# August 2, 2011 Sponsor: Del Norte County Regional Airport , Crescent City, California James Bernard, Airport Director Congressional Code: CA

- 0 01
Dun & Bradstreet Number: 021749054 Tax Identification Number (EIN): 80

- 0540149 

### Application for Federal Support for Current Essential Air Service (EAS) via: Advertising/Marketing Program 

# DEL NORTE COUNTY REGIONAL AIRPORT CRESCENT CITY, CALIFORNIA
Proposal Under the Small Community Air Service Development Program Docket DOT

- OST

- 2011

- 0119Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 2 TABLE OF CONTENTS

Introductory Letter of Support 3 Summary Information

– Appendix C 4
Introduction 7
The Border Coast Air Service Market 8
Current and Historical Service 9 Air Service Development Efforts 14
Air Service Needs and Deficiencies 15 Strategic Plan 20 Proposed Marketing Program 22 Implementation Timeline 24
Public/ Private Partnership 25 Funding Plan 27
Performance Measures and Financial Controls 28 Legal Sponsor 29
Letter s of Support 30 Availability of Alternate Airports 39 Airport Information 40 Community Profile 41 Comparison to Other Communities in Region 48
Conclusions 50



### Section Page NumberDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 3 INTRODU CTORY LETTER OF SUPPORTDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 4 SUMMARY INFORMATION

– APPENDIX C

Small Community Air Service Development Program
Docket DOT

- OST

- 2011

- 0119



### A. Applicant Information

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

____________ _________ expiration date of G rant: __

___________ ___ _

_


### B. Public/Private Partnership

Public:

1. Del Norte County Regional Airport/Jack McNamara Field
2. City of Crescent City , California
3. City of Brookings, Oregon
4. Curry County, Oregon
5. Del Norte County , California

Private:

1. SkyWest Airlines
2. Del Norte Chamber of Commerce
3. Crescent City Chamber of Commerce
4. Smith River Rancheria
5. Elk Valley RancheriaDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 5 C. Project Proposal

Marketing Upgrade Aircraft New Route
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee
Launch New Carr ier Start

- Up Cost Offset First Service Study Secure Additional Service Othe r (Specify)



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instru ment Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 20 0,000
2. State cash financial contribution: $ 0
Local cash financial contribution:
3a. Airport cash funds: $ 0
3b. Non

- Airport cash funds: $ 20 ,000
3. Total local cash funds: $ 2 0,000
4. TOTAL CASH FUNDING: $ 22 0,000
In

- Kind Contribution:

a. Airport In

- Kind contribution: $ Various
b. Other In

- Kind contribution: $ Various
5. TOTAL IN

- KIND CONTRIBUTION: $ Undetermined
6. TOTAL PROJECT COST: $ 22 0,000 + In

- KindDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 6 F. In

- Kind Contributions

For funds in lines 7a (airport in

- kind contribution) and 7b (other in

- kind contribution), please describe the source(s) of fund(s) for each. Advertising and marketing match money (media companies)
In

- kind marketing in the airport terminal and through airport sources (airport)



### G. Is Application Subject to Review by State Under Executive Order 12372 Process?
This application was made available to the State on ______. Program is subject to review, but has not been selected b y the State. Program is not covered.



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

NoDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 7 INTRODUCTION

Despite its position as an Essential Air Service airport, the Del Norte County Regional Airport in Crescent City serves one of the fastest growing catchment areas in the country

– growing by 30% in the last ten years to more than 100,000 residents. At the same time, the Airport saw a very strong 2010, with total passengers up by 15% to the highest point in f our years. Passengers increased despite the fact that fares stayed about the same

– and remained above the fares
offered in both Medford and Arcat a

- Eureka.

Crescent City does still suffer with fares that are consistently higher than those found at other airports in the region. When analyzing the lowest available fare in the top 20 origin and destination passenger markets from Crescent City, the fares at the Del Norte County Regional Airport average 15% higher than the lowest available fares at Eureka

- Arcata, and 37% higher than the fares at Medford as of August of 2011. These high fares cause a large portion of travelers who live in the Del Norte County Regi onal Airport catchment area to fly out of these other two airports.

Nonetheless, SkyWest operated at its highest summer load factor in the Crescent City market in four years in the summer of 2010

– averaging a load factor of 71%. Part of the reason for
i ncreased ridership in Crescent City was the decline of capacity in both Arcata

- Eureka and
Medford

– down by a combined 500 departing seats a day, or 31%, in the last two years.

With capacity down in nearby markets, now is the time for the Del Norte County Regional Airport to recapture its catchment area passengers. The Airport believes a Grant

- supported marketing and advertising campai gn can have an immediate impact
, drawing those passengers who might have flown out of Medford or Arcata

- Eureka in the past back to Crescent City’s airport. Federal funding is critical to the mission, as the Airport’s own limited budget is not large enough to support the wide

- ranging effort that’s required. The goal of the campaign is to increase enplanements and to reduce t he per passenger subsidy required under the Essential Air Service program in Crescent City. 

## “SkyWest operated at its highest
summer load factor in the Crescent City market in four years
in the summer of 2010...”Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 8 THE BORDER COAST AIR SERVICE MARKET Current and Historical Air Service

The Del Norte County Regional Airport in Crescent City, California
, is served under the Essential Air Service (EAS) program, as it is 369 miles from the nearest medium hub

– Sacramento. The Department of Transportation awarded its latest Essential Air Service (EAS) contract in May of 2010 at a subsidy rate of almost $1.8 million per year.

Despite steady fares that were typically above the fares found at other airports in the region, the Del Norte County Regional Airport was one of the few in the Essential Air Service program to post passenger growth in 2010. Total pas sengers were up 15% over 2009 to their highest point in four
years.

Still, m any of those who live within the Airport’s catchment area drive to other airports to access the national air transportation system due to cheaper fares, more available flights and the lack
of awareness about the more convenient airport located in

Crescent Cit y

. In effect, the
lack of awareness of the local
air service available at the Del Norte County Airport suppresses the number of travelers, and potential travelers, in the region, forcing many to fly from other competing airports, or to not
travel at all.

The Del Norte County Regional Airport has the ability to draw from a large area due to its
relative isolation

– located on
the west side of the Pacific Coast Range mountains and isolated from the population centers on the coast and in the central valley

. The Airport’s catchment area extends north along the Pacific coast to Gold Beach, Oregon, east to Cave Junction, Oregon, and south to Orick, California. The population 

### MAP 1: The Del Norte County Regional Airport’s Primary Catchment AreaDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 9 of the Airport’s catchment area is 101,408 as of the latest US Census numbers (see ma p 1). The catchment has grown by more than 23,000 people since 2000

– a growth rate of 30%

- faster
even than San Francisco, Los Angeles, or San Diego.

Although outside the State of California, the Oregon portions of the Crescent City catchment area are closely tied both economically and culturally with the California portions of the area. In fact, Curry County, Oregon
, are partner s in this application

. Moreover, the Border Coast Regional Airport Authority, which governs the Airport, is one of the few to have jurisdiction in two
states.

The Del Norte County Regional Airport saw its best year since 2006 in 2010, with passengers up
15% over 2009 to a total of 26,540, or an average of 36.4 passengers per day each way (see figure 1). Passengers increased in the market despite the fact that the average one way fare stayed relatively stable. It should be noted, SkyWest does not generally report average fares to
the DOT in its at

- risk market, so the average fares represented here are based on ticket revenue, and are not always accurate. It is likely the true average fare is actually higher than the fare represented in this data.



### FIGURE 1 : O&D Passengers and Average One Way Fares at Crescent City 2001

– 2010; Source: US DOT Table OD1A

22,920 20,540 21,880 23,860 22,370 27,950 25,310 24,430 21,980 25,560

390

200 260 440
520 980

510 990

1,150 980

31.9

28.4 30.3 33.3 31.4 39.6

35.4 34.8

31.7 36.4

0 5,000 10,000 15,000 20,000 25,000 30,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Int'l Pax Domestic Pax

$136 $136 $139 $155 $158 $154

$137 $157 $155 $153Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 10 It is clear there is significant potential for additional passengers to board flights at the Del Norte County Regional Airport . As recently as 200 6 , the Airport saw a total of 28
, 930 origin and destination passengers or an average of 39

. 6 passengers per day each way (see figure 1). 200 6 passenger numbers were 8 % higher than the 2010 numbers.

Part of the challenge in smaller Essential Air Service market is getting the message out about the availability of local air service. The Airport, due to lower average revenue with fewer passengers than larger markets, cannot afford to consistently advertise local air service. This means the EAS
sub sidy in a market like Crescent City ends up supporting fewer passengers

– increasing the per passenger subsidy

. Relatively small amounts of marketing funding can have major impacts on enplanements in markets such as Crescent City.

Even more encouraging than the increase in passenger numbers in Crescent City in 2010 is th e fact that load factors have been strengthening in the market for the last eight months. Between June of 2008 and April of 2010, the Del Norte County Regional Airport saw load factors hovering between the mid 40s and the mid 50s on average (see figure 2). An upward trend began in May of 2010, and load factors for the summer of 2010 averaged 71%

- the highest average load
factor in the market since 200 6

.



### FIGURE 2 : Available Seats and Passengers per Day Each Way and Load Factor at Crescent City June 2008

– December 2010; Source: US DOT T100 Data

88 86 86 88 88 86
78 76 79 86 83 80 89 83 83 80 84 82 83
75 75 80 82 77 84 83 84

75 75 80 77

38.2 39.2 35.9 32.2 32.8 32.2 34.3

23.9 23.8 29.1 29.8 30.1 33.2 33.6 38.0 34.0 34.3 31.8 34.7

23.0 24.9 29.3 35.9 44.0 48.3 45.0 50.9 46.8 39.8 43.6 40.5

0 20 40 60 80 100 120

Available SDEW Onboard PDEW Load Factor 54.5% 57.5% 52.0% 45.1% 46.0% 45.1% 55.9%

38.7% 38.3% 42.9% 45.1% 46.8% 47.3% 50.9% 57.1% 50.9% 47.0% 46.6% 49.7% 39.6% 40.4% 42.7% 53.3% 65.9% 70.6% 65.3% 72.7% 73.4% 64.0% 65.0% 65.3%Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 11 Higher load factors indicate that fewer passengers are leaking to other airports in the region, and that passenger awareness of local service is increasing slowly. The September load factor averaged 73%

- with an average of 51 passengers per day each way traveling through the Airport (see figure 2). It should be noted the number of available seats offered in the mark et is steady, due to SkyWest’s obligations under the Essential Air Service program.

Due to DOT fare reporting anomalies in smaller markets, such as Crescent City, it is important to analyze the lowest available fares in the market against other nearby markets to truly understand the regional pricing philosophy. Most travelers from the Crescent City catchment area travel in and out of either the Rogue Valley International

– Medford Airport or the Arcata

Eureka Airport.

Pricing for August of 2011 supports the theory that
fares at the Del Norte County Regional Airport are priced consistently higher than the fares at
either Medford or
Arcata

- Eureka. In the
Denv er market, for example, the lowest
available fare from Crescent City in August of 2011 is $475 roundtrip, compared to $468 roundtrip at Arcata

- Eureka and $393 roundtrip at Medford (see figure 3). The fare disparity between Crescent City and Medford grows on the route to Los Angeles, where Crescent City’s lowest fare is $435, while Medford’s is just $219. To Sacramento, despite one

- stop service from the Del Norte County Regional Airport , the loca l fare is $428 roundtrip versus $321 at Medford and $309 from Arcata

- Eureka. Finally, to San Francisco

– a route in which all three airports have

non

- stops

-- Crescent City passengers are expected to pay an $85 fare premium over Arcata

Eureka and a $67 fa re premium over Medford. Overall, the lowest Crescent City fares are 14.6% higher than fares at Arcata

- Eureka and 38.6% higher than the lowest fares in Medford. 

### FIGURE 3 : Lowest Available Fare to Select Destinations August 2011; Source: Farecompare.com

$475 $435 $428 $358 $468 $430

$309 $273 $393

$219 $321 $291

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

Denver Los Angeles Sacramento San Francisco Crescent City Eureka/Arcata MedfordDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 12 With these kind s of fare differentials, it is easy to understand why many of the travelers in the Del Norte County Regional Airport catchment area travel from other airports in the region. Due to this passenger leakage, it is likely SkyWest is only boarding a small portion of its potential passengers in Crescent City. In fact, it is also likely that SkyWest loses a large portion of its local, Crescent City area passengers to other airlines

.

Travel to and from the Crescent City market is spread throughout the country, but only a small portion of the travel is headed to, or originates in, international
markets

– just 4%. For the first time in four years, a city other than San Francisco ranked as Crescent City’s number one origin and destination m arket

– Los Angeles. LA averaged 5.2 passengers per day each way in 2010 from the Del Norte County Regional Airport (see figure 4). San Francisco ranked second, with 4.0 passengers per day each way on average

– which is down by more than 50% in the
last four years. Other large O&D markets to and from Crescent City include San Diego, Denver, Las Vegas, and Santa Ana/Orange County

– basically markets that have easy
connections over the United hub at San
Francisco. If a market does not have an
easy one

- sto p connection over SFO on United or an affiliated carrier, it generally doesn’t show up on this list, as Crescent City passengers will access those markets through Medford, and it’s wider range of connecting hubs.

There is much more capacity available at t he Del Norte County Regional Airport that is going unfilled. Even with high load factors in the summer of 2010, the airport still had an average of nine empty seats per flight in and out of the market. The Airport believes the best way to fill this
capac ity will be to launch a wide

- ranging marketing and advertising program, designed to increase regional knowledge about the service offered in Crescent City. The Airport believes 

### FIGURE 4 : Top 20 Domestic O&D Passenger Markets at Crescent City CY2010; Source: US DOT Table OD1A

3,770 2,910 2,530 1,230 1,130 1,120
960
930
750
480
460
430
360
350
330
300
290
270
270
250 5.2
4.0
3.5
1.7
1.5
1.5
1.3
1.3
1.0
0.7
0.6
0.6
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.3

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Los Angeles, CA San Francisco, CA San Diego, CA Denver, CO Las Vegas, NV Santa Ana, CA Phoenix/Mesa, AZ Sacramento, CA Chicago, IL Washington, DC New York/Newark, NY Burbank, CA Palm Springs, CA Honolulu, HI Boston, MA Salt Lake City, UT Baltimore, MD Santa Barbara, CA Dallas/Fort Worth, TX Ontario, CA Annual Passengers PDEWDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 13 this program will initially result in increased enplanements, with more of th ose who live in the immediate and extended catchment areas flying locally. Further, the Airport believes those increased enplanements will result in increased service, allowing fares to achieve parity with other airports in the region.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 14 AIR SERVICE DEVELOPMENT EFFORTS

For a smaller, regional airport, the administration at the Del Norte County Regional Airport/Jack McNamara Field is very active in working with airlines, community stakeholders, and businesses to increase the viability and affordability of local air service. The Airport contracted with an air service development consulting firm in 2008 to conduct a full scale survey of the air service provided in the northern California/southern Oregon region. This study led to an air service development master plan, providing a blueprint for the marketing, advertising, and expansion of
the Del Norte Coun ty Regional Airport in the years to come

– a plan that is still in use today

.

The Airport has had numerous conversations with leaders at United Airlines and SkyWest, as it works to improve the service offered in the Crescent City market. The Airport cont inues to
advocate for additional non

- stop frequencies, flights that are de

- linked from Eureka/Arcata, and additional seats in hopes of continuing to bring down average fares. The Airport believes Small Community Air Service Development Grant funding is an important step that needs to be taken in order for its long standing initiatives and goals for air service to be met. This is the fourth SCASD Grant application submitted by the Airport. It has not been a previous recipient.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 15 AIR SERVICE NEEDS AND DEFICIENCIES

T

he isolated market served by Del Norte County Regional Airport suffers from several air service deficiencies, including a lack of available seats, higher fares than airports in nearby markets, service from just one branded airline, and a lack of knowledge about the local service offe red. In addition, the Crescent City traveler has recently been affected by declining capacity at other airports in the region, giving the region’s passengers fewer air service options.

The biggest challenge faced by the Del Norte County Regional Airport has been, and will continue to be, the lack of pricing parity with other airports in the region. The biggest disparities are found between Crescent City and Medford

– which is the main airport to which local Del Norte County Regional Airport catchment are a passengers leak.

An analysis of the lowest available published
fare s in August 2011 to
the top 20 Crescent City origin and destination passenger markets found that, on average,
Medford’s lowest
available fares were 37%
less than the lowest
available fares from Crescent City. Examples include Honolulu, where
the lowest available
Medford fare in August of 2011 is $640 while the lowest Crescent City fare is $900; Chicago, where the lowest available Medford fare in August of 2011 is $440 while the lowest Crescent City fare is $519; Salt Lake City, where the lowest available Medford fare in August o f 2011 is $300 while the lowest Crescent City fare is $411; and Burbank, where the lowest available Medford fare in August of 2011 is $240 while the lowest Crescent City fare is $399 (see figure 5). Medford fares are generally lower largely due to the fac t that 

### FIGURE 5 : Lowest Available Fares to Select Top O&D Markets From Crescent City and Medford; August 2011; Source: Farecompare.com

$900

$519 $411 $399 $335 $308 $640
$440 $300 $240 $240 $240

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000

Honolulu Chicago Salt Lake City Burbank Las Vegas Phoenix Crescent City MedfordDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 16 Medford has three main airline brands all competing for customers: Alaska Airlines, Delta Air Lines, and United Airlines. Crescent City has only United.

These high airfares have the impact o f pushing local passengers to other airports in the regio n for
fare relief. Consistently h igh er airfares in Crescent City also have the impact of convincing travelers that local air service is expensive and unattainable, which causes them to stop checking local flights at the Del Norte County Regional Airport before booking out of other airports in the region. If the fare is too high to consider local service for a couple of trips in a row,
local travelers become conditioned to check non

- local airports first. Even if fares drop at the Del Norte County Airport, it goes largely unnoticed by local tra velers

– providing strong emphasis for increased local marketing and advertising to explain the value of flying from the local airport.

It should be noted that Crescent City fares would likely be even higher were it not for the strength of the subsidy pro vided for SkyWest/United Express service by the federal Essential Air Service (EAS) program. Under th is program, SkyWest earned almost $1.8 million in annual federal funding to operate its Cresc ent City flight schedule in 2010. Effectively, this was a $6 7.13 subsidy, per passenger in calendar year 2010. Taking into account this per passenger subsidy, the “true” fare in Crescent City in 2010 would have been $220 each way, not $153

.

As would be expected in an Essential Air Service (EAS) market, Crescent C ity’s Del Norte County Regional Airport offers far fewer available seats and far fewer departing flights than any of the other airports in northern California and southern Oregon. This exacerbates the difficulty in growing enplanements on local air servic e.

SkyWest/United Express
offers fewer available seats out of Del Norte County Regional Airport than do
the airlines offering service
at all of the other airports in
northern California and southern Oregon. In fact,
as of calendar year 2010
, SkyWest offered just 0.56 departing available seats 

### FIGURE 6 : Departing Seats per Capita at Airports in the Region CY2010; Source: US DOT T100 Data

2.46

2.05

0.62

0.56

0.0 0.5 1.0 1.5 2.0 2.5 Arcata

- Eureka

Medford

North Bend/Coos Bay

Crescent City 

### Regional Average : 2

. 19Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 17 per capita in and out of Crescent City (see figure 6). In 2010, there were 74 % fewer available departing seats at the Del Norte County Regional Airport than the regional average of 2.19 seats per capita. The Rogue Valley International

– Medford Airport had four times the departing seats per capita that Crescent City had in 2010

– with 2.05. Of adjacent airports, Arcata

- Eureka had the most departing seats per capita in 2010

– with 2.46

– five times the number of departing seats per capita offered at the Del Norte County Regional Airport

Because of the lower number of available departing seats at the Del Norte County Regional Airport , the Airport also enplanes far fewer passengers than other adjacent airports. In 2010, Crescent City enplaned a n average of just 0.26 passengers per capita, which is about a fourth of the regional average of 1.09 passengers per capita (see figure 7). The Rogue Valley International

– Medford Airport had the highest number of enplanements per capita of adjacent airp orts, with 1.39 passengers per capita, while Arcata

Eureka boarded an average of 0.92 passengers per capita in 2010.

While there are more available seats at adjacent airports, and more enplanements because of that higher capacity, all of Crescent City’s adjacent airports have lost significant capacity in the last three years . It has become increasingly difficult for those living in the Del Norte County Regional Airport catchment area to access air service. The Rogue Valley International

– Medford Airpor t is a good example of this. As recently as the summer of 2009, airlines offered an average of 22 daily departures in Medford (see figure 8). By March of 2011, airlines were offering an average of just 15.5 daily departures

– a loss of six departing flig hts per day

– or 29% of departures.

At the same time, available seats in the Medford market have fallen by 25%. In July of 2009, airlines offered an average of 1,297 daily departing seats at the Rogue Valley International

– Medford Airport (see figure 8). By March of 2011, that number had fallen to an average of 965 daily departing seats

– a loss of 319 seats per day each way. The net effect of these seat cuts is 

### FIGURE 7 : Enplaned Passengers per Capita at Airports in t he Region CY2010; Source: US DOT T100 Data

1.39

0.92

0.36

0.26

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Medford

Arcata

- Eureka

North Bend/Coos Bay

Crescent City 

### Regional Average : 1

. 09Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 18 that it is more difficult for a Crescent City passenger to find available capacity at Medford. This makes the Del Norte County Regional Airport all the more valuable.

Arcata

- Eureka has not been immune to capacity cuts, either. Since the summer of 2008, flights offered by the airlines at Arcata

- Eureka have dropped by 27%, from an average of 14 departures per day in July of 2008 to just ten departures per day in March of 2011 (see figure 9). In all, the Arcata

- Eureka market has l ost an average of four departures a day in the last three
years.

With those flight cuts, come cuts in the number of available seats in Arcata

- Eureka. In July of 2008, airlines offered an average of 599 daily departing seats from Arcata

- Eureka (see figure 9). By March of 2011, that number had fallen to 399 daily departing seats

– a loss of 200 daily departing seats or a third of daily capacity

.



### FIGURE 8 : Available Sea ts, Passengers, and Departures per Day Each Way at Medford June 2009

– March 2011; Source: US DOT T100 Data

1,284 1,297 1,277

1,187 1,170 1,130

997 1,008 1,083 1,114 1,143 1,167 1,220 1,261 1,213

1,102 1,106
1,038 1,047

959 925 965 1,025 1,004 991

886 865

801
746

654 693 771 792 845 1,007 1,025 1,012

890 868 828 826

684 695 783

300 500 700 900 1,100 1,300 1,500

2009

- 06 2009

- 07 2009

- 08 2009

- 09 2009

- 10 2009

- 11 2009

- 12 2010

- 01 2010

- 02 2010

- 03 2010

- 04 2010

- 05 2010

- 06 2010

- 07 2010

- 08 2010

- 09 2010

- 10 2010

- 11 2010

- 12 2011

- 01 2011

- 02 2011

- 03 Available SDEW Onboard PDEW Flights DEW 21.8 21.6 21.7
19.6 19.0 17.9 16.4 16.3 17.7 18.4 18.7 18.9 20.5 21.1 20.5 19.2 19.1 18.0 18.1
16.1 14.5 15.5Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 19 In all, the region surrounding Crescent City has lost an average of 500 daily departing airline seats in the last three years. At the same time, the region has lost an average of ten daily departures on all airlines. Thi s is partially responsible for the increase in load factor at Crescent City, but it is clear there is much more work to do to reduce leakage from the Del Norte County Regional Airport catchment area. Rather than have Crescent City passengers competing for an increasingly limited resource at airports in Medford and Arcata

- Eureka, it makes sense to promote local service, and the current available seats at the Del Norte County Regional Airport, keeping seats at other regional airports open for residents of th ose catchment areas.



### FIGURE 9 : Available Seats, Passengers, and Departures per Day Each Way at Arcata

- Eureka June 2009

– March 2011; Source: US DOT T100 Data

595 599

553 544 513 523 521 532 541 547 531 553 531 523

442 451 461 466 445 449 464 472 460 492

419 431

327 419 411 422 394 395 399 394.6 395.1

304.5 319.6 315.9 325.7

259.8 269.6 304.1 314.0 318.9 345.7 342.9 347.7

275.3 284.6 289.0 289.5

237.0 235.2 256.8 277.4 298.5 321.2
286.6 305.0

214.2 287.4 280.3 268.1

216.9 229.0 241.3

0 100 200 300 400 500 600 700

Available SDEW Onboard PDEW Flights DEW 14.1 14.2

12.9 12.7
11.9 12.0 12.0 12.2 12.5 12.6 12.2 12.9 12.2 11.9

10.6 10.8 11.2 11.2 10.7 10.7 11.2 11.3 11.0 12.0

10.4 10.7

8.5 11.1 10.8 11.0

10.1 10.2 10.4Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 20 STRATEGIC PLAN

The challenges in the Crescent City market are clear: a lack of available seats, higher fares than airports in nearby markets, service from just one branded airline, and a lack of public knowledge about the local service offered. As an Essential Air Service market, the Del Norte County Regional Airpo rt is limited in recruiting additional airline seats to the market, or additional airlines. But the Airport can work to increase local enpla nements and to reduce leakage, which ultimately should help bring fares down and increase overall service levels.

In support of this goal, t he Airport seeks a Small Community Air Service Development Grant in order to provide essential marketing and advertising support for SkyWest’s, dba United Express,
Essential Air Service to the San Francisco hub

. T he Airport believes the increased enplanements from a marketing and advertising program would reduce the burden on the Essential Air Service (EAS) program to provide subsidies in the market. The long term goal under the program would
be to increase en planements to a level where the community’s Essential Air Service funding is no longer needed.

One of the main reasons for the continued passenger leakage from the Del Norte County Regional Airport, outside its higher average fares, is the lack of local k nowledge about available air service in Crescent City. Those who live in the Airport catchment area are not conditioned to check local fares first, before booking flights from other airports. Local area travelers immediately book flights from Medford, Eu reka/Arcata, and North Bend/Coos Bay, without ever checking to see if fares would be cheaper at Crescent City itself. This lack of general air service awareness is draining the local economy of valuable travel dollars, as travelers spend more than they wo uld locally by flying from other airports.

An example of this trend exists in the local Crescent City

– San Francisco market. Local passengers between the two communities peaked in 2007, with an average of 8.4 passengers per day each way traveling betwee n the Del Norte County Regional Airport and San Francisco International (see figure 10). Since then, the local market has been in a steady state of decline, despite fares in 2010 that are only $3 higher each way on average than the fares offered in 

## “The long term goal under this program would be to increase enplanements to a level where the

community’s Essential Air Service

funding is no longer needed.”Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 21 2007. In 2010, the local Crescent City

– San Francisco market saw an average of just four passengers per day each way

– a loss of 4.4 passengers per day each way, or 52% of local
passengers.

The key to this passenger decline is likely seen in fare data from 2008. The 2008 average one way fare from Crescent City to San Francisco jumped $18 each way over 2007 (see figure 10). The impact of this fare incre ase clearly was to drive local Crescent City catchment area passengers to other airports in the region. The challenge has been, as fares have come back down in the last two years, that local passengers have been conditioned not to check fares at
the Del N orte County Regional Airport . The Airport believes an intense and focused marketing campaign can help re

- train these passengers to check fares at the local airport, now that they have come down off 2008 highs.

Under this strategic plan, t he Del Norte Cou nty Airport plans a wide

- ranging marketing campaign, saturating the en tire airport catchment area in northern California and so uthern Oregon. The main message will be to check local fares before booking fr om other airports in the 

### FIGURE 10 : O&D Passengers and Average One Way Fares, CEC

- SFO 2001

– 2010; Source: US DOT Table OD1A

4,700

2,910 4,670 4,270 4,730 5,280 6,120

4,620

3,230 2,900 6.4

4.0 6.4

5.8 6.5 7.2 8.4

6.3

4.4
4.0

0 1,000 2,000 3,000 4,000 5,000 6,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Total Passengers

$112 $112 $109 $111 $115

$98

$81 $99

$89 $84Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 22 region . The campaign wil l highlight local air service affordability and availability, by showing direct comparisons on certain routes between fares at Del Norte County Airport and the airports in Eureka/Arcata and Medford. The campaign will also have a focused message towards Sa n Francisco service, in hopes of bringing local traffic up to 2007 levels

.

The campaign will be designed to include frequent radio, television, and newspaper advertising, along with giveaways. The Airport seeks $200,000 in federal funds, to be paired with $20,000 in new local funds, from the Airport and its community partners

– above and beyond the Airport’s current marketing budget

– to support this marketing and advertising
campaign. The camp aign is planned to last beyond the length of the
current Essential Air Servic e contract

– through May of 2013

.

The Airport has already developed a comprehensive marketing and advertising placement plan, which will
inclu de large buys on local and regional radio stations, along with local and regional newspapers and magazines. The campaign will be
focused in the immediate Crescent City MSA, and bordering counties in
both northern California and southern Oregon.

Other typ es of marketing will include
new website materials for ease of booking and better awareness of specific flight schedules, with banner ads promoting San Francisco service. The Airport also plans specific outreach to area businesses, through 

### FIGURE 11 : Proposed Print Advertisement for the Del Norte County Regional Airport

United Express service at the Del Norte County Regional Airport is independently operated by SkyWest. 

# DON’T TAKE A DAY TO GET TO THE BAY.

United Express offers daily non

- stops to San Francisco, direct from the Del Norte County Regional Airport. No more big airport hassles, and no more wasted days getting to the Bay. 

# FLY

- CEC .comDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 23 Airport

- affilia ted employees, to meet with those who travel most frequently and ensure they are aware of the benefit of using local air service.

Rough drafts have been created for some of the advertising slated for newspaper and magazine runs. The main draft print advertisement extols the benefits of flying to San Francisco
on the currently available non

- stops (s ee figure 11 ). Many of those who live in the area drive to San Francisco, despite the high cost of fuel and the long drive
time of 6 hours and 30 minutes.
This ad seeks to increase awareness that the trip can be made much more quickly by using Crescent City air serv ice on United Express, especially

now that fares are more in line
with those found at other airports in the region.

Additionally, the Airport has included a rough draft of a radio
advertisement which is also focused on boosting local traffic
on the route to San Francisco (see figure 12). It is believed
these two formats

– print and
radio

– will offer the most purchasing power for potential Grant funding. Additionally, a
number of internet

- based advertising strategies will be used, including Facebook adve rtising and other social media.

The Airport believes the marketing and advertising campaig n will have an immediate impact

. The overarching goal is to increase the knowledge about local air service and to increase enplanements to reduce the current amount of the per

- passenger subsidy at the Del Norte County Regional Airport. 

### FIGURE 12 : Proposed Radio Advertisement for the Del Norte County Regional Airport

CLIENT: DEL NORTE COUNTY REGIONAL AIRPORT/UNITED EXPRESS/SKYWEST PROJECT: UNITED TO SAN FRANCISCO, VERSION ONE LENGTH: 30 (RADIO) DATE: 8/2011

FROM THE DEEP WOODS OF THE NORTH COAST... (NAT SOT

– JET TAKEOFF)

NON

- STOP TO THE CITY BY THE BAY. (SOUND

– FLIGHT ATTENDENT ON BOARD AIRCRAFT) “WELCOME ABOARD UNITED... WE’RE HEADED TO SAN FRANCISCO.” (MUSIC BED

– UNITED AIRLINES/GERSHWIN “RHAPSODY IN BLUE”

– UNDER TRACK)

UNITED EXPRESS... IN CRESCENT CITY. TWO DAILY FLIGHTS TO S

- F

- O. CONNECTIONS AROUND THE COUNTRY... AND AROUND THE WORLD... TO MORE THAN EIGHTY DESTINATIONS

FIND YOUR LOW FARE AT UNITED

- DOT

- COM. UNITED AT THE DEL NORTE COUNTY REGIONAL AIRPORT. (MUSIC BED FADE) (SOUND

– FLIGHT ATTENDENT ON BOARD AIRCRAFT) “LET’S FLY TOGETHER.” 

# FLY

- CEC .comDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 24 IMPLEMENTATION TIMELINE

The Airport’s proposed implementation timeline for the project assumes the Department will award Small Community Grant Funding in September of 2011

. Once the award is announced, the Del Norte County Regional Airport will begin work with private marketing and advertising firms, along with SkyWest and United Airlines, to build the campaign materials and to finalize the placement plan.

The first two m ilestones on the Airport's timeline are to execute the grant agreement with the Department and execute an agreement with a marketing and advertising firm to begin work. These milestones should be achieved by the end of October 2011

. Additionally, t he Air port w ill submit grant status reports on a quarterly basis to the Department throughout the proposed term
of the marketing and advertising program

. The specific timeline is listed.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement Sepetmber 2011 Executive Grant Agreement with DOT October 2011 Executive Agreement with Marketing Firm In Place Develop Creative October 2011 Develop Comprehensive Placement Strategy October 2011 Launch Campaign October 2011 Sustain Campaign October 2011 - October 2013 Monitor Route Performance October 2011 - October 2013 Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2013 Close Grant November 2013Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 25 PUBLIC/PRIVATE PARTNERSHIP

A number of local partners will be working with the Del Norte County Regional Airport to promote and market air service. Contacts will be made to all members of local chambers of commerce and similar organizations, and those with an interest in growing the economic b ase of the community through local business growth, attraction of new businesses and the promotion of tourism and visitor traffic via the airport.



### Del Norte County Chamber of Commerce The Del Norte Chamber of Commerce acts as an information bridge betwe en the Airport and the community’s businesses. The Chamber represents thousands of area businesses. The Chamber is in a unique position to spread the word about air service in the market, and to promote its use. The Chamber is vital in the marketing of any air service, and is ready to use its resources to aid in the marketing program described in this application.



### Del Norte County Del Norte County Supervisors are some of the biggest supporters of continued air service at Crescent City’s local airport, a s they realize how vital the Del Norte County Regional Airport is to the growth of the entire region of northern California and southern Oregon that it serves. As the owners of the Del Norte County Regional Airport, County leaders continually work to deve lop and support new air service initiatives.



### Border Coast Regional Airport Authority The Airport Authority was recently formed as a cross

- border Joint Power Authority to provide regional management of a critical public use facility that serves the entir e region. The Airport Authority Board of Commissioners is made up of representatives from the County of Del Norte and Curry County Board s of Supervisors, the City Council of Crescent City and Brookings Oregon,
and the Tribal Chai r of the Elk Valley Rancher ia and soon the Smith River Rancheria. The Border Coast Regional Airport Authority is responsible for the operation, management
, and promotion of the Del Norte County Regional Airport.

The Airport Authority Board of Commissioners is in charge of determining the Airport’s budget, and approved this application for grant funding. The Airport Authority Board will oversee this grant, if awarded.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 26 Curry County, Oregon Curry County, Oregon
, took the unprecedented step of awarding the Del Norte County Ai rport a County grant to study and promote new air service. This cross

- county and cross

- state grant is one of the few of its kind ever awarded in the country.



### Cities of Crescent City, California
, and Brookings, Oregon The Cities of Crescent City and Brook ings are members of the Border Coast Regional Airport Authority and they work together to promote air service at the Del Norte County Regional Airport. Both cities realize the importance of air service in expanding local tourist

- based economy. City leader s continually work with Airport leaders to promote service, and to ensure the Airport has the resources it needs to be competitive in the region.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 27 FUNDING PLAN

Marketing and Advertising The Del Norte County Regional Airport/Jack McNamara Field proposes to spend a total of $220,000 in funds on marketing and advertising promotions in support of SkyWest/United Express service to and from San Francisco. The goal is to increase enplanements, and lower fares, through targeted regional campaigns.

An example of the advertising produced for the campaign is available in the “detailed explanation of the proposal” section of this document. $20,000 of the total marketing budget will come from new local funds, being committed specifically for this Grant application, while the federal share will be $200,000.



### In

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

**•** Del Norte Chamber of Commerce

**•** City of Crescent City

**•** City of Brookings, Oregon

**•** Del Norte County

**•** Airport Technical Advisory Committee

**•** Elk Valley Rancheria

**•** Smith River Rancheria

**•** Curry County, Oregon

**•** Brookings Chamber of Commerce

**•** Tri Agency Economic Development Agency



### Additional Costs As part of this program the Airport understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. The Airport will pay for these additional expenses out of other airport sources and will not incorporate these fees and charges into this proposal.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 28 PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of the program will be based on a pair of variables. The Airport will judge the first measure of success by the increased number of enplanements on United Express service to San Francisco. The second measure of success will be based on how much average airfares charged in the community have gone down, with the increase in enplanements. The measurement of enplanem ents will include a monthly comparison, once the program begins, to past enplanement numbers. The measurement of airfares will be derived from US DOT OD1A reports.

As the sponsor, the Border Coast Regional Airport Authority will be the responsible party for all fiscal matters and US DOT reporting requirements. The Airport is publicly owned by Del Norte County and operated and managed by the Border Coast Regional Airport Authority who also manages and monitors numerous Caltrans and FAA AIP grants for vari ous airport capital improvement and compliance projects. As a public entity the US DOT can be assured that proper financial controls are in place to guarantee that the US DOT’s grant will be used in accordance with any subsequent agreement. The leaders o f the Airport Authority understand that the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the US DOT for reimbursement, based on a percentage of the total grant request.

The Del Norte County Regional Airport has developed this proposal as a one

- time grant. The advertising and marketing program will commence as soon as this grant is awarded and last into
2 013 . It is projected that local enplanements will grow within the first few months of the launch of the advertising program.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 29 LEGAL SPONSOR

The Border Coast Region al Airport Authority is the legal sponsor responsible for administering the
program. The Border Coast Region al Airport Authority is a government entity.

Border Coast Regional Airport Authority 1 50 Dale Rupert Road Crescent City, California 95531 James Bernard , Airport Director 707.464.7288 JBernard@co.del

- norte.ca.usDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 30 LETTERS OF SUPPORTDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 31Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 32Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 33Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 34Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 35Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 36Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 37Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 38Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 39 AVAILABILITY OF ALTERNATE AIRPORTS

It is well established that many of those who live in the Del Norte County Airport/Jack McNamara Field catchment area choose to fly from other airports in the region. The most popular alternate airport for Crescent Cit y area travelers tends to be Eureka/Arcata, which is located 69 miles south of Crescent City on Highway 101, the Pacific Coast Highway (see figure
13 ). Due to the rugged terrain one must cross through the Coast Range,
the drive to Eureka/Arcata takes abo ut an hour and a half on a mostly narrow
two

- lane highway

.

A number of Del Norte County Airport catchment area travelers also fly from the Rogue Valley International Airport in
Medford. Medford is 109 miles f rom Crescent City (see figure 13 ). Moreover, the drive from Crescent City to Medford is exceptionally difficult, on a narrow,
two

- lane road

– Highway 199

– through the Redwoods National Park, and the Coast Range of southern Oregon. In the winter, this trip is almost impossible when storms roll in

o ff the Pacific, dumping heavy snows in the mountains. In good weather, the drive from Crescent City to Medford takes 2 hours and 20 minutes. In bad weather the drive can take as long as 4 hours. 

### FIGURE 13 : Airports in the Same Region as the Del Norte County Regional AirportDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 40 AIRPORT INFORMATION

Del Norte County Regional Airport, also known as Jack McNamara Field, serves the northern coast of California as the only gateway commercial airport between Arcata/Eureka, California
, and Medford, Oregon. The airport has many advantages to offer the traveling public. Facilities
include f ree on

- airport parking , c lose proximity to the cities, c ounties and c ommunities served
,
s

horter lines for TSA conducted security screening of passengers
, and c ar rental agencies on

- site

.

The Airport has two runways, in an “x” formation. Each runway is 5,000 feet long, while Runway 11 is the only one equipped with an ILS (instrument landing system) approach.

Del Norte County Regional Airport is a County

- owned facility, located just three miles from the Crescent City central business district. The Airport is also located within walking distance of the Pacific Ocean . About 27% of the Airport’s operations a re provided by commercial airlines (wi th scheduled SkyWest service),
while 73 % of the Airport’s operations a re air taxi and general aviation. 

### FIGURE 14: D el Norte County Regional Airport at Jack McNamara Field, Crescent City , Aerial PhotoDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 41 COMMUNITY PROFILE

The town of Crescent City is named after its crescent

- shaped beach. It emerged in the 1850s, during the Gold Rush
, and soon became the chief port of entry and supply center for miners of Oregon and neighboring settlements in California.

The Redwood forest provided settlers the lumber they needed for
settlement and survival. Today, those same forests bring millions o f tourists to the region. Redwood National Park was established in
1968. Crescent City has a thriving tourism industry that capitalizes on the community’s location and easy access to numerous recreational opportunities.

Crescent City is surrounded b y State and National Parks and recreational opportunities. The Elk Creek Wildlife Area is located adjacent to downtown Crescent City, Tolowa Dunes State Park is slightly north of the Airport , and the Redwood N ational Park Headquarters and Visitor Informati on Center is located in the city’s downtown. The Smith River National Recreation Area, and the Redwood National Park are both within a few miles of the city. Hiking, biking, bird watching, fishing, and whale watching are all offered within a few miles of the
downtown core.

The Crescent City Harbor offers resources for whale watching cruises, wind surfing, surfing, fish derbies, and diving. There are three community groups that offer arts and cultural performances, exhibits, and educational programs, incl uding the Community Concert Association, the Del Norte Association for Cultural Awareness, and the Lighthouse Repertory Theatre.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 42 What’s New in Crescent City

Crescent City has completed its transition from a timber economy to a tourism and fishing economy, with downtown development helping to lure significant new investment. As the gateway to Redwoods National Park, Crescent City has become a top tourist destination on the
West Coast , and a number of new businesses are popping up to ta ke advantage of local tourist spending.

**•** Crescent City officials have made it a priority to revitalize Front Street, seeing it as a potential boon for economic development and beautification. After a final conceptualization is chosen, the city intends to go to the Del Norte Local Transportation
C ommission to secure funding for the design. Local Transportation Commission Executive Director Tamera Leighton said the project design would likely be eligible for various types of funding

— including Regional Surface Transportation Program money from Cal trans

— because it is considered a regional transportation priority. Front Street is seen as an important area for the community

. Leighton said
, “It’s an access to our downtown and a
lot of our public beaches. It has the potential to be a main street to our city and really benefit our community.”

**•** Bay Area developers recently built a new downtown project, called the Abbienna Plaza, which is a complete remodel of a 20,000 square foot building that survived Crescent City’s 1964 tsunami. The building houses five commercial tenants

– businesses aimed at bringing tourists to the downtown area

– along with upper floor office space. The multi

million dollar development is just one of several that are reviving the downtown core.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 43 Crescent City Economic Overview

Crescent City’s economy has long been tied to the natural resources which surround the City. In the early days of the City’s founding

– the mid 1800s

– timber was king in Crescent City and throughout the hills surrounding the City in northern California and southern Oregon. As more land was brought under federal protection in the mid 1900s, the economy was forced to move away from timber, and towards commercial fishing. T oday, more than 100 commercial ships are docked in the Crescent City Harbor, along with dozens of sport fishing boats which draw tens of
thousands of tourists to the region each
year.

Government is, by far, the Crescent City area’s largest source of emplo yment, employing almost 44%
of all area workers (see figure 15 ).
Educational and
health services is second, with almost 14% of workers. Meanwhile, the importance of tourism to the local economy is evident, as leisure and hospitality workers make up almos t 11% of all Crescent City area employees.

Industries such as government, educational and health services, and trade , transportation, and utilities recorded significant job gains. Educational and health services grew by more than 13 percent
, or 130 jobs, while trade, trans portation, and utilities experienced 11.8 percent growth, also adding 130 jobs. Other industries recording gains over these years included: natural resources, mining, and construction; financial activities
, leisure and hospitality
, agric ulture
, and manufacturing. The Crescent City area has also become a center for bulb farms, producing a large proportion of the bulbs sold to nurseries around the West . Crescent City’s most well

- known bulbs include many varieties of lilies. 

### FIGURE 15 : Del Norte Employment by Industry Source: Del Norte CountyDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 44 Select Company Profiles

Dahlstrom & Watt Bulb Farm

The Dahlstrom and Watt Bulb Farm, located in Smith River, is one of the largest floral growers in the western United States, with markets around the country, and in several foreign countries. Dahlstrom and Watt operates 12 acres of greenhouses producing holiday floweri ng plants, foliage plants, and specialty plants. The facility also has several outdoor acres of ornamental plants. Dahlstrom and Watt grows nearly 25% of all the Easter lily bulbs in the
US and Canada.

Hambro Forest Products The Hambro Group owns sever al forest products producers from Crescent City and Eureka, California
, to the coasts of North Carolina. Hambro’s Crescent City facility produces Cresdek, engineered recycled wood used for flooring. Credek is shipped from Crescent City to more than 60 ho me builders around the country, and has been in continuous production since 1965.

Palmer Westbrook, Inc. The Palmer Westbrook Ranch, in Smith River, features two distinct businesses. The Ranch is one of the largest producers of Easter lily bulbs in the US, after nearby Dahlstrom and Watt, while at the same time being one of California’s largest organic beef producers. The Palmer Westbrook company operates a sustainable organic farm, in line with the values of many in the region.

The Sun Valley Group
S un Valley Floral Farms is another of the region’s large flower producers, helping to anchor the agricultural economy of Del Norte County. Sun Valley grows primarily Iris, Hydrangea, and Zantedeschia at its Smith River facility. The Group also has it s Employer
Ci ty of Crescent City Crescent City Nursing & Rehab Elk Valley Rancheria
Hambro Forest Products Home Depot
Palmer Westbrook Inc. Pelican Bay Prison Ray’s Food Place Safeway
Smith River Rancheria Sutter Coast Hospital
Walmart
Yurok Tribe 

### FIGURE 16 : Major Employers in Del Norte County, Source: Del Norte Chamber of CommerceDel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 45 headquarters in Del Norte County, with its national sales team that places its products around the country.

Crescent City Tourism

Amid an awe

- inspiring cathedral of soaring ancient redwoods, along a rugged wave

- swept Pacific shore, deep in the cool serp entine cany ons of the untamed Smith River, Del Norte County is where visitors find the real Northern California. Cool ocean mists nurture the giant
redwoods. Rich offshore fishing grounds support a thriving commercial fishery. The rocky
chasms and thril ling whitewater of the Smith River

– California's largest wild river system

– form the spectacular centerpiece of the 305,337 acre Smith River National Recreation Area. And throughout Del Norte County, diverse river and sea

- creature habitats support an in credible array
of wildlife. Magnificent forest trails, sandy beaches, and river rafting are all close at hand. Yet for all its accessibility, Del Norte County is unspoiled and not crowded

– perhap s the most
remarkable fact of all.

Standing above all oth ers, the great redwood forests of Del Norte County have long epitomized the fabled beauty of the North Coast. For many years, tales have been told of a redwood kingdom hidden in the North. Today, the County is home of Redwood National and State Parks, nearly a half

- million acres of national forest lands.

Redwoods National Park Created in 1968, to preserve the majestic Redwood forests of the northern California coast, Redwoods National Park is a 132,000 acre preserve just a
few miles outside of Crescen t City. The Park is located entirely within Del Norte and Humboldt Counties, protecting 45% of all the remaining Coastal Redwood forest in the world. The Park also offers breathtaking vistas of the rocky, rugged Pacific Coast. Roughly 400,000 people com e through the Park’s visitor’s center, located in Crescent City, each year.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 46 Brookings, Oregon
L ocated less than 45 minutes to the north of Crescent City along the famed Pacific Coast Highway, Brookings is in what’s known as the “banana belt” of Orego n, on a warm current in the Pacific Ocean that keeps it in the 70s during the winter. Brookings is also known for its spectacular, rocky coastline, and championship golf courses. More than a million tourists make the trip to Brookings each year, with Cre scent City being the closest gateway by
commercial airline service.

Crescent City Charter Fishing The Crescent City Harbor is home to several dozen sport fishing charter boat s , which run both public and private deep sea Pacific fishing charters. Most trips catch salmon
and tuna but
, depending on the season
, boat captains offer Dungeness crab , shrimp, and cod trips.

Enderts Beach Located within Redwoods National Park, Enderts Beach is just three miles south of the Crescent City downtown business distri ct, and is one of the most popular for visitors and locals alike. Enderts offers a sandy beach, along with trail access to a number of rocky tide pools. Enderts is known as the premier spot for whale watching in the spring and fall.

Elk Valley Casino
Th is 23,000 square foot casino is located near the entrance of Redwoods National Forest, featuring Las Vegas

- style gaming. A hotel resort, an 18

- hole golf course, a bowling center, and an RV resort are in the planning and design phase.

Lucky 7 Casino
The L ucky 7 Casino is an enterprise of the Tolowa Indians of the Smith River Rancheria. When the
Rancheria was est ablished in 1906, it was the largest in the State of California, consisting of 160

acres. In 2001 , the Rancheria opened a new facility, which now offers 270 slot machines, Blackjack, Bingo, and the Ho use of Howonquet restaurant. The Casino is in the process of a major expansion that will add a new conference/bingo area, new restaurant and double the size of the gaming area.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 47 Point St. George
The P oint St. George Trail , part of the Pacific Coast Trail, offers a mellow stroll along bluffs overlooking a dramatic rocky coastline. The well

- preserved wetlands here are an important stopover on the Pacific Flyway

— a major migration route for bird species such as harlequin ducks, tundra swans, and Aleutian Canada geese. The park encompasses a stretch of dramatic rocky coastline that is among the best in the state. Killer sunsets are a regular occurrence, and
the bl uffs make an excellent platform for whale watching in late fall and mid

- spring.

Higher Education in Crescent City

Crescent City is home to several thousand full

- time students who attend the College of the Redwoods local campus. The College offers two

- year community programs in a number of fields, with its main campus in Eureka. The college offers a variety of transfer, vocational, and community

- based classes, including its world

- famous Fine Woodworking Program started by master woodworker
James Krenov
, along with a Police Academy, Nursing and Dental Programs, Truck Driving School,

ever

- evolving Computer Information Sciences, Computer

- Aided Drafting and Digital Media Departments, and the Hospitality, Restaurant and Culinary Arts Program.Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 48 C OMPARISONS TO REGIONAL COMMUNITIES

FIGURE 17 : Top 60 Southwest Region Airports Ranked by Average Domestic Fare 4Q 2010; Source: US DOT Table OD1A

Airport

1 Guam $533.40 $554.61 $601.64 $533.00 19.5% $86.96 $557.97 10.7% $54.10 2 Eagle/Vail, CO $236.52 $264.75 $222.82 $278.77 10.9% $27.44 $243.56 13.1% $28.24 3 Aspen, CO $241.19 $242.20 $265.33 $258.65 7.0% $17.01 $250.83 8.2% $19.10 4 Yuma, AZ $233.94 $252.11 $264.05 $253.08 8.5% $19.86 $249.78 5.3% $12.57 5 Bakersfield, CA $225.33 $238.23 $245.21 $241.16 11.5% $24.90 $238.08 10.5% $22.56 6 Hayden, CO $187.04 $235.47 $231.29 $238.47 1.7% $3.94 $205.28 13.8% $24.93 7 Gunnison, CO $192.32 $221.23 $222.87 $231.67 4.2% $9.28 $209.51 18.3% $32.39 8 Montrose, CO $212.32 $230.30 $228.10 $228.61 0.7% $1.54 $222.37 12.7% $25.10 9 Rosw ell, NM $221.73 $224.28 $226.57 $225.17 17.6% $33.75 $224.64 6.9% $14.44 10 Flagstaff, AZ $181.50 $189.68 $198.41 $224.96 33.0% $55.84 $198.73 20.8% $34.17 11 Santa Fe, NM $202.54 $226.22 $231.49 $220.65 9.9% $19.89 $221.99 11.4% $22.72 12 Santa Barbara, CA $194.39 $196.72 $212.16 $215.72 8.4% $16.77 $205.20 7.7% $14.73 13 Honolulu, HI $194.20 $203.90 $204.63 $214.60 11.4% $21.99 $204.45 12.1% $22.07 14 San Luis Obispo, CA $193.14 $201.01 $233.63 $213.13 -4.5% -$10.11 $210.89 -4.9% -$10.76 15 Fresno, CA $190.71 $201.55 $210.67 $212.95 15.4% $28.36 $204.68 10.6% $19.65 16 Kahului, HI $207.91 $196.76 $198.73 $210.61 10.2% $19.54 $203.23 9.5% $17.67 17 Monterey, CA $189.22 $200.78 $229.07 $210.29 12.9% $24.06 $207.76 10.5% $19.68 18 Kona, HI $198.41 $197.24 $190.51 $209.02 15.2% $27.64 $198.70 17.2% $29.09 19 Kauai Island, HI $179.87 $190.81 $191.36 $203.20 15.9% $27.86 $191.36 16.6% $27.24 20 Palm Springs, CA $191.03 $186.82 $192.01 $200.84 10.0% $18.23 $192.68 5.8% $10.61 21 Grand Junction, CO $180.36 $190.25 $185.04 $196.70 7.0% $12.90 $188.43 11.6% $19.57 22 San Francisco, CA $177.24 $198.40 $202.19 $194.16 10.1% $17.85 $193.76 13.1% $22.39 23 Durango, CO $180.01 $182.03 $187.70 $193.64 5.0% $9.17 $186.14 3.5% $6.31 24 Los Angeles, CA $181.77 $193.09 $198.30 $190.29 6.5% $11.62 $191.29 10.7% $18.54 25 Arcata/Eureka, CA $208.17 $202.84 $202.49 $186.96 -8.7% -$17.80 $199.53 4.8% $9.09 26 Colorado Springs, CO $182.78 $188.18 $184.90 $182.03 5.4% $9.30 $184.59 9.5% $15.98 27 Tucson, AZ $165.80 $175.51 $171.74 $178.45 7.5% $12.50 $172.90 7.7% $12.31 28 Salt Lake City, UT $172.06 $173.60 $180.87 $174.46 8.8% $14.15 $175.25 15.0% $22.87 29 San Diego, CA $159.17 $167.31 $171.02 $167.35 10.2% $15.45 $166.48 12.8% $18.87 30 Redding, CA $182.52 $181.51 $214.96 $166.11 -18.0% -$36.57 $186.31 -3.8% -$7.43 31 Phoenix, AZ $158.56 $163.01 $160.31 $165.65 11.7% $17.37 $161.93 12.3% $17.72 32 Albuquerque, NM $156.13 $164.48 $170.81 $165.12 9.0% $13.57 $164.56 11.8% $17.36 33 Santa Maria, CA $158.34 $152.33 $174.46 $162.43 3.0% $4.71 $162.20 -4.1% -$7.00 34 Orange County, CA $148.21 $159.15 $170.13 $161.95 16.4% $22.84 $160.13 14.8% $20.69 35 Bull. City/Laughlin, AZ $138.20 $139.00 $149.30 $158.30 11.1% $15.80 $144.82 10.8% $14.12 36 Sacramento, CA $144.04 $155.43 $162.72 $156.86 10.6% $15.05 $155.22 10.6% $14.89 37 Chico, CA $142.36 $151.13 $183.24 $152.99 14.3% $19.13 $156.52 25.6% $31.95 38 Reno, NV $154.36 $160.32 $166.08 $152.43 2.3% $3.50 $158.62 6.2% $9.29 39 Modesto, CA $148.79 $147.21 $202.68 $152.30 9.5% $13.24 $161.02 20.5% $27.37 40 San Jose, CA $138.10 $154.54 $158.54 $150.97 13.2% $17.64 $151.09 15.5% $20.32 41 Ontario, CA $142.39 $152.66 $160.30 $150.39 7.1% $9.98 $151.71 10.1% $13.97 42 Las Vegas, NV $146.13 $156.12 $151.16 $150.12 8.1% $11.28 $150.98 13.1% $17.45 43 Elko, NV $149.26 $150.69 $314.99 $148.19 10.1% $13.64 $177.76 30.3% $41.35 44 Denver, CO $142.23 $145.92 $150.00 $148.06 4.2% $6.00 $146.73 5.9% $8.23 45 Burbank, CA $125.36 $134.44 $140.57 $135.60 9.3% $11.49 $134.14 10.0% $12.22 46 Oakland, CA $124.97 $136.34 $140.72 $133.36 7.6% $9.44 $134.27 11.9% $14.30 47 Carlsbad, CA $144.43 $151.36 $179.38 $127.99 -9.2% -$12.95 $147.33 6.3% $8.77 48 Santa Rosa, CA $112.26 $124.33 $127.80 $120.24 5.4% $6.17 $121.68 4.9% $5.65 49 Long Beach, CA $107.16 $119.03 $117.90 $119.72 3.8% $4.39 $116.33 4.8% $5.36 50 Hilo, HI $98.54 $104.02 $103.71 $112.40 32.5% $27.55 $104.62 34.6% $26.89 51 Saipan, PT $111.94 $124.09 $128.30 $105.47 13.3% $12.39 $117.81 17.6% $17.65 52 Saint George, UT $100.55 $108.09 $233.37 $98.75 5.1% $4.83 $116.24 25.8% $23.83 53 Kapolua, HI $100.50 $98.73 $97.42 $96.52 -6.1% -$6.29 $98.27 4.0% $3.82 54 Lanai City, HI $100.90 $86.35 $83.30 $96.29 5.8% $5.24 $91.67 1.5% $1.35 55 Pueblo, CO $139.18 $158.87 $145.54 $93.68 -38.5% -$58.62 $120.90 -23.9% -$37.99 56 Mesa Gatew ay, AZ $96.41 $89.06 $76.88 $88.77 6.5% $5.41 $87.91 4.1% $3.45 57 Fort Collins, CO $58.13 $55.23 $49.90 $61.61 0.9% $0.52 $56.81 -2.6% -$1.53 58 Stockton, CA $48.01 $51.30 $38.98 $47.30 -5.0% -$2.49 $44.85 -4.8% -$2.28 59 Rota, PT $47.00 $51.70 $48.20 $45.00 -0.9% -$0.40 $47.89 4.1% $1.89 60 Hoolehua, HI $53.36 $48.41 $49.18 $43.12 -8.6% -$4.05 $47.84 6.6% $2.98 1 Q 10 2 Q 10 3 Q 10 4 Q 10 Average Regional Fare $160.30 $169.01 $172.28 $169.08 9.0% $13.94 $167.84 11.5% $17.29 YE/YE YE/YE 2010 Qtr/Qtr Qtr/Qtr Rank 1 Q 10 2 Q 10 Dec-10 3 Q 10 4 Q 10 % ? Fare ? % ? Fare ?Del Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 49 Airport

1 Rota, PT 63.86¢ 40.85¢ 59.08¢ 68.46¢ 0.3% 0.18¢ 55.94¢ -13.5% -8.75¢ 2 Hoolehua, HI 24.70¢ 31.42¢ 35.19¢ 39.37¢ 14.4% 4.97¢ 32.08¢ -1.3% -0.41¢ 3 Lanai City, HI 22.70¢ 27.28¢ 23.13¢ 26.67¢ 9.3% 2.26¢ 24.76¢ 3.9% 0.93¢ 4 Saipan, PT 23.52¢ 22.86¢ 22.86¢ 23.33¢ 0.4% 0.09¢ 23.12¢ -3.8% -0.91¢ 5 Aspen, CO 20.37¢ 20.52¢ 23.18¢ 21.88¢ 7.3% 1.49¢ 21.40¢ 8.0% 1.58¢ 6 Kapolua, HI 19.85¢ 21.51¢ 21.91¢ 21.14¢ -1.5% -0.32¢ 21.08¢ 3.6% 0.73¢ 7 Santa Rosa, CA 20.38¢ 21.99¢ 22.51¢ 21.14¢ 6.5% 1.29¢ 21.58¢ 8.9% 1.77¢ 8 Hilo, HI 17.67¢ 17.58¢ 17.99¢ 20.36¢ 25.5% 4.13¢ 18.36¢ 16.6% 2.62¢ 9 Eagle/Vail, CO 16.75¢ 20.22¢ 17.37¢ 20.17¢ 11.7% 2.11¢ 17.61¢ 13.9% 2.15¢ 10 Santa Fe, NM 17.29¢ 17.69¢ 19.00¢ 19.95¢ 8.1% 1.49¢ 18.51¢ 3.4% 0.61¢ 11 Rosw ell, NM 20.73¢ 20.64¢ 21.07¢ 19.74¢ 4.9% 0.92¢ 20.56¢ 1.1% 0.23¢ 12 Gunnison, CO 15.99¢ 18.63¢ 20.05¢ 19.30¢ 4.9% 0.90¢ 17.74¢ 19.9% 2.95¢ 13 Durango, CO 17.35¢ 17.31¢ 17.94¢ 18.87¢ 8.2% 1.42¢ 17.88¢ 4.0% 0.68¢ 14 Hayden, CO 13.91¢ 18.34¢ 18.94¢ 18.43¢ 4.7% 0.82¢ 15.58¢ 11.5% 1.61¢ 15 Grand Junction, CO 17.06¢ 17.09¢ 16.40¢ 18.30¢ 6.4% 1.09¢ 17.20¢ 8.1% 1.29¢ 16 Bakersfield, CA 15.76¢ 16.45¢ 16.33¢ 17.81¢ 15.8% 2.43¢ 16.64¢ 12.3% 1.82¢ 17 Flagstaff, AZ 14.54¢ 15.28¢ 15.86¢ 17.22¢ 21.0% 2.99¢ 15.77¢ 14.8% 2.03¢ 18 Yuma, AZ 16.06¢ 16.45¢ 16.72¢ 16.90¢ 7.8% 1.23¢ 16.53¢ 3.1% 0.50¢ 19 Montrose, CO 15.08¢ 16.97¢ 17.78¢ 16.87¢ 1.8% 0.30¢ 16.39¢ 12.4% 1.81¢ 20 Burbank, CA 16.18¢ 16.76¢ 16.57¢ 16.81¢ 10.3% 1.56¢ 16.59¢ 10.5% 1.58¢ 21 Santa Maria, CA 16.74¢ 15.62¢ 16.81¢ 16.59¢ -2.2% -0.38¢ 16.44¢ -6.7% -1.18¢ 22 Albuquerque, NM 15.40¢ 15.18¢ 15.47¢ 15.65¢ 7.9% 1.14¢ 15.42¢ 10.5% 1.47¢ 23 Colorado Springs, CO 15.39¢ 15.47¢ 15.31¢ 15.47¢ 4.8% 0.71¢ 15.41¢ 7.4% 1.06¢ 24 Salt Lake City, UT 14.73¢ 15.19¢ 15.63¢ 15.44¢ 5.7% 0.84¢ 15.24¢ 12.4% 1.68¢ 25 Elko, NV 17.30¢ 16.68¢ 29.82¢ 15.28¢ 1.7% 0.26¢ 18.95¢ 28.2% 4.17¢ 26 Pueblo, CO 22.46¢ 23.08¢ 24.29¢ 15.15¢ -41.7% -10.86¢ 19.33¢ -18.0% -4.24¢ 27 Arcata/Eureka, CA 17.87¢ 16.06¢ 15.40¢ 15.07¢ -4.8% -0.77¢ 15.99¢ 5.1% 0.78¢ 28 Fresno, CA 13.83¢ 13.90¢ 14.22¢ 14.75¢ 12.4% 1.63¢ 14.19¢ 7.8% 1.03¢ 29 Guam 15.66¢ 15.09¢ 15.43¢ 14.68¢ 3.0% 0.42¢ 15.22¢ 6.7% 0.95¢ 30 Palm Springs, CA 14.11¢ 14.14¢ 13.01¢ 14.67¢ 10.5% 1.39¢ 14.09¢ 5.0% 0.67¢ 31 Santa Barbara, CA 14.18¢ 13.52¢ 14.26¢ 14.67¢ 4.8% 0.67¢ 14.16¢ 2.5% 0.34¢ 32 Monterey, CA 13.55¢ 14.32¢ 15.53¢ 14.64¢ 8.6% 1.16¢ 14.55¢ 5.4% 0.74¢ 33 Oakland, CA 14.16¢ 14.47¢ 14.14¢ 14.58¢ 11.8% 1.54¢ 14.34¢ 14.2% 1.78¢ 34 Bull. City/Laughlin, AZ 12.01¢ 12.85¢ 14.48¢ 14.55¢ 9.4% 1.25¢ 13.22¢ 12.9% 1.51¢ 35 Reno, NV 13.64¢ 13.85¢ 14.75¢ 14.41¢ 1.6% 0.23¢ 14.16¢ 3.6% 0.49¢ 36 Tucson, AZ 13.41¢ 13.92¢ 13.82¢ 14.29¢ 5.2% 0.71¢ 13.86¢ 6.2% 0.81¢ 37 Denver, CO 13.52¢ 13.70¢ 14.02¢ 14.06¢ 3.5% 0.48¢ 13.84¢ 5.5% 0.72¢ 38 Orange County, CA 13.39¢ 13.53¢ 13.89¢ 13.83¢ 9.1% 1.16¢ 13.67¢ 11.0% 1.36¢ 39 San Luis Obispo, CA 12.37¢ 12.70¢ 14.07¢ 13.65¢ -3.6% -0.51¢ 13.26¢ -6.4% -0.91¢ 40 San Jose, CA 13.45¢ 13.71¢ 13.75¢ 13.65¢ 6.8% 0.87¢ 13.65¢ 11.4% 1.40¢ 41 Phoenix, AZ 13.18¢ 13.16¢ 13.28¢ 13.58¢ 10.4% 1.28¢ 13.30¢ 11.7% 1.39¢ 42 Stockton, CA 13.42¢ 14.29¢ 11.18¢ 13.52¢ -2.2% -0.31¢ 12.73¢ -3.0% -0.40¢ 43 Ontario, CA 13.51¢ 13.43¢ 13.49¢ 13.50¢ 3.4% 0.44¢ 13.48¢ 5.6% 0.71¢ 44 Sacramento, CA 13.29¢ 13.27¢ 13.21¢ 13.42¢ 5.5% 0.70¢ 13.29¢ 7.0% 0.87¢ 45 Kona, HI 11.49¢ 11.32¢ 11.33¢ 12.66¢ 4.8% 0.57¢ 11.69¢ 7.1% 0.77¢ 46 Saint George, UT 13.50¢ 13.17¢ 18.65¢ 12.60¢ -0.7% -0.09¢ 13.97¢ 17.5% 2.08¢ 47 Redding, CA 15.43¢ 14.91¢ 16.85¢ 12.32¢ -32.2% -5.84¢ 14.82¢ -14.6% -2.54¢ 48 Kauai Island, HI 11.08¢ 11.14¢ 11.37¢ 12.28¢ 4.9% 0.57¢ 11.46¢ 5.5% 0.60¢ 49 San Diego, CA 11.87¢ 12.15¢ 12.24¢ 12.19¢ 7.4% 0.84¢ 12.12¢ 10.7% 1.17¢ 50 San Francisco, CA 11.27¢ 11.99¢ 12.13¢ 11.99¢ 8.1% 0.89¢ 11.88¢ 11.8% 1.25¢ 51 Las Vegas, NV 11.70¢ 12.15¢ 11.81¢ 11.87¢ 6.9% 0.77¢ 11.89¢ 12.0% 1.27¢ 52 Los Angeles, CA 11.52¢ 11.81¢ 12.00¢ 11.84¢ 5.5% 0.62¢ 11.81¢ 9.9% 1.06¢ 53 Long Beach, CA 9.24¢ 10.48¢ 11.08¢ 11.75¢ 19.2% 1.89¢ 10.66¢ 12.9% 1.22¢ 54 Chico, CA 9.67¢ 10.84¢ 14.29¢ 11.32¢ 17.3% 1.67¢ 11.39¢ 23.0% 2.13¢ 55 Kahului, HI 10.57¢ 10.13¢ 10.20¢ 11.00¢ 0.0% 0.00¢ 10.46¢ 0.9% 0.09¢ 56 Modesto, CA 10.41¢ 10.38¢ 15.39¢ 10.85¢ 8.7% 0.87¢ 11.57¢ 20.3% 1.95¢ 57 Honolulu, HI 9.88¢ 9.97¢ 10.24¢ 10.71¢ 5.6% 0.57¢ 10.20¢ 6.8% 0.65¢ 58 Fort Collins, CO 9.26¢ 8.82¢ 7.97¢ 9.88¢ 1.6% 0.16¢ 9.08¢ -2.4% -0.22¢ 59 Carlsbad, CA 10.24¢ 10.46¢ 12.97¢ 8.91¢ -3.5% -0.32¢ 10.41¢ 7.3% 0.71¢ 60 Mesa Gatew ay, AZ 8.68¢ 8.05¢ 6.98¢ 8.41¢ 10.4% 0.79¢ 8.04¢ 3.9% 0.30¢ 1 Q 10 2 Q 10 3 Q 10 4 Q 10 $12.38 $12.59 $12.72 $12.82 Average Regional Yield 12.38¢ 12.59¢ 12.72¢ 12.82¢ 6.6% 0.79¢ 12.63¢ 9.4% 1.08¢ YE/YE YE/YE 2010 Qtr/Qtr Qtr/Qtr

% ? Yld ? Rank 1 Q 10 2 Q 10 Dec-10 3 Q 10 4 Q 10 % ? Yld ? 

### FIGURE 18 : Top 60 Southwest Region Airports Ranked by Average Domestic Yield 4Q 2010; Source: US DOT Table OD1ADel Norte County Regional Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 50 CONCLUSIONS

The Del Norte County Regional Airport seeks a Small Community Air Service Development Grant in order to provide marketing and adv ertising support for SkyWest’s Essential Air Service to the
San Francisco hub. The Airport believes the increased enplanements from a marketing and
adverti sing program would reduce the burden on the Essential Air Service program to provide subsidies in the market. The long term goal under the program would be to increase enplanements to a level where the community’s Essential Air Service funding is no longe r needed. SkyWest is a partner in this project, as noted by their letter of support.

The challenges in the Crescent City market
are clear: a lack of available seats, higher fares than airports in nearby markets, service from just one branded airline, and a lack of knowledge about the local service offered. As an Essential Air Service market, the Del Norte County Regional Airpo rt is limited in recruiting additional airline seats to the market, or additional airlines. But the Airport can work to increase local enplanements and to reduce leakage, which ultimately should help bring fares down and
increase overall service levels.

SkyWest operated at its highest summer load factor in the Crescent City market in four years in
the summer of 2010

– averaging a load factor of 71%. Part of the reason for increased ridership in Crescent City was the decline of capacity in both Arcata

- Eur eka and Medford

– down by a combined 500 departing seats a day, or 31%, in the last two years. With capacity down in nearby markets, now is the time for the Del Norte County Regional Airport to recapture its catchment area passengers. This marketing prog ram is the key to that effort. 

## “With capacity down in nearby markets, now is the time for the... Airport to recapture its catchment area passengers.”