Proposal of Tri-Cities Airport • Pasco, 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: 

Tri-Cities Airport

DUNS Number:

04-583-4921

EIN/Tax ID:

91-600100222

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

1._TRI-CITIES AIRPORT, PASCO, 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. Tri-Cities Airport (PSC)
Proposal of Tri-Cities Airport • Pasco, 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): 2003; Did not execute contract with DOT

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

PUBLIC PRIVATE

1. Tri-Cities Airport 1. TRIDEC

2. Port of Pasco 2. Tri-City Regional Chamber of Commerce

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 Tri-Cities Airport • Pasco, Washington • July 2013

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $700,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $22,000

3b Non-airport cash funds $48,000

3 Total local cash funds (3a + 3b) $70,000

4 TOTAL CASH FUNDING (1+2+3) $770,000

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) $770,000

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.

Local media companies will offer discounts on advertising; partner airlines will offer free tickets 

for giveaways, etc.
Proposal of Tri-Cities Airport • Pasco, 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 Tri-Cities Airport • Pasco, Washington • July 2013 1

TABLE OF CONTENTS

Legal Sponsor 1

Introduction 2

The Tri-Cities Air Service Market 3

Current and Historical Service 3

Capacity Reductions 8

Air Service Needs and Deficiencies 9

Airfares in Pacific Northwest Markets 9

Load Factor Trend 10

Per Capita Capacity 11

Economic Trends 12

Air Service Development Plan: Tri-Cities – Los Angeles 13

Potential Performance of Service 16

Public/Private Partnership 19

Conclusion 20

LEGAL SPONSOR

The Tri-Cities Airport is the legal sponsor responsible for administering the proposed air service 

development program. The Airport is a government agency, operated by the Port of Pasco.

Tri-Cities Airport

3601 North 20th Avenue

Pasco, Washington 99301

Ron Foraker, Airport Director

(509) 547-6352

rforaker@portofpasco.org

Section Page Number
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 2

INTRODUCTION

The Tri-Cities Airport is seeking a federal Small Community Air Service Development (SCASD) 

Grant for a revenue guarantee for the first time. While the Airport has been tremendously active 

in air service development over the last decade, recruiting new air service on five new routes, it 

has accomplished its air service goals without seeking federal aid. At the same time, the air 

service climate has changed dramatically, with carriers now avoiding routes without risk sharing 

in place. The Airport now finds itself in an environment where additional air service development 

will be either difficult, or impossible, without the help of a SCASD Grant.

The Airport serves a large area in eastern Washington, northwest Oregon, and western Idaho 

that is home to more than one million people. It has seen its network airline seats cut by 21% in 

the last three years, causing fares to jump to an average of $209 each way – which ranks as the 

second highest average fare in the Pacific Northwest. Despite those challenges, the Airport has 

been able to grow its passengers by 40% in the last 

five years, reporting a new record for passengers in 

2012 with more than 650,000 traveling through its 

gates.

Tri-Cities Airport benefits from non-stop service to six 

of its top seven destinations as of August 2013. The 

lone exception is the Los Angeles Basin. Allegiant 

previously operated service between the Tri-Cities and LAX, but pulled it in August of last year, 

despite an average 2012 load factor of 94%. The Tri-Cities generated an average of 97 

passengers per day each way to and from Los Angeles area airports – and now those 

passengers will be forced to connect to access the LA Basin.

The Airport is seeking $700,000 in federal assistance to provide a revenue guarantee to a 

network carrier to return Los Angeles service to the market. The Airport has put together a 

coalition of local support to help providing matching dollars for the project, and to provide 

broad outreach to ensure new service is immediately supported. Earlier this year the Airport met 

with both American Airlines and Alaska Airlines to begin the recruitment process. This Grant is 

the last piece of the puzzle to bringing Los Angeles network service to the Tri-Cities.

“The Airport... has seen its network 

airline seats cut by 21% in the last 

three years... causing fares to jump 

to... the second highest... in the 

Pacific Northwest.”
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 3

THE TRI-CITIES AIR SERVICE MARKET

Current and Historical Air Service

The Tri-Cities Airport, serving the cities of Pasco, Kennewick, and Richland, is the main gateway 

for a huge area in eastern Washington State, northeastern Oregon, and parts of the panhandle 

of western Idaho. As the only airport in its region with service on more than one carrier, and the 

only airport with low cost airline service, the Airport has a large role in connecting dozens of 

cities to the national air transportation system.

The Airport’s catchment area, the area from which it draws passengers, extends from the 

Cascade Mountains in the west to the Idaho panhandle in the east. The area, seen in Map 1 in 

blue, is home to 

1,036,438 people as of 

the 2010 US Census. 

This population 

includes 800,000 

people in Washington 

State, 176,000 people 

in Oregon, and 61,000 

people in Idaho. The 

nearest competing 

airports are in 

Spokane, which is 

almost three hours 

away by car, and 

Portland, which is 

almost five hours 

away by car.

Due to the large 

number of people in 

the Airport’s catchment area, a number of carriers have chosen to serve the Tri-Cities Airport. As 

of July 2013, the Airport is served by Alaska Airlines, through its Horizon Air subsidiary; Delta Air 

Lines; United Airlines; and Allegiant Air. Altogether, Tri-Cities Airport has non-stop service to eight 

cities (see Map 2).

MAP 1: Tri-Cities Airport Catchment Area

Source: Sixel Consulting Group, 2010 US Census Estimates
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 4

As of August of 2013, 

carriers serving Tri-Cities 

Airport will offer 6% fewer 

seats than they offered at 

the same time last year 

(see Figure 1). Allegiant’s 

available seats are down 

50%, with the 

cancellation of non-stop 

service to Los Angeles. 

The Tri-Cities market was 

one of the victims of the 

cuts sparked by 

Allegiant’s loss of gate 

space in Terminal Six at 

LAX. Alaska Airlines 

renovated much of the 

terminal, taking over new 

gates, and forcing Allegiant to share a gate in Terminal Three. This caused Allegiant to cut 

service to eight cities from its LAX gateway.

Of all Tri-Cities carriers, 

only United will offer more 

seats in August of 2013 

than it did in August of 

2012 (see Figure 1). While 

United’s San Francisco 

route sees steady 

capacity, United has 

added a weekend flight 

on the Denver route. 

Meanwhile, Alaska and 

Delta have both cut 

capacity in Tri-Cities 

slightly from 2012 available seats.

FIGURE 1: Scheduled Service at Tri-Cities Airport, 8/12 vs. 8/13

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

MAP 2: Current Service at Tri-Cities Airport

Source: Sixel Consulting Group; OAG Schedule Data, July 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 5

The result of these capacity shifts is that 

Alaska and Delta each offer about a third 

of Tri-Cities available seats as of August 

2013 (see Figure 2). Allegiant, which last 

summer offered 20% of Tri-Cities available 

capacity, will offer just 11% of available 

seats in August of 2013. United has held 

steady with about 20% of Tri-Cities 

available airline seats.

Airline capacity at the Tri-Cities Airport has increased dramatically in the last decade, as have 

origin and destination passengers. Since 2008, Tri-Cities passengers have increased by 40% or an 

average of 254 additional passengers per day each way (PDEW) (see Figure 3). Much of this 

growth can be attributed to Allegiant, which began service in the market in 2007.

FIGURE 3: O&D Passengers and Average One Way Fares, Tri-Cities Airport

Source: US DOT OD1A, Calendar Year 2004 – Calendar Year 2012

FIGURE 2: Seat Capacity Share by Carrier, Tri-Cities Airport

Source: Sixel Consulting Group; OAG Schedule Data, July 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 6

While Tri-Cities average fares have come down from their mid-decade peak, they have been 

slowly rising over the last three years. Even with Allegiant data included in the overall average 

fare data, the 2012 one way fare at the Tri-Cities Airport was $209, up 7%, or an average of $13 

each way, from 2010 (see Figure 3 on 

previous page). When Allegiant data is 

removed from the sample, the average TriCities one way fare jumps to $219, 5% 

higher than the fare including Allegiant 

passengers.

Allegiant’s impact is also seen in the list of 

the Tri-Cities’ top origin and destination 

passenger markets. The three markets to 

which Allegiant has provided non-stop 

service, Las Vegas, Phoenix/Mesa, and Los 

Angeles, all rank in the top four largest 

markets for 2012 (see Figure 4). The TriCities Airport generated an average of

77.5 PDEW to and from Las Vegas in 2012, 

51.3 PDEW to and from Phoenix/Mesa, and 

39.1 PDEW to and from Los Angeles 

International Airport.

While Allegiant’s service at Tri-Cities Airport 

provides the region with a low cost 

alternative for leisure travel, the core of the Tri-Cities market is driven by eastern Washington and 

northwest Oregon businesses. Large nuclear research and engineering companies such as 

Areva, Battelle, Bechtel, Energy Northwest, URS, and CH2M Hill generate more than one hundred 

passengers per day each way, primarily on network carriers.

FIGURE 4: Top 25 O&D Passenger Markets at Tri-Cities Airport

Source: US DOT OD1A, Calendar Year 2012
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 7

Allegiant’s presence, as noted, brings down 

the overall average fare in the Tri-Cities 

market, but network carriers rarely match 

Allegiant on price. The result is high fares on 

all other carriers, even in markets where they 

directly compete with Allegiant. If you travel 

for business, and must travel on specific days 

of the week, or at specific times, Allegiant is 

rarely an option. The Tri-Cities’ Business 

travelers subsequently pay much more for 

access to the national air transportation 

system than the average fares would illustrate.

The overall average fares in Allegiant markets 

run 25% lower than the overall average fares 

in non-Allegiant markets. In an extreme 

example, the average one way fare to and 

from Las Vegas, in 2012, was $92 (see Figure 

5). Meanwhile, the average fare in Denver, 

which is a market served non-stop by United, 

was $214 each way, despite the fact that 

both cities are roughly the same distance from 

the Tri-Cities. Again, the Tri-Cities overall non-Allegiant average one way fare, not including 

taxes and fees, was $219 in 2012, versus the fare including Allegiant, which was $209. The overall 

average fare of $209 each way still ranks as the second highest average fare in Pacific 

Northwest markets, where the overall average fare was $177 in 2012.

FIGURE 5: Average One Way Fares at Top 25 Markets at PSC

Source: US DOT OD1A, Calendar Year 2012

FIGURE 6: Passengers and Seats per Day Each Way, and Load Factor at Tri-Cities Airport

Source: US DOT T100; January 2010 – March 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 8

Despite some of the highest fares in the West, passengers in the Tri-Cities provide the Airport with 

some of the region’s highest load factors – or percentage of seats filled. As of the 12 months 

ended March 2013, the Tri-Cities market had filled an average of 83% of its available seats (see 

Figure 6 on previous page). Load factors in the market peaked in November of 2012, at 87.7% 

for that month.

During the 12 months ended March 2013, Allegiant averaged a 93% load factor, which certainly 

helped to boost the overall Tri-Cities numbers. Still, network carriers at Tri-Cities Airport, including 

Alaska, Delta, and United, averaged a load factor of 77% over the same period, which is among 

the highest network carrier load factors in the Northwest. November and December of 2012 

were especially strong for the Tri-Cities’ network carriers, as they averaged load factors of 85.8% 

and 86.4%, respectively (see Figure 7).

Also of note is the fact that network carrier capacity in the Tri-Cities has been cut by 21% since 

the summer of 2011 (see Figure 7). Since June of 2011, network carriers have cut available seats 

at the Tri-Cities Airport by an average of 224 per day each way.

The market’s high load factors, coupled with high average fares, indicate the ability of the 

market to profitably support its air service. It also illustrates the ability of the market to support 

additional air service. There will be a gap in non-stop connectivity with the loss of Los Angeles 

service on Allegiant, and that gap would likely be best filled by a network carrier offering daily 

flights.

FIGURE 7: Passengers and Seats per Day Each Way, and Load Factor on Network Carriers at Tri-Cities Airport

Source: US DOT T100; June 2011 – March 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 9

AIR SERVICE NEEDS AND DEFICIENCIES IN THE TRI-CITIES

The Tri-Cities boast the fastest growing economy in the Pacific Northwest, some of the highest 

airline load factors in the region, and some of the highest average fares. The Tri-Cities has seen 

capacity cuts in the last two years that have made it one of the more underserved markets in 

the country. All of the major indicators 

show that the market is primed for 

additional air service.

An analysis of average one way fares in 

Pacific Northwest markets shows the TriCities has the second highest average 

fare in the region as of 2012. The one 

way average in the Tri-Cities is $209, 

which is 18%, or an average of $32 each 

way, higher than the regional average 

fare (see Figure 8). Only Sun Valley, 

Idaho, had a higher average fare in 

2012 than the Tri-Cities.

As previously noted, when Allegiant 

passengers are removed from the TriCities analysis, the average fare jumps to 

$219 each way. The market’s nonAllegiant fare would be the highest 

average network carrier fare in the 

Pacific Northwest in 2012. However, it’s 

interesting that the high fares in the TriCities do not appear to be suppressing 

traffic, as the market generated an all-time record number of passengers, with an average of 

895 passengers per day each way (PDEW) in 2012.

If Tri-Cities passengers were being suppressed, or forced to access service in other markets, one 

would expect load factors at Tri-Cities Airport to decline. The opposite has been true over the 

last three years. In fact, Tri-Cities Airport had the third highest average load factor of all Pacific 

FIGURE 8: Average One Way Fare in Pacific Northwest Markets 

Source: US DOT OD1A, Calendar Year 2012
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 10

Northwest regional 

markets in 2012, at 

82.7% of seats filled 

(see Figure 9). Only 

Eugene and 

Medford had higher 

load factors in 2012. 

Tri-Cities Airport 

outperformed a 

couple of airports 

with significantly 

larger catchment 

areas – Boise and 

Spokane.

Of similarly sized markets in the Northwest, Tri-Cities Airport is one of the most underserved in 

terms of available airline seats. An analysis of Northwest markets with at least 200,000 annual 

airline seats shows the Tri-Cities is 

the second most underserved, 

with an average of just 3.12 airline 

seats per capita (see Figure 10). 

Eugene had fewer seats per 

capita in 2012, but in 2013 it has 

added both Frontier Airlines 

service to Denver and American 

Eagle service to Los Angeles. In 

2013 it is highly likely the Tri-Cities 

will be left as the most 

underserved market in the Pacific 

Northwest. In 2012, the Tri-Cities 

had just 40% the available seats of the average Northwest market.

Subsequently, the Tri-Cities market generates the second lowest number of passengers per 

capita in the Northwest, at an average of just 2.45 passengers in 2012 (see Figure 11 on next 

page). Tri-Cities Airport sees just 38% of the average number of passengers per capita in the 

FIGURE 10: Seats per Capita in Pacific Northwest Markets

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

FIGURE 9: Pacific Northwest Markets Ranked by Load Factor

Source: US DOT T100, Calendar Year 2012

Code Airport Passengers Available Seats Load Factor

EUG Eugene Mahlon Sweet 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 9,249,460 11,957,353 77.4%
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 11

region. Again, Eugene ranks below 

the Tri-Cities in this analysis, but 

Eugene’s number will improve with 

recent service additions.

The Tri-Cities boast the fastest 

growing economy in the Pacific 

Northwest, with a gross 

metropolitan product (GMP) of 

$10.7 billion in 2011, the most recent 

data available (see Figure 12). 

Since 2008, the Tri-Cities economy has grown by 16.3%. No other Northwest market comes close 

in terms of economy advancement in that period. Airports with significantly more air service 

than the Tri-Cities, such as Boise, Spokane, Eugene, and Anchorage, all saw much slower 

economic growth.

FIGURE 12: Gross Metropolitan Product of Pacific Northwest MSAs

Source: US Council of Mayors, March 2013

FIGURE 11: Passengers per Capita in Pacific Northwest Markets

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

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

1 Kennewick-Richland-Pasco WA 9.2 9.7 10.4 10.7 16.3%

2 Bellingham W A 7.9 7.9 8.2 8.8 11.4%

3 Lewiston ID-WA 1.9 1.9 2.0 2.1 10.5%

4 Great Falls MT 2.9 2.9 3.1 3.2 10.3%

5 Medford OR 6.3 6.3 6.6 6.8 7.9%

6 Salem OR 12.6 12.8 13.3 13.3 5.6%

7 Wenatchee W A 3.6 3.6 3.6 3.8 5.6%

8 Boise City-Nampa ID 25.3 24.7 25.8 26.7 5.5%

9 Idaho Falls ID 3.9 3.8 4.0 4.1 5.1%

10 Spokane W A 17.7 17.8 18.1 18.6 5.1%

11 Missoula MT 4.5 4.6 4.6 4.7 4.4%

12 Billings MT 7.2 6.8 7.2 7.5 4.2%

13 Fairbanks AK 5.1 4.8 5.0 5.3 3.9%

14 Pocatello ID 2.7 2.6 2.7 2.8 3.7%

15 Olympia W A 8.7 8.8 8.8 9.0 3.4%

16 Bend OR 6.5 6.3 6.5 6.7 3.1%

17 Eugene-Springfield OR 12.0 11.5 12.0 12.2 1.7%

18 Anchorage AK 27.5 25.2 26.3 27.9 1.5%

19 Yakima W A 7.4 7.2 7.3 7.5 1.4%

Source: US Council of Mayors, 2012
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 12

At the same time, personal income is increasing. US Census projections for 2015 shows 9.4% of all 

households in the Tri-Cities metropolitan statistical area (MSA) will have incomes above $150,000 

per year (see Figure 13). Another 16.4% of 

households will have incomes between 

$100,000 and $149,999 per year. In all, 39% 

of Tri-Cities households will have incomes in 

excess of $75,000 per year by 2015. This 

indicates growth in high quality jobs in the 

region, and the growth in the number of 

people who will be able to afford to travel.

With the economy of the Tri-Cities area 

booming, it stands to reason the market 

can support additional air service. Planes 

flying in and out of Tri-Cities Airport are almost 83% full on average, at the second highest 

average fare in the Northwest. The service provided by the market’s airlines is being supported. 

It is now up to the Airport to bring additional air service to the region to help support its 

continued economic growth.

FIGURE 13: Share of Tri-Cities MSA Household by Income Level

Source: US Census, March 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 13

AIR SERVICE DEVELOPMENT PLAN: TRI-CITIES – LOS ANGELES

It is clear the Tri-Cities market can currently support additional service. It is also clear that 

Allegiant’s previous non-stop service on the Tri-Cities – Los Angeles (LAX) route helped to 

stimulate the market to a level where it can support daily network carrier service. 

So far in 2013, the Airport has met, in person, with planners from two prospective network carriers 

that could serve the route: American Airlines and Alaska Airlines. Planners from both airlines 

expressed the need for the community to share the risk on the route, mainly due to its stage 

length – 739 nautical miles – and potential regional jet fuel burn over that stage length. The 

funding plan contained in this application constitutes the risk sharing necessary for the service to 

begin.

Since Allegiant entered the Tri-Cities – Los Angeles market, passengers to all Los Angeles Basin 

airports (LAX, Burbank, Long Beach, Ontario, and Santa Ana/Orange County) have increased 

by 130%. In 2009, before Allegiant served the market, the Tri-Cities generated an average of 42 

passengers per day each way to and from the LA Basin (see Figure 14). 

FIGURE 14: O&D Passengers and Average One Way Fares, Tri-Cities – LA Basin Airports

Source: US DOT OD1A, CY2004 – CY2012; Includes LAX, BUR, LGB, ONT, and SNA
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 14

The market peaked in 2011, with an average of 99 PDEW, and it generated an average of 97 

PDEW to all LA Basin airports in 2012. A little more than half of all passengers – 56% - chose to use 

LAX in 2012.

The Allegiant fare is designed to stimulate traffic. The average Allegiant fare between the TriCities and Los Angeles was just $67 each way in 2012, which was 51% lower than the network 

carrier average fare of $136 each way (see Figure 14 on previous page). It must be noted, these 

fares do not include ancillary fees and taxes. Allegiant reports it earns in excess of $35 each way 

in ancillary revenue per passenger, meaning the effective PSC-LAX one way fare is closer to 

$102 than $67.

Before Allegiant served PSCLAX non-stop, Tri-Cities 

passengers preferred to use 

alternate airports within the 

LA Basin. In 2009, 61% of TriCities – Los Angeles Basin 

passengers used airports other than LAX. But, as of 2012, that number dropped to 44% (see 

Figure 15). As fares to LAX fell with Allegiant’s presence, LAX became the preferred airport for 

56% of the passengers. Santa Ana/Orange County ranked second in 2012, with a 21% 

passenger share in the Tri-Cities market, while 14% of passengers used Ontario.

The data shows Allegiant’s discontinuation of Los Angeles service was not caused by the 

performance of the Tri-Cities market. When the Tri-Cities – Los Angeles route was served in 2012 it 

averaged a load factor of 94% (see Figure 16). In fact, in its entire tenure, the route only had 

FIGURE 15: Tri-Cities – Los Angeles Market Detail

Source: US DOT OD1A, Calendar Year 2012

FIGURE 16: Passengers and Seats per Day Each Way, and Load Factor, PSC-LAX on Allegiant

Source: US DOT T100; June 2010 – August 2012
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 15

one month with a load factor below 85%. The route was likely a victim of Allegiant’s previously 

discussed gate shuffle at LAX and subsequent discontinuation of a number of LAX routes.

Network carrier 

service to Los 

Angeles would not 

only serve the 

origin and 

destination market, 

which currently

generates 

sufficient traffic to 

fill at least a single 

daily 50-seat 

regional jet, it 

would also be able 

to connect the TriCities to a number 

of new one-stop 

destinations not 

served through 

current hubs. 

When analyzing the connection package on American and Alaska (the connections are nearly 

identical due to the codeshare agreement between the two carriers), there are 51 one-stop 

destinations that could be served over the LAX hub (see Map 3). The Tri-Cities market currently 

generates an average of 426 passengers per day each way (PDEW) to and from these 

connecting cities and Los Angeles, itself. The American and Alaska brands connect to more 

unique cities than any other carrier that could serve Los Angeles. United’s connection package 

at LAX is inferior to the current connection package offered on the PSC-SFO route. The same is 

true of Delta’s connecting package at the Salt Lake City hub.

Service on either American or Alaska between Tri-Cities Airport and LAX would access an 

average of 97 PDEW to and from the Los Angeles Basin (see Figure 17 on next page). It would 

also be able to access large traffic flows to cities in the Southwest, in Mexico, and in Hawaii. Los 

Angeles would be the preferred connecting point for Tri-Cities passengers to cities such as 

MAP 3: Connections over LAX on American Airlines and/or Alaska Airlines

Source: Sixel Consulting Group Hub Builder Software, July 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 16

Phoenix, which averages 26 PDEW; 

San Diego, which averages 18 PDEW; 

Guadalajara, which averages 15 

PDEW; Honolulu, which averages six 

PDEW; Mexico City, which averages six 

PDEW; and Maui, which averages four 

PDEW.

Average fares in many of the Tri-Cities 

markets that could be served by 

American or Alaska over LAX are high 

– they clearly reflect a general lack of 

competition between Tri-Cities carriers. 

The overall average fare paid by 

passengers that could flow over LAX 

on Alaska or American, for 2012, was 

$183 each way (see Figure 18 on next 

page). That overall average includes 

passengers who currently fly on 

Allegiant, and it does not include any 

ancillary fees or taxes. When Allegiant 

passengers are removed from the 

equation, the average fare jumps to 

$202 each way which is, again, one of 

the highest average fares in the Pacific Northwest. Service to and through Los Angeles on 

American or Alaska would be targeting many current high fare markets, providing additional 

competition in the Tri-Cities.

The Airport’s recruitment effort for network carrier service to Los Angeles began early in 2013. 

The Airport, and its local partners, traveled to meet with both Alaska Airlines and American 

Airlines in preparation for this application. They also studied other airports recent successful 

recruiting efforts for Los Angeles service, including the efforts of both Eugene and 

Bend/Redmond, Oregon. These efforts helped determine the amount of both local and federal 

funding required for the project.

FIGURE 17: Top 25 Markets over LAX on AA and/or AS, CY12

Source: Sixel Consulting Group Hub Builder Software, July 2013
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 17

The total project cost is 

$770,000 (see Figure 19). The 

majority of that funding, 

$700,000, will provide a 

revenue guarantee for the 

carrier operating the new 

route. If the route sees 

immediate success, as would 

be suggested in the data 

included in this application, 

the revenue guarantee 

portion of the funding would 

not be used. In addition to 

the revenue guarantee, the 

Airport has earmarked $38,000 

for marketing and advertising 

of the new service. This is a 

key to getting people onto the 

flights as soon as they begin. 

The Airport will also set aside 

$10,000 to cover the carrier’s 

start-up expenses and another 

$22,000 for fee waivers, including landing fee discounts.

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

2013 (see Figure 20 on next page). If the Grant agreement with the DOT is finalized in October of 

2013, the Airport will step-up its recruitment efforts in the fall, endeavoring to meet with the 

targeted airlines through the winter. In a best-case scenario, 

the Airport would hope to target April of 2014 for a new service 

announcement, with creative materials ready for the 

marketing program shortly after a formal service 

announcement. The targeted start date for service would be 

June of 2014, with a two-year revenue guarantee period, 

allowing the Grant to be closed by September of 2016.

FIGURE 18: Average One Way Fares in Top 25 Markets over LAX, CY12

Source: Sixel Consulting Group Hub Builder Software, July 2013

FIGURE 19: Project Budget

Source: Tri-Cities Airport, July 2013

Project Component Funding Amount

Revenue Guarantee $700,000

Marketing/Advertising $38,000

Start-Up Cost Offsets $10,000

Fee Waivers $22,000

Total Project Cost $770,000
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 18

It is possible the timeline 

could slip, based on 

economic factors, airline 

planning factors, and items 

outside the control of the 

Airport or prospective 

airlines. It is also possible 

prospective airlines could 

prefer to use the funding under this plan for an alternate route. As Tri-Cities Airport has never 

received a Small Community Air Service Development Grant for a revenue guarantee, it should 

not be limited in alternate uses. Among alternate routes the Grant could be used for would be 

Phoenix on a network carrier, San Jose, Sacramento, San Diego, Dallas/Ft. Worth, or any other 

route that would provide new connectivity for the market.

FIGURE 20: Project Timeline

Source: Tri-Cities Airport, July 2013

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2013

Executive Grant Agreement with DOT October 2013

Meet with Airlines to Recruit Route Fall/Winter 2013 - 2014

Targeted Announcement Date for Service April 2014

Develop Creative/Launch Marketing April 2014

Targeted Start Date for Service June 2014

Submit Grant Status Reports to DOT Quarterly Q4 2013 - Q2 2016

Close Grant Sepetmber 2016
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 19

PUBLIC/PRIVATE PARTNERSHIP

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

supported by a group of community partners which have pledged their support for the effort to 

bring network service to the Tri-Cities – Los Angeles route. These partners include a local

economic development organization, a chamber of commerce, and the port that owns and 

operates Tri-Cities Airport.

TRIDEC

The Tri-City Development Council, known as TRIDEC, handles all economic development 

activities in the Tri-Cities region, which includes the cities of Pasco, Kennewick, and Richland. 

TRIDEC has been a long-term Airport partner, sending its representatives with Airport leaders to 

airline headquarters meetings and conferences. TRIDEC shares in the expense of air service 

development consulting work, and in the expense of advertising air service. TRIDEC is the main 

partner in this application for federal support.

Port of Pasco

In Washington State, ports are often charged with owning and operating airports. The Port of 

Pasco operates as an independent government agency, separate from any of the other 

government structures in the region. The Tri-Cities Airport is one of the three main divisions within 

the Port of Pasco, the other two being marine and rail. The Port is constantly working on 

economic development projects in the Tri-Cities, and the Airport is at the center of that effort.

Tri-City Regional Chamber of Commerce

The Tri-City Regional Chamber of Commerce is the leading business advocate for nearly 1,300 

private, public and non-profit member firms in the Tri-Cities region. The fifth largest chamber in 

Washington, the Tri-City Regional Chamber advocates for a strong business community. The 

Chamber promotes regional prosperity and strengthens its member businesses through 

advocacy, leadership, networking and innovative business programs. Its businesses have 

expressed strong support and demand for additional air service.
Proposal of Tri-Cities Airport • Pasco, Washington • July 2013 20

CONCLUSION

The Tri-Cities Airport serves a catchment area of one million people, in the fastest growing 

regional economy in the Pacific Northwest. In the last four years, the Tri-Cities economy has 

grown by 16%. Income levels have shot upwards, as well, with 39% of households projected to 

earn $75,000 or more by 2015.

At the same time, airlines – especially network carriers – continue to squeeze capacity at the 

Airport. Since the summer of 2011, network airline capacity at Tri-Cities Airport has been cut by 

21%. And this summer, Allegiant’s capacity is down 50% from where it was last summer, with the 

loss of non-stop service to Los Angeles. The market is clearly underserved, averaging just 40% of 

the available airline seats per capita of its Pacific Northwest peers.

As seats have been pulled from the market, fares have continued to edge higher. Tri-Cities 

Airport now has the second highest average fare in Pacific Northwest regional markets. If you 

exclude the Airport’s Allegiant passengers from the 

equation, the fares in the Tri-Cities become the 

highest of all Pacific Northwest airports, at $219 

each way on average.

Despite high fares and less capacity, the Airport has 

been able to grow passengers – setting a new 

record in 2012. But this trend will be unsustainable 

without additional service. The number one target for service is, far and away, Los Angeles – a 

market that generated an average of 97 local passengers per day each way in 2012. The 

Airport has started discussions with both American Airlines and Alaska Airlines regarding Los 

Angeles (LAX) non-stops. Both carriers have indicated a need for risk sharing to effect a route 

launch.

The Tri-Cities Airport has never before applied for a Small Community Air Service Development 

(SCASD) Grant to be used for a revenue guarantee. It has been able to recruit five new routes 

over the last decade without federal support. But the Airport realizes the environment has 

changed, and in order to be competitive with other non-hub airports it must offer risk sharing on 

targeted routes. This SCASD Grant application is the key to additional service in the Northwest’s 

fastest growing market.

“...the Airport has been able to 

grow passengers – setting a new 

record in 2012. But this trend will 

be unsustainable without 

additional service.”