

1. Federal amount requested: $ 500,000 

2. State cash financial contribution: $ 0

3. Local cash financial contribution: $ 50,000

 3a. Airport cash funds: $ 25,000

 3b. Non-Airport cash funds: $ 25,000 

 3c. Total local cash funds: $ 50,000

4. TOTAL CASH FUNDING: $ 550,000

5. Local funds contributed from already existing

Programs of projects included in line 3c: $ 0

6. Local funds contributed from new commitments 

Or new resources included in line 3c: $ 50,000

7. Airport In-Kind contribution: $ Various

Description: Fee waivers: One year without landing and terminal fees

8. Other In-Kind contribution: $ Various

Description: Advertising and marketing match money

9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

10. TOTAL PROJECT COST: $ 550,000
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 6

F. Enplanements at Airport

 2000: 228,860 

2001: 209,160

 2002: 204,700

 2003: 218,470

 2004: 237,250

 2005: 271,330

 2006: 273,820

 2007: 284,840

 2008: 262,130 

2009: 253,330 

G. Is Application Subject to Review by State Under Executive Order 12372 Process?

 This application was made available to the State on ______. 

 Program is subject to review, but has not been selected by the State. 

 Program is not covered. 

H. Is Applicant Delinquent on any Federal Debt? 

 No 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 7

INTRODUCTION 

The Rogue Valley International – Medford Airport saw tremendous passenger growth from 2004 

to 2008, with total passengers up 60% in that time period. At the same time the Medford 

community grew at a rapid pace – adding almost 25% more residents. The Airport has come 

through the challenge of providing service to a much larger community with a new terminal and 

a strong service pattern. But, since 2008, seats on network carriers – the primary carriers 

responsible for the commerce that is so important to the economy of an isolated community 

such as Medford – are down by 15%. This trend is 

disturbing, as it indicates Medford is not as well 

connected to the national air transportation system 

as it once was. 

With Horizon working to “right size” its service in 

Medford to the current hubs it serves – cutting seats 

to each of its destinations including Portland, Los 

Angeles, and Seattle – Medford has initiated 

discussions with the airline to increase service through adding a new focus city route. The route 

of mutual interest is between Medford and San Jose. The Rogue Valley has close ties with the 

Bay Area, and has worked for several years to land service to an additional access point outside 

San Francisco International (SFO). Medford travelers frequently experience delays on service to 

and through SFO due to fog and the runway layout of that airport. An alternate access point – 

at San Jose – would be widely supported. 

Moreover, the number of average daily departures between Medford and San Francisco has 

fallen from 9.1 in August of 2008 to 5.7 in April of 2010 – a loss of 3.4 daily departures from 

Medford to San Francisco – or a decline of 37%. The market does not have the capacity it once 

had – with seats down 20% in the same time period. The Bay Area ranks as Medford’s second 

largest combined market, but it does not have sufficient seats to support the demand between 

the cities. 

The Rogue Valley International – Medford Airport has recruited seven new routes in the last 15 

years without ever asking the DOT for a Small Community Air Service Development Grant. As 

you will see in this application, the environment has changed, and the Airport must now have 

support to make additional service a reality. 

“The Airport has recruited seven new 

routes... without ever asking the DOT 

for a... Grant. The Environment has 

changed, and the Airport must now 

have support...” 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 8

PRIMARY OBJECTIVES OF PROPOSAL 

Objectives for Program: 

 Increase connectivity in southern Oregon 

 Create better opportunities for business connections 

 Recruit additional network service to the market 

 Increase the use of local air service 

 Decrease average fares 

Means to Achieve Objectives: 

 Continue discussion with Horizon Air, and other targeted carriers, about additional 

market opportunities 

 Develop risk mitigation package 

 Develop local marketing package to offer to interested carriers 

Course of Action to Support Means: 

 Make available revenue guarantee in first 24-months of new service 

 Initiate marketing and advertising campaign to publicize new air service 

 Work with local business partners to make sure new service is successful 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 9

EXECUTIVE SUMMARY 

The Rogue Valley International – Medford Airport is an air service hub for a large region of 

southern Oregon and northern California. The Airport is one of the few in the country that has no 

other air service options within a two hour drive. The region is also isolated by it topography. 

Medford is surrounded by mountains – located in the Rogue Valley which is sandwiched by the 

Siskiyou Mountains to the south and west and the Cascade Mountains to the north and east. 

The Rogue Valley International – Medford Airport catchment area includes the area defined by 

the US Census Bureau as the Medford Metropolitan Statistical Area (MSA), along with other 

regions where Medford is 

the nearest airport with 

commercial air service – 

including all areas of 

southern Oregon and 

northern California within a 

two hour drive of the 

airport. The one-hour 

Medford catchment area 

is home to 276,586 people 

as of the latest US Census 

estimates, while the twohour catchment area is 

home to 479,030 people. 

There are no true 

competing airports within 

three hours of Medford. 

The Rogue Valley 

International Airport 

catchment area is the second largest in the State of Oregon, but Airport is still classified as a 

non-hub. 

The Rogue Valley International – Medford Airport has long had service from the west coast two 

largest airlines serving regional markets – United and Alaska/Horizon. Each Airline provides about 

40% of the available seats in the Medford market. But, in recent years, Horizon has been cutting 

FIGURE 1: The Rogue Valley International Airport’s immediate

(60 minute) and extended (120 minute) catchment areas
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 10

back its service profile in the Rogue Valley as it retired its fleet of smaller, 48-seat Dash 8-200 

turboprops. Horizon’s frequencies in the Medford market have fallen significantly in the last three 

years, and the number of seats it offers has fallen, as well. 

At the same time, United has slightly increased its presence, but not enough to make up for the 

seat losses on Horizon. The only airline in the Medford market that has been expanding 

aggressively is Allegiant. Allegiant has been an excellent partner with the Airport, spurring much 

new travel. But it must be noted that Allegiant does not provide the network connectivity that is 

so important to most of the region’s travelers. Now the Airport must work to improve that 

network connectivity. 

From September 2009 to September 2010, Horizon will have cut its available seats in the Medford 

market by 25% - a loss of 146 departing seats per day, as Medford-Eugene was cut from the 

network and as service to Los Angeles and Portland will be reduced (see Figure 2). At the same 

time, Delta service to Salt Lake City will be flat, with two departures per day. United will increase 

its service slightly year-over-year, as will Allegiant. Still, the net result is a loss of 6.4% of seats 

FIGURE 2: Scheduled Service at the Rogue Valley International – Medford Airport

September 2009 vs. September 2010; Source: Airline Schedule Data

Non-Stop Departures Seats Departures Seats Capacity

Carrier Destination Per Day Per Day Per Day Per Day Change

Horizon/Alaska LAX 2 148 1 74 -50.0%

EUG 1 74 0 0 -100.0%

PDX 3 222 2.9 212 -4.5%

SEA 1.8 136 2 148 8.8%

Horizon/Alaska Total 7.8 580 5.9 434 -25.2%

Delta SLC 2 100 2 100 0.0%

Delta Total 2 100 2 100 0.0%

United DEN 1 71 1.6 102 43.7%

PDX 2.9 88 2.9 88 0.0%

SFO 4.9 211 5.8 246 16.6%

United Total 8.8 370 10.3 436 17.8%

Allegiant LAS 0.25 40 0.25 40 0.0%

LAX 0.25 40 0.34 50 0.0%

IWA 0.25 40 0.25 40 0.0%

Allegiant Total 0.75 120 0.84 130 8.3%

Medford Total 19.35 1170 19.04 1100 -6.4%

Sep-09 Sep-10
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 11

departing Medford from September 2009 to September 2010, or 70 departing seats per day. 

These cuts happen as most markets in the west are seeing flight and seat increases. 

As of September 2010, Medford will 

have non-stop service to eight 

destinations (see Figure 3). There is 

competition on just two routes from 

Medford – the service to Portland 

which is operated by both United 

Express/SkyWest and Horizon, and 

the service to Los Angeles (LAX) 

which is operated by both Horizon 

and Allegiant. 

When analyzing Medford’s overall 

passenger traffic over the last 

several years it is important to note 

the impact Allegiant Air has had on 

the market. While overall fares have 

gone down since Allegiant arrived, average fares on network carrier have not declined at the 

same rate. Essentially, the only true “fare relief” the Medford market has seen has been to 

specific Allegiant non-stop markets – Las Vegas, Phoenix/Mesa, and Los Angeles. 

Between the year ended first quarter 2004 and the year ended first quarter 2008, Medford saw 

strong passenger growth on its network carriers. During that time period, passengers increased 

by 60% or 243.4 passengers per day each way (see Figure 4 on next page). The real challenge 

has appeared in the two years following 2008, as network carrier passengers at Medford are 

down 12% or almost 55,000 total passengers. 

This network carrier passenger decline has been somewhat mitigated, from the Airport’s 

perspective, by the increase in the number of passengers traveling on Allegiant. Between the 

year ended first quarter 2008 and the year ended first quarter 2010, Allegiant has increased its 

passengers from just 24,830 per year to 81,050 per year – a growth rate of 226% (see Figure 4 on 

next page). But it appears some of this growth is driven merely by low fares, and not by the 

convenience or connectivity provided by the service. 

FIGURE 3: Medford’s Scheduled Service

September 2010; Source: Airline Schedule Data
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 12

Overall, the year ended first quarter 2010 saw an average of 650 passengers per day each way 

in and out of the Rogue Valley International – Medford Airport, which was up very slightly over 

the previous high of 648 passengers per day each way in the year ended first quarter 2008 (see 

Figure 4). Still, network carrier passengers – the primary passengers responsible for the 

commerce that is so important to the economy of an isolated community such as Medford – 

were down by 12%. This trend is disturbing, as it indicates Medford is not as well connected to 

the national air transportation system as it once was. The Airport realizes it must do something 

about this reduced connectivity. 

As network carrier passengers have been in decline, network carrier airfares have generally 

increased. It is important in the Medford market to analyze airfares by carrier type – and not just 

average out the airfares over all carriers. Allegiant’s fare structure is much different than those 

of the network carriers, and it brings down the overall Medford average. Allegiant does not, 

however, offer Medford travelers the wide range of destinations offered by the network carriers. 

This wide array of service requires a higher average fare. 

374,040

346,600 336,900

295,610 303,140

372,100

440,860 448,450

396,780 393,760

24,830

38,580

81,050

512.4

474.8

461.5

404.9 415.3

509.7

603.9

648.3

596.4

650.4

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

YE1Q01 YE1Q02 YE1Q03 YE1Q04 YE1Q05 YE1Q06 YE1Q07 YE1Q08 YE1Q09 YE1Q10

PDEW Allegiant Network

FIGURE 4: Network and Allegiant Passengers at the Rogue Valley International – Medford Airport

YE1Q01 – YE1Q10; Source: US DOT Table DB1A
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 13

Since its low point in the year ended first quarter 2003, Medford network carrier fares, seen in red 

in Figure 5, have increased by $12 each way, or $24 roundtrip – an increase of 8%. During the 

same period, the overall average fare in the market fell by $6 each way, or $12 roundtrip – a 

drop of 4% (see in yellow in Figure 5). The fare decrease was caused by the entrance of 

Allegiant’s low fare model, and low cost point to service into Medford. Allegiant’s average fare 

was just $55 each way as of the year ended first quarter 2010 (see in blue in Figure 5), which 

brought the overall Medford average fare to $18 below the network average fare. 

The more important number to look at is the network carrier average fare, which is seen in red in 

Figure 5. These network carriers provide all the Medford market’s national connectivity, and as 

such it is clear that the average fare for access to the national air transportation system is well 

above the overall market average – and increasing. 

With Horizon working to “right size” its service in Medford to the current hubs it serves – cutting 

seats to each of its destinations including Portland, Los Angeles, and Seattle – Medford has 

initiated discussions with the airline to increase service through adding a new focus city route. 

$155 $152 $148 $155 $155

$165 $170

$167

$175

$160

$65

$55 $55

$155 $152 $148 $155 $155

$165 $170

$162 $165

$142

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

YE1Q01 YE1Q02 YE1Q03 YE1Q04 YE1Q05 YE1Q06 YE1Q07 YE1Q08 YE1Q09 YE1Q10

Network Allegiant Average Fare

FIGURE 5: Average Fares by Airline Type at the Rogue Valley International – Medford Airport

YE1Q01 – YE1Q10; Source: US DOT Table DB1A
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 14

The route of mutual interest is between Medford and San Jose. The Rogue Valley has close ties 

with the Bay Area, and has worked for several years to land service to an additional access 

point outside San Francisco International (SFO). Medford travelers frequently experience delays 

on service to and through SFO due to fog and the 

runway layout of that airport. An alternate access 

point – at San Jose – would be widely supported. 

The Airport must offer Horizon some kind of risk 

mitigation to ensure the route’s profitability in the 

start-up phase. While the Airport has mined very 

specific data, showing the route will be successful, 

Horizon will require some insurance to ensure it doesn’t lose money. It should be noted, Horizon is 

a partner in this project, submitting a letter of support to the Airport, and to the Department of 

Transportation. If Grant money is awarded, it is likely Horizon will enter the Medford – San Jose 

market between now and the beginning of 2012. 

“Horizon is a partner in this project, 

submitting a letter of support to 

the Airport, and to the 

Department of Transportation.” 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 15

DETAILED EXPLANATION OF PROPOSAL 

The Rogue Valley International – Medford Airport proposes to use a combination of locally raised 

funding, including fee waivers and marketing support, in conjunction with federal Small 

Community Air Service Development Grant funding in 

support of the addition of new service on Horizon Air to 

San Jose. In the Airport’s discussions with Horizon Air the 

Airline indicated an interest in flying its Bombardier Q400 

aircraft on a routing from Medford to San Jose, adding SJC 

to its current Medford service profile that includes nonstops to Los Angeles, Seattle, and Portland (see Figure 6). 

The Rogue Valley International – Medford Airport seeks a 

Small Community Air Service Development Grant, in the 

amount of $500,000, to help mitigate Horizon’s initial 

monetary risk in serving San Jose. Additionally, the Airport 

has committed to fee waivers for a period of one year 

from the start of the new non-stop service and additional 

marketing cash and in-kind to advertise the new service 

throughout northern California and southern Oregon. 

The Airport proposes one daily flight on the route in each direction. The route between Medford 

and San Jose would cover 349 miles in a flight time of 52 minutes, on average, assuming an 

average groundspeed of 350 knots on a Bombardier Dash 8 Q400 aircraft seating 74 in an alleconomy layout. 

Origin Destination Departs Arrives Block Time Equipment 

MFR SJC 6:00am 7:15am 1:15 DH4 

SJC MFR 8:00pm 9:15pm 1:15 DH4 

FIGURE 6: Proposed Route:

Medford – San Jose

FIGURE 7: Proposed Flight Schedule:

Medford – San Jose
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 16

The proposed schedule aims to connect Medford to San Jose’s largest connecting banks, in 

order to ensure optimum connection options for travelers heading beyond San Jose (see Figure 

7 on previous page). The schedule is also designed with the Medford-based business traveler in 

mind, with an early morning Medford departure and a late evening return, allowing for a full day 

of business in the Bay Area. The flight times do not take into account upper level winds or 

weather. For the purposes of these schedules it is assumed the aircraft would overnight at 

Medford, where Horizon can take advantage of much lower overnight parking rates. 

The Rogue Valley International – Medford Airport proposes that a relatively small portion of the 

cost of starting the new service be supported up-front with federal funds from the Small 

Community Air Service Development Program. 

None of the Grant award going to immediate 

start-up costs. The federal share of the project 

will be $500,000, all of which will be used for the 

airline revenue guarantee. 

The Rogue Valley International – Medford Airport 

projects that the bulk of the grant money be 

available to provide insurance in case Horizon Air incurs a loss during the first year of operations. 

With demand for additional Bay Area service in the Medford market, and demand for 

connectivity over the Alaska/Horizon focus cities, the Airport projects the new flights will be 

profitable within one year. 

If, for some unforeseen reason, service is not commenced in a timely manner by Horizon, the 

Rogue Valley International – Medford Airport proposes to use federal grant money awarded 

under the Small Community Air Service Development Program to help another carrier launch a 

currently unserved route. Among the options that would be considered are US Airways service 

to Phoenix, Horizon Air service to Las Vegas, American service to Dallas/Ft. Worth, and United 

service to Chicago O’Hare. 

Should these options, for an unforeseen reason, not be available for new service at the Rogue 

Valley International – Medford Airport, the Airport will continue its discussions with all other 

carriers than can provide additional seats to a hub not currently served. Since the community 

has never before received a Small Community Air Service Development Grant, it will have no 

limitations on which new hub the DOT could fund.

“The schedule is... designed with 

the Medford-based business 

traveler in mind, with an early 

morning Medford departure and 

a late evening return.” 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 17

EXPECTED RESULTS 

Route Specific Data: Medford – San Jose 

Medford area travelers have long support service to and through the San Francisco Bay Area. 

The challenge is using Bay Area service in the last several years has been a reduction in the 

number of flights and available seats between Medford and San Francisco International (SFO) – 

not to mention frequent delays due to poor weather at SFO. 

San Jose’s Mineta International Airport does not have the weather challenges seen at SFO, and 

it now offers strong connectivity as Horizon and Alaska have started to build a small focus city 

there. San Jose has gone from being a true secondary airport in the Bay Area, to a small hub, 

which could 

immediately access 

about a third of 

available Medford 

area passengers. 

Connections through 

San Jose would give 

Medford travelers onestop access to a 

number of markets in 

which there is little 

current competition. 

Moreover, the Bay 

Area currently ranks as 

Medford’s second 

largest origin and 

destination passenger market, averaging almost 16,000 annual passengers, or 21.7 passengers 

per day each way as of the year ended first quarter 2010. Horizon service from Medford to San 

Jose would provide connections to 11 markets beyond the SJC focus city operation, from Los 

Angeles – which recently saw Horizon cut service in half, to just one non-stop per day – to Maui 

and Minneapolis (see Figure 8). 

FIGURE 8: Connections Available Beyond San Jose

Source: Sixel Consulting Group Hub Builder, YE1Q10
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 18

The Medford market currently produces 223 unstimulated origin and destination passengers per 

day each way to destinations that naturally connect over the Alaska Airlines/Horizon Air San 

Jose focus city – not taking into account any stimulation from additional non-stop service. As of 

the year ended first quarter 2010, Medford produced 163,260 total origin and destination 

passengers that would flow over San Jose (see Figure 9). 

In all, the Medford – San Jose route has the potential to capture 30% of the current passengers 

flying in and out of Medford, itself, without taking into account any passenger leakage (see 

Figure 9). At the same time, the San Jose focus city could capture 26% of the current revenue 

generated in the Medford market. Currently, Alaska/Horizon markets from Medford that flow 

over the San Jose focus city generate more than $23.9 million in annual airline revenue, or 

$32,781 in revenue per day each way (RDEW) to and from Medford (see Figure 9). 

The Alaska/Horizon focus city at San Jose has potential to capture large portions of traffic in 11 

of Medford’s largest origin and destination markets. The San Jose focus city is especially well 

positioned to capture traffic traveling to destinations in the southwest, Hawaii, and the Midwest – 

including large markets such as Los Angeles, which produces 133.5 passengers per day each 

way (PDEW) as of the year ended first quarter 2010; the Bay Area, itself, which produces 21.7 

PDEW; Chicago, which produces 13.6 PDEW; Dallas/Ft. Worth, which produces 11.1 PDEW; Salt 

San Jose 

30%

Other 

Hubs 70%

San Jose 

26%

Other 

Hubs 74%

Medford O&D Revenue $91,491,890 100%

Revenue Flowing Over San Jose $23,930,120 26%

Medford O&D Passengers 542,853 100%

Passengers Flowing Over San Jose 163,260 30%

FIGURE 9: Medford Passengers and Revenue Flowing Over SJC on Alaska/Horizon

Source: Sixel Consulting Group Hub Builder, YE1Q10
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 19

Lake City, which produces 10.4 PDEW; and Maui/Kahului, which produces 9.3 PDEW as of the 

year ended first quarter 2010 (see Figure 10). 

It is likely Horizon would 

stimulate the passenger 

market significantly 

between Medford and 

San Jose, with a projected 

stimulation rate in its 

market of, at least, 50%. 

Horizon’s low fare 

structure has been shown 

to have a similar impact in 

other markets in the west. 

This gives the Airport 

reason to be optimistic 

that the service can be self-sustaining in as little as 12 months from the start of flights. 

Medford’s top nine revenue markets that would flow over San Jose on Alaska/Horizon each 

produce more than $1,000 in RDEW (see Figure 11). The top potential Medford revenue market 

over Alaska/Horizon’s San Jose focus city is Los Angeles, producing more than $14,200 in revenue 

per day each way (RDEW) as of the year ended first quarter 2010. The Bay Area ranks as 

Medford’s secondlargest revenue 

market that 

Alaska/Horizon 

would access, 

generating $3,957 

in RDEW as of the 

year ended first 

quarter 2010. 

97,430

15,840

9,960

8,090

7,560

6,790

4,810

4,540

3,730

3,310

1,200

133.5

21.7

13.6

11.1

10.4

9.3

6.6

6.2

5.1

4.5

1.6

0 10000 20000 30000 40000 50000 60000 70000 80000 90000

Los Angeles Basin- 1

San Francisco Bay Area - 2

Chicago Area- 3

Dallas/Ft Worth Area - 4

Salt Lake City - 5

Minneapolis - 6

Kahului - 7

Atlanta - 8

Kona - 9

Austin - 10

Sacramento - 11 Annual Passengers 

FIGURE 10: Medford’s Top Passenger Markets Over SJC on Alaska/Horizon

Source: Sixel Consulting Group Hub Builder, YE1Q10

$10,388,470

$2,888,460

$2,034,560

$1,966,220

$1,486,390

$1,322,440

$1,204,870

$1,001,930

$815,990

$618,250

$202,540

$14,231

$3,957

$2,787

$2,693

$2,036

$1,812

$1,651

$1,373

$1,118

$847

$277

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000

Los Angeles Basin - 1

San Francisco Bay Area - 2

Chicago Area- 3

Dallas/Ft Worth Area - 4

Salt Lake City - 5

Minneapolis - 6

Atlanta - 7

Kahului - 8

Kona - 9

Austin- 10

Sacramento - 11

Annual 

Revenue

FIGURE 11: Medford’s Top Revenue Markets Over SJC on Alaska/Horizon

Source: Sixel Consulting Group Hub Builder, YE1Q10
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 20

The Alaska/Horizon focus city at San Jose is in a unique position to generate additional traffic 

and revenue to any number of Medford’s top origin and destination markets. Alaska/Horizon 

service from the Rogue Valley International – Medford Airport to San Jose has the potential to 

capture as much as $23.9 million in current airline revenue, not taking into account any revenue 

stimulation through lower fares and additional non-stop service. Moreover, the San Jose focus 

city of Alaska/Horizon is also designed to connect to codeshares on many other airlines, such as 

American and 

Delta. 

Should it launch 

service between 

Medford and San 

Jose, Horizon 

would be 

competing in 

markets that have 

current fares 

averaging $147 

each way (see 

Figure 12). Horizon 

would provide 

much-needed 

competition for Medford catchment area residents traveling to most of the market’s top 

destinations, where fares top the regional average, such as the San Francisco Bay Area, where 

the average roundtrip fare was $365 as of the year ended first quarter 2010; Chicago, where the 

average roundtrip fare was $409 as of the year ended first quarter 2010; Dallas/Ft. Worth, where 

the average roundtrip fare was $486 as of the year ended first quarter 2010; Salt Lake City, 

where the average fare was $393 roundtrip as of the year ended first quarter 2010; 

Minneapolis/St. Paul, where the average roundtrip fare was $390 as of the year ended first 

quarter 2010; and Atlanta, where the average roundtrip fare was $417 as of the year ended first 

quarter 2010. 

$107

$182

$204

$243

$197

$195

$208

$265

$219

$187

$169

$0 $50 $100 $150 $200 $250

Los Angeles Basin - 1

San Francisco Bay Area - 2

Chicago Area - 3

Dallas/Ft Worth Area - 4

Salt Lake City - 5

Minneapolis - 6

Kahului - 7

Atlanta - 8

Kona - 9

Austin - 10

Sacramento - 11

Average Over SJC: $147

FIGURE 12: Average One Way Fares in Medford’s Top Passenger Markets Over SJC

Source: Sixel Consulting Group Hub Builder, YE1Q10
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 21

The only real chance at fare relief in markets that flow over San Jose on Alaska/Horizon is for an 

additional airline to offer competing service. Horizon’s low fare service would go a long way 

towards providing enough competition to bring fares in-line with those found in other western 

markets. 

The Airport believes there is sufficient passenger traffic and revenue that would flow over 

Alaska/Horizon’s San Jose focus city to make the service profitable. Alaska/Horizon would not 

be forced to offer rock-bottom fares in Medford to be competitive – even fares slightly higher 

than those found in other western markets would be considered low for local Medford travelers. 

The Rogue Valley International Airport believes in the Medford – San Jose/Bay Area market, and 

must develop a risk mitigation package to ensure Horizon can enter the market without major 

up-front investments.
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 22

LETTERS OF SUPPORT 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 23
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 24
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 25
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 26

CURRENT AIR SERVICE IN MEDFORD 

Medford is one of the few markets to report passenger increases in 2010. But those increases 

aren’t exactly what they might seem on the surface. All passenger growth in the market is being 

fueled by the low fare, point-to-point service of Allegiant Air. Network carriers, as illustrated in 

the Executive Summary of this proposal, have seen their passengers continue to decline for the 

last three years. While Allegiant service has been good for Medford-area vacationers, it does 

little to support business travel, and economic activity, in and out of the Rogue Valley. The 

Airport must work to increase the business travel connectivity that has been lost since 2008. 

Current Passenger Traffic in the Medford Market 

Since the summer of 2008, when fuel initially spiked and airlines began the process of reducing 

capacity, the Rogue Valley International Airport has gone from an average of 28 daily 

departures to an average of 18.8 daily departures, as of April 2010 – a loss of 33% of daily flights 

(see Figure 13). During the same time period Medford has seen a loss of an average of 195 daily 

departing seats – or 15%.

1,345 1,347

1,254

1,206 1,212

1,117 1,090 1,067

1,111 1,132

1,196 1,217

1,284 1,308

1,277

1,202 1,173

1,136

1,004 1,008

1,093

1,123 1,152

984

953 932

809 796

727 741

619

651

722 744

837

1,025 1,009 991

893

865

804

750

654

697

774 796

400

600

800

1,000

1,200

1,400

Available SDEW Onboard PDEW Flights DEW

28.0 27.8

25.6

22.2 21.9

20.5 19.9 19.3 20.0 20.5 21.5 21.3 21.8 21.7 21.7

19.7 19.0 18.0

16.4 16.3

17.8 18.5 18.8

FIGURE 13: Average Daily Departures, Daily Available Seats, Daily Onboard Passengers

Source: US DOT T100 Data, June 2008 – April 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 27

While flights in Medford are down 33%, daily seats are down just 15%, indicating that airlines are 

using larger aircraft at the Rogue Valley International – Medford Airport with less frequency. This 

is a direct reflection on the impact of Allegiant Air on the Medford market. Allegiant operates 

just seven frequencies a week to three destinations, but offers more than a tenth of all Medford 

departing seats. 

The Allegiant impact on the market can also be seen in Medford’s top 20 origin and destination 

passenger markets. In what used to be a market dominated by business travel, three of the top 

five markets have been fueled by vacation travel on Allegiant – number one Los Angeles, 

number three Las Vegas, and number five Phoenix/Mesa (see Figure 14). This growth has been 

good for the Airport, but as leisure markets move up the list, and an average fares come down 

due to the Allegiant influence, it has become increasingly difficult for Medford to argue that it 

can support additional network carrier seats. 

84,860

47,770

41,590

38,870

25,550

16,050

14,690

12,810

11,790

9,760

8,090

7,560

7,130

6,790

6,590

6,560

5,760

5,470

5,200

5,130

116.2

65.4

57.0

53.2

35.0

22.0

20.1

17.5

16.2

13.4

11.1

10.4

9.8

9.3

9.0

9.0

7.9

7.5

7.1

7.0

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 

Los Angeles (LAX)

Portland

Las Vegas

Seattle

Phoenix/Mesa

Denver

San Francisco

Phoenix (PHX)

San Diego

Chicago O'Hare

Dallas/Ft. Worth

Salt Lake City

Anchorage

Minneapolis/St. Paul

Boston

Spokane

Orlando

Orange County

Washington Dulles

Honolulu

Annual Passengers PDEW

FIGURE 14: Medford’s Top 20 O&D Passenger Markets

Source: US DOT Table DB1A, Year Ended First Quarter 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 28

Medford has seven current markets, as of the year ended first quarter 2010, with at least 20 

passengers per day each way (see Figure 14). Nine of Medford’s top 20 markets would be 

served through, or connect through, the Alaska/Horizon operation at San Jose. 

The fare disparity between Medford’s Allegiant markets and non-Allegiant markets is clear when 

the average fares to Medford’s top 20 O&D passenger markets are analyzed. The non-Allegiant 

average fare in Medford is $160 each way. The Allegiant average fare is $55 each way – a third 

of the network carrier average (see Figure 15). In the two markets Allegiant serves without 

competition – Las Vegas and Phoenix/Mesa – average fares are well below those found in 

markets where network connectivity is required for access. 

The Allegiant impact has been good for leisure travelers in the Rogue Valley and for the Airport, 

but it does not provide the network connectivity that is so important for business travelers. It has 

also depressed the average fare – taking into account all airlines – meaning network carriers 

worry their yields will be too low on new routes to and from Medford, when the non-Allegiant 

average fare would indicate otherwise. 

$100

$94

$76

$106

$53

$175

$183

$124

$174

$204

$243

$197

$207

$195

$187

$127

$197

$150

$229

$240

$0 $50 $100 $150 $200

Los Angeles (LAX)

Portland

Las Vegas

Seattle

Phoenix/Mesa

Denver

San Francisco

Phoenix (PHX)

San Diego

Chicago O'Hare

Dallas/Ft. Worth

Salt Lake City

Anchorage

Minneapolis/St. Paul

Boston

Spokane

Orlando

Orange County

Washington Dulles

Honolulu

Allegiant Market

FIGURE 15: Average Fares in Medford’s Top 20 O&D Passenger Markets

Source: US DOT Table DB1A, Year Ended First Quarter 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 29

Air Carrier Market Share in Medford 

Allegiant continues to carve out a profitable and growing niche in the Medford market. As of 

September of 2010, Allegiant will move up to the rank of the third largest carrier in Medford, in 

terms of available seats (see Figure 16). Over the past year, Horizon/Alaska has fallen from a 

strong number one in the market to number two, as it now sits behind United in terms of 

available seats.

While United and Horizon each have 

about 40% of the Medford market, in 

terms of available seats in September of 

2010, Delta has a 9% share, while 

Allegiant has an 11% share (see Figure 

16). Allegiant’s share will likely continue 

to grow. It is clear for Horizon to maintain 

a competitive market presence it will 

need to add service – and the Airport 

believes the best option for additional 

service is to a new destination: San Jose. 

 

Horizon 

39.46%

United 

39.64%

Delta 9.09%

Allegiant 

11.82%

FIGURE 16: Available Seat Share by Airline at Medford

Source: Airline Schedules, September 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 30

AIR SERVICE DEFICIENCIES IN MEDFORD 

The Medford – San Francisco route used to be a high frequency service, with flights every hour 

and a half in each direction. But in the two years since 2008, United has realigned how service 

flows through the San Francisco hub. This has been excellent for connecting passengers, as 

connecting banks are now optimized. However, for local passengers, the frequency loss has 

made traffic to the Bay Area more difficult. The result is that onboard passengers on the route 

have declined by 20% in the last two years (see Figure 17). 

Another factor in the passenger decline between Medford and San Francisco has been the 

declining number of available seats. Since the summer of 2008, the number of average daily 

seats between Medford and the Bay Area has declined by 13% (see Figure 17). This seat decline 

has come as the number of average daily departures has fallen from 9.1 in August of 2008 to 5.7 

in April of 2010 – a loss of 3.4 daily departures from Medford to San Francisco – or a decline of 

37%. 

302 305 309

269 270 275 275

227

247 253 256 254 254 247 244 240 237

203

221

201 198

209 201

217

232

260

246

206 207

245

211 220

270

286

268

243 238 245

210

195 189 189

152

169 168 168 172

194

179 184 178 172

145

167

135 141

158

145

163

192

205

194

166 162

178

161

151

181

212

197

0

50

100

150

200

250

300

350

Available SDEW Onboard PDEW Flights DEW

8.8 8.9 9.1

7.7 7.6 7.4 7.4

5.8

7.1

7.8 7.9 7.8 7.8 7.6 7.5

6.2 6.0

5.6 5.8 5.6 5.5 5.8 6.0 5.9 5.9 6.0 6.0

4.9 4.6 4.7 4.4 4.3

5.4

5.9 5.7

FIGURE 17: Average Daily Departures, Daily Available Seats, Daily Onboard Passengers

MFR‐SFO; Source: US DOT T100 Data, June 2008 – April 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 31

Moreover, despite service increases by Allegiant, Medford still ranks as one of the most 

underserved markets in the Pacific Northwest. As of the year ended first quarter 2010, Medford 

had just 2.11 available departing airline seats per capita of its Metropolitan Statistical Area (MSA) 

(see Figure 18). Medford had fewer available departing seats than Bend/Redmond, Portland, 

Spokane, and Seattle/Tacoma.

The Pacific Northwest average number 

of available departing airline seats per 

capita was 4.03 as of the year ended 

first quarter 2010 (see Figure 18). 

Medford’s available departing seats 

per capita was roughly half that 

average – meaning Medford is 

underserved when compared to its 

surrounding region. 

The same can be said about enplaned passengers per capita. Medford is ahead of 

Bend/Redmond on that list – meaning Medford fills a higher percentage of its available 

departing seats than Bend/Redmond – but it still lags behind all other major Northwest cities of 

as the year ended first quarter 2010 

(see Figure 19).

These indicators illustrate how the 

Rogue Valley International – Medford 

Airport is relatively underserved when 

compared to corollary cities in its own 

region. The challenge for the Airport in 

recruiting additional service is the 

statistical impression of fare decreases 

caused by specific leisure fares offered 

only by Allegiant. 

5.10

4.25

3.59

2.22

2.11

012345

SEA

GEG

PDX

RDM

MFR

Northwest Average: 4.03

FIGURE 18: Departing Seats Per Capita

Source: US DOT T100, US Census, YE1Q10

4.14

3.19

2.81

1.52

1.45

01234

SEA

GEG

PDX

MFR

RDM

Northwest Average: 3.19

FIGURE 19: Departing Passengers Per Capita

Source: US DOT T100, US Census, YE1Q10
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 32

EXTENUATING FACTORS AFFECTING AIR SERVICE 

A major extenuating factor making travel between Medford and the San Francisco Bay Area 

more difficult, and one of the main arguments for service to be split between at least two Bay 

Area airports, is the on-time performance of the service. The San Francisco International Airport 

is known across the west – especially in markets that have service on United to its SFO hub – as 

an Airport that has frequent weather delays. SFO is constrained by its frequent fog and its 

parallel runways that are too close to permit simultaneous approaches in low visibility. When fog 

sets in, SFO is constrained to half its normal arrival rate, which means airliners are held on the 

ground at their outstations – such as Medford. It is interesting to note that often, while SFO is 

shrouded in fog, San Jose is clear and accepting arrivals at its normal rate. 

While these weather delays are certainly not the fault of the airlines providing service into SFO, 

they do negatively impact the impression of the service reliability, and they make it more difficult 

for local passengers – traveling 

between Medford and the Bay 

Area, itself – to make their 

scheduled appointments on 

either end of the route. Frequent 

Bay Area – Medford travelers 

seek service to an alternate 

airport that they can use to avoid 

delays – especially on quick 

business day trips. 

The national average on-time performance for the twelve months ended June 2010, according 

to US Department of Transportation statistics, was 81.6% (see Figure 20). In the western region, 

SFO is ranked among the worst airports in terms of on-time performance, with just 69.8% of flights 

arriving within 15 minutes of their scheduled arrival. At the same time, San Jose posted on time 

performance almost 12 points higher, at 81.3%. It should also be noted, Medford’s on-time 

performance was well below the national average for the twelve months ended June 2010, at 

just 73.6%. Roughly 25% of all Medford departures and arrivals are to and from San Francisco, 

which appears to reduce Medford’s overall on-time performance. 

81.3%

80.9%

79.8%

79.7%

73.6%

69.8%

50% 55% 60% 65% 70% 75% 80% 85%

SJC

PDX

LAX

DEN

MFR

SFO Nat’l Average: 81.6%

FIGURE 20: Percentage of On‐Time Arrivals at Select Airports

Source: US DOT, Year Ended June 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 33

SkyWest provides the service, as United Express, between Medford and San Francisco. SkyWest, 

likely through no fault of its own – but due to the weather at San Francisco, has the worst on-time 

performance of the three carriers discussed in this proposal at SFO. As of the twelve months 

ended June 2010, 68.7% of SkyWest’s SFO flights arrived on time (see Figure 21). United, itself, 

posted better overall performance at SFO, with 77.2% of its flights arriving on time. 

Alaska/Horizon posted the best on-time performance at San Francisco International of the 

airlines discussed in this 

proposal, with 81.5% of its 

flights arriving within 15 

minutes of their scheduled 

arrival time. 

While on-time performance is 

just one of the factors travelers 

consider when choosing what airline to fly, and what airport to fly into, chronic delays have a 

negative impact on returning, frequent travelers. Frequent flyers in the Medford market would 

like to see another option to the Bay Area – especially during times of the year with typically bad 

weather. It is clear San Jose would offer a better on-time alternate for local travelers, allowing 

United to carry more connecting passengers through SFO, itself. 

 

81.5%

77.2%

68.7%

50% 55% 60% 65% 70% 75% 80% 85%

Alaska/Horizon

United Airlines

SkyWest Average at SFO: 69.8%

FIGURE 21: Percentage of On‐Time Arrivals at SFO

Source: US DOT, Year Ended June 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 34

AVAILABILITY OF ALTERNATE AIRPORTS 

The Rogue Valley International – Medford Airport catchment area includes the area defined by 

the US Census Bureau as the Medford Metropolitan Statistical Area (MSA), along with other 

regions where Medford is the nearest airport with commercial air service – including all areas of 

southern Oregon and northern California within a two hour drive of the airport (see Figure 22). 

There are no true alternate airports within three hours of Medford. 

 

FIGURE 22: Medford’s Location in Southern Oregon

Source: Sixel Consulting Group
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 35

USE OF LOCAL FEDERAL FUNDS 

Marketing and Advertising 

The Rogue Valley International – Medford Airport proposes to spend at least $50,000 in funds on 

marketing and advertising promotions in support of new service introductions. The goal is to 

increase ridership and usage of new service through targeted regional campaigns. 

Revenue Guarantee 

The Rogue Valley International – Medford Airport proposes to make available at least $500,000 in 

funds for a revenue guarantee to Horizon Air, to cover start-up losses that may occur during the 

first twelve months of service on the San Jose route. Subject to negotiation, payments will be 

made to Horizon quarterly when income derived from passengers and cargo is less than agreed 

expenses on the route. Revenue generated that exceeds expenses will be carried forward and 

tapped before any grant funds are used. 

Additional Costs 

As part of this program, the Rogue Valley International – Medford Airport understands that 

additional expenses will be incurred, such as monitoring the results of the program and reporting 

those results back to the US DOT. In addition, the Airport expects to incur some expenses in the 

recruitment of Horizon to fly the San Jose route. The Airport will use other sources of funding to 

pay for these efforts, ensuring the DOT funding goes to the revenue guarantee. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 36

PUBLIC/PRIVATE PARTNERSHIPS 

The City of Medford, Jackson County, and the Rogue Valley International – Medford Airport 

consistently work together on air service development projects. Other local partners will be 

working with the Airport to promote and market this proposed new service. The Airport will 

manage and coordinate the marketing program. 

Among the partners in this application are Horizon Air, which supports this effort for additional air 

service in Medford, Southern Oregon Regional Economic Development, and the 

Medford/Jackson County Chamber of Commerce. These partners will all play vital roles in 

ensuring new service is a success. 

The Airport’s partners are listed below, including their role in the effort to retain current air service 

and recruit additional air service. 

Horizon Air and the Alaska Air Group 

Horizon Air and the Alaska Air Group have been partners with the Rogue Valley International 

Airport since the early 1980s, when Horizon first served Medford. Today, Horizon is 4,000 

employees strong and serves more than 45 cities in Arizona, California, Colorado, Idaho, 

Montana, Nevada, Oregon, Washington, British Columbia, and Alberta. The company is 

recognized as one of the leading regional airlines in the country and holds the highest rank of all 

regional airlines in Condé Nast Traveler Magazine's Readers Choice Awards list. Horizon supports 

this application, as noted in its letter of support, and hopes to work with the Airport, the DOT, and 

the SCASD Grant program to launch additional service in Medford. 

Southern Oregon Regional Economic Development, Inc. 

Southern Oregon Regional Economic Development, Inc. (SOREDI) is the primary economic 

development agency for Jackson County and the rest of southern Oregon. Covering a wide 

geographic region, SOREDI assists local and relocating companies with a variety of business 

resources and services including business attraction and creation; business retention and 

expansion; site location, commercial property acquisition, and building permits; international 

trade and import and export issues. 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 37

Medford/Jackson County Chamber of Commerce 

The Medford/Jackson County Chamber of Commerce is a totally independent non-profit 

corporation (not affiliated with government or any other agency). It is uniquely able to serve the 

needs of its southern Oregon members. Over 1,500 small and large businesses collectively work 

together to achieve this goal by promoting the community, providing networking opportunities 

and representing business issues through lobbying and political action. 

The Chamber is the number one business resource citizens look to in the community. The area's 

economic well-being benefits from the work performed by The Chamber. The Chamber seeks 

to have a major impact on business, income and future growth of the Medford/Jackson County 

area. 

Medford Visitor Convention Bureau 

The Medford Visitor Convention Bureau works to promote the Rogue Valley throughout the 

country. The Bureau spends much time and money publicizing the region’s outdoor activities, 

unique festivals, exciting events and spectacular scenery. The Bureau works with the Airport to 

spur additional inbound travel to southern Oregon. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 38

IMPLEMENTATION TIMELINE 

The proposed implementation timeline for the project assumes the Department of Transportation 

will award Small Community Grant Funding in December 2010. Once the award is announced, 

the Rogue Valley International – Medford Airport will conduct an additional airline meeting to 

secure a new service that is mutually beneficial. Based on airline planning lead times and the 

need for advance bookings, we assume the new carrier would not be able to begin service until 

at least August of 2011. 

The first three milestones on the Airport's timeline are to execute the grant agreement with the 

Department of Transportation, meet with Horizon Air to negotiate for service, and sign the 

minimum revenue guarantee agreement with Horizon Air. Once service is announced and 

schedules are published, the Airport would begin marketing the new route and working with the 

new carrier to monitor advance bookings. The Airport will continue its marketing program and 

continue to work with the new carrier to monitor the route once service begins. The Airport 

would submit grant status reports on a quarterly basis to the Department throughout the 

proposed two year term of the minimum revenue guarantee. 

While the estimated dates are targets, it is possible service could be secured and launched on a 

more aggressive timeline once Grant funding is awarded. It is also possible that new service 

could slip to 2013 should an airline require additional risk mitigation, beyond that included in this 

proposal, from the community. 

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010

Executive Grant Agreement with DOT January 2011

Meet With Prospective Airlines February 2011

Negotiate Minimum Revenue Guarantee (MRG) With Airline March 2011

Announce Service May 2011

Publish Schedule May 2011

Begin Marketing of New Route June 2011

Monitor Advance Bookings May - August 2011

Service Launch August 2011

MRG Available for Service August 2011- March 2014

Monitor Route Performance August 2011 - March 2014

Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q1 2014

Close Grant April 2014
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 39

AIR SERVICE ADVISORY GROUPS 

The Rogue Valley International – Medford Airport has an airport advisory committee. 

Established on October 14, 1981, the Airport Advisory Committee was formed to serve as an 

advisory group for the purpose of advising the Board of County Commissioners on matters of 

public concern and to help formulate and recommend priorities for the capital improvement 

and further expansion of the Airport.

The Airport Advisory Committee expanded its recommendations to include Master Plan 

development, economic development, air service, and commercial and general aviation.

The committee membership includes a broad representation of the community. Membership 

positions include, to the extent possible, the following: an airline representative, a pilot, a tenant, 

a member at-large, a local corporate representative, a member to represent community 

leadership, a member to represent economic development, a member to represent fixed base 

operations, and a hangar owner. The Board of Commissioners reserves the right to vary 

membership positions.

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 40

LOCAL AIR SERVICE DEVELOPMENT EFFORTS 

For the last 15 years, the Rogue Valley International – Medford Airport has been very active in 

working to attract new air service, and ensure the new service is supported in the community. 

The Airport meets with a number of airlines each year, in one-on-one headquarter settings. In 

2010, the Airport has met with Frontier, SkyWest, and Allegiant. 

The Airport has had much success in bringing additional service to the Rogue Valley. Among 

the new routes recruited by the Airport is Delta’s service to Salt Lake City, Horizon’s service to Los 

Angeles, and Allegiant’s routes to Las Vegas, Los Angeles, and Phoenix/Mesa. The Airport also 

worked with America West on service to both Phoenix and Las Vegas before that Airline’s 

merger with US Airways. 

The Airport will continue to recruit new service where it makes sense. The Airport is focused on 

sustainable service opportunities. That is why it has never before applied for a Small Community 

Air Service Development Grant. But the reality now is that, for service to be expanded – even 

where there’s a strong business case – a revenue guarantee is required in a market of Medford’s 

size. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 41

IN-KIND SERVICES FROM COMMUNITY 

The following organizations will help promote the new service through their various membership 

groups. There is no estimated value to these services. 

 Southern Oregon Regional Economic Development, Inc. 

 Medford/Jackson County Chamber of Commerce 

 Medford Visitor Convention Bureau 

 City of Medford 

 Jackson County 

 Various local Medford media outlets 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 42

PERFORMANCE MEASURES 

The success of new service under this proposal will be based on three measurable variables: the 

increase in available seats in the market, the number of enplanements, and the average 

airfares charged in the affected city pairs. The first two measurements will include a monthly 

comparison once the program begins to past numbers. The second measurement will be 

derived from US DOT OD1A reports. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 43

LEGAL SPONSOR 

The Jackson County/Rogue Valley International – Medford Airport is the legal sponsor 

responsible for administering the program. The Jackson County/Rogue Valley International – 

Medford Airport is a government entity. 

Jackson County/Rogue Valley International – Medford Airport 

1000 Terminal Loop Parkway, Suite 201 

Medford, Oregon 97504 

Bern Case, AAE, Airport Director 

541.776.7222 

CaseBE@jacksoncounty.org 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 44

FINANCIAL CONTROLS 

As the sponsor, the Rogue Valley International – Medford Airport will be the responsible party for 

all fiscal matters and DOT reporting requirements. As a public entity the DOT can be assured 

that proper financial controls are in place to guarantee that the DOT’s grant will be used in 

accordance with any subsequent agreement. The Rogue Valley International – Medford Airport 

understands that the grant is a reimbursable grant, meaning the Airport is responsible for 

program expenditures and will submit invoices to the DOT for reimbursement, based on a 

percentage of the total grant request. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 45

RETURN ON INVESTMENT 

The Rogue Valley International – Medford Airport has developed a cost effective and 

achievable strategy to increase enplanements at the airport and to lower fares on network 

carrier service. The proposal uses proven methods of achieving air service improvements, 

allowing the DOT to be comfortable with choosing this proposal. The increased competition 

and access to increased competition with airfares by adding service is a major goal of the Small 

Community Air Service Development Program. 

Approximately $50,000 of the $550,000 in cash is committed to being spent. The remaining 

$500,000 in cash will be available for the revenue guarantee portion of the project. Should the 

revenue guarantee be unused, or unneeded for the new airline, funding may be used to widen 

the marketing and advertising program. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 46

DOT EXIT STRATEGY 

The Airport has developed this proposal as a one-time grant. The advertising and marketing 

program will commence a few months before service starts and last for at least twelve months. 

The revenue guarantee program will also be in place for twelve months, with two additional 

twelve-month periods available for negotiation. It is projected that the service on the route will 

be financially self-sustaining within the second twelve months of service. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 47

ALTERNATE PLAN 

If, for some unforeseen reason, service is not commenced in a timely manner by Horizon, the 

Rogue Valley International – Medford Airport proposes to use federal grant money awarded 

under the Small Community Air Service Development Program to help another carrier launch a 

currently unserved route. Among the options that would be considered are US Airways service 

to Phoenix, Horizon Air service to Las Vegas, American service to Dallas/Ft. Worth, and United 

service to Chicago O’Hare. 

Should these options, for an unforeseen reason, not be available for new service at the Rogue 

Valley International – Medford Airport, the Airport will continue its discussions with all other 

carriers than can provide additional seats to a hub not currently served. Since the community 

has never before received a Small Community Air Service Development Grant, it will have no 

limitations on which new hub the DOT could fund. 

 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 48

AIRPORT INFORMATION 

The Rogue Valley International – Medford Airport is a public airport located 3 miles (5 km) north 

of downtown Medford in Jackson County, Oregon, USA. In addition to Jackson County, the 

airport serves seven nearby counties in southwest Oregon. It is owned and operated by Jackson 

County's Aviation Authority. The Rogue Valley International – Medford Airport is the third busiest 

airport in Oregon. 

The Airport’s new 100,000 square foot terminal was built 

with the future of southern Oregon/northern California air 

service in mind. The new terminal hosts an observation 

deck on the second floor, as well as a restaurant for 

screened and unscreened passengers. Also, second-story 

loading bridges have been put in place for easier loading 

and unloading of passengers. Now that the new terminal is 

complete, there is a main concourse, and two open-air 

concourses. The terminal lobby houses five rental car 

agencies, a gift shop, a restaurant/lounge, and airline 

operations. Coincided with the construction of a new 

terminal, a new control tower was built as well. 

The new $3.6 million, 100 foot tall control tower was 

completed in late 2008. The Rogue Valley International – 

Medford Airport is equipped with two runways, available 

space in the air carrier terminal, and an excellent location 

with nearby highway access. 

The $35 million terminal was funded in such a way as to 

divert the cost from the air carriers serving the Medford market. The Airport’s main air carrier 

runway is Runway 14/32, which is 8,800 feet in length and 150 feet wide. The main runway 

features an ILS/DME approach. The Airport has a shorter, crosswind, secondary runway, 9/27, 

which is designed for general aviation operations. This runway is 3,136 feet long. 

FIGURE 23: Rogue Valley International Airport,

Source: Google Earth  
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 49

MEDFORD/ROGUE VALLEY COMMUNITY PROFILE 

Medford is the major economic and cultural capital of a 

huge swath of southern Oregon and northern California. 

Due to the City’s relative isolation – located about halfway 

between San Francisco and Portland – it has become the 

de-facto hub of influence for a huge area that’s home to 

more than 500,000 people. 

Due to the Rogue Valley’s mild climate, its attractive geographic position at the base of the 

Cascades and the Coast Range, and its lower cost of living than nearby Napa and Sonoma, 

Medford is increasingly becoming a retirement destination. 

Nearby Ashland – a suburb of Medford just south of the City – is a huge tourist destination, 

drawing 100,000 visitors each year for its famed Oregon Shakespeare Festival. Medford is also 

the gateway to Crater Lake National Park, as the closest commercially served airport – a Park 

that draws more than 500,000 annual visitors. 

Medford benefits from a diversified economy, which smoothes out highs and lows in the “boom 

and bust” cycle. The largest direct marketer of fruits and food gifts in the United States, Harry & 

David, is based in Medford. Musician's Friend, America's largest direct response retailer of 

musical instruments and related gear, is also headquartered in Medford. Medford and the 

surrounding area is home to the expanding Oregon wine industry that includes a large variety of 

Bordelaise, Rhone, and Burgundian varietals. 

Ashland is also home to Southern Oregon University, which is one of 

the State’s premier liberal arts institutions, enrolling roughly 5,000 

full-time students. Medford, itself is home to Rogue Community 

College, and 4,300 full-time students. 

As there are no towns of equal or larger size within several hours' 

drive, Medford is a regional hub for medical services. 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 50

Medford Economic Overview 

Medford’s economy is doing extremely well, despite the nationwide recession. Medford is one 

of the few national markets to post job growth in the last year, adding 1,100 full-time jobs. The 

Medford catchment area has seen some of the strongest job growth in the west in the last 

decade – adding 19.7% more jobs in the last nine years. 

The median family income in Medford is $57,100 in 2009 – holding steady from 2008. The median 

home price in Medford in 2009 is just $245,000 – 20% less than the national median price of 

$294,000. 

The Medford community is well educated, with almost 61% of those living in the catchment area 

having graduated from college. Medford ACA residents spend an average of $7,200 on 

vacation each year – about $1,200 above the national average spent on vacation. 

Employer* # of Employees 

Lithia Motors 3,500 

Asante Health Systems 3,000 

Harry & David 2,000 

Rogue Valley Medical Center 1,638 

Providence Health Systems 1,300 

Medford School District 914 

Boise Cascade 875 

Jackson County 874 

Southern Oregon University 600 

Amy’s Kitchen 450 

Rogue Valley Manor 450 

WalMart 450 

Cascade Wood Products 425 

Veterans Administration 418 

City of Medford 405 

Knife River Materials 400 

FIGURE 24: Top Employers in the Medford Area, bold font indicates corporate headquarters location.

Source: The Chamber of Medford/Jackson County, 2010
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 51

Big R Stores 350 

Rogue Community College 309 

CostCo 305 

Embarq Communications 275 

Oregon Shakespeare Festival 250 

Premier West Bank 204 

Seven Feathers Hotel and Casino 201 

Musicians Friend 180 

Associated Fruit Company 175 

Sierra Pine, Ltd. 158 

CDS Publications 150 

Select Company Profiles

  

Lithia Motors, Inc. 

Lithia Motors is an automotive dealership network headquartered 

in Medford, Oregon, primarily serving the western United States. It is 

the seventh largest automotive retailer in the United States, and ranks as number 615 on the 

Fortune 1000 list of the largest companies in the U.S. for 2007. They ranked fourth in their industry 

for America's Most Admired Companies in 2007. The corporate offices in Medford employ 330, 

while nearly 2,500 additional people are employed at local Lithia dealerships throughout the 

country. 

Until recently, Lithia Motors had its headquarters scattered around separate buildings in 

downtown Medford – but now construction has begun on centralizing the Lithia headquarters 

into a four-story building in downtown Medford. The project includes a Lithia office building, two 

city blocks of park space and a promenade, and a pedestrian thoroughfare through a Sixth 

Street city parking garage. Construction is expected to begin in late 2010.
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 52

Asante Health System and Rogue Valley Medical Center 

As the largest healthcare provider in nine counties, Asante 

provides comprehensive medical care to more than 580,000 

people throughout southern Oregon and northern California, 

through local facilities and additional healthcare partnerships throughout the region. Asante 

Health System is headquartered in Medford and is governed by local volunteers and physicians. 

The headquarters employs nearly 3,000 people and with facilities throughout the area, regional 

air travel is a necessity. 

Asante’s facilities include Rogue Valley Medical Center in Medford, which employs an 

additional 1,638 people. In May 2008, Rogue Valley Medical Center (RVMC) celebrated its 

fiftieth year serving the region. With 378 licensed beds, RVMC continues to uphold its national 

reputation for expertise in cardiology, stroke care, and other medical specialties. RVMC also 

offers advanced orthopedic care through the Joint Replacement Center and state-of-the-art 

oncology care at the Dubs Cancer Center. 

Harry & David 

Harry & David was 

founded in Medford 

and to this day is 

headquartered here as one of Southern Oregon's largest 

employer. The extensive 55 acre campus is comprised of 

numerous buildings, each housing some aspect of the 

vertically integrated operations which are the strength 

and tradition of Harry & David's companies. 

The most visible landmark is the 1937 art deco packing house, a local attraction prominently 

located along the main highway. The campus consists of administrative offices, an information 

technology building, packing houses, storage facilities, a candy kitchen and bakery complex, 

an employment and education center, customer service call center, marketing offices, an inhouse advertising agency and much more. Additionally there are 2,700 acres of orchards 

located around the Rogue Valley. Here, the normal workforce of about 2,000 swells to over 6,700 

at the peak of the holiday season, with as many as 100,000 calls received in a single day. 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 53

The company also operates a 500 seat seasonal call center in Eugene, Oregon, which is 

instrumental in handling the call volume during our busy holiday season. There is also a second 

campus in Hebron, Ohio, as well as more than 125 stores nationwide. 

Amy’s Kitchen 

Amy's Kitchen is a privately held corporation which began operation in 1987 in 

Medford, with the purpose of making healthy, organic, and easy-to-prepare 

frozen food. Owned and run by Andy and Rachel Berliner, Amy's Kitchen took 

its name from their then-newborn daughter. While the headquarters are now 

in Petaluma, CA, the company still operates one of its two processing plants in Medford (the 

other in Santa Rosa, CA). The company employs over 1,500 people; more than 450 of those in 

Medford. Nearly all U.S. mainstream supermarkets carry Amy's soups, sauces and/or frozen food. 

Tourism in the Medford Area 

Medford, southern Oregon's largest city, offers visitors an array of year around attractions, 

outdoor activities, unique festivals, exciting events and spectacular scenery. Located just 27 

miles north of the Oregon/California border, Medford is surrounded with historic wealth, cultural 

attractions, and rich agricultural land. Visitors are invited to explore mile after magnificent mile 

of this beautiful southern Oregon valley. 

Crater Lake National Park

Crater Lake is the major tourist draw for all of 

southern Oregon, bringing in more than a halfmillion visitors from around the world each year. 

It is located in Southern Oregon on the crest of 

the Cascade Mountain range, 100 miles (160 

km) east of the Pacific Ocean. Crater Lake is 86 

miles from the Rogue Valley International - 

Medford Airport – a drive of 2 hours and 20 

minutes. 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 54

It lies inside a caldera, or volcanic basin, created when the 12,000 foot (3,660 meter) high Mount 

Mazama collapsed 7,700 years ago following a large eruption, with no inlets or outlets to the 

lake. Crater Lake, at 1,943 feet (592 meters) deep, is the seventh deepest lake in the world and 

the deepest in the United States. 

Open year round, this national park offers something for 

every visitor. The endless options include watching the 

sunrise over the lake or spending a quiet evening by the 

fireplace at Crater Lake Lodge, gazing at the lake from 

more than 20 scenic overlooks during a breathtaking trip 

around Crater Lake on Rim Drive, exploring the park by 

hiking up mountain peaks, cruising through the volcano 

area on daily boat tours, or learning more about the area’s natural and cultural history on a 

guided walk. 

Oregon Shakespeare Festival 

Founded in 1935, the Tony Award-winning Oregon 

Shakespeare Festival (OSF) is among the oldest and 

largest professional non-profit theatres in the nation. 

Each year OSF presents an eight-and-a-half-month 

season of eleven plays in three theatres plus numerous 

ancillary activities, and undertakes an extensive theatre 

education program. Operating on a budget 

exceeding $26 million, OSF presents more than 780 

performances annually with attendance of approximately 400,000. 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 55

Wine Country 

Southern Oregon is quickly emerging as one of the premier wine 

regions of the country. Surrounded by Southern Oregon’s vast 

collection of mountains, rivers and green forests, the area boasts 

nearly sixty vineyards and cellars, most open to the public to 

draw in visitors to the area. The area also features a diverse 

array of fine restaurants with talented chefs who often prepare 

locally grown cuisine to pair with our award winning wines.

The rugged mountain valleys and diverse climates allow for a wide variety of intensely flavored 

wine grapes to be grown. The cooler areas of Southern Oregon produce wonderful Pinot Noir, 

Pinot Gris, Riesling, Sauvignon Blanc, Chardonnay, and Gewürztraminer while the warmer, more 

arid regions ripen big reds such as Cabernet Sauvignon, Cabernet Franc, Tempranillo, Merlot, 

Malbec, Dolcetto, Zinfandel, Grenache and Syrah; making Southern Oregon one of the most 

diverse winegrowing regions in the world. 

A visit to a winery in Southern Oregon can involve much more than just tasting wine. 

Located in beautiful valleys with stunning vistas, a family member or winemaker may 

be pouring wine in the tasting room, or be nearby to share stories and special wines 

with you. 

And for those for whom hops are more intriguing than grapes, the Southern Oregon 

Brewing Company provides a great addition to a wine tour of the region. 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 56

Higher Education 

Southern Oregon University 

SOU’s main campus is located in Ashland, Oregon, an ideal college town 

with its own rich heritage of culture and outdoor activities that 

complement life on campus. The school has an enrollment of 4,460 

students and faculty and staff that number 976. 

Situated in sunny Ashland, Southern Oregon University combines quality education with a 

spectacular location. Surrounded by rugged mountains, rivers, and lakes, the beautiful 175-acre 

campus is home to 5,500 students from around the world. SOU, a four-year university specializing 

in liberal arts, sciences, and select graduate and professional programs, offers 100 areas of 

study, including 37 majors in the schools of arts and letters, sciences, social sciences, and 

business. Southern specializes in individual attention 

offering small class sizes. 

The school's sports teams are called the Raiders with 

the Red Tailed Hawk as a mascot. They have twelve 

varsity teams and participate in the NAIA and in the 

Cascade Conference. SOU’s football team is an 

NAIA independent. It is the host to Patrick 

Voigtsberger, who not only is the youngest NCAA 

coach, but is the first to officially coach two 

colleges in the same conference. SOU's wrestling 

team competes in the NAIA West Regional and has 

won the National Wrestling Championship four 

times: in 1978, 1983, 1994, and 2001. SOU's teams 

compete in men's and women's cross country, women's soccer, volleyball, men's and women's 

basketball, men's and women's track and field, women's tennis, and softball. 
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 57

COMPARISON TO OTHER COMMUNITIES IN THE NORTHWEST 

FIGURE 25: Top 60 Northwest Region Airports Ranked by O&D Passengers

YE1Q10, Source: US DOT Table DB1A

Airport

1 Seattle/Tacoma, WA 2,612,600 2,931,710 2,309,960 2,039,350 22,410 -1.2% 39.2% 10,174,870 9,893,620 27,106 -2.8% 

2 Portland, OR 1,305,520 1,444,290 1,235,230 1,072,280 11,783 0.2% 20.6% 5,283,640 5,057,320 13,856 -4.3% 

3 Spokane, WA 345,070 378,370 347,570 315,500 3,467 0.1% 6.1% 1,501,430 1,386,510 3,799 -7.7% 

4 Anchorage, AK 403,590 534,140 329,960 297,730 3,272 2.1% 5.7% 1,733,860 1,565,420 4,289 -9.7% 

5 Boise, ID 312,380 335,070 310,490 280,170 3,079 -3.3% 5.4% 1,342,710 1,238,110 3,392 -7.8% 

6 Bellingham, WA 82,170 87,900 80,640 86,540 951 34.7% 1.7% 267,690 337,250 924 26.0% 

7 Bozeman, MT 69,110 103,590 63,710 80,680 887 1.1% 1.6% 321,360 317,090 869 -1.3% 

8 Fairbanks, AK 92,610 111,320 88,380 78,150 859 4.2% 1.5% 387,940 370,460 1,015 -4.5% 

9 Billings, MT 93,110 112,740 89,490 73,640 809 1.8% 1.4% 374,480 368,980 1,011 -1.5% 

10 Eugene, OR 74,120 84,910 77,790 68,190 749 11.6% 1.3% 291,150 305,010 836 4.8% 

11 Jackson, WY 46,750 116,400 33,880 64,300 707 0.0% 1.2% 270,250 261,330 716 -3.3% 

12 Pasco, WA 57,720 63,310 63,900 62,390 686 26.1% 1.2% 214,580 247,320 678 15.3% 

13 Medford, OR 67,190 74,760 65,780 57,620 633 12.4% 1.1% 252,480 265,350 727 5.1% 

14 Missoula, MT 64,690 85,010 61,060 52,970 582 6.6% 1.0% 258,910 263,730 723 1.9% 

15 Redmond, OR 46,740 55,430 50,020 46,160 507 4.0% 0.9% 201,770 198,350 543 -1.7% 

16 Juneau, AK 58,170 70,650 42,960 42,080 462 9.0% 0.8% 229,110 213,860 586 -6.7% 

17 Great Falls, MT 33,060 39,500 33,530 31,070 341 7.2% 0.6% 132,770 137,160 376 3.3% 

18 Kalispell, MT 36,240 53,350 30,810 30,320 333 1.3% 0.6% 168,490 150,720 413 -10.5% 

19 Idaho Falls, ID 31,900 35,720 31,230 27,930 307 -4.4% 0.5% 129,720 126,780 347 -2.3% 

20 Bethel, AK 32,200 34,280 36,010 27,560 303 11.8% 0.5% 131,250 130,050 356 -0.9% 

21 Helena, MT 19,670 25,360 22,260 17,840 196 17.7% 0.3% 77,530 85,130 233 9.8% 

22 Kenai, AK 18,420 24,510 18,960 17,780 195 -2.1% 0.3% 87,650 79,670 218 -9.1% 

23 Casper, WY 15,980 16,700 19,610 15,820 174 7.5% 0.3% 68,890 68,110 187 -1.1% 

24 Sun Valley, ID 9,080 14,980 8,250 15,470 170 5.3% 0.3% 55,380 47,780 131 -13.7% 

25 Ketchikan, AK 22,440 34,640 17,450 14,790 163 7.3% 0.3% 95,650 89,320 245 -6.6% 

26 Kodiak, AK 18,260 23,750 16,390 12,740 140 -2.0% 0.2% 74,270 71,140 195 -4.2% 

27 Yakima, WA 11,770 11,440 13,890 12,590 138 -10.8% 0.2% 57,140 49,690 136 -13.0% 

28 Lew iston, ID 14,450 14,070 14,380 12,210 134 -10.9% 0.2% 56,320 55,110 151 -2.1% 

29 Nome, AK 12,060 14,160 11,960 11,960 131 6.6% 0.2% 53,170 50,140 137 -5.7% 

30 Kotzebue, AK 11,800 14,000 14,160 11,900 131 12.1% 0.2% 56,370 51,860 142 -8.0% 

31 Sitka, AK 15,580 17,930 11,180 10,210 112 5.4% 0.2% 58,460 54,900 150 -6.1% 

32 Wenatchee, WA 11,130 11,510 11,400 9,770 107 -12.8% 0.2% 42,460 43,810 120 3.2% 

33 Barrow , AK 9,190 10,150 10,160 8,190 90 4.9% 0.2% 38,430 37,690 103 -1.9% 

34 Pullman/Moscow , WA 6,860 5,780 9,240 7,880 87 16.4% 0.2% 28,410 29,760 82 4.8% 

35 Prudhoe Bay/Deadhorse 7,910 8,140 6,100 7,340 81 1.0% 0.1% 81,330 29,490 81 -63.7% 

36 Homer, AK 8,930 12,170 7,760 7,180 79 -4.3% 0.1% 40,460 36,040 99 -10.9% 

37 Walla Walla, WA 7,550 7,180 8,370 6,390 70 -12.0% 0.1% 27,760 29,490 81 6.2% 

38 Gillette, WY 6,510 6,450 6,840 6,370 70 12.3% 0.1% 26,950 26,170 72 -2.9% 

39 Tw in Falls, ID 5,750 5,800 6,050 5,720 63 0.4% 0.1% 23,030 23,320 64 1.3% 

40 Seattle Boeing Field, WA 8,590 8,690 6,240 5,110 56 10.4% 0.1% 25,440 28,630 78 12.5% 

41 Dutch Harbor, AK 7,500 7,000 6,330 4,840 53 -5.5% 0.1% 25,870 25,670 70 -0.8% 

42 North Bend, OR 6,220 7,440 4,870 4,790 53 -3.0% 0.1% 32,720 23,320 64 -28.7% 

43 Butte, MT 6,030 6,500 5,290 4,770 52 8.2% 0.1% 24,330 22,590 62 -7.2% 

44 Rock Springs, WY 4,170 3,670 4,910 4,750 52 -2.3% 0.1% 24,090 17,500 48 -27.4% 

45 Klamath Falls, OR 4,910 5,610 5,660 4,740 52 -0.4% 0.1% 24,380 20,920 57 -14.2% 

46 Dillingham, AK 7,060 10,940 5,990 4,720 52 8.3% 0.1% 30,240 28,710 79 -5.1% 

47 Pocatello, ID 5,200 5,070 4,720 3,940 43 -9.6% 0.1% 20,910 18,930 52 -9.5% 

48 Cody, WY 7,260 8,770 5,220 3,530 39 -11.1% 0.1% 23,340 24,780 68 6.2% 

49 Riverton, WY 3,510 3,550 3,500 3,210 35 0.9% 0.1% 15,840 13,770 38 -13.1% 

50 Sheridan, WY 3,310 3,770 3,580 3,140 35 4.0% 0.1% 16,290 13,800 38 -15.3% 

51 King Salmon, AK 9,530 21,650 4,550 3,100 34 5.1% 0.1% 40,090 38,830 106 -3.1% 

52 Aniak, AK 3,450 4,160 3,800 2,970 33 0.7% 0.1% 15,890 14,380 39 -9.5% 

53 Cordova, AK 3,710 5,030 2,980 2,700 30 20.5% 0.1% 14,460 14,420 40 -0.3% 

54 Valdez, AK 3,630 4,530 2,900 2,690 30 -5.9% 0.1% 14,300 13,750 38 -3.8% 

55 Petersburg, AK 3,320 5,480 3,070 2,580 28 -1.5% 0.0% 15,760 14,450 40 -8.3% 

56 Emmonak, AK 2,110 2,280 2,440 2,240 25 31.8% 0.0% 7,490 9,070 25 21.1% 

57 Cheyenne, WY 2,800 2,680 2,530 2,210 24 -7.1% 0.0% 12,810 10,220 28 -20.2% 

58 Unalakleet, AK 2,290 2,990 2,580 2,200 24 22.9% 0.0% 10,540 10,060 28 -4.6% 

59 Galena, AK 1,670 1,590 1,810 2,200 24 41.0% 0.0% 7,220 7,270 20 0.7% 

60 Port Angeles, WA 4,870 3,360 2,480 1,990 22 -2.0% 0.0% 11,370 12,700 35 11.7% 

2 Q 09 3 Q 09 4 Q 09 1 Q 10

Regional Passengers 6,303,540 7,293,880 5,794,460 5,197,800 57,119 1.1% 100.0% 25,564,710 24,589,680 67,369 -3.8% 

1 Q 10 Mar-09 Mar-10 Mar-10 ?

2009-2010 PDEW Qtr/Qtr Share Total Paxs YE PDEW YE YE/YE

Rank 2 Q 09 3 Q 09 4 Q 09 1 Q 10 1 Q 10 ?
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 58

FIGURE 26: Top 60 Northwest Region Airports Ranked by O&D Revenue

YE1Q10, Source: US DOT Table DB1A

Airport

1 Seattle/Tacoma, WA $366,810 $450,900 $340,950 $313,040 $1,720 7.9% 38.2% $1,616,490 $1,471,700 $2,016 -9.0% 

2 Portland, OR $181,340 $220,830 $189,610 $163,420 $898 7.5% 19.9% $819,180 $755,200 $1,035 -7.8% 

3 Anchorage, AK $89,600 $125,950 $74,600 $67,790 $372 2.1% 8.3% $402,150 $357,940 $490 -11.0% 

4 Spokane, WA $45,030 $53,580 $46,370 $43,130 $237 4.8% 5.3% $208,620 $188,110 $258 -9.8% 

5 Boise, ID $39,480 $45,330 $43,030 $39,620 $218 7.3% 4.8% $183,160 $167,460 $229 -8.6% 

6 Fairbanks, AK $21,600 $27,480 $20,440 $17,280 $95 5.9% 2.1% $88,330 $86,800 $119 -1.7% 

7 Bozeman, MT $11,930 $18,600 $12,540 $15,320 $84 3.2% 1.9% $66,410 $58,390 $80 -12.1% 

8 Billings, MT $15,200 $18,030 $15,430 $12,410 $68 0.3% 1.5% $69,000 $61,070 $84 -11.5% 

9 Jackson, WY $8,160 $20,270 $7,410 $11,850 $65 4.2% 1.4% $58,010 $47,690 $65 -17.8% 

10 Pasco, WA $11,260 $12,030 $11,500 $10,840 $60 11.8% 1.3% $45,580 $45,630 $63 0.1% 

11 Eugene, OR $11,640 $13,840 $12,550 $10,730 $59 8.9% 1.3% $51,660 $48,760 $67 -5.6% 

12 Missoula, MT $11,590 $15,960 $11,440 $9,240 $51 2.8% 1.1% $51,720 $48,230 $66 -6.7% 

13 Bellingham, WA $8,000 $8,920 $8,680 $8,520 $47 33.8% 1.0% $31,650 $34,120 $47 7.8% 

14 Medford, OR $9,860 $11,470 $9,770 $8,490 $47 6.5% 1.0% $44,170 $39,590 $54 -10.4% 

15 Juneau, AK $10,740 $14,210 $7,580 $7,820 $43 7.1% 1.0% $44,960 $40,350 $55 -10.3% 

16 Great Falls, MT $6,420 $7,710 $6,690 $6,060 $33 3.9% 0.7% $29,590 $26,880 $37 -9.2% 

17 Redmond, OR $6,080 $7,700 $6,670 $6,050 $33 2.2% 0.7% $30,600 $26,500 $36 -13.4% 

18 Kalispell, MT $6,770 $10,870 $6,280 $5,800 $32 7.2% 0.7% $36,080 $29,720 $41 -17.6% 

19 Idaho Falls, ID $6,180 $7,050 $6,200 $5,720 $31 2.3% 0.7% $26,830 $25,150 $34 -6.3% 

20 Helena, MT $4,440 $5,390 $4,760 $3,870 $21 6.0% 0.5% $19,460 $18,460 $25 -5.1% 

21 Bethel, AK $3,740 $3,990 $4,030 $3,250 $18 12.8% 0.4% $14,860 $15,010 $21 1.0% 

22 Casper, WY $3,510 $3,400 $3,890 $3,110 $17 -7.7% 0.4% $17,950 $13,910 $19 -22.5% 

23 Ketchikan, AK $4,740 $7,430 $3,530 $3,040 $17 10.9% 0.4% $20,850 $18,740 $26 -10.1% 

24 Sun Valley, ID $1,370 $3,120 $1,480 $2,610 $14 -7.4% 0.3% $11,540 $8,580 $12 -25.6% 

25 Prudhoe Bay/Deadhorse $2,850 $2,870 $2,070 $2,560 $14 -0.8% 0.3% $20,100 $10,350 $14 -48.5% 

26 Dutch Harbor, AK $3,360 $3,430 $3,010 $2,510 $14 8.2% 0.3% $12,580 $12,310 $17 -2.1% 

27 Kodiak, AK $3,420 $4,870 $2,970 $2,410 $13 4.3% 0.3% $14,350 $13,670 $19 -4.7% 

28 Lew iston, ID $2,420 $2,370 $2,490 $2,040 $11 -5.6% 0.2% $9,600 $9,320 $13 -2.9% 

29 Yakima, WA $1,960 $2,050 $2,170 $1,990 $11 -4.3% 0.2% $10,180 $8,170 $11 -19.7% 

30 Nome, AK $2,020 $2,670 $1,850 $1,940 $11 7.8% 0.2% $8,730 $8,480 $12 -2.9% 

31 Sitka, AK $3,050 $3,980 $1,920 $1,860 $10 6.3% 0.2% $12,030 $10,810 $15 -10.1% 

32 Barrow , AK $1,960 $2,060 $2,050 $1,700 $9 7.6% 0.2% $8,410 $7,770 $11 -7.6% 

33 Kotzebue, AK $1,700 $2,160 $1,980 $1,560 $9 4.7% 0.2% $7,800 $7,400 $10 -5.1% 

34 Wenatchee, WA $1,600 $1,820 $1,610 $1,370 $8 -14.9% 0.2% $6,790 $6,400 $9 -5.7% 

35 Butte, MT $1,540 $1,630 $1,380 $1,360 $7 13.3% 0.2% $6,830 $5,910 $8 -13.5% 

36 Kenai, AK $1,550 $2,200 $1,480 $1,330 $7 8.1% 0.2% $6,930 $6,560 $9 -5.3% 

37 Gillette, WY $1,430 $1,400 $1,370 $1,220 $7 4.3% 0.1% $6,550 $5,420 $7 -17.3% 

38 Pullman/Moscow , WA $940 $820 $1,310 $1,060 $6 14.0% 0.1% $4,130 $4,130 $6 0.0% 

39 Rock Springs, WY $860 $770 $1,030 $920 $5 -16.4% 0.1% $5,870 $3,580 $5 -39.0% 

40 Walla Walla, WA $1,090 $1,050 $1,220 $900 $5 -7.2% 0.1% $4,530 $4,260 $6 -6.0% 

41 North Bend, OR $950 $1,100 $680 $740 $4 -7.5% 0.1% $5,770 $3,470 $5 -39.9% 

42 Klamath Falls, OR $760 $840 $770 $720 $4 -10.0% 0.1% $4,390 $3,090 $4 -29.6% 

43 Tw in Falls, ID $660 $810 $740 $710 $4 10.9% 0.1% $3,060 $2,920 $4 -4.6% 

44 Riverton, WY $720 $740 $730 $660 $4 10.0% 0.1% $3,480 $2,850 $4 -18.1% 

45 Homer, AK $700 $1,120 $650 $620 $3 8.8% 0.1% $3,520 $3,090 $4 -12.2% 

46 Sheridan, WY $630 $810 $780 $580 $3 -1.7% 0.1% $3,590 $2,800 $4 -22.0% 

47 Dillingham, AK $1,180 $1,950 $760 $560 $3 3.7% 0.1% $4,770 $4,450 $6 -6.7% 

48 Cody, WY $1,400 $1,790 $820 $500 $3 -42.5% 0.1% $5,720 $4,510 $6 -21.2% 

49 Pocatello, ID $610 $690 $550 $490 $3 -5.8% 0.1% $3,310 $2,340 $3 -29.3% 

50 Cordova, AK $630 $1,190 $500 $460 $3 17.9% 0.1% $2,690 $2,780 $4 3.3% 

51 Petersburg, AK $680 $1,260 $540 $420 $2 -10.6% 0.1% $3,210 $2,900 $4 -9.7% 

52 Valdez, AK $500 $710 $420 $410 $2 5.1% 0.0% $2,120 $2,040 $3 -3.8% 

53 Laramie, WY $340 $360 $340 $370 $2 27.6% 0.0% $1,620 $1,410 $2 -13.0% 

54 Cheyenne, WY $520 $560 $500 $370 $2 -22.9% 0.0% $2,720 $1,950 $3 -28.3% 

55 King Salmon, AK $1,530 $3,790 $550 $350 $2 12.9% 0.0% $6,380 $6,220 $9 -2.5% 

56 Saint Paul Island, AK $280 $160 $200 $320 $2 10.3% 0.0% $980 $960 $1 -2.0% 

57 Wrangell, AK $520 $690 $380 $310 $2 0.0% 0.0% $1,790 $1,900 $3 6.1% 

58 Seattle Boeing Field, WA $470 $490 $370 $310 $2 14.8% 0.0% $1,330 $1,640 $2 23.3% 

59 Aniak, AK $280 $400 $320 $260 $1 4.0% 0.0% $1,350 $1,260 $2 -6.7% 

60 Adak Island, AK $290 $280 $200 $260 $1 62.5% 0.0% $1,020 $1,030 $1 1.0% 

2 Q 09 3 Q 09 4 Q 09 1 Q 10

Regional Revenue $937,790 $1,179,350 $902,380 $820,320 $4,507 6.5% 100.0% $4,226,900 $3,839,840 $5,260 -9.2% 

2009-2010 RDEW Qtr/Qtr Share RDEW YE/YE

2 Q 09 3 Q 09 4 Q 09 1 Q 10 1 Q 10 ? 1 Q 10 Mar-09 Mar-10 Mar-10 ?

Year Ended

Rank

FIGURE 26: Top 60 Northwest Region Airports Ranked by Average Yield

YE1Q10, Source: US DOT Table DB1A

Airport

1 Port Angeles, WA 67.39¢ 67.39¢ 67.39¢ 67.39¢ 0.0% 0.00¢ 67.39¢ 67.39¢ 0.0% 0.00¢ 

2 Seattle Boeing Field, WA 63.27¢ 62.76¢ 61.85¢ 60.94¢ -1.2% -0.73¢ 64.59¢ 62.34¢ -3.5% -2.25¢ 

3 Prudhoe Bay/Deadhorse, AK 51.53¢ 48.99¢ 53.05¢ 52.03¢ 2.9% 1.49¢ 37.78¢ 51.22¢ 35.6% 13.44¢ 

4 Emmonak, AK 40.74¢ 39.71¢ 47.12¢ 43.93¢ 9.7% 3.90¢ 41.11¢ 42.68¢ 3.8% 1.57¢ 

5 Galena, AK 41.76¢ 41.81¢ 42.29¢ 42.61¢ 2.4% 1.02¢ 41.22¢ 42.14¢ 2.2% 0.92¢ 

6 Aniak, AK 39.90¢ 33.95¢ 40.04¢ 39.37¢ -0.9% -0.34¢ 38.55¢ 37.74¢ -2.1% -0.81¢ 

7 Bethel, AK 31.40¢ 33.58¢ 34.40¢ 37.45¢ 8.7% 3.00¢ 33.15¢ 33.97¢ 2.5% 0.82¢ 

8 Unalakleet, AK 35.02¢ 32.56¢ 33.28¢ 35.92¢ 0.1% 0.02¢ 35.26¢ 33.98¢ -3.6% -1.28¢ 

9 Kotzebue, AK 29.30¢ 33.65¢ 33.94¢ 34.88¢ 0.1% 0.03¢ 33.45¢ 32.86¢ -1.8% -0.59¢ 

10 Homer, AK 30.02¢ 31.75¢ 32.57¢ 33.48¢ -10.1% -3.75¢ 31.67¢ 31.85¢ 0.6% 0.18¢ 

11 Barrow , AK 27.89¢ 29.45¢ 27.40¢ 31.65¢ 0.1% 0.03¢ 30.35¢ 28.96¢ -4.6% -1.39¢ 

12 King Salmon, AK 23.88¢ 29.94¢ 33.75¢ 31.52¢ -18.0% -6.90¢ 29.03¢ 28.42¢ -2.1% -0.61¢ 

13 Dillingham, AK 24.97¢ 27.73¢ 31.91¢ 31.49¢ 2.5% 0.78¢ 27.14¢ 27.80¢ 2.4% 0.66¢ 

14 Kenai, AK 27.60¢ 27.62¢ 30.17¢ 30.92¢ -14.0% -5.02¢ 30.70¢ 28.79¢ -6.2% -1.91¢ 

15 Dutch Harbor, AK 28.06¢ 30.06¢ 28.00¢ 30.86¢ 7.6% 2.17¢ 29.11¢ 29.16¢ 0.2% 0.05¢ 

16 Nome, AK 26.61¢ 30.28¢ 29.75¢ 30.71¢ 4.8% 1.41¢ 28.61¢ 29.31¢ 2.4% 0.70¢ 

17 Valdez, AK 32.65¢ 29.38¢ 30.36¢ 29.95¢ -11.3% -3.82¢ 30.93¢ 30.46¢ -1.5% -0.47¢ 

18 Ketchikan, AK 24.20¢ 23.63¢ 24.45¢ 28.70¢ 9.0% 2.38¢ 24.18¢ 24.66¢ 2.0% 0.48¢ 

19 Cheyenne, WY 28.53¢ 27.52¢ 26.80¢ 27.64¢ -6.9% -2.05¢ 29.97¢ 27.63¢ -7.8% -2.34¢ 

20 Sitka, AK 22.77¢ 23.10¢ 22.34¢ 26.61¢ 3.1% 0.81¢ 23.38¢ 23.45¢ 0.3% 0.07¢ 

21 Riverton, WY 21.96¢ 24.76¢ 23.84¢ 24.99¢ 2.3% 0.56¢ 25.39¢ 23.82¢ -6.2% -1.57¢ 

22 Sheridan, WY 21.95¢ 21.89¢ 22.37¢ 23.88¢ -4.0% -0.99¢ 24.36¢ 22.43¢ -7.9% -1.93¢ 

23 Kodiak, AK 22.23¢ 22.92¢ 22.04¢ 23.68¢ -5.0% -1.25¢ 22.79¢ 22.69¢ -0.4% -0.10¢ 

24 Juneau, AK 20.56¢ 20.87¢ 19.38¢ 23.57¢ 4.1% 0.94¢ 21.11¢ 20.96¢ -0.7% -0.15¢ 

25 Cordova, AK 21.56¢ 20.75¢ 21.25¢ 22.95¢ 7.3% 1.56¢ 21.45¢ 21.47¢ 0.1% 0.02¢ 

26 Petersburg, AK 23.07¢ 20.87¢ 22.32¢ 22.92¢ -11.6% -3.01¢ 23.37¢ 22.17¢ -5.1% -1.20¢ 

27 Butte, MT 19.08¢ 19.85¢ 21.14¢ 22.76¢ 9.1% 1.89¢ 22.63¢ 20.58¢ -9.1% -2.05¢ 

28 Idaho Falls, ID 18.06¢ 18.71¢ 19.54¢ 20.44¢ 5.1% 1.00¢ 20.48¢ 19.11¢ -6.7% -1.37¢ 

29 Rock Springs, WY 21.10¢ 21.06¢ 20.40¢ 19.92¢ -12.9% -2.94¢ 25.84¢ 20.59¢ -20.3% -5.25¢ 

30 Casper, WY 21.74¢ 20.19¢ 19.53¢ 19.12¢ -16.0% -3.63¢ 25.45¢ 20.12¢ -20.9% -5.33¢ 

31 Fairbanks, AK 17.09¢ 17.66¢ 17.83¢ 18.70¢ 4.0% 0.73¢ 17.22¢ 17.76¢ 3.1% 0.54¢ 

32 Helena, MT 19.38¢ 18.05¢ 18.39¢ 18.54¢ -13.1% -2.80¢ 21.01¢ 18.55¢ -11.7% -2.46¢ 

33 Pullman/Moscow , WA 16.72¢ 17.89¢ 17.97¢ 18.16¢ 1.6% 0.29¢ 19.76¢ 17.70¢ -10.4% -2.06¢ 

34 Sun Valley, ID 15.77¢ 20.03¢ 17.65¢ 18.01¢ -7.1% -1.39¢ 21.28¢ 18.19¢ -14.5% -3.09¢ 

35 Gillette, WY 21.06¢ 20.94¢ 19.17¢ 17.86¢ -12.9% -2.64¢ 24.29¢ 19.75¢ -18.7% -4.54¢ 

36 Lew iston, ID 15.42¢ 15.81¢ 17.39¢ 17.35¢ 8.7% 1.39¢ 17.94¢ 16.43¢ -8.4% -1.51¢ 

37 Great Falls, MT 16.67¢ 16.97¢ 17.42¢ 16.80¢ -5.5% -0.98¢ 18.91¢ 16.97¢ -10.3% -1.94¢ 

38 Kalispell, MT 13.51¢ 16.45¢ 16.99¢ 16.18¢ 25.5% 3.28¢ 16.61¢ 15.72¢ -5.4% -0.89¢ 

39 Yakima, WA 15.91¢ 16.54¢ 14.93¢ 15.90¢ -3.7% -0.61¢ 17.40¢ 15.79¢ -9.3% -1.61¢ 

40 Boise, ID 13.65¢ 14.58¢ 15.30¢ 15.68¢ 9.8% 1.40¢ 15.41¢ 14.77¢ -4.2% -0.64¢ 

41 Wenatchee, WA 15.06¢ 16.68¢ 14.80¢ 15.65¢ -6.9% -1.17¢ 18.78¢ 15.57¢ -17.1% -3.21¢ 

42 Bozeman, MT 14.51¢ 14.68¢ 16.90¢ 15.59¢ 0.8% 0.13¢ 17.16¢ 15.31¢ -10.8% -1.85¢ 

43 Walla Walla, WA 15.91¢ 17.33¢ 14.87¢ 15.50¢ -8.6% -1.45¢ 19.64¢ 15.86¢ -19.2% -3.78¢ 

44 Anchorage, AK 13.50¢ 13.61¢ 14.81¢ 15.46¢ 0.6% 0.09¢ 14.47¢ 14.14¢ -2.3% -0.33¢ 

45 Missoula, MT 15.64¢ 16.02¢ 16.28¢ 15.32¢ -3.2% -0.51¢ 17.21¢ 15.85¢ -7.9% -1.36¢ 

46 Billings, MT 14.57¢ 13.94¢ 15.50¢ 15.28¢ -1.0% -0.15¢ 16.49¢ 14.74¢ -10.6% -1.75¢ 

47 Pasco, WA 15.56¢ 15.23¢ 14.78¢ 14.59¢ -12.7% -2.12¢ 17.63¢ 15.03¢ -14.7% -2.60¢ 

48 Jackson, WY 13.81¢ 13.87¢ 17.41¢ 14.37¢ 8.0% 1.07¢ 16.58¢ 14.44¢ -12.9% -2.14¢ 

49 Medford, OR 13.12¢ 13.56¢ 13.13¢ 13.56¢ -5.2% -0.75¢ 15.78¢ 13.34¢ -15.5% -2.44¢ 

50 Eugene, OR 12.67¢ 13.06¢ 13.46¢ 13.52¢ -1.4% -0.19¢ 14.64¢ 13.16¢ -10.1% -1.48¢ 

51 Cody, WY 15.40¢ 16.11¢ 13.88¢ 13.42¢ -31.7% -6.22¢ 20.66¢ 15.14¢ -26.7% -5.52¢ 

52 Spokane, WA 12.68¢ 13.30¢ 13.30¢ 13.36¢ 0.8% 0.10¢ 14.00¢ 13.15¢ -6.1% -0.85¢ 

53 Redmond, OR 12.32¢ 13.07¢ 12.86¢ 12.68¢ -3.7% -0.48¢ 15.19¢ 12.75¢ -16.1% -2.44¢ 

54 Pocatello, ID 11.36¢ 13.29¢ 11.45¢ 12.57¢ 4.1% 0.50¢ 14.79¢ 12.17¢ -17.7% -2.62¢ 

55 Tw in Falls, ID 11.03¢ 13.05¢ 11.18¢ 12.26¢ 16.3% 1.72¢ 12.47¢ 11.88¢ -4.7% -0.59¢ 

56 Portland, OR 10.81¢ 11.55¢ 12.05¢ 12.18¢ 5.5% 0.64¢ 12.36¢ 11.61¢ -6.1% -0.75¢ 

57 Seattle/Tacoma, WA 10.09¢ 10.91¢ 10.74¢ 11.24¢ 7.1% 0.74¢ 11.73¢ 10.72¢ -8.6% -1.01¢ 

58 North Bend, OR 11.40¢ 11.17¢ 11.58¢ 11.16¢ -11.5% -1.45¢ 17.63¢ 11.33¢ -35.7% -6.30¢ 

59 Klamath Falls, OR 10.97¢ 10.08¢ 10.64¢ 11.02¢ -14.8% -1.91¢ 16.50¢ 10.66¢ -35.4% -5.84¢ 

60 Bellingham, WA 9.87¢ 10.26¢ 10.63¢ 9.62¢ -4.3% -0.43¢ 12.16¢ 10.09¢ -17.0% -2.07¢ 

2 Q 09 3 Q 09 4 Q 09 1 Q 10 $11.81 $12.57 $12.67 $13.04

Average Regional Yield 11.81¢ 12.57¢ 12.67¢ 13.04¢ 4.0% 0.50¢ 12.57¢ 12.67¢ 0.8% 0.10¢ 

2009-2010 Qtr/Qtr Qtr/Qtr Year Ended YE/YE YE/YE

2 Q 09 3 Q 09 4 Q 09 1 Q 10 % ? Yld ? Mar-09 Mar-10 % ? Yld ? Rank
Rogue Valley International – Medford Airport – Small Community Air Service Development Grant – August 2010 59

CONCLUSIONS 

The Rogue Valley International – Medford Airport has been a growth market for several airlines 

for much of the last decade. Only in the last three years has it seen its flights and seats cut. But 

those cuts have been deep – especially for network carriers. For example, from September 2009 

to September 2010, Horizon will have cut its available seats in the Medford market by 25% - a loss 

of 146 departing seats per day. 

Medford ranks as one of the most underserved markets in the Pacific Northwest. As of the year 

ended first quarter 2010, Medford had just 2.11 available departing airline seats per capita of its 

Metropolitan Statistical Area (MSA). The Pacific 

Northwest average number of available departing 

airline seats per capita was 4.03 as of the year ended 

first quarter 2010. Medford’s available departing 

seats per capita was roughly half that average.

Medford has an airline partner for this proposal. 

Horizon Air has submitted its letter of support, working 

alongside the Airport to increase service. But with any service increase, there is risk of diluting 

yields and losing money. Airlines are unwilling to take that risk alone in markets such as Medford. 

The only real chance at fare relief in many of Medford’s largest markets is for an additional 

airline to offer competing service. Horizon’s low fare service would go a long way towards 

providing enough competition to bring fares in-line with those found in other western markets. 

It must be noted once again that the Rogue Valley International – Medford Airport has recruited 

seven new routes in the last 15 years without ever asking the DOT for a Small Community Air 

Service Development Grant. Times have changed, and Medford now seeks the same kind of 

support that has been afforded to other Northwest cities such as Idaho Falls, North Bend/Coos 

Bay, Kalispell, and Helena. The Airport will be an excellent steward of SCASD Grant funding, as it 

works to enhance air service throughout southern Oregon. 

“Medford ranks as one of the most 

underserved markets in the Pacific 

Northwest... [with] just 2.11 

available departing airline seats 

per capita.”