Dun & Bradstreet DUNS Number: 15-6130148 

Tax Identification Number: 81-0347136 

Two Digit Congressional District Code: None (at Large Representation)

Great Falls International Airport Authority

Great Falls, Montana

Proposal under the Small Community Air Service Development Program

Docket DOT-OST-2011-0119
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

2

TABLE OF CONTENTS

INTRODUCTORY LETTER .................................................................................................................... 4

EXECUTIVE SUMMARY ........................................................................................................................ 5

AIR SERVICE OVERVIEW..................................................................................................................... 7

Catchment Area and Population ............................................................................................................................ 7

Alternate Airports ................................................................................................................................................... 8

Great Falls' Existing Air Service............................................................................................................................. 9

Air Service Development Efforts ..........................................................................................................................11

AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES............................................................. 12

Capacity Trends ...................................................................................................................................................12

Fewer Delta Seats per Departure ........................................................................................................................14

Fewer Delta Departures per Day .........................................................................................................................15

Combined Delta Seats per Departure and Departures per Day ..........................................................................16

Traffic Trends .......................................................................................................................................................17

Leakage to Other Airports in the Region..............................................................................................................19

Domestic Fare Trends..........................................................................................................................................21

High Fares Relative to Other U.S. Lower 48 Airports ..........................................................................................22

STRATEGIC PLAN .............................................................................................................................. 23

Proposed New Route ...........................................................................................................................................23

Goals ....................................................................................................................................................................23

Target Airline Support ..........................................................................................................................................23

Great Falls-San Francisco Bay Area Traffic and Fare Trends.............................................................................24

Connecting Traffic and Revenue Via San Francisco ...........................................................................................28

Grant Amendments/Alternate Strategies .............................................................................................................31

PROJECT IMPLEMENTATION, MONITORING AND FUNDING.......................................................... 32

Public / Private Partnerships ................................................................................................................................32

Project Funding ....................................................................................................................................................33

Implementation Timeline......................................................................................................................................34

Start-Up Period and Sustainability of the Market.................................................................................................34

PROJECT MONITORING AND FINANCIAL CONTROL...................................................................... 35

Success Metrics ...................................................................................................................................................35

Legal Sponsor......................................................................................................................................................36

Financial Controls ................................................................................................................................................36
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

3

APPENDIX A: REQUIRED SUMMARY INFORMATION ..................................................................... 37

A. Applicant Information....................................................................................................................................37

B. Public/Private Partnerships ..........................................................................................................................37

C. Project Proposal ...........................................................................................................................................37

D. Existing Landing Aids at Local Airport ..........................................................................................................38

E. Project Cost ..................................................................................................................................................38

F. In-Kind Contributions** .................................................................................................................................38

G. Is this application subject to review by state under Executive Order 12372 Process? ................................38

H. Is this applicant delinquent on any federal debt? .........................................................................................39
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

4

INTRODUCTORY LETTER
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

5

EXECUTIVE SUMMARY

Great Falls International Airport is proposing a Small Community Air Service Development Grant in the amount of 

$500,000 to supplement Airport and community-matching cash and in-kind contributions of $180,918 to provide a 

minimum revenue guarantee for regional jet service between Great Falls and San Francisco on United Airlines or 

SkyWest. 

Great Falls has no nonstop 

service to any destination in 

California, and service to San 

Francisco would connect Great 

Falls travelers with the Great 

Falls' eighth largest market 

when ranked by market size. 

The combined Great Falls 

market size of airports in the 

San Francisco Bay Area stood 

at 8.7 PDEW at an average 

fare of $186 in each direction

in 2010. In addition to the local 

market, Great Falls-San 

Francisco service could 

provide connections to at least 

29 other markets United and United's Star Alliance partners serve from San Francisco including other destinations 

in California, Hawaii, and international destinations in Asia.

Airport officials met with United in June 2011 at United's headquarters in Chicago to discuss the viability of service 

from Great Falls to San Francisco. While United could not commit to beginning service if the community were to 

win a SCASD award, airport officials were told a minimum revenue guarantee would reduce United's risk and 

could cause the Great Falls-San Francisco opportunity to rank higher among all opportunities in United's network 

in general and among San Francisco opportunities in particular. United affirmed service to its hub in San 

Francisco is much more likely than service to its hub in Chicago.

Great Falls lost a significant amount of the capacity Delta and Northwest operated prior to the Delta and 

Northwest bankruptcies in 2005 and the subsequent merger of Delta and Northwest in 2008. Not only has Delta 

down-gauged aircraft size, but Delta is also operating fewer flights than Delta and Northwest previously operated. 

In fact, Delta's capacity was down 67.8% in 2010 to 232 seats per day each way versus the 720 seats per day 
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

6

each way operated in 2004. Alaska's capacity was up slightly in 2010 versus 2005. United's entry in the Great 

Falls-Denver market in 2005 dampened the impact of Delta's reductions, but Great Falls' domestic ex-Allegiant 

traffic is down 27.3% from its 2005 level. 

As ex-Allegiant capacity has trended down since 2005, fares have trended up, and the average ex-Allegiant oneway domestic fare was $241 in 2010. At $241, the average Great Falls domestic fare ranked as the seventh

highest domestic fare among all airports in the lower 48 United States with at least 100,000 domestic origin and 

destination ex-Allegiant passengers in 2010. 

Allegiant entered the Great Falls-Las Vegas market in 2007 and the Great Falls-Phoenix market in 2009, but 

Allegiant's point-to-point service in these markets benefits only leisure travelers and does not provide connections 

to markets beyond Las Vegas and Phoenix/Mesa.

Great Falls is a relatively isolated market; however, high fares and limited service drive traffic to other airports in 

the region. Based on a leakage study of travel originating in the immediate Great Falls catchment area in 2010, 

Great Falls International Airport retains just 51.4% of traffic. Nearly 30.6% of traffic leaks to Missoula and 7.0% 

leaks to Billings, where Frontier service enables Billings to enjoy the lowest average domestic ex-Allegiant fare in 

Montana.
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

7

AIR SERVICE OVERVIEW

Catchment Area and Population

More than 82,000 residents live within a one hour drive of Great Falls International Airport, and nearly 154,000 

residents live within a two hour drive of the airport. 

The size of Montana and the relative isolation of Great Falls creates a relatively large catchment area, especially 

to the north and northeast of Great Falls. Great Falls is the closest U.S. airport with commercial service to many 

locations in southern Alberta, and relatively high taxes and fee structures on Canadian airline tickets makes Great 

Falls International Airport an attractive alternative airport for many travelers in Alberta when traveling to U.S. and 

even some Mexican destinations. Allegiant's service in Great Falls is especially appealing to Canadian travelers, 

and the airport estimates as much as 50% of Allegiant's Great Falls traffic is Canadian traffic, especially residents 

of the Lethbridge area. 

Exhibit 1: One, Two and Three Hour Drive Times from Great Falls International Airport
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

8

Alternate Airports

No other airport is located within a one hour drive of the Great Falls, and only Helena, at a distance of 87 miles, is 

located within a two hour drive. Bozeman is a 176-mile drive from Great Falls at an estimated drive time of two 

hours and 45 minutes. Missoula, which captures nearly 31% of the traffic generated in the Great Falls catchment 

area is a three hour drive from Great Falls.

Exhibit 2: Location of Great Falls International Airport, One, Two and Three Hour Drive Times from Great Falls International 

Airport and the Locations of Other Airports in Montana.
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

9

Great Falls' Existing Air Service

Great Falls is served by three network carriers, Delta, United and Alaska. Delta serves its hubs in Salt Lake City 

and Minneapolis/St. Paul, United serves its hub at Denver, and Alaska operates service from Great Falls to 

Seattle (with some flights operating to Seattle on single-plane service via Helena). Allegiant also serves Great 

Falls with less-than-daily service to both Las Vegas and Phoenix/Mesa.

Exhibit 3: Current Routes Operated from Great Falls International Airport
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

10

The number of departures per day, average seats per departure and seats per day by market and by carrier are 

displayed in the table in Exhibit 4. Based on August 2011 data, Delta provides the most capacity at Great Falls 

International airport, with an average of 260 seats per day each way, or 34.6% of the airport's total capacity. 

Alaska is the second largest carrier at Great Falls with 29.6% of the airport's capacity. Alaska operates two 

nonstop flights from Great Falls to Seattle complemented by a third Seattle flight which operates via Helena 

before continuing to Seattle. United operates about one-fifth of the capacity at Great Falls with three 50-seat 

regional jet flights to its hub in Denver. Allegiant operates less-than-daily service to both Las Vegas and 

Phoenix/Mesa using MD-80 aircraft. Although Allegiant's capacity varies throughout the year, it will operate two 

flights per week to Las Vegas and four flights per week to Phoenix/Mesa in August. Unlike Alaska, Delta and 

United, Allegiant does not offer connecting service beyond Las Vegas and Phoenix/Mesa – all Allegiant traffic is 

point-to-point traffic. 

Exhibit 4: Departures per Day*, Seats per Departure and Seats per Day by Market and Carrier at Great Falls – August 2011

* The number of departures per day is displayed in increments of sevenths (because there are seven days in a week). "1 3/7" is read as one 

flight seven days a week with a second flight operated three of the seven days in a week. 

Carrier Destination

Departures 

per Day

Seats per 

Departure

Seats per 

Day

Percent of 

Capacity

Alaska HLN 2 74 148 19.7%

SEA 1 74 74 9.9%

Total 3 74 222 29.6%

Delta MSP 1 3/7 76 113 15.0%

SLC 3 50 147 19.5%

Total 4 3/7 59 260 34.6%

United/Continental DEN 3 50 148 19.8%

Total 3 50 148 19.8%

All Network Carriers Total 10 3/7 61 630 83.9%

Allegiant AZA 2/7 150 39 5.2%

LAS 4/7 150 82 11.0%

Total 6/7 150 121 16.1%

Grand Total 11 1/7 67 751 100.0%
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

11

Air Service Development Efforts

Great Falls International Airport is aggressively pursuing new air service and has met with eight airlines in 11 

meetings since December 2010. Great Falls has met with Allegiant and United airlines at their headquarters 

offices. Great Falls also attended both the Sixel Consulting Small Airports Conference in Salt Lake City and the 

JumpStart Conference in Cleveland where the Airport Director presented business cases for new service at Great 

Falls to each airline. Great Falls' meetings with airlines are illustrated in Exhibit 5:

Exhibit 5: Great Falls International Airport Air Service Development Meetings with Airlines – December 2010 through July

2011

Airline

Headquarters Sixel Consulting 

Conference

JumpStart 

2011

Alaska X X

Allegiant X

Delta X

Frontier X X X

Gulfstream X

Seaport X

Southwest X

United X

Meeting Location
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

12

AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

Capacity Trends

Total capacity for all airlines (including Allegiant) serving Great Falls was down 34.3% since its peak in 2005 to 

694 seats per day each way in 2010. When Allegiant's capacity is excluded, capacity was down even more in 

2010 – 45.3%, or 478 seats per day each way since the peak in 2005. While Allegiant's capacity is important, and 

Allegiant offers an important service for leisure travelers at Great Falls International Airport, Allegiant serves only 

two destinations from Great Falls and does not connect traffic beyond these two destinations.

Exhibit 6: Seats per Day Each Way at Great Falls International Airport (All Carriers, Ex-Allegiant and Allegiant) 

Year-End Fourth Quarter 2001-2010 (DOT T-100 data) 

This Section Continued on Next Page

942 936

969

1,015

1,057

952

748

647 630

578

3 5 5 4

112 115

942 936

969

1,015

1,057

952

783

701

742

694

0

200

400

600

800

1,000

1,200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Seats per Day Each Way

Seats per Day Each Way (Ex-Allegiant) Seats per Day Each Way (Allegiant) Seats per Day Each Way (All Carriers)
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

13

Closer analysis of Great Falls capacity reveals most of the total decline since 2005 is result of Delta and 

Northwest reducing capacity. In 2005, Delta/Northwest operated an average of 720 seats per day each way at 

Great Falls. In 2010, Delta operated just 232 seats per day each way, a decline of 488 seats per day each way or 

67.8%. 

Among the other carriers serving Great Falls, United entered the Great Falls market in 2005 and has consistently 

operated two or three flights per day each way to its hub in Denver. Big Sky was a 19-seat operator that served 

destinations mostly in Montana, but discontinued operations in 2006 when the company shutdown all operations. 

Alaska's capacity has been relatively consistent over the last ten years, and of course, Allegiant has increased its 

capacity since entering the market in 2007 to Las Vegas and the inauguration of Phoenix/Mesa service in 2009.

Exhibit 7: Seats per Day Each Way by Carrier at Great Falls International Airport – Year-End Fourth Quarter 2001-2010 (DOT 

T-100 data) 

This Section Continued on Next Page

0

200

400

600

800

1,000

1,200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

687 661 682 701 720

603

430

301 297

232

255 259 223

252 214

217

218

222 225

224

1 6 6 4

6 2 5 7

2 2

6 5

111

100

124 108

123

3 5

5 4 112

115

Seats per Day Each Way

Delta/Northwest Alaska Big Sky United Allegiant

942 936 968 1,015 1,057 952 783 701 742 694
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

14

Fewer Delta Seats per Departure

Exhibit 8 illustrates Delta/Northwest has down-gauged the size of aircraft operated at Great Falls over the last ten 

years from 115 seats per departure (per flight) in 2001 to just 58 seats per departure in 2010. Since 2005, when 

Great Falls' total airline capacity peaked, Delta's average seats per departure declined from 70 to 58 in 2010. As 

Alaska replaced CRJ-700 regional jets with larger Bombardier Q-400 turboprops beginning in 2005, Alaska's 

seats per departure increased from 70 in 2001 to 76 in 2010. United's capacity per departure, while down from 

the first year it operated service in Great Falls, has been flat at approximately 50 seats over the last five years.

Exhibit 8: Seats per Departure (Flight) Operated by Delta/Northwest, Alaska and United at Great Falls International Airport 

2001-2010 (DOT T-100 Data)

115

108

9 4

6 9 7 0

8 1

7 3 5 9 6 1 5 8

6 9 7 0 7 0 7 0 7 3

7 4

7 5 7 5 7 6 7 6

5 7

5 0 5 1 5 0 5 0 5 1

0

20

40

60

80

100

120

140

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Seats per Departure

DL/NW Seats per Departure AS Seats per Departure UA Seats per Departure
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

15

Fewer Delta Departures per Day

In addition to down-gauging its average aircraft size, Delta/Northwest has also cut the number of flights it 

operates at Great Falls International Airport. In 2001, Delta and Northwest operated a total of 6 flights per day in 

Great Falls, increased the number to approximately 10 in 2004 and 2005, but by 2010, Delta operated just four 

flights per day in Great Falls. Alaska's flights per day are also down from 3 5/7 flights per day in 2001 to 3 flights 

per day in 2010, but Alaska's overall decline in capacity has been significantly less than the Delta/Northwest 

decline.

Exhibit 9: Departures (Flights) per Day Operated by Delta/Northwest, Alaska and United at Great Falls International Airport 

2001-2010 (DOT T-100 Data)

6 6 1/7

7 2/7

10 1/7 10 2/7

7 3/7

5 6/7

5 1/7 4 6/7

4 

3 5/7 3 5/7

3 1/7

3 4/7

3 2 6/7 3 3 3 3 

1 2/7

2 2 

2 3/7 2 1/7

2 3/7

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Departures per Day

DL/NW Departures per Day AS Departures per Day UA Departures per Day
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

16

Combined Delta Seats per Departure and Departures per Day

When the combined Delta and Northwest seats per departure and departures per day are illustrated on the same 

chart, as in Exhibit 10 below, it is apparent that both fewer seats per departure and fewer departures per day 

came together to result in the 67.8% decline in Delta/Northwest's capacity in Great Falls.

Exhibit 10: Delta and Northwest Seats per Departure and Departures (Flights) per Day at Great Falls International Airport 

2001-2010 (DOT T-100 Data)

115

108

9 4

6 9 7 0 8 1

7 3

5 9 6 1 5 8

6 6 1/7 7 2/7

10 1/7 10 2/7

7 3/7

5 6/7

5 1/7 4 6/7

4 

0

2

4

6

8

10

12

0

20

40

60

80

100

120

140

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Seats per Departure

Departures per Day

DL/NW Seats per Departure DL/NW Departures per Day
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

17

Traffic Trends

Great Falls domestic ex-Allegiant traffic peaked in 2005 when capacity peaked. Between 2005 and 2010, the 

domestic ex-Allegiant traffic is down 27.5% from 294,570 origin and destination passengers to 213,630 origin and 

destination passengers in 2010. Although Allegiant traffic has enabled total airport traffic to rebound to near the 

2005 peak, all of the Allegiant traffic is to either local Las Vegas or local Phoenix/Mesa traffic. 

International traffic is up slightly since 2005, but international traffic accounted for just 3.3% of total traffic in Great 

Falls in 2010. 

Exhibit 11: Annual Domestic and International Origin and Destination (O&D) Passengers at Great Falls International Airport

Year-End Fourth Quarter 2001-2010 (DB1B data)

This Section Continued on Next Page

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

247,870 244,080 237,340 245,520

294,570

270,480

252,210

232,820

202,590 213,630

21,230

35,850

70,620

6,240 76,310 6,480 6,110

8,100

8,590

9,480 10,300 9,880 10,260

10,000

Annual O&D Passengers

Annual Domestic O&D (Ex-Allegiant) Annual Domestic O&D (Allegiant) Annual International O&D

254,110 250,560 243,450 253,620 303,160 279,960 283,740 278,550 283,470 299,940
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

18

The origin and destination traffic translates to 293 domestic ex-Allegiant PDEW, 105 Allegiant and 14 PDEW in 

2010. While the downward trend in the domestic ex-Allegiant traffic between 2005 and 2009 was reversed in 

2010, it should be noted that the 2010 traffic increased by just 15 PDEW and domestic ex-Allegiant traffic stood at 

just 72.2% of its 2005 level.

Exhibit 12: Annual Domestic and International Passengers per Day Each Way (PDEW) at Great Falls International Airport

Year-End Fourth Quarter 2001-2010 (DB1B data)

0

5 0

100

150

200

250

300

350

400

450

500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

340 333 325 336

402

371

345

318

278 293

2 9

4 9

9 7

9 105 9

8

1 1

1 2

1 3 1 4 1 3 1 4

1 4

Passengers per Day Each Way

Domestic PDEW (Ex-Allegiant) Domestic PDEW (Allegiant) International PDEW

348 342 333 347 414 384 389 381 388 411
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

19

Leakage to Other Airports in the Region

Great Falls International Airport retains only 51.4% of the traffic generated in its immediate catchment area (the 

Great Falls metropolitan statistical area). 48.6% of the traffic Great Falls International airport could capture is lost 

to other airports in Montana, with nearly one-third of the traffic lost to Missoula. Billings captures 7.0% of the 

traffic, Bozeman and Helena each capture 4.6%, and Kalispell captures slightly less than 2% of the traffic.

Exhibit 13: Airport Origin for Great Falls Catchment Area Traffic January 2010 – December 2010 (June 2011 Leakage Study)

1.8%

51.4%

30.6%

4.6%

4.6% 7.0%
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

20

Airfares in Montana are generally very high. The average fare in all domestic and international markets at Great 

Falls for the itineraries analyzed in the leakage study was $212 each way. Average fares among the airports that 

captured Great Falls traffic ranged from $181 at Bozeman (4.6% of the traffic) to $250 at Helena (also 4.6% of the 

traffic). Missoula captured 30.6% of the traffic generated in the immediate Great Falls catchment area, but the 

average fare paid at Missoula was $209, just $3 lower than the average fare paid at Great Falls.

Exhibit 14: Average Fare Paid by Great Falls Catchment Area Passengers by Originating Airport – January 2010 through 

December 2010 (June 2011 Leakage Study)

$0 $50 $100 $150 $200 $250 $300

Great Falls

Missoula

Billings

Bozeman

Helena

Kalispell

$212

$209

$190

$181

$250

$231

51.4%

30.6%

7.0%

4.6%

4.6%

1.8%

Average Fare

Share of Traffic
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

21

Domestic Fare Trends

The average ex-Allegiant domestic fare is up $74 each way ($148 roundtrip) or 43.9% to $241 each way since its 

10-year low and since Great Falls' capacity peaked in 2005. Over the same period since 2005, domestic exAllegiant capacity is down 45.3% and domestic ex-Allegiant traffic is down 27.3%. Additional capacity in Great 

Falls, especially capacity to a hub such as San Francisco, would likely put downward pressure on both domestic 

and international fares, given United's network of domestic and international routes flown from San Francisco.

Exhibit 15: Ex-Allegiant Passengers per Day Each Way (PDEW), Seats per Day Each Way and Average Domestic One-Way 

Fare at Great Falls International Airport – Year-End Fourth Quarter 2001-2010 (DOT T-100 and DB1B data)

942 936

969

1,015

1,057

952

748

647 630

578

340 333 325 336

402

371 345

318

278 293

$179 $180 $182 $180

$168

$214

$235

$248

$239 $241

$ 0

$50

$100

$150

$200

$250

$300

0

200

400

600

800

1,000

1,200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Average One-Way Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way (Ex-Allegiant) Domestic PDEW (Ex-Allegiant) One-Way Domestic Fare (Ex-Allegiant)
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

22

High Fares Relative to Other U.S. Lower 48 Airports

The average domestic ex-Allegiant Great Falls domestic fare, at $241, was the seventh highest average domestic 

ex-Allegiant fare in the Lower 48 United States among airports with at least 100,000 domestic origin and 

destination (O&D) ex-Allegiant passengers in 2010. Only Minot, Shreveport, LaCrosse, Bismarck, Lawton and 

Alexandria had a higher average domestic ex-Allegiant fare in 2010. The average domestic ex-Allegiant fare 

among all lower 48 airports in 2010 was $158, so the average domestic Great Falls fare was 52.4% higher, or $83 

higher each way, than the average lower 48 airport.

Exhibit 16: Average Domestic Ex-Allegiant One-Way Fares at Lower 48 Airports with at Least 100,000 Domestic O&D 

Passengers – Year-End Fourth Quarter 2010 (DB1B data)

Rank Market

Domestic O&D 

Passengers

Domstic 

PDEW

Average Domestic 

One-Way Fare

1 Minot 161,220 221 $294

2 Shreveport 376,170 515 $271

3 LaCrosse 182,910 251 $264

4 Bismarck 270,120 370 $255

5 Lawton 114,770 157 $252

6 Alexandria 242,570 332 $244

7 Great Falls 213,630 293 $241

8 Northwest Arkansas 857,290 1,174 $241

9 Kalamazoo 200,790 275 $240

10 Yuma 140,950 193 $237

11 Idaho Falls 222,310 305 $237

12 Casper 124,230 170 $235

13 Mobile 477,130 654 $235

14 Grand Forks 155,110 212 $231

15 Bakersfield 185,520 254 $231

16 Sioux Falls 466,270 639 $231

17 Columbia, SC 848,590 1,162 $227

18 Springfield, MO 466,080 638 $226

19 Monroe 174,040 238 $224

20 Tri-Cities, TN 286,940 393 $224

21 Bangor 284,130 389 $223

22 Killeen 390,120 534 $221

23 San Angelo 100,100 137 $220

24 Helena 177,140 243 $220

25 Kalispell 297,670 408 $220
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

23

STRATEGIC PLAN

Proposed New Route

Great Falls International Airport is proposing regional jet service between Great Falls and San Francisco 

International Airport.

Goals

Great Falls has three goals with its Small Community Air Service Development Grant proposal for service to San 

Francisco on United:

 Lower fares in the local market and connect markets served via United's San Francisco hub

 Reverse the decline in Great Falls' origin and destination traffic

 Recapture catchment area traffic leaked to other airports

Target Airline Support

United Airlines has expressed interest in operating the proposed service from Great Falls to San Francisco. 

While United cannot commit to operating the service if Great Falls International Airport receives a Small 

Community Air Service Development grant, United has indicated a minimum revenue guarantee will reduce its 

financial risk and move Great Falls-San Francisco above other regional jet new route opportunities without a 

minimum revenue guarantee. United supports Great Falls' proposal for a small community air service 

development grant and has indicated a letter of support will be written.

SkyWest Airlines, a regional airline operating as a United Express code share partner has also expressed interest 

in operating the proposed service in a pro-rate agreement with United using the UA code on Great Falls-San 

Francisco flights.
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

24

Great Falls-San Francisco Bay Area Traffic and Fare Trends

The three airports in the San Francisco Bay Area generated 8.7 PDEW at an average fare of $186 in 2010. 

Traffic is down 2.5 PDEW in 2010 from a peak of 11.2 PDEW in 2007, and the average fare is down slightly from 

its peak of $194 in 2007.

Exhibit 17: Great Falls-San Francisco Bay Area (SFO, OAK, SJC) Passengers per Day Each Way (PDEW) – Year-End Fourth 

Quarter (DB1B data)

This Section Continued on Next Page

10.6 9.9

9.0

7.8

8.7

10.5

11.2

9.3

8.6 8.7

$157 $159 $161 $159 $153

$181

$194 $189 $192 $186

$0

$50

$100

$150

$200

$250

0

5

10

15

20

25

30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Average One-Way Fare

Passengers per Day Each Way (PDEW)

GTF-All Bay Area PDEW GTF-All Bay Area Fare
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

25

San Francisco generates the highest amount of Great Falls traffic among the three airports in the Bay Area, with 

3.4 PDEW in 2010. Oakland and San Jose generated 2.9 PDEW and 2.4 PDEW in 2010, respectively.

Exhibit 18: Great Falls-San Francisco Bay Area (SFO, OAK, SJC) Passengers per Day Each Way (PDEW) by Airport – YearEnd Fourth Quarter (DB1B data)

This Section Continued on Next Page

6.0

5.4

4.7

4.2

3.8

4.4

5.2

4.1 4.1

3.4

2.9

2.4

10.6

9.9

9.0

7.8

8.7

10.5

11.2

9.3

8.6 8.7

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Passengers per Day Each Way (PDEW)

GTF-SFO PDEW GTF-OAK PDEW GTF-SJC PDEW GTF-All Bay Area PDEW
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

26

Fares in the Great Falls-San Francisco Bay Area market did not deviate significantly in 2010 from the average 

Bay Area fare when analyzed for each of the three airports in the Bay Area. The average Bay Area fare was 

$186 each way; San Francisco generated the highest fare at $194, and Oakland generated the lowest fare at 

$175. All three markets increased in tandem between 2005 and 2006 when the average fare essentially reset 

from $150 – $160 between 2001 and 2005 to about $190 between 2006 and 2010. The most recent fares are 

relatively high, with the average $186 one-way fare translating to $372 roundtrip – before taxes, surcharges and 

ancillary fees.

Exhibit 19: Great Falls-San Francisco Bay Area (SFO, OAK, SJC) Average One-Way Fare by Airport – Year-End Fourth 

Quarter (DB1B data)

This Section Continued on Next Page

$194

$175

$157 $159 $161 $159

$153

$181

$194

$189 $192

$186

$125

$150

$175

$200

$225

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Average One-Way Fare

GTF-SFO Fare GTF-OAK Fare GTF-SJC Fare GTF-All Bay Area Fare
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

27

Analysis of traffic and revenue data by quarter indicates the Great Falls-San Francisco Bay Area market peaked 

in third and fourth quarter in both 2010 and 2009. At $182 each way, the average fare in fourth quarter 2010 was 

unchanged from fourth quarter 2009; traffic was down from 10.7 PDEW in fourth quarter 2009 to 8.2 PDEW in 

fourth quarter 2010.

Exhibit 20: Great Falls-San Francisco Bay Area (SFO, OAK, SJC) PDEW and Average Fare – Fourth Quarter 2008 through 

Fourth Quarter 2010 (DB1B data)

9.3

4.3

7.2

12.0

10.7

6.4

8.4

11.6

8.2

$186

$196

$204

$191

$182

$200

$186

$180

$182

$125

$150

$175

$200

$225

0

5

10

15

20

25

30

2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4

Average One-Way Fare

Passengers per Day Each Way (PDEW)

GTF-All Bay Area PDEW GTF-All Bay Area Fare
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

28

Connecting Traffic and Revenue Via San Francisco

In addition to nonstop service in the local Great Falls-San Francisco market, the proposed service would provide 

connecting opportunities to at least 34 other airports in 30 metropolitan areas served by United from San 

Francisco. While United serves many more cities from San Francisco than the markets displayed on the map 

below, the transcontinental and semi-transcontinental markets served from San Francisco are considered to be 

too circuitous for Great Falls traffic to flow via San Francisco; these markets could continue to flow via Denver on 

United's existing Great Falls service.

Two-thirds of the markets United could serve via San Francisco are domestic markets and one-third of the

markets are international markets. The many of the international markets require double connections from Great 

Falls today; Great Falls-San Francisco service could make many of the international destinations more accessible 

with a single connection.

Exhibit 21: Non-Circuitous Markets United Could Serve with Great Falls-San Francisco Service

This Section Continued on Next Page
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

29

Among Great Falls markets United could logically flow via its hub in San Francisco, the three airports in the San 

Francisco Bay Area rank as Great Falls' fourth largest market with 6,350 origin and destination passengers, or 8.7

PDEW in 2010. Las Vegas, Phoenix/Mesa and the Los Angeles Basin are the larger Great Falls markets United 

could flow via San Francisco.

Exhibit 22: Origin and Destination Passengers and PDEW in the 30 Largest Great Falls' Markets United Could Flow via San 

Francisco – Year-End Fourth Quarter 2010 (DB1B data)

This Section Continued on Next Page

0 2,500 5,000 7,500

LAS - 1

PHX/AZA - 2

LAX/SNA/ONT/BUR/LGB - 3

SFO/OAK/SJC - 4

SMF - 5

SAN - 6

HNL - 7

RNO - 8

OGG - 9

TUS - 1 0

LIH - 1 1

FAT - 1 2

PSP - 1 3

SJD - 1 4

SBA - 1 5

KOA - 1 6

PVR - 1 7

LHR/LGW - 1 8

FRA - 1 9

ICN - 2 0

BFL - 2 1

MEX - 2 2

SBP - 2 3

NRT - 2 4

MUC - 2 5

KIX - 2 6

MRY - 2 7

RDD - 2 8

SYD - 2 9

PVG - 3 0

48,830

37,950

9,690

6,350

4,000

3,940

2,450

1,660

1,110

1,020

940

830

720

620

530

490

460

440

380

190

170

150

140

100

7 0

6 0

6 0

6 0

6 0

3 0

66.9

52.0

13.3

8.7

5.5

5.4

3.4

2.3

1.5

1.4

1.3

1.1

1.0

0.8

0.7

0.7

0.6

0.6

0.5

0.3

0.2

0.2

0.2

0.1

0.1

0.1

0.1

0.1

0.1

0.04

Annual O&D PDEW
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

30

There are a total of 30 non-circuitous markets United could serve via San Francisco with Great Falls-San 

Francisco service (in this proposal, non-circuitous is defined as total trip distance not greater than 66% of the 

nonstop distance from Great Falls). The total Great Falls market size for these markets was 169.2 PDEW in 2010 

at an average fare of $137 each way, and 72% of the traffic originated in Great Falls.

Recognizing a significant portion of the Great Falls traffic in the markets United could flow via San Francisco is to 

Las Vegas and Phoenix/Mesa at relatively low fares on Allegiant, the data was also calculated without Las Vegas 

and Phoenix/Mesa. Excluding Las Vegas and Phoenix, the markets United could flow via San Francisco 

generated 50.3 PDEW at an average fare of $235 each way, and 59% of the traffic originated in Great Falls. 

Exhibit 23: Passengers per Day Each Way (PDEW) and Average One-Way Fares and Great Falls Point-of-Origin in the 

Markets United Could Serve with Great Falls-San Francisco Service – Year-End Fourth Quarter 2010 (DB1B data)

Rank Market PDEW

Average 

One-Way Fare

GTF 

Point of Origin

1 LAS 66.9 $98 85%

2 PHX/AZA 52.0 $93 68%

3 LAX/SNA/ONT/BUR/LGB 13.3 $200 49%

4 SFO/OAK/SJC 8.7 $186 49%

5 SMF 5.5 $199 46%

6 SAN 5.4 $210 62%

7 HNL 3.4 $282 88%

8 RNO 2.3 $214 63%

9 OGG 1.5 $280 95%

10 TUS 1.4 $218 48%

11 LIH 1.3 $305 96%

12 FAT 1.1 $261 53%

13 PSP 1.0 $170 67%

14 SJD 0.8 $255 100%

15 SBA 0.7 $260 30%

16 KOA 0.7 $320 96%

17 PVR 0.6 $283 98%

18 LHR/LGW 0.6 $674 66%

19 FRA 0.5 $632 53%

20 ICN 0.3 $692 37%

21 BFL 0.2 $228 65%

22 MEX 0.2 $284 73%

23 SBP 0.2 $225 43%

24 NRT 0.1 $856 40%

25 MUC 0.1 $709 100%

26 KIX 0.1 $854 83%

27 MRY 0.1 $369 67%

28 RDD 0.1 $187 33%

29 SYD 0.1 $676 67%

30 PVG 0.04 $1,293 33%

All Markets 169.2 $137 72%

All Markets - Ex-LAS and PHX/AZA 50.3 $235 59%
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

31

Grant Amendments/Alternate Strategies

If Great Falls is successful in its proposal for a SCASD award, but is not successful in securing service to San 

Francisco on United, Great Falls would like the Department to consider reallocation of the grant funding to a 

different market/airline combination to include service to the San Francisco Bay Area on another carrier, to Los 

Angeles or to Chicago. 

 
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

32

PROJECT IMPLEMENTATION, MONITORING AND FUNDING

Public / Private Partnerships

Great Falls International Airport Authority has partnered with the Great Falls Development Authority to develop air 

service in Great Falls.

Private

 Great Falls International Airport Authority

Public

 Great Falls Development Authority
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

33

Project Funding

In addition to the Small Community Air Service Development Grant of $500,000 requested from the Department, 

the Airport will provide $20,000 in cash for local media company advertising placement and in-kind funding valued 

at $70,000 in the form of waived landing fees. Various media companies and other civic organizations in the area 

have pledged in-kind funding valued at $90,918 for marketing, advertising and promotion over the two year life of 

the project. The total value of cash and in-kind contributions from the community and the Airport is valued at 

$180,918.

Exhibit 24: Summary of Sources and Types of Project Funding

.

Funding Source Grant Cash In-Kind Total

Department of Transportation $500,000 $500,000

Community $90,918 $90,918

Airport $20,000 $70,000 $90,000

Total $500,000 $20,000 $160,918 $680,918
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

34

Implementation Timeline

The proposed implementation timeline for the project assumes the Department will award Small Community Grant 

Funding in early October 2011. Once the award is announced, Great Falls International Airport will begin 

discussions with United to begin service. Based on airline planning lead times and the need for advance 

bookings, we assume United would not be able to begin service until April 2012. The first two milestones on the 

Airport's timeline are to execute the grant agreement with the Department and to negotiate the minimum revenue 

guarantee agreement with United. Once service is announced and schedules are published, United, the Airport 

and the community would begin marketing the new route and working with United to monitor advance bookings. 

The Airport will continue its marketing program and continue to work with United to monitor the route once service 

begins. The Airport will submit grant status reports on a quarterly basis to the Department throughout the 

proposed two year term of the minimum revenue guarantee.

Exhibit 25: Proposed Project Timeline (assumes grant announcements in December 2010 and service launch in June 2011)

Start-Up Period and Sustainability of the Market

The Airport will market, promote and advertise the new service to business and leisure travelers in Great Falls'

immediate catchment area. A minimum revenue guarantee is an effective use of SCASD funding because a

guarantee reduces an airline's risk in the start-up phase of a market's maturity while traffic in the new market 

increases; a period of time that is often subject to losses. The size of the local Great Falls-San Francisco market 

will increase with the introduction of nonstop service and the connecting traffic that could flow via San Francisco

to other destinations will complement the local Great Falls-San Francisco traffic.

Activity/Project Milestone Estimated Dates

SCASD Grant Award Announcement Early 2011

Execute Grant Agreement with DOT October 2011

Negotiate Minimum Revenue Guarantee with Airline October-November 2011

Announce Service January 2012

Publish Schedule January 2012

Market Route (Pre-Launch) January-March 2012

Monitor Advance Bookings January-March 2012

Adjust Marketing Plan Based on Advance Bookings January-March 2012

Begin Service Early April 2012

Market Route (Post-Launch) April 2012 and Beyond

Operate Service with MRG April 2012 - March 2014

Monitor Route Performance April 2012 - March 2014 and Beyond

Submit Grant Status Reports to DOT Quarterly 2Q 2012 - 1Q 2014
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

35

PROJECT MONITORING AND FINANCIAL CONTROL

Success Metrics

The success of the program will be based on achieving the objectives of the program. The Airport will 

continuously monitor the performance of the route. Even before service begins we will communicate with United 

on a weekly basis to monitor advance bookings and week-over-week of advance bookings. Marketing and 

promotional activities can be adjusted if advance bookings are weak or are not booking at a rate comparable to 

other United San Francisco markets.

Project Goals Success Metric

 Introduction of nonstop service from Great Falls to 

San Francisco

 Announcement and inauguration of service by 

United from Great Falls to San Francisco.

 Reverse the decline in Great Falls ex-Allegiant 

traffic at Great Falls

 Year-over-year quarterly increases in Great Falls 

traffic, especially in the markets United could 

logically flow via its hub in San Francisco

 Recapture traffic generated in the immediate 

Great Falls catchment area lost to other airports in 

the region

 Less leakage to Missoula, Billings, Helena, 

Bozeman and Kalispell

 Lower fares to the San Francisco Bay Area and 

the markets United could flow beyond its hub in 

San Francisco

 Year-over-year decreases in average fares to the 

San Francisco Bay area and the other 27 markets 

United could logically flow over San Francisco

Once service begins, the Airport will rely on traffic and revenue data provided directly by the airline and the 

amount of reimbursements requested by the airline as indications of project success. T-100 data and DB1B data 

will also be analyzed to compare year-over-year market size growth on a quarterly basis. In addition, the airport 

will analyze leakage once the service has operated for a full year to determine the trend in leakage to other 

airports. The Airport will report its success metrics in the quarterly grant reports to the Department. 
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

36

Legal Sponsor

Great Falls International Airport Authority is the legal sponsor responsible for administering the program. Great 

Falls International Airport Authority is a government entity.

Great Falls International Airport Authority

Great Falls International Airport

2800 Terminal Drive

Great Falls, MT 59404

John Faulkner

Airport Director

406-727-3404

Financial Controls

As the sponsor, Great Falls International Airport Authority and its governing body, Great Falls International 

Authority Board, will be the responsible parties for all fiscal matters and the Department's reporting requirements. 

The Airport Authority Board is established as a public governing body. As a public entity, the Department can be 

assured that proper financial controls are in place to guarantee that the Department’s Grant will be used in 

accordance with any subsequent agreement. The Great Falls International Airport Authority Board understands 

that the Grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will 

submit invoices to the Department for reimbursement, based on a percentage of the total grant request.
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

37

APPENDIX A: REQUIRED SUMMARY INFORMATION

A. Applicant Information

 Not a Consortium

 Interstate Consortium

 Intrastate Consortium

 Community now receives EAS subsidy

 Community (or Consortium member) previously received a Small Community Grant

If previous recipient:

Date of Grant: ____________________

Expiration Date of Grant: ____________________

B. Public/Private Partnerships

Public

 Great Falls International Airport Authority

Private

 Great Falls Development Authority

C. Project Proposal 

 Marketing Upgrade Aircraft New Route

 Travel Bank Service Restoration Subsidy

 Surface Transportation Regional Service Revenue Guarantee

 Launch New Carrier Start-up Cost Offset First Service

 Study Secure Additional Service Other (explain below)

Great Falls International Airport is proposing a grant to fund a minimum revenue guarantee for regional jet 

service between Great Falls and San Francisco on United Airlines or SkyWest.
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

38

D. Existing Landing Aids at Local Airport

 Full ILS Outer/Middle Marker Published Instrument 

Approach

 Localizer Other (specify)

E. Project Cost

F. In-Kind Contributions**

For funds in lines 7a (Airport In-Kind contribution) and 7b (Other In-Kind contribution), please describe the 

source(s) of fund(s) for each.

(5a) Great Falls International Airport will waive landing fees for a period of two years. Based on one roundtrip 

per day on a 50-seat regional jet, the amount of the waived fees is valued at $70,000 over the two year 

period. (5b) Various media outlets in Great Falls have pledged in-kind marketing, advertising and media 

promotion valued at $90,918 over the two year life of the requested grant.

G. Is this application subject to review by state under Executive Order 12372 

Process?

 a. This application was made available to the State under the Executive Order 12372 Process for review 

on (date):

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

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

Line Description Sub Total Total Amount

1 Federal amount requested $500,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $20,000

3b Non-airport cash funds

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

4 TOTAL CASH FUNDING (1 + 2 + 3): $520,000

In-Kind contribution

5a Airport in-kind contribution** $70,000

5b Other in-kind contribution** $90,918

5 TOTAL IN-KIND CONTRIBUTION (5a + 5b): $160,918

6 TOTAL PROJECT COST (4 + 5): $680,918
Great Falls International Airport Authority 

 

Great Falls International Airport Authority; Great Falls, Montana

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2011-0119

39

H. Is this applicant delinquent on any federal debt?

 No

 Yes (explain)