Destination San Francisco Bay Area Receives $750,000 Grant

Pangborn Memorial Airport is proud to announce it has been awarded a Federal Small Community Air Service Development (SCASD) Grant of $750,000 to support its effort to land nonstop service to the San Francisco Bay Area.

The Department of Transportation awarded the grant to match the incredible community support for the new service. So far, more than 90 pledgers have committed more than $400,000 in matching funds. That local funding was a key reason the Department of Transportation joined the effort with its award.

“The broad based regional support for this new service was critical to securing this grant and bodes well for successful service to San Francisco, enhancing the economy and quality of life in central Washington,” stated Rory Turner, President of the Pangborn Memorial Airport Governing Board and the Port of Chelan County Commission.

“This Grant award validates our effort, and strategy, in the recruitment of additional airline service for all of Central Washington,” said Trent Moyers, Director of Pangborn Memorial Airport. “Now the hard work begins, as we make the business case to prospective airlines, working to convince them Wenatchee is the best place for their limited aircraft.”

Pangborn received strong support from Federal elected officials including Senators Cantwell and Murray and Congressmen Reichert and Newhouse. The Air Service Investment Program supported by this grant award is designed to share the financial risk of launching new service with the airline. The funding also demonstrates the region’s intent to use the new service. An airline will invest about $8 million to start daily jet service over a two-year period. That risk is mitigated by the grant and the contributions from businesses, organizations and individuals in four counties in north central Washington, as well as from several companies in California.

For more information, please contact: Trent Moyers, Airport Director (509) 884-2494, ext. 6 or Craig Larsen, Business Development Director for the Port of Chelan County (509) 663-5159.

To view the August 2018 presentation click here

Fly Wenatchee | Destination San Francisco from Voortex Productions on Vimeo.

FAQ’S

Why a San Francisco Bay Area Flight? There are many reasons why the San Francisco Bay area is the preferred choice. Quantitative research shows us there is a growing demand for flights to the Bay Area in our community. Our most popular destinations are on the West Coast/Mountain West. The Bay Area is a great hub for connectivity and a popular market for business travel, offering more flexibility of travel times and destinations than Seattle. For example, San Francisco Airport offers more direct flights to other popular destinations than Seattle: Seattle has seven non-stop flights to Washington, D.C. daily; San Francisco has 17. Seattle has seven non-stop flights to Chicago daily; San Francisco has 19. Internationally, Seattle has six direct destinations in Asia; San Francisco has 25. Seattle has five direct destinations in Europe; San Francisco has 14.

How do I pledge support for the San Francisco Bay Area Flight? There are a number of ways to show your support for this air service.

1. Financial – Sign a Pledge form for an amount of money to be added to the Air Service Investment Fund – Click for the Pledge Form

2. Adopt a Resolution with your organizations Board – Click for Sample Resolution

3. Send a Letter of Support for the Program to craig@portofchelancounty.com – Example for Letter of Support

What are the sources of funds for the Air Service Investment Program? The funding will be a mix of local support, federal grant money, and airline investment. The airline invests up to $8,000,000 over the two-year startup period. The federal government contributes up to $750,000 in cash funding. The community contributes $400,000 or more.

Are we guaranteeing the airline a profit margin? No. This is a guarantee of enough revenue to cover expenses (not a profit). The funds will only be drawn upon if the ticket sales do not cover expenses during a two year startup phase. If service is successful, contributions will be returned to community investors at the end of the two year period. The interested airline will state its required revenue per segment. This amount will be audited and negotiated by a third party consultant specifically trained for the task.
Did this type of project work in other communities? Yes. Since 2001 airlines in North America have launched more than 100 new routes with community/federal grant investment program. Some communities have used little to none of their financial contributions to help support the start of new air service. Here are two examples: In 2011, Spokane negotiated with Delta Airlines for air service to Los Angeles. Daily service was successful, the investment program has ended, and service continues. San Luis Obispo recently negotiated with Alaska Airlines for air service to Seattle. Service began in April 2017.

When will service to the San Francisco Bay area be available? Service launch is targeted for 2019.

Why should we add another destination to Pangborn’s air service? The airport is an important economic driver in our community, which is the largest metropolitan area in Washington State not serviced by an interstate highway. Greater flexibility in flight offerings promotes current businesses and attracts new business. We hear again and again that quality of life is the single biggest reason people live here. This flight is a direct enhancement to our community’s quality of life, offering greater flexibility for travel times and locations and also improving weather-related cancellations. In short, it’s good for business, people, and growth.

Who do I write the check to? The Port of Chelan County, as manager of Air Service at Pangborn Memorial Airport is managing the program and taking Pledges (Click for the Pledge Form).

What contributions will the Port of Chelan County make to the project? The Port of Chelan County has pledged $50,000 toward the project. In addition, the Port of Chelan County is leading the Air Service Investment Program, recruiting the new airline service, and taking on the lead financial responsibility of carrying the project forward. Pangborn Airport and the Port of Chelan County are also planning and will pay for infrastructure improvements to accommodate the new airline service.