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New in 2018: Direct flights to San Francisco address a growing demand

Des Moines to San Francisco

January 2, 2018

A growing demand from Iowa’s tech and startup community will be met in 2018 from the Des Moines International Airport.

Starting June 5 the Des Moines International Airport will offer direct flights to San Francisco and a direct path to Silicon Valley.

Flights are offered each Tuesday, Thursday and Saturday through Frontier Airlines, an ultra-low-cost carrier.

The demand first appeared three years ago, where 57,000 passengers were flying back and forth from both cities, according to Kevin Foley, Executive Director of the Des Moines International Airport.

“Since then that number has grown, the last report I had is we are up to about 68,000 passengers,” Foley says. “So the demand for a San Francisco flight is growing.”

Foley said over the years there were members of the tech community that had spoken with him about the need for a direct flight.

“It wasn’t real loud,” Foley said. “We hear it but of course the more support I have when I get in front of the airlines, the easier it is to sell a flight or a route. So I was getting that message but it wasn’t real loud yet.”

He said airports aren’t able to choose which routes they offer and that they have to recruit airlines. When the initial demand appeared, Foley said he first approached United Airlines to fill the void.

“Had a very large employer said to me we need a nonstop flight in and out of San Francisco, I would have asked them to go to the airlines with me and have a conversation with them,” Foley explained. “Because if the airlines know it’s business travel and they can absolutely count on a number of passengers every year, they are more inclined to move quickly about putting a flight in some place. Nobody actually did that other than the startup companies.”

Foley estimated that in 2018 the route will see a 20-30 percent jump in passenger traffic.

“When that occurs I will of course go to other airlines and back to Frontier asking for daily flights,” Foley says. “Try to get a route there and keep as much competition on that route as we can.”

The Denver-based Frontier Airlines offers five non-stop destinations from Des Moines, including direct flights to its home base at Denver International Airport.

New in 2018: Direct flights to San Francisco address a growing demand | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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