Select Committee on Air Transportation Minutes for Meeting August 14, 2007

Committee Meeting Information

August 14^th, 2007

Antler Inn

Jackson, Wyoming

Committee Members Present

Representative Pete Illoway, Chairman

Senator Henry “Hank” Coe

Senator Bruce Burns

Representative Floyd Esquibel

Committee Members Absent

Representative Dave Edwards

Legislative Service Office Staff

Matthew D. Obrecht, 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 8:30 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.

Approval of Minutes

Minutes from the June 13, 2007 Committee meeting were approved with changes made to the Fly Wyoming Campaign section as suggested by Amber Schlabs, Aviation Business and Marketing Program Manager, WyDoT Aeronautics Division.

Wyoming Business Council

Roger Bower, West Central Regional Director, Wyoming Business Council discussed the general impact of aviation services on the economy of the state, which he believes are a great catalyst to economic development. Mr. Bower gave the Committee a handout which outlined the Business Ready Community Program Investments in Airport Business Parks (Appendix 3). The Business Council has invested $13.4 million in five airport business parks (Sheridan County, Yellowstone Regional, Laramie, Riverton and South Big Horn County (Greybull) Airports) since 2004. The business parks at the 5 airports fall into 2 generally distinct niche markets: 1) professional business parks marketed to business that rely on commercial or private air service, and 2) industrial business parks marketed to business that have manufacturing operations related to aviation or are located near an airport because of land use compatibility. Laramie Regional Airport has a dual purpose business park. Mr. Bower stated that Business Ready Community investments in airports create jobs and diversify local economies while helping airports achieve sustainability through income derived from leasing of business ready space.

Jackson Hole Airport

Ray Bishop, Manager of Jackson Hole Airport, presented the Committee with statistics on income at Jackson Hole Airport and cost projections for a new terminal (Appendix 4). Mr. Bishop reported to the Committee that his airport's largest income producer is rental cars. The cost projection of the new terminal is $24 million dollars, with 65% of the funding coming from the Transportation Safety Administration and the airport needs roughly $8.8 million to complete the project. Mr. Bishop also discussed the possibility of a runway extension, which he described as not promising. The National Park Service does not believe that a runway extension is in the best interest of Grand Teton National Park (where Jackson Hole Airport is located), though the shorter runway may be a safety hazard and possibly an environmental nuisance in that pilots must throttle their engines more in order to achieve the thrust necessary for lift off on the shorter runway. The short runway limits the types of planes that can takeoff and land and is pushing more people to fly into Idaho Falls and drive to the Jackson area. The Committee expressed a desire to help promote a runway expansion.

WyDoT Aeronautics Division

Wyoming State Aviation Conference

Talbot Hauffe, Aviation Planner, WyDoT Aeronautics Division, gave the Committee an updated proposal for the Wyoming State Aviation Conference (Appendix 5). Mr. Hauffe related to the Committee that the Aeronautics Division is contracting the planning of the Wyoming State Aviation Conference (WySAC) through the Office of Events Planning for the University of Wyoming. The proposal outlines the scope of services provided during the conference as well as host city, meeting room and hotel requirements. The intent of the Division is that the WySAC be completely self sufficient and self sustaining on registration fees of approximately $100.00 per person, and to be determined vendor and exhibitor fees. The Office of Events Planning for the University of Wyoming will cover all up front expenses for WySAC while being reimbursed from the proceeds generated by the conference, so the need for an additional Legislative appropriation is not foreseen at this time. Mr. Hauffe stated the first WySAC is very tentatively slated for Fall of 2008.

Strategic Planning for the Wyoming Aviation System

Shelly Reams, WyDoT Aeronautics Administrator and Christy Yaffa, Planning and Budget Program Manager, WyDoT Aeronautics Division presented a PowerPoint to the Committee titled "Strategic Planning for the Wyoming Aviation System" (Appendix 6). The planning study will focus on the long-term development of an effective aviation system for Wyoming. The study has just gotten underway and is funded in part through a grant from the Federal Aviation Administration.

Airport Development Funding

Ms. Yaffa presented another PowerPoint to the Committee titled "Airport Development Funding" (Appendix 7). The presentation outlined the inflationary pressures on building materials used in airport construction and how recent changes in aircraft equipment necessitate upgrades in airport facilities. The presentation also set the value of unfunded airport improvement projects at $99 million while the Wyoming Aviation Capital Improvement Program (WACIP) shows almost $200 million in unfunded needs throughout the entire Wyoming aviation system. The Division is seeking an increased long-term predictable funding stream in order to meet the challenges identified in the report.

Wyoming Statewide Inventory and Implementation Project

Ms. Reams discussed the recently started project that will eventually inventory the facility and services available at all the airports in the state (Appendix 8). In conjunction with the inventory, a system evaluations "report card" of how the facility and services meet objectives established as part of the airport functional role analysis will be developed.

Fly Wyoming Campaign

Amber Schlabs, Aviation Business and Marketing Program Manager, WyDoT Aeronautics Division, presented an update to the Committee on the Fly Wyoming Campaign. Ms. Schlabs showed the Committee different billboard concepts for the campaign and discussed the second statewide tour associated with the Fly Wyoming campaign. The Fly Wyoming website has had over 300,000 hits since early May and the website (www.flywyoming.org) now includes listings for travel agents and charter companies in the 10 commercial service airport communities. Ms. Schlabs also gave the Committee a report on Wyoming commercial services airports 2006 passenger activity report (Appendix 9). Ms. Schlabs stated the campaign is attempting to emphasize the "time is money" aspect of flying from Wyoming airports, which has been effective in focus groups.

Draft Airport Needs Report

Mr. Hauffe and Ms. Reams distributed the draft airport needs report for all 42 airports assisted by the Division in the state (Appendix 10). Chairman Illoway asked Ms. Reams to distribute the final report to all Legislators with a memoranda stating the report is being distributed at the request of the Select Committee on Air Transportation. Committee members asked Ms. Reams to include as much pertinent information as possible on the report, which would help legislators understand the importance of funding airport improvements.

Northwest Wyoming Helicopter

Pete Gosar, Assistant Flight Operations Manager/Assistant Chief Pilot WyDoT Aeronautics Division, Jim Buyske, Flight Operations Manager/Chief Pilot WyDoT Aeronautics Division and Ms. Reams started the presentation on the feasibility of acquiring a helicopter for search and rescue and other purposes in northwest Wyoming counties (Appendix 11). Ms. Reams told the Committee that there may be needs for helicopters in other areas of the state, but the Northwest counties were the first to come to the Division with a proposal on which the Division could contribute. The final report on the helicopter from the consulting firm Conklin deDecker was not finished, but that preliminary findings were available. The findings were based on 4 categories: 1) identifying missions of the helicopter, 2) equipment options, 3) performance rankings, and 4) financial analysis. Mr. Gosar discussed the findings which covered 5 different models of helicopter (Bell 206L-4, Bell 407, Eurocopter AS350B-3, Augusta AW119, and Lama SA315B). The operating costs presented in the preliminary findings are based on helicopter operations being conducted by a state entity, but in the final report, operating costs will be for a generic governmental agency .

Teton County Sheriff Bob Zimmer discussed the need for a helicopter to perform search and rescue operations in his county, as well as radio tower maintenance (Appendix 12). Sheriff Zimmer stated that the contract cost for helicopters has risen due to the loss of Hawkins and Powers in Greybull, resulting in sporadic helicopter coverage in Teton County. Teton County's current helicopter contract is through Minuteman Aviation of Missoula Montana. No working relationship can be developed because of the frequent switches in contractors. The Teton County Sheriff's Department had over 50 search and rescue "call outs" in 2006.

Sublette County Sheriff Wayne "Bardy" Bardin told the Committee that he has to rely on out of state helicopters and federal helicopters, which are not always available. Sublette County Commissioners want to be involved with the process. Sheriff Bardin reiterated Sheriff Zimmer's statement that this would be a good pilot project if other areas of the state want to get helicopters. Sheriff Bardin told the Committee that many of the search and rescue operations in Sublette County must still be done on horseback. Chairman Illoway asked about assessing costs for rescues to the victims rescued. Sheriff Bardin said he has not billed victims of search and rescue operations, but may begin. Sheriff Zimmer stated that he sends out a bill after every rescue.

Tim Ciocarlan, Director, Teton County Search and Rescue, stressed the need for a helicopter not only to expedite the rescue of the victim, but also to ensure the safety of rescuers. Mr. Ciocarlan recounted a harrowing rescue he undertook at great personal risk, which would have been fairly routine with a helicopter.

Adam Smith, Teton County resident and avalanche survivor, told the Committee that without a helicopter rescue he might not have survived his accident.

Senator Grant Larson told the Committee that the high demand for helicopters throughout the West for energy exploration was causing contract prices to skyrocket and helicopter availability to shrink. Senator Larson also believes that it is government's responsibility to provide the appropriate equipment for search and rescue operations, but it must be a partnership between state and counties government.

Representative Keith Gingery reiterated the need for year round helicopter coverage. Representative Gingery also believes that the state should own the helicopter and that the pilots should be state employees. Representative Gingery hopes that the northwest helicopter issue could be decided this year, either through a request in the budget or as a separate bill.

Andy Schwartz, Chairman, Teton County Commission advised the Committee that the need for the helicopter dedicated to search and rescue operations was growing every year as more people travel deeper into the back country. Teton County is a recreation based economy and cannot prohibit tourists from recreating in the backcountry. Chairman Swartz believes that a coalition of counties approach is the best solution to the helicopter question.

Clarene Law, Former Wyoming State Representative, Teton County resident and business owner, described a helicopter rescue of her husband and mother on Teton Pass. Ms. Law believes that the search and rescue fund is inadequate for the purpose of purchasing a helicopter and believes that money may be saved in the long term if the helicopter is also used for fire suppression.

Senator Hank Coe discussed the issue from a Park County perspective, where he had over 20 years of experience working with search and rescue. Senator Coe stated that the peak demand season for helicopters in Park County was during hunting season. Hawkins and Powers halting business operations acutely impacted Park County.

Chairman Illoway asked LSO staff to research the search and rescue fund, how it is funded and whether additional monies could be deposited in that fund.

Senator Bruce Burns expressed reservations about supporting a helicopter for use only in the northwest part of the state and required a greater and more imaginative input from the counties for funding and as a partnership. Sheriff Zimmer stated that one helicopter could not cover the whole state. In a search and rescue situation, a helicopter needs a one hour response time to be effective. Sheriff Zimmer reiterated the fact that the northwest helicopter could be a pilot program. Senator Coe also expressed the belief that other areas of Wyoming may have greater helicopter coverage than the northwest counties.

Chairman Illoway asked Ms. Reams to pursue the possible funding aspects for the helicopter for the next meeting. Ms. Reams said that there are other state agencies, such as Business Council and Homeland Security, who would contribute funds to use the helicopter when it is available.

Airlines Update

David Jehn, Managing Director North America Planning, United Airlines told the Committee that Wyoming is very important to United Airlines. United is in a "no growth mode" coming out of bankruptcy, but that has not stopped the airline from expanding its services in Wyoming. The airlines capacity to Jackson has increased 35% over the last 12 months. Mr. Jehn expressed his belief that United Service into Yellowstone Regional and Casper are successes as well. Chairman Illoway asked Mr. Jehn and United Airlines to help push for the Jackson Hole runway extension.

Jeff Rose, Wyoming Aeronautics Commission, thanked the Committee for discussing the issues presented during the meeting.

Chuck Howell, Chief Operating Officer of Great Lakes Airlines (GLA) spoke to the Committee concerning the current operating status of GLA. Mr. Howell reports that the 7 airports GLA serves in Wyoming are all seeing growth in number of passengers. GLA is also expecting to see a profit this year and has added some western Kansas markets to both Denver International Airport and Kansas City International Airport. GLA may also add the eastern Utah markets of Vernal and Moab. Mr. Howell stated that his Airlines' equipment has remained the same since the last meeting, though the Airline is constantly looking to grow. Mr. Howell also believes that Southwest Airlines entering DIA has driven down all ticket prices for flying in and out of DIA.

Wyoming Airport Operator's Association

David Herring and Glenn Januska, Wyoming Airport Operator's Association (WAOA), presented a draft of an airport legislative manual to the Committee (Appendix 13). Mr. Herring explained that WAOA is attempting to change its institutional attitude to be more open and proactive, and Mr. Herring believes the legislative manual is one way to achieve these goals. He hopes that the legislative manuals are available by the middle of next year, with some form of information available by the beginning of the session. Chairman Illoway reiterated his belief that legislator should tour their local airports in an attempt to understand the economic impact airports have on their communities. Mr. Herring stated that he would like to see all airports in the state have the ability to give a tour on very short notice and have a formalized agenda created for airport tours across the state. Mr. Januska described the WAOA website and the plan to have updated information on airports available to be downloaded from the website.

Meeting Adjournment

There being no further business, Chairman Illoway adjourned the meeting at12:15 p.m.

Respectfully submitted,

Representative Pete Illoway, Chairman

Appendix	Appendix Topic	Appendix Description	Appendix Provider
1	Committee Sign-In Sheet	Lists meeting attendees	Legislative Service Office
2	Committee Meeting Agenda	Provides an outline of the topics the Committee planned to address at meeting	Legislative Service Office
3	Business Ready Community Program Investments in Airport Business Parks	Describes investments made in airport business parks in Wyoming	Wyoming Business Council/Bower
4	Jackson Hole Airport Statistics	Handout describing Jackson Hole Airport revenue streams and new terminal funding	Jackson Hole Airport/Bishop
5	Wyoming State Aviation Conference	Proposal for first Wyoming State Aviation Conference	WyDoT Aeronautics Division /Hauffe
6	Strategic Planning for the Wyoming Aviation System	Study to focus on the long-term development of an effective aviation system for Wyoming	WyDoT Aeronautics Division /Yaffa
7	Airport Development Funding	PowerPoint describing inflationary impact creating a budget shortfall for airport projects	WyDoT Aeronautics Division /Yaffa
8	Wyoming Statewide Inventory and Implementation Project	Description of recently initiated inventory and implementation project	WyDoT Aeronautics Division /Hauffe
9	Wyoming Commercial Services Airports 2006 Passenger Activity Report	Monthly break down and yearly total passenger numbers from Wyoming's 10 commercial airports	WyDoT Aeronautics Division /Schlabs
10	Wyoming Airport Needs Report	Draft list of the infrastructure needs for many Wyoming airports	WyDoT Aeronautics Division /Hauffe
11	Northwest Wyoming Helicopter	Preliminary findings of the needs, costs and ratings of various helicopters for us in NW Wyoming	WyDoT Aeronautics Division /P. Gosar
12	Teton County Radio Towers	Lists the radio towers in Teton County and accessibility to those towers.	Teton County Sheriff Bob Zimmer
13	Draft Legislative Manual of Cheyenne Airport	Example of legislative manual containing pertinent information on Cheyenne airport.	WAOA/Herring