Economic Importance of Scheduled Air Service to Northeastern Nevada. March 5, 2015 Nevada Senate BILL 125

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1 Economic Importance of Scheduled Air Service to Northeastern Nevada March 5, 2015 Nevada Senate BILL 125

2 Elko Regional Airport: An Underutilized Economic Asset to Nevada Catchment Area has Strong Demographic Demographics outperform state of Nevada in household income, unemployment and population growth No easily accessible alternative airport in catchment area Northeastern Nevada is Under Served Elko Regional Airport has twice daily scheduled jet airline service to Salt Lake City operated by SkyWest Airlines, a Delta Connection. Northeastern Nevada has no airline links within Nevada. A 2014 Passenger Air Leakage Study conducted by Forecast, Inc. found that 6 out of the top 10 air destinations flown by Northeastern Nevadans were West of Elko while current air service provides service connections to destinations East. Reno, Nevada was Elko s top air destination when scheduled passenger flights operated between the two cities ( ). Elko averaged 17,450 passengers between Elko and Reno. Elko is the largest city for 130 miles in any direction and is geographically isolated by vast distances to other metropolitan centers making aviation an important mode of transportation.

3 Elko Catchment Area Catchment Population Map BOI Catchment Population Detail Population 40, mile radius Income $77k 100 Miles EKO SLC 100 mile radius Population 56,902 Income $70.5k 50 Miles Boise, ID 191 miles RNO Distance to closest airports Reno, NV 230 miles Salt Lake City, UT 200 miles Summary Population of over 55k people within 100 miles of Elko Regional Airport EKO relatively high income for state of Nevada No easy access to alternative airports within 100 miles

4 Smaller Regional Airports are Losing Traffic Nationwide SIMILAR WESTERN COMMUNITIES WHICH LOST AIR SERVICE IN 2014 Chico, CA Modesto, CA Moab, UT Klamath Falls, OR Yuma, AZ

5 Intrastate Aviation is Economically Important to Elko & Nevada 2014 Air Leakage Study found Reno, Nevada was the top air destination need identified for Northeastern Nevada and would support an estimated 15,000-20,000 passengers annually 80% of passengers flying from Elko are traveling on BUSINESS Reno/Tahoe International Airport has lost 10% of its airline departures and Nevada needs support to restore lost service.

6 NEVADA MINING The cancellation of SkyWest flights to Reno and back have placed a burden on business especially the mining industry. Flying is a major time savings My company completed the permitting process for one of our projects. This involved numerous trips 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 driving trips to Reno and Carson City wasted an incredible amount of time. Our company is now beginning the permitting process for another property and facing the same travel restrictions It is a serious problem in work efficiency when there is so much time wasted driving. KEVIN KINSELLA, MANAGER LAND AND WATER, GENERAL MOLY, INC. ELKO Mining supports the largest general aviation revenue stream for Elko Regional Airport

7 NEVADA PRIVATE SECTOR Connecting Elko by air to more destinations will keep me up-todate in my field and make it possible for the industry come to me on a more frequent and regular basis. I travel to the Reno/Carson City area many times throughout the year and to the San Francisco Bay area frequently. I would love to see air service restored to Reno, which also gives us a more direct path to the west coast. CATHERINE WINES, ARCHITECT R6 STUDIOS ELKO We are a Nevada-based business, doing business primarily in Arizona, Utah, and Nevada. Adding air service to additional markets in Nevada, particularly Las Vegas and Rena, would substantially aid our commercial efforts.. IAN WEIGHT, CHIEF FINANCIAL OFFICER/GENERAL COUNSEL RAM ENTERPRISE INC., ELKO Prior to termination of the Elko to Reno route, lawyers in our firm relied heavily on air service for the many hearings, depositions, mediations, trials and meetings that take place in Reno and Carson City involving our Elko- Area clients. However, now we are faced with the options of using teleconferencing or driving 4 to 4 ½ hours, neither of which are preferable to flying. Were this service to return, it would be a great benefit to our business and to our clients. DAVID STANTON, ESQ. LAW OFFICE OF GOICOECHEA, DI GRAZIA, COYLE & STANTON LTD., ELKO

8 NEVADA HEALTHCARE Nevada Health Centers (NVHC) operates 16 health centers throughout the state of Nevada including the Elko Family Medical and Dental Center, which provides access to quality healthcare and dental care to the residents of Elko and the surrounding area. Enhanced travel to and from the Elko area is critical for our operation when recruiting new providers to work and live in our Elko community, when urgent staffing needs must be met from other areas of the state and to more easily transport supplies to this health center. Nevada Heath Centers is very supportive of the initiative to bring scheduled air service between Elko and Reno. LISA DETTLING, VP OF MISSION STRATEGY NEVADA HEALTH CENTERS, CARSON CITY I am a physician from Nevada Orthopedic Clinic. We travelled to Elko twice monthly with two medical providers traveling on each trip. There are multiple physicians from the Reno area who do similar travels to Elko. A dentist travels three times weekly, an ENT surgeon who travels twice monthly, a psychiatrist monthly and a spine surgeon. The loss of air service [to Reno] in 2006 has stopped our ability to provide orthopedic care in Elko. I hope you attract a new airline to provide service between Elko and Reno, NV. DR. PAUL SHONNARD, RENO ORTHOPEDIC CLINIC, RENO

9 NEVADA PUBLIC SECTOR The forensic laboratory which supports the Elko County District Attorney s Office, the Forensic Sciences Division of Washoe County Sherriff s Department, is located in Reno, Nevada. No such services-at all-are available locally. The expense associated with flying a Criminalist from Reno, which currently entails them flying from Reno to Salt Lake to connect with a Delta flight to Elko-the only means at this point of traveling by air to Elko from Reno, is prohibitively expensive-to the point where it has adversely impacted our ability to routinely prosecute simple cases like per se DUI Cases which are dependent upon the ability to adduce forensic evidence of the blood alcohol findings, in the outlying (i.e. other than Elko) justice courts. When we had regular flight service directly to and from Reno from Elko, we could often fly the Criminalist in early in the morning, have them appear and testify, and get them on a return flight that same day. That is often impossible now- particularly if we are contemplating having them appear in one of the outlying Justice Courts. I, as the District Attorney of Elko County, Nevada am very supportive of the initiative to bring regional service to Reno. MARK TORVINEN, ESQ. ELKO COUNTY DISTRICT ATTORNEY, ELKO

10 NEVADA TOURISM & CONVENTION I am in the life insurance business plus own Cowboy John Tours having airline transportation from Reno to Elko would improve both of these businesses JOHN COLLETT, OWNER COWBOY JOHN TOURS, LLC., ELKO The Elko Convention and Visitors Authority has spent the last year researching the need and feasibility of an expansion to our existing convention center. Additional air service is critical to the success of this proposed addition. Nevada State Associations and their annual meetings would be a significant portion of the marketing strategy going forward. The opportunity for Elko to host and showcase our community to those from throughout the State would increase significantly if this route could be reestablished. DON NEWMAN, EXECUTIVE DIRECTOR, ELKO CONVENTION & VISITORS AUTHORITY, ELKO

11 AIR SERVICE TARGET MARKETS LEGEND EKO-SLC EXISTING ROUTE BOISE, ID PROPOSED AIR CONNECTION Re-introduce EKO-RNO flights 2x daily with minimum revenue guarantee risk sharing program ELKO, NV SALT LAKE CITY, UT RENO, NV OAKLAND, CA MAMMOTH/YOSEMITE, CA

12 Nevada Air Service Development Fund Initiative Nevada Legislative Session 2015 Provide NNRDA with State Appropriation for 2015 $750,000 80% matching grant to provide Elko-Reno Flight Airline Minimum Revenue Guarantee. The additional $1,250,000 appropriation request for 2015/2016 is for small hub other airports in Nevada who are seeking to expand commercial air service. West Wendover, NV Ely, NV Reno, NV $187,500 20% Local matching funds including waiving landing fees, Terminal rents and fuel surcharges. Add 2 Round Trip Flights between Elko and Reno are proposed Mirror scaled down program first developed in Wyoming. Funding to come from Governor s Office of Economic Development Cost of roundtrip air fare has been negotiated at $ to induce demand EKO-RNO Flight breaks even after 16,000 passengers. Between there were an average of 17,887 passengers who flew between Elko and Reno

13 AS PROPOSED FLYING WILL MAKE BUSINESS TRAVEL BETWEEN RENO AND ELKO LESS EXPENSIVE There was 19,800 passengers who flew between Reno and Elko in (Last year of Air Service Ending April) Restoring Elko-Reno daily air service would save the Nevada economy $1,632,811/year or $ per person/roundtrip journey

14 Mark Gibbs, A.A.E. Airport Director, Elko Regional Airport Elko, Nevada Tel: