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February 1, 2006
Room 302, State Capitol
Cheyenne, Wyoming
Senator Henry “Hank” Coe
Senator Grant Larson
Representative Floyd Esquibel
Representative Pete Illoway
Representative Tom Walsh
None
John Rivera, Senior Staff Attorney
Please refer to
Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.
Representative Illoway called the meeting to order at 9:30 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.
Representative Illoway stated that the Committee had not met for several years, so he called for a meeting to receive updates on matters relating to air transportation. Staff had advised Representative Illoway that membership had changed since the Committee last met and Senator Coe was the last reported chairman of the Committee. Staff suggested that the first order of business should probably be election of a chairman of the Committee.
Representative Walsh moved, seconded by Senator Coe, that Representative Illoway serve as chairman of the Committee. Senator Coe moved that the motion be approved unanimously. After brief discussion, the motion to select Representative Illoway as chairman of the Committee unanimously was adopted.
Chairman Illoway then advised that the Committee will request funding from Management Council to meet next interim to consider air transportation related issues. He expressed appreciation to the Aeronautics Division for allowing use of the state airplane to facilitate Committee members' attendance at the meeting.
Ms. Shelly Reams, Aeronautics Division Administrator, introduced Ms. Amber Schlabs, who is the new Aviation Business and Marketing Manager, and Jerry DeLano, Chairman of the Aeronautics Commission. She distributed Appendix 3, a report on the Air Service Enhancement Program, dated November 25, 2005. She stated the report had been previously distributed to the Joint Minerals, Business and Economic Development Interim Committee, but should have also been distributed to this Committee. She provided a brief history of the program which began under the Wyoming Business Council and was transferred to the Aeronautics Division in 2004. The report described various loan guarantees made by the program.
Ms. Schlabs summarized the agreements between the Division and six airports in the state. The program has resulted in increased enplanements at those airports. Ms. Reams added that the Natrona County International Airport added a third carrier and all three carriers showed increased enplanements. Appendix 4 provided a spreadsheet showing the projects approved, funds encumbered, matching funds required, funds paid out and funds reallocated per project under the program. $3,895,792.00 has been awarded, with $2,408,939.83 actually paid out and $419,834.17 reallocated. The $6 million received by the program has leveraged another $1 million in federal funds. The Committee suggested that the Division keep track of the figures to demonstrate the value of the program to the state.
Ms. Reams advised that the Joint Appropriations Interim Committee recently approved annual funding of $3 million for the program. Senator Larson cautioned that the funding recommendation was for the biennium only and future funding will depend on the status of state revenues, so planning by the Division should take into account potential changes in future funding for the program.
With respect to future plans, Ms. Reams said carriers are reluctant to have their plans revealed for competitive reasons, but Northwest Airlines is considering expanding into the Cheyenne market and United Airlines is considering upgrading its equipment in the state.
Mr. DeLano advised the Aeronautics Commission meets monthly by telephone conference call and quarterly on a face-to-face basis. The Commission is currently considering future plans for the program.
Mr. Bill Urbigkit, Riverton Regional Airport Manager, stated his airport was in danger of losing federal funding due to decreased enplanements, but the program helped increase enplanements above the 10,000 annual level necessary to continue receiving the federal funds. Mr. Jay Lundall, Gillette/Campbell County Airport Manager, stated his airport is the only airport in the state that doesn't qualify for essential air services funding and was in danger of losing all air services at the airport, but assistance from the air services enhancement program made it possible to continue to provide air services in Campbell County.
Ms. Schlabs stated that the Division had received $800,000.00 in federal funds, which were matched by $200,000.00 in state funds for this program to enhance the services of small airports. A committee has been formed that is prepared to begin reviewing the requests for proposals (RFPs) that have yet to be received under the program. The state will have until January, 2007 to encumber the federal funds. Mr. DeLano said the committee has an aggressive timetable to review the RFPs and make decisions with respect to granting the funds available under the program.
Ms. Reams added that the federal program has been funded for four years, but the President's budget proposes to delete any further funding for the program. The Division is pushing hard to make the best use of the funding it has received. The Division is working with the Travel and Tourism Board on a marketing program for the state to increase tourism and in-bound air travel to the state.
Senator Coe recommended that there is a need to focus on, and track, air fares to the state's airports, which have to be part of a competitive package of air service. Ms. Reams replied that Ms. Schlabs monitors fares and contacts carriers when connecting fares appear excessive.
Ms. Reams said Wyoming has no airports that act as hubs, but the Jackson Airport has more boardings and carriers than the rest of the state. Most other airports are served primarily by either United Airlines, Frontier Airlines or their affiliates.
Mr. Lloyd Baker, a Star Valley appraiser, asked why the Afton airport isn't getting more air services. Ms. Reams explained that the Afton Airport is authorized as a general aviation airport, but is not allowed by federal regulation to function as a commercial airport. As a general aviation airport, Afton can accept cargo and charter flights only. The airports in Afton, Pinedale and Dubois are often seen as resources to deal with overflows that can occur at the commercial airports. The Department of Transportation (WDOT) has put millions of dollars into those airports, but some residents near the airports don't want more government funds for the airports because with the government funds comes government regulations that the residents don't want.
Ms. Schlabs stated that the Aeronautics Commission had approved an air show program at six airports in the state and the program may grow because of the success of the air shows. Ms. Reams said that the $10 million appropriated last year at 5% interest has generated significant interest. About $3 million has been allocated thus far. The elimination of the sales and use tax exemption for aircraft equipment last year has hampered efforts to attract some aviation maintenance businesses to the state, because all surrounding states do have an exemption for aviation equipment. Ms. Reams advised that Representative Edwards has agreed to sponsor legislation to enhance training opportunities in the state for pilots and mechanics. She encouraged Committee members to support Representative Edwards' bill.
Representative Walsh would like the Committee to travel around the state next interim to gather ideas from local officials who have made efforts in the past to improve air services in their communities. Senator Coe suggested that it is important to focus on the operational expenses of airports because the airports do not pay for themselves.
Ms. Reams introduced Mr. Tom Gould, Chief Pilot and Manager of Flight Operations, Mr. Brett Martin, Assistant Manager of Flight Operations and Ms. Jamie Conrad, Aviation Business Coordinator and Dispatcher. She distributed Appendix 5, consisting of the performance and cost comparisons of the airplanes previously owned by WDOT and the two airplanes recently purchased. The current airplanes' increased speed and other performance characteristics, plus longer maintenance intervals provide increased efficiencies. The number of flight hours for the airplanes has increased from approximately 350 hours to 425 hours. Given the airplanes' increased speeds, that translates to a significant number of additional miles flown. Despite the increased usage, the Division is not able to fulfill all flight requests. The Division does not have the capital or operational funds to increase the number of flights or the number of airplanes available for state travel.
WDOT is the largest user of the state airplanes (40%), with the Governor's Office and the State Parole Board the next largest users. Mr. John Cox, WDOT Director, said the demand is greater than the availability of the state airplanes to fly state agency employees around the state. To fill the demand would require the addition of two more airplanes, without taking into consideration the suggestion for potential legislative use of the state airplanes. Director Cox advised that the state airplanes allow WDOT to hire fewer geologists, because the geologists can fly out of Cheyenne to perform their on-site studies throughout the state, as needed.
Senator Larson asked Ms. Reams to develop data with respect to a comparison of the costs and benefits for state employees flying to meetings versus driving to meetings around the state. The Committee also asked Director Cox to provide information with respect to what capital and operational funding would be required to meet the demand for flights by state agency personnel and, potentially, for usage by legislators to avoid extensive driving time for short meetings. Several members of the Committee could have lost three days of their time just to attend this short meeting, but the state airplane reduced the travel and meeting time to a single day in some instances. The study should include any efficiencies that could be derived from eliminating driving time that frequently occurs on long trips throughout the state.
Ms. Conrad distributed Appendix 6, the Aeronautics Division's Procedures Handbook for Flight Operations. She explained that procedures for scheduling state agency flights are available on the Division's website. If legislators want to fly to meetings and want priority in scheduling, the Division would have to amend its procedures, because only the Governor's Office has "bumping privileges" currently on the state airplanes.
Ms. Reams provided an update of current efforts to build a new hangar at the Cheyenne Airport and future plans for the site, including office space for the Division.
There being no further business, Chairman Illoway adjourned the meeting at 12:35 p.m.
Respectfully submitted,
Representative Pete Illoway, Chairman