DEPARTMENT OF 

rRANSPORTATiON 

;OCKbT OPERATIONS 

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m OCT !3 A 10: 31 

August 24. 2010 

The Honorable Ray LaHood 

Secretary. United States Department of Transportation 

1200 New Jersey Ave SE 

Washington D.C. 

Secretary LaHood. 

This letter supports the application of the new St. George Airport for a grant in the 2010 Small 

Community Air Service Development Program. 

The City of St. George instituted a program tri attract nev/ air service in 2008. Part of this 

program included requesting a grant under the Small Community Air Service Development 

Program to help pay for marketing studies and an airline recruiting program. In 2009, the City of 

St. George received a grant under the SmaD Community Air Service Development Program to 

fund the air service market studies and recruit air service. This worlt has been successful with 

airlines nov/ interested in providing service to the new airport 

In order to start new air service at St. George, the airlines have told the community that they 

need an incentive program that v/lll induds a revenue guarantee and funds for marketing. To 

meet this request, the City of St George and the new St George Regional Airport are requesting 

an additional grant of $550,000 with a local contribution and ticket purchase program of 

$300,000 as an incentive for new air service at our new Airport 

Currently, the Airport has nonstop service by SkyWest to Salt Lake City with 50 seat EMB-120 

aircraft Recent studes show that overall passenger demand for St. George is quite large but 

over 80% of the passengers in the St. George market area are using ottier airports. There Is a 

strong local demandfor air service to Los Angeles, Denver, Phoenix, San Francisco and Dallas. 

The community leaders have been actively recruiting air service for the new airport and have had 

meetings and discussions with a number of regional and national air carriers. 

SkyWest Airlines has expressed the most interest at this time and could provide nonstop service 

with regional jet aircraft to Los Angeles. SkyWest has requested an incentive package that 

includes a revenue guarantee, local advertising and mariceting, a pre-purchase ticket program by 

tocal businesses, and an inbound tour program. The initial service v/ould include one daily round 

trip fGght between St George and Los Angeles with 50 seat CRJ-200 aircraft 

The new nonstop service to and from Los Angeles woiid be a great help in our effort to attract 

more tourism to the St George area It will also make St. George more accessible to the 

international market Zion National Park is a popular destination for the Asian market California 

is one of our top markets for visitation to St George as wen as Zion National Park. It Is a market 

that we advertise in regularty - talking about direct air service win enhance our message. 

Thaak you for your attention to this important request I sincerely endorse the appfication. 

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Roxie Shenvin 

Director of Tourism 

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Proposal of the City of St. George and St. George Airport Page 6 
ORRIN.G. HATCH 

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WASHINGTON. DC 20510-4402 

AugiKst 27, 2010 ""-

COMMIITEES: 

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JUINI CUMUII'lEb 

ON TAXATION 

The Honorable Ray LaHood 

Secretary 

United States Department of Transportation 

1200 New Jersey Ave. SE 

Washington D.C. 

Dear Secretary LaHood; 

I write today to indicate my support for the application of the now St. Geortjc 

iVIunicipal Airport for a grant in the 2010 Small Community Air Service Development 

Program. The St. George Airport has seen a drop in flights and seats over the past seven 

years due to an inadequate and outdated airport. Airlines in the region were switching to 

Regional Jets and the restricted operations nt the old St. George kept the airlines from 

sei-ving Southern Utah. 

In January of 2011, the city of St. George will be opening a now airport with the 

ability to handle almost all jet aircraft. In order to start new air service at St. George, the 

airlines have told the community that they need an incentive pi-ogram that will include a 

revenue guarantee, funds for marketing, and airport fee waivers. 

Currently, the Airport has nonstop sei-vice by Sky West to Salt Lake City with 30 

seat EMB-120 aircraft. Recent studies show that overall passenger demand for St. George 

is quite large but over 80% of the passengers in the St. George market area are using other 

aiiports. There is a strong local demand for air sei-vice to IJOS Angeles, Denver, Phoenix, 

San Francisco, and Dallas. The community leaders have been actively recruiting air service 

for the new airport and have had meetings and discussions with American, American 

Eagle, Delta, Frontier, Horizon, Sky West, Southwest, United, and US Airways. 

Sky West Airlines has expressed the most interest at this time and could provide 

nonstop sen'ice with regional jet aircraft to Salt Lake City and IJOS Angeles in 2011. Sky 

West has requested an incentive package that includes a revenue guarantee, airport fee 

waivers, local advertising and marketing, and a pre-purcha.ie ticket program by local 

businesses. The initial service would include four daily round trip flights between St. 

Guoi-ge and Salt Lake City and one daily ixiund trip flight between St. George and I/os 

Angeles with .50 seat CRJ-200 aircraft. This is a major upgrade from currunt air service to 

Suit Lake City and will be new air service to Los Angeles. 

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Proposal of the City of St. George and St George Airport Page 4 
The new regional jet sen'ice to Salt Lake'" City will bo well received by our local 

business community since Salt Lake City Intei-national Airport is the primary connecting 

hub.for our community. The new nonstop service to and from Ix)s Angeles will make St. 

George accessible to the international market. The many National Parks near Si. George 

are major attractions for the Asian tourist market and this new nonstop flight should be 

vei7 popular. 

Thank you for your attention to this important request. I ui-ge your full 

consideration to the City of St. George and St. George Municipal Airport application 

consistent with all relevant rules and regulations. 

Sincerely, 

Orrin G. Hatch 

United States Senator 

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Proposal ofthe City of St. George and St, George Airport Page 5 
A I k I. I N n .s-i 

August 25. 2010 

Honorable Ray LaHood 

Secretary of the U.S. Department of Transportation 

1200 New Jersey Ave. SE 

Washington D.C. 

Dear Secretary LaHood; 

This letter is sent to you in support of the proposal and application of the City of St. George and 

St. George Airport to the Department of Transportation for a grant under the Small Community 

Air Service Development Program. 

The City of St. George and SkyWest Airiines are working to reinstitute air service Ijetween St. 

George and Los Angeles international Airport v^ith a CRJ-200 regional jet aircraft: SkyWest 

previously served this market with EIVIB-120 aircraft.and operated at a loss. The cost of 

operating the same nuniber of seats with the.CRJ-200 is much less than the ElvlB-120 and if 

passenger levels and fares reach acceptabie levels, the route will be viable. As with any new 

service there is financial risk. To offset this risk, the City of St. George and St. George Airport in 

coordination with SkyWest are working on a plan to ensure the success of the service. The plan 

includes a revenue guarantee to offset initial operating losses, a robust local advertising and 

marketing program to promote the new service as well as a pre-purchased ticket program by 

local businesses, and the development of ah inbound tour program. A key part of the 

development of the St. George-Los Angeles market is the compilation of an incentive package 

by the City of St. George and the St. George Airport. 

The community in St. George has a growing and robust economy. SkyWest understands that 

the key to ensuring continued economic growth and development is through enhanced air 

servii:;e. To that end, with the cooperation of all the parties in executing the plan to restore Los 

Angeles service to St George the result will be continued growth of the St. George economy. 

While we are highly optimistic about the service given the volatile nature of the airline industry, 

SkyVVest must reserve the right to amend its support for the proposed service as dictated by 

circumstances. 

SkyWest looks fon/vard to working with the U.S. Department of Transportation and City of St. 

George on this air service initiative. Please contact me if you have any questions concerning 

this letter of support and any specifics about SkyVVest Airlines. 

Sincerely yours. 

^,^^^=i'£r^'^^_—___ 

Michael Thprhpson 

Vice President- Market Development 

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Proposal ofthe City of St. George and St. George Airport Page 3 
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Proposa l ofth e City of St. George an d St. George Airport Page 8