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Better Worse Same Better Same Report on Commercial Service

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Better Worse Same Better Same Report on Commercial Service Report on Commercial Service Airports Air Transportation Liaison Committee Spring Creek Ranch, Jackson Hole August 30th, 2016 Background: There are 10 airports in Wyoming that provide commercial air service. Each airport is a member of the Wyoming Airport Operators Association. As we have done in the past, we asked each of our members the following questions: Is your air service better today than it was a year ago? Do you anticipate your air service to be better a year from now than today? More specifically, we asked each commercial service airport to: Describe any successes they have had; Describe any challenges; and Provide any thoughts, suggestions, or recommendations regarding State support or assistance that could be addressed with the Air Transportation Liaison Committee. The following is the report of air service in Wyoming as reported by the responding members. Is your air service better today than it was a year Same ago? Worse Better Do you anticipate your air service to be better a year from now than today? Same Worse Better 1 Is your air service better today than it was a year ago? Casper – No Cheyenne – No Cody – Yes Gillette – Since the CRJ200 jet aircraft were introduced February 1, 2015 at the Gillette Campbell County (GCC) airport set an all-time record for calendar year 2015. Total passengers increased by approximately 20 percent for the 2015 fiscal year. However, the first quarter of the year shows a 5% decrease in air travelers and is anticipated to only continue to decrease. Jackson Hole – Yes Laramie – Same Riverton – Yes! We’ve added flights to Denver with Denver Air Connection, sharing a plane with SHR. This is in addition to the existing Great Lakes flights. Rock Springs – Through the 1st 7 months of CY 2016, our total passengers between RKSDEN is down 5.4% (1,035 Passengers) YoY. Our available seats for the same period are up 0.53% (200 Seats). While these numbers do not represent a situation worth bragging about, we would argue that in the current economic climate with the loss of hundreds of oil & natural gas jobs in our region, we are pleased that these numbers are not any worse. Through increased marketing efforts, the Rock Springs Sweetwater County Airport Joint Powers Board has been successful in increasing our retention rate which has helped offset the loss of our mineral business travelers. The service from SkyWest has been nothing short of reliable and the relationship between the community and SkyWest has grown exponentially to allow for more two way communication regarding airfares, schedules, and service quality. While the local economic climate will continue to stymy our passenger growth, we feel that we are laying the foundation for long term success with not just our business community but also our leisure travelers. Sheridan – Yes Worland – 2 Do you anticipate your air service to be better a year from now than today? Casper – Yes Cheyenne – We hope so. We continue to reach out to various carriers and are hoping to land a contract in 2017. Cody – Yes Gillette – The same as it exists today. The GCC airport has one more year remaining in its minimum revenue guarantee agreement which has deceased to half of what it was in the previous agreement. More specifically: The GCC airport is hopeful that SkyWest will in the near future provide an early morning departure to Salt Lake City (SLC) hub and an evening arrival from SLC. Jackson Hole – Yes Laramie – Same Riverton – We hope so. It would be wonderful if both SHR and RIW had sufficient passenger volume to each have their own am flight to DEN/evening return flight from DEN. Time will tell. This depends on regaining sufficient numbers of travelers, as well as being able to fund the MRG for flights. Rock Springs – While the local economic climate will continue to stymy our passenger growth, we feel that we are laying the foundation for long term success with not just our business community but also our leisure travelers. This foundation will allow us to rebound even better when the economy swings in a positive direction. Sheridan – Yes Worland – 3 Describe any successes you have had: Casper – SkyWest - We were successful in working with SkyWest on the addition of some capacity for the Oil and Gas Fair. We also had a successful Jet Me to the Sun marketing and advertising campaign. Allegiant - We celebrated seven years of Allegiant service September 9th. Allegiant’s service this year did not have a seasonal stoppage, meaning the flights continued on a twice a week schedule for the entire year. Cheyenne – None. Cody – Commercial airline passenger numbers are indicating tremendous growth with July being the single largest passenger boarding month on record at the airport. This is primarily due to the increased flights offered on SkyWest Airlines for the summer months as part of the recent Essential Air Service contract awarded to SkyWest. In addition, the summer revenue guarantee flights with United Airlines to Chicago increased from once a week to twice a week for a nine week period. Cody was pleased to offer 34 weekly commercial flights this summer. This is approximately a 25% increase in flight activity from last year. The increased flight activity definitely was beneficial to the local economy as July enplanements surpassed the 5,000 passenger number. This is definitely a boost to the local economy as most passengers are tourism related. The car rental agencies have also experienced a large upswing in rentals due to the increase in passenger numbers resulting in additional income to the Airport through car rental concession fee income. Gillette – The answer to the first question best describes the GCC airport’s success regardless of the bleak future outlook of the energy industries. Passenger retention continues to increase and air fares competitive with Rapid City, South Dakota. Jackson Hole – We experienced a record winter in 2015 with 118,121 enplanements between December 2015 and March 2016, representing a 14.5% increase over the previous record. According to the annual winter survey conducted by the Jackson Hole Airport, “Available seats jumped by an even larger by 22.1 percent from 2014/15, while the overall load factor declined to 69.5 percent from 74.1 percent last winter. Both enplanements and seats were up strongly in all months, most dramatically in December...” Following this trend, we expect this winter to have similar seat numbers but these seats will be more targeted to peak travel times. Additionally, this summer has seen strong numbers with 12 overnight planes Saturday night. Survey numbers indicate continued high customer satisfaction. This has been one of our focuses and is reflected in the winter survey, “Ratings of the Jackson Hole Airport and flight service to Jackson Hole increased from last winter, in most cases reaching winter all-time highs.” Additionally 97% of survey respondents were either very satisfied or satisfied with the security screening process. “Finally, air service satisfaction ratings were up strongly this winter from last, including flight availability, convenience, and cost (likely reflective of the 4 increased number of seats into the Airport this winter). Additionally, overall satisfaction with the Jackson Hole Airport rose to an all-time winter high in the 2015-2016 season, as did ratings of all aspects of air terminal operations and all employee groups, clearly a strong performance despite an increased volume of passengers through the airport.” Laramie – Laramie Regional Airport’s enplanement and deplanement numbers through the first 6 months of 2016 showed substantial improvements over the same period in 2015. The traveling public has expressed great satisfaction in the CRJ aircraft. The professionalism and tie-in with United has been a huge improvement for Laramie. Travelers seem to have confidence in SkyWest/United Express that their flights will operate and be on time. Riverton - Three weeks into flights provided by DAC have been well received, with no problems. Rock Springs – The FY16 MRG proved to be very successful. The $1.9 million MRG allowed SkyWest to provide reliable air service to Southwestern Wyoming. Every forecasted parameter of the MRG was better than expected: Passengers: 4.4% Higher than Forecast Revenue: 13.9% Higher than Forecast Block Hour Cost: 4% Lower than Forecast Fuel Cost: 34.9% Lower than Forecast These better than expected numbers resulted in only 40.85% of the total MRG being paid, which saved WYDOT $782,275.51. As a result of this success and timely negotiation with SkyWest, the FY17 MRG is$303,394 less than FY16. Sheridan – After losing our air service in March of 2015 we were without service for 8 months. In November 2015 we once again had air service. We are served by Denver Air Connection with two daily flights to Denver flown by a Dornier 328 30 passenger jet. Worland – 5 Describe any challenges: Casper – The challenge we have this year is trying to maintain the level of air service we have achieved during a time of economic regression. Cheyenne – 1500 hour rule, community support is lacking in terms of financial commitments, Big 4 are more interested in larger profit guaranteed markets, which leaves CYS chasing the smaller carriers which could lead to service reliability problems down the road if uncertain economic times are encountered. Cody – Due to the increased flight activity to Salt Lake City on SkyWest / Delta Connection, United Airlines decided not to add additional summer service between Cody and Denver. This decision has definitely impacted the passenger numbers on United, and as a result United has decided to only serve the Cody market on a summertime seasonal basis. Gillette – With the given forecast of steep decreases in the energy revenue to the State and Campbell County, passenger retention will be very important to maintain until the energy sector economy improves.
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