Airport Advisory Board

iirport
AIRPORT ADVISORY BOARD AGENDA
REGULAR MEETING
12:00 P.M., P.S.T., FRIDAY, JANUARY 9, 2015
AIRPORT RESTAURANT
975 TERM NAL WAY, ELKO, NEVADA
CALL TO ORDER
The agenda for this meeting of the Elko Regional Airport Advisory Board
has been properly posted for this date and time in accordance with NRS
requirements.
ROLL CALL
APPROVAL OF MINUTES:
September 12, 2014
COMMENTS BY THE GENERAL PUBLIC
Pursuant to N.R.S. 241, this time is devoted to comments by the public, if
any, and discussion of those comments. No action may be taken upon a
matter raised under this item on the agenda until the matter itself has
been specifically included on a successive agenda and identified as an
item for possible action. ACTION WILL NOT BE TAKEN
I. NEW BUSINESS
A.
Prepaid Loyalty Cards for the terminal parking lot. PUBLIC
COMMENT WILL BE TAKEN PRIOR TO ANY AIRPORT
ADVISORY BOARD ACTION: FOR POSSIBLE ACTION.
At the Airport Advisory Board meeting on January 31, 2014 Mr. Jim
Meeks wanted the Airport Director, Mark Gibbs to look into prepaid
loyalty cards for the ones that use the parking on a regular basis.
II.
UNFINISHED BUSINESS
A. Update Aviation Leasing and Hangar Policy. PUBLIC COMMENT
WILL BE TAKEN PRIOR TO ANY AIRPORT ADVISORY BOARD
ACTION: FOR POSSIBLE ACTION.
Elko City Council requested Airport Advisory Board to review the ground
lease rate for aeronautical leases at Elko Regional Airport during the October 4,
2013 Airport Advisory Board meeting (see handout for results of the lease rate
survey). During the October 4, 2013 MB meeting, MB further requested
Airport Management to benchmark the ERA aeronautical leases against industry
norms. The results of the benchmark survey found that ERA’s contract language
for aeronautical leases do not address “reversion clauses” which will be discussed
during this meeting. Motion for consideration: Request Airport Management to
work with City Solicitor to rewrite aeronautical lease contract language to
incorporate best practices of “comparative airports”. Request Airport
Management to write and present to Elko City Council new Airport Lease Rates
and Charges Policy for consideration and adoption.
IlL
REPORTS. No action may be taken upon a matter raised under this item
on the agenda until the matter itself has been specifically included on a
successive agenda and identified as an item for possible action. PUBLIC
COMMENT WILL BE TAKEN PRIOR TO ANY AIRPORT ADVISORY
BOARD ACTION: ACTION WILL NOT BE TAKEN
Staff Reports
—
Airport Director
A. Status of the jet bridge sale.
B. Update on the lease of property across from the dispatch center.
C. General report of Jviation and what they are doing.
D. Update on working to restore EKO-RNO service.
E. Update on ongoing construction contracts.
F. Launch of Airport Website.
G. Update on Unmanned Aircraft Systems (UAS).
Board Announcements
IV.
ADJOURNMENT
COMMENTS BY THE GENERAL PUBLIC
Pursuant to N.R.S. 241, this time is devoted to comments by the public, if
any, and discussion of those comments. No action may be taken upon a
matter raised under this item on the agenda until the matter itself has
been specifically included on a successive agenda and identified as an
item for possible action. ACTION WILL NOT BE TAKEN
NOTE: The ChaIrman, Vice-Chairman, or other Presiding Officer reserves the
right to change the order of the agenda, and if the agenda has not been
completed, to recess the meeting and continue on another specified
date/time.
Respectfully submitted,
Carol Genseal
Technical Assistant
Elko Regional Airport
AELKO
REGIoVAL AIRPORT
December, 2014
BRIEFING SUMMARY COMMERCIAL AIR TRANSPORT
DEVELOPMENT IN NORTHEASTERN NEVADA
Nevada Stale Legislature
Presented by the City of Elko, Nevada
SMALL AMERICAN COMMUNITIES FACE UNCERTAINTY BASED ON NEW AIRLINE
STRATEGY
With domestic crude prices falling and malor U.S. airlines announcing record third quarter profits, one might
wonder why Elko is worried about airline service. Major airlines such as American, Alaska, United and
Southwest are in the strongest financial position they’ve been in decades’.
However, passengers flying between smaller American communities are not usually flying on major U.S. airlines,
but on independent regional airlines with a far less rosy financial picture. While the ticket from a small American
community may say Delta or American most travelers in small markets are likely flying on regional airlines who
are branded under contract with major airlines.
The major U.S. airlines have relinquished much of the small market to regional carriers who operate those flights
on their behalf. Operating smaller regionals on short haul routes (<250 miles) has helped feed passengers to the
malor U.S. airlines that connect large city pairs. This “huh and spoke” system has contributed to increasing
dominance by major airlines in large urban markets and provide economies of scale for operating large aircraft
between cities. Furthermore, major airlines have cut the number and frequency of flights across all markets and
have significantly paired service to smaller airports in order to ensure their planes fly full on every flight they
schedule. This airline strategy focuses away from a consumer based competitive model to one that focuses on
investor profitability. Through limiting the size of their airline fleets; adding and dropping routes to get the
highest return from their mobile aircraft assets, major U.S. airlines have boosted their financial strength.
In this new return-on-investment marketplace, airlines are
looking to the communities that benefit economically from their
service to share in the cost of marketing, advertising, and risks
of operating flights. This cost sharing includes aggressive and
tong Term Regional Air/the Trends
effective marketing to build passenger traffic, financial incentives
for start-up services, and cost-sharing or control risk to achieve a
specified rate of return on an airline’s service to a small
+ Riona/Jets = 70 /20 Seats
community market.
—
÷
Capacity Controls High toad Factors
+ Riing Fares + More Ancii/aiy Fees
÷ Reduced Service at Small Non-Hubs
+ 1onti’iued Math/the Hub Domthance
+ Less Competition
Now that airlines are focused on market return, market forces
dictate longer routes with larger aircraft as the most economical
to operate. Small communities served through small aircraft on
short routes are not where airlines are investing their future
capital. Smaller communities are facing a structural change in
accessing air travel through less competition, higher airline
fares, fewer destinations served, and fewer scheduled flights
served on larger jet aircraft. Unfortunately, some smaller communities in the Western United States are losing
ANTN Digicast., “United Reports Highest-Ever Quarterly Profit”, October 23, 2014
vww.antndigicastcom,’indexcfrn?fuseactionDiciNews&news id=237599
AN’FN Digicast.. “Southwest Posts Record Third-Quarter Profit”, October 23, 2014,
www.antndiaicast.com/index.cfm?fuseaction=DigiNews&news id237598
ANTN Digicast., “American Posts Record-Breaking Quarterly Profit”, October 23, 2014
www.antndiaicast.com/index.cfm?fuseaction=DiaiNews&news id=237297
ANTN Digicast. “Alaska Air Sees Record Third Quarter Results” October 23, 2014.
www.antndigicast.cornlindex.cfrn?fuseaction=DigiNews&news id”237596
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975 Terminal Way Elko, NV 89801 775.777.7190 FAX
EMAIL [email protected]. us
775.777.7193
Air Transportation Development in Northeast Nevada
air service entirely including Yuma, AZ, Chico, CA, Modesto, CA, Moab, UT, and Klamath Falls, OR to name a few
losing air service in 20142.
The Airline Deregulation Act of 1978 removed Federal government control over fares, routes and market entry for
airlines operating in the United States. To protect smaller airline markets from the loss or erosion of airline
service that would occur after
deregulation, the Airline
TOTAL ENPLANEMENTS AT
Deregulation Act established
ELKO REGIONAL AIRPORT
the Essential Air Service (EAS)
90003
program to ensure small
80000
communities received access
70003
to commercial aviation. The
60003
EAS program was put into
z
50303
place
to guarantee that small
—TC)TALENPLANEMENTS
a
communities who were served
40003
by airlines before
30003
Linear (TOTAl
D
ENPLANEMENTS)
deregulation would maintain
20003
a minimal level of scheduled
<10000
air service after deregulation
0
took effect. This program
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
provided Federal money to
YEARS
subsidize airline service to
small community markets that were too small to realize profitability in the free market. Since 1978, Congress
has reduced funding and tightened eligibility requirements for small communities seeking air service under EAS
.
3
,
In 2012, President Obama signed the Federal Aviation Administration Modernization and Reform Act into law.
The act further capped airports participating in the EAS program to only those airports who received funding in
2011. Therefore, no new communities can enter the program should they lose their unsubsidized airline service.
Secondly, the law required subsidized communities must maintain an average of ten passenger enpianements per
service day to participate in EAS
.
4
Elko never participated in the EAS program, but now it is now barred from participating should the current airline
decide to leave this market. Regional Airlines have seen their profits decline since their hey-day in the mid-1990s
when profit margins were at a steady 20%. With major U.S. airlines consolidating through mergers and
bankruptcies, the contracts between major carriers and regionals were rewritten. New airline Capacity Purchase
Agreements (CPA) favored the major airlines left standing after a wave of U.S. airlines disappeared from service
including Trans World Airlines, Air Tran Airlines, and America West Airlines. The new airline agreements capped
the regional airlines profit margin leaving them with a limited ability to control revenue. Regional’s airline fares
were set under contract by their major airline patrons without the ability of the regional airline to schedule their
aircraft. This left regionals with little control over their revenue and limited ability to pass along higher costs to
their customers. Profits at Republic Airlines, a regional carrier, went from $80 million in 2006-2008 to $26.7
million last year losing money in both 2010 and 2011.
When costs rise for regional airlines they cannot raise ticket prices set by the CPA contracts. These CPA contracts
often last 20 years and as costs rise the regional airlines must wait until they can renegotiate their contracts with
the major airlines. With competition fierce between regional carriers, the only major area that these regionals
2
Tristan Hiegler., “Skywest Leaves City”, April 5, 2014 Herald & News. www.heraldandnews.com/ernail blast/skywest-leaves
city/article c6c85194-bc89-l 1e3
Mellisa, Simon., “Sky West to Axe Humbolt County-Sacramento Flights”, August 18, 2014 Times Standard, www.times
standard.com/local news/ci_2636 I 709/skywest-axe-humboldt-county-sacramento-flights
Laura Urseny.. “SkyWest is Leaving Chico” August 14, 2014 The Chicoer www.chicoer.com/news/ci 25523074/modesto-airline-
news-unnerves-chico
Ken Smith.. “Final Departure” August 21,2014, News Review, www.newsreview.com/finaldeparture/id 23360
Rudy Flerndon. “Sky West to Leave Moab” November 19, 2014,Moab Sun Times,
http://www.moabsunnews.com/news/article 87fa7 152-701 8-1 1 e4-bcb4-eb2c6abb4bae,html
Fred Smith, Jr. & Braden Cox., “Airline Deregulation”, The Library of Economics, March 3, 2008.
http://www.econlib.orR/library/Enc/AirlineDeregulation.html
U.S. Department of Transportation., “Community Eligibility” October 10, 2014. http://www.dot.gov/policy/aviation-yolicy/small
community-rural-air-service/essential-air-set-vice
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
can control profits is through reducing expenses. Squeezing airline labor has been how regional airlines have
secured contracts with majors in this competitive environment.
The result is that pay for regional first officers, also named co-pilots, starts around $22,000 a year according to
the Airline Pilot Association. Regional airlines serve as the first entry job into the airline pilot market. Most
. The Federal Aviation
5
applicants spend more than $100,000 for education and flying time to qualify
Administration recently increased the minimum amount of flight time necessary to fly regional aircraft from 250
hours to 1,500 hours thus increasing costs to become a commercial airline pilot by another staggering $50K.
With low starting wages and increasing the number of hours a student pilot must have to obtain a job has left the
regional airline industry
with a worsening pilot
U.S. Short Haul Air Travel Down Significantly
shortage in 2014.
40%
The
regional airline
27.1%
30%
industry has cited pilot
14.7%
20%
shortages in cutting
9.4%
service this year. Republic
10%
Airlines grounded 27
0%
planes and Great Lakes
-10%
Airlines discontinued
w
W -20%
several EAS communities
-30%
this year citing a lack of
-40%
attracting new pilots to fly
-34.6%
-40.9%
their planes
.
6
-50%
-45.3%
J
5-;
LU
0
FYE2001Q2
2008
2003
FYE2O11Q3
With many factors
changing the airline
I >500 Nautical Miles
I 0-250 Nautical Miles
market, small
communities can no longer
rely on airlines serving their market at risk. Small communities that desire access to air service will have to
share the costs in risk traditionally borne by the major airlines. As the major airlines have shifted the risk of
serving small communities to regional airlines it is now regional airlines who ask the communities they serve if
they will share in risk in serving that community. This is a new financial burden that many smaller communities
have never had to entertain, but as the airline market matures it is a question that community leaders’ face if
they want to keep
86 airports suffered a 10% or greater decrease in airline departures
connected to the global
-Nc
marketplace.
TIME
Source- Compass Lexecon
05*
‘HO
Shrinking air service
availability into rural
Nevada communities have
meant that a growing
percentage of Nevadans no
longer fly in Nevada
period. Nevadans are
driving to airports outside
of Nevada primarily
because of lower fares,
better schedules, increase
reliability, and greater air
service choices. Smaller
communities such as Ely
have already lost air
rot. .Gm
o
we
•MC4f
•MIO
HO..,
•
MC,
yfl*
$500
0
ceo
cc.
n
•!ce
.4a
Ioti$• tWO
•elc
,,.
LS*
.cu
.104
*070
.rc
050*
sure
• N
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0401
•
• ci,
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•
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—
Source: Innovuta Schedules. via 0110 online portal CV 2013-2014
Justin Bachman., “With Pilot Shortage. Regional Airlines Search for Someone to Pay Rising Costs” February 28, 2014,
BloombergBusinessWeek.
someone-to-pav-rising-costs
°
Associated Press., “Regional Airlines in Tough Position” September 13, 2014. TRIBLive Buisiness.
http://triblive.comlbusiness/headlines/6772679-74/airlines-regJonal-pilots#axzz3lhCHKLbss
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975 Terrnina Way Elko, NV 89801 775.777.7190 FAX 775.777.7193
EMAIL [email protected]
Air Transportation Development in Northeast Nevada
service completely and Elko may also lose air service if it cannot attract an airline operating the right type of
equipment for the market.
Northeast Nevada Intrastate Commercial Air Service
Currently there is no air service linking Northeast Nevada
communities to Nevada’s major metropolitan communities of Reno
and Las Vegas. Elko in particular was identified by a 2009
Nevada Department of Transportation, Regional Air Service Study
as “economically tied to facilities and services in the Reno urea”.
Significant aviation ties existed between Northeast Nevada and
Reno in the past. A June 2002 Air Traffic Study performed on
Elko’s aviation market by Sixel Consulting Group, Inc. found Rena
was the top air destination for Elko citizens from 1999-2001
serving just under 20,000 passengers annually
. Many business
7
ties are due in part to Reno’s mining headquarters involved in
mining exploration/mining support while actual mining operations
occur in Lander, Elko, Eureka, and White Pine Counties. Based on actual flight traffic between Reno and Elko in
2005-2006 the cost savings of flying versus driving to Rena for Nevadans in 2013 was $1,632,811/per year
. If
8
estimated on a per passenger basis, restoring the EIko-Reno flight will save those flying $166.30 per roundtrip’
versus if they drove. This of course is a conservative estimation based on travel habits in 2005-2006 which were
9,800 passengers. Since that time both the population and the economy of Northeast Nevada have witnessed
double digit growth. Since Elko is an isolated community it is vital that there is reliable access to commercial
aviation. The nearest alternate commercial service airport is in Salt Lake City, UT over three hours away by car.
The cost of travel to drive to Salt Lake City for a flight is $255 and this makes traveling from this region very
costly for our visitors and residents alike.
Also a growing population in Northeast Nevada continues to demand increased medical services from specialized
medical providers located in Reno and Las Vegas. The loss of scheduled air service between Elko and Reno in
2006 has curtailed the number of specialized doctors, nurses and lab technicians traveling from Rena daily to
provide care services in Elko County. Mr. Gene Miller, Chief Executive Officer of Northeaster Nevada Regional
Hospital (NNRH) stated that a lack of air service to Rena reduces the variety of health specialties that are
available to the public in Elko County. The loss of air service to Reno has exacerbated the out migration of
Northeastern Nevadans seeking health care in Salt Lake City, UT. Seventy five percent of health care migration in
Elko County is going to Utah and not to
IRS Rate OneWay Roundtr
providers within Nevada. West
Airport
Cost
01W 2013 Cost
Wendover has no alternative than Utah
when it comes to 24/7 medical care. If
Salt Lake City International (SIC)
226 $0565 $127.69 $255.38
Nevada is interested in growing Elko
Boise Airport (BOl)
292 $0.565 $164.98 $329.98
County’s healthcare services within its
437 $0565 $246.91 $493.81
own borders air service must provide the Las Vegas McCarran International Airport(LAS)
opportunity for Nevadans to
Reno-Tahoe International Airport (RNO)
290 $0565 $163.85 $327.7c
conveniently access specialized
healthcare within Nevada.
Air service is a vital component for Northeastern Nevada Regional Hospital, Elko, to attract and retain new rural
healthcare professionals as a rural teaching hospital. According to the 2008 Nevada Legislative Counsel Bureau
report, “Nevada ranks among the lowest states for the number of health care professionals per 100,000
residents. With regard to nurses, the largest group of health care professionals in 2000, Nevada ranked 50th
among states in the number ofregistered nurses (RNs) per 100,000 residents. Nevada has approximately 514.4
Sixel Consulting Group, Inc.. “Elko, NV Airport Traffic Summary CY 2001. Volume 014” June 2002, on file with Elko Regional
Airport Administrative Offices, 975 Terminal Way. Elko, NV, 89801.
° See Transportation Cost Savings Calculation Table produced by 2014 Elko Regional Airport Passenger
Leakage Study completed by
Forecast, Inc.
p2014 Elko Regional Airport Study Estimating Cost of Driving Versus Flying between Elko and Reno, NV.
975 Terminal Way
Elko, NV 89801 * 775.777.7190 * F
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
RNs per 100,000 residents, which is significantly lower than the national average of780.2
.
“
°
In rural Nevada,
Map 1: Healthcare Resources in Nevada
1•
Owytwe%
knttmmItt
Elico
Washoe
Humboldt
I
Wesriernecca
iNto
,
Pershing
lEil
car
Meur*arn
Loelock
Lander
Eureka
Churchill
White Pine
Rareka
I.
en
—J—
q
I
0
00
Dethater
tthucz
Hewtharne
Mineral
Nye
Lincoln
Esmeralda
CaNente
GetdfleW
S
101
Community Hospitals
•
Community Health Centers
MesquttEJ
•
Rural Health Clinic
•VaIIoy
C
Tribal Health Clinics
•
N
County Seats
Rural Counties
EEl
Frontier Counties
[j
Urban Counties
Las Vegas
101
•‘II.
Rould
-
city H
Clark
0 12.525
50
75
100
Sourci’: Navada Office uf Rural Heslth (2013)
the healthcare shortfall is even worse with only 337 Registered Nurses per 100,000 of the population.
Registered Nurses make up the bulk of healthcare professionals in the State and provides a bell weather
Marsheil Lyons. “Research Brief on Shortage of Healthcare Workers”, Nevada Legislative Counsel Bureau. April 2008,
https://www.leg.state.nv.us/Division/Research/Publications/ResearchBriefs/HealthCareWorkers.pdf
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX.
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
indication for the overall healthcare workforce. The Nevada Legislative Bureau publication noted, “Nevada is
experiencing significant shortages of qualified, competent health care workers in virtually every health care
profession induding nurses, pharmacists, physicians, medical coders, radiology technologists, laboratory
technologists, and health information technicians. The situation in Nevada’s rural regions reflects a national
phenomenon and the shortage is ofgreat concern to many because if compromises access to quality patient care.”
The 2013 Nevada Rural and Frontier Health Data Book stated that, “vast distances separating the state’s rural
communities from urban centers, as well as the considerable distances separating these communities from one
another. Most of Nevada’s rural and frontier communities are located in sparsely populated counties that are
considerable distances from the state ‘s urban and tertiary care centers. The average distance between acute care
hospitals in rural Nevada and the next level of care or tertiary care hospital is 114.7 miles and the average
distance to the nearest incorporated town is 46.5 miles. Consequently, the primary health care delivery issue for
rural residents and communities in Nevada is bow best to overcome the spatial isolation and enormous
geographic distances that characterize most of rural and frontier Nevada”
Intrastate air access to Reno or Las Vegas can provide Elko the mechanism to attract the large labor pool of short
term “traveling” healthcare providers in Reno and California. Long travel times between [Iko and Reno is a
major barrier to attracting qualified staffing to fill short term healthcare vacancies. Fields that NNRH has
difficulty attracting due to the 4 hour commute between Reno and Elko by car are:
•
•
•
•
•
•
•
•
•
•
•
Pharmacist
Lab Technician
Respiratory Therapist
Nursing
General Surgery
OB-GYN
Orthopedic Surgery
Plastic Surgery
Vascular Surgery
Podiatry
Chemotherapy
Access to healthcare services were identified as one of the top health problem (46.7%) facing Elko County
communities in a 2014 Community Health Needs Survey completed by the Office of Statewide Initiatives,
University of Nevada School of Medicine, Rena.
Air service to Reno will also provide a link for residents participating in a new partnership between the University
of Nevada (UNR) School of Medicine, Nevada Health Centers, Elko County and Northeastern Nevada Regional
Hospital, Elko. Under the rural Nevada medical residency program two (2) Internal Medicine residents per month
practice at the rural teaching hospital (NNRH) in Elko. Under the partnership agreement paid for jointly by Elko
County and Northeastern Nevada Regional Hospital, third year Resident Physicians are brought to NNRH to
provide services to the underserved Medicare and Medicaid patients. The program provides greater access to
health care for some of Elko’s most vulnerable residents while also attracting new doctors to the area. Air service
will allow medical residents tied to UNR the ability to conveniently travel between their home and residency
position in Elko.
,1
I
Tabor Griswald,John Packham, Lairna Etchegoychen, Christopher Marchand, Brian Lee., Nevada Rural and Frontier Health Data
Book 2013”, Nevada State Office of Rural Health. April 2013. http://rnedicine.nevada.edu/Docurnents/unsorn/statewide/rural/data
book-20 I 3/FullReport.pdf
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
“1 AM A PHYSIC/AN FROM RENO ORTHOPEDIC CLINIC WE TRAVELLED TO ELKO TWICE
MONTHLY WITH IWO MED/CAL PROVIDERS TRAVEL/I/U ON EACH TRIP... THERE ARE
MULTIPLE PHYSICIAN FROM THE RENO AREA WHO DO SIMILAR IRA VEIJ TO ELKO. A
DENT/ST WHO TRAVELS THREE TIMES WEEKL,’ AN ENT SURUEON WHO TRAVEIJ TWICE
MONIHII A PHSI’IC/IATRIST MONTHLY AND A SPINE S(/RUEON THE LOSS OF AIR
SERVICE IN 2006 HAS STOPPED OUR ABILITY TO PROVIDE ORTHOPEDIC CARE IN ELKO.
/ HOPE YOU ATTRACT A NEW AIRLINE TO PROVIDE SERVICE BETWEEN EL/t’O AND REND,
NV” —PAUL K SHONNARD, MD
West Wendover is also closely linked to Reno as West Wendover’s
largest employer, Peppermill Casino, Inc., has its corporate
headquarters located in Reno. Carson City is also the legislative and
government epicenter of Nevada. Without daily direct air service
those involved in state government in Reno/Carson City have no
alternative but to drive incurring at least one overnight stay on any
trip to Northeast Nevada.
“Linking Northeast Nevada to Reno by air is also critical for the
Nevada Commission on Tourism (NCOT) to organize and market fours
by the travel and convention industry” says, Mr. Christian Passink,
Rural Coordinator for NCOT. Long driving distances preclude the ability of the State to build tour itineraries to
Nevada attractions in Elko and West Wendover. Providing air service is a critical component to allow NCOT to
bring tourist traffic into the “Cowboy Territory”. Without a link to either Las Vegas or Reno, the state cannot
build and market tour packages that are the backbone to attracting and lengthening tourist stays within the
state. Increasing the tourism and convention industries in Northeast Nevada is an essential element to
diversifying a mining centric local economy.
In the past few years both West Wendover and Elko have missed out on convention opportunities due to a lack of
air service within Nevada. It is in Nevada’s interest to promote diversification of rural economies, foster
intrastate business development and tourism. Tom Lester with the Elko Convention and Visitors Authority
(ECVA) stated that attracting small convention business to Northeastern Nevada requires that Elko is tied with
reliable intrastate air service within a 30 minute drive from the convention event. Since intrastate aviation links
are absent in EIko, the ECVA has lost numerous opportunities to host small conventions in Elko because of long
driving distances associated with reaching this market. The EVCA is constructing a 30,000 SF addition to the
convention building opening in fall 2015. With this addition, Elko is keen to increase its convention business and
expand economic opportunities in
Northeastern Nevada.
r
Boise Airport
Northeastern Nevada’s
communities have increasingly
Elko Regional Airport
flown out of Boise, ID, Twin Falls,
3O.2.
ID and Salt Lake City, UT. Western
Nevada has leaked passengers to
Provo, and Salt Lake City, UT.
p’
While many Nevadans in Central
McCarron International
and Eastern Nevada have no
Reno-Tahoe
Airport 69%
practical options other than driving.
International Airport
136%
These trends continue to worsen
having a negative effect on
Nevada’s aviation industry and retards Nevada’s rural economic growth in a globalized, time sensitive world.
SaltLokeCity...
International Airport
—
32
.
Over two thirds of residents purchasing airline tickets in Northeastern Nevada chose to fly from an airport other
than Elko Regional Airport in 2014 citing poor access to air service as the primary reason for seeking flights from
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
7 am a frequent traveler at the airport [or an ERE business systems bnplementation consultant. It would be benelicial to have the options to fly d,’ect
to las Vegas (and/or another hub) as an alternative to just Salt lake Civ th order to make connections to destñiations / travel to around the countly.
/ understand that SkyWest will be retirñig theic turbo prop planes ñì the near future with regionaljet service [or Elko. I hope thic does not reduce the
number of flights th and out each day Havi’ig just 3 inbound and 3 outbound flights to/from Salt lake ic still workable, but ii they were to reduce to
I or 2 per day each way does cause great inconvenience with extended layovers. Even with the current schedule, I’ve sometñnes had to fly to SIC the
night before and stay at a hotel near the aiiport in order to catch a momthg flight from SIC Thic caucus .odd,thrnol expense for me and my
customers. —La,t’ Walker ffirco Acrounting Solutions, Elko
other area airports’
. In 2014, Elko Regional Airport has aggressively sought other airlines to establish a Reno
2
Elko flight, but have had no success. Numerous airlines showed an interest in establishing an Elko-Reno service
connection if the local community would provide a Minimum Revenue Guarantee (MRG) program to defray the risk
associated with entering a new airport market. The minimum revenue guarantee establishes a base level of
revenue that an airline will get for specified air service. If revenue from passengers on the guaranteed flights is
insufficient to meet the agreed-upon minimum, then the airport or other entity making the guarantee is
responsible for making up the shortfall. Depending on revenue from passengers, the other entity may end up
paying all, part, or none of the guarantee. In addition to a MRG, both Elko and Reno have promoted other cost
subsidies to incentivize intrastate air service including waivers or reductions in landing fees or terminal rent for a
specified period of one year. Cash subsidies can be provided that are not contingent on the airline earning a
specified amount of revenue for the service being provided.
Kansas and Wyoming appear to have the only state programs that provide statutory guidelines and a long-term
pool of state funding for incentives. Bills to establish state programs in Louisiana and South Carolina were
proposed but not enacted. Since 2006, the Kansas legislature has appropriated nearly $25 million for the
Affordable Airfare Fund. Money from the fund and local matching contributions have been used as incentives for
air service at the Wichita airport by Southwest Airlines and Frontier Airlines. Since FY 2004, the Wyoming
legislature has appropriated $18 million for the Wyoming Air Service Enhancement Program. The state
Aeronautics Commission decides which projects submitted by airports, for which local matching payments are
required, should be funded. State payments totaling $8.5 million have been made for incentive programs to air
carriers, marketing, and facilities enhancement.
Pussenger Air Service Developmenl Techniques, a 2009 report from the U.S. Transportation Research Board,
identifies methods that have been used in an effort to increase air service or maintain existing service. For the
report, 41 relatively small airports were surveyed on their use of the techniques to develop air commercial air
service in their respective communities. Out of those surveyed by the Transportation Research Board, more than
. Also
3
half of those small airports reported using minimum revenue guarantees to expand or retain air service’
reported by the Transportation Research Board survey of small airports was the use of cost subsidies. Cost
subsidies are financial incentives to reduce an airline’s costs for providing a specified service. Common examples
are waivers or reductions in landing fees or terminal rent for a specified period. Airports may also provide, for a
fee, ground services that an airline would otherwise have to provide itself. This category also includes cash
subsidies that are not contingent on the airline earning a specified amount of revenue for the service being
4
provided. Approximately 60 percent of the airports surveyed indicated that they used some form of cost subsidy’
The State of Nevada can play a significant role in attracting and diversifying commercial aviation within the state.
Nevada’s legislature previously passed the Small Airport Commercial Air Service Grant Program in 2008;
however, the grant was defunded before it was ever implemented. The State of Nevada should assist key rural
markets by providing an airline risk abatement program similar to Wyoming Department of Transportation, Air
Service Enhancement Program. Airlines are willing to share more in depth, sensitive market data with a state
government as opposed to local airports individually. As individual airports within Nevada are competing for
service, the State can assist in negotiating air service contracts for multi-stop regional flights within Nevada.
2
Elko Regional Airport & City of West Wendover, Nevada. ‘2014 Air Passenger Leakage Study’ Published August 24. 2014.
Transportation Research Board of the National Academies. Passenger Air Service Development Techniques. Washington: 2009.
http://onlineubs.trb.or’onlinepubs/acrp/acm rpt 01 8.pdf
‘
Transportation Research Board of the National Academies. Passenger Air Service Development Techniques. Washington: 2009.
htto://onlinenubs.trb.orujonlinepubs/acrp/acrp rpt 018.pdf (accessed Sept. 21, 2010).
3
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected] ko. iw. us
775.777.7193
Air Transportation Development in Northeast Nevada
The state can also better develop relationships and rapport with airline executives by representing many smaller
airports across the state rather than each Nevada airport lobbying airlines individually. The future is bleak
without state support for rural commercial air service. Without Nevada’s rural air traffic feeding into Nevada’s
primary airports of Las Vegas and Reno, these too will see less diversity, fewer markets, fewer revenues and a
greater number of rural Nevadans flying from airports in neighboring states.
The forensic laboratory which supports the Elko County Dirtrict Attorney’s Office, the Forensic Sciences Divirion of Washoe County Sherriff’s Department,
Li located Li Reno, Nevada. No such services-at all-are available locally The expense associated with flythg a CrñnLialist from Reno, which currently
entails them flying from Reno to Salt take to connect with a Delta flight to Elko-the only means at thu potht of travelLig by aLi to Elko from Reno, Li
prohthitively expensive-to the point where it has adversely ñnpacted our ability to routinely prosecute simple cases hke per se DIII Cases which are
dependent upon the abilily to adduce forensic evidence of the blood akohol IZ’idings, Li the outfythg (i.e. other than Elko) justice courts. When we had
regular flight service dñ-ectly to and from Reno from Elko, we could often fly the Criuninalist Li early Li the morning, have them appear and testily and
get them on a return flight that same day That Li often impossthle now- particularly if we are contemplating havthg them appear Li one of the
outlying Justice Courts. £ as the Distnct Attorney of Elko County, Nevada am very supportive of the LiitLitive to bring regional service to Reno. “—Mr.
Mark To,vD,en, ESQ. Elko (011110’ Diltrict Attorney
Examples of Air Service Incentives Offered by State Governments
The cases summarized below cover incentives for air service that have been provided in six states: Florida, Ohio,
Kansas, Wyoming, Utah and North Carolina. The examples include incentives for adding flights and for
expanding specific airlines’ capacity at airports. The incentives offered by state government ranged in value from
$650,000 to more than $16 million. This is not an exhaustive list. These incentives were based on publicly
available sources. State, local, and airport incentives were provided to increase Continental Airlines’ capacity at
the Cleveland, Ohio, airport. While the goals of the incentives agreement are unlikely to be met given
Continental’s merger with United Airlines, there is an agreement to at least limit reductions in capacity at
Cleveland by the merged airline. Another is Skybus Airlines, which was granted incentive packages by two state
governments before it went bankrupt. The final example is for Wyoming’s Air Service Enhancement program that
is most similar to the needs of the residents of Elko, Nevada and its sister city Reno. The discussion will focus on
Rock-Springs, WY as this airport and the surrounding community mirrors many characteristics of Elko.
Utah-Delta Airlines: Delta began a nonstop flight to Paris, France, from Salt Lake City International Airport in
June 2008, the first transatlantic flight from the airport. The airport and state provided $1.85 million in
incentives. The airport provided $655,000 cash and $345,000 in waived landing fees. The state incentives were a
$250,000 grant from the Governor’s Office of Economic Development and in-kind marketing by the Office of
Tourism worth $600,000. In the 2 years preceding the initiation of the flight to Paris, Salt Lake City was Delta’s
fastest-growing hub; passenger traffic was up by 40 percent, with 30 new destinations and 50 new flights added).
As of November 2014, the flight to Paris was still in operation.
Florida-Delta Airlines: In 2009, Delta Air Lines received a $1.5 million revenue guarantee from the state and local
governments to add flights between Tallahassee and Tampa, Orlando, and Fort Lauderdale. The state’s
commitment was $750,000. Leon County’s and Tallahassee’s shares were $375,000 each. According to the
agreement, if Delta’s passenger revenue from the flights is less than the projected $1 1.5 million needed to
5 Within 6
operate the flights for 1 year, then the governments will make up the difference up to $1.5 million’
months, only the between Tallahassee and Fort Lauderdale was still being offered
.
16
Ohio-Continental Airlines: Cleveland Hopkins International Airport’s situation has changed from plans in 2007 for
significantly increased domestic and international service to a legal agreement to limit reductions in service. In
2007, Ohio state government offered incentives of more than $16 million for Continental Airlines to expand its
capacity at the Cleveland airport. According to a joint press release from the State of Ohio, the City of Cleveland,
‘
Jackovics, Ted. “Delta carrier cutting flights.” Tampa Tribune Sept. 30, 2009. hffp://www2.tbo.com/conten2009/sep/30/sp-deltacarrier-cuttine-fliehtslnews-money/ (accessed Sept. 20, 2010).
16
Jackovics. Ted. “Taxpayers Could Pay For Delta’s Return To Tallahassee.” Tampa Tribune March 13, 2009.
http:Ilwww2.tbo.com/content/2009/mar/13/taxpavers-could-pay-deltas-return-tallahassee/ (accessed Sept. 20, 2009).
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * F(
EMAIL [email protected]. us
775.777.7193
Air Transportation Development in Northeast Nevada
and Continental, the airline was to initially offer 50 more flights and add 20 new nonstop destinations by the
summer of 2008. Nonstop seasonal service to Paris, France, was to begin in May 2008. By early 2009,
Continental was to have added more than 12 additional flights, principally on mainline aircraft’
7 As of
September 2007, Continental had been awarded a $900,000 Ohio Rapid Outreach Grant, a 10-year Ohio Job
Creation Tax Credit worth $9.1 million, and a $550,000 Ohio Investment in Training Grant. Among the provisions
of the tax credit were that 711 full-time lobs would be created and that Continental would maintain operations at
the airport for 20 years’
. Continental also was to receive employment pre-screening, testing, and recruitment
8
9
services through the Ohio Department of Job and Family Services’
.
As of May 2008, 7 of the 20 new planned flights had been postponed and only about 200 lobs had been created.
. The nonstop flight to Paris was not
20
None of the $16 million from the state had been used by Continental
resumed in 200921. The airport’s flight to London, England, its remaining transatlantic nonstop, was not resumed
in 201022. In May 2010, the boards of United Airlines and Continental agreed to a merger that would create the
largest airline. The approval by the Ohio attorney general came after the office reached an agreement with United
Airlines and Continental Airlines to maintain “specified levels of air service.” The merged airline branded under
United agreed to remain committed to the airport for at least 5 years. In the first 2 years, the merged airline is to
maintain no less than 90 percent of the two airlines’ average daily departures in the year before the merger’s
closing date. Under specified conditions, the merged airline can reduce its commitment after the first 2 years. For
example, if the profits of the merged airline for Cleveland flights are sufficiently low or losses sufficiently high,
.
23
the commitment to a minimum number of departures can be reduced or eliminated
Ohio-Skybus Airlines: In 2006, the State of Ohio, the City of Columbus, and the Port Columbus International
Airport initiated an incentive package of $57 million to base Skybus Airlines at the airport. Skybus was a start
. State government proposed an incentive package valued at
24
up discount airline with significant local investment
approximately $16 million. The bulk of the package was a $7.7 million tax credit for job creation and a $5
million grant for infrastructure improvement. The remaining incentives were a loan to purchase machinery and
equipment and funding for screening, testing, and training of employees
. The Columbus city council approved
25
incentives worth $14 million consisting of tax credits, Skybus Airlines had sold 200,000 tickets before service
began at Port Columbus
. Within its first month of operation, the airline was adding new destinations across the
26
. 8
27
country
y early 2008, Skybus was still adding destinations, but it was also dropping them and had nearly
abandoned the west coast market
. Less than 1 year after service was initiated at Port Columbus, the airline
28
. Only
29
shut down abruptly in April 2008 and went bankrupt, stranding passengers at airports across the country
a small share of the $57 million in state and local incentives was actually paid out. The airline estimated that it
7
City of Cleveland, Continental Airlines, and State of Ohio. Press Release “Continental Airlines Announces Major Expansion at
Cleveland Hopkins International Airport.” Sept. 14, 2007. http://www.clevelandairport.com/Portals/Docurnents/CO
CLE%20Announcernent.pdf
°
“Continental to expand Cleveland hub.” USA Today Sept. 13, 2010.
http://www.usatoday.com/travel/fi ights/2007-09- 13-continental-cleveland N.htrn
9
City of Cleveland, Continental Airlines, and State of Ohio. Press Release “Continental Airlines Announces Major Expansion at
Cleveland Hopkins International Airport.” Sept. 14, 2007.
http ://vww.clevelandairport.com/Portals/Docurnents/CO-CLE%20Announcernent.pdf
20
Roguski, Randy. “Hopkins expansion curtailed as Continental hits bumpy times.” Cleveland Plain Dealer
May 8, 2008. http://blog.c1eveland.corn/business/2008/05iopkins expansion curtailed wi.htrnl
21
Kroll, Kathryn. “Continental cancels direct Cleveland/Paris flight.” Cleveland Plain Dealer Dec. 23, 2008.
http://blog.cleveland.com/business/2008/l 2/continental cancels direct cle.htrnl
22
Grant, Alison. “Continental Airlines cancels non-stop seasonal flights from Cleveland to London.” Cleveland Plain Dealer Dec. 3,
2009. http://www.cleveland.comlbusiness/index.ssf/2009/l 2/continental airlines cancels n.htrnl
23
Karp, Aaron. “Continental, United agree to minimum post-merger air service levels at Cleveland.” Air Transport World Sept. 15,
2010.
21
Rose, MarIa Matzer. “Skybus’ planned Tuesday start shows promise.” The Columbus Dispatch May 20, 2007.
http://www.dispatch.com/live/contentlbusiness/stories/2007/05/20/SKYBUS Al .ART ART 05-20-07 Al RS6OV4F.html.
25
State of Ohio. Department of Development. Press Release. “Job Creation Tax Credits Approved for Business Expansion.” Oct. 30,
2006. http://developrnent.ohio.aov/newsroorn/2006PR/October/9.htm
26
Rose, Maria Matzer. “Skybus up and flying.” The Columbus Dispatch May 23, 2007.
http://www.dispatch.com/Iive/contenrtbusiness/stories/2007/05/23/skybus launch.ART ART 05-23-07 C8 MB6PVDF.html
27
Rose, Maria Matzer. “Skybus trims West Coast coverage.” The Columbus Dispatch Feb. 6, 2008.
hrtp://www.dispatch.corn/iive/contenCbusiness/stories/2008/02/06/skvbus sumrner.ART ART 02-06-08 C8 L6994J9.html
28
Rose, Maria Matzer. “New cities help Skybus’ sales surge again.” The Columbus Dispatch May 31, 2007.
http://www.dispatch.com/live/contenCbusiness/stories/2007/05/3 I /skvbus follow.ART ART 05-31-07 C 10 FT6S9PC.html
29
Johnson, Paul. “Skybus’ departure continues to have impact.” Greensboro News-Record March 12, 2010.
http://www.news-record.corn/content/20 10/03/I 2/article/skybus departure continues to have impact
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected]. us
775.777.7193
Air Transportation Development in Northeast Nevada
would pay 76 cents on the dollar to general unsecured creditors such as the state Department of Development and
the airport authority. As part of Skybus’s bankruptcy, the Department of Development filed a claim for the return
of $1.15 million in grant money. The airport authority’s claim was for $5.2 million
30 in grants, loans, and
performance incentives
.
3t
North Carolina-Skybus Airlines: In 2007, Skybus Airlines was offered more than $13 million of incentives by
North Carolina state government, local governments, Piedmont Triad International Airport, and local private
organizations to make Greensboro its second base city. According to the airline, this would result in the creation
of 375 jobs with the airline and a $350 million investment in the Greensboro/Winston-Salem area. The
governor’s office estimated that more than $9 million in new state tax revenue would be created
. Offering
32
tickets for as low as $10, Skybus expanded service at the airport in early 2008 and had 18 daily flights at its
peak. As noted above, the airline went bankrupt in 2008.
State government’s contribution to the incentives was a $3.98 million Job Development Investment Grant from
the Department of Commerce. Local governments and organizations pledged approximately $1.5 million for
marketing. The airport’s incentives totaled approximately $8.6 million: $6.3 million for construction and
updating of facilities, $300,000 for marketing, and $2 million or more through a program that pays a fee for
. Because many of the incentives were contingent on performance
33
each passenger boarding new nonstop flights
and Skybus remained in business so briefly, only a small percentage of the incentive funding was spent. In 2010,
airport officials estimated that $1 million had been spent
.
34
Kansas State Wide Air Service Program: Wichita city leaders and the Regional Economic Area Partnership,
comprising city and county governments in south central Kansas, began working with area businesses in 2001 to
create a travel bank program. The goal was to attract low-cost carriers to Wichita’s Mid-Continent Airport
. The
35
low-cost carrier Southwest Airlines began service in 2002, also benefiting from incentives made possible by initial
funding of more than $3 million from the City of Wichita. As of FY 2006, Wichita had funded more than $8
.
36
million in incentives; Sedgwick County had funded $1 million
In 2006, the state legislature established the Affordable Airfare Fund. The goals for the fund included providing more flight
options, more competition for air travel, and affordable airfares. A $5 million fund was created with expenditures to be
made in annual grants to the Regional Economic Area Partnership through appropriations acts of the legislature.
Each grant must be matched by a 25 percent contribution from local government or private entities. From FY 2007
. Local contributions totaled more than $8.2
37
to FY 2011, the total state appropriation was nearly $25 million
million over this period, with annual amounts ranging from $1,250,000 to $2 million
. Over the entire FY 2002
38
to FY 2011 period, funding by state and local governments for incentives was more than $42 million. Almost all
the incentive money has gone to Southwest Airlines. For FY 2010, the contract between Sedgwick County and
Southwest was for the airline to provide three daily round-trip flights—except for two on Saturday—to Atlanta,
Georgia. The projected cost to the county for covering Southwest’s costs for the year was $6.5 million. Frontier
Airlines began service in October 2007 and has received $1.5 million in total revenue guarantees through FY
2011 to provide daily round-trip flights to Denver, Colorado
.
39
°
Rose, Maria Matzer. “Skybus shareholders Out of luck.” The Columbus Dispatch Feb. 6,2009.
http://www.dispatch.com/i ive/conten(Jbusiness/stories/2009/02/06/skybus.htmi?sid= 101
Winn, Sarah K. “Columbus bolsters bid as Skybus hub.” The Charleston Gazette Sept. 23, 2006.
http://findarticles.com/p/news-articles/charleston-azette-the/mi 8022/is 20060923/columbus-bolsters-bidskybus-hub/ai n43222574/
32
“Skybus opening hub in Greensboro, N.C.” Business First of Columbus Oct. 22, 2007.
http://www.bizjournals.cons/columbus/stories/2007/l 0/22/daily4,html
Barron, Richard M. “PTI lands deal with discount air carrier.” Greensboro News-Record Oct. 23, 2007.
http://www.news-record.com/content/2007/l0/23/article/pti lands deal with discount air carrier
Johnson, Paul. “Skybus’ departure continues to have impact.” Greensboro News-Record March 12,2010.
http://www.news-record.com/contenU2o 10/03/12/article/skybus departure continues to have impact
“City, area officials plan to capture low-cost air carrier.” Wichita Business Journal Nov. 5,2001.
http://wichita.bizjoumals.comlwichitalstories/200 I/Il /05/daily4.html
s Harrah, Janet, and Kasey Jolly. Economic and Fiscal Impact of AirTran Airways on the Wichita MSA.
Center for Economic Development and Business Research, Wichita State Univ. Feb. 2008.
http://webfiles.wichita.edu/cedbr/AirTran FINAL.pdf
Annual funding was S5 million each year in FY 2007, FY 2008. FY 2009, and FY 2011: and $4,875,000 in FY 2010.
Regional Economic Area Partnership of South Central Kansas. “Press Advisory: REAP Awards Funding under Kansas Affordable
Airfares Program.” Fiscal Years 2007, 2008,2009, 2010, 2011. http://www.reap-ks.ore/kaap.htrnl
Regional Economic Area Partnership of South Central Kansas. “Kansas Affordable Airfares Program Fiscal Year 2009 Report.”
975 Terminal Way
*
Elko, NV 89801
*
775.777.7190
*
FAX
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
The Wichita Airport Authority contracted with Wichita State University’s Center for Economic Development and
Business Research to do an economic analysis of the economic impact of Southwest Airlines. The 2008 report is
widely cited in discussions about potential incentive programs. According to the report, the impact for the 2002 to
2007 period of the added Southwest service was more than $15 million for Wichita, more than $7 million for the
county, and more than $107 million for the state
. The direct and indirect effects are based on the economic
40
activity generated by Southwest employees, the increase in business at the airport, and savings from decreased
ticket prices
.
41
Wyoming’s State Wide Air Service Program: Wyoming has a large land area but a population of just 545,000. In
Dv rmg ra ph cs
jRocksPrings.wYI 2003, finding that a comprehensive system of air travel was needed and
RKS
I that the lack of competition among air carriers resulted in limited,
Population (50 ni)
40,507
unreliable, and expensive service, the legislature created the Air Service
HH lacome (50 mi)
Enhancement Program. Beginning with fiscal year 2004, the legislature
Closest hub
SLC
SLC
has appropriated $1.5 million annually. Total available funding since FY
Drwe ti hb
226
167
Drive tirim tohub
2004, including local matching, is more than $18 million. Most funding has
been used for incentive payments from airports to air carriers, often to
2008 47,520
54,228
provide service during winter months. Funds have also been used for
2009 42,570
63,274
2010 42.330
60,515
marketing and facilities enhancement. The Aeronautics Commission, which
2011 40740
61,576
is part of the Department of Transportation, decides which projects
2012 30.000
65,790
submitted
by Wyoming’s airports should be awarded Air Service
2013 32.250
58230
Q
Enhancement funding and how much local matching funding is required. The
2014
51.540
Schvduled Fghto I EKO 81 seven commissioners, who serve 6-year terms, are appointed by the
2008 1,584
1.991
governor with approval by the Senate. The state is divided into five
2009 1419
2,086
districts, each of which selects a commissioner. Two commissioners are at
2010 1,411
2.129
2011 1,368
2,076
. For each project selected, there is a maximum funding commitment
42
large
2012 1.000
2.193
by the state and the community. According to information provided by the
2013 1.075
1.941
commission, the amounts have ranged from less than $10,000 for an
2014 974
1.718
Nt4e
,Annual Passengers EKO
equipment purchase to $1.4 million for a revenue guarantee to an airline.
2008 21,893
25,500
Over the period beginning with FY 2004, the Aeronautics Commission has
2009 20,171
18,861
approved maximum funding commitments of $1 4.2 million of state funding,
2010 21,399
21.334
2011 23,088
27,251
matched by community commitments of $4.7 million. Because much of the
2012 20,858
30,817
funding is in the form of revenue incentives to airlines and not all the
2013 19.238
22.073
incentive money is used, actual state payments have been $8.5 million over
I!
2008 5180
5240
the entire time period. Total community payments were $2.2 million
.
43
2009 5147
5208
In 2013, the Wyoming Department of Transportation published an Economic
2010 $187
S202
Impact Study for commercial airlines serving the state utilizing the Federal
2011 5186
S187
Aviation Administration (FAA) IMPLAN (Impact Analysis for PLANing)
2012 $199
$228
$273
$224
input/output model software model. The IMPLAN model was customized to
Load Fclor
RKS
I EKO
—
incorporate information specific to Wyoming and provided a complete
200o 530%
492%
analysis of the economic impacts of the Wyoming Air Service Enhancement
423%
2009 481%
2010 52.1%
469%
Program. The Wyoming economic study is important an indicator to
possible performance at Elko Regional Airport, NV because of Rock SpringsSweetwater County Airport, WY. In 2014, the Elko Regional Airport Air
2013 612%
572%
Passenger Lea age study completed by Jviation, Inc. identified Rock Springs a “benchmark” airport due to its
similar characteristics in population, socio-economic, income, and industry base. Both regional airports are rural
with similar populations and geographically similar distances from their hub airport of Salt Lake City, UT. Also
both cities are primarily based on the mining industry with higher than average household incomes. They also
,,,_J
40
l-larrah, Janet, and Kasey Jolly. Economic and Fiscal Impact of AirTran Airways on the Wichita MSA.
Center for Economic Development and Business Research, Wichita State Univ. Feb. 2008.
http://webftles.wichita.edu/cedbr/AirTran FINAL.pdf
41
The estimate of the increased airport activity attributable to AirTran is based on the assumption that the presence of the new airline
was responsible for 70 percent of the increased airport activity. The savings in airfares is based on the assumption that Wichita’s fares
would have remained 22.75 percent higher than the national average as was the case in the third quarter of 2000. Savings per ticket
based on this assumption has varied by year, ranging from $94 in 2003 to $6 in 2006.
.12
State of Wyoming. Department of Transportation. Aeronautics Commission. Meeting Minutes: May 25,
201 4;<http:I/wwsv. dot.state.wy.us/wydotlsite/wydotlaero_commission>
Schlabs, Amber E. “Wyoming Air Service Enhancement Program.”
975
.fljfl}
Way
*
Elko, NV 89801 * 775.777.7190 * F(
EMAIL [email protected]. us
775.777.7193
Air Transportation Development in Northeast Nevada
have similarly sized airport facilities. The 2013 economic impact study identified that Rock Springs-Sweetwater
Airport contributed to the following impacts.
On-airport impacts from commercial airline functions at Rock Springs-Sweetwater Airport were calculated at
$6,929,330”. On-airport initial economic impacts were estimated for airport administration, maintenance, and
operations; airport aviation related tenants/businesses; and capital investment for airport expansion or
improvement. For each of the commercial airports, total annual economic impacts in these categories are
associated with a combination of commercial airlines, general aviation, and other airport activities. For this
analysis, however, information was collected that facilitated isolating annual economic impacts that are
attributable to each airport’s commercial activities.
The off-airport economic impacts from commercial airline area visitors were calculated at $8,394,000. Offairport economic impacts were also measured as they relate to spending by visitors who arrive in to Rock Springs
Sweetwater County Airport on a commercial airline. Once these visitors are in Rock Spring, they have
expenditures for lodging, food, local transportation, recreation/entertainment, retail purchases, and other items.
Total estimated annual visitor spending is essentially equal to output. Once annual spending/output for visitors is
estimated, the IMPLAN model has ratios that identify the number of jobs supported for every $1 million in visitor
spending. Most of the jobs supported by visitor spending are in service industries, and average salaries for these
lobs were obtained from IMPLAN.
0
Caribou National Forest
ROCK SPRINGS, WY
Logan
Uinl;j -Waitr h (ac
Natutccs F,.,,r’51
Ifccnrbcldt’ Iccyabe
N,Jrrrc41 Forest
ic:.
p1--
ELKO, NV
Salt Lake City
Sri
,.,
0
-
Ashley National Forest
Sacdy
Provo
d
C
tJcc.ta-Wasah Ca.cr
Natunsi I u;et
A
According to the Wyoming Department of Transportation Economic Impact study of air service on their state’s
airports, Rock Springs-Sweetwater County Airport has a total economic impact of $15,323,000 per year and
directly employed 1 14 people. The report also identified that the airport realized a direct impact to state and
local tax revenues of $508,84O.
Wyoming Department of Transportation., “2013 Wyoming Airports Economic Impact Study” Published May 2013,
wwwdotstate.wv.us/home/aeronautics.html.
Wyoming Department of Transportation., “2013 Wyoming Airports Economic Impact Study” Published May 2013,
Ndot.state.wy.us/home/aeronautics.htm1
975 Terminal Way
*
Elko, NV 89801
*
*
FM
EMAIL [email protected]
775.777.7190
775.777.7193
Air Transportation Development in Northeast Nevada
The State of Wyoming Air Service Enhancement
Rock 5prins Sweetwater County Airport
program that supports Rock Springs-Sweetwater
County’s airport air service in 2014 was a 65% state
contribution of $1,323,792 to provide a one year
minimum revenue guarantee for two roundirip flights
between Rock Springs and Salt Lake City, UT on
SkyWest Airlines (Delta Connection). The remaining
35% share of $718,297 divided between local
government parties: City of Rock Springs; 33%, City
of Green River; 22% and the County of Sweetwater,
WY; 45%. Based on the 2014 Wyoming Air Service
Enhancement program supporting twice daily air service to Salt Lake City, UT with a minimum revenue guarantee
*
-
—
of $2,042,08946.
Previous Reno-Elko Air Service Background
From July 1998 through February 2005 SkyWest Airlines operated Salt Lake City to Elko to Reno flights with an
EMB 120 aircraft providing twice a day service during the weekdays and one flight on Saturdays between Elko
and Reno. The total Elko to Reno market is approximately 10,504 annually during SkyWest’s final year of
operation. With the departure of SkyWest, Scenic Airlines picked up the Elko-Reno flights using a B1900C aircraft
with 14 flights per week which was reduced to 11 roundtrip flights after 3 months of operation (March 2005-June
2005). Scenic Airlines annual passenger totals from March 2005-February 2006 equaled 9,1931’], for an
approximate average of 766 per month, or 191 passengers per week. This was based on 11 roundtrip flights a
week between Elko and Reno. Based on the 19 seat aircraft in use between Reno and Elko there were 1,787 seats
flown each month[
l, 76 seats flown each weekday and 38 seats flown on a weekend. This provided 418 available
2
seats per week flown and 191 passengers filling those seats. This equated to an average load factor per flight of
46% (airlines ideally want a load factor per flight above 70%).
In April 2006 commercial air service linking Reno to Elko
ceased operations. Scenic Airlines provided air service to
Reno under an U.S. Department of Transportation (DOT)
Small Community Air Service Development Program
Grant. Scenic Airlines discontinued operations once the
DOT grant ended. During 14 month period that Scenic
Airlines flew the Elko-Reno route carried 10,584
passengers on a 19-passenger Beechcraft 1900C
turboprop aircraft. The reason for the Scenic Airline’s
failure in the Elko market was the cost of providing two
flights daily between Elko and Reno was costing Scenic
Airlines $13,104 per week in losses due to far too many flights per day. This was due in part to an air service
contract that required Scenic Airlines to fly 11 roundtrips a week even when the market traffic did not support
such capacity.
46
City of Green River, “September 16, 2014 City Council Meeting Agenda Documentation” Approval of the Enhance Air Service
Cooperative Agreement with the City of Rock Springs and Sweetwater County. September 11,2014.
Round trip passenger counts.
121 Based on 30 day calendar month
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX 775.777.7193
EMAIL [email protected]. us
Air Transportation Development in Northeast Nevada
After the loss of air service between Elko and Reno, the communities sought assistance from the Nevada
Legislature to provide a Minimum Revenue Guarantee program to restore the air service lost. Sponsored by
Senator Rhoades and Senator Matthews, Senate Bill 283 was a commercial airline risk abatement program
designed to restore intrastate air service in Nevada. The bill died in 2007 and was replaced by the Small Airport
Commercial Air Service Grant Program, as approved in Senate Bill 579, Section 13. On April 16, 2008 the bill
became Regulation 190-07 of the Nevada Commission on Tourism. The bill provided an annual state
appropriation of $500,000 to provide an insurance guarantee for airlines operating in Nevada’s smaller rural
communities. Governor Jim Gibbons cut the program in the face of declining state revenues and major budget
shortfalls on April 9, 2008 before the program became operational. Elko Regional Airport, Reno/Tahoe
International Airport, and the Elko Convention and Tourism Authority committed to provide 20% grant matches
for an Elko-Reno air service route in 2008 contingent on state funding of the Small Airport Commercial Air Service
Grant Program.
“The cancellation of SkyWest flights to /?eno and back have placed a burden on business especitl/y the mindig industry To drive to Reno it takes 4
bouts without a stop, roundtri,.o 8 hours. Thu normally Li usually a two day overniht trio where flying one could go over Li the mornthg and return
that afternoon. Flying Li a major tLine savings. / would guess cost-wire Li Li a wash or less expensive. One would have to rent a vehiile il/lying into
Reno. Howe ver hote/ gas, and food costs add up quickly not to mention the time commLiment to dnving My company completed the permiting
process for one of our projects. Thu involved numerous tri,os over a 5 year period for various staff to the west side of the state to meet with
consultants, Federal and State officials. The numerous dnving tn,os to Reno and Carson Ui’j wasted an Licredible amount of tLine. Our company Li now
begdinthg the permLitthg process for another property and lacing the same travel restrictions. / know I am not the only one you have heard from on
thu issue. It Li a serious problem in work efficiency when there Li so much tdne wasted driving. The safety issue Li compounded when weather
conditions deteriorate. One last thought on this subject, this survey Li a sample of residents in this part of the state. If the western side of the state
was surveyed; I am posLiive you will hear the same comments and concerns that I describe. “—Mr Kevin Kmsella, Manager land and Watei’ General
Moly, Inc.
State of Nevada’s Role in Fostering Intrastate Air Service Development Thru a
Minimum Revenue Guarantee Program Establishing an Elko-Reno Air Service
Connection.
According to Stephen Brown, director of the Center for Business and Economic Research at the University of
Nevada, Las Vegas the prospect for Nevada is continued economic improvement in 2015 as Nevada returns to its
pre-recession GDP
. The business climate is right to reintroduce Nevada intrastate air service to Elko, NV to
4T
ensure that Northeastern Nevada is tied economically to the urban centers state.
6--r’
‘uc’
EIko’s businesses support a reintroduction of a bill to
provide expand air service to Elko through an Intrastate Air
Service Minimum Revenue Guarantee Program. This
program would be managed through the Nevada Governor’s
Office for Economic Development to provide an ongoing
Minimum Revenue Guarantee (MRG) to Mauiva Airlines to
re-introduce the Elko stop for flights between Elko, NV and
Reno, NV with connecting flights to Oakland, CA. The
program would introduce the Elko stop on two roundtrip
flights a weekday for a total of 10 roundtrip flights a week.
Mauiva Airlines would provide the service using an EMB
120 30 seat turbo-prop aircraft that has a proven track
record serving in Elko for SkyWest since 1998.
Richard Velotta., “Southern Nevada Economy Seen Strengthening Through 2014” Nevada Review Journal, June 17, 2014.
http://www.reviewjournal.com/bus iness/economy/southern-nevada-economv-seen-strengthening-through-2014
975 Terminal Way
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
The local share of the MRG program would be administered by the Northeastern Nevada Regional Development
Authority (NNRDA) and would be used to provide Mauiva Airlines with a 5% profit margin to provide service
between Elko and Reno, NV. The Minimum Revenue Guarantee program would be a cost sharing enterprise
between the State of Nevada at 80% and a local share of 20%. A MRG is the only mechanism in today’s aviation
marketplace to allow a small market, such as Elko, obtain additional air service destinations. Direct subsidies to
air carriers by airport owners or operators are generally not allowed, but waiving fees or discounting landing or
other fees for a limited promotional period. The FAA does not provide specific rules but generally accepts
programs that last 1 year or less. These types of direct subsidies must be offered to all users of the airport and
provided to all users that are willing to meet the requirements established by the airport for receipt of the
subsidy. Advertising or marketing for airlines as are also acceptable uses of the MRG as long as those costs are
specific to a destination airport in Nevada rather than generally for an airline who operates flights to many
destinations.
Nevada Legislative support for the Elko-Reno flight with Mauiva Airlines is part of an overall plan to expand air
service to both Reno/Tahoe International Airport and Elko Regional Airport. Two Nevada airports will gain new
route offerings to Boise, ID, Oakland, CA and Mammoth/Yosemite, CA through a deal with Mauiva Airlines. Not
only will Elko benefit from Reno service but Reno’s airport will obtain four new route offerings and will increase
passenger enpianements as Elko feeds passengers into Reno for connecting flights across the West. Supporting
the a MRG program for Elko will provide increased flights using the right sized turboprop aircraft suited for year
round high altitude operations into [lko Regional Airport.
Mauiva Airlines is seeking to relocate to Rena/Tahoe International Airport and provide greater air service to
locations currently not being served from Rena currently. For the Elko-Reno daily flight schedule we anticipate a
daily service with twice daily roundtrip service utilizing an EMB 120 30-seat aircraft Monday-Friday. The Elko
Reno service is based one way fare of $138, or $276 roundtrip. The service will provide 21,900 seats from Elko
to Reno each year. The 2014 Air Leakage Study completed by Forecast, Inc. for Elko Regional Airport estimated
that today the Elko-Reno service is anticipated to support 15,000 enplanements or an anticipated load factor of
68.5% during its first year of operation.
Mauiva Airlines has provided us a cost model for the first year anticipated profit/loss for an Elko-Reno flight.
Elko Regional Airport anticipates the first year of travel will attract 14,235 roundtrip enplanements or a 65%
aircraft load factor. With these
forecast
passenger
RISK PER
RISK/PROFIT
enplanements, the first year of
MONTH
PER YEAR
ONE WAY COST CALCULATIONS
service will require an
$138
Fare
anticipated $668,964 MRG
subsidy to cover costs. As you
$1,440,780
100% Load Factor
$502,320
$120,065
might note the anticipated MRG
$326,508
($55,747)
($668,964)
65% Load Factor
requirement is less than is
$306,415.20 ($75,839.80)
($910,078) requested in this legislative
61% Load Factor
briefing as the MRG is based on
an estimate. The airport is
requesting a MRG assistance program that would cover the possibility that the Elko-Reno air route may not
generate the forecast 14,235 passengers. Any MRG dollars not used will be returned to the State of Nevada. The
MRG request of $937,500 will be sufficient to cover all the costs of airline operation if only 13,250 passengers
flew or 60.5% load factor. The MRG plans for a range of anticipated costs for operation with passenger
enplanements estimated between a low of 13,250 and a high of 14,235 during the first year of operation. If the
air service market between Elko and Rena is stronger than anticipated the MRG subsidy will be less. Based on
Mauiva Airlines cost model for Elko-Reno flights the operation would break even if 16,206 passengers purchased
roundtrip tickets during the first year of operation. The airline could also raise ticket prices to require a fewer
number of passengers to break even. The cost savings of flying to Reno versus driving to Rena from Elko is $166
in savings per passenger/roundtrip journey based on a $276 roundtrip airfare. With air travel saving so much
per passenger to the alternate of driving there is significant room to raise proposed ticket prices to cover costs
hence reducing the break even number of passengers. Historic passenger enplanements between Elko-Reno
provides further support that Mauiva Airlines could enter profitability within a one-year period. Reno, NV used
to be the number one destination market for those in Elko County. From1999-2001 the Elko-Reno flight
supported passenger enplanements above 16,000 passengers needed to break even under this proposal. If such
,..
-
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected]. us
775.777.7193
Air Transportation Development in Northeast Nevada
passenger enplanements were realized in 2015, Mauiva Airlines would realize profitability within the first year
and would not require any MRG dollars to operate.
Airport
Traffic Summary
Top 100 DomestIc Origin & Destination Passenger Markets
Ranked by Calendar Year 2001
at Elko
Approximates 100% Sample Direchonal Journeyed Passengers
-
CV 1999
Rank City
I
Reno.NV
2
SaItLakeCity.UT
3
4
5
Oenver, CO
SeatlelTacoma, WA
PocUand,OR
19,720
9.350
8,660
6.430
5,650
CY2000
17,830
10,080
9,800
6,140
5,350
CV 2001
Percent of
2001 Total
16,110
10.3%
10,860
6.9%
7.051)
4,230
3,440
4.5%
2.7%
2.2%
Avg. Ann. Change
99-01
00.01
-9.6%
7.8%
-9.8%
-18.9%
-22.0%
-96%
7.7%
-28.1%
-31,1%
-35.7%
Mauiva Airlines Elko-Reno flight is predicated on the ability to fully utilize their [MB 120 aircraft in the Western
United States. The Elko-Reno flight on Mauiva Airlines requires introducing a Reno-Oakland air service
connection utilizing the same aircraft that is anticipated for use on the [Iko-Reno flight. Rena/Tahoe
International Airport is seeking to restore service to Oakland, California that was lost in 2013 when Southwest
Airlines exited the market. The twice daily Elko-Reno flight would not fully utilize the [MB 120 during the course
of each day so additional markets were sought to pair with an Elko-Reno flight.
Working closely with Reno/Tahoe International Airport, Elko has found the ability to leverage additional routes
through Reno to make operating a Mauiva Airlines [MB 120 aircraft cost effective. An additional three daily
flights between Reno-Oakland will be added to the twice daily flights between Elko and Reno. This pairing of two
flight destinations; Oakland and Elko, would fully utilize the crew and the Mauiva Airlines’ EMB 120 aircraft.
Mauiva Airlines also has partnered with American Airlines that allows cross marketing of flights. It is noted that
American Airlines support 20% of the traffic Reno/Tahoe International Airport. The Reno/Tahoe International
Airport completed an economic impact study on the economic benefits of introducing Oakland service using the
Mauiva Airlines [MB 120 aircraft. The results of the 2014 Rena/Tahoe International Airport study found that the
local economy in Reno would gain an additional 45 full time equivalent employees if Mauiva Airlines was to serve
Oakland with the aircraft that shares the Elko-Reno flight. Reno/Tahoe International Airport would also realized
an additional earnings of $2.5 million, and an overall economic output to Nevada of $11.51 million for adding
Oakland service using a Mauiva Airlines [MB 120 aircraft. No equivalent economic impact study for [Iko was
completed; however, Elko Regional Airport will be completing an economic impact study for local air service in
early 2015 in cooperation with University of Nevada, Center for Regional Studies.
Proposed Air Service Routing Map with Introduction of Mauiva Airlines to Nevada Market
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX
EMAIL [email protected]
775.777.7193
Air Transportation Development in Northeast Nevada
REGIONAL AIRPoRT
MAMMOTH/YOSEMITE, CA
Funding a new Small Airport CommercialAir Service Grant Program 811/with on annual appropriation
of $750,000 is cost effective, smart economic decision for the State of Nevada. Northeast Nevada has
the fastest growing economy iii the state, low unemployment, rising incomes, and double digit
population growth. The Stole ofNevada should reduce overall economic travel costs beiween Reno and
Northeast Nevada. By connecting Nevada’s rural aviation markets to the Stale’s hub airports in Las
Vegas and Reno, Nevada ensures it captures all of the economic benefits of commercial aviation within
its borders. Without such an intrastate system Idaho and Utah’s airports, airlines, and support
industries will continue to benefit from Nevada’s citizens leaving the state.
975 Terminal Way
*
Elko, NV 89801 * 775.777.7190 * FAX 775.777.7193
EMAIL [email protected]
*
4
4.
Elko-Reno Transportation Cost Savings Calculation
Based on 2013 Cost Factors and 2005-2006 Actual Elko-Reno Aircraft Enplanement Data
Traffic Data
El{O-RNO AnnuT roundtrip passenger counts’
Total
Value of Time
7
Average per Capita Effective Buying Income (EBI)
EBI divided by 2,080 hours/year=Average per Capita Hourly Income
3
Travel time savings Elko-Reno
Total Travel Time Elko-RenoTime x Enplanements
Value of Time=Total Travel Time x Average Per Capita Hourly Income
Cost of Travel (Car vs. Airplane)
4
Elko-Reno Vehicle TripsLocal Enpianements / 1 occupants per vehicle
Elko Vehicle miles=Mileage (580 mi roundtrip to Reno) x Vehicle Trips
5
Elko-Reno Cost of Vehicle Travel @ 0.565 per mile
Total Cumulative Cost of Annual Vehicle Travel
Less Aviation Costs for Travel (ä Average Net Roundtrip Fare of $ 2766
Cost of Travel Savings
!PNS’ORJAUON Cost SAVlN9jUE OF TIME + COST OF TRAVEL
1
9,818
9,818
$41,114
19.76
5.80
56,944
$1,125,221
9,818
5,694,440
$3,21 7,358
$3,21 7,358
$2,709,768
$507,590
$1,632,811/PER YEAR
Based on actual roundtrip passenger counts 12 month period March 2005-March 2006. In 1999 (peak year) EKO
RNO operations supported 19,720 passengers of the 12 month calendar year.
2
Based on Elko, NV population
4 hours each way in car vs. 1.1 hours in turboprop plane
Assumes passenger traffic is paired in groups of two individuals based on Nevada DOT Traffic Activity Counts for I80 in Elko County. 2012 NDOT average is 2.1 persons per vehicle. Further information can be found at:
http://www.nevadadot.com/About N DOT/NDOT Divisions/Planning/Traffic/2012 Annual Traffic Report.aspx
This is a conservative estimation. Passengers travelling alone doubles the cumulative costs of driving versus flying.
Based on IRS 2013 business mileage rate
rd
O.TR market rate EKO-SLC $205.68. This was then escalated by
Average 2013 roundtrip air fare escalated from 3
$30.00 to account for longer flight time and fewer seats per revenue mile than the EMB 120 -30 seat aircraft used
on EKO-SLC route. B-1900 is used as the aircraft modeled for future ENV-EKO-RNO route.
*
Monetized Travel Costs of Flying Roundtrip from Elko Regional Airport with
Destination at Reno/Tahoe International Airport
:qi
iof Time
Average per Capita Effective Buying Income (EBI)
7
EBl divided by 2,080 hours/yearAverage per Capita Hourly Income
8
RT Travel time savings flying from EKO versus Driving to RNO in Hours
Value of Time= Travel Time Savings x Average Per Capita Hourly Income
st of Tra
Vehftle miles roundtrip Elko, NV to RNO, NV
9
Elko-RNO Cost of Vehicle Travel @ 0.565 per mile
of
Elko Regional Airport Parking Rate Per 24 Hrs
Reno/Tahoe International Airport Parking Rate Per 24 Hrs (Economy Lot)
Reno/Tahoe International Airport Parking Rate Per 24 Hrs (Garage)
—
Roundtrip Fare from EKO-RNO/individual
Total cost of driving from EIC0-RNO
i1T1 rrFlTl ‘11
±vL] .[
$41,114
19.76
5.80
$114.60
580
$327.70
$7
$10
$24
J1
I (‘Ill ‘(i
$276.00
$442.3
I
Based on State of Nevada Aggregate, EBI is defined as Personal income (wages, salaries, interest, dividends,
rental income, and pension) after federal, state, and local taxes. Source:
https://www.cityofnorthlasvegas.com/Departments/Finance/PDFs/Budgets/2004 2005/2-BudgetOverview/08-14Econom icDemogra phicl nfo.pdf
8
3 hours each way in car driving vs. 1.0 hour in turboprop EMB 120 plane. Assumes minimum time need to arrive
prior to flight for Elko Regional Airport is 35 minutes and a connection (layover) time in SLC of 45 minutes.
Assumes minimum time needed to needed to arrive prior to flight for Salt Lake City International Airport is 90
minutes. Assumes both airports disembarking time in at Elko Regional Airport is 20 minutes and at Salt Lake City
International Airport is 45 minutes. Travel distance EKO-SLC is 225 statute miles driving in a car and 200 statute
miles flying on published air route.
Based on IRS 2013 business mileage rate