_..~ Section 8 <br />Situation Analysis <br />The retention improvement in domestic markets, the reduction in average fare spreads between Eugene <br />Airport and Portland International Airport, and the introduction of Delta Air Lines' nonstop Salt Lake City <br />service were all significant gains for Eugene Airport's catchment area. Further improvement can be <br />~_~ expected going forward on the basis of a full year of Salt Lake City nonstop service and Delta Air Lines' <br />.-~ addition of a third round trip in the market. The outlook for short term service improvement opportunities <br />at Eugene Airport is limited but not without potential. The largest true market without nonstop or direct <br />u_~ service is San Diego and, with a market size of 49 passengers per day. Service improvement efforts <br />should be focused on getting regional jet equipment reinstated on Horizon Air's Los Angeles service with <br />=~! at least one nonstop round trip. Continued use of turboprop aircraft in the market, even with lower costs, <br />,~ ~ may make it difficult to sustain this service. Other needed service improvements are a third round trip in <br />' the Denver and Phoenix markets. Although the current late night flight to Las Vegas, Eugene's number <br />four market, has done well, schedule and capacity improvements are warranted. To achieve the low <br />fares dictated by Las Vegas passengers may require atrack-carrier or charter operator. With an 82.1 <br />=~ percent load factor (December 2003 through November 2004), capacity increases in the San Francisco <br />-_~ market can no longer be attained through frequency additions. Efforts may need to be initiated to <br />upgrade some flights to mainline jet equipment with the attendant risk of possible frequency reductions. <br /> <br /> <br /> <br />~"-~ ~ EtiGENE <br />AIRPORT Page 32 <br />