Delta Air Lines – Redmond Municipal Airport

Redmond, Oregon

The Redmond Municipal Airport is a non-hub airport located in central Oregon.  The airport market area suffered from passenger diversion to Portland International Airport, approximately 145 miles distant, as well as a deficiency in service to eastern destinations.  The growing business, tourism, and retirement population, with interest in eastern points, was seriously underserved.  Air travelers destined to the east had to use existing north-south service to Portland, Seattle, and San Francisco before connecting to the east, which frequently involved a second connection since there were a limited number of nonstop markets from those cities, particularly Portland and Seattle.  Given the circuity involved and multiple connections, service between Redmond and eastern points was overpriced.  The business and tourism growth potential of the area could not be realized without nonstop service to an eastern destination.  Eastbound travel opportunities fell far short of the quality and convenience necessary for the area’s continued economic growth. 

Mead & Hunt was selected to work with Redmond Municipal Airport staff to file a 2003 Small Community Air Service Development Pilot Program grant application on behalf of the Redmond community.  The grant application proposed twice-daily eastbound service with the Canadair Regional Jet.  Eastbound service via Denver or Salt Lake City would represent a significant increase in competition and a reduction in travel circuity, which would result in lower fares in many eastbound markets.  The Action Plan included in the grant application featured three primary components: an airline revenue guarantee for the ramp-up period; a marketing program to address the service awareness issue; and an Airline Travel Bank® to lock-in the support of the Redmond business community.  Redmond Municipal Airport was awarded $516,000 by the US DOT to be used for a revenue guarantee associated with eastbound jet service. 

Subsequent negotiations with Delta Air Lines resulted in an agreement that provided for two daily round trips to Salt Lake City that began in March 2005.  Mead & Hunt completed a Passenger Demand Analysis for the Central Oregon market; multiple pro forma for service alternatives to each of two hub airports; and Redmond’s 2003 Small Community Air Service Development Program grant application.  Additionally, Mead & Hunt provided consulting services associated with the creation of a $640,000 Airline Travel Bank®.  In March 2005, Delta Air Lines began serving the market.