Committee Meeting Information

June 27, 2006

Jackson Hole Airport Conference Room

Jackson, Wyoming

 

Committee Members Present

Senator Henry “Hank” Coe

Senator Grant Larson

Representative Floyd Esquibel

Representative Pete Illoway

Representative Tom Walsh

 

Legislative Service Office Staff

John H. Rivera, Senior Staff Attorney

 

Others Present at Meeting

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.

 

Call To Order

Chairman 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.

 

Air Services Enhancement Program

Ms. Shelly Reams, Administrator, Aeronautics Division, distributed the following:

 

Ms. Reams described the SABRE database program that can provide data on the 35,000 enplanements that occurred last year in Wyoming.  She advised that Ms. Amber Schlabs was not able to be present at the meeting to testify because she was honored for her efforts by a national program that allowed her to attend a training program in Portland, Oregon that is occurring this week.

 

Senator Larson requested that the information in Appendix 5 be provided in a format that allows easy comparison of the previous year's total enplanements, year-to-date (YTD), for those months that are provided in the current year's YTD figures, rather than providing the YTD totals for all 12 months of the previous year and the YTD totals for those months of the current year for which monthly totals are available.

 

Mr. Jerry DeLano, Chairman, Wyoming Aeronautics Commission (the Commission),  reiterated that the SABRE database provides a wealth of data and Ms. Schlabs is doing a great job in providing that data in a meaningful format.  The Cody and the Casper Airports really appreciate the information they are receiving.  He advised the new application guidelines in Appendix 4 will govern applications received for Air Service Enhancement Program grants.

 

Senator Coe discussed the increased enplanements out of the Cody Airport this Summer.  The Airport did well last Winter also.

 

Ms. Reams discussed the Air Service Enhancement Program funding.  The funds do not revert to the general fund at the end of the biennium.  The Department of Transportation is still providing some additional funding to allow Ms. Reams to send people to relevant conferences, in addition to the funding the Department provided for initial set-up of the program.  Senator Larson stated that the administrative appropriation for the program will revert, unlike the grant monies, so it is important to remember that fact and to monitor what administrative appropriations may be necessary to reauthorize in subsequent biennia.  Chairman Illoway encouraged Ms. Reams to inform the Committee if more administrative funding was necessary to run the program.

 

Mr. Mike Gierau, Jackson Hole Airport Board, advised that Jackson Hole Airport is gathering enplanement data through the use of a passenger survey, Appendix 10, which is provided to passengers at the Jackson Hole Airport.  The airport received $124 thousand in grant funding last year from the Commission and another $250 thousand this year, of which about one-half of this year's funding will be returned because the project has been completed and the remaining funds are no longer needed.

 

Federal Grant¾Statewide Marketing for Small Community Air Services Program

Mr. DeLano explained that only 40 grants were available from the U.S. Secretary of Transportation under the Small Community Air Service Development Program described in Appendix 9.  Wyoming was fortunate to receive one of those grants.  In response to a concern expressed by Senator Coe that there may not be enough focus on in-bound marketing of air services in Wyoming, Mr. DeLano said the Commission is currently emphasizing the out-bound air service marketing program, but the long-term goal is to tie both programs together.  Senator Coe added that the State can leverage funding from the major airlines to market in-bound air services.

 

Ms. Reams, in response to questions from the Committee about the proposed contractor to perform a air services marketing analysis for the Commission, stated that firm has great research capabilities, but may need a public relations consultant to assist with the presentation of the data and recommendations that would result from the firm's research.  A contract has not yet been finalized because the scope of work is still being refined.  Senator Larson added that the firm appears to want to treat Wyoming like a single market, but the focus should be airport-specific.

 

Great Lakes Airlines¾Wyoming Services Update

Mr. Chuck Howell, CEO, Great Lakes Airlines, distributed Appendix 11, a copy of his presentation and Appendix 12, Peaks & Plains, the in-flight magazine recently published for Great Lakes Airlines.  He stated he has been in Wyoming 4 years and Great Lakes Airlines has been here since 2000.  The airline employs 349 people in Wyoming with annual payroll of $7.1 million.  These employees are part of the approximately 800 persons employed nationally by the airline. It is the largest provider of essential air services (EAS) nationally.  The airline owns 25 Beech 1900D airplanes with 19 seats each and 6 Brasilia EMB with 30 seats each.  Mr. Howell explained that the enplanements statistics in Appendix 11 for Cheyenne contained an error.  The document describes enplanements decreased in Cheyenne by 33%, but the actual decrease was only 3%.  The airline has spent nearly $70 thousand in marketing in its area and tracks passenger travel on its aircraft by the ticket control number.  He described data the airline had with respect to passengers' travel patterns out of the Cheyenne airport. 

 

The Rock Springs Airport is a success story for Wyoming. Because of the increase in enplanements, the airport will be reclassified as a non-EAS airport on October 1, 2006.  After that date, Great Lakes will fly out of that airport without a subsidy under the EAS program.  The Riverton Airport is close to receiving that designation also.  The Gillette Airport is also a success story, but it was never designated as an EAS airport.  The airline will apply by July 23, 2006, to continue to serve EAS airports in Wyoming.  Because of the success in Rock Springs, Riverton and Gillette, Great Lakes is planning the purchase of more 30 seat aircraft.

 

Mr. Howell suggested the Laramie Airport could be a success if flights would be increased from three per day to four per day. Historically, Laramie has more enplanements when four flights per day were scheduled.  The State should explore providing a state subsidy for the Laramie Airport, in addition to the federal subsidy provided as an EAS airport.  Illinois and Kansas have begun air enhancement programs after Wyoming created its program, but Mr. Howell does not know of a state that provides a state subsidy, in addition to the federal EAS subsidy.

 

Chairman Illoway and Senator Larson expressed interest in a feasibility study to determine the possibility of establishing intra-state air service.

 

Aeronautics Commission¾Goals for Air Service Enhancement

Ms. Reams provided a slide presentation on the Commission's goals for air service enhancement.  The Commission has adopted a 3-tiered plan for long-term air services improvements.  The first phase is focusing on individual community programs to enhance air services. The program is in the third year of  implementation of this phase.  The second phase will broaden to include statewide air service and will include a pricing negotiation strategy with airline carriers.  This phase should last 3 to 5 years.  The third phase will focus on a "fee for departure" program, including a central reservations process to control pricing structures and costs of equipment purchases, including the purchase of regional jets for Wyoming.  In this phase, the Commission will explore ways the State can share the risk with airlines because the debt load for small carriers is difficult and the State may have to share the risk because the air traffic numbers in Wyoming may not justify airlines assuming the total risk.

 

Aviation Education

Ms. Reams distributed Appendix 13, consisting of a white paper on establishment of an aviation education program and an explanation of the appropriation needed to implement the program.  She explained the need for statewide aviation education to foster career choices in the industry and to promote air services for the State.

 

Mr. DeLano advised that Casper College has a program dealing with aviation, but he is not familiar with the content or purpose of the program.  Committee members suggested it may be necessary first to determine what the Casper College program does and if there are any other community colleges or the University of Wyoming providing programs relating to aviation.  Mr. DeLano advised the Commission has the duty under W.S. 10-3-201 to encourage and assist in the forming of classes in aviation, but has not been provided with the funding necessary to perform that duty.  He suggested that either the Commission receive funding necessary to fulfill the duty, or that the duty be transferred out of W.S. 10-3-201 and placed under the appropriate statutes for the University, community colleges or someone else to implement the duty.

 

State Plan Usage Analysis¾Status Report

Ms. Reams stated that the Aeronautics Division will be hiring a fleet analysis expert to evaluate the efficiencies of state officials and employees using the state planes to conduct business statewide versus using ground transportation for those purposes.  The analysis will include a comparison of actual costs associated with each form of transportation and include the productivity lost during the travel.  Representative Walsh asked that the analysis include criteria such as the potential increase in usage of the state aircraft and the need for additional equipment and staff to accommodate the increased usage.

 

State Hangar¾Status Report

Mr. Tom Gould, Aeronautics Division, described the current and proposed hangar for state aircraft and office facilities of the Aeronautics Division.  He distributed Appendix 14, describing the proposed changes.  By including an on-site fueling system using a 12,000 gallon above-ground tank, the Division should save at least $250 thousand annually and the savings may be as much as $350 thousand annually. Because the Governor reduced the scope of the plan, the proposed office facilities that were to be part of the hangar will not be built.  The hangar should be completed by November, 2006.  Chairman Illoway asked what the office space that has been eliminated would have cost.  He does not want a half-baked approach to the project.

 

Federal Airport Funding Reductions

Ms. Reams distributed Appendix 15, describing the anticipated reductions in federal funding for airports in Wyoming.  The reductions will amount to a 50% reduction over funds historically received.  Those reductions are exacerbated by an increase of 240% in the cost of asphalt for airports.  The statewide needs currently identified in the Wyoming Airport Construction and Improvement Program are nearly $200 million.  This amount only includes those needs that qualify for state and federal funding, but the costs make them far too expensive to undertake without federal assistance.  Senator Coe advised the problem with be even greater for general aviation airports than for the commercial airports because of the more limited funding available for the former.

 

Northwest Wyoming Helicopter Request

Ms. Reams explained that a five county coalition of law enforcement and search and rescue agencies approached her for advice on how they could obtain a helicopter to serve the five county region.  She suggested they approach the legislature with their request.  The counties involved include Fremont, Lincoln, Park, Sublette and Teton counties.  She introduced persons in attendance who wanted to testify in support of the request.

 

Mr. Gould advised a satellite location for a helicopter could be created and the Aeronautics Division could staff and organize the interagency coalition if funding were provided.  If so tasked, the Division could provide cost estimates of implementing such assistance to the coalition.

 

Sheriff Bob Zimmer, Teton County, distributed Appendix 16 containing an explanation of the need for a helicopter to conduct search and rescue operations, law enforcement activities, homeland security activities and firefighting activities in the difficult terrain of Northwestern Wyoming.  There is a very limited availability of private helicopters in the area and the National Park Service helicopters are not generally available during the Summer firefighting season.  Teton County currently contracts with a private operation headquartered in Montana, which uses its Wyoming operation as a training site for pilots.  He stated that the five counties could support the annual maintenance costs of the helicopter, but would need assistance with the capital purchase of equipment.  Mr. Gould added that a twin turbo helicopter would be needed in the mountain terrain, which would cost between $2-4 million.

 

Representative Walsh asked if it may be feasible to explore creating a statewide system of regional helicopters.  Senator Coe said it is a good idea, but would be very expensive.  Several Committee members recalled that the Legislature recently approved funding for helicopter services to help with forest fire suppression.  Senator Larson asked the coalition to conduct a past-use study to determine how much helicopters have been used in the region in the past to conduct the activities identified, to determine what the level of financial commitment might be from the county commissioners of the respective counties, and where the helicopter would be stationed.   Representatives Monte Olsen and Keith Gingery appeared in support of their counties request for assistance in purchasing a helicopter.

 

Mr. Doug Meyer, Teton County Search and Rescue, advised his agency is paying about $90 thousand for four months in the Winter, usually to find and rescue lost or injured skiers.  Mr. Tony Chambers, Sublette County Search and Rescue, stated that, unlike Teton County, his agency's greatest need in during the Summer months.

 

Public comment

Mr. Gierau, as a Teton County Commissioner and serving on the Jackson Hole Airport Board, expressed his support of the Commission's 3-tiered approach to enhance air services in Wyoming.  He acknowledged that airline subsidies will be necessary in Wyoming, despite previously believing that such subsidies should only be a temporary fix.  The subsidies should continue for the smaller airports and he would like the subsidy for the Jackson Hole Airport to remain available when necessary.  Senator Larson agreed that the need for subsidies and air enhancement services will continue for many years into the future, so this Committee should continue to monitor those needs closely.

 

Ms. Reams suggested that the next Committee meeting could occur in Jackson during the Jackson Air Rendezvous, scheduled for August 15-17, to allow the Committee to participate in those meetings also.  Chairman Illoway advised that the timing would be difficult for most members because that would occur too close to the primary election when legislators are very busy.  He asked staff to explore a possible meeting date for the Committee in the last week of August.

 

Meeting Adjournment

There being no further business, Chairman Illoway adjourned the meeting at 2:15 p.m.

 

Respectfully submitted,

 

 

 

Representative Pete Illoway, Chairman

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