Table of Contents
I. Executive Summary
Airport and Community Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Community and Region Served . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Participation Qualification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Project Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
1
1
1
II. Air Service
Description of Existing Air Service
..............................
Air Fare Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Historic Air Service
...........................................
2
3-5
5-8
III. Community Air Service Needs & Deficiencies
Meadows Field (BFL) Airport’s Top 10 Domestic O&D Markets . . . . . . . . . . . .
Meadows Field (BFL) Airports Top 20 Leakage Markets . . . . . . . . . . . . . . . . .
Similar Market Comparison
.....................................
Competing Markets
.........................................
8-9
10
11-12
13
IV. Strategic Plan
Air Service Deficiencies to be Addressed Through this Project . . . . . . . . . . . 14
Project Goals . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Action Plan
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-15
Marketing Plan: Community Awareness of Service Available . . . . . . . . . . . . . . . 15-16
Revenue Guarantees
. .......................................
16
Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-17
Timeline
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
V. Public and Private Partnership
...............................
19
VI. Project Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
VII. Budget for Program
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-20
VIII. Critical Milestones, Measures of Success, Monitoring,
Modification and Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
IX. Letters of Support
Great Lakes Airlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Honorable Jean Fuller, California State Senator 18th District . . . . . . . . . . . . . . . . .
The Honorable Michael J. Rubio, California State Senator 16th District . . . . . . . . . . . . .
Assemblywoman Shannon Grove, California Legislature 32nd Assembly District . . . . .
Mike Maggard, Kern County Supervisor 3rd District . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kern County Superintendent of Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kern County Water Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Greater Bakersfield Chamber of Commerce (GBCC). . . . . . . . . . . . . . . . . . . . . . . . . .
Bakersfield Convention & Visitors Bureau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Bakersfield Californian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
KGET TV Ch 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
KERO TV Ch 23, A division of the McGraw-Hill Companies. . . . . . . . . . . . . . . . . . . . . .
KBAK TV Ch 29/KBFX TV 58/THIS TV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
22
23
24
25
26
27
28
29
30
31
32
33
34 Kern County Airports Department
1
Executive Summary
Airport and Community Name
Meadows Field (BFL) Airport
3701 Wings Way, Suite 300
Bakersfield, CA 93308-7026
Contact: Jack Gotcher, Airports Director
Community and Region Served
Meadows Field (BFL) Airport, operated by
the Kern County Department of Airports,
currently serves Bakersfield, CA, greater
Kern County, and Southern Tulare County.
The 60-mile radius served by Meadows Field
encompasses a population of more than 839,600 1
and is the sixth largest airport service area in
the state; growing at an annual rate of approximately 2.7%. 2
Participation Qualifications
1. BFL enplaned 121,075 passengers in CY 1997.
2. BFL is the highest fare market in our region.
3. Fares paid by travelers out of BFL are more than 17% higher than the national average for
the same approximate trip length. The ticket yield per passenger mile for BFL is 17.12
compared to the national average of 14.62. 3
4. There is a strong demand for travel to the Pacific Northwest with Sacramento as a key part of
the segment.
5. The Meadows Field (BFL) Airport service area is a significantly underserved market.
6. Meadows Field (BFL) Airport has gained local contributions to assist in advertising new air
service on Great Lakes Airlines to Sacramento.
7. Meadows Field (BFL) Airport has established a public-private partnership with Great Lakes
Airlines and our local business community to ensure the success of the new service.
Project Goals
This proposal seeks to address the deficiencies listed above by requesting a grant to introduce
two non-stop flights per day to Sacramento on an EMB 120 Brasilia by Great Lakes Airlines. In
addition, funding will be used to develop a uniform and consistent identity to promote the airport to the
general public in order to regain leakage passengers.
1
Source: US Census Bureau State and County QuickFacts
Source: US Census Bureau State and County QuickFacts
3
Source: Aviation DataMiner; Domestic National Bottom Line and Airport O&D Report -between 1st and 4th
Q uarter 2010
2
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
2
Air Service
Description of Existing Air Service
Two airlines serve Meadows Field (BFL) Airport; SkyWest Airlines performs ground-handling
for United Continental Express and US Airways. In 2010, passengers in the market were divided
almost evenly between the two airlines. Currently these carriers serve a total of five non-stop
destinations; however only offer a total of 554 departure seats per day.
US Airways operates three flights daily to PHX; two
on 86-passenger CRJ’s and one daily flight on a 502010 Airline Market Share
passenger CRJ. United Continental Express operates
one flight daily to DEN on a 50-passenger CRJ, two
daily flights to IAH on a 66-passenger CRJ, three
flights daily to SFO and two flights daily to LAX, all
on 30-passenger EMB 120 Brasilia. United
US
Continental Express has one hundred nineteen direct
Airways,
destinations available from its Denver hub, 157
51.1%
direct destinations available from its Houston hub,
seventy-two direct destinations available from its
Los Angeles hub, and eighty-four direct destinations
from its San Francisco hub. US Airways has
seventy-seven direct destinations available from its
Phoenix hub.
Current Air Service at Meadows Field (BFL) Airport
Carrier
United Continental
Express
Non-stop
Denver
United Continental
Express
United Continental
Express
Houston
United Continental
Express
San
Francisco
US Airways
Phoenix
One-stop
Connections
119
connections from
DEN
157
connections from IAH
Los
Angeles
72
Connections from
LAX
84
Connections from
SFO
77
Connections from
PHX
Aircraft
CRJ 200 –
50 passenger
Weekly
Frequency
7
United
Continenal
E xpress ,
48.9%
Weekly
Capacity
350
CRJ 700 – 66
passenger
Embraer 12030 passenger
13
858
14
420
Embraer 12030 passenger
21
630
CRJ 900 –
86 passenger
CRJ 200 –
50 passenger
20
1504
75
3762
*Source: Meadows Field Website; One –stop connections information from Aviation DataMiner, Schedule Data Time
Period (Departure) Report July 29, 2011
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
3
Air Fare Comparison
The following fare comparison is based on average fares for BFL’s top ten domestic markets as
reported in Aviation DataMiner Airport O&D report. 4 The average price for BFL’s top markets
is the highest of the airports in our region of southern California and western Nevada, and BFL
has the highest fares for five of our top markets. Pricing spiked during the end of 2008 when
flight frequencies and available seats in the market were reduced almost in half, creating an
artificial shortage in supply, directly resulting in continued high airfares.
Average Fares for Meadows Field (BFL) Airport’s Top Markets 5
$450.00
$400.00
$350.00
$300.00
$250.00
$200.00
$150.00
$100.00
$50.00
$0.00
Phoenix
Houston
Denver
Seattle
Chicago
Salt Lake
City
Dallas Ft.
Worth
Minneapolis
Portland
Washington, DC
Market
Average
BFL
$156.01
$327.51
$252.30
$208.37
$328.69
$176.38
$303.41
$241.42
$279.60
$311.60
$258.53
BUR
121.47
199.3
188.79
168.41
250.20
175.57
264.54
219.79
182.90
236.66
$200.76
FAT
154.42
222.19
264.50
194.60
290.14
283.28
304.73
212.42
197.06
275.19
$239.85
LAX
122.34
294.14
139.14
162.20
265.3
149.83
247.49
250.83
188.41
277.21
$209.69
LAS
113.30
223.87
111.38
149.94
218.29
113.69
209.37
184.01
150.63
269.57
$174.41
SAN
116.98
264.36
133.84
183.22
183.22
163.77
259.53
214.73
171.87
386.73
$207.83
While Great Lakes Airlines is not a low fare carrier, they can provide additional service.
Previous experience has shown additional competition in the BFL market will help bring pricing
more in line with the rest of the region’s airports, and increase travel through this airport. The
following chart quantifies the impact of lost competition on airfares and enplanements.
4
5
Source: Aviation DataMiner, Airport O&D Report, 3rd Quarter 2010
Source: Aviation DataMiner, Airport O&D Report, 3rd Quarter 2010
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
4
BFL Enplanements & Average Annual Air Fares 2006-2010 6
200000
$290
175000
$280
150000
$270
125000
100000
$260
$250
75000
$240
50000
$230
25000
0
$220
$210
2006
2007
2008
Enplanements
2009
Average Air Fares
Enplanements
Increase in average fares as
enplanements decline.
2010
Average Air Fares
The chart to the left shows the
relationship between average fares
and annual enplanements. Note that
in 2009, although our enplanements
declined due to loss of air service,
our average one-way fare fell from
$259.83 to $250.68. We conclude
that one of the factors for the
decline in average air fare was due
to average fares stabilizing as fuel
prices started to decrease. Even so,
prices were higher than at the end
of the 1st Quarter of 2008(average
one-way fare was $246.63) when
there was more air service options
available and higher enplanements.
BFL Annual Enplanements 2006-2010
Enplanements
Jan
Feb
2006 11,907 11,903
2007 11,683 11,662
2008 11,586 11,977
2009 7,605 7,128
2010 7,164 7,094
Mar
14,031
14,489
13,520
8,153
8,304
Apr
14,534
14,053
13,807
8,899
8,313
May
15,813
13,356
13,888
9,390
9,045
Jun
16,997
15,521
14,154
10,010
9,600
Jul
16,422
14,632
15,031
9,734
9,099
Aug
Sep
Oct
Nov
15,486 13,659 14,879 14,174
14,423 13462 14455 14420
12,223 9,271 9,854 8,601
9,310
8,466 8,723 8,203
9,174
9,377 9,563 9,712
Dec
Total
13,932 173,737
14,247 166,403
8,927 142,839
8,452 104,073
10,039 106,484
*Source: Meadows Field Website, Airport Statistics, Passenger Enplanements & Deplanements Report 2006 through 2010
The Primary impact from the events of the 2008 oil crisis that caused the price of a barrel of oil
to spike to a historical high, and the resulting economic decline, was the loss of several airlines.
Delta and Mexicana reduced system wide service and the bankruptcy of ExpressJet, caused them
to withdraw service from BFL. These service changes eliminated five (5) daily departure flights
and 269 daily departure seats from BFL’s flight schedule. Customer comments continually
indicate the loss of traveling flexibility has motivated them to drive to LAX. Capacity reductions
in the market have created an artificial reduction in enplanement levels. The shortage of seats in
the market then, has directly led to higher airfares and greater fare disparities between Meadows
Field (BFL) Airport and the other airports in our region.
6
Source: Aviation DataMiner, Airport O&D Report, 1st through 4th Quarter 2006, 2007, 2008, 2009, 2010;
Meadows Field Website, Airport Statistics, Passenger Enplanements & Deplanements Report 2006 through 2010
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
5
Average Fares for Competing Airports 7
The BFL catchment
area generates close to
400,000 passengers annually,
unfortunately the limited
air service causes
approximately 75% of our
passengers to drive to other
airports, primarily in the LA Basin. 8
In addition to inadequate service,
BFL has the highest average fare
among all airports that were utilized by
passengers booking from our
air service market. 9
Average Fares 2010
$280
$300
$245
$250
$217
$186 $178 $175 $174
$200
$156
$139
$150
$100
$50
$0
BFL FAT LAX SNA ONT SJC LAS BUR LGB
Historic Air Service
Annual enplanements at BFL Airport were 148,200 in 2000. 10 Enplanements increased by
almost 40% from 1996 to 2000, outstripping the area’s annual population growth rate, at that
time of 2.2%. We believe that this can be attributed to the entrance of America West Express
operated by Mesa into the market, and is an indication of the pent up demand for air travel from
BFL. In 2001 prior to 9/11, enplanements were up over 2% despite the already weakening
economy. After 9/11, air service levels dropped by almost half.
34.9% Drop in enplanements from 2000
48% Decrease in Daily Flights
50
45
200,000
150,000
107,632
121,075 128,390
147,142 148,200
146,786
128,842
119,147
96,549 90,634
100,000
30
25
20
50,000
15
10
5
20
05
20
04
20
03
20
02
20
01
20
00
19
99
19
98
19
97
0
19
96
40
35
9/8/2001
6/4/2002
46 Daily
Flights
24 Daily
Flights
0
2001Daily Flights2002
In 2004, the granting of the SCASD Award allowed Meadows Field (BFL) to begin service in
April to Houston in partnership with Continental Airlines. The grant also helped in successfully
marketing Meadows Field (BFL), which brought additional air service. In 2005, America West
added the Las Vegas route, and Delta began service to Salt Lake City. The additional air service
increased enplanements from a low 90,634 in 2003, to 146,786 in 2005. 11
7
Source: Aviation DataMiner, Airport O&D Report, 1st through 4th Quarter 2010
Source: 2002 Market Leakage Study conducted by Sabre, Inc.
9
Source: Aviation DataMiner, Airport O&D Report, 1st through 4th Quarter 2010
10
Source: Department of Transportation
11
Source: Meadows Field Website, Airport Statistics, Passenger Enplanements & Deplanements 2003 & 2005
8
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
6
Unfortunately, the 2008 oil crisis and economic decline took a toll on our air service. Air service
levels are now 35% less than what they were prior to May, 2008. On April 27, 2008, there were
34 scheduled flights on five carriers, with 877 departure seats available. 12 Today, there are 22
scheduled flights on two carriers (US Air and United/Continental) with 554 departure seats
available. The loss of three airline carriers and air service reductions, during the 2nd and 3rd
Quarter of 2008, has left an unfilled void in service.
36% Drop in enplanements from 2007
35% Decrease in Daily Flights
40
200,000
173,737
4/27/2008
35
166,403
30
142,839
150,000
25
104,073
106,484
20
100,000
15
7/6/2011
34 Daily
Flights
10
50,000
22 Daily
Flights
5
0
0
2006
2007
2008
2009
2008
2011
Daily Flights
2010
Enplanements 2006-2010
The decrease in enplanements and increase in prices are directly related to the decrease in air
service. The number of flights at BFL has decreased by 35% since 2008 while enplanements
have dropped by 36% since 2007. The reduction in capacity has also led to higher fares.
Air Service 2004-June 2011 13
Airline
Allegiant
Airlines
America West
US Airways
Continental
Delta
ExpressJet
Mexicana
Airlines
United Express
2004
2005 2006 2007 2008 2009 2010 2011
(Began service to LAS in Nov. 17, 2010;
discontinued service in June 26, 2011)
Service to PHX; added
(US Airways merged with America West
service to LAS April 2005;
Airlines) Service to LAS and PHX; discontinued
merged with US Airways at
LAS service in August of 2008
the end of 2006
(Restarted service in April 2011)
Began service to IAH
April 2004; discontinued in May
2007
Began service to SLC July
2005; discontinued in August
2008
(Began service to SAN May 2007; added
SMF Nov. 2007; discontinued in Aug.
2008)
(Began Service to GDL March 2007;
discontinued May 2008)
Service to LAX and SFO; added service to DEN on September 2009
The above chart shows the airlines and routes that have operated at BFL from 2004 through June 2011
12
13
Source: Aviation DataMiner, Service Pattern Trend, May 2008 and April 2008
Source: Aviation DataMiner, Service Pattern Trend 2004 through 2011
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
7
A past leakage study indicated that over 400,000 people fly from the BFL catchment area with
over 300,000 driving or taking the bus to other airports for service, particularly due to high costs.
This is 75% leakage! Whenever new service is added, the community has responded positively
by flying from BFL in strong numbers. At the peak of service in 2007, over 170,000 passengers
flew from BFL, however this is still a 58% leakage rate and aircraft were frequently full or over
sold. 14
Inadequate service levels and significantly higher fares are the primary cause for leakage from
the BFL market. Market capacity since 2008 has been reduced nearly 40%, while enplanements
have dropped nearly 30%. This has led to higher prices in the BFL market. LAX, with the most
service options in Southern California captures the majority of BFL’s market leakage.
ONT
1%
LAX
59%
SJC SNA
1% 1%
BFL
25%
LA S
2%
BUR
5%
FA T
6%
BFL Market Leakage
Surprisingly, Burbank (BUR), which
is closer and also has low fare carrier
Southwest Airlines, captures only
5% of BFL’s market leakage.
Some other surprises in the Sabre data
were that, of the six percent of
passengers that leak to Fresno (FAT), the
majority of the leakage is from the 93257
(Porterville) and 93274 (Tulare) zip
codes, which are approximately halfway
between Bakersfield and Fresno. 15
In addition, the destinations with the highest leakage of Porterville and Tulare residents are to
Seattle and Las Vegas, which have direct service from Fresno. Interestingly, markets closer to
Bakersfield than Fresno do not fly from Fresno with any degree of significance even when direct
service is offered from Fresno. Although Horizon (now Alaska Airlines) offers direct service
from Fresno to Seattle, the majority of Kern County passengers traveling to Seattle, not flying
from BFL, drive to LAX for service.
While the above study was conducted in 2002, demographics and suggested demand have not
significantly changed, thus the above study can be considered as current actual data. Although
BFL’s leakage is significant, local passengers respond overwhelmingly when new direct service
is offered.
14
15
Source: 2002 Market Leakage Study conducted by Sabre, Inc.
Source: 2002 Market Leakage Study conducted by Sabre, Inc
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
8
Market Leakage Recapture: Phoenix
Direct service on regional jets recaptured most of
the passengers traveling from BFL’s service area
to Phoenix. Please note that actual performance
substantially outperformed estimates, suggesting
greater than estimated leakage recovery and some
market stimulation. Travel from Meadows Field
(BFL) Airport to Phoenix increased more than 10
times when direct service was available. Travel
from Bakersfield to destinations with good
connections from Phoenix have also increased
substantially. 16
Destinations
1996
Actual
Annual
PAX
1996
Estimated
Annual
PAX
2000
Actual
Annual
PAX
(with direct
service to
Phoenix)
(Direct
service to
Phoenix
began in
1998)
PHX
IAH
ORD
NYC
WAS
BOS
ATL
3,190
7,430
4,360
3,930
4,035
2,130
2,320
18,887
9,240
9,055
7,923
7,092
5,382
5,336
35,580
12,270
7,570
4,970
7,390
1,900
3,740
Total
27,395
45,915
73,420
Community Air Service Needs & Deficiencies
Meadows Field (BFL) Airport’s Top 10 Domestic O&D Market
Rank*
Market*
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Phoenix
Houston
Denver
Seattle
Chicago
Salt Lake City
Dallas
Minneapolis
Portland
Washington, DC
Ticket Yield
Daily
Average
per
Passengers One-way passenger
One Way* Fare*
mile
28.8
20.2
17.4
16.2
11.0
9.5
9.4
7.5
6.3
4.8
$156.01
$327.51
$252.30
$208.37
$328.69
$176.38
$303.41
$241.42
$279.60
$311.60
31.48
19.00
22.65
18.37
15.14
16.66
19.30
12.10
21.75
10.66
Avg.
Ticket
Miles*
430
1,501
971
948
1,888
869
1,361
1,692
1,106
2,523
rd
*Source: Aviation DataMiner, Airport Top Markets O&D Report, 3 Quarter 2010
Prior to direct service, Phoenix was BFL’s seventh largest origination and destination (O&D)
market and had only 3,190 annual passengers, less than 10 daily passengers. 17 Direct service to
Phoenix reclaimed BFL’s Phoenix market leakage and is now BFL’s largest O&D market with
over 22,000 annual passengers and 56+ daily passengers. 18
16
Source:1996 Annual Passengers, Data Base Products, Inc. AIRS Market Averages Report 4th Quarter 1996; 1996
Market Estimates, The Boyd Group, Inc; 2000 Passengers Data Base Products, Inc. AIRS Market Averages Report
4th Quarter
17
Source: Data Base Products, Inc. AIRS Base Averages Report 2nd Quarter 1996
18
Source: Aviation DataMiner, Airport O&D Report 1st through 4th Quarter 2010
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
9
BFL’s second largest domestic O&D market behind Phoenix is Houston with 14,578 annual
passengers and 20 daily passengers each way. 19 In 2004, BFL received a SCASD Grant to bring
Continental Airlines between BFL and Houston (IAH). When Continental Airlines started
providing direct service to Houston, it became our number one domestic O&D market with
36,129 annual passengers and 50 daily passengers each way. 20 Continental provided service until
ExpressJet began to “Fly at Risk” with the ERJ200’s; flying the route for Continental Express.
The route was highly successful filling on average 143 seats out of 150 seats available. The loss
of ExpressJet caused Continental Express to stop service, with 3 flights daily on 50 seat ERJ’s.
The success of this route is reinforced by the return of Continental in April 2011 with the ER700
66 seat aircraft to our proven market.
Just as Continental Express proved successful with the BFL-IAH market, we believe this grant
will enable Great Lakes Airlines to provide successful BFL-SMF service that will stimulate
travel by air and move passengers from their auto and rail to air travel again.
In 2007 before direct service to Sacramento was provided with ExpressJet Airlines, Sacramento
was number fifty-seven (57) in our domestic O&D market. 21 Direct service to Sacramento
began in November 2007, and by the end of the 1st Quarter of 2008, Sacramento became number
three (3) in our domestic O&D market with 21+ daily passengers each way. 22
Airport Market O&D
Airport Market O&D
In and Outbound
2007Q2 to 2007Q2
In and Outbound
2008Q1 to 2008Q1
Rank
Market
Psgr
PDEW
(passengers daily each way)
Rank
Market
1
PHX
7,943
43.6
1
2
IAH
3,529
19.4
3
DFW
3,332
18.3
2
4
DEN
3,286
18.1
3
5
ORD
2,501
13.7
6
SAN
2,287
12.6
7
SEA
2,147
11.8
8
SFO
2,073
11.4
9
SLC
1,992
10.9
10
PDX
1,951
10.7
*57
SMF
357
2.0
Psgr
PDEW
(passengers daily each way)
PHX
6,750
37.1
IAH
4,571
25.1
SMF
3,891
21.4
4
SAN
3,290
18.1
5
DEN
2,959
16.3
6
DFW
2,828
15.5
7
SLC
1,997
11.0
8
SFO
1,811
10.0
9
0RD
1,729
9.5
10
SEA
1,710
9.4
ExpressJet regularly carried 19 to 24 passengers to Sacramento and our analysis, without
including leakage passengers, indicates another 20 passengers from our catchment area currently
fly to Seattle and Portland. 23 This would provide 39 to 44 daily passengers, perfect for two 30
seat Embraer aircraft if we include leakage passengers. Survey data from the Chamber of
Commerce and County Departments indicate a strong demand for travel to Sacramento. The
community can strongly support direct Sacramento air service, rather than the 6 hour drive or
train ride. While these surface transportation routes are available, they spike trip costs with a
need for an overnight stay for business travelers. We often have Water Agency travelers who
spend $800 per seat to charter flights, while State, County and school districts must reduce trips
or drive and remain overnight.
19
Source: Aviation DataMiner, Airport O&D Report 1st through 4th Quarter 2010
Source: Aviation Dataminer, Airport O&D Report 1st through 4th Quarter 2006
21
Source: Aviation Dataminer, Airport O&D Report 2nd Quarter 2007
22
Source: Aviation Dataminer, Airport O&D Report 1st Quarter 2008
23
Source: Aviation Dataminer, Airport O&D Report 1st through 4th Quarter 2010
20
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
10
Meadows Field (BFL) Airports Top 20 Leakage Markets 24
City
Airport
Code
Annual
Daily
Leakage
Leakage
PassengersPassengers
Guadalajara, Mexico
GDL
37009
Mexico City, Mexico
MEX
12087
Seattle, WA
SEA
9194
Leon-Guanajuato, Mexico BJX
8721
Chicago, Il
MDW,ORD
7722
Dallas, TX
DFW, DAL
6038
New York City, NY
JFK,LGA,EWR5860
San Salvador, El SalvadorSAL
5828
Honolulu, HI
HNL
5555
Morelia, Mexico
MLM
4997
Houston, TX
IAH,HOU
4734
Portland, OR
PDX
4482
Atlanta, GA
ATL
4418
Las Vegas, NV
LAS
4376
Maui, HI
OGG
3797
Orlando, FL
MCO
3640
Midland/Odessa, TX
MAF
3587
Baltimore,MD
BWI
3240
Puerto Vallarta, MX
PVR
3030
Salt Lake City, UT
SLC
2935
101.4
33.1
25.2
23.9
21.2
16.5
16.1
16.0
15.2
13.7
13.0
12.3
12.1
12.0
10.4
10.0
9.8
8.9
8.3
8.0
The chart above shows the top 20 leakage markets for BFL and the number of annual and daily
passengers who book flights in the BFL service area, but fly from another airport. Accurate data
is not available on those who drive or take Amtrak to Sacramento. If it were, these numbers
could be significantly greater based on letters from the community. The direct flight to
Sacramento can capture the Seattle and Portland leakage markets as well.
24
Source: 2002 Market Leakage Study conducted by Sabre, Inc.
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
11
Similar Market Comparison
All of the markets selected for comparison, except for Santa Barbara, CA, were chosen because
they are similar in population size to the Bakersfield (BFL) Metropolitan statistical area as
reported by the US Census Bureau. However, population alone does not define a market as
similar. This is why Santa Barbara, CA (SBA) was added as an airport for comparison because
of its proximity from LAX. Santa Barbara is located 107 miles from LAX. Meadows Field
(BFL) is located 123 miles from LAX. One of the biggest factors impacting service in small
communities is the cost of service at the nearest hub versus the cost of service at the small
community airport.
Ranked by population, on the chart below the yield per Coupon Passenger Mile (CPM) premium
is the difference between the yield per Coupon Passenger Mile (CPM) at the nearest large hub
airport and the yield per Coupon Passenger Mile (CPM) at the small community airport. BFL
Airport highlighted in yellow on the chart below is 123 miles from LAX and has the highest
yield premiums Per Coupon Passenger Mile (CPM). More interesting, however, are the airports
highlighted in green. Even though these airports are just as close or closer to large hub airports
their enplanements are substantially higher. What makes the difference? It appears that the
difference in yield per CPM plays an important role. What drives down the yield per CPM?
Competition!
The yield per CPM does not have to match the lower cost hub option; airlines can get a
reasonable fare premium in smaller markets, and customers respond positively to lower rates
with higher enplanements.
Net difference between Yield/CPM Small
Similar Markets Comparison 25
MSA
Airport
Albuquerque, NM
Albany, NY
Allentown, PA
Bakersfield, CA
Baton Rouge
Columbia, SC
McAllen, TX
Knoxville,T N
Akron, OH
Little Rock, AR
Charleston, SC
Witchita, KS
Santa Barbara, CA
ABQ
ALB
ABE
BFL
BTR
CAE
MFE
TYS
CAK
LIT
CHS
ICT
SBA
Airport and Yield/CPM at Hub Airport
Yield/C
PM
Miles to Closest Per
Small
Capita
a Large Large
Annual
demand Airport
Hub
Population Enplanements Hub
857,903
857,592
816,012
807,407
786,947
744,730
741,152
699,247
699,935
685,488
659,191
612,683
407,057
2,825,966
1,250,155
413,387
106,484
381,508
480,827
344,288
804,469
771,047
1,096,548
1,010,625
751,107
382,894
330
162
75
123
79
107
247
188
54
145
206
216
107
PHX
LGA
PHL
LAX
MSY
CLT
SAT
ATL
CLE
MEM
CLT
MCI
LAX
3.29
1.46
0.51
0.13
0.48
0.65
0.46
1.15
1.10
1.60
1.53
1.23
0.94
15.44
15.13
14.09
17.12
18.34
23.36
16.96
21.80
14.28
18.87
20.80
15.19
14.41
Yield/C
PM at
Hub
CPM
Airport Premium
13.51
17.22
15.04
11.92
16.11
19.18
14.78
18.13
18.41
22.47
19.18
15.72
11.92
Santa Barbara, CA airport has a lower yield per Coupon Passenger Mile (CPM) than BFL, yet
they do not have a true low cost carrier. They simply have more service per capita. Out of the
highlighted airports, Akron, OH (CAK) has the highest service per capita and has the lowest
yield per Coupon Passenger Mile (CPM). When supply is insufficient to meet market demand,
prices will rise.
25
Source: All Metropolitan Statistical Area information is from the US Census Bureau July, 1 2009; Annual Enplanements and
Yield/CPM is from Aviation DataMiner, Directional Enplanement Trend Report 2010 and Airport O&D Report 1st through 4th
Quarter 2010
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
1.93
-2.09
-0.95
5.20
2.23
4.18
2.18
3.67
-4.13
-3.60
1.62
-0.53
2.49
Kern County Airports Department
12
The chart below compares service levels at airports that have both similar service area
populations and are also close to a major hub airport. The BFL market is severely underserved
when compared to the majority of other markets that are located within a two-hour drive of a
major hub airport and have similar sized populations. ABE, BTR, CAE, and SBA all have close
to three times the air service that BFL has. BFL also has one weekly flight per 10,765 people,
compared to SBA which has one weekly flight per 1,801 people; clearly a positive indication of
pent up demand for service at BFL.
Bakersfield
Allentown
(BFL)
(ABE)
2009 MSA
Population 26
Enplanements 27
Weekly
Frequencies 28
Number of
Carriers 29
Number of Nonstop Destinations 30
One Weekly Flight
per
Baton
Rouge
(BTR)
Columbia
Akron
(CAE)
(CAK)
Santa
Barbara
(SBA)
807,407
816,012
786,947
744,730
699,935
407,057
106,484
75
413,387
231
381,508
204
480,827
256
771,047
280
382,894
226
2
9
4
5
5
5
5
14
5
10
14
5
10,765
People
3,533
People
3,858
People
2,909
People
2,500
People
1,801
People
Average fares for Similar Markets 31
1% Difference
14% Difference
$300
$282
42%
Lower
than
BFL
$280
$280
$260
$242
$227
$240
$220
$187
$200
$180
$163
$160
$140
$120
$100
Co lu mbi a, SC (C AE)
Bak ersfie ld , C A (BFL)
S an ta Barb ara , C A
(SBA)
Bato n Ro ug e, LA
(B TR )
Alle nto wn , PA (A BE)
Akro n, OH (CA K)
BFL has a high average fare when compared with similar markets. The most expensive markets
within the group are within 1% of each other. The lowest cost market in the group, CAK’s
average fare, is almost 42% lower than BFL’s.
26
US Census Bureau Metropolitan Statistical Area information July 1, 2009
Aviation DataMiner, Directional Enplanement Trend Report 2010
28
Source: Individual Airport Websites; Aviation DataMiner, Time Period Schedule (Departures) Report,
August 1-7, 2011
29
Source: Individual Airport Websites
30
Source: Individual Airport Websites
31
Source: Aviation DataMiner, Airport O&D Report 1st through 4th Quarter 2010
27
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
13
Competing Markets
Fare Comparison of BFL’s Top Ten Markets 32
Against BFL’s Three Top Leakage Airports
$350 .00
$300 .00
$250 .00
$200 .00
$150 .00
$100 .00
$50 .00
$Phoenix
Houston
Denver
Seattle
Chicago
Salt Lake Dalla s Ft. MinneaCi ty
Worth
polis
Portland
Washing- Market
ton, DC Average
BFL
$156.01
$327.51
$252.30
$208.37
$328.6 9
$176.38
$303.41
$2 41.42
$279.60
$311.60
$258.53
LAX
$122.34
$294.14
$139.14
$162.20
$265.3 0
$149.83
$247.49
$2 50.83
$188.41
$277.21
$209.69
FAT
$154.42
$222.19
$264.50
$194.60
$290.1 4
$283.28
$304.73
$2 12.42
$197.06
$275.19
$239.85
BUR
$121.47
$199.30
$188.79
$168.41
$250.2 0
$175.57
$264.54
$2 19.79
$182.90
$236.66
$200.76
The more important fare comparison is with those markets that compete for passengers with
BFL. BFL has the highest overall average fare for its top ten markets compared with BFL’s top
leakage airports. Often market pricing variances are attributed to equipment differences in large
markets versus smaller markets. However, data proves this statement to be contrary in this
instance. A flight from Los Angeles (LAX) to Phoenix (PHX) currently costs $372.00 round trip.
From Santa Barbara (SBA) to Phoenix (PHX) the fare is $374.00 round trip. While from BFL the
price is $491.00, with all itineraries being on the same CRJ model. 33
32
33
Source: Aviation DataMiner, Airport O&D Report, 3rd Quarter 2010
Source: Orbitz, July 26, 2011
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
14
Strategic Plan
Air service deficiencies to be addressed through this project:
1. BFL is an underserved airport with approximately 1/3 the air service of similar
communities.
2. Capacity reductions have caused fares at BFL to rise until we are currently the highest
priced airport in Southern California.
3. BFL serves the many schools, water agencies and companies who deal with the State
government in Sacramento. Because of this, there is substantial business travel between
BFL and SMF. When direct service to Sacramento was available, Sacramento quickly
became part of our top ten largest markets, and yet at this time there is no direct service.
4. Total market leakage of 75% from BFL is due to inadequate service. The addition of
new service will again require that BFL develop a uniform and consistent identity to
promote our airport to the general public and reduce auto travel to LAX.
Strategic Plan to Address Air Service Deficiencies:
1. Project Goals
Our primary project goal is to add another air carrier to our market in order to address the
identified air service deficiencies. Our secondary project goal is to develop a uniform and
consistent identity and to promote the airport to the general public in order to regain
leakage passengers.
2. Action Plan
In order to meet our primary project goal, we have identified Great Lakes Airlines as the
carrier that can meet a primary unmet air service deficiency that exists in the BFL market.
The introduction of two flights per day by Great Lakes Airlines to Sacramento on the
EMB-120 will add approximately 420 more weekly seats to the BFL market increasing
capacity by close to 11%. In addition, Great Lakes Airlines serves the central western
states and has code share with United Airlines in un-served Pacific Northwest. . While
this will not cure all of our air service deficiencies, it will be a healthy start to providing
the service that will fill the significant needs of our community.
The first part of our action plan includes three elements in order to be successful. The
first element is to offset the initial risk of entering our market by assisting with station
start-up costs. Great Lakes will already have a substantial investment in the cost of the
aircraft to operate the service between BFL and SMF. The second element involves
marketing the new service to our community. The third element is to set aside funds for
revenue guarantees in order to offset the ongoing risk of beginning service in a brand new
market.
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
15
We have begun the dialogue with Great Lakes Airlines to meet our primary objective.
While our market looks promising, Great Lakes, as with most airlines, are not in a
position to take risks on new and unproven markets. In order to be successful in gaining
service to Sacramento we need to:
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Modify ticket counters, lift stations and hold rooms
Equip back room offices (office furniture and equipment)
Obtain equipment to service aircraft
Equip the terminal with additional electronic monitors for the public
Waive landing fees
Advertise and promote the launch of service
Provide ongoing promotion
Provide revenue guarantees
We, as an airport, can fund part of this and have gained some financial support from the
community. However, we need the assistance from the grant in order to complete the
financial package.
ƒ
Station Start-up Costs
The cost of an aircraft to begin service in a new market is a substantial
investment; however it is not the only cost that a carrier must consider.
Station start-up costs for new service at BFL are approximately at $408, 225.
The second part of our action plan involves hiring a consultant to run a new leakage study
for the BFL catchment area. The Leakage Study will help us market to new carriers by:
ƒ Evaluating the impact of new service on leakage from our market.
ƒ Identifying the current top leakage markets for the BFL catchment area.
ƒ Examining any changes in travel patterns from the leakage study we
performed in 2002.
3. Marketing Plan: Community Awareness of Service Available
Our marketing plan encompasses a broad range of media and collateral materials in order
to saturate the market. Marketing will include not only marketing new service to
Sacramento on Great Lakes Airlines, but will also include marketing the airport as well.
Marketing the new Great Lakes Airlines service to Sacramento will begin approximately
six weeks prior to the start of service. The first part of the marketing effort will be a press
release to local media announcing the new service. It has been our past experience that
new service will be covered by all of our local news media. Two weeks later we will start
our saturation campaign, which will last until one week after service is initiated. The
saturation campaign will include television spots, radio spots, newspaper ads and
billboards. We will also place newspaper ads and billboards in the Valencia/Castaic area
and Southern Tulare County. Valencia/Castaic is halfway between BFL and LAX and is
one of the fastest growing areas in California and can commute more easily north to BFL
than south to LAX.
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
16
After the saturation campaign is complete, we will run maintenance advertising for the
next two months. Then we will run another one-month saturation campaign prior to the
start of summer that will mirror the initial kick-off campaign. We have partnered with
local television and press in order to maximize our marketing efforts. They have agreed
to provide 30% to 50% in additional advertising for every dollar we spend. We will also
provide collateral materials to local travel agents to give to their clients who book flights
from BFL.
In addition to traditional advertising, we will run a marketing effort with our local travel
agencies called “Think Meadows Field First.” As a part of our promotion of Great Lakes
Airline service, we will meet with Great Lakes Airline sales representatives and local
travel agencies to promote their new service from BFL. We will also put together various
travel related promotional items for the travel agencies to give to clients who book their
air travel from BFL during the saturation campaigns.
The marketing program will not only focus on the new service but will also include
marketing of the airport to enhance ridership on existing carriers at BFL. The airport
marketing will require emphasis of the airport logo, graphics and copy layout for ads and
promotional items, publication and widespread distribution of an electronic newsletter,
updating the airport website, and the creation of brochures to promote the airport to the
airlines and the general public.
4. Revenue Guarantees
The final element in our plan involves setting aside $225,000 in funding to offset
operating losses that may occur during the first eighteen months of operation. Because of
the extensive traffic analysis that we have done and the tremendous support for service to
Houston from our community, we believe that the service will very quickly reach
profitability. However, these are very uncertain times that we live in and the first eighteen
months of service will be critical. The terms and conditions surrounding the revenue
guarantees will be negotiated with Great Lakes Airlines should we be successful in our
grant application. The negotiation process will include setting traffic and revenue targets
and will contain performance and reliability requirements for Great Lakes Airlines
service in the BFL market such as mutually agreed upon completion rates and on time
performance requirements.
5.
Sustainability
The BFL catchment area generates close to 400,000 passengers annually. 34
Unfortunately, due to limited air service from BFL, approximately 75% of these
passengers drive to other airports for service.
34
Source: 2002 Market Leakage Study conducted by Sabre, Inc.
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
17
When analyzing BFL’s top ten markets during the time frame that direct service to
Sacramento was available, Sacramento became BFL’s third (3rd) largest O&D market and
generated approximately 23 daily passengers with 28+ daily passengers going further north. 35
Kern County has significant business links with the state capital, Sacramento, generating
substantial business travel between BFL and SMF. Passengers book air travel from BFL’s
service area to domestic destinations served through Sacramento, but because of the current
air service inadequacies at BFL, these passengers drive or take AMTRAK to Sacramento.
In addition, a route to the Pacific Northwest could capture all of the local market, providing
the following passengers daily each way (PDEW): 36
BFL-SMF: 23
BFL-SEA: 14
BFL-PDX: 6
BFL-GEG: 3
BFL-ANC: 1
The total passengers for these core routes are 47 passengers per day each way. If we add 40%
of the leakage passengers from the Sabre Study, there would be an additional 19 passengers
for a total of 66 PDEW. 37
The bottom line sustainability is based on population and demographics. Is there a passenger
base capable of sustaining the service? A small community cannot afford to continue to
subsidize service that is underutilized forever. As an airport, we can subsidize service for a
short period of time; however, the service must make sense and offer real value to the
community. We feel that service on Great Lakes Airlines through Sacramento meets this
criterion.
BFL has the passenger base to sustain service on Great Lakes Airlines to Sacramento. With
adequate marketing, BFL to SMF should be a very profitable route for Great Lakes Airlines.
Population Growth 2000-2010
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
California
Bakersfield Santa Clarita
Fresno
Stockton
Modesto
*Source: U.S. Census Bureau State & County Quick Facts, Census 2010
For the past decade Bakersfield has been one of the fastest growing communities in
California.
35
Source: Aviation DataMiner, Airport O&D Report, 2nd Quarter 2008
Source: Aviation DataMiner, Airport O&D Report, 1st through 4th Quarter 2010; SMF number based on the time
period when ExpressJet was offering the service – Aviation DataMiner, Airport O&D Report, 2nd Quarter 2008
37
Source: 2002 Market Leakage Study conducted by Sabre, Inc.: SEA 10, PDX 5, GEG 2, ANC 2
36
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
Quarterly Electronic
Newsletter
6.) Airport Marketing
Brochures
Promotional Items
Website Update
Media Advertising for
Airport
Provide ongoing promotion
Travel agency meeting
Promotional items
Marketing and Promotion of
5.) Service
Saturation Campaigns
Waive landing fees:
( 3 months)
Revenue Guarantees
(up to 18 Months)
4.) Funding for Operations
Great Lakes service between
3.) BFL and SMF
Purchase and Install Equipment
2.) for Station Start-up
1.) Lakes
Negotiate Agreement with Great
Activity
Receipt of
Grant
J-12 F-12 M-12 A-12 M-12 J-12 J-12 A-12 S-12 O-12 N-12 D-12 J-13 F-13 M-13 A-13 M-13 J-13 J-13 A-13
Project Timeline: Great Lakes Airlines: 2 Daily Flights to Sacramento on Brasilia EMB 120
Kern County Airports Department
18
8/2/2011
Kern County Airports Department
19
Public and Private Partnership
The Kern County Department of airports has partnered with the local community to
ensure the success of Great Lakes Airlines service to Sacramento. The Department of
Airports has been in constant contact with organizations that travel frequently to
Sacramento. Many of these companies have written letters of support (attached) for the
new service:
ƒ
ƒ
ƒ
ƒ
Kern County Superintendent of Schools
Kern County Water Agency
Greater Bakersfield Chamber of Commerce (GBCC)
Bakersfield Convention & Visitors Bureau
In addition to the support from our local schools, water agencies and government offices,
local media have pledged matching funds to market Great Lakes Airlines service to
Sacramento.
ƒ The Bakersfield Californian
ƒ KGET TV Ch17 (affiliated with CW and Telemundo television stations)
ƒ KERO TV Ch 23, A division of the McGraw-Hill Companies
ƒ KBAK TV Ch 29/KBFX TV Ch 58 /THIS TV
Project Sponsor
The sponsor and fiscally responsible party for this project is:
The Kern County Airports Department
3701 Wings Way, Suite 300
Bakersfield, CA 93308-7026
Budget for Program
The Airports Chief Financial Officer manages contracts and grants for the organization.
She and her staff have 35 years combined experience managing large state and federal
grants. Staff utilizes a modern computerized accounting system designed for contract
management. Legal counsel, engineering, and purchasing staff are available to assist as
required.
This organization receives annual entitlement grant funds and periodic discretionary grant
funds from the Federal Aviation Administration Airport Improvement Program. The
funds are managed through a regimented process of project engineering and proposal,
project approval, grant fund acceptance, project implementation and execution, project
completion and acceptance, and expenditure reimbursement. The mechanics of the
process are well established and efficient. Projects completed with FAA AIP funds over
the last ten years have ranged from $65,000 to $33,000,000.
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
20
Program Budget
Great Lake Airlines: 2 Daily Flights to Sacramento on Embraer's
Airport Airport InCash
Kind Community
Activity
Grant
Total
$150,000.00
$10,000.00
$160,000.00
$10,000.00
$60,000.00
$18,255.00
$150,000.00
$10,000.00
$160,000.00
$10,000.00
$60,000.00
$18,255.00
$408,255.00
$408,255.00
$225,000.00
$225,000.00
1.) Equipment for Station Start-up
GSE
Radio
Telephones and Data
Electronic Service Center
ATO, Bag Belts, Security
Furniture Fixtures and Equipment
Total for Equipment
$0.00
$0.00
$0.00
2.) Funding for Operations
Provide Revenue Guarantees
Airline Rent abatement (3 months)
Waive landing fees: ( 3 months)
Total for Operations
$0.00
$18,450.00
$18,450.00
$3,933.00
$3,933.00
$22,383.00
$0.00
$225,000.00
$247,383.00
$52,580.00
$39,000.00
$20,000.00
$120,600.00
$91,000.00
$15,000.00
$20,000.00
$173,180.00
$130,000.00
$15,000.00
$91,580.00
$246,600.00
$338,180.00
3.) Marketing and Promotion of Service
Leakage Study and Market Analysis
Saturation Campaigns
Provide ongoing promotion
Promotional items
Total for Marketing and Prom otion
$0.00
$0.00
4.) Airport Marketing
Board of Trade
Brochures
Promotional Items
Webs ite Update
Quarterly Elec tronic Newsletter
$1,500.00
$2,500.00
$2,000.00
$2,500.00
$1,500.00
$2,500.00
$2,000.00
$2,500.00
$5,200.00
$5,200.00
Total for Airport Prom otion
$8,500.00
$5,200.00
$0.00
$0.00
$13,700.00
Project Totals
$8,500.00
$27,583.00
$91,580.00
$879,855.00
$1,007,518.00
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
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Critical Milestones, measures of success, monitoring,
modification and termination
Critical milestones for the project will be:
1. Execution of an agreement between Great Lakes Airlines and BFL to
begin service to SMF
2. The start of BFL-SMF service by Great Lakes Airlines
The success of the program will be evaluated based on several performance criteria
including:
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Initiation of BFL-SMF service two flights daily on Embraer Brasilia
EMB-120 by Great Lakes Airlines
Overall traffic generated by BFL-SMF on Great Lakes Airlines
A decrease in average fares at BFL
An increase in overall enplanements at BFL
What we will use to monitor results:
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Monthly airline traffic statistics
Aviation DataMiner: Quarterly Report of Airline Statistics
The Department of Transportation’s: The Domestic Airline Fares
Consumer Report
If an agreement is not reached with Great Lakes Airlines or for some reason scheduled
service is not started by September of 2012 then we would look at the need to modify the
project to meet our objectives. If it is not possible to modify the project in order to meet
our goals then we would terminate the project and return the grant funding.
Letters of Support
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Great Lakes Airlines
The Honorable Jean Fuller, California State Senator 18th District
The Honorable Michael J. Rubio, California State Senator 16th District
Assemblywoman Shannon Grove, California Legislature 32nd Assembly District
Mike Maggard, Kern County Supervisor 3rd District
Kern County Superintendent of Schools
Kern County Water Agency
Greater Bakersfield Chamber of Commerce (GBCC)
Bakersfield Convention & Visitors Bureau
The Bakersfield Californian
KGET TV Ch 17 (affiliated with CW and Telemundo television stations)
KERO TV Ch 23, A Division of the McGraw-Hill Companies
KBAK TV Ch 29/KBFX TV Ch 58/THIS TV
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
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Kern County Airports Department
APPENDIX C
Page 1 of 2
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM
DOCKET DOT-OST-2011-0119
SUMMARY INFORMATION
All applicants must submit this information with their proposal, along with a completed
form SF424 on http://www.grants.gov.
A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)
Not a Consortium
Interstate Consortium
Intrastate Consortium
Community now receives EAS subsidy
; Community (or Consortium member) previously received a Small Community Grant
If previous recipient: Date of grant: November 3, 2003 Expiration date of grant: October 26, 2006
B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)
Private
Public
1. Kern County Airports Department
2. Kern County Superintendent of Schools
3.
4.
5.
6.
7.
8.
1. Great Lakes Airlines
2. Kern County Water Agency
3. Greater Bakersfield Chamber of Commerce
4. Bakersfield Convention & Visitors Bureau
5. The Bakersfield Californian
6. KGET TV Ch17 (affiliated with CW and
Telemundo television stations)
7. KERO TV Ch 23 A division of the McGrawHill Companies
8. KBAK TV Ch 29/KBFX TV Ch 58 /THIS TV
C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)
9Marketing
Upgrade Aircraft
9New Route
Travel Bank
Service Restoration
Subsidy
Surface Transportation
Regional Service
9Revenue Guarantee
9Launch New Carrier
9Start-up Cost Offset
First Service
9Study
9Secure Additional Carrier 9Other: Fare Reduction
Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011
Kern County Airports Department
APPENDIX C
Page 2 of 2
D. EXISTING LANDING AIDS:
; Full ILS
; Localizer
; Outer/Middle Marker
; Published Instrument Approach
; Other (specify): CAT I ILS Enhanced (Full Runway Center Lights for Runway
30R, 3 RVR’s) 600’ minimums
E. PROJECT COST: Do Not Enter Text In Shaded Area
LINE
1
2
DESCRIPTION
Federal amount requested
State cash financial contribution
SUB TOTAL
TOTAL AMOUNT
879,855.00
0
Local cash financial contribution
3a
Airport cash funds
3b
Non-airport cash funds
3
Total local cash funds (3a + 3b)
4
TOTAL CASH FUNDING (1+2+3)
8,500.00
0
8,500.00
888,355.00
In-Kind contribution
5a
Airport In-Kind contribution**
5b Other In-Kind contribution**
5
6
27,583.00
91,580.00
TOTAL IN-KIND CONTRIBUTION
(5a + 5b)
TOTAL PROJECT COST (4+5)
119,163.00
1,007,518.00
IN-KIND CONTRIBUTIONS**
For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please
describe the source(s) of fund(s) for each.
5a is for Airport waiver of landing fees and rent abatement, and preparation of Terminal.
5b is for media contribution to match publicity.
F. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE
ORDER 12372 PROCESS?
a. This application was made available to the State under the Executive Order 12372
Process for review on (date) _____________________.
b. Program is subject to E.O. 12372, but has not been select by the State for review.
;
c. Program is not covered by E.O. 12372.
G. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”,
PROVIDE EXPLANATION)
; No
Yes (explain)
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Small Community Air Service Development Program Proposal
Docket DOT-OST-2011-0119
8/2/2011