June 11, 2012

Sponsor: Jackson County/Rogue Valley International – Medford Airport, Medford, Oregon

Bern Case, Airport Director

Congressional Code: OR-02

Dun & Bradstreet Number: 155788276

Tax Identification Number (EIN): 93-6002298

ROGUE VALLEY INTERNATIONAL – MEDFORD AIRPORT

Application Under the Small Community Air Service Development Program

Docket DOT-OST-2012-0069

Application for Federal Support for Growth of Current Air Service via Advertising and 

Marketing Program
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 2

TABLE OF CONTENTS

Introductory Letter of Support 3

Summary Information – Appendix C 4

Introduction 7

The Rogue Valley – Medford Air Service Market 8

Current and Historical Service 8

Alternate Airports 11

Air Service Development Efforts 16

Air Service Needs and Deficiencies 17

Regional Fare Environment 17

Per Capita Capacity 18

Market Seasonality 20

Strategic Marketing Plan 21

Funding Plan 23

Implementation Timeline 24

Public/Private Partnership 25

Legal Sponsor 27

Letters of Support 28

Conclusion 31

Section Page Number
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 3

INTRODUCTORY LETTER OF SUPPORT
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 4

SUMMARY INFORMATION – APPENDIX C

Small Community Air Service Development Program

Docket DOT-OST-2012-0069

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: _______________________

Federal Funds Requested: ______________________

Carrier(s) Service Obtained: ____________________

Destination(s) Served: __________________________

B. Public/Private Partnership

Public:

1. Rogue Valley International – Medford Airport

2. Jackson County

3. City of Medford

Private:

1. Medford/Jackson County Chamber of Commerce

2. Southern Oregon Regional Economic Development, Inc.

3. Medford Visitors Convention Bureau

4. Southern Oregon Media Group

5. California Oregon Broadcasting, Inc.
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 5

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 (Specify)

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach

 Localizer Other:

E. Project Cost

1. Federal amount requested: $ 150,000

2. State cash financial contribution: $ 0

Local cash financial contribution:

3a. Airport cash funds: $ 5,000

3b. Non-Airport cash funds: $ 15,000

3. Total local cash funds: $ 20,000

4. TOTAL CASH FUNDING: $ 170,000

In-Kind Contribution:

a. Airport In-Kind contribution: $ Undetermined

b. Other In-Kind contribution: $ Undetermined

5. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

6. TOTAL PROJECT COST: $ 170,000 + In-Kind

F. In-Kind Contributions

For funds in lines 4a (airport in-kind contribution) and 4b (other in-kind contribution), 

please describe the source(s) of fund(s) for each.

Advertising and marketing matching funds (media companies)
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 6

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

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

for review on ______.

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

 Program is not covered by E.O 12372.

H. Is Applicant Delinquent on any Federal Debt?

 No
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 7

INTRODUCTION

The Rogue Valley International – Medford Airport has lost more departing airline seats in the last 

three years than it has in any other time in the last 20 years. Since 2009, airlines have culled an 

average of 382 departing seats per day out of the market – or 30% of the market’s total airline 

capacity. At the same time, Medford’s average, non-Allegiant, one way fare has risen to $212 

each way – an increase of 17%, or an average of $62 roundtrip. Medford’s average, nonAllegiant fare is now the highest of any airport in the Pacific Northwest states of Oregon, 

Washington, and Idaho.

Another major challenge in the Medford market is the seasonality of passenger traffic. The 

Airport sees a 50% passenger swing from the peak summer months to the lowest winter months, 

as inbound traffic dries up and outbound traffic is 

suppressed by ever-increasing fares. The result is load 

factors in the low 70s in the winter.

To address these deficiencies, the Airport has worked 

with its community partners to develop a plan for an 

advertising and market campaign, designed to help fill 

those empty seats. The campaign is two-pronged, with 

part of the advertising focused on the local market, and the other part focused on large 

inbound markets. The campaign will explain all there is to do in the Rogue Valley during the 

shoulder and winter months. Among the partners in the campaign are the local chambers, 

visitors bureaus, and two local media companies, which have long supported the Airport.

Unlike all of its commercially-served counterparts in the State of Oregon, the Rogue Valley 

International – Medford Airport has never been a Small Community Air Service Development 

Grant recipient. It has applied in the past with more aggressive proposals for additional air 

service. This year the Airport has chosen to take a different approach – helping to support its 

current carriers and fill their empty seats before it goes about recruiting service to new 

destinations. It seeks the Department of Transportation as a partner in its project.

“Medford’s average, nonAllegiant fare is now the highest 

of any airport in the Pacific 

Northwest states of Oregon, 

Washington, and Idaho.”
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 8

THE MEDFORD/ROGUE VALLEY AIR SERVICE MARKET

Current and Historical Air Service

Medford, and the rest of the Rogue Valley in Oregon and northern California, is isolated. In fact, 

it’s one of the most isolated areas in the lower 48 states. There are not any other air service 

options within a two hour drive. Add to that the mountain passes one has to cross driving out of 

the Valley in any direction and you have a region that relies on air service for connectivity to the 

rest of the world.

Despite this isolation, the Rogue Valley has become one of the most desirable places in the 

country to live. Because of this, the catchment area served by the Medford/Rogue Valley 

International Airport

(see map 1) has 

grown to almost 

three-quarters of a 

million people as of 

the 2010 US Census.

The one-hour 

Medford catchment 

area, seen in map 1 

in red, is home to 

278,200 people as of 

the 2010 US Census. 

Meanwhile, the twohour catchment 

area, seen in map 1 

in blue, is home to 

730,900 people. The 

population of the 

two hour catchment 

area has grown by 30% - or 220,000 people – in the last decade. The Rogue Valley International

-- Medford Airport catchment area is the second largest in the State of Oregon, but the Airport is 

still classified as a non-hub.

MAP 1: The Rogue Valley International Airport’s immediate (60 minute) 

and extended (120 minute) catchment areas; Source: Sixel Consulting Group
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 9

The Medford market is served by four airlines, with non-stop flights to nine destinations – four of 

which are served less-than-daily by Allegiant, and six of which are served on a daily basis by 

network carriers (see map 2). Only one destination has non-stop competition – Los Angeles 

(LAX) which is served by 

both Allegiant and Alaska 

Airlines (through its 

subsidiary, Horizon Air). In 

the last 12 months, 

Medford lost Portland 

service on United Express 

(operated by SkyWest), 

but added less-than-daily 

service to Oakland, with 

twice-per-week flights 

operated by Allegiant.

Other than Allegiant, the 

Rogue Valley International 

– Medford Airport has no 

service on low cost 

carriers.

The Rogue Valley 

International – Medford 

Airport has seen its 

network carrier seats

decline over the last 

several years, with June 

2012 seats down almost 2% 

over June 2011 network carrier seats (see figure 1 on next page). The largest source of seats cuts 

has been from United, and its United Express operators, which will offer 8.3% fewer departing 

seats per day in June of 2012 than it did in June of 2011. For summer of 2012 United will operate 

the fewest number of flights in the Medford market it has in the last decade, with Denver 

capacity down by a quarter – and with fewer than two flights per day on average. This decline 

in United capacity comes just one year after United eliminated Medford – Portland service.

MAP 2: Medford’s Scheduled Service

June 2012; Source: OAG Airline Schedule Data
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 10

Non-Stop Departures Seats Departures Seats Capacity

Carrier Destination Per Day Per Day Per Day Per Day Change

Horizon/Alaska LAX 1 74 1 74 0.0%

PDX 3.7 276 3.8 284 2.8%

SEA 2 148 2 148 0.0%

Horizon/Alaska Total 6.7 498 6.8 506 1.6%

Delta SLC 2 98 2 100 2.0%

Delta Total 2 98 2 100 2.0%

United DEN 2.4 138 1.8 108 -27.8%

SFO 7.4 242 6.8 243 0.4%

United Total 9.8 380 8.6 351 -8.3%

Allegiant LAS 0.3 45 0.2 43 -4.7%

LAX 0.4 45 0.2 43 -4.7%

OAK 0 0 0.2 43 100.0%

AZA 0.3 65 0.2 43 -51.2%

Allegiant Total 1 155 0.8 172 9.9%

Medford Total 19.5 1131 18.2 1129 -0.2%

Jun-11 Jun-12

Both Alaska Airlines (through partner Horizon Air) and Delta (operated by SkyWest) will have 

summer 2012 capacity that is, essentially, flat over summer 2011 (see figure 1). Alaska has 

added an average of eight seats a day each way to and from Portland, while Delta has added 

an average of two seats a day each way to and from Salt Lake City, with true daily service.

Allegiant has steadily grown is low-cost leisure presence in Medford over the last five years. In 

June of 2012 its overall capacity will be up almost 10% over June of 2011 (see figure 1). 

Allegiant 

added service 

on the 

Medford –

Oakland route 

in May of 

2012, with two 

weekly flights 

in each 

direction. At 

the same 

time, it has 

pulled back 

service on its 

three other 

Medford routes, with Phoenix/Mesa capacity cut in half over last summer. Additionally, Allegiant 

has informed the Airport it will seasonally discontinue service on both the Phoenix and Oakland 

routes at the end of the summer. The date for the return of these routes is not yet set. It is also 

important to note that Allegiant does not provide the network connectivity that is so important 

to most of the region’s travelers.

Passengers declined in 2011 at the Rogue Valley International – Medford Airport. Passengers 

have been, basically, steady over the last seven years in the market. The most striking trend is 

the drop in the number of passengers using the Airport’s network carriers and the connectivity 

that they provide. Since Allegiant entered the Medford market in 2007, network carrier 

passengers have fallen by 91,740 in 2011 or an average of 126 fewer passengers per day each 

way (see figure 2 on next page). This represents a network carrier passenger decline of 16%.

FIGURE 1: Scheduled Service at the Rogue Valley International – Medford Airport

June 2011 vs. June 2012; Source: OAG Airline Schedule Data
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 11

Since 2007, Allegiant has grown its Medford passengers from 18,720 per year to 81,440 per year –

an increase of 335% (see figure 2). This increase comes from Allegiant’s pricing, which is well 

below the overall market average. Still, in 2011 – for the first time – Allegiant saw a passenger 

decline in Medford. Allegiant’s 2011 passengers were down by 15,880 for the year, which is a 

decline of 16%.

Allegiant saw passengers decline in Medford in 2011 despite fares that were well below the 

averages on the market’s network carriers. Allegiant’s average fare was $68 each way in 2011 

in Medford (see figure 2). The average one way fare for network carriers was $212, which ranks 

Medford as one of the West’s most expensive air travel markets. Over the last three years, 

Medford has seen its Network carrier passengers suppressed by fare increases, in conjunction 

with a loss of available seats. In 2009, the average one way network carrier fare in Medford was 

$181. In 2011, the same fare was $212 – up 17% or an average of $62 roundtrip, pricing some 

travelers out of the market.

By contrast, the average Allegiant fare in 2011 in Medford was just $68 each way – but it was up 

18% over the 2010 fare (see figure 2 on previous page). It’s important to separate the Allegiant 

FIGURE 2: O&D Passengers and Average One Way Fares at the Rogue Valley International –

Medford Airport; 2003 – 2011; Source: US DOT Table OD1A
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 12

fare from the network carrier fare as Allegiant does not provide the broad connectivity that most 

of the travelers in the market need, and its specialized service, when averaged, tends to make 

the Medford air travel market appear to be less expensive than it really is for most travelers.

Medford continues to see steep cuts in the number of available seats, leading to those fare 

increases. Since 2009, the market has lost nearly a third of its available airline seats. Specifically, 

Medford has lost an average of 382 departing seats per day since the last peak in the summer 

of 2009, and in February of 2012 the market averaged just 915 departing seats per day (see 

figure 3).

While Medford’s airline capacity has been squeezed through seat cuts, the market has been 

filling a higher percentage of its available seats. The Airport’s overall load factor averaged 83% 

in 2011 – the highest in the last decade – peaking at almost 91% in June of 2011 (see figure 3). 

There is demand for air service that is not being met by the availability of current seats. Any time 

load factors top 80%, it is likely airlines are leaving behind passengers on high demand days such 

as Thursdays and Sundays.

FIGURE 3: Available Seats and Passengers per Day Each Way, and Load Factor at the Rogue Valley 

International – Medford Airport; June 2009 – December 2011; Source: US DOT T100
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 13

Despite overall capacity cuts in the market, Allegiant has significantly stimulated passengers on 

routes to its three main destinations: Los Angeles, Las Vegas, and Phoenix. Los Angeles is the 

only market from Medford that has service on two carriers – Allegiant and Alaska/Horizon – and 

as such, it is Medford’s top 

origin and destination (“O&D”) 

passenger market, averaging 

almost 113 passengers per day 

each way (see figure 4). 

Allegiant’s two other non-stop 

markets served in calendar year 

2011, Las Vegas and PhoenixMesa, also rank in Medford’s top 

five O&D passenger markets 

with 56 passengers per day 

each way and 48 passengers 

per day each way, respectively.

Medford’s passenger traffic is 

distributed around the country, 

with most passengers traveling 

on domestic itineraries. Not a 

single international destination 

ranks among Medford’s top 

passenger markets (see figure 4). 

Nine of Medford’s top 20 O&D passenger markets are on the West Coast, while seven are east of 

the Rockies.

The Allegiant impact has been good for leisure travelers in the Rogue Valley to Los Angeles, Las 

Vegas, and Phoenix – growing each of those passenger markets in excess of 25% over the last 

three years. Allegiant’s impact has also lowered fares – but only to the markets it serves nonstop. The Airline does not provide the network connectivity that is so important for business 

travelers. Despite having little impact on overall fares in the Medford market, Allegiant has 

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

FIGURE 4: Medford’s Top 20 O&D Passenger Markets

Source: US DOT Table OD1A, Calendar Year 2011
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 14

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

fare would indicate otherwise.

The only Medford passenger 

markets that have fares under 

$190 each way are those 

served by Allegiant and those 

in the Pacific Northwest states 

of Oregon and Washington, 

where the stage lengths are 

sufficiently short to offer the 

airline serving the route low 

operating costs. Allegiant’s 

average fare was $68 one way 

in 2011, with the average fare 

to LAX on all carriers at $109 

each way, the average fare to 

Las Vegas at $87, and the 

average fare to Phoenix-Mesa 

on all carriers at $113 (see 

figure 5). Beyond those cities, 

Portland, Seattle/Tacoma, and 

Spokane, all other cities have 

fares above $190 each way, 

with the overall average Medford fare on carriers other than Allegiant at $212 one way.

With rising fares and declining capacity the Rogue Valley International – Medford Airport has 

worked hard to ensure passengers are retained. The Airport has partnered with local media 

companies, including California Oregon Broadcasting, which owns and operates the local NBC 

affiliate TV station, and Southern Oregon Media Group, which owns and publishes the Medford 

Mail-Tribune Newspaper, to advertise air service throughout the region. Nonetheless, the Airport 

does not have a large marketing budget, as it invests significant money in keeping airline costs 

low in order to encourage airlines to retain and expand service.

FIGURE 5: Average Fares in Medford’s Top 20 O&D Passenger Markets

Source: US DOT Table OD1A, Calendar Year 2011
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 15

This Small Community Air Service Development Grant will be an essential part of a coordinated 

regional effort to better market the service available at Rogue Valley International – Medford 

Airport. The ultimate goal will be increased enplanements and load factors, which, over time 

should help to lower Medford’s high airfares. The secondary goal will be to better prove local 

demand for air service, to help airlines understand the need for a wider breadth of flights and 

destinations.
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 16

AIR SERVICE DEVELOPMENT EFFORTS

In just the last year, the Rogue Valley International – Medford Airport has met, in person, with six 

airlines and delivered materials to several others. The Airport sees its role as that of a partner in 

airline success. To that end, it is constantly working with its contracted experts to explore new 

route opportunities, to develop attractive incentive programs, and to market and advertise its 

current service.

So far, in 2012, the Airport has spent considerable time talking directly with airline planners and 

producing materials in support of expanded service. The Airport has met, in person, with Alaska 

Airlines, SkyWest, Frontier, US Airways, American Airlines, and Allegiant Air (see figure 6). The 

Airport also put together an advertising and marketing campaign, leveraging the support of its 

media companies, in conjunction with the 

launch of new Medford – Oakland service 

on 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, Phoenix/Mesa, and Oakland. 

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. The Airport has been able to achieve its success despite the 

fact that it has never been awarded a Small Community Air Service Development Grant. It 

seeks a Grant in the 2012 cycle to help it better support its carriers through a more widespread 

advertising and marketing campaign.

FIGURE 6: Medford’s Presentation to Allegiant Air

May 2012; Source: Sixel Consulting Group
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 17

AIR SERVICE NEEDS AND DEFICIENCIES IN MEDFORD

As Medford capacity has been trimmed by virtually all carriers over the last two years, its fares 

have risen much faster than the fares at other airports in the Pacific Northwest. In fact, for the 

first time in the last decade, Medford’s average domestic-plus-international average fare

(excluding Allegiant) ranks as the highest of 

all commercially served airports in Oregon, 

Washington, and Idaho. As of calendar 

year 2011, the average one way fare in 

Medford jumped to $212 (see figure 7). 

The Medford non-Allegiant average is 24% 

higher than the regional average of $171 

each way, or an average of $41 more 

each way than the rest of the airports in 

the three Northwest states.

Communities on par with Medford, in terms 

of population, have much lower average 

fares. For example, Pasco’s average fare is 

$186 versus Medford’s $212 (see figure 7). 

Similarly, Eugene’s average fare is $176 –

an average of 21% lower than the Medford 

fare. Medford and Eugene are quite 

similar, in terms of their catchment area 

population. Eugene was a Small 

Community Air Service Development Grant 

selectee for 2010. Eugene, however, 

benefitted from lower 2011 fares than Medford.

The main factor driving Medford fare increases is the loss of capacity. As noted in the air service 

summary section of this application, Medford’s total airline capacity, in terms of available seats, 

is down 30% since the summer of 2009 – a loss of an average of 382 departing seats per day

according to Department of Transportation statistics. Capacity dropped by an average of 70 

departing seats per day in 2011.

FIGURE 7: Average One Way Fares in OR, WA, and ID

Source: US DOT Table OD1A, Calendar Year 2011
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 18

Fare increases, however, 

have not been limited to the 

specific markets in which 

seats were lost. Virtually all of 

Medford’s top 20 markets 

saw fare increases from 2010 

to 2011. The average 

Medford top 20 market saw a 

fare increase of 9.9% in 2011 

(see figure 8). The largest 

fare increase was in the 

Phoenix/Mesa market, where 

Allegiant dropped service to 

seasonal status. Medford –

Phoenix overall average fares 

were up more than 46% from 

2010 to 2011. Other Medford 

markets with fare increases of 

at least 20% in 2011 include 

Las Vegas, Denver, San 

Diego, and New 

York/Newark. Only three markets saw fares fall – and all three saw decreases of less than 5% 

year over year.

Another measure of the capacity 

cuts that have led to higher 

average fares in Medford is the 

number of available departing seats 

per capita in the Medford

Metropolitan Statistical Area (MSA). 

In 2010, carriers serving the Rogue 

Valley International – Medford 

Airport offered an average of 2.05 

departing seats per year per 

resident of the Medford MSA. In 

FIGURE 8: Average Medford Fare Change, 2011 vs. 2010

Source: US DOT OD1A

FIGURE 9: Available Departing Seats per Capita

Source: US DOT T100, US Census, Calendar Year 2011
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 19

2011 the number fell to 1.77 departing seats per capita in Medford (see figure 9). Medford had 

the third fewest departing seats per capita of comparable and larger airports in the Pacific 

Northwest – only Pasco and Eugene had fewer seats per resident of their MSAs. Medford had 

fewer available departing seats per capita than Bend/Redmond, Boise, Portland, Spokane, and 

Seattle/Tacoma in 2011.

The Pacific Northwest average for available departing airline seats per capita was 4.0 as of 

calendar year 2011 (see figure 9 on previous page). Medford’s available departing seats per 

capita was less than half the regional average – meaning Medford is underserved when 

compared to its surrounding region. A 

good corollary airport to Medford is 

Redmond/Bend. It had an average of 

2.03 available seats per capita in 2011 -

15% above the Medford average despite 

a smaller population.

Another measure of the relative quality of 

local air service, and the air service 

market, is departing, or enplaned, 

passengers per capita. Medford is ahead 

of Bend/Redmond on that list for 2011, by one one-hundredth of a point – meaning Medford 

filled a higher percentage of its available departing seats than Bend/Redmond (see figure 10). 

Medford still lags behind most other major Northwest cities as of calendar year 2011 largely due 

to its lack of available seats. While the Northwest region enplanes 3.3 passengers per capita, 

Medford enplanes 1.48 passengers per capita - 55% behind the regional average. The reason 

for the disparity is the lower number of available seats per capita, illustrating, again, that 

Medford is underserved relative to its peers.

While it is clear the Rogue Valley International – Medford Airport is relatively underserved when 

compared to corollary cities in its own region, it is not easy to make the case for additional

service when meeting with airline planners. The challenge for the Airport is the statistical 

impression of low fares caused by specific leisure fares offered only by Allegiant. Medford is 

actually a high fare market, as illustrated in this proposal, although simple DOT data analyzed by 

airline planners would indicate otherwise.

FIGURE 10: Departing Passengers per Capita

Source: US DOT T100, US Census, Calendar Year 2011
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 20

Another Medford market deficiency is the seasonality of passengers. Medford sees huge 

seasonal swings in its passengers, with less pronounced swings in airline capacity. Looking at the 

seasonality of Medford passengers over the last three years, the market saw a summer peak 

between 122% and 124% of normal each summer from 2009 to 2011 (see figure 11). By contrast, 

the market sees a winter passenger lull between 75% and 83% of normal annualized passengers.

There are several reasons for this seasonality – but it, generally, cannot be blamed on airline 

available seats. Medford’s winter airline capacity runs about 20% below its capacity in summer 

– yet the seasonality swing spans almost 50%. Medford’s winter load factor has averaged 

around 73% over the last three winters, while its summer load factor has averaged near 90%.

The challenge in Medford, where outdoor attractions such as Crater Lake National Park, the 

Rogue River, and the Siskiyou Mountains draw large numbers of visitors in the summer, is getting 

the word out that the region is also a wintertime destination. The Airport simply does not have 

sufficient funding available for counter-seasonal marketing. One of the focuses of this proposal 

will be wintertime marketing to fill seats that are otherwise going empty.

FIGURE 11: Seasonality of Medford Passengers

Source: US DOT T100; January 2009 – December 2011
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 21

STRATEGIC MARKETING PLAN

The challenges in the Medford market are clear: an airline capacity cut of almost a third in the 

last three years that has precipitated large increases in the average fare, driving local 

passengers away from their Airport. While there is still enough local demand to fill the market’s 

seats at exceptionally high fares in the summer, the 

rest of the year sees lagging load factors and the 

threat of even greater air service cuts. The Airport 

must act now to ensure it grows passengers in offpeak periods.

In support of this goal, the Airport seeks a Small 

Community Air Service Development Grant in order 

to provide essential marketing and advertising support for all carriers and service offered. The 

marketing program will be targeted to two primary segments:

1) In-market residents who may not fully understand the availability of service, the breadth 

of non-stop destinations, and the availability of seats

2) Out-of-market visitors who don’t fully realize all there is to do in Medford and the Rogue 

Valley during the off-peak, non-summer months

Under the first part of this strategic plan, the Rogue Valley International – Medford Airport plans a 

wide-ranging marketing campaign, saturating the airport catchment area in southern Oregon

and northern California. The main local messages will include information about the breadth 

and depth of locally provided service, highlighting the availability of nine non-stop destinations, 

and the connectivity beyond the major hubs. The campaign will focus on television and print –

working with the media companies who are partners in this application.

Rough drafts have been created for some the advertising slated for newspaper and television 

runs. The first example is one of the newspaper ads that could potentially run as part of this 

campaign. The focus of this first example is to explain the breadth of service provided at the 

Airport, making special mention of the number of non-stop and one-stop destinations and the 

number of airlines serving the market (see figure 12 on next page).

“While there is still enough local 

demand to fill the market’s seats at 

exceptionally high fares in the 

summer, the rest of the year sees 

lagging load factors...”
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 22

Similarly, the local television campaign would 

initially focus on explaining the breadth of local air 

service currently available mainly by mentioning all 

the available non-stop cities by name. The specific 

example in this proposal includes the sound of flight 

attendants and gate agents announcing boarding 

and departure of flights to specific Medford nonstop destinations (see figure 13).

Under the second part of the strategic plan, the Airport will work with local partner agencies in 

this application including the Medford/Jackson County Chamber of Commerce, Southern 

Oregon Regional Economic Development, Inc., and the Medford Visitors Convention Bureau to 

FIGURE 12: Proposed Print Advertisement for the

Rogue Valley International – Medford Airport

FIGURE 13: Proposed Television Advertisement Script

for the Rogue Valley International – Medford Airport
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 23

promote inbound travel to the region – especially in non-peak months, outside the summer. This 

campaign will focus on tourism publications in cities that can generate more off-peak passenger 

demand to the Rogue Valley.

An example of an out-of-market print ad 

included in this proposal builds upon the new 

regional marketing campaign recently 

launched by the Medford Visitors Convention 

Bureau, now called Travel Medford. The new 

slogan is “great performances daily,” referring 

to the Oregon Shakespeare Festival in Ashland 

– about 20 minutes south of the Airport – which 

draws more than 400,000 out-of-market visitors 

to more than 260 productions each year (see 

figure 14). The campaign uses its slogan to talk 

about “performances” involving its wine 

industry, its outdoor attractions, and its food 

culture. This example lets people know they 

can experience all the region has to offer –

especially in the off-peak months – by flying 

through the Rogue Valley – Medford 

International Airport.

The Airport has already received commitments 

from its community partners for $15,000 in 

marketing funding for this project. The Airport 

is adding $5,000 in new funding to the local 

commitment, for a total community match of 

$20,000. The Airport is seeking $150,000 in 

federal funds to support this marketing and 

advertising campaign. The total project cost 

for the campaign will be $170,000.

With the help of its community media partners, including Southern Oregon Media Group, which 

publishes the Medford Mail-Tribune among other regional newspapers, and California Oregon 

FIGURE 14: Proposed Out-of-Market Print Advertisement

for the Rogue Valley International – Medford Airport
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 24

Broadcasting, which owns and operates the NBC affiliate for southern Oregon and northern 

California, a comprehensive marketing and advertising placement plan has already been 

developed. The plan includes significant time on NBC affiliated broadcasts along with 

significant newspaper space throughout the region. The Airport will also be able to “piggy 

back” on buys from its other community partners in tourism publications, to lower the cost of 

each individual piece of advertising. Other types of marketing will include new website 

materials for ease of booking and better awareness of specific flight schedules.

The Airport’s proposed implementation timeline for the project assumes the Department will 

award Small Community Grant Funding in September 2012 (see figure 15). Once the award is 

announced, the 

Airport will begin 

work with private 

marketing and 

advertising firms, 

along with its 

airlines, to finalize

the campaign 

materials and the 

placement plan.

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

Department and execute an agreement with a marketing and advertising firm to begin work. 

These milestones should be achieved by the end of October 2012. Additionally, the Airport will

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

of the marketing and advertising program.

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement Sepetmber 2012

Executive Grant Agreement with DOT October 2012

Executive Agreement with Marketing Firm October 2012

Develop Creative In Progress

Develop Comprehensive Placement Strategy In Progress

Launch Campaign November 2012 - December 2013

Sustain Campaign November 2012 - December 2013

Monitor Service Performance November 2012 - December 2013

Submit Grant Status Reports to DOT Quarterly Q4 2012 - Q4 2013

Close Grant January 2014

FIGURE 15: Marketing Program Implementation Timeline

Rogue Valley International – Medford Airport
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 25

PUBLIC/PRIVATE PARTNERSHIP

The Rogue Valley International – Medford Airport has put together a renewed public-private 

partnership for this application, with new members, and a new commitment to matching 

funding. The Airport understands it cannot market its service alone – it must have the partnership 

of many community organizations to effectively grow its passengers.

Among the partners in this application are the Southern Oregon Regional Economic 

Development and the Medford/Jackson County Chamber of Commerce. These partners will 

play vital roles in ensuring new service is a success. New to the coalition are its community 

media partners, including Southern Oregon Media Group, which publishes the Medford MailTribune among other regional newspapers, and California Oregon Broadcasting, which owns 

and operates the NBC affiliate for southern Oregon and northern California.

Specifics about each of the Airport’s partners are listed below, including their role in the effort to 

retain current air service and recruit additional air service.

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.

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 
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 26

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/Travel Medford

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.

Southern Oregon Media Group

The Southern Oregon Media Group owns and publishes newspapers and magazines all over the 

Rogue Valley. In all, it publishes on nine platforms, both on-line and in print. Its major 

newspapers, the Medford Mail Tribune and the Ashland Daily Tidings have circulation of tens of 

thousands of local households.

California Oregon Broadcasting

California Oregon Broadcasting, Incorporated (or COBi for short) is a family-owned broadcast 

franchise based in Medford, Oregon. COBi continues to be one of the only remaining familyowned television companies in the country. It is the longest, continuously independent 

broadcast group in the West and one of the three oldest in the country. Viewers in 12 counties 

in Oregon and California receive programming from Channels 5 and 2. The stations hold a 

number of television "firsts" in their over 50 year history. KOBI was the first VHF television station in 

Oregon. It was the first TV station in Medford to offer local color programming, the first station to 

operate in stereo, the first Medford station to employ electronic news gathering technology, and 

was the first Medford station with statewide microwave news coverage.
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 27

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 Proposal • June 2012 28

LETTERS OF SUPPORT
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 29
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 30
Rogue Valley International - Medford Airport • Small Community Air Service Development Grant Proposal • June 2012 31

CONCLUSION

Medford ranks as one of the most underserved markets in the Pacific Northwest. In 2011, 

Medford had just 1.77 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 4.0 in 2011. Medford’s available departing seats per capita were less than half the

average – and less than other, similar airports in the region, such as Redmond/Bend, Boise, and 

Spokane.

The result of the limited number of available seats in the market is higher than average fares. In 

2011, Medford has the dubious honor of having the highest network carrier average fare in the 

Northwest states of Oregon, Washington, and Idaho – at $212 each way. One reason for the 

high fares is that airlines have reduced Medford 

capacity by 30% since 2009. The result: they now 

have strong control over the amount they can 

charge passengers for each seat.

Medford is at the center of the quickly growing 

Rogue Valley region of southern Oregon and 

northern California. The two hour Medford Airport 

catchment area has added more than 200,000 new 

residents in the last decade – growing by a third in that time. Population growth has helped the 

Airport add new airline service. The Rogue Valley International – Medford Airport has recruited 

seven new routes in the last 15 years. But the current fare environment is driving down load 

factors and suppressing traffic. The Airport seeks to better market its available seats to help 

reverse this trend.

The Airport has never been a DOT recipient of a Small Community Air Service Development 

Grant. Medford now seeks the same kind of support that has been afforded to other Northwest 

cities such as Eugene, Idaho Falls, North Bend/Coos Bay, Kalispell, and Helena. The Airport will 

be an excellent steward of SCASD Grant funding, as it works to better market air service 

throughout its catchment area.

“...the current fare environment 

is driving down load factors 

and suppressing traffic. The 

Airport seeks to better market its 

available seats...”