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07/10/2012 03 Airport Service Expansion RFP Presentation r y BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3 For Meeting of: July 10, 2012 ITEM TITLE: Airport Service Expansion RFP -- Presentation by Tony O'Rourke SUBMITTED BY: CONTACT PERSON /TELEPHONE: SUMMARY EXPLANATION: Resolution Ordinance Other (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Source: Phone: APPROVED FOR City Manager SUBMITTAL: y ana g STAFF RECOMMENDATION: BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ Air service expansion MEMORANDUM To: Honorable Mayor and Members of the Yakima City Council From: Tony O'Rourke, City.Manager " Date: July 5, 2012 RE: Air service consultant RFP In the interest of expanding air service to the Yakima Airport, I would recommend the City and County jointly issue an RFP to solicit firms that can provide strategic business development growth at the airport, including expanded air service, development of other . related air service business, cooperative funding, creating public - private sector alliances, and coordinate marketing and public relations plans. Specific tasks to be achieved would include: Air Service and Business Development • Maintain and expand air service. • Negotiate air service contracts that may include minimum revenue guarantee (MRG) with financial caps, flat rate contracts, and /or marketing supported agreement with the airlines. • Develop a strategy for airline selection and type of aircraft. • Develop airline reports that focus on load factors, revenue /yield management, retail tickets, and the origination and destination statistics. • Investigate charter services and low cost airlines opportunities. • Ongoing scheduling of community meeting of supporters of the air service program. • Develop cooperative marketing programs with the airlines to include but not limited to comp tickets, in -kind marketing programs, special fares, and public relations opportunities. Cooperative Fundinq /Business Alliances • Investigate and assist in cooperative funding from the government or related air transportation departments for expanded air service. • Create business alliances with private companies, governments, and non- profit organizations. • Secure adequate community pledge funding for the expanded air service program. • Aid in the development of a long -term, county wide funding vehicle. Marketing Services • Coordinate a marketing plan for negotiated air program to include: o Investigate and coordinate alliance opportunities with major lodging, property management companies, chamber of commerce, tourism boards, real estate companies, business organizations, and airlines. o Four wall marketing plan in the expanded air service communities and region. • Aid in coordination of the marketing plan with the community, local businesses, lodging organizations, schools, business organizations, transportation companies, and the chamber of commerce. • Incorporate the Yakima air service message into business parent marketing materials. • Develop a community /committee communication system. • Coordinate with the Yakima Valley Visitors & Convention Bureau for the management and implementation of the marketing plan. As airlines continue to reduce their routes and markets, it is imperative that Yakima optimize its ability to retain and expand its commercial air service. The use of a professional air service consultant is critical in achieving air service retention and growth due to the working relations these firms have with the airlines, and the success they have achieved in getting new air service despite an increasing competitive airline industry and air service market.