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02/16/2011 AgreementDANNYL. KOLHAGE CLERK OF THE CIRCUIT COURT DATE: April26, 2011 TO: Peter Horton, Director of Airports VIA: April Pearson FROM: Isabel C. DeSantis, D. C. At the February 16, 2011, Board of County Commissioners meeting, the Board granted approval of the following: Item Cl Waiving the Purchasing Policies and Procedures (Chapter 4, Purchase of Professional Services), and accepting a proposal from Sixel Consulting Group, Inc., to assist with Southwest Airlines Air Service Development at the Key West International Airport. Enclosed is a duplicate original of the above -mentioned for your handling. Should you have any questions, please feel free to contact our office. cc: County Attorney Finance File Southwest Airlines Air Service Development Proposal o = rm. t i - --v o N --71 Cr1 a A 2O m Presented to: -,,c. o - rr' w o Key West International Airport Key West, Florida /14.2''„ to.‘ j 1 % } a y' • `- by: � ► -Sixel Consulting Group,Inc. Air Transportation and Airport Consulting Services Southwest Airlines Air Service Development Proposal Key West International Airport •Sixel Consulting Group,Inc. January 2011 • Page 1 of 4 Client: Peter Horton Director of Airports Key West International Airport 3491 South Roosevelt Blvd. Key West, FL 33040 www.monroecounty-fl.gov Horton-peter@monroecounty-fl.gov phone: 305.292.3518 fax: 305.292.3578 Consultant: Mark Sixel President Sixel Consulting Group, Inc. 1180 West 15th Ave Eugene, OR 97402 www.sixelconsulting.com mark@sixelconsulting.com phone: 541.341.1601 fax: 541.341.1603 Lead Consultant: Michael Mooney Air Service Strategy and Development Consultant michael.mooney@sixelconsultina.com phone: 303.842.9496 Sixel Consulting Group ("Consultant") proposes to work with Key West International Airport ("Airport") on a project to demonstrate to Southwest Airlines the potential of the Key West market and thus retain and expand existing AirTran service at Key West after the Southwest/AirTran merger occurs. The project will include a number of components, detailing the Airport's catchment area and demographics, historic and current inbound leisure traffic demand, historical air service, competing air service at nearby airports and comparisons to other similarly sized markets around the country. Consultant will complete each of the following tasks: Southwest Airlines Air Service Development Proposal Key West International Airport • Sixel Consulting Group, Inc. January 2011 • Page 2 of 4 1. Determine and map the Airport's catchment area, providing specific demographics of the area including, but not limited to, population growth/decline, unemployment and economic background information. 2. Define the airport's inbound traffic flows and points of origin. Outline the metrics of the Key West and Florida Keys leisure market and the challenges to accessing that market due to the poor highway access from the Florida mainland. 3. Consultant will prepare a specific market analysis for each proposed market, with projections of the number of potential passengers, revenues, average fares, and average yields. 4. Consultant will analyze passenger traffic and revenue and average fare data to/from Airport over the prior six -year period. Consultant will analyze seasonality, day of week and time of day demand for local traffic over the prior two year period. 5. Consultant will provide traffic, revenue, cost and profitability forecasts for Southwest Airlines serving the possible Key West routes. b. At Airports request, Consultant will contact Southwest Airlines on behalf of Airport and arrange headquarters meeting. 7. Consultant will travel with Airport to airline headquarters to present findings as required. 8. Consultant will provide follow-up information as desired by Southwest Airlines that is requested as a direct result of information provided by Consultant, at the discretion of Consultant. 9. Consultant will provide all other pertinent information not specified above that Consultant deems necessary to complete this section of proposal. Southwest Airlines Air Service Development Proposal Key West International Airport • 5ixel Consulting Group, Inc. January 2011 • Page 3 of 4 Consultant is prepared to begin work immediately, with a timeline negotiated between the parties before the agreement is signed. Project Costs: Southwest Airlines Case Study and Presentation to Airline: $10,500 Mayor Heather Carruthers o4-1 Key West International Airport41, Dated this 14L day of 2011 Feb' ATTEST: DANNY L. KOLHAGE, CLERK a444) y J)o DEPUTY CLERK Mark Sixel (signature) Sixel Consulting Group, Inc. Dated this 114 day of W 2011 OE COUNTY R Y PR ED AS is J •� PEDRO J. RCAD ASSISTANT CO U TY ATTORNEY Date `Y 7—/I/ Southwest Airlines Air Service Development Proposal Key West International Airport • Sixel Consulting Group, Inc. January 2011 • Page 4 of 4