_.~ <br />_# Section 1 <br />Introduction <br />.~ <br />'~`~ A primary objective of airport management at Eugene Airport is to develop and implement effective <br />programs aimed at enhancing the quality and mix of commercial air service to the region. A key element <br />of this effort is the generation and development of credible data that can be used to evaluate current air <br />,~ service levels and identify opportunities for improvement. The Passenger Demand Analysis provides <br />objective information on air travel in the region that cannot be accessed from other sources. <br />As the domestic airline industry continues to undergo considerable change, it is prudent for airport <br />~~ management and community leaders to understand the local air travel market. Airlines make service <br />_~ decisions based on two primary factors: return on investment and company strategy. However, it is also <br />true that air carriers spend very little time analyzing smaller markets, and specific information on smaller <br />communities is limited. Passenger Demand Analysis information provides objective background data for <br />_~ evaluating and analyzing service gaps and opportunities. Equally important, airline staff members are <br />receptive to proposals that include Passenger Demand Analysis data as one element of the overall <br />3 analysis of market potential. <br />~~ <br />`~ Objectives <br />~ The primary objective of the Passenger Demand Analysis is to develop information on the travel patterns <br />"'~ of local airline passengers that reside in the geographic area served by Eugene Airport. This analysis <br />~ examines: <br />• The originating airport used by air travelers. <br />• Diversion of airline passenger traffic to Portland International Airport. <br />• Passenger traffic and related destinations. <br />• Airlines used by local air travelers. <br />• Average airfares by originating/destination airport. <br />• An estimate of the size of the true market for airline passengers in the region. <br />Airline booking information was collected for the calendar year 2004. A total of 70,869 airline bookings <br />were tabulated and included in the Passenger Demand Analysis. Keep in mind that the data used is a <br />sample of airline bookings, and NOT all bookings within the one-year period. <br />Methodology <br />k~ This analysis combines Marketing Information Data Tape (MIDT) booking information from the Global <br />Distribution Systems (GDS), which is used by travel agencies, and U.S. Department of Transportation <br />"'~ (DOT) airline data to provide a comprehensive overview of the air travel market in this region. The <br />r information collected includes originating airports, destinations, and airlines used. The data is analyzed <br />,, <br />to accomplish the objectives of the Passenger Demand Analysis. <br />,,. <br />~; EUGENF, <br />AIRPORT Page 1 <br />