Airport Report on Regional Air Service Efforts & UAV Test Site Designation. January 21, 2015 Elko County Commission

Transcription

1 Airport Report on Regional Air Service Efforts & UAV Test Site Designation January 21, 2015 Elko County Commission

2 PRESENTATION ADDRESSING 1. Small Airport s without EAS Are at a High Risk to Lose Air Service in the Near Future.State of Nevada s assistance is essential to long term commercial service viability at Elko s Airport 2. Elko County is well positioned to take advantage of UAS developments by becoming a UAS Test Site with the State of Nevada

3 Elko s Market is Most Economical Operating Turboprop Aircraft Seats. Source: Regional Airline Association and DIIO Aircraft Database But they are disappearing and not being replaced in the market Source: 2013 U.S. Regional Airline Association Annual Report

4 Historical FAA Forecast NEW REGIONAL JETS ON ORDER FOR DELIVERY ARE SEATS. CURRENTLY THE 50 SEAT REGIONAL JETS ARE BEING PHASED OUT OF U.S. FLEET BY ALL MAJOR U.S. AIRLINES Source: Federal Aviation Administration Aerospace Forecasts Table 27

5 Regional Airports are Losing Traffic Nationwide Short Haul Traffic Down More than 50% since 2010

6 Elko is Isolated Geographically Making Access to Air Service Vital The average roundtrip SLC drive costs $255 The average EKO roundtrip airfare costs $448 Based on actual recorded flight traffic between Reno and Elko in the cost savings of flying versus driving to Reno for Nevadans in 2013 was $1,227,769/per year RNO 4h 20m BOI 4h 25m SLC 3h 13m Mileage IRS Rate One Way Roundtrip Airport O/W 2013 Cost Cost Salt Lake City International (SLC) 226 $0.565 $ $ Boise Airport (BOI) 292 $0.565 $ $ Las Vegas McCarran International Airport (LAS) 437 $0.565 $ $ Reno-Tahoe International Airport (RNO) 290 $0.565 $ $ LAS 6h 41m

7 NORTHEASTERN NEVADA Abundance of guided outdoor recreational activities New 30,000 SF Elko Convention & Visitors Authority addition opening Fall 2015 with capacity to seat 1,200 people New hotels opening every year Growing economy spurred by oil/gas industry and gold mining Epicenter of the Western Experience

8 Elko is not Connected to Nevada s Airports Air Service Key to Marketing Northeastern Nevada Lost opportunities to attract small market conventions and visitors to the Cowboy Territory Unable to create establish travel industry familiarization tours due lack of convenient access Unable to connect visitors to amenities in the adventure travel segment NCOT tour packages to this region are limited by long driving distances

9 AIR SERVICE TARGET MARKETS 1.RNO 2.LAS 3.DEN Re-introduce EKO-RNO flights 2x daily with minimum revenue guarantee risk sharing program OAKLAND, CA BOISE, ID ELKO, NV RENO, NV MAMMOTH/YOSEMITE, CA LEGEND EKO-SLC EXISTING ROUTE PROPOSED AIR CONNECTION SALT LAKE CITY, UT

10 Mauiva Airlines Provides the Right Aircraft and the Right Schedule for Elko RISK PER MONTH RISK/PROFIT PER YEAR ONE WAY COST CALCULATIONS Fare $ % LF $502,320 $120,065 $1,440,780 65% LF $326,508 ($55,747) ($668,964) Fare $ % LF $407,680 $25,425 $305,100 65% LF $264,992 ($117,263) ($1,407,156) MORING AND AFTERNOON CONNECTION TO RENO, NV UTILIZING EMB SEAT TURBO-PROP

11 Elko s Future Air Service Access is Tied to MRG

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. $187,500 20% Local matching funds including waiving landing fees, and fuel surcharge. Add 2 Round Trip Weekday Flights between Elko and Reno. If we cannot find an suitable airline agreement the second option is a daily flight to Denver negotiating with SkyWest to utilize incoming regional jet aircraft into the Elko market. Mirror scaled down program first developed in Wyoming. Funding to come from Governor s Office of Economic Development

13 UAVs in Elko County Elko is a regional base for a wide variety of industries suited for UAS businesses. The economy of Northeastern Nevada is primarily resource dependent on collecting data using traditional manned surveying and remote sensing technology platforms. Some of Northeastern Nevada s current and potential industries that would benefit from UAS technology platforms include: Land Management: forestry, animal habitat study, hydrology, habitat conservation, cartography Mineral Extraction: stockpile tracking and measurements, environmental compliance, spectroscopy of potential and current mineral deposits for exploration Oil and Natural Gas: environmental compliance, spectroscopy of potential reserves Agriculture: ranch/range management, water usage and conservation, environmental compliance, mapping Emergency Services: wildfire spotting and identification, search and rescue, incident response planning

14

15 Elko UAV Test Site Designation Elko Regional Airport & NNRDA in process of obtaining Contract with NIAS to designate Elko County as a UAV test site. Contract allows NIAS to market this area for UAV testing and future commercial operations. Airport will spearhead range testing services including items like food catering, generators, porta-potty facilities, and any special facility requests All UAV testing in Elko County will have NIAS Range Safety Officer present to ensure safety for Nevada residents. NNRDA and airport will promote UAV testing in Elko County to prospective industry through UAV conventions

16 Elko County Has an Important Role to Play in UAV Development SnoBowl Railport Test Range Elko, Nevada 2x UAV Range Test Sites on property owned by Elko County 4 Square Mile Range Test Site Required for flight operations Needs to have a minimum 1,500 ft landing/take off area (unimproved road, gravel site, or other suitable flat area Site will launch UAV vehicles 55 lbs or less Vehicle access by road required

17 UAV Next Steps Certificates of Waiver or Authorization (COA) U.S.) National Airspace System (NAS) for the Aviation Safety (AVS) Flight Standards Service (AFS), UAS Integration Office (AFS-80) will be obtained Cost of UAV services is estimated at $ with 50% shared between the City of Elko and NNRDA The County is being requested to provide the Annual Insurance UAV Rider for County Land used as UAV Range Test Site.

18 SOURCE: 2014 AUVSI SALARY STUDY

19 2013 JPDO-Booz Allen Study predicts UAV annual savings of $159 million for aerial applications by 2035 and $186 million in crop savings AUVSI Study $13.6 billion economic impact and $82.1 billion impact between for UAV market in USA. More than 130 companies have filed Petitions for Exemption based on Section 333* for Nevada Test Sites Industries include: Precision agriculture Geospatial mapping Flare stack monitoring Shipping/delivery Aerial film and photography Real estate

20 Mark Gibbs, A.A.E. Airport Director, Elko Regional Airport Elko, Nevada Tel: Pam Borda Executive Director Northeaster Nevada Regional Development Authority Elko, Nevada Tel: