Rethinking Air Travel

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Page  SEDCOR Enterprise Magazine T he commercial air service market is dynamic, highly competitive and ever-changing. It took an aggressive, community based effort to establish the Delta flights out of Salems McNary Field that began last June. It was hailed as one of the best start-up services in Deltas history based on initial occupancy levels. The flights offer one-stop connections through Salt Lake City to over 100 destinations.
As business markets become national and international in scale, airports are increasingly being viewed as catalysts for local economic development. Their ability to generate jobs and attract new business is being used in many locations as justification for airport construction and expansion. Keeping the Delta connection in Salem will be a critical part of the Mid- Willamette Valleys economic future.
The daily flights are provided by a 50-seat passenger jet, the Canadair Regional Jet 200. The planes are operated by SkyWest Airlines, one of the airlines Delta Connection regional carriers. Flights for Salt Lake City leave Salem in the morning and mid- day, with flights arriving in the afternoon and evening.
Having airline service in Salem provides citizens and businesses with a direct connection to worldwide transportation systems. It saves a tremendous amount of travel time which allows business people to fly to Salem directly without a long drive on congested freeways. It demonstrates and is evidence that our communities are open for business.
Flying out of the Salem Airport is now more competitive with Portland airfares. Ridership had dropped due to high airfares a few months after service began. A trip to Delta headquarters in Atlanta, by Salem Mayor Janet Taylor, Mike McLaran, executive director of the Salem Area Chamber of Commerce, and Ray Burstedt, president SEDCOR, resulted in lower, more competitive air fares. The visit also was instrumental in having a contact person put in place at Delta who is responsive to fare disparity.
Part of the agreement with Delta included a $500,000 bank of pre-paid travel dollars to be spent within the first year of air service. This funding is commonly referred to as the Airline Travel Bank (ATB). Over 100 companies and individuals supported the ATB to help jump start the service and make Delta successful in the new marketplace. The SLE Market has responded to the revised fare structure and is showing increased passenger loads. This is due in part by concentrated marketing to publicize and capitalize on the lower fares. Keeping the ridership level high is essential for continued service. Delta will be observing the passenger load factors very closely and if the numbers arent there, they could pull out. This is why for us all, FLY Salem is so important. If Salem continues to be a success, Delta could expand their service by adding another flight or destination hub. Ongoing discussion with other air carriers could also result in more flying options out of Salem.
Carriers see an opportunity in the Salem market. The significant growth in business here, the large airport catchment area, the new conference center, industrial park and our being the state capital are all contributing factors. Make Life Easier Time is money. Its an old cliche that we all know and understand, but to what extent do you really apply it in your business? Theres no limit to how much money you can make, how many customers you can have, or employees, or products or anything else. But there are only 24 hours a day, 7 days a week, 52 weeks a year. Time is a precious resource, because it is the only one that is truly scarce. Flying out of Salem on Delta is a time saver.
Consider this timeline when calculating whether to FLY Salem or take the long drive to Portland: Driving Save up to two hours each way of I-5 driving. If an accident or at rush hour add additional time. Add cost of 60 miles each way @ ~4.00 gallon gas. Not cheap. Parking Salem Parking just a few steps from the door, currently at no charge. PDX Daily parking fees run from $24/day in the parking garage, $14/day for long-term parking or $/day for economy. Add the time involved in getting from your car to the terminal. Another 30 minutes. Check-In: SALEM - Enjoy the luxury of a speedy check-in experience, and arrive only an hour before your flight. Quick check-in and fast security clearance are part of your FLY Salem experience as you move through the terminal with no more than 50 other passengers. No crowds! Rethinking Air Travel By K. Susan Appleby, SEDCOR Page  www.sedcor.com 5035854879 Salem Oregon Portland Medical MaPS Credit Union PDX - You must check in at least 1-1/2 hours early (two hours recommended). Hopefully that will leave you enough time to get a boarding pass, check bags, and get through security to your gate. Ever get stressed thinking the check-in lines just arent moving fast enough for you to make your flight? Return Trip: SALEM - Once you arrive back from your trip, luggage is ready to pick up almost immediately, and you are ready for your quick walk directly to your car and head home in a matter of minutes. PDX - After a long day of meetings and travel, head to the baggage claim and hope that your bags arrive. Wait for bus or van to take you to your car, and head south to Salem for your long drive home. Comments that are heard repeatedly about flying out of Salem Flying out of Salem can save me up to six hours of wasted travel time - time I can spend productively, not in traffic. Flying out of Salem will get me in Los Angeles the same time as if I had left Portland, and with no traffic!
There are plenty of passengers flying to keep full-loads on the Delta flights. Salems airport catchment area includes a population of over 566,635 people. This includes cities from Newport to Tillamook, south to Albany and east to Detroit.
The State of Oregon is in final negotiations with Delta on flights for state employees. This would eliminate some penalties and restrictions on tickets. Governor Kulongoski has requested State agencies to use Delta service out of Salem when appropriate and this contract will allow more state workers to benefit from local flights. The old saying time is money is expanded to driving time is money if you own a business. When you send a salesperson out of Oregon, or visit potential customers, there is a very tangible cost to that effort with employee time and fuel costs to drive to the airport. The cost has been reduced by the availability of Deltas commercial air service out of Salem. The time and fuel costs saved from avoiding the Portland airport and using Salem instead, can add up fast in our current pricing structure for wages and fuel.
In March, Mike McLaran, director of the Salem Area Chamber of Commerce, Ray Burstedt, president of SEDCOR, and I flew to Atlanta to meet with the top decision makers of Delta Air Lines. Fare structure and potential new routes direct to Los Angeles or Seattle were discussed. Armed with brochures on our region, a plan to offer for Deltas continued success, and gift bags containing local products, we had a very good conversation about the potential business growth for Delta in Salem. When you look at their customer base, we are just a little speck, so helping them to understand the dynamics of our job stability and future opportunities with a face to face meeting made an impression that gave us recognition as a place to operate.
Beyond the business use of the service (the most profitable for any airline), we have been very surprised by families and seniors who are enjoying the convenience of easy check-in, security clearance, and free parking. Seniors who had stopped traveling to see family due to the challenges of the Portland airport experience have returned to the skies. Families, especially with small children, cant believe how easy it is to leave from Salem.
This commercial air service is crucial to our role as the Capital City of the State, and to the continued economic success of our region. When we meet with new companies interested in bringing new jobs to the area, the fact that we have commercial air service has been a very positive selling point. Few companies with high paying jobs want to locate where it is difficult to reach their operation. But, more than that, local businesses need quick, financially feasible options to reach new customers and suppliers. Local access to commercial air service can make a difference.
It is a use or lose it service, as without a profitable operation, it is hard for any airline to justify locating in Salem. Your fares are being monitored twice weekly, and we have approval to directly contact the Delta manager in charge of adjusting the fares. It is not a perfect process yet, but all parties are putting in major efforts to make it work well for both airline and passengers. On your next trip be sure to put in SLE as your location for departure. The world is available to all of us - right out of Salem. Mayor Janet Taylor Choosing to FLY Salem is the Right Choice! Page 11 www.sedcor.com Economic Benefits So why is airline service important to Salem? Tim Hay, chairman, Salem Airport Advisory Commission stated, Besides the obvious convenience and time savings, Salem is now on the worldwide map in regard to airline connections. Any company wanting to come and bring business to Salem can now find us, with the possibility of bringing new industries and higher paying jobs. Tourism will also grow, with people flying directly into Salem to visit vineyards, the coast, and other attractions the area has to offer. The economic impact of the airport to the region is significant. Local businesses need the convenience of flying out of town for meetings. Having local air service creates confidence for companies thinking about relocating to this area. Though hard to estimate the dollar figure that air service brings to the areas economy, it is not difficult to realize how important it is for our economic development. Airport facility employment, directly related business activity, businesses attracted to the airport industrial area, and additional business for local hotel, convention facilities and other service industries all prosper. Having commercial air service in Salem is a core asset for our regions economic development efforts. Businesses interested in locating here look to these type of community assets when making decisions about whether to invest in our local economy. If we can continue to make our current service work, more opportunities will come our way, remarked Jason Brandt, director of Public Affairs, Salem Area Chamber of Commerce. One of the challenges with new air service is tangibly identifying the economic benefits. What we do know is local businesses have closed deals with business partners throughout the nation and have used the service out of Salem as a means to that end. Salems McNary Field is a valuable asset to the community. McNary Field, frequently referred to as the Salem Airport, is located approximately two miles southeast of downtown Salem. The airport is made up of two jet runways (one instrument : 5,11 by 150 and the other visual: 5,145 by 100) and supporting taxiways. Both runways have recently been resurfaced and grooved. The airport is owned and operated by the City of Salem and is organizationally structured under the Community Development Department. To be viable, the 751-acre airport relies on diversification and supports a wide variety of industrial, commercial and military activity. Alan Alexander, administrator Salem Airport stated, Salems commercial flights offer ease of access and personal treatment for individual, business and military customers. The new runway extension will provide additional safety measures for aircraft coming in and out of the airport and enhance airport capacity.
People and goods are transported daily through Deltas commercial air service and the expanding air freight services such as FedEx and UPS. Rental car agencies have seen an increase in business, as well as hotels which are opening their doors to new visitors to town.
The contribution of the airport to the local economy is significant. Opportunities for increased activity exist. Commercial air service has the potential to expand with more destinations and more carriers. The Salem Airport and Salems Urban Development Department are developing 70 acres at the south end of the Airport for corporate hangers, aviation and non-aviation related businesses. This area will be developed in three Phases. Phases 1 and 2 consist of 55 acres with access to taxiways and runways. Phase 1 will be devoted to corporate hangars and Phase II will be devoted to aviation related businesses. Phase III consists of 15 acres and is separated by Airway Drive. This area will not have access to taxiways or runways. Phase I development has already begun. Phases 2 and 3 will be developed in the future. Air Traffic Control Tower at McNary Field Page 12 SEDCOR Enterprise Magazine Coast To Coast And Face To Face Were across America and within reach.
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Reinsurance International Coverage Wells Fargo Insurance Services of Oregon, Inc. 3501 Fairview Industrial Dr SE Salem, OR 97302 503.585.7555 / 800.800.2341 Alan Alexander, and city staff have worked to prepare grants to the State of Oregons Connect Oregon 2 program for a runway expansion (safety) and terminal improvements. Two million dollars in Federal funds have been secured for these projects. Planned airport improvements include:
Terminal Expansion Total Project $1,500,000 Expanded lobby area Improved ticketing and baggage area Larger TSA baggage screening area Improved terminal access Expanded parking area Runway/Safety Area Extension - Total Project $3,200,000 Planned Runway extension to 6,00 ft. Upgrade approach lights On the growth of airport activity, Brent DeHart, president of Salem Aviation Fueling commented, The role of corporate aircraft in the U. S. is increasing, with 1,000 new jets expected to be sold in each of the next few years. The new corporate hangars and office park in the Fairview Industrial Urban Renewal area will be a strong asset in attracting aviation companies and companies with aviation departments. The infrastructure for creating large buildable hangar lots for jets with direct taxiway access was put in place by the Citys Urban Renewal Agency Board, and is a huge opportunity to recruit investment here. This type of space cannot be found in Portland, Hillsboro, or most other places. The community needs to support Deltas air service out of Salem. We need to reprogram ourselves from the habit of driving to Portland to catch a flight. Enter SLE instead of PDX when making reservations. Make Salem your choice for air travel. Business owners can use Salem air service for their travel needs and see how the airport can work to improve the effectiveness of their business travel. By choosing to fly from Salem and booking early, travelers can enjoy the greatest savings on air fares. FLY Salem! Short List of Airport Businesses and Services From the Flight Deck Restaurant to rental car agencies, publicly owned McNary Field is ready to serve the community. Following is a partial list of business which are located on airport property: Garmins expansion offers great views of the airport. Phot o cour t
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y Gar min A T Page 13 www.sedcor.com 503-949-6694 Nexus Business Group, LLC E-mail: rhoades51@comcast.net Six Sigma Improving your Bottom Line Twenty years after its inception, Six Sigma has saved an estimated $427 billion for Fortune 500 companies alone. Source: iSixSigma @ www.isixsigma.com and iSixSigma Magazine @ www.isixsigma-magazine.com Consultation Project Management Customized Training For Lean Office Manufacturing Government Service M A R Y L H U R S T U N I V E R S I T Y Academic excellence since 1893. www.marylhurst.edu MBA INFORMATION SESSION Tuesday, July 15th, 6:30 p.m., Flavia Hall Salon T H E M A RY L H U R S T M B A MBA Sedcor publishes: 6/6/08 due: 5/2/08 emailed: 5/2/08 4.75 x 4.75 Susan Appleby sappleby@sedcor.com 503.485.9803 The best thing about the Marylhurst MBA program is that students get to learn from high quality working professionals, from a variety of business disciplines. MARC MONETTI, MBA STUDENT CONTRACT MANAGER, INTEL To attend this free information session or to work with an adviser, please contact the MBA adviser at 503.675.3960 or 800.634.9982 x 3960. Garmin AT has been located on the east side of the airport for many years, leasing about 15 acres of land. Their recent manufacturing and engineering expansion will bring them to about 115,000 sq. ft. and includes a 33,000 sq. ft. aircraft hangar. The expansion has allowed them to add many high-pay engineering positions. Their airport location allows them to easily test and certify avionic equipment they have developed right from their facility. Call 503-391- 3247 or visit www.garmin.com.
Epic Aviation, LLC (Air BP) - www.airbp.com Graham Aviation Services - www.grahamaviation.com Oregon Army National Guard - www.mil.state.or.us
Salem Air Center - www.salemaircenter.com
Salem Aviation Fueling, with six employees greet visitors who arrive by air. Their services include fueling, flight line services, and hospitality arrangements all which brings money from outside the community for a positive economic impact. On a recent visit, President Clinton purchased $,000 of jet fuel. Call 503-364-4158 for information or visit www.salemaviation.biz. Sun Quest Executive Air Charter provides air charter services from the quickly expanding Salem airport through their NW division. Sun Quest services countless destinations throughout North America, with pickup available in Portland, Seattle or other locations. Their charter services are used for both business and pleasure travel. Recent upgrades to their Citation II, -passenger jet aircraft include a brand new interior and leather seating for their passengers comfort. One of their most popular destinations out of Salem is Palm Springs. It is possible to put separate groups of travelers together on one flight to save on expenses. Call Sun Quest at 503-364-7858 for more information or visit www.sunquestnw.com. Val Avionics is an avionics manufacturer, as well an authorized dealer and installer for Garmin, S-Tec, Honeywell and other navigational and communication electronics for use in aircraft. They also perform aircraft inspection, maintenance and interior work. Currently, Val Avionics manufactures Communications Transceivers, Integrated Navigation Systems and transmitters for Vaisalas Automated Weather Observation System. Call 503-370-9429 or visit www.valavionics.com.
Additional information on the Airports industrial customers and other business at the airport are available at www.flysalem.com.

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