1

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application 

coversheet, a completed standard form SF424 and the full application proposal on 

www.grants.gov.

For your preparation convenience, this Summary Information schedule is located at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL 

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER 

(EIN) OR TAX ID.

Legal Sponsor Name: Friedman Memorial Airport Authority

DUNS Number: 155993603

EIN/Tax ID: 820474066

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING:

1. SUN VALLEY/KETCHUM, IDAHO

2.

3.

4.

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE 

APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY 

SEEKING SERVICE).

1. Friedman Memorial Airport (SUN) 2.

3. 4.
2

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. ID-02 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

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

Service Development Program Grant

If previous recipient: Year of grant(s): 2002

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. Friedman Memorial Airport Authority 1. Fly Sun Valley Alliance

2. 2. Sun Valley Resort

3. 3. Sun Valley Marketing Alliance

4. 4.

5. 5.

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify:)
3

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $500,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $34,000

3b Non-airport cash funds $175,000

3 Total local cash funds (3a + 3b) $209,000

4 TOTAL CASH FUNDING (1+2+3) $709,000

In-Kind contribution

5a Airport In-Kind contribution** $25,000

5b Other In-Kind contribution** $5,000

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

$30,000

6 TOTAL PROJECT COST (4+5) $739,000

J. IN-KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please 

describe the source(s) of fund(s) and the value ($) of each.

5a: Fee waivers ($18,000) and grant administration ($7,000)

5b: Service monitoring ($5,000)
4

K. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372

PROCESS?

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

Process for review on (date) _____________.

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

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

L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

______________________________________________________________________________

______________________________________________________________________________
Legal sponsor: Friedman Memorial Airport Authority 

Contact: Rick Baird, Airport Manager

Friedman Memorial Airport 

PO Box 929 

Hailey, Idaho 83333 

(208) 788-4956 

rick@flyfma.com 

Application Under the Small Community 

Air Service Development Program 

Docket #: DOT-OST-2013-0120 

Friedman Memorial Airport 

Hailey, Idaho 


Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Table of Contents

Prepared by 

Table of Contents 

Page 

Section 1. Application Highlights ............................................... 1

Underserved Community ........................................................................ 1

Significantly Higher Fares ....................................................................... 2

Community Involvement and Support ..................................................... 2

Demonstrated Ability to Implement Project ............................................. 2

Far Reaching Benefits ............................................................................ 2

Section 2. Air Service Environment ........................................... 3

Isolated Central Idaho Catchment Area .................................................. 3

Tourism - the Foundation of the Local Economy ..................................... 4

Local Global Business ............................................................................ 5

Section 3. Air Service – Existing and Historical ....................... 6

Existing Air Service ................................................................................. 6

Historical Air Service ............................................................................... 7

Past Air Service Development Efforts ..................................................... 8

Section 4. Air Service Needs and Deficiencies ......................... 9

Underserved Resort Destination ............................................................. 9

Excessive Airfares ................................................................................ 11

Section 5. Strategic Plan – Air Service .................................... 12

Project Goal .......................................................................................... 12

Proposed Air Service ............................................................................ 12

Detailed Market Analysis ...................................................................... 12

Alternate Plan ....................................................................................... 14

Previous Grant Recipient - New Project and Goals .............................. 14

Section 6. Strategic Plan – Implementation and 

Funding ........................................................................... 15

Public-Private Partnership..................................................................... 15

Incentive and Support Plan ................................................................... 15

Project Continuation and Sustainability ................................................. 17

Strategic Plan Funding .......................................................................... 17

Section 7. Schedule and Monitoring ........................................ 18

Strategic Plan Schedule and Milestones ............................................... 18

Monitoring Program .............................................................................. 19

Appendix A. Airline and Community Letters of Support ....... 20
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Application Highlights

1 

Section 1. Application 

Highlights 

his Small Community Air Service Development Program (SCASDP) grant 

application for Friedman Memorial Airport (SUN) meets the criteria of 

Docket DOT-OST-2013-0120. Friedman Memorial Airport Authority, the 

grant sponsor, is requesting $500,000 in federal assistance to implement a 

$739,000 air service initiative. The goal of this project is to increase eastern 

connectivity through an additional nonstop hub providing much needed air 

service to key eastern airports not currently served through Salt Lake City such 

as Washington-Dulles (IAD), New York (LGA), Cleveland (CLE), Pittsburgh (PIT), 

Columbus (CMH) and others plus provide additional frequencies to current 

destinations as well as lower airfares to top eastern destinations. In 2002, the 

City of Hailey, ID on behalf of SUN received a SCASDP grant to help secure air 

service to Los Angeles that was successful and continues today. The proposed 

project’s goals differ from the previous grant application and award. 

Underserved Community 

At an elevation of 5,317 feet with a single 7,550 foot runway, SUN is 

operationally challenged. The airfield is located in a valley with mountainous 

terrain on both sides of the runway. Historically, this has restrained SUN’s air 

service opportunities. Current service is limited to 30-seat Embraer Brasilia 120 

aircraft operated by SkyWest Airlines to Delta Air Lines’ Salt Lake City hub and 

76-seat Bombardier Q400 service operated by Horizon Air to Seattle and Los 

Angeles seasonally. Recently the FAA approved regional jet operations at SUN. 

This development has dramatically increased SUN’s air service opportunities. 

The Sun Valley area is isolated from alternate airports. Boise Airport, the nearest 

small hub airport, is 150-plus miles to the west or an estimated 2.4 hour drive in 

good weather conditions. The nearest medium or large hub airport is Salt Lake 

City, an estimated 285 miles distant or over a four-hour drive. 

Service has been declining in the SUN market. Since 2003, SUN’s seats have 

decreased by 53 percent with the loss of Boise and Oakland service and the 

significant reduction in annual departures to Los Angeles, Salt Lake City, and 

Seattle. Compared to other summer and winter resort destinations such as 

Aspen, Eagle/Vail, and Jackson Hole, SUN is significantly underserved with the 

number of available seats and nonstop destinations considerably lower than the 

other resort destinations putting the Sun Valley area at a serious disadvantage. 

T This section contains: 

 Project goals 

 Description of the 

Strategic Plan 

 Highlights of the grant 

application 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Application Highlights

2 

Significantly Higher Fares 

With limited air service, local residents and visitors are subject to significantly 

higher fares. Over the last five years, SUN’s average fares have far exceeded 

other airports within the state of Idaho, the state average, region average, and 

national average. In 2012, SUN’s one-way, domestic airfares exceeded the state 

of Idaho average by $25, the Northwest region by $34 and the US average by 

$29. On a market-by-market basis, compared to Boise and Twin Falls, SUN’s 

average fare differentials exceed $100 one-way in four of the top 10 eastern 

markets compared to Boise and five of the top 10 markets compared to Twin 

Falls. Improved eastern connectivity will help to alleviate these high fares. 

Community Involvement and Support 

Friedman Memorial Airport Authority, the Fly Sun Valley Alliance, the Sun Valley 

Marketing Alliance and the Sun Valley Resort have formed a public-private 

partnership in support of this application. Cooperatively, these organizations 

have a history of successful initiatives with broad support from the community. To 

support this air service initiative, the Airport Authority and community will fund 32 

percent of the proposed $739,000 Strategic Plan. Non-airport revenue sources 

will fund 25 percent ($175,000) of the $709,000 cash requirement. This is a 

strong commitment by the local community to improve service to 

eastern destinations. 

Demonstrated Ability to Implement Project 

History indicates that the public-private partnership and local businesses have 

the ability to successfully implement this project. In 2002, with the help of a 

SCASDP grant, the community enticed Horizon Air/Alaska Airlines to enter the 

Los Angeles market. The service was successful, and Alaska continues to serve 

the market over a decade later. As shown, this partnership has been successful 

in past air service efforts and is dedicated to the success of this initiative. 

Far Reaching Benefits 

Due to the presence of Sun Valley Resort the economy of the Sun Valley/Wood 

River Valley is largely based on tourism. Tourism is the economic backbone of 

the region. The area is home to Sawtooth National Recreation area, Silver Creek 

(world-class fly fishing), and Craters of the Moon National Monument. 

In addition to the travel requirements of the tourist industry, local businesses and 

residents need to be connected to the national air transportation system. Multiple 

global companies are headquartered in the Sun Valley area. These companies 

among others rely heavily on air service to SUN to conduct business. In addition, 

many local area residents commute by air to jobs outside the area. 

Cooperatively, the 

public-private 

partnership has a 

history of successful 

initiatives with broad 

support from the 

community. 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service Environment

3 

Section 2. Air Service 

Environment 

he Sun Valley area is a year-round, world-renowned destination for 

outdoor and cultural enthusiasts, with strong summer, fall and winter 

visitation. It is home to Sun Valley, the nation’s first destination ski resort 

developed in 1936, and provides world-class skiing as well as numerous outdoor 

pursuits. This section demonstrates the community’s economic dependence on 

commercial air service at the local airport. 

 

Isolated Central Idaho Catchment Area 

SUN is located in Hailey, Idaho, 12 miles south of Ketchum/Sun Valley. The 

counties of Camas and Blaine, Idaho are considered SUN’s primary service area. 

Exhibit 2.1 shows the geography of the Sun Valley area located in the Wood 

River Valley and encompasses a large portion of Central Idaho. The towns of 

Hailey and Bellevue lie 11 to 14 miles to the south of Sun Valley and are home to 

the majority of the residents of Blaine County. To the north lies the 750,000-acre 

Sawtooth National Recreation Area. 

Within a 25-mile radius is a population of 21,990, increasing to 37,495 within a 

50-mile radius (source: ESRI Business Analyst Online). The primary SUN user, 

however, are visitors with 60 percent of SUN passengers visiting the Sun Valley 

area. An additional 17 percent are second homeowners. 

EXHIBIT 2.1 SUN ISOLATED LOCATION 

Despite the shortage of service offered at SUN, Sun Valley area residents and 

tourists rely on it for commercial air service due to the long travel time to 

competing airports (as shown in Table 2.1, next page). The 151-mile drive to 

T This section contains: 

Description of the Sun 

Valley community in 

relation to air service 

SUN
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service Environment

4 

Boise Airport can take an estimated 2.4 hours to travel not considering poor 

winter travel conditions or congestion. Twin Falls’ Magic Valley Regional Airport 

to/from the Sun Valley resort area takes around 1.6 hours to drive, irrespective of 

winter driving conditions. Pocatello and Idaho Falls’ airports would each take 2.5 

plus hours to access. 

While Boise offers low-fare 

service by airlines such as 

Southwest Airlines and Allegiant 

Air, Boise is classified as a small 

hub airport and has limited 

service. The nearest medium or 

large hub airport is Salt Lake 

City, an estimated 285 miles 

distant or over a four-hour drive. 

Considering drive distances, SUN is the only convenient connection for visitors 

and local outbound passengers to the national air transportation network. 

Convenient air access to this destination resort community is crucial for the 

health of its tourist-based economy and to local non-tourism global businesses. 

Tourism - the Foundation of the Local Economy 

Due to the presence of Sun Valley Resort the economy of the Sun Valley/Wood 

River Valley is largely based on tourism. Tourism is the economic backbone of 

the region. SUN provides access to all of central Idaho and is the gateway to the 

Sawtooth National Recreation area, Silver Creek (world-class fly fishing), Craters 

of the Moon National Monument, Salmon River area, and the Frank Church-River 

of No Return Wilderness area. Additional information on winter and summer 

tourism follows. 

Winter Tourism 

In the winter, the Sun Valley area offers world-class Alpine skiing on two 

mountains. We also offer world-class Nordic skiing and are an official US 

Olympic/Paralympic training site. The area offers ice skating, sleigh rides, 

snowshoeing, hot springs, snowmobiling, galleries, theatre, and more. Sun Valley 

was rated as the #7 US Ski Resort by SKI Magazine and was in the Top 10 Ski 

Resorts by Men’s Fitness. Signature winter events include: Holiday Winter 

Wonderland in December, the Sun Valley Nordic Festival in February, and the 

Sun Valley Film Festival and Solfest in March. 

Summer Tourism 

In the summer, the Sun Valley area continues to offer unrivaled recreation. 

Visitors enjoy four golf courses, biking, hiking, climbing, whitewater rafting, fly 

fishing, horseback riding, and other outdoor recreation. In addition, the Sun 

TABLE 2.1 DRIVE TIME TO ALTERNATE 

AIRPORTS 

AIRPORT 

RESORT AREA TO: 

MILES DRIVE TIME 

SUN 12 0.3 hrs 

Twin Falls (TWF) 97 1.6 hrs 

Boise (BOI) 151 2.4 hrs 

Idaho Falls (IDA) 156 2.5 hrs 

Pocatello (PIH) 169 2.7 hrs 

Due to the presence of 

the Sun Valley Resort, 

the economy of the 

Sun Valley/Wood River 

Valley is largely based 

on tourism. 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service Environment

5 

Valley area offers world-class arts and culture with summer performances of the 

Sun Valley Summer Symphony and top galleries, concerts, theatre and other 

events. The Sun Valley area has been named one of the Top 10 Adventure 

Towns by National Geo Adventure and one of the Top 75 Resort Golf 

Destinations by Golf Digest. Signature summer and fall events include: 

 Sun Valley Summer Symphony 

 Ride Sun Valley Bike Festival 

 Sun Valley Summer Ice Show 

 Sun Valley Writers Conference 

 Sun Valley Arts Festival 

 Sun Valley Wine Auction 

 Sun Valley Harvest Festival 

 Sun Valley Wellness Festival 

 Wagon Days 

 Trailing of the Sheep Festival 

Local Global Business 

In addition to the travel requirements of the tourist industry, local residents need 

to be connected to the national air transportation system. The Sun Valley area 

attracts a highly skilled and well educated labor force. There are a significant 

number of veteran rehabilitation facilities dependent on air service. In addition, 

multiple companies are headquartered in the Sun Valley area including: 

 POWER Engineers is a global consulting, engineering firm with a worldwide client base and 33 US offices, three international offices, and 

1,700 employees (200-plus in the Sun Valley area). 

 Smith Sport Optics has 75 employees, with 40 employees that travel 

extensively. Their parent company, Fafilo, is the second largest optical 

company in the world and is based in Italy. 

 Marketron is a market leader in media advertising software with six US 

offices, 120 employees (45 in the Sun Valley area) and an active, 

traveling sales force. 

 Rocky Mountain Hardware is a high-end construction hardware 

manufacturer with 85 employees and a traveling sales force. 

 Scott Sports is a top sporting hard-goods manufacturer (e.g. bikes, 

skis). They have four offices in the US with 125 total employees (55 in 

the Sun Valley area). They have a traveling sales force and a parent 

company located in Switzerland; however, the sales force will be 

relocating to Salt Lake City due to limited Sun Valley air service. 

 ESS Eye Pro is the sole authorized issuer of eyewear to the US Marine 

Corp and a leading supplier to other branches of the Department of 

Defense and military/security personnel in more than 100 nations. 

These companies, along with others and a variety of nationally-recognized 

organizations such as Higher Ground (Sun Valley’s renowned Wounded Warrior 

program), rely heavily on SUN air service to conduct business.
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service – Existing and Historical

6 

Section 3. Air Service – 

Existing and Historical 

his section provides an overview of the current and historical air service at 

SUN. Carriers providing service, service frequency, and destinations 

offered are included in the discussion. A summary of historical air service 

is also included. A description of air service development efforts concludes 

the section. 

Existing Air Service 

Given the seasonal nature of the Sun Valley tourism market, commercial air 

service including the number of departures and seats available per week and 

nonstop destinations fluctuate with the demand of the season. Table 3.1 shows 

SUN’s scheduled air service from January through December 2013. 

In 2013, service will be provided to three nonstop markets including Los Angeles, 

Salt Lake City and Seattle. The Los Angeles and Seattle services, provided by 

Alaska Airlines with the 76-seat Bombardier Q400 turboprop aircraft, is provided 

seasonally with one roundtrip per day in the winter and summer seasons. Delta 

Connection operated by SkyWest Airlines provides annual service to Salt Lake 

City with the 30-seat Embraer Brasilia 120 turboprop aircraft. The Salt Lake City 

service fluctuates with seasonal demand with weekly departures almost doubling 

during July and August. In total, SUN’s peak months are during the summer with 

63 total departures and 2,534 seats in July and August. Air service tapers off 

during the low seasons at just 21 weekly departures and only 630 seats. 

Although SUN has been approved for regional jet operations, all service is 

currently operated with turboprop aircraft. 

TABLE 3.1 EXISTING AIR SERVICE - AVERAGE WEEKLY DEPARTURES/SEATS 

DESTINATION AIRLINE AIRCRAFT ITEM 

CY 2013 

JAN/ 

FEB MAR 

APR/ 

MAY JUN 

JUL/ 

AUG SEP OCT NOV DEC

Los Angeles, 

CA Alaska Bombardier 

Q400 

Dept 7 7 7 7 

Seats 532 532 532 532 

Salt Lake City, 

UT Delta Embraer 

Brasilia 120 

Dept 28 35 21 37 49 35 28 21 25 

Seats 840 1,050 630 1,110 1,470 1,050 840 630 750 

Seattle, 

WA Alaska Bombardier 

Q400 

Dept 7 7 3 7 7 

Seats 532 532 228 532 532 

Average Weekly Departures 42 49 21 40 63 49 28 21 25 

Average Weekly Seats 1,904 2,114 630 1,338 2,534 2,114 840 630 750 

Source: Diio Mi; as of July 2013; outbound only 

 

T This section contains: 

 Description of existing air 

service 

 Synopsis of historical air 

service 

 Description of air service 

development efforts 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service – Existing and Historical

7 

Historical Air Service 

Air service at SUN has been declining over the last four years lessened 

somewhat by the use of revenue guarantees supported by the local community. 

This subsection summarizes SUN’s air service history including: destinations, 

traffic levels, and service providers as well as obstacles to air travel demand. 

Destinations, Service Providers, and Traffic Levels 

Since 2003, passengers at SUN have fluctuated with the change in seating 

capacity (Exhibit 3.1). Onboard passengers peaked in 2005/2006 at over 73,000 

dropping since then to less than 50,000 in 2012, representing a decrease of 37 

percent. Seats peaked in 2003 and have since dropped by 53 percent. 

EXHIBIT 3.1 HISTORICAL PASSENGERS AND SEATS 

Source: Diio Mi 

Table 3.2 displays SUN’s total departures for the past 10 years by destination 

and airline. Total departures and seats peaked in 2003. The primary changes 

since 2003 is the loss of Boise and Oakland service and the significant reduction 

in annual departures to Los Angeles, Salt Lake City, and Seattle. Declining air 

service has a direct impact on tourism and the local economy. 

TABLE 3.2 HISTORICAL DEPARTURES/SEATS BY DESTINATION AND AIRLINE 

DESTINATION AIRLINE 

TOTAL DEPARTURES BY CALENDAR YEAR 

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

Boise, ID Alaska 145 0 9 65 5 0 24 178 2 0 

Idaho Falls, ID Alaska 0 0 0 0 0 107 69 0 0 0 

Los Angeles, CA Alaska 313 149 169 155 171 140 80 142 171 157 

Oakland, CA Alaska 9 76 86 82 96 71 0 0 0 0 

Salt Lake City, UT Delta 2,983 2,881 2,930 2,950 3,035 2,714 2,311 2,066 1,864 1,472 

Seattle, WA Alaska 346 326 324 285 271 300 153 134 176 176 

Twin Falls, ID Delta 115 181 185 116 64 66 23 0 0 0 

Total Departures 3,909 3,612 3,701 3,652 3,641 3,397 2,659 2,520 2,212 1,805 

Total Seats 144,947 133,155 134,376 134,667 133,340 129,913 94,740 96,446 82,362 69,430

Source: Diio Mi 

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

12-Months Ended

Seats Passengers
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service – Existing and Historical

8 

Extenuating Factors that have Affected Air Service 

There are two primary factors which have affected SUN’s air service. The first 

factor is that the Sun Valley market is primarily a discretionary travel market. It is 

a prominent summer and winter resort destination prized by leisure travelers and 

second home owners. Travel demand decreases significantly during the spring 

and fall shoulder seasons when travel is primarily business related. 

The second factor impacting SUN’s air service is the operational limitations of the 

airport. Runway length, elevation, temperature, and approach/departure 

requirements restrict the aircraft types and flight segment distances that can be 

operated at the airport without incurring unacceptable weight/capacity restrictions 

which in turn limits markets that can be served. Recently, Canadair Regional Jet 

700 aircraft have been approved for operations at SUN and have significantly 

expanded the air service opportunities for the Sun Valley market. 

Past Air Service Development Efforts 

SUN provides local residents and businesses in the Wood River Valley with 

access to the national air transportation system and feeds the local tourism 

industry with visitors from all over the world. In recognition of the importance of 

air service to the region, Fly Sun Valley Alliance was formed in 2008 including 

members from the cities of Hailey, Ketchum, Sun Valley, Blaine County and 

major local businesses to increase support for air service. Members of the 

Alliance have worked closely with the airlines serving SUN. Table 3.3 provides 

an overview of air service development efforts over the last five years. 

TABLE 3.3 PAST AIR SERVICE DEVELOPMENT EFFORTS 

YEAR INITIATIVE RESULT 

2009 

Horizon Air Headquarters Meeting Completed 

SkyWest Airlines Headquarters Meeting Completed 

Negotiated agreement with Horizon to retain service to 

Seattle in 2010 Completed 

Submitted SCASDP proposal Unsuccessful 

2010 Route Forecast - Frontier DEN Completed 

2011 Retention/Diversion Study Completed 

2012 

SkyWest Airlines Headquarters Meeting Completed 

Route Forecast - United DEN/SFO Completed 

Retention/Diversion Study Completed 

Airfare Monitoring Completed 

2013 

United Airlines Headquarters Meeting Completed 

Network USA 2013 (Met with Alaska, Delta, Seaport, 

SkyWest, United) Completed 

In recognition of the 

importance of air 

service to the region, 

Fly Sun Valley 

Alliance was formed 

in 2008 to increase 

support for air service 

and have worked 

closely with the 

airlines serving SUN. 
Application under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service Needs and Deficiencies

9 

Section 4. Air Service 

Needs and Deficiencies 

he Air Service Needs and Deficiencies section identifies the issues at 

SUN that have stunted the growth of commercial air service to the 

community. This section provides a detailed analysis to demonstrate that 

the Sun Valley area is underserved, and the average airfares in this community 

are higher than other comparable communities. 

Underserved Resort Destination 

The Sun Valley area’s visitors and residents do not have adequate commercial 

air service within an acceptable proximity. SUN’s air service fluctuates 

considerably with seasonal demand and is significantly lower than other resort 

destinations. A high percentage of air travelers are forced to use alternate 

airports, primarily Boise Airport, a distant 150-plus miles away. 

Comparison to Other Resort Destinations 

SUN’s air service has been limited to Delta Air Lines’ turboprop service to its Salt 

Lake City hub, and Alaska Airlines’ Los Angeles and Seattle turboprop service. 

Compared to other summer and winter resort destinations such as Aspen, 

Eagle/Vail, and Jackson Hole, SUN is significantly underserved. Table 4.1

provides a comparison of air service provided at other resort communities. While 

the number of flights at SUN exceeds some of the other resort airports, the 

number of seats and nonstop destinations at SUN are significantly lower. 

TABLE 4.1 COMPARISON OF AIR SERVICE AT RESORT AIRPORTS 

RESORT 

AIRPORT 

SCHEDULED CY 2012 

FLIGHTS SEATS DESTINATIONS 

Aspen, CO 5,195 345,526 6 

Hayden, CO 1,812 165,733 8 

Jackson Hole, WY 3,243 359,212 10 

Montrose, CO 1,736 103,828 9 

Sun Valley, ID 2,029 79,224 3 

Vail/Eagle, CO 2,152 288,266 11 

Source: Diio Mi 

Until recently, SUN’s airport limitations precluded consideration of similar 

services to other resort communities; however, with the approval of regional jet 

operations, the opportunity for the number of destinations and type of aircraft has 

been greatly improved. The air service support program funded through this 

grant application is critical to improving SUN’s air service. 

T This section contains: 

Description of the Sun 

Valley area’s air service 

needs and deficiencies 
Application under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service Needs and Deficiencies

10 

Significant Seasonal Reductions 

SUN’s flights are significantly reduced in off-peak months 

leaving the community with very limited air service. Table 4.2

shows SUN’s monthly flights in 2012. Departures in the offseason are almost half of the winter season departures and 

less than half of the summer season departures. This leaves a 

major gap in air service in several months of the year. Service 

to an additional hub could become year-round as the 

market matures. 

High Diversion to Alternate Airports 

In 2012, SUN conducted a retention/diversion study to 

estimate the number of passengers using alternate airports. It 

was estimated that SUN has a passenger retention rate of 28 

percent, with 72 percent driving to alternate airports (Exhibit 

4.1). This equates to an estimated 368 passengers daily each 

way on the roadways due to inadequate local air service. 

The majority of diverting passengers choose Boise and accept 

the almost 2.5 hour drive to access adequate air service. An 

additional six percent of SUN catchment area travelers use 

Salt Lake City, a drive of over four hours. 

On a market-by-market basis, the highest diversion occurs in the eastern 

markets. Table 4.3 shows the top 10 SUN catchment area eastern destinations. 

Denver is the second largest eastern destination and ranks as SUN’s fifth overall 

largest market. The Denver hub could provide access to many of SUN’s top 

eastern destinations and relieve the high diversion to alternate airports. 

TABLE 4.3 SUN TOP 10 TRUE MARKETS 

RANK DESTINATION 

ORIGIN AIRPORT % 

SUN BOI SLC OTHER PDEW 

1 New York, NY (JFK) 28 41 22 9 24.8 

2 Denver, CO 15 75 5 5 18.8 

3 Philadelphia, PA 10 75 9 6 10.0 

4 Washington, DC (IAD) 9 79 3 10 9.8 

5 Houston, TX (IAH) 11 65 22 2 8.9 

6 Dallas, TX (DFW) 32 45 15 8 7.0 

7 Boston, MA 46 44 5 5 6.2 

8 Detroit, MI 12 55 14 19 6.1 

9 Minneapolis, MN 25 71 1 3 5.3 

10 New York, NY (LGA) 10 87 3 0 5.1 

Total domestic 28 62 6 4 484 

Total international 15 70 14 1 24.7 

All markets 28 62 6 4 508.7 

TABLE 4.2 SCHEDULED DEPARTURES BY PERIOD 

IN 2012 

TIME 

PERIOD 

DESTINATION/HUB TOTAL 

LAX SEA SLC FLIGHTS 

Dec-Mar 103 103 570 776 

Jun-Sep 87 106 662 855 

Off-peak 0 0 398 398 

Total 190 209 1,630 2,029 

Source: Diio Mi 

EXHIBIT 4.1 SUN CATCHMENT AREA AIRPORT USE

SUN

28%

BOI

62%

SLC

6%

Other

4%
Application under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Air Service Needs and Deficiencies

11 

Excessive Airfares 

Over the last five years, SUN’s average fares have far exceeded other airports 

within the state of Idaho, the state average, region average, and national 

average. Shown in Table 4.4, in 2012, SUN’s one-way, domestic airfares 

exceeded the state of Idaho average by $25, the Northwest region by $34 and 

the US average by $29. Over the last 10 years, SUN’s domestic airfares 

exceeded the state of Idaho in each year, ranging from $25 to $53 one-way. 

SUN’s domestic fares have exceeded the Northwest region average fares by as 

much as $48 one-way (2009). 

TABLE 4.4 AVERAGE DOMESTIC AIRFARE (NON-DIRECTIONAL) 

AIRPORT 

AVERAGE DOMESTIC FARE 2012 

SUN 

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 DIFF 

SUN $151 $159 $168 $195 $182 $193 $190 $181 $189 $205 

Boise, ID (BOI) $110 $113 $118 $130 $131 $135 $132 $145 $159 $176 $29 

Idaho Falls, ID (IDA) $144 $151 $160 $192 $193 $195 $192 $204 $204 $204 $2 

Lewiston, ID (LWS) $123 $120 $131 $165 $163 $154 $160 $165 $178 $190 $15 

Pocatello, ID (PIH) $124 $120 $150 $210 $179 $172 $134 $155 $170 $166 $39 

Twin Falls, ID (TWF) $128 $127 $154 $208 $174 $145 $132 $124 $115 $166 $39 

Idaho $116 $119 $125 $142 $140 $144 $140 $152 $164 $180 $25 

Northwest Region $133 $133 $140 $151 $151 $155 $141 $155 $166 $172 $34 

United States $134 $131 $135 $147 $147 $157 $143 $157 $170 $176 $29 

Source: Diio Mi 

To further demonstrate the excessive fares in the SUN market, Table 4.5

compares SUN’s average fares in the top 10 eastern markets to the average 

fares for Boise and Twin Falls. 

TABLE 4.5 AVERAGE FARE COMPARISON – ONE-WAY 

SUN TOP 10 

EASTERN MARKETS 

AVERAGE FARE ($) SUN FARE VS. ($) 

 SUN BOI TWF BOI TWF 

New York, NY (JFK) 370 291 347 79 23 

Denver, CO 179 149 137 30 42 

Philadelphia, PA 407 237 278 170 129 

Washington, DC (IAD) 382 245 186 137 196 

Houston, TX (IAH) 331 230 178 100 153 

Dallas, TX (DFW) 306 188 161 118 145 

Boston, MA 339 267 266 72 73 

Detroit, MI 308 257 197 51 111 

Minneapolis, MN 251 230 213 21 39 

New York, NY (LGA) 313 266 398 47 (86) 

All domestic markets 205 176 166 29 39 

Source: Diio Mi 

SUN’s average one-way fares exceed Boise fares by $100 or more in four of the 

top 10 markets and five of the top 10 markets when compared to Twin Falls. In 

markets such as Philadelphia and Washington Dulles, the one-way fare 

differential is almost $200 more. Nonstop service with eastern connecting 

opportunities will provide more competition in the SUN market and lower airfares 

to SUN’s top eastern destinations. 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Strategic Plan – Air Servic

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Section 5. Strategic Plan – 

Air Service 

he previous section, Air Service Needs and Deficiencies, identified 

improved service and competition to eastern destinations as the Sun 

Valley area’s primary air service need. This section establishes the project 

goal and lays out a plan for its achievement. An in-depth analysis of the 

proposed air service is summarized in this section along with an alternate plan. 

Because SUN participated in a prior grant award, a summary of the project and 

how the goals differed from this project is presented. 

Project Goal 

The goal of the Strategic Plan is to acquire nonstop service to a hub that 

significantly improves connections to eastern destinations adding key 

destinations not currently served via Salt Lake City. This goal will provide much 

needed additional capacity in the market as well as provide competition to 

eastern destinations thereby lowering airfares. 

Proposed Air Service 

The most beneficial hub service to provide improved eastern connectivity is 

United Airlines’ hub at Denver. United has the type of aircraft that could serve the 

SUN market and provides nonstop service to 118 domestic markets and 13 

international markets from Denver. Denver is also the second largest eastern 

destination for Sun Valley area travelers and the fifth largest overall market. The 

proposed service has been discussed with United and United has provided a 

letter of support for this Strategic Plan (refer to Appendix A). 

Detailed Market Analysis 

A detailed market analysis has been completed for United service to Denver 

International Airport. Key points of the analysis are described below. Projections 

were completed for a one roundtrip schedule on a 66-seat Canadair Regional Jet 

700 aircraft. With the seasonality of the SUN market, the pro forma includes 

separate analyses for summer and winter service. The operating and market 

assumptions are listed below: 

 United will capture a share of the existing market currently served by 

Delta Air Lines with a lesser impact on Alaska Airlines. 

 The Denver local market will be stimulated 200 percent and connecting 

markets will be stimulated up to 25 percent depending on United’s 

market share of existing passengers. 

T This section contains: 

 A Strategic Plan for 

meeting the Sun Valley 

area’s air service 

needs and deficiencies 

 Alternate plan to meet 

the goal 

 A discussion of how 

the new goal materially 

differs from SUN’s 

previously awarded 

project 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Strategic Plan – Air Servic

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 United’s SUN-Denver service will capture a share of the passengers 

now driving to an alternate airport (i.e. Boise, Twin Falls). 

 United’s fully allocated operating cost between SUN and Denver was 

estimated using Diio Mi Form 41 data for SkyWest, adjusted by the 

manufacturer’s cost curve and SkyWest feedback. 

Table 5.1 provides a summary of the United Denver market analysis for one 

roundtrip per day on a 66-seat regional jet for the winter and summer seasons. 

Passenger projections were based on a mature market (i.e., passenger 

projections would be at 100 percent on the first day of service). It is estimated 

that one roundtrip per day will generate $531,086 (15 percent margin) in system 

profit for United. The SUN-Denver route is forecast to be a strong economic 

performer for United after ramp-up is complete. 

TABLE 5.1 SUMMARY OF ROUTE FORECAST 

STATISTICAL 

CATEGORY 

SUN-DEN 

WINTER SUMMER COMBINED 

Days of operation 100 70 170 

Seats/departure 66 66 66 

Onboard passengers 8,434 5,404 13,838 

Total seats 13,200 9,240 22,440 

Load Factor 64% 58% 62% 

Average fare $251 $253 $252 

System revenue $2,114,586 $1,368,826 $3,483,412 

System cost $1,759,279 $1,193,047 $2,952,326 

System profit/loss $355,307 $175,779 $531,086 

System margin 17% 13% 15% 

Although it is estimated that United will earn a profit after the SUN-Denver market 

matures, United will not generate this amount of profit at start-up. New markets 

typically have losses during the first year of operation, hence the need for a 

revenue guarantee to temper the airline’s risk. The uncertainty in the airline 

industry including the fluctuating cost of fuel will play a large part in the revenue 

guarantee negotiations with United. 

For purposes of estimating the shortfall, for the first month of service (June 

2014), it is estimated that 60 percent of the projected passengers in a mature 

market will be attained. It is estimated that the market will reach full maturity by 

the end of the winter season. The ramp-up period is speculative and may differ 

depending on the effectiveness of the marketing campaign. It is also assumed 

that fares will be reduced by an estimated 10 percent. 

To calculate the effect of the ramp-up period on net profit, Table 5.2, next page, 

shows revenue by month from the June 2014 start date, the associated cost per 

month, and the net shortfall. With a first year estimated cost of $2.95 million, the 

service will incur an estimated shortfall of $480,361. 

Although it is estimated 

that United will earn a 

profit after the SUNDenver market matures, 

United will not generate 

this amount of profit at 

start-up. 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Strategic Plan – Air Servic

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TABLE 5.2 SERVICE RAMP-UP/START-UP PERIOD 

MONTH 

DAYS 

OPERATING 

ESTIMATED 

O&D PAX 

RAMPUP % RAMP-UP 

ADJ. PAX REVENUE 

ESTIMATED 

COST 

NET 

SURPLUS/ 

SHORTFALL 

June 8 618 60% 371 $84,476 $136,348 ($51,872) 

July 31 2,393 65% 1,556 $354,624 $528,349 ($173,726) 

August 31 2,393 70% 1,675 $381,902 $528,349 ($146,447) 

September 0 0 0% 0 $0 $0 $0 

October 0 0 0% 0 $0 $0 $0 

November 0 0 0% 0 $0 $0 $0 

December 17 1,434 75% 1,075 $242,649 $299,077 ($56,429) 

January 31 2,615 80% 2,092 $471,976 $545,376 ($73,401) 

February 28 2,362 90% 2,125 $479,588 $492,598 ($13,010) 

March 24 2,024 100% 2,024 $456,751 $422,227 $34,524 

April 0 0 0% 0 $0 $0 $0 

May 0 0 0% 0 $0 $0 $0 

Total 170 13,839 N/A 10,918 $2,471,965 $2,952,326 ($480,361) 

Source: Mead & Hunt, Inc.; Note: Includes ramp-up and 10% reduction in fares during the start-up period 

Alternate Plan 

If United does not provide nonstop service to Denver International Airport by 

December 31, 2014, alternate carriers will be approached for service to Denver 

or another hub that provides improved eastern connectivity. Minneapolis, 

Chicago and Dallas represent potential hub opportunities and discussions will be 

initiated late in 2014 if Denver service is not planned. 

Previous Grant Recipient - New Project and Goals 

In 2002, the US Department of Transportation (DOT) awarded the City of 

Hailey/SUN a SCASDP grant. The 2002 grant included the following goals: 

 Stimulate year-round travel between Blaine County and its number one 

destination, Los Angeles. 

 Balance the seasonality of the local economy by improving year-round 

movement of people between Blaine County and Los Angeles. 

 Improve the air service options available at SUN, an airport that is 

significantly restricted by airfield elevation and mountainous terrain. 

 Reduce the number of air travelers that must drive 154 miles to Boise to 

access lower airfares and nonstop service. 

The $944,243 project included $600,000 in federal funds to guarantee revenue 

for service. It was successful in establishing the Los Angeles service that 

continues today on a seasonal basis. 

The current application seeks assistance with an air service support program to 

initiate nonstop service to a hub with significant eastern connectivity. This project 

clearly has different goals than the previous SCASDP grant project. This 

application qualifies as a new project and meets the requirements of 

the SCASDP. 

This application 

qualifies as a new 

project and meets the 

requirements of the 

SCASDP. 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Strategic Plan – Implementation & Fundin

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Section 6. Strategic Plan – 

Implementation and Funding 

here the previous section provided details and analysis associated 

with the proposed service, this section, Strategic Plan – 

Implementation and Funding, details SUN’s plan for effectively 

addressing the associated risk. A legal sponsor responsible for administering the 

program has been designated, and a public-private partnership has been formed 

to actively participate in implementing the proposed project. In addition, this 

section identifies self-sufficiency of the service as an integral part of the 

community’s goals and provides a description of the community’s plan to 

continue with the project if it is not self-sustaining after the grant award expires. A 

detailed description of the funding necessary for implementation of the Strategic 

Plan, including federal and non-federal contributions, is included. 

Public-Private Partnership 

SUN is jointly owned by the City of Hailey and Blaine County, Idaho and is 

operated by the Friedman Memorial Airport Authority, the sponsor of this grant 

application. For the purpose of this application, Friedman Memorial Airport 

Authority, Fly Sun Valley Alliance, Sun Valley Resort, and the Sun Valley 

Marketing Alliance have formed a public-private partnership (refer to community 

support letters in Appendix A). 

All partners in the public-private partnership will be fully involved in the execution 

of the Strategic Plan (Table 6.1). Friedman Memorial Airport Authority will 

execute federal grant offers, process all associated reimbursement requests, and 

oversee grant administration. Fly Sun Valley Alliance will manage the overall new 

air service plan implementation. Sun Valley Resort and Sun Valley Marketing 

Alliance will execute the marketing plan for the new service. Together these 

partners form a team committed to improving and retaining air service at SUN. 

Incentive and Support Plan 

The current airline financial landscape with airline bankruptcies and volatile fuel 

prices is rough. Accordingly, airlines are highly risk averse requiring communities 

to partner with them to reduce risk. This incentive and support plan has two 

primary objectives: first, to effectively market the service to inbound travelers and 

local residents; and second, to offset an airline’s liability during the passenger 

ramp-up period. In short, the partnership’s task is to market the new service and 

cover the airline’s risk while passenger traffic builds. Each of the elements 

included in the support plan are described below. 

W

TABLE 6.1 PUBLIC-PRIVATE 

PARTNERS 

PUBLICPRIVATE 

PARTNER ROLE 

Public: 

Friedman 

Memorial 

Airport 

Authority 

Grant 

administration 

 Private: 

Fly Sun Valley 

Alliance 

Air service plan 

management 

Sun Valley 

Resort Marketing plan 

development 

and 

implementation 

Sun Valley 

Marketing 

Alliance 

This section contains: 

 Description of the 

public-private 

partnership 

 Designation of a legal 

sponsor 

 Funding necessary for 

implementation of the 

Strategic Plan 

 Sustainability of the 

project 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Strategic Plan – Implementation & Fundin

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Revenue Guarantee 

An airline’s consideration of nonstop service between SUN and a hub with 

significant eastern connections depends heavily on financial support. In the 

current airline and economic environment, it has become expected that a small 

community share in an airline’s risk of service start-up. Depending on the aircraft 

used and frequency, airlines are typically requesting $500,000 to $1 million 

revenue guarantees. Like most communities, SUN does not have the funds 

available to offer such a guarantee without the assistance of the US DOT through 

this program. 

Based on preliminary estimates of the shortfall in the first year of service (Table 

5.2, page 14) and recent information on revenue guarantees in other similar 

markets, it is anticipated that a minimum $500,000 revenue guarantee will be 

required. Terms of the revenue guarantee agreement are subject to further 

negotiations and changing industry conditions. 

Marketing Campaign 

In this environment, destination specific marketing efforts are largely left to the 

community. Marketing programs must be targeted to the unique market and 

designed to increase market awareness. The public-private partnership proposes 

a marketing program designed to increase the Sun Valley area’s reputation as 

the nation’s premiere destination resort and create new service awareness in 

order to make this service sustainable. 

The target audience is primarily potential 

visitors to the Sun Valley area. Table 6.2

provides the marketing budget. Sun Valley 

Resort and Sun Valley Marketing Alliance will 

use a media firm to coordinate timing and 

optimal placement of each element of the 

marketing campaign and will be responsible for 

oversight of the marketing campaign. The 

following marketing efforts will be included in 

this campaign. 

 Digital presence in key on-line sites 

 A mix of traditional advertising which 

could encompass print, radio or outof home 

 PR outreach to key publications 

 Utilization of owned media (social 

media, blog, database) to 

encourage travel 

TABLE 6.2 MARKETING BUDGET 

MEDIA VEHICLE BUDGET

Online 

Ski-specific 

sites 

Onthesnow.com Powder.com 

$50,000 Skinet.com liftopia.com 

weather.com Snowforecast.com 

sno-country.com 

Search 

engines 

Google, Yahoo, Bing and travel specific 

search engines, Google ad words $20,000 

Video display 

ads 

YouTube, Tremor Media 

Video.egg $15,000 

Yahoo! Network 

Target city 

local sites 

Travel section sponsorships on 

newspaper/broadcast sites, ski council 

sites 

$20,000 

Other online 

sites 

TripAdvisor links $25,000 Facebook, Twitter, other social sites 

Email Targeted e-mails to Opt-in Travel category lists, 

skiers, travel agents, airline frequent fliers, etc. $10,000 

Print 

Travel sections in local print 

Local magazines, airline publications, golf 

publications $30,000 

PR Target 

media 

News releases, media outreach 

& press trips, etc. $5,000 

Local 

emphasis 

Airport signage, print/radio, online, email in airport 

catchment area $10,000 

Total $185,000 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Strategic Plan – Implementation & Fundin

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The marketing campaign created by an outside firm addresses awareness in the 

local market but concentrates the effort on potential visitors from Denver and 

eastern markets beyond Denver. This aggressive and comprehensive air service 

marketing campaign will ensure long-term continuation of this air 

service initiative. 

Fee Waivers 

The incentive program includes a landing fee waiver for the first 12 months of 

seasonal air service. The fee waiver will vary depending on the type of aircraft 

used and the frequency of service. The fee waiver is estimated to be $18,000. 

Project Continuation and Sustainability 

The preliminary analysis indicates that after the ramp-up period, daily service to 

Denver will be profitable (i.e. self-sustaining). However, a rise in fuel costs or any 

number of factors could result in fewer passengers or less ticket revenue than 

anticipated. During the course of the project, the public-private partnership will 

track the performance of the service, and, if at the end of the first nine months of 

service it is not meeting expectations, the partners will evaluate the program and 

draw up a plan that targets the shortcomings. Depending on the specifics at the 

time, the public-private partners will consider appropriate support mechanisms. 

Strategic Plan Funding 

The public-private partnership is requesting US DOT assistance in funding 68 

percent, or $500,000, of the Strategic Plan. Table 6.3 provides the Strategic Plan 

budget by element and sources of funding. SUN and the community will fund 32 

percent of the proposed Strategic Plan. Non-airport funding sources will provide 

25 percent of the cash requirement and 25 percent of the funding for the total 

program including in-kind services. 

TABLE 6.3 STRATEGIC PLAN BUDGET 

DESCRIPTION 

FUNDING SOURCE 

TOTAL 

US DOT AIRPORT NON-AIRPORT 

CASH CASH IN-KIND CASH IN-KIND 

Revenue guarantee $500,000 $500,000 

Marketing campaign $10,000 $175,000 $185,000 

Fee waivers $18,000 $18,000 

Monitoring program $24,000 $5,000 $29,000 

Grant administration $7,000 $7,000 

Total $500,000 $34,000 $25,000 $175,000 $5,000 $739,000 

Percent of total project 68% 5% 3% 24% 1% 100% 

Percent of cash contribution 71% 5% N/A 25% N/A 100% 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Schedule and Monitorin

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Section 7. Schedule 

and Monitoring 

his section provides critical milestones to be achieved by the publicprivate partnership. A monitoring program is also provided to track the 

progress and performance of the new service. 

Strategic Plan Schedule and Milestones 

The following target dates are proposed to track the progress of this air 

service initiative: 

TABLE 7.1 STRATEGIC PLAN SCHEDULE 

DATE ACTION ITEM DESCRIPTION 

October 2013 - 

January 2014 

Airline 

meetings/negotiations 

After grant award, SUN will meet 

with airlines at their headquarters 

to discuss nonstop eastern hub 

service. Upon airline interest, the 

terms of the airline incentive 

package will be negotiated. 

FebruaryMarch 2014 

Marketing campaign 

development 

Development of the marketing 

campaign will be completed in 

February/March 2014 in order to 

begin the marketing campaign 60 

days prior to new service initiation. 

April 2014 Marketing initiation 

It is anticipated that the marketing 

campaign will begin by April 2014 

and continue throughout the first 

year of service. 

June 2014 Nonstop Denver 

service 

The service start date is the critical 

date for the rest of the Strategic 

Plan. It is anticipated that, with 

successful airline negotiations, 

service would start in June 2014. 

Service start-up is dependent on 

airline route planning and 

aircraft availability. 

December 2014 Alternate plan 

If an airline has not implemented 

nonstop Denver service by 

December 31, 2014, SUN will 

contact other potential carriers to 

increase connectivity to eastern 

destinations which would meet the 

goals of this grant application. 

T This section contains: 

 The schedule for timely 

completion of the 

project 

 How the community 

will monitor the 

progress of the project 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Schedule and Monitorin

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TABLE 7.1 STRATEGIC PLAN SCHEDULE 

DATE ACTION ITEM DESCRIPTION 

May 2015 Revenue guarantee 

contract completion 

At the end of the first year of 

nonstop service, with a service 

start date of June 2014, the 

revenue guarantee will be 

calculated. If the service start date 

changes due to airline 

circumstances and/or equipment 

availability, the revenue guarantee 

contract term will change 

accordingly. 

 

Monitoring Program 

The monitoring program includes: service performance tracking; impact on 

airfares; and determining the influence of new service on retention at SUN. Table 

7.2 provides the action items and frequency to monitor the Strategic Plan. Fly 

Sun Valley Alliance has committed funds to hire a consultant to monitor advance 

bookings and passenger revenue performance. 

TABLE 7.2 STRATEGIC PLAN MONITORING 

FREQUENCY 

ACTION 

ITEM DESCRIPTION 

Monthly 

Airline 

performance 

Load factors by flight, enplanements, flight 

cancellations 

Market 

performance Passenger ramp-up 

Revenue 

guarantee 

indicators 

Ticket revenue, cost, drawdown 

Quarterly Airfares 

Track walk-up, business, and leisure 

published fares for the top 25 markets to 

ensure fares are competitive with competing 

airports (i.e. Boise and Twin Falls). Fare 

issues will be communicated to incumbent 

airlines. 

9 months Program 

assessment 

Complete an overall assessment of the 

program to determine if additional 

community support is needed beyond 

year one. 

12 months 

True Market 

Estimate 

Complete a true market estimate to evaluate 

the use of SUN by local travelers compared 

to their use of Boise and Twin Falls. Analyze 

output and communicate with airline. 
Application Under the Small Community Air Service Development Program 

Friedman Memorial Airport Authority Appendix A. Airline and Community Letters of Support

Appendix A. Airline and 

Community Letters of Support 

ppendix A includes letters of support for Friedman Memorial Airport 

Authority’s application to the US DOT. Support letters were submitted by 

United Airlines, participants in the public-private partnership, 

government representatives, and members of the community. The letters of 

support are included on the following pages of this Appendix A and are 

listed below. 

Airline 

United Airlines 

Public-private partnership 

Fly Sun Valley Alliance 

Friedman Memorial Airport Authority (refer to cover letter) 

Sun Valley Marketing Alliance 

Sun Valley Resort 

Government 

Blaine County 

City of Hailey 

City of Ketchum 

City of Sun Valley 

Idaho Congressional Delegation 

Idaho State Legislature 

Businesses and Organizations 

Blaine County School District #61 

Haily Chamber of Commerce 

Higher Ground Sun Valley 

Marketron 

POWER Engineers, Inc. 

Rocky Mountain Hardware 

Smith Optics 

St. Luke’s Wood River Medical Center 

Sustain Blaine 

Wood River Economic Partnership 

A

July 12, 2013

Brooke Chapman, Associate Director

Small Community Air Service Development Program

United States Department of Transportation

1200 New Jersey Avenue SE

Washington, DC 20590

Dear Ms. Chapman:

Fly Sun Valley Alliance (FSVA) is pleased to submit this letter of support for the Friedman Memorial 

Airport’s Small Communities Air Service Development Program grant application. We fully support the 

proposed plan to increase east coast connecting air service to SUN. Supporting and improving air 

service to Sun Valley is the mission of our community-wide organization. We recognize that commercial 

air service is critical to the economy of our entire region through access for visitors and support to area 

businesses, organizations and institutions. In fact, improving our commercial air service access is the 

single most effective way to improve our economy. 

We can confirm that FSVA is part of a public-private partnership that has been formed with Friedman 

Memorial Airport for the purpose of supporting air service improvement. Where small community air 

service initiatives like this are concerned, it is partnership like this that can make a difference. If this 

grant is awarded to SUN, we will be actively committed to ensuring the success of this new air service.

Thank you for your consideration of this application. We will continue to work diligently to insure the 

long-term success of air service in our community. 

Sincerely,

Eric G. Seder

Eric Seder, President

Fly Sun Valley Alliance Board of Directors

Fly Sun Valley Alliance PO Box 6316 Ketchum, ID 83340 www.flysunvalleyalliance.com




Randy Hall, Mayor 

480 East Avenue North 

P.O. Box 2315, Ketchum, Idaho 83340 

Telephone: (208) 726-3841 Fax: (208) 726-8234 

July 15, 2013 

Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

United States Department of Transportation 

1200 New Jersey Avenue SE 

Washington, DC 20590 

Dear Ms. Chapman: 

We write in support of the 2013 application for Friedman Memorial Airport (SUN) in 

Hailey, Idaho under the Small Community Air Service Development grant program. The 

goal of this project is to increase eastern connectivity through an additional nonstop hub 

providing much needed air service to key eastern airports not currently served through 

Salt Lake City. I n Ketchum we rely heavily on tourists, second homeowners and business 

travel in and out of the SUN airport. We are supportive of all initiatives that will expand 

our local air service and strengthen our economy. We urge the Department of 

Transportation to give this application all due consideration. 

Sincerely, 

Mayor Randy Hall 

MikcCrapo

United Slalti Senator

239 Dirfcicn Senate Office Dldg.

Washington. D.C.20S 10

James E. Rtech

Unlle Stales Senator

483 Russell Senate Office

Mike Simpson

.Member of Congress

2312 Raybum House Office Bldg.

Washington, D.C 20515

July 9, 2013

Brooke Chapman, Associate Director

Small Community Air Service Development Program

United States Department of Transportation

1200 New Jersey Avenue SE

Washington, DC 20590

Dear Ms. Chapman:

We write in support of the 2013 application for Friedman Memorial Airport (SUN) in Hailey,

Idaho under the Small Community Air Service Development grant program. The goal of this

project is to increase eastern connectivity through an additional nonstop hub providing much

needed air service to key eastern airports not currently served through Salt Lake City.

Due to the presence of the Sun Valley Resort the economy of the Sun Valley/Wood River Valley

is largely based on tourism. The area is also the home to the Sawtooth National Recreation

area, Silver Creek (famous fishing) and Craters of the Moon National Monument. In addition to

the travel requirements of the tourist industry, local residents and businesses need to be

connected to the national air transportation system. Multiple companies are headquartered in

the Sun Valley area and rely heavily on air service to SUN to conduct business.

We fully understand and appreciate the importance of eastbound commercial service for the

business community and citizens of the region and urge the Department of Transportation to

give this application all due consideration.

Sincerely,

Mike Crapo

United States Senator

James E. Risch

United States Senator

Mike Simpsfon

Member of Congress
SENATOR MICHELLE STENNETT

(208) 332-1353

mstennett@senate.idaho.gov

REP DONNA PENCE

(208) 332-1032

dpence@house.idaho.gov

 Idaho State Legislature

STATE CAPITOL

P.O. BOX 83720

BOISE, IDAHO 83720-0081

 District 26

Blaine, Camas, Gooding & Lincoln Counties

July 16, 2013 

Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

United States Department of Transportation 

1200 New Jersey Avenue SE 

Washington, DC 20590 

Dear Ms. Chapman: 

Idaho’s Legislative District 26 is home to Friedman Memorial Airport (SUN) and we are writing in support of 

their application for a US Department of Transportation Small Community Air Service Development Program 

Grant. Currently, SUN is significantly underserved in part due to operational challenges that include mountainous 

terrain and isolation from neighboring hub airports. The $500,000 SCASDP Grant would be augmented by 

private-public partnership monies for a total of $674,000 in funding to increase air service to vital hubs on the east 

coast. 

Tourism is a driving economic force in our community and having limited air travel options disadvantages Sun 

Valley when competing against other winter resorts in our region. Furthermore, businesses operating in our 

district need efficient air travel to remain competitive in the U.S. marketplace, much of which requires travel to 

eastern cities. Finally, our local residents and large population of second homeowners require more robust travel 

options. It is for these reasons that this initiative has the broad support and cooperation of our community which 

is funding approximately one quarter of the proposed plan. 

Because improved air service is important to our constituents and local economic interests, we would encourage 

your serious consideration of Friedman Memorial Airport’s grant application which would lead to increased travel 

options and lower fares for travelers to America’s first destination resort. 

Sincerely, 

 

Senator Michelle Stennett Representative Donna Pence 


July 18, 2013 

Ms. Brooke Chapman, Associate Director 

Small Community Air Service Development Program 

United States Department of Transportation 

1200 New Jersey Ave, SE 

Washington, D.C. 20590 

Dear Ms. Chapman, 

Higher Ground Sun Valley (HG) is a local nonprofit organization located in Ketchum, 

Idaho, whose mission is to enhance quality of life through inclusive therapeutic 

recreation and education for people of all abilities. As part of our military program for 

injured service members and veterans, HG flies 200 individuals into Sun Valley each 

year for a week of therapeutic recreation and rehabilitation at no cost to them. As we 

aim to increase our programming for these individuals and travel remains an essential 

component of helping our veterans in their healing efforts, we at HG view this Small 

Community Air Service Development Program Grant as a means to be able to serve 

even more deserving veterans. We are confident this collaborative initiative will support 

community disability awareness, enhance veterans support efforts, and help stimulate 

the local Ketchum economy. 

Some examples of how FMAA and this Air Service grant will benefit individuals with 

disabilities, including HG participants: 

 Accessibility to the Wood River Valley 

 Safety through the elimination of excessive travel 

 Affordability 

 Ease of access to adaptive recreational opportunities 

Higher Ground Sun Valley supports the FMAA proposal and its potential to provide 

travel options that are affordable and accessible for our participants and programs. 

Respectfully, 

Kate Weihe 

Executive Director

Achieving New Heights Through Adaptive Sports






July 13,2013

Brooke Chapman, Associate Director

Small Community Air Service Development Program

US Department of Transportation

1200 New Jersey Avenue SE

Washington, DC 20590

Dear Ms. Chapman:

Our local non-profit Wood River Economic Partnership (WREP) represents 100

businesses whose 2500 employees work in a county of 22,000 people. Because we are a

mountain resort community, air service is our economic lifeline. Many location-neutral

businesses here rely on air travel and some are leaving because we have been losing air

service. In addition, we have had four high-end hotel projects entitled, but not yet

financed and built. The fmancier's consultants are wary of our declining air service and

are hesitant to recommend investment until we can bolster our air service. This is almost

a billion dollars' worth of new direct investment into our community that won't get

started until we solve our transportation challenges.

As a community we are working hard to raise money for additional air service. Securing

this grant would significantly help our efforts to grow our economy. Like many other

communities we have suffered from the Great Recession with a 30% loss in our county

GDP. We are very motivated to improve our situation and we'll do our part.

Thank you for your consideration,

Doug Brown O~

Executive Director

WREP

Wrepofidaho.com

dougbrownsv@gmail.com

208-309-0187