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HomeMy WebLinkAbout07/09/2013 02 Four Point Yakima Air Service Development PlanBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: 7/9/2013 ITEM TITLE: Four Point Yakima Air Service Development Plan -- Presentation by Airplanners SUBMITTED BY: Sean Hawkins, Economic Development Manager SUMMARY EXPLANATION: The City of Yakima is undertaking four elements to improve the Yakima Air Terminal's commercial flight market performance. The City is working in close association with our consultants, Airplanners, to achieve this goal. The first priority is to increase the overall load factors for the three daily Alaska Airlines flights between YKM and SEA. The next priority is develop additional air service options which could include a new YKM to SEA option, a YKM to PDX option or a direct flight to the Las Vegas area on another airline. Resolution: Other (Specify): Contract: Start Date: Item Budgeted: Funding Source /Fiscal Impact: Strategic Priority: Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: RECOMMENDATION: Ordinance: Contract Term: End Date: Amount: NA 4g:::::jpj&F City Manager ATTACHMENTS: Name: Description: F-I Memorandum - Airport Action Plan June 18 2013.docx Airport Action Plan memo Memorandum To: City Manager and Yakima City Council From: Sean Hawkins, Economic Development Manager Date: July 1, 2013 Subject: Three Point Air Service Marketing Action Plan The City of Yakima is working with our consultants, Airplanners, to develop a three point approach to increasing two pieces of our local air service. The first piece is the overall load factors for the three daily Alaska airlines service between YKM and SEA. The second is the development of a fourth daily Alaska flight to SEA or PDX to local travelers more flying options. This memo high lights our three key approaches: Alaska Airlines Position Alaska's VP of Marketing has expressed cooperation in coordinating a marketing program within Yakima County and an inbound visitor campaign to the region. Alaska has agreed to perform the role of an ad agency and production firm at no cost to the City of Yakima. They will also offer special fares during certain periods, passenger data and insight on how the marketing program is effecting load factors. The City of Yakima will have the final review of ad messages. Alaska is thrilled that the Yakima community is willing to pursue a partnership through a marketing campaign to insure better load factors and in turn improved service. Apply for Small Community Air Service Development Program (SCASDP) The City is working with Airplanners to apply for a $400,000 SCASDP grant. The grant application is due July 26th. SCASDP grants require a 20% match of local non - airport funds and the grant funds can be used over the course of three years. Funding can be used to help expand additional flights by Alaska Airlines to the SEA or PDX market, consultant services, marketing programs, lower fares or revenue guarantees. If awarded, the City of Yakima expects to use the majority of the award to develop a two year Yakima County based marketing program to increase the overall load factors for YKM to SEA service and aid in the expansion of a fourth daily flight from YKM to SEA or YKM to PDX. There is no minimum or maximum award for the SCASDP. However, in the past five years, three Washington cities have been awarded funds. Port Angeles was awarded $360,000 in 2009, Spokane was awarded $950,000 in 2011 and Walla Walla was awarded $250,000 in 2012. FLY YKM Air Alliance The City of Yakima will work with the private sector business community to create the FLY YKM Air Alliance. The Alliance will be charged with one single task — promote Yakima's air service to Yakima County residents. The FLY YKM Air Alliance will apply for 501c6 status with the IRS and will be composed of members of the regional business and civic community. FLY YKM will raise money on an annual basis to support air service in Yakima and work closely with Alaska on win -win situation for both parties.