Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

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

NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: 

Pangborn Memorial Airport

DUNS Number:

832579945

EIN/Tax ID:

91-0908966

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

1._PANGBORN MEMORIAL AIRPORT, WENATCHEE, WASHINGTON_

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY 

PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE).

1. Pangborn Memorial Airport (EAT)
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A 

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. WA-04

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

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

Development Program Grant

If previous recipient: Year of grant(s): 

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

PUBLIC PRIVATE

1. Pangborn Memorial Airport 1. Wenatchee Valley Chamber

2. Port of Chelan County 2. Leavenworth Chamber

3. Port of Douglas County 3.

4. Chelan County Lodging Tax Comm. 4.

5. 5.

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

X
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $200,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $50,000

3 Total local cash funds (3a + 3b) $50,000

4 TOTAL CASH FUNDING (1+2+3) $250,000

In-Kind contribution

5a Airport In-Kind contribution** Various

5b Other In-Kind contribution** Various

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) Various

6 TOTAL PROJECT COST (4+5) $250,000

J. IN-KIND CONTRIBUTIONS**

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

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

Airport will waive landing fees for additional flights; local media companies will offer discounts on 

advertising; partner airlines will offer free tickets for giveaways, etc.
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013

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

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

Process for review on (date) _____________.

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

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

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

No Yes (explain) 

_____________________________________________________________________________________________

_______________________________________________________________
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 1

TABLE OF CONTENTS

Legal Sponsor 1

Introduction 2

The Wenatchee Air Service Market 3

Current and Historical Service 3

Airfare Challenges 7

Air Service Needs and Deficiencies 8

Regional Economic Growth 8

Load Factor Trends 9

Operational Reliability 10

Per Capita Capacity 11

Strategic Marketing Plan 13

Project Timeline 15

Public/Private Partnership 16

Conclusion 18

LEGAL SPONSOR

Pangborn Memorial Airport is the legal sponsor responsible for administering the proposed air 

service development program. The Airport is a government agency, operated under a joint 

powers agreement between the Port of Chelan County and the Port of Douglas County.

Pangborn Memorial Airport

One Pangborn Drive

East Wenatchee, Washington 98802

Trent Moyers, Airport Director

(509) 884-2494

trent.moyers@pangbornairport.com

Section Page Number
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 2

INTRODUCTION

Pangborn Regional Airport in Wenatchee, Washington, is the primary gateway for an isolated 

population of 220,000. Located on the east slopes of the Cascade Mountain Range in 

Washington State, Wenatchee is best known as “apple country,” drawing more than two million 

tourists each year. In ideal conditions, Wenatchee is two-and-a-half hours from Seattle by car, 

but drivers must cross the Cascades, and the weather is rarely cooperative. While Seattle is 

stuck in mist and rain, the Cascades see huge snowfall, often closing Interstate 90. Meanwhile in 

Wenatchee, a quickly diversifying economy – one of the fastest growing in the Pacific Northwest 

– is boosting air service demand.

Pangborn Airport has suffered, over the last four years, from average fares that have risen by 

14%. So far in 2013, published fares are trending 24% higher than 2012 average fares. Despite 

the increasing cost of air travel, 2012 was an excellent year 

for the Airport, with passengers at their highest point in the 

last decade.

Still, the Airport enters the summer of 2013 with less 

scheduled air service than it had last summer, as SeaPort

Airlines has discontinued its flights to Portland, through 

Yakima. This has resulted in the loss of an average of 24 daily departing seats, or 11% of the 

market’s total capacity. Service was well-supported in Wenatchee, despite the stop in Yakima, 

but the Yakima leg lagged expectations necessitating the cancellation of the route.

The Wenatchee market has long been a low load factor market. It is served by Alaska Airlines’ 

partner Horizon Air, with 76-seat Q400 aircraft flying the route to Seattle-Tacoma. The market 

only filled 62% of its available seats in 2012. It is imperative that this load factor improve in order 

to ensure Wenatchee retains its only air service link to the rest of the world.

This Grant application is part of that effort. The Airport has five regional partners that have 

committed cash to a project to market current service, with the goal of boosting load factors 

into the mid-70s, and of providing marketing, fee waiver, and start-up cost offset incentives to a 

carrier launching new service. To complement its current network connectivity, the Airport seeks 

less-than-daily low cost service. This application is the key to that effort.

“The market only filled 62% of 

its available seats in 2012. It is 

imperative that this load 

factor improve...”
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 3

THE WENATCHEE AIR SERVICE MARKET

Current and Historical Air Service

Pangborn Memorial Airport in Wenatchee, Washington, sits at the center of a large and diverse 

region, known nationally for its apples, but also known up and down the West Coast for a 

number of tourist destinations. Wenatchee sits at the eastern base of the Cascade Mountains, 

and acts as the gateway to an area that draws more than two million tourists each year. Visitors 

come to experience the outdoors, with mountain, lake, and river sports; to taste wines in one of 

the Pacific Northwest’s fastest growing viticulture regions; and to experience the unspoiled 

Bavarian village of Leavenworth.

The key access point 

is Pangborn Memorial 

Airport. The Airport’s 

primary catchment 

area, seen in Map 1 

in dark blue, covers 

all those who live 

within an hour’s drive. 

As of 2011 US Census 

estimates, 73,000 

people live in this 

area. The extended 

catchment area, 

seen in Map 1 in 

lighter blue, is home 

to 220,000 people. 

The extended 

catchment goes to 

the crest of the Cascades in the west, and part Moses Lake in the east. The entire catchment 

area is isolated from other air service. The drive to the nearest alternate airport, Seattle-Tacoma 

International, requires crossing the Cascades at Snoqualmie Pass on Interstate 90, a route that is 

often blocked by avalanches from October through May.

MAP 1: Pangborn Memorial Airport Catchment Area

Source: Sixel Consulting Group, 2011 US Census Estimates
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 4

As of summer of 2013, Pangborn Memorial Airport has service on just one carrier to one 

destination, with Alaska Airlines subsidiary, Horizon Air, flying to Seattle-Tacoma (see Map 2). Of 

note, last summer SeaPort Airlines 

operated one-stop service to Portland 

International Airport, through Yakima. 

This service ended in October of 2012, 

but was well-supported in the 

Wenatchee market, with Wenatchee 

passengers representing almost 62% of 

all passengers using the service.

With the loss of SeaPort service, total 

Wenatchee available airline seats will 

be down almost 11% in August of 2013 

as compared to August of 2012 (see 

Figure 1). Service on the Alaska 

Airlines brand, through Horizon Air, is basically flat year-over-year, but the loss of Portland service 

removed an average of 24 daily departing seats from the market, on an average of 2.4 daily 

departures. SeaPort 

operated three flights per 

day on peak days and two 

flights per day on off-peak 

days.

With two airlines serving the 

market throughout most of 

2012, Pangborn Airport saw its 

highest passenger numbers in the last decade, despite rising fares. A total of 98,970 passengers 

flew in and out of Pangborn in 2012, an average of 135.6 passengers per day each way (PDEW) 

(see Figure 2 on next page). Passengers were up 11%, or an average of 12.9 PDEW, from 2010 to 

2012. Notably, the previous passenger peak at Pangborn was in 2009, with an average of 133.4 

PDEW. 2012 eclipsed the 2009 mark by 2%, despite average fares that were 14% higher.

The Wenatchee market is fortunate to have Alaska Airlines, with its rational regional air service 

pricing model, as its sole carrier. Alaska’s choice to operate the low cost Q400 aircraft in the 

MAP 2: Current and Former Service at Pangborn Memorial Airport

Source: Sixel Consulting Group; OAG Schedule Data, July 2013

FIGURE 1: Scheduled Service at Pangborn Memorial Airport, 8/12 vs. 8/13

Source: Sixel Consulting Group; OAG Schedule Data, July 2013

Non-Stop Departures Seats Departures Seats Capacity

Carrier Destination Per Day Per Day Per Day Per Day Change

SeaPort YKM/PDX 2.4 24 0 0 -100.0%

SeaPort Total 2.4 24 0 0 -100.0%

Alaska/Horizon SEA 2.8 218 2.8 216 -0.9%

Alaska/Horizon Total 2.8 218 2.8 216 -0.9%

Wenatchee Total 5.2 242 2.8 216 -10.7%

Aug-12 Aug-13
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 5

market has allowed them to price the market in such a way as to stimulate passengers. Still, 

Alaska is not immune to rising fuel costs. 

In the last four years, the average one way fare in Wenatchee has risen from $158 to $180 – an 

increase of $22 each way or $44 roundtrip, before taxes and fees (see Figure 2). This trend is 

expected to continue as a July 2013 analysis of published fares in the market shows they are 

running 24% higher than the average fare during 2012.

Seattle-Tacoma, itself is, far and away, the largest origin and destination passenger market for 

Wenatchee passengers. In 2012, an average of 20.7 passengers per day each way (PDEW), or 

15,130 total passengers, purchased tickets between Pangborn Airport and Seattle-Tacoma (see 

Figure 3 on next page). Due to the nature of Wenatchee service, with just a single carrier on a 

single route, this number likely includes a significant portion of passengers who purchased the 

EAT-SEA coupon, and then separately purchased a coupon on another carrier out of SeattleTacoma that is not affiliated with Alaska Airlines. These passengers created their own 

connections at Seattle-Tacoma, by buying two separate tickets. The way data is collected by 

FIGURE 2: O&D Passengers and Average One Way Fares, 

Source: US DOT OD1A, Calendar Year 2004 – Calendar Year 2012
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 6

the Department of Transportation, the connection would not be noted unless it was purchased 

as one interlined ticket. It is impossible to pinpoint the number of passengers who created their 

own connections in this 

manner at Seattle-Tacoma, 

but it must be noted that a 

portion of these SeattleTacoma origin and 

destination trips were likely 

non-interline connections.

Illustrating the importance of 

migrant workers and their 

families to the Wenatchee 

agriculture economy, 

Guadalajara, Mexico, is the 

second largest origin and 

destination market at 

Pangborn, averaging 4.5 

passengers per day each 

way (PDEW) (see Figure 3). 

All but two of the top 25 

markets are in the western 

US or western Mexico. This is 

expected with the service 

pattern available at 

Pangborn Memorial Airport, with Alaska providing excellent connectivity throughout the West, 

but lacking strong connectivity to markets in the East. While Wenatchee benefits from Alaska’s 

regional pricing philosophy, the quality of Alaska Airlines service, and the easy connections up 

and down the West Coast, the market is hurt by the lack of eastbound connectivity, with many 

of its passengers forced to drive to other airports to access service to cities east of the Rockies.

As noted, in 2012, the average one way fare for Wenatchee passengers was $180 each way, 

not including ancillary fees or taxes (see Figure 4 on next page). This fare was up 14% in the last 

four years. The fare is brought down by the large number of origin and destination passengers to 

and from Seattle-Tacoma, where the local average fare was just $73 each way in 2012. The 

FIGURE 3: Top 25 O&D Passenger Markets at Pangborn Airport

Source: US DOT OD1A, Calendar Year 2012
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 7

Wenatchee – Seattle-Tacoma route is just 86 nautical miles. Despite the seemingly low local 

fare, it still provides an average yield to Alaska Airlines of 84.9 cents per mile – which is among 

the highest local yields in the Alaska 

network. When Seattle-Tacoma 

passengers are removed from the analysis, 

the average one way Wenatchee fare 

jumps to $192.

Also of note, fares at Pangborn Airport are 

rising at a rate faster than the national 

average. The lowest current published 

fares in the market are 24% higher than the 

2012 average fare. This is notable in a 

number of the Airport’s top O&D markets. 

For example, the lowest current published 

one way fare to San Diego, as of July 2013, 

is $189 (see Figure 5). The 2012 average 

fare in the market was 20% lower, at $158 

each way. The lowest published Portland 

one way fare is $1 higher than the average 

fare from 2012, while the lowest published 

Phoenix one way fare is $53 higher than the 

average from 2012. In the Wenatchee –

Las Vegas market, the lowest current published one way fare is 20% higher than the average 

from 2012.

Assuming these higher fares hold, as demand 

continues to increase in an improving Pacific 

Northwest economy, it is likely Wenatchee’s 

2013 average fare will fall near $220 – a $40 

increase each way over the 2012 average. It is 

clear higher fares will be the norm in the 

Wenatchee market, and their impact on total 

passengers has yet to be determined.

FIGURE 4: Average One Way Fares at Top 25 O&D Markets at EAT

Source: US DOT OD1A, Calendar Year 2012

FIGURE 5: Published Fares vs. 2012 Average Fares at EAT

Sources: ExpertFlyer, July 2013; US DOT OD1A, CY2012
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 8

AIR SERVICE NEEDS AND DEFICIENCIES IN WENATCHEE

Air service is a critical economic component in Wenatchee and its nearby communities. The 

region is isolated by geography, with the Cascade Mountains separating Wenatchee from the 

most populous areas of Washington State. Despite this geographic isolation, Wenatchee has 

one of the fastest growing economies in the Pacific Northwest.

In 2011, the Wenatchee gross 

metropolitan product (GMP) 

grew to its highest level ever, at 

$3.8 billion in annual economic 

activity, according to the US 

Council of Mayors (see Figure 

6). Since 2008, the Wenatchee 

economy has grown by 5.6%, 

ranking it the seventh fastest 

growing economy in the Pacific 

Northwest. Wenatchee is 

growing faster than many 

better-known metropolitan areas, such as Boise, Spokane, Billings, and Anchorage. The new 

businesses generating this economic growth include Microsoft, Yahoo!, Intuit, and T-Mobile. 

They all require air service to transport employees in and out of Wenatchee. Additionally, the 

growing tourist economy will more heavily lean on air service to bring visitors from out of state to 

the region.

Despite this economic growth, and increasing demand for air service, Pangborn Memorial 

Airport has the same service it had at the beginning of the previous decade – three daily nonstop flights on Alaska Airlines partner Horizon Air to Seattle-Tacoma. Pangborn averages roughly 

200 daily departing seats – a number that has been fairly steady for the last three years (see 

Figure 7 on next page). The one exception to this service pattern was from April of 2012 to 

October of 2012, when SeaPort Airlines operated service to Yakima and Portland.

With steady service, passengers have remained at a steady state, with minor growth, over the 

last three years. In fact, the average load factor, or percentage of airline seats filled, at 

Wenatchee has held in the mid-to-upper 60s since the beginning of 2010 (see Figure 7). The 

FIGURE 6: Gross Metropolitan Product of Pacific Northwest MSAs

Source: US Council of Mayors, March 2013

Metropolitan/Micropolitan Statistical Area State(s) 2008 2009 2010 2011 2011 vs. 2008

Kennewick-Richland-Pasco W A 9.2 9.7 10.4 10.7 16.3%

Bellingham W A 7.9 7.9 8.2 8.8 11.4%

Lewiston ID-WA 1.9 1.9 2.0 2.1 10.5%

Great Falls MT 2.9 2.9 3.1 3.2 10.3%

Medford OR 6.3 6.3 6.6 6.8 7.9%

Salem OR 12.6 12.8 13.3 13.3 5.6%

Wenatchee-East Wenatchee W A 3.6 3.6 3.6 3.8 5.6%

Boise City-Nampa ID 25.3 24.7 25.8 26.7 5.5%

Idaho Falls ID 3.9 3.8 4.0 4.1 5.1%

Spokane W A 17.7 17.8 18.1 18.6 5.1%

Missoula MT 4.5 4.6 4.6 4.7 4.4%

Billings MT 7.2 6.8 7.2 7.5 4.2%

Fairbanks AK 5.1 4.8 5.0 5.3 3.9%

Pocatello ID 2.7 2.6 2.7 2.8 3.7%

Olympia W A 8.7 8.8 8.8 9.0 3.4%

Bend OR 6.5 6.3 6.5 6.7 3.1%

Eugene-Springfield OR 12.0 11.5 12.0 12.2 1.7%

Anchorage AK 27.5 25.2 26.3 27.9 1.5%

Yakima W A 7.4 7.2 7.3 7.5 1.4%
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 9

market generates what appears to be sufficient demand to fill those empty airline seats, 

especially considering the relative isolation of most of its communities.

Of Pacific Northwest 

markets with 

scheduled air service 

(not including markets 

that only have 

floatplane service) 

Wenatchee ranks in 

the bottom four in load 

factor, with an 

average 2012 load 

factor of 61.8% (see 

Figure 8). The overall 

Northwest average for 

FIGURE 7: Passengers and Seats per Day Each Way, and Load Factor at Pangborn Memorial Airport

Source: US DOT T100; January 2010 – March 2013

FIGURE 8: Pacific Northwest Markets Ranked by Load Factor

Sources: US DOT T100, Calendar Year 2012

Code Airport Passengers Available Seats Load Factor

BLI Bellingham International 1,117,971 1,301,976 89.9%

SEA Seattle, WA: Seattle/Tacoma International 29,314,970 34,412,336 87.8%

PDX Portland International 13,962,611 16,884,728 86.6%

EUG Eugene Mahlon Sw eet Field 799,110 990,999 85.7%

MFR Medford Jackson County 624,909 760,054 84.9%

PSC Tri-Cities 656,683 836,984 82.7%

BOI Boise Air Terminal 2,661,831 3,324,643 81.9%

GEG Spokane International 2,925,770 3,728,067 81.2%

RDM Bend/Redmond Roberts Field 458,508 606,282 80.4%

LWS Lewiston Nez Perce County 143,662 221,718 76.1%

IDA Idaho Falls Fanning Field 319,607 436,391 75.4%

TWF Twin Falls 53,381 73,064 73.5%

SUN Sun Valley Friedman Memorial 93,455 139,192 68.0%

LMT Klamath Falls Kingsley Field 31,596 47,716 66.5%

ALW Walla Walla 63,362 96,216 65.9%

YKM Yakima Air Terminal 112,357 179,089 64.8%

PUW Pullman Moscow Regional 105,319 185,972 64.3%

PIH Pocatello Municipal 42,716 67,550 63.1%

EAT Wenatchee Pangborn Field 100,458 163,578 61.8%

OTH North Bend/Coos Bay Municipal 36,477 61,357 61.6%

CLM Port Angeles Fairchild 10,648 18,357 57.5%

PDT Pendleton Municipal 9,611 20,124 47.8%

Regional Totals 53,749,587 64,876,987 87.0%
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 10

2012 was an 87% load factor. Wenatchee’s load factor was 25.2 points below the regional 

average, lagging the region’s average by 29%. The region’s average is pushed up by 

exceptionally high load factors at its two largest airports – Seattle-Tacoma International and 

Portland International – both of which saw a large number of connecting passengers on flights.

Nonetheless, it is clear the Wenatchee load factor must improve in coming years for carriers to 

continue to see the value of serving the market. It will be critical during the remaining months of 

2013, and in 2014, for the Airport to do all it can to get passengers into the seats that are flying 

empty. To be assured of retaining air service, it is likely the Wenatchee load factor will need to 

average in the mid-70s by 2015.

One extenuating circumstance impacting the load factor at Pangborn Memorial Airport is the 

operational 

reliability of current 

air service. Of 

regional Pacific 

Northwest airports, 

Pangborn saw the 

second highest 

percentage of 

cancelled flights at 

4.6% of all 

scheduled flights in 

2012 (see Figure 9). 

The Northwest regional average for 2012 was 1.5% of scheduled flights cancelled – a full three 

points below the Wenatchee cancellation percentage. 

Four of the top five airports in cancellation percentage for 2012 were served primarily by Alaska 

Airlines through its Horizon Air subsidiary (see Figure 9), with the exception being Klamath Falls. 

Horizon experienced a number of maintenance problems with its Q400 fleet during 2012, which 

led to an unusually high number of cancelled flights. Additionally, Wenatchee had an unusually 

high number of days with low visibility that impacted the ability of morning flights to land.

In markets like Wenatchee, reliability of service is key. With low frequency, when a flight is 

cancelled, the next flight doesn’t leave for a number of hours. In high frequency markets, the 

FIGURE 9: Pacific Northwest Markets Ranked by Cancellation Rate

Sources: US DOT T100, Calendar Year 2012

Code Airport Name Scheduled Flights Actual Flights Load Factor Cancelled % Cancelled

YKM Yakima Air Terminal 3,864 3,674 64.8% 190 4.9%

EAT Wenatchee Pangborn Field 3,139 2,994 61.8% 145 4.6%

SUN Sun Valley Friedman Memorial 3,780 3,617 68.0% 163 4.3%

LMT Klamath Falls Kingsley Field 1,655 1,586 66.5% 69 4.2%

PUW Pullman Moscow Regional 2,546 2,447 64.3% 99 3.9%

OTH North Bend/Coos Bay Municipal 3,403 3,281 61.6% 122 3.6%

ALW Walla Walla 1,310 1,266 65.9% 44 3.4%

MFR Medford Jackson County 12,787 12,466 84.9% 321 2.5%

PDT Pendleton Municipal 2,273 2,227 47.8% 46 2.0%

EUG Eugene Mahlon Sweet Field 15,677 15,397 85.7% 280 1.8%

RDM Bend/Redmond Roberts Field 10,763 10,621 80.4% 142 1.3%

PSC Tri-Cities 11,945 11,795 82.7% 150 1.3%

PIH Pocatello Municipal 1,984 1,963 63.1% 21 1.1%

GEG Spokane International 35,592 35,238 81.2% 354 1.0%

LWS Lewiston Nez Perce County 3,378 3,348 76.1% 30 0.9%

IDA Idaho Falls Fanning Field 6,940 6,888 75.4% 52 0.7%

BOI Boise Air Terminal 35,131 34,941 81.9% 190 0.5%

TWF Twin Falls 2,401 2,393 73.5% 8 0.3%

Regional Totals 158,568 156,142 77.4% 2,426 1.5%
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 11

ability to hop on a flight soon after the cancellation minimizes the impact of the cancellation. 

This is not the case at Pangborn Airport, where a cancellation can ruin the trip of a Wenatchee 

traveler. Once passengers have been affected by a cancellation, they think twice about 

booking their next trip from their local 

airport, and they consider driving over 

the mountain pass to Seattle-Tacoma to 

directly access service.

Despite the lower than average load 

factors at Pangborn Airport, data shows 

the Wenatchee market is still 

underserved when compared to its 

peers. In fact, Wenatchee ranks in the 

top ten of the most underserved markets 

in the Pacific Northwest with scheduled 

airline service. In 2012, Wenatchee had 

an average of just 1.45 available airline 

seats per capita (see Figure 10). 

Wenatchee had just 21% of the average 

number of available airline seats per capita in the Pacific Northwest, which averaged 7.02 in 

2012. Only much smaller catchment areas had fewer available airline seats in 2012.

At the same time, Pangborn Airport 

lags the rest of the Pacific Northwest 

in the number of airline passengers it 

generates per capita. In 2012, the 

average Northwest market 

generated 5.81 passengers per 

capita (see Figure 11). Due to the 

lack of available airline seats and 

the lack of reliability with service that 

was provided, Wenatchee 

generated just 0.89 passengers per 

capita in 2012. The Wenatchee 

market was able to generate just 

FIGURE 10: Seats per Capita in Pacific Northwest Markets

Sources: US DOT T100, 2011 US Census; Calendar Year 2012

FIGURE 11: Passengers per Capita in Pacific Northwest Markets

Sources: US DOT T100, 2011 US Census; Calendar Year 2012
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 12

15% the number of passengers per capita as the average Northwest market. Smaller markets 

than Wenatchee, such as Klamath Falls, Walla Walla, Lewiston, and Pullman-Moscow all were 

able to generate more passengers per capita.

A further air service deficiency in Wenatchee is the availability of service to only one hub on one 

airline – with Alaska Airline providing the market’s only scheduled service to Seattle-Tacoma. This 

results in the necessity for an unusually 

high number of passengers to have to 

take connecting flights to get to their 

destinations. The average passenger 

flying to and from Pangborn Memorial 

Airport in 2012 used 1.9 airline “coupons” 

each way on their journey (see Figure 

12). One coupon is issued for each flight 

segment. Thus, the average passenger 

had one connection each way on their 

journey. Only those traveling to and 

from Seattle-Tacoma, itself, would have 

had a single flight coupon.

The average Pacific Northwest traveler, 

in 2012, used 1.4 coupons to get to their 

destination (see Figure 12). Wenatchee 

passengers were 36% more likely to fly on connecting flights than the average traveler in the 

region. While connecting flights are a fact of life with regional air service, a number of Pacific 

Northwest regional markets have service on multiple carriers to multiple hubs, allowing for more 

of their passengers to travel non-stop.

The key to the continuation of local air service in Wenatchee will be to convince more people to 

use Pangborn Memorial Airport, and to recruit additional service to the Airport to make it a 

better alternative to the freeway. The plan contained in this funding request will address the 

need to boost load factors through airport marketing, and the need to recruit additional service 

through offering financial incentives to prospective carriers that can offer new service that 

doesn’t directly compete with current scheduled air service.

FIGURE 12: Average Coupons in Pacific Northwest Markets

Sources: US DOT OD1A; Calendar Year 2012
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 13

PANGBORN MEMORIAL AIRPORT STRATEGIC AIR SERVICE PLAN

Pangborn Memorial Airport has a dual approach to its strategic air service plan. First, the Airport 

seeks funding to better market and advertise its current service, with the overarching goal of 

increasing load factors on current flights to ensure their long term success. Second, the Airport 

seeks to offer an incentive program, including fee waivers, start-up cost offsets, and direct 

marketing and advertising cash, for new service to any destination outside the Pacific 

Northwest. The Airport is seeking a partnership with the Department of Transportation, through 

the Small Community Air Service Development Grant Program (SCASDGP) to achieve these air 

service goals.

The Airport has cultivated a coalition of regional support as the first step in achieving its strategic 

goals. The Wenatchee Valley Chamber of Commerce, the Leavenworth Chamber of 

Commerce, and the Chelan 

County Lodging Tax Advisory 

Committee have all committed 

hard dollars to the project. 

Additionally, the Ports of Chelan 

County and Douglas County have 

committed cash in the form of 

dollars for Pangborn Memorial 

Airport, which they jointly operate.

The total project cost of

Pangborn’s Grant-supported

strategic air service development plan is $250,000. Of the total project cost, $50,000 has already 

been committed by local partners in air service development. The three main local partners, 

the Wenatchee Valley Chamber of Commerce, the Leavenworth Chamber of Commerce, and 

the Chelan County Lodging Tax Advisory Committee have each committed $2,500 to the 

project. The Airport’s two governing organizations have, together, committed $42,500, for a 

total local share of funding of $50,000. The remaining $200,000 for the program is earmarked 

from the federal Small Community Air Service Development Program. 

From the total project cost of $250,000, at least $100,000 will be earmarked for advertising and 

marketing of current air service. This marketing program will be a two-pronged approach to 

FIGURE 13: Example of Out-of-Market Advertising Content

Source: Wenatchee Valley Chamber of Commerce, July 2013
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 14

increase load factors on current Alaska Airlines-coded flights. The first emphasis, in partnership 

with the Wenatchee Valley Chamber of Commerce, the Leavenworth Chamber of Commerce, 

and the Chelan County Lodging Tax Advisory Committee, will be to promote the service to 

inbound tourists traveling within the Alaska Airlines network. At least a portion of this program will 

use the current creative content, including the slogan, “what will you pick today?” (see Figure 

13 on previous page). This slogan 

references the apple-picking heritage 

of the region, while promoting the fact 

that there are so many activities from 

which to choose in the region.

The second emphasis of advertising will 

be within the Wenatchee market, as the 

Airport will work with Alaska Airlines to 

promote the local service as a lifeline for 

both business and leisure travel for those 

based in the area. This campaign will 

seek to convert remaining drive 

diversion to local airline passengers, 

again with the goal of boosting load 

factor percentages from the low-60s to the mid-70s by 2015. Initially, it is anticipated that the 

local campaign will leverage Alaska Airlines’ own “Explore More, Spend Less” campaign, which 

is currently being used in markets throughout the Pacific Northwest (see Figure 14).

The remaining $150,000 of the total project budget is slated to be used to advertise new service 

at Pangborn Airport, to a destination outside the Pacific Northwest states of Washington, 

Oregon, and Idaho, so as not to compete directly with Alaska Airlines service. The current 

Alaska-coded service is of tremendous value to the community, so the Airport will work to ensure 

any new service does not directly compete with Alaska within its Pacific Northwest network.

This funding is directed primarily at the recruitment of less-than-daily, low cost, leisure-oriented 

service. The central portion of Washington State is without any kind of low cost service at any of 

its regional airports, which include Yakima and Moses Lake in addition to Wenatchee. Pangborn 

Memorial Airport could serve as a low cost gateway to a large area of central Washington State 

for a less-than-daily carrier.

FIGURE 14: Example of In-Market Advertising Content

Source: Alaska Airlines, July 2013
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 15

The Wenatchee air service market is likely being suppressed by rising fares – fares that have 

been documented to be trending at current levels 24% above last year’s averages. Low cost 

service, even on specific tourism-based routes to cities such as Las Vegas, Phoenix, and Los 

Angeles, will help to bring overall fares in the market back down to historical levels. Service will 

also help to boost enplanements and revenue at the Airport, allowing it to invest the money in 

capital projects to ensure its long-term viability.

In order to land new less-than-daily service, the Airport will offer a full-scale marketing campaign 

funded by this project. Additionally, out of its own funds, the Airport will offer full-scale fee 

waivers for landing fees and terminal rent for a period not to exceed two years. The Airport will 

also, out of its own funds, offer start-up cost offsets for the new carrier. The funding from the 

Grant-supported project, of $150,000, will be competitive with incentives used by other Pacific 

Northwest markets in bringing less-than-daily, low cost service to their airports. 

The anticipated timeline for the project assumes a Grant would be awarded in September of 

2013 (see Figure 15). If the Grant agreement with the DOT is finalized in October of 2013, the 

current air service campaign will begin both in- and out-of-market by January of 2014. At the 

same time, during the fall of 

2013 and into the spring of 

2014, the Airport will work to 

recruit less-than-daily, low cost 

air service through the 

incentives offered under this 

program. As soon as that 

service is launched, the 

remainder of the campaign will 

launch, in support of that new 

service. The Airport anticipates 

closing the Grant by January of 2016, if not before.

This $250,000 project is critical to the continuing viability of Pangborn Memorial Airport, and 

subsequently, the economy of central Washington State. This amount of funding is out of the 

reach of the local community, which is why the Small Community Air Service Development 

Program is critical to this project’s success.

FIGURE 15: Project Timeline

Source: Pangborn Memorial Airport, July 2013

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement Sepetmber 2013

Executive Grant Agreement with DOT October 2013

Executive Agreement with Marketing Firm October 2013

Develop Creative Fall/Winter 2013

Develop Comprehensive Placement Strategy Fall/Winter 2013

Launch Campaign January 2014

Sustain Campaign January 2014 - December 2015

Monitor Service Performance January 2014 - December 2015

Work to Recruit Additional Service Fall 2013 - Spring 2014

Submit Grant Status Reports to DOT Quarterly Q4 2013 - Q4 2015

Close Grant January 2016
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 16

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is 

supported by a host of community partners which have pledged hard matching cash. These 

partners include local chambers of commerce, a lodging tax committee, and the two county 

ports which operate Pangborn Memorial Airport through a joint powers governance agreement.

Wenatchee Valley Chamber of Commerce

The mission of the Wenatchee Valley Chamber of Commerce is to strengthen the economic 

climate of the Wenatchee Valley, which includes a number of individual cities and towns. The 

Chamber represents hundreds of businesses with diverse interests – but nearly all of its members 

rely upon air service to some degree. The Chamber has pledged $2,500 in cash as part of this 

proposal.

Leavenworth Chamber of Commerce

The Leavenworth Chamber of Commerce is better known by its commercial name, “Visit 

Leavenworth.” Leavenworth is an untouched Bavarian community in the Cascades. It draws 

almost one million visitors per year. The business members of the Leavenworth Chamber of 

Commerce seek to grow inbound tourism. Pangborn Memorial Airport is the closest airport to 

Leavenworth, and is a key component in bringing tourists to the region. The Chamber has 

pledged $2,500 in cash as part of this proposal.

Chelan County Lodging Tax Advisory Committee

The Chelan County Lodging Tax Advisory Committee is responsible for determining where 

lodging tax proceeds collected within the County are allocated. The lodging tax is designed to 

create a funding source to grow inbound tourism and business travel. As part of its mission, the 

Committee seeks ways to allocate lodging tax money into projects that will grow travel. This 

project fits perfectly with the Committee’s mission, and it has pledged $2,500 in cash as part of 

this proposal.
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 17

Port of Chelan County and Port of Douglas County

In Washington State, port divisions within counties typically act as the economic development 

arms of those counties, in lieu of economic development corporations. The Ports of Chelan and 

Douglas Counties operate as independent government agencies, separate from their Counties’ 

general governance structure.

Due to the unique location of Pangborn Memorial Airport, sitting in Douglas County, but along 

the border with Chelan County, the Ports of Chelan and Douglas County have an 

intergovernmental agreement to share in the responsibility of the operation of the Airport. Both 

Ports realize how vital the Airport, and its commercial air service, is to the economic health of the 

region – and to their general missions. Both Ports are designed to invest in projects that create 

new jobs and diversify the economy.

This SCASD Grant application is supported by both Ports, which have agreed to share in a 

$42,500 local match, bringing the total local matching funds to $50,000.
Proposal of Pangborn Memorial Airport • Wenatchee, Washington • July 2013 18

CONCLUSION

Wenatchee is one of the more underserved air service markets in the Pacific Northwest. The sole 

carrier serving Pangborn Memorial Airport, Alaska Airlines, through subsidiary Horizon Air, offers 

an average of just 1.45 annual seats per capita. Wenatchee has just 21% of the average airline 

capacity per capita of other Northwest markets. This number has been exacerbated by the loss 

of 11% of the market’s capacity with the exit of SeaPort Airlines.

At the same time, the Wenatchee market only fills 62% of its available seats. Wenatchee’s load 

factors have long been lower than average. Part of the problem is the reliability of service. In 

2012, almost 5% of Wenatchee’s flights were cancelled. The other part of the problem is the lack 

of regional awareness of the existence of local air service. It will be imperative that more airline 

seats get filled in order to ensure the long-term stability of service in the region. The key to filling 

these seats will be the growth of both locally-generated 

passengers and the increase in inbound tourism from outside 

the immediate Pacific Northwest.

The marketing and airline recruitment project detailed in this 

application seeks to address the major impediments to 

successful air service in Wenatchee. The incumbent airline 

marketing program will help to immediately boost load factors by promoting Alaska Airlines’ 

current service within the market, and to new inbound tourists from outside the market. The new 

airline incentive program will help bring less-than-daily low cost airline service to a region that 

has been overlooked by leisure carriers. It will also help reduce fares that have been on the rise 

for the last four years.

The Airport has worked hard to develop a broad coalition of support for the project. Five 

separate entities, from throughout the region, have committed cash to match the funds 

requested from the Department of Transportation. This coalition collectivity represents more 

than a thousand businesses in the broad Pangborn Airport catchment area, and helps to ensure 

the Airport’s message is widely distributed.

Pangborn Memorial Airport has never before been a recipient of funding under the Small 

Community Air Service Development Program. The Airport believes its first Grant award will be 

the key to the sustainability of local air service.

“Pangborn Memorial 

Airport has never before 

been a recipient of 

funding...”