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Updated: Tuesday, April 1, 2008 10:28 AM

OST-2007-27370 - Small Community Air Service Development Program

OST-2002-11590 - 2002 Small Community Air Service Development Program
OST-2003-15065 - 2003 Small Community Air Service Development Program
OST-2004-17343 - 2004 Small Community Air Service Development Program
OST-2005-20127 - 2005 Small Community Air Service Development Program
OST-2006-23671 - 2006 Small Community Air Service Development Program
OST-2008-0100 - 2008 Small Community Air Service Development Program

Letters in Support

Small Community Air Service Development Program

Order 2007-2-22

Issued and Served February 26, 2007

Order Soliciting Community Grant Proposals

Eligible applicants are those communities that (1) are served by an airport that was not larger than a small hub airport for calendar year 1997 and (2) had insufficient air service or unreasonably high airfares. Communities that do not currently have commercial air service are also eligible, but they must have met or be able to meet in a reasonable period all necessary requirements of the Federal Aviation Administration for the type of service involved in their grant proposals. Communities served by medium and large hubs are ineligible to apply.

EAS communities may apply. Small communities that meet the basic criteria and currently receive subsidized air service under the Essential Air Service program are eligible to apply for funds under the Small Community Program. Indeed, a number of EAS‑subsidized communities applied in past years and some have received grant awards. However, grant awards to EAS‑subsidized communities are limited to (1) marketing or promotion projects that support existing or newly subsidized air services or (2) new air services, such as on‑demand air taxi service. Furthermore, grants funds will not be authorized for EAS‑subsidized communities to support either additional flights by EAS carriers or changes to those carriers' existing schedules.

Communities that propose to use the grant funds for service in a city-pair market that is already served by a carrier must explain in detail why the existing service is insufficient or unsatisfactory, or provide other compelling information to support such proposals. This information is necessary for the Department to consider the competitive implications of giving financial or other tangible incentives for one carrier that the other carrier is not receiving. The Department is concerned generally about subsidizing one carrier but not others in a competitive market and that, while bringing new competition may benefit the community in the short term, a market may prove insufficient to support two carriers and service may deteriorate to the point that the community's service is less beneficial than before.

Proposals should be submitted in the above-referenced docket no later than April 27, 2007

By: Michael Reynolds

August 24, 2007

Motion for Confidential Treatment

It is requested that the attached letter filed on behalf of a party supporting a proposal subrniti ed under the Small Community Air Service Development Program be withheld from public disclosure because of the information and data contained in that filing. The filing contains information that details future business plans and passenger and financial projections for proposed service and the party thus considers the information in the filing to be confidential and proprietary and requests that it be protected from public disclosure.

Given the current state of the airline industry, where carriers are quick to take steps to block others from entering or adding service at an airport, it is of utmost importance that this information be accorded confidential treatment. If made public, other carriers could take action based on the proposed s’ervice and this could damage or prevent the new service in its entirety. This need for confidentiality in order to avoid larger carriers blocking new service in a market is sufficient to show the likelihood of significant competitive injury.

Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com

September 26, 2007

Comments of United Air Lines

On September 10, 2007, a motion dated August 24, 2007, was posted in this docket seeking confidential treatment of certain supplemental material relating to a request for an SCAS grant. The motion does not disclose the name of the party on whose behalf it was filed.

While this confidentiality motion may not raise any procedural issues for the unopposed applications in this proceeding, United believes it to be problematic for those applications that are opposed. For example, United opposed the application of Walker Field Airport, Grand Junction, CO for various reasons. See letter dated May 16, 2007, which was posted in this docket on August 31, 2007.

In the case of a contested application, United believes the Department should dismiss both the confidentiality motion and the application’s supplemental information. The dismissal could be without prejudice to a resubmission in which the identity of the moving party is revealed and greater specificity is provided as to why the supplemental material should be withheld from public disclosure in the context of a contested application. In doing this, the Department would afford interested parties the opportunity to address the merits of the motion in the context of any opposition they may have with respect to a specific SCAS application. Absent such an opportunity, however, reliance by the Department on the supplemental information would be a denial of due process to such other interested parties and a violation of the Department’s ex parte rules.

Counsel: United, Julie Oettinger, 202-296-2370, julie.oettinger@united.com

August 27th Letter from DOT to United - Includes May 16th Letter

Order 2007-10-21

Issued and Served October 18, 2007

Order Awarding Grants - Bookmarked

By this order, the Department awards financial grants under the Small Community Air Service Development Program to the entities listed in the Appendix to this order to implement the air service initiatives proposed in their grant applications. These awards will benefit 26 grantees in communities in 21 states and one U.S. territory. Award recipients must execute a grant agreement with the Department before they can begin to spend funds under the grants awarded by this order.

  • Nine of the grant awards are made to communities experiencing higher-than-average air fares, including Yuma, AZ; Panama City, FL; Lexington, KY; Saginaw, MI; Golden Triangle, MS; Greenville, MS; Helena, MT; Minot, ND; and Roswell, NM. These communities will use their grants to attract new or expanded air services. In the case of Lexington, KY, a small-hub airport city not presently served by a low-cost air carrier, the grant provides the community with the means to seek out low-cost service.
  • Six awards go for marketing programs to increase the use of local air services, including Yuma, AZ; Burlington, IA; Kirksville, MO; Ironwood, MI; Pennsylvania DOT; and Jackson, TN.
  • One award goes to a consortium of communities in North Carolina that wants to promote the development of on-demand air taxi service as an alternative to traditional scheduled service.
  • Five awards go to communities -New Haven, CT; Terre Haute, IN; Burlington, IA; Lexington, KY; and Astoria/Newport, OR - that are seeking to acquire their first air service, restore service previously lost, or obtain new low-cost carrier service.
  • Seven awards go to communities seeking service by a second air carrier. They are Stockton, CA; Golden Triangle and Greenville, MS; Minot, ND; Roswell, NM; Youngstown, OH; and Klamath Falls, OR.
  • Four awards will enable communities to conduct studies of their air service needs and potential solutions, including Bowling Green, KY; Athens, OH; St. Croix, VI; and Rhinelander, WI.
  • This year, five grant awards are targeted at EAS communities. In each case, our decision reflected a unique circumstance in the local community: either a service change to a new hub or service by a new carrier. The EAS communities are Jackson, TN; Burlington, IA; Kirksville, MO; Ironwood, MI; and an EAS consortium sponsored by the Pennsylvania DOT.

By: Michael Reynolds


Proposal of City of Show Low - Show Low, Arizona - Bookmarked

The goal of the Show Low Regional Airport SCASD program is to develop a non-local marketing campaign aimed at increasing awareness and generating additional enplanements for the airport. Through increased activity that results from the marketing efforts, Show Low Regional Airport will be less reliant on a subsidy in order to maintain commercial airline service to the White Mountains Region.

The two components of the Show Low grant proposal are estimated to cost $165,000. The City of Show Low is requesting $150,000 from the US DOT, to be matched by $15,000 in City funds. The $15,000 in City funds was requested as a new line item in the City budget for FY 2008 as a proposed match for the US DOT grant. The Airport has not previously received funding from the City for marketing purposes, only for matching federal and state grants for airport capital improvement projects.

EAS at Show Low - OST-1998-4409


Proposal of Yuma, Arizona - Bookmarked

Yuma International Airport and its community partners are requesting a grant in the amount of $200,000 to implement a two year, comprehensive marketing and communication program. The community will provide local matching funds of $30,000, for total program funding of $230,000.

By: Yuma International Airport, Craig Williams



Proposal of City of Merced - Merced, California - Bookmarked

The City of Merced, acting as sponsor, is applying for $100,000 in Small Community Air Service Development Program funding. This will be matched by $79,160 in local funds ($30,000 in cash contribution and $49,160 in-kind), which together with the grant will provide a three-year marketing program for air service from Merced.

The marketing program will bolster ridership for existing air service and promote the development of additional service by the existing carrier and others. The program will increase visibility and knowledge of Merced’s air service throughout the market area. Following the end of the three-year grant, ridership will have increased on a steady basis and additional flight capacity will have been added.

Merced’s current service is supported by the EAS program and the intended activity is marketing. Merced is also one of a city pair in the same market area, but the other airport in the city pair (Castle Airport, in Atwater), does not have commercial service so Merced is the logical applicant. Merced has also previously been part of a consortium, but the consortium’s activities under a previous grant are being concluded.

EAS at Merced - OST-1998-3521

http://www.cityofmerced.org/depts/airport/default.asp - Merced Municipal Airport

Proposal of Merced County - Merced County, California - Bookmarked

Part one of this two-year proposal is to establish new air service at Castle Airport for the communities that make up the greater community of Merced County CA, as well as the surrounding counties of Mariposa, Tuolumne, Madera and Stanislaus. This section will explore the marketing and incentives that will be used to attract and ultimately sustain a new airline service at Castle Airport.

Flights from Castle Airport would alleviate many of the long road trips currently required for people to get to an airport. The reduction in road trip length would provide the following positive results: less traffic on already congested roads; less auto emissions in an air pollution problem area; and a better, less expensive, less time consuming travel experience.

Castle Airport is within 10 miles of the Merced Municipal Airport, a Part 139 airport with a limited, Essential Air Service subsidized operation and a short 5,903 foot runway compared to Castle’s 11,802 feet. During summer months, due to the high temperature and field elevation, a regional jet could not safely operate from Merced’s short runway. However, aircraft operating from Castle Airport have no such limitations.

EAS at Merced - OST-1998-3521

http://www.castleairport.merced.ca.us/ - Castle Airport

Proposal of San Luis Obispo County Regional Airport - San Luis Obispo, California - Bookmarked

San Luis Obispo County Regional Airport is in the middle of a successful campaign to add new service. That campaign culminated in the last year, with the announcement of new non-stops flights to Salt Lake City, on Delta Connection carrier SkyWest. The Airport is now well served to the east, the southwest, to Los Angeles, and to San Francisco.

Despite service additions, San Luis Obispo still lacks non-stop flights to the capital of California: Sacramento. This proposal seeks funds to help SkyWest launch daily non-stops between SBP and the Capitol City, which could then, in the future, continue through San Luis Obispo to another underserved destination: San Diego. The Airport seeks these flights to be operated by Embraer EMB-120 Brasilia turboprop aircraft.


Proposal of Stockton Metropolitan Airport - Stockton, California - Bookmarked

The Stockton Metropolitan Airport, which serves a catchment area of over 1.2 million people, reintroduced air service with Allegiant Air in June 2006. While valuable to the community, this service only provides four-five weekly flights to Las Vegas and no online connecting opportunities.

The Airport has an ongoing public-private partnership with the San Joaquin Council of Governments and San Joaquin Partnership which fully support this program to reinstate hub service to Stockton. This application requests $400,000 from the Department to fund a comprehensive action plan as part of an $825,000 program to attract new service to a hub in the National Air Space System.


December 5, 2007

Re: Authorization of Stockton Metropolitan Airport to Accept Grant

The DOT portion is comprised of $400,000 grant funding to attract additional airline service to the Stockton Metropolitan Airport. The Airport and community together will provide $425,000 to fund a $375,000 comprehensive marketing plan as well as $50,000 toward the airline's start-up costs. On May 29, 2007, the Board of Supervisors approved a transfer of $100,000 was approved from the Reserve of Contingencies to the Airport Enterprise Fund as the County's contribution towards the public-private partnership of community funds.

By: Steven Hicks


Proposal of Eagle County Airport - Eagle, Colorado - Bookmarked

This proposal includes Eagle County Government and Eagle County Airport's request of $1,000,000 of Federal funds, to be matched with an additional $600,000 from Eagle County, CO and the Fly Vail Summer & Fall Partnership.

The funds will be used over three years to:

  • Attract new non-stop summer service to/from Newark, NJ through use of revenue guarantees
  • Increase frequency of summer Dallas (DFW) non-stop flight service
  • Continue to market existing summer and fall non-stop service from Dallas
  • Increase awareness among Eagle County residents and visitors of Eagle County Airport's, flight services and create new visitors through a two-pronged marketing initiative


Proposal of Walker Field Airport - Grand Junction, Colorado - Bookmarked

Motion for Confidential Treatment

This Small Community Air Service Development Program grant application for the Walker Field Airport Authority/Walker Field Airport, Grand Junction, CO meets the guidelines set out in Docket OST-2007-27370. The Walker Field Airport Authority, the Airport sponsor, is requesting $405,000 in federal assistance to facilitate the implementation of a $460,000 air service improvement initiative. The project’s goals are to improve air service to a broad section of Grand Junction’s community traveling to destinations located in the east, south, southeast, and south central US, mitigate the need to drive long distances to access air service and competitive fares to these markets, and improve local access to the national air transportation system for this isolated part of Colorado.


Proposal of City of La Junta - La Junta, Colorado - Bookmarked

The economic downturn in Southeast Colorado is, in major part, the reason for this regional unity in proposing this project. With the assistance provided by this grant, Southeast Colorado could be on the verge of an economic boom with national and international projects investing in the area. The projects include the Pierre Auger Cosmic Ray Observatory, National Bio-Agro Defense Facility relocation and commercial wind energy generation. Individual communities are exploring other diverse projects. These projects are essential for the future growth of Southeast Colorado. The Small Community Air Service Development Pilot Program providing air service to Denver is a vital link to these projects.

Proposal of Pueblo Memorial Airport - Pueblo, Colorado - Bookmarked

The City of Pueblo, Colorado is applying for a grant under the Small Community Air Service Development Program to enhance air service by improving and expanding the marketing program. The grant funds and local contributions will go toward an innovative marketing campaign, which includes engaging a dedicated marketing representative, either an individual or a professional firm, designed to increase use of Pueblo Memorial Airport. Increased use will better afford Pueblo to negotiate with the airlines to serve our market with unsubsidized equipment.

The total two-year project "cash cost" is estimated to be $235,000. Funds requested from the Small Community Air Service Development Program are $190,000.

EAS at Pueblo - OST-1999-6589



Proposal of Tweed New Haven Regional Airport - New Haven, Connecticut

The Regional Growth Partnership is applying for $300,000 in federal funds to help promote the introduction of new, low-fare service to Boston, MA. This amount will be matched by $50,000 in community dollars committed by the RGP and HVN, as well as an in-kind incentive package of approximately $132,430. Total cash and in-kind funding for development of this Project will be in excess of $482,430.

Together, these resources will support a comprehensive campaign to introduce and promote the entry of new carrier to serve Boston Logan International Airport.



Proposal of Okaloosa County Airports System - Ft. Walton/Eglin AFB, Florida - Bookmarked

The community is requesting a grant of $500,000 under the Program to be matched by a local contribution of $100,000. This total $600,000 will be applied to a carefully-constructed revenue-guarantee program for the carrier, as well as an aggressive local marketing and public awareness program. In addition to the local cash contribution of $100,000, an additional $200,000 of “in-kind” contributions, representing waiver of airport landing and rental fees for the first year of service, are being offered by the community. This increases the total package value to $800,000.

The community currently is suffering from the combination of disproportionately high fares, and inadequate air service access to key population and commercial centers in the Northeast. The result is substantial amounts of passenger traffic generated in the region - estimated at over 45% - are being forced to drive to other airports. This is not only affecting existing traffic levels at VPS, but is concurrently having a negative effect on the local economy.

By: Okaloosa Regional Airport, Jerry Sealy, 850-651-7160


Proposal of Panama City-Bay County Airport - Panama City, Florida - Bookmarked

The Panama City - Bay County Airport & Industrial District, the Panama City - Bay County business community which includes the Regional Airport Commerce Council herein requests a $1,000,000 grant under the terms of The Small Community Air Service Development Program. The $1,000,000 requested federal money is being matched by a Public\Private contribution of $529,543 or 53% of the federal funds requested.

Based on extensive market research, leakage surveys, and significant community input, the region served by the Panama City - Bay County International Airport has a critical economic need for additional competitive access to air service to points to the southeast and southwestern United States.

The proposal seeks to improve air service to and from the Panama City region by requesting a revenue guarantee, marketing assistance, and start-up cost relief for three daily regional jet flights to new destination hubs in the Southeastern U.S. (Charlotte) or to the Southwestern U.S. (Dallas and Houston).


Proposal of St. Lucie County Board of Count Commissioners - St. Lucie County, Florida - Bookmarked | As Revised | Word | As Revised

SLCIA is one of the busiest general aviation airports in the state. However, there is now a distinct business and community-driven need to define the possibilities and the future of commercial air service in St. Lucie County. With the area marketing itself as the “Research Coast”, commercial aircraft is crucial to the County’s quest to lure high-tech and biotech companies, according to Larry Pelton, president of the Economic Development Council of St. Lucie County. The need may be for connecting service to larger airports and for commuting service around the state.

A primary goal of the SLCIA is to develop and implement effective programs aimed at enhancing the quality and mix of air service to the region. A key element of this effort is the generation and development of credible data that can be used to evaluate current service levels and identify opportunities for improvement.

SLCIA is eligible under this funding opportunity. It is smaller than a small airport hub, is believed to have insufficient air service and is under business and community pressure to improve/establish service to its potential catchment area customers. SLCIA services a community that does not currently have commercial air service, but has met or would be able to meet in a reasonable period all necessary requirements of the Federal Aviation Administration for the type of service/study involved in their grant proposal.

Approximately $195,000 funding is needed to perform a comprehensive study that is expected to provide valuable data regarding the demand and viability of establishing select commercial passenger flights to and from the St. Lucie County Airport. A qualified consultant would be hired to conduct the study, to survey the target community and develop a marketing plan.


Proposal of City of Tallahassee - Tallahassee, Florida - Bookmarked

Tallahassee’s proposal aims to reverse a serious downturn in traffic. The goal of the program for which Tallahassee requests funding is therefore to attract new nonstop hub service for markets identified in the airport’s strategic plan, specifically (in order of priority):

  • Washington, DC (United Express to Dulles)
  • New York (Continental Express to Newark or Delta Express to JFK)
  • Philadelphia (US Airways Express)
  • Dallas/Ft. Worth (American Eagle)

The program will accomplish its goal by reducing the financial risks that air carriers face when adding new air service. Based on conversations with the potential air carriers, we know that incumbent carriers face slightly different risks than new entrants. Consequently, we intend to use the program funds as a risk-offset matched to the carrier’s needs. The funds will be used as a risk offset either by 1) offsetting operating costs such as ground handling or 2) compensating for unmet revenue goals and, in either case, for marketing, operational assistance and/or rebate or waiver of airport rates and charges.



Proposal of Columbus Metropolitan Airport Coalition - Columbus, Georgia - Bookmarked

Our application to DOT requests that a grant of $650,000 be made available to assist in the funding of a new Columbus Air Service Strategic Action Plan. This grant, combined with $250,000 in funding from the Greater Columbus Georgia Chamber of Commerce would be utilized to address the alarming downward trend in air service at CSG.

In order to address this situation, the Coalition has determined that the best way to move to its air service development issues to the next level is to develop a means of removing some of the risk of entering the market at Columbus.


August 17, 2007

Withdrawal of Application - Columbus, GA

It is with regret that the Columbus Airport Commission must request the withdrawal of the application of the Columbus Metropolitan Airport Coalition's 2007 SCASDP Proposal for a DOT Small Community Air Service Development Program Grant.

Unfortunately, due to circumstances beyond the control of the Columbus Airport Commission, as a public sponsor of the grant application, the Commission is unable to ensure the local match funding from the private sector set forth in our proposal.

By: Columbus Airport Commission, Mark Oropeza, 706-324-2449


Proposal of Rockford International Airport - Chicago, Illinois - Bookmarked

RFD is requesting financial assistance to forge a partnership between the regional community that owns and operates RFD and an airline or charter operator to launch new services/routes for purposes of proving markets and accelerating the discovery of RFD as a viable alternative for the airline industry and air service market area. Additional destinations are sought to enhance the utilization of current facilities and to also help alleviate some of the local traffic that “leaks” to the Chicago Airport System. With a lot of potential but few air carriers interested in making a “risky” business decision to start service in unproved markets the Airport Authority began to investigate potential partners in an innovative program called “Charters for Starters.”


Proposal of Greater Peoria Regional Airport - Peoria, Illinois - Bookmarked

The Airport Authority and its public/private partners request a $800,000 grant under the terms of The Small Community Air Service Development Program to attempt to secure competitive air service to a new hub destination within the United States. Based on our current understanding of our community's air service needs and the current competitive state of airlines and their air service priorities, these destinations have been targeted for increased service.

The $800,000 of requested federal money is being matched by a Public/Private contribution of $350,000 or 44% of the federal funds requested. Through numerous discussions that the Greater Peoria Airport Authority has had with potential airlines for this Small Community Air Service Development Program, the Authority and the airlines have identified three major cost factors that weigh heavy in their decision to serve Peoria. They are: station start up costs, first year airport operating costs and public awareness costs (advertising and marketing). These airlines believe that they can be profitable in Peoria over time. However, the start up period of the first 24 months is critical to their long-term success. The Small Community Air Service Development Program will allow us to help share in these initial start up risks in a manner that would not be possible if not for this program.

We are asking the Department to help Peoria and our airline partners to get over these critical hurdles. The $800,000 grant request will be utilized to cover the new airline's station start-up costs. As part of our private partnership commitment, the new service will be supported with $100,000 of marketing funds and $100,000 of in-kind marketing/advertising in the first year of service and $150,000 to off set airline start-up costs.



Proposal of Fort Wayne-Allen County Airport Authority - Ft. Wayne, Indiana - Bookmarked

Fort Wayne International Airport, which is operated by the Fort Wayne-Allen County Airport Authority, qualifies for and is in need of grant assistance to support an initiative aimed at increasing passenger traffic. This initiative is designed to make FWA more competitive to other area airports, by offering incentives that will reduce passenger travel costs on airlines which provide service at Fort Wayne International and will help to reduce ‘‘leakage’’ to other airports in the region.

There are six competing airports within a 125 mile distance from Fort Wayne. South Bend is 77 miles northwest, Kalamazoo is 115 miles northwest, Detroit is 125 miles northeast, Toledo is 84 miles northeast, Dayton is 90 miles southeast and Indianapolis is 104 miles southwest. Gary and Chicago Midway are a little over 125 miles northwest. Of these airports five enjoy some level of service from a low cost carrier, but the most significant beneficiary of the current traffic diversion is Indianapolis, due mainly to the lower fares and non stop flights that are offered.

The success of this program will depend to a large degree on the retention by the airport of the true local area passenger, and is the basis for Fort Wayne International’s request. The following information will illustrate the qualification and need of Fort Wayne International Airport to receive grant money as described in the Small Community Air Service Development Program, Docket OST-2007-27370.


Proposal of Terre Haute International Airport - Terre Haute, Indiana - Bookmarked

The Terre Haute International Airport is seeking its first commercial airline service since 1999. The Airport serves a region in west-central Indiana and east-central Illinois that is home to more than 350,000 people, yet has been without commercial air service for the last eight years. The Airport has come to an agreement with Big Sky Airlines to launch non-stop flights to Delta’s Cincinnati hub, to connect with Delta flights to and from cities all over the world. The Airport is requesting a Small Community Air Service Development Grant to provide start-up cost offsets, revenue guarantees, and marketing help during the first year of the new service, in order to get it off to a successful start. The Airport and Big Sky agree that if Cincinnati service proves successful, Big Sky could then add service to Chicago’s Midway Airport within one year.



Proposal of Southeast Iowa Regional Airport Authority - Burlington, Iowa - Bookmarked

The focus of this proposal is to study the underutilization of the existing commercial air service by potential passengers in the Southeast Iowa region and to develop and implement a strategy to capture these potential passengers through marketing methods. The funding will be used to develop and deploy an extensive air service marketing and promotion program that will reintroduce air service to current Southeast Iowa passengers, as well as target potential passengers. This program will be very aggressive and last for a duration of two years.

The proposal requests $140,000 in grant funds through the Small Community Air Service Development Program. This funding will be matched by a total of $45,000 in local funds and $15,000 of in-kind contributions.


Proposal of Dubuque Regional Airport - Dubuque, Iowa - Bookmarked

As the dynamics of air service have changed in the last few years, Dubuque has seen diminished capacity losing two carriers since the fall of 2001. A recent passenger leakage study conducted by Sixel Consulting Group states that Dubuque is losing 66% of our passenger market to outlying airports. While Dubuque has faced decreasing service, the surrounding airports stepped up marketing efforts dedicating both personnel and dollars to target Dubuque’s under-served air service needs.

We feel that comprehensive air service studies, education and navigational ease of information due to an under-utilized website can assist in decreasing the amount of loss in our passenger market.


Proposal of Sioux Gateway Airport/Col. Bud Day Field - Sioux City, Iowa - Bookmarked

Motion for Confidential Treatment

The City of Sioux City, the airport sponsor, is requesting $300,000 in federal assistance to implement a $1,355,990 air service initiative. With existing service limited to Northwest Airlines’ Minneapolis-St. Paul International airport, departures and available seats declining, high average fares, and a significant number of catchment area travelers diverting to alternate airports, the Action Plan will address many of the issues in the Sioux City market. Over the past three years, members of the public-private partnership have completed extensive analysis on western hub service including Delta Air Lines’ service to Salt Lake City, Frontier Airlines’ service to Denver, and United Airlines’ service to Denver. These analyses were not only positive, but carriers have shown strong interest in serving the market



Proposal of Salina Airport Authority / Metropolitan Topeka Airport Authority - Salina/Topeka, Kansas - Bookmarked

Working together as a consortium, the Salina Airport Authority and Forbes Field Airport in Topeka seek new, non-stop service through the heart of Kansas, anchored in the east in St. Louis, and in the west in Denver. Salina and Topeka intend to recruit Great Lakes Airlines to provide two services a day, in each direction, on the following routing: St. Louis – Topeka – Salina – Denver, and reverse. Salina is currently underserved, with just three daily flights to Kansas City, operated through Manhattan, and no real connection opportunities to the west coast. At the same time, Topeka is served only by Allegiant Air, to Las Vegas, with no real connection opportunities to any other national markets. New Great Lakes service to St. Louis would provide connections to the eastern half of the US on American Airlines, while new service to Denver would provide connections to the western half of the US on both United and Frontier. Additionally, non-stop service between Topeka and Salina would give local businesses a quick option to travel between the two cities, instead of the drive along Interstate 70. This proposal solves the air service crisis involving all of central Kansas by providing excellent connecting opportunities in the region’s top two cities, and a connection between those cities themselves. This application will work in coordination with Salina’s existing Essential Air Service designation, as the community will seek to apply EAS funds to the Denver-Salina segment.

EAS at Salina - OST-2002-11376


Proposal of City of Wichita - Wichita, Kansas

Wichita has struggled for years to compete with neighboring states in providing convenient and affordable air service, and its economic development opportunities have been hindered. Companies such as Rent-A-Center and Pizza Hut moved their corporate headquarters out of Wichita, citing high airfares as the reason. In order for Kansas businesses, its economy, trade, commerce and tourism to compete globally, it is essential that Wichita Mid-Continent Airport offer air service that competes with alternate levels of air service within its region and with similar communities on the national level.

Although Wichita has been aggressive and innovative in their air service development efforts, Wichita has struggled to sustain low-fare service. Whenever a low-fare airline has entered the market, the legacy carriers have lowered their fares, added frequency, and/or increased aircraft size, in order to compete. Passengers are split between the airlines, resulting in less revenue for the airlines yet costs remain high. The low-fare airline is unable to sustain the losses and leaves the market, causing fares to increase. Larger cities are able to attract enough passengers to support both the legacy carriers and the low-fare carriers.

Through this application, the Wichita Airport Authority is requesting a $500,000 grant to enable us to provide above and below-wing ground handling services for existing and potential airlines. This is being matched by a public/private partnership contribution of $50,000 or 10% of the requested Federal funds. These services would be provided by the fixed-base operators on the airport and would lower the airlines' operating costs at Mid-Continent Airport. Lower costs will be beneficial in attracting other carriers and adding new destinations to Mid-Continent.



Proposal of Bowling Green - Warren County Regional Airport - Bowling Green, Kentucky

Our request is for a grant in the amount of $185,000. The grant will be used to perform studies for the determination of potential air service to and from our area, as well as, to develop a marketing strategy for this plan. We will also be. requesting that the local and state governments subsidize a portion of this project. The amount we will be requesting from these bodies of government is $15,000.00 for a combined total of $200,000.00.

The Bowling Green-Warren County area is located in south central Kentucky, an area which has been experiencing tremendous growth for some time. Our airport is centrally located within the state and is adjacent to Interstate 65, as well as the CSX railway system. Western Kentucky University, with annual enrollment over 17,000, is also located in Bowling Green. WKU’s Athletic Department generates numerous flights to and from Bowling Green-Warren County Regional Airport each year. Also, many students have expressed an interest in having the capability to utilize passenger services to commute to and from their hometowns.


Proposal of Elizabethtown Airport Board - Elizabethtown, Kentucky - Bookmarked

The City of Elizabethtown is prepared to match our grant request with $16,500 of local funding. This match is in cash and is not in-kind services.

The City of Elizabethtown along with the Elizabethtown Airport Board began an intensive, multi-step process to re-establish commercial airline service at the Elizabethtown Regional Airport in 2005. This grant request is but one of several things that our community is supporting to re-establish service. Elizabethtown is a major regional center for education, employment, health care and retail shopping, and the city sits at the center of a dynamic 24 county air service region which includes Ft. Knox. The grant that we are requesting will significantly assist our efforts to re-establish service.

May 16, 2007

City of Elizabethtown Completed SF424

The City of Elizabethtown has submitted a Small Community Air Service Development grant request as sponsor for the Elizabethtown Airport Board. The initial grant application did not contain a completed for SF424. We were told to submit that form via the grants.gov web site. After completing registration, we discovered the SF424 was not available online for the specific grant which we were applying.

By: City of Elizabethtown Finance Director, Stephen Park, 270-765-8121


Proposal of Lexington-Fayette Urban County Airport Board - Lexington, Kentucky - Bookmarked

Blue Grass Airport and the community of Lexington request $600,000 in grant funds for the purpose of supporting the introduction of low fare airline service at Lexington. The community of Lexington will contribute $150,000 in local funds for total cash funding of $750,000.

This total funding package of $750,000 will be used to offer risk reduction funds and marketing funds to recruit, support, and successfully establish low fare airline service. The primary recruitment targets for this proposal are AirTran Airways with service to Baltimore and JetBlue Airlines with service to New York Kennedy. Service from other low fare airlines, or new entrants like SkyBus would be considered if a new service agreement could not be reached with either primary recruitment target.


Consortium Proposal of Mid-Continent EAS Community Alliance (Owensboro, KY - Cape Giradeau, MO - Jackson, TN) - Bookmarked

As a result of suspension of operations by RegionsAir arid the extended period that Alliance members have been without scheduled air service, the communities of Owensboro, Jackson, and Cape Girardeau are facing a monumental challenge in their attempt to maintain their respective traffic bases. This challenge is compounded by typical EAS funding formulas that allocate only $5,000 per airport, per year for local marketing expenditures. Clearly, given the unique and exceptional circumstances at the impacted airports, this amount of money is insufficient.

To meet the challenge, the Alliance member communities propose to implement a coordinated, multilayered and aggressive marketing campaign that re‑introduces and ensures the sustained viability of scheduled air service at the Alliance member airports. This is particularly critical to the Alliance members of Owensboro and Jackson, which as the Department has noted, are precariously close to exceeding the $200 subsidy‑per‑passenger cap.

EAS at Owensboro - OST-2000-7855

http://www.owb.net/ - Owensboro


Proposal of Shreveport Airport Authority - Shreveport, Louisiana

The Shreveport Airport Authority respectfully submits its application for a grant under the Small Community Air Service Development Program in the amount of $500,000 for risk abatement funds.

This application is based on an analysis of airline service needs for Shreveport Regional Airport and the deficiencies that currently exist in the Airport's service pattern, and the need for risk abatement funds to support airlines in the startup phase of new service at SHV.

The Shreveport Airport Authority's goal for the Department of Transportation's Small Community Air Service Grant is to attract severely needed new westbound hub service. These funds will be used for service - either from a new carrier, or from a carrier currently providing service in other markets.



Proposal of Augusta State Airport - Augusta, Maine - Bookmarked

The Augusta State Airport's main objective is to utilize the Small Community Air Service Development Grant to increase current enplanements from 5500 to 10,000 per year. We are confident we can accomplish this within 24 months by developing a thorough market analysis using focus groups and area surveys then combing this with an aggressive marketing campaign.


Proposal of Hagerstown Regional Airport - Hagerstown, Maryland - Bookmarked

Hagerstown Regional Airport is requesting a Small Community Air Service Development Grant to promote the airport in its market area. For the past four years airfield operations have been impacted by the airport’s main runway improvement project. HGR is anticipating completion of runway expansion in November 2007.

During this time of construction the airport was not up to full potential and its commercial service lost visibility in the community. With the new runway and accompanying improvements near completion the airport now needs to promote the use of the airport. Grant funds will be used to market the airport to the community.

The airport marketing plan will run over three years and funding is projected to be $450,000, including a $300,000 grant from the Small Community Air Service Development Grant Program, plus $150,000 in airport, state, and community support.

EAS at Hagerstown - OST-2006-25228


Proposal of Wicomico County Airport Commission and Salisbury-Ocean City-Wicomico Regional Airport - Salisbury, Maryland - Bookmarked

SBY is requesting a $1,070,000 grant to initiate new direct air service between SBY and Baltimore/Washington International Airport. The grant funds, in combination with additional state and local contributions, will be used to provide residents and visitors to the SBY market area with a direct link to the significant low-fare services at BWI, and to broaden the awareness of SBY's operations and service offerings to the residents and visitors of the Salisbury -Ocean City region.



Proposal of Nantucket Memorial Airport - Nantucket, Massachusetts - Bookmarked

Nantucket Memorial Airport is pleased to submit this proposal on behalf of the Town and Island of Nantucket, Massachusetts to obtain $225,000 under the Small Community Air Service Development Program. The federal grant would be matched by an aggregate contribution of $25,000 from the Nantucket Memorial Airport. The funds would be used to implement an Air Service Evaluation Study to determine the feasibility of establishing a year round higher capacity aircraft service on the Nantucket-Boston and the Nantucket-Providence routes now served by nine-seat Cessna 402 aircraft.



Proposal of Delta County Board of Commissioners - Escanaba, Michigan - Bookmarked

Grant Proposal Amount: $200,000.

  1. Develop and expand a campaign that will market the newly selected EAS air carrier for Delta County Airport with its quality air service and customer convenience for the next 2 years.
  2. Stop passenger leakage through an aggressive marketing campaign to publicize and market Delta County’s air service at a better dollar value by flying locally rather than driving to Green Bay or Marquette.
  3. Increase the passenger market to be able to work with the carrier for improved service to other requested destinations.

EAS at Escanaba - OST-2001-10643


Proposal of Gogebic-Iron County Airport - Ironwood, Michigan - Bookmarked

In June, 2007 the Gogebic-Iron County Airport will be making a transition from our current Essential Air Service air carrier, Midwest Connect, to Great Lakes Aviation. Over the past three years of service, Midwest Connect Airlines has increased the ridership levels with their exceptional customer service practices and the aggressive marketing program administrated through the Gogebic-Iron County Airport and the State of Michigan via advertising grant money. Currently the State of Michigan is unable to continue their advertising grant program and the Gogebic-Iron County Airport administration is extremely aware of the importance of marketing.

With the commencement of this new air carrier service into this region of the Western Upper Peninsula of Michigan and Northern Wisconsin, a proper and aggressive marketing campaign needs to be implemented in order to continue our passenger growth trends.

The estimated funding requirement to implement this highly aggressive public awareness advertising campaign is $150,000. The amount that is requested is $135,000 through the grant and $15,000 pledged through local support. The local contributions have been acquired through municipalities, local businesses, and individuals.

EAS at Ironwood - OST-1997-3153


Proposal of County of Kalamazoo Aeronautics Board of Trustees - Kalamazoo/Battle Creek International Airport - Kalamazoo, Michigan - Bookmarked

Grant funding for AZO’s project will provide an unprecedented opportunity to bring improved access to the national air transportation system to more than 1 million people. Increasing the number of non-stop flight options to high-demand destination hubs will bring the material benefits of efficient and cost-effective transportation to a broad section of the traveling public including businesses, educational institutions, leisure travelers, and regional tourism agencies.

AZO has secured total cash commitments of $250,000, which coupled with an airport in-kind trading commitment of $125,000, and broadcast in-kind contribution of $35,000, provides 40 percent of the total funding required to complete this project. Furthermore, the plan laid forth by AZO only requires a one-time grant award to secure air service enhancements that have lasting benefits. The airport has conducted a comprehensive study, resulting in pro forma projections that predict that the new route will be self-sustaining on a long-term basis.

The Small Community Air Service Development Program provides the ideal means for assisting small communities with limited resources develop comprehensive air service advancements that benefit all sectors of the traveling public. We humbly request that the Department of Transportation award the Kalamazoo/Battle Creek International Airport $500,000 for the purpose of collaborating with Frontier Airline to introduce new non-stop service from Kalamazoo to Denver, to provide efficient and economical access to the national air transportation system for the people of Southwest Michigan.


Proposal of MBS International Airport - Midland/Bay County/Saginaw, Michigan - Bookmarked

With this proposal, MBS International Airport is requesting a program grant in the amount of $500,000. This will be matched by local funds in the amount of $100,000, plus a potential additional in-kind support from the community at a level to be determined.

The total funding of $600,000 will be applied to a program to provide risk-reduction and in the form of revenue guarantees and marketing to support a third carrier in the MBS market. In scope and in application, the program is envisioned to be simliar to that implemented successfully with a SCASD grant in 2003 at Kalamazoo/Battle Creek.


Proposal of Cherry Capital Airport - Traverse City, Michigan - Bookmarked

The Cherty Capital Airport is requesting a grant in the amount of $500,000 to attract and support the establishment of new year-round air service that will address both capacity deficiencies and high fares at TVC.

The Airport requests flexibility in this grant, with the ability to review three carriers, each of which has the ability to address this air service challenge. The airport has identified new year-round service by Midwest Airlines to Milwaukee, Continental Airlines to Cleveland, or Delta Air Lines adding fall, winter, and spring service to Cincinnati/Northern Kentucky International.

This service is urgently needed to counter significant declines in capacity and increasing fare levels. This additional service will increase competition in the Traverse City market, thereby bringing more low-fare seats and overall lower fares to the region. The Cherry Capital Airport will support the Federal grant with a contribution of $100,000 for marketing and promotion and $51,000 in airport landing fee waivers for the new year-round air service.

The combined program funding will be applied as a revenue-guarantee, supported by an aggressive marketing and promotional program to assure that the service reaches economic viability as quickly as possible.



Proposal of Chisholm-Hibbing Airport Authority - Hibbing, Minnesota - Bookmarked

Results from a survey of the region’s businesses conducted by the Area Partnership for Economic Expansion in April 2007 demonstrates a need for on-demand air service.

The airport authority is pursuing a solution for this challenge. The staff have already begun the process of identifying a qualified air charter service provider to be based at the Chisholm-Hibbing Airport. Selection of a provider will be based on a fair and competitive due diligence process, to assure that the region’s business and leisure air transport needs are served by a company with a demonstrated safety and service record that provides air service at reasonable costs.

Funds from the Small Community Air Service Development Program would help the Chisholm Hibbing Airport Authority fill a void in the region’s air service options, thus making air travel more robust throughout the region. In addition, demand for this type of service would significantly expand the airport’s service area. The airport authority has pledged significant in-kind services to demonstrate its commitment to the long-term success of this venture.


Proposal of Duluth International Airport / Duluth, Minnesota - Bookmarked

The Duluth International Airport seeks federal funding to create a new airport position: an air service advocate and sales representative for minority market share airlines serving Duluth. Grant money and local matching contributions will be used over a three-year period to fund this position. Air service development in Duluth is difficult due to the fact that the market is dominated by Northwest Airlines.

When a new entrant carrier enters Duluth, Northwest uses an existing sales force stationed in the community to offer mileage, discounts, and other incentives to persuade local business travelers and travel agents to increase travel on Northwest Airlines. History has proven that these tactics are only used by Northwest when new carriers enter the market. The goal of this new and innovative grant proposal is to assist new entrant carriers in Duluth by countering the tools readily available to incumbent, dominant airlines working to keep their monopolies in smaller markets, like Duluth in tact. The position will entail working closely with new minority and new entrant airlines to foster area businesses and travel agent relationships in the region and generate local branding for these carriers. This activity will lead to improved sales and corporate contracts that will counter the traditional efforts of the dominant airline. The new air service advocate will perform marketing activities, attend civic functions, conduct presentations and be the presence in the community for the minority and new entrant carriers in Duluth.

The goal is to offset the monopolistic advantage Northwest holds in Duluth by instituting measures that will retain and improve business on existing minority share carriers and lead to additional new entrant airlines at the Duluth International Airport. This will result in an increase in the number of flights, city-pairs and enplanements, and will ultimately lead to more competitive pricing in the community. Together, the Duluth International Airport believes these initiatives will lead to additional air carriers in the market, additional flights, and lower fares for northern Minnesota and northwestern Wisconsin travelers.



Proposal of Golden Triangle Regional Airport - Columbus/Starkville/West Point, Mississippi - Bookmarked

The Golden Triangle Regional Airport, serving Columbus-Starkville-West Point, Mississippi, hereby submits a proposal for a grant of $500,000 under the Small Community Air Service Development Program, with the objective of funding a risk-abatement program to attract a second carrier to the airport.

Because of the new in-migration of business investment in the region, this has developed into an enormous deficiency not only in capacity, but in directionality of service. Westbound-oriented service is now desperately needed to maintain, sustain, and increase the business investment that the region has enjoyed over the past five years.


Proposal of Mid-Delta Regional Airport - Greenville, Mississippi - Bookmarked

The Mid-Delta Regional Airport serves a large area of western Mississippi, eastern Louisiana, and eastern Arkansas. In fact, the 18-county “mid-Delta” region of Mississippi is home to more than 550,000 people, yet is served by just two daily non-stop Northwest Airlink flights to nearby Memphis, Tennessee. Due to the lack of seats available on Greenville air service, and the lack of airline competition, fares are prohibitively high at the Mid-Delta Regional Airport. This proposal will bring Greenville its first true competitive air service. Airport leaders will recruit Delta Air Lines, through a Delta Connection carrier, to launch non-stop service to Delta’s huge Atlanta hub. This will not only provide Greenville area travelers with a second airline from which to choose, but it will also provide one-stop connections to hundreds more destinations than are currently available. Northwest’s hub at Memphis only offers Greenville passengers roughly 60 connecting one-stop city-pairs, whereas the Delta hub at Atlanta would offer more than 200 one-stop city-pairs, with dozens of daily one-stop connections to destinations in Europe and South America, not currently served by the much smaller hub at Memphis.


Proposal of Greenwood-Leflore Airport - Greenwood, Mississippi - Bookmarked

In 2006, the Airport retained Airport Development Group and Tri-Star Marketing Company to develop a "Strategic Business Plan" to determine the potential passenger demand for passenger air service, the demand for air cargo, and the demand for new aviation related business. This Business Plan indicated that based on economic factors and based on passenger bookings in the catchment area, there was sufficient demand to support nonstop service to Atlanta Hartsfield International Airport. Based on the results of the Business Plan, the Airport has started communications with various scheduled passenger airlines and air taxi companies about providing passenger air service. Provine Helicopters, an air taxi carrier located in Greenwood, has expressed interest in providing service from Greenwood to Atlanta to connect to the national air transport system. To support new air service, the airport is seeking money to guarantee flights for the first six months of operation and pay for a local marketing and advertising campaign in the Mississippi Delta. Based on the forecast developed in this proposal, the Airport will need $750,000 as an incentive to support the new air service. Of this total, the sponsors of this proposal will need a $500,000 grant from the DOT and the sponsors of this proposal will provide $100,000 in in-kind contribution, $100,000 in pre-purchased tickets and $50,000 in cash. The timing of the Small Community Air Service Development program for 2007 is perfect since the airport is about to begin its recruiting program.


Proposal of Tunica Airport - Tunica, Mississippi - Bookmarked

Tunica Airport is seeking $925,000.00 in a Small Community Air Service Development Program grant to attach a new carrier through revenue guarantees, operating costs offsets and promoting awareness of the available service both locally and at selected markets nationally. Tunica Airport, a Part 139, Class 1, category III airport, is seeking to replace the limited scheduled air service that was provided to Atlanta, Georgia, by Boston-Maine Airways. d.b.a. Pan Am Clipper Connection with Delta Airlines. Delta’s proposed service is five flights per week flying 50 seat regional jets. The Guaranteed Revenue required by Delta to initiate this service is $2,000,000.00. Besides the Guaranteed Revenue, the Airport would provide above and below wing services, passenger and baggage check-in and security for all Delta operations. In addition, all landing fees, ramp charges and Terminal fees would be waived for the first year of operation.

Due to the current levels of air service currently being provided by public charters and the prior financial support by the gaming industry in Tunica County, it is anticipated that not only would the Guaranteed Revenue be significantly lower than projected by Delta; but, there is sufficient demand to believe that passenger usage would negate any subsidy payments required.



Proposal of City of Kirksville - Kirksville, Missouri - Bookmarked

In this proposal, the City of Kirksville and Kirksville Regional Airport are requesting $30,000 in grant funds. The community will contribute $10,000 in local funds for total cash funding of $40,000. In addition, the community will also assemble a package of in-kind contributions to support advertising and promotion. The City will position itself to provide on-going support of $10,000 per year after the grant period has ended to guarantee and maintain sustainability.

The City of Kirksville recognizes the immense value of having eligibility in the Essential Air Service program. The City is determined to make every effort to improve its enplanements and reduce the amount of EAS subsidy needed to support local air service.

Circumstances have not been kind to Kirksville’s air service in recent years, as we have documented. However, we believe we are on the right track to be able to make long-lasting improvements. This one-time funding tool will help solidify our position and bring the increases in ridership that we so desperately need to gain and maintain.

EAS at Kirksville - OST-1997-2515


Consortium Proposal of Mid-Continent EAS Community Alliance (Owensboro, KY - Cape Giradeau, MO - Jackson, TN) - Bookmarked

As a result of suspension of operations by RegionsAir arid the extended period that Alliance members have been without scheduled air service, the communities of Owensboro, Jackson, and Cape Girardeau are facing a monumental challenge in their attempt to maintain their respective traffic bases. This challenge is compounded by typical EAS funding formulas that allocate only $5,000 per airport, per year for local marketing expenditures. Clearly, given the unique and exceptional circumstances at the impacted airports, this amount of money is insufficient.

To meet the challenge, the Alliance member communities propose to implement a coordinated, multilayered and aggressive marketing campaign that re‑introduces and ensures the sustained viability of scheduled air service at the Alliance member airports. This is particularly critical to the Alliance members of Owensboro and Jackson, which as the Department has noted, are precariously close to exceeding the $200 subsidy‑per‑passenger cap.

EAS at Cape Girardeau - OST-1996-1559

http://www.capeairport.com/ - Cape Girardeau


Proposal of Helena Regional Airport - Helena, Montana - Bookmarked

The Helena Regional Airport seeks non-stop service to Denver International Airport. Currently, Helena has service to two regional airports, Billings and Missoula, Montana, and three hub airports, Minneapolis/St. Paul, Salt Lake City, and Seattle. Helena has insufficient air service within the intermountain west. The Airport Authority seeks to add service, on United, through Denver, to better link the region with the rest of the country. In order to facilitate new service, the Airport plans to offer revenue guarantees and marketing assistance, to the new carrier on the route.



Proposal of Kearney Regional Airport - Kearney, Nebraska - Bookmarked

The Kearney Regional Airport in partnership with Great Lakes Aviation, Inc., Kearney’s Air Transportation Committee, the Kearney Area Chamber of Commerce, Buffalo County Economic Development Council, Airport Advisory Board, and the Kearney Visitors Bureau is respectfully requesting $240,000 under the Small Community Air Service Development Program. This will be matched by $25,000 in cash and $12,000 in in-kind service committed by the City of Kearney, the Chamber of Commerce and the Visitors’ Bureau.

The total project cost of $277,000 will be used to implement a comprehensive marketing and advertising campaign, “Make it Simple to Fly: Simply Fly Kearney.” The proposed marketing campaign was developed to market the Kearney Regional Airport and its convenient air service and friendly customer service, to advertise the recent addition of larger aircraft with amenities, and to create and maintain a state-of-the-art website. The Airport has the capacity necessary to achieve goal of 10,000 annual enplanements or more, but lacks the opportunity to market the benefits of utilizing the Kearney Regional Airport to the flying public.

EAS at Kearney - OST-1996-1715



Proposal of Elko Regional Airport - Elko, Nevada - Bookmarked

The Airport is requesting a grant in the amount of $200,000, matched by $20,000 from the community, for a highly-focused public-awareness and education program to build ridership at Elko Regional Airport. Again, this program is intended to mirror similar ones elsewhere in the nation that have used SCASD grants to successfully increase traffic.

The Airport believes that with aggressive community awareness efforts made possible by this grant, it can achieve two critical goals:

  • Increase local ridership on existing service, thereby prompting incumbent carriers to increase capacity; and
  • Build ridership to attract additional service, including locally-needed service to Reno.


New Jersey

Proposal of South Jersey Transportation Authority - Atlantic City, New Jersey - Bookmarked

The South Jersey Transportation Authority is requesting a Small Community Air Service Grant of $400,000 for the purpose of dramatically expanding the reach and depth of the marketing and promotional program that supports air service at Atlantic City International. The Grant would be matched by $100,000 in SJTA funds.

The $500,000 total Grant funding will enable the Authority and the Airport to re-position ACY as the gateway for the fast-growing Jersey shore. Furthermore, it will also greatly expand and improve the Airport's continuing efforts, via airport marketing and promotion, to draw regional air travel demand from congested Philadelphia and Newark to convenient and easy-to-access Atlantic City International.

The South Jersey Transportation Authority believes that Atlantic City International Airport is on the cusp of a huge expansion of air service. This expansion will finally establish Atlantic City International as a major reliever airport for Philadelphia and Newark, where terminal, runway, and air space congestion continues to grow.


New Mexico

Community Proposal of Southeast New Mexico Air Service Coalition, City of Roswell, New Mexico - Bookmarked

All the funds will be used for marketing, promotion, sponsorship and advertising of the American Eagle service to DFW. An outline of the marketing plan is located in Exhibit C; in addition, there will be opportunities to develop cooperative marketing programs with Coalition members in order leverage available funds. The Coalition requests $400,000 from the Small Community Air Service Development program which will be spent over a two year period. The City of Roswell, as sponsor of the proposal, will be responsible for the management of the funds and will work closely with the Chaves County Development Foundation to execute the marketing and advertising plan.


North Carolina

Proposal of Craven Regional Airport - New Bern, North Carolina - Bookmarked

Craven Regional Airport, sponsored by the Craven Regional Airport Authority, herein applies for $400,000 in funding from the Small Community Air Service Development Grant Program. Combined with a local commitment comprising $100,000 in cash, "in-kind" funding of approximately $20,000 and $50,000 in marketing support for new air service, $570,000 will be used to support the Craven Regional Airport's efforts in securing new non-stop service to Atlanta, GA with Delta Air Lines.

While the Craven Regional Airport currently enjoys good air service to Charlotte, NC, the Authority and the community believe that a cogent and compelling need exists for additional air service that can only be obtained through a grant pursuant to the Small Community Air Service Development Program. The Authority has spent considerable effort toward developing additional air service at the Airport and the award of this grant will allow the users of the Airport better access to the national air transportation system.

The Grant, combined with the resources of the local community, is a key factor to attracting and retaining viable, profitable air service to and from the Delta Air Lines hub in Atlanta, GA. The Authority believes that it offers a strong economic case to Delta Air Lines and with the support of the Grant will be able to provide the users of the Airport an alternative to driving 128 miles to the Raleigh Durham International Airport for more competitive offerings.


Consortium Proposal of North Carolina Department of Transportation - Eleven North Carolina Non-Hub Airports - Bookmarked

The State is acting on behalf of a consortium of 11 small North Carolina communities and their airports. We have come to the conclusion that the most effective way to address the needs of smaller communities is with the on-demand model. The thrust of this grant application is to educate the residents of our coalition of communities regarding the usefulness and availability of on-demand air service from their local airports. The concept of the on-demand air taxi is not new, but significant developments over the past few years have made the model more efficient and we believe the time is now to help bring this service to the attention of more potential users. These coalition members constitute an excellent cross section of vibrant communities from across the state that need access to air service but do not have the population base to support scheduled service. We believe that this application follows both the spirit and intent of the legislation that established the Small Community Air Service Development Program.

For this grant application we are working with three operators who are currently using modern general aviation aircraft to provide this on-demand service. This grant will help us develop greater awareness of the availability of this service in the area by identifying potential passengers, helping educate them on the benefits of using the service, and developing marketing materials that can be used to help attract more users. In addition, we see a need for a centralized reservation system that can link to the providers of service, so customers will find it as easy and convenient to reserve aircraft for their flights as they find it to book airline service from scheduled air carrier airports.

http://www.discoverourtown.com/NC/local-104055.html - Andrews/Murphy
http://www.rudd.com/things/airport.html - Brunswick County
http://www.co.currituck.nc.us/citizens/transportation/citizens_transportation_airport.aspx - Currituck County
http://www.co.dare.nc.us/airport/ - Dare County
http://www.duplincounty.org/airhis.htm - Duplin County
http://www.chowancounty-nc.gov/index.asp?Type=B_BASIC&SEC=%7B36AA6E64-CA2A-4C96-AE5F-4E17204B4EEF%7D - Endenton
http://www.ecgairport.com/ - Elizabeth City
http://www.rockymountchamber.org/transportation.html - Rocky Mount/Wilson
http://www.smyrnaairport.com/ - Rutherford County
http://en.wikipedia.org/wiki/Sampson_County_Airport - Sampson County
http://www.wilkescounty.net/airport/airport.asp - Wilkes County

North Dakota

Proposal of City of Minot - Minot, North Dakota - Bookmarked

Motion for Confidential Treatment

The City of Minot, the airport sponsor, is requesting $500,000 in federal assistance to facilitate the implementation of a $887,040 air service improvement initiative. The project goals are to improve air service to a broad section of the Minot community traveling to the western US, mitigate the need to drive long distances to access air service and competitive fares to these markets, and improve local access to the national air transportation system.

The Action Plan to accomplish these goals is to initiate nonstop westbound service from Minot International Airport. Current Northwest Airlines’ service over Minneapolis provides excellent connecting opportunities to the eastern US but circuitous connections to the west resulting in high airfares. Competition and an alternative to Northwest Airlines’ Minneapolis service through a westbound hub will provide more options to the local air traveler, reduce airfares in western markets, and decrease the need to drive to surrounding airports for air service.

With limited options and no competition, Minot’s community pays unreasonably high airfares. Minot’s average airfares are $79 higher than the US national average and over $20 higher than the North Dakota and Montana average. Much of the airfare disparity is to western destinations, ranging from $12 to $136 higher than Bismarck to Minot’s top 11 western destinations. The air service initiative proposed will lower airfares in the Minot market by providing more efficient routing and will increase departures and available seats at the Airport, specifically to western destinations.



Proposal of Ohio University Airport - Athens, Ohio - Bookmarked

While the University is the largest employer in the county, several businesses thrive in the area, including Diagnostic Hybrids and Rocky Boots. These businesses and others require adequate, convenient air service to reach their markets and suppliers. For many years, Parkersburg, West Virginia – just 38 miles away -- served as an important air service resource. However, in 2006 the airport lost its service to Pittsburgh and, although the service is being re-initiated this May, Pittsburgh is no longer a US Airways hub and is thus no longer as efficient a means for reaching the main business markets important to the Athens community. Many travelers now drive at least two hours to airports in either Columbus or Cincinnati for flights to and from these key markets.

Ohio University Airport believes it maybe able to enhance its role as an air service resource to the community through new models of on-demand air service, including very light jets with firms such as DayJet and usage-only models such as that offered by SATSair. Moreover, there may be the possibility for UNI to serve as a local base for one or more providers.

Our community believes this is a more efficient use of funds than simply asking for risk offset assistance for these carriers because the true opportunity must be understood before one can evaluate any risks. Consequently, the program will fund an important knowledge-gathering effort that will help assure that any future on-demand service UNI obtains is the one that best matches the community’s needs and thereby provides a significant improvement to the overall air transport system.

Consequently, the Airport’s proposal requests funding for this comprehensive study and the Airport owner, Ohio University, is providing $7,500 of funds to the program. The importance of this effort has been recognized by the Athens Area Chamber of Commerce which is joining in a public/private partnership with us by contributing in-kind support.


Proposal of Youngstown-Warren Regional Airport - Youngstown, Ohio - Bookmarked

The Youngstown-Warren Regional Airport is requesting a $800,000 SCASDP grant to initiate a 50-90 seat regional jet service at YNG, by developing a revenue guarantee program to support the initial phase (first 12 months) of air service. This revenue guarantee program will be designed to attract non-stop air service to the hub of a major U.S. airline in the Midwest or Southern US., by minimizing the initial business risk that a carrier will face in entering a new market, rather than simply subsidizing air service that is unlikely to be self-sufficient. Thus, the revenue guarantee will be a short-term program tailored to launch the new regional jet service by mitigating the airline’s initial risk.



Proposal of City of Klamath Falls - Klamath Falls, Oregon

The City of Klamath Falls, the airport sponsor, is requesting $400,000 in federal assistance to facilitate the implementation of a $930,000 air service improvement initiative that benefits a rural region of southern Oregon and northern California. The project goal is to improve air service to a broad section of Klamath Falls' traveling community, mitigate the need to drive long distances to access acceptable air service, and provide better local access to the air transportation system. The plan is to accomplish this goal by initiating SkyWest Airlines' service from Klamath Falls Airport to San Francisco International Airport with the Embraer 120 aircraft.

The Klamath Falls community served by the Klamath Falls Airport is overpriced compared to similar communities and is underserved to top destination markets. Approximately 31 percent of air travelers in the Klamath Falls Airport catchment area are destined to the southern states of Arizona, California, Hawaii, and Nevada. The only available air service is connecting service via Portland International Airport where air travelers must fly a circuitous routing by going north to connect to air service to the south. This is further reinforced by recent passenger analyses which indicate that approximately 52 percent of the Klamath Falls Airport catchment area drive to other airports in search of better service and lower fares. These studies clearly identify the southern markets as being underserved and in need of nonstop and/or direct service between the areas. With circuitous routings and without competing air service options, fares will continue to be inflated compared to other similar markets.

SkyWest Airlines firmly supports the proposed plan. It is anticipated that SkyWest Airlines will implement nonstop service to San Francisco International Airport from Klamath Falls on April 1, 2008. The proposed plan will be completed by March 31, 2009 with ongoing nonstop service to San Francisco. It is estimated that the nonstop service to San Francisco will serve 53,653 origin and destination passengers per year.


Consortium Proposal of Newport Municipal Airport and Port of Astoria Regional Airport - Newport/Astoria, Oregon - Bookmarked

The total funding request from the USDOT in this applicatoin is $1,684,000.

A contract will be entered into with Cape Air Airlines to "Wet Lease" aircraft equipment at an hourly rate to support four dady round-trip fllghts from Astoria to Portland, and from Newport to Portland Leased aircraft equipment is measured in "Block Hours," and the Consortium of Astoria and Newport will require a collective total of eght round-trip fllghts per day. This will require a total of 9.86 "Block Hours" of leased equipment time per day or 300 "Block Hours" of leased equipment time per month. The "Wet Lease'' equipment agreement will be at a rate of $585 per hour for up to a three year period, and will include the equipment as well as the airline support services required to bring scheduled air service to Astoria and Newport, Oregon.



Proposal of Lehigh-Northampton Airport Authority - Allentown, Pennsylvania - Bookmarked

The Lehigh-Northampton Airport Authority is the sponsoring government entity for this program. The proposed project involves a variety of incentives to attract airlines to underserved markets that have high prospects of success from the Lehigh Valley International Airport. This would be used to encourage an airline to serve markets that have high fares and which are currently underserved. We are seeking a federal grant under the Department’s program of $500,000 for this project.


Proposal of Wilkes-Barre/Scranton International Airport - Wilkes-Barre/Scranton, Pennsylvania - Bookmarked

With no air carriers operating in some of AVPs top O&D markets, there is a significant gap between the demand for service and the level of service being provided. Past experience in these markets has proven they can be operated successfully and profitably, however, current carriers at AVP have chosen not to seek operating to those markets from AVP.

The results of past efforts utilizing Air Service Development funds have been positive. Northwest Airlink’s nonstop Detroit service continues to provide a good destination to business travelers, with acceptable fares. The Orlando service provided a great level of service for business and leisure travelers, with a very competitive fare structure.

Two low cost carriers - AirTran Airways and City Skies (a new start-up) - have expressed a keen interest in new low cost service at AVP. Two other carriers - Big Sky Airlines and Trans States Airlines - have expressed interest in restoring service to Boston and Pittsburgh from AVP. Wilkes-Barre/Scranton International Airport and its supporting communities have continually been engaged in marketing the airport and look forward to improving the air service with one of the above carriers with the additional support of the DOT Small Community Air Service Development Program.


Consortium Proposal of Pennsylvania Department of Transport Bureau of Aviation - Western Pennsylvania - Bookmarked

The central focus of this Small Community Air Service Development Grant application which covers 5 small communities in Pennsylvania - is to continue the serious air service development work already begun by the Pennsylvania Department of Transportation, Bureau of Aviation. Grant funds would be used to complete local air service demand and planning studies, to work with US Airways to improve connecting opportunities at Pittsburgh, to fund local marketing campaigns, and, if necessary, to pursue alternatives to the Pittsburgh connecting complex for small communities. US Airways has submitted a letter supporting the approach outlined in this application.

The application, which seeks a $400,000 Small Community Air Service Development Grant, is carefully crafted to make use of the Grant to fund only activities at airports that have not previously received Small Community Grants for similar projects and do not have an existing Small Community Grant. To the extent that the Bureau of Aviation conducts research or undertakes any other activities at other small communities not eligible to participate in this consortium, it will use only funding from other non-grant sources.

EAS at Altoona - OST-2002-11446
EAS at Oil City/Franklin - OST-1997-2523
EAS at Johnstown - OST-2002-11451
EAS at Lancaster - OST-2002-14146

http://altoonablaircountyairport.com/index2.html - Altoona
http://www.palmerairport.com/ - Latrobe
http://www.co.venango.pa.us/Airport/ - Oil City/Franklin
http://www.iflypa.com/default.aspx?id=19 - Johnstown
http://www.lancasterairport.com/ - Lancaster

South Carolina

Proposal of Greenville-Spartanburg International Airport - Greenville, South Carolina - Bookmarked

The community experiences high air fares and substantial loss of locally-generated passenger traffic due to lack of competitive lowfare airline service. This situation has become worse in the past two years due to increases in levels of low-fare airline service at Charlotte, North Carolina, and at Atlanta, Georgia.

To address this, the community is seeking a grant in the amount of $800,000 to attract and successfully establish service from a low-fare carrier. The community will provide matching funds in the amount of $200,000 for a total program funding of $1 million.

The main target is Frontier Airlines, which has expressed interest in Deep South markets and whose route network fits well with the needs of the community. However, the airline industry is quite dynamic and as a result, strategies change. As a result, the community wishes the flexibility of recruiting another low-fare airline that will be able to fill the westbound air service deficiency.

By: GSP Air Service Task Force


Proposal of Horry County Department of Airports - Myrtle Beach, South Carolina - Bookmarked

Horry County, owners and operators of Myrtle Beach International Airport, seeks a $625,000 grant to reestablish air service due to the loss of two Low Cost Carriers over the past year. The community has raised an additional $631,000, for a total program value of $1.25 million. The new service program is forecast to bring almost 30,000 new visitors to Myrtle Beach with an economic contribution of $68 million.

MYR will use the Grant to provide a Direct Start-Up Cost Subsidy and Revenue Guarantee, and a marketing person to establish new sustainable air service in three key markets.


South Dakota

Proposal of Watertown Regional Airport - Watertown, South Dakota - Bookmarked

The Watertown Regional Airport seeks to increase enplanements by reallocating available seats “lost” in October 2005 when Pierre was added as a tag behind Watertown’s Minneapolis service, or, barring reallocation of seats, acquire a 3rd frequency as part of Watertown’s next Essential Air Service contract. In addition, consumer awareness in Watertown’s catchment area of the service available via its Essential Air Service route to Minneapolis/St. Paul is essential to increase enplanements.

The Watertown community is experiencing falling enplanements on its 14 flights a week to the Northwest Airlines hub at MSP. In fact, enplanements fell by more than 30% in the last year alone. A major problem has been the move of Mesaba’s connecting tag flight behind Watertown from Aberdeen to Pierre, SD in October of 2005. As Pierre generates much more demand than Aberdeen ever did on the tag flights, the availability of excess capacity on Watertown’s flights to Minneapolis has driven up prices and driven passengers off the local service. Most of these lost travelers are now driving to Sioux Falls to catch flights, with more than 90% of the Airport’s local passengers leaking to other airports in the region. The Airport is seeking grant money to better market the service, so that the community is more aware of the flights offered at the local airport and provide incentives for travelers to use the local airport. The Airport has discussed with Northwest the potential of a third weekday flight timed as a late night / early morning RON (not shared with PIR) and projects that increased enplanements spurred by the marketing program will entice Northwest to increase service on the route to three weekday flights, and two weekend flights, sooner rather than later. The goal of increased enplanements is then achieved through the addition of excess capacity in the market which will encourage Northwest to offer more competitive pricing vis-à-vis Sioux Falls.

OST-2001-10644 - EAS at Watertown



Consortium Proposal of Mid-Continent EAS Community Alliance (Owensboro, KY - Cape Giradeau, MO - Jackson, TN) - Bookmarked

As a result of suspension of operations by RegionsAir arid the extended period that Alliance members have been without scheduled air service, the communities of Owensboro, Jackson, and Cape Girardeau are facing a monumental challenge in their attempt to maintain their respective traffic bases. This challenge is compounded by typical EAS funding formulas that allocate only $5,000 per airport, per year for local marketing expenditures. Clearly, given the unique and exceptional circumstances at the impacted airports, this amount of money is insufficient.

To meet the challenge, the Alliance member communities propose to implement a coordinated, multilayered and aggressive marketing campaign that re‑introduces and ensures the sustained viability of scheduled air service at the Alliance member airports. This is particularly critical to the Alliance members of Owensboro and Jackson, which as the Department has noted, are precariously close to exceeding the $200 subsidy‑per‑passenger cap.

EAS at Jackson - OST-2000-7857

http://www.mklairport.com/ - Jackson

Proposal of Tri-Cities Regional Airport - Tri-Cities, Tennessee/Virginia - Bookmarked

The Tri-Cities region encompasses the cities of Bristol, TN and Bristol, VA; Johnson City, TN and Kingsport, TN, along with many other smaller cities, towns and communities in Northeast Tennessee and Southwest Virginia.

This proposal outlines a new air service development initiative to improve the region's access to the national air transportation system by adding nonstop service to a connecting hub not currently served from TRI. In addition, it is designed to assist the Airport's efforts to add seating capacity to the market that was lost during the past two years due to airline bankruptcies and reorganizations and provide new fare competition.

In this effort to improve air service, Tri-Cities Regional Airport is partnering with The Regional Alliance for Economic Development, a non-profit economic development organization formed to market the region. The Alliance has taken the lead in raising cash pledges from the business community to be used toward the total grant project.



Proposal of City of Killeen - Killeen, Texas - Bookmarked - Missing Page 8

Because of the large military population stationed in the Killeen area and the transient nature of the military in general, a strong, aggressive marketing program is necessary to insure that transient portion of our total population is always aware of the fact that Killeen offers world class airline service without having to travel to Austin or Dallas. Additionally, the Killeen Community is experiencing tremendous population growth. Killeen has been actively working and will continue to work to increase quality diversified commercial air service to meet its ever increasing market need. The Killeen Partnership requires funding to successfully market the airport and work to establish more daily direct flights to more hubs, connecting to highly requested and/or desired destinations. The grant will provide great benefits in the form of better air service for the civilian as well as the military community.


US Virgin Islands

Proposal of Virgin Islands Port Authority - St. Croix, US Virgin Islands - Bookmarked

This application proposes a $1 million airline incentive for local and long distance airline traffic to stimulate traffic. These incentives will be funded $660,000 from the Small Community Air Service Development Program and $340,000 from local (non-airport) funds. The incentive will be used for various inducements to airlines to increase or improve service as more fully described in this application. It is expected that increased airline competition will also drive down fares. We have had preliminary talks with airlines such as American, Delta, and Cape Air and all seem agreeable to talk to us about new or improved service.

The community and government in St. Croix is already accustomed to planning and implementing island-wide advertising, promotion, and development programs to promote St. Croix as a tourist destination through the US. Virgin Islands Department of Tourism and the St. Croix Hotel and Tourism Association; for example, you have probably seen the US. Virgin Islands Department of Tourism's TV, magazine, or newspaper ads. Therefore, this program will be integral to existing programs and administered in a similar fashion to promote effective change. It is anticipated by the end of the incentive period the airlines will be able to continue expanded or improved service on their own, thereby demonstrating their effectiveness.



Proposal of Ogden-Hinckly Airport - Ogden, Utah - Bookmarked

The driving time for residents in the Ogden-Hinckley Airport catchment area to Salt Lake City International Airport can exceed two hours in rush hour traffic depending on where you start your journey. The leaders of Ogden City believe that the large population of the catchment area of the Ogden-Hinckley Airport can support regional passenger air service to major markets in the west. In 2005, the Airport retained Sabre Airline Solutions to develop an "Air Service Market Study" to determine the potential passenger demand for air service. This study indicated that based on passenger bookings in the catchment area, there was sufficient demand to support nonstop service to hub airports at Chicago, Dallas, Denver, Las Vegas, Los Angeles, Phoenix, San Francisco, and Seattle. Based on the results of the Sabre study, the City and the Airport have had discussions with numerous airlines about providing scheduled air service. Allegiant Air has expressed strong interest in providing service from Ogden to Las Vegas. Allegiant Air is a low fare, low cost airline and will offer fares at Ogden that are as much as 20% lower than the fares at Salt Lake City International Airport. To support this new air service, Allegiant Air is seeking an incentive package to offset initial operating losses and funds for advertising and marketing. Based on the forecast developed in this proposal, the City and the Airport will need $566,000 to support the new air service of Allegiant Air Of this total, the sponsors of this proposal will provide $54,000 in cash and $32,000 in in-kind contribution. There will be no ticket bank.


Proposal of Uintah County Vernal Regional Airport - Vernal, Utah - Bookmarked

The Uintah County Board of Commissioners is grateful for the opportunity to submit the enclosed application for the above referenced grant program. Uintah County's Vernal Regional Airport has been going through a metamorphosis. Two years ago it was in jeopardy of losing Essential Air Service. In 2005, through an opportunity provided by the Department of Transportation (grant award under Docket OST-2005-20127), Uintah County and its regional airport have reversed the downward trend and created an atmosphere of revitalization.

Uintah County is growing in leaps and bounds, due the increased oil and gas activity. It has developed strong partnerships with local businesses and believes that if travel needs are met our air service will continue to grow. In working to meet local business demands, the requested $780,000 in grant funds will be used to establish a new service route from Vernal, Utah to Denver, Colorado.

EAS at Vernal - OST-1997-2706



Proposal of Burlington International Airport - Burlington, Vermont - Bookmarked

The Burlington International Airport, in cooperation with its local partners collectively the Burlington Travel Vision Coalition, is pleased to submit a proposal for consideration to the U.S. Department of Transportation Small Community Air Service Development Program. BTV is requesting a $500,000 grant to support a comprehensive advertising campaign that will serve as an incentive to attract new service to BTV, and promoting awareness of the airport to the Greater Burlington area, the key border counties of Northeastern New York and the increasingly important Greater Montreal/Southern Quebec border region.

The addition of non-stop service from BTV to an LCC market would significantly reduce average fares, increase service levels within the local community, and increase utilization of the Airport. Recent market analyses studies have shown that BTV’s average fares are considerably higher than nearby airports in Manchester and Albany. Examples of service targeted by this program may include, Baltimore/Washington Thurgood-Marshall International Airport or any of the Florida destination markets that are in BTV’s top 10 Origin and Destination markets.


Proposal of Burlington International Airport - Burlington, Vermont

The SCASDG program would provide BTV a wonderful opportunity to develop and implement a comprehensive advertising campaign to incentivize new service and promote awareness in its market region.

We have exerted considerable effort and resources to understand our market, identify realistic opportunities, and recruit new service by demonstrating a strong economic case of the BTV region to the airlines. Our challenge includes increasing airline service, changing passenger behavior, aggressively promoting BTV as the best alternative for passengers, and promoting awareness of the airport to our region.

Proposal of City of Rutland - Rutland, Vermont - Bookmarked

If funded by DOT, the program proposed herein will provide us with the resources to attract or retain a commercial air carrier, and increase the enplanements at the Rutland Soutern Vermont Regional Airport. The increased volume of commercial travelers and the associated commercial activity at the airport helps to increase airport use and improve the economic climate locally.

EAS at Rutland - OST-2005-21681



Proposal of Accomack Airport Authority - Accomack County, Virginia | Word

Currently there is no existing community air service that provides transportation to local area airports such as Norfolk International or Salisbury Regional Airport, for connection to nation wide flights.   The charter service located at the Airport would be cost prohibitive to most community travelers.  Ground transportation is also limited.  Currently Carolina Trailways, which is owned by Greyhound, provides three scheduled services per day to both Salisbury and Norfolk bus terminals, but not to either airport.

Our goal and objective is to provide the community local ground service to air carriers in the area, where currently no means of public transportation exists.

We would like to do a market study to determine the community  interest in establishing a bus service from the Accomack County Airport to both Salisbury Regional Airport and Norfolk International Airport.  We would utilize the services of a research company to conduct approximately 500 interviews through phone or mail surveys to gather statistical data.  This research would take approximately 10 – 12 weeks to conduct and analyze, for an estimated cost of  $25,000 to $30,000.00.


Proposal of Tri-Cities Regional Airport - Tri-Cities, Tennessee/Virginia - Bookmarked

The Tri-Cities region encompasses the cities of Bristol, TN and Bristol, VA; Johnson City, TN and Kingsport, TN, along with many other smaller cities, towns and communities in Northeast Tennessee and Southwest Virginia.

This proposal outlines a new air service development initiative to improve the region's access to the national air transportation system by adding nonstop service to a connecting hub not currently served from TRI. In addition, it is designed to assist the Airport's efforts to add seating capacity to the market that was lost during the past two years due to airline bankruptcies and reorganizations and provide new fare competition.

In this effort to improve air service, Tri-Cities Regional Airport is partnering with The Regional Alliance for Economic Development, a non-profit economic development organization formed to market the region. The Alliance has taken the lead in raising cash pledges from the business community to be used toward the total grant project.



Proposal of City of Oak Harbor - Oak Harbor, Washington - Bookmarked

The City of Oak Harbor, the airport sponsor, is requesting $180,000 in federal assistance to facilitate the implementation of a $223,500 air service improvement initiative. The project goals are to prevent further deterioration of Oak Harbor’s air service, reduce the need for travelers to drive long distances, increase local enplanements, and improve the quality of air service from Oak Harbor Airport.

The plan proposed in this grant application incorporates both an airport shuttle service and a detailed marketing campaign. This program will aid in providing an express link airport shuttle between Naval Air Station Whidbey Island (with one stop at the Oak Harbor bus terminal) and the Wes Lupien-Oak Harbor Airport. The Oak Harbor bus terminal links to the Island Transit bus service for use by locals and visitors who regularly travel around the entire county with stops at commercial centers. The program will also be used to make more people aware of the air service benefits provided by Kenmore Air Express and the access to the National Air Transportation network the service provides while highlighting the unique advantages of the Boeing Field-Sea-Tac connection.

Proposal of City of Oak Harbor - Oak Harbor, Washington - Amendment

The following is an amendment to page 23 of the City of Oak Harbor's Proposal under the Small Community Air Service Development Program.


Proposal of Rhinelander-Oneida County Airport - Rhinelander, Wisconsin - Bookmarked

While service levels have remained relatively stable over the past five years, it is clear that major changes in the structure of the airline industry are certain to affect the levels of air service access in the future. Mergers, retirement of smaller turboprops, escalating costs of serving smaller communities, and declining interest on the part of major airline systems in providing service to smaller communities all are converging to present strong and difficult challenges to the future of air service at Rhinelander.

Concurrent with this, it is clear that traditional air service access patterns to the region are shifting as well. Chicago/O’Hare - the major domestic and international gateway for the area - is experiencing capacity issues. The two hubbing carriers there - American and United - no longer have the appropriate fleets nor the interest in serving markets such as Rhinelander.

The community is requesting a grant in the amount of $75,000, to be matched by local funds in the amount of $15,000, to conduct a comprehensive, long-term Rhinelander/Rural Community Air Service Blueprint.

Rhinelander was fortunate to have received a grant under this Program in 2002, for revenue guarantees to upgrade service and capacity to Minneapolis/St. Paul. The results were highly successful. This grant application, while paralleling none of the activities undertaken in the 2002 grant, is expected to be equally as successful.



Proposal of Natrona County International Airport - Casper, Wyoming - Bookmarked

The Airport’s objectives are to: 1) increase the number of seats in the market, and 2) to do this through upgrades in aircraft equipment to larger turboprop aircraft or regional jets. Increasing the supply to meet demand (current and projected) will help bring about: 1) lower airfares, 2) increased reliability of service, and 3) reduced leakage.

To bring these changes about, the Airport will need to show United and Delta that they can upgrade to larger turbprop aircraft or regional jets and do so profitably. The Airport has had discussions with both on upgrading to regional jets, including preparing and submitting to the carriers a financial projection; however, the Airport does not have as good of information on the catchment area and leakage as necessary to provide good, accurate market information. One advantage the Airport has with United and Delta is that both provide current service, so there is not the higher risk associated with a new carrier penetrating the market; however, the more the Airport can do to reduce the risk of this upgrade and to help the service be successful, the more successful the service will be.


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