-'. <br />'_`~ <br />.~ <br />`J <br />'~_~ <br />~~ <br />Regional distribution of travel <br />In the survey, 35.6 percent of the air travelers <br />were destined for cities in the West region and <br />9.9 percent traveled to the Southwest region. Of <br />the travelers from the catchment area, 14.4 <br />percent traveled to international destinations. <br />For the top 10 destinations, six are located in the <br />West region, two in the Northwest region, one in <br />the Great Lakes region, and one in the <br />Southeast region. Of those air travelers with an <br />international itinerary, 31.9 percent were <br />destined for Europe. Compared to the prior year <br />analysis, more survey respondents traveled <br />internationally and the Southeast region <br />replaced the Northwest region as the second <br />most traveled domestic region. <br />Airlines used by air travelers <br />Overall, United Airlines garnered 44.2 percent of <br />the catchment area market share. Alaska <br />Airlines, including Horizon Air, captured 22.4 <br />percent of the travel in the total survey with <br />America West Airlines rounding out the top three <br />with 9.2 percent of the market. At Eugene <br />Airport, United Airlines captured 58.9 percent of <br />survey travelers while Horizon Air garnered 21.8 <br />percent and America West Airlines captured <br />12.0 percent. This represents a 3.3 point gain <br />for United Airlines, 4.8 point loss for Horizon Air, <br />and a 3.4 point loss for America West Airlines <br />with Delta Air Lines' new service, inaugurated <br />May 1, 2004, garnering a 4.9 percent market <br />share. <br />Airfares <br />Based on U.S. DOT airline data, the one-way <br />average domestic airfare for Eugene Airport's <br />passengers was $168.16. Portland International <br />Airport's average domestic fare was lower at <br />$140.24. To the number one destination, Los <br />Angeles, Eugene Airport's one-way average <br />domestic airfare was $9.35 higher than Portland <br />International Airport. <br />f. ~:ucF~vF <br />AIRPORT <br />Section 2 <br />Executive summary <br />Average fare trend <br />Based on U.S. DOT airline data, Eugene <br />Airport's average one-way domestic fares have <br />remained consistently higher than Portland <br />International Airport's average one-way <br />domestic fares over the 10-year period, calendar <br />year 1995 through nine months ended <br />September 30, 2004. Overall, Eugene Airport's <br />and Portland International Airport's average one- <br />way domestic fares for the 10-year period have <br />increased at compounded annual rates of 0.1 <br />percent. <br />Air service opportunities <br />Eugene Airport's true market is estimated at <br />647,972 annual enplanements (see Section 7, <br />True market estimate). Given the size of the <br />catchment area and the service available at <br />Portland International Airport, it is not <br />reasonable to expect that all of these <br />passengers would use the local airport. <br />However, the total air travel market served is <br />capable of supporting increased use of Eugene <br />Airport with targeted air service improvements <br />and/or marketing efforts. <br />At this time, service improvement opportunities <br />at Eugene Airport are limited. The most <br />important service improvement needed is <br />reinstatement of nonstop service with regional <br />jet equipment to Los Angeles. Other needed <br />service improvements are a third round trip in <br />the Denver and Phoenix markets. It is clear that <br />the Las Vegas market can support schedule and <br />capacity improvements. The fare sensitive <br />nature of this market may require service by a <br />track-carrier or charter operator that offers <br />hyper-low airfares to attract customers. <br />Opportunities should be sought for nonstop <br />service to San Diego. Also desirable, is the <br />development of a strategy to improve capacity to <br />San Francisco with larger aircraft without <br />reductions in schedule frequency. <br />Page 4 <br />