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OST Docket Filings for August 2, 2019

 

Applications and Renewals:

2019 SCASD Proposals - Alabama | Arizona | California | Colorado | Connecticut | Florida | Georgia | Idaho | Illinois | Indiana | Iowa | Kansas | Louisiana | Michigan | Minnesota | Missouri | Montana | Nevada | New Jersey | New Mexico | New York | North Carolina | Oregon | Pennsylvania | Tennessee | Texas | Utah | Virginia | Washington

Aerolineas Marcos - Mexico-US Charters Renewal

Mexico Transportes Aereos - Mexico-US Charters Renewal

Answers and Replies:

Delta and AeroMexico ATI - Answers of Alaska Air, JetBlue and Southwest

Notices of Action Taken:

None

Notices and Orders:

Virgin Atlantic, Delta, Air France and KLM - Show Cause Tentatively Approving and Granting ATI




2019 Small Community Air Service Development Program

OST-2019-0071


Alabama

Proposal of Gulf Shores Airport Authority - Gulf Shores, AL

The Gulf Shores Airport Authority, on behalf of Jack Edwards National Airport in cooperation with its private partners , humbly requests grant funding in the amount of $300,000 in federal assistance to be combined with financial support from our public/private partnership . The grant funds will be used to support the development and implementation of a comprehensive air service development and marketing program. The primary goal of this program is to complete the foundational research and actions needed to position the Jack Edwards National Airport for successful air service recruitment efforts going forward. JKA, currently a general aviation airport, has recently embarked on an aggressive path of preparation and pursuit of scheduled commercial air service. This initiative is fueled by the rapidly expanding Coastal Alabama region we serve and its resulting need for direct access to the national air transportation system. The federal assistance requested under the Small Community Air Service Development Program will be met with a cash match of $62,000 (20%) from a diverse group of public and private partners, all of which are working closely with JKA on this important initiative . JKA will also provide an additional $20,000 in cash funds.

By: Gulf Shores Airport Authority, Vic Roberts




Proposal of Tuscaloosa National Airport - Tuscaloosa, AL

The City of Tuscaloosa and the Western Alabama community seek grant assistance to support the launch of new commercial airline service between Tuscaloosa National Airport and Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia. Tuscaloosa currently has no regularly scheduled commercial service, and residents, businesses and students face long drive times and high average fares to reach the national aviation system.

Federal amount requested: $750,000

By: Mayor Walter Maddox





Arizona


Proposal of Mohave County Airport Authority - Laughlin/Bullhead City, AZ

This Small Community Air Service Development Grant proposal seeks $750,000 in federal funding, matched by $200,000 in local contributions, for a revenue guarantee and marketing support for service to Denver. This service accesses almost twice the number of passengers that were available over Phoenix on American.

The Airport was able to convert its 2016 Small Community Air Service Development Grant into Phoenix service in less than 12-months from the award date – one of the few airports in the history of the program to secure service so quickly. Unfortunately, Phoenix service did not meet the needs of the majority of passengers traveling to and from the Laughlin/Bullhead City catchment area. The schedule did not allow for same-day connections to many of the market’s largest points of origins. Phoenix also doesn’t have service to many smaller cities in the upper Midwest that generate large numbers of passengers to Laughlin/Bullhead City.

American service in Laughlin/Bullhead City lasted exactly one year – to the day. The Airport still believes Denver service would be more successful, based on its connectivity to many of the markets that are the strongest to and from Laughlin/Bullhead City – in the upper Midwest. The Airport realizes there is some scope overlap in this Grant application, but since it did not secure service to Denver with its previous Grant it is applying for Denver service in this Grant and asking for a scope waiver.

By: Laughlin/Bullhead International Airport, Jeremy Keating




Proposal of Tucson Airport Authority - Tucson, AZ

Tucson International Airport seeks its first Small Community Air Service Development Grant in support of the recruitment of United Airlines service to its Washington Dulles hub. United has agreed to support this application as it evaluates the introduction of service on the route. Tucson-Dulles flights would represent the market’s only east coast nonstop after American’s discontinuation of Charlotte service this spring.

In meetings with United, the airline has made it clear that service to the east coast will require broader support. This Grant application is critical to potential Washington Dulles service launching in 2020. Without this Grant award it is likely United will pass on Tucson, preferring an opportunity with less risk. But the Airport believes service can be successful based on its business case. This Grant award is designed to mitigate risk during the start-up phase.

Federal amount requested: $750,000

By: President/CEO Bonnie Allin




Proposal of Yuma County Airport Authority - Yuma, AZ

Yuma County Airport Authority, Inc., the airport sponsor, is requesting $775,000 in federal investment to implement a $1,411,175 airline assistance program for nonstop United Airlines service to Denver International Airport.

Currently, YUM’s air service is limited to one airline, American Airlines, to two hubs, Phoenix-Sky Harbor International Airport and Dallas/Fort Worth International Airport. Because of the limited air service available, an estimated 65 percent of YUM catchment area passengers use alternate airports. The most frequently used airport is PHX, nearly a three-hour drive one-way.

DEN is the YUM catchment area’s second largest destination and offers significant connecting opportunities, particularly to high demand regions like Canada for Yuma’s winter residents. Adding United service would offer competition in the market to help counter high average fares. To support the service and share in the financial risk, the public-private partnership is proposing a revenue guarantee, marketing campaign and fee waivers. Preliminary discussions with United have taken place and United Airlines supports the Strategic Plan.

By: Airport Director Gladys Brown





California


Proposal of City of Chico - Chico, CA

The loss of United Airlines after November 2014 left Chico with no air service lift forcing the community to drive to surround airports such as Sacramento, Oakland, and San Francisco.

Among the identified potential routes, CIC-LAX and CIC-BUR provided by United Express, SkyWest and JetSuiteX was determined to be the most currently viable opportunities. It is expected that if United and/or SkyWest start the route they would both use a 50-seat CRJ200 with 2-3x daily for optimal capture rate of Los Angeles O&D and beyond passengers through connections.

To encourage one of the target airlines to initiate a new CIC-Los Angeles service, the City of Chico intends to offer a revenue guarantee of approximately $1,000,000 to mitigate risk in the first years of service.

Chico has not been awarded a grant in the past 13 years.

By: Mark Orme




Proposal of Monterey Peninsula Airport District - Monterey, CA

The Monterey Peninsula Airport District, the grant sponsor, is requesting $250,000 in federal assistance to implement a $360,000 air service initiative. MRY is a two-time previous grant recipient (2005 and 2009). The proposed project’s goals are similar to the 2005 project but is outside of the 10-year same project limitation.

The goal of this project is to ensure the long-term success of new air service by American Airlines to Dallas-Fort Worth International Airport and United Airlines to Denver International Airport through an integrated marketing campaign. United’s DEN service began in October 2018, and American’s seasonal DFW service began in February 2019 with the understanding that marketing support would be a critical key to success. Both routes started without subsidy.

The new services will also help to counter the downward trend over the last 10 years at MRY. In the last 10 years, departures have declined 36 percent while seats have declined 4 percent. The same destinations are being served but with less frequency on generally larger capacity aircraft. The new DFW and DEN services will begin to counter this trend but local travelers and visitors must be aware of the service to make it a success.

By: Executive Director Michael La Pier




Proposal of San Luis Obispo County Regional Airport - San Luis Obispo, CA

San Luis Obispo County Regional Airport has just completed the best three-year air service development expansion period in its history. The success began in 2016 with the launch of Alaska Airlines’ service to the market, with daily Seattle/Tacoma nonstops. That project, supported by the Airport’s previous Small Community Air Service Development Grant award, was so successful it only used $21,000 in funding for marketing – less than 10% of the total project cost.

Later in 2016, Alaska’s new service was joined by United’s first-ever nonstops to Denver. That service
was so successful it quickly expanded from just a single-daily flight to as many as three flights per day in its first year. In 2017, the Airport saw service on most of its incumbent routes - to Los Angeles, Phoenix, and San Francisco - upgauged to 70- and 76-seat regional jets. Then, in 2018, American announced it would add nonstops between San Luis Obispo and Dallas/Ft. Worth. That daily service started in April of 2019.

While the Airport, and its community partners, have had tremendous success in recruiting new air service, the expansion of service to the Pacific Northwest has eluded San Luis Obispo. This application seeks federal support for a minimum revenue guarantee to secure Portland, Oregon nonstops. Two partners in this application, the County of San Luis Obispo and Visit SLO CAL, have pledged a combined $500,000 in matching cash. The Airport seeks a SCASD Grant award of $750,000.

The Airport has proven the market has enough demand to support new and expanded service. Each new service added in San Luis Obispo over the last three years has met with tremendous success. This Grant award will help the Airport secure its next target: service to a new hub in the Northwest offering expanded connecting opportunities in many of the region’s largest passenger markets.

By: Airports Director Kevin Bumen




Colorado

Proposal of Grand Junction Regional Airport - Grand Junction, CO

Grand Junction Regional Airport is seeking a federal grant in the amount of $950,000 under the Small Community Air Service Development Program to fund a minimum revenue guarantee and provide marketing support for service from Grand Junction to San Francisco International Airport on United Airlines. In addition to the amount requested from the Department, the Grand Junction Regional Air Service Alliance has pledged $475,000 in cash that can be applied to the minimum revenue guarantee. The Air Alliance will also provide $100,000 in cash for marketing and promotion of the proposed service.

Over the last ten years, Grand Junction has been successful in attracting United to operate seasonal weekend Grand Junction-Chicago service beginning in June 2019 and Allegiant to operate Grand Junction-Mesa/Phoenix service beginning in April 2019. Unfortunately, United discontinued Houston service in April 2016 after oil and gas prices declined, and energy industry business travel to and from the Western Slope of Colorado decreased. Grand Junction also lost Frontier service when Frontier discontinued its service to Denver in 2010.

By: Executive Director Angela Padalecki




Connecticut

Proposal of Tweed-New Haven Regional Airport Authority - New Haven, CT

Tweed-New Haven Airport (HVN) is seeking a Federal Small Community Air Service Development (SCASD) grant for a revenue guarantee and marketing support for a new service and/or new carrier to enter the market, as well as start-up cost mitigation for a new start-up carrier establishing HVN as a focus city. HVN has never applied or been awarded a SCASD grant in the past.

HVN has developed a strategic plan to seek service on American Airlines to their Chicago or Washington, DC (DCA) hub and on United Airlines to their respective hubs in Chicago and Washington Dulles. Additionally, the airport administration has been in negotiations with the new start-up Moxy (Breeze Aviation), with their A220 fleet, to become one of their North-Eastern focus cities, and if awarded a grant, would utilize it as a compelling incentive to bring the carrier into the market. In support of a revenue guarantee, marketing, and start-up cost mitigation connected to a new competitive service, HVN has secured $150,000 in local cash and $250,576 in in-kind marketing support to match its grant request.

Federal amount requested: $750,000

By: Jeremy Nielson




Florida


Proposal of Lakeland Linder International Airport - Lakeland, FL

Local contributors have raised $550,000 for the project. The Airport seeks a Small Community Air Service Development Grant of $750,000 for a total project value of $1.3 million in support of Lakeland’s first-ever scheduled, daily airline service. So that the service can connect broadly to most destinations, Lakeland’s target for service is the American hub at Charlotte. Charlotte would access three-quarters of available passengers and would need to capture less than 10% of the market to be successful.

Lakeland has never had scheduled airline service. Its residents, and the millions of visitors who come to central Florida attractions each year, have always had to drive to use service at Orlando or Tampa. Decades ago, when Lakeland was much smaller, and had only a fraction of its current economic activity, the drive was seen as a necessary nuisance. Today, as Lakeland has moved into position as the seventh-largest metro area in Florida, the traffic on interstates to Tampa and Orlando is beginning to cause bottlenecks that curtail economic growth.

By: Airport Director Eugene Conrad




Proposal of City of Melbourne Airport Authority - Melbourne, FL

One of the main reasons for Orlando Melbourne International Airport’s air service issues is the behemoth competition surrounding its operation. Only 19% of MLB’s catchment area actually uses MLB. Meanwhile, 73% of MLB’s catchment area diverts to Orlando International Airport, located on average an hour drive away. The remaining 8% of travelers divert to Palm Beach, Miami, Orlando Sanford, Fort Lauderdale and Tampa, ranging in drive times between 90 minutes and three hours. Due to the overwhelming amount of options at these other airports, MLB is often not even a thought to travelers when planning their travel.

MLB is seeking $800,000 in funding from the US Department of Transportation to enhance its air service incentive program. The airport and the community will participate in the program by providing both cash and in-kind contributions. The in-kind contributions from the airport are based off of an Embraer E190 aircraft operating daily service, twice a day.

By: Executive Director Greg Donovan




Proposal of Sanford Airport Authority - Orlando, FL

Despite our evolving product profile and recent passenger enhancements, SFB continues to leak the vast majority of traffic from its primary catchment area and essentially offers service from only one domestic carrier – Allegiant – and one international carrier (transatlantic charters). Additionally, SFB has recently lost service on Interjet and Icelandair as the carriers made decisions to relocate operations to MCO. Our recent conversation with the Vice President of Network Planning at Icelandair revealed that the carrier’s decision to move to MCO had little to no effect on the inbound traffic (visitors from Iceland and beyond), however, it massively improved the US point of sale for the carrier with more Orlando area residents choosing to fly Icelandair to Reykjavik and other European destinations. This insight from the carrier is a clear indication that SFB needs to ramp up its marketing efforts and brand awareness among Central Florida residents in order to be able to retain not only its passenger traffic but the airline partners too.

As such, the Sanford Airport Authority, the official sponsor for this grant application, in cooperation with its private partners, respectfully requests $500,000 in federal assistance to be coupled with cash contributions of $230,000 (32% of the total project cost) from matching funds from local private sector sources. These funds will be utilized to support a marketing program to improve SFB brand awareness among local residents as well as inbound passengers from key destination markets. This increased airport awareness will also facilitate a more successful air service development program as local passenger retention increases, leading to a wider portfolio of economically viable market opportunities.

By: Sanford Airport Authority, Diane Crews





Georgia

Proposal of Athens-Clarke County Unified Government - Athens, GA

The Athens-Clarke County Unified Government, the legal sponsor, is requesting $750,000 in federal assistance to implement a $1,350,000 air service initiative. The project goal is to restore commercial air service for the Athens community to allow access to the national air transportation system. The Strategic Plan, American Airlines AHN-Charlotte Douglas International Airport service, will achieve the project’s goal. AHN has never been awarded a SCASDP grant.

Athens has not had local commercial air service since 2014 when AHN was removed from the Essential Air Service program. From 2002 to 2014, AHN’s service was subsidized by the EAS program; however, AHN previously supported un-subsidized service for many years. The plan to restore nonstop service to CLT is supported by a strong incentive plan and has been discussed with American. American fully supports this plan.

By: Athens-Ben Epps Airport, Mike Matthews, 706-613-3420




Idaho


Proposal of Idaho Falls Regional Airport - Idaho Falls, ID

Idaho Falls community seeks a new Small Community Air Service Development Grant to support the initiation of daily network carrier service to Dallas/Ft. Worth. While the Airport has been able to use Grant funding to support new eastbound and westbound service, the market has not previously applied for funding for service to the south. Idaho Falls Regional Airport has among the best track records in leveraging the Small Community Air Service Development Grant Program for new and expanded airline service. Each of the three times the Airport has been awarded a Grant, it has landed the new service for which the project was written. Its Grant-supported services to Denver and Minneapolis/St. Paul operate with strong performance today. The Airport is certain new service on American to Dallas/Ft. Worth will perform similarly.

The Airport and its community partners seek a federal Small Community Air Service Development Grant of $750,000 to enhance the minimum revenue guarantee for service to Dallas/Ft. Worth (refer to chart 16). The grant will allow the Airport to offer a total MRG of $900,000 for new service. This amount should be sufficient to cover a potential loss in the start-up phase of service. The total cash project amount is $1 million, not including in-kind contributions.

By: Airport Director Rick Cloutier




Proposal of City of Pocatello - Pocatello, ID

The City of Pocatello, Idaho, the airport sponsor, is requesting $700,000 in federal investment to implement a $940,290 airline assistance program for nonstop SkyWest Airlines/United Airlines service to Denver International Airport.

Currently, PIH’s air service is limited to one airline, Delta Air Lines, to one hub, Salt Lake City International Airport. With PIH’s limited service, an estimated 76 percent of PIH catchment area passengers use alternate airports. The most frequently used airport capturing 55 percent of PIH catchment area travelers is SLC, a large hub airport requiring a drive of nearly 2.5 hours one-way. The other two primary alternate airports are Boise Airport, a small hub airport requiring a drive of more than three hours, or Idaho Falls Regional Airport, a non-hub airport with limited air service located approximately one hour one-way from the City of Pocatello.

Adding SkyWest/United service would offer competition in the market to help counter high average fares. To support the service and share in the financial risk, the public-private partnership is proposing a revenue guarantee, marketing campaign and fee waivers. Preliminary discussions with SkyWest have taken place and SkyWest Airlines supports the Strategic Plan.

By: Mayor Brian Blad




Proposal of City of Twin Falls - Twin Falls, ID

This grant application is very limited in its scope. It is intended for SkyWest Airlines (United Express) service to Denver. It is not meant to be used to connect to any other hub. It is not intended as a directional service type of request. Twin Falls anticipates working with the DOT and SkyWest on a rapid implementation of this plan to connect Magic Valley Regional Airport to Denver International Airport only. And barring any unforeseen changes in the airline industry between now and the spring of 2020, all parties expect a quick implementation of this project.

At the conclusion of the first year of service with one flight per day the airport expects that SkyWest will be profitable. On or before the first of the year in 2021 the airline will determine if a second daily flight is feasible. It is expected that the second flight would be added as soon as June 2021. At that point the second daily flight would begin to draw down the MRG funds available. If sooner, as determined by demand, the MRG funds and marketing timeline would be advanced to meet the additional service offering.

Federal amount requested: $900,000

By: Mayor Shawn Barigar




Illinois

Proposal of Board of Trustees of the University of Illinois - Champaign/Urbana, IL

Champaign/Urbana passengers have long been suppressed by some of the highest fares in the country. The current average fare at Willard Airport is 18% above average. Willard Airport is enjoying recent air service recruitment success that should curb some of that passenger leakage. American Airlines, the Airport’s incumbent, launched nonstops to Charlotte last December. Those daily flights are performing well, alongside service to Chicago and Dallas/Ft. Worth. But new flights have not resulted in lower fares.

The Airport and its partners have raised $250,000 to match a Grant request of $750,000 in funding for service to a Washington, DC area airport. Access to the capital is limited by slot and gate constraints. A minimum revenue guarantee would set Willard Airport apart and help to better link Illinois’ most vibrant economy with the east coast.

By: Comptroller Avijit Ghosh




Indiana


Proposal of Fort Wayne-Allen County Airport Authority - Fort Wayne, IN

The Fort Wayne-Allen County Airport Authority is asking the SCASDG program to fund 50% or a contribution of $318,831.17 for ground handling equipment in order to implement a ground handling program at Fort Wayne International Airport. The total cost for the project is $637,662.33.

The Fort Wayne-Allen County Airport Authority has been a recipient of a Small Community Air Service Development Grant in the past (2002, 2010, 2013). This is a new project, with a new goal.

By: FWACAA, Scott Hinderman




Proposal of St. Joseph County Airport Authority - South Bend, IN

The South Bend International Airport is seeking a $500,000 SCASD Grant to support air service. This grant will provide resources to fund a Minimum Revenue Guarantee for nonstop service to Denver on United Airlines or United Express, who is supportive of this application. The local community is committing local funds of $500,000 for this MRG and the State of Indiana through the Indiana Economic Development Corporation will also provide $500,000, bringing the total MRG to $1.5 million.

South Bend International Airport is targeting nonstop service to Denver International Airport. Service to Denver is critical to the region’s needs as it pertains to retaining leakage and offering more equitable air fares to the west coast. Longer-term, it will help keep jobs in the region and diminish any negative impacts occurring from traffic leakage.

By: Michael Daigle




Iowa

Proposal of City of Dubuque - Dubuque, IA

The City of Dubuque/DBQ is requesting $775,000 in federal assistance to implement a $1,310,195 air service initiative. The Strategic Plan is to provide nonstop service to DBQ’s top destination, Denver International Airport, and improve connections to the West and Northwest regions where current access is severely limited.

To reduce drive diversion, additional nonstop service is required at DBQ beyond the current one airline, one destination service. The greater Dubuque region’s primary need is improved air service to the West Coast as well as to its largest true market, DEN. Currently the catchment area is required to back haul over Chicago-O’Hare to connect to these western destinations. With numerous nonstop flights to DEN from the diverting airports, the ability to retain passengers going to DEN is very challenging due to the extra time needed to go east to Chicago and then connect west to DEN.

By: Airport Manager Robert Grierson, 563-589-4128




Kansas

Proposal of Metropolitan Topeka Airport Authority - Topeka, KS

In preparation for this application, the Airport met with executives from American Airlines and SkyWest Airlines at their headquarters to discuss this specific project and earn each Airline’s support. Additionally, the Airport has worked with local businesses and major organizations to develop matching funding. Together with the Grant, the Airport will be able to offer a carrier $1 million in risk mitigation.

Topeka Regional Airport has seen success in leveraging a Small Community Air Service Development Grant award airline service. In 2014, United launched service between Topeka and Chicago O’Hare – the exact goal of the application. The Airport converted the award into service in less than 12 months.

Unfortunately, United’s Topeka service was irreparably hurt by horrible winter weather in 2014 - the year of the “polar vortex” - that caused unprecedented cancellations. Topeka lost 14% of all flights to weather cancellations in the first month of service, including the cancellation of the inaugural flight. Over the full period of service, one in every fifty departures was cancelled and twenty of every fifty flights were delayed. Topeka catchment area passengers quickly realized they could not rely on the service, even with lower fares, and chose to pay more to fly from Kansas City.

To overcome this challenge, under this application, Topeka Regional Airport is targeting service to a more reliable hub – Dallas/Ft. Worth. This Grant seeks to connect Kansas’ capital to the national air transportation system. The project meets the goal of the Grant Program, as it will lower high fares paid by passengers in the Topeka catchment area.

By: President Eric Johnson




Louisiana


Proposal of City of Baton Rouge/Parish of East Baton Rouge - Baton Rouge, LA

There is a clear need for additional nonstop service for the Baton Rouge market; however, this is a need that must be catalyzed by substantial revenue guarantees that are an unfortunate reality of the current state of the aviation industry for smaller market airports. BTR’s request of a SCASDP grant is structured to address those needs and rooted in those existing industry realities, with $800,000 in federal government funding requested to be matched with $200,000 in local community funding. Additionally, BTR will provide incentives that include landing fee waivers, select rent abatements, and up to $200,000 in advertising support for the new route. The combined value of the SCASDP grant and BTR incentives would exceed $1 million.

BTR’s first and only prior SCASDP grant was awarded in 2011 for $340,000, which served as a revenue guarantee for nonstop service to Washington, DC. Despite several extensions, including several at the behest of American Airlines, BTR was ultimately unable to obtain a service commitment. No funds out of the $340,000 Washington SCASDP grant were spent.

By: Mayor-President Sharon Weston Broome




Proposal of Lake Charles Regional Airport Authority - Lake Charles, LA

The Lake Charles Regional Airport Authority, the official sponsor of this Small Community Air Service Development Program grant application, in cooperation with its private partners, respectfully requests grant funding in the amount of $200,000 to support a strategic air service development marketing program. The funds requested, will serve as a portion of the financial commitment needed to reduce passenger leakage to nearby airports, by increasing competition, lowering fares, and strengthening air service options at Lake Charles Regional Airport.

Funding made available through the SCASDP would serve as the foundation for the launch of a pivotal marketing strategy and program at LCH. The program and corresponding plan sited in this proposal, will support a long-term vision and investment. LCH and our public/private partners ensure the continuation of these aggressive and strategic marketing efforts going forward beyond the close of the grant. The funds made available through this program will provide the initial infrastructure and thorough planning needed to move LCH and the SWLA region forward.

By: Heath Allen




Michigan

Proposal of Capital Region Airport Authority - Lansing, MI

The Capital Region International Airport is proposing year-round, non-stop flights to Orlando International Airport (MCO). Also, as an alternative, the airport is also proposing nonstop service to New York City. The Capital Region International Airport requests $750,000 in SCASD grant funds. These funds would be used for a Minimum Revenue Guarantee to support this new service. In conjunction with $250,000 of local support, the total MRG would be $1 million. In addition, the Airport would commit $100,000 in marketing funds for this new service, bringing total project funding to $1.1 million.

Lansing’s seat capacity is down about 61% since 2005. At the same time, the average air fare paid at LAN has increased about 45%. This was largely the result of airlines eliminating service at LAN, particularly Delta Air Lines, subsequent to their acquisition of Northwest Airlines.

By: Capital Regional Int'l Airport, Wayne Sieloff





Minnesota


Proposal of Duluth Airport Authority - Duluth, MN

The Duluth International Airport is seeking a $771,500 SCASD Grant to support air service. This grant will provide resources to fund a Minimum Revenue Guarantee for nonstop service to Denver. The community is committing local funds of $228,500 for this MRG, bringing the total MRG to $1 million. These funds would come from a consortium of local businesses and municipal entities in the region. DLH will invest $35,000 to market new DEN service and $20,000 in-kind marketing support. In addition, Visit Duluth will contribute $10,000 cash and $50,000 in kind to marketing Duluth in the Denver community, bringing the total package, including the SCASD grant, to $1.115 million.

New Denver service would reverse capacity reductions that have been fully in place since the Delta-Northwest merger in 2008. It would also narrow DLH’s worsening relative fare differentials versus the rest of the US and habitually high leakage.

By: Duluth Airport Authority, Tom Werner




Proposal of Rochester Airport Company - Rochester, MN

Rochester International Airport has seen tremendous success in its air service development efforts over the last several years. It was able to leverage a Small Community Air Service Development Grant award for new nonstop service to Atlanta in 2015. In 2017, United Airlines entered the market with three daily nonstops from Chicago O’Hare. In just the last two years, Rochester’s passengers are up by almost two-thirds adding an average of 183 passengers per day each way.

The Airport has already collected $250,000 in matching cash from community partners for this application, which it holds in an air service development account. It has also committed $450,000 of in-kind fee waivers for new service. The Airport seeks $750,000 in federal funding for a revenue guarantee in support of new service to Denver, connecting to the southern half of the US.

Rochester did win a previous Grant that proposed service to either Denver or Dallas/Ft. Worth. However, it used that Grant for service to Atlanta, through a change of scope request. Since it has never used a Grant for service to the south and west, this proposal meets the scope requirements of the Program. Rochester International Airport seeks a waiver from the same project limitation due to the use of its previous Small Community Air Service Development Grant award for a project other than what was awarded. The Airport’s previous Grant award, in 2012, was primarily written for nonstop service to Denver.

By: Executive Director John Reed





Missouri

Proposal of City of Columbia - Columbia, MO

The City of Columbia, the airport sponsor, is requesting $800,000 in federal assistance to facilitate the implementation of a $1,138,965 air service improvement initiative. The Strategic Plan is to add nonstop Charlotte Douglas International Airport service by American Airlines, and American fully supports this application. The City of Columbia has not received a SCASDP grant directly in the past despite several submittals. Since Mizzou joined the Southeastern Conference the demand for travel to Columbia for athletic events continues to increase.

By: Airport Manager Michael Parks, 573-817-5064




Montana

Proposal of Gallatin Airport Authority - Bozeman, MT

The community is requesting a grant in the amount of $750,000 with a community match of $855,000 for a total cash contribution of $1,605,000. The airport is offering in-kind incentives which are valued at $40,000.

The air service deficiency that exists at the Bozeman Yellowstone International Airport is the limited air service access to New England, and more specifically the Boston region. Currently, there is no nonstop service between Bozeman and New England. The intent of the grant is to incubate new service to Boston Logan International Airport (BOS) in order to more adequately provide nonstop service to a rapidly growing passenger segment at BZN. As will be further illuminated in this proposal, Boston is currently the top O&D market at BZN without nonstop service on an annual basis. The fact that passenger traffic has grown significantly in spite of the extremely high fares is a strong indication of the pent-up demand for this nonstop service, but there is undoubtedly a limit on the amount of future traffic growth with such high fares and no nonstop service. A SCASDP grant award will not only benefit the traveling public to/from the Bozeman region, but also allow for a more reasonable fare with nonstop service.

By: Gallatin Airport Authority, Brian Sprenger




Nevada

Proposal of Reno-Tahoe Airport Authority - Reno, NV

The RTAA is requesting $500,000 each, for two markets proposed in this application for a total of $1,000,000 from the USDOT for Revenue Guarantees and Marketing. Funds from a SCASDP grant would be supplemented by the Regional Air Service Corporation and utilized to provide marketing support of potential new routes and/or revenue guarantees to reduce the risk of bringing the much needed service to the Reno-Tahoe region. The two service markets for which RNO is seeking grant funds are as follows:

  1. Elko, NV
  2. Washington, DC

By: Reno-Tahoe Airport Authority




New Jersey

Proposal of South Jersey Transportation Authority - Atlantic City, NJ

The South Jersey Transportation Authority, the official sponsor of this Small Community Air Service Development Program grant application, in cooperation with its private partners including our incumbent air carrier, Spirit Airlines, respectfully requests grant funding in the amount of $400,000 in federal assistance to be combined with strong financial support from an established public/private partnership. The grant funds will serve as a portion of the financial commitment needed to develop and implement a multi-year strategic marketing program which will serve as the core catalyst for a comprehensive air service development growth initiative. This ASD initiative will be focused on sustaining and expanding our incumbent air carrier services as well as attracting new routes and new targeted airlines. The federal assistance will be combined with cash contributions totaling $80,000 (20% cash match) from an established public/private partnership and up to $100,000 from airport cash funds over a two-year period.

ACY is already working closely with its partner, Spirit Airlines, to expand service offerings to key markets such as BOS, ORD, and RDU. One of the primary goals of this grant and a very important element to ensuring the success of securing these routes is hinged to the strategic efforts stated in this plan.

By: South Jersey Transportation Authority, Tim Kroll





New Mexico


Proposal of Lea County Regional Airport - Hobbs, NM

With the continued development in drilling technologies and additional oil centers that have opened in northern portions of North America including Colorado, Wyoming, North Dakota, and Canada, northern and western destinations, Denver was identified as a natural next step to expanding air service in the region.

The FlyHobbs air service support group is currently negotiating with United Airlines to begin flights from Hobbs to Denver starting October 2019 through June 2020. This will be supported by local funding through FlyHobbs and its partners during this period. As with all new services, it is anticipated that a revenue guarantee will be needed for the first 24 months of service before the service becomes self-supporting.

The application requests a grant of $750,000. This will be accompanied by matching funds in the amount of $950,000 from local and state sources. This will be supported by additional in-kind contributions.

By: Lee County Government, Michael Gallagher




Proposal of City of Roswell - Roswell, NM

The City of Roswell, the sponsor of this Small Community Air Service Development Program grant application for Roswell International Air Center, in cooperation with the Southeast New Mexico Air Service Coalition, is requesting $750,000 in federal assistance to implement a $1,932,115 air service initiative. The Strategic Plan is to acquire nonstop service to Denver International Airport by United Airlines to improve direct access to a top market for the ROW catchment area as well as better connectivity to the Intermountain West. This application is requesting assistance with a different project and goal than the previous grants.

United supports this grant application.

Nonstop ROW-DEN air service will benefit a remote population with limited access to the national air transportation system. ROW serves a catchment area population of nearly 145,000. The US Border Patrol, the US Homeland Security Department, the Federal Law Enforcement Training Center, the International Law Enforcement Academy (operated by the US Department of State) and the Federal Air Marshal Service will all benefit from improved access to their facilities.

By: City Manager Joe Neeb




Proposal of Town of Taos - Taos, NM

The Taos Air service last winter has generated significant momentum towards the long-term goal of expanded service and new destinations. In time, the Taos Regional Airport will be a major economic driver for northern New Mexico opening the door to film, technology and other industries. Support of the Taos Airport initiative has come from all levels of government and a wide range of private businesses in New Mexico.

To support this initiative, the Town of Taos is seeking a federal grant in the amount of $750,000 under the Small Community Air Service Development Program. The grant award would be paired with a cash match of $750,000 and in-kind contributions of $300,000 match by the local public and private community. This grant would fund a minimum revenue guarantee and marketing for summer service from Taos to an airport in Southern California, either Los Angeles, Hawthorne, Burbank, Ontario, or Orange County on Taos Air. Taos Air would provide this service by operating under DOT Part 135 regulations as a Section 380 public charter utilizing a 30-seat Dornier 328Jet.

By: Richard Bellis




New York

Proposal of Greater Binghamton Airport - Binghamton, NY

The local Binghamton community, New York State, and the airport have collectively raised $2,005,500 in matching funds for assisting with marketing the new nonstop scheduled service. The Airport is requesting $1,000,000 in federal funding through the SCASD grant process. This will assist with helping to secure new service to a Washington, D.C. hub. New nonstop hub service will help curb the high level of passenger traffic leaked to alternate airports, provide additional one-stop connecting opportunities and help reduce the high average fares currently being paid by passengers using the Airport, ultimately contributing to the growth and economic development of the Greater Binghamton Area.

Operations at the Greater Binghamton Airport were significantly impacted in the winter of 2016-2017, when United and American Airlines both ceased services to Philadelphia and Newark due to widespread massive reductions in turboprop fleets. Currently, service is limited to 3 daily round-trip Delta flights between Binghamton and Detroit on a 50-seat regional jet aircraft, with occasional occurrences of 2 daily services.

By: Greater Binghamton Airport, Mark Heefner




North Carolina


Proposal of Pitt County-City of Greenville Airport Authority - Greenville, NC

Pitt-Greenville Airport seeks a Small Community Air Service Development Grant of $750,000 to support a revenue guarantee for new service to Washington Dulles. The Airport has worked hard to raise $400,000 in local cash funding through multiple individual sources (including the Airport itself) to match its Grant request.

Pitt-Greenville Airport is a key gateway at the center of an isolated section of eastern North Carolina with more than three-quarters of a million residents. While the community’s isolation is not caused by a mountain range or a lake, it is significant – it is caused by the lack of an interstate highway link to the rest of North Carolina and the south. Because of a non-ideal road system, Greenville is more than 90-minutes from its largest alternate airport in Raleigh-Durham.

In calendar year 2012, American offered an average of 237 daily departing seats from Pitt-Greenville Airport (refer to Chart 5). All service was to Charlotte, as it is today. By 2018, American’s capacity was down to an average of 195 departing seats per day. The market has lost an average of 42 departing seats per day in that period, which is the equivalent of losing a daily regional jet departure.

By: Pitt County-City of Greenville Airport Authority, Bill Hopper




Proposal of Onslow County - Jacksonville, NC

Albert J. Ellis Airport in Jacksonville, North Carolina is seeking $700,000 in federal funding to be used for a minimum revenue guarantee, airport fee waivers and marketing to support new nonstop service from Jacksonville to Dallas/Fort Worth on American Airlines or to Washington, DC on United Airlines.

Jacksonville, NC is home to the U.S. Marine Corps Base Camp Lejeune - one of the largest USMC installations in the country. Jacksonville is home to over 115,000 active duty service members, family members, civilian employees and retirees associated with Camp Lejeune and nearby Marine Corps Air Station New River. These residents generate significant demand for outbound air travel while inbound air travel is driven by regular basic training classes, Department of Defense contractors, and visiting friends and relatives. It is estimated that military-related travel (official and unofficial) accounts for approximately 50% of total OAJ passenger traffic.

OAJ previously had nonstop service by US Airways to Ronald Reagan Washington National Airport for 28 months between March 2012 and June 2014. Although the service was operated on a light schedule (1 roundtrip per day), the OAJ-DCA nonstop was well-received by the community which benefited greatly from a third nonstop destination. Military travelers particularly benefited from the direct linkage to Washington, DC for business at the Pentagon, Marine Corps Base Quantico, and other Federal government institutions. Unfortunately, US Airways discontinued the OAJ-DCA nonstop service when it gave up takeoff and landing slots at DCA in order to obtain regulatory approval for its merger with American.

By: Airport Director Christopher White




Oregon


Proposal of City of Klamath Falls - Klamath Falls, OR

The City of Klamath Falls, OR, is requesting $500,000 in federal assistance to implement a $1,762,085 air service initiative. The Strategic Plan is to restore commercial air service to the Klamath Basin by adding nonstop SkyWest Airlines/United Airlines’ service to San Francisco International Airport.

Given southern Oregon’s geography and climate during the winter months, driving to alternate airports can take an excessively long time in bad conditions and be a major safety hazard. The lack of convenient access to and from the Klamath Basin hinders commerce and impedes economic vitality in the community. The closest commercial service airport is located in Medford, OR, nearly 80 miles one-way, an approximate 1.5-hour drive. Other airports used by area travelers include Portland, OR (5 hours one-way), SFO (6 hours one-way), Sacramento, CA (4.7 hours one-way), Redmond, OR (2.7 hours one-way) and Eugene, OR (3.2 hours one-way). When considering the cost of travel to these airports, LMT catchment area travelers pay an average of $456 to $803 roundtrip per flight. This is excessively high compared to the national average of $350.

By: City Manager Nathan Cherpeski




Proposal of Rogue Valley International-Medford Airport - Medford, OR

Medford is one of the fastest growing air service markets in the country. Rogue Valley International-Medford Airport broke the one million passenger mark for the first time in 2018. Since the Airport’s last Small Community Air Service Development Grant award, in 2012 for a regional marketing program, passengers have grown by more than 50%.

Airport leadership realizes it can’t rest on past success. It has worked with local community partners over the last six months to raise funding to match its Grant request. Local partners have dedicated $51,000 to match the request in this application, while the Airport has set aside $200,000 of its own funding. The Airport is seeking a SCASD Grant award of $750,000 to support a revenue guarantee for nonstop service to Chicago. This request is supported by United Airlines.

By: Airport Director Jerry Brienza




Proposal of Coos County Airport District - North Bend, OR

Southwest Oregon Regional Airport lost its Portland service in 2017, when PenAir filed for bankruptcy and closed its Portland hub. Oregon coast travelers used PenAir to connect to the Pacific Northwest’s largest airline, Alaska. The loss of service to Portland left those travelers without connectivity to their most common travel markets and without any link to the economic hub of Oregon.

The region’s businesses have mobilized to restore nonstop flights to Portland. Community partners have worked together to developing matching funds for this application for support under the Small Community Air Service Development Grant Program. They have matched their request for $750,000 in funding for a minimum revenue guarantee for Portland service with $735,000 in local funds, of which $685,000 come from businesses and agencies separate from the Airport.

Southwest Oregon Regional Airport is the only airport on the entire coast of Oregon and Washington with scheduled airline service. No other airport, along this 600-mile stretch, has airline flights. And the entire coastline is separated from the rest of the region by the Coast Range mountains.

By: Executive Director Theresa Cook




Proposal of City of Salem - Salem, OR

Salem is one of just five state capitals that has no scheduled airline service, joining Dover, Delaware, Topeka, Kansas, Frankfort, Kentucky, and Olympia, Washington. Of these cities, Salem is the largest, with a metro area of nearly 380,000 people. Salem is, in fact, the second-largest city in Oregon - larger than Eugene, Medford, Redmond, and Bend. There are more than 100 cities smaller than Salem, throughout the country, that support airline service.

The need for additional air service capacity in Oregon’s Willamette Valley is apparent. Portland’s airport is embarking on a massive expansion project to keep up with demand for service – and the expansion will be full as soon as its complete. PDX is adding six gates on one concourse, completely re-building another concourse, and doubling the size of its main terminal. Airlines have already leased all the additional gates that will be created, meaning PDX will be “full” as soon as the project is done in the mid-2020s. There will be no more room there for new carriers.

Salem can serve as a reliever airport, as it is closer that any other option for almost 600,000 people in
Oregon. Salem could also be an attractive alternative for those living in Portland’s quickly-growing south suburbs.

Salem Municipal Airport seeks a federal Grant of $750,000 to match the local funding that has been raised. In addition, Subject to City Council approval upon acceptance of a grant award, the Airport will provide landing fee and terminal rent waivers to the new carrier for a period of two years from the launch of service. The value of this incentive is dependent upon the aircraft used. The vast majority of the funding, 95%, for this project will be used as a minimum revenue guarantee to provide a financial backstop against any loss in the first two years of service. A total of $1 million has been earmarked for the MRG (refer to chart 14). Another $50,000 from this project will be used for local marketing and advertising of the new service.

By: City Manager Steven Powers




Proposal of City of Redmond - Redmond, OR

The City of Redmond, Oregon, the sponsor of this Small Community Air Service Development Program grant application, in cooperation with its private partners, is requesting $600,000 in federal assistance to implement a $1,012,715 air service initiative at Redmond Municipal Airport. The City of Redmond and the Central Oregon Air Service Team have formed a public-private partnership. This partnership has a history of air service success with the SCASDP and anticipates similar success with this initiative. This application is requesting assistance with a different project and goal from previous successful awards.

The goal of this grant application is to acquire daily, nonstop service to Norman Y. Mineta San Jose International Airport to meet the air service needs of Central Oregon. To achieve this goal, the Strategic Plan targets nonstop service by Alaska Airlines to SJC, which is supported by the airline.

By: City Manager Keith Witcosky




Pennsylvania

Proposal of Erie Regional Airport Authority - Erie, PA

We propose a $292,000 SCASD grant to fund operational expenses associated with year-round, twice-daily United Express service in the Erie-Washington Dulles market. A broad array of community partners is prepared to provide additional cash and non-cash funding to ensure the success of the service. Media partners have also committed $39,000 in in-kind marketing support.

Award of a SCASD grant will have a benefit beyond the service itself. Unlike most markets of its size in the region, ERI offers no low-fare carrier service today. This distinction is primarily driven by high legacy costs at the airport which make low-fare service uneconomical. To reduce those costs, the airport is engaged in a multi-pronged approach of cost-cutting and revenue generation. Attracting more network carrier service has the benefit of reducing the airport’s current cost disadvantage, potentially allowing low-fare service in the future.

By: Erie Regional Airport Authority, Derek Martin




Tennessee

Proposal of Millington Airport Authority - Millington, TN

Since 2007 Memphis has had among the highest average domestic fares in comparison to similar sized MSAs nationwide and in the southeast United States. In that same timeframe, Memphis domestic seat capacity is down a stunning 62% while every other large MSAs in the region is up. Memphis needs new air service to counter its decade long struggle with high fares and loss of nonstop service. This Grant application requests $600,000 in DOT grant funding, matched by $300,000 in local cash matching funds and $200,000 of in-kind support for a total grant funding of $1,100,000. Funding would be used for carrier financial risk mitigation and marketing support of new service, targeting Indianapolis and Cincinnati as new service routes that are most deficient and most likely to become self-sustaining quickly.

We urge the Department to approve this (our 5th) SCASD Grant application. We believe that the Memphis market meets all the air service deficiency criteria. We have a carrier ready to implement our grant proposal.

By: Executive Director Roy Remington




Texas


Proposal of Abilene Regional Airport - Abilene, TX

Abilene Regional Airport is proposing a Small Community Air Service Development Grant in the amount of $1,000,000 to supplement a community-based cash contribution of $200,000, and airport in-kind incentives valued at $300,457 to provide a minimum revenue guarantee for service from Abilene to Houston, TX or secondarily, Abilene to Denver, CO.

By: Abilene Regional Airport




Proposal of Easterwood Airport Management - College Station, TX

The grant requested is $400,000, with a 30% match of $120,000 from The City of College Station’s hotel tax fund for a total project budget of $520,000. The grant request and backing from City HOTTAX revenue will support advertising and implementation of the rewards system over a two-year period, with an option to extend an additional year, based on participation. The primary goal is to encourage ridership among community businesses and residents, combined with the focused commitment of key local travel generators such as Texas A&M University, driving increased flight frequency amongst our current air service providers. The plan also encourages additional destinations to our current air travel portfolio.

In 2015, Easterwood Airport Management was awarded a Small Community Air Service Development Grant for a minimum revenue guarantee aimed at acquiring additional service from CLL to ATL via Delta Airlines. After many discussions with Delta Airlines requesting air service to the Bryan/College Station area, Delta eventually concluded our market was not viable for their business model and comparing us to GRK – a similar sized market north of Bryan/College Station, in which they cancelled service in early 2018.

By: Easterwood Airport, Jeffrey Shaw




Proposal of City of Corpus Christi - Corpus Christi, TX

The Corpus Christi International Airport is asking for a $300,000 SCASD Grant to market the airport in the Coastal Bend region of South Texas . The community commitment to this initiative is $40,000. These funds would come from a combination of the Airport and a group of local businesses. The total project: $340,000.

The closest commercial airports are the San Antonio Airport (151 road miles) and the Houston Airports (Hobby is 227 road miles away, while Bush-Intercontinental is 228 road miles away). This relative isolation makes air service extremely important to the regional economy and its ability to attract industry.

By: City Manager Peter Zanoni




Proposal of El Paso International Airport - El Paso, TX

Through this application, the Department is being asked to approve a grant of $750,000 to provide the primary funding of a Minimum Revenue Guarantee for the ELP-IAD service. Non-stop air service between El Paso and the Washington D.C. area is the highest priority for our community, since it is the largest El Paso city-pair market without non-stop service. In addition, the proposed service would greatly benefit government, military and related contractor travel between the many federal government and military facilities located in the El Paso area and the National Capital Region.

This application is the first for a SCASDP grant made to the Department by the City of El Paso.

By: El Paso Int'l Airport, Monica Lombrana, 915-212-7301




Proposal of City of Killeen - Killeen/Fort Hood, TX

The City of Killeen, TX, the official sponsor of this Small Community Air Service Development Program grant application for the Killeen-Fort Hood Regional Airport, in cooperation with its private partners including incumbent airlines American and United, respectfully requests federal grant funding in the amount of $350,000 to be coupled with financial support from an established public/private partnership. The grant funds will serve to aid in the development and implementation a multi-year strategic marketing program which will act as the core catalyst for a comprehensive air service development growth initiative.

The City of Killeen was the recipient of a previous SCASDP grant awarded in 2005. Since the prior grant was awarded in 2005, it exceeds the 10 year period sited in the order; therefore, removing the same project restriction. This new proposal, although similar in scope, seeks to replicate and improve upon the successes of the prior award in a different air service environment than that of 2005.

By: Ronald Olson




Proposal of City of Laredo - Laredo, TX

The airport is proposing to waive landing fees and term inal rents for any new destination that would be served by the airport (in line with previous air service incentives). The Laredo International Airport will also waive any fees associated with gate fees, ticket counter, office space, and utilities. While the value of these incentives would be dependent on the weight, number of passengers, and frequency of the new aircraft service, using so me reasonable assumptions, we estimate the value to be approximately $175,000 along with the Airport contributing $250,000 to market ing for new route service. Laredo International Airport is requesting $850,000 to offset the costs associated with marketing and new airline startup costs including revenue guarantees.

The funding will be used for a revenue guarantee and marketing for new or expanded service for Laredo International Airport, specifically targeting service that would enhance competition and expand connectivity to cities like Phoenix, Denver, Atlanta, Chicago, and Los Angeles. Laredo International Airport has one of the highest average one-way ticket prices in the country of $330 and needs to expand service to increase competition and lower fares. Laredo International Airport is a key facility for the Southern border, with a population of nearly 300,000 people and at any given time 7500 federal employees who require robust air travel options for national security. The airport experiences an extremely high outbound leakage rate of 74% to other airports within the region, with the vast majority of that traffic going to SAT and AUS.

By: Airport Director Jeffrey Miller, 956-795-2000




Utah

Proposal of City of St. George - St. George, UT

Since the opening of the new St. George Airport in 2011, the airport management and the community leaders have worked diligently to recruit and upgrade air service. When the new airport opened, the only passenger service was Sky West Airlines operating as the Delta Connection with four daily EMB-120 flights per day to Salt Lake City International Airport. Since that time, the airport and the city of St. George have worked with Sky West to upgrade the service to Salt Lake City to CRJ-200 jet aircraft. The airport and the city have also recruited new jet service to Denver International Airport, Phoenix/Sky Harbor International, Los Angeles International Airport, and soon to Dallas/Ft. Worth International Airport.

To get additional flights by Sky West Airlines operating as United Express between St. George and Los Angeles the airport and the local St. George community will need to develop a risk mitigation program that will offset initial losses and cover operating costs for Sky West, and provide funding for local marketing and advertising. In order to create such a program that will be large enough to meet the airline needs, and provide an effective marketing program the St. George Regional Airport and the local St. George community will need a grant from the Small Community Air Service Development Program. To cover initial losses, operating costs, and local marketing, the St. George Regional Airport is requesting a grant of $370,000 from the US Department of Transportation. These funds will be matched by $100,000 in local cash, $100,000 of in-kind funding, and an Airport reduction in fees of $15,000 resulting in a total incentive package of $585,000.

By: Richard Stehmeier




Virginia


Proposal of Peninsula Airport Commission - Newport News/Williamsburg, VA

The Peninsula Airport Commission is requesting $650,000 in federal assistance to implement a two-year initiative in the amount of $1,789,195. The initiative would be via a public-private partnership for new service on United Airlines or at-risk service on SkyWest Airlines between Newport News/Williamsburg International Airport and Washington Dulles International Airport. The partnership would fund 64% ($1,139,195) of the total proposed program. The partnership’s non-airport funding sources would provide 45% of the cash ($600,000 of $1.35 million) while the airport would provide an additional $100,000 in cash and $439,195 of in-kind fee waivers.

By: Executive Director Michael Glardino




Proposal of Capital Region Airport Commission - Richmond, VA

The community is requesting a grant of $1,200,000 for revenue guarantee/risk mitigation and marketing with a community match of $300,000 for a total cash funding $1,500,000 for this project. These funds would be used to help recruit, initiate, and support daily nonstop service to either of the two largest metros on the US West Coast, the Los Angeles Basin or the San Francisco Bay Area.

previous SCASDP grant (FY13) was used to facilitate United’s launch of Richmond-Denver service in April 2016 and extended Richmond’s nonstop service to this western point. This service has been highly successful, but the airport lacks nonstop service to western US points beyond Denver including the Los Angeles Basin and the San Francisco Bay Area. These markets have significant demand but carriers have not initiated nonstop service on these routes due the risk and resource constraints associated with long-haul routes. A SCASDP grant would significantly help mitigate the risk that is preventing air service from RIC to these key markets.

By: Jon Mathiansen, 804-226-3001




Washington


Proposal of Bellingham International Airport - Bellingham, WA

The Airport secured a commitment for $300,000 in revenue guarantee and marketing cash from the Port of Bellingham. That money is being leveraged in this application as the local match for $750,000 in federal Grant funding to support nonstop Denver service. The total revenue guarantee of $1 million, with $50,000 in marketing cash, will be sufficient to successful secure Denver service and to ensure its success.

Bellingham has current service throughout the west on both Alaska and Allegiant. It has no service to the east of Phoenix, much less to the east of the Rocky Mountains. Connectivity between Bellingham and eastern markets is somewhat weak – especially in secondary cities that have no nonstop service to Seattle on Alaska. For these reasons, Bellingham’s top target for service is Denver. The ideal hub would be United’s, which offers broad connectivity from the Rockies to the east, in dozens of markets without current Bellingham connections.

By: Bellingham Int'l Airport, Rob Fix




Proposal of City of Pullman - Pullman, WA/Moscow, ID

The City of Pullman, WA, the legal sponsor, in coordination with the co-owner of PUW, the City of Moscow, ID, represent an interstate consortium and are requesting $780,000 in federal assistance to implement a $1,124,740 air service initiative. The Strategic Plan is to add nonstop United Airlines’ service to Denver International Airport. PUW has not applied for or received a SCASDP grant previously, and United Airlines fully supports this application.

PUW is nearing the completion of a $142 million airfield improvement program that provides a new 7,100 x 150 foot runway, which will meet the needs of existing and future commercial service operators. The Strategic Plan funded through the SCASDP will capitalize on these improvements, continuing a multi-year effort to improve air service at PUW.

By: Mayor Glenn Johnson

2002 Small Community Air Service
2003 Small Community Air Service
2004 Small Community Air Service
2005 Small Community Air Service
2006 Small Community Air Service
2007 Small Community Air Service
2008 Small Community Air Service
2009 Small Community Air Service
2010 Small Community Air Service
2011 Small Community Air Service
2012 Small Community Air Service
2013 Small Community Air Service
2014 Small Community Air Service
2015 Small Community Air Service
2016 Small Community Air Service
2017 Small Community Air Service

Index





Aerolineas Marcos, S.A. de C.V.

OST-1996-1693 - Mexican Taxi

August 2, 2019

Application for Renewal of Exemption

Aerolineas Marcos specifically seeks renewal of its authority to conductpassenger charter operations, using small aircraft, in foreign air transportation betweenany point or points in Mexico and any point or points in the US; and from a point orpoints in Mexico, via an intermediate point or points, to any point or points in the US,and beyond, as mutually agreed in writing by the US DOT and the Mexican Dirección General de Aeronáutica Civil in Mexico, provided that such serviceconstitutes part of a continuous operation, with or without a change of aircraft, thatincludes service to Mexico for the purpose of carrying local traffic between Mexico andthe US. Aerolineas Marcos also seeks authority to conduct other passenger charteroperations to/from the US, such as seventh-freedom passenger charter operations,subject to the prior approval requirements of 14 CFR Part 212.

Counsel: Roller & Bauer, Moffett Roller, 202-331-3300

Index





Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V.

OST-2015-0070 - Antitrust Immunity for Alliance Agreements


August 2, 2019

Answer of Alaska Airlines

Motion for Confidential Treatment and to Withhold Information from Public Disclosure

Alaska does not oppose DOT’s policy of granting ATI to airline alliances that satisfy the statutory requirements and, despite significant reservations, did not oppose Delta-AeroMexico’s application for ATI. Now, however, Alaska feels compelled to oppose the instant motion due to the anticompetitive and anti-consumer effects of Delta-AeroMexico’s immunized cooperation.

DOT should deny Delta-AeroMexico’s motion to eliminate the only remaining condition that provides some assurance of transparency and public accountability regarding the effects of Delta-Aeromexico’s immunized JV. DOT should resist pressure from Delta-AeroMexico to excuse them from the oversight that was a pre-condition to granting them ATI. Delta-AeroMexico will not be harmed by waiting until 2021 for DOT to conduct its de novo review as scheduled. US-Mexico markets are in flux, with the MEX slot system in transition and reductions in service by smaller carriers that are struggling to compete with the Delta-AeroMexico immunized JV. It is too soon to predict what outcomes and trends may emerge in these markets. Therefore, it would be premature for the Department to eliminate the five-year term limit condition, which is a vital competition-protection measure. Instead, DOT should engage in rigorous continuing oversight of the effects of its decision to grant ATI to Delta-AeroMexico. If Delta-AeroMexico decide to seek de novo review after five years, that will be a more appropriate time for DOT to evaluate the market, the impact of granting ATI to Delta-AeroMexico, and the effectiveness of the conditions DOT imposed.

Counsel: Cozen O'Connor, David Heffernan, 202-912-4800




August 2, 2019

Answer of JetBlue Airways

In support of their wholly unnecessary request, the Alliance Parties: (1) repeat flawed arguments about how a time limit will have a chilling effect on continued investment in the Delta/AeroMexico JV, (2) criticize the results of the Department’s well-reasoned and appropriate slot remedy while highlighting alleged, untested changes to the slot allocation system at Benito Juarez Mexico City International Airport that have only recently been introduced, and (3) trumpet the benefits they assert have already been achieved as a result of the JV. JetBlue urges the Department to reject these assertions and deny the Alliance Parties’ motion.

DOT’s decision to impose a five-year term limit on the Alliance Parties’ grant of antitrust immunity was the result of a detailed review of thousands of pages of materials, over a multi-year proceeding. The five-year condition was neither “arbitrary” nor a “threat… to the public interest.” Rather, the Department deemed an established expiration term appropriate after a thorough and reasoned analysis of several key foundational issues: a highly complex and fluid market, coupled with significant questions aboutmarket access and the ability of unaligned carriers to provide competition in a marketplace dominated by the Alliance Parties’ JCA. That foundation has not eroded, and is in fact still standing strong. In these circumstances, it is not appropriate to amend Order 2016-12-13. For all of the reasons noted herein, JetBlue respectfully requests that the Department deny the Alliance Parties’ motion in its entirety.

Counsel: JetBlue, Robert Land, 202-715-2565




August 2, 2019

Answer of Southwest Airlines

The Parties ask the Department to eliminate Condition 4 of the Order, which provides that “the approval and grant of antitrust immunity shall expire five years from the date upon which the Joint Applicants submit[ted] the notice described in Ordering Paragraph 2.” If the Department does not grant this relief, the Joint Applicants “move in the alternative that the Department amend Order 2016-12-13 by removing the expiration condition and substituting a periodic self-assessment procedure similar to that proposed for the American-Qantas joint venture in the Department’s recent Show Cause Order.”

Southwest opposes both requests

Southwest urges the Department to retain the current review provisions in the Delta-AeroMexico Final Order which place the burden on the Parties to demonstrate how continuing to grant ATI for their Joint Venture is in the public interest. These provisions are important safeguards for competition and will enable the Department to more effectively address competitive concerns in the US-Mexico and US-MEX markets.

Counsel: Southwest, Robert Kneisley, 202-263-6284

Index





Mexico Transportes Aereos, S.A. de C.V.

OST-1997-2801 - Exemption - Mexico-US Charters

August 2, 2019

Application for Renewal of Exemption

MTA specifically seeks renewal of its authority to conduct passenger charter operations, using small aircraft, in foreign air transportation between any point or points in Mexico and any point or points in the US; and from a point or points in Mexico, via an intermediate point or points, to any point or points in the US, and beyond, as mutually agreed in writing by US DOT and the Mexican Dirección General de Aeronáutica Civil in Mexico, provided that such service constitutes part of a continuous operation, with or without a change of aircraft, that includes service to Mexico for the purpose of carrying local traffic between Mexico and the US. MTA also seeks authority to conduct other passenger charter operations to/from the US, such as seventh-freedom passenger charter operations, subject to the prior approval requirements of 14 CFR Part 212.

Counsel: Roller & Bauer, Moffett Roller, 202-331-3300

Index






Virgin Atlantic Airways, Ltd., Delta Air Lines, Inc., Société Air France and Koninklijke Luchtvaart Maatschappij N.V.

Order 2019-8-2
OST-2013-0068
- Approval of and Antitrust Immunity for Alliance Agreements

Issued and Served August 2, 2019

Order to Show Cause

By this Order, the US Department of Transportation tentatively approves, and tentatively grants global antitrust immunity to, alliance agreements submitted by Delta Air Lines, Inc., Société Air France, Koninklijke Luchtvaart Maatschappij N.V., and Virgin Atlantic Airways, Ltd.

The proposed alliance would remove the existing gaps preventing full coordination between Delta’s two parallel joint ventures with Virgin on the one hand, and Air France/KLM on the other. As part of this tentative decision, we are also tentatively revoking our previous grants of ATI amongst the Joint Applicants as well as CSA Czech Airlines and Alitalia Compagnia Aerea Italiana S.P.A. after six months. As the Amended JVA will replace the previously immunized agreements, our previous grants of ATI will be obsolete. Further, while both Czech and Alitalia were included in previous alliance agreements, neither is included in the agreements at issue here. As such, the underlying predicate for ATI covering these carriers no longer exists. We are also proposing a five-year review requirement, as well as our standard conditions.

We direct all interested persons to show cause why we should not issue an order making final our tentative findings and conclusions discussed herein. Objections or comments to our tentative findings and conclusions shall be due no later than 14 calendar days from the service date of this Order, and answers to objections shall be due no later than 7 business days thereafter. In the event that no objections are filed, all further procedural steps shall be deemed waived, and we may enter an order making final our tentative findings and conclusions.

JetBlue has argued that, in order to grant ATI to the Amended JVA, the Joint Applicants must demonstrate, and the Department must validate, significant public benefits that will be generated by the Amended JVA. This is the standard the Department typically applies in a de novo alliance/ATI application. As we have stated above, the case before us is not a de novo application, but rather the replacement of two separate, and approved, alliance agreements with a single integrated agreement. As such, we must examine whether the Amended JVA would preserve and enhance the public benefits on which the grants of ATI for its predecessor agreements were predicated.

Based upon our analysis, we expect that the proposed transaction will maintain the existing public benefits that have been generated from the current SkyTeam and Delta/Virgin joint ventures and will likely incrementally increase consumer benefits overall.

By: Joel Szabat

http://www.delta.com/
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