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<br />. <br />. <br /> <br />~ <br /> <br />~~~ <br /> <br />RECEIVED DEe 30 2005 <br /> <br />December 27, 2005 <br /> <br />Phillip S. Groshong <br />General Aviation Service Manager <br />Eugene Airport <br />28855 Lockheed Drive <br />Eugene, Oregon 97402-9500 <br /> <br />Dear Phil: <br /> <br />I am in receipt of your letter of December 14, 2005 identifying the opportunity <br />that the Eugene Airport has to participate in an Oregon grant program to <br />develop a cargo building and ramp. We have also discussed the fact that the <br />current cargo facility will be torn down in a couple of years. <br /> <br />" I <br /> <br />The Alaska Air Group sees a continuing need to maintain a cargo business at <br />Eugene at the present time. <br /> <br />,_ i <br /> <br />I <br />; <br />. j <br /> <br />Since the current cargo facility will be torn down soon and since the Airport will <br />not allow airlines to accept cargo business over the counter, then Horizon will <br />need to lease space in the proposed cargo development if we decide to continue a <br />cargo service in Eugene. <br /> <br />, <br />. j <br /> <br />Phil, we are very cost conscious. We work on razor thin margins. The new cargo <br />location will require us to purchase, maintain and fuel additional tugs and carts <br />because of the distance to the flight line. It may require additional staff to run <br />the freight from this more remote location. <br /> <br />I <br />! <br />. j <br /> <br />The lease costs of this new facility must be low. We would like to have a part in <br />developing the design and layout of our space in this building. We cannot afford <br />a facility that is overbuilt and over-designed. We will not pay for a facility that <br />features architectural whims and makes artistic and environmental statements <br />about the community. We wilJ notpay for art. We are interested in a pleasing, <br />professional, utilitarian structure with minimal lease costs. I carinotsay it in a <br />more simple or emphatic way~ <br /> <br />J <br />J <br />J <br />J <br /> <br />Horizon Air. P.O. Box 68977 . Seattle, WA 98168-0977 <br />