ABSTRACT. June 5, Eagle County Regional Airports Proposal under the 2008 Small Community Air Service Development Program

Transcription

1 ABSTRACT June 5, 2008 Eagle County Regional Airports Proposal under the 2008 Small Community Air Service Development Program Docket number DOT-OST Sponsor & Airport: Sponsor: Eagle County, Colorado will be the legal sponsor and administrator for this program. Airport: Eagle County Regional Airport (EGE) serves an approximate population base of 260,000 in a seven county region. Eagle County Regional Airport P.O. Box Broadway Eagle, CO Description of Project This proposal includes Eagle County Government and Eagle County Airport s request of $450,000 of Federal funds, to be matched with an additional $450,000 from Eagle County, CO and the Eagle Marketing Partnership. The funds will be used over three years to: Increase EGE s inbound load factors by filling empty seats through the establishment of brand awareness among local residents and visitors already traveling in and out of the Vail Valley through other air transportation venues, as well as among prospective visitors Eagle County Regional Airport (EGE), Vail Resorts, Inc, Vail Valley Partnership, and the Eagle Air Alliance, under the name of the EGE Marketing Partnership (EMP), are pleased to present their proposal for consideration by the United States Department of Transportation for funding under the Small Community Air Service Development Program. The EMP s proposal outlines a request of $450,000 to be used over three years to market year-round existing and future air service under awareness and retail campaigns, which will include data collection, website development, and other program support items further described herein. USDOT funding under this program would be matched one to one with hard dollars and will be leveraged heavily through in-kind airport messaging by the EMP. The plan outlined under the proposal will kick-off the most unified, potent air service marketing approach ever assembled by Eagle County and its community businesses. Its design demonstrates the power that a cohesive business partnership wields when resources are

2 merged to form a single voice and communication outlet. The plan is designed to draw new passengers to EGE that are already living in, or visiting, our communities and resorts but are reaching us through other transportation centers. The plan integrates a marketing strategy that will reach out by marketing locally, and in EGE s top non-stop communities with awareness and retail programs, as well as in select existing and future non-stop markets. While the community has been successful in creating non-stop flight programs through mechanisms that support costly revenue guarantee commitments, these efforts have left little money to market its air services. With EGE s newly developed plan, brand, and identity in its toolbox (brand development, further described in the Proposal, is currently underway and scheduled for completion in July 2008) the EMP is ready to march forward with a single message and single goal of filling empty seats and creating a healthy, competitive, and viable environment for new airlines and new non-stop routes to EGE.

3 Proposal under the Small Community Air Service Development Program Grant Application DOCKET DOT-OST Community Applying: EGE Marketing Partnership Legal Sponsor: Eagle County, CO DUNS: June 5, 2008 P.O. Box 850, 500 Broadway Eagle, Colorado (970)

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5 Table of Contents Overview Summary 4 Executive Summary 5 About the Eagle County Airport 6 Public-Private Partnership EGE Marketing Partnership 7 Needs and Opportunities at EGE 10 Strategic Plan 15 Eagle County Regional Airport Marketing and Promotions Plan 17 Funding Request 20 Existing Air Service and Historical Efforts 21 Project Monitoring 25 Continuation of Project Following Award Expiration 26 Ensuring that the Community Will Spend in the Proposed Manner 27 Legal Sponsor Designation 28 Appendix B 29 Letters of Support 32 3 of 36

6 Overview Summary Sponsor & Airport: Sponsor: Eagle County, Colorado will be the legal sponsor and administrator for this program. Airport: Eagle County Regional Airport (EGE) serves an approximate population base of 260,000 in a seven county region. Eagle County Regional Airport P.O. Box Broadway Eagle, CO Description of Project This proposal includes Eagle County Government and Eagle County Airport s request of $450,000 of Federal funds, to be matched with an additional $450,000 from Eagle County, CO and the Eagle Marketing Partnership. The funds will be used over three years to: Increase EGE s inbound load factors by filling empty seats through the establishment of brand awareness among local residents and visitors traveling in and out of the Vail Valley through other air transportation venues, as well as among prospective visitors 4 of 36

7 Executive Summary Eagle County Regional Airport (EGE), Vail Resorts, Inc, Vail Valley Partnership, and the Eagle Air Alliance, under the name of the EGE Marketing Partnership (EMP), are pleased to present their proposal for consideration by the United States Department of Transportation for funding under the Small Community Air Service Development Program. The EMP s proposal outlines a request of $450,000 to be used over three years to market year-round existing and future air service under awareness and retail campaigns, which will include data collection, website development, and other program support items further described herein. USDOT funding under this program would be matched one to one with hard dollars and will be leveraged heavily through in-kind airport messaging by the EMP. The plan outlined in this proposal will kick-off the most unified, potent air service marketing approach ever assembled by Eagle County and its community businesses. Its design demonstrates the power that a cohesive business partnership wields when resources are merged to form a single voice and communication outlet. The plan is designed to draw new passengers to EGE that are already living in, or visiting, our communities and resorts but are reaching us through other transportation centers. The plan integrates a marketing strategy that will reach out by marketing locally, and in EGE s top non-stop communities with awareness and retail programs, as well as in select existing and future non-stop markets. While the community has been successful in creating non-stop flight programs through mechanisms that support costly revenue guarantee commitments, these efforts have left little money to market its air services. With EGE s newly developed plan, brand, and identity in its toolbox (brand development, further described herein, is currently underway and scheduled for completion in July 2008) the EMP is ready to march forward with a single message and single goal of filling empty seats and creating a healthy, competitive, and viable environment for new airlines and new non-stop routes to EGE. 5 of 36

8 About the Eagle County Regional Airport Eagle County Airport (EGE) is centrally located in the Rocky Mountains of Colorado, adjacent to Interstate 70 access. Situated in the heart of a large and growing region, EGE serves as the gateway for the Eagle, Garfield, and Pitkin County communities and the resorts of Vail, Beaver Creek, and Aspen. EGE s commercial passengers are served more than adequately in its 66,000 square foot terminal facility with five boarding gates, fourteen airline counter positions, adequate parking facilities, and newly improved airport access roads, designed for safety and higher volumes of traffic than they are presently serving. Current terminal facilities efficiently handle average day/peak hour passenger flow, only maximized to their potential an estimated 8-10 days out of each year, leaving great capacity for passenger growth at nearly all times of the year. EGE has been the recipient of over $60 million in Federal, State, and local improvement funding in the last four years which have assisted in the funding of a 1,000 runway extension (2008), air traffic control radar (2007), precision instrument landing system (2007), planned runway repairs (scheduled for 2009), and taxiway rehabilitation (2004). Other improvements funded solely by the airport including a terminal roof expansion to enclose outdoor baggage operations and add future curbside baggage check-in space, the improvement of new airport access roads, and parking area expansions. Situated 157 miles from EGE, the closest major airport with commercial transportation is Denver International Airport (DEN). To reach Denver from Eagle County visitors and residents are faced with year-round Interstate 70 congestion and frequent closures of the Eisenhower Tunnel and Vail Pass, presenting consistent logistical challenges for residents and visitors wishing to travel between the Rocky Mountains premier resorts and Denver. 6 of 36

9 Public-Private Partnership EGE Marketing Partnership (EMP) Eagle County Regional Airport, Vail Resorts, the Vail Valley Partnership, and the Eagle Air Alliance have teamed-up through development of a partnership model that will cause the implementation of EGE s new brand and identity through a three year matching commitment of $450,000 in hard dollar marketing funds and over $1 million of in kind airport advertising. Eagle County Regional Airport EGE will support the marketing effort by contributing hard dollar support toward the incentive package, in-kind contributions toward program implementation and development, and will monitor and manage the project s financial progress. In addition EGE will leverage Eagle County resources such as web development tools, resident records, on-going surveys, and use of its television media outlet. Vail Resorts, Inc. Vail and Beaver Creek partner with the EGE Air Alliance and Eagle County to promote the airlines and air travel options to Eagle County Airport on a year-round basis. In the spring, summer and fall seasons, Vail and Beaver Creek include flight messaging online and in all appropriate s and regional advertising. In winter season, Vail and Beaver Creek continue to include flight messaging in all communications and on their websites. The resorts also promote the airport using the Fly In, Ski Free, free lift ticket on day of arrival message and Kid s Fly Free message in nationwide online advertising and in specific direct flight markets to generate awareness for the airlines and airport. Vail and Beaver Creek s winter marketing budget is approximately $75,000 currently with plans to increase spending by $100,000 with grant co-op funding in conjunction with Eagle County. VRI s marketing resources, including strategy development, customer database, and other marketing resources will be available to support the marketing plan. Eagle Air Alliance The Eagle Air Alliance was created in February 2003 as a vehicle for governments and businesses to bring summer air-service to EGE. The Eagle County Commissioners took the lead, encouraging the business community to become involved in a Partnership that continues to grow today. In its infancy, the Alliance included only government and resort related businesses. However, in the past three years the Alliance expanded to include banks, hospitals, realtors, construction companies, non-profits and individuals. The Alliance is currently overseen by Eagle County, CO and receives planning services and support from an independent consulting firm, Airplanners. 7 of 36

10 EGE Air Alliance Membership List 1st Bank, Colorado Private Individual - Jim Cargill Town of Gypsum, Colorado Alpine Bank Lodge at Beaver Creek Town of Vail, Colorado American National Bank Manor Vail Resort U.S. Bank Beaver Creek Resort Company Park Hyatt Beaver Creek Resort & Spa Vail Board of Realtors Beaver Creek Resort Merchants Peak Properties Vail Cascade resort Colorado Business Bank Ritz-Carlton Bachelor Gulch Vail Plaza Hotel Colorado Capital Banks Robertson & Marchetti Accounting Vail Resorts, Inc. Colorado Community Banks Sheraton-Vista Hotel Vail Valley Jet Center Colorado Mountain Medical Slifer, Smith & Frampton Real Estate Vail Valley Partnership/Chamber Cordillera Metropolitan District Sonnenalp Resort of Vail Vail Valley Surgery Center Destination Services Steadman Clinic VVMC/Shaw Regional Cancer Center Dollar Car Rental The Resort Company Western Seasons Eagle County, Colorado The Antlers at Vail Westin Hotel East West Resorts Town of Avon, Colorado The combined marketing reach and resources of the Alliance membership alone is a powerful message vehicle for the EGE flight program. Eagle Air Alliance members will continue to contribute through summer and fall flight revenue guarantee funding, and will include in-kind inclusion of the airport s new messaging in select direct mail, electronic, and other forms of advertising under the program outlined herein. Vail Valley Partnership The Vail Valley Partnership is the Chamber & Tourism Bureau for the Vail Valley and as such is charged with the group sales efforts for the Vail Valley and Eagle County region including the Town of Vail and Beaver Creek Resort. The Partnership controls an annual group marketing budget of approximately $558,000 with financial support from Town of Vail, Beaver Creek Resort Company and Vail Resorts. This funding is used for print advertising targeting the corporate meeting market as well as trade show attendance and meeting planner events throughout the year (including in-market events as well as familiarization tours to the area). Print advertising includes: Plan Your Meetings, Meetings West, Smart Meetings, CO Meetings & Events, Financial & Insurance Planners, Successful Meetings, and Meeting Planners International. The Partnership s group sales team attends approximately 30 trade shows throughout the country and hosts approximately 5 customer events in key markets. In addition to group sales efforts, the Vail Valley Partnership reaches approximately 100,000+ unique visitors per year via their website VisitVailValley.com and has a database of approximately 12,000 guests who we communicate with via . The Partnership works closely with the Colorado Tourism Office and the State of Colorado in their role as the Chamber & Tourism bureau for the Vail Valley and Eagle County; 8 of 36

11 coordinate advertising for the area in the Official Visitors Guide and promote the region via state channels such as Colorado.com and the Colorado Tourism Office & newsletter programs. The Partnership has upwards of 900+ local business partners and is the advocate for tourism and business in the region. Together these organizations create a marketing leverage that will reach millions of visitors and prospective visitors on a year-round basis, on a local and national level. 9 of 36

12 Needs and Opportunities at EGE Lacking Airport Awareness The airport s largest ground transportation provider disclosed that it transports 200,000+ passengers to the Eagle (Vail and Beaver Creek), Garfield (micropolitan mountain core), and Pitkin (Aspen) county areas from Denver International Airport each year. Of their passengers surveyed, 26% did not know that they could fly directly into EGE and be in the Vail Valley in minutes. This information combined with Vail and Beaver Creek s estimates that about 46% of current destination guests get to their resorts via Denver International Airport, reveals a strong new passenger market within local advertising reach. Vail gets a majority of its destination visitors via DIA (Denver International Airport), but that connection is increasingly problematic because of the congestion on Interstate 70. Graham Button, Genesis, Inc. This new understanding of our visitors lacking awareness of EGE creates a simple opportunity and under EGE s newly branded identity, the EMP will build awareness of EGE s services among those that are already visiting or living in our area. In addition to the awareness marketing approach, and at times in conjunction with, the campaign will be reinforced with fare specials, travel package, and group promotions and while it is targeted at current visitors and residents, attracting new visitors will also be integrated in the strategy and plan runway closure challenges In 2009 EGE will be forced to close its runway for a minimum of 120 days to perform needed runway repairs. During the runway closure period EGE will utilize its taxiway as an alternate landing surface for private and commercial aircraft, limited to no larger than B-2 category aircraft. This restriction is expected to reduce airport operations by 75% (16% of annual operations) during that period, squeezing revenues from the airport and its tenants, and causing a steep economic impact reduction to the community. Because of the operational and service loss to the airport and community during this project the 120 day runway closure is expected to impact the airport and community in the following manner: Economic Impact to Community Estimated loss of $157 million in economic including $54 million in visitor spending (Source: Colorado Department of Transportation, Division of Aeronautics: The Economic Impact of Airports in Colorado 2008) Direct revenue losses will heavily impact the EGE revenues from lost landing fees, rents, and fuel sales. Anticipated revenue losses to the airport equal $1.6 million Direct revenue losses to airport tenants and businesses are estimated to reach $6 million 10 of 36

13 The airport s commitment to the community and its tenants is strong and while the runway closure will bring long-term benefits, it also creates financial hardship for the airport and its tenants, and unlike other projects it does not carry the benefit of creating or bringing new business once complete. With the support of the USDOT matching funds, the community, the airport, and its tenants will be able to reclaim a portion of its lost economic impact and revenues through passenger growth under this the EMP s marketing program. I-70 corridor issues EGE as part of the solution For mountain resort visitors and locals arriving in Colorado at Denver International Airport most still have 2-4 hours driving time to reach their destination. These destinations lay west and are connected to Denver via Interstate 70, leading these drivers through a series of canyons and over several mountain passes while traveling to their homes or resorts. These drivers join 40,000+ other drivers on a daily basis on I-70 through miles of weather vulnerable mountain passes and points of heavy congestion that experienced 389 lane closures during the 2007/8 winter season due to problems arising from weather, accidents, or semi-trucks. The I-70 Mountain Corridor from Denver to Grand Junction is not meeting the transportation needs of Colorado. For Colorado residents, visitors, and businesses, I-70 is a gateway to recreation, commerce and everyday necessities. This stretch of highway has become so overburdened that it can't support today s demands and it's forecasted to get worse in the future. 11 of 36

14 As a key component of Colorado's transportation network, I-70 congestion hampers economic development in several regions and the entire state as more than 200 recreational sites lay within six miles of the I-70 mountain corridor, including 15 ski areas. The Colorado ski industry contributes over $2.5 billion to the state's economy, 60% of which is filtered into commercial establishments in resort communities. Based on statistics collected by the Colorado Department of Transportation, I-70 was closed 119 hours in 2007 at an economic impact of $800,000 per hour Eisenhower Tunnel Continental Divide Elevation 11,158 Situated at over 11,000 above sea level, and a resulting common area of congestion and traffic shutdown, the Eisenhower Tunnel sees an average of 30,400 vehicles each day. For visitors traveling from Denver International Airport to most of Colorado s resorts and attractions the Eisenhower tunnel is a mandatory crossing. Beyond the congestion issues challenging this section of I-70, the tunnel area by nature of its geography is very dangerous and difficult to travel, especially during winter months. Winter weather regularly shuts down traffic in this area causing extended traffic delays, long waits, and missed flights. 12 of 36

15 Traffic on eastbound Interstate 70 backs up as Presidents Day weekend crowds return from the mountains. The three-day weekend in February is typically one of the busiest for state ski resorts. The tunnel throughput is limited by only two lanes in each direction, and yearround traffic delays are the norm. At this section of I-70 more than 10 days out of the year experience traffic levels of over 48,000 cars in a 24 hour period. Current estimates double today s traffic volumes through the tunnel by Vail Pass Elevation 10,664 Like the Eisenhower Tunnel, winter weather causes serious safety and congestion issues. Vail Pass, situated at 10,664 above sea-level, is regularly affected by adverse weather, worst of all being heavy snow where storms regularly deposit upwards of 12 or more in a single event. Combined Vail Pass and Eisenhower tunnel pose as significant travel obstacles for visitors wishing to travel to mountain attractions from Denver International Airport. By flying through EGE visitors and residents avoid these dangerous road conditions, closure risks, and they contribute to a reduction of congestion in these areas. I-70 Coalition In 2004 the I-70 Coalition was formed through the formalization of an intergovernmental agreement with members from 30 political jurisdictions along the I-70 corridor. The goal of the I-70 Coalition includes working with all communities affected by the corridor between Denver and Grand Junction to develop interim and long term plans as a solution to I-70 congestion issues. The I-70 Coalition publicly endorses the use of air travel into the Eagle County Regional Airport as an alternative for visitors looking for a more reliable, direct route to destinations west of Eisenhower tunnel and, along with the Colorado DOT, recognizes Eagle County Regional Airport s role as an important part of the greater solution to reducing congestion and related traffic issues on I-70 between Vail and Denver. Colorado conservatively loses $839 million each year from congestion along I-70 between Denver and Grand Junction. (Source: Denver Metro Chamber of Commerce & Metro Denver Economic Development Corporation.) 13 of 36

16 High Fares Passengers surveyed while traveling between Eagle County and Denver International Airport indicated that high fares are the top reason they choose not to fly into EGE. According to a recent study fares in and out of EGE are on average 210% higher than comparable flights out of DEN, averaging a $320 premium to fly directly into EGE. Lacking airline competition, especially during the spring, summer, and fall seasons is the primary contributor to high airfares in and out of EGE. Competition is lowest during the spring summer and fall months, when only two airlines operate on three routes. The lacking competition results in much higher fares from EGE s top markets when compared to traveling through Denver International Airport, as can be seen below: Fare Comparison Updated: April 30, 2008 Dates checked: June 18-25, 2008 Market EGE Expedia DEN Expedia Expedia Variance EGE vs DEN Dallas, TX - DFW $568 $244 $324 Chicago, IL - ORD $568 $198 $370 New York, NY - LGA $560 $316 $244 Miami, FL - MIA $733 $303 $430 Fort Lauderdale, FL - FLL $759 $387 $372 Houston, TX - IAH $478 $195 $283 Los Angeles, CA - LAX $528 $387 $141 Minneapolis, MN - MSP $556 $236 $320 Newark, NJ - EWR $497 $300 $197 Atlanta, GA - ATL $648 $238 $410 Average Fare Difference - % 210% Average Fare Difference - Dollars $309 While the intent of this program is directed toward drawing new passengers and increasing load factors into EGE, and not directly pointed toward reducing fares, resulting increased load factors are predicted to have a long-term positive effect on fares. Increased load factors and profitability of routes will make EGE more attractive to airlines, ultimately resulting in the addition of new airlines, routes, and route frequencies, cultivating a more competitive year-round environment and eventually reducing fares. 14 of 36

17 Strategic Plan The goal of the EMP under this plan is simple: Increase EGE s inbound load factors by filling empty seats through the establishment of brand awareness among local residents and visitors traveling in and out of the Vail Valley through other air transportation venues, as well as among prospective visitors For the first time in the airport s marketing history the widest and deepest resources in the community will be leveraged to launch the most powerful and cohesive marketing plan. The strength of this plan comes from the creation of EGE s new marketing brand and the depth that the brand will reach with the power of the EMP s combined marketing resources. The benefits of increasing load factors to EGE are very real and tangible to the traveling public and community. Some of these benefits include: Eventual reduction in fares through competition and airline and route addition Help to relieve current and future I-70 congestion issues A Colorado Department of Transportation and I-70 Coalition priority Increase airport revenues, which may be used to improved EGE s passenger services and amenities, and generate new airport revenue Increase economic impact to community. The positive economic impact to the community per 1,000 additional EGE travelers amounts to $4.4 million, with an additional in $2 million in visitor spending. (Source: Colorado Department of Transportation, Division of Aeronautics: The Economic Impact of Airports in Colorado 2008) 15 of 36

18 Branding the Eagle County Regional Airport In 1996 Vail Resorts partnered with Eagle County to bring the first commercial passenger flights to EGE. Since those first flights the winter program has been maintained through the sole support of Vail Resorts, while other groups formed to bring about a positive change to the lacking summer air service. For several years the two groups have been marketing EGE under a patch-work of identities and varying different brands. Made possible through a partnership between Vail Resorts and Eagle County Airport, the two are currently in the process of creating a new brand and identity that will be used on a year round basis by all parties interested in marketing EGE, whether in-kind or for hard-dollar EGE exclusive marketing. The new brand and identity will include pre-produced creative available to all of EGE s marketing partners, ensuring a clear, consistent, year-round airport message in all marketing and PR materials beginning in winter 2008/9. Once the new airport brand and marketing identity are secure in the toolbox Eagle County, Vail Resorts, the Vail Valley Partnership, the Eagle Air Alliance, and other members in the community, will be able to march forward with a powerful and coordinated airport marketing campaign. 16 of 36

19 Eagle County Regional Airport Marketing and Promotions Plan The marketing plan encompasses a year-round, local and distant campaign to promote local awareness of EGE as well as a retail campaign. Both are aspects of the marketing plan are designed to capture visitors/locals traveling to/from our area thru Denver that were not aware of EGE s services and conveniences, or felt that EGE s services were too expensive. Local Marketing Local marketing will reach through EGE s primary market of Eagle County and further into its secondary markets, Garfield and Pitkin counties. The approximate local catchment area under this plan contains a population of over 260,000 people and will reach that population in the area outlined below. Local Marketing Media Outlets Local marketing will include a variety of media types. Examples of advertising used recently, and the type of which will be purchased under this plan include but will not be limited to: Online o Vail Daily, Aspen Times banner advertising Newsprint o Vail Daily, Aspen Times, and Glenwood Post Independent fare sale and special fare and package promotion print advertising Radio o Live, on site airport broadcasts and special fare and package promotions messaging 17 of 36

20 Local magazine print o Seasonal and annual printings of chamber and local published magazines including Vail Resorts Peaks magazine, Aspen Peaks magazine, Parent s Handbook, Vail What to Do, and Vail Valley 365 (chamber publication) Television o Television has not been used due to cost but would be a very effective local campaign mechanism. Local programming could include TV8, Plum TV, local NBC, ABC, CBS, and Fox networks. Destination marketing media outlets The EMP s distant marketing program will target prospective and current visitors by reaching out to them in their home towns and cities through a variety of media. Examples of advertising used recently, and the type of which will be purchased under this plan include but will not be limited to: Online o AA Online, Dallas Morning News banner advertising and blast purchases National print o Ski & Skiing magazines and in-flight publications Event sponsorships o 2009 Byron Nelson Golf Championship, sponsored by American Airlines (This event would be a new promotion for EGE) Familiarization events for group travel directors and booking agents Additional Marketing Tools to be Expanded under this Program The EMP will build on its existing marketing reach through continuing market research, database expansion and maintenance, ad creative production and website construction and maintenance. Examples of Successful Partnership Led Marketing Efforts American Airlines launched a fall service daily from Dallas/Ft. Worth to Eagle County Airport in fall of 2007 with revenue guarantee support from the EGE Air Alliance. To ensure the success of the flights with American, the EGE Air Alliance negotiated special airfares with American and executed two very successful retail promotions: Vail $130 Marketing Program The first of these was themed the $130 promotion, based on a flight time of 130 minutes from Dallas/Ft. Worth to Eagle. Accordingly the flight was priced at $130 one-way and accompanied with a community initiative to promote the 130 with matching room rates, spa packages, green fees and dining packages. The promotion was advertised locally in the Dallas/Ft. Worth market through travel and trade events, and a web banner campaign on both AA.com and Dallas Morning News websites. 18 of 36

21 Kids Fly Free to Vail Promotion The second promotion to support the new fall service was a Kid s Fly Free offer from American Airlines, whereby for every adult ticket purchased, one child could fly free from any origin in the US to EGE. This promotion caught the attention of local merchants and was carried over into the winter, with resorts matching kid s free lift rates, lodges matching kids stay free and rental shops matching kids rent free. The offer is best targeted toward family travel in and out of EGE and was promoted in an exclusive American Airlines and with a banner campaign on both AA.com and Dallas Morning News websites. These and other marketing efforts were responsible for adding over 10,000 new passengers to EGE s 2007 passenger count and are just two of many examples of successful marketing efforts through our public-private partnership. 19 of 36

22 Funding Request The EMP seeks multi-year funding and under its request will contribute a 50% hard dollar match. Them EMP will initiate the marketing efforts outlined in this proposal once award funds are available, continuing its efforts for approximately three years, but not to exceed forty-eight months. The EMP seeks a $450,000 award under this proposal to be used in the manner and under the schedule described above. 20 of 36

23 Existing Air Service and Historical Efforts Eagle County Regional Airport has two primary markets: Destination visitors drive the majority of EGE s passenger numbers, presently estimated at 74% of EGE s annual passengers, and local based passengers from Eagle, Garfield, and Pitkin counties, composing the remaining 26%. Due to the seasonal nature of the area s economy winter season months of December through March account for 79% of the airport s enplanements. During the months of April through November monthly enplanements dip to 1-5% of calendar year total enplanements and represent approximately 21% of EGE s calendar year enplanements. In the following diagrams it is visibly apparent that while EGE has strong winter passenger traffic, a substantial disparity exists between winter, and spring, summer, and fall loads and inbound capacities. The periods of weak load factors present the greatest opportunities to create fare and package specials to fill the empty seats. While the program is designed to market a year-round flight program, marketing outreach will capitalize on this opportunity by placing special emphasis on these periods of weak load factors by working with the airlines to develop and market fare and package specials, similar to those highlighted in previous sections. EAGLE COUNTY REGIONAL AIRPORT (EGE) 2007 US Airways United / United Express Northwest Delta Continental American Total Available Seats Total Annual Deplanements MONTH 21 of 36

24 The following chart demonstrates the actual number of empty seats that arrived to EGE in INBOUND ACTUAL SEATS FLOWN EMPTY FOR ALL AIRLINES (EGE) for % % OF SEATS SOLD 80.0% 60.0% 40.0% 20.0% 60.3% 69.3% 69.0% 43.6% 75.2% 64.9% 68.5% 67.4% 64.0% 55.7% 67.7% 79.7% 0.0% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC MONTH Winter Flight Program Vail Resorts began partnering with the airlines in winter of to provide incremental air-service to EGE. The first season of service saw one airline, America West, flying from Phoenix daily and Los Angeles on Saturdays, financially subsidized by Vail Resorts. Over the next few years, American, Continental, Delta, Northwest and United added service from major cities across the United States, to EGE With the winter flight schedule intact the community has shifted its focus to not only maintaining and growing winter flight offerings to EGE, but also to place greater emphasis on growing summer and shoulder season air service routes. Winter air-service is currently provided by six major air carriers: American, Continental, Delta, Northwest, United, and US Airways. Top markets for destination passengers include Newark, New York, Dallas, Miami, Los Angeles, Chicago, Atlanta, Cincinnati, Minneapolis, Charlotte, Houston, and Denver (connecting hub). All of these markets are adequately served during the winter months, yet key markets remain without service. These markets include Boston and Washington D.C., and points west of Colorado 22 of 36

25 including Seattle, Phoenix, and San Francisco, which would be well served with connecting service to EGE through Salt Lake City. The following diagram depicts year-round air service routes to EGE. Spring, summer, & Fall Flight Program Summer air service began in 2003 with the formation of the Fly Vail Summer Partnership (FVSP) to bring daily summer non-stop service to EGE from Dallas/ft. Worth. The Fly Vail Summer Partnership, originally composed of approximately thirty local businesses and governments, built upon the success of the summer Dallas service by continuing their efforts to bring new summer air service to EGE by adding large-jet, non-stop summer service from Denver (2005) and Chicago in (2006), and extending daily Dallas service into the fall months (2007). Summer and fall service has continued to grow through FVSP efforts, yet the summer and fall seasons remain the least served and contain periods with the some of the lowest load factors. As mentioned earlier, this in itself creates a large opportunity for the EMP. The Fly Vail summer partnership recently formed into a non-profit business entity, now named the Eagle Air Alliance, newly aligned with a single focus of bringing year-round air service options to EGE. With membership stronger than ever at 41 members, the Alliance remains the sole support and funding mechanism, and promoter for EGE s summer and fall flights. Summer combined load factors have remained consistent year over year and, depending on route, averaging between 70% and 80% for summer flights and 55% during fall months. Summer and fall opportunities exist with future routes such as Newark, Houston, Phoenix, and others, and are planned to be added as year-round markets into EGE develop. 23 of 36

26 During the weakest shoulder season periods occurring in April, May and early June, EGE continues to function as a year-round commercial airport with four daily flights to Denver. 24 of 36

27 Project Monitoring Methodology The goal of the EMP s program is to bring new passengers to EGE. The EMP will initiate passenger surveys to measure the program s success. Surveys will be performed two times per year once in winter and once in summer. An initial survey will be conducted in summer 2008 and winter 2008/9 which will establish a baseline for future surveys. Surveys will be designed to determine what percentage of passengers flying through EGE are new passengers to EGE, how long they ve been visiting our area, how and when they learned about EGE s services, and how they reached our area prior to discovering EGE s services. Ongoing survey results will be compared to the initial summer 2008 and winter 2008/9 survey results to compare progress of the EMP s marketing plan. Success would be reached when 3% of passengers of each survey learned about EGE s services through direct or indirect marketing efforts as implemented under the EMP s marketing program. Additional growth indicators integrated into the monitoring methodology to determine program progress will include: Enplanement information compared year over year Load factor information compared year over year Critical Milestones Schedule Milestones have been identified centered around data availability from the inter seasons, and the summer/fall flight seasons. Data analysis will occur twice each year and a summary of the analysis will be provided to the US DOT once each year. These tasks will be performed according to the following schedule: Research analysis o March and July Each year Surveys will be conducted and compared to baseline results established in summer 2008 and winter 2008/9 o June and October Each year Analysis of survey data, enplanement, and load factor data will occur simultaneously Annual report to US DOT - Before December 31 each year the EMP will prepare and submit a report of its findings from the June and October analyses o Reports will include: A description of the marketing initiatives that occurred in the previous year Comparative analysis summary Marketing plan summary for coming year 25 of 36

28 Continuation of project following award expiration The EMP is confident that its marketing program will increase enplanements and load factors. Following award expiration the EMP will continue to allocate marketing funds to continue its program, and will work hard to enable maintenance and expansion of long term air terminal leases, diversify O&D markets for the flying public, and increase competition to reduce air fares. The community is interested in attracting and marketing flights that will succeed and grow towards self-sustainability. Careful planning and pre-analyzing has already taken place to help ensure that the success of the EMP s marketing program. 26 of 36

29 Ensuring that the Community will spend in the Proposed Manner Eagle County, CO as the legal sponsor has the appropriate management tools in place to ensure that funding will be tracked and expended in the manner proposed. Eagle County, CO will also ensure that grant funds are spent diligently, requiring approval of the Eagle County Board of Commissioners, according to plan, and in compliance with federal regulations. Eagle County, CO has received and administered numerous federal and state grants and loan programs and has a successful track record of doing so. Past grant awards include: FAA- Airport improvement program, FAA-AIR21 program, HUD Section 8 Multi-Family Housing Program, USDA Rural Development, state and federal CBDG programs and federal and state transportation funding programs. The county will use its accounting and purchasing systems to record and report all transactions including all purchases and costs accruing to the project and all reimbursements received. The county will assign a single project manager responsible for working with all participants. 27 of 36

30 Legal Sponsor Designation Eagle County, CO will serve as the Legal Sponsor and expedite the award under this proposal. 28 of 36

31 APPENDIX B Page 1 SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST SUMMARY INFORMATION All applicants must submit this information with their proposal, along with a completed form SF424 on (See Appendix C for the SF424 filing process) A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) Not a Consortium Interstate Consortium Intrastate Consortium Community now receives EAS subsidy Community (or Consortium member) previously received a Small Community Grant If previous recipient, expiration date of grant: B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) Public Private 1. Eagle County, CO 1. Vail Resorts, Inc Eagle Air Alliance Vail Valley Partnership C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) Marketing Upgrade Aircraft New Route Personnel Increase Frequency Low Fare Service Travel Bank Service Restoration Subsidy 29 of 36

32 APPENDIX B Page 2 Surface Transportation Regional Service Other (specify) Revenue Guarantee Start Up Cost Offset Study Launch New Carrier First Service Secure Additional Carrier D. EXISTING LANDING AIDS AT LOCAL AIRPORT: Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other (specify): VOR Navigational Aid E. PROJECT COST: Federal amount requested: $450,000 Total local cash financial contribution: $300,000 Airport funds: $150,000 Non-Airport funds: $0 State cash financial contribution: $0 Existing funds: $0 New funds: $0 Airport In-kind contribution: $0 (amount & description) Other In-Kind contribution: $1,050,000 (amount & description) - Local and destination marketing Inclusions, including direct mail Total cost of project: $1,950,000 F. ENPLANEMENTS: , , , , , , , of 36

33 APPENDIX B Page 3 G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER PROCESS? a. This application was made available to the State under the Executive Order Process for review on (date). b. Program is subject to E.O , but has not been selected by the State for review. c. Program is not covered by E.O H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF YES, PROVIDE EXPLANATION) No Yes (explain) 31 of 36

34 Letters of Support 32 of 36

35 DEPARTMENT OF TRANSPORTATION Division of Aeronautics STATE OF COLORADO 5126 Front Range Parkway Watkins, Colorado (303) FAX (303) May 30, 2008 The Honorable Mary E. Peters U.S. Transportation Secretary U.S. Department of Transportation 1200 New Jersey Ave, SE Washington, DC Re: Eagle County Regional Airport funding under the Small Community Air Service Development Program, DOCKET DOT-OST Honorable Mary E. Peters, I am writing in support of the EGE Marketing Partnership s (EMP) proposal and funding request with regards to the docket number listed above to market direct air service to the Eagle County Regional Airport. The Eagle County Regional Airport (EGE) is a valuable asset to the area and State s economy. The partnerships within this request will help to not only increase enplanements at the airport but to improve the overall efficiency of the Colorado multimodal transportation system by reducing surface congestion on the I-70 West corridor through the Colorado Rocky Mountains. Filling empty seats brings new business into our economy and along with it a significant financial contribution to the area in the form of visitor spending, contributing to new wages and a healthy, growing local economy. This is very evident by our recently completed 2008 Colorado Airports Economic Impact Report which shows EGE bringing almost $1Billion of economic activity to the area annually. The public-private partnership assembled to implement the marketing plan as outlined in the EMP proposal is deep in resources and experience and committed to ensuring effective implementation of its marketing plan. Thank you for your time and attention. Sincerely, Travis Vallin Colorado Aeronautics Director 33 of 36

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