The Issue
In 2003, the Central Oregon region had not had added a new destination for commercial air service in a decade, despite considerable population, employment and business growth. Options were limited with only two airlines serving Central Oregon, Horizon and United (Skywest) and no direct eastbound flights. Lack of service was a barrier for business recruitment, and for expansion of existing firms, especially in the high-tech industry.
The Solution
The solution was evident -- recruit a third airline to foster competition and serve the region with flights to a hub east of Central Oregon.
EDCO's Role
EDCO worked led a team effort with the Redmond Airport, consultant Mead & Hunt, Central Oregon Visitors Association (COVA), and the Central Oregon Air Service Taskforce (COAST), comprised of business leaders with an interest in expanding air service in the region. Collectively, these groups worked to educate airlines about opportunities in Central Oregon. EDCO helped prepare an incentive package and spearheaded implementation of the Airline Travel Bank, which secured Delta's commitment.
Success
The initiative was successful in recruiting Delta Airlines to provide daily jet service, the first in Central Oregon, to Salt Lake City. 
Service was expanded and paved the way for new flights to Los Angeles, seasonal flights to Denver and, most recently, weekly service to Las Vegas and Phoenix via Allegiant Air, a fourth carrier for the market.
The Results
Leading up to 2003, the Central Oregon Air Service Taskforce -- comprised of leaders from the Central Oregon Visitors Association (COVA), Redmond Chamber of Commerce, Eagle Crest Resort, EDCO, and the Redmond Airport -- met periodically to strategize how to attract new service to the region. Recent experience had left COAST members feeling that it had little leverage with incumbents Horizon and United to expand, and no good contacts outside these two carriers.
The Redmond Airport enlisted the help of air service consultants Mead & Hunt, which 1) had the contacts and trend intelligence with all the major U.S. carriers, and 2) had the technical expertise to structure a compelling local incentive package, and 3) would prepare a credible business case for new service. EDCO accompanied Mead & Hunt representatives on recruiting trips to headquarters at Delta (Atlanta) and United (Chicago) to present a compelling picture of business activity, population and employment growth trends. Interestingly, none of the analysts and planners in the meetings for either airline had ever been to Oregon or to Central Oregon, so were not aware of the dynamic business environment here. Proposals to each airline included a $500,000 revenue guarantee provided by a federal grant received by the Redmond Airport to attract new service and a commitment, called an Airline Travel Bank, from local businesses to a minimum of $500,000 prepaid travel.
Delta was the first to move on the proposal, and committed November 2003 to starting the service March 2004, provided the Airline Travel Bank could be secured by the end of December 2003. EDCO spearheaded this effort, which included dozens of meetings with more than 100 area businesses to explain the travel bank and its need to attract the new service. In only three weeks, EDCO was able to secure $620,000 in pledges from 120 local companies, which were converted into actual prepaid travel the following month. The process required more than 125 separate contracts, with EDCO acting as the fiscal entity between the companies, airline, and issuer of the travel bank credit cards.
As a result of the travel bank and excellent publicity leading up to the new service, it performed profitably in the first month (in most cases it requires six months) so that the revenue guarantee grant was never used and returned. Demand for additional air service was so clearly demonstrated by the success of the Salt Lake flights that two years later Horizon started new daily service to Los Angeles. A year later, Allegiant Air began service twice weekly (later expanded to three flights) to Las Vegas, and then added service weekly to Phoenix.
Consequently, Redmond Airport - among the 20 largest commercial airports in the Pacific Northwest region - was the fastest growing airport in terms of passenger volume of any size for 2005, 2006, and 2007. It all started with the successful recruitment of Delta and the success of the service, which was due in no small part to the Airline Travel Bank that EDCO established and administered.