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A B C D E F G H I J K L M N O P Q R S T V W Y

Related Pages:

• Essential Air Service Program

• Air Service Trends at Small Communities Since October 2000 - GAO Report on Commercial Aviation

• 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-2007-27370 - 2008 Small Community Air Service Development Program
  OST-2008-0100 - 2008 Small Community Air Service Development Program

Implementation of Small Community Air Service Development Pilot Program

Order 2002-2-11 is instituting a new small community air service development pilot program by soliciting a initial round of proposals from interested communities and consortiums of communities. Proposals should be submitted no later than 60 days after the date of service of this order to ensure priority consideration.

By:  Read Van de Water

The Department of Transportation is instituting a new small community air service development program by soliciting an initial round of proposals from interested communities. 

By:  Read Van de Water

By:  Terri Bingham

By this order, the Department awards financial grants to the communities listed in the attached Appendix to implement the air service initiatives proposed in their respective grant applications. Each grant is subject to the signing by each community of a grant agreement with the Department.

By:  Read Van de Water

By this order, the Department sets a final deadline of July 19, 2002, for the filing of all applications and supplements thereto under the Small Community Air Service Development Program.

By:  Read Van de Water

Order 2002-12-16, the Department awards financial grants to Telluride, Colorado, and Chico, California, to implement the air service initiatives proposed in their respective grant applications. Each grant is subject to the signing by the community of a grant agreement with the Department.

By: Read Van de Water

Small Community Air Service Development Pilot Program

Order 04-8-30
OST-04-17343
OST-03-15065 - Small Community Air Service Development Pilot Program
OST-02-11590 - Implementation of Small Community Air Service Development Pilot Program

Issued and Served August 30, 2004

Order Awarding Grants

The many proposals submitted were carefully considered. This year's selections will provide financial assistance to over 40 communities in 30 states. In every award, the communities are contributing to the grant project from other than airport revenues. Many will also contribute to the project from airport revenues and provide in‑kind airport benefits to further the goals of the proposed service/fare initiatives. In addition to the communities' participation and involvement in designing the grant projects, these financial contributions reflect a commitment to the grant projects that is important to the success of the proposed service/fare initiative. Nearly all of the communities either have, or will establish, public/private partnerships to increase community participation and to facilitate access to air service for the community.

By: Karan Bhatia

Abilene Regional Airport is regarded as a fertile ground for economic development. The arrival of Eagle Aviation Services, Inc. and Texas State Technical College's aircraft maintenance program represent two solid examples of successful economic development projects that would not exist in our community without the airport. In recent years, air service has been a priority for our community, as air service is consistently seen as Abilene's connection to the world and vital to the recruitment of industry, a healthy business climate, and good quality of life for this region. The Airport Master Plan recommends pursuit of a marketing program that will help the Airport build activity within its business segments.

By:  City of Abilene, Roy McDaniel

A

By:  Akron/Caton, Ohio

The only service provider in the Albany market is Atlantic Southeast Airlines/Delta Connection, with non-stop service to Delta/ASA's hub operation at Atlanta. The carrier recently made the decision to reduce the number of daily frequencies offered at Albany essentially in half by replacing EMB-120 Brasilia aircraft with Canadair Regional Jets. While the number of seats offered dropped slightly, the more important factor for small community air service is schedule frequency.

The Southwest Georgia Regional Airport is fully cognizant of the fact that there are limited airlines that have the ability and/or interest in initiating service to small markets such as Albany. With increasing costs and more expensive fleets, the focus of most airline systems is upon larger markets where the return on investment is more apparent than at smaller communities such as Albany. This does not change the fact that Albany does offer a strong and profitable opportunity for specific airline systems. These "target" carriers are identified below, along with the traffic and revenue potential Albany offers each.

By:  Richard Howell

Enclosed, please find two proposals by the State of Alaska to participate in the above referenced Docket Small Community Air Service Development Pilot Program. The Alaska Department of Transportation and Public Facilities (DOT & PF), which operates 262 of the 282 public use - publicly owned airports in Alaska, is the sponsor of these proposals. All communities serviced by these proposals are public non-hub and smaller airports serving rural communities that have limited and expensive air service. Nearly all such communities affected do not have any highway access; none are within one hour by roadway to a hub airport. Proposal One is statewide. Proposal Two addresses the communities on Prince of Wales Island in Southeast Alaska. The essence of statewide Proposal One is to hire a consultant to evaluate and address how aviation insurance costs are adversely affecting air service in rural Alaska and to develop a plan to remedy this situation. Projected budget is less than $240,000. Air carrier insurance has become a significant cost driver for air service in rural Alaska. It is anticipated the results of this analysis could have national benefits.

By:  State of Alaska, Paul Bowers

The Aleutians East Borough, representing the communities of King Cove, Sand Point, Akutan, Cold Bay, False Pass and Nelson Lagoon, is seeking a Federal grant of $240,000 under the Small Communities Air Service Development Pilot Program. We are applying for this grant to address several air service issues that are important to general economic conditions in these communities and the region as a whole.

By:  Aleutian East Borough, Dick Jacobsen

A B C D E F G H I J K L M N O P Q R S T V W Y

The current financial climate for airlines is very demanding. As a result, they are very risk averse at the present time. For Angel Fire to be successful in establishing new air service, we will undoubtedly have to address the issue of risk for the airline. This means that we will need to provide some level of revenue guarantee for the airline to initiate the service. Our grant application addresses this need by calling for funds set aside to meet this guarantee, if needed during the first year of service.

By:  Angel Fire

By:  Arizona Airports

By:  Asheville Regional Airport, Mike Armour

The overall goal is to achieve a strong market at Aspen Airport, attract new air carriers, lower air fares through competition, increase enplanements, and improve the overall quality and safety of air service that relies on the quality of operating equipment. On the attached Exhibit "C", Aspen Airport's start-up expense projections for a new entrant airline is estimated to cost at over $1,000,000 Dollars. A portion of this grant request is for $250,000 to partially offset start-up cost related to the new service at the Aspen Airport. Additionally, the local community through the Aspen Ski Co. and Stay Aspen/Snowmass have committed their share of $30,000. The following outline presents our view of allocation of funds.

By:  Aspen, Thomas Busker

The innovativeness and simplicity of the plan revolves around the acquisition of an aircraft, jointly owned and administered via an inter-governmental agreement by the City of Newport, Oregon and the Port of Astoria, Oregon. The aircraft would be purchased using Federal Government grant money derived from the Small Community Air Service Development Program under AIR 21. That aircraft would then be dryleased back to Big Sky Airlines of Billing, Montana for a nominal annual lease payment. In exchange, the Consortia of Communities would receive an average of 8 block hours each weekday (diminishing on the weekend) that would be used to provide three daily roundtrip flights from each Astoria and Newport to/from either Portland International Airport and/or Seattle/Tacoma International Airport. In exchange for the nominal lease payment the airline would provide the requested service and is willing to pass the cost savings realized back to consumers using the Astoria and Newport airports.

By:  Astoria Regional Airport

A B C D E F G H I J K L M N O P Q R S T V W Y

Grant of this application will benefit two severely underserved communities. It will provide the Ohio University/Athens community with direct access to the national air transportation system for the first time, and will restore service between Morgantown and its primary community of interest, Washington/Baltimore. As is described in the application, the parties have already invested substantial funds to develop the strategic plan and infrastructure to accommodate the proposed service. The total grant requested is $2.585 million, to be authorized as a single grant and disbursed over a three­year period. Service will be performed by Boston-Maine Airways, d/b/a Pan Am Clipper Connection, which will stress affordable fares and quality performance. The parties project that the proposed service will attain self-sufficiency by the end of the three-year timeframe. Ohio University will serve as the legal sponsor. It will be responsible for implementation of the service contemplated under the grant, including monitoring performance and serving as the clearinghouse for disbursements under the grant.

By:  Gerchick Murphy, Patrick Murphy, 202.298.7262

Atlantic City, New Jersey - See South Jersey  Transportation Authority

The Augusta-area qualifies for the Small Community Air Service Development Pilot Program: 1) 206,171 passengers were enplaned in calendar year 1997. 2) Delta Connection Carrier Atlantic Southeast Airlines and US Airways Express provide our service. Fifty-one percent of our one-connect destinations are served by only one airline. Delta serves 90 percent of these monopoly markets. 3) Fares paid by travelers out of AGS are the highest in the region, and 21 percent higher than the U.S. average for trips of the same length. We are proposing a simple plan of landing two new airlines to provide non-stop jet service to our top destinations of New York, Washington, DC, and Chicago. It is our desire to establish the Augusta Regional Airport as the portal to the national air transportation system, and the economic engine for the CSRA. Our private partners and corporate community have a cooperative focus committed to the plan. The total cost of our plan is $2,180,270. The public share is 30 percent, private share 35 percent, and the federal grant request is for $759,004 (35 percent).

By:  Augusta Regional, Marcie Wilheimi

B

As shown in the Air Service Development Action Plan (Exhibit B) and "Franchise Summary" (Exhibit C), Baker City intends to provide air service to residents of Baker City and nearby communities through the use of the "Sky Taxi" Program. Sky Taxi is an on-demand air service utilizing centralized dispatch to make more efficient use of the fleet of aircraft available to it, while still providing timely service to the passenger. This is a startup operation with first flights being conducted April 1, 2002. Presently, there are eight franchisees in the Sky Taxi system although, as yet, only three of the franchises have their aircraft flying. The others have either purchased aircraft and they are in the process of renovation, or are still seeking appropriate aircraft.

Because of the newness of the Sky Taxi model, and its attendant uncertainty, the City Council of Baker City has been reluctant to finalize purchase of the Sky Taxi franchise and associated airplane. The operating budget of the Municipal Airport has historically been between $15,000 and $25,000. These funds are entirely spent on maintenance. Income, derived from ground leases and a small fuel flowage fee, has never reached expenditure levels. These amounts are clearly far below the funding levels necessary for an air taxi business.

By:  Baker City

May 15, 2003

OST-02-11590 - Implementation of Small Community Air Service Development Pilot Program

Ex Parte Letters to Honorable Peter DeFazio, Darlene Hooley, Earl Blumenauer, Greg Walden and David Wu

Ex-Parte Letters supporting reallocation of grant funds returned by the City of Baker, Oregon, to other Oregon communities under the Small Community Air Service Development Pilot Program.

By: Read C. Van de Water

BGR's present air service situation is perhaps best summarized as stable yet fragile. The Airport is able to offer the traveling public a modest range of options consisting of connectivity via four hubs (CVG, PHL, BOS, LGA), an increasing number of regional jet flights, and one leisure oriented large jet flight to Florida (SFB) with an intermediate stop at Baltimore (BWI). The service mix is highly seasonal, with the peak occurring during the busy Maine summer months, and airline presence is via regional, express or niche carriers. BGR has 21 daily nonstop departures the majority of which are jet service. Of the current daily total seat capacity of 886, 76.3% are seats on jet flights while 23.7% are seats on turboprop flights.

New and/or expanded regional jet service to national hubs on network carriers is critical to the economic health of the Bangor region's marketplace. The Airport and its air service consulting group, have identified the addition of new service by new or resident carriers to hubs as a priority. At present, the Airport lacks non-stop service to Chicago (ORD), Detroit (DTW), Washington-Dulles (IAD), Newark (EWR), Cleveland (CLE), Atlanta (ATL), and Pittsburgh (PIT).

By:  Bangor Airport, Rebecca Hupp, 207.947.0384

A B C D E F G H I J K L M N O P Q R S T V W Y

A significant deficiency exists in service to the western United States. Four of BTR's top ten destinations are in the west Denver (DEN), Las Vegas (LAS), Los Angeles (LAX) and San Francisco (SFO). All customers flying west must travel east to ATL or transit hubs at Dallas/Ft. Worth or Houston. Travel to the state capitols of Idaho, Montana, Wyoming, or New Mexico can't be reached without transiting two major hubs to the east. These state capitols could be accessed directly if a hub to Salt Lake City, Utah; Denver, Colorado; or Phoenix, Arizona was available.

By:  Baton Rouge, Anthony Marino

Currently, the airport only has charter service available. The charter service is cost-prohibitive to most people. Baxter County Regional Airport lost its commuter service September 30. 2001, when Big Sky Airlines discontinued service, hence, the need for this grant.

By:  Baxter Airport Commission, David Floyd

By:  Beaumont, Carl Griffith

A B C D E F G H I J K L M N O P Q R S T V W Y

The Raleigh County Memorial Airport is located 31/2 miles south east of Beckley, West Virginia, 3 miles from the intersection of (2) two interstate highways, geographically the hub of the Southern Corridor, serving a 5 county region with a population of over 200,000. The Airport is currently served by US Air Express under the Essential Air Service (EAS) program, with three flights daily to Pittsburgh, PA, and 1 flight to Washington DC Dulles. The lack of completive air fares, and poor connections prompted our decision to request consideration for the Air Service Development Grant.

By:  Beckley/Bluefield, Tom Cochran

By:  St. Clair

The amount of Federal Funds requested under this application is $301,500. Bellingham International Airport (BLI) is owned and operated by the Port of Bellingham and is classified as a commercial service airport providing scheduled and charter air service to the public, and General Aviation facilities and services to the community and region. Currently, Horizon Air provides direct service to Seattle (SEA-TAC) on regional airline-class turboprop aircraft. In addition, West Isle Air provides passenger service to island destinations west and southwest of Bellingham. An additional regional airline (United/Skywest) served Bellingham prior to the terrorist attacks last September.

By:  Port of Belligham, Jim Darling

The airport has identified two distinct air service upgrade needs: Washington, DC Service. The current service to Washington is operated by United Express with Jetsream-41 aircraft. These 29-seat airliners do not provide the capacity to support the market. In particular, the small cabin precludes carry-on, including, depending on seat assignment, items as small as a laptop computer. Cabin comfort levels are poor as well. Finally, these aircraft often are load-restricted, leaving passengers or baggage off. Studies done by the Airport indicate that major defense and high-tech employers in the region who do much business in Washington are avoiding flying out of Binghamton because of this.

Another identified need for Binghamton is more westbound access. Currently, Northwest Airlink provides service to Northwest's Detroit hub with four daily Saab-340 turboprops. For reasons similar to those above, this service is felt to be able to attract significantly more traffic were it upgraded to regional jet service.

By:  Binghamption, Carl Oslon, 607.763.4471

Enclosed is our proposal for the subject program. Our program proposes the creation of a new regional route system that links Bismarck with other cities in the northern plains states. Existing air service from Bismarck primarily connects through Minneapolis or Denver. This service is expensive, time consuming, and not practical for businesses, professionals, and others with a need for efficient air service within this region. We are considering the following cities for this route system.Fargo, ND, Sioux Falls, SD, Rapid City, SD,Billings, MT

By:  Bismarck, Bill Sorenson

A B C D E F G H I J K L M N O P Q R S T V W Y

CIRA has emerged as the second busiest airport in Illinois outside of Chicago. Because of economic and demographic shifts, CIRA is now depended upon by over 1 million people for air service access. CIRA is the gateway for a range of global industries located in Central Illinois. However, access to and from large portions of the Western United States, Mexico, Central and South America remains limited. CIRA's analyses have indicated that the addition of access to a true westbound gateway hub will allow the airport to fill the needs of industries and employers seeking to expand and create more jobs in Central Illinois. The proposal meets the spirit and the letter of the intentions of Congress by stimulating traffic at a centrally located regional airport facility while generating incremental traffic through a major hub airport.

Central Illinois Regional Airport herein requests a grant under the terms of The Small Community Air Service Development Pilot Program to recruit and incubate specific additional air service that will help resolve the region's problem of insufficient air service to the West. Specifically, this proposal entails a risk-abatement program for the recruitment of Continental/Continental Express jet service to Houston Intercontinental or Frontier JetExpress/Mesa service to Denver International. Central Illinois is currently an entire region of the country with inadequate air service access to communities in the Western United States, as well as Latin America.

By:  CIRA, Micheal Lapier, 309.834.7375

The Brunswick Golden Isles Air Service Partnership wishes to participate in the Department's Small Community Air Service Development Pilot Program. As the public sponsor of the Partnership's application, the Glynn County Airport Commission hereby proposes to implement a new "Brunswick Golden Isles Air Service Initiative", and applies to the Department for a grant under the program in the amount of $400,000. The Partnership has identified $125,000 in local funding from members of the Partnership to augment funds available under the grant.

Glynco Jetport (soon to be renamed Brunswick Golden Isles Airport) has inadequate air service for the needs of the community. Service has been historically limited to small turboprop service to one destination, Atlanta, our number one O&D market. Inadequate capacity, inferior equipment, insufficient frequencies and high fares have resulted in the majority of the air travel market to and from the Brunswick area opting to use jet services at Jacksonville and Savannah.

By:  Glynn County Airport Commission, Steven Brian, 912-265-2070

This Grant Request seeks 5500,000 n federal funding to be combined with a $150,000 contribution from the airport, local Chambers of Commerce and Economic Development. Per the attached Application, these funds would be used to leverage Southeast Iowa's regional air service and economic development initiatives - promotions to support incumbents and incentives to attract additional carrier service to BRL and the region. The Southeast Iowa Regional Airport Authority will serve as the grant sponsor, working in cooperation with the Southeast Iowa citizen-based air service task force, which will serve is community contacts.

By:  Burlington, Sharon Leeper

A B C D E F G H I J K L M N O P Q R S T V W Y

C

The Camden Regional Airport Commission and the Ouachita Partnership for Economic Development, Inc respectfully request a grant amount of $500,000.00. A combined, dedicated fund of $50,000.00, pr ten per cent (10%) of the grant amount requested could be offered as a local share in support of this grant request.

By:  Camden, Fred Duplantis

By:  Cape Giradeau, Bruce Loy

The Commission proposal seeks $2,750,000 in federal funds to be combined with $375,000 from airport resources to produce $3,125,000 in available air service development funds for The Eastern Iowa Airport. The attached application outlines the use of these funds for activities directly related to maintain or increase incumbent airlines' mainline aircraft service, to develop new airline service including but not limited to, research and analysis of The Eastern Iowa Airport air service needs for new air routes and lower airfares, to develop airline revenue guarantee programs, and to utilize advertising assistance programs.

By:  Cedar Rapids, Lawrence Mullendore

This Grant Request seeks $315,000 in federal funding to assist the Task Force in meeting its objectives. Combined with $100,000 from the Chattanooga Metropolitan Airport Authority, these funds will be used to leverage our community's air service initiatives. As outlined in the attached application, our project proposal includes a variety of air service activities - an incentive program to achieve fare parity with nearby airports, advertising to promote the benefits of flying from Chattanooga Metropolitan Airport and marketing support to attract new service to our community.

By:  Chattanooga, Bob Corker

The consortia is asking for matching funding from the Small Community Air Service Development Pilot Program in the amount of $500,000 (An additional $700,000 will be invested by the local communities and the State of Wyoming.) The total project cost is $1,200,000. The initial $1.2 million will be used toward the initial aircraft purchase, initiation of service and marketing costs. (Average cost of proposed aircraft is $884,100.) The consortia will draft a lease agreement and operating agreement with Big Sky pursuant to grant funding, before the aircraft purchase. Initially, the aircraft will be leased to Big Sky at a minimal amount for three years. Following the three year period, a reevaluation and negotiation of future lease agreements shall be forged. Big Sky code shares with Northwest, Alaska, and America West airlines; neither community currently has access to these carriers. To promote the sustained, long-term support of the service: following the initial marketing and start up period, the consortia will devote at least $60,000 annually to marketing campaigns and a minimum of $100,000 in pre-purchased travel programs which are part of local business' commitment to this public-private partnership.

By:  Natrona, Dan Mann

A B C D E F G H I J K L M N O P Q R S T V W Y

The City of Chico is submitting this application for funding our Air Service Development program. The City operates the Chico Municipal Airport (CIC) which serves northern California as a non-hub commercial service facility. The City is working with the Chico Chamber of Commerce in attracting new or improved air service. This grant would augment the existing air service development program underway since 2000. The City of Chico has budgeted $30,000 in airport revenues in developing a Ticket Lift Survey, an air service profile and recommendation analysis with its consultant Sixel-Boggs, & Associates, and marketing materials. A $44,000 grant award to the City of Chico will allow us to complete the third, fourth, and final phases of our air service development program. We have identified the following remaining critical requirements: Analyze the routes to determine air carrier costs and profitability of operating in that market. • Identify best methods of solicitation. Solicitation of the air carriers.

By:  City of Chico, Robert Grierson

As you review our proposal, you will note that 20 years ago, we had close to 35,000 passengers depart from our airport each year. Today, our annual enplanements are around 10,000, due to inconvenient flight schedules and unfavorable ticket prices. If awarded the D.O.T. funds, we will utilize the money to provide incentives for our existing airline to minimize the financial risk of adding a third daily flight (fourth flight in summer months). We would also conduct a feasibility study to add a fourth daily flight. We are committed to making this program work. Together, the Minnesota Department of Transportation, the surrounding communities, and the Chisholm-Hibbing Airport Authority have the potential and will contribute the necessary financial support to this program. A committee of surrounding community leaders has already been working on improving our air service for the past year. Given this opportunity to improve our air service, we respectfully submit the following proposal that includes a grant request of $597,500.

By:  Chisolm-Hibbing

Money from this grant would be used to subsidize scheduled air service operations by Pan Am, Boston-Maine Airlines, for o period for up to three years.  There is no question that Cincinnati travelers pay among the highest air fares in the country. It is also no secret that many air travelers drive to other airports in order to avoid the high ticket prices at CVG (see sample letter). Most of the people we spoke with in regards to our questionnaire, immediately identified the high tickets prices at CVG as their main reason for wanting to take advantage of Lunken Airport if a scheduled service became available. Among other advantages, Lunken is located within a fifteen minute drive for the great majority of business travelers, and our North Wing Terminal is presently equipped to immediately handle passenger service.

By:  Cincinnati Airport, Daniel Dickten

By:  Clovis-Hobbs, Bill Gatchell

A B C D E F G H I J K L M N O P Q R S T V W Y

Our application to the DOT requests that a grant of $300,000 be made available to assist in the funding of a new Columbus Regional Air Service Marketing and Development Program. This grant from DOT FY2002 funds, combined with $100,000 in funding from the Coalition and $30,000 in in-kind services made available by the Commission, would be dedicated to support the implementation of the Program for one year from the date of the execution of the grant agreement. We anticipate that this first year of the program will extend from the summer of 2002 to the summer of 2003.  The immediate focus will be on hiring an advertising agency to create an aggressive media campaign to encourage regional travelers to fly to and from CSG, rather than driving to Atlanta Hartsfield. This effort will be augmented by the initiation of incentive programs that support this same immediate objective. Marketing to airlines will continue, with the added element of incentive funds for new services and upgrades of service to jet equipment.

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

Kinetic Enterprise Systems, Inc has been actively involved in starting JetLink (a business concept name, not the actual airline name), a Part 135 Scheduled Airline. JetLink will provide short haul air service that connects small communities to major hub airports. JetLink will connect small markets within 200 miles of the Washington Baltimore metropolitan area to one or more of the five regional hub airports. High frequency service will be provided with single engine turbo-prop aircraft (i.e., Cessna Grand Caravans), having 9 passenger seats, and providing as many as 8 departures and arrivals per day at small community airports. 1998 changes to FAA regulations permit using this class of aircraft for commercial passenger operations under Instrument Flight Rules (IFR). This class of aircraft permits for the first time an economically viable solution to short haul "Third Tier" air transportation demands. Culpeper County has offered to sponsor Kinetics efforts to start and base the proposed operation at the Culpeper Regional Airport.

A total of $ 4.0 Million dollars is requested as grant-in-aid funding under the PL 106-181 Small Community Air Service Development Program. This funding will be used to initiate and provide service to six communities within 18 to 24 months and will thereby service an estimated 120,000 customers across a large geographic area. If this pilot program is successful continued expansion to new regions is anticipated.

By:  Culpepper, Frank Bossio

By:  Wayne Leery

D

By:  Danville, Jerry Gwaltney

The Coalition has a Well-Defined Plan for Use of Air21 Funds. Below efforts assume that DAY would be granted $1.5M in Air21 funding - Requested amount based on short-fall for DAY programs outlined in following pages Coalition would use all Air21 funds to improve DAY's low-fare service - AirTran Airways would be Coalition target for east coast service.  Frontier Airlines would be Coalition target for west coast service. Specifically, Coalition intends to use Air21 funds for three purposes:

• Portion of AirTran/Frontier revenue guarantee

• Co-op marketing campaign for AirTran/Frontier

• Defrayal of service launch costs related to new AirTran/Frontier service

By:  Dayton Airport, Eugene Conrad

OST-02-11590 - Implementation of Small Community Air Service Development Pilot Program

August 17, 2004

Re: Request for Final Determination from Daytona Beach International Airport

In accordance with Article A.2. of the above referenced Grant Offer and Agreement, this letter is to request final determination of the Federal Share of the aforementioned Grant in accordance with the approved Grant Application and Grant Offer and Agreement dated September 20, 2002, copy enclosed as Attachment 2.

To date, Continental Airlines' performance at Daytona Beach International Airport has greatly exceeded projected traffic levels presented in the 2002 SCASDPP Application to DOT. Between December 2002 and July 2004, Continental has generated 118,927 total passengers in Daytona Beach through the daily nonstop service to Newark / New York, and additional nonstop seasonal service to Cleveland and Tampa. At the same time, Delta Air Lines passenger traffic has also continued to increase. In December 2003, Continental extended its Airport Use Agreement for two additional years and Delta air Lines extended their Use Agreement for five additional years. Further discussion in June 2004 with Continental executives indicated the carrier is well satisfied with its decision to restart Newark / New York service in Daytona Beach. We are now in position to look forward to additional frequencies to Newark / New York as well as a continuation of nonstop seasonal service to Cleveland and Tampa in December 2004. Other airlines are also now considering serving the Daytona Beach market. These positive changes could not have developed without DOT assistance under the Small Community Air Service Development Pilot Program.

By: Daytona Beach Intl. Airport, Stephen Cooke, Director of Business Development, 386-248-8030

A B C D E F G H I J K L M N O P Q R S T V W Y

The City of Del Rio had air service to Dallas/Fort Worth, Texas supplied by Lone Star Airlines/Aspen Mountain Air until September 1998. All passenger service was terminated when the company encountered financial difficulty due to problems in another State. Local businessmen report the Del Rio leg of their service was self-sufficient. A copy of the Aspen Mountain Air and the Lone Star Airline schedule is attached as EXHIBIT A.  The Del Rio International Airport is a general aviation airport. Our airport is scheduled for major improvements and runway extension to 6,300 feet in the current Texas Department of Transportation Aviation Capital Improvement Program.

Surveys consistently identify Dallas/ Fort Worth (DFW) as the preferred destination because of the ease in making connections to any place in the world. Due to our history of keeping air service, we believe a 19 passenger turbo prop such as the Metro Liner would be the airplane that would deliver the most seat miles per dollar invested. Air One express has six (6) Metro Liners in operation. One (1) is set up as a passenger aircraft, one (1) is set up as a "Combi" capable of delivering passengers and cargo, and the remainder are presently utilized in air cargo operations.

By:  City of Del Rio, Texas, Rafael Castillo

The City of Del Rio, Texas submitted their proposal for the Small Community Air Service Development Pilot Program on April 8,2002. I have reviewed the proposal and found an error on page 3 of the proposal. I used the word "month instead of the word week". Please substitute the corrected page in our proposal.

By:  City of Del Rio, Texas, Rafael Castillo

The public sector participants, who include the U.S. Department of Transportation, will provide $1,000,000 in financing for the revenue guarantee element of our program, $25,000 in assistance with service promotion, and $100,000 in reductions in airport operating costs during year one. Private sector businesses will provide a minimum of $1,000,000 in pre-paid travel commitments during year one. Our program has been designed to help mitigate the business risk a low fare airline faces during the critical start up phase. Our program also mitigates the risk for the US DOT by incorporating a significant pre-paid ticket element - if the low fare airline meets its performance forecasts the revenue guarantee would not be needed and the Small Community Air Service development funds would not be expended.

By:  City of Des Moines

A B C D E F G H I J K L M N O P Q R S T V W Y

We are requesting this grant to help this Community retain the new airline service which, at this time, is being offered on a trial basis and is artificially sustained by revenue guarantees. For this service to continue, a significant marketing effort is needed in both the local area and in the new markets served to allow for these routes to attain financial self-sufficiency, without subsidy, in this market. We are also requesting this grant to assist this Community in obtaining an additional, competing carrier in the Durango-Denver market. Durango is at a significant fare disadvantage, paying as much as a100% fare premium over business fares to Denver from Farmington, NM, a 50 mile drive and a significantly smaller airport. To attract service on this route, vie propose the use of a "Travel Bank" to guarantee support from the business community without requiring direct subsidies or revenue guarantees.

By:  Durango, Fred Klatt

E

A B C D E F G H I J K L M N O P Q R S T V W Y

The cities of El Dorado, Camden, Magnolia, and Hampton, Arkansas are pleased to submit this proposal to improve airline service in South Arkansas and make the Essential Air Service investment pay off. Our proposal requests funding assistance of $400,00 0 to stimulate local air traffic with a new, more reliable airline carrier. We will offer subsidized introductory fares and enhanced regional advertising to restore public confidence and market this new service. Community businesses and organizations have committed $100,00 0 of their own in cash matching funds to support this proposal. Enplanements are projected to double as a direct result of this program after the first year. Our ultimate objective is to grow off subsidy with self-sufficient air service.

By:  South Arkansas Consortium, Mike Dumas

Included with this letter is the City of Eugene's Small Community Air Service Development Pilot Program grant application. The City of Eugene, sponsor of the Eugene Airport, Mahlon Sweet Field, and the Eugene Area Chamber of Commerce have formed a public-private partnership for the purpose of securing commercial air service deemed critical to the economic development of the region. Prior to filing this application, the Eugene Airport conducted extensive research and analysis of the local air service market and completed passenger and profitability projections for the air service proposed herein. Because of its route system and aircraft type, Delta Connection is the logical airline to provide the air service proposed. Under separate cover, Delta Air Lines has provided a letter-of-support for this grant request. The purpose of this grant request is to: Improve air access from the Eugene region to key destinations in the eastern United States that are currently capacity-constrained from the Eugene Airport. Meet local demand and stimulate air travel from Eugene to Salt Lake City and primary destinations in the eastern United States.Proposed service: Eugene - Salt Lake City, two round-trips daily provided by Delta Connection, (50-seat) Canadair Regional Jet aircraft.

By:  Eugene, Bob Noble

A B C D E F G H I J K L M N O P Q R S T V W Y

By:  Evansville, Robert Working

F

By:  Bishop International/Flint, Pat Corfman and Ungaretti Harris, Edward Faberman

Dubuque and Fort Dodge are 208 miles apart. Dubuque serves the Northeast quadrant and Fort Dodge serves Northwest quadrant of the State. While both communities have identified different needs and different strategies, we feel we can cooperatively move forward to enhance the air service for our regions. While our varied economic sectors are currently under financial stress (agriculture, manufacturing, distribution, education and service sectors), we feel strongly that improved service qualities and more accessible air service will enable these sectors to again become viable by connecting to other regions and to the global economy.

By:  Fort Dodge and Dubuque

A B C D E F G H I J K L M N O P Q R S T V W Y

By:  Fort Smith

The success of attracting a low-cost airline at FWA would, we believe, result in a decrease of average air fares and less restrictive air fare rules by our incumbent carriers. Additionally, new service initiatives for non-stop/one stop service to our two largest origination and destination markets would be expected to increase passenger enplanement activity above the record year of 2000 via these service enhancements. Assistance with funding to facilitate these changes will bring positive results and would reclaim the nearly 15% loss of passengers which was experienced during 2001. Passenger enplanements are presently continuing a downward spiraling trend even over the 2001 result due to non-competitive air fare pricing and restrictive fare rules which the community is presently having to deal with.

By:  Fort Wayne, Ct. T. Miller

To address this lack of low fare service, the City of Fresno's Department of Transportation, along with the Fresno City and County Convention and Visitors Bureau and the Economic Development Corporation of Fresno, proposes to establish a "travel bank" to attract a low fare carrier. It will work as follows: $1 million as "seed money" for the travel bank will be provided by the Small Community Air Service Development Pilot Program. Local businesses, public and private agencies, and individuals will put up $1 million to match. Once a written agreement with a carrier is reached, travel bank stakeholders will begin depositing money in an escrow account. From the date of the agreement, the community partnership will have 180 calendar days to collect $1 million in local matching funds. If after 180 days the full $1 million in matching funds has not been met, the $1 million grant will be returned to the U.S. D.O.T.

By:  Fresno, Severo Esquivel

A B C D E F G H I J K L M N O P Q R S T V W Y

G

The Gainesville Alachua-County Regional Airport Authority is requesting $500,000 for a Small Market Air Service Development grant from the FAA in fiscal year 2002 as a pilot program funded through Air 21. As described above, Gainesville has struggled over time to capture the air travel market that exists in this community. Award of this grant will allow the community to implement a focused program that helps capture "leakage" and entice new competition to Gainesville Regional Airport. The airport, as the sponsor of this grant application, will be responsible for the overall administration of this program.

By:  Gainesville Regional Airport, Richard Crider

Please accept this application from Grand County, Utah on behalf of Canyonlands Field for consideration of funds from the Small Communities Air Service Development Pilot Program. The requested amount of funding is $280,000.  The money we are requesting would be used to advertise in numerous national and regional magazines, in private airport newsletters, and through television and radio. It would also be used to build a covered outdoor picnic/observation area to add to the existing landscaped area. The scenery from Canyonlands Field is unequalled, and being able to spend time outdoors at the airport would make wait-times much more appealing.

By:  Grand County

The Walker Field, Colorado, Public Airport Authority, respectfully submits this application and proposal under the Small Community Air Service Development Pilot Program to address air service challenges and opportunities unique to the Grand Junction, Colorado area. The Airport Authority is the sponsoring governmental entity for this application and proposal, and is the operator of the Airport. The requested amount of funding is $89,842.  Currently, Walker Field receives service from three (3) affiliate airlines operated by 2 regional air carriers-Mesa Airlines (America West Express) and SkyWest Airlines (Delta Connection and United Express), with non-stop service to Phoenix, Salt Lake City, and Denver, respectively. The three (3) affiliate carriers provide up to eighteen (18) departures per day, with connecting service at each of the large hub cities. Of these eighteen (18) flights, only one is operated with regional jet equipment. All other flights are operated with propjet aircraft.

By:  Grand Junction, Corrine Nystrom

A B C D E F G H I J K L M N O P Q R S T V W Y

The Greenbrier Valley Airport is located in Lewisburg, West Virginia in the southeastern portion of the state. In recent years economic development in this region has been hampered by limited local air service and high fares. Community leaders and the airport have created an air service development strategy designed to promote regional economic growth by improving local air service, and we are requesting DOT support in implementing this plan. Our plan includes a substantial local financial commitment to complement the DOT funding.

We are requesting DOT support for launching year-round daily regional jet service to Pittsburgh. Approximately 60 percent of local air passengers are traveling to or from markets in the North, and the Pittsburgh hub offers convenient access to the majority of those markets. Based on the strong response to the peak season regional jet service to Atlanta launched in 2001 we believe that service to Pittsburgh will be self-sustaining by the third year of operation.

By:  Greenbriar, Jerry O'Sullivan

In order to accomplish this objective the Coalition has engaged a firm that specializes in air service programs for small resort communities. In working with this firm, it has become clear that the community will need outside financial assistance if the objective of establishing a competitive affordable year-round air service program is going to be achieved. We need assistance with the start-up of this service, but are confident that once it's initiated, it can be successful with the hard work of the Coalition.

By:  Gunnison County, Fred Field

A B C D E F G H I J K L M N O P Q R S T V W Y

H

Hagerstown, Maryland - See Washington County, Maryland

This application requests federal support for an air service initiative for service between Friedman Memorial Airport and Los Angeles International Airport. Los Angeles is Sun Valley/Wood River Valley's number one market. The total cost of the Action Plan associated with this air service initiative is $944,243. This application requests federal assistance in the amount of $600,000. The balance, $344,243 (36.4% of the total cost) will be provided by the Sun Valley/Wood River Valley community. It is our assessment that the proposed air service will be self-sufficient within the 12-month period outlined herein.

By:  Hailey and Blaine County

Our proposal explains in detail the problems we have identified in service to our region, the solutions we propose, and how a grant of $ 1,000,000 in Federal funding tinder the Small Communities Air Service Development Pilot Program could provide the necessary seed money for a long-term, self-supporting pattern of improved air service here. The Consortium has already committed to $450,000 in local funds as well. The DOT funds will be used to provide for cost offsets and start-up costs for the new airline. The Consortium funds will be used for marketing and promotion expenses as well as pre-purchased tickets.

By:  Hall County, William Stovall

A B C D E F G H I J K L M N O P Q R S T V W Y

By:  Hays County, Randy Gustafson

We hope to accomplish the implementation of new air service at HKY from a major airline. Mesa Airlines withdrew the only commercial service at Hickory on April 15, 2002. Although Delta has not committed to serving HKY, efforts are underway to secure $2.0 million in Travel Bank funding for Delta service to HKY. Since Delta does not operate 19-seat aircraft, any potential service by Delta would represent a significant improvement in quality and capacity over Mesa airlines' 19-seat Jetstream 32 aircraft.

By:  Hickory, Rudy Wright

The plan proposed by Hollister is unique in that it does not focus on attracting an existing carrier to perform a handful of weekly flights to a community's airport. In contrast, Hollister will use the grant funds to assist a new carrier that is being formed for the sole purpose of serving the Hollister/Branson.. This new carrier, BransonAir, intends to become the "home town" airline of the Hollister/Branson community and the grant funds, along with other financial support from local government entities and local business, which are set forth in more detail below, should help BransonAir establish itself in the market and build a foundation upon which BransonAir can grow and service Hollister/Branson for years to come.

By:  Hollister, David Tate

Hot Springs Memorial Field, located in Hot Springs, Arkansas currently receives an Essential Air Service (EAS) subsidy in support of Big Sky Airlines. The current service provides three daily round trips to Dallas. Big Sky won the EAS route subsidy to Hot Springs after the bankruptcy and departure of Aspen Mountain Air in September of 1998. From the beginning, Big Sky Airlines alienated the business community because of their lack of schedule reliability. In this regard, reported schedule completion rates in the 70% and 80% range were typical of many weeks during 1999 and 2000, with on-time performance averaging much lower. In the early days of Big Sky service, on-time performance in the 50 to 70 percent range was a normal occurrence, particularly when pilot shortages were being experienced by the airline. This lack of reliability was the ultimate problem that eliminated community trust. Numerous times, airline passengers would be waiting in the terminal building for an airplane that was not going to arrive. Notices of cancellations were not given to passengers in time for^- them to make other plans. Business people who have to be at a meeting at a particular time are not willing to take a chance on the failure of the airline to keep its schedule. In the case of Big Sky Airlines, there were repeated failures to the point where no trust remained in the business community.

By:  Hot Springs, Mike Bush, 501.321.6810

A B C D E F G H I J K L M N O P Q R S T V W Y

The Primary objective of this proposal is the establishment of improved air service for the communities served by CMX through the reintroduction of nonstop service to Detroit. Additional goals include increases in seat capacity and corresponding increases in ridership (enplanements). This plan describes those specific upgrades needed to ensure the long-term financial viability of passenger service at CMX while meeting the needs of the travelers using this facility. Although, this plan does not attempt to immediately lower airfares, it is anticipated that reduced fares are likely as market stimulation increases and provides positive economies of scale for Northwest.

By:  Houghton County, Mike Lahti

Currently, two air carriers serve the community. United Express with 30 passenger Brasilia’s (16 daily flights) and Horizon Air with 37 passenger Dehaaviln Dash-8’s (3 daily flights). United has two aircraft daily to Sacramento and the rest are to San Francisco. Horizon has 3 flights to Portland one via Redding.  Recent studies have revealed that may passengers would prefer destinations/connecting hubs of Salt Lake City, Seattle, Denver or Los Angeles and buy tickets to San Francisco out of necessity.

The service range of the Brazilia and Dash 8 will not allow the longer flights. Delta Airlines and United Express are currently purchasing 50 passenger Regional Jets and Horizon is adding Regional Jets and 73 passengers Q400 aircraft. All of these will service the areas mentioned. These aircraft also have a much lower breakeven load factor and fares would be lower. All of these carriers are interested in our market with new aircraft, but want to be assured that the initial period of time could be subsidized to ensure the routes success.  I propose that we obtain funds to advertise the additional services in the community and provide a step down subsidy for empty seats that would ensure success of the carrier. The advertising would be approximately $100,000 per year and seat subsidy of 50% of the value of empty seats for the first year, 30% the second year and 20% the third year. This would provide for minimum subsidy and ensure success.

I would also like to address the Cargo requirements of the area. We have several small companies that would like to have available service, but at this time we only have small package service with limited space. Evergreen airlines is interested in our market, but the only guarantee they have is for 9000 pounds of mail and 4000 pounds of flowers daily. With other minimal guarantees, we will have 2 DC-9 flights daily to address our needs.

By:  Humboldt County

The "Fare Investment Partnership" was created as a way for the community to fully participate in securing low fares and new air service opportunities. In order for a low fare airline or existing airline(s) to enter a new market or an existing airline(s) to lower its pricing structure in a high yield market like Huntsville, it is very important to them that the community help mitigate the risks. Bringing a new form of competition into a market for an airline carries a vast amount of the unknown - will people use the service, will revenues outweigh expenses, will passengers choose the low fare service provider when the existing airlines lower fares to competitive prices. One way to address these risks is for a community to develop a travel bank, which demonstrates its commitment to support the airline(s) initiating lower fares into the community. In addition, they are looking for financial incentives, such as revenue guarantees. Finally, an airline looks to the airport operator to demonstrate its commitment to the low fare provider with start-up incentives.

By:  Huntsville, Richard Tucker

A B C D E F G H I J K L M N O P Q R S T V W Y

I

Igiugig is located approximately 240 miles southwest of Anchorage near the outlet of Lake Iliamna. The year-round population is approximately 40 residents. The village has a 3,000 foot hard packed gravel runway that is in excellent condition. This maintained with a state owned grater that is housed on the tarmac in its own building. Pilots from throughout Alaska have stated that this runway is one of the best maintained runways in the state. The Igiugig Native Corporation has constructed a state of the art hangar complete with heated floors and office space. The goal of the community is to establish a solid economic society that is not dependent upon commercial fishing. The people of Igiugig have made a tremendous effort to provide a safe and enjoyable environment for the residents. The village is basically crime free and has set the standard for which all remote Alaska villages strive to meet. The goal of this plan is two fold. The first part is to establish a cost effective air service to the village of Igiugig. Without this air service the possibility for continued growth for this village is in jeopardy. The intention is to help, through funding, an air carrier establish a route to a remote region that currently has no air service. Through this grant program, the intention is to attract an air carrier to serve this region. Once established the air carrier will begin to realize the tremendous potential to continue unsubsidized service into the community at a reasonable fee. The possibilities for creating business are excellent. There are at least three major government projects plus two private enterprise projects slated for development in the next two years. All of these projects will require both cargo and passenger air support. The second part of the overall goal of this plan is to establish a needed air taxi business that is based in Igiugig, Alaska. This air taxi will complement the direct service to the region by an air carrier from Anchorage. It will also stimulate growth and create jobs for this village.

By:  Igivgig, Brian Kraft

A B C D E F G H I J K L M N O P Q R S T V W Y

J

The Jackson International Airport (JAN) hereby submits its proposal to participate in this Small Community Air Service Development Pilot program. The airport believes it and its proposal meets the criteria as set forth in the Docket. Increasing consumer awareness of existing air service options at the local airport is a critical part of maintaining service levels and deterring leakage to alternative airports In the past three years, there have been major and material changes in air travel sales and distribution channels. Travel agencies, once highly relied upon to assist consumers in air service determinations, are now being phased out in favor of other channels, particularly internet-based options.  Jackson and the region it serves is a victim of these changes in the airline distribution system. In surveys and studies accomplished by the Airport, it has found that consumers often are unaware of fare and schedule offerings from Jackson International. The Airport estimates that much of the 20% leakage it experiences can be recaptured if consumers have access to accurate and easily-accessible information regarding fares and schedules at JAN.

By:  Jackson Airport, Dirk B. Vanderleest

The future 737s (737-600, -700, -800) will be more efficient, more powerful, and less noisy, thereby meeting the needs of the Jackson Hole community if we can entice carriers through airline improvement subsidies from JH AIR and the US DOT. Many airlines are acquiring regional jet fleets to better serve proven markets from primary and secondary hubs. Currently most regional jets do not have performance standards capable of serving Jackson Hole.

By:  Jackson Hole, Mike Gierau

The overview of our strategic plan is to stimulate the local air service market by adding back one of the daily round-trip flights lost after the 9/11 attacks on America. While this is still one daily round-trip short of our pre-9/11 levels, we believe that it is imperative to regain as much capacity and flight frequency as possible in order to preserve airline service locally. We will not be diverting passengers from using other facilities in this process. Rather, we will be recapturing local demand that is driving to other cities. The largest portion of our request is for subsidy funding for Mesa Airlines/Air Midwest to re-institute an additional daily round-trip to Pittsburgh.

By:  Chautauqua County Airport, Kenneth Brently, 716.484.0204

K

We have been working with several area businesses in the past to develop the air service at the Kalamazoo/Battle Creek International Airport to serve the needs of Southwest Michigan. This pilot program will allow the necessary resources to increase our efforts for airport awareness and obtain additional non-stop service to meet the needs of the areas largest employer and others. We find it critical for the Kalamazoo/Battle Creek International Airport to provide convenient, cost effective, reliable, comfortable air service to our community, which will encourage economic development and allow businesses to remain competitive in this global economy.

By:  Kalamazoo, Kenneth Potts

A B C D E F G H I J K L M N O P Q R S T V W Y

While the Authority is submitting this grant proposal, it is the strong support of the community that truly forms the heart of the public-private effort. The private partners in this joint effort have assembled a financial package worth approximately $2 million to attract affordable jet service to ISO. The Authority is pleased to have the opportunity to participate in this action plan and formally request a grant of $1 million from the Department of Transportation Small Community Air Service Pilot Program. The federal funding will complete an incentive package to bring commercial jet service to ISO. ISO will use the federal program funds to augment local and regional airline recruiting efforts.

By:  Kinston, Lonnie Blizzard

Klamath Falls is a relatively small, isolated city in Southern Oregon, served by the Klamath Falls Airport (LMT). Since deregulation of the airline industry, Klamath Falls has suffered through the loss of jet service and erratic service by a handful of secondary carriers. The only constant to the service has been Horizon Airlines, which today provides four daily flights to Portland, Oregon. While the service on Horizon has been satisfactory, the market is limited to a single carrier, a single destination, and only four flights on a 37-seat turboprop aircraft. Fares at LMT have generally been above the national average for the past fifteen years. As a result of the limited service and high fares, area travelers are "leaking" to other airports for lower fares, more nonstop choices and more direct routings.

By:  Klamath Falls, Harold Wight

Low fare carriers that have been strategically identified are AirTran for the eastern United States and Frontier for the western United States. They have indicated that financial incentives and signed corporate agreements of support will be sufficient to obtain their service. This is unlike the previous situation because the corporate accounts will have pledged a percentage of their support to the low fare carriers. With the additional cities now served by AirTran and the incorporation of Frontier's 12 destinations, the annual savings for our air travelers in the East Tennessee region will reach nearly $140,000,000.

In meetings with the incumbent carriers, a statement from the head of scheduling for a major airline stands out - "When you get low fare service and force us to lower fares, that's when we will lower the price." This proposal is the best and most efficient method of meeting the need of our region.

We are requesting $800,000 for the first year of support of this program. The previous strong response to low fare service indicates the likelihood of success of this investment for Knoxville and for the DOT is high. We also are aware of the financial level other cities have had to reach to obtain service from the carriers we are considering. Thus we feel our request is exactly appropriate for the project as outlined.

By:  MKAA

A B C D E F G H I J K L M N O P Q R S T V W Y

L

By:  Lake Charles

Like many small communities, Lake Havasu City has experienced a drop in enplanements over the past few years. Unlike many of those small communities, our city has a history of supporting more extensive air service and every reason to believe it can do so again. As recently as 1991, airport enplanements reached almost 14,000. Fare increases, service and route reductions, combined with a drop-off in visitors due to perceived water quality problems in Lake Havasu in the mid-nineties, all contributed to a steady erosion of commercial air service to our city. With the water quality issue solved, visitor traffic is rebounding. The plan we have put together is designed to prime the pump. Our history has demonstrated that as a tourist destination, our city can support a great deal more air service than we currently enjoy. We respectfully request $403,478 from the federal government to supplement the $275,000 that we have assembled from state and local sources for a total program budget of $678,478.

By:  Lake Havasu, Bruce Williams

SECED and its members are seeking $250,000 under this pilot program to fund the re-institution of passenger air service at Lamar Municipal Airport. SECED and the City of Lamar will also provide financial support to fund the start of new passenger air service. The passenger air service created by this program will bring material benefits to local business, visitors to the area, the local college, and tourism.

By:  Lamar, Jim Anderson

By:  Lanchaster Air Service Task Force, Tom Baldridge, 717.569.1221

A B C D E F G H I J K L M N O P Q R S T V W Y

As the capital of Michigan, Lansing plays a key role in our states ongoing economic development activities in addition to our role in state and federal government. Our local economy has witnessed a strong resurgence over the past decade, and we now have a strong and balanced mix of business, industry, and education (Michigan State University). However, Lansing has continued to suffer in one particular sector, that of commercial airline service. Our market has witnessed declining traffic and increased fares, and the largest carrier serving our airport now has over 60% of the business. These trends are in direct contrast to our growth in population, income, and business expansion. Given these conditions, we have a community-based Air Service Task Force that has established priorities and is very willing to participate in a public-private partnership to improve our situation. However, airline executives have told us that financial partnerships are increasingly necessary, particularly in the current environment.

By:  Lansing, Michael Lynn

Laredo is the only U.S./Mexico border city strategically position at the convergence of all land transportation systems. Mexico's principal highway and railroad leading from Central America through Mexico City, Saltillo and Monterrey, the industrial heart of Mexico, converge at Laredo to meet two major U.S. rail lines, Interstate 35 and other roads which fan outwards to the urban centers and seaports of Texas and beyond to Northern States and Canadian Provinces including Illinois, Michigan, New York and Ontario.

American Eagle and Continental Express have historically served Laredo, with non-stop service to Dallas/Fort Worth and Houston, respectively. This service has been consistent over time and continues making up the bulk of the air service traffic for the airport. In the past, Conquest offered non-stop service to McAllen and San Antonio and one stop service to Austin, but this service dropped off after 1996. Taesa Airlines, a Mexican air carrier also served Mexico City and other cities in Mexico on a limited basis from April 1991 until November 1999 when the Mexican government pulled its operating certificate.  During March 2002 Compania Mexicana de Aviacion, S. A. de C. V. and Lineas Aereas Azteca, S. A. de C. V. initiated Mexico City / Laredo, Texas service. During April 2002 Continental Express replaced two daily turbo prop flights with regional jets (ERJ-135 and ERJ-145).

By:  Laredo, Elizabeth Flores, 956.791.7400

Lebanon Municipal Airport is a municipally owned and operated, non-hub, commercial service airport located in the Upper Valley Region of New Hampshire. We are currently served by Colgan Air and Air Midwest (both operating as US Airways Express) with five flights per day serving LaGuardia, Boston and Philadelphia. Airline service in Lebanon has been in dramatic decline since 1993 when we were served by three airlines offering 21 departures per day. Passenger enplanements have dropped from a high of 52,929 in 1993 to a low of 13,962 in 2001. Due to the lack of competition from other airline operators, airfares in Lebanon are extremely high when compared with other airports within our region. For example, a recent check of airfares for a flight from Lebanon to Los Angeles (21 day advance purchase - Saturday night stay) was $679. The fare for the same flight from Manchester, NH was $220.

By:  Lebanon Municipal Airport, Timothy Edwards, 603.298.8878

A B C D E F G H I J K L M N O P Q R S T V W Y

The principal elements of the risk sharing program would be: (1) an advance ticket purchase program involving commitments mainly from the local business community; (2) a revenue guarantee agreement that would be funded by local public sector entities and the federal grant funds; and (3) an enhanced airport advertising and promotional program provided by LNAA. It is anticipated that the airline service agreement will cover a market development period of one to two years in duration.

By:  Lehigh-Northampton, George Doughty

We propose to harness the velocity of transportation to power our vision for the economic future of these small Island communities. The proposed strategy for increasing air service combines ongoing collaboration, air service incentives including a guarantee (contingent liability), enhancing destination value and joint marketing, and market deficiency analysis. The long-term goal is to generate an economically sustainable market for at least two daily direct flights each from Lanai and Molokai to Kahului, Maui. The first year goal is to generate market growth by ensuring reliable service, followed in the second year by achieving break-even loads on at least one flight, and then generating break-even loads both flights in the third year. The total first year cost of this initiative is $2,429,391 and a grant-in-aid of $1,764,391 is requested.

By:  Lanai and Molokai, James Kimo

A B C D E F G H I J K L M N O P Q R S T V W Y

The Lewiston-Nez perce County Regional Airport has met the four financial assistance priorities as required by law. The requirements stipulate that average air fares be much higher than those of other airports. A portion of the cost of the activity contemplated by the community is provided from local, non-airport revenues. A public-private partnership with Valley Vision has been established to facilitate air carrier transportation to the public. improved service will bring the material benefits of scheduled air transportation to a broad section of the traveling public, including businesses, educational institutions, and other enterprises whose access to the National air transportation system is limited.

By:  Lewiston, Jan Vassar

Blue Grass Airport respectfully requests $150,000 from the Small Community Air Service Development Pilot Program to be used to advertise new service from Lexington, KY. The funds will also be used to promote low fare advertising by the airlines on a local and regional basis. The airport has been very successful in demonstrating demand by the business community for new non stop service. However, the airport has found it difficult to locate the additional funds necessary to reach beyond the business community to stimulate interest in the airport and new airline service. By gaining access to monies associated with this program the airport will be able to establish a procedure to promote new service in the leisure sector of the community and to provide airlines greater exposure when beginning new service. In this way the airport can better educate the consumer, stimulate passenger traffic and create a more competitive environment among the airlines.

By:  Lexington, Michael Gobb

In an effort to alleviate this competitive disadvantage, the Lincoln Airport Authority has maintained on going dialogues with airlines who could profitably serve Lincoln to the South and West regions of the United States. Through these ongoing discussions, the Authority and the airlines have identified three major cost factors that weigh heavy in their decision to initiate service to Lincoln. 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 Lincoln over time. However, the start up period comprising the first 24 months of service is critical to their long term success. The funds requested from the small community pilot program will allow us to help share in these initial start up risks in a manner that would not otherwise be possible. Through this application, we are asking the Department to help us and our airline partners address these critical hurdles. The $620,000 of requested federal money is being matched through a Public/Private contribution of $220,000 or 35% of the requested federal funds. This represents a significant leveraging of Federal funds and demonstrates Lincoln's commitment to helping itself as much as possible

By:  Lincoln Airport Authority, John Wood

The Logan-Cache County Airport Development Task Force is seeking $500,000 under the pilot program to fund a two phase effort that will result in obtaining air service at Logan-Cache Airport. The community contribution of $140,000 will also support the enhancement of passenger air service. The passenger air service created by this program will bring material benefits to regional business, visitors to the area, the local university and domestic and international tourism.

By:  Logan City, Bruce Bishop

By:  Lynchburg, Mark Courtney

A B C D E F G H I J K L M N O P Q R S T V W Y

M

As you review this proposal, it should be evident that the Manhattan Airport Catchment Area is under served. Furthermore, consumers in this market pay higher than average airfares for flights between Manhattan and Kansas City. Competitive barriers imposed through code sharing prevent most consumers from utilizing this primary, commercial service airport to enter the National Air Transportation System. This project will be administered through a public-private partnership. The City of Manhattan as the owner and sponsor of Manhattan Regional Airport will serve as the project sponsor to facilitate the receipt and disbursement of project funds from the Federal government. The partnership will be known as the Flinthills Air Service Coalition, and it will be composed of stakeholders within the Manhattan ACA. As you review this proposal you will see that other partners could potentially benefit from this proposal. Most notably the Salina Airport Authority could ultimately team with the Flinthills Air Service Coalition regarding both improvements to existing service and air service development to a westbound hub airport like Denver International. However, the current list of stakeholders only includes groups within the Manhattan ACA.

By:  City of Manhattan, Mayor Bruce Snead, 785.587.4560

In the days following the terrorist attacks of September 11th, almost all of the major airlines announced service reductions in order to cope with the anticipated falloff in demand for air travel. At that point, Northwest Airlines announced that they intended to cease operations to MCW and FOD, along with a handful of other Mesaba markets. During this immediate aftermath, there was a call for federal assistance to keep the airlines solvent. One of the conditions of the aid package was to be that no communities would lose their air service as a result of the terrorist attacks. The federal government provided emergency funding to the airlines, and Mason City kept its service in the interim. However, the resulting "solution" was that MCW and FOD were to be linked together permanently and the ongoing service would be provided through the Essential Air Service program (EAS).

Before placing Mason City into the EAS program, we would like to suggest another solution to the Department of Transportation. Instead of awarding a combined MCW-FOD routing for EAS, we want to pursue a market-based strategy through the Small Community Air Service Development Program. As we will demonstrate in this application, Mason City is clearly underserved, by any standard. Our fares have traditionally been well above the national average, and our business fares continue to be among the highest in the region. This program was specifically designed to help the small and rural communities of this nation help themselves find creative solutions to their need for access to the national air transportation network. Mason City, in cooperation with other communities and businesses in the region, is prepared to invest in a market-based solution. We believe that it would be a far better use of federal funds to help this community develop a self-sustaining air service solution than to enter into an ongoing federal program (EAS) which will cost the taxpayers of this country countless millions of dollars going forward. Moreover, our solution provides an opportunity for air service to grow and flourish in North Iowa as our economy and business growth demand additional service.

By:  Mason City Airport

By:  Menominee, William Kazen

Meridian needs more capacity. We can either solicit another carrier or try to grow ASA. While having two carriers is attractive, it is clear that getting another carrier into our market would be an expensive and time consuming operation. The most practical, economically efficient answer is to grow the service we have. Meridian travelers like our existing carrier and the quality and professionalism of our existing service. Consequently we feel that further developing our existing service is the most feasible approach to meeting Meridian's air service needs.

By:  Meridian, Thomas Williams

A B C D E F G H I J K L M N O P Q R S T V W Y

This application seeks a grant in the amount of $500,000 to provide revenue guarantees for Continental Express and provide marketing support for the new service. The community has an active partnership of 30 of the largest local industries and businesses who are ready and willing to provide a 20% match to the grant, resulting in a total of $600,000. The Airport would point out that the support of these businesses, plus the demonstrated need for this service, will result in strong traffic and revenues for Continental Express, and strong feed traffic beyond Houston as well.

By:  Midland/Bay City/Saginaw

The Millinocket Municipal Airport in conjunction with West Branch Aviation, the Millinocket Area Growth and Investment Council (MAGIC), and many area businesses are seeking to join efforts in attracting commercial air service to the town of Millinocket. Working closely with Telford Aviation of Bangor, Maine and MAGIC, the town will develop scheduled flights from the Bangor International Airport to the Millinocket airport. These scheduled flights will have a tremendously positive impact on businesses in many of the surrounding towns including East Millinocket, Medway, Woodville, Patten, Sherman, Milo, Greenville, Brownville, and the other small communities that make up the Katahdin Region of Maine. We intend to model our efforts after the airport servicing Jackson Hole, Wyoming, the Grand Teton and the Yellowstone regional. The Katahdin area is very similar, yet underdeveloped and ripe with opportunity.  Due to current limitations of the airports, we will need to start by proving the need exists with a small 9 passenger transporter. Telford Aviation of Bangor Maine currently uses the Cessna Caravan aircraft for cargo and charter service. To subsidize and market these flights, we are asking for $66,666/year for three years with matching funds of $3,333/year from the town of Millinocket. In addition, many businesses have given us their time and talents in support of this effort.

By:  Millinocket Airport, Bruce McClean

The proposed Small Community Air Transportation Concept (SCAT) will research, demonstrate, and validate an innovative method of providing safe, comfortable, reliable, and economical scheduled air service to small communities with low passenger volumes or where the community is underserved. The proposed SCAT air service concept engages the local community in determining the destination airports or hubs that will be served, the frequency of service required to meet local travel needs, and the price of airfares. The proposed project will benefit two or more small communities.

It is proposed to provide this enhanced service by right-sizing a airliner to satisfy the air travel needs of persons needing nonstop service to distant large cities and hubs not currently served from the local community. It is proposed to provide the SCAT air service with an advanced technology, right-sized airliner that delivers jet-like speeds, business-class sized seats, comfortable high-altitude operations to a city or hub selected by the local community leaders and airport authority.

By:  Mississippi State University and The University of Denver

A B C D E F G H I J K L M N O P Q R S T V W Y

We believe the instability results from a costly and inefficient system under which airlines establish separate and redundant station operations at the airport. This creates entry barriers for new airlines and high operating costs for airlines in Mobile and small airports nationwide. This Grant Request seeks $456,137 in federal funding to support an a new airport-airline business model, open to all airlines, in use by one airline, at Mobile Regional Airport. Essentially, the Mobile Airport Authority equips, staffs, owns and operates the airline station, charging the airline for its use of facilities and personnel; this has been working successfully since October 2001.

By:  Mobile, G. Bay Haas

The main purpose of the requested funding for media is two-fold. First, we intend to promote the Monroe Regional Airport proper so that travelers will recognize it as a viable solution to the air travel and airfreight shipping needs. Second, after the third year of the grant, it is our plan that the commercial air service providers will carry the full load of media promotion costs for their operations. We will seek to enter into agreements with regional media outlets to receive reduce rates through bulk purchases of advertising, and long-term commitments to advertising.

By:  Monroe

This Grant Request seeks $125,000 in federal funding, to be combined with a $60,000 in matched marketing dollars from the Monterey Peninsula Airport District and Salt Lake City International Airport. Further, Monterey's Air Service Development Partners have committed in-kind marketing and promotions, with an estimated value of $120,000. Per the attached Application, Grant funds would be used to augment Monterey's air service program - regional advertising to promote the benefits of flying from MRY, marketing support to attract additional air service and consulting services to fuel Monterey's long-term air service development efforts.

By:  Monterrey Peninsula, Denis Horn

As a result of the Keady Report, the communities of Montrose and Telluride, Colorado, sponsored a subsidized air service program. The program provided a revenue guarantee to provide regional jet (RJ) service to Montrose Regional Airport during the non-ski season-April 1 through December 15. This program was in effect during 2001. An enplanement summary documenting the programs success is included in the attachments. Although the program was successful in 2001. funding was not available to continue the program in 2002. A grant award under the Small Community Air Service Development Program will allow the Montrose Regional Airport to get this program back on track.

By:  Montrose County, David Miller

A B C D E F G H I J K L M N O P Q R S T V W Y

The timing of this application process and implementation of the Program is very important because on April 15, 2002, Moore County Airport (SOP) lost its commuter air service. This service was being provided by CCAir (a subsidiary of Mesa Airways) and operating under the USAirways Express name. In response to this loss in service, the Authority and community of SOP have been working diligently with USAirways Express, to develop a plan to restore service. Additionally, this application outlines how the Authority intends to utilize the Program funds in a private, local, and federal partnership that will restore air service to our community and provide benefits to the entire region. The federal contribution requested in this application is $681,751. The proposed local match of actual funds is $100,000 for the first 12 months and the approximate value of in-kind services is estimated to exceed $300,000 annually. Considering all funds available for the first year, the total should exceed $1,081,751, which should equate to a 63% to 37% federal to local participation.

By:  Moore County, Celeb Miles

The Morgantown Municipal Airport and the Harrison-Marion Regional Airport will utilize this grant for a comprehensive marketing campaign to promote the two airports, The focus of the campaign will be to recapture the passenger leakage from the area to larger hub airports, Several studies indicate that this is the major reason for the downturn of enplanements at the two airports. Local research also indicates that there is a lack of awareness of the services and prices available for flying from the local airports.  The campaign will ran for 52 weeks with the Small Communities Air Service Development Grant at a cost of $372,286. This includes the use of an advertising consultant to do market surveys to add tracking to ensure the most impact for our dollar. The campaign will include outdoor, print, radio, and television advertising.

US Airways is the sole carrier at five West Virginia airports. Four of the five top US Airways stations in terms of passenger yield are located in West Virginia: Parkersburg, Bluefield, Beckley and Morgantown. This air travel market will only grow with the proper marketing program, Currently, both Morgantown Municipal Airport and the Harrison-Marion Regional Airport suffer from a low capture rate and leakage to Pittsburgh International Airport.

By:  Morgantown

N

Under this grant program the City of Nacogdoches will develop a marketing/business plan for carrier recruitment. As part of the marketing effort, the City will update general information about the airport, communities in the region, and potential market for air service. The City will then contract with a professional public relations firm to develop full-color brochures, multi-media presentations, and other advertising tools that describe the proposed service. These promotional materials will be used to recruit carriers as well as community and financial support. The total cost for the project is estimated at $85,000.00, with funding from the U. S. Department of Transportation requested in the amount of $75,000.00.

By:  Nacogdoches, Roy Blake

A B C D E F G H I J K L M N O P Q R S T V W Y

Despite the Naples Municipal Airport’s long history of commercial service, the Authority for the first time has recognized the need for direct financial and staff resources to enhancing the airport’s position in the market. First steps in this direction have been taken with the enactment of the Airline Incentive Program. Despite this effort, the Authority has not been able to attract an airline to return service to the lucrative Naples to Miami/Fort Lauderdale market. In addition to the Airline Incentive Program, which will continued to be funded exclusively from the Authority’s operating budget, the Authority is requesting $75,000 in Small Community Air Service Development Program funds to support the following  1. Securing the services of an airline-consulting firm to assist the Naples Municipal Airport in preparing an air service analysis to determine the feasibility of air carrier service to a Southeastern hub airport. 2. Developing a marketing incentive program, such as a travel bank, to encourage increase business travel to and from Naples Municipal Airport. 3. Develop "Fly Naples" advertising/promotion campaign targeting business travelers and airlines.

By:  City of Naples

We have discussed the project presented in this proposal with our existing air service provider, Cape Air. Cape Air has been a partner with the airport and has pledged support to the airport in the past for marketing and other purposes. Based on positive initial feedback from Cape Air, we will continue these discussions with a view to exploring the economic feasibility of a three round-trip daily Cape Air service from New Bedford Regional Airport to a hub such as New York La Guardia, and refining the necessary start-up operating expenses associated with developing this needed service. Cape Air has also indicated that in the event that they are not in a position to expand operations that they would be willing to assist enhanced airport operations by discussing cooperative ground handling facilities and services with potential air service candidates.

By:  James W Burgess

This Grant Request seeks $350,000 in federal funding to be combined with a $150,000 contribution from the Regional Growth Partnership. Per the attached Application, these funds would be used to leverage New Haven's air service and economic development initiatives, promotions to support incumbents, incentives to attract aviation-related jobs, and marketing to recruit an additional carrier(s) to southern Connecticut.

By:  New Haven, Robert Santy

NNWIA serves 600,000 people in the Virginia Peninsula communities of Newport News, Hampton, Williamsburg, and surrounding suburban counties. Despite a large catchment area, the airport currently has air carrier service to only five destinations. This level of service is woefully poor when compared to markets of comparable size. As a result, two thirds of travelers who reside in the NNWIA catchment area are currently being forced to drive to alternate airports to find air service that meets their needs. The Community is seeking new airline service from Newport News to additional destinations to meet the Community's needs, thus eliminating the incentive for area travelers to drive to alternate airports. This Grant Request seeks $500,000 in federal funding to be combined with a like amount from local and state sources to produce $1 million in available air service development funds for NNWIA. Per the attached Application, these funds would be used for activities directly related to developing new air service, including (but not limited to) research and analysis of potential new air routes, community awareness programs, airline revenue guarantee programs, and cooperative advertising programs.

Service is needed to major east/ west hubs, such as Chicago, Dallas/ Ft. Worth, Detroit, Denver, Cleveland, Cincinnati, or Pittsburgh. Several of these cities are also top O&D markets for the region's travelers, which makes the successful pursuit of these cities all the more important. Additional northbound service is needed to provide competition for US Airways Express. Service to Newark, JFK, and Boston would provide good connecting opportunities to cities throughout the Northeast Corridor.

By:  Newport News/Williamsburg Airport, James Evans, 757.877.0221, jhevans@nnwairport.com

A B C D E F G H I J K L M N O P Q R S T V W Y

By:  North Carolina DOT

We need your help. Our grant will be used in two ways. First and foremost, we will use our grant to partner with our carrier to restore our one daily roundtrip to Pittsburgh; flights we lost following September 11. At the same time, we will work with our carrier to adjust schedules for all three airports to improve connecting opportunities. Secondly, we will use the grant to advertise our success. As you know, inadequate and unreliable air service in any market, coupled with high fares, quickly becomes an "urban legend." Substantial and far-reaching efforts in our three communities are needed to spread the word on our successes related to improved service reliability, recent fare reductions, and the pending re-instatement of our fifth daily roundtrip. We plan to use our grant to launch a multi-media advertising campaign and to hire an air service coordinator who will be shared by the consortium of airports represented in this request.

By:  North Central PA, Howard Glessner

By:  North Dakota, Gary Ness

Following the need to improve deficient air services and to grow and sustain the local economy, NCATA respectfully proposes a grant request of $1,175,000 from the Small Community Air Service Development Pilot Program with a local community match of $1,565,000. The budget for the grant proposes use of the funds over a three-year period, allowing time to market the new service and to sustain the improvements to air service.  The community consortium of the Northwest Colorado Air Transportation Association includes the following members: Board of County Commissioners of Routt County, CO, and the Yampa Valley Regional Airport at Hayden (HDN); the Steamboat Ski and Resort Corporation; the Town of Hayden, CO; the City of Craig, CO; the City of Steamboat Springs, CO; the Steamboat Springs Chamber Resort Association, and the Board of County Commissioners of Moffat County, CO.

By:  NW Colorado, Daniel Ellison

A B C D E F G H I J K L M N O P Q R S T V W Y

O

By:  Osage Beach

Although this request comes to you from Oneida County, it has the support of the Mohawk Valley EDGE, a regional economic development initiative, as well as the Mohawk Valley Chamber of Commerce, which represents nine chambers of commerce located within our air service catchment area. Through expanded public-private partnerships that we are forging, and your support of this proposal, we can bring Mohawk Valley travelers better service at lower costs.

By:  Oneida

OST-02-11590	April 19, 2002	Proposal of City of Ottumwa, Iowa	Implementation of Small Community Air Service Development Pilot Program
		Appendices
OST-00-8323 OST-02-11590	May 9, 2002 Docketed May 10, 2002	Supplemental Data of Ottumwa, Iowa	Implementation of Small Community Air Service Development Pilot Program

The City of Ottumwa, Iowa is submitting this proposal for an $750,000 annual subsidy for two (2) years, for Corporate Airlines to provide commercial air service at the Ottumwa Industrial Airport. The City is the legal sponsor of this proposal. Project contact: Barbara S. Reaves, Director of Community & Economic Development. The $750,000 per year subsidy, for two (2) years, is based upon the second Essential Air Service (EAS) Proposal submitted by Corporate Airlines during the Spring/Summer of 2001 and upon information Corporate Airlines submitted to the City in response to a series of questions asked in January, 2002.

By:  City of Ottumwa

On behalf of the community of Owensboro and Daviess County, I am pleased to submit the enclosed application for federal assistance under the Small Community Air Service Development Pilot Program. The amount of grant funding requested for our initiative is $500,000. Our local governments, as well as the Commonwealth of Kentucky, have pledged their fmancial support for this endeavor. Rural airports across this nation are facing a number of challenges with respect to commercial air service. These challenges are largely due to changes in the airline industry, including aircraft fleet decisions, low-fare airline competition, code share agreements and most recently the tragic events that shook our nation last year. As the airline industry continues to face turmoil, airline planners reallocate their assets on a moment's notice to fortify their market position. Airports are dependent and reactive to these changes and often times the smaller rural markets find themselves suffering the consequences of these changes.

By:  Owensboro, tim Bradshaw

A B C D E F G H I J K L M N O P Q R S T V W Y

P

By:  Barkley Regional Airport, Richard Roof

We are asking for $500;000 in Air 21 Funds which will be combined with funds raised by the public/private partnership.

The results of this market analysis has given PSP a better understanding of the air service demand and leakage analysis that identifies the true passenger capture rate. Currently PSP enplanes 600,000 passengers. However, the leakage analysis revealed true demand to be 1 million annual enplanements. We have identified some key factors contributing to this leakage as follows: frequency, low cost carrier, capacity, average fare and a community perception that PSP does not have adequate air service.

By:  Palm Springs, Alan Smoot

LAWA is committed to the regional approach to meeting the air transportation needs of Southern California. We believe that our goal is identical to the goal of the DOT's program, which is to establish air service in a community that is currently receiving insufficient air service. We propose to attract new air service to the area through a variety of marketing approaches. These include promoting awareness among the residents of the market catchment area, attracting new carriers through revenue guarantees or offsetting operating costs, by offering struggling carriers financial incentives package like more favorable treatment at LAX, and/or by encouraging carriers to upgrade their equipment from turboprops to regional jets.  Los Angeles World Airports is the agency that owns and operates Los Angeles International, Ontario International, Palmdale Regional, and Van Nuys Airports. Palmdale Regional Airport is located in the Antelope Valley, in the northeast portion of the city of Palmdale on a 70-acre site on United States Air Force Plant 42. PMD is a joint use facility between the Air Force and Los Angeles World Airports. The Air Force owns and operates the runways and taxiways and LAWA owns and operates the passenger terminal. A 25-year lease agreement with the Air Force permits commercial aircraft flights on Plant 42, deferring runway construction on LAWA property until Plant 42 reaches its commercial capacity.

PMD's catchment area is primarily the Greater Antelope Valley, an area north of the Los Angeles basin but can also service other nearby communities. In the past, PMD operated as a commercial passenger airport with commuter air service, however no scheduled airline service is operating at this time.  LAWA's ongoing strategy has been to begin by having studies prepared to identify the destinations that would most likely receive significant use from local residents. Carriers most likely to fit with these destinations are then identified. This information is then used as a basis for preparing presentations to air carriers to convince them of the viability of these routes. LAWA staff has conducted presentations of this type over the past two years with only limited interest from air carriers.

By:  LAWA, Lydia Kennard, 310.646.5252

Panama City-Bay County Airport and Industrial District requests funding under the Small Community Air Service Development Pilot Program in the amount of $545,000. These funds will be used to support the Airport in its efforts improve air service plagued by high fares and insufficient service. Funding is requested to support two elements of the program; a catchment area study to determine natural catchment area and key destination markets of PFN travelers, and subsidization of start-up operating expenses for a commercial air carrier willing to provide non-stop service to a new market from PFN.

By:  Panama City, Diane Johnston

A B C D E F G H I J K L M N O P Q R S T V W Y

The attached grant application requests a total of $500,000 in federal funds, with an additional $125,000 pledged from local sources, which will be used to provide incentives to the new commercial air carrier(s) and on-going marketing support to current airlines. The Tri-State Airport Authority has joined together with local chambers of commerce, businesses and industry to support this airline service improvement initiative, and believe strongly that improved air service at HTS is critical to the economic success of our communities' plans.

By:  Carolyn Strock

The enclosed proposal is hereby submitted in response to USDOT Order 2002-11, Which institutes the Small Community Air Service Development Pilot Program. While Emmet County shall be the legal sponsor for any grant awarded under this program, it remains a cooperative effort with Northwest Airlines, the Petoskey Regional Chamber of Commerce-Air Service Task Force, and the Michigan Department of Transportation. This proposal seeks to improve air service for travelers using the Pellston Regional Airport by facilitating the introduction of Canadair Regional Jet service into the summer 2002 schedule. The funding requested under the SCASD program will be necessary to offset startup costs and reduce financial risk for Northwest Airlines and will be essential for establishing the initial and long term viability of this new service.

The main objective of this proposal is the establishment of improved air service for the communities served by PLN through the introduction and continued operation of regional jet service.  In order to achieve the objectives of this proposal, Northwest Airlines through an affiliate carrier, has committed to upgrading its service at PLN to include daily operation of Canadair Regional Jets to supplement existing turboprop service. This new aircraft type will not only provide a desperately needed increase the daily seat capacity but also will, for the first time since deregulation, add modern jet service at PLN. [n addition, as mentioned above, the increase in available seats will help to lower fares in the market.

By:  Pellston Regional Airport, Kelley Atkins, 231.539.8441

A B C D E F G H I J K L M N O P Q R S T V W Y

The Pierre Regional Airport is currently served by 2 airlines. In the past year, both of these airlines have reduced their daily round trips from 6 to 4 each weekday. This 33% reduction in capacity left us with very few options. In the past, we have experienced how such a reduction contributes to a cumulative effect in passenger dissatisfaction and potentially even greater reductions in service as the demand decreases to match the supply. The end result is higher fares, even poorer flight frequencies and ultimately a wide based economic downturn for this region. This program will allow us to take a proactive step that has never been before attempted in this community.

By:  Pierre, Mason Short

By:  Pinehurst

Included with this letter is the Port of Olympia's Small Community Air Service Development Pilot Program grant application. The Port of Olympia, sponsor of the Olympia Regional Airport, and the Economic Development Council of Thurston County have formed a publicprivate partnership for the purpose of securing commercial air service deemed critical to the economic development of the region. Prior to filing this application, the Port of Olympia conducted extensive research and analysis of the local air service market and completed passenger and profitability projections for the air service proposed herein. Because of its route system, aircraft size and code-share relationships with Alaska Airlines/Horizon Air, Northwest Airlines and America West Airlines, Big Sky Airlines is the logical airline to provide the air service proposed. Big Sky Airlines has agreed to provide the proposed air service contingent on funding and implementation of the Action Plan detailed in the attached application.

By:  Port of Olympia, Nick Handy

Existing service is provided with a Beechcraft 1900 under a DOT Essential Air Service (EAS) subsidy by Air Midwest, D.b.a. America West Express, (ATTACHMENT 2). Despite a steady 3% annual increase in population, the air service enplanements have continued to decline and fares have increased substantially. Service has decreased from six flights to two flights daily between Phoenix and Prescott (ATTACHMENT 9). Since 1997 passenger enplanements have decreased from a high of 14,493 in CY 94 to a projected 3,800 enplanements in CY 2002 (ATTACHMENT 8). The commercial ground shuttle business to Phoenix has exploded with passengers since 1997 while potential air passengers are discouraged with the local high air fares and the reduction in air service. Phoenix airport is a 100-mile drive taking two hours.

By:  Prescott, Rick Severson

The City of Presque Isle, centrally located in Aroostook County, is requesting $500,000 from the U. S. Department of Transportation for the development and enhancement of expanded air service at the Northern Maine Regional Airport. The project will re-introduce intra-state air service between Presque Isle and Portland, offering transportation, economic and airline benefits. The service will supplement existing air service to and from Boston and re-establish a critical economic link between two small airports in the State of Maine.

By:  Presque Isle, Thomas Stevens

A B C D E F G H I J K L M N O P Q R S T V W Y

The City of Provo is seeking funding under this program to help underwrite the start of commercial air service at our airport. The City expects the program to take two years to develop. The first phase is already underway which has included studies and analysis to determine passenger air market demand and key markets. We now are ready to target air carriers that can perform the service and create a package that will facilitate an effective recruiting program. The second phase will support new air service to the most appropriate hub cities by providing funds for marketing and cost offsets to cover start-up costs and initial operating costs. The funding required to support Phase I is estimated to be approximately $125,000 and Phase II, $590,000. Local funds will support our application.

By:  Provo, Steve Gleason

Q

The plan will attempt to reinstate Quincy's service levels from three 3 to our 4 direct non-stop flights to St. Louis on American Connection, and from two (2) one-stop flights to Chicago on United Express to two (2) non-stop flights. The community will offer the airlines the level of funding being proposed in exchange for enhanced service. In turn, the airlines will be reassured that a market development and awareness campaign is underway and funded with certain quantifiable measures incorporated to measure its success. The term of the proposal will be from the first day of the following month after the grant is awarded to December 31, 2004. (Pilot Program term to be approximately 30 months if awarded July 1, 2002)

By:  City of Quincy

A B C D E F G H I J K L M N O P Q R S T V W Y

R

By:  Rapid City

This Grant Request seeks $470,000 in federal funding to assist the Task Force meet its objectives. Combined with $30,000 from the Reading & Berks County Convention Bureau, these funds will be used to leverage our community's air service initiatives. As outlined in the attached application, our project proposal includes a variety of air service activities - advertising to promote the convenience of from Reading Regional Airport, aviation consulting services, interim transportation and marketing support to gain better access to the nation's air transportation network.

By:  Reading, John Rhinehart

By:  Redmond, Carolyn Novick

A B C D E F G H I J K L M N O P Q R S T V W Y

The proposal requests $500,000 in grant funds from the Pilot Program. This will be matched by a minimum $100,000 in locally-generated funds. The funds will be used to support implementation of Northwest Airlink service to the Northwest hub at Detroit/Metro airport. This objective represents a high probability of success. Approximately 55% of all passengers generated in the RHI service area are using other airports. A major factor in this is lack of east-bound connectivity.

By:  Rhinelander-Oneida Airport, Joseph Brauer

Specifically the co-applicants are seeking a grant in the amount of $2,000,000 to be used as a portion of a revenue guarantee necessary to acquire the services of an established low fare carrier at the Roanoke Regional Airport. The Consortium currently consists of six (6) cities/towns and four (4) counties within the Roanoke Regional Airport air service area; however, it is anticipated that additional public bodies from the nineteen county air service area will be added to the Consortium as these bodies meet during the next month. The Roanoke Regional Airport Commission is the owner and operator of the Roanoke Regional Airport.

By:  Roanoke, Darlene Burcham

A B C D E F G H I J K L M N O P Q R S T V W Y

On behalf of Monroe County, I am submitting for your consideration the County's funding request under the Section 203 Program. The request, if funded, will greatly enhance air service in Monroe County and the western New York region by providing affordable air service to millions of business and leisure air travelers. The Greater Rochester International Airport has been listed by the Department of Transportation in the top ten markets suffering from high air fares annually for the past number of years. The requested funding will complete a partnership between the Monroe County business community, the County, the Industrial Development Agency and AirTran Airways which will guarantee affordable air fare and stable air service for years to come.

Rochester's most extreme fare disparities have occurred in the community's largest O&D markets including New York City (prior to JetBlue), Boston, Chicago, Washington, Atlanta, Philadelphia and Los Angeles. Historically, Rochester's average market yield has consistently averaged 20% above that of New York State and Northeast Regional totals. This fact is compounded by the reality that the Northeast Region of the U.S. has also consistently remained well above National averages. For six of the last nine years, Rochester's average yield has suffered a premium penalty 30% above the Nation's yield performance.  There is little doubt that Rochester air travelers will respond to AirTran's new low fare service. In fact, the lack of any significant competitive low fare influence has stock-piled "pent-up" air travel demand that, with the proper stimulus, could permit the Rochester market to grow to levels that the majority of the Nation has achieved (even during the current economic downtime).

Today, Rochester has nonstop services to 15 U.S. cities of which nine are major carrier hubs facilitating competitive connections throughout the U.S. and the world. American, United, Delta and Northwest provide only hub services while US Airways offers five point-to-point services; Continental with three point-to-point markets. The community has received relatively consistent service to its nonstop destinations with the number of markets served changing very little over the past decade. Rochester's hub services are geographically diverse with tremendous connection capabilities via Philadelphia, Pittsburgh, Charlotte, Chicago, Washington, Atlanta, Cincinnati, Cleveland and Detroit. It is important to Rochester's flying public that existing network service be preserved.

By:  Office of the County Exec, Jack Doyle

The Sweetwater Economic Development Association is seeking $500,000 under the pilot program to fund the expansion of air service at Rock Springs-Sweetwater County Airport. SWEDA and the State of Wyoming will also provide financial support to fund the enhancement of passenger air service. The additional passenger air service created by this program will bring material benefits to local business, visitors to the area, the local college, and domestic and international tourism.

By:  Rock Springs, Patricia Robbins

A B C D E F G H I J K L M N O P Q R S T V W Y

After careful consideration of the above uses and in consideration of the programs, it appears that the Authority's best chance to be one of the 40 airports selected nationwide is some form of what is generally termed a "Frequent Flyer Program". This program will award customers that use the RFD through the issuance of MilesAhead rewards. These rewards are "universal in nature" and not dependent on a particular airline. This program will take the unique approach of securing consumer loyalty to a hometown airline service first, followed by loyalty to airlines that serve the community.

By:  Rockford, Robert O'Brien

A different, more unique, approach to smaller community air service needs is now necessary. The proposed air service pilot program spelled out in this grant application will address this non traditional approach to air service. Primarily designed to serve the business community, this new service will be both cost and time effective for local travelers. The major advantage of the community airport "Convenience" will once again play a major role in air service development at smaller community airports and specifically at the Rocky Mount/Wilson Regional Airport.

By:  Rocky Mount- Wilson Airport

By:  Rutland

S

The request for financial support under AIR 21 will not replace local public/private resources that are being used to recruit scheduled air service. "AIR 21" support will allow a significant enhancement of air service marketing efforts and help expand the scope of the public/private partnership. Partners will recognize that their resource contribution will be leverage with the additional "AIR 21" support. The City of Salem is requesting that Five hundred thousand dollars ($500,000) be made available through the "AIR 21" program. The fund, would be utilized over a 36 month period and would be used to augment the airline recruitment and marketing activities put forth in the following proposal.

By:  Salem, Alan Alexander

Salmon Air recently received the FAA's approval of their commuter authority contingent on proving runs that will be completed by the end of May 2002. The DOT approval was given in July 2001. Currently air service is provided with one round trip 3 days per week from Salmon, McCall, and Boise. The fares are $120.75 one way and $199.50 round trip. Currently a Cessna Caravan or Piper Chieftain is used on this route. Recent substantial insurance increases (plus more to come with commuter status) are making it mandatory to increase rates to cover costs.  The monetary request sought is $250,000. Those funds would go towards increased insurance since 9-11 plus the addition of commuter authority, simulator training for flight crews, additional dispatch/office personnel, and supplement capital cost to offer affordable fares during additional route development.

By:  Salmon

A B C D E F G H I J K L M N O P Q R S T V W Y

San Angelo is presently served by only one commercial air carrier, American Eagle, with the Saab-340. Continental Express, after starting service again in April 2000, recently ceased service on October 1, 2001 after the September 11, 2001 terrorist attack impact upon the nation's airlines. The City of San Angelo has been aggressive in its attempts to improve air service. The City and the local business community, working through the Chamber of Commerce, formed the local Concho Valley Air Service Task Force. This group is comprised of members of the Airport, Airport Advisory Board, Chamber staff, the Chamber's Transportation Committee, local Texas DOT representatives, elected state and county officials. This group has been effective in recruiting Continental Express to San Angelo in 2000 and in leading a statewide air service study that resulted in 31 cities participating in the Small Market Air Service Needs Assessment in Texas and New Mexico.

By:  Rudy Izzard, 

The Stockton Metropolitan Airport is pleased to submit its proposal to be considered for federal assistance under the Small Community Air Service Development Pilot Program. The amount of grant funding requested under this program is $200,000. This grant request is being made on behalf of the County of San Joaquin, with the County serving as the sponsoring government entity. The Airport Director will administer the grant. Stockton Metropolitan Airport is a county-owned and operated, non-hub, commercial service airport located on the southern boundary of the City of Stockton, in the heart of California's Central Valley between two major north-south thoroughfares (Interstate 5 and State Highway 99). Stockton Metropolitan Airport is currently served by America West Express, which offers two daily round-trip flights between Stockton and Phoenix, America West's hub.  Currently served by America West Express, Stockton Metro offers two daily departures to Phoenix, America West's hub. Service is provided via America West Express's popular 50-passenger Canadair Regional Jet.

By:  Stockton Airport, Barry Rondinella, 209.468.4700

By:  Sandpoint

The Santa Maria Public Airport District (SMPAD) would like to take this opportunity to submit its proposal to be considered for federal assistance under the Small Community Air Service Development Pilot Program. SMPAD would like to request a total of $217,530 from the Pilot Program and would pledge an additional $24,170 of airport funds for a total of $241,700 to create an Air Service Development Program. SMPAD will serve as the sponsoring governing agency with the Airport General Manager acting as administrator of the grant.

By:  Santa Maria

A B C D E F G H I J K L M N O P Q R S T V W Y

Unfortunately, Sarasota Bradenton International Airport has experienced some of the worst declines in air service over the last decade of any airport in the United States. In addition, fare levels from Sarasota/Bradenton to most major cities in the United States are significantly higher than at other airports.  

In calendar year 1990 the airport handled 2,010,304 passengers. In contrast in 2001, the airport handled 1,172,169 passengers. This is a decrease of 838,135 passengers or 41.6%. The Sarasota Manatee Airport Authority is seeking a Small Community Air Service Grant of $2,000,000 to use as an inducement to attract a new carrier to SRQ. The SMAA proposes to utilize the grant funds in two ways. They are as follows: First, $500,000 for advertising of the new service locally and from inbound markets. Second, $1,500,000 to defray startup costs and as a revenue guarantee to ensure the service is given time to establish a presence in the local marketplace.

By:  Ungaretti Harris, Edward Faberman, 202.639.7501

A B C D E F G H I J K L M N O P Q R S T V W Y

On April 17, 2002 the Sarasota Manatee Airport Authority submitted a proposal under the Small Community Air Service Development Pilot Program seeking funding to support proposed air service at the airport. The Department's March "Notice of Order Soliciting Community proposals" stated that the application should include "Airport operating budgets for the previous two years showing revenues and expenses. Expenses and revenues should be broken down on an object basis according to GAAP". The requested budget information is attached hereto.

By:  Sarasota and Ungaretti Harris, Edward Faberman

This Proposal seeks Federal assistance in the amount of $510,000 to help fund a two-state community wide air service development program to solidify and expand service at Savannah International Airport (SAV). The goal of this multi-community/business partnership program is to stimulate new demand at the local Savannah International Airport and maintain existing service so that passengers would not have the incentive to travel elsewhere. It is the goal of this program to maintain and expand low-fare jet service and to expand convenient nonstop service to better meet the needs of leisure and business travelers. This new service may be provided either by new entrant carriers, or by expansion of service by incumbent carriers. The low-fare service would provide the competition necessary to lower airfares by all incumbent airlines in competing markets, which in turn will enhance the economic vitality of community whose benefits can be expected to continue beyond the program term.

By:  Savannah, Patrick Graham and Ungaretti Harris, Edward Faberman

A B C D E F G H I J K L M N O P Q R S T V W Y

In response to the Department's Order 2002-2-11 Soliciting Community Proposals under the Small Community Air Service Development Pilot Program, Scotts Bluff County, Nebraska, submits the attached Application respectfully requesting $950,000 in grant funding. The Application proposes a public-private partnership with Westward Airways, Inc., of Scottsbluff, to obtain critically-needed intrastate air service linking Eastern and Western Nebraska.

By:  Scotts Bluff, Mark Masterton

Sebring Regional Airport is located in south central Florida and currently receives no scheduled air service. The Sebring Airport Authority, in conjunction with local public and private organizations, is actively working to attract air carriers to the region through a program of capital improvements and a coordinated marketing campaign. The SAA requests that the US DOT, through the Small Community Air Service Development Pilot Program, support this endeavor by funding the research and marketing activities described herein.

By:  Sebring, Michael Willingham

The Shenandoah Valley Regional Airport (SHD), Central Shenandoah Planning District Commission and the Shenandoah Valley Partnership have joined together to request a grant of $750,000 under the Small Community Air Service Development Pilot Program. These funds will be matched by the local and state grants and in-kind services totaling $150,000.

These goals are modest considering the need, but we recognize that progress on this front must be incremental. Thus, we seek to increase the community's only existing service to Pittsburgh, and to have this service upgraded to a larger than 19-seat aircraft. We also seek to obtain new service from US Airways to accommodate connections for our international passengers and to obtain new service to meet the local demand for service to the south and west. We estimate that these service improvements and links to the nation's hub system will enable 312,000 local passengers to meet their air service needs - a very substantial increase from the 11,000 passengers now able to fly to and from SHD.

By:  Shenandoah Valley

A B C D E F G H I J K L M N O P Q R S T V W Y

Analyses conducted by the Shreveport Airport Authority have consistently indicated that the region is deficient in service to the important industrial centers of the Midwest and Northern United States. The economy of the region served by Shreveport Regional Airport has increasingly been broadened in the past ten years. Despite the emergence of Shreveport as one of America's major automotive manufacturing centers, the region has limited access to the industrial regions of the Midwest, Northeast and Northwest United States and Canada.

By:  Shreveport, Roy Miller

The City of Sierra Vista has a long history of successful Public-Private Partnerships. Strong support has been received from the US Army Garrison Commander at Fort Huachuca, the Sierra Vista Chamber of Commerce and copious business and defense contractors in southeastern Arizona. The City has been in discussions with several air carriers, including America West and the Mesa Air Group, two air carriers already establishing a presence in the western United States. This Grant would allow us to foster a Partnership that has served the Sierra Vista/Fort Huachuca Community for the past 30 years.  If the grant is awarded by the US Department of Transportation, the City of Sierra Vista will pass a public resolution that commits the city's shares provided by the residents to the airport project. Funds will be monitored to ensure that they are being spent in accordance with the grant requirements and are allowable and allocable to the project.

Discussions have taken place with several commercial air carriers who are currently providing service to communities of similar size and demographics in the western United States. If this project is awarded, the City of Sierra Vista will solicit proposals from commercial air carriers interested in providing service to Sierra Vista. There are currently no plans on hiring any full-time equivalent positions within the next three to four years to implement this project. Current airport staff will fulfill the anticipated needs and requirements. Ticket counter positions will be the responsibility of the commercial air carrier awarded the bid to fulfill the service.

By:  Sierra Vista, Mary Jacobs, 520.458.3315, mjacobs@ci.sierra-vista.az.us

By:  Sioux City

The Airport Authority requests $600,000 federal dollars with a $150,000 local match to augment the start up operation of Mesa Airlines operating in partnership with Frontier as Frontier Jet Express. The service Mesa would provide would be three (3) round trips per day to Denver from Sioux Falls with 50 passenger regional jets. The need exists for two (2) reasons. The first being high airfares to Denver and beyond. This is evidenced by the current walk-up fare of $1,446 between Sioux Falls and Denver and the fare of $195 between Omaha and Denver. Other fares in the westbound direction beyond Denver are $300 to $900 higher in the Sioux Falls market than they are just 170 miles to the south in the Omaha market, approximately a 2-1/2 hour drive at today's South Dakota speed limit of 75 miles per hour. The second reason is service by four (4) turboprop (32 seat) aircraft that two years ago consisted of two (2) or three (3) United Boeing 737 type airplanes. The only westbound jet left in the market is one morning (8:05 a.m.) regional jet aircraft, a BAE #146 with 68 to 75 seats, depending on the size of airplane. Additionally, in the mid '80's, Frontier Airlines served Sioux Falls with two (2) Boeing 737's as well as Continental Airlines with a couple of Boeing 737's also when Denver was a Continental hub. Frontier exited the market in August of 1986 and Continental Airlines in 1988 and shortly thereafter downgraded its operation at Denver as a hub.

By:  Sioux Falls, Mike Marnach

By:  Somerset, J.P. Wiles

A B C D E F G H I J K L M N O P Q R S T V W Y

The primary objective is to re-establish air carrier service by one or more brand name carriers.  Attention is currently focused on 50-70 passenger regional jet service by Horizon Air and America West.  We hope to re-establish at least three round-trips daily to our primary destination market —the Los Angeles area.  Our previous service by United Express has perfected the desired market schedules and relative ticket pricing.  The larger planes are desirable and will require less flights offering greater economic advantages and higher capacity per flight.  The previous United 30-passenger planes were generally running at capacity, discouraging ridership.

The Airport currently has no air service since United Express left in October 2001.  After the 911 Terrorist Attack, a declining economy, and the various other small airport problems such as availability of appropriate aircraft, our airport has been unable to re-establish public air service.  One and sometimes two air carriers have served our airport  since World War II.  The return of public air service is a major priority in our region.

By:  Sonoma County

By:  Corporate Airlines, Charles R. Howell, IV

This Grant Request seeks $500,000 in federal funding, to be combined with a $2,500,000 contribution from the South Jersey Transportation Authority and the New Jersey Department of Transportation. Funds made available through the Small Community Air Service Development Pilot Program can significantly leverage local and state investments in South Jersey's air service. Per the attached Application, Grant funds would be used in a variety of ways to enhance Atlantic City's air service program - regional advertising to promote the benefits of flying from ACY, cooperative marketing to attract potential visitors and a shared-risk program to support an additional carrier's entry into Atlantic City. As the Grant sponsor, the South Jersey Transportation Authority will be responsible for administering Grant funds.

By:  James A. Crawford

By:  Southern Pines

Securing the service of more carriers would achieve a two-pronged goal: create competition to lower airfares, and fill gaps in existing air service. The goal of this proposed project is to attract at least two new carriers within the next three years, and provide an incentive for both new and incumbent carriers to add service where we have gaps, more specifically the Northeast, Atlantic Southeast, and the West.  To achieve this, SGF proposes to offer ground handling services to both potential and existing carriers. This grant would provide $453,711 for salaries and $52,611 for related operating items and funds to market this concept.

By:  Springfield

A B C D E F G H I J K L M N O P Q R S T V W Y

The purpose of this Grant Request is to establish over the course of a year, a sound, aggressive marketing/ business development/ travel bank program to enable the Partnership identified on the cover of the Proposal to attract scheduled air service and develop the appropriate level of passenger support to make the service economically feasible and sustainable over the long term. Phase One, in the first six months, would be to get this Program through the formulation, sales and marketing stages including setting up the travel bank procedures and contract infrastructure. Total cost of the Phase One is estimated to be $477,000. Phase Two, starting in the second six months of the first year and into the following year, if there is funding, seeks support from the Program for partial implementation of the travel bank at the rate of $500,000 per year. The balance of the travel bank funding would be raised by the Partnership, primarily its private sector. Total cost of the travel bank investment is estimated to be in the range of $3 to $5 million depending on whether the market selected is BLV-ORD or BLV-ATL, the Region's first and fourth largest markets. 

The target markets are:- BLV - ORD with three daily round trips by American Eagle with Regional Jets - BLV - ATL with three daily round trips by AirTran with B-717s or DC-9s.

By:  St. Clair

Our proposal is designed to: (1) improve air service to Central Minnesota; (2) provide significant benefit to the traveling public and the air carriers who serve the market; and, (3) demonstrate that it is possible to find common ground and benefit for two airports, Northwest Airlines, a new carrier, individuals, private businesses, universities and local governments.  The Brainerd/St. Cloud Partnership will fund the program by raising $3 million of local pledges to the Travel Bank and a $1 million Federal grant from the Small Community Air Service Development Pilot Program. This 3:1 local/federal share does not include other grants and in-kind contributions we will apply for (and raise) from local and State groups.

By:  St. Cloud, John Ellenbecker

The State of North Carolina is requesting $2 million in federal financial assistance under the terms of the Small Community Pilot Program. Funds received will be dedicated for use in achieving measurable improvements in air service quality, competition, and pricing at a consortium of 11 North Carolina nonhub airports. (See Exhibit 1) It is not the State's intention to distribute funding equally across all of the North Carolina airports included in this application. Rather, service development initiatives and the associated expenditures of any federal grant monies received will be targeted at those situations that represent the best opportunities to achieve meaningful and sustainable improvements in air service quality.

By:  North Carolina, William Williams

A B C D E F G H I J K L M N O P Q R S T V W Y

An acceptable Revenue Guarantee, to attract a new carrier or enhance the current flight offerings, has been calculated at $1.5million. In an effort to show their commitment to gaining acceptable air service out of Stewart International Airport, the local community's Industrial Development Agency (IDA) has contributed ¹/2 ($750,000) of the needed amount. A Letter of Credit is currently being set up to secure these funds. These funds will be applied to the Revenue Guarantee. The balance of $750,000 is requested from the Small Community Air Service Pilot Program. The Airport will secure this money in a manner acceptable to the Program and if not used will be returned. Airport will undertake all administrative and marketing efforts associated with this project, estimated at $150,000 per new route.

By:  Stewart International, Charles Seliga

The TLCPA is committed to making every effort on its own behalf to increase air service at the Airport. This is evidenced by the addition of an Air Service Development Manager to Airport staff in 2000. The TLCPA is requesting a total of $1,525,500 in AIR-21 funds that are necessary for us to provide our Air Service Development Manager the resources necessary to aggressively market TOL based on the methodologies outlined in our proposal. Preliminary discussions with local Economic Development leaders and the Toledo Chamber of Commerce have indicated financial support for our program. The TLCPA is excited about having the opportunity of establishing new air service at TOIL that is representative of air service catchment area of approximately 1.0 million people.

By:  Swanton, Paul Toth

By:  Syracuse, Charles Everett

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It is essential that the City of Tallahassee receive a grant in the amount of $1,500,000 to supplement the $2.1 million the City has already committed, in order to allow the Community to continue its "partnership" and move forward to a successful conclusion. The irony is that the announcement of the success of this partnership was scheduled for September 11.  AirTran Airways service has resulted in lowered airfares for the Community from all carriers, however, their expectations, as a result of the September 11 events in the past year are not materializing and have made it more difficult for them or any new service provider to continue and expand. Unfortunately, for a Community like Tallahassee, if the low-fare provider does not become a permanent part of the airport, fares will significantly escalate. It would have a negative impact on the entire area. It is our understanding that airfares at neighboring airports have actually improved as a result of AirTran serving Tallahassee.

By:  Tallahassee, Philip Inglese

A B C D E F G H I J K L M N O P Q R S T V W Y

By:  Taos

For the past seven years, the Telluride Regional Airport has seen its annual enplanements decline not because of the lack of people wanting to come to Telluride (that has increased as shown by the increase in skier days, festival attendance, real estate sales and sales taxes in Exhibit "D"), but because of the mega carriers focus on jet service and ignoring smaller markets. Smaller regional airlines with turbo-prop service continue to fill the void. The Small Community Air Service Program is a welcome opportunity for our Airport.  Given this opportunity to improve our air service, we have submitted the following proposal that includes a grant request of $300,000 for your consideration. We hope you find our Airport deserving of a grant. We believe it will be a productive use of funds, and will benefit our community.

The Telluride Regional Airport has two airlines that currently provide daily service. Great Lakes Aviation operates the 19-passenger Beech 1900 from Denver to Telluride. During the winter (December - March), they operate six flights per day, and during the summer (June - September) they operate 4 to 5 flights per day. For the months of April, May, October and November, those flights decrease to 2 flights per day.

America West Express provides service to Telluride from Phoenix. They provide one flight per day using the 37-seat Dash-8. During the months of April, May, October and November, there are no flights from Phoenix. Passengers during these times are forced to drive to Montrose (65 miles) or Grand Junction (130 miles). In comparison, in 1994, the Telluride Regional Airport had three airlines (United Express, Continental Express and Sky West), which the combined three airlines provided 21 flights per day during the ski season.

By:  Telluride Regional Airport Authority, Richard Buttall, 970.728.5313, tex@telluridecolorado.net

We are convinced that the only item lacking at this point is the infusion of cash necessary to cover operating losses during the initiation and build-up phase of service. As a smaller airline, Corporate cannot take on the inherent risk that exists in Terre Haute, or any new market, for this venture on its own. Terre Haute International Airport has developed a workable plan to use local Airport Authority and private community money, coupled with an elimination of profits by Corporate Airlines for the first year, to help start service. Local and airline contributions in the first year total approximately $768,000.

Additional financial incentives from the local community will be offered in years two and three. Selfsustaining profitability is scheduled in year four. However, we don't think that our contributions are enough to cover all of the year one losses Corporate is likely to experience. As a result we are requesting help from the Small Community Air Service Development Program to invest the balance of funding necessary for star-up and ramp-up expenses in year one that will bring sustainable airline service back to Terre Haute. The estimated requirement of Federal funds for the first year is $510,000.

By:  Terre Haute, Charles Goodwin

A B C D E F G H I J K L M N O P Q R S T V W Y

This proposal outlines an air service development initiative that would represent a quick win for the Small Community Air Service Development Program in that all the preliminary work has been done and the targeted airline has expressed a willingness to begin service if provided a six-month marginal revenue guarantee and startup costs. The addition of this new service would fill a gap in the Tri-Cities community's access to the national air service network by providing non-stop regional jet service to Chicago O'Hare Airport, Tri-Cities Regional Airport's second most popular destination. The proposal provides compelling historical data and revenue projections to show quick profitability.

By:  Tri Cities, Melissa Thomas

In 2001, a presentation was made to United Airlines for regional jet service to Denver. After some time, this proposal was accepted, with service beginning next month (May 2002). The community is hopeful that the increased competition to Delta Air Lines' routes through Salt Lake City will have the effect of lowering airfares and stimulating passenger traffic. We believe that, not only will United Express be successful on its routes to Denver, but Delta should also see a rise in demand as prices are eased. The community has no intention of having Delta leave the market, or reduce service to the Tri-Cities. Instead, we hope to complement that existing service and increase demand for all carriers serving our market. A profitable Delta (as well as a profitable Horizon) is key to our strategy.

The Tri-Cities Airport, TRIDEC and community leaders have thus far done what the Federal Government requested, both in researching the market and recruiting new service. We are proposing that the Federal Government, through this DOT grant, help the community by awarding a one-time grant of $200,000. This money would be used, along with additional local contributions, to help market and advertise all of the services provided by all airlines at the airport. However, special emphasis will be placed on the two options for eastbound service from the Tri-Cities. The grant money would be used specifically for: retaining a local advertising agency, developing advertising copy, conducting awareness surveys and buying and placing ads through print media, newsletters, fliers, television and radio. The Tri-Cities Airport and TRIDEC will support this grant by providing an additional $20,000. This is in addition to the $50,000 that TRIDEC has already budgeted to directly promote the United Express service.

By:  Tri-cities Airport, Jim Morasch, 509.547.6352, jimm@portofpasco.org

By any appreciable measure, there is no airport that is a better candidate than Tupelo Regional Airport. By every functional criteria, Tupelo Regional Airport measures up as an airfield that is positioned with infrastructure and potential to better serve the citizens of Northeast Mississippi. With the assistance of the Small Community Air. Service Development Program, Tupelo Regional Airport can enhance the current economic expansion and significantly improve the commercial air services to tens of thousands of deserving passengers and communities in this region.

By:  Tupelo, D.H. Kellum

The City of Tyler is seeking $200,000 in federal funding to bolster air service at Tyler Pounds Field Airport and to attract at least one additional air carrier. The City of Tyler, as the sponsoring government entity, is committing $25,000 in local resources toward this project.

By:  Tyler Pounds Field, Pinkney Butler

A B C D E F G H I J K L M N O P Q R S T V W Y

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Uintah County is currently served by Great Lakes Airlines with three round trip flights direct to Denver on weekdays, one round trip on Saturdays, two round trips on Sundays. Great Lakes has code sharing agreements with United Express Airlines and with Frontier Airlines. Equipment type – Great Lakes Airlines uses Beech 1900 type aircraft, which is a nineteen-passenger turboprop. The total amount requested for the three-week advertising and promotional plan for the Vernal Airport is $ 3,679.50. This amount will cover all expenses related to the advertising campaign. The second project for which the Vernal Airport is requesting grant assistance under the pilot program is to conduct a market research study. The airport has three objectives they want to address in a market research study. First objective of the study would be to determine if there exist any need to improve the scheduled air service to the community. If deficiencies exist in the local air service, the second objective of the study will focus on what needs to be improved so that the airport can better serve the community. The final and most important objective will deal with the feasibility of adding Vernal to Salt Lake City, Utah air service.

By:  Thomas Wardell

Under the attached Proposal and Application, Continental has agreed to resume service to New York / Newark (EWR) under conditions of a one year revenue guarantee provided by the Department of Transportation under the Pilot Program. Continental's service concept is exciting because they have agreed to use their new long-range regional jet, the EMB-145 XRJ with twice daily frequency. The proposed schedule will provide excellent connections beyond Newark, both domestically and internationally. The proposed service offers a much improved operation over Continental's prior New York service which relied on a single daily frequency that provided reduced connectivity and return capability. As envisioned, the proposed Continental service will infuse new competition into the local air service market and thereby provide a means to recapture traffic leakage, and stabilize fares thereby providing much improved access to the national air transportation system.

By:  County of Volusia

A B C D E F G H I J K L M N O P Q R S T V W Y

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The communities are requesting twice weekday services between Pendleton and Walla Walla to/from Boise, with a reduced schedule on the weekend. The schedule would include an aircraft overnighting in Pendleton. Pendleton has an existing hangar facility next to the terminal and is the perfect location for Big Sky's western maintenance base, serving the states of Idaho, Oregon and Washington. Pendleton is equidistant from Seattle, Portland, Spokane and Boise.  The overnighting aircraft would leave Pendleton in the morning, briefly stop in Walla Walla and then continue on to Boise. In the late morning the aircraft would return to Walla Walla, continue to Pendleton and then return to Boise. In the evening, the aircraft would travel to Walla Walla, stopping briefly before ending up in Pendleton.

It is estimated that this proposed route structure would cost Big Sky roughly $1.2 million per year to operate. The communities are convinced that this route will be self-sustaining within one year of the initiation of service. Therefore, the Consortia is asking the Federal Government to only provide the investment capital necessary to cover start-up and ramp-up expenses for the first 12 months. It is requested that this amount from the Federal Government total $600,000. The local communities are working to provide an additional $300,000 in incentives to be used in the first 12 months. These incentives would include pre-purchased tickets, cash for advertising and marketing, in-kind services and contracts with local businesses guaranteeing travel.

By:  Walla Walla, Larry Dalrymple

A $500,000 grant will be used for the following: Aggressive Recruitment of Air Line Industry. Employment of Air Service Development Staff. Public Relations and Materials to Promote an Air Service to the Walnut Ridge Municipal Airport. Coordination and Promotion of Air Service to a Four County Area. Studies to Determine Air Served Needs for a Four County Area. Subsidy to Attract Air Service and Keep Fares in Competition with Little Rock, Arkansas and Memphis, Tennessee. Minor Renovations at the Walnut Airport Terminal Building to House New Air Service.

By:  Walnut Ridge, J. R. Rogers

The Board of County Commissioners of Washington County (the County), Maryland, proposes to join with the Potomac Highlands Airport Authority, owner and operator of the Greater Cumberland Regional Airport in Wiley Ford, West Virginia; the Maryland Aviation Administration, program manager for the unique "Regional Air Service Development Program," and Boston-Maine Airways Corp., the air service provider; to provide enhanced air service between Cumberland, Hagerstown and Baltimore, Maryland. The enhancements to the newly initiated service, subsidized with $4,250,000 of State funds over a two year period, will provide for the implementation of a universal reservation program for the airline and an intense, comprehensive marketing program in the markets surrounding Hagerstown and Cumberland. Both communities are proposing to participate in this project and have calculated pro-rated shares for each. The total cost of the two proposals is $716,879. Washington County's proposal is requesting $291,079.

By:  Washington County, Gregory Snook

The airport is currently served by three airlines - Great Lakes Aviation, Mesaba Airlines and Corporate Airlines. Great Lakes Aviation, which provides service to Chicago, currently uses Beech 1900s. Their current schedule provides four departures during the week to Chicago. Mesaba Airlines, which provides service to Minneapolis, currently uses Saab 340s and have four departures to Minneapolis during the week. Corporate Airlines, who provides service to St. Louis, uses Jetstream 3 1 s with three scheduled departures during the week to St. Louis.

By:  Waterloo

A B C D E F G H I J K L M N O P Q R S T V W Y

By:  West Virginia

Initiate scheduled service (Phase 1) between West Wendover and two major cities and their airports. Those destinations being Salt Lake City, Utah (Salt Lake City International - SLC) and Las Vegas, Nevada (McCarron International - LAS). This short-term goal establishes two roundtrip stops from West Wendover to the two destinations per day.

By:  Wendover, Chris Melville

In support of this project, the Town is requesting $1,305,000 to install de-icing equipment, winterize the existing terminal and purchase used equipment to remove snow from runways and taxi areas. Proposed expenditures are outlined in Appendix 1.  The West Yellowstone Airport facility will operate in 2002 with 2 Skywest Airline flights connecting to Delta hub in Salt Lake City on a daily basis. Skywest operates June through September. Skywest enplanements for the last several years have averaged between 4000-4500 per year. In the past, Western, Frontier, and Aspen have served the facility.

By:  West Yellowstone

The White Pine Chamber of Commerce is seeking $550,000 under the pilot program to fund the expansion of air service at Ely-White Pine County Airport. The Chamber and its members will also provide financial support to fund the enhancement of passenger air service. The additional passenger air service created by this program will bring material benefits to local business, visitors to the area, the local college, and domestic and international tourism.

By:  White Pine, Patty Rimington

This Grant Request is to provide financial support for an ongoing Community Air Service program which will accomplish the following goals: Attract domestic airlines which will lower air fares at Wichita Mid-Continent Airport and provide service to all geographic areas of the nation; Reduce the number of catchment area drive away passengers; To provide acceptable air fares to the market area which will retain and attract business and industry.

By:  Wichita Airport, Bailis Bell, 316.946.4700

A B C D E F G H I J K L M N O P Q R S T V W Y

The Potomac highlands Airport Authority is pleased to submit this proposal to receive assistance in developing airline service in our region. Our proposal requests financial assistance of $425,800 to maintain service between Greater Cumberland Regional Airport and Baltimore - Washington International. In addition, we are requesting funding to assist in marketing local air service.

By:  Greater Cumberland, James Stahl

Williamson County Regional Airport is the sole commercial service airport in Southern Illinois. Due to declining passenger traffic in recent years, three separate marketing studies were conducted in order to quantify the true market potential that exists in the region. An air service task force consisting of the Airport Authority and several communities throughout the area was also organized to address the concerns. In May of 2000, Corporate Airlines took over commercial service operations from Williamson County Regional Airport. Since that time a positive trend of growth has been established in passenger activity as a result of the airline's reliable service and broad based community support. The greatest challenge still facing air service in Southern Illinois is the continued development of the existing service. Corporate Airlines has been limited in their ability to market and advertise their service due to financial constraints, and the recent takeover of Trans World Airlines by American Airlines. This proposal seeks financial assistance to complement the local money already established to more effectively promote the existing air service throughout our region.

Second in importance to developing the existing service is the area's ability to attract an additional, competitive carrier. Continued growth in passenger activity in the Southern Illinois market will undoubtedly contribute to the likelihood of attracting an additional carrier. This proposal also seeks the financial assistance necessary to retain the services of a professional air service consultant in order to assist with the promotion of the Southern Illinois market to regional carriers. The Williamson County Airport Authority will serve as sponsor on behalf of the communities representing the Southern Illinois Air Service Task Force in order to utilize air service development funds under this grant program. In doing so, the Airport Authority will insure that all grant money received for air service development will be used as outlined in this proposal.

By:  Williamson County, Douglas Kimmel, 618.933.3353 

Approximately 70 percent of the travelers using Wilmington International (ILM) are traveling on business and are vocal about the air service deficiencies. It is estimated from local travel agency information that approximately 35% of potential travelers utilize the Raleigh/Durham and Myrtle Beach International Airports instead of ILM due to lower fares and a wider selection of non-stop destinations.  The overall competitive situation between North American airports continue to grow with the reduction of air service opportunities. Airports across the nation are actively and strategically pursuing airlines. Airlines consider the bottom line profitability, which includes the overall cost of doing business. But often the cooperative marketing programs and airport programs that are designed to assist in making routes successful are an important discussion item when airlines are making decisions on new or expanded service. The Wilmington International Airport (ILM) must remain competitive and targeted.

By:  Wilmington International Airport, Carter Lambeth, 910.341.4333

A B C D E F G H I J K L M N O P Q R S T V W Y

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The CWVRAA herein requests a $500,000 grant under the terms of The Small Community Air Service Development Pilot Program to recruit and incubate specific additional air service that will resolve the region's problem of insufficient air service access to points in Texas, the Southwestern United States, as well as Latin America. The Partnership intends to provide an additional $100,000, resulting in a total fund of $600,000 for this project.

The CWVRAA has conducted extensive analyses of the region's air service needs. Access to Houston and the hub operated by Continental Airlines will address a major air service deficiency that has emerged in the past five years in the region served by Yeager Airport.

By:  Yeager Airport

Our request for funding is $1,038,000 dollars. The accompanying application will provide a thorough description of how the Youngstown-Warren Regional Airport history and current lack of air service situation supports a dire need for funding assistance. The application also provides a description of the grant funded strategies for our air service development plan.

By:  Youngstown/Warren, Thomas Nolan

Small Community Air Service Development Pilot Program

Order 04-8-30
OST-04-17343
OST-03-15065 - Small Community Air Service Development Pilot Program
OST-02-11590 - Implementation of Small Community Air Service Development Pilot Program

Issued and Served August 30, 2004

Order Awarding Grants

The many proposals submitted were carefully considered. This year's selections will provide financial assistance to over 40 communities in 30 states. In every award, the communities are contributing to the grant project from other than airport revenues. Many will also contribute to the project from airport revenues and provide in‑kind airport benefits to further the goals of the proposed service/fare initiatives. In addition to the communities' participation and involvement in designing the grant projects, these financial contributions reflect a commitment to the grant projects that is important to the success of the proposed service/fare initiative. Nearly all of the communities either have, or will establish, public/private partnerships to increase community participation and to facilitate access to air service for the community.

By: Karan Bhatia

OST-2002-11590 - Implementation of Small Community Air Service Development Pilot Program

April 12, 2005

Re: Barkley Regional Airport (KY) Request for Grant Extension

Discussions continue at an escalating rate with Delta Connection for Cincinnati service from Paducah. Delta has promised us specific details within the next month but has already alluded to the probable need for revenue guarantees and/or risk abatement agreements.

Secondly, Northwest Airlink service to Memphis has experienced very high load factors thus far this year pointing to the need to upgrade from 34 seat Saab 340s to 50 seat regional jets and/or initiate service to Detroit. Discussions with Northwest also point to the need for risk abatement.

These discussions will no doubt continue beyond our grant's expiration date and it is critical that we be able to utilize the uncommitted remainder of our grant should one or more of these potential service improvements come to fruition.

A third reason for our extension request lies in DOT's forthcoming final ruling on renewal of RegionsAir's subsidized routes from the St. Louis hub. Although RegionsAir serves Pad ucah‑St. Louis on a non‑subsidized basis, should DOT award all or most of RegionsAir subsidized markets to another applicant carrier, the disappearance of a substantial portion of RegionsAir subsidized markets would most likely result in Paducah losing our RegionsAir American Connection service to St. Louis. We would need the remaining uncommitted AIR 21 grant funds to attract replacement service.

By: Richard Roof, Manager

OST-2006-23671
OST-2002-11590 - Implementation of Small Community Air Service Development Pilot Program

April 24, 2006

Delta Air Lines in Support of Telluride, Colorado

We support the Telluride Regional Airport's Air 21 application for extension and ask that you afford them every opportunity to utilize the funds as awarded through this unique federal program.

By: Delta, Sametta Barnett

A B C D E F G H I J K L M N O P Q R S T V W Y

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