# August 27, 2010 An Integrated Program of New Service Development via: Advertising/Marketing, Revenue Guaran tees, and Start-Up Cost Abatements In Support of New Delta Connection Service to/from Salt Lake City

Sponsor: Southwest Oregon Regional Airport North Bend, Oregon Theresa Cook, AAE, Executive Director Congressional Code: OR-004
Dun & Bradstreet Number: 139123686 

# SOUTHWEST OREGON REGIONAL AIRPORT NORTH BEND/COOS BAY, OREGON Proposal Under the Small Community Air Service Development Program Docket: DOT-OST-2010-0124 Before the Office of the Secretary of Transportation US Department of TransportationSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 2 TABLE OF CONTENTS

Section Page Letters of Support 3 Summary Information 10
Introduction 14 Primary Objectives of Proposal 16 Executive Summary 17 Detailed Explanation of Proposal 21 Expected Results 23 Operational Issues With Current Service 29
Current Air Service 34
Air Service Deficiencies 40 Extenuating Factors Affecting Air Service 44 Availability of Alternate Airports 46
Use of Local/Federal Funds 47 Public/Private Partnerships 48 Implementation Timeline 51 Air Service Advisory Groups 52 Local Air Service Development Efforts 53 In-kind Services from the Community 54
Performance Measures 55 Legal Sponsor 56
Financial Controls 57
Return on Investment 58 DOT Exit Strategy 59
Alternate Plan 60 Airport Information 61 Community Profile 62 Comparison to Other Commun ities in Region 68
Conclusions 74Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 3 LETTERS OF SUPPORTSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 4Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 5Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 6Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 7Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 8Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 9Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 10 SUMMARY INFORMATION

Small Community Air Service Developmen t Program, Docket DOT-OST-2010-0124



### A. Applicant Information

Not a Consortium Community now receives EAS subsidy
Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, date of Grant: ________September 6. 2006

_________ expiration date of Grant: _______August 8, 2009

____



### B. Public/Private Partnership

Public:

1. Southwest Oregon Regional Airport
2. Coos County Airport District
3. City of Coos Bay
4. City of North Bend
5. Coos County
6. Curry County
7. Douglas County
8. South Coast Development Council, Inc.
9. CCD Business Development Corporation
10. International Port of Coos Bay
11. Bay Area Tourism and Promotions Bureau
12. Southwestern Oregon Community CollegeSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 11 Private:
1. Bandon Dunes Golf Resort
2. Bay Area Chamber of Commerce
3. Coos Bay Visitor Information Center
4. Bay Area Hospital
5. Friends of New and Sustainable Business (FONSI)
6. Bandon Chamber of Commerce
7. Coquille Chamber of Commerce
8. Lakeside Chamber of Commerce
9. Myrtle Point Chamber of Commerce
10. Reedsport/Winchester Bay Chamber of Commerce
11. CEDCO
12. Campbell Group (Menasha)
13. Sause Brothers



### C. Project Proposal

Marketing Upgrade Aircraft New Route
Personnel Increased Frequency Low Fare Service
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (Specify)
Revenue Guarantee Launch New Carrier Start Up Cost Offset First Competitive Service Study Secure Additional Carrier



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other: MALSAR Approach LightingSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 12 E. Project Cost

1. Federal amount requested: $ 500,000
2. State cash financial contribution: $ 0
3. Local cash financial contribution: $ 50,000 3a. Airport cash funds: $ 0 3b. Non-Airport cash funds: $ 50,000
3c. Total local cash funds: $ 50,000
4. TOTAL CASH FUNDING: $ 550,000
5. Local funds contributed from already existing Programs of projects included in line 3c: $ 0
6. Local funds contributed from new commitments
Or new resources included in line 3c: $ 50,000
7. Airport In-Kind contribution: $ Various Description: Fee waivers: landing and terminal fees
8. Other In-Kind contribution: $ Various Description: Advertising and marketing match money
9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined
10. TOTAL PROJECT COST: $ 550,000



### F. Enplanements at Airport

2000: 29,034
2001: 28,722
2002: 30,036
2003: 30,768
2004: 31,188
2005: 35,956
2006: 35,571
2007: 37,918
2008: 31,030
2009: 21,240Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

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

This application was made available to the State on ______. Program is subject to review, but has not been selected by the State. Program is not covered.



### H. Is Applicant Delinquent on any Federal Debt?

NoSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 14 INTRODUCTION

In the last two years, the South Coast has seen more extreme seat and flight cuts than almost any other market in the nation. Seats are down almost 50%, while flights are down more than 40% in that time period. The Airport gained a new airline during that period – with United Express/SkyWest entering the market. But just four months after United landed in North Bend, the Airport’s only other carrier, Horizon Air, pulled out.

A major reason for Horizon’s departure from the South Coast market was the retirement of its fleet of smaller, 48-seat Dash 8-200 turboprops. Th is aircraft was perfectly suited for markets such as North Bend – offering higher frequency with fewer seats per flight on the route to Portland.
Horizon’s small market aircraft is now the 76-seat Q400 turboprop – which is not the right aircraft for the more frequent service required in a market such as North Bend – Portland.

United/SkyWest quickly added Portland service when Horizon left, but it operates just one flight a day on the route. When service shifted to the United code, passengers in North Bend lost access to the 40 one-stop Alaska/Horizon destinations at Portland, trading it for just nine one-stop destinations offered by United at Portland. Th is lack of connectivity made Portland service unattractive for all but local passengers – reducing total conn ecting passengers by almost 70% between North Bend and Portland. This has created hardship not only for those regional travelers who utilized the Airport for vacations, but additionally for those business people
who were able to travel to Portland in the morning for meetings and return home to Coos County by evening. Flight schedules currently ou t of the Airport for Portland require at least one overnight stay. The logistical and economical hardship has stifled business and leisure travel.

Moreover, current air service ha s been plagued by operational problems and delays. During July of 2010, Airport data shows that 71% of all flig hts out of the Airport in July departed at least 14 minutes after scheduled departure time. Of th e 124 scheduled departures during the month, 88 departed late. 

## “In the last two years, North Bend/Coos

Bay has seen more extreme seat and flight cuts than almost any other market
in the nation.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 15 The Airport has indentified a need for better conne ctivity now that United is the only carrier in
the market. While service to San Francisco and Portland on the United code covers the west coast as well as any airline could as a sole so urce provider, the market is missing eastbound connectivity through a major hub to the east of North Bend. The Airport believes service provided by a Delta Air Lines regional affiliate to the Salt Lake City hub would provide the best possible eastbound connectivity, and the strongest possible competition for United Express
service in the market.

While the Airport has mined very specific data, sh owing the route will be successful, Delta will require some insurance to ensure it doesn’t lose money. While the community has been successful in raising part of this funding, a Small Community Grant will be necessary to bring competitive service to Coos County communities, and the larger region covering the southern Oregon coast.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 16 PRIMARY OBJECTIVES OF PROPOSAL

Objectives for Program:

 Increase connectivity along the southern Oregon coast

 Create better opportunities for business and inbound leisure connections

 Recruit additional network service to the market

 Increase the use of local air service

 Decrease average fares at the Southwest Oregon Regional Airport

Means to Achieve Objectives:

 Continue discussion with targeted carrier s about additional market opportunities

 Establish a record of success via a second service provider with expanded connectivity to new hubs

 Develop risk mitigation package to secure a second carrier

 Develop local marketing package to offer to interested carriers

Course of Action to Support Means:

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

 Initiate marketing and advertising ca mpaign to publicize new air service

 Work with local business partners to ensure new service is successfulSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 17 EXECUTIVE SUMMARY

Despite being the only airport on the Pacific Nort hwest coast with scheduled service on aircraft with more than nine passenger seats, the Southwest Oregon Regional Airport has seen huge cuts in service in the last two years. The Airport has lost 74% of its daily flights as it has seen flights cut from 7.8 departures per day to just three departures per day since the summer of 2008. At the same time, the number of available seats being offered by airlines in the market has dropped by 80%, as Horizon Air left the market shortly after United Express/SkyWest began service.

Despite service cuts, the Southwest Oregon Regional Airport remains one of the few in the country that has no other air service options within a two hour drive. The region is isolated by it topography – with the Pacific Ocean to the west and the Pacific Coast Range of mountains to the east.

The Southwest Oregon Regional Airport catchment area includes the area defined by the US Census Bureau as the North Bend/Coos Bay Metropolitan Statis tical Area (MSA), along with other regions where the Airport is the nearest with commercial air service – including all areas of th e Oregon coast from Florence in the north to the California border in the south (see Figure 1). This catchment area is home to 108,261 people. There are no true competing airports within two hours of North Bend/Coos Bay. The Southwest Oregon Regional Airpor t catchment area covers more than half of the Oregon coast, bu t Airport is classified by the FAA as a non-hub due to its low – and declining – passenger numbers.

All current air service at the Southwest Oregon Regional Airport is provided by SkyWest Airlines, doing business as United Express. SkyWest/United Express offers direct daily flights from North Bend/Coos Bay to its hub in San Francisco and its focus city in Portland, with two flights per weekday to San Fran cisco, and one flight per weekday to Portland (see Figure 2). All service is provided with 30-se at Embraer 120 Brasilia turboprop aircraft – the largest aircraft serving any airport along the Pacific Northwest coastline. 

### FIGURE 1: The Southwest Oregon Regional Airport Catchment AreaSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 18 United Express/SkyWest has been the Airport’s sole commercial carrier since October 2008. Just three months after SkyWest entered the market with non-stop service to San Francisco, Horizon Air terminated its longstanding nonstop service from North Bend to Portland. SkyWest later filled this gap to Portland, but its lack of true connectivity outside of a handful of one-stop destinations on United has significantly impacted the performance of the Portland
route.

A major reason for Horizon’s departure from
the North Bend market was the retirement of its fleet of smaller, 37-seat Dash 8-200 turboprops. This aircraft was perfec tly suited for markets such as North Bend. The aircraft offered higher frequency with fewer seats per flight. Horizon’s
small market aircraft is now the 76-seat Q400 turboprop – which is not the right kind of aircraft for the more frequent service that is required in markets such as the South Coast.

Despite these service changes, the North Bend/Coos Bay market has been able to grow
over the last decade. Between 2000 and 2008, passenger traffic in the market grew by 21%, from an average of 80 passengers per day each way in 2000 (PDEW) to an average of 97 passengers per day each way (PDEW) by 2008 (see Figure 3). The South Coast market was able to grow in this period despite average one way fares that went up by 29% - from $ 142 each way on average to $183 each way on
average.

Still, between 2008 and 2009 the North Bend market saw a large passenger drop. In just the last year the market lost 35% of its passengers – as the market shrunk to just 63 passengers per day 

### FIGURE 2: Current Service at the Southwest Oregon Regional Airport, August 2010Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 19 each way (PDEW) (see Figure 3). A major re ason for this drop was the loss of Horizon’s connectivity at the Alaska/Horizon hub in Portla nd. When service shifted to SkyWest/United Express, the frequency was cut from three flights per day in each direction to just one. At the same time, with the shift to a new airline, passe ngers on the South Coast lost access to the 40 one-stop Alaska/Horizon destinations at Portland, trading that for the nine one-stop destinations offered by United at Portland. This lack of conne ctivity made Portland service unattractive for all but local passengers – reducing total connecti ng passengers by almost 70% between North
Bend and Portland.

It is clear that the market performed best when both United Express and Horizon offered service at the same time – for a period of four months in 2 008. During this period fa res were still relatively high, but the increased connectivity offered by two airlines to two separate networks more than made up for higher fares. The Southwest Oreg on Regional Airport seeks to re-create this situation, by encouraging a second network carrier to enter the market alongside United Express
service. 56,490 56,120 58,770 57,990 58,240 69,290 66,270 69,220 68,400

44,780 1,770 1,700 1,680 2,110 1,750 2,450 2,480 2,440 2,280

1,470 79.8 79.2 82.8 82.3 82.2 98.3 94.2 98.2 96.8

63.4

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 PDEW International Domestic

$142

$135 $133 $147 $160 $161 $181 $178 $183

$154 

### FIGURE 3: O&D Passengers and Average One Way Fares at North Bend CY2000

– CY2009; Source: US DOT Table DB1ASouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 20 The Airport has indentified a need for better eastbound connections. While service to San
Francisco and Portland on the United code covers the west coast as well as any airline could, the market is missing eastbound connectivity th rough a major hub to the east of the South Coast. The Airport believes service provided by a Delta Air Lines regional affiliate to the Salt Lake City hub would provide the best possible eastbound connectivity, and the strongest possible competition for United Express service in
the market.

The Airport must offer Delta some kind of risk mitigation to ensure against a major loss in the start-up phase of new service. While the Airpor t has mined very specific data showing the route will be successful, Delta will require some insurance to ensure it doesn’t lose money. While the community has raised part of this funding, a Small Community Grant will be necessary to bring competitive service to North Bend, Coos Bay, and the larger region covering the southern Oregon coast. 

## “The Airport believes service provided by a Delta Air Lines regional affiliate would provide the best possible competition...”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 21 DETAILED EXPLANATION OF PROPOSAL

The Southwest Oregon Regional Airport proposes to use a combination of locally raised funding, including fee waivers and marketing support, in conjunction with federal Small Community Air Service Development Grant funding in support of th e addition of new servic e on a Delta Air Lines regional affiliate to Salt Lake City (see Figure 4). This service is designed to provide better connectivity to the east of the market, as all of the South Coast’s current service goes directly north and south from the community.

The Southwest Oregon Re gional Airport seeks a Small Community Air Service Development Grant, in the amount of $500,000, to help mitigate Delta’s initial monetary risk in serving Salt Lake City. Additionally the Airport has committed to fee waivers in support of the new non-stop service, and additional marketing
cash and in-kind contributions to advertise the new service on the Oregon coast.

The Airport proposes to begin service with one daily flight on the route in each direction, although the service pattern could be expanded to two daily flights – especially in the busy summ er season. The route between North Bend/Coos Bay and Salt Lake City would cover 655 miles in a flight time of one hour and 25 minutes, on average, assuming an average groundspeed of 400 knots on a Canadair CRJ200 regional jet aircraft seating 50 in an all-economy layout (see Figure 5).

Origin Destination Departs Arrives Block Time Equipment
OTH SLC 11:00am 11:50am 1:50 CRJ SLC OTH 1:00pm 3:50pm 1:50 CRJ

The proposed schedule aims to connect North Bend/Coos Bay to Delta’s largest connecting banks at Salt Lake City, in order to ensure optimum connection options for travelers heading 

### FIGURE 5: Proposed Flight Schedule: North Bend

– Salt Lake City FIGURE 4: Proposed Route: North Bend

– Salt Lake CitySouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 22 beyond Salt Lake City (see Figure 5). The flight times do not take into account upper level winds or weather. For the purposes of this schedule, flights are designed to connect into the South Coast from the mid-morning inboun d bank into Salt Lake City. Flights would then depart the South Coast at midday, arriving in Salt Lake City in time to connect to the late afternoon bank. This schedule would not require an overnight aircraft at the Airport – making it more attractive to the airline. Moreover, this schedule would allow fo r inbound visitors to go directly to their hotels and meetings, and then, at normal check-out time , go directly back to the Airport to depart.

The Southwest Oregon Regional Airport proposes th at a relatively small portion of the cost of starting the new service be supported up-front with federal funds from the Small Community Air Service Development Program. None of the Grant award will go toward immediate start-up
costs – those costs will be covered by other sources. The federal share of the project will be $500,000 – all
of which will be used for the airline revenue guarantee.

The Southwest Oregon Region al Airport projects that the bulk of the grant money be available to provide
insurance in case the Delta Connection affiliate carrier incurs a loss during the first two year s of operations. With demand for eastbound connecting service in the North Bend/Coos Bay market, and demand for connectivity over a new airline network, the Airport projects the new flights will be profitable within one year.

If, for some unforeseen reason, service is not commenced in a timely manner by a Delta Connection carrier, the Southwest Oregon Regional Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help another carrier launch a currently unserved route. Among the options that would be considered is Horizon Air service to Seattle, San Jose, Los Angeles, or Sacr amento; United Express service to Denver or Los Angeles; US Airways service to Phoenix; or Frontier Airlines service to Denver.

Should these options, for an unforeseen reason, not be available for new service at the Southwest Oregon Regional Airport, the Airport wi ll continue its discussions with all other carriers that can provide additional seat s to a hub not currently served. 

## “This schedule would not require an overnight aircraft at the Airport – making it
more attractive to the airline.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 23 EXPECTED RESULTS

Route Specific Data: North Bend/Coos Bay – Salt Lake City

Travelers in southwest Oregon have proven that they will support local air service when it goes to the right destinations and has hub connections to the right cities. Service at the Southwest Oregon Regional Airport performe d best when the market had two carriers. The Airport expects that will be the case with the addition of Delta-coded service to Salt Lake City.



### FIGURE 6: One

‐ Stop Connections Over Salt Lake City On Delta Air Lines and its SkyTeam Partners, August 2010Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 24 Delta’s Salt Lake City hub would give South Coast travelers one-stop access to a number of markets in which there is little current competition. Moreover, Salt Lake City, itself, ranks as one of the South Coast market’s top 20 origin and destination passenger markets, as of the year ended first quarter 2010. Delta Connection service from North Bend to Salt Lake City would provide connections to 52 markets beyond SLC, from Los Angeles to Mexico City and from New York/Newark to Paris, France (see Figure 6).

The North Bend/Coos Bay market currently produc es 35.1 unstimulated origin and destination passengers per day each way (PDEW) to destinations that naturally connect over the Delta hub at Salt Lake City – not taking into account any st imulation from additional non-stop service. As of the year ended first quarter 2010, the South Coast produced 25,648 total origin and destination passengers that would flow over Salt Lake City on Delta (see Figure 7).

In all, the South Coast – Salt Lake City route has the potential to capture 56% of the current passengers flying in and out of the Southwest Oreg on Regional Airport, itself, without taking into account any passenger leakage (see Figure 7). Le akage is significant – especially to airports such as Medford and Eugene – due to the lower fares, more frequent flights, and the lack of the same kind of weather delays found at those airports, especially to destinations to the east of the
market. Salt Lake City 56% Other Hubs 44%

Salt Lake City 60% Other Hubs 40%

North Bend O&D Revenue $7,002,120 100% Revenue Flowing Over Salt Lake City $4,215,340 60% North Bend O&D Passengers 45,882 100% Passengers Flowing Over Salt Lake City 25,648 56% 

### FIGURE 7: North Bend O&D Passengers and Revenue Flowing Over Salt Lake City On Delta Air Lines and its SkyTeam Partners, YE1Q10; Source: Sixel Consulting Group Hub BuilderSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 25 At the same time, the Salt Lake City hub could capture 60% of the current revenue generated at the Southwest Oregon Regional Airport. Currently , Delta markets from the South Coast that flow over the Salt Lake City hub generate more than $4.2 million in annual airline revenue, or $5,774 in revenue per day each way (RDEW) to and from the Southwest Oregon Regional Airport (see Figure 7).

The Delta hub at Salt Lake City has the potential to capture large portions of traffic in the majority of the South Coast’s largest origin and destination passenger markets. The Salt Lake City hub is especially well-positioned to capture traffic traveling to destinations in the intermountain west, the southwest, the Midwest, and along the east coast – including large markets such as Los Angeles, which produces 7.2 passengers per day each way (PDEW) as of the year ended first quarter 2010; Las Vegas, which produces 3.0 PDEW; Phoenix, which produces 2.5 PDEW; Washington/Baltimore, which produces 2.1 PDEW; Chicago, which produces 2.0 PDEW; and Denver, which also produces 2.0 PDEW as of the year ended first quarter 2010 (see Figure 8).

5,280 2,190 2,120 1,860 1,560 1,480 1,470 1,090
860
770
760
540
540
460
380
350
320
310
300
270 7.2
3.0
2.9
2.5
2.1
2.0
2.0
1.5
1.2
1.1
1.0
0.7
0.7
0.6
0.5
0.5
0.4
0.4
0.4
0.4

0 1000 2000 3000 4000 5000 Los Angeles Basin - 1 Las Vegas - 2 San Diego - 3 Phoenix/Mesa Area - 4 Washington/Baltimore - 5 Chicago Area - 6
Denver - 7 New York/Newark - 8
Orlando/Sanford Area - 9
Dallas/Ft Worth Area - 10
Boston - 11 Minneapolis - 12 Philadelphia - 13
San Antonio - 14
Tucson - 15 Salt Lake City - 16
Houston Area - 17
Honolulu - 18 Kansas City - 19
Nashville - 20 Annual Passengers PDEW 

### FIGURE 8: North Bend’s Top 20 O&D Passenger Markets Over Salt Lake City On Delta Air Lines and its SkyTeam Partners, YE1Q10; Source: Sixel Consulting Group Hub BuilderSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 26 It is likely new non-stop service to a hub to th e east of North Bend/Coos Bay would stimulate the passenger market significantly, with a projected stim ulation rate in its market of, at least, 100% to the eastern markets that would connect better over Salt Lake City than over either San Francisco or Portland. This gives the Airport reason to be optimistic that the service can be selfsustaining in as little as 12 mo nths from the start of flights.

The Southwest Oregon Regional Airport’s top eight revenue markets that would flow over Salt Lake City on Delta each produce more than $300 in RDEW (see Figure 9). The top potential North Bend/Coos Bay revenue market over Delta’s Salt Lake City hub is Los Angeles, producing more than $1,050 in revenue per day each way (RDEW) as of the year ended first quarter 2010. San Diego ranks as the South Coast’s second-large st revenue market that Delta would access, generating $465 in RDEW as of the year ended first quarter 2010.

$768,430 $339,510 $316,420 $270,170 $235,380 $228,850 $226,490 $221,700 $159,070 $129,330 $120,290 $97,880 $97,580 $74,710 $62,570 $62,390 $58,380 $57,630 $57,480 $56,290 $1,053 $465 $433 $370 $322 $313 $310 $304 $218 $177 $165 $134 $134 $102 $86 $85 $80 $79 $79 $77

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Los Angeles Basin - 1 San Diego - 2 Washington/Baltimore - 3 Chicago Area - 4
Denver - 5 Las Vegas - 6 Phoenix/Mesa Area - 7

New York/Newark - 8
Dallas/Ft Worth Area - 9
Boston - 10 Orlando/Sanford Area - 11 Minneapolis - 12 Philadelphia - 13
San Antonio - 14 Salt Lake City - 15

Indianapolis - 16
Atlanta - 17 Kansas City - 18
Nashville - 19
Houston Area - 20 Annual Revenue
RDEW 

### FIGURE 9: North Bend’s Top 20 O&D Revenue Markets Over Salt Lake City On Delta Air Lines and its SkyTeam Partners, YE1Q10; Source: Sixel Consulting Group Hub BuilderSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 27 The Delta hub at Salt Lake City is in a unique po sition to generate additional traffic and revenue to any number of the top origin and destinatio n markets from the Sout hwest Oregon Regional Airport. Delta service from North Bend to Salt Lake City has the potential to capture as much as $4.2 million in current airline revenue, not taki ng into account any revenue stimulation through additional non-stop service.

Should it launch service between the South Coast and Salt Lake City, Delta would be competing in markets that have current fares averaging $164 each way, which is $5 higher than the current average one way fare in the South Coast market of $159 (see Figure 10). Horizon would provide much-needed competition for North Bend/Coos Bay catchment area residents traveling to most of the market’s top destinations, where fares top the regional average.

Examples include San Diego, where the average roundtrip fare was $320 as of the year ended first quarter 2010; Washington/Baltimore, where the average roundtrip fare was $406 as of the year ended first quarter 2010; Chicago, where the average roundtrip fare was $365 as of the year ended first quarter 2010; New York/Newark, where the average fare was $407 roundtrip as of the year ended first quarter 2010; Dallas/Ft. Worth, where the average roundtrip fare was $413 as of the year ended first quarter 2010; and Minneapolis/St. Paul, where the average roundtrip fare was $363 as of the year ended first quarter 2010 (see Figure 10). $146 $104 $160 $122 $203 $183 $160 $203 $140 $207 $170

$181 $181 $162 $142 $179 $176 $174 $192 $213

$0 $50 $100 $150 $200 Los Angeles Basin - 1 Las Vegas - 2 San Diego - 3 Phoenix/Mesa Area - 4 Washington/Baltimore - 5 Chicago Area - 6
Denver - 7 New York/Newark - 8 Orlando/Sanford Area - 9 Dallas/Ft Worth Area - 10
Boston - 11 Minneapolis - 12 Philadelphia - 13
San Antonio - 14
Tucson - 15 Salt Lake City - 16
Houston Area - 17
Honolulu - 18 Kansas City - 19

Nashville - 20 Average Over SLC: $164 

### FIGURE 10: North Bend’s Average One Way Fares Over Salt Lake City On Delta Air Lines, YE1Q10; Source: Sixel Consulting Group Hub BuilderSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 28 The only real chance at fare relief in South Coast markets that flow over Salt Lake City on Delta is for an additional airline to offer competing service. Delta’s non-stop eastbound service would go a long way towards providing enough competition to bring fares in-line with those found
in other western markets.

The Airport believes there is sufficient passenger
traffic and revenue that would flow over Delta’s Salt Lake City hub to make the service profitable.
Delta would not be forced to offer rock-bottom fares at the South Coast to be competitive – even fares slightly higher than those found in other
western markets would be considered low for local South Coast travelers. The Southwest Oregon Regional Airport believes in the North Be nd/Coos Bay – Salt Lake City market, and must develop a risk mitigation package to ensure a Delta Connection carrier can enter the market without a large financial risk at service outset. 

## “Delta’s non-stop eastbound service would go a long way towards providing enough competition to bring fares in-line with those found in
other western markets.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 29 OPERATIONAL ISSUES WITH CURRENT SERVICE

Current air service at the Southwest Oregon Regional Airport, provided by SkyWest Airlines, operated as United Express, has been plagued in the summer of 2010 by operational problems and delays. These delays have caused many of the Airport’s major users to consider sending their passengers to fly in and out of the Eugene Airport – 106 miles away over a range of mountains. The Airport believes service must be diversified – with service operated by more than one carrier, to additional hubs – to reduce the Airport’s dependence on the weather along the
west coast.

During July of 2010 the Southwest Oregon Regional Airport has seen major delays on many of its flights to both San Francisco and Portland. Airport data shows that 71% of all flights out of the Airport in July departed at least 14 minutes after scheduled departure time (see Figure 11). Of the 124 scheduled departures during the month, 88 departed late.

856 1128

850 918 1007 1113

1034 1123

1010

904 1033 1029 1023

932 949 914 947 903 855 1106

900 1030 1021 1033

958 1048 1039 1147

1018 1016 1034 1343 1339 1333 1725

1324 1437 1525 1600 1659

1413 1525

1432 1504

1344 1336 1628

1325 1358 1331 1453

1348 1501 1450 1613 1611

1447 1501 1537

1458 1437 1459 1733 1743 1750 1727 1723 1716 1835

1718 1712 1822 1840 1850

1731 1741 1726 1703 1745 1730 1801

1718 1725 1919

1709 1726 2026

1820

1745 1706 1736 1749 2006 2008 2007 2010 2005 2010 2009 2040 2009 2008 2137

2020 2013 2008 2010 2249

2012 2017 2013 2015 2013 2006 2030 2009 2008 2015 2020 2007 2006 2015 2010

800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6504 Sch'd Departure

6504 Actual Departure

6909 Sch'd Departure

6909 Actual Departure

6164 Sch'd Departure

6164 Actual Departure

6810 Sch'd Departure

6810 Actual DepartureOTHJULYDEPARTURETIMES 

### FIGURE 11: On

‐ Time Performance of North Bend Departures, July 2010; Source: Southwest Oregon Regional AirportSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 30 The two earliest departures of the day from the Southwest Oregon Regional Airport had the worst on-time performance. The 8:55am scheduled departure and the 1:35pm scheduled departure each had 28 of 31 flights depart North Bend late (see Figure 11). These delays are mostly due to weather in San Francisco, which has been socked in with low clouds for much of the summer of 2010, causing ATC backups for near by markets. The Airport would benefit from having another flight opti on through another hub.

On the Portland route, the flight is often delayed du e to a late arriving aircraft. The aircraft that operates between the Southwes t Oregon Regional Airport and Portland arrives from San Francisco. When it arrives late, the Portland flight is delayed, as well. The de-linking of service from San Francisco is a major priority of the Airport and the community.

The region’s world-renown ed golf club, Bandon Dunes, accounts for an estimated 80% of the enplanements at the Southwest Oregon Regional Airport in the summer. Customers have expressed extreme dissatisfaction with the San Francisco service. If another alternative is not created it is likely Bandon will change its curre nt marketing strategy, br inging players into the area through the airport in Eugene, instead of using the Southwest Oregon Regional Airport. Bandon Dunes spends hundreds of thousands in marketing of air service each year. If Bandon Dunes preferred airport became Eu gene airport, North Bend/Coos County could eventually lose
all current air service.

Below are some recent comments from Bandon Dunes visitors who used the air service provided at the Southwest Oregon Regional Airport. Ma ny have been upset at the delays, and other operational problems. These comments illustrate wh y it is so important to the community that an alternative service be offered. While many will st ill use the flights to and from San Francisco and Portland, the community needs another reliab le hub to handle demand from returning customers who have been upset with service through SFO on the United code.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 31 Comments from Bandon Dunes Visitors, July and August 2010:

“You must do something to improve airline service into North Bend. it is the biggest headache and will stop people from coming to the resort.”

“Coming from the east coast it seems impossible to get there. Coupled with a 4 + hour delay leaving the airport and missing all connections on the way home, a great experience was tempered. I would like to come back and would appreciate your advice as to the best way to get there. San Francisco does not appear to be the option.”

“Unfortunately, getting to Bandon Dunes is an immense problem and I believe it is imperative that you take steps to remedy a situation that is becoming increasingly more intolerable. I know you're very aware of the problem so I won't dwell on it but I cannot overemphasize the seriousness of the quandary. As you know, several of us departed the resort at 7:15 Monday morning (because we were unable to get out the day before) to make a 9:00 United Express flight to San Francisco which ended up being delayed four hours until nearly 1:00. Ne edless to say, the situation was horrendous & players from Cleveland & Pittsburgh had to stay overnight in SF! We are willing to give it another year but I hope you're taking this issue seriously.”

“Have you approached Delta in proposing serv ice to North Bend out of their Salt Lake
hub?”

“The flight was full, so SkyWest had to remove luggage and of 13 of these guests arrived without luggage. Some were given a $250 voucher from SkyWest. SkyWest was reportedly going to attempt to re-route the luggage to SFO so it could arrive on the 7pm flight to North Bend.”

“The only major problem was the air transportati on. I know that it is something that is out of the resort's control, but we had to drive to Eugene to make it to San Francisco because our flight was canceled. The resort would benefit from having additional flights in and out of major cities throughout the day to keep this from happening.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 32 “I have been to Bandon four times and this will be my last trip until the transportation situation is substantially improved. The United Express service into North Bend is the worst I have ever seen and completely ruined the trip for all 8 of us. We arrived home almost a day late. United Express does not understand this market and so long as they are the carrier, the business at the resort will suffer. I have no choice but to tell everyone I know to avoid the place until the travel situation improves. I was flying from Chicago, a pretty easy place to fly anywhere, by the way.”

“Commercial flights out of Coos Bay are ridi culous. Unbelievable that you can't play a round and fly out the same day to anywhere except Portland. It was upsetting that our group had to stay an extra night without pl aying golf also requiring an addition day away from work.”

“Our flights out of OTH were all messed up AGAIN. I know you probably can't do anything about it, but it is a big turn off. We might be driving from Portland again to avoid OTH/SFO, or even headed to Pinehurst instead next year.”

“You guys really need to know that UAL is killing you (our departure time from SFO was changed 9 times in 8 months requiring changed tee times). Golf bags taken off flights due to overweight plane? Isn't it fairly obvious that guys flying to North Bend/Coos Bay are going to Bandon?”

“It would be helpful if Bandon could exert some influence over United Airlines. They cancelled our flight from North Bend to Portland and did not advise us. We were lucky to figure it out before arriving, but had to drive five hours each way. Getting to the resort is the greatest barrier to returning.”

“Our group has come annually for 6 years. We will stop. The transportation arrangements
from San Francisco are tortuous.”

“Not sure what you can do about this but the airline service with Unite Express in and out of SFO was a complete mess. Each way we were told that due to weight and wind several people would have to take another flight. It goes without saying that Bandon is not the easiest place to fly into and with the added pressure of the airlines makes the trip
all the more difficult.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 33 “You should recommend that pe ople not use United Airlines or the North Bend Airport. United's planes are too small to accommodate golf bags. The time at Bandon was a wonderful time for us. The bookend aggravation of our experience with United makes it difficult for me to consider a return trip or to pass on to others the OUTSTANDING and unequivocal recommendation to friends wi thout a severe warning to be concerned about United Airlines Operation.”

“United threw us off the plane due to too much weight. I had to charter a limo for $325 to get to Portland. You should have someone from Bandon there for each departure and then get them to Portland, Eugene or find them a car to rent. There were no cars either. We will not come back to Bandon until you get that fixed. United operates North Bend like a third world country airport.”

“Great venue, very difficult to get to. The one flight to SFO was delayed and all of us
missed our connections. Took me 27 hours to get home. I will not recommend the resort to anyone.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 34 CURRENT AIR SERVICE ALONG THE SOUTH OREGON COAST

All commercial air service at the Southwest Oregon Regional Airport is currently provided by SkyWest Airlines, operated as United Express, which offers direct daily flights from the South Coast to its hub in San Francisco and its focus city in Po rtland. United Express has been the Airport’s sole commercial carrier since October 2008 – only three months after it entered the market – following Horizon Air’s termination of its longst anding nonstop service from the South Coast to
Portland.

United Express’ tenure at Southwest Oregon has been accompanied by a sharp falloff in passenger demand. In 2009 alone, the number of South Coast travelers plummeted by one-third over the previous year (see Figure 12). The descent has continued in 2010. Among the factors associated with and contributing to the Airport’ s declining stream of passengers is reduced seat capacity, reduced frequency of service, higher airfares, poorer connectivity beyond immediate hubs, and increased “leakage” of area travelers to adjacent airports.

56,490 56,120 58,770 57,990 58,240 69,290 66,270 69,220 68,400

44,780 1,770 1,700 1,680 2,110 1,750 2,450
2,480 2,440 2,280

1,470 79.8 79.2 82.8 82.3 82.2 98.3 94.2 98.2 96.8

63.4

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 PDEW International Domestic 

### FIGURE 12: O&D Passengers at Southwest Oregon Regional Airport CY2000

– CY2009; Source: US DOT Table DB1ASouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 35 Although these trends coincide with a nationwide downturn in domestic air travel, macro-level economic forces are secondary in explaining the precipitous slide in passenger demand at North Bend. The Airport’s current passenger declines more fundamentally relate to the current structure of its air service, specifically, the ab sence of competition among carriers. To bring passengers back, Southwest Oregon Regional Airport must have an additional competing carrier, one with a strong position in a market currently not served by the Airport. The best solution would be new service from a United Express rival that could establish a direct link to a major eastbound hub. This service would answer the specific needs of both the leisure and business traveler. The Airport believes the success of this venture is sustainable, in face of major industrial opportunities scheduled to occur on the southern Oregon Coast which will require future transport of hundreds of future technical employees into the Coos County area, in
addition to the current tourism and business loads.



### Current Passenger Traffic in the North Bend/Coos Bay Market

Following years of maintaining and even growing its commercial air service, the Southwest Oregon Regional Airport has seen its passenger levels drop significantly since 2008. Comparing the first quarter of 2008 with the first quarter of 2010, the total number of onboard passengers at the Airport dropped 4%. In that same period, the total number of available seats declined by 36%, and the number of flights fell 26% (see Figure 13).

18,611 24,938 31,376

25,715

20,321 24,609 34,280

22,087 20,850 21,660 21,840

16,680 15,750 13394 19742 23874

18423

15047 18762 24614

11905

8938 11748 14388

9276 8279

0 5000 10000 15000 20000 25000 30000 35000

2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 Available Seats Onboard Passen g ers 

### FIGURE 13: Available Seats and Onboard Passengers at Southwest Oregon Regional Airport First Quarter 2007

– First Quarter 2010; Source: US DOT T100 DataSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 36 These declining figures are not spread evenly
between the South
Coast’s two routes. In fact, service to San Francisco, even
in the midst of an
economic recession, has held steady and even grown. Total passengers on the
North Bend - San
Francisco route grew from 2,276 in April 2009 to 2,504 in April 2010 – an increase of 10 percent in one year (see Figure 14). Correspondingly, loads factors also climbed, from 63 percent in April 2009 to 73 percent in April
2010.

The Portland route, on the other hand, accounts fo r all losses at the Airport. Total passengers on the North Bend - Portland route plummeted from 5,436 in April 2008 to just 604 in April 2010 – a fall of 89 percent in two years (see Figure 15). In that same period, total seats plunged by three-fourths and
load levels fell from 78 percent to 34 percent. This freefall began as soon as
Horizon ended its operations on the
South Coast in midOctober 2008, 2,970 3,720 3,540 3,690 3,540 3,390 3,510 3,240 3,720 3,600 3,630 3,570 3,600 3,720 3,600 3,690 3,570 3,660 3,450 3,330 3,690 3,450

1,582 2,263 2,274 2,477 2,216 2,138

1,689 1,666 2,266 2,276 2,473 2,449 2,777 2,948 2,832 2,714 2,442 2,383 2,163 2,050 2,601 2,504

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Available Seats Onboard Pa x Departures 99.0 124.0 118.0 123.0 118.0 113.0 117.0 108.0 124.0 120.0 121.0 119.0 120.0 124.0 120.0 123.0 119.0 122.0 115.0 111.0 123.0 115.0 

### FIGURE 14: Departures, Available Seats, and Passengers, OTH

‐ SFO July 2008

– April 2010; Source: US DOT T100 Data

9,028 8,547

6,401

4,560

3,360 3,330 3,330 3,240 3,690 3,600 3,630 3,570 3,600 3,690 3,600

2,130 1,800 1,800 1,770 1,650 1,830 1,800 6,745 6,676

5,028

2,558

1,201 1,197 976 1,089 1,209 1,415 1,473 1,616 1,805 2,097 1,906

799 418 497 376 467 597 604

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Available Seats Onboard Pax Departures 244.0 229.0

173.0

138.0
112.0 111.0 111.0 108.0 123.0 120.0 121.0 119.0 120.0 123.0 120.0

71.0 60.0 60.0 59.0 55.0 61.0 60.0 

### FIGURE 15: Departures, Available Seats, and Passengers, OTH

‐ PDX July 2008

– April 2010; Source: US DOT T100 DataSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 37 leaving SkyWest to take over the North Bend - Portland flight, with scheduled flights that do not meet the travel needs of most South Coast/Portland business travelers, in addition to less viable connectivity options for leisure travelers.

Whereas just two years ago Portland was th e only choice passengers had for nonstop commercial air service along the South Coast toda y it only commands a 31 percent share versus 69 for San Francisco. This is virtually a mirror reve rsal from the previous year, when 71 percent of South Coast passengers chose Portland and only 29 percent traveled to San Francisco.

Passengers are avoiding service to Portland because United Express doesn’t offer the connectivity that was offered by Horizon on this route. The carrier simply does not have the strength or presence in the Portland market . Foremost, United offers very few one-stop connections beyond Portland – only nine (not counting Eugene and San Francisco – which would be backtrack connections). For comparison , the route’s former operator, Horizon, has three times the number of connections in Portland, while United has more than 70 one-stop connections at San Francisco. The declining numb er of passengers to Portland also is being driven by the reduction of seats and frequency of service to Portland. Since October 2009, United Express has been operating only one flight per day each way between the South Coast and Portland, whereas Horizon had averaged abou t four round trip flights in the summer and
three in the off-season.

It is clear that the precipitous decline in passengers along the South Coast, occurring only on the Portland flight, is not primarily associated with the nationwide downturn in domestic air travel; rather it is a product of a poor match between carrier and market. Many passengers who two years ago would have utilized the Airport to fly to Portland now either drive more than two hours to board flights in Eugene, or they drive more than four
hours to Portland – in both instances crossing the Oregon Coast Range, which is especially difficult in winter. 4,640 4,570 2,790 2,190 2,120 1,860 1,480 1,470 1,410 1,350 1,310 1,090
860
770
760
760
540
540
460
410 6.4
6.3
3.8
3.0
2.9
2.5
2.0
2.0
1.9
1.8
1.8
1.5
1.2
1.1
1.0
1.0
0.7
0.7
0.6
0.6

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 San Francisco, CA Portland, OR
Los An g eles, CA

Las Vegas, NV
San Die g o, CA Phoenix/Mesa, AZ Chicago, IL Denver, CO Seattle/Tacoma, WA Orange County, CA Washington, DC New York/Newark, NY

Orlando/Sanford, FL

Dallas/Ft Worth, TX Boston, MA Burbank, CA Minneapolis, MN Philadelphia, PA San Antonio, TX Reno, NV Annual Passen g ers

PDEW 

### FIGURE 16: North Bend’s Top 20 O&D Passenger Markets YE1Q10; Source: US DOT Table DB1ASouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 38 Top destinations for South Coast travelers are Sa n Francisco and Portland, the only two airports to attract more than five passengers per day ea ch way (PDEW) (see Figure 16). Los Angeles and Las Vegas attract three or more PDEW. Chicago is only city not in the West or Northwest regions to make the top ten. It and other cities such as Washington, DC, New York, and Boston would move up dramatically in ranking if the South Coas t were able to secure new direct service to a major eastbound hub.

Although the South Coast’s decline in passengers coincides with the nationwide downturn in domestic air travel, the region’s challenges are rooted in a string of events beginning in the summer of 2008. In July of that year, coinciding with the opening of its new $20 million terminal, North Bend announced the start of new direct service by United Express to San Francisco, intended to complement Horizon Air’s longstandi ng Portland route. However, that same month
Horizon announced it would terminate it s operations along the South Coast.



### Air Carrier Market Share in North Bend/Coos Bay

the South Coast’s air carrier market traditiona lly has been a monopoly. For a number of years up to 2008, Horizon Air was the Ai rport’s only commercial air serv ice carrier, providing year-round nonstop service to Portland (in addition to seasonal service to Seattle until 2007). In July 2008, United Express opened daily direct service to San Francisco. The opening of this new flight was heralded by the Airport as a positive step in creating competition and expanding service to complement its pre-existing Portland route. But just as United Express began its service at North Bend, Horizon announced it would end all its operations at the Airport in mid-October of that year. United Express began operating the Portland route only after Horizon’s departure.

Thus, southwest Oregon enjoyed the benefits of rival carriers, each operating flights in markets where they enjoyed a strong presence, for less than four months. The quick return to a monopolistic situation, as discussed in the section above, has made it more difficult for passengers flying between North Bend and Portland. The United Express/SkyWest service 

## “...southwest Oregon enjoyed the benefits of rival carriers, each operating flights in markets where they enjoyed a strong presence, for
less than four months.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 39 between the South Coast and Portland has poor connectivity to destinations beyond Portland, along with significantly reduced seat availability , decreased frequency of service, and higher airfares. While United Express provides excellent service for South Coast travelers to San Francisco, a market where it maintains a strong position, it does not provide the same amount of connectivity on the Portland route.

The South Coast’s recent fortunes underline the vital importance of creating competition among carriers. Taken together, Horizon’s success in ma intaining and growing its Portland route until 2008 and United Express’ success in expanding service to San Francisco over the past two years are proof that South Coast passengers will use their airport when the right carrier operates the right route. The falloff in passenge rs on the Portland is an unfortun ate corollary of this principle.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 40 AIR SERVICE DEFICIENCIES ON OREGON’S SOUTH COAST

In the last two years, the South Coast has seen more extreme seat and flight cuts than almost any other market in the nation. It appears airlin es have attempted to squeeze higher yields from the market by decreasing the availability of seats, but as seats have been pulled from the South Coast market, against common business understandin g, load factors have ac tually declined. It is just that fewer passengers are using the Southwest Oregon Regional Airport with fewer available seats – it’s that a smaller percentage of the seats are actually being filled, which is very
unusual.

In August of 2008, airline serving the South Coast offered a total of 354 flights, or an average of 5.7 departures per day (see Figure 17). By April of 2010, airlines were offering just 175 monthly schedule flights at the Southwest Oregon Regional Airport, or 2.9 departures per day – a decline
of 49%.

11,998 12,304

9,978

8,317

6,960 6,810 6,870 6,570 7,410 7,200 7,290 7,170 7,230 7,410 7,200

5,850 5,370 5,460 5,220 5,010 5,520 5,250 8,327 8,973

7,314

5,087

3,436 3,382 2,685 2,778 3,475 3,691 3,965 4,092 4,605 5,045 4,738

3,536 2,860 2,880 2,539 2,542 3,198 3,108

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Available Seats Onboard Pax Departures 343.0 354.0

292.0
263.0

232.0 227.0 229.0 219.0 247.0 240.0 243.0 239.0 241.0 247.0 240.0

195.0 179.0 182.0 174.0 167.0 184.0 175.0 

### FIGURE 17: Flights, Available Seats, Passengers at Southwest Oregon Regional Airport July 2008

– April 2010; Source: US DOT T100 DataSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 41 At the same time, the number of available seats in and out of the South Coast market declined by 57%, reflecting both the overall flight cuts, and also the move to smaller aircraft serving both the San Francisco and Portland markets. In August of 2008, airlines offered a total of 12,304 available seats in and out of the Southwest Oreg on Regional Airport, or 198.5 seats per day each way (see Figure 17). By April of 2010, that number had dropped to 5,250 total available seats, or 87.5 seats per day each way. In August of 2008 many of the flights operated at North Bend/Coos Bay were on 48-se at turboprops. In April of 2010, a ll flights were operated by smaller, 30-seat turboprops.

The decline in available seats, and the impact of the loss of those seats, is illustrated well when the South Coast – Portland (PDX) route is analyzed outside other South Coast service. In July of 2008, when Horizon was operating the Portland route with an average of three daily departures in each direction, there was a total of 9,028 available seats, or 145.6 seats per day each way between the cities (see Figure 18). By April of 2010, SkyWest/United Express had cut the South Coast – Portland route to just one daily flight in each direction, providing 1,800 total available seats or 30 seats per day each way. Between 2008 and 2010 the South Coast – Portland route
lost 79% of its available seats.



### FIGURE 18: Available Seats, Passengers, and Load Factor Between North Bend and Portland (PDX) July 2008

– April 2010; Source: US DOT T100 Data

9,028 8,547

6,401

4,560

3,360 3,330 3,330 3,240 3,690 3,600 3,630 3,570 3,600 3,690 3,600

2,130 1,800 1,800 1,770 1,650 1,830 1,800 6,745 6,676

5,028

2,558

1,201 1,197 976 1,089 1,209 1,415 1,473 1,616 1,805 2,097 1,906

799 418 497 376 467 597 604

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Available Seats Onboard Pax Load Factor 74.7% 78.0% 78.6%

56.3%

35.8% 35.9% 29.3% 33.6% 32.7% 39.4% 40.7% 45.3% 50.2% 56.8% 52.9%

37.2%

23.2% 27.5% 20.9% 28.1% 32.5% 33.7%Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 42 It must also be noted that the South Coast – Portland route performed much better, in terms of load factor, when Horizon operated the service with higher frequency. When airlines operated at least three daily frequencies between the South Coast and Portland, load factors averaged above 75% (see Figure 18). As soon as the freque ncy was cut to just two daily flights, or fewer, load factors tumbled into the 30s. This reflects the lost connectivity at the Portland hub. The
Portland route now offers South Coast travelers li ttle in the way of additional connections to other cities – so most of the traffic is strictly local between the two cities.

With these substantial seat cuts over the last two years, the South
Coast ranks as one of the most
underserved markets in the Pacific Northwest. As of the year ended first quarter 2010, the South Coast had just 0.60 available departing airline seats per capita of its Metropolitan Statistical Area (MSA) (see Figure 19). With less than one departing seat per resident per year, the North Bend/Coos Bay MSA had fewer available departing seats than Eugene, Eureka/Arc ata, Pasco, Medford, and the other, larger airports in the region.

The Pacific Northwest average number of availa ble departing airline seats per capita was 4.03 as of the year ended first quarter 2010 (see Figure 19). The South Coast’s available departing seats per capita was roughly one seventh of that average – meaning the
South Coast is underserved when compared to its surrounding region.

The same can be said about enplaned passengers per capita. The South Coast lags behind all other Northwest cities of as the year ended first quarter 2010 (see Figure 20). The Southwest Oregon 5.10 4.25 3.59 2.22 2.11 1.62 1.38 1.36 0.60

012345 

### Seattle Spokane Portland Bend/Redmond Medford Pasco Eureka/Arcata Eugene North Bend Northwest Average: 4.03 

### FIGURE 19: Available Seats Per Capita in Northwest Markets YE1Q10; Source: US DOT T100 Data, US Census Estimates

4.14 3.19 2.81 1.52 1.45 1.14 0.97 0.84 0.35

011223344 

### Seattle Spokane Portland Medford Bend/Redmond Pasco Eugene Eureka/Arcata North Bend Northwest Average: 3.19 

### FIGURE 20: Passengers Per Capita in Northwest Markets YE1Q10; Source: US DOT T100 Data, US Census EstimatesSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 43 Regional Airport saw just 0.35 pa ssengers per resident of the North Bend/Coos Bay MSA – less than half the number of passengers per capita of the nearest airport, Eureka/Arcata. The Northwest average number of passengers per capita was 3.19 as of the year ended first quarter 2010 – nine times the average in North Bend/Coos Bay’s MSA.

These indicators illustrate how the Southwest Oregon Regional Airport is relatively underserved when compared to corollary cities in its own region. The challenge for the Airport in recruiting
additional service is the declinin g number of passengers using the Airport. But, as illustrated in this proposal, passengers in the market have been suppressed by large seat cuts over the last two years.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 44 EXTENUATING FACTORS AFFECTING AIR SERVICE

The Southwest Oregon Regional Airport is also hu rt by airfares that are, not only, above the regional average, but much higher than the fa res found at other airports within reasonable driving distance. These fare disparities have th e impact of causing local South Coast catchment area travelers to drive to Medford, Eugene, and even Portland to access air service.

Of all Pacific Northwest (Oregon, Washington , and Idaho) airports with catchment area populations less than 200,000 residents, the South Coast has the third highest average one way fare as of the year ended first quarter 2010 (see Figure 21). North Bend/Coos Bay’s average one way fare is $159, which is 5% higher than the Western region average of $152 each way.

The South Coast’s one way fare is inline with the average one way fare from the only two airports ranked above it on the list – Walla Walla, Washington and Klamath Falls, Oregon. Walla Walla’s average one way fare was $161 as of the year ended first quar ter 2010 – just $2 higher each way than the fare in North Bend (see Figure 21). Klamath Falls’ average fare was just $1 higher each way than the fare on the South Coast. This means the South Coast is among the highest priced small markets
in the Pacific Northwest for airline service.

The fare disparity is even more apparent when the South Coast’s average fares are compared to the two nearest airports in Oregon with sc heduled air service – Medford and Eugene. In specific markets that would flow over the Delta hub at Salt Lake City, the South Coast consistently has the highest average fares of all three airports, illustrating the need for more competition in markets to the east.

For example, between the three Oregon markets and New York Kennedy, the average fare at North Bend/Coos Bay was $216 each way as of the year ended first quarter 2010 (see Figure 22). $161
$160
$159
$153
$151
$104
$47
$47

$0 $20 $40 $60 $80 $100 $120 $140 $160 Walla Walla, WA

Klamath Falls, OR

North Bend, OR

Pullman/Moscow, WA

Redmond, OR
Bellingham, WA
Friday Harbor, WA
Port Angeles, WA 

### Western Average: $152 

### FIGURE 21: Average One Way Fares in Northwest Markets With <200K Population, YE1Q10; Source: US DOT Table DB1ASouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 45 That was $9 higher each way than the average from Medford, and $25 higher each way than the average from Eugene. The South Coast’s average fares were also more expensive than the fares from either Medford or Eugene to Ne w York LaGuardia, Las Vegas, and Phoenix.

The fare disparities put the Southwest Oregon Regional Airport at a natural disadvantage. While the difference in average fare seems small, it should also be noted that, with far fewer
airline seats for sale in the
South Coast market than either Medford or Eugene, the
lower fare buckets sell out much more quickly on the
South Coast than in either Medford or Eugene. It is difficult for South Coast travelers to secure low fares, which forces them to two lane highways through the Coast Range mountains to access air service at other airports. $216 $177

$101 $119 $206 $175

$75 $74 $191 $165

$87 $89

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

New York Kennedy New York LaGuardia Las Ve g as Phoenix North Bend Medford Eugene 

### FIGURE 22: Average One Way Fares Between OTH, MFR, EUG, and Select Cities, YE1Q10; Source: US DOT Table DB1ASouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 46 AVAILABILITY OF ALTERNATE AIRPORTS

The Southwest Oregon Regional Airport is relatively isolated. The nearest airport with scheduled airline service is Eugene, located 106 miles from North Bend. A drive to Eugene, which includes crossing Coast Mountain Range in frequently foggy conditions, takes two hours and 15 minutes (see Figure 23). After Eugene, North Bend travelers are likely to use Portland International Airport, in spite of the long distance (235 miles) and significant time (about four hours and 15 minutes) required. Crescent City is a 139-mile drive that consumes about three hours, but offers significantly less commercial air service than North Bend.
Medford is a final ad jacent airport, a 172-mile drive that
takes about three and a half hours.

The net result is that the entire population of the South Coast lives in what is already an economically-cha llenged region. The region is underserved in tr ansportation opportunities that would, if supported by a seco nd air carrier service to a major hub -- such as Salt Lake City -- be able to secure a greater economic, livable, and sustainable future. 

### FIGURE 23: Location of Select Oregon AirportsSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 47 USE OF LOCAL FEDERAL FUNDS

Marketing and Advertising

The Southwest Oregon Regional Airport proposes to spend at least $50,000 in funds on marketing and advertising promotions in support of new serv ice introductions. The goal is to increase ridership and usage of new service th rough targeted regional campaigns.



### Revenue Guarantee

The Southwest Oregon Regional Airport proposes to make available at least $500,000 in funds for a revenue guarantee to the new carrier, to cover start-up losses that may occur during the first twelve months of service. Subject to negotiation, payments will be made to the new carrier quarterly when income derived from passengers and cargo is less than agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used.



### Additional Costs

As part of this program, the Southwest Oregon Regional Airport understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. In addition, the Airport expects to incur some expenses in the recruitment of the new carrier. The Airport will use other sources of funding to pay for these efforts, ensuring the DOT funding goes to the revenue guarantee.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 48 PUBLIC/PRIVATE PARTNERSHIPS

The Cities of Coos Bay and North Bend, Coos County, and the Southwest Oregon Regional Airport consistently work togeth er on air service development projects. Other local partners which work on a regular basis to strengthen the ai r service at the airport include the International Port of Coos Bay and the South Coast Development Council. All of these partners, along with others not specifically listed, will be working with the Airport to promote and market this proposed new service. The Airport will mana ge and coordinate the marketing program.

Among the partners in th is application are Bandon Dunes Golf Resort, which supports this effort for additional air service in North Bend, th e South Coast Development Council, regional economic development corporations, and the Bay Area Chamber of Commerce. These partners will play vital roles in promoting new se rvice and ensuring that service is a success.

The Airport’s partners are listed below, explaini ng their organization’s focus in the region, and including their role in the effort to retain curr ent air service and recruit additional air service.



### Bandon Dunes Golf Resort

Bandon Dunes Golf Resort features four distinctive, top-15 nationally ranked courses, built on a beautiful stretch of sand dunes perched 100 feet above the Pacific Ocean. Bandon Dunes and
Pacific Dunes feature a dozen holes that run al ong the bluff overlooking 23 miles of sweeping, undisturbed shoreline. Bandon Trails begins on a massive dune, works its way through open meadows and upland forest, and then finishes in the dunes. Old Macdonald moves through dune to ocean revealing breathtaking views throughout. The courses here weren't built as much as discovered. Among the coastal forest, dunes and gorse, lie golf holes that yield fresh rewards each time they are played.

Bandon Dunes recognizes the importance of the Southwest Oregon Regional Airport to its ultimate success in bringing golfers from around the world to the Oregon coast. The Resort has pledged $5,000 in cash to this application.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 49 The South Coast Development Council, Inc.

The South Coast Development Council, Inc. is a regional economic de velopment organization, serving Coos, Curry and Western Douglas counties on the Oregon Coast. It is a 501(c)3 public/private partnership, which exists to enhance the economic vitality of the South Coast region. Its leadership and member partners, including the Southwest Oregon Regional Airport, Southwestern Oregon Community College, Bay Area Hospital, the International Port of Coos Bay, all Coos County communities and county government, work to build collaboration, consensus and partnerships with other economic development entities at the local, regional and state
levels.

Recently, the SCDC was successful in producing a visioning process for sustainable growth in the region, through an application to the American Institute of Architects Sustainable Design Assessment Team. This effort brought to Coos Co unty and its communities, a team of specialists in sustainable economic growth to the area for a three-day, intense, county wide public meetings, culminating in a development plan to be delivered to the organization by the program in several weeks. Keenly identified by the team of nationally accomplished specialists for focus on improvement for the future sustainabi lity of the region is Transportation; including enhanced air service for tourism and business travel in and out of OTH. Its importance to the future of this region is, according to the team, crucial to the future of this area.



### Bay Area Chamber of Commerce

Founded in 1980, the Bay Area Chamber of Commerce was created from a merger of the Coos Bay and North Bend Chambers, and additionally se rves the tourist/commercial fishing village of nearby Charleston. With over 650 members, the Chamber's strength lies in the number and diversity of its membership. The activities of the BACC vary in response to the needs of the business community. Much of the Chamber's wo rk is accomplished through the volunteered time and efforts of its members, primarily thro ugh committees, providing community leadership in the areas of economic development, governme nt affairs, leadership development, natural resources, tourism and transportation. The Chamber also manages the City of Coos Bay Visitor Center, greeting over 36,000 visitors and responding to approximately 23,000 requests for information annually. Additionally, the BACC has just completed a new $1.2 million visitor’s
center.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 50 Oregon’s Adventure Coast

“Oregon’s Adventure Coast” is the name of the Visitor and Convention Bureau of North Bend, Coos Bay, and Charleston. The Group works to pr omote the “Bay Area” throughout the country. The Group spends much time and money publicizing the region’s outdoor activities, unique festivals, exciting events and spectacular scenery. The Group works with the Airport to spur additional inbound travel to the southern Oregon coast.



### The International Port of Coos Bay

With a deep appreciation for the beauty, diversity and resources of the magnificent region where it is located, the Oregon International Po rt of Coos Bay has a vision for the future and respect for the Bay Area’s past.

As Oregon’s Gateway, the port actively seeks ways to promote the use of Coos Bay’s deepwater port to enhance the economy and quality of life in the region and strives to build a diversified, healthy and stable regional economy along southern Oregon’s coast.

As a major economic driver in the region, the Port has historically been proactive in the transportation issues which impact this isolated region of the sout h Oregon Coast. It has played a key role in the development of the Airport since its inception. Today, the Port has taken on the daunting task of acquiring and re-establishing a closed rail service between Coquille and the northern cities of Oregon, in order to keep that leg of transportation -- a key to economic vitality of the region's industries -- functioning for the greater economic future of the region. They continue to be a strong advocate for the Airport and its vital role as a major transportation hub of cargo and carrier service.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 51 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in De cember 2010. Once the award is announced, the Southwest Oregon Regional Airport will conduct additional airline meetings to secure a new service that is mutually beneficial. Based on airline planning lead times and the need for advance bookings, we assume the new carrier would not be able to begin service until at least August of 2011.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with new air carriers to negotiate for service, and sign the minimum revenue guarantee agre ement. Once service is announced and schedules are published, the Airport would begin marketing the new route and working with the new carrier to monitor advance bookings. The Airport will continue its marketing program and continue to
work with the new carrier to monitor the route once service begins. The Airport would submit grant status reports on a quarterly basis to th e Department throughout the proposed two year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is aw arded. It is also possible that new service could slip to 2013 should an airline require addition al risk mitigation, beyond that included in this proposal, from the community.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010 Executive Grant Agreement with DOT January 2011 Meet With Prospective Airlines February 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline March 2011 Announce Service May 2011 Publish Schedule May 2011 Begin Marketing of New Route June 2011 Monitor Advance Bookings May - August 2011 Service Launch August 2011 MRG Available for Service August 2011- March 2014 Monitor Route Performance August 2011 - March 2014 Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q1 2014 Close Grant April 2014Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 52 AIR SERVICE ADVISORY GROUPS

The Southwest Oregon Regional Airport is govern ed by the Coos County Airport District. The Coos County Airport District exists to serve the citizens of Coos County and benefit the Southwestern Oregon Region by providing qual ity commercial and general aviation services. The Coos County Airport District was formed by popular election of the people of Coos County in the fall of 2002. The District is responsible for the operation of the Southwest Oregon Regional Airport. The District's purpose is to provide a stab le economic base for aviation services for all of Coos County. The District strives to serve all of the people of the County. The District is governed by a Board of five Commissioners elected county wide. The primary duty of the Board is to establish policies for the governance of the District and provide oversight of its daily activities.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 53 LOCAL AIR SERVICE DEVELOPMENT EFFORTS

For the last ten years, the Southwest Oregon Region al Airport has been very active in working to attract new air service, and ensure the new servic e is supported in the community. The Airport meets with a number of airlines each year, in one-on-one settings. In the summer of 2010, the Airport has met with both Frontier and SkyWest.

The Airport has had success in bringing additional service to the south Oregon coast through the Small Community Air Service Development Program, and the Connect Oregon grant program. The Airport won a SCASD Grant in 2006 in support of United Express/SkyWest service between
North Bend and San Francisco. This service is sti ll in operation today, and is now self-sustaining. Additionally, the Airport committed $400,000 in local cash to recruit SkyWest/United Express to
take over the North Bend – Portland route af ter Horizon’s decision to leave the market.

The Airport will continue to recruit new service where it makes sense. The Airport is focused on sustainable service opportunities. The reality is for service to be expanded – even where there’s a strong business case – a revenue guarantee is required in a market of the South Coast’s size.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 54 IN-KIND SERVICES FROM COMMUNITY

The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services.

 Bandon Dunes Golf Resort

 Bay Area Chamber of Commerce

 South Coast Development Council

 The International Port of Coos Bay

 Coos County Government

 Oregon’s Adventure Coast

 Coos County Airport District

 City of Coos Bay

 City of North Bend

 Southwestern Oregon Community College

 The Southern Oregon Marketing Team/SCDC

 Bay Area Hospital

 CEDCO

 Campbell Group (Menasha)

 Sause BrothersSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 55 PERFORMANCE MEASURES

The success of new service under this proposal will be based on three measurable variables: the increase in available seats in the market, the number of enplanements, and the average airfares charged in the affected city pairs. The first two measurements will include a monthly comparison once the program begins to past numbers. The second measurement will be derived from US DOT OD1A reports.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 56 LEGAL SPONSOR

The Coos County Airport District is the legal sp onsor responsible for administering the program. The Coos County Airport District is a government entity.

Coos County Airport District Southwest Oregon Regional Airport 1100 Airport Lane North Bend, Oregon 97459 Theresa Cook, AAE, Executive Director 541.756.8531 theresa@flyoth.com



## \Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 57 FINANCIAL CONTROLS

As the sponsor, the Southwest Oregon Regional Ai rport and the Coos County Airport District will be the responsible parties for all fiscal matters and DOT reporting requirements. As a public entity, the DOT can be assured that proper financial controls are in place to guarantee that the DOT’s grant will be used in accordance with any subsequent agreement. The Coos County Airport District understands that the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant request.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 58 RETURN ON INVESTMENT

The Southwest Oregon Regional Ai rport has developed a cost effe ctive and achievable strategy to increase enplanements at the airport and to lower fares on network carrier service. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The increased competition and access to increased competition with airfares by adding service is a major goal of the Small Community Air Service Development Program.

Approximately $50,000 of the $550,000 in cash is committed to being spent. The remaining $500,000 in cash will be available for the revenue guarantee portion of the project. Should the revenue guarantee be unused, or unneeded for the new airline, funding may be used to widen the marketing and advertising program.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 59 DOT EXIT STRATEGY

The Airport has developed this proposal as a on e-time grant. The ad vertising and marketing program will commence a few months before servic e starts, and last for at least twelve months. The revenue guarantee program will also be in place for twelve months, with two additional twelve-month periods available for negotiation. It is projected that the service on the route will be financially self-sustaining within the second twelve months of service.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 60 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by a Delta Connection carrier, the Southwest Oregon Regional Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help another carrier launch a currently unserved route. Among the options that would be considered is Horizon Air service to Seattle, San Jose, Los Angeles, or Sacr amento; United Express service to Denver or Los Angeles; US Airways service to Phoenix; or Frontier Airlines service to Denver.

Should these options, for an unforeseen reason, not be available for new service at the Southwest Oregon Regional Airport, the Airport wi ll continue its discussions with all other carriers than can provide additional seats to a hub not currently served.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 61 AIRPORT INFORMATION

As the Oregon coast's only commercial airport, the Southwest Oregon Regional Airport in North Bend is the connection to the Oregon coast. Fo rmerly known as North Bend Municipal Airport, Southwest Oregon Regional Airport is operated by the Coos County Airport District and serves the entire county. The North Bend/Coos Bay airport features full-service air carriers, executive aircraft accommodations, and shipping facilities.

The airport has recently been inundated by private jets filled with golfers on their way to Bandon Dunes Golf Resort, located just miles from the airport. It is estimated that as many as 50 percent of travelers flying into North Bend are headed to Bandon Dunes, which features four nationally ranked golf courses. The airport opened a new $15 million dollar regional air terminal in July 2008, funded by the state and federal governments. A brand new air traffic
control tower was commissioned for the airport in 2009.

Connect Oregon, a lottery-bondbased funding that invests in rail, ports and marine, air and transit infrastructure in Oregon, has aided the Coos County Airport District in constructing an air cargo handling area, portions of a new apron, and runway extension for passengers and freight at the North Bend Airport. The project makes the Southwest Oregon Regional Airport a more viable option for handling cargo.

Enhancing freight capabilities at the airport improves the modal connectivity between air, trucking, marine, and potentially rail. This project not only reduces transportation costs, but also creates permanent jobs for Coos County residents. 

### FIGURE 24: Airline Terminal Building, Southwest Oregon Regional AirportSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 62 COMMUNITY PROFILE

Coos Bay, with a population of 16,670, is the la rgest of the communities that comprise Oregon’s Bay Area. Founded in the 1850s, the city has been the commercial center of Oregon’s southern coast. Coos Bay offers its residents a healthy lifest yle, from state-of-the-art medical facilities and an expanding college, to endless outdoor adventures in its beautiful coastal environment. With world-class sporting opportunities, the largest expanse of
coastal sand dunes in North Am erica, several museums, and local theaters, Coos Bay provides attractions for everyone. The Oregon Dunes Recreation Area attracts approximately 1.5 million visitors each year. Major events include the longest running community theater group in Oregon, Little Theatre on the Bay, which holds performances at the historic Liberty Theater in North Bend. Every September is the Prefontaine
Memorial Run. Musicians from ac ross the country return yearly to play for South Coast residents in the Oregon Coast Music
Festival.

What’s New on the South Coast

North Bend and Coos Bay flow seam lessly into one another. Coos Bay, the larger of the two, has become the commercial center of Oregon’s southern coast. These former lumber towns are experiencing an exciting revitalization. Stor efronts are being renovated. Major expansion projects are planned or underway. And for the first time in its history, the area has direct access to natural gas. The Jordan Cove Energy Project is a proposed new, state-of-the-art liquefied natural gas (LNG) import terminal that will be a catalyst for regional economic development through job creation and increased port use, as well as access to competitive sources of
energy.

Due to its proximity to the Pacific Ocean, the Coos Bay Port harbor is positioned to serve as a regional marine trade center to receive the projected doubling of Trans-Pacific cargo between 2015 and 2020. The Oregon International Port of C oos Bay Port plans to develop marine industrial property on the North Spit of lower Coos Bay and expand marine terminal capacity in theSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 63 harbor to handle bulk commodities and intermod al containers. Potentially, it could become the third largest container port in the Pacific Northwest. Also, in the future, the Coos Bay waterfront will have a new set of condominiums, a $3 million historic maritime museum, and a large retail
center.

South Coast Economic Overview

The City of Coos Bay is developing a vibrant, dynamic economy capitalizing on its waterfront and proximity to a geographically unique area. The City is poised as the region’s hub to support industrial growth. Employment in natural-resource indust ries, such as fishing and wood products, has decreased in recent years. Ofincreasing importance are retirementrelated industries and tourism. Growth of
the retirement sector has added employment in retail trade and services, especially healthcare. The City’s
commercial and industrial economic development is a balance of increasing the amount and occupancy of useable industrial land and maintaining a focus on services, hospitality, the retirement community, and related support services.

Currently, forest products, tourism, fishing, and agriculture drive the Coos County economy. The service industry is replacing the former lumber-d riven economy. Tourists from around the world are attracted to Bandon Dunes Golf Resort, north of Bandon and south of Coos Bay. Boating, dairy farming, Myrtlewood manufacturing, ship building and repair, and agriculture specialty products, including cranberries, also play an impo rtant role. Untapped rich deposits of iron ore and lead await development.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 64 Higher Education on the South Coast

Coos Bay’s Southwestern Oregon Communit y College is located within two miles
of the Pacific Ocean. Enrollment has increased from 815 total students in 1961 to around 10,000 students annually. Current ly, Southwestern has about 60 full-time faculty members, in addition to approximately 200 part-time instructors. Thousands of guests are drawn to our college from the various cultural and athletic events. The College is also home to one of the finest culinary institutes in the Pacific Northwest, the Oregon Coast Culinary Institute, which draws students from across the country.

The new Curry campus on the northern end of Brookings is currently being constructed. Scheduled to open in the fall of 2011, this new facility is a 27,000-square-feet, two-story building equipped with wireless internet, advanced learning technology, and sited/designed to maximize sustainability options. Included in the cl assrooms are an allied heal th suite, science lab, and computer lab. A community wing, available for college classes, will provide a new and much needed venue for large public and private gatherings in Curry County.

As a partner in the South Coast’s economic de velopment, Southwestern offers the regions’ employees, employers, and industrial partners educational opportunities to meet their needs. Whether students enroll for a short course, a two- year transfer, or a two-year associate’s degree, they are preparing for a reward ing future and lifelong learning.

Tourism on the South Coast

Growing in importance, tourism is an integral part of the Coos Bay economic and cultural landscape. Visitors are drawn to Coos Bay and the surrounding area primarily for the variety of recreation opportunities offered by Oregon’s uniquely beautiful southwestern coast, including fishing, golfing, hiking, cycling, and a host of other outdoor activi ties. Additionally, tourists come to indulge in the seafood, visit wine ries, and visit a host of museums.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 65 Bandon Dunes Golf Resort Bandon Dunes is true to the spirit of Scotland’s ancient links. Here, players
immerse themselves in the traditions of a timeless game and the grandeur of Oregon’s rugged coast. Sweeping,
untamed shores stretch for miles. Primeval grassy dunes roll to the sea. Four distinctly different courses have been conceived in harmony with the
natural environment. All four courses are rated in the top 15 nationally by Golf Digest . They combine with all the essential elements to reveal a new golf experience every time they are played. The soul of the game resides here. Bandon is rated as one of the top five courses in the country, and draws more than a hundred thousand out of town visitors to the Bay Area of Oregon each year.

Coos Art Museum Coos Art Museum, established in 1850, is the thir d oldest museum in Oregon. An art deco style building, the museum features an impressive permanent collection, as well as a Prefontaine Memorial gallery.

Coos Historical and Maritime Museum
Visitors to the Coos Historical and Maritime Muse um learn of the county's challenging and varied terrain. A 20-foot-long photo collag e timeline captures Coos Bay’s history. The county's diverse history is communicated through artifacts and im ages, including items associated with the Coos and Coquille Indians, coal miners, loggers, ra nchers, and shipbuilders. Local shipwrecks are chronicled for the period 1860 through1975.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 66 Oregon Coast Historical Railway This museum has an outdoor display area an d a mini-museum with photos and railroad memorabilia. The signature piece is a restored 1922 Baldwin steam locomotive that worked for many decades in the region’s forests. Also displayed is a diesel switcher locomotive used in a local sawmill, along with road building machines used in conjunction with railroad logging and a recently acquired Southern Pacific caboose.

Recreation

Wind-sculpted sand dunes rising to 500 feet above sea level provide numerous recreational opportunities including off-highway vehicle use, hiking, photography, fishing, cano eing, horseback riding, and camping. The Oregon Dunes National Recreation Area extends for 40 miles along the Oregon Coast, including the Coos Bay Area. Formed by the ancient powers of wind, water, and time, these dunes are unique, the largest expanse of coastal sand dunes in North
America.

Fishing Sport fishing, clamming, and crabbing are popular outdoor recreational activities and Oregon’s southern coast provides outstanding opportunitie s to land a great catch throughout the year.

Hiking Oregon’s southern coast offers a wealth of hiking trails. Here is a small sample of some of the locals’ favorite trails to be enjoyed.

Bluebill Trail Located off Horsefall Road in the Oregon National Recreation Area, this trail loops around a seasonal lake, which is home to various bird species and aquatic animals. Bring your camera and binoculars to view the sights. A moderate tr ail, it offers easy access, but hikers will experience several surface changes fr om soft sands to packed trails.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 67 Oregon Coast Trail Located off Cape Arago Highway, visitors are treated to four miles of trails winding along one of the most breathtaking coastlines in Oregon. This trail winds through coastal bluffs and offers amazing coastline views.

Empire Lakes at John Topits Park John Topits Park is situated next to Southwestern Oregon Community College. The trail system located within is centered on the natural beauty of two lakes and dunes, offering four miles of paved walkways and another 1.5 miles of dirt paths. Along the trails are viewing areas of the lakes with benches to sit and enjoy the views and
wildlife.

Estuary Study Trails South Slough National Estuarine Research Rese rve is located off Cape Arago Highway along Seven Devils Road. The South Slough watershed covers 19,000 acres and offers hiking trails for all levels. The Estuary Study Trail begins in the uplands and follows Hidden Creek down the valley to the slough. This trail is perfect for wildlife observation.

Wineries

Hawks View Winery and Wild Goose Vineyards Family owned and located on the scenic Powers Highway, Wild Goose Vineyards was planted in 2001. The vineyard overlooks the beautiful Coquille River Valley. Wild Goose Vineyards grows 19 varieties from Chardonnay to Cabernet. No pest icides or chemicals are used on the vines or berries. Sustainable viticulture is practiced.

Old Bridge Winery In 2001, Old Bridge Winery opened its doors as Coos County's first bonded winery. Old Bridge Winery is best known for its origin al Cranberry wine. With over 40 years of experience, the vintners have created many original wines using combinations of fruit.Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 68 COMPARISON TO OTHER C OMMUNITIES IN THE WEST

FIGURE 25: Top 50 Western Region Airports Ranked by Domestic Flights YE1Q10, Source: US DOT T100 Data

Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Flights / Day YE 1Q 10 08-10 09-10
1 Los Angeles, CA 246,613 215,549 208,316 285.4 16.1% -8.1% -3.4% 2 Las Vegas, NV 198,131 176,513 161,751 221.6 12.5% -9.6% -8.4% 3 San Francisco, CA 143,598 147,324 150,300 205.9 11.6% 2.3% 2.0% 4 Seattle/Tacoma, WA 148,991 143,966 134,904 184.8 10.4% -4.8% -6.3% 5 San Diego, CA 100,295 92,197 83,073 113.8 6.4% -9.0% -9.9% 6 Portland, OR 91,968 85,121 80,414 110.2 6.2% -6.5% -5.5% 7 Oakland, CA 76,881 59,222 50,804 69.6 3.9% -18.7% -14.2% 8 San Jose, CA 62,767 55,971 48,766 66.8 3.8% -11.9% -12.9% 9 Sacramento, CA 62,184 52,990 48,336 66.2 3.7% -11.8% -8.8% 10 Orange County, CA 51,726 45,573 46,024 63.0 3.6% -5.7% 1.0% 11 Ontario, CA 45,889 32,760 28,621 39.2 2.2% -21.0% -12.6% 12 Burbank, CA 34,645 31,216 28,539 39.1 2.2% -9.2% -8.6% 13 Reno, NV 30,433 25,661 21,689 29.7 1.7% -15.6% -15.5% 14 Spokane, WA 25,235 21,304 19,677 27.0 1.5% -11.7% -7.6% 15 Long Beach, CA 14,670 15,432 15,204 20.8 1.2% 1.8% -1.5% 16 Fresno, CA 17,333 14,676 13,596 18.6 1.0% -11.4% -7.4% 17 Santa Barbara, CA 14,846 13,549 12,554 17.2 1.0% -8.0% -7.3% 18 Palm Springs, CA 13,882 12,081 11,983 16.4 0.9% -7.1% -0.8% 19 Friday Harbor, WA 9,756 9,355 9,700 13.3 0.7% -0.3% 3.7% 20 Eugene, OR 10,055 7,703 7,803 10.7 0.6% -11.9% 1.3% 21 Medford, OR 9,852 8,419 7,097 9.7 0.5% -15.1% -15.7% 22 Bellingham, WA 7,036 6,803 6,946 9.5 0.5% -0.6% 2.1% 23 Boulder City, NV 4,905 1,336 6,575 9.0 0.5% 15.8% 392.1% 24 Monterey, CA 8,797 7,123 6,202 8.5 0.5% -16.0% -12.9% 25 Seattle Boeing Field, WA 4,304 5,104 6,146 8.4 0.5% 19.5% 20.4% 26 Eastsound, WA 5,844 5,917 6,092 8.3 0.5% 2.1% 3.0% 27 Redmond, OR 8,143 6,590 5,952 8.2 0.5% -14.5% -9.7% 28 Pasco, WA 6,675 5,512 5,925 8.1 0.5% -5.8% 7.5% 29 Seattle Lake Union SPB, WA 6,166 4,034 5,003 6.9 0.4% -9.9% 24.0% 30 Arcata/Eureka, CA 4,714 4,666 4,197 5.7 0.3% -5.6% -10.1% 31 San Luis Obispo, CA 6,844 5,225 4,175 5.7 0.3% -21.9% -20.1% 32 Bakersfield, CA 5,079 4,157 3,438 4.7 0.3% -17.7% -17.3% 33 Anacortes, WA 3,360 3,362 3,361 4.6 0.3% 0.0% 0.0% 34 Redding, CA 3,198 2,884 2,827 3.9 0.2% -6.0% -2.0% 35 Carlsbad, CA 2,606 2,231 2,110 2.9 0.2% -10.0% -5.4% 36 Port Angeles, WA 2,230 1,978 2,085 2.9 0.2% -3.3% 5.4% 37 Santa Rosa, CA 1,342 1,876 1,740 2.4 0.1% 13.9% -7.2% 38 Westsound, WA 1,109 1,513 1,693 2.3 0.1% 23.6% 11.9% 39 Modesto, CA 2,939 1,914 1,602 2.2 0.1% -26.2% -16.3% 40 Roche Harbor, WA 1,431 1,334 1,561 2.1 0.1% 4.4% 17.0% 41 Santa Maria, CA 1,959 1,767 1,529 2.1 0.1% -11.7% -13.5% 42 Kenmore, WA 267 1,387 1,501 2.1 0.1% 137.1% 8.2% 43 Pullman/Moscow , WA 1,688 1,606 1,500 2.1 0.1% -5.7% -6.6% 44 Klamath Falls, OR 1,149 1,388 1,434 2.0 0.1% 11.7% 3.3% 45 Yakima, WA 2,669 1,628 1,395 1.9 0.1% -27.7% -14.3% 46 Elko, NV 1,807 1,492 1,395 1.9 0.1% -12.1% -6.5% 47 Chico, CA 1,336 1,368 1,352 1.9 0.1% 0.6% -1.2% 48 Bellevue, WA 1,464 1,295 1,311 1.8 0.1% -5.4% 1.2% 49 North Bend, OR 1,377 1,532 1,266 1.7 0.1% -4.1% -17.4% 50 Las Vegas North, NV 6 1,124 1,121 1.5 0.1% 1266.9% -0.3%

Total of Above 1,510,194 1,354,728 1,280, 585 1,754.2 98.9% -7.9% -5.5%
Total Flights Completed 1,527,324 1,369,172 1,294,968 1,773.9 100.0% -7.9% -5.4% Rank Avg. Ann. ChangeSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 69 FIGURE 26: Top 50 Western Region Airports Ranked by Domestic Seats Available YE1Q10, Source: US DOT T100 Data

Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Seats / Day YE 1Q 10 08-10 09-10
1 Los Angeles, CA 28,875,100 26,557,117 26,249,520 35,958.2 17.7% -4.7% -1.2% 2 Las Vegas, NV 27,799,916 25,188,456 23,159,496 31,725.3 15.6% -8.7% -8.1% 3 San Francisco, CA 17,335,557 18,101,726 18,460,924 25,288.9 12.4% 3.2% 2.0% 4 Seattle/Tacoma, WA 18,463,207 18,579,097 17,414,770 23,855.8 11.7% -2.9% -6.3% 5 San Diego, CA 12,140,434 11,626,761 10,721,183 14,686.6 7.2% -6.0% -7.8% 6 Portland, OR 9,349,042 8,760,281 8,065,236 11,048.3 5.4% -7.1% -7.9% 7 Oakland, CA 10,178,181 7,863,478 6,781,230 9,289.4 4.6% -18.4% -13.8% 8 Sacramento, CA 7,293,376 6,482,905 6,007,766 8,229.8 4.0% -9.2% -7.3% 9 Orange County, CA 6,645,238 5,931,288 5,917,097 8,105.6 4.0% -5.6% -0.2% 10 San Jose, CA 7,389,411 6,742,386 5,850,661 8,014.6 3.9% -11.0% -13.2% 11 Burbank, CA 4,274,596 3,849,800 3,446,188 4,720.8 2.3% -10.2% -10.5% 12 Ontario, CA 5,054,333 3,875,691 3,392,524 4,647.3 2.3% -18.1% -12.5% 13 Reno, NV 3,655,429 3,091,146 2,608,538 3,573.3 1.8% -15.5% -15.6% 14 Spokane, WA 2,414,652 2,182,602 2,001,172 2,741.3 1.3% -9.0% -8.3% 15 Long Beach, CA 1,825,379 1,853,633 1,824,730 2,499.6 1.2% 0.0% -1.6% 16 Palm Springs, CA 997,069 901,547 894,126 1,224.8 0.6% -5.3% -0.8% 17 Fresno, CA 912,432 772,280 752,650 1,031.0 0.5% -9.2% -2.5% 18 Santa Barbara, CA 624,821 586,475 549,468 752.7 0.4% -6.2% -6.3% 19 Eugene, OR 543,968 482,762 487,281 667.5 0.3% -5.4% 0.9% 20 Medford, OR 458,146 435,269 425,732 583.2 0.3% -3.6% -2.2% 21 Bellingham, WA 352,021 376,361 417,228 571.5 0.3% 8.9% 10.9% 22 Pasco, WA 352,828 342,866 400,072 548.0 0.3% 6.5% 16.7% 23 Redmond, OR 373,744 347,942 354,345 485.4 0.2% -2.6% 1.8% 24 Monterey, CA 350,945 294,347 279,166 382.4 0.2% -10.8% -5.2% 25 Arcata/Eureka, CA 188,274 198,454 178,448 244.4 0.1% -2.6% -10.1% 26 San Luis Obispo, CA 250,168 198,486 170,086 233.0 0.1% -17.5% -14.3% 27 Bakersfield, CA 239,183 195,464 160,178 219.4 0.1% -18.2% -18.1% 28 Redding, CA 160,256 148,234 150,495 206.2 0.1% -3.1% 1.5% 29 Santa Rosa, CA 100,432 141,700 132,071 180.9 0.1% 14.7% -6.8% 30 Pullman/Moscow , WA 64,027 121,508 114,830 157.3 0.1% 33.9% -5.5% 31 Yakima, WA 114,233 113,531 107,938 147.9 0.1% -2.8% -4.9% 32 Boulder City, NV 78,712 20,977 107,827 147.7 0.1% 17.0% 414.0% 33 Wenatchee, WA 62,014 77,119 80,644 110.5 0.1% 14.0% 4.6% 34 Walla Walla, WA 39,545 53,074 70,913 97.1 0.0% 33.9% 33.6% 35 Santa Maria, CA 84,494 75,763 66,142 90.6 0.0% -11.5% -12.7% 36 Seattle Boeing Field, WA 55,352 56,841 63,550 87.1 0.0% 7.1% 11.8% 37 Carlsbad, CA 80,411 66,891 63,254 86.6 0.0% -11.3% -5.4% 38 Friday Harbor, WA 62,612 60,729 62,839 86.1 0.0% 0.2% 3.5% 39 Modesto, CA 88,180 57,420 48,280 66.1 0.0% -26.0% -15.9% 40 Klamath Falls, OR 42,587 45,626 43,140 59.1 0.0% 0.6% -5.4% 41 Elko, NV 54,818 45,249 42,090 57.7 0.0% -12.4% -7.0% 42 Chico, CA 40,080 41,154 40,560 55.6 0.0% 0.6% -1.4% 43 North Bend, OR 51,120 50,868 37,889 51.9 0.0% -13.9% -25.5% 44 Seattle Lake Union SPB, WA 46,456 31,379 36,819 50.4 0.0% -11.0% 17.3% 45 Eastsound, WA 32,318 32,909 34,389 47.1 0.0% 3.2% 4.5% 46 Las Vegas North, NV 90 33,720 33,630 46.1 0.0% 1833.0% -0.3% 47 Oxnard/Ventura, CA 40,110 37,290 33,090 45.3 0.0% -9.2% -11.3% 48 Stockton, CA 45,163 35,380 33,036 45.3 0.0% -14.5% -6.6% 49 Crescent City, CA 30,180 30,720 29,619 40.6 0.0% -0.9% -3.6% 50 Mammoth Lakes, CA 0 7,448 29,494 40.4 0.0% 100.0% 296.0%

Total of Above 169,710,640 157,204,150 148,432, 354 203,332.0 99.8% -6.5% -5.6%

Total Seats Available 170,057,940 157,503,810 148,700,363 203,699.1 100.0% -6.5% -5.6% Rank Avg. Ann. ChangeSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 70 FIGURE 27: Top 50 Western Region Airports Ranked by Domestic Onboard Passengers YE1Q10, Source: US DOT T100 Data

Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Paxs / Day YE 1Q 10 08-10 09-10
1 Los Angeles, CA 22,279,539 20,587,973 20,887,549 28,613.1 18.1% -3.2% 1.5% 2 Las Vegas, NV 21,985,134 19,739,820 18,639,442 25,533.5 16.2% -7.9% -5.6% 3 San Francisco, CA 13,545,830 14,123,765 14,961,419 20,495.1 13.0% 5.1% 5.9% 4 Seattle/Tacoma, WA 14,661,425 14,404,419 14,130,676 19,357.1 12.2% -1.8% -1.9% 5 San Diego, CA 9,356,928 8,822,947 8,548,071 11,709.7 7.4% -4.4% -3.1% 6 Portland, OR 7,161,909 6,621,344 6,296,721 8,625.6 5.5% -6.2% -4.9% 7 Oakland, CA 7,185,157 5,226,142 4,753,481 6,511.6 4.1% -18.7% -9.0% 8 Sacramento, CA 5,428,601 4,802,533 4,546,802 6,228.5 3.9% -8.5% -5.3% 9 Orange County, CA 4,930,592 4,312,796 4,389,889 6,013.5 3.8% -5.6% 1.8% 10 San Jose, CA 5,273,232 4,610,816 4,133,926 5,662.9 3.6% -11.5% -10.3% 11 Ontario, CA 3,566,669 2,767,209 2,422,653 3,318.7 2.1% -17.6% -12.5% 12 Burbank, CA 3,023,934 2,553,805 2,337,907 3,202.6 2.0% -12.1% -8.5% 13 Reno, NV 2,573,959 2,100,808 1,904,053 2,608.3 1.6% -14.0% -9.4% 14 Spokane, WA 1,773,390 1,630,531 1,497,255 2,051.0 1.3% -8.1% -8.2% 15 Long Beach, CA 1,410,912 1,426,206 1,392,908 1,908.1 1.2% -0.6% -2.3% 16 Palm Springs, CA 753,310 678,804 666,177 912.6 0.6% -6.0% -1.9% 17 Fresno, CA 623,113 549,781 547,948 750.6 0.5% -6.2% -0.3% 18 Santa Barbara, CA 422,106 403,725 377,311 516.9 0.3% -5.5% -6.5% 19 Bellingham, WA 257,246 281,503 349,065 478.2 0.3% 16.5% 24.0% 20 Eugene, OR 396,186 331,570 346,217 474.3 0.3% -6.5% 4.4% 21 Medford, OR 317,689 291,088 306,049 419.2 0.3% -1.8% 5.1% 22 Pasco, WA 257,757 243,881 281,547 385.7 0.2% 4.5% 15.4% 23 Redmond, OR 259,983 228,968 231,405 317.0 0.2% -5.7% 1.1% 24 Monterey, CA 222,577 201,262 192,457 263.6 0.2% -7.0% -4.4% 25 San Luis Obispo, CA 179,495 139,421 118,163 161.9 0.1% -18.9% -15.2% 26 Arcata/Eureka, CA 116,179 118,636 108,421 148.5 0.1% -3.4% -8.6% 27 Bakersfield, CA 154,007 127,275 103,211 141.4 0.1% -18.1% -18.9% 28 Santa Rosa, CA 71,159 102,727 101,819 139.5 0.1% 19.6% -0.9% 29 Redding, CA 104,760 89,717 93,886 128.6 0.1% -5.3% 4.6% 30 Boulder City, NV 52,209 16,820 86,355 118.3 0.1% 28.6% 413.4% 31 Pullman/Moscow , WA 41,449 62,927 62,291 85.3 0.1% 22.6% -1.0% 32 Yakima, WA 80,691 66,775 58,626 80.3 0.1% -14.8% -12.2% 33 Wenatchee, WA 49,652 48,451 49,251 67.5 0.0% -0.4% 1.7% 34 Santa Maria, CA 55,248 49,292 44,032 60.3 0.0% -10.7% -10.7% 35 Walla Walla, WA 29,883 31,748 33,493 45.9 0.0% 5.9% 5.5% 36 Seattle Boeing Field, WA 34,198 31,255 33,421 45.8 0.0% -1.1% 6.9% 37 Stockton, CA 35,267 31,501 29,198 40.0 0.0% -9.0% -7.3% 38 Las Vegas North, NV 44 29,314 27,932 38.3 0.0% 2419.6% -4.7% 39 Carlsbad, CA 44,516 31,671 25,017 34.3 0.0% -25.0% -21.0% 40 Modesto, CA 48,641 31,105 24,543 33.6 0.0% -29.0% -21.1% 41 Chico, CA 25,587 24,468 23,098 31.6 0.0% -5.0% -5.6% 42 Seattle Lake Union SPB, WA 25,158 20,592 22,163 30.4 0.0% -6.1% 7.6% 43 North Bend, OR 38,771 32,513 21,790 29.8 0.0% -25.0% -33.0% 44 Friday Harbor, WA 23,391 20,796 21,473 29.4 0.0% -4.2% 3.3% 45 Elko, NV 28,314 23,587 20,792 28.5 0.0% -14.3% -11.8% 46 Klamath Falls, OR 29,768 24,230 20,352 27.9 0.0% -17.3% -16.0% 47 Mammoth Lakes, CA 0 4,431 15,557 21.3 0.0% 100.0% 251.1% 48 Port Angeles, WA 13,889 11,505 12,768 17.5 0.0% -4.1% 11.0% 49 Crescent City, CA 13,058 11,786 11,471 15.7 0.0% -6.3% -2.7% 50 Oxnard/Ventura, CA 20,522 14,904 11,106 15.2 0.0% -26.4% -25.5%

Total of Above 128,983,034 118,139,143 115,321,15 7 157,974.2 99.9% -5.4% -2.4%

Total Onboard Passengers 129,128,512 118,254,978 115,406 ,398 158,091.0 100.0% -5.5% -2.4% Avg. Ann. Change RankSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 71 FIGURE 28: Top 50 Western Region Airports Ranked by Domestic O&D Passengers YE1Q10, Source: US DOT Table DB1A

PDEW Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 YE 1Q 10 YE 1Q 10 08-10 09-10
1 Los Angeles, CA 31,550,020 29,200,240 29,368,940 80,462.8 16.1% -3.5% 0.6% 2 Las Vegas, NV 32,948,370 29,668,740 28,521,060 78,139.9 15.6% -7.0% -3.9% 3 San Francisco, CA 18,513,660 19,936,850 21,473,470 58,831.4 11.8% 7.7% 7.7% 4 Seattle/Tacoma, WA 20,839,970 20,358,130 19,809,920 54,273.8 10.9% -2.5% -2.7% 5 San Diego, CA 16,564,250 15,483,580 14,972,320 41,020.1 8.2% -4.9% -3.3% 6 Portland, OR 11,458,980 10,591,240 10,136,200 27,770.4 5.6% -5.9% -4.3% 7 Oakland, CA 13,012,000 9,522,510 8,465,420 23,192.9 4.6% -19.3% -11.1% 8 Orange County, CA 9,334,190 8,223,580 8,407,980 23,035.6 4.6% -5.1% 2.2% 9 Sacramento, CA 9,869,170 8,750,540 8,162,940 22,364.2 4.5% -9.1% -6.7% 10 San Jose, CA 9,617,380 8,407,780 7,530,600 20,631.8 4.1% -11.5% -10.4% 11 Ontario, CA 6,680,130 5,302,020 4,597,880 12,596.9 2.5% -17.0% -13.3% 12 Burbank, CA 5,833,950 4,970,480 4,507,510 12,349.3 2.5% -12.1% -9.3% 13 Reno, NV 4,370,210 3,604,320 3,282,090 8,992.0 1.8% -13.3% -8.9% 14 Spokane, WA 3,237,500 3,010,980 2,780,600 7,618.1 1.5% -7.3% -7.7% 15 Long Beach, CA 2,676,280 2,703,720 2,607,330 7,143.4 1.4% -1.3% -3.6% 16 Palm Springs, CA 1,339,000 1,198,250 1,176,690 3,223.8 0.6% -6.3% -1.8% 17 Fresno, CA 1,095,980 975,510 972,240 2,663.7 0.5% -5.8% -0.3% 18 Bellingham, WA 477,060 533,330 670,690 1,837.5 0.4% 18.6% 25.8% 19 Santa Barbara, CA 750,360 716,210 663,370 1,817.5 0.4% -6.0% -7.4% 20 Eugene, OR 689,630 586,250 612,030 1,676.8 0.3% -5.8% 4.4% 21 Medford, OR 572,850 504,940 535,790 1,467.9 0.3% -3.3% 6.1% 22 Pasco, WA 458,880 428,810 495,920 1,358.7 0.3% 4.0% 15.7% 23 Redmond, OR 453,740 402,310 398,950 1,093.0 0.2% -6.2% -0.8% 24 Monterey, CA 392,130 355,310 346,040 948.1 0.2% -6.1% -2.6% 25 San Luis Obispo, CA 322,590 250,490 217,130 594.9 0.1% -18.0% -13.3% 26 Arcata/Eureka, CA 196,030 200,700 185,830 509.1 0.1% -2.6% -7.4% 27 Bakersfield, CA 285,180 227,630 185,380 507.9 0.1% -19.4% -18.6% 28 Santa Rosa, CA 133,470 191,350 175,410 480.6 0.1% 14.6% -8.3% 29 Yakima, WA 138,940 113,710 100,380 275.0 0.1% -15.0% -11.7% 30 Redding, CA 115,000 105,190 93,990 257.5 0.1% -9.6% -10.6% 31 Wenatchee, WA 89,330 84,830 86,670 237.5 0.0% -1.5% 2.2% 32 Santa Maria, CA 107,300 92,630 84,060 230.3 0.0% -11.5% -9.3% 33 Pullman/Moscow , WA 46,400 58,860 60,680 166.2 0.0% 14.4% 3.1% 34 Walla Walla, WA 55,620 56,050 58,840 161.2 0.0% 2.9% 5.0% 35 Seattle Boeing Field, WA 18,550 53,070 58,670 160.7 0.0% 77.8% 10.6% 36 Stockton, CA 68,030 61,370 56,440 154.6 0.0% -8.9% -8.0% 37 Modesto, CA 116,370 61,850 50,340 137.9 0.0% -34.2% -18.6% 38 Carlsbad, CA 102,230 58,710 47,220 129.4 0.0% -32.0% -19.6% 39 Chico, CA 61,570 47,870 45,320 124.2 0.0% -14.2% -5.3% 40 North Bend, OR 71,070 63,660 44,490 121.9 0.0% -20.9% -30.1% 41 Klamath Falls, OR 55,380 48,070 40,380 110.6 0.0% -14.6% -16.0% 42 Elko, NV 30,490 39,790 35,760 98.0 0.0% 8.3% -10.1% 43 Friday Harbor, WA 11,300 25,910 25,700 70.4 0.0% 50.8% -0.8% 44 Port Angeles, WA 9,300 21,530 24,440 67.0 0.0% 62.1% 13.5% 45 Seattle Lake Union SPB, WA 5,850 21,710 24,430 66.9 0.0% 104.4% 12.5% 46 Mammoth Lakes, CA 0 8,920 23,900 65.5 0.0% 100.0% 167.9% 47 Crescent City, CA 32,090 23,550 21,800 59.7 0.0% -17.6% -7.4% 48 Oxnard/Ventura, CA 38,220 28,790 21,620 59.2 0.0% -24.8% -24.9% 49 Inyokern, CA 23,420 21,430 21,220 58.1 0.0% -4.8% -1.0% 50 Las Vegas North, NV 190 16,680 16,230 44.5 0.0% 824.2% -2.7%
Top 50 Airports 204,869,610 187,419,980 182,302,3 10 499,458.4 100.0% -5.7% -2.7%

Total Regional Passengers 205,080,180 187,522,600 182,371,100 499,646.8 100.0% -5.7% -2.7% Avg. Ann. Change RankSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 72 FIGURE 29: Top 50 Western Region Airports Ranked by Domestic O&D Revenue YE1Q10, Source: US DOT Table DB1A

RDEW Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 YE 1Q 10 YE 1Q 10 08-10 09-10
1 Los Angeles, CA $5,412,914 $5,143,132 $4,772,463 $6,538 124.3% -6.1% -7.2% 2 Las Vegas, NV $4,246,314 $4,004,182 $3,632,705 $4,976 94.6% -7.5% -9.3% 3 San Francisco, CA $3,551,251 $3,632,003 $3,442,105 $4,715 89.6% -1.5% -5.2% 4 Seattle/Tacoma, WA $3,367,558 $3,229,313 $2,943,834 $4,033 76.7% -6.5% -8.8% 5 San Diego, CA $2,421,808 $2,334,287 $2,093,436 $2,868 54.5% -7.0% -10.3% 6 Portland, OR $1,715,236 $1,643,737 $1,517,419 $2,079 39.5% -5.9% -7.7% 7 Orange County, CA $1,374,150 $1,209,832 $1,101,586 $1,509 28.7% -10.5% -8.9% 8 Sacramento, CA $1,306,716 $1,211,565 $1,091,154 $1,495 28.4% -8.6% -9.9% 9 Oakland, CA $1,531,700 $1,146,781 $975,991 $1,337 25.4% -20.2% -14.9% 10 San Jose, CA $1,272,311 $1,133,772 $950,869 $1,303 24.8% -13.6% -16.1% 11 Ontario, CA $890,798 $745,096 $606,559 $831 15.8% -17.5% -18.6% 12 Burbank, CA $678,489 $605,407 $526,570 $721 13.7% -11.9% -13.0% 13 Reno, NV $570,487 $502,272 $456,756 $626 11.9% -10.5% -9.1% 14 Spokane, WA $440,568 $419,576 $377,805 $518 9.8% -7.4% -10.0% 15 Long Beach, CA $356,195 $329,922 $278,827 $382 7.3% -11.5% -15.5% 16 Palm Springs, CA $235,038 $209,156 $189,800 $260 4.9% -10.1% -9.3% 17 Fresno, CA $205,477 $189,112 $170,015 $233 4.4% -9.0% -10.1% 18 Santa Barbara, CA $144,017 $134,482 $114,591 $157 3.0% -10.8% -14.8% 19 Eugene, OR $121,066 $104,846 $98,198 $135 2.6% -9.9% -6.3% 20 Pasco, WA $92,063 $91,820 $91,572 $125 2.4% -0.3% -0.3% 21 Medford, OR $99,246 $89,197 $81,035 $111 2.1% -9.6% -9.2% 22 Bellingham, WA $65,595 $63,520 $68,137 $93 1.8% 1.9% 7.3% 23 Monterey, CA $79,222 $70,341 $59,067 $81 1.5% -13.7% -16.0% 24 Redmond, OR $71,006 $61,712 $53,895 $74 1.4% -12.9% -12.7% 25 San Luis Obispo, CA $64,328 $54,785 $43,196 $59 1.1% -18.1% -21.2% 26 Bakersfield, CA $58,971 $49,992 $38,558 $53 1.0% -19.1% -22.9% 27 Arcata/Eureka, CA $35,679 $37,308 $33,740 $46 0.9% -2.8% -9.6% 28 Santa Rosa, CA $15,466 $22,325 $19,787 $27 0.5% 13.1% -11.4% 29 Yakima, WA $24,410 $20,218 $16,724 $23 0.4% -17.2% -17.3% 30 Redding, CA $21,314 $20,345 $16,694 $23 0.4% -11.5% -17.9% 31 Santa Maria, CA $18,025 $16,598 $13,529 $19 0.4% -13.4% -18.5% 32 Wenatchee, WA $14,230 $13,756 $12,903 $18 0.3% -4.8% -6.2% 33 Inyokern, CA $7,701 $8,712 $8,670 $12 0.2% 6.1% -0.5% 34 Walla Walla, WA $8,913 $9,161 $8,513 $12 0.2% -2.3% -7.1% 35 Pullman/Moscow , WA $7,500 $8,617 $8,427 $12 0.2% 6.0% -2.2% 36 North Bend, OR $12,090 $11,155 $6,625 $9 0.2% -26.0% -40.6% 37 Modesto, CA $12,698 $8,787 $6,404 $9 0.2% -29.0% -27.1% 38 Klamath Falls, OR $10,455 $8,814 $6,168 $8 0.2% -23.2% -30.0% 39 Carlsbad, CA $11,557 $7,101 $5,669 $8 0.1% -30.0% -20.2% 40 Oxnard/Ventura, CA $9,396 $8,109 $5,271 $7 0.1% -25.1% -35.0% 41 Elko, NV $7,719 $6,495 $5,266 $7 0.1% -17.4% -18.9% 42 Chico, CA $7,320 $5,791 $5,260 $7 0.1% -15.2% -9.2% 43 Seattle Boeing Field, WA $869 $2,779 $3,362 $5 0.1% 96.7% 21.0% 44 Crescent City, CA $4,288 $3,702 $3,222 $4 0.1% -13.3% -13.0% 45 Stockton, CA $3,764 $3,191 $2,762 $4 0.1% -14.3% -13.4% 46 Mammoth Lakes, CA $0 $1,029 $2,464 $3 0.1% 100.0% 139.5% 47 Imperial, CA $2,676 $1,867 $1,454 $2 0.0% -26.3% -22.1% 48 Las Vegas North, NV $16 $1,493 $1,453 $2 0.0% 845.2% -2.7% 49 Seattle Lake Union SPB, WA $307 $1,146 $1,239 $2 0.0% 100.8% 8.1% 50 Friday Harbor, WA $441 $1,180 $1,210 $2 0.0% 65.7% 2.6%
Top 50 Airports $30,609,359 $28,639,519 $25,972,960 $5,198 100.0% -7.9% -9.3%
Total Regional Revenue $30,629,995 $28,650,787 $25,978,238 $5,260 100.0% -7.9% -9.3% Avg. Ann. Change RankSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 73 FIGURE 30: Top 50 Western Region Airports Ranked by Domestic Yield YE1Q10, Source: US DOT Table DB1A

Itinerary Average Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Mileage Fare 08-10 09-10

1 Port Angeles, WA 67.39¢ 67.39¢ 67.36¢ 69 $46.58 0.0% 0.0% 2 Friday Harbor, WA 69.12¢ 67.11¢ 66.69¢ 71 $47.10 -1.8% -0.6% 3 Seattle Lake Union SPB, WA 65.47¢ 65.40¢ 65.08¢ 78 $50.72 -0.3% -0.5% 4 Seattle Boeing Field, WA 67.61¢ 64.73¢ 62.29¢ 92 $57.30 -4.0% -3.8% 5 Las Vegas North, NV 52.74¢ 52.03¢ 52.03¢ 172 $89.50 -0.7% 0.0% 6 Mammoth Lakes, CA 0.00¢ 25.93¢ 26.84¢ 391 $104.95 100.0% 3.5% 7 Inyokern, CA 20.76¢ 26.08¢ 25.42¢ 1,723 $438.08 10.7% -2.5% 8 Santa Rosa, CA 21.22¢ 20.71¢ 19.96¢ 585 $116.82 -3.0% -3.6% 9 Oxnard/Ventura, CA 18.54¢ 21.08¢ 18.10¢ 1,522 $275.53 -1.2% -14.1% 10 Pullman/Moscow , WA 20.52¢ 19.96¢ 17.83¢ 859 $153.22 -6.8% -10.7% 11 Santa Maria, CA 17.65¢ 19.82¢ 17.25¢ 972 $167.75 -1.1% -13.0% 12 Elko, NV 25.26¢ 18.15¢ 16.91¢ 907 $153.45 -18.2% -6.8% 13 Redding, CA 18.56¢ 19.85¢ 16.79¢ 1,163 $195.25 -4.9% -15.4% 14 Walla Walla, WA 18.76¢ 19.71¢ 15.92¢ 1,013 $161.32 -7.9% -19.2% 15 Yakima, WA 16.04¢ 17.36¢ 15.88¢ 1,136 $180.33 -0.5% -8.5% 16 Arcata/Eureka, CA 17.63¢ 16.64¢ 15.80¢ 1,254 $198.13 -5.3% -5.0% 17 Wenatchee, WA 18.25¢ 18.92¢ 15.57¢ 1,065 $165.88 -7.6% -17.7% 18 Burbank, CA 15.07¢ 16.13¢ 15.33¢ 808 $123.93 0.9% -5.0% 19 Pasco, WA 16.70¢ 17.73¢ 15.09¢ 1,315 $198.38 -4.9% -14.9% 20 Bakersfield, CA 15.98¢ 16.24¢ 15.03¢ 1,444 $217.08 -3.0% -7.5% 21 Crescent City, CA 14.87¢ 17.30¢ 14.18¢ 1,199 $170.04 -2.3% -18.0% 22 Santa Barbara, CA 16.16¢ 15.67¢ 13.85¢ 1,385 $191.76 -7.4% -11.6% 23 Stockton, CA 13.84¢ 13.50¢ 13.73¢ 359 $49.28 -0.4% 1.7% 24 San Luis Obispo, CA 14.67¢ 15.30¢ 13.72¢ 1,564 $214.58 -3.3% -10.3% 25 Reno, NV 13.14¢ 14.26¢ 13.68¢ 1,102 $150.72 2.0% -4.1% 26 Monterey, CA 16.80¢ 16.47¢ 13.65¢ 1,363 $186.09 -9.9% -17.1% 27 Medford, OR 15.25¢ 15.92¢ 13.51¢ 1,219 $164.67 -5.9% -15.1% 28 Palm Springs, CA 14.68¢ 14.50¢ 13.37¢ 1,360 $181.78 -4.6% -7.8% 29 Eugene, OR 14.58¢ 14.82¢ 13.25¢ 1,334 $176.74 -4.7% -10.6% 30 Spokane, WA 13.71¢ 14.04¢ 13.17¢ 1,108 $145.92 -2.0% -6.2% 31 Fresno, CA 15.72¢ 15.90¢ 13.14¢ 1,418 $186.29 -8.6% -17.4% 32 Redmond, OR 15.15¢ 15.34¢ 12.95¢ 1,163 $150.58 -7.5% -15.6% 33 Ontario, CA 13.32¢ 14.26¢ 12.89¢ 1,086 $140.02 -1.6% -9.6% 34 Oakland, CA 12.03¢ 13.45¢ 12.89¢ 953 $122.90 3.5% -4.2% 35 Sacramento, CA 12.86¢ 13.39¢ 12.62¢ 1,130 $142.65 -0.9% -5.8% 36 San Jose, CA 12.95¢ 13.14¢ 12.57¢ 1,065 $133.88 -1.5% -4.3% 37 Orange County, CA 13.94¢ 13.80¢ 12.49¢ 1,127 $140.76 -5.3% -9.5% 38 Portland, OR 12.06¢ 12.36¢ 11.63¢ 1,392 $161.85 -1.8% -5.9% 39 North Bend, OR 19.32¢ 17.81¢ 11.52¢ 1,381 $159.06 -22.8% -35.3% 40 San Diego, CA 11.77¢ 12.16¢ 11.10¢ 1,350 $149.86 -2.9% -8.7% 41 Klamath Falls, OR 20.00¢ 16.87¢ 11.06¢ 1,447 $160.09 -25.6% -34.4% 42 Los Angeles, CA 11.90¢ 12.01¢ 10.90¢ 1,610 $175.48 -4.3% -9.2% 43 San Francisco, CA 12.38¢ 12.09¢ 10.76¢ 1,609 $173.18 -6.8% -11.0% 44 Las Vegas, NV 10.93¢ 11.45¢ 10.75¢ 1,260 $135.40 -0.8% -6.1% 45 Seattle/Tacoma, WA 11.88¢ 11.70¢ 10.71¢ 1,492 $159.76 -5.1% -8.5% 46 Bellingham, WA 12.31¢ 12.27¢ 10.13¢ 1,031 $104.39 -9.3% -17.4% 47 Carlsbad, CA 12.03¢ 11.90¢ 10.11¢ 1,437 $145.29 -8.3% -15.0% 48 Modesto, CA 11.07¢ 11.46¢ 10.08¢ 1,432 $144.33 -4.6% -12.0% 49 Chico, CA 10.97¢ 10.64¢ 9.55¢ 1,372 $130.99 -6.7% -10.2% 50 Long Beach, CA 10.00¢ 10.17¢ 9.52¢ 1,169 $111.33 -2.4% -6.4%
Average Regional Yield 12.20¢ 12.43¢ 11.40¢ 1,359 $169.58 -3.3% -8.3% Avg. Ann. Change RankSouthwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 74 CONCLUSIONS

Despite being the only airport on the Pacific Nort hwest coast with scheduled service on aircraft with more than nine passenger seats, the Southwest Oregon Regional Airport has seen huge cuts in service in the last two years. The Airport has lost 74% of its daily flights as it has seen flights cut from 7.8 departures per day to just three departures per day since the summer of 2008. At the same time, the number of available seats being offered by airlines in the market has dropped by 80%, as Horizon Air left the market shortly after United Express/SkyWest began service.

Moreover, fare disparities put the Southwest Oregon Regional Airport at a natural disadvantage. The South Coast has the third highest average fare in the Pacific Northwest. It must also be noted, with so few available seats, the lower fare buckets sell out much more quickly on the
South Coast than in either Medford or Eugene. It is difficult for South Coast travelers to secure low fares, which forces them to two lane highways through the Coast Range mountains to access air service at other airports.

Local service has been plagued by delays during the summer of 2010. The two earliest departures of the day each had 28 of 31 flights depart North Bend late in July of 2010. These delays are mostly due to weather in San Francisco, causing ATC backups for nearby mark ets. On the Portland route, the flight is often delayed due to a late arriving aircraft. The aircraft that operates between the Southwest Oregon Regional Airport and Portland arrives fr om San Francisco. When it arrives late, the Portland flight is delayed, as well. The Airpor t would benefit from having another flight option through another hub.

It is clear that the market performed best when both United Express and Horizon offered service at the same time – for a period of four months in 2 008. During this period fa res were still relatively high, but the increased connectivity offered by two airlines to two separate networks more than made up for higher fares. The Southwest Oreg on Regional Airport seeks to re-create this situation, by encouraging a second network carrier to enter the market alongside United Express
service. 

## “Despite being the only airport on the
Pacific Northwest coast with scheduled
service on aircraft with more than nine passenger seats, the Southwest Oregon

Regional Airport has seen huge cuts in service in the last two years.”Southwest Oregon Regional Airport – Small Community Air Service Development Grant – August 2010 

## 75 Delta’s Salt Lake City hub would give South Coast travelers one-stop access to a number of markets in which there is little current compet ition. Delta Connection service from North Bend/Coos Bay to Salt Lake City would provide connections to 52 markets beyond SLC, from Los Angeles to Mexico City and from New York/Newar k to Paris, France. The Airport seeks a Small Community Air Service Development Grant, to pair with its local funding, to bring Delta to the
market.