Northwest Consortium of Airports

Transcription

1 Project Abstract The Pacific Northwest is home to two of the country s largest cities Seattle and Portland but outside those cities much of the region is still remote and difficult to access. Driving distances are always longer than they appear on a map in the Northwest, due to the large mountains, and ocean inlets, that define the landscape. For many Pacific Northwest residents, access to the national air transportation system is a challenge. This challenge was first addressed by the cities of Astoria and Newport, Oregon, who applied for, and won, a Small Community Air Service Development Grant to bring air service to the remote Oregon Coast. On the heels of that award, four more Northwest cities seek to bring similar service to their communities, piggy-backing on the Department of Transportation s previous investment in air service in the region. These four cities believe their consortium can benefit economically from non-stop service to Portland International Airport, and the access created beyond that hub. Still, due to the fact these communities are currently unserved, they must have the benefit of a Small Community Air Service Development Grant in order to mitigate the risk for an airline willing to enter the secondary Northwest market. The cities of Olympia, Hoquiam/Aberdeen, and Tacoma in Washington, and the City of Roseburg in Oregon are working together to bring air service to four currently unserved airports. Each airport represents a unique air service challenge. But together, the four believe an airline, flying 9-seat twin-prop aircraft to a hub in Portland, can bring the first successful air service to some of the more remote parts of the Northwest. The Consortium requests a total of $1.5 million in federal funding under the Small Community Air Service Development Program, or $375,000 for each airport, to mitigate the risk of a new carrier in the region. This funding is essential to the long term economic health of all four communities. Northwest Consortium of Airports Small Community Air Service Development Grant Application June 2008

2 Docket: DOT-OST Before the Office of the Secretary of Transportation U.S. Department of Transportation Northwest Consortium of Airports Olympia, Hoquiam, and Tacoma, Washington, and Roseburg, Oregon Proposal Under the Small Community Air Service Development Program An Integrated Program of New Service Development via; Start-up Cost Offsets, Advertising/Marketing and Revenue Guarantees In Support of Schedule Airline Service to/from Portland, Oregon Sponsor: Port of Olympia Olympia, Washington Rudy Rudolph, Airport Director Dun & Bradstreet Number: June 6, 2008

3 Table of Contents Description Page number Table of Contents 2 Introductory Letter 3 Summary Information 4 Introduction 10 Primary Objectives of Proposal 11 Executive Summary 12 Detailed Explanation of Proposal 21 Expected Results 26 Letters of Support 35 Current Air Service 48 Air Service Deficiencies 52 Extenuating Factors Affecting Air Service 60 Availability of Alternate Airports 63 Use of Local / Federal Funds 65 Public / Private Partnerships 66 Air Service Advisory Groups 66 Local Air Service Development Efforts 67 In-kind Services from the Community 67 Performance Measures 68 Financial Controls 68 Return on Investment 68 DOT Exit Strategy 69 Alternate Plan 69 Airport Information 70 Community Profile 74 Conclusions 105 Northwest Consortium of Airports Small Community Air Service Development Grant Application June

4 Introductory Letters Northwest Consortium of Airports Small Community Air Service Development Grant Application June

5 Summary Information Small Community Air Service Development Program Docket DOT-OST A. Applicant Information Not a Consortium Community now receives EAS subsidy Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, expiration date of grant: Community Name Olympia, Washington Address Port of Olympia, 915 Washington Street NE City, State, Zip-code Olympia, Washington Point of Contact Rudy Rudolph, Airport Director Olympia Regional Airport Phone (360) Fax (360) RudyR@portolympia.com County Thurston Dun & Bradstreet # Community Name Tacoma, Washington City of Tacoma Address 747 Market Street, Room 737 City, State, Zip-code Tacoma, Washington Point of Contact Rich Mueller Phone (253) rmueller@neilwalter.com County Pierce Dun & Bradstreet # Northwest Consortium of Airports Small Community Air Service Development Grant Application June

6 Community Name Hoquiam/Aberdeen, Washington Port of Grays Harbor Address Box 660, 111 South Wooding Street City, State, Zip-code Aberdeen, Washington Point of Contact Diane Souron Phone (360) County Grays Harbor Dun & Bradstreet # Community Name Roseburg, Oregon Address 900 SE Douglas Avenue City, State, Zip-code Roseburg, Oregon Point of Contact Jim Johnson Phone (541) Fax (541) jjohnson@cityofroseburg.org County Douglas Dun & Bradstreet # Designated Legal Sponsor: Name EB Galligan Title Executive Director Port of Olympia Address 915 Washington Street NE City, State, Zip-code Olympia, Washington Phone: (360) Fax: (360) RudyR@portolympia.com Northwest Consortium of Airports Small Community Air Service Development Grant Application June

7 B. Public/Private Partnership Public: 1. Port of Olympia 2. City of Tacoma 3. Port of Grays Harbor 4. Grays Harbor County 5. City of Hoquiam 6. Roseburg Regional Airport 7. City of Tumwater 8. Douglas County 9. Pierce County Private: 1. Grays Harbor Economic Development Council 2. Grays Harbor Chamber of Commerce 3. Grays Harbor Tourism, Inc. 4. Quinault Indian Nation 5. Thurston County Economic Development Council 6. Thurston County Convention and Visitors Bureau 7. Thurston County Chamber of Commerce 8. Roseburg Area Chamber of Commerce 9. Umpqua Economic Development Partnership 10. Coos Curry Douglas Business Development Partnership Northwest Consortium of Airports Small Community Air Service Development Grant Application June

8 C. Project Proposal Marketing Upgrade Aircraft New Route Personnel Increased Frequency Low Fare Service Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (specify): Revenue Guarantee Launch New Carrier First Air Service Start Up Cost Offset Study First Competitive Service Secure Additional Carrier D1. Existing Landing Aids at Olympia Regional Airport Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other D2. Existing Landing Aids at Tacoma Narrows Airport Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other D3. Existing Landing Aids at Bowerman Field Airport, Hoquiam Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other D4. Existing Landing Aids at Roseburg Regional Airport Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other: RNAV and VOR approaches available Northwest Consortium of Airports Small Community Air Service Development Grant Application June

9 E. Project Cost Federal amount requested: $ 1,500,000 Total local financial contribution: $ 150,000 Airport funds: $ 75,000 Non-Airport funds: $ 75,000 State financial contribution: $ 0 Existing funds: $ 0 New funds: $ 0 Airport In-kind contribution: $ 0 (Amount & description) Other In-Kind Contribution: $ 0 (Amount & description) Total cost of project: $ 1,650,000 F1. Enplanements at Olympia Regional Airport 2002: : 6, : 4, : : : 0 F2. Enplanements at Tacoma Narrows Airport 2002: : : : : : 0 Northwest Consortium of Airports Small Community Air Service Development Grant Application June

10 F3. Enplanements at Bowerman Field Airport, Hoquiam 2002: : : : : : 0 F4. Enplanements at Roseburg Regional Airport 2002: : : : : : 0 G. Is Application Subject to Review by State Under Executive Order Process? This application was made available to the State on. Program is subject to review, but has not been selected by the State. Program is not covered. H. Are Applicants Delinquent on any Federal Debt? No Northwest Consortium of Airports Small Community Air Service Development Grant Application June

11 Introduction The Pacific Northwest is home to two of the country s largest cities Seattle and Portland but outside those cities much of the region is still remote and difficult to access. Driving distances are always longer than they appear on a map in the Northwest, due to the large mountains, and ocean inlets, that define the landscape. For many Pacific Northwest residents, access to the national air transportation system is a challenge. This challenge was first addressed by the cities of Astoria and Newport, Oregon, who applied for, and won, a Small Community Air Service Development Grant to bring air service to the remote Oregon Coast. On the heels of that award, four more Northwest cities seek to bring similar service to their communities, piggy-backing on the Department of Transportation s previous investment in air service in the region. These four cities believe their consortium can benefit economically from non-stop service to Portland International Airport, and the access created beyond that hub. Still, due to the fact these communities are currently unserved, they must have the benefit of a Small Community Air Service Development Grant in order to mitigate the risk for an airline willing to enter the secondary Northwest market. The cities of Olympia, Hoquiam/Aberdeen, and Tacoma in Washington, and the City of Roseburg in Oregon are working together to bring air service to four currently unserved airports. Each airport represents a unique air service challenge. But together, the four believe an airline, flying 9-seat twin-prop aircraft to a hub in Portland, can bring the first successful air service to some of the more remote parts of the Northwest. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

12 Primary Objectives of Proposal Objectives for Program: Provide sufficient air service for a number of currently unserved Pacific Northwest communities Bring commercial air service to Olympia, Tacoma, Hoquiam/Aberdeen, and Roseburg Establish the first ever connections to the national air transportation system for a number of Northwest communities, providing connections to more airline partners, with a wider range of destinations Better connect Northwest cities through a new hub Allow passengers to fly locally, from their hometowns, instead of driving long distances to access the national air transportation system Means to Achieve Objectives: Recruit an airline to launch service at four previously unserved airports: Olympia, Tacoma, Hoquiam/Aberdeen, and Roseburg Ensure the new airline has marketing agreements with a number of major carriers Recruit new service to a centrally-located hub, where all four cities can feed into a well-established transportation network Provide incentives to ensure success on the routes Course of Action to Support Means: Recruit an airline with 9 seat prop aircraft to provide daily service on the following routings: o Olympia Portland o Tacoma Narrows Portland o Hoquiam/Aberdeen Portland o Roseburg Portland Provide the new airline with start-up cost offsets Make a revenue guarantee available Initiate a marketing and advertising campaign throughout the Northwest to increase awareness about new service Northwest Consortium of Airports Small Community Air Service Development Grant Application June

13 Executive Summary The Northwest consortium is seeking its first air service under this proposal includes a mix of regions, both urban and rural, with diverse geography, on the coast and nestled in the mountains. These cities might not have a lot in common in terms of their size, their settings, or even their economies. What they do have in common is the lack of access to the national air transportation system, despite years of working to recruit airline service to their respective regions. The cities of Olympia, Hoquiam/Aberdeen, Tacoma, and Roseburg believe their best opportunity to bring new air service to unserved parts of the Northwest is through the Small Community Air Service Development Program. The consortium includes two larger cities which lie in the shadow of Seattle Olympia and Tacoma and two small, isolated communities Hoquiam/Aberdeen and Roseburg. Together, these markets include more than 1.9 million residents who currently have no local access to the national air transportation system. The combined Washington State catchment area of Olympia, Tacoma, and Hoquiam/Aberdeen stretches from the Pacific coast to the crest of the Cascade Mountains. It includes two National Parks Olympic and Mount Rainier and the southern portion of the Puget Sound metropolitan area (see Figure 1). This area was home to 1,627,300 people as of 2005 US Census estimates. The region grew by 6.9% - or 105,100 new residents since The size of this region should support significant air service, yet due to the proximity of Seattle/Tacoma International Airport, this catchment area has long been underserved in its own right. The other consortium member community Roseburg sits in an isolated part of the Oregon wilderness known as the Umpqua Valley (see Figure 2). This region is surrounded by the mountains of the Coast Range and the Cascades. It sits more than an hour s drive south of Eugene, and two hours north of Medford. Despite its isolated location, Roseburg hasn t had air service since deregulation. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

14 Figure 1: Combined Olympia Tacoma Hoquiam/Aberdeen Catchment Area The Roseburg Regional Airport catchment area is home to nearly 286,000 people as of US Census estimates in 2005 (see Figure 2). The area continues to see solid growth, with 2005 population up 3.8% over Despite the population of more than a quarter-million residents, the Roseburg Regional Airport has not had success in bringing commercial air service to the area. This is largely due to the fact Roseburg represents an unproven market a difficult market for an airline to enter in current economic times, without some kind of risk mitigation program. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

15 Figure 2: Roseburg Regional Airport Catchment Area Figure 3: Olympia Regional Airport Catchment Area Northwest Consortium of Airports Small Community Air Service Development Grant Application June

16 The catchment area of the Olympia Regional Airport serves the capital of the State of Washington, along with much of the south Puget Sound, and serves as a gateway to both Mount Rainier National Park and Olympic National Park (see Figure 3). The Olympia Regional Airport lies more than an hour and a half south of Seatac Airport, and almost two hours north of Portland International Airport. Despite the relative isolation, the Airport has been unable to recruit adequate air service. The Olympia catchment area is home to nearly three-quarters of a million people. Its population, as of US Census estimates in 2005, was 724,900 (see Figure 3). The catchment area saw population growth of 46,200 people from 2000 to 2005, an increase of 6.8%. The City of Tacoma is known best as a second name in the hyphenation of Seattle-Tacoma. Tacoma has long been considered a satellite city to the more well-known, Seattle. Today Tacoma s economy stands on its own, and the business community in the City has grown to a level where it can support its own air service, instead of having to drive as much as an hour to access the national air transportation system. The Tacoma Narrows Airport catchment area includes all of the smaller cities that lie in Tacoma s sphere of influence not Seattle s such as Spanaway, Puyallup, Federal Way, and Gig Harbor (see Figure 4). The catchment area also includes many of the islands in the south Puget Sound. This area was home to 1.07 million people as of 2005 US Census estimates. It grew by 7.7% between 2000 and 2005, adding 76,600 new residents. The most isolated of all communities in this Northwest consortium is Hoquiam/Aberdeen. These coastal communities lie more than three hours from the nearest air service at Seattle (see Figure 5). The drive from Washington s central coast, which is anchored by the larger cities of Aberdeen and Hoquiam, is a difficult one, winding through the Coast Range. It can be especially dangerous in the winter, when remnants of typhoons sweep across the Pacific, whipping the beaches with high winds and dumping loads of snow in the mountains. The coastal communities in the Hoquiam/Aberdeen catchment area are home to 317,200 people as of US Census estimates in 2005 (see Figure 5). The area grew by 16,000 residents between 2000 and 2005 a growth rate of 5.3%. Despite the relatively high population of the catchment area, and the large number of tourists who visit the region each year, the cities of Hoquiam and Aberdeen have never had commercial air service. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

17 Figure 4: Tacoma Narrows Airport Catchment Area Figure 5: Bowerman Field Hoquiam/Aberdeen Catchment Area Northwest Consortium of Airports Small Community Air Service Development Grant Application June

18 The combined catchment areas of the Northwest consortium airports are home to 1.9 million people as of 2005 US Census estimates. This combined area grew by 6.4% between 2000 and 2005, adding more than 115,000 new residents. Yet within this combined catchment area there is no commercial air service, making it one of the largest unserved regions in the country, based on population. The US doesn t have many catchment areas the size of the combined Northwest Consortium catchment area that do not have current air service. The last air service provided at any of the Consortium s airports was Big Sky Airlines non-stop service between Olympia and Spokane. This service was provided in 2003 and Big Sky ended service on the route due to its changing business philosophy, after its buyout by Mesaba Airlines. Big Sky, under Mesaba s leadership, abandoned a number of western markets in Washington, Oregon, and Montana, shifting those aircraft to feed Delta s Boston hub. Olympia was, unfortunately, one of those markets that lost service in the business plan shift. The Tacoma Narrows Airport has never had modern scheduled air service, while Bowerman Field in Aberdeen/Hoquiam hasn t had scheduled air service in more than 50 years. The Roseburg Regional Airport lost its last air carrier, which provided service to Eugene, Salem, and Portland, in 1973, due to challenges with the runway layout and the surrounding terrain with the advent of more highly powered turboprop and jet aircraft. The challenges to commercial operations in Roseburg have since been mitigated, with trees being removed from the ends of the runways, and better approach paths for jet/turbine powered aircraft. The most recent Federal Aviation Administration data shows, of all the consortium airports, the Olympia Regional Airport was the busiest. In 2006, the Olympia Regional Airport recorded almost 89,000 total aircraft operations, or 243 operations per day (see Table 6). An operation is defined as a takeoff or a landing. Tacoma ranked second among Northwest Consortium airports in terms of total aircraft operations, with almost 75,000 total takeoffs and landings in the most recent FAA data, or 205 operations per day. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

19 Table 6: The Roseburg Regional Airport beat the State of Oregon s projections for total aircraft operations in the most recent FAA data by more than 6,000 additional takeoffs and landings. The State s own aviation study projected Roseburg would see roughly 24,000 total operations in The Airport had more than 7,700 additional takeoffs and landings in 2006 above the State s projection. Roseburg totaled almost 32,000 operations in the latest FAA data, or 87 operations per day (see Table 6). While Bowerman Field had the fewest operations of the Northwest Consortium airports, it still had a little more than 25,000 total takeoffs and landings, or 69 operations per day, according to the latest FAA data (see Table 6). It should be noted that Bowerman Field serves the smallest catchment area of all the Northwest Consortium airports, so it would be expected that the Airport would host fewer operations than the others in the Consortium. While it is difficult to determine the true number of passengers using each airport, due to the nature of the general aviation traffic they host, the Departments of Transportation in the states of Washington and Oregon have developed some estimates as to the total number of passengers Northwest Consortium of Airports Small Community Air Service Development Grant Application June

20 flying through the Northwest Consortium airports in 2005, on general aviation flights. The numbers should be treated as estimates, and not as solid passenger counts, but they give an indication of the demand for local air service in the Northwest Consortium markets. State of Oregon estimates show the Roseburg Regional Airport saw roughly 47,000 total general aviation passengers in 2005, or 129 passengers per day (see Table 7). This was the highest estimated passenger total of all Northwest Consortium airports, likely due to the way the Oregon Department of Transportation estimates general aviation passengers versus the way the Washington Department of Transportation estimates passengers. Table 7: The Olympia Regional Airport saw roughly 15,600 total general aviation passengers in 2005, or 43 passengers per day, according to the State of Washington s most recent estimates (see Table 7). At the same time, the Tacoma Narrows Airport saw 10,000 estimated general aviation passengers, or 27 passengers per day. Bowerman Field in Aberdeen/Hoquiam saw 5,300 estimated general aviation passengers in 2005, or 15 passengers per day. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

21 Together, the airports in the Northwest Consortium saw almost 78,000 total estimated general aviation passengers in 2005, or 213 estimated passengers per day. This is a high number of origin and destination passengers, considering the lack of commercial air service at any of these Consortium airports. These estimates indicate that local travelers in the Northwest Consortium communities, and those traveling to Northwest Consortium communities, will go out of their way to seek out air service options going as far as to charter general aviation or business aircraft to access these cities by air. These passengers are the ones the Consortium will seek with the launch of commercial air service, to and from Portland. State of Washington and Oregon passengers estimates clearly illustrate there is a demand for local air service in all four Northwest Consortium markets. The Consortium believes the best option for meeting this air service demand is launching non-stop flights to and from Portland International Airport. These flights will give Northwest Consortium travelers access to more than 50 one-stop cities around the world, further stimulating, not only passenger traffic in these markets, but the economy in each market, as well. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

22 Detailed Explanation of Proposal While the combined catchment area of the airports in this Northwest consortium is home to more than 1.9 million people, none of the four airports in the region have commercial air service. Moreover, while there is access provided to the national air transportation system at other airports in the Northwest, these airports are difficult to get to for the majority of those living within the consortium catchment area due to geography, topography, and the existing system of roads. In order to better serve these 1.9 million people, and to offer their first ever true access to air service, the Northwest consortium proposes a new airline, operating 9 seat prop aircraft, enter the Northwest, with a hub at Portland International Airport (PDX), operating daily flights to Olympia Regional Airport, Tacoma Narrows Airport, Bowerman Field in Hoquiam, and Roseburg Regional Airport (see Figure 8). Figure 8: Proposed Routes: Portland to Olympia, Tacoma, Hoquiam/Aberdeen, and Roseburg Northwest Consortium of Airports Small Community Air Service Development Grant Application June

23 The consortium proposes that the new airlines flights be operated with 9 seat aircraft, with three daily flights in each direction between Portland and all consortium cities (see Table 9). Aircraft will overnight in Tacoma and Olympia, allowing for business travelers to travel to Portland, and beyond, in the morning, and return the same evening. Table 9: Proposed Schedule Tacoma Portland Origin Destination Departs Arrives Block Time Equipment TIW PDX 6:05am 7:00am :55 C402 PDX TIW 10:05am 11:00am :55 C402 TIW PDX 11:20am 12:15pm :55 C402 PDX TIW 3:10pm 4:05pm :55 C402 TIW PDX 4:25pm 5:20pm :55 C402 PDX TIW 9:00pm 9:55pm :55 C402 Proposed Schedule Olympia Portland Origin Destination Departs Arrives Block Time Equipment OLM PDX 6:10am 6:56am :46 C402 PDX OLM 10:25am 11:11am :46 C402 OLM PDX 11:30am 12:16pm :46 C402 PDX OLM 3:30pm 4:16pm :46 C402 OLM PDX 4:35pm 5:21pm :46 C402 PDX OLM 9:05pm 9:51pm :46 C402 Proposed Schedule Hoquiam/Aberdeen Portland Origin Destination Departs Arrives Block Time Equipment PDX HQM 7:40am 8:32am :52 C402 HQM PDX 8:55am 9:47am :52 C402 PDX HQM 12:40pm 1:32pm :52 C402 HQM PDX 1:50pm 2:42pm :52 C402 PDX HQM 6:00pm 6:52pm :52 C402 HQM PDX 7:15pm 8:07pm :52 C402 Proposed Schedule Roseburg Portland Origin Destination Departs Arrives Block Time Equipment PDX RBG 7:35am 8:41am 1:06 C402 RBG PDX 9:00am 10:06am 1:06 C402 PDX RBG 12:40pm 1:46pm 1:06 C402 RBG PDX 2:05pm 3:11pm 1:06 C402 PDX RBG 5:55pm 7:01pm 1:06 C402 RBG PDX 7:20pm 8:26pm 1:06 C402 Northwest Consortium of Airports Small Community Air Service Development Grant Application June

24 The proposed schedule assumes a Cessna 402 operating at an economical average cruise speed of 190 knots. This is well below the maximum cruise speed of 215 knots. The schedule adds ten minutes on each end of each flight for taxi time. The subsequent block times for each flight are 55 minutes for Tacoma Portland, 46 minutes for Olympia Portland, 52 minutes for Hoquiam Portland, and 1:06 for Roseburg Portland (see Table 9). These flight times are competitive with current service to other airports in the region, including Portland Seattle and Portland Eugene. The new airline should have interline agreements with all airlines, except Southwest, at Portland. The new airlines service would connect to 56 one-stop destinations in the US, Canada, Mexico, Europe, and Asia (see Figure 10). Connections would be seamless at PDX, with the new airlines passengers only having to change gates while their bags would be transferred automatically. Figure 10: Connections Available via the Portland Hub Northwest Consortium of Airports Small Community Air Service Development Grant Application June

25 Portland is the ideal hub for new service due to its location at the center of the consortium, and the wide range of competing airlines offering service at PDX. Portland is served by 15 airlines and their regional affiliates, including a number of low cost carriers. Portland fares are among the lowest on the west coast. This will help ensure the new airlines connections through PDX are priced appropriately to draw, not only business travelers, but also leisure travelers. At PDX, Northwest consortium travelers will have access to flights on Air Canada, Alaska/Horizon, American, Continental, Delta, Frontier, Hawaiian, jetblue, Lufthansa, Mexicana, Northwest, Southwest (with the purchase of two tickets connecting itineraries not available), United, and US Airways. No other Northwest airport can grant that breadth of access to the national and international air transportation system. The consortium proposes that a relatively small portion of the cost of starting the new service be supported up-front with federal funds from the Small Community Air Service Development Program. Of the total project cost of $1,650,000, only $200,000 or 12% - will be used for advertising projects. The federal share of this project will be $1,500,000. Local airports and economic development agencies in the consortium have already raised $150,000 in funding for the project. The Airports of the Northwest consortium will pay for startup costs out of existing funds. These costs will involve preparing the four airports for commercial airline service. This will allow the majority of the funds raised - $1,450,000 to be used for risk mitigation for the airline willing to enter these four Northwest markets. The bulk of the grant money - $1,450,000 - will be available to provide insurance in case the new carrier needs help building passenger numbers, especially during the first year of operations. With demand for the service in the Northwest, the consortium projects the new flights in all four markets will be fully self-sustaining on a year round basis in the second year of operation. Leaders at all four airports in the consortium believe the addition of an air carrier to these smaller, niche, Northwest markets will stimulate demand in the region and aid the economic viability of their communities. Through the successful introduction of targeted service to Portland, consortium hopes to prove these markets can succeed. If, for some unforeseen reason, service is not commenced in a timely manner by any of the airlines currently being targeted for new service under this proposal, the Consortium proposes to Northwest Consortium of Airports Small Community Air Service Development Grant Application June

26 use federal grant money awarded under the Small Community Air Service Development Program to recruit another carrier which has right sized aircraft for the missions described in this application. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

27 Expected Results The projected results on routes from the Northwest Consortium airports to Portland are based on an estimate of two flights per day, seven days per week. This projection assumes the service would be operated by two daily Cessna 402 twin prop aircraft. The projections would not change substantially should a single engine Cessna Caravan be substituted. Two Cessna 402 flights per day would add 18 seats to the Olympia market each day (see Table 11). It is expected that the new entrant airline would incur direct operating costs of $400 per segment between Olympia and Portland, or $1,169,600 in annual operating costs. It is projected that the new entrant airline would board 14,634 passengers in its first two years of full operations in Olympia (see Table 11). These passengers would produce an estimated $49,982 in monthly revenue, as of the fifth month of new service and revenue would stay, at least, at that level through the end of the second year of service. Total revenue per flight is estimated to total $417 by the fifth month of new service. It is expected that the Olympia Portland route would generate $1,302,394 in total airline revenue for the new entrant carrier in the first two years of service. Load factors are projected to average 60% by the sixth month of new service on the Olympia Portland route, and to stay at that level each month through the end of the second year of service (see Table 11). The average one-way fare between Olympia and Portland is projected to be $89. The new airlines projected costs on the Olympia - Portland route are expected to total roughly $59,400 per month by the fifth month of new service (see Table 11). This includes $5,400 per month in marketing and advertising, based on a rate of $5 per seat. The cost per turn is projected at $50 for each flight, while the average cost per segment is projected at $400, with current fuel prices. Total revenues in the first two years of service on the Olympia Portland route are projected at $1,302,394 (see Table 11). Total costs on the route are projected at $1,447,380 over the first two years of service. The Olympia Portland route is projected to lose $144,986 in its first two years of service, which is projected to be offset by the funding provided by the Small Community Air Service Development Program. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

28 Table 11: Pro Forma Analysis, Olympia Portland Northwest Consortium of Airports Small Community Air Service Development Grant Application June

29 Two Cessna 402 flights per day would add 18 seats to the Tacoma market each day (see Table 12). It is expected that the new entrant airline would incur direct operating costs of $450 per segment between Tacoma and Portland, or $1,315,800 in annual operating costs. It is projected that the new entrant airline would board 14,634 total passengers in Tacoma in its first two years of full operations (see Table 12). These passengers would produce an estimated $55,598 in monthly revenue, as of the fifth month of new service and revenue would stay at that level, or grow slightly, through the end of the second year of service. Total revenue per flight is estimated at $463 by the fifth month of new service. It is expected that the Tacoma Portland route would generate $1,448,730 in total airline revenue for the new entrant carrier in the first two years of service. Load factors are projected to average 60% by the seventh month of new service on the Tacoma Portland route, and to stay at that level each month through the end of the second year of service (see Table 12). The average one-way fare between Tacoma and Portland is projected to be $99. The new airlines projected costs on the Tacoma Portland route are expected to total roughly $54,000 per month by the fifth month of new service (see Table 12). This includes $5,400 per month in marketing and advertising, based on a rate of $5 per seat. The cost per turn is projected at $50 for each flight, while the average cost per segment is projected at $450, with current fuel prices. Total revenues in the first two years of service on the Tacoma Portland route are projected at $1,448,730 (see Table 12). Total costs on the route are projected at $1,593,580 over the first two years of service. The Tacoma Portland route is projected to lose $144,850 in its first two years of service, which is projected to be offset by the funding provided by the Small Community Air Service Development Program. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

30 Table 12: Pro Forma Analysis, Tacoma Portland Northwest Consortium of Airports Small Community Air Service Development Grant Application June

31 Two Cessna 402 flights per day would add 18 seats to the Roseburg market each day (see Table 13). It is expected that the new entrant airline would incur direct operating costs of $750 per segment between Roseburg and Portland, or $2.47 million in annual operating costs. It is projected that the new entrant airline would board roughly 14,634 passengers in its first two years of full operations (see Table 13). These passengers would produce an estimated $83,678 in monthly revenue, as of the fifth month of new service and revenue would grow to $96,552 per month by the end of the second year of service in Roseburg. Total revenue per flight is estimated to total $697 by the fifth month of new service. It is expected that the Roseburg Portland route would generate $2,180,412 in total airline revenue for the new entrant carrier in the first two years of service. Load factors are projected to average 60% by the seventh month of new service on the Roseburg Portland route, and to stay at that level each month through the end of the second year of service (see Table 13). The average one-way fare between Roseburg and Portland is projected to be $149. The new airlines projected costs on the Roseburg Portland route are expected to total roughly $90,000 per month by the fifth month of new service (see Table 13). This includes $5,400 per month in marketing and advertising, based on a rate of $5 per seat. The cost per turn is projected at $50 for each flight, while the average cost per segment is projected at $750, with current fuel prices. Total revenues in the first two years of service on the Roseburg Portland route are projected at $2,180,412 (see Table 13). Total costs on the route are projected at $2,470,780 over the first two years of service. The Roseburg Portland route is projected to lose $290,368 in its first two years of service, which is projected to be offset by the funding provided by the Small Community Air Service Development Program. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

32 Table 13: Pro Forma Analysis, Roseburg Portland Northwest Consortium of Airports Small Community Air Service Development Grant Application June

33 Two Cessna 402 flights per day would add 18 seats to the Aberdeen/Hoquiam market each day (see Table 14). It is expected that the new entrant airline would incur direct operating costs of $450 per segment between Aberdeen/Hoquiam and Portland, or $1.32 million in annual operating costs. It is projected that the new entrant airline would board roughly 14,634 passengers in its first two years of full operations in Aberdeen/Hoquiam (see Table 14). These passengers would produce an estimated $55,598 in monthly revenue, as of the fifth month of new service and revenue would grow to $64,152 per month by the end of the second year of service. Total revenue per flight is estimated to total $463 by the fifth month of new service. It is expected that the Aberdeen/Hoquiam Portland route would generate $1,448,730 in total airline revenue for the new entrant carrier in the first two years of service. Load factors are projected to average 60% by the seventh month of new service on the Aberdeen/Hoquiam Portland route, and to stay at that level each month through the end of the second year of service (see Table 14). The average one-way fare between Aberdeen/Hoquiam and Portland is projected to be $99. The new airlines projected costs on the Aberdeen/Hoquiam - Portland route are expected to total roughly $54,000 per month by the fifth month of new service (see Table 14). This includes $5,400 per month in marketing and advertising, based on a rate of $5 per seat. The cost per turn is projected at $50 for each flight, while the average cost per segment is projected at $450, with current fuel prices. Total revenues in the first two years of service on the Aberdeen/Hoquiam Portland route are projected at $1,448,730 (see Table 14). Total costs on the route are projected at $1,593,580 over the first two years of service. The Aberdeen/Hoquiam Portland route is projected to lose $144,850 in its first two years of service, which is projected to be offset by the funding provided by the Small Community Air Service Development Program. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

34 Table 14: Pro Forma Analysis, Aberdeen/Hoquiam Portland Northwest Consortium of Airports Small Community Air Service Development Grant Application June

35 Revenues between all four Northwest Consortium airports and Portland, in the first two years of service, are projected at $6,380,226 (see Tables 11 through 14). Total costs on the routes between all four Northwest Consortium airports and Portland are projected at $7,105,320 over the first two years of service. The routes between the four Northwest Consortium airports and Portland are projected to lose $725,054 in the first two years of service. This loss will be offset by the funding provided by the Small Community Air Service Development Program. It is not unusual for air service, in new and unproven markets, to lose money in the first two years of service. Airlines avoid the risk of entering new markets due to this reality. In the Northwest Consortium markets markets that haven t had scheduled air service of this type in decades the risk factor is a major deterrent to new air service. The Northwest Consortium markets realize the cost involved in launching the communities new air service, and have developed this proposal, under the Small Community Air Service Development Program, to mitigate that cost and risk. In order for the Northwest Consortium communities to have a realistic chance in securing a new air carrier, a grant under this Program will be essential to mitigate that carrier s risk. In today s high priced fuel environment airlines are not looking to expand into unproven markets. A grant is the only realistic way for the Northwest Consortium airports to receive new service. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

36 Letters of Support Northwest Consortium of Airports Small Community Air Service Development Grant Application June

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49 Current Air Service at Northwest Consortium Airports There is no current scheduled commercial air service at any of the Northwest Consortium airports. Despite the lack of commercial flights, the airports, collectively, saw more than 78,000 estimated origin and destination passengers on general aviation flights in There is significant demand for air service in all four Consortium communities. Current Passenger Traffic in Northwest Consortium Markets The States of Washington and Oregon estimate passenger traffic at all their airports that don t have current commercial air service. Each state works to determine just how many origin and destination passengers fly through the airports on general aviation flights. The most recent state estimates were done, in both states, in Each state has a slightly different methodology for estimating passengers at non-commercial air service airports, so the numbers from state to state are always calculated different, taking into account passengers on different types of flights. The State of Oregon estimates the Roseburg Regional Airport served an average of 130 origin and destination passengers per day on general aviation flights, or 47,300 total passengers, in 2005 (see Table 15). This was the highest passenger estimate of all the Northwest Consortium airports in The State of Oregon s aviation study, generally, has much higher passenger estimates at non-commercially served airports than does the State of Washington. The State of Washington s latest air service study at airports not served by commercial scheduled air service estimates the Olympia Regional Airport sees an average of 43 passengers per day on general aviation flights, or 15,600 total passengers in 2005 (see Table 15). This is the highest general aviation passenger number of any airport in the State, outside Seattle, itself. Similarly, the Tacoma Narrows Airport sees an estimated 27 passengers per day on general aviation flights, or 10,000 total passengers in Bowerman Field in Aberdeen/Hoquiam sees an estimated average of 15 passengers per day, or 5,300 total passengers in Northwest Consortium of Airports Small Community Air Service Development Grant Application June

50 Table 15: Altogether, based on Washington and Oregon estimates in 2005, the Northwest Consortium airports serve an average of 214 passengers per day on general aviation flights (see Table 15) an extraordinary number considering the lack of any commercial air service at any of the airports. Using the origin and destination passenger numbers for the four Northwest Consortium airports, a basic picture of the demand for local commercial air service can be ascertained. Still, using this method, the demand for air service in Olympia, Tacoma, and Hoquiam is likely underestimated by the State of Washington s low estimates of origin and destination general aviation passengers. To handle the current origin and destination passenger traffic at the Roseburg Regional Airport of 130 passengers per day, as estimated by the State of Oregon, an airline would need to operate 7 flights a day each way, on aircraft seating 9 passengers each, between Roseburg and Portland (see Table 16). Using the same aircraft, an airline would need to operate 3 flights per day each way between Olympia and Portland to handle the origin and destination passenger demand that s currently handled with general aviation aircraft. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

51 Table 16: Using the same method, the Tacoma Narrows Airport could support two flights a day each way to Portland, with a 100% load factor, on 9 seat aircraft (see Table 16). Even Aberdeen/Hoquiam, with just 5,300 total origin and destination passengers carried by general aviation aircraft per year, could support a flight a day each way to and from Portland. This method of estimation is not wholly accurate, but it indicates the demand for local air service in the Northwest Consortium markets. Together, this method of estimation shows that the Consortium markets, together, could immediately support 13 flights a day each way to and from Portland on 9 seat aircraft, with a 100% load factor. It s likely, however, that the Olympia, Tacoma, and Aberdeen/Hoquiam markets are vastly underestimated by the State of Washington s most recent origin and destination passenger estimates. Moreover, new commercial air service in each of the Northwest Consortium markets will likely stimulate additional traffic, beyond the traffic estimated by the most recent state studies. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

52 The state studies only represent the proverbial tip of the iceberg in terms of demand for local air service in the Northwest Consortium markets. Business travelers in these markets most often drive to other airports in the region, rather than charter a general aviation aircraft to fly locally. The state estimates don t take into account travelers the Northwest Consortium markets that fly from other airports, such as Seattle and Eugene. In fact, these passengers are much more numerous than those who fly locally on private aircraft. These passengers will provide the majority of local trips from Northwest Consortium airports. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

53 Air Service Deficiencies at Northwest Consortium Airports A better way to understand the demand for air service in the Northwest Consortium markets is to determine what percentage of passengers at the larger, commercially served airports in the region come from their catchment areas. In order to do this, one must first determine what percentage of the larger, commercially served catchment area s population comes from the Northwest Consortium airports. Then, one can use that percentage of the catchment area population to estimate what percentage of the larger airport s total passengers come from the Northwest Consortium airports service areas. The Olympia Regional Airport catchment area, as defined in the Executive Summary of this application, is home to roughly 357,000 people. The Seattle-Tacoma International Airport catchment area, as defined by the Airport itself, contains 3.91 million people including all of those in the Olympia area. Thus, the Olympia Regional Airport catchment area contains 9.1% of the Seattle catchment area residents. If one then assumes the Olympia catchment area also produces 9.1% of Seattle s origin and destination passengers 17.6 million origin and destination passengers annually the Olympia catchment area produces roughly 1.6 million of those passengers who fly in and out of Seattle each year (see Table 17). Table 17: Northwest Consortium of Airports Small Community Air Service Development Grant Application June

54 With the Olympia Regional Airport catchment area responsible for 9.1% of Seattle s origin and destination passengers (see Table 17), it can be assumed the Olympia market produces an estimated 2,193 origin and destination passengers per day each way. The Tacoma Narrows Airport market, as defined in the Executive Summary of this application, contains an even larger percentage of Seattle catchment area travelers. Tacoma s catchment area population of 1.07 million people represents 27.4% of the total Seattle catchment area. If it is then assumed Tacoma produces 27.4% of the origin and destination passengers who currently use the Seattle airport, the Tacoma Narrows catchment area is responsible for 4.82 million annual origin and destination passengers (see Table 18). Table 18: If the Tacoma Narrows market produces its share of origin and destination passengers who currently fly in and out of Seattle 27.4% of passengers (see Table 18) then it can be assumed the Airport produces 6,066 origin and destination passengers per day each way. This number of local origin and destination passenger is more than sufficient to support commercial air service at the Tacoma Narrows Airport. The population of the Aberdeen/Hoquiam catchment area, not including the areas that overlap with the Olympia catchment area, has a current population of roughly 200,000 people. This represents 5.1% of the larger Seattle-Tacoma International Airport catchment area population (see Table 19). Assuming the Aberdeen/Hoquiam catchment area also produces 5.1% of the origin and destination passengers at Seattle, it would be responsible for more than 897,000 annual passengers. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

55 Table 19: If the Aberdeen/Hoquiam catchment area actually produces its share of Seattle origin and destination passengers, which equates to roughly 5.1% of total Seattle passengers (Table 19), it would produce 1,230 passengers per day each way. While the Aberdeen/Hoquiam area might not truly produce that many origin and destination passengers, due to the long distance and difficulty of the drive to Seattle, the estimate indicates the area has more than enough local demand to support limited commercial air service. The Roseburg Regional Airport s market is currently considered a part of the Eugene Airport catchment area. Roseburg s catchment area population of 280,000 people represents 45% of the Eugene Airport total catchment area population of 622,000 (see Table 20). In 2006, the Eugene Airport saw 718,400 origin and destination passengers. Assuming the Roseburg market area produced 45% of those origin and destination passengers, it was responsible for more than 323,000 passengers in With the Roseburg Regional Airport catchment area responsible for 45% of Eugene s origin and destination passengers (see Table 20), it can be assumed the Roseburg market produces an estimated 443 origin and destination passengers per day each way. That number of local passengers would be sufficient to support multiple regional jet flights per day, much less a limited number of 9 seat prop flights. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

56 Table 20: Assuming the four Northwest Consortium airports produce their share of origin and destination passengers at Seattle and Eugene, together they have the potential to produce a total of more than 7.6 million annual passengers, or 10,472 passengers per day each way (see Table 21). This total passenger demand is comparable to a top 30 US origin and destination passenger market. Still, the Northwest Consortium markets aren t seen in the same light as major airline markets. Table 21: Northwest Consortium of Airports Small Community Air Service Development Grant Application June

57 It s likely, even with local air service provided at all four Northwest Consortium airports that the majority of Northwest Consortium catchment area travelers will continue to drive to other airports to access the national air transportation system. It is difficult to change peoples travel habits. All origin and destination projections used in conjunction with this proposal assume only a small portion of the passengers generated in the Northwest Consortium markets will actually fly locally. Still, if just 5% of Northwest Consortium catchment area passengers fly from the local Consortium airports, there will be more than enough passengers to support the new service, and ensure its profitability. Assuming 5% of the current passengers from the Northwest Consortium markets fly from their local Consortium airport, instead of Seattle or Eugene, the combined Consortium markets will still produce 524 origin and destination passengers per day, or 190,895 annual passengers (see Table 22). Using this formula, the Tacoma Narrows Airport is projected to produce the most origin and destination passengers, consistent with its ranking as the largest catchment area in the Northwest Consortium of airports, with 330 passengers per day, or more than 120,450 passengers annually. Table 22: Northwest Consortium of Airports Small Community Air Service Development Grant Application June

58 If just 5% of the origin and destination passengers living within the catchment area for the Olympia Regional Airport choose to support local air service, instead of driving to Seattle to access the national air transportation system, the catchment area would produce 110 passengers per day, or 40,150 annual origin and destination passengers (see Table 22). If the same percentage of local passengers chose to support service at Bowerman Field in Aberdeen/Hoquiam, that catchment area would produce 61 origin and destination passengers per day, or 22,265 annual passengers. Assuming 5% of those who live in the Roseburg Regional Airport support local air service, instead of driving to Eugene for flights, Roseburg would produce 22 origin and destination passengers per day, or 8,030 annual passengers (see Table 22), based on a 5% share of the current Roseburg passengers who use the Eugene Airport. Even with large amounts of leakage 95% of total catchment area origin and destination passengers to Seattle and Eugene, the Northwest Consortium airport markets produce sufficient total passengers to support local air service profitably. Using the origin and destination passenger numbers projected in Table 22, and assuming a very high 78% load factor or 7 of 9 seats filled on a 9 seat prop aircraft the combined Northwest Consortium markets could currently support 75 flights per day to and from the Portland hub (see Table 23). With 7 of 9 seats filled on 9 seat aircraft providing new service, and assuming just 5% of local catchment area travelers use the service, the Tacoma Narrows Airport market could immediately support as many as 47 total flights per day, or 23.5 flights per day each way to and from Portland (see Table 23). The Olympia Regional Airport, under the same assumptions, could support 16 flights per day, or 8 flights per day each way. While Aberdeen/Hoquiam and Roseburg produce far fewer passengers than Tacoma or Olympia, due to their much smaller catchment area populations, they still produce a sufficient number of passengers to support the proposed new air service on 9 seat prop aircraft. With 7 of 9 seats filled, and assuming just 5% of local catchment area travelers use the service, the Aberdeen/Hoquiam catchment area would still produce sufficient origin and destination passengers to support 9 daily flights, or 4.5 flights per day each way, between Bowerman Field and Portland (see Table 23). Northwest Consortium of Airports Small Community Air Service Development Grant Application June

59 Table 23: Using the same assumptions, the Roseburg Regional Airport would produce enough origin and destination passengers to support 3 flights per day to and from Portland. All of these origin and destination passenger projections are crude, and don t take into account the new service stimulating additional passengers, which new service almost always does. These numbers aren t meant to give a true market for new service, but rather an indication of the size of the Northwest Consortium s passenger demand. Even if just 5% of the current passengers produced in each of the Northwest Consortium markets flies locally and that number will most certainly be higher with local air service suddenly available all four markets produce a large enough number of passengers for the service to be successful. For too long the airports in this Northwest Consortium have been unserved. These are vibrant markets, with large and diverse business communities. Local air service is essential to all four markets growth. This proposal uses a successful model, already endorsed by the Department of Transportation under a Small Community Air Service Development Grant in Indiana, to bring local air service to underserved cities. The success of new service in the Northwest Consortium Northwest Consortium of Airports Small Community Air Service Development Grant Application June

60 markets, while not assured, is highly likely due to the sheer size of the origin and destination passenger markets in the Consortium. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

61 Extenuating Factors Affecting Air Service in the Northwest The geography and topography of the Pacific Northwest makes it difficult to travel by road between many of the region s largest communities. The Northwest is laced with mountain ranges, and is home to one of the most rugged stretches of coastline in the world. While the States of Oregon and Washington have done a tremendous job in building roads and highways through some of the most challenging environments in America, there are many stretches that become impassable in poor weather which is frequent as storms blow in off the Pacific Ocean. The difficulty of getting around by car in the Northwest has made regional airports much more important in this region than in most other places in the world. This is evidenced by the large number of aircraft operations at the Northwest Consortium airports. Due to the difficulty of driving between the Northwest Consortium airports and other parts of the Northwest, each Consortium airport saw, at least, 70 aircraft operations defined as a takeoff or landing per day in 2006 (see Table 24). Table 24: Northwest Consortium of Airports Small Community Air Service Development Grant Application June

62 The Olympia Regional Airport is currently the busiest airport in the Northwest Consortium, with an average of 243 aircraft operations per day in 2006, according to the most recent numbers from the Federal Aviation Administration (see Table 24). The Tacoma Narrows Airport saw an average of 205 operations per day in 2006, while the Roseburg Regional Airport had an average of 87 operations per day in the same year. Bowerman Field in Aberdeen/Hoquiam saw an average of 70 operations per day in 2006 a large number considering, not only, the size of the community, but also the size of the airfield. The large number of daily aircraft operations at each of the Northwest Consortium airports indicates the significant demand for local air service, brought about, at least somewhat, by the isolation of each community. While Tacoma, Olympia, and Roseburg sit along Interstate 5, all have challenges in accessing the national air transportation system. From Tacoma and Olympia the main challenge is the ever increasing traffic in the Seattle metroplex. Rush hour traffic causes the normal 40 minute drive from Tacoma to Seattle to take longer than an hour and a half at times, making it inconvenient, and environmentally irresponsible, for business travelers to waste time in traffic to access air service. The same can be said of the drive between Olympia and Seattle, which should take a little more than an hour in normal traffic, but frequently takes more than two hours in rush hour traffic. The challenge between Roseburg and Eugene, along Interstate 5, is the rugged terrain. Roseburg sits in the Umpqua Valley, a V-shaped valley carved by the Umpqua River. Eugene sits to the north, at the southern base of the Willamette Valley. Between these two valleys, the Coast Range and the Cascades merge, in a collection of high peaks and deep ravines. Interstate 5 winds through this region with sharp curves, inclines, and declines. The drive is difficult during the day, in good weather. In poor weather, at night, it can take significant extra time to drive the Interstate safely. Aberdeen/Hoquiam is the most isolated of the Northwest Consortium communities. Located along the Pacific Coast, the area is separated from the rest of the Consortium by the Coast Range, and the south edge of the Olympic Mountains. There is no Interstate highway leading to Aberdeen/Hoquiam. The drive to Olympia is 51 miles, but it takes more than an hour and 10 minutes due to the difficult terrain and that s in good weather. The coast of Washington is not known for its good weather. It sees rain and wind, in the form of Pacific cyclones, roughly 200 days a year, making the drive to Olympia difficult if not impossible. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

63 Airports in the Consortium have long pushed for air service to link their isolated communities with the national air transportation system. A study done by the Oregon Department of Aviation in 2005 indicated the need for air service from many of the region s currently unserved airports to a regional hub, such as Portland. The Study showed that these unserved communities, such as those in the Northwest Consortium, have a pent-up demand for local air service. It showed, in Roseburg in particular, that the community wanted air service that was frequent and reliable, and that could connect them, not only to regional hubs, but to destinations around the country with a single stop. In Roseburg, respondents to the State of Oregon Study said their most important factor in choosing to fly from the Roseburg Regional Airport instead of flying from Eugene, would be the schedule of the local flights. The second most important factor was the reliability of service ie, the completion factor. Cost was the third most important factor in choosing to fly from the Roseburg Regional Airport, while comfort and type of aircraft were rated the least most important factors. With this survey information in mind, the service proposed in this application, provided by a 9 seat aircraft with service to Portland, running on a frequent schedule, would likely be ideal for potential Northwest Consortium passengers. Local air service has never been more important to the local economies of smaller communities through the country. The Northwest Consortium communities, while being home to more than 1.9 million people collectively, still lack the air service connections that would make them more attractive to new and continued investment. Due to their relative isolation, the Consortium communities should be high on the list of communities that must soon be served by a commercial airline, with a Department of Transportation investment. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

64 Availability of Alternate Airports The Pacific Northwest is home to two major hubs Seattle and Portland. Outside of those two main airports, there are a number of smaller cities that have no service at all. The airports in Olympia, Hoquiam, Tacoma, and Roseburg would serve a large area of the Northwest with no current local access to the national air transportation system. Table 25: Alternate Airports in the Pacific Northwest Seattle serves as an alternate airport for Tacoma and Olympia, but for passengers from both regions the drive can be a frustrating one, with frequent traffic delays on an overcrowded Interstate 5. The minimum drive time from Tacoma to Seatac is 40 minutes, but it frequently takes longer than an hour. The minimum drive time from Olympia to Seatac is an hour and 10 minutes, but it frequently takes an hour and a half. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

65 Hoquiam/Aberdeen has no access to air service outside Seattle or Portland. The drive from the coast to either of those airports is more than three hours, through Washington s Coast Range. Roseburg is, perhaps, the most isolated community in the Northwest consortium. It is an hour and a half from air service to the north, at Eugene, and to the south, at Medford. Roseburg is more than three hours from its closest hub Portland. The majority of the 1.9 million people who live within the combined catchment area for the Northwest consortium airports have no reasonable access to commercial air service. This service is essential to the economic growth of these Northwest cities, and in line with the goals of the Small Community Air Service Development Program. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

66 Use of Local / Federal Funds Startup Cost Offsets The Northwest consortium proposes to use existing funds at each airport to pay for start-up costs in support of new service. Money will be reimbursed to the new carrier as invoices are submitted detailing the work performed to offset the acquisition of necessary equipment to begin service (items include carts, tugs, power units, computer equipment, cabling, software, etc.). Unspent funds will roll into the advertising and marketing program. Revenue Guarantee The consortium proposes to make available at least $1,450,000 in funds for a revenue guarantee to the new carrier on the Portland routes, to cover start-up losses that may occur during the first twelve months of service. Subject to negotiation, payments will be made to the new carrier quarterly, when income derived from passengers and cargo is less than agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used. Marketing and Advertising The Northwest consortium proposes to spend $200,000 in funds on marketing and advertising promotions in support of the consortium s first commercial air service. The program will allow for $50,000 in advertising and marketing funds in each market. The goal is to increase ridership and usage through targeted regional campaigns. Additional Costs As part of this program, the Northwest consortium understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. In addition, the consortium expects to incur some expenses in the recruitment of a new airline. The Airports of the consortium will pay for these additional expenses out of other airport sources and will not incorporate these fees and charges into this proposal. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

67 Public / Private Partnerships A number of local partners have committed to work with these local airports to promote and market the new service. Contacts will be made to all regional members of chambers of commerce and similar organizations, and those with an interest in growing the economic base of the communities through local business growth, attraction of new businesses and the promotion of tourism and visitor traffic via the airports. Local chambers of commerce will act as an information bridge between the four Northwest consortium airports and each community s businesses. The chambers represent thousands of Northwest businesses. Chambers are in a unique position to spread word about new air service in the market, and to promote its use. Theses chambers of commerce will be vital in the launch of any new air service. Local governmental agencies are also actively involved in the development of air service at Northwest consortium airports, due to the importance of that air service to the expanding local economy. City and county leaders in each community will continually work with airport leaders to promote the new service proposed herein, and to ensure that each airport has the resources it needs to be competitive. Air Service Advisory Groups All four Northwest consortium airports are owned and operated by public governing bodies. Local Ports own and operate the airports in Hoquiam (Port of Grays Harbor), Olympia (Port of Olympia). The City of Tacoma owns the Tacoma Narrows Airport. In Roseburg, the airport is owned and operated by the City of Roseburg. All airports in the consortium are advised and overseen by the governing boards of their respective owners. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

68 Local Air Service Development Efforts All four Northwest consortium airports have long been underserved and, in most cases, lacking air service altogether. The airports decided in the fall of 2007 to work together, as a consortium to address the lack of access to the national air transportation system over the wide swaths of the rugged Pacific Northwest. Of all the Northwest consortium markets, only the Olympia Regional Airport has had commercial air service in the last decade. From 2002 through 2004, Olympia has 19-seat service, on Big Sky Airlines metroliners, to Spokane. The service was pulled when Big Sky was purchased by Mesaba, and underwent a huge strategy shift, pulling out of Northwest markets in favor of markets in other parts of the country. Since that time, the Port of Olympia has been actively searching for a replacement service. For the first time, it is now joined by a collection of other Northwest airports, using their combined strength to bring air service to an unserved region containing more than 1.9 million residents. In-kind Services from the Community The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services. Grays Harbor Economic Development Council Grays Harbor Chamber of Commerce Grays Harbor Tourism Quinault Indian Nation Thurston County Economic Development Council Thurston County Convention and Visitors Bureau Thurston County Chamber of Commerce Umpqua Economic Development Partnership Coos Curry Douglas Business Development Partnership Roseburg Area Chamber of Commerce Gig Harbor Chamber of Commerce Northwest Consortium of Airports Small Community Air Service Development Grant Application June

69 Performance Measures The success of the program will be based on two variables. The first measure of success will be the recruitment and retention of an airline to provide service between the airports of the Northwest consortium and Portland. When new service is initiated, the first measure of success will be met. The consortium will judge the second measure of success by the increasing number of enplanements at each airport. The measurement of enplanements will include a monthly comparison, once the program begins, to past enplanement numbers. Financial Controls As the sponsor, the Port of Olympia will be the responsible party for all fiscal matters and DOT reporting requirements. The group is established as a Port Authority, which is a public governing body. As a public entity the DOT can be assured that proper financial controls are in place to guarantee that the DOT s grant will be used in accordance with any subsequent agreement. The Port of Olympia understands that the grant is a reimbursable grant, meaning the Port is responsible for program expenditures and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant request. Return on Investment The consortium has developed a cost effective and achievable strategy to add new service in four unserved and isolated markets in the Pacific Northwest. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The launch of commercial air service, and the new access created to the national air transportation system for a wide area containing 1.9 million people is in line with the major goals of the Small Community Air Service Development Program. Approximately $200,000 of the $1,650,000 in total cash is committed to being spent. The remaining $1,450,000 in cash available for the revenue guarantee portion of the grant may never be expensed. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

70 DOT Exit Strategy The Northwest consortium has developed this proposal as a one-time grant. While the initial startup costs will be paid for out of existing airport funds in each market, the advertising and marketing program will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will also be in place for twelve months, with two additional twelve-month periods available for negotiation. It is projected that the service will be financially self-sustaining in each market within the second twelve months of service. Alternate Plan In the unforeseen circumstance that the Northwest consortium is unsuccessful in recruiting Cape Air to begin non-stop Portland service before the end of summer 2009, the consortium will seek another airline that can offer service to the Portland hub, with similar aircraft. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

71 Olympia Regional Airport Background Olympia Regional Airport is perfectly positioned on the south Puget Sound. The Airport has the facilities available to handle virtually any commercial air service, with a terminal ready for an airline tenant. The Airport is owned by the Port of Olympia, which also operates one of the west s largest inland seaports. Olympia Regional Airport has two runways, one of which is 5,501 feet in length, and another which is 4,157 feet long. Runway 17, the longer of the two, has a full ILS (instrument landing system) approach for use in poor weather. The Airport is a 24-hour a day facility, with no restrictions on night or morning operations. Table 26: Aerial Photo, Olympia Regional Airport Northwest Consortium of Airports Small Community Air Service Development Grant Application June

72 Tacoma Narrows Airport Background Tacoma Narrows Airport offers a whole new approach to the Puget Sound, and its rapidly becoming the choice for those in private aviation who are traveling to visit sites south of Seatac. Business leaders from around the country, with access to private aircraft, have already discovered just how convenient Tacoma Narrows really is, when compared to Seattle-Tacoma International and Boeing Field. Tacoma Narrows sees more than 1,300 business jet arrivals and departures each year. Commercial air service would expand this option to anyone in the Tacoma area not just the select few. Tacoma Narrows has a single runway, situated in a north-south direction due to the prevailing winds, numbered 17/35. The runway is 5,000 feet in length, and 150 feet wide. Runway 17 has full ILS (instrument landing system) capability. Tacoma has the facilities to handle virtually any commuter aircraft, and most jets, in almost any weather condition. The Airport is also equipped with full US Customs Service facilities that can be available 24 hours a day, 7 days a week. Tacoma Narrows is one of the few airports in the Northwest with international gateway status. Table 27: Aerial Photo, Tacoma Narrows Airport Northwest Consortium of Airports Small Community Air Service Development Grant Application June

73 Bowerman Field/Port of Grays Harbor Background Bowerman Field is the only jet capable airfield on the Pacific coast of Washington State. Originally called Moon Island Airport in the 1940s, Bowerman Field is located right along the coast, with a single runway 5,000 feet in length. The Airport has the only ILS (instrument landing system) approach on the Washington coast. The Airport was named after Robert Bowerman, who was a fighter pilot in World War II. Bowerman came back from the war in 1946, and formed Western Washington Airways, which became the main carrier in Hoquiam. The field was named after Bowerman in 1953 in honor of his contributions to aviation in the region. Bowerman Field has the facilities available for commercial air service, with room for an airline ticket counter, gate area, and tarmac space. Service to the Airport would fill a long-term void in the national air transportation system along the Pacific coast. Table 28: Aerial Photo of Bowerman Field, Hoquiam. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

74 Roseburg Regional Airport Background Located within Roseburg s city limits, the Roseburg Regional Airport is also known as Marion E. Carl Memorial Field. The Airport is named after Major General Marion Eugene Carl, a World War II ace fighter pilot, record setting test pilot, and legendary naval aviator. Born in Hubbard, Oregon, Carl won a number of aviation awards, and has been honored for his excellence in both World War II and Vietnam. Carl died in 1998, and Roseburg Regional Airport was named in his honor following his death. The Airport has a single runway, which is 4,600 feet in length. Runway 16/34 is situated with a north-south orientation due to the winds that often funnel up and down the Umpqua Valley. The runway in Roseburg is not equipped with any instrument landing aids, but the weather is above IFR (instrument flight rules) minimums more than 80% of the time. The runway does have an approved precision GPS approach and a VOR approach. Table 29: Aerial Photo, Roseburg Regional Airport Northwest Consortium of Airports Small Community Air Service Development Grant Application June

75 Olympia Community Information As the capital of the State of Washington, Olympia is the center of all governmental activities, and home to a number of companies that work closely with government agencies. The City is one of the few capitals in the country with no current air service. Olympia is named for the view of the Olympic Mountains to its northwest, across the Puget Sound. The area was first settled by the Lushootseed people, including the tribes of Squaxin, Nisqually, Puyallup, Chehalis, and Suquamish, more than a thousand years ago. The region was then settled by Europeans in the late 1700s, as Peter Puget (for whom the Sound was named) brought his crew on the Vancouver Expedition. Olympia slowly grew through 1800s and 1900s, until 1949, when a major earthquake destroyed many of the buildings in the City. The City experienced another major earthquake in 2001 the Nisqually earthquake which caused hundreds of millions in damage from Portland to Vancouver, BC. Today, Olympia ranks among the best cities in which to live not only on the west coast but in the US. Forbes Magazine ranks Olympia as the number 8 city for business and careers in The City moved up from number 10 in Sperling s ranking of the Best United States Cities in 2007 included Olympia at number 16. Olympia ranked number 36 on Country Home Magazine s list of the Best Green Cities in Olympia was featured in the 2006 edition of 50 Fabulous Places to Raise Your Family. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

76 Olympia s economic engine is fueled by the State government, which means that the region benefits from the Northwest s most stable workforce, with a well educated community, and a well-supported public school system. Olympia also benefits from a temperate climate, moderated by the Pacific Ocean, with mild winters and warm, dry summers. The City sits at the south end of the Puget Sound, with the outdoors right on the doorstep of downtown. The City is known for its saltwater beaches on the Sound, its urban forest of big-leaf maples and Douglas firs, and the skyline that s dwarfed by the majesty of the Olympic Mountains and the Cascades. What s New in Olympia With the solid base of government employment, the economic development agencies in the south Puget Sound have been able to focus on attracting new businesses, rather than retaining businesses already in the region. In the last four years, hundreds of new jobs have been created in the Olympia area, as the economy continues to diversify. Nearly 600 new jobs have been added in Thurston County and the south Puget Sound since Retail companies have added more than 750,000 new square feet of space in the south Puget Sound in the last three years. Among major retailers to locate in the south Puget Sound is Cabela s outdoor store, which opened in the fall of The 185,000 square foot store has hired 350 new employees, and is expected to draw at least 3 million visitors/tourists per year. Cabela s will generate at least $7 million a year in local economic impact. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

77 Economic development agencies are currently working with a collection of more than 20 new companies that are interested in locating operations in the Olympia area. These new companies indicate that local commercial air service at the Olympia Regional Airport will be very important to their ultimate location choice. In 2006, the Thurston County Economic Development Agency led a trade mission to Beijing, Shanghai, and Hong Kong that resulted in a million dollars in new contracts for south Puget Sound companies. Olympia Area Economic Overview The Olympia economy relies on Washington State government as a stabilizing factor, providing reliable, high-paying jobs that anchor the region. As of 2006, the State employed more than 30,000 in various administrative roles. Due to the impact of government jobs, the Olympia economy doesn t see the ups and downs that are common in manufacturing, industrial, and agricultural economies. Olympia has long been a center for trade and transportation, with the Port of Olympia housing a number of shipping companies, commercial fishing operations, and trucking companies. Intermodal transportation continues to be very important to the economic health of the south Puget Sound. Through the mid 1960s and 1970s, wood and paper processing was a huge part of the south Puget Sound economy. But by the 1990s, with the timber industry in decline across the Northwest, wood and paper became a much smaller part of the Olympia economy, as more high-tech manufacturing took its place. Companies such as Dart Containers, Albany International, Amtech, and Big Toys, Inc. have been adding jobs since 2000, manufacturing plastics, industrial supplies, and machinery. Economic development agencies in the south Puget Sound continue to promote the area has a center for high-tech and telecommunications jobs. To that end, the Thurston County Economic Northwest Consortium of Airports Small Community Air Service Development Grant Application June

78 Development Corporation was able to recruit Univera, a biotechnology firm, to relocate to Olympia from its original headquarters in Colorado. One cannot get a total picture of the Olympia economy without recognizing the impact of tourism. The tourism sector continues rapid growth, as the Northwest is recognized worldwide for its incredible beauty. Olympia is well positioned as the southwest gateway to Olympic National Park, the main gateway to Mount Rainier National Park (60 miles closer than Seattle), and an alternate gateway to Mount Saint Helens National Volcanic Monument (equidistant to Portland). Olympia also offers its own attractions, including political tourism, and all the outdoor activities associated with the Puget Sound. The Olympian newspaper reports tourism spending in Thurston County in 2005 topped $210 million, up from $153 million in 1998, despite the lack of any local commercial air service. Top Employers in Thurston County Firm/Agency Employees Washington State Government 30,000+ Local Government 10,000+ Providence Hospital System 2,500+ Tribal Government 2,500+ Federal Government 1,000+ Group Health Cooperative 500+ Columbia Capital Medical Center 500+ Wal-Mart 250+ St. Martin s University 250+ Costco Wholesale Group 250+ Source: Thurston County Economic Development Corporation, 2004 Select Company Profiles Providence Health System With its largest operation in Portland, Providence Health System includes a network of 29 hospitals around the Northwest. Providence operates the most extensive hospital network in Olympia and Thurston County, with annual revenues of $5.6 billion. Providence s network of Olympia-area facilities, require frequent travel to the much larger system in Portland. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

79 Univera Univera Life Sciences moved its headquarters from Colorado to Olympia in 2004, and now employs several hundred people at its corporate headquarters and research facility. Univera is one of the world s leaders in the development of new consumer health products to treat any number of ailments. The company has offices around the world, with facilities in countries such as Russia, China, Korea, and Mexico. Port of Olympia After years of struggle with the decline of timber shipping, the Port of Olympia is finally growing again, reporting its first profit in a decade in The Port is one of the largest shipping sites for bulk products such as metals and limestone. The Port encompasses 60-acres, offering three deepwater docks. The Port has grown international trade with Asia in the last few years, with its own US Customs office, and the Port is designated as a Foreign Trade Zone. Amtech Recognized as one of the fastest growing companies in Washington State, Amtech is a manufacturer of composites. The company designs, engineers, and manufactures its products in Olympia, for use in commercial and military applications. Amtech has markets around the world, which requires frequent travel for sales and engineering staff. Dart Containers Dart is the world s leading maker of food storage containers, and is well known for its Styrofoam cups and plates. Dart has a major facility in Tumwater, Washington, just miles from the Olympia Regional Airport. Dart has other facilities in California, Illinois, Florida, Michigan, Kentucky, North Carolina, Texas, Mississippi, and Pennsylvania. The company has international facilities in Mexico, Canada, the United Kingdom, Australia, and Argentina. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

80 South Puget Sound Tourism Located halfway between the Northwest s two largest cities, Seattle and Portland, Olympia and the south Puget Sound are close enough to be within driving distance of more than 10 million residents. But increasingly, tourists are coming from outside the Northwest to experience a taste of life where the outdoors meets the city. Olympia, itself, is a center for political tourism, with hundreds of thousands of visitors coming to the City each year to see the Washington State Capitol building. The City also features a revitalized downtown, including a number of unique shops and restaurants, along with northwest micro breweries. But the real star of the region is the physical environment. Olympia sits in a dramatic setting, with the Olympic Mountains rising to the northwest of the City, and the Cascades, along with Mount Rainier, rising to the east. Both National Parks are an easy drive from the Olympia Regional Airport. The City also sits at the south end of the Puget Sound, the saltwater inlet leading to the Pacific Ocean, providing fishing, boating, and kayaking opportunities. Mount Rainier National Park An active volcano, Mount Rainier rises 14,410 feet, making it the highest point, not only, in Washington State, but also in the Cascades of Oregon and Washington. With 26 permanent glaciers, Mount Rainier is the most glaciated peak in the lower 48. Mount Rainier National Park includes the Mountain, itself, and many of the surrounding peaks. The Park lies just 81 miles from the Olympia Regional Airport, which is the closest airport to the Mountain. The Park draws more than two million visitors each year. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

81 Olympic National Park Just 95 miles from the Olympia Regional Airport, Olympic National Park is one of the most untouched spots in the western US. The Park draws more than 2.7 million visitors each year, despite the lack of easy access. Olympia serves as the southwest gateway to the Park, but without air service to the region, the number of visitors to the Park is suppressed. South Puget Sound A vast inland sea that stretches for more than 80 miles from Olympia to the Straight of Juan de Fuca and the Pacific Ocean, the Puget Sound is the most well-known waterway in Washington State. The south tip of the Sound comes right into downtown Olympia. The southernmost reaches of the Sound are still untouched, unlike the parts of the Sound in the Seattle area, which means tourists seek out the south Sound for fishing, boating, and hiking. Several million people visit the Sound each year. Washington State Capitol Completed in 1928, the Washington State Capitol is an unmistakable landmark on the Olympia skyline. The Capitol draws millions of visitors each year for tours, many of whom come from around the Northwest. The Capitol is considered to be the last great domed building built in the US. The Capitol is surrounded by lavish gardens that were patterned after the Tivoli Gardens in Copenhagen, Denmark. Higher Education in Olympia The Olympia region is home to a four-year college and a four-year university, along with a community college. These schools enroll almost 14,000 full-time students from around the Northwest and more than 40 states. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

82 Higher Education Enrollment in Olympia, 2008 Institution Enrollment The Evergreen State College 4,500 St. Martin s University 1,400 South Puget Sound Community College 6,000 Total Enrollment 11,900 The Evergreen State College Founded in 1967, the Evergreen State College of one of the more recent four-year liberal arts colleges to be established in the US. The college s campus is in Olympia, itself, offering both Bachelor of Arts and Bachelor of Sciences degrees, along with Master s degrees in Environmental Sciences and Public Administration. The College employs more than 500 highly educated faculty members. St. Martin s University Located in nearby Lacey, St. Martin s University is a small, Roman Catholic university. Founded in 1895 as an all-boys boarding school, the University began accepting women in According to US News and World Report s Best Colleges, 2008 edition, St. Martin s is ranked 44 th among universities offering masters degrees in the western US. The college offer 21 bachelor s degrees, and six master s degrees, and is best known for its engineering programs. South Puget Sound Community College Offering two-year associates programs in a number of fields, and offering students a change to transfer to four-year universities, South Puget Sound Community College enrolls more than 6,000 full-time students each semester. The College is located on a 125-acre campus near Shoreview Park in Olympia. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

83 Tacoma Community Information Located 32 miles from the larger, more recognized city of the Puget Sound region of western Washington Seattle Tacoma is a major city of influence in its own right. Tacoma s names comes from the Native American word for Moun t Rainer Tahoma which sits just to the southeast of the City. Tacoma is a major port city, where the Northern Pacific Railroad meets the Puget Sound at Commencement Bay. Today, Commencement Bay is home to the Port of Tacoma, and a number of international shipping companies. Tacoma is in the midst of a downtown renaissance. It started with the University of Washington (based in Seattle) establishing a branch campus in downtown Tacoma in The same year, historic Union Station was restored. Downtown s Cultural District has added a number of attractions since 1996, including the Washington State History Museum, the Museum of Glass, the Tacoma Art Museum, and the Greater Tacoma Convention and Trade Center. Tacoma s Theatre District also got a boost in the form of the Broadway Center for Performing Arts, which runs five theatres within a few clocks of each other downtown. As attractions downtown have grown, so has the number of people living there, as Tacoma begins to look more like its neighbor to the south Portland than its neighbor to the north Seattle. The Tacoma area continues solid population growth, outpacing many similar-sized cities around the country. Pierce County with Tacoma at the County s seat is growing by about 3% per year since 2000, with a total current population of 750,000 people. Those who live and work in the Tacoma area have varied jobs in varied industries. The economy of the region is stabilized by the military presence in the area, with two major installations just outside Tacoma city limits. McChord Air Force Base has more than 10,000 servicemen and woman stationed within its gates, while Fort Lewis is home base for more than 39,000 soldiers. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

84 Tacoma is also a center for trade, with one of the largest and deepest protected saltwater ports in the world, connected to a major rail terminus. The economy also features investment in hightech computer production, timber and wood products, machinery and equipment manufacturing, printing and publishing, food processing, plastics, metals, and textiles. Tacoma is also the gateway to the Northwest s most dramatic ecological sites. In fact, Pierce County has the largest elevation change of any county in Washington State, as it goes from sea level at the Port of Tacoma, to more than 14,400 feet at Mount Rainier. Pierce County is the home of Mount Rainier, which sits squarely within the County s borders. Tacoma sits along the Puget Sound, a large, 80-mile saltwater inlet, that leads directly to the Straight of Juan de Fuca and the Pacific Ocean. The Sound draws millions of visitors each year for boating, kayaking, and fishing. What s New in Tacoma The Tacoma area continues to see solid job growth as major companies expand, and new companies move to the region for its high quality of life and less crowded atmosphere than nearby Seattle. As the Tacoma News-Tribute wrote, Military employment, up. Higher education, up. Financial services, government, gaming, manufacturing, all up. Not only is employment up, but many companies continue to hire for open positions. Toray Composites, a major manufacturer of components for the Boeing 777, and new composites for the Boeing 787 Dreamliner, continues to grow in Tacoma, adding 195 workers in the last three years. The plant is expected to triple in size as the 787 line speeds-up over the next five years. The 1,300 Toray employees in Tacoma join the company s 34,000 worldwide including its headquarters in Japan. Toray is just one example of Tacoma s growing aviation infrastructure. Military employment in Pierce County continues rapid growth, as the number of soldiers and staff based as Fort Lewis has grown by 2,300 in the last three years, and the number of servicemen and women based at McChord has grown by 2,200 over the same period. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

85 The only major drawback to a company locating in Tacoma and Pierce County is the lack of reliable, business-oriented commercial air service. For many high-tech companies, the distance to access air service at Seattle-Tacoma International is too far to be practical. Local air service at Tacoma Narrows would help economic development agencies when pitching relocation to the Tacoma area. Tacoma Economic Overview Tacoma is in the midst of an economic boom, with a strong base of military investment in a pair of local bases, and large, stable investments in governmental services. While those sectors grow steadily, aerospace, high-tech, and administrative/executive sectors are seeing rapid growth. In 2006, more than $1 billion in extra purchasing power was added to the Pierce County economy, with hundreds of new jobs, and large in-migration from larger and more expensive cities on the west coast, such as San Francisco, Los Angeles, and Phoenix. The average household income rose to $34,700 in 2006, up from $32,200 in At the same time, retail sales in the region are up 7.7% from 2004 to The Port of Tacoma has becoming a driving factor in the region s economy, with container business projected to grow by 50% by The Port is perfectly situated to pull container business away from Seattle due to lower costs and better connectivity to other transportation nodes, such as freeways and rail lines. The Tacoma area is home to the operations of eight Fortune 500 companies and nine Fortune 1000 companies. Among the large corporations with significant offices in the region are Boeing, McDonald s, Intel, and Qwest. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

86 Top Employers in Tacoma/Pierce County Employer Employees Industry U.S. ARMY, FORT LEWIS 39,204 Military LOCAL PUBLIC SCHOOL DISTRICTS 13,275 Education U.S. AIR FORCE, MCCHORD 10,772 Military WASHINGTON STATE EMPLOYEES 7,649 Government Offices FRANCISCAN HEALTH SYSTEM 3,896 Health services MULTICARE HEALTH SYSTEM 3,874 Health services U.S. ARMY MADIGAN HOSPITAL 3,231 Military health care PIERCE COUNTY GOVERNMENT 3,160 Government Offices WASHINGTON STATE EDUCATION 2,958 Colleges CITY OF TACOMA 2,044 Government Offices FRED MEYER STORES 1,689 Retail EMERALD QUEEN CASINO 1,688 Casino gaming SAFEWAY STORES INC. 1,613 Retail (grocer) WAL-MART STORES 1,480 Retail GOOD SAMARITAN HOSPITAL 1,471 Health services TACOMA PUBLIC UTILITIES 1,413 Public utility TORAY/BOEING CO. 1,395 Aerospace MCDONALD S CORPORATE 1,290 Corporate INTEL CORP. 1,200 Computer electronics U.S. POSTAL SERVICE 1,173 Government Offices MILGARD MANUFACTURING 1,118 Glass, window manufacturing RUSSELL INVESTMENT GROUP 1,035 Investment management COSTCO 980 Wholesale STATE FARM INSURANCE 965 Insurance LONGSHORE LABOR UNION 900 Port of Tacoma Source: The Economic Development Board for Tacoma-Pierce County 2005 Fortune 500 Companies in the Tacoma Area (Excluding Seattle) Firm Rank Fred Meyer/Kroger 26 Boeing 28 State Farm Insurance 31 Intel 62 Weyerhaeuser 105 McDonald s 108 Burlington Northern Santa Fe 157 Qwest Communications 178 Source: Fortune Magazine, 2007 Northwest Consortium of Airports Small Community Air Service Development Grant Application June

87 Select Company Profiles Boeing The mainstay of the Puget Sound economy for more than 80 years, the Boeing Company is the world s leading manufacturer of commercial and military aircraft. In addition to its Renton and Everett plants in the Seattle area, Boeing has major operations in Pierce County where it and its subcontractors build composite components for the company s 777 and 787 programs. Boeing has customers in 90 countries and major operations in Chicago, Long Beach, and St. Louis. Intel It all began with the Intel microprocessor, a small chip in almost every personal computer. Today, Intel has grown to become the largest computing company in the US, ranked number 62 in the Fortune 500. Intel s largest operation in Washington State is located in DuPont, a short drive to the south of Tacoma. Intel also has major operations in the Portland area, where it is Oregon s largest employer. Milgard Manufacturing Based in Tacoma, Milgard is one of the world s leading manufacturers of windows and glazing products. Milgard has its headquarters in Tacoma, along with a manufacturing plant. It has major operations in the Portland area with its second largest office and plant. Milgard distributes windows to retailers in every state, and a number of foreign countries. Precision Aerospace Based in Grand Rapids, Michigan, Precision Aerospace builds many of the most complicated mechanical components for jets of all shapes and sizes. Precision s Tacoma plant builds parts for many commercial jets, including those built by Boeing and Bombardier. McDonald s Restaurants Corporate Offices The Chicago-based restaurant giant, McDonald s has its west coast corporate offices in Tacoma. The office helps coordinate company initiatives with the thousands of Northwest McDonald s franchises. McDonald s is ranked 108 th on the Fortune 500, with more than 30,000 worldwide stores, serving more than 52 million people each day. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

88 Tacoma/Puget Sound Tourism Tacoma is perfectly situated as a gateway not only to the arts and culture of the City, but to the beautiful Puget Sound region of western Washington, and the breathtaking Cascade Mountains including Mount Rainier. With wintertime skiing and snowshoeing juxtaposed against summertime hiking, biking, boating and fishing, Tacoma is a destination for all seasons. In addition to the major attractions in the Cascades and on the Sound, Pierce County is home to 361 freshwater lakes, several glacier-fed rivers, and more than 20 recreational marinas. The County also has a number of cultural attractions, including the Tacoma Museum of Art, the Glass Museum, and the theatre district of downtown Tacoma. Emerald Queen Casino, located just minutes from the Tacoma Narrows Airport, has grown to become one of the region s largest destinations, drawing several million visitors each year. Mount Rainier National Park Mount Rainier National Park includes the Mountain, itself, and many of the surrounding peaks. An active volcano, Mount Rainier rises 14,410 feet, making it the highest point, not only, in Washington State, but also in the Cascades of Oregon and Washington. With 26 permanent glaciers, Mount Rainier is the most glaciated peak in the lower 48. The Park draws more than two million visitors each year. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

89 Crystal Mountain Resort One of the largest ski resorts in the Pacific Northwest, Crystal Mountain draws more than a million visitors each year to its skiing and snowboarding terrain, on the slopes facing Mount Rainier. Crystal Mountain is at the east entrance to the National Park, and it widely considered among the best places in the world for beginner and intermediate skiers. The Resort is also open in the summer, when the chairlift turns into a ride up to the top of the mountain, where a restaurant serves elegant dinners amidst the dramatic sunset. Emerald Queen Casino Owned by the Puyallup Tribe of Indians, the Emerald Queen Casino is one of the largest in the Northwest. The Casino has two different facilities one in Tacoma, and one just up I-5 in Fife. The Fife location also has a 140-room hotel attached to the casino. Today the Casino employs more than 1,600 people in various jobs, and employment is expected to grow to more than 2,000 in the next two years. Tacoma Dome between Seattle and Portland. The world s largest arena with a wooden dome, the Tacoma Dome was on the cutting-edge of technology when it opened in The Dome seats more than 17,000 for more than 150 events each year. The Dome is located on the eastern edge of Tacoma s downtown core, right along I-5, and it has become a landmark on the drive Museum of Glass Focusing on contemporary and Pacific Northwest art, the Museum of Glass is a major tourism draw from around the world. The Museum was located in Tacoma due to the fact the City is Dale Chihuly s hometown. Chihuly is widely regarded as the greatest glass artist of all time. The Museum not only houses the world s premier collection of glass sculpture, but it operates a glass blowing facility, with artists working in the studio everyday. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

90 Fort Nisqually Located within Tacoma s Point Defiance Park, Fort Nisqually is a living history museum on the site of the first European trading post on the Puget Sound. Hudson s Bay Company established the Fort in 1833 as a fur trading outpost. Two of the Fort s original buildings have been fully restored and hundreds of artifacts are currently on display. Higher Education in Tacoma/Pierce County Tacoma and Pierce County are home to three four-year universities and four community colleges. The region s universities are some of the most highly regarded in the Northwest, with two top-rated liberal arts colleges, a branch campus of large State research university, and a collection of solid community colleges teaching skills that are essential in the growing high-tech economy of the Puget Sound. Together these schools enroll more than 35,300 full-time students. In the past four years, schools in the Tacoma area have awarded more than 16,000 degrees. Higher Education Enrollment Institution Full-Time Enrollment University of Washington Tacoma 2,117 University of Puget Sound 2,700 Pacific Lutheran University 3,669 Bates Technical College 5,327 Clover Park Technical College 3,500 Pierce College 3,000 Tacoma Community College 15,000 Total Enrollment 35,313 Northwest Consortium of Airports Small Community Air Service Development Grant Application June

91 University of Washington Tacoma One of three campuses of the world renowned University of Washington system, the University of Washington Tacoma (UWT) opened in the City in UWT was located in downtown Tacoma as part of the redevelopment effort in the downtown core an effort that s success has been evident. UWT admitted its first freshman class in 2006, and the University plans to increase enrollment by, at least, double in the next decade. University of Puget Sound Ranked as one of the top liberal arts colleges in the country, the University of Puget Sound was established in Tacoma in Today, the University enrolls 2,700 undergraduate and graduate students from 47 states and 13 countries in 40 major fields. The University was ranked the number 80 liberal arts college in America in 2007, by US News and World Report. Pacific Lutheran University The largest of the four-year universities in Tacoma, Pacific Lutheran University (PLU) enrolls almost 3,700 students one college and five schools. Founded in 1890 by Scandinavian immigrants to further Lutheran higher education in the Northwest, PLU is an institution of the Evangelical Lutheran Church of America. The University still draws many foreign students from Scandinavian countries. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

92 Aberdeen/Hoquiam Community Information Aberdeen, Hoquiam, and Grays Harbor County are best known in the Northwest as the gateway to the central Washington coast. The region s incredible beauty, where the Coast Range meets the Pacific Ocean, draws millions of visitors each year. The cities of Aberdeen and Hoquiam are home to a growing economy and an outstanding quality of life. Besides being the gateway to the Pacific coast, with the proper air service, Hoquiam will become the gateway to the Olympic Peninsula and Olympic National Park. Its awe-inspiring rain forests offer the most untouched landscape in all of the US, but the Park has been difficult to get to due to the lack of a convenient airport. Grays Harbor County residents enjoy managed population growth, where the urban areas don t impede upon the natural setting. Still, business here thrives with large companies such as Weyerhaeuser, Ocean Spray, and Sierra Pacific operating major facilities. The lifeblood of the economy of the region is tourism, which has a $194 million dollar annual impact, despite the lack of access to air service. The renowned resort destinations of Westport and Ocean Shores bring visitors year round, who enjoy the moderate climate, and the unspoiled beaches. What s New in Aberdeen and Hoquiam While other parts of the Northwest have been hit hard by the decline of timber and other manufacturing, the Grays Harbor County region has used the opportunity to diversify its economy, adding new business, new jobs, and new residents. Since 2004, the population of the region is up 1.3%, while retail sales are up 8.9%. In coastal tourist community, retail sales in tourism-related activities are up 44% since Grays Harbor County has had hundreds of millions of dollars of new investment in the last two years, in virtually all sectors of the economy. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

93 The Westport Shipyard is expanding, with additional work repair ships, bringing 150 new jobs to the area. Paneltech, the Northwest s largest user of paper in its applications, is expanding in Hoquiam, adding another 75 jobs. The Ocean Shores Convention Center is now open, but has trouble luring the larger conventions due to the lack of access to air service. Still, the number of tourists in Ocean Shores exceeded 4 million for the first time in Ocean Protein, a fish processing plant, has completed its $9 million expansion, adding 35 new jobs in Hoquiam. A new casino is planned for Hoquiam, with 12,000 square feet of gaming space. Gray s Harbor College has just completed a new $21 million 71,000 square foot building which will house new classrooms and labs. Grays Harbor Community Hospital, in Aberdeen has completed a new, $14 million emergency department. The City of Aberdeen recently completed a major downtown improvement project to add new lighting on pedestrian corridors, new sidewalks, and decorative statues of the region s endangered animals similar to those found in Downtown Portland. The City of Hoquiam has received a grant to complete the restoration of its old town train station. Grays Harbor County Economic Overview The economy of Grays Harbor County is completing a transition that began in the 1970s and 1980s, away from heavy manufacturing, logging, and milling, and towards tourism and service industries. While timber and ocean trade are still major components of the Grays Harbor County economic landscape, tourism and its related industries are, by far, the largest employers and revenue generators in the region. The tourism impact on the Grays Harbor County economy can t be underestimated. In 2004, tourism related industries brought $204 million to the region, an increase of almost 5% over the previous year (see following table). Tourists spent more than $43 million at area hotels and resorts, $56 million at area restaurants, and $30 million on ground transportation. Grays Harbor County leaders believe these numbers would jump significantly with the addition of local air service at Bowerman Field. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

94 Table 30: Grays Harbor County is still a center for timber and paper production, with major firms such as Grays Harbor Paper, Simpson Door Company, and Hoquiam Plywood anchoring the economy. The area is also a center for shipping and commercial fishing, with the Westport Shipyard now the largest yacht producer in the United States. Washington Crab Products is a major tenant, processing Dungeness crab, while Ocean Spray processes cranberries that are shipped around the world from the harbor. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

95 Top Employers in Gray s Harbor County Firm Employees Westport Shipyard 863 Weyerhauser 807 GH Community Hospital 629 Grays Harbor County 443 Stafford Creek Prison 424 Simpson Door Plant 410 Aberdeen School District 379 Grays Harbor College 375 Quinault Indian Nation 320 Quinault Beach Resort 319 Hoquiam School District 285 Wal-Mart 229 Sierra Pacific 220 Grays Harbor Paper 214 Bank of the Pacific 192 Briggs Nursery 183 Public Utility District 170 Safeway 160 Swanson Foods 145 Anchor Bank 136 Hoquiam Plywood 131 Washington Crab Products 130 Quigg Brothers 120 Pacific Veneer 115 Mary s River Lumber 108 Safe Harbor Technology 104 Rognlin s 101 Timberland Savings Bank 90 Lake Quinault Lodge 75 Ocean Spray 70 Source: Grays Harbor Economic Development Council, 2006 Select Company Profiles Westport Shipyard The Westport Shipyard is a world leader in building boats of all sizes. It is the home of Westport Yachts, the world s 7 th largest manufacturer of high-end yachts, ranging in price from several hundred thousand dollars to several million. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

96 Ocean Spray World famous Ocean Spray is the leader processor of cranberries and other fruit. An agricultural cooperative, Ocean Spray includes growers not only from Grays Harbor County, but all over the US, with growers in Wisconsin, Oregon, California, and Florida. The company s headquarters are in Massachusetts. Ocean Spray growers broughtin more than $1.4 billion in total revenue in Washington Crab Products Based in Westport, Washington Crab Products in a division of Pacific Seafood, the Portland-area based seafood giant. Pacific Seafood was founded in 1941, and today it has operations from Dutch Harbor, Alaska, to San Francisco, with major centers in Seattle, Portland, and headquarters in Clackamas, Oregon (near Portland International Airport). Sierra Pacific Industries One of the largest forest management and timber companies on the west coast, Sierra Pacific has operations from Grays Harbor County all the way to southern California. Sierra Pacific owns more than two million acres of forest land. Sierra Pacific s Washington operations are based in Aberdeen, while its California operations are based near Sacramento, with its headquarters in Redding. Service from Hoquiam to PDX would offer Sierra Pacific leaders a one-stop flight to Redding. Quinault Beach Resort and Casino A large tourist draw to Ocean Shores, the Quinault Beach Resort and Casino is also one of the largest employers of Grays Harbor County s tourism industry. Owned by the Quinault Nation of Indians, the resort offers a beachfront hotel, four restaurants, a number of beachfront activities, and 350 casino gaming machines. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

97 Washington Coast Tourism The Grays Harbor County region offers the best of the Pacific Coast with the best of the mountains of the Northwest. As the region s economy shifts to tourism as the major industry, a number of new attractions have opened, and new resorts have taken advantage of the excellent natural environment. Hoquiam and Aberdeen have long been the primary gateway to the south end of the Olympic Peninsula and Olympic National Park, but due to the lack of convenient air service, the region hasn t realized its full potential in this regard. Despite the relative difficulty in getting to Grays Harbor County, its Pacific beaches, and Olympic National Park, the region still draws more than four million tourists a year, who deposit more than $200 million in revenue. When you take a look at some of the attractions in the region, it s no mystery as to why so many people seek out the area. Olympic National Park Originally founded in 1909, Olympic National Park is one of the most untouched spots in the western US. The park can be divided into three distinct regions: the Pacific coastline, the Olympic Mountains, and the temperate rainforest. Parts of the Park get more rain than any other spot in North America the wettest spot in the US. The Park draws more than 2.7 million visitors each year, despite the lack of easy access. Grays Harbor County serves as the southeastern gateway to the Park, but without air service to the region, the number of visitors to the Park is suppressed. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

98 Westport/Ocean Shores Westport and Ocean Shores are large resort communities on the central Washington coast of Grays Harbor County. The two cities draw more than four million annual visitors, despite the lack of commercial air service within 100 miles. Westport s public marina is the largest on the west coast. Ocean Shores has the wide beaches you would expect for a summer vacation. The cities offer a temperate climate year round, and draw just as many winter storm watchers as summer beach goers. Westport Fishing Trips Deep sea fishing is one of the big draws of Gray Harbor County s coast. At the marina in Westport, visitors find a number of charter fishing vessels offering daily trips out on the Pacific. These ships operate alongside the large commercial fleet. Visitors can fish for halibut, Dungeness crab, ling cod, tuna, and even the famed Pacific salmon. Lake Quinault Lodge Lake Quinault, a spectacular mountain lake in the Olympics, is located a short drive from Bowerman Field. The Lake is crowded by the Lake Quinault Lodge. Listed on the National Historic Register, the Lodge was built in The large, stone and timber Lodge is now owned and operated by the Quinault Indian Nation. Higher Education in Grays Harbor County There are no four-year colleges or universities in Grays Harbor County, but the County is home to Grays Harbor College, which is a two-year community college located in Aberdeen. Set on a picturesque 120-acre campus overlooking the Aberdeen seaport on the Pacific, Grays Harbor College offers dozens of associate degrees to thousands of full-time students. More than half of the students who begin their college career at Grays Harbor College go on to four-year universities. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

99 Roseburg Community Information Founded in 1851, Roseburg has always been the hub of economic and cultural activity for Oregon s Umpqua Valley. The picturesque Umpqua River runs right through town on its way to the Pacific Ocean. Roseburg is nestled in between the Cascade Mountains and Oregon s Coast Range, providing a beautiful setting and many nearby outdoor activities. Roseburg s major industry continues to be timber. The Umpqua Valley is lined with many varieties of firs and cedars, which grow quickly due to plentiful rain in the winter season. These trees have long been the lifeblood of the region, with more than 3,000 people still employed in mills and timber plants in the region. Still, in the last few decades, the businesses of the Umpqua Valley have begun to take advantage of the natural surroundings to draw tourists from all over the Northwest, and all over the country. The rivers are full of salmon and steelhead, the valleys are full of vineyards and wineries, while the mountains are full of hiking and ski trails. A growing number of reports, hotels, cabins, and camping areas are catering to the tourist trade. Roseburg is also the gateway to Crater Lake National Park, where visitors are awed by the pure blue lake left behind by the collapse of an ancient volcano. Crater Lake is one of the most remote National Parks in the world, with no commercial air service anywhere within a hundred miles of the Park s gates. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

100 What s New in the Umpqua Valley The Umpqua Valley continues to see economic growth, like the rest of the Pacific Northwest, as the economy nationwide slows. The Roseburg-area is seeing an influx of residents from larger cities in the west, primarily from California, due to the low cost of living. These new residents are bringing new investment with them, as new companies continually seek-out cities like Roseburg. Murphy Wood Products made a huge commitment to the Roseburg area as it opened a new plant in nearby Sutherlin. The plant will encompass more than 215,000 square feet and employ more than 100 jobs. The total initial investment in the region will top $61 million, not including wages for the workers. The plant will produce laminated veneer. Alfa Leisure of Chino, California recently announced a major move to a 34-acre plot of land in Douglas County, near Roseburg. Alfa will build its line of recreation vehicles at the facility, further cementing Oregon s place as the main provider of the world s RVs. Alfa will hire a total of 200 family-wage employees at full build-out. Roseburg s location on the Interstate 5 corridor was one of the main factors leading to Alfa choosing its Douglas County location. Roseburg Economic Overview The Roseburg economy is slowing diversifying, but timber is still king. More than 21% of the Umpqua Valley s workforce is employed in wood products-related industries. Roseburg-area mills produced 12% of the total timber harvest for the State of Oregon last year. At the same time, the Umpqua Valley economy features six different industries which employ at least 3,500 workers. The service industry, including retails and wholesale sales, is actually the largest in the region, with more than 6,600 total employees and growth of nearly 17% projected by Altogether, the Oregon Employment Division projects that the Umpqua Valley will see 12% job growth in the next ten years. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

101 Table 31: The Umpqua Valley s economy is bolstered by its location along the I-5 corridor, between Portland and San Francisco. It is a convenient stopping point between the two major cities, which is why a number of transportation companies have located in the region in the last few decades. In order to facilitate the relocation of businesses, Douglas County offers a number of enterprise zones, with 100% tax abatement. Oregon also offers business no State sales tax, and no State inventory tax. The business climate in Roseburg is one of the most favorable in Oregon, without growth limitations found in Portland and Eugene. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

102 Top Private Employers in the Umpqua Valley Firm Employees Roseburg Forest Products 2,500 Mercy Healthcare, Inc. 1,162 Seven Feathers Casino Resort 950 Swanson Group, Inc. 530 Ingram Book Company 300 Bayliner 300 Wal-Mart 295 Orenco Systems 295 DR Johnson Lumber 225 TMS 220 Fred Meyer 192 FCC Commercial Furniture 170 Huffman-Wright 145 Umpqua Dairy 139 Alcan Cable 138 Source: Umpqua Economic Development Partnership, 2007 Select Company Profiles Roseburg Forest Products One of the largest family-owned wood producers in the world, Roseburg Forest Product is the largest employer in all of Douglas County. Headquartered just outside of Roseburg, the company has facilities in Oregon, California, Montana, Mississippi, Georgia, and South Carolina. The company makes some of the best building materials in the country in its dozen plants from coast to coast. Umpqua Dairy The largest independent dairy in the region, Umpqua Dairy has been headquartered in Roseburg since The dairy is recognized worldwide for its outstanding, high quality products, which demand a premium price in markets all over the west coast. Umpqua s products are used in such well known brands as Blue Bunny Ice Cream, Otis Spunkmeyer Cookies, and DoGiorno Pizza. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

103 Orenco Systems Based in Sutherlin, just outside Roseburg, Orenco System is the world s leader in building wastewater control systems, including values, pipes, and seals to keep wastewater separate from potable water. Orenco products are distributed in 43 states across the country, with its sales staff is based in the Umpqua Valley. Ingram Book Company Ingram Book Company is one of the largest book wholesalers in America, with more than a million volumes currently in stock. Based in Nashville, with its major west coast distribution center in Roseburg, Ingram provides books to stores, libraries, and schools all over the world. Umpqua Valley Tourism The area surrounding Roseburg continues to grow as a tourist destination. The Umpqua Valley is a center for fly fishing, with one of the few summer Steelhead runs in the world. The Umpqua River also provides a perfect spot for rafting, canoeing, and waterfall exploring. The mountains of the Cascades and the Coast Range have hundreds of hiking trails, and wintertime skiing, drawing hundreds of thousands of outdoors enthusiasts each year. The streams that wind their way through the mountains are forged by the world s preeminent collection of covered bridges. Roseburg is home to one of America s preeminent exotic wildlife parks, where the animals roam free. That experience is complimented by the great natural wildlife spotting available in the hills and mountains surrounding the city, where Elk, deer, coyotes, and cougars comb the cliffs, and eagles, hawks, and falcons soar above. The Umpqua Valley also offers the finer things. All of Western Oregon is experiencing a wine boom, and Roseburg is no different. Dozens of wineries dot the hillsides, where vines grow in the shade-covered valleys. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

104 Umpqua Valley Wine Country The first grapes were planted in the Umpqua Valley in Since then, the industry has exploded, and the west coast wine country now extends from Santa Barbara in the south, through Napa and Sonoma, through the Umpqua and Willamette Valleys, into Western Washington. The complex topography of the region allows a number of varietals to flourish, including Merlot, Cabernet, Syrah, and Grenache. The region is home to more than two-dozen wineries, located close together, perfect for a day s wine tour. Crater Lake National Park The fifth National Park in the US, Crater Lake was established in The Park encompasses the Crater Lake caldera, which represents the remnants of a volcano that was destroyed in a massive explosion. The Lake itself is the deepest in North America, at more than 1,900 feet. The National Park offers hundreds of miles of hiking trails in an alpine forest climate, with snow-capped peaks. It also offers the famed rim road, which circles the entire lake. Crater Lake is in a remote area of Oregon, with no nearby air service. Airline service at Roseburg would be the closest, by more than 60 miles, to the Park s north gates. Wildlife Safari A 600 acre park in Winston, Oregon, just outside Roseburg, Wildlife Safari is one of the few parks where the animal roam free as visitors drive through in their own vehicles. The Park opened in 1973, and it draws more than 100,000 visitors each year. Northwest Consortium of Airports Small Community Air Service Development Grant Application June

105 The Umpqua River System The Umpqua River system is more than 110 miles long, with a number of streams winding from the Cascades, through the Coast Range, and into the Pacific Ocean. The rivers create what s known as the hundred valleys of the Umpqua. The Umpqua offers some of the best whitewater rafting in the Northwest, along with the best salmon fishing in the world. The Rivers draw hundreds of thousands of outdoor enthusiasts to the region each year. North Umpqua Trail System With a trailhead located in the mountains just to the east of Roseburg, the North Umpqua Trail system is 79 miles long. The trails wind their way through Oregon s Cascade Mountains, with forested hillsides topped by huge, towering, snow-capped peaks. There are camping areas located all along the trail system. Seven Feathers Hotel and Casino Located just south of Roseburg in the town of Canyonville, Seven Feathers is owned and operated by the Confederated Tribes of the Umpqua. The hotel and resort offers a number of restaurants, along with Las Vegas-style gaming. Higher Education in Roseburg While there is no four-year college or university in Roseburg, the community is home to Umpqua Community College (UCC). UCC sits on a 100-acre campus overlooking the City of Roseburg. The College currently enrolls more than 15,000 students, making it the largest campus in Oregon outside the Willamette Valley. UCC offers more than two-dozen two year degrees, and it also offers a number of preparatory programs for transfer to four-year colleges and universities. Northwest Consortium of Airports Small Community Air Service Development Grant Application June