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PROPOSAL

SMALL

COMMUNITY

SERVICE

UNDER THE

AIR

Legal sponsor:

DUNS:

Contact:

Docket #:

WALKER FIELD AIRPORT

GRAND JUNCTION, COLORADO

APRIL 27,2007

Walker Field Airport Authority

15-613-5394

Rex Tippetts, AAE

w o r t Director

Walker Field m o r t Authority

2828 Walker Field Drive, Suite 301

Grand Junction, Colorado 81506

Phone: (970) 248-8558

Email: [email protected]

OST-2007-27370

mailto:[email protected]

April 27, 2007

WALKER N E D AlRPORT AUTHORlN 2828 Walker Field Drive, Suite 30 1 Grand Junction, CO 8 1506 (970) 244-9100 FAX: (970) 241-9103 www.wa/kerfie/d.com

Docket Operations and Media Management M-30, Room PL-401 Department of Transportation 400 7th Street, SW Washington, DC 20590

Subject: Small Community Air Service Development Program Docket OST-2007-27370 Walker Field Airport Authority, Grand Junction, CO

Dear SirlMadam:

Included with this letter is Walker Field Airport Authority’s Small Community Air Service Development Program grant application. It incorporates a creative plan with a defined schedule to improve air service to this thriving but remote part of Colorado where air service is the vital transportation link. Our plan to increase airline capacity to a hub airport located east of Grand Junction will address the region’s two primary air service issues: an underserved and overpriced market. This application has support of Grand Junction’s business, government, education, and service sectors.

The importance of air service to our region cannot be overemphasized. It is key to our economy and critical to the development of the energy resources located in western Colorado. Our goals are to improve air service to a broad section of the Grand Junction community that travels to the east, southeast, south, and south central US, reduce the need to drive long distances to access air service and competitive fares to these markets, and improve overall access to the national air transportation system for this isolated part of the country. The plan proposed by Grand Junction complies with the program priorities established by the Secretary of Transportation (Order 2007- 2-22, Appendix A):

0 Increasing Grand Junction’s supply of airline seats will address both capacity and airfare issues Grand Junction’s community will fund 11 percent of the total proposed air service program in the form of cash and in-kind services; 10 percent of the cash requirement is from non-airport sources. Grand Junction has formed a public-private partnership to support the proposed air service initiative.

0

0

http://www.wa/kerfie/d.com

Department of Transportation Docket OST-2007-27370 Page 2

0 The proposed air service will benefit all segments of our community including government, business, educational institutions, energy sector, and leisure travelers.

Grand Junction is ready to do whatever it takes to turn the proposed air service initiative into reality. Unlike other communities that have alternate airports within reasonable drive distances, Grand Junction depends on service at Walker Field Airport. Accordingly, we will act expeditiously and aggressively to achieve the goals detailed in our application. We appreciate the Department of Transportation's understanding of the importance of commercial air service in smaller communities and look forward to working with you as you evaluate the merits of the Walker Field Airport Authority's Small Community Air Service Development Program grant application.

Sincerely,

%"JF Rex Tippetts, A.A.E. Airport Director

TABLE OF CONTENTS I

SUMMARY INFORMATION ............................................................ 1

PROPOSAL HIGHLIGHTS ............................................................. 4 AIR SERVICE ISSUE ........................................................................................ 5 A WELL DEFINED PLAN .................................................................................. 5 BROAD COMMUNITY SUPPORT ..................................................................... 6 STRONG ABILITY TO IMPLEMENT PROJECT ................................................. 6 MULTIPLE SECTORS OF THE COMMUNITY WILL BENEFIT ........................... 7

AIR SERVICE BACKGROUND ....................................................... 8 WALKER FIELD AIRPORT’S CATCHMENT AREA ........................................... 8 COMMUNITY ECONOMICS/DEMOGRAPHICS ............................................... 9 PROXIMITY TO A COMPETING AIRPORT ..................................................... 1 0 FACTORS AFFECTING AIR SERVICE ........................................................... 1 1 PAST AIR SERVICE DEVELOPMENT EFFORTS ........................................... 1 1 CURRENT AIR SERVICE ............................................................................... 12 HISTORICAL AIR SERVICE ........................................................................... 13

AIR SERVICE ISSUES ................................................................ 1 5 UNDERSERVED MARKETS .......................................................................... 15 HIGH AIRFARES ........................................................................................... 16

ACTION PLAN ........................................................................... 1 8 PUBLIC-PRIVATE PARTNERSHIP ................................................................. 18 PROJECT GOALS ........................................................................................ 19

AIR SERVICE SUPPORT PLAN ..................................................................... 21

ALTERNATE PLAN ....................................................................................... 24

PROPOSED AIR SERVICE ............................................................................ 20

PROJECT CONTINUATION/SUSTAINABILITY ............................................. 24

FUNDING ..................................................................................................... 26

SCHEDULE/MONITORING ........................................................ 27 MILESTONES ............................................................................................... 27 MONITORING PROGRAM ............................................................................. 28

APPENDIX A . COMMUNITY SUPPORT ....................................... 29

APPENDIX B . ANALYSIS 8c FORECASTS ................................... 46

SUMMARY INFORMATION

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET OST-2007-27370

SUMMARY INFORMATION

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium 0 Interstate Consortium 0 Intrastate Consortium

0 Community now receives EAS subsidy

0 Community (or Consortium member) previously received a Small Community Grant

If previous recipient, expit-ation date of grant:

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

Public Private

1. Walker Field w o r t Authority 1.

2. West Star Aviation

3. Williams Energy

Grand Valley Economic Development Partners Committee

c. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing 0 Upgrade k c r a f t

0 Personnel Increase Frequency

0 TravelBank 0 Service Restoration

0 Surface Transportation 0 Regonal Service

0 Revenue Guarantee 0 Launch New Carrier

0 Start Up Cost Offset 0 First Service

0 Study Secure Additional Carrier

0 NewRoute

0 Low Fare Service

0 Subsidy

Other (specify)

Mileage award bonus

momam - Addtional catxicity

Page 1

SUMMARY INFORMATION

D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

H FullILS H Outer/Middle Marker Published Instrument Approach

H Localizer H Other (GPS, RNAV, VOR)

E. PROJECT COST:

Federal amount requested

Total local cash financial contribution:

Atrport funds:

N o n - m o r t funds:

State cash financial contribution:

Existing funds:

New funds:

Awport In-hnd contribution:

Other In-Kind contribution:

Total cost of project:

F. ENPLANEMENTS:

2000 134.118

2001 116.681

2002 123.638

$405.000

$45.000

$45.000

$0

$450.000

$5.000 (Program adrmnistration)

$5.000 (Program management and marketing)

$460.000

2003 126.020 2006 158.236

2004 142.631

2005 157.073

G. IS THIS APPLICATION SUBJECT T O 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)

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

Program is not covered by E.O. 12372.

0 b.

c.

Page 2

SUMMARY INFORMATION

H. IS T H E APPLICANT DELINQUENT O N ANY FEDERAL DEBT? (IF “YES”, PROVIDE EXPLANATION)

No 0 Yes (explain)

Page 3

PROPOSAL HIGHLIGHTS

P R O P O S A L HIGHLIGHTS

This Small Community Air Service Development Program grant application for the Walker Field Awport

Authority/Walker Field Airport, Grand Junction, CO meets the guidelines set out in Docket OST-2007-

27370. The Walker Field A q o r t Authority, the Airport sponsor, is requesting $405,000 in federal assistance

to fachtate the implementation of a $460,000 air service improvement initiative. The project’s goals are to

improve air service to a broad section of Grand Junction’s community traveling to destinations located in the

east, south, southeast, and south central US, mitigate the need to drive long distances to access air service and

competitive fares to these markets, and improve local access to the national air transportation system for this

isolated part of Colorado.

The plan to accomplish these goals are:

1. Secure additional seat capacity with an airline that has a

hub (Denver, Dallas/Ft. Worth, and Houston) located E

of Grant Junction.

Support the long-term success of the initiative with a

creative, three-part marketing program that specifically

targets the market’s barriers-to-entry.

Support alternate airline initiatives at other hub aqor t s

that accomplish the goals of t h s application.

2.

3.

:ast

This plan wdl reduce local air travelers’ need to dnve to Denver

International w o r t to access air service and competitive fares to

destinations located in the east, south, southeast, or south central

US by adding airline capacity to a hub airport located east of Grand

Junction. Increasing the supply of seats d have the added benefit

of decreasing airfares to destinations east of Grand Junction. Photo pmvided courtesy o f Denver InternationaLAiqofi

Page 4

PROPOSAL HIGHLIGHTS

AIR SERVICE ISSUE

Grand Junction is a relatively isolated community in west central Colorado approximately 250 d e s from

Denver. It is the economic center of the region and, importantly, the epicenter of Colorado’s energy

industry. This remote part of Colorado is highly dependent on air service for commerce and communication

with the rest of the country. Currently, eastbound air service does not provide the capacity needed to meet

robust demand. Eastbound service is focused on the Denver hub and, while service is provided by two

airlines, the service uses 19- and 37-seat aircraft, and load factors are extremely high. In short, high average

load factors severely restrict the availability of seats. The net result is that one out of every three passengers

in Grand Junction’s top 29 eastbound markets drives nearly five hours to Denver. It is an understatement to

say that Grand Junction is in need of additional eastbound air service/capacity. In this respect it is an

underserved community.

Consistent with the law of supply and demand, Grand Junction’s shortage of eastbound capacity and limited

competition have resulted in overpriced airfares. Average airfares for the year ending September 30,2006

were significantly higher than Denver in 23 of the top 29 eastbound markets. On a sample day in March

2007, published business fares in Grand Junction’s top 11 eastbound markets ranged from $94 to $264 higher

than comparable Denver fares. Given the capacity shortage, the fare comparisons are not surprising, but they

are a handicap to market growth and evidence that the Grand Junction market is overpriced.

A WELL DEFINED PLAN

The proposed plan includes a creative and comprehensive three-part marketing campaign to support

additional airline capacity to a hub airport located east of Grand Junction. Using the marketing program as

an incentive, the plan is to add airline service/capacity to hubs at Denver, Dallas/Ft. Worth, or Houston.

Frontier Airlines’ Bombardier 4400 service to Denver or American Airlines’ Embraer 145 service to

Dallas/Ft. Worth are the primary airlines and hubs targeted for this service. In recopt ion of the

uncertainties of the airline industry, the plan includes backup options at Houston and Denver.

With high demand and airline seats in short supply, Grand Junction’s air travelers have been trained to drive

to Denver to catch fights for eastern destinations. Strategdly, the eight-month marketing plan underwrites

the success of this initiative by focusing on breaking those travel habits. With heavy emphasis on capturing

Page 5

PROPOSAL HIGHLIGHTS

the business flyer, the marketing plan uses the power of a unique Meage Award Bonus Program (frequent

flyer) in concert with a Business Flyer Marketing Plan and traditional General Public Marketing Plan to

promote service improvements and stem passenger diversion.

BROAD COMMUNITY S U P P O R T

The Walker Field m o r t Authority, the Grand Valley

Economic Development Partners Committee, West Star

Aviation, and Willlams Energy have formed a public-private

partnershp in support of this application. The strength of

this public-private partnership is the Grand Valley Economic

Development Partners Committee. The 19 members of this

unusual, broad-based organization have a history of

collaborating and developing partnerships that benefit the

overall region. The public-private partnership created for

this grant application builds on the foundation of these relationships that span many years and numerous

projects. Non-axport sources will fund 10 percent ($45,000) of the $450,000 cash requirement of the

proposed plan. Walker Field Awport Authority and the Grand Valley Economic Development Partners

Committee will provide an additional $10,000 in the form of in-kind services to support this $460,000 project.

WiKamJ Energy

S T R O N G ABILITY TO IMPLEMENT P R O J E C T

Communications with the primary target airlines, Frontier Airlines and American Airlines, indicate an interest

by both carriers in serving the market. In Grand Junction’s favor is the volume of high-value, energy industry

traffic traveling between Grand Junction and cities in Texas and that both carriers have the right-size aircraft

to efficiently serve the market. It is expected that these carriers will complete their evaluations and make

service decisions in the near term, three to 12 months from the date of this application. From the

community’s perspective, the Grand Valley Economic Development Partners Committee is ready to launch

the jiv Service Support Program as soon as a grant is received and an agreement is reached with the carrier.

Page 6

PROPOSAL HIGHLIGHTS

MULTIPLE SECTORS OF THE COMMUNITY WILL BENEFIT

Grand Junction is the type of community/region that the US Congress had in mind when it created the Small

Community Air Service Development Program. It has a population of approximately 159,000 people and is

over 250 d e s from the larger metro areas at Denver and Salt Lake City. By any measure, it is a remote

location. Unlike other Colorado communities, Grand Junction’s economy is first business and second

tourism. Grand Junction is the regional center for the area providing healthcare, construction, education, and

business and professional services to neighboring areas in Utah and Colorado. Because of Grand Junction’s

isolated location and its role as a regional center, air service is critical to all aspects (business, education,

cultural, and government) of the community. The importance of air service to this region is compounded by

its vast energy resources (oil, gas, and coal). It is not a stretch to mention that these resources are also

important to our nation and that the proposed improvements support their development.

Page 7

AIR SERVICE BACKGROUND


The Air Service Background section provides a community overview includtng the airport catchment area and

economic and demographics of the catchment area. Extenuating factors that affected air service in the past

are discussed as well as a description of air service development efforts over the past five years. Information

on existing and historical air service is also covered.

WALKER FIELD AIRPORT’S CATCHMENT AREA

Walker Field Airport serves as the primary air service access point for the Grand Junction, CO metropolitan

area which is situated at the confluence of the Gunnison and Colorado rivers. The Grand Junction metro

area is surrounded by red rock canyons, mesas, and mountains. The spectacular scenery, rivers, and high

desert climate create nearly u n h i t e d outdoor recreational activities. Grand Junction is the largest regonal

center between Salt Lake City and Denver. The area is home to a major university, the gateway to one of the

world’s largest known deposits

of shale oil, as well as large

natural gas and coal deposits.

This combination of business,

education, and leisure activities

dnves a robust demand €or

comprehensive air service. Air

service improvements at

Walker Field Airport would

benefit a catchment area of

over 159,000. Exhibit 3.1

shows a map of the airport

catchment area which spans

9,633 square d e s .

EXHIBIT 3.1 AIRPORT CATCHMENT

Source: LUcrosoft MapPoint 2006

Page 8


COMMUNITY ECONOMICS/DEMOGRAPHICS

The Grand Junction area is growing rapidly. During the 1990s, the Grand Junction Metropolitan Statistical

Area (MSA) was the 38th (of 361) fastest growing in the nation. Over the last 10 years, the Grand Junction

MSA maintained a growth rate of almost three percent per annum remaining ahead of other MSAs such as

Salt Lake City and Albuquerque. Currently, the population in

is estimated that the MSA population d grow 38 percent

between 2005 and 2030 as in-migrants continue to be

attracted by economic activity and the area's superb quality

of life. During the same period, the mean household income

of residents grew almost four percent annually reaching

approximately $68,900 in 2005.

The local business base has been growing with the

improving demographics of the regon. Since the 1990s,

Grand Junction has received national acclaim for its thriving

business environment. In 2002, Grand Junction was named

fifth "Entrepreneurial Hot Spot: The Best Places in America

to Start and Grow a Company" by Cognetics, a location

research consultancy, and the Grand Junction MSA economy

was ranked 17th strongest in the nation.

Due to its vast fossil fuel energy resources and high

worldwide energy prices, oil, gas and coal extraction, mining,

and related construction have re-emerged as strong industry

sectors for Grand Junction in recent years. Companies like

Halliburton, Exxon, Monument Oil Company, and Loco,

Inc. are engaged in exploration, dnlhng, and production

operations. But energy is not the only active industry in the

area. Like many areas that depend on resources for their

economic well being, there has been a push to increase

economic dversity. However, unlike many communities,

the Grand Junction MSA is nearly 130,000. It

Local universi9

Page 9


Grand Junction is succeeding in diversifying its economic “portfolio”. From 1995 to 2005, the area’s

manufacturing base, which ranges from electronics to semiconductor equipment, advanced composites to

bicycle parts, as well as traditional manufacturing, was the ninth fastest growing in the nation.

As the largest community between Salt Lake City and Denver, Grand Junction is the regon’s center for

services. Health and medical services, construction, business and professional services provide resources to

neighboring areas in Colorado and Utah. Tourism is an important industry to the area, as visitors are drawn

year-round to the outstanding recreational activities and breathtahng scenery.

PROXIMITY TO A COMPETING AIRPORT

Grand Junction is approximately 265 miles west of Denver and 290 miles east of Salt Lake City. Although

these airports have service to hundreds of destinations and thousands of flights per week, the &stance and

complications associated with dming over high mountain passes makes driving to these airports to/from

Grand Junction impractical at best. Several nonhub auports such as Montrose and Eagle/Vail are located

within 100 d e s of Grand Junction; however, their lirmted service that is geared toward ski traffic offers little

benefit to the residents of Grand Junction.

EXHIBIT 3.2 PROXIMITY TO A COMPFTING AIRPORT

Source: Microsoft MaDPoint 2006

Page 10


FACTORS AFFECTING AIR SERVICE

Air service at Walker Field Airport is primarily affected by three factors; geographic location, modest market

size, and aircraft size/economics. The modest market size is insufficient to support point-to-point service

and h i t s service to the Denver, Phoenix, and Salt Lake City hubs. Westbound travelers use existing Salt

Lake City service 215 d e s to the west/northwest and Phoenix 440 miles to the southwest. Both hubs

provide service to the entire West Coast, but circuity limits the competitiveness of service to Southern

California via Salt Lake City and to northern California and the Pacific Northwest via Phoenix. The Denver

hub 210 air miles to the east is the gateway to the eastern two-thirds of the country. The nearest alternative

major hubs to the east are Dallas (770 d e s ) , Minneapolis (880 miles), Houston (980 d e s ) , and Chicago

O’Hare (1,100 d e s ) . Aircraft capable of operating these &stances have larger seating capacities and

challenge the market’s ability to support service frequency. Eastbound market demand to the Denver hub

poses the opposite problem. While 210-mile flights are costly in any type of aircraft, larger aircraft

commensurate with demand are very costly to operate over the short fight segment.

PAST AIR SERVICE DEVELOPMENT EFFORTS

Over the past several years, Walker Field w o r t

has engaged in an aggressive air service

development program. Table 3.1 shows the

Airport’s air service development efforts over the

past several years. Market analyses, airfare

monitoring studies, and pro formas for a i rhe

service have been completed. In 2006, the

Axport undertook a joint marketing campaign

with Allegiant Air. The m o r t provided

Allegiant with marketing support, and Allegant

began twice weekly Walker Field m o r t service

in July 2006. Also in 2006, the Alrport submitted

a service proposal to Frontier h l i n e s in response

to Frontier’s Request for Proposals (RFP) that

was sent to communities in October 2006. The

TABLE 3.1 PAST AIR SERVICE DEVELOPMENT EFFORTS

Page 11


proposal is currently under consideration by Frontier. This grant application represents the Airport’s first

attempt at securing air service development funds under the Small Community Air Service Development

Program.

CURRENT AIR SERVICE

Walker Field Alrport is served by five marketing carriers: Allegtant Air, Delta Atr Lines, Great Lakes Airltnes,

United Airlines, and US h a y s . Nonstop commercial service is provided to four cities: Denver, Las Vegas,

Phoenix, and Salt Lake City. Predominantly, service is operated by turboprops, although some markets have

regional jet or narrow-body jet service. In A p d 2007,4,749 departing weekly seats were available on 128

weekly departures. Table 3.2 provides the current air service available at Walker Field Airport.

TABLE 3.2 CURRENT AIR SERVICE

Source: .\I’GDat \prd 17, 2007

Page 12


HISTORICAL AIR SERVICE

Over the past 10 years, Grand Junction has

had regular service to Denver, Phoenix, and EXHIBIT 3.3 HISTORICAL OUTBOUND SEATS/DEPARTURES

Salt Lake City. In July 2006, Allegiant Air

began service to Las Vegas two times per

week. Historically, the bulk of Walker Field

Airport’s service has been provided by

turboprop aircraft to Denver.

Unfortunately, Grand Junction’s departures

and seats have decreased over time.

Exhibit 3.3 provides a summary of annual

departures and seats from 1997 through

2006 and projected numbers for 2007.

Calendar year 2006 departures were

approximately 22 percent below 1997, and

300,000

250,000

c-l m 200,000

3 150,000

u m

c d

100,000

50,000

0

1997 1999 2001 2003 2005 2007

Calendar year

-Outbound seats -Departures _ _

Source: Back Aviation Solutions; APGDat seats were 13 percent below 1997. From

1997 to 2000, the service level at Walker

Field Airport was essentially constant unul EXHIBIT 3.4 WALKER FIELD AIRPORT ENPUNEMENT ACT~VI-,-Y

the cuts following September 11,2001.

Since then, departures and seats increased

until 2006 when Delta Air Lines upgraded

their service from 30-seat turboprops to 50-

seat regional jets but reduced frequency.

For 2007, departures and seats are expected

to increase as Delta added another d d y

flight to Salt Lake City in January.

180,000

160,000

140,000

Y m 120,000

g 100,000

80,000

60,000 pi

Exhibit 3.4 shows the number of

enplanements for Walker Field m o r t

from 1997 through 2006. Enplanements

were stable from 1997 through 2000. As

-Enplanements -Load factor

Source: GJT records; Data Base Products, Inc

40,000

20,000

0

1997 1999 2001 2003 2005

9.000

7,500

6,000 9 5

4,500 !3

3 3,000 2

4

1,500

0

cl

30%

20%

10%

0%

Page 13


was the case with most airports, enplanements

decreased significantly in 2001. However,

recovery began almost immediately and, by

2004, enplanements at the Arport had

surpassed the hgh set in 1999. As a result of

the growth in available seats provided by

Allegiant Air and the upgrade to jet aircraft by

Delta AIL- Lines, enplanements grew slightly in

2006 despite fewer available departures and

outbound seats compared to 2005. The

enplanement growth shows that recent

expansion by air carriers in the market has been

well received and indicates that new service d

also be met with a positive response.

Page 14

AIR SERVICE ISSUES

AIR SERVICE ISSUES

Grand Junction is the poster child for an underserved/overpriced market, particularly eastbound. Currently,

the demand situation eastbound is such that lunited capacity can be purchased at very high fares. Though

discount fares are published, only a small number of discount seats are offered since the tight capacity

situation requires minimal numbers of dscount fare passengers to achieve high load factors. Additional

capacity is needed to Denver and/or an additional hub to the east to better align capacity with eastbound

demand. Additional capacity will address the underserved situation while creating an environment whereby

fares to the east d moderate to lower more reasonable and competitive fare levels. The additional capacity

resulting in more competitive fares d create a situation conducive to more passengers electing to use Walker

Field Auport’s air service rather than driving to Denver.

u NDERSERVED MARKETS

The Grand Junction catchment area’s status as an underserved market is best dustrated by examining its

traffic in nonstop market segments over the past two years. The primary eastbound routing via Denver

produced a 76 percent load factor on United Airlines and a 69 percent load factor on Great Lakes h l i n e s in

2006. Some eastbound traffic flowed over Salt Lake City which had a 75 percent load factor in 2006. Table

4.1 summarizes these results:

TABLE 4.1 AIRLINE PERFORMANCE

Source: Data Base Products, Inc.

In the critical eastbound Denver market, United Airlines’ service averages 37 seats per trip, and Great Lakes

Airlines averages 19 seats per trip. Given the 2006 Denver load factors, one addtional passenger would

Page 15

AIR SERVICE ISSUES

increase United’s load factor to nearly 80 percent and Great Lakes’ load factor to nearly 75 percent. Load

factors this high are seldom seen on aircraft of this size.

The consequences of this eastbound capacity situation is shown in Table 4.2 which compares passenger

diversion from Walker Field Airport to Denver in eastbound connecting markets with westbound connecting

markets for Grand Junction’s top 50 true markets excluding the Denver, Phoenix, and Salt Lake City hubs.

TABLE 4.2 TRUE MARKET

Source: Passenger Demand Analysis, Mead & Hunt, Inc.

One out of every three Grand Junction catchment area passengers in the 29 largest eastbound markets drives

to Denver. Grand Junction eastbound markets are clearly underserved and, gmen load factor levels, the

situation d only worsen unless the market obtains addltional eastbound capacity.

HIGH AIRFARES

Grand Junction’s fares will of necessity be higher than hub fares; however, the fare spread is excessive.

Grand Junction’s domestic average fares for the year ended September 30,2006 were $219 compared to an

average Denver domestic fare of $157. An overall average fare can sometimes be misleading since it is a

composite of trip length, type of fare (business and leisure), and the mix of fare use. However, a review of

the fare spread between Denver’s average fares and Grand Junction’s average fares in the top 47 eastbound

and westbound connecting markets revealed major disparities, particularly in eastbound markets where 23 out

of 29 markets had significant fare spreads. The fare relationships are summarized in Table 4.3 (next page).

Page 16

AIR SERVICE ISSUES

TABLE 4.3 AIRFARE COMPARISON

Source: Data Base Products, Inc. - YE 9/30/06

In an effort to better understand its market, Grand Junction has been monitoring how their published fares

compared with Denver’s published fares for the November 2006 to March 2007 period. Business fares were

defined as a fare with no Saturday night stay required, no more than a one-day minimum stay requirement,

may be non-refundable, and may require a seven-day advance purchase. Leisure fares represented the lowest

published airfare excludmg time sensitive sale airfares. The most recent fare comparison (March 2007)

revealed that business fares in the top 11 eastbound connecting markets ranged from $104 to $307 higher

than Denver fares in these markets while leisure fares ranged from $37 to $155 higher. Table 4.4 shows a

comparison between Denver and Grand Junction business fares for Grand Junction’s top 11 eastbound

connecting markets based on a March 2007. sample day.

Source: Apollo/Galileo CRS - March 21,2007

While fare comparisons are not always precise, there is little doubt that the Grand Junction market is

overpriced aided and abetted by a lack of capacity in eastbound markets.

Page 17

ACTION PLAN

ACTION PLAN

The Action Plan proposed by Walker Field Aqort’s public-private partnership will achieve the goals

described in this application by increasing airline capacity and lowering ticket prices to markets located east of

Grand Junction. This Action Plan section provides a detailed description of project goals and a plan for

attaining those goals. In addltion to the Action Plan, this section identifies self-sufficiency of the service as an

integral part of the community’s goals and provides a description of how the community plans to continue

with the project if it is not self-sustaining after the grant award expires. A detded description of the fundmg

necessary for implementation of the Action Plan, includtng federal and non-federal contributions, is included.

PUBLIC-PRIVATE PARTNERSHIP

The Walker Field m o r t Authority is the

owner/sponsor of Walker Field w o r t . The

organizations and companies listed in Table

5.1 have formed a public-private partnership

(refer to community support letters in

Appendix A). Collectively, this partnership is

committed to completing the outlined Action

Plan.

A key participant in the public-private

partnership is the Grand Valley Economic

Development Partners Committee which is

an existing committee that includes both

public and private members that work

together for the overall economic benefit of

the Grand Valley (Grand Junction and

surrounding communities). Over the years,

this broad-based committee has worked

together on numerous projects. Its members

are listed in Table 5.2.

TABLE 5.2 GRAND VALLEY ECONOMIC DEVELOPMENT PARTNERS COMMIITEE

Page 18

ACTION PLAN

The Walker Field A q o r t Authority will execute all federal grant offers, process all associated reimbursement

requests, and oversee grant adrmnistration. Members of the Grand Valley Economic Development Partners

Committee will contribute non-aqort cash to the project and in-kind services. These partners have a history

of collaborating and developing partnerships that benefit the overall region. The strength of this public-

private partnership is that it builds on the foundation of relationships that span many years and numerous

past projects. Table 5.3 describes the responsibhties of the members of the public-private partnership.

TABLE 5.3 PUBLIC-PRIVATE PARTNERSHIP RESPONSIBILITIES

Grand Valley Economic

PROJECT GOALS

The project goals are to:

1. Improve air service to all sectors of the population served by Walker Field w o r t that travel to or

from the east, south, southeast, and south central US

Mitigate the need to drive long distances to access air service and competitive fares to destinations in

these regions

Improve regional access to the national air transportation system

2.

3.

The Action Plan outltned herein will support a burgeoning energy industry, local businesses, universities, and

government employees. Improved access to the national air transportation system and, specifically, improved

access to the east, south, southeast, and south central regions is vital to local businesses and, importantly, to

the development of energy resources in Western Colorado.

Page 19

ACTION PLAN

PROPOSED AIR SERVICE

As detailed in the Air Service Issues section, Grand Junction’s core

problem is that airline capacity is dramatically lower than local demand,

and high ticket prices are an associated result. To accomplish the goals

of this application, the plan is to add airline capacity to a connecting

hub located east of Grand Junction. The following are target airlines

and hubs for adding more seats (Exhibit 5.1):

Frontier Airlines’ service to Denver (DEN)

American h l ines ’ service to Dallas (Dm Alternately, Continental Airlines’ service to Houston (IAH) or

supplemental service via United Airlines to Denver (DEN)

EXHIBIT 5 . 1 PROPOSED R O U T E MAP

FR o NTI ER AIRLINES (G JT-D E N)

Frontier h l ines ’ service to Denver is a viable TABLE 5.4 F R O ~ I E R AIRLINES’ EASTBOUND

option for Grand Junction. Their planned

fleet of 76-seat, Bombardier 4400 aircraft

offer the needed seats at a low operating cost.

Equally important, Frontier’s eastbound

connecting opportunities at Denver provide

the destinations needed by Grand Junction.

Reference Table 5.4, from 1996 through 2006

Grand Junction’s orign and destination traffic

grew over 83 percent for the 18 destinations

indicated. All of these cities are located east

of Grand Junction and all are served by

Frontier from Denver.

MARKFTS

Source: Data Base Products, Inc.

Page 20

ACTION PLAN

Reference Table 5.5, the performance forecast

associated with two roundtrips per day indicates that

the service will produce an annual system profit of $2.3

d o n in a mature market. The complete Frontier

Airlines’ forecast is included in Appendix B. Clearly,

Frontier is an excellent opportunity for obtaining

additional capacity and achieving the goals of this grant

application. Grand Junction is one of several Rocky

Mountain communities that Frontier is considering for

Bombarler Q400 service over the next 18 to 24

months. Early dlscussions with Frontier executives

inlcate a sincere interest in the Grand Junction market.

TABLE 5.5 FRONTIER AIRLINES’ PERFORMANCE INDICATORS

Source: Mead & Hunt, Inc.

AMERICAN AIRLINES ( G J T - D W

An excellent option for additional eastbound capacity is American Airlines’ service to Dallas/Ft. Worth

International A q o r t . The bonus to Grand Junction’s air travelers is that this hub is located in the heart of

the energy industry; a hlgh-demand area for Grand Junction’s booming energy sector. Likewise, Dallas/Ft.

Worth offers a large number of connecting flights to destinations in the east and southeastern US. American

would use the 50-seat Embraer 145 regional jet to serve the market. Preluninary forecasts indicate that two

roundtrips per day to Dallas/Ft. Worth are supportable. In late summer 2007, American and representatives

from Walker Field w o r t wdl meet to discuss Grand Junction-Dallas/Ft. Worth service with a potential start

date of spring 2008.

AIR SERVICE SUPPORT PLAN

The shortage of airline seats in Grant Junction is not a new problem. It has been an underserved market for

most of its history and, not surprisingly, local air travelers have a habit of driving to Denver for air service.

Grand Junction’s red-hot energy industry and its associated demand for flights have exacerbated the problem

to the point that many travelers in and out of Grand Junction no longer attempt to book flights locally. They

assume fights are full and dnve to Denver. An indicator of the magnitude of the problem is that Denver is a

difficult five-hour drive over the Rocky Mountains, and the trip can be especially challengng in the winter.

Page 21

ACTION PLAN

For the airline that adds capacity in Grand Junction, the number one barrier-to-entry is existing travel habits;

people driving to Denver. The carrier is at risk during the start-up period, and the rate of absorption of the

added capacity by the market will depend on breahng those habits and making the market aware that things

have changed and airline seats are available. Also, in smaller markets like Grand Junction the business flyer as

opposed to the leisure flyer is the primary customer. Business flyers are less price sensitive, more accepting

of smaller aircraft, and fly locally for convenience. Accordingly, efforts to change existing travel habits must

target Grand Junction’s business flyers.

Without community involvement and support, considering

the hurdles discussed above, the carrier that adds capacity

in the Grand Junction market will have a protracted ramp-

up period that translates to added risk. However, the

carrier will not spend the dollars or effort to address the

barriers-to-entry. To reduce the airline’s ramp-up period

and, most important, underwrite the long-term success of

EXHIBIT 5.2 AIR SERVICE SUPPORT PLAN ELEMENTS

the service, Grand Junction’s public-private partnership

has conceived a creative, integrated Air Service Support

Plan. Its focus is two-fold: engage Grand Junction’s

business community in reducing the ramp-up period for

the improved service and alter air travel habits in the

market. The three elements of this plan, diagramed in

Exhibit 5.2, include a Meage Award Bonus Program

used in conjunction with General Public and Business Flyer Marketing components.

MILEAGE AWARD BONUS PROGRAM

The hrpor t will purchase approximately 10 d o n award mdes/frequent flyer miles from the airline that

adds additional capacity (no less than 70-seats Der dav) to a hub east of Grand Junction. At a typical cost of

2.5 cents per d e , the total value of the program is $250,000. Managed by the Grand Valley Economic

Development Partners Committee, the program will award 5,000 frequent flyer miles (each) to 2,000 people.

To be eligible for the award, each person d (1) need to provide proof of purchase of travel on the target

Page 22

airline within the fast four months of improved service, and (2) be a member (existing or new) of the target

airline’s mileage award program. Use of the Mileage Award Bonus Program has the following strategic

benefits:

0

Provides a marketing “hook”

Promotes use of the service improvements during the start-up period

Provides an incentive to break the habit of driving to Denver for air service

Provides a mechanism to reach the high-value business flyer

Vests travelers in the airhe’s mileage award program

Provides the a i rhe with up-front cash that is not a subsidy

GENERAL PUBLIC MARKITING

Successfully countering the propensity of Grand Junction’s travelers to drive to Denver to catch flights

requires a well coordmated, aggressive marketing plan. It has to break existing travel habits. This plan

proposes to use paid advertising and promotion h k e d with the Mileage Award Bonus Program to inform

Grand Junction’s general public of air service improvements. The Meage Award Bonus Program will add an

element of “excitement” to the marketing message that will stimulate interest and community involvement.

Nothing creates interest like giveaway programs, and a i rhe d e s are a tried-and-true marketing tool that is

used by a wide array of vendors to promote sales.

Managed by the Grand Valley Economic Development Partners Committee, the $200,000 marketing budget

will fund an eight-month, multi-media program. Promotion will begin 60-days prior to the service

improvement date and continue for the next eight months. A significant portion of the budget will be

expended during the first 90-days of the campaign; however, the total advertising and promotion program is

planned for eight months. The marketing message will focus on the features and benefits of the new service,

especially the convenience and time savings of using Walker Field Airport. The use of this message along

with promotion of the Mileage Award Bonus Program will effectively reach the general public and specifically

the high-value business flyer.

Page 23

ACTION PLAN

BUSINESS FLYER MARKITING

The Grand Valley Economic Development Partners Committee through its

member business organizations (Grand Junction Chamber of Commerce, Grand

Junction Economic Partnership, Grand Junction Visitor and Convention Bureau,

and others) will promote air service improvements extensively to its members

and the larger business community. Each organization d use events,

newsletters, emails, and md-outs to promote air service improvements and the

Mdeage Award Bonus Program. Organization events will be used to enroll

members in the carriers mileage awardlfrequent flyer program. Use of these

business oriented organizations assures that the message and program targets the

high-value airline customer, the business flyer.

Administration and financial oversight of the h Service Support Plan d be the responsibhty of the Walker

Field Airport Authority. The Grand Valley Economic Development Partners Committee will oversee the

planning and execution of the marketing program. In-kmd services for the Walker Field Airport Authority

and the Grand Valley Economic Development Partners Committee are estimated to be $5,000 each.

PROJECT CONTINUATION/SUSTAINABILI'T~(

If at the end of the fEst eight months of service the airline has not achieved a minimum of a 60 percent

average load factor, the Walker Field A q o r t Authority will extend the air service improvement marketing

campaign for an addltional four months. The Walker Field Airport Authority will commit $40,000 for this

purpose. Grand Junction's business community and the Walker Field Airport Authority understand the

difficulties associated with profitably operating air service to the Grand Junction market and the importance

of mahng new service ventures successhl. In the event adjustments are needed, these groups are committed

to doing '"whatever it takes".

ALTERNATE PLAN

If the Walker Field A q o r t Authority fails to secure a i rhe capacity to eastbound destinations, an alternate

plan will be pursued to achieve the community's goals. The airline and hub alternatives are:

Continental Airlines' service to Houston (IAH)

Page 24

ACTION PLAN

0

Additional airline seats to Denver via United Airlines

Other service options that may surface

CONTINENTAL AIRLINES (GJT-IAH)

George Bush Intercontinental Alrport provides the needed

connecting fights to destinations in the east and

southeastern US and has the advantage of being the

epicenter of the energy industry. Continental h l i n e s

operates it fleet of Embraer 145 aircraft at Houston that are

the right size for the Grand Junction market, and the stage-

length is acceptable.

UNITED AIRLINES (GJT-DEN)

United Airltnes is currently serving the Grand Junction-

Denver market with 30-seat Embraer 120,37-seat

Bombarder 200, and 19-seat Beechcraft 1900 (Great Lakes

Airlines) aircraft. For United to increase capacity in the

market, it would require an upgrade from smaller turboprops

to 50-seat Canadair Regional Jet 200 aircraft. Unfortunately,

the short 21 1 - d e stage length is economically problematic

for the larger regional jet. Although the Canadair Regional

Jet 200 would be an attractive aircraft, operating costs may

dctate higher ticket prices, contrary to the goals of this

application. However, Grand Junction’s acute need for

additional capacity outweighs its need for low ticket prices

and the added seats would be absorbed by the market.

Page 25

ACTION PLAN

FUNDING

Walker Field w o r t Authority is seehng $405,000 in US Department of Transportation fundmg to be used

for an air service improvement program to mitigate a portion of the participating airlme’s risk associated with

improving air service. The community intends to participate in the fundmg of the program by contributing a

portion of the air service marketing budget (cash) and program adrmnistration (in-hnd services). The Walker

Field Airport Authority is f a d a r with the grant application guidelines and understands that grant funds are

provided on a reimbursement basis. Table 5.6 provides the Action Plan budget broken down by element

and sources of fundmg. The community wdl fund 12 percent of the total proposed air service program.

Non-airport fundmg sources includmg the Grand Valley Economic Development Partners Committee, West

Star Aviation, and Wdliams Energy wdl provide 10 percent ($45,000) of the cash requirement and 11 percent

of the funding for the total program including in-hnd services.

TABLE 5.6 ACTION PLAN BUDGl3

1__1_

Page 26

SCHEDULE/MONITORING

SCHEDULE/MONITORING

Considering the ever-changing nature of the airline industry, it is difficult to precisely identify when the goals

of the Action Plan will be realized. Accordmgly, the public-private partnership has developed a realistic

schedule to achieve the goals of this proposal. Adrmttedly, there is extra time built in to the schedule, but the

intent is to aggressively execute the Action Plan. This section identifies critical milestones to be achieved by

the public-private partnership. A monitoring program is also provided to track the performance of the

service improvements and progress of the project.

MILESTONES

The following milestones are proposed to track the progress of this air service initiative:

SERVICE START-UP

By July 2008: The public-private partnership d negotiate with Frontier Airlines and American Airlines for

the planned service. The schedule is to reach an agreement and begin service with one of these carriers prior

to July 2008.

GENERAL PUBLIC MARKETING

Implement 60-days prior to the service start date: Completion of the marketing plan associated with all the

elements of the marketing program will be completed 90-days prior to start of service. The plan will use the

Mileage Award Bonus Program as a means to stimulate interest in the service. The timing of the marketing

effort will, to a large degree, depend on how much lead time the airline gives the community on the service

announcement.

BUSINESS FLYER MARKETING

Implement 60-days prior to service start date: Business organizations (Chambers of Commerce, Visitors and

Convention Bureau, etc.) that are members of the Grand Valley Economic Development Partners Committee

will plan and execute a coordnated promotion program to their respective members. The Mtleage Award

Bonus Program will be a key element of the program.

Page 27

SCHEDULE/MONITORING

MILEAGE AWARD BONUS PROGRAM

Service start date plus 120 days (or sooner): Award d e s will be distributed to travelers who fly on the airline

that provides the new service within the first 120 days of service. Distribution of award miles will be on a

first-come-first-serve basis, and the program will end when all bonus d e s have been distributed.

ALTERNATE AIR u N E

April 2008: If an agreement with one of the two primary carriers is not reached prior to April 2008, the

public-private partnership will begm negotiations with alternate airlines or other airlines for the desired

service.

MONITORING PROGRAM

The performance of the air service initiatives, project budget, and effectiveness of the marketing campaign

will be tracked. Timely trachng of some performance indicators will require the cooperation of the partner

airline. The following service performance indicators will be tracked by Walker Field w o r t Authority:

Monthly - h c r a f t departures, cancellations, seats/capacity, passengers per flight, load factors by

flight

Monthly for the first six months of service - Monitor published airfares by category (walk-up,

business, leisure) for the top 20 eastbound destinations

Quarterly for the first year of service - Monitor average airfares for the top 20 eastbound

destinations and compare with the previous two years on a quarter by quarter basis

After the first 12-months of service, the Airport will complete a passenger diversion study to

measure the diversion of travelers to Denver International w o r t

At the end of the first year of service, compare origin and destination passengers for the top 20

eastbound destinations with the previous two years

Page 28

APPENDIX A

I COMMUNITY SUPPORT

APPENDIX A. COMMUNITY SUPPORT

Appendix A includes letters of support for Walker Field w o r t Authority’s Small Community Atr Service

Development Program grant application. Support letters were submitted by public-private partners and other

members of the Grand Junction community. The letters of support are included on the following pages of

this Appendix A.

Page 29

APPENDIX A COMMUNITY SUPPORT - GRAND VALLEY ECONOMIC

DEVELOPMENT PARTNERS COMMITTEE

April 25,2007

Aloha Ley Associate Director, X-50 US. Department of Transportation 400 7th Street, SW, Room 6401 Washington, DC 20590

Subject: Small Community Air Service Development Program Docket OST-2007-27370 Grand Junction, CO

Dear Ms. Ley,

As the Chairman for the Economic Development(ED) Committee in Grand Junction, Colorado and a representative of many air travelers, the ED Committee wholeheartedly supports the air service proposal detailed in the subject Small Community Air Service Development Program grant application. Unfortunately the current commercial service now provided at Walker Field Airport does not meet the needs of the area's travelers. Airline seats are in short supply and ticket prices are frequenlly high. This situation is especially difficult for Grand Junction. Because our community is a long distance from other metropolitan centers or airports, local air service pIays a critical role in every aspect of our community.

'

Spurred by renewed interest in the regions vast energy resources, Grand Junction and the large geographic region served by the Walker Field Airport are experiencing unprecedented growth. Demand for air service is up and growing, but there is a shortage of capacity to hub airports located east of Grand Junction that can flow passengers to the East, Southeast, and South- Central part of the country, especially Dallas and Houston. While the current air service at Walker Fields Airport provides moderate connectivity, many local travelers must drive to Denver International Airport to access flights.

Because of our geographic isolation our community has a long history of involvement in air service development initiatives. However, our air service needs are greater now than at any time in the past and the Small Community Air Service Development Program provides a welcome opportunity to realize much needed gains. As you carefully consider our grant application please do not hesitate to call if I can be of assistance.

Sincerely,

/--T

Diane Schwenke 2007 Chairman of ED Partners

Page 30

APPENDIX A

325 E. Aspen Suite 155 Fruita CO 81521

9701858-3663 970/858-0210 FAX

E Mail [email protected]

Web Site fruita.Org

City Manager's Office 970/85&3663

City ClerklEnance 970/858-3663

COMMUNITY SUPPORT - GRAND VALLEY ECONOMIC DEVELOPMENT PARTNERS COMMITTEE

April 19,2007

Andrew Steinberg Assistant Secretary for Aviation 81 International Affairs, X-1 US. Department of Transportation 400 7th Street, SW, Room 10228 Washington, DC 20590

Sublect: Small Community Alr Service Development Program Docket OS-2007-27370 Grand Junction, CO

Dey Mr. Steinberg,

As the City Manager of Fruita, Colorado and a representative of many frequent air travelers, the City of Fruita wholeheartedly support the air service proposal detailed in the subject Small Community Air Senrice Development Program grant application. Unfortunately the current commercial servlce now provided at Walker Field Airport does not meet the needs of the area's travelers. Airline seats are in short supply and ticket prices are frequently high. This situation is espedally diilcult for the Grand Valley, served by Walker Field. Because our community Is a long distance from other metropolitan centers or airports. local air sewice plays a critical rde in every aspect of our community, especially high quality economic development.

Spurred by renewed interest In the regions vast energy resources, Fruita and the large geographic region served by the Walker Field Airport are experiencing unprecedented growth. Demand for air service Is up and growing, but there is a shortage of capaoity to hub airports located east of Walker Field that can flow passengers to the East, Southeast, and Swth-Central part of the country, especially Dallas and Houston. While the current air service at Walker Fields Airport provides moderate connectivity, many local travelers must drive to Denver International Airport to access flights.

Because of our geographic isolation our community has a long history of involvement In air service development Initiatives. However, our air service needs are greater now than at any time in the past and the Small Community Air Service Development Program provides a welcome opportunity to realize much needed gains. As you carefully consider our grant application please do not hesitate to call if I can be of assistance.

City Manager

Page 31


http://fruita.Org

APPENDIX A

I COMMUNITY SUPPORT - GRAND VALLEY ECONOMIC DEVELOPMENT PARTNERS COMMITTEE

April 17, 2007


Subject: Small Community Air Service Development Grant Application Docket OST-2007-27370 Grand Junction, CO

Dear Ms. Ley:

The Grand Junction Chamber of Commerce is pleased to submit this letter of support for Walker Field Airport Authority’s grant application to the US Department of Transportation for funding of its program to improve air service options. The Grand Junction Chamber of Commerce recognizes the importance of commercial air service to the economy of the region through access for visitors and, most important, to support area businesses, organizations, and institutions.

We stipulate that a “public-private” partnership has been formed between the Walker Field Airport Authority and the Grand Junction Chamber of Commerce for the purpose of supporting air service improvements. This air service initiative has our full support. Where small community air service initiatives are concerned, it is partnerships like this that can make a difference. In that regard, if you decide to fund this application, we have every confidence that the program will have the full support of the Grand Junction community.

We are pleased to have the opportunity to participate in this grant application process and assure you that we will work diligently to insure the long-term success of this improvement in air service to our community.

Sincerely,

@- Diane Schwenke PresidentlCEO

Page 32

APPENDIX A

I COMMUNITY SUPPORT - GRAND VALLEY ECONOMIC DEVELOPMENT PARTNERS COMMITTEE

economic GRAND JUNCTION P A R T N E R S H I P

April 13, 2007



Dear Ms. Ley:

The Grand Junction Economic Partnership is pleased to submit this letter of support for Walker Field Airport Authority's grant application to the US Department of Transportation for funding of its program to improve air service options. The Grand Junction Economic Partnership (GJEP) recognizes the importance of commercial air service to the economy of the region through access for visitors and, most important, to support area businesses, organizations, and institutions. GJEP is a 501~6 economic development organization and is supported by the four local governments in Mesa County and over 200 businesses. As the economic development organization that assists business with expansion and relocation in Mesa County we find the current level of air service at Walker Field Airport inhibits our efforts to grow our local economy. The high fares, difficulty in booking seats, and a lack of available direct flight destinations has directly affected our ability to recruit and grow companies in the area

We stipulate that a "public-private'' partnership has been formed between the Walker Field Airport Authority and the Grand Junction Economic Partnership for the purpose of supporting air service improvements. This air service initiative has our full support. Where small community air service initiatives are concerned, it is partnerships like this that can make a difference, In that regard, if you decide to fund this application, we have every confidence that the program will have the full support of the Grand Junction community.

We are pleased to have the opportunity to participate in this grant application process and assure you that we will work diligently to insure the long-term success of this improvement in air service to our community.

Sincerely,

Ann Driggers President & CEO

122 North 6th StreetGrand Junclion,C081501 P 970.245.4332 I8GQ.621.6683 F 970.245.4346 [email protected] wwu/.gjep.org

Page 33


http://wwu/.gjep.org

APPENDIX A COMMUNITY S U P P O R T - LOCAL BUSINESSES

April 10,2007

Aloha Ley Associate Director, X-50 US. Deparbnent of Transportation 400 7th Street, SW, Room 6401 Washington, DC 20590

Subject Small Community Air Senrice Development Grant Application Docket OST-2001-n370 Grand Junction, CO

Dear Ms. Ley:

Alpine Bank strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it diffcult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much ofthe rest of Grand Junction's business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.

As you evaluate the merits of this application, I encourage you to consider how critically important air service is to this isolated part of the country. Our transportation alternatives to local air travel include distances of 250 miles or more by car to airports at Denver or Salt Lake City. Frankly, this is not a viable option for our employees or our customers. Our business requires reasonable access to air service at Walker Field Airport which is why we support this application and will take every opportunity to use the resultant air service improvements.

We are pleased to have the opportunity to support this grant application.

Sincerely,

Norm Franke Regional President

Page 34

APPENDIX A COMMUNITY S U P P O R T - LOCAL B U S I N E S S E S

AmericanNationalBanli’ Member Sfurm Financial Group

April I O , 2007



Dear Ms. Ley:

American National Bank strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much of the rest of Grand Junction’s business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.



Sincerely, .

Brad Krebill 24 Road President

- 4spen I Avon c Bouldcr s Cmbondalc ei ColnradoSprings I Denvcr 8 Eagle I Edward

Fmiia Glenwood Springs (I Grand Junction e Mountain Village td Riflc 8 Telluride www.nnbbank.com e Member FJXC

Page 35

http://www.nnbbank.com

APPENDIX A

1 COMMUNITY SUPPORT - LOCAL BUSINESSES

I___ Bank of Colorado G R A N D I U N C T I Q N Aff i l ld te of Pinnacle Banmrp

April 12,2007

Aloha Ley Associate Director, X-50 U.S. Department of Transportation 400 7th Street, SW, Room 6401 Washington, DC 20590


Dear Ms. Ley:

Bank of Colorado strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much of the rest of Grand Junction’s business community, our business depends on access to air service to continue to prosper and the current air service situation is

’ untenable.


We are pleased to have the opportunity to support this grant application. /-

Sincerely, ,c &*> I E. Chris Launer ’ Branch President

2779 Crossroads

Colorado 8 1506

200 Grand Avenue 2903 I: Road P.O. Box 968 Grand Junction Grand Junction

Colorado 81 504 Grand )unction Colorado 81 502 Tel (970) 245-1 600 Tel (970) 245-1600

Fax (970) 263-2101 TcI (970) 245-1600 Fax (970) 2459538

Page 36

APPENDIX A

For d l yorrr ICE needs!

April 90,2007

COMMUNITY S U P P O R T - LOCAL BUSINESSES



Dear Ms. Ley:

Big Nugget Supply Inc. strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. Many residents and visitors must drive to Denver or Salt Lake City to catch flights. Our business depends on adequate access to air service to continue to prosper and the current air service situation is flawed.

It is of significant importance that air service is improved in this somewhat remote location. Our transportation alternatives to local air trave! include distances of 250 miles or more by car to airports at Denver or Sait Lake City. This is not a practical or economical option for our employees or our customers. Our business demands reliable access to local convenient air service at Walker Field Airport. We would like to voice our strong support for this application and will take every opportunity to use the resultant air service improvements.


Sincerely,

David Hibberd Owner Big Nugget Supply lnc.

(970) 858-7487 1-800-3444581 * 1646 Highway 6 & 50 P.O. Box 551 Fruita, CO 81521 Page 37

APPENDIX A COMMUNITY S U P P O R T - LOCAL B U S I N E S S E S

FCI Constructors, Inc.

April 12,2007


8ubje& Small Community Atr Service Development Grant Application Docket OST-2007-27370 Orand Junction, CO

Dear Ms. Ley:

FCI Constructors, Inc. strongly supports the subject grant application intended to improve air seMce from Walker Field Airport. Nigh locat demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much of the rest of Grand Junction’s business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.

As you evaluate the merits of this application, 1 encourage you to consider how critidly important air service is to this isolated part of the country. Our transportation alternatives to local air travel include distances of 250 miles or more by car to airports at Denver or Salt Lake City. kankly, this is not a viable option for our employees or our customers. Our business requires reasonable access to air service at Walker Field Airport which is why we support this application and will take every opportunity to use the resultant air service improvements.

W e are pleased to have the opportunity to support this grant application.

Sincerely, FCI ConStnrCtOrs , Inu.

@7- Ed Forsman President

P.O. Box 1767 Grand Junction, CO 81502 (970) 434-9093 (970) 434-7583 Fax

Page 38

APPENDIX A

I COMMUNITY SUPPORT - LOCAL BUSINESSES

GRAND VALLEY POWER

P.O. Box 130, 2727 Grand Avenue Grand Junction, Colorado 81 502-0190 (970) 242-0040 FAX (970) 242-0612

April 16, 2007



Dear Ms. Ley:

Grand Valley Rural Power Lines, lnc. strongly supports the subject grant application intended to improve air service from Walker Fteld Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch fligbts Like much of the rest of Grand Junction’s business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.



Sincerely,

‘Jarrett Broughton Executive Vice General Manager

Page 39

APPENDIX A COMMUNITY SUPPORT - LOCAL BUSINESSES

LaCroix & Hand, RC. Tlimiar R. InGni~ a A n y C. Hand"

T Il.

A Pmfesstonal law Corpuratim

April 11,2007



Dear Ms. Ley:

LaCroix & Hand, P.C. strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much of the rest of Grand Junction's business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.



Sincerely,

LaCroix & Hand, P.C-

Thomas R. LaCroix

Serving Western Colorodi] for over 25 Years

(970) 245-4601 Fax (970) 243-7403 * 725 Rood Avenue Grand Junction, Colorado 81501

+Also licerued in ~ o r t l i n g 'ALTO licewed in Micl&rm

Page 40

APPENDIX A COMMUNITY SUPPORT - LOCAL B U S I N E S S E S

Grand.lunctbn- h V k U Ourango 5990 Gmmwd pfeza 81vd

2775 [zossnms Mvd Suite 123 sue c w- GrandJulcbon.Co 81503 Greenwmd W h e , CO 80111 ~ilrengo. co 81333 970244-7750 303689-7367 970-3955131

72 SuRk Street

HEALTH PLANS" Good health, That's the plan.

Pueblo 533 K Man Street

Suite 718 PueW4. CO 81003 719-253-3900

April 16,2007



Dear Ms. Ley:

As President and CEO of Rocky Mountain Health Plans, 1 am sending you this letter in support of the Small Community Air Service Development Grant Application, intended to improve air senice from Walker Field Airport.

Rocky iblountain Health Plans is a Colorado-based, not-for-profit organization. Our home base is in Grand Junction. We have an office in Denver and also have offices in several other communities in Colorado. We book frequent trips to conduct business throughout the State of Colorado, as well as to Washington, D.C. and other major US. cities. We have found in the last couple of years that local demand for flights has made it increasingly difficult to book seats and ticket prices are, most often, very high. It is not uncommon for us to spend $500 for a round hip ticket from Grand Junction to Denver, if we can even find Seats available at the times we need for conducting business in Denver!

As you evaluate the ments of this application, I encourage you to consider how critically important air service IS to this isolated part of the country. Grand Junction is located more than 250 miles From major airline hubs in Denver and Salt Lake City. Our business requires reasonable access to air service at Walker Field Airport which is why we support this application and will take cvery opportunity to use the resultant air service improvements.


Sincerely,

John Hopkins President and CEO

Page 41

APPENDIX A COMMUNITY S U P P O R T - LOCAL BUSINESSES

St. Mary’s Hospital

The Regional Medical Center

April 12,2007



Dear Ms. Ley:

St. Mary’s Hospital 8, Medical Center strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much of the rest of Grand Junction’s business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.

As you evaluate the merits of this application, I encourage you to consider how critically important air service is to this isolated part of the country. Our transportation alternatives to local air travel include distances of 250 miles or more by car to airports at Denver or Salt Lake City. Frankly, this is not a viable option for our employees or our customers. Our business requires reasonable access to air service at Walker Field Airport which is why we support this application and will take every opportunity to use the resultant air service improvements. ~


Sinberelv.

v PresidenVCEO

APPENDIX A i

I COMMUNITY S U P P O R T - LOCAL BUSINESSES

Grand Junction Off ice 422 White Avenue Grand Junction, CO 81501

970 244-7263 fax 970 244-731 0

April 11,2007



Dear Ms. Ley:

U.S. Bank strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver or Salt Lake City to catch flights. Like much of the rest of Grand Junction’s business community, we and our customers depend on access to air service with options to continue to prosper and the current air service situation is untenable.

As you evaluate the merits of this application, I encourage you to consider how critically important air service is to this isolated part of the country. Our transportation alternatives to local air travel include distances of 250 miles or more by car to airports at Denver or Salt Lake City. Frankly, this is not a viable option for our employees or our customers. Our customers require reasonable access to air service at Walker Field Airport which is why we support this application and will take every opportunity to use the resultant air service improvements.


APPENDIX A


I

LEANN ZETMEIR District Manager

Senior Financial Advisor

827 Grand Avenue Grand Junction, CO 81501

970-243-4483 Fax 970-243-0344

www.waddeli.com

April 13, 2007



Dear Ms. Ley:

LeAnn Zetmeir strongly supports the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much of the rest of Grand Junction's business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.

As you evaluate the merits of this application, I encourage you to consider how critically important air service is to this isolated part of the country. Our transportation alternatives to local air travel include distances of 250 miles or more by car to airports at Denver or Salt Lake City, Frankly, this is not a viable option for our employees or our customers. Our business requires reasonable access to air service at Walker Field Airport which is why we support this application and will take every opportunity to use the resultant air service improvements.

We are pleased to have the opportunity to support this grant application

Sincerely,

LeAnn Zetmeir " District Manager

Page 44

http://www.waddeli.com

APPENDIX A


Inc. 2482 Industrial Blvd. /81805)

P.O. Box 2124 Grand Junction. CQ 81502 1 - 8 6 8 - 4 1 1 - 6 4 6 5

April 10,2007

Aloha Ley Associate Director, X-50 U.S. Department of Transportation 400 7* Street, SW, Room 6401 Washington, DC 20590


Dear Ms. Ley:

I, Jerry Wigutow, strongly support the subject grant application intended to improve air service from Walker Field Airport. High local demand for flights make it difficult to book seats and ticket prices are, most often, high. The result is that many residents and visitors are driving to Denver to catch flights. Like much of the rest of Grand Junction's business community, our business depends on access to air service to continue to prosper and the current air service situation is untenable.



Sincerely, 6

wiggy's, Inc.

Page 45

APPENDIX B ANALYSIS & FORECASTS

APPENDIX B. ANALYSIS & FORECASTS

Confidential submission of Walker Field Airport Authority.

Page 46

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