Application Under the Small Community 

Air Service Development Program

Docket DOT-OST-2012-0069

Walla Walla Regional Airport

Walla Walla, WA

Legal sponsor: Port of Walla Walla

DUNS: 04-018-7924

Tax ID: 910817738

Congressional District Code: WA-05

Contact: Jennifer Skoglund

Airport Manager

Walla Walla Regional Airport

310 A Street

Walla Walla, WA 99362-2269

Phone: 509/525-3100

Email: js@portwallawalla.com


TABLE OF CONTENTS

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

WALLA WALLA REGIONAL AIRPORT

Prepared by

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

Air Service Issue....................................................1

Strategic Plan .......................................................1

Community Cost Contribution..............................1

Public-Private Partnership......................................1

Material Benefits..................................................1

Use of Funds in a Timely Fashion ..........................1

Air Service Environment........................ 2

Remote Airport Catchment Area ..........................2

Business Community ............................................3

Educational Institutions ........................................3

Tourism................................................................4

Air Service – Existing/Historical............. 5

Existing Air Service ...............................................5

Historical Air Service .............................................5

Destinations, Service Providers and 

Traffic Levels.................................................5

Extenuating Factors that have Affected 

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

Past Air Service Development Efforts.....................6

Air Service Needs and Deficiencies....... 7

Declining Air Service.............................................7

Market Profitability a Concern ..............................8

Survey Results: Passenger Potential.......................8

Strategic Plan........................................ 10

Project Goals......................................................10

Public-Private Partnership....................................10

Proposed Plan ....................................................10

Marketing Objectives...................................11

Marketing Message.....................................11

Target Audience..........................................12

Marketing Plan............................................12

Marketing Budget.......................................13

Strategic Plan Funding........................................13

Project Continuation and Sustainability...............14

Previous Grant Recipient - New Project and 

Goals .................................................................14

Schedule and Monitoring .................... 15

Critical Milestones..............................................15

Monitoring Program...........................................15

Appendix A Letters of Support .......... 16
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 1

WALLA WALLA REGIONAL AIRPORT

SECTION 1

APPLICATION HIGHLIGHTS

This Small Community Air Service Development 

Program (SCASDP) grant application for Walla Walla

Regional Airport (ALW) meets the criteria of Docket 

DOT-OST-2012-0069. The Port of Walla Walla is 

requesting $250,000 in federal assistance to implement 

a $309,000 air service initiative.

AIR SERVICE ISSUE

Because of its relatively isolated location in the far 

southeast corner of the state of Washington, air service

is extremely important to the Walla Walla Valley. Alaska 

Airlines is the sole service provider with nonstop service 

to Seattle. Since the peak in 2006, departures have 

declined by 49 percent. While available seats in the 

market did not decrease due to Alaska’s replacement of 

the 37-seat turboprop with the 76-seat turboprop 

aircraft, Alaska’s decision to remove two departures per 

week during the summer has led to a decrease in seats 

in 2012 in a market that is already at minimum levels of 

air service.

In April 2012, members of the public-private 

partnership met with Alaska Airlines representatives to

discuss ALW’s market performance. Alaska Airlines 

indicated that poor load factor performance and 

increasing costs have led to the Walla Walla market 

being unprofitable.

STRATEGIC PLAN

Immediate action is needed to increase load factors and 

bring Alaska Airlines back to profitability in the Walla 

Walla market. Without immediate action the Walla 

Walla Valley is in danger of losing its only access 

to the national air transportation system.

The Strategic Plan to increase Alaska Airlines’ load 

factors is to implement a comprehensive, two-year 

marketing campaign to increase awareness of the 

convenience and availability of service at ALW.

Alaska Airlines supports the Strategic Plan 

outlined herein and has provided a letter of 

support for the Port of Walla Walla’s application 

(Appendix A).

COMMUNITY COST CONTRIBUTION

To support this air service initiative, non-airport revenue 

sources will fund 17 percent of the proposed $309,000

Strategic Plan. This is a strong commitment by the Walla 

Walla Valley to support Alaska Airlines.

PUBLIC-PRIVATE PARTNERSHIP

The Port of Walla Walla has partnered with the Walla 

Walla Valley Wine Alliance, Walla Walla Valley Chamber 

of Commerce and Tourism Walla Walla for purposes of 

air service retention and development. This is not a new 

partnership. This public-private partnership has worked 

together successfully for many years.

MATERIAL BENEFITS

Air service in the Walla Walla Valley benefits a remote

population of over 73,000. The Walla Walla Valley

includes a vibrant business element, higher educational 

institutions, and a thriving agricultural community as 

well as a rapidly growing tourism market.

USE OF FUNDS IN A TIMELY FASHION

The public-private partnership and the local business 

community fully support this plan and have the ability 

to implement this project as proposed. The publicprivate partnership has a solid schedule and strategic 

plan to ensure timely use of the funds. The partnership 

is ready to kick-off the Strategic Plan as soon as grant 

funds are awarded.

This section addresses: 

• Project goals

• Description of the Strategic Plan

• Highlights of the grant application
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 2

WALLA WALLA REGIONAL AIRPORT

SECTION 2

AIR SERVICE ENVIRONMENT

The Walla Walla Valley is a remote region with few air 

service options. Air service is critical to this community.

This section shows the broad segment of the traveling 

public, including businesses, educational institutions 

and other enterprises that benefit from local air service.

REMOTE AIRPORT CATCHMENT AREA

Air service improvements in the Walla Walla Valley will 

have far reaching benefits to a population that is 

secluded from major population centers. The air service 

improvements at ALW would benefit a population in 

the airport catchment area exceeding 73,000. ALW’s 

catchment area (identified in blue in Exhibit 2.1)

includes Walla Walla County, western Columbia 

County, and a portion of Oregon’s Umatilla County. In 

addition to the primary catchment area, air service 

improvements at ALW would benefit air travelers in the 

surrounding communities. Within a 50-mile radius the 

population increases to over 280,000. 

While the Walla Walla Valley is located near several

airports including Pasco and Pullman in Washington,

Lewiston in Idaho, and Pendleton in Oregon, all of the 

airports are non-hub or smaller offering limited air 

service options. An estimated 30 percent of air travelers 

in the Walla Walla Valley are driving to Pasco’s Tri-Cities 

Airport to access air service. Although approximately 50 

miles to the northwest of Walla Walla, the 60-minute 

drive is an impediment to economic development in the 

Walla Walla Valley. 

This section addresses: 

Description of the Walla Walla Valley in relation to 

air service to demonstrate the benefit of the 

Strategic Plan to a broad segment of the 

traveling public.

EXHIBIT 2.1 AIRPORT CATCHMENT AREA
SECTION 2

AIR SERVICE ENVIRONMENT

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 3

WALLA WALLA REGIONAL AIRPORT

The closest small-hub airport is Spokane, a 180-mile or 

almost three-hour drive north. Portland is the closest 

medium hub airport at almost 250 miles west, and 

Seattle is the closest large hub airport at almost 300 

miles northwest. Drive time to Seattle/Tacoma 

International Airport can exceed five hours. This option 

is unacceptable to Walla Walla Valley business travelers 

and negatively influences the local economy. The 

significant drive distances make air service at the local 

airport highly valued.

BUSINESS COMMUNITY

The region served by ALW has a multifaceted economy 

with several key industries driving the need for air 

service. The Walla Walla Valley is the hub for medical, 

professional, and business services for southeastern 

Washington and northeastern Oregon. 

Numerous companies utilize Walla Walla Valley's 

resources to compete on a global scale. Industry leaders 

include Nelson Irrigation, a manufacturer of agricultural 

and turf irrigation equipment, and Martin Archery, a 

maker of leading archery equipment. Key Technology, 

producer of automated food-processing equipment, is a 

publically traded business with a large international 

presence. Divisions of IBP, a meat-packing company, 

and Boise Paper Solutions also utilize the area for 

manufacturing operations.

Agriculture is big business for the Walla Walla Valley. 

Today, Walla Walla County has about 750 farms of 

which over 200 exceed 1,000 acres in size. Grape 

vineyards and wineries comprise an important and 

growing industry in the Valley. There are more than 100 

wineries and multiple vineyards in the area. According 

to a recent study in April 2012 conducted by the 

Stonebridge Research Group for the Washington State 

Wine Commission, the total economic impact of the 

wine industry in Walla Walla County is estimated to be 

over $500 million annually. Local wineries and vineyards 

formed the Walla Walla Valley Wine Alliance, one of the 

private partners in the public-private partnership. The 

Alliance builds brand equity as the leading resource for 

consumers, media, and trade for knowledge of, and 

access to the vineyards and wineries of the Walla 

Walla Valley.

The Walla Walla Valley is also home to 10 financial 

institutions, including Washington State’s first 

commercial bank and its oldest savings and 

loan association.

EDUCATIONAL INSTITUTIONS

Three higher education institutions are located in the 

Walla Walla Valley: Walla Walla Community College, 

Whitman College and Walla Walla University. Walla 

Walla Community College has rapidly grown to more 

than 13,000 students annually. This public, fullyaccredited two-year college provides a comprehensive 

educational program for students of all ages.

Whitman College is an independent, co-educational, 

non-sectarian residential liberal arts and sciences 

undergraduate college. Whitman has been cited as one 

of the nation’s top liberal arts and sciences colleges by 

numerous national publications. Whitman College’s 

student body, approximately 1,475 students, represent

45 states and 30 countries.

In nearby College Place, Walla Walla University is a fully 

accredited private university affiliated with the SeventhDay Adventist Church offering over 100 areas of study 

in liberal arts, professional, and technical programs.

More than 1,800 students of diverse backgrounds 

attend the school. 
SECTION 2

AIR SERVICE ENVIRONMENT

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 4

WALLA WALLA REGIONAL AIRPORT

TOURISM

Inbound ALW flights have been bolstered in recent 

years by significant increases in tourist visits. A clear 

indication of this positive tourism trend is the 12 

percent increase in hotel occupancy in 2011 over the 

preceding year. While multiple factors have contributed 

to this trend, widespread media coverage of the many 

virtues of the Walla Walla wine industry and the various 

activities offered in the Walla Walla Valley have been 

key drivers. 

Recent noteworthy coverage of Walla Walla has 

included being selected as the “Friendliest Small Town 

in America” by Rand McNally and USA Today in the 

summer of 2011 and being chosen as the “Best Small 

Town for Food” by Dailymeal.com in the first quarter of 

2012. In March 2012, Walla Walla was featured in the 

Seattle Times NW Traveler section (March 4, 2012), and 

a just released article titled “The next Big Wine 

Country” in Sunset Magazine (May 2012) labeled Walla 

Walla as the “cultural vortex of Eastern Washington.” 

These articles were picked up in regional publications 

across the US from Montana to New Mexico to Illinois 

resulting in increased interest by travelers from distant 

destinations.

These articles were picked up in regional publications 

across the US from Montana to New Mexico to Illinois 

resulting in increased interest by travelers from 

distant destinations.

Walla Walla wines have also continued to receive 

phenomenal acclaim as the shining star of the 

Washington wine industry. While Walla Walla wineries 

represent less than 17 percent of Washington’s total 

operating wineries, they garnered 51 of the top 100 

wines in Washington State in a recent article by wine 

critic Sean Sullivan.

Walla Walla tourism is expected to continue to grow at 

a rapid pace, with a new links golf course, Wine Valley 

Golf Club, which has been recognized as the number 

two course in Washington State; a new widely 

recognized performing arts theatre (Power House 

Theatre); and, the emergence of several new first 

class restaurants.

WALLA WALLA VALLEY

ACCOLADES:

• 2011 Friendliest Small Town in 

America, Rand McNally and 

USA Today

• 2012 Best Small Town for Food, 

Dailymeal.com

• 2012 (March 4) Featured in the NW 

Traveler section, Seattle Times

• 2012 (May) article titled “The next 

Big Wine Country” labeled Walla 

Walla as the “cultural vortex of 

Eastern Washington”, 

Sunset Magazine

• 2012 51 Walla Walla Valley wines

listed as the top 100 wines in 

Washington State, Sean Sullivan
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 5

WALLA WALLA REGIONAL AIRPORT

SECTION 3

AIR SERVICE –

EXISTING/HISTORICAL

This section provides an overview of existing air service.

Carriers providing service, service frequency, nonstop 

destinations offered, and equipment types are included 

in the discussion. A summary of historical air service is 

also included with destinations, traffic levels, service 

providers, and an overview of extenuating factors that 

have affected air service. A description of air service 

development efforts concludes the section.

EXISTING AIR SERVICE

ALW is served by Alaska Airlines (operated by Horizon 

Air) with nonstop service to Seattle-Tacoma 

International Airport. Alaska uses the 76-seat 

Bombardier Q400 aircraft to provide service. ALW had 

11 weekly departures and 836 available seats in June 

2012 (Table 3.1).

TABLE 3.1 EXISTING AIR SERVICE

NONSTOP 

DESTINATION

MARKETING 

CARRIER AIRCRAFT

WEEKLY 

DEPARTURESWEEKLY 

SEATS

Seattle, WA 

(SEA)

Alaska 

Airlines

Bombardier 

Q400 11 836

Total 11 836

Source: Diio Mi, June 2012

From January through May 2012, the Airport had an 

average of 13 to 14 weekly departures; however, 

Alaska alerted the Airport that due to poor 

profitability, two flights per week would be 

dropped during the summer. In September, Alaska 

plans on reinstating the two flights per week and 

returning to a total of 13 weekly departures.

HISTORICAL AIR SERVICE

Over the past 10 years, Alaska/Horizon and Big Sky 

Airlines have served ALW. By far, the most important 

service for the community has been the service to 

Seattle/Tacoma International Airport. This subsection 

summarizes ALW’s air service history including: 

destinations, traffic levels, and service providers. 

Extenuating factors that have affected air service over 

time are also reviewed.

Destinations, Service Providers and 

Traffic Levels

Exhibit 3.1 provides a summary of annual departures, 

seats and onboard passengers from 2003 

through 2011.

EXHIBIT 3.1 DEPARTURES, SEATS AND PASSENGERS

Source: Diio Mi

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

0

200

400

600

800

1,000

1,200

1,400

1,600

200320042005200620072008200920102011

Onboard passengers/eats

Departures

Calendar year

Departures Onboards

Seats

This section addresses: 

• Description of existing air service

• Synopsis of historical air service

• Description of air service development efforts
SECTION 3

AIR SERVICE – EXISTING/HISTORICAL

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 6

WALLA WALLA REGIONAL AIRPORT

Since 2003, onboard passengers have been on the rise 

with the exception of the peak in 2009 when available 

seats spiked. Overall onboard passengers have 

increased 23 percent since 2003. 

As shown in Table 3.2, departures peaked in 2006 and 

have since declined by 47 percent. The decline in 

departures was in large part due to the replacement of 

the 37-seat Bombardier Q200 with the 76-seat 

Bombardier Q400 in October 2008. Shortly after Alaska 

began service with the larger aircraft, departures were 

decreased from three to two daily departures to Seattle 

with tag service with the other trip over Pasco. In 2010 

the tag was removed and ALW was left with just two 

daily roundtrips with the Bombardier Q400. The 

reduction in departures was compounded when Big Sky 

Airlines left the market in 2007.

Total available seats remain higher than the 2004 to 

2008 period reflecting the use of the larger turboprop 

aircraft; however, seats have declined from 2011 to 

2012 by eight percent with the reduction in service 

scheduled for June through August 2012. 

Extenuating Factors that have Affected

Air Service

ALW serves a catchment area population exceeding 

73,000 in the far southeast corner of the state of 

Washington. As mentioned previously, the airports at 

Seattle, Portland, and Spokane offer a wide array of 

service, but they do not attract local air travelers due to 

the long drive distances. The presence of Pasco’s TriCities Airport approximately 53 miles distant is a key 

factor affecting air service at ALW, but it is still an hour 

or more drive for most of the catchment area. The 

second factor impacting local air service is the limited 

population base of the catchment area. Though the 

catchment area generates substantial numbers of air 

travelers, its size limits service in multiple directions.

While catchment area traffic volumes are modest, the 

primary problem is the lack of an airline serving the 

Pacific Northwest with appropriate size aircraft to serve 

the market. Alaska Airlines does not have 50-seat 

regional jets in their fleet making 76-seat turboprop 

their primary operational aircraft. With this reality the 

Walla Walla Valley must market aggressively and make 

the larger aircraft economically viable.

PAST AIR SERVICE DEVELOPMENT EFFORTS 

In the last three years, the public-private partnership 

(identified on page 10) has been actively involved in air 

service development and preserving current air service. 

The public-private partnership has maintained an open 

working relationship with Alaska Airlines meeting 

regularly to discuss service performance. A meeting 

with Alaska in April 2012 was the catalyst behind the 

Port of Walla Walla submitting this grant application.

Other efforts included a travel survey conducted in April 

2012 (described in detail on pages 8 and 9), business 

outreach meetings, a “myth buster” marketing 

campaign and the “ship wine free” program by the 

Walla Walla Valley Wine Alliance.

2004 2005 2006 2007 2008 2009 2010 2011 2012

Dept 180 78

Seats 3,420 1,482

Dept 361 5

Seats 26,958 380

Dept 57

Seats 2,109

Dept 1,221 1,037 1,032 1,036 1,070 676 677 690 637

Seats 45,177 38,369 38,184 38,332 46,028 50,472 51,452 52,440 48,412

1,278 1,037 1,212 1,114 1,070 1,037 682 690 637

Annual seats 47,286 38,369 41,604 39,814 46,028 77,430 51,832 52,440 48,412

Seattle, WA (SEA) Alaska

Source: Diio Mi

Big Sky

Alaska

Annual departures

Boise, ID (BOI)

Pendleton, OR 

(PDT)

Pasco, WA (PSC) Alaska

TABLE 3.2 HISTORICAL HUB DESTINATIONS AND SERVICE PROVIDERS

SCHEDULED ANNUAL DEPARTURES/SEATS

HUB AIRLINE ITEM
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 7

WALLA WALLA REGIONAL AIRPORT

SECTION 4

AIR SERVICE NEEDS AND 

DEFICIENCIES

The Air Service Needs and Deficiencies section identifies 

the impetus behind this SCASDP grant application. This 

section demonstrates the critical need for the Walla 

Walla Valley to take action to preserve the highly valued 

air service in the community.

DECLINING AIR SERVICE

For many years the Walla Walla Valley has had Alaska 

Airlines/Horizon Air nonstop service to Seattle-Tacoma 

International Airport. When Horizon changed their fleet 

from the 37-seat Bombardier Q200 turboprop aircraft 

to the 76-seat Bombardier Q400 aircraft small 

communities across the Northwest were impacted. 

While the larger aircraft provided more capacity per trip, 

market sizes necessitated the reduction in frequency. 

Where ALW once had as many as five daily roundtrips 

per day, ALW now has only one or two roundtrips per 

day (Table 4.1).

The reduced departures have deteriorated the quality of 

air service provided at ALW. When Alaska/Horizon 

reduced frequency to two roundtrips per day in 2009 

the community absorbed the loss of frequency although 

it impacted local businesses significantly. The further 

reduction from two roundtrips to one on certain days of 

the week exacerbates the problem and will cause more 

air travelers from the Walla Walla Valley to make the 

minimum 180-mile drive to access a small hub airport 

or 50-plus mile drive to Pasco where air service options 

are also limited.

With the use of the larger turboprop aircraft, available 

seats in the market were less impacted. However, with 

the recent reduction from two 

roundtrips to one roundtrip per 

day, available seats are 

scheduled to decline by five 

percent. While the seat loss is 

of limited impact, the 15 

percent weekly frequency loss 

seriously impairs the 

convenience of local air service.

In a market with such limited 

air service, any reductions 

seriously impede the 

community’s access to the 

national air 

transportation system.

This section addresses: 

Description of the Walla Walla Valley’s air service 

needs and deficiencies.

MON TUE WED THU FRI SAT SUN

2000 5 5 5 5 5 4 5 34 1,258 37

2001 4 4 4 4 4 4 4 28 1,036 37

2002 4 4 4 4 4 4 4 28 1,036 37

2003 4 4 4 4 4 4 4 28 1,036 37

2004 4 4 4 4 4 4 4 28 1,036 37

2005 3 3 3 3 3 2 3 20 740 37

2006 3 3 3 3 3 2 3 20 740 37

2007 3 3 3 3 3 2 3 20 740 37

2008 3 3 3 3 3 2 3 20 740 37

2009 2 2 2 2 2 1 2 13 962 74

2010 2 2 2 2 2 1 2 13 988 76

2011 2 2 2 2 2 1 2 13 988 76

2012 2 1 1 2 2 1 2 11 836 76

TABLE 4.1 NONSTOP DAILY FLIGHTS ALW-SEA

Source: Diio Mi

CALENDAR AVG FLIGHTS PER DAY - JULY

YEAR

FLIGHTS/ 

WEEK

SEATS/ 

WEEK

SEATS/ 

DEPT
SECTION 4

AIR SERVICE NEEDS AND DEFICIENCIES

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 8

WALLA WALLA REGIONAL AIRPORT

MARKET PROFITABILITY A CONCERN

The recent reduction from two daily roundtrips to one 

on two days of the week during the summer was a 

result of Alaska’s assessment of the ALW market 

performance in 2011. While ALW’s passengers and 

associated load factors had significant increases in 2011 

over 2010 (inbound load factor of 65 percent versus 55 

percent and outbound 65 percent versus 61 percent), 

totals fell slightly short of their all-time highs in 2009. 

Load factor year-to-date percentages for the first three 

months of 2012 continue to increase over the same 

period in the preceding two years but are still lower 

than Alaska’s target for the Walla Walla market.

Alaska has indicated that the performance of the ALWSeattle market has been weak. Table 4.2 provides the 

average load factor for calendar year 2011 for Alaska

Airlines’ non-hub markets with nonstop service to 

Seattle. ALW had one of the lowest load factors and 

was significantly below the 75 percent average.

Alaska has indicated that at these load factors the 

market is no longer profitable, the result of worsening 

traffic and cost pressures over the past couple of years. 

Review of specific day-of-week performance metrics 

indicated that load factors failed to break 60 percent 

and profit margins were over five points lower than the 

market average on Tuesdays and Wednesdays in 

summer 2011 leading to the reduction from two 

roundtrips to one in 2012. 

While day-of-week adjustments are common across 

Alaska’s network and are used to align capacity with 

demand, the Walla Walla Valley is at risk of losing 

Alaska’s service unless the market returns 

to profitability. The public-private partnership ardently

believes that positive tourism trends and assorted 

outbound travel opportunities, when combined with a 

strong local marketing effort as outlined in the Strategic 

Plan, will provide the growth in passengers that Alaska 

needs to be profitable. For this to occur, the consistent 

convenience of at least 13 weekly roundtrips is needed.

SURVEY RESULTS: PASSENGER POTENTIAL

In April 2012 a survey was conducted of Walla Walla 

Valley based business travelers to ascertain their travel 

behaviors, needs and preferences. The survey was 

delivered by email to members of the Walla Walla Valley 

Chamber of Commerce and the Walla Walla Valley 

Wine Alliance, two participants in the public-private 

partnership. Since the survey was not delivered to a 

random sample of businesspeople and the respondents 

were self-selected, the results are not statistically valid 

with any reliable degree of confidence (plus or minus 

five percent). However, the survey provides an 

indication of the travel habits of Walla Walla Valley 

business travelers.

TABLE 4.2 AVERAGE LOAD FACTOR IN ALASKA 

AIRLINES' NON-HUB MARKETS TO SEATTLE

ALASKA NONSTOP 

SEA MARKET

LOAD 

FACTOR

Mammoth Lakes, CA 59

Arcata, CA 63

Walla Walla, WA 63

Helena, MT 64

Wenatchee, WA 65

Sun Valley, ID 65

Lewiston, ID 66

Yakima, WA 67

Great Falls, MT 68

Pullman, WA 68

Redmond, OR 69

Pasco, WA 71

Redding, CA 78

Missoula, MT 80

Medford, OR 83

Santa Rosa, CA 85

Average Non-Hub Markets 75

Source: Diio Mi, CY 2011
SECTION 4

AIR SERVICE NEEDS AND DEFICIENCIES

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 9

WALLA WALLA REGIONAL AIRPORT

The intent of the survey was to identify opportunities 

which may exist for increasing overall use of ALW. In 

total, 296 people responded to the survey, including 40 

winery respondents. The following provides a summary 

of some of the survey findings:

• On average, respondents fly 7.4 times per 

year. Winery representatives flew more 

frequently, 9.3 times, versus non-winery 

respondents, 7.1 times per year.

• Seattle was the overwhelming majority top 

final trip destination selected (65 percent).

• Respondents used ALW for 65 percent of 

their trips indicating that 35 percent of 

travelers are using alternate airports.

• Assuming flight schedules were identical, the 

preferred airline of choice for Walla Walla 

Valley businesspeople was Alaska Airlines (84 

percent). The percentage was higher for 

winery respondents at 95 percent.

• ALW was the preferred airport for 90 percent 

of total respondents. Winery respondents 

prefer ALW 97 percent.

Based on the results of the Walla Walla Valley business 

traveler survey, it is clear that although ALW is 

overwhelmingly the preferred airport for Walla Walla 

Valley businesspeople, nearly one-third still fly out of 

Pasco primarily because of flight schedules and options. 

While it is not surprising that Seattle ranked the highest 

among the final trip destinations for Walla Walla Valley 

business flyers overall, it was surprising to find that 

Seattle also ranks high for Walla Walla Valley based 

flyers using Pasco’s Tri-Cities Airport. For those flyers 

who said they flew at least 90 percent of their flights 

out of ALW, more than three-quarters (75 percent) 

listed Seattle among their top three destinations. In 

comparison, more than two out of five (43 percent) of 

those who said they flew at least 90 percent of their 

flights out of Pasco also reported Seattle among their 

top final destinations. 

Clearly, this statistic indicates that there are still a 

number of Walla Walla Valley business travelers 

choosing to fly out of Pasco even though they can 

reach their final destination (i.e. Seattle) by flying out of 

ALW. This finding suggests that there is potential 

to increase the number of passengers flying out of 

ALW by advertising the benefits of flying local

and/or providing incentives to do so.

The Strategic Plan proposed herein will create more 

awareness of Alaska’s service in the Walla Walla Valley 

thereby increasing ridership and returning Alaska to 

profitability on the ALW-Seattle route.
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 10

WALLA WALLA REGIONAL AIRPORT

SECTION 5

STRATEGIC PLAN 

The Strategic Plan proposed by the Port of Walla Walla

will achieve the community’s goals and help to alleviate 

the air service needs and deficiencies of this community.

This section provides a detailed description of the goals 

of the project and a plan for attaining those goals. This 

section also identifies the legal sponsor responsible for 

administering the program and the public-private 

partnership that has been formed to actively participate 

in implementing the proposed project. A detailed 

description of the funding necessary for implementation 

of the Strategic Plan, including federal and non-federal 

contributions, is included.

PROJECT GOALS

The project goal is to increase enplanements at ALW to 

return Alaska Airlines’ Seattle service to profitability and 

ensure the Walla Walla Valley’s continued access to the 

national air transportation system. 

PUBLIC-PRIVATE PARTNERSHIP

The Port of Walla Walla is the owner/sponsor of ALW. 

For the purpose of this application, the Port of Walla 

Walla, Walla Walla Valley Wine Alliance, Tourism Walla 

Walla and the Walla Walla Valley Chamber of 

Commerce have formed a public-private partnership

(refer to community support letters in Appendix A). 

Collectively, this partnership is committed to completing 

the Action Plan outlined herein. 

All partners in the public-private partnership will be fully 

involved in the execution of the Strategic Plan (Table 

5.1). The Port of Walla Walla will execute all federal 

grant offers and process all associated reimbursement 

requests. The Walla Walla Valley Wine Alliance will 

coordinate the development and administration of the 

advertising and promotion program. Tourism Walla 

Walla and the Walla Walla Valley Chamber of 

Commerce will assist the Alliance with the marketing 

campaign. In addition, the Walla Walla Valley Chamber 

of Commerce and Port of Walla Walla will generate 

support from Walla Walla Valley’s business community.

TABLE 5.1 PUBLIC-PRIVATE PARTNER ROLES

PUBLIC-PRIVATE PARTNER ROLE

Port of Walla Walla/

Walla Walla Regional Airport

Grant administration; 

Generate support from 

Walla Walla’s business 

community

Walla Walla Valley 

Wine Alliance

Develop and administer the 

marketing campaign

Tourism Walla Walla Assist with the marketing 

campaign

Walla Walla Valley 

Chamber of Commerce

Generate support from 

Walla Walla's business 

community; Assist with the 

marketing campaign

PROPOSED PLAN

The Port of Walla Walla and other Walla Walla Valley 

representatives meet regularly with Alaska to discuss 

ALW’s market performance. In April 2012, community 

representatives met with Alaska, and Alaska indicated 

that efforts must be made to return the market to 

profitability. The community has taken several 

immediate actions in response. First, the Port of Walla 

Walla is waiving a portion of the terminal building rent, 

landing fees, and the ARFF reimbursement from July

This section addresses: 

• A Strategic Plan for meeting Walla Walla 

Valley’s air service needs and deficiencies

• Previous grant recipient with new project 

and goals

• Description of the public-private partnership

• Designation of a legal sponsor

• Funding necessary for implementation of the 

Strategic Plan
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 11

WALLA WALLA REGIONAL AIRPORT

through December 2012 to reduce Alaska’s operating 

costs in the Walla Walla market. The fee waivers will 

save Alaska an estimated $60,630 through the 

remainder of 2012. The Port is also considering partial 

fee waivers totaling $121,260 in 2013.

While the reduction in operating costs will assist in 

returning Alaska to profitability, it is not a long-term 

solution. The public-private partnership believes that a 

comprehensive, two-year marketing campaign will 

increase ridership to the level that will meet Alaska’s 

load factor and profitability targets. The purpose of the 

"fly Walla Walla" marketing campaign is to ensure 

continued passenger growth on inbound and outbound 

ALW flights. 

Alaska Airlines fully supports the proposed plan. 

Alaska’s letter of support is included in 

Appendix A.

Marketing Objectives

For Alaska Airlines to meet their profitability targets, 

they have indicated that an 80 percent average load 

factor is desired. An 80 percent load factor with 76-seat 

aircraft and 13 weekly departures (post-August 2012

frequency) requires approximately 82,200 annual origin 

and destination passengers annually or 113 passengers 

daily each way. With 64,129 ALW passengers in 

calendar year 2011, an increase of 18,073 passengers 

or about 13 passengers per flight is required.

To accomplish this passenger increase, the marketing 

campaign has two objectives: 

1. Increase the number of passengers originating 

out of ALW

2. Increase the number of passengers flying in to 

ALW who originate elsewhere

Marketing Message

The survey results (described on pages 8 to 9) showed 

that the top perceived advantages of flying out of ALW

are all convenience related (e.g. reduced travel to the 

airport, less waiting at the airport, and free parking).

However, recent formal and informal research has 

shown that the lack of air travel flight options to and 

from ALW are a major deterrent to the use of ALW and 

frequency of travel.

A survey conducted in 2008 by Tourism Walla Walla 

revealed that only nine percent of travelers coming to 

Walla Walla travelled by air. Likewise, preliminary results 

from a survey currently being conducted by the Walla 

Walla Valley Wine Alliance is showing that nearly onequarter of visitors to Walla Walla reported poor flight 

connections as an obstacle to visiting the Walla Walla 

Valley more frequently.

The public-private partnership believes that one of the 

reasons that travelers are using alternate airports is due 

to traveler perception of poor flight options at ALW. 

Often when travelers perceive that they cannot get a 

flight out of ALW that meets their schedule needs, they 

habitually look to Pasco for air travel versus 

investigating options at the local airport. Service failure 

and continued drive diversion often result from a lack of 

awareness and the advantages of available air service at 

the local airport. 

The primary marketing message of the broad-based 

advertising and promotion program will be to 

emphasize the benefits and convenience of using 

Alaska Airlines at ALW.
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 12

WALLA WALLA REGIONAL AIRPORT

Target Audience

The marketing campaign will target both inbound and 

outbound air travelers to the Walla Walla Valley. The 

primary audience is air travelers that are:

1. Convenience driven

2. Time sensitive

3. Less price sensitive

4. Frequent air travelers

5. Vested in supporting the local economy

Overall, Alaska’s service at ALW holds the most benefit 

for this group. 

Marketing Plan

The marketing plan has been organized according to 

outbound (originating in Walla Walla) and inbound 

(originating outside of Walla Walla) travelers and 

marketing strategies are identified for each group.

OUTBOUND TRAVELERS

Strategy 1 – Create incentives targeted at Walla Walla 

Valley wine industry flyers and area businesses. Each 

of these incentives will be considered as part of the 

overall campaign.

• Provide Alaska Airlines VIP Lounge passes to one 

individual from each Walla Walla winery.

• Provide double frequent flyer miles for winery 

representatives flying out of ALW.

• Provide a 10 percent airline ticket discount for 

Walla Walla winery representatives and other Walla 

Walla Valley businesses.

Strategy 2 – Increase the exposure of the Alaska 

Airlines brand in Walla Walla through community 

involvement and event marketing.

• Work with Alaska Airlines to become a major 

sponsor of one or several of the following tourism 

events in the Walla Walla Valley in 2013:

- Vintage Walla Walla in June 2013 (Walla 

Walla Valley Wine Alliance)

- Walla Walla Balloon Stampede in May 2013 

(Walla Walla Valley Chamber of Commerce)

- February is for Foodies in February 2013 

(Hotel/Lodging Association)

• Work with Alaska Airlines to become a major 

sponsor of the Walla Walla Food Bank fundraiser 

during the fourth quarter 2012.

• The public-private partnership will complement this 

strategy with promotion/education efforts focused 

on area service clubs (Lions, Rotary, etc.) and 

business organizations.

Strategy 3 – Aggressively promote ALW as the airport 

of choice within the Walla Walla Valley.

• Members of the public-private partnership will 

publicly encourage use of ALW and Alaska Airlines 

during all public speeches and media contacts.

• The Port of Walla Walla will continue its local 

advertising campaign promoting use of ALW.

• The public-private partnership will create ongoing 

campaigns to promote Alaska Airlines and ALW to 

their membership via newsletter articles and 

mentions, e-blasts, social media, and Web site 

display advertising.

Strategy 4 – Create a program to formalize the Walla 

Walla Valley resident’s commitment to maintaining 

commercial air service at ALW.

• The development of an Airline Travel Bank® in the 

Walla Walla Valley for Alaska Airlines will 

be considered.

INBOUND TRAVELERS

Strategy 1 – Conduct collaborative quarterly inbound 

travel promotions.

• Work with Alaska Airlines to create a traveler

incentive package. The traveler incentive package 

may include but is not limited to:

- Discounted airline tickets

- Certificates for local Walla Walla restaurants, 

lodging, and/or wineries
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 13

WALLA WALLA REGIONAL AIRPORT

Strategy 2 – Create regional (e.g. 

Yakima, Tri-Cities and ALW) 

inbound flight offerings to 

encourage travel to the Washington 

Wine Country.

• Create a partnership between 

Alaska Airlines, Tourism Walla 

Walla, the Tri-Cities Convention 

and Visitors Bureau (CVB), the 

Yakima CVB, the Walla Walla 

Valley Wine Alliance, and 

Enterprise Car Rental to provide 

tourists the option of flying into 

and out of one of three 

regional airports (i.e. Yakima, 

Pasco, and ALW) and using an 

Enterprise rental car to travel 

while in wine country. 

Strategy 3 – Promote Alaska Airlines as the travel 

option of choice from Seattle (and other markets) to the 

Walla Walla Valley.

• Create a targeted marketing campaign including 

radio, print, and other advertising in the Seattle 

metropolitan area.

Marketing Budget

The total budget for the marketing campaign including 

development and implementation is $300,000 over a 

two-year period. Table 5.2 provides the preliminary 

marketing budget. The budget allocates $150,000 to 

each year of the marketing campaign. Components 

include: advertising, public relations, and promotional 

incentives for both in-market and out-ofmarket promotions.

STRATEGIC PLAN FUNDING

The public-private partnership is requesting US 

Department of Transportation (DOT) assistance in 

funding 81 percent, or $250,000, of the Strategic Plan. 

The remaining cash funds for the marketing campaign 

will be provided by non-airport sources. Airport revenue 

will fund the annual meeting with Alaska Airlines as 

well as in-kind program administration.

Table 5.3 provides the Strategic Plan budget by 

element and sources of funding. The Airport and 

community will fund 19 percent of the total 

proposed air service program.

Year 1 Year 2

Outdoor $7,500 $7,500

Print $9,000 $9,000

Radio (Seattle) $60,000 $60,000

Web Banners & Facebook Ads 

(Portland/Seattle) $13,500 $13,500

$90,000 $90,000

$1,000 $1,000

$3,000 $3,000

$3,000 $3,000

$3,000 $3,000

$10,000 $10,000

$25,000 $25,000

$25,000 $25,000

$50,000 $50,000

Total Marketing Campaign $150,000 $150,000

Component

Out of Market (Western Region)

Out of Market (Major Destinations)

Subtotal

Outbound Travel Incentives

Inbound Travel Incentives

Subtotal

TABLE 5.2 MARKETING CAMPAIGN PRELIMINARY BUDGET

Budget

Advertising

Public Relations

Out of Market

In-Market

Subtotal

In-Market

Promotional 

Incentives

Out of Market (Portland/Seattle)

US DOT

CASH CASH IN-KIND CASH IN-KIND

Marketing Campaign $250,000 $0 $0 $50,000 $0 $300,000 

Program Administration $0 $1,000 $5,000 $0 $3,000 $9,000 

Total $250,000 $1,000 $5,000 $50,000 $3,000 $309,000 

Percent of total project 81% 0% 2% 16% 1% 100%

Percent of cash contribution 83% 0% N/A 17% N/A 100%

TABLE 5.3 STRATEGIC PLAN BUDGET

DESCRIPTION

FUNDING SOURCE

TOTAL

AIRPORT NON-AIRPORT
SECTION 5

STRATEGIC PLAN

APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 14

WALLA WALLA REGIONAL AIRPORT

PROJECT CONTINUATION AND SUSTAINABILITY

The comprehensive, two-year marketing campaign is 

anticipated to generate increased ridership at ALW. 

During the two-year campaign, the public-private 

partnership plans to meet with Alaska Airlines annually 

to assess the effectiveness of the program. If Alaska 

indicates that the program has not achieved the desired 

average load factor and profitability targets, the publicprivate partnership will consider funding further 

marketing efforts. In addition, the Port of Walla Walla 

will consider the waiver of additional airport fees. Other 

programs to increase ridership and awareness in the 

community will also be considered. The public-private 

partnership is committed to making Alaska Airlines’ 

service self-sustaining. 

PREVIOUS GRANT RECIPIENT - NEW PROJECT 

AND GOALS

In 2004, the US DOT awarded the Port of Walla Walla a 

SCASDP grant. The 2004 grant’s goal was to expand 

Horizon Air’s schedule coverage between ALW and 

Seattle/Tacoma International Airport to capture 

additional connections at Seattle. The plan was to 

change the schedule to depart ALW earlier in the 

morning and return from Seattle later in the evening.

The US DOT’s portion of the project budget, $250,000, 

included partial funding of the advertising/promotion 

program to support the schedule change ($50,000) and 

full funding of the crew cost offset ($200,000). The 

primary need for US DOT funding was to compensate 

Horizon Air for all added crew costs for a 12-

month period.

The prior application’s goals were very specific with 

changing Horizon Air’s schedule. The goal of this 

application is to increase ridership on the existing 

service with no changes to the service required. While 

both applications included an element for 

advertising/promotion, the goals and plan of each 

application were very different.

As demonstrated, this application qualifies as a new 

project and meets the requirements of the SCASDP.
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 15

WALLA WALLA REGIONAL AIRPORT

SECTION 6

SCHEDULE AND 

MONITORING

The public-private partnership has developed a realistic 

timetable to achieve the goals of this proposal. This 

section provides critical milestones to be achieved by 

the public-private partnership. A monitoring program is 

also provided to track the progress of the project.

CRITICAL MILESTONES

Immediate action is needed to increase load factors and 

bring Alaska Airlines back to profitability in the Walla 

Walla market. Because of this, the public-private 

partnership has set an aggressive timeline for 

completion of the Strategic Plan. The following 

milestones are proposed. The timeline is highly

dependent on the date of the US DOT’s grant award.

September 2012: It is anticipated that the US DOT will 

award SCASDP grants in September 2012. If the date of 

grant award changes, earlier or later, the remaining 

milestone dates will also change.

October to December 2012: Development of the 

marketing campaign will be completed from October 

through December 2012. The marketing plan will be 

completed no later than December 31, 2012 so as to 

facilitate implementation of the advertising and 

promotion program on January 1, 2013.

January 2013 to December 2014: The marketing 

campaign to increase enplanements at ALW will begin 

in January 2013 and continue for a two-year period.

MONITORING PROGRAM

The public-private partnership will monitor 

enplanement activity and load factors at ALW monthly 

to track the effectiveness of the market campaign. The 

public-private partnership will also meet at a minimum 

annually, likely more frequently, with Alaska Airlines to 

discuss service performance and the progress of the 

marketing campaign. It is anticipated that the 

partnership will work closely with Alaska in marketing 

efforts and promotion of the service.

This section addresses: 

• How the community will monitor the progress 

of the project

• The plan/schedule for timely completion of 

the project
APPLICATION UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM Page 16

WALLA WALLA REGIONAL AIRPORT

APPENDIX A

LETTERS OF SUPPORT

ppendix A includes letters of support for the 

Port of Walla Walla’s application to the US DOT

for a comprehensive, two-year marketing 

campaign to improve Alaska Airlines’ load 

factors and profitability in the Walla Walla market.

Support letters were submitted by Alaska Airlines, 

participants in the public-private partnership and other 

members of the Walla Walla Valley community. The 

letters of support are included on the following pages 

of this Appendix A and are listed below.

Airline

Alaska Airlines

Government

United States Senate – Senator Patty Murray

Congress of the United States – Member of Congress 

Cathy McMorris Rodgers 

Washington State Legislature – Senator Mike Hewitt, 

Representative Maureen Walsh, and Representative 

Terry Nealey

Public-private partnership

Port of Walla Walla (refer to cover letter)

Tourism Walla Walla

Walla Walla Valley Chamber of Commerce

Walla Walla Valley Wine Alliance

Businesses and Organizations

Coffey Communications, Inc.

Whitman College

A

This section addresses: 

Letters of support from members of the publicprivate partnership, the local business community, 

and state government. 



May 30, 2012 

Ms. Aloha Ley 

Associate Director, Small Community Program 

Office of Aviation Analysis 

US Department of Transportation 

1200 New Jersey Ave, SE W86-310 

Washington, DC 20590 

RE: Order 2012-05-08; Docket DOT- OST-2012-0069 

Dear Ms. Ley, 

Preserving commercial air service in the greater Walla Walla valley is critical to our economic vitality. For some 27 years 

Horizon/Alaska Airlines has been providing commercial air service to Walla Walla. 

In 2009 Alaska Airlines changed its airplane fleet from a 37 passenger aircraft to a 76 passenger aircraft. Since this change, 

Walla Walla has struggled to meet Alaska Airlines passenger enplanement goals. In April the airline informed a group of 

community leaders that they are losing money in the Walla Walla market. It is critical to increase passenger enplanements. 

With this background, we enthusiastically endorse the Small Community Air Service Development Grant application being 

submitted by the Walla Walla Regional Airport. Development of the comprehensive marketing plan to encourage additional 

passenger enplanements is exactly the approach we need to take to preserve air service. 

We are pleased with the community partnerships being aligned for this project. This includes the Port of Walla Walla, 

Tourism Walla Walla, Walla Walla Valley Chamber of Commerce, the Walla Walla Wine Alliance, and the local Air Travel 

Coalition. 

Please give this application careful consideration as our community works together to preserve air service in the Walla 

Walla valley. 

Respectfully, 

 

__________________ __________________ __________________ 

Sen. Mike Hewitt Rep. Maureen Walsh Rep. Terry Nealey 

16th Legislative District 16th Legislative District 16th Legislative District 






June 4, 2012

Ms. Aloha Ley

Associate Director, Small Community Program

Office of Aviation Analysis

US Department of Transportation

1200 NW Jersey Ave, SE W86-310

Washington, DC 20590

RE: Order 2012-05-08; Docket DOT OST-2012-0069

Dear Associate Director Ley,

Whitman College endorses the Small Community Air Service Development Program Grant being submitted 

by the Walla Walla Regional Airport. The grant would provide funding to execute a robust marketing 

campaign to build both inbound and outbound passenger traffic.

Whitman is a liberal arts and sciences undergraduate college with 1,475 students, the majority of whose 

families live in states other than Washington. Our students represent 45 states and 30 nations and rely heavily 

on Alaska Airline’s commercial air service when travelling to and from Walla Walla and their family homes. 

Maintaining commercial air service in the Walla Walla Valley is critical to our student population and their 

families. In addition, Whitman faculty and staff, visiting faculty, and lecturers rely heavily on Alaska’s service 

to Walla Walla for routine business travel.

Our educational institution would be far less attractive to future students and faculty if Walla Walla lost this 

valuable commercial air service. We at Whitman appreciate the fact that Alaska Airlines seeks to make the 

Walla Walla market successful. However, Alaska is losing money supporting the Walla Walla route given 

current levels of passenger traffic. Increasing travelers’ use of Alaska Airlines to and from Walla Walla is 

critical to retaining our air service.

Thank you in advance for your thoughtful consideration of this grant application. 

Sincerely,

George S. Bridges

President