Economic Importance of Scheduled Air

Economic Importance of Scheduled Air
Service to Northeastern Nevada
March 5, 2015
Nevada Senate
BILL 125
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 (1998-2002). 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.
Elko Catchment Area
Catchment Population Map
Catchment Population Detail
BOI
Population
40,507
50 mile radius
Income
$77k
Population
56,902
Income
$70.5k
Boise, ID
191 miles
Reno, NV
230 miles
Salt Lake City, UT
200 miles
100 mile radius
100 Miles
EKO
SLC
50 Miles
RNO
Distance to closest airports
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
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
Intrastate Aviation is Economically Important to
Elko & Nevada
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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.
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

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 ElkoArea 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
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
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
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
AIR SERVICE TARGET MARKETS
LEGEND
EKO-SLC
EXISTING
ROUTE
BOISE, ID
ELKO, NV
Re-introduce EKO-RNO flights 2x daily
with minimum revenue guarantee risk
sharing program
RENO, NV
OAKLAND, CA
MAMMOTH/YOSEMITE, CA
PROPOSED
AIR
CONNECTION
SALT LAKE
CITY, UT
Nevada Air Service Development Fund Initiative
Nevada Legislative Session 2015

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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 $276.00 to induce demand
EKO-RNO Flight breaks even after 16,000 passengers. Between 1999-2001 there
were an average of 17,887 passengers who flew between Elko and Reno
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 2005-2006
(Last year of Air Service Ending April)
 Restoring Elko-Reno daily air service
would save the Nevada economy
$1,632,811/year or $166.30 per
person/roundtrip journey

Mark Gibbs, A.A.E.
Airport Director,
Elko Regional Airport
Elko, Nevada
[email protected]
Tel: 775-777-7192