Proposal under the Small Community Air 

Service Development Program

Docket DOT-OST-2011-0119

Sponsor: Casper/Natrona County International Airport

DUNS Number: 092766013

Congressional District Code: WY 01

Contact: Mr. Glenn S. Januska, A.A.E.

Airport Manager

Casper/Natrona County International Airport

8500 Airport Parkway

Casper, WY 82604

gjanuska@iflycasper.com

Due Date: August 2, 2011
Small Community Air Service Development Program Page I

Casper/Natrona County International Airport Proposal

APPENDIX C

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET OST-2011-0119

SUMMARY INFORMATION

All applicants must submit this information with their proposal, along with a completed form SF424 on http://www.grants.gov

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

 Not a Consortium Interstate Consortium Intrastate Consortium

 Community now receives EAS subsidy

 Community previously received a Small Community Grant in 2002. Grant was

 completed in 2003.

B. PUBLIC/PRIVATE PARTNERSHIP

Public: Private:

1. Casper/Natrona County Int’l Airport 1. Casper Area Chamber of Commerce 

2. Natrona County 2. Casper Area Economic Dev. Alliance

3. City of Casper 3. Frontier Airlines 

4. Town of Edgerton 4. Allegiant Airlines

5. Town of Midwest 5. Casper Journal

6. WYDOT Aeronautics 6. Casper Star Tribune

7. KCWY News 13

8. Townsquare Media

9. Casper Area Convention & Visitors Bureau

10. KTWO Television

11. Atlantic Aviation - Casper

C. PROJECT PROPOSAL

Project Proposal: (Check All That Apply)

 X Marketing Upgrade Aircraft X New Route 

_X_ Travel Bank Service Restoration ___ Subsidy

____ Surface Trans. Regional Service _X_ Revenue Guarantee

 X Launch New Carrier X Start-up Cost Offset ____ First Service 

 Study X Secure Additional Service ____ Other (explain below)

X

X
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Casper/Natrona County International Airport Proposal

D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

 X Full ILS X Outer/Middle Marker X Published Instrument Approach

 X Localizer Other (Specify) ____

E. PROJECT COST:

 Description Sub Total Total

1. Federal Amount Requested: $500,000

2. State cash financial contribution $30,000

 Local Cash Financial Contribution 

 3a. Airport cash funds: $30,000

 3b. Non-Airport cash funds (CVB): $10,000

 3c. Other Non-Airport cash funds: $20,000

3. Total local cash funds: $60,000

4. TOTAL CASH FUNDING $590,000

 In-Kind contribution

5a. Airport In-Kind contribution $6,240

5b. Other In-Kind contribution $219,240

5. TOTAL IN-KIND CONTRIBUTION $225,480

6. TOTAL PROJECT COST $815,480

F. IN-KIND CONTRIBUTIONS 

1. Barter Advertising $60,000 

2. Travel Bank $150,000

3. Chamber of Commerce $9,240

Total $219,240

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

 PROCESS?

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

Process for review on _______________.

 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.

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?

No Yes (explain) _________________________

x

x
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Casper/Natrona County International Airport Proposal

CPR

COD

FEW

GCC

JAC

LAR

RIW

RKS

SHR

WRL

AIA

BFF

CDR

RAP

Rawlins

Fort Collins

Lead

Sidney

Gardiner

Olive

Broadus

Lodge Grass Birney Boyes

Wyola Warren Moorhead Ridge

Shadehill

Buffalo Prairie City

Capitol Glad Valle

Albion

Red Elm Alzada Maurine

Tower Junction

Canyon

Lake

Old Faithful

Ashton

nthony

Felt 

Driggs 

Victor

Jackson Swan Valley

Bondurant

Wayan Freedom

Daniel

Grover

da Springs Smoot

Big Piney

Georgetown

Geneva

Ovid

La Barge Border

Saint Charles

Garden City

Laketown Kemmerer

Randolph

Woodruff

Lyman

Evanston

Robertson

Lonetree

Neola

Tabiona

Myton

Wapiti

Dubois

Crowheart

Boulder

Farson

Granger

Lapoint Jensen

Roosevelt

Ouray

Frannie

Acme Rockypoint Dayton Lovell

Powell

Arvada

Story Shell Emblem

Basin Buffalo

Manderson

Meeteetse

Ten Sleep

Grass Creek

Savageton Mayoworth Gebo Big Trails Kaycee Sussex Thermopolis

Ross Midwest

Lysite Pavillion Shoshoni Bill Moneta Arminto

Powder River

Hudson Glenrock Orpha

Douglas Shawnee

Orin

Alcova

Atlantic City Glendo

Esterbrook Little Medicine

Marshall

Lamont

Garrett

Elmo Medicine Bow

Superior Cherokee Rock River

Mcfadden Tipton Bosler

Saratoga Horse Creek

Centennial

Encampment Albany Red Buttes

Baggs

Kings Canyon

Columbine Glendevey Great Divide Walden Owl Canyon Clark Rustic

Greystone

Sunbeam Coalmont Craig Gould Hayden

Elk Springs Hamilton

Massadona

Fairpoint Newell Alva Aladdin Howes Enning Beulah St. Onge

Sundance Sturgis

Tilford Moorcroft

Black Hawk Upton Mystic Wasta Philip Osage Hill City

Newcastle Hermosa

Custer Scenic

Fairburn

Pringle Wanble

Dewey Buffalo Gap Rockyford Lo

Edgemont Smithwick Allen Porcupine Provo Oelrichs Oglala Martin Wounded Knee

Lance Creek Ardmore Pine Ridge Wayside Eli

Manville Gordon

Harrison Crawford Hay Springs

Jay Em Marsland

Wendover Hemingford

Berea

Uva Lingle

Lakeside Wh

Ashby Veteran

Lyman Slater Angora Hawk Springs Chugwater Bayard

Bridgeport La Grange

Harrisburg Arthur

Lisco

Albin Dalton Oshkosh

Kimball Potter Keys

Burns Lodgepole Ogallala 

Carpenter

Peetz Sedgwick Carr Grover Crook Grant 

Padroni

Keota

CASPER/NATRONA COUNTY INTERNATIONAL AIRPORT MARKET AREA
Small Community Air Service Development Program TOC i

Casper/Natrona County International Airport Proposal

Table of Contents

Summary of Community Proposal 1

 New Grant Proposal 2

 Previous Grant 2

 Our Community Team 2

 Our Airport 2

 Plan is Consistent with DOT Priorities 3

 Unique Circumstances 3

Air Service Background 3

 Casper/Natrona County International Airport (CPR) 3

 Air Service History 4

 Current Air Service 5

Casper/Natrona County Community Profile 6

 Economic Indicators 7

 Unique Air Travel Problems of the Market Area 8

Passenger Market for Casper 8

 Local Market Demand 8

 Market Stimulation 9

 High Air Fares 9

 Passenger Forecast 11

Action Plan 12

 Action Plan Elements 12

 Marketing Program 12

 Marketing and Media Selection 13

 Advance Ticket Sales Program (Travel Bank) 14

 Cost Offset Program 14

 Revenue Guarantee 14

 Total Support Package 15

 Innovative Marketing Program 16

Economic Stimulus 16

Performance Measurement and Schedule 17

 Performance Measurement 17

 Schedule 18

Community Support 19

Assurances 20

Frontier Airlines Letter of Support 21

Allegiant Air Letter of Support 22

Additional Letters of Support 24
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Casper/Natrona County International Airport Proposal

PROPOSAL OF CASPER/NATRONA COUNTY 

INTERNATIONAL AIRPORT

Summary of Proposal

New Grant Proposal

The Casper/Natrona County International Airport (CPR) suffers from very high air fares, 

particularly to Denver. Since 2007 the average one way fare without taxes and fees for the four 

year period has been approximately $247.00 for a market that is only 230 miles away. This 

average fare resulted in a yield of $1.07 per mile, three times the 34 cent per mile U.S. average 

for markets under 500 miles. Meetings and discussions have been held over the past four years 

with United Airlines, the only airline providing service in the Casper-Denver market. We have 

asked United to lower the local fare in the Casper-Denver market back to the fare levels 

experienced in the period from 1990 to 2005 which resulted in an average fare of approximately 

$115 one way without taxes and fees, or an average rate of $.50 per mile, still higher than the 

U.S. average. These meetings and discussions have not been successful to date.

These high fares are causing many air travelers to make a four hour drive to Denver to do 

business, participate in leisure activities, or in many cases to fly to beyond destinations. A 

leakage analysis developed by Sabre Airline Solutions in 2010 indicated that the Casper/Natrona 

County International Airport is only retaining 23% of the Casper-Denver local passenger and 

that Casper is only retaining 45% of all the Casper area passengers that travel by air. United did 

upgrade their flights from 30 seat EMB-120 turbo prop aircraft and 37 seat DH8-200 turbo prop 

aircraft to 50 seat CRJ-200 jet aircraft, but they did not lower the fares to reflect the economic 

efficiencies of this change of aircraft.

Casper/Natrona County International Airport and the supporters of this proposal believe that the 

only way that the fares will be lowered to a reasonable level to meet the communities’ air service 

demand is by instituting competitive air service by a low cost carrier (LCC) that will charge 

lower fares. In so doing, we are seeking a grant to support the establishment of new air service 

to Denver by Frontier Airlines. Initial service will be one round trip flight per day with E-190 jet 

aircraft. Frontier is well known for having fares that are lower than the fares of United Airlines

and also known for stimulating passenger demand when they enter a market.

The high airfares are negatively impacting the passenger enplanements at Casper/Natrona 

County International Airport. The leakage analysis developed by Sabre Airline Solutions shows 

that the local market is generating 239.4 passengers per day at CPR with 290.4 passengers per 

day being leaked to other airports.

Frontier Airlines has air service to almost all of Casper/Natrona County International Airport’s 

top markets and this combination of airline and airport should be a great partnership. Frontier 

Airlines has indicated that it is interested in providing air service between Casper and Denver if 

the sponsor can provide a support package to help offset start up cost and fund a marketing 

program to support the new air service. The Airline has indicated that it could start service with 

one daily round trip flight with 99 seat E-190 aircraft in 2012. 
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Casper/Natrona County International Airport Proposal

Casper/Natrona County International Airport is also seeking grant funds to support new air 

service to Phoenix/Mesa Airport by Allegiant Airlines and existing airline air service to Las 

Vegas, Salt Lake City, and Denver with the implementation of a local marketing and advertising 

program. Allegiant Airlines has indicated that it would like another marketing and advertising 

campaign similar to the 2008 campaign to help support new nonstop service to Phoenix/Mesa 

Airport. Starting in 2008, the Airport and State contributed over $80,000 for marketing and 

advertising for new service by Allegiant Airlines to Las Vegas and promoting the regional jet 

service to Denver and Salt Lake City by the other airlines. The key to this new marketing and 

advertising program was that it focused on an enlarged catchment area to include communities 

over two hours from Casper/Natrona County International Airport. This campaign was 

extremely successful and the Airport would like to do this again in conjunction with the new, 

low fare air service to Denver. 

Casper/Natrona County International Airport is requesting a grant of $500,000, with a local and 

state cash contribution of $90,000, an in-kind contribution of $75,480 plus a $150,000 

commitment for tickets for a total incentive package of $815,480. With the receipt of the Small 

Community Air Service Development grant funds, our airline assistance package will have 

sufficient resources to provide a strong marketing program for the new air service and provide a 

revenue guarantee and cost offset for the airline during the initial months of operation.

Previous Grant

Casper/Natrona County International Airport received a grant under the Small Community Air 

Service Development program jointly with Gillette Wyoming in 2002. The grant was $500,000 

and was intended to support new air service between Casper/Natrona County International 

Airport, Gillette-Campbell County Airport, and Billings Montana by providing funds to lease a 

B-1900 aircraft for Big Sky Airlines. The airline had a small community hub in Billings and it 

was thought that Casper and Gillette could be contributors to the Big Sky operations at Billings. 

Air service was started in 2003 but the passenger demand was minimal and the airline ceased 

operations after a year in Casper and Gillette and returned the aircraft to the leasing company.

Our Community Team

Our community team includes Natrona County, the City of Casper, the Casper Area Convention 

and Visitors Bureau, the Casper Area Chamber of Commerce, the Casper Area Economic 

Development Alliance, and will be led by the Casper/Natrona County International Airport. This 

group has been able to develop incentive programs that have led to new nonstop jet service to 

Minneapolis, Chicago, and Las Vegas.

Our Airport

The Casper/Natrona County International Airport meets all FAA and TSA requirements for the 

type of service we are seeking. The Airport has the ticket counter and gate space to conveniently 

handle the current service of Allegiant, Delta Connection, United Express, and new service by 

Frontier to Denver.
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Casper/Natrona County International Airport Proposal

Plan Is Consistent With DOT Priorities

This project to add service to Denver is consistent with the priorities established by the Secretary 

of Transportation. The new air service will not detract from the current air service and should 

help create a stronger awareness of the Casper/Natrona County International Airport. The 

Community and the Airport will work with Frontier Airlines to provide low fares in the CasperDenver market by offering a support package to advertise the new service, a revenue guarantee

and cost offset program to offset initial losses, and establish a ticket bank to support passenger 

use. Additionally, the Community and Airport will work with Allegiant Airlines to advertise the 

new Phoenix/Mesa service should that service be established. Finally, advertising and marketing 

funds will also be utilized to promote existing air service to Las Vegas, Denver, and Salt Lake 

City.

The proposed Denver service will benefit local businesses, education institutions, the general 

public, and especially the leisure traveler during this economic recession and in the future. It 

will also get the air traveler out to their car and back onto an airplane for trips to Denver and 

beyond.

Unique Circumstances

Low fare service to Denver will recapture the leaked passengers and expand the reach of 

Casper/Natrona County International Airport. As an example, the new low fare air service 

initiated by Allegiant Airlines to Las Vegas in 2008 proved that Casper/Natrona County 

International Airport can be the “airport of choice” for almost half of the people in the state of 

Wyoming. Prior to the Allegiant service, there were 5,770 annual passengers in the Casper-Las 

Vegas market. Allegiant Airlines service expanded this market to 29,200 passengers. These 

passengers were from counties and cities over 150 miles from Casper. In fact, over 79% of the 

Las Vegas passengers from the twelve county catchment area now use Casper/Natrona County 

International Airport as their originating point to Las Vegas. Only 22.7% of the passengers from 

these twelve counties use Casper/Natrona County International Airport for flights to Denver.

Air Service Background

The Casper/Natrona County International Airport (CPR)

The Casper/Natrona County International Airport meets all FAA and TSA requirements for the 

type of service we are seeking. It is the primary commercial airport for jet airline service for 

approximately half of the State of Wyoming. It is estimated that the population of the Airport 

catchment area is over 254,000. Casper/Natrona County Airport has traditionally provided the 

best link to the National Transportation System for the residents of the many small, rural 

communities throughout the central part of Wyoming. The economies of the region continue to 

grow. Population is increasing, retail sales are up, and new companies are moving into the area 

and demand for airline service continues to be high. 

The Casper/Natrona County International Airport is a full service Airport. The passenger 

terminal has space to accommodate six airlines, and currently has three rental car companies and
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Casper/Natrona County International Airport Proposal

other customer amenities. Convenient, reasonably-priced automobile parking is available onAirport. The Airport is seven miles northwest of downtown Casper and is owned and operated 

by Natrona County. The primary runway at the Airport is 10,165 feet long and 150 feet wide. 

Tenants and vendors at the Airport provide a full range of aviation services including fuel 

service, student instruction, charter flights, aircraft and engine repair, and aircraft storage.

Air Service History

The Airport passed from military control to ownership by Natrona County in 1949. The Airport 

is governed by a five member Board of Trustees that are each appointed for a five year term. 

The Airport has had scheduled air service since the early 1950’s. Prior to the Airline 

Deregulation Act of 1978, the Casper/Natrona County International Airport had frequent service 

by Western Airlines to Denver, Salt Lake City, Minneapolis, and through points in Montana to 

Calgary, Canada with B-737 aircraft. The peak year for enplaned passengers for CPR was 1979 

with 142,079.

In the 1990’s, service at the Airport was transferred from the mainline air carriers to the regional 

airline partners of Delta Air Lines and United Airlines. Flights were provided with commuter 

turboprop aircraft. Northwest Air Link established service to Minneapolis in the summer of 

2004 with 50 seat regional jets. Allegiant Airlines started service to Las Vegas in the fall of 

2008 with MD-83 aircraft. The flights to Minneapolis were eliminated when Delta acquired 

Northwest in early 2009. Flights declined but seats remained somewhat constant due to United 

Express replacing turbo prop aircraft with regional jet aircraft.

HISTORICAL NONSTOP SERVICE AT CPR

Year Nonstop Markets Weekly Flights Weekly Seats

2000 DEN, SLC 83 2,487

2001 DEN, SLC 89 2,667

2002 DEN, SLC 68 2,180

2003 DEN, SLC 76 2,280

2004 DEN, SLC, MSP 77 2,590

2005 DEN, SLC, MSP 88 2,920

2006 DEN, SLC, MSP 69 2,210

2007 DEN, SLC, MSP 76 2,692

2008 DEN, SLC, MSP, ORD, LAS 77 3,102

2009 DEN, SLC, LAS 43 2,110

2010 DEN, SLC, LAS 42 2,300

2011 DEN, SLC, LAS 43 2,030

Source: Official Airline Guide, summer issue

Since 1995, the Airport has experienced a growth in passengers. For the fifteen year period, the 

Airport saw enplaned passengers increase 42%. There was a drop in passengers in 2002 after 

the impact of 9/11, but growth thereafter. Passenger enplanements leveled off with the 

switchover to regional jet aircraft where the airline reduced flights but added larger aircraft. The 
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Casper/Natrona County International Airport Proposal

major contributor to recent growth in enplaned passengers is due to the addition of Allegiant 

Airlines service to Las Vegas.

CASPER/NATRONA COUNTY INTERNATIONAL AIRPORT PASSENGERS

0

20,000

40,000

60,000

80,000

100,000

1995 1997 1999 2001 2003 2005 2007 2009

Enplaned Passengers

Source: Casper/Natrona County International Airport Data

Current Air Service

As of August 2011, Casper/Natrona County International Airport had nonstop service to Denver, 

Las Vegas, and Salt Lake City. The service to Denver is provided by SkyWest Airlines 

operating as United Express. There are 25 nonstop flights per week with 50 seat CRJ-200 

aircraft. Allegiant Airlines operates two flights per week to Las Vegas with 150 seat MD-83 

aircraft. The service to Salt Lake City is provided by SkyWest Airlines operating as Delta 

Connection. There are 16 flights per week with 30 seat EMB-120 aircraft. 
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Casper/Natrona County International Airport Proposal

CASPER AIR SERVICE – AUGUST 2011

Market Airline Depart Arrive Aircraft Frequency

CPR-DEN United Express 6:07 am 7:16 am CRJ x Sa.

 United Express 6:24 am 7:30 am CRJ Sa.

 United Express 10:21 am 11:20 am CRJ x Sa., Su.

 United Express 12:44 pm 1:45 pm CRJ Daily

 United Express 5:03 pm 6:02 pm CRJ Daily

DEN-CPR United Express 8:57 am 9:57 am CRJ x Sa., Su.

 United Express 11:22 am 12:21 pm CRJ Daily

 United Express 3:32 pm 4:37 pm CRJ Daily

 United Express 6:45 pm 7:46 pm CRJ Sa

 United Express 10:23 pm 11:31 pm CRJ x Sa.

CPR-LAS Allegiant 6:05 pm 7:00 pm MD-83 Mo, Fr.

LAS-CPR Allegiant 2:35 pm 5:25 pm MD-83 Mo, Fr.

CPR-SLC Delta Connection 6:00 am 7:48 am EM-120 Daily

 Delta Connection 11:30 am 1:15 pm EM-120 Sa, Su.

 Delta Connection 12:50 pm 2:35 pm EM-120 x Sa, Su

 Delta Connection 5:32 pm 7:20 pm EM-120 Sa, Su

SLC-CPR Delta Connection 9:40 am 11:15 am EM-120 Sa, Su

 Delta Connection 11:00 am 12:35 pm EM-120 x Sa, Su

 Delta Connection 3:20 pm 4:55 pm EM-120 Sa, Su

 Delta Connection 9:55 pm 11:30 pm EM-120 Daily

Source: Official Airline Guide, August 2011

Casper/Natrona County Community Profile

The Casper/Natrona County community is a growing, diverse area that needs and depends upon 

airline service to connect its populace to the nation’s air transportation system and to assist 

others who serve and visit the area from throughout the United States and abroad. Casper is the 

number one market for the state of Wyoming. The Airport catchment area now covers almost 

half of the state’s residents.

The Casper/Natrona County area has a diverse group of employers, a low cost of living, and a 

relatively high median household income. The main industries are in retail/wholesale trade, 

services, natural resources, and medical. Oil and gas plays a prominent role in the community. 

In 2010, Casper was ranked as the highest rated family-friendly small city in the West and 

ranked eighth overall in the nation. In 2010 Wyoming ranked third in business tax friendly 

climate. Casper also topped the list of happiest people in 2010. The June 2011 unemployment 

rate was reported as 5.9%, down from 7.7% in 2009, and significantly lower than the national 

average of 9.2%.
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Casper/Natrona County International Airport Proposal

NATRONA COUNTY HAS A DIVERSE ECONOMY

Sector % of Employment

Retail/wholesale Trade 19.7%

Government 14.5%

Services 14.3%

Health Care 12.7%

Hospitality/entertainment 10.9%

Mining 8.8%

Construction 7.7%

Finance/real estate 5.1%

Manufacturing 4.7%

Transportation 2.3%

Source: Casper Area Economic Development Alliance

The business market is strong and diverse in Natrona County. Community leaders will continue 

to support existing employers while attracting new businesses that will contribute to the

economic well being of the area. The major employers have indicated that they will use the air 

service to Denver if there is a reasonable fare.

MAJOR EMPLOYERS IN THE AREA

Casper College True Companies

City of Casper U.S. Postal Service

Hilltop National Bank Walmart

Mountain View Regional Hospital Westech/WOTCO

Natrona County Wyoming Behavioral Institute

Natrona County School District Wyoming Machinery

Poplar Living Center Wyoming Medical Center

Sheppard of the Valley Care Center

It should also be noted that Casper is the media and communications center for the state of 

Wyoming. There are nine television stations in Wyoming with five of them based in Casper (all 

of the networks plus PBS). There are eight radio stations based in Casper. The largest 

newspaper in the state is the Casper Star Tribune.

Economic Indicators

In 2010, the Casper/Natrona County International Airport total catchment area had a population 

of approximately 254,260 residents with 113,370 housing units. Total retail sales for the Airport

primary catchment area was approximately $51,632 per household. The effective buying income 

for the Airport primary market area was $49,900 per household. Approximately 40% of the area 

households have an annual buying income in excess of $50,000. The economic indicators for 

the Airport market area are about the same as the average for the state of Wyoming.
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Casper/Natrona County International Airport Proposal

Unique Air Travel Problems of the Market Area

Due to the high airfares of United Airlines to Denver and beyond, a majority of passengers are 

driving to Denver as their final destination and a significant number originating their flights at 

DEN to take advantage of the lower fares of Frontier Airlines and Southwest Airlines. Most all 

of the other airports in Wyoming have air service to Denver by Great Lakes Airlines. Even 

though Great Lakes operates smaller and less efficient aircraft, the fares are mostly lower than 

the fares from Casper to Denver.

Passenger Market for Casper

Local Market Demand

An analysis of passenger bookings was developed by Sabre Airline Solutions for the twelve 

months ending June 2010. The analysis came up with 203 outbound passenger bookings per day 

from the Casper/Natrona County International Airport primary catchment area. This equated to 

74,000 outbound passengers and total 296,000 origin and destination passengers. There were 

529.8 passengers per day for the total catchment area. This equates to 773,000 total origin and 

destination passengers for the total catchment area.

Even though there are 12 airports in the total catchment area, the low fare service by Allegiant 

Airlines to Las Vegas from Casper/Natrona County International Airport has been responsible 

for capturing 65.5 outbound passengers per day or 79% of the total passengers from the primary 

and secondary catchment areas. On the other hand, the high fare service of United Airlines to 

Denver only captured 23% share of the total market. This indicates a leakage rate of 77%.

CHOICE OF AIRPORT FOR CPR AREA PASSENGERS
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Casper/Natrona County International Airport Proposal

The Sabre Study presented the passenger bookings from the Global Distribution System for the 

total Casper/Natrona County International Airport total catchment area for a twelve-month 

period. Approximately 239 passengers per day originated at Casper/Natrona County 

International Airport and approximately 290 passengers per day went to other airports to 

originate their trips. Overall, Casper was able to retain 45% of the total passenger from its total 

catchment area.

TOP CPR DESTINATIONS FROM SABRE STUDY

 Annual Outbound

Market PDEW Passengers 

LAS* 82.8 30,222

PHX 19.0 6,935

DEN* 18.5 6,752

MCO 16.0 5,840

LAX 15.1 5,511

IAH 13.8 5,037

ATL 13.3 4,855

SLC* 12.0 4,380

SEA 11.5 4,198

SAN 10.0 3,650

DTW 9.5 3,468

MCI 9.0 3,285

DFW 8.9 3,249

SFO 8.8 3,212

DCA 8.1 2,956

* Current Markets Served

Source: Sabre MIDT data YE June 2010

Market Stimulation

The air service by Allegiant Airlines to Las Vegas provides an excellent example of what low 

fares will do for the Casper market. In 2007, prior to the entry of Allegiant Airlines, the average 

one way fare between Casper and Las Vegas was $207.11. In 2009, after the entry of Allegiant 

Airlines, the average one way fare between Casper and Las Vegas was lowered to $79.78, a 

reduction of 61.5%. It is interesting to note that this new low fare air service was able to 

increase the passengers in the Casper-Las Vegas market 406% (2007 vs. 2009).

High Air Fares

As mentioned earlier, the Casper air traveler is paying very high fares for travel to Denver and 

beyond. The average fare between Casper and Denver since 2006 has ranged from $.96 per mile 

to $1.21. The average fare for markets in the 1-500 mile range in the United States in 2010 was 

34.2 cents per mile. Prior to that time, the average fare was around $.49 from 1990 to 2005. 

Both now and prior to 2006, Casper had a fare level that greatly exceeded the national 

average. The high fares have forced many customers to drive to Denver. The table on the next 

page shows that as fares have doubled, the passenger demand has dropped more than half.
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Casper/Natrona County International Airport Proposal

PASSENGER HAVE DECLINED WHILE FARES HAVE INCREASED

IN THE CASPER-DENVER MARKET

 Local O&D Average

 Year Passengers Fare Yield

 1990 49,500 $111.90 $.48

 1995 31,970 111.87 .49

 2000 13,140 115.12 .49

 2005 13,650 113.87 .49

 2006 7,440 219.72 .96

 2007 7,810 233.61 1.02

 2008 6,640 277.49 1.21

 2009 4,820 253.93 1.11

 2010 6,350 228.37 .99

 Source: U.S. DOT O&D data

When compared to other regional markets from Denver, the Denver-Casper fare is two to three 

times higher. Most of these markets are exclusive United Airlines markets and are flown with 

regional jet aircraft so the disparity makes no sense.

THE CASPER-DENVER FARE IS THE HIGHEST FARE 

AND YIELD IN THE REGION

 Average 

Market One way Fare Miles Yield 

DEN-CPR $228.37 230 $.991

DEN-BZN 134.62 523 .253 

DEN-COD 158.56 392 .378

DEN-FAR 155.12 659 .235

DEN-JAC 157.06 414 .380

DEN-LNK 154.46 426 .367

DEN-RAP 119.25 300 .397

DEN-RKS 110.79 258 .407

DEN-FSD 175.95 503 .350

Source: DOT O&D and Fare data, 2010

The high fares continue today. A survey of current fares listed on United Airlines website for 

travel to Denver from Casper in August shows that travel on one day notice results in a one way 

fare without tax of $611. Booking one week in advance results in a one way fare without tax of 

$311.50. This is the same fare for booking 14 days in advance. If you book 21 days in advance, 

the one way fare without tax is $219. Booking one month in advance results in a one way fare 

without tax of $183.50. With yields ranging from $1.35 to $2.65 per mile travelers are driving 

four hours to Denver. 
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Casper/Natrona County International Airport Proposal

As a comparison, Great Lakes Airlines operates routes from Denver to markets in Wyoming and 

Colorado with rates 30% to 50% of the rates in Casper. 

THE GREAT LAKES AIRLINES FARES IN THE REGION ARE 

MUCH LOWER THAN THE CASPER-DENVER FARES

 Average 

Market One way Fare Miles Yield 

DEN-CPR $228.37 230 $.991

DEN-ALS 91.11 179 .509 

DEN-CEZ 110.34 276 .397

DEN-DRO 108.33 250 .482

DEN-FMN 112.33 289 .407

DEN-GCC 108.96 313 .349

DEN-LAR 67.83 113 .595

DEN-PUB 66.45 108 .308

DEN-RIW 112.68 295 .381

DEN-SHR 118.51 258 .329

Source: DOT O&D and Fare data, 2010

The addition of air service by Frontier Airlines in the Casper-Denver market will lower the fares 

and boost passenger demand. Frontier is a low cost carrier and a low fare carrier and has the 

ability to stimulate passenger demand with lower fares. Five markets in the Mountain West 

region served by Frontier Airlines exhibit fare levels 50% to 75% lower than what the current 

fares are in the Casper-Denver market.

AVERAGE FARES IN MARKETS IN THE REGION SERVED BY FRONTIER

 Average 

Market One way Fare Miles Yield 

DEN-ABQ $80.25 352 $.228 

DEN-BIL 123.27 459 .269

DEN-BZN 134.62 531 .254

DEN-DRO 108.33 250 .482

DEN-OMA 87.53 475 .184

Source: DOT O&D and Fare data, 2010

If Frontier Airlines reduces the average fare to an attractive rate of $99 each way, the market will 

still have a rate per mile or yield of $.43. This is an economically viable fare level and should 

stimulate passenger demand in the local market and for beyond travel.

Passenger Forecast

It was previously mentioned that the Sabre leakage analysis indicated that Casper/Natrona 

County International Airport was only capturing approximately 23% of the total passengers in 
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the catchment area that were booking travel to Denver or from Denver to a beyond point. In 

total, the Casper/Natrona County International Airport captured approximately 45% of the total 

passengers in the catchment area to all destinations. On the other hand, the low fare service by 

Allegiant to Las Vegas is capturing 93% of the passengers in the Casper-Las Vegas market.

Over the past five years, the local Casper-Denver passengers have averaged 6,600 per year. 

Total onboard passengers have been approximately 100,000 per year. There will be stimulation 

for the new low fare service and the recapture of the leaked passengers. Taking the stimulation 

and leakage into consideration, it is forecasted that there are approximately 47,300 passengers 

available for the low fare service by Frontier Airlines, 16,300 local passengers and 31,000 

beyond passengers. Based on one round trip flight per day, the estimated load factor is 65.4%.

PASSENGER FORECAST FOR FRONTIER AIRLINES

IN THE CASPER-DENVER MARKET

 Local Beyond Total Segment

Passengers Passengers Passengers

 Current 6,600 93,400 100,000

 Leaked 22,000 114,000 136,000

 Total 28,600 207,400 236,000

 Capture Adjustment 80% 60%

 Available Passengers 22,900 124,400 147,300

 United Passengers 6,600 93,400 100,000

 Frontier Passengers 16,300 31,000 47,300

 Frontier Seats 72,270

 Frontier Load Factor 65.4%

Action Plan

Action Plan Elements

The goal of the Action Plan is to address issues associated with the proposed air service that are 

critical to the long-term success of that service. In this regard, this action plan will address three 

areas for Casper/Natrona County International Airport: (1) funding for marketing, advertising 

and promotion for the new air service and for existing air service; (2) funding to offset the start 

up cost of new air service by Frontier Airlines at CPR; and (3) funding for a revenue guarantee 

for initial air service losses by Frontier Airlines in the CPR-DEN market.

Marketing Program

We believe that the success of the previous grants under the Small Community Air Service 

Development Program was due to strong marketing and advertising programs developed by the 

sponsors and the airlines. For this project, we are allocating $234,240 to advertising and 

marketing for the new air service by Frontier Airlines to Denver and by Allegiant Airlines to 

Phoenix and $50,000 for the existing air service. If we include advanced ticket sales, then the 
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marketing, advertising, public relations, and sales accounts for $434,240 or 53% of the total 

project.

The advertising, promotions, and public relations program are all part of a marketing plan to 

support new air service. The target market for Casper air service is a combination of local 

business, leisure travel, and visiting friends and relatives in the Casper market area. The 

marketing in the local area will include advertising, promotions, and public relations in the 

twelve county region served by CPR. These mediums will be combined in a campaign to 

introduce and promote the new air service and promote existing air service to Las Vegas, Salt 

Lake City, and Denver.

The strong marketing and advertising program instituted by the community in the Casper market 

will allow Frontier Airlines to concentrate its marketing and advertising funds in the Denver

market. The most effective way to contact the new customer is by targeting: (1) the traveler; (2) 

the travel agent; (3) the corporate travel coordinator; (4) the business associations, and (5) social 

media. All of these targets can be approached utilizing the same advertising media – television, 

radio, newspaper, magazine, direct mail, email, internet, and billboards.

Marketing and Media Selection

The market in the Casper/Natrona County International Airport total catchment area can best be 

reached by using television, newspaper, radio, billboards, direct mail, online advertising via the 

internet, and social media. Upon review of the local medium for the market, the following is 

recommended.

SELECTED MEDIA FOR NEW AIR SERVICE

Media Type Media Selected Location

Television KTWO – ABC Casper

KCWY – NBC Casper

KGWC – CBS Casper

Newspaper Casper Star Tribune Casper

Casper Journal Casper

Radio KWYY-FM Country Casper

KRNK-FM Rock Casper

KQLT-FM Country Casper

KZQL-FM Hits Casper

KTWO-AM Talk Casper

KVOC-AM Talk Casper

KKTL-AM Sports Casper

As can be seen, Casper is the media capital for central Wyoming. The media based in Casper 

will give the advertiser reach throughout the entire state. The media plan goes heavy on 

electronic media with a good budget for public relations, and social media. The budget listed 
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below will cover the ninety day period to start of service and for six months after the air new air 

service has started. 

ESTIMATED MARKETING AND ADVERTISING EXPENDITURES 

 Cash In Kind Total

Advertising

 Television $50,000 $20,000 $70,000

 Newspaper $30,000 $15,000 $45,000

 Radio $30,000 $10,000 $40,000

 Outdoor (Billboards) $15,000 $5,000 $20,000

 Production $20,000 $5,000 $25,000

 Internet $10,000 $5,000 $15,000

 Direct Mail $10,000 $10,000

Public Relations $25,000 $25,000

Chamber of Commerce $9,240 $9,240

Outside Marketing Services $25,000 $25,000

Total $215,000 $69,240 $284,240

Advance Ticket Sales Program (Travel Bank)

The Airport will coordinate the advanced ticket sales program in cooperation with a local bank 

or credit union. Based on the previous programs, it is estimated that approximately $150,000 of 

tickets for service on Frontier Airlines will be purchased by various corporate accounts. The 

local Bank or Credit Union will accept deposits and issue debit cards that can be used for travel 

on Frontier Airlines. Allegiant Airlines targets the leisure traveler and will not need a travel 

bank to support new service to Phoenix/Mesa Airport.

Cost Offset Program

There will be a cost to Frontier Airlines for the start of new air service to Casper/Natrona County 

International Airport. The cost will include preparation of the facilities at the Airport, hiring and 

training new employees for Casper, installation of communications equipment at the Airport, and 

an open house to introduce the new air service. It is estimated that the cost of these activities

will be approximately $25,000.

Revenue Guarantee

Frontier Airlines has told the Casper/Natrona County International Airport Manager that they 

would need a risk mitigation program that includes a revenue guarantee to cover initial operating 

losses. Based on the analysis of our consultants, it is believed that a $375,000 revenue guarantee 

should be sufficient to support the new air service. 

The passenger forecast on page 12 estimates 47,300 passengers per year for Frontier. This 

equates to approximately 130 passengers per day in each direction. It is estimated that Frontier

Airlines will be able to have an average one way fare of $99 (after start up promotions). This 

equates to passenger revenue of $6,435 per flight or $386,100 per month for thirty round trip 

flights.
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It is assumed that there will be a ramp-up of passengers during the start-up period. Load factors 

are estimated to be 40% for the first month and increasing to 65% by the sixth month. It is also 

assumed that the average fares will be lower in the first few months as a motivator for air travel. 

The fare for the first two months is estimated to be $69, a discount of approximately 30%. It is 

estimated that the average fare will increase until the average of $99 per local passenger is 

reached. It is also assumed that there will be through passengers on board the aircraft and the 

dilution for their beyond fares has been estimated to be 20%, netting a fare of $79. 

The expense forecast is based on the estimated cost per block hour for the Frontier E-190 aircraft 

flying from CPR to Denver and return. It is estimated that Frontier Airlines will fly at the same 

block times as the regional existing jet service. It is estimated that the market will breakeven in 

month six at a load factor of approximately 65%.

Allegiant Airlines does not require a revenue guarantee. They already provide service at Casper 

to Las Vegas which has been very successful. Allegiant only requires marketing support.

ESTIMATED REVENUE GUARANTEE TO COVER FRONTIER AIRLINES INTIAL 

OPERATING LOSSES FOR SERVICE FROM CASPER TO DENVER

Month Passengers Revenue Block Hrs. Expense Profit/(Loss)

One 2,370 $163,940 66 $297,000 ($133,060)

Two 2,670 $204,240 66 $297,000 ($92,760)

Three 2,970 $219,780 66 $297,000 ($77,220)

Four 3,260 $241,240 66 $297,000 ($55,760)

Five 3,560 $281,240 66 $297,000 ($15,760)

Sub Total 14,830 $1,110,440 330 $1,485,000 ($374,560)

Total Revenue Guarantee ($375,000)

Total Support Package

Combining the Small Community Air Service Development Program grant and local 

participation, the Casper/Natrona County International Airport will be able to offer a very 

complete package to support new service and help promote the existing air service. The 

combined incentive package will create an extremely strong marketing component, cost offset 

program, flight guarantee program, and a strong public/private partnership. 

The total package will be $815,480. Total Federal participation requested is $500,000 with the 

community providing $90,000 in cash, $75,480 of in-kind advertising/services, and $150,000 in 

a travel bank. It is estimated that $434,240 (53%) of the incentive package will be spent on 

advertising, marketing, and ticket sales. The sponsors will contribute 38.7% of the total 

incentive package and 10.2% of the total cash for the incentive package. 
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SUMMARY OF INCENTIVE PACKAGE FOR NEW AIR SERVICE

 Federal Local Total

 Flight Guarantee/ Cost Offset $375,000 $375,000

 Marketing, Advertising, In-Kind $125,000 $165,480 $285,000

 Pre-purchased tickets $150,000 $150,000

Total $500,000 $335,480 $815,480

Innovative Marketing Program

The Airport has been successful in utilizing traditional and non-traditional advertising and 

marketing programs. The Airport would support additional service by a comprehensive 

marketing program which could/would include:

 Extensive exposure on the Airport’s website;

 Extensive exposure on the Airport’s Facebook;

 Extensive exposure on the Airport’s Twitter;

 Chamber of Commerce e-mail blasts;

 Airport speaking engagements at civic and social groups;

 Live television and radio broadcasts;

 Exposure at area events;

 Utilization of giveaways, contests, etc.;

 Extensive exposure during the I Fly Casper night and advertising exposure on the 

Airport’s dasherboard (Wyoming Cavalry IFL Football);

 Advertising on the Airport’s outfield wall (Casper Ghosts Pioneer League Baseball).

Economic Stimulus

The proposed new air service will act as an economic stimulus and generate new revenue for the 

community and the Airport. The new service will bring passengers from Denver and points 

beyond and will make an economic impact to the Casper market area during this recessionary 

period and in the future. It is estimated that the new Frontier Airlines flight will deplane 

approximately 24,000 passengers in Casper. Approximately 1⁄2 will be new visitors (12,000) 

projected to visit Casper.

Allegiant Airlines will be selling Phoenix as a destination market for the Casper air traveler. 

Based on the Casper-Las Vegas experience of Allegiant Airlines, approximately 80% of the total 

passengers originated in the Casper market area. Based on this experience, it is projected that 

Allegiant service will produce approximately 3,000 new visitors per year to the Casper market 

area.

Using information derived from a recent survey developed by the Casper Area Convention and 

Visitors Bureau (August – October, 2010) regarding average stays and average expenditures, the 

new service alone is projected to contribute close to $10 million to the local economy. 
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VISITOR EXPENDITURES FOR NEW AIR SERVICE

Frontier Allegiant Total

Estimated Visitors 12,000 3,000 15,000

Estimated Visitor Days in the area 42,000 10,500 52,500

Average Daily Expenditure $230 $230 $230

New Visitor Expenditures $9,660,000 $2,415,000 $12,075,000

The new air service will also create new jobs at the Airport and in the local hospitality and 

tourism industry. Based on industry averages for staffing and wages, an estimate of the number 

of jobs has been developed. It is estimated that the new air service will create 50 jobs in the area 

and an annual payroll increase of $2.2 million.

Performance Measurement and Schedule

Performance Measurement

The support package as outlined in this application focuses on the Casper market area. The 

marketing, advertising, and promotional program presented herein should develop good 

awareness for new airline service. Passenger response can be measured by the reservations 

volume at the airline and by the passengers enplaned and deplaned at the Casper/Natrona County 

International Airport.

The performance of the proposed air service will be tracked on a monthly and quarterly basis. 

This tracking will measure the number of passengers using the new air service and monitor the 

airline revenue and related incentive requirements.

Monthly. The airline will provide flight segments flown, on-board passengers and 

gross revenue data. This data will be compared to the forecast projections to 

measure the performance of the program.

Quarterly. The Sponsor will aggregate the year to date flight data, passenger statistics 

and gross revenue date. The goal is for the passengers carried and the gross 

revenue to exceed the projections by the sixth month.

By accepting the support package as outlined, Frontier Airlines will be requested to agree to 

accept the support package and the joint marketing program for a period of not less than twelve 

months. This should be sufficient time to establish the viability of the new service. During this 

twelve-month period we will work with Frontier, and if they are missing their projections, then 

we will re-evaluate options and work with them to adjust their service and our support program 

in order to achieve sustainable operations. After the twelve month period has lapsed, the 

community and the Airport will continue to work with Frontier in supporting its’ air service 

similar to what has been done with Allegiant Airlines.
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Schedule

It is the assumption of the Casper/Natrona County International Airport that the following 

schedule would be employed should the grant application be successful. The Casper/Natrona 

County International Airport commits to the completion of the grant, if awarded, within twentyfour months of acceptance and will diligently pursue an earlier closeout. The Casper/Natrona 

County International Airport proposes the following timeline:

PROPOSED TIMELINE

Item Time Frame Estimated Date

Submission of Grant Proposal August 2, 2011

Execution of Grant Agreements December 2011

Airline Negotiations two months January-February 2012

Marketing Program

Commencement 90 days prior to Service March 2012

Completion 1 yr. after start of service 

Start of Service June 2012
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Community Support

 

The following is only a partial list of some of the community agencies and organizations who 

have consistently supported the Casper/Natrona County International Airport and air service in 

the Casper area.

 Natrona County

 City of Casper 

 Town of Edgerton

 Town of Midwest

 Casper Area Chamber of Commerce 

 Casper Area Economic Development Alliance

 Casper Journal

 Casper Star Tribune

 KCWY News 13

 Townsquare Media

 Casper Area Convention & Visitors Bureau

 Atlantic Aviation – Casper

 KTWO Television
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Assurances

The Casper/Natrona County International Airport (hereinafter referred to as “Sponsor”) hereby 

provides the U.S. Department of Transportation with the following assurances:

 The Sponsor will comply with all of the applicable Federal laws, regulations, 

executive orders, policies, guidelines, and requirements as they relate to the 

application, acceptance, and use of the Federal funds for this project.

 The Sponsor has the legal authority to apply for the Small Community Air Service 

Development Program grant, and to finance and carry out the proposed project; that a 

resolution, motion, or similar action has been duly adopted or passed as an official act 

of the applicant’s governing body authorizing the filing of the application, including 

all understanding and assurances contained herein, and directing and authorizing the 

person identified as the official representative of the applicant to act in connection 

with the application and to provide such additional information as may be required.

 The Sponsor has access to the funds available for that portion of the project which are 

not to be paid by the United States government. The Sponsor has sufficient funds to 

assure operating and maintenance of items funded under the grant agreement, which 

it will own or control.

 The Sponsor shall keep all project accounts and records which fully disclose the 

amount and disposition by the recipient of the proceeds of the grant, the total cost of 

the project in connection with which the grant is given or used, and the amount or 

nature of that portion of the cost of the project supplied by other sources, and such 

other financial records pertinent to the project. The accounts and records shall be 

kept in accordance with an accounting system that will facilitate an effective audit in 

accordance with the Single Audit Act of 1984.

 The Sponsor shall make available for the purpose of audit and examination, any 

books, documents, papers, and records of the recipient that are pertinent to the grant.

 The Sponsor will execute the project in accordance with the approved program 

narrative contained in the project application or with the modifications similarly 

approved.

 The Sponsor will furnish such periodic reports as required pertaining to the project 

and activities.
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Frontier Airline Letter of Support
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Allegiant Air Letter of Support
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Letters of Support
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Letters of Support
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Letters of Support
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Letters of Support
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Letters of Support
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Letters of Support
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Letters of Support
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Letters of Support
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Letters of Support