Business/--One year after the launch of Horizon Air's service in Santa Rosa, the venture has been deemed successful. Passengers, Thursday March 13, 2008 board an afternoon flight to Los Angeles on the Tarmac at the Charles M. Schulz Sonoma County Airport. (Kent Porter / The Press Democrat)2008

Horizon carries more than 133,000 passengers in and out of Sonoma County and, despite the economy's uncertainty, will add service to Vegas and second flight to Seattle

STEVE HART
BY STEVE HART PHOTOS BY KENT PORTER THE PRESS DEMOCRAT

When Horizon Air launched daily nonstop flights from Santa Rosa to Los Angeles and Seattle a year ago, it was taking a chance on an untested market.

Santa Rosa had been without scheduled passenger service since 2001, when United Express halted flights from Charles M. Schulz-Sonoma County Airport.

With no other option, North Bay air travelers trudged to San Francisco, Oakland or Sacramento to catch flights.

Would they pay more to fly from Santa Rosa instead? A year later, the answer is in -- and Horizon's local service is a resounding hit.

Horizon Air has carried more than 133,000 inbound and outbound passengers since the service started March 20, 2007. On the typical Santa Rosa flight, 77 percent of the seats were full, compared to 73 percent for Horizon's entire network.

Spurred by its early success, the airline added service from Santa Rosa to Portland in October and will offer new nonstop flights to Las Vegas and Seattle next month.

"We're happy with our experience in Santa Rosa," said Dan Russo, director of marketing for the Seattle-based carrier. "If we weren't, we wouldn't have added flights."

Ticket sales for the Las Vegas flights -- which begin April 24 -- "are tracking very well," he said.

The return of commercial air service has had economic ripples well beyond the county-owned airport.

It's given a boost to Sonoma County tourism and improved connections for business travelers, according to industry representatives.

Horizon's success will make it easier to attract other carriers and offer new destinations, airport officials said.

The county has proposed an $84 million expansion of the airport with a new terminal, longer main runway and additional parking.

But Horizon is facing some stiff headwinds. Many U.S. airlines have shelved growth plans for 2008 because of soaring fuel costs and the prospect of a recession that would crimp demand for seats.

Crude oil futures reached within pennies of a record, ending Friday at $110.21 a barrel as a weak U.S. dollar fueled speculative investment in petroleum futures. Soaring oil prices are forcing airlines to raise fares -- and trimming their profit margins.

Not without turbulence

Horizon, sister carrier of Alaska Airlines, posted a 12 percent increase in revenue in 2007 but lost $11 million because of higher fuel and operating costs.

"We're watching the economy like everyone else," Russo said. "Fuel costs are a big concern."

Horizon's capacity -- the number of seats it offers for sale -- will drop 4 percent this year as it retires some of its aircraft to reduce costs, according to Alaska Air Group, the corporate parent of Horizon and Alaska.

Horizon's first year of service in Santa Rosa wasn't without problems. In September, flights were canceled for several days after the carrier grounded its fleet of Bombardier Q400 turboprop aircraft for safety inspections.

The inspections were ordered after landing gear failed on two Scandinavian Airlines Q400s during flights in Europe. Horizon found no problems with its Q400s and returned them to service.

Horizon officials said the Santa Rosa flights have a good on-time record compared to the rest of its system. But some passengers have been stranded when flights were canceled or delayed because of weather or mechanical problems.

Horizon expects continued strong demand for its Sonoma County service, Russo said.

"We think flying locally is a better value proposition than driving to Oakland or San Francisco," Russo said.

Higher price for convenience

Travelers can find more flights and lower fares at the Bay Area's urban airports, but they're also paying more for a bus trip or gas and parking.

When those costs are added, Horizon's West Coast flights become a viable alternative for North Bay travelers, Russo said.

Passengers seem to agree.

"I love this airport," said Jill Jones of Santa Rosa, who was boarding a Horizon flight to Los Angeles earlier this month. "There's no traffic and the people here are pleasant."

She doesn't mind paying extra to fly from Santa Rosa, Jones said.

"It's not that much more expensive," said passenger Rod Teeter of Windsor, who has taken five trips on Horizon since the service launched.

Horizon won't have trouble selling seats on its new nonstops to Las Vegas, said Megan Erlendson, manager at HMS Travel in Santa Rosa.

"They'll be full seven days a week," she said. "That's going to be a wonderful getaway."

The flights have helped Sonoma County's visitor industry, making it easier for vacationers to reach Wine Country, said Ken Fischang, head of the county's Tourism Bureau.

"Now people can get here with no more than two flights from anywhere in the world," Fischang said.

Last year, the tourism bureau launched ad campaigns in Seattle and Los Angeles promoting Sonoma County as a Wine Country getaway.

The bureau also is using the Horizon connection to pitch Sonoma County as a conference setting for business and professional groups.

County hotel occupancy is up 10 percent over last year, due largely to Horizon, Fischang said.

"It's been huge for us," he said.

Horizon offers convenient West Coast connections for business travelers, said George Rose, a vice president at Kendall-Jackson, Sonoma County's largest winery.

"We have dozens of employees using the flights on a fairly regular basis," he said. "It sure beats driving down to San Francisco to catch a plane."

Horizon's popular service has focused attention on shortcomings of the airport, including its cramped terminal.

"We hear that a lot -- we need a new terminal," said Mike Hauser, president of the Santa Rosa Chamber of Commerce.

Promise for future

Airport officials are talking with Horizon and other carriers about new destinations, including Denver, Salt Lake City, San Diego and Phoenix. So far, however, there are no new routes planned.

"We're not in serious discussions with anyone at this point," said airport manager Jon Stout.

Some carriers have balked at serving Santa Rosa because the airport's main runway is too short for most regional jets. The county plans to extend the runway from 5,100 to 6,000 feet, but that project is four or five years away.

Meanwhile, the county could face political opposition to its expansion plans. Neighbors in Santa Rosa and Windsor said airport growth will increase problems of noise and low-flying aircraft.

"They're putting the cart before the horse," said Sandy LaMantia of Windsor, who belongs to an airport neighbors' group, Sonoma County Good Neighbors.

The airport hasn't been responsive to noise complaints and hasn't done adequate studies of the problem, she said. Horizon's new Las Vegas flight, which lands after midnight in Santa Rosa, will probably cause more complaints, she said.

Noise complaints have grown almost 14 percent since Horizon began service, but not all of the increase is due to the commercial carrier, Stout said. The number of complaints increased from 192 in 2006 to 218 in 2007.

The noise issue will be examined in an environmental review of the airport growth plan, which will be submitted to county leaders late next year, he said.

Meanwhile, the airport plans to charge each departing passenger a $4.50 facility fee starting May 1 to raise funds for improvements.

You can reach Staff Writer Steve Hart at 521-5205 or steve.hart@pressdemocrat.com.

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