Sarasota Bradenton International Airport

Transcription

1 Docket DOT-OST Proposal under the Small Community Air Service Development Grant Program of Sarasota Bradenton International Airport Under 49 U.S.C et seg DUNS # Florida Congressional District #13 Legal Sponsor: Sarasota Manatee Airport Authority

2 Proposal Summary Sarasota Bradenton International Airport, in partnership with the Bradenton Area Convention & Visitors Bureau and the Sarasota Convention & Visitors Bureau, respectfully submits its proposal for a grant under the Program (Docket DOT-OST ). Air Service Deficiency: Westbound Access Sarasota Bradenton International Airport (SRQ) today suffers significant loss of passenger traffic due to lack of service to a western hub gateway. This is a major deficiency that results in a loss of over 136,000 annual passengers to the community. For the economy of Sarasota Bradenton, an important vacation/leisure market dependent on air service access, this results in an annual loss of as much as $43 million in visitor dollars annually. The Solution Is Clear And Well Planned The Airport and its community partners have a clear plan to address this deficiency. However, the funds requested in this application are critical to recruit the additional air service necessary. The Airport has been in discussions with key airline systems that have connecting hubs that offer strong potential to re-capture this lost traffic. Service to American s hub at Dallas-Ft.Worth International can address the challenge. In addition, the United Airlines hub operations at Houston Intercontinental and Denver International both offer solutions to the lost traffic being experienced at SRQ. In this grant application, the volatility of the airline industry dictates that the options be focused on more than just one carrier. American is in the midst of renewing its fleet and dealing with a redisposition of its American Eagle subsidiary. United is completing the merger with Continental. As a result, the planning and strategic directions of these airlines are at the moment quite fluid. However, analyses by SRQ indicate that either option is viable, and will result in very successful use of scarce SCASD program funds. The Grant In this application, the Airport and the Community are requesting a grant of $800,000, to be matched with $400,000 in local dollars, to provide a revenue guarantee and risk offset to incubate service to one of the two targeted airline hubs identified above. Sarasota Bradenton International Airport and the community wish to thank the Department for its time, and look forward to favorable consideration of this application. Community Support Sarasota Bradenton International Airport is joined in this application by both the Sarasota Convention and Visitors Bureau and the Bradenton Area Convention and Visitors Bureau. Both Docket DOT-OST Page 2

3 have committed $200,000 to the application. This will be in addition to extensive regional outreach efforts to assure the new service is successful. Contact Information Sarasota-Bradenton International Airport will serve as the legal sponsor and be responsible for administering the grant. All correspondence regarding this proposal should be referred to: Mr. Fredrick Piccolo President & Chief Executive Officer Sarasota Manatee Airport Authority 6000 Airport Circle Sarasota, Florida Tel: (941) Docket DOT-OST Page 3

4 Table of Contents PROPOSAL SUMMARY 2 Air Service Deficiency: Westbound Access 2 The Solution Is Clear And Well Planned 2 The Grant 2 Community Support 2 Contact Information 3 1. TECHNICAL DESCRIPTION OF PROPOSAL 6 Community & Airport 6 Legal Sponsor 6 Public/Private Partners 6 Proposal Description 6 2. SRQ MARKET AREA 7 Geographic Location & Market Population 7 Tourism: Economic Engine of The Gulf Coast 8 Not Just Tourism: A Diverse Economic Base 8 3. CURRENT SRQ AIR SERVICE 10 Historical Enplanements & Capacity 11 Average Market Fares 12 Statement of Air Service Deficiency 13 Airline Connect Patterns Are Aimed North, Not West 15 SRQ Deficiency Is Clear 16 Docket DOT-OST Page 4

5 GRANT APPLICATION 17 SRQ-IAH Is The Prime Objective, But Airline Uncertainties Are Present 17 Traffic & Revenue Projections 18 AIR SERVICE RETENTION & RECRUITMENT STRATEGY 19 Prior Small Community Air Service Grant 19 SCASD GRANT ADMINISTRATION PLAN 21 Responsibility for SCASD Grant Funds 21 Summary of Plan for Use of SCASD Grant Funds 21 Risk-Offset 21 Marketing Program 21 Plan to Monitor Funds and Project Effectiveness Subsequent To Grant 22 Docket DOT-OST Page 5

6 1. Technical Description of Proposal Community & Airport Sarasota and Bradenton, Florida served by Sarasota Bradenton International Airport that is owned and operated by the Sarasota Manatee Airport Authority. Legal Sponsor Sarasota Manatee Airport Authority DUNS # Florida Congressional District #13 Contact: Mr. Fredrick Piccolo President & Chief Executive Officer Sarasota-Manatee Airport Authority 6000 Airport Circle Sarasota, Florida Tel: (941) Public/Private Partners This proposal is supported by the Bradenton Area Convention and Visitors Bureau and Sarasota Convention and Visitors Bureau. These community partners will provide matching funds, manpower, and contacts within the tourism community to aggressively promote Sarasota Bradenton International Airport as a gateway to the western United States in support of the new service the grant will make possible. Proposal Description The Sarasota Bradenton International Airport and its community partners are requesting a grant in the amount of $800,000, to be matched 25% with local funds, in order to provide a one-year risk-offset program to recruit American or United to provide service to one of these carriers west-oriented connecting hubs. Community sponsors have committed to this hard-dollar match. The size of the identified traffic potential represented by the current westbound traffic loss at SRQ is sufficient to support nonstop service to DFW, IAH, or DEN. From that perspective, the proposed service represents a true opportunity for the targeted carriers. Therefore, the revenue guarantee outlined in this proposal represents a high potential for success, with low risk to the Program s funding. Docket DOT-OST Page 6

7 2. SRQ Market Area Geographic Location & Market Population Sarasota Bradenton International Airport is located along Florida s Gulf Coast, serving the communities of Sarasota and Bradenton, with just over 1.9 million population focused along the north-south corridors of I-75 and US 41. Sarasota Bradenton International Airport Primary Catchment Area The northern sector of the catchment area is effectively a consumer DMZ where traffic demand, depending on consumer sector, destination, and travel intent, typically uses either SRQ or Tampa International Airport. Docket DOT-OST Page 7

8 The average household income within the primary service area of Sarasota Bradenton International Airport is approximately $59,000 annually. Tourism: Economic Engine of The Gulf Coast Tourism and second-home ownership are the primary driver of the economy of the Gulf Coast and the market area served by Sarasota Bradenton International Airport. To illustrate this point, there are over 20,000 hotel rooms, condominiums, and time-shares within a 30-minute drive of SRQ. This places Sarasota Bradenton International Airport closer to most of the hotel inventory than either Tampa/St. Petersburg International Airport or Fort Myers International Airport. Among the tourist activities and attractions in the region area: Ringling Estate & Museum; Mote Marine Laboratory; IMG Sports Academy; Baltimore Orioles and Pittsburgh Pirates spring training camps; Sarasota Classic Car Museum; Marie Selby Botanical Gardens; Parker Manatee Aquarium; Ca d Zan Mansion; Saint Armands Circle (shopping); and Big Cat Habitat and Gulf Coast Sanctuary. Most importantly, there are over 20 beaches including the only beach in Florida to be named to Dr. Beach (America s Foremost Beach Expert) Top 100 for Siesta Key Beach was rated #1 in These beaches are the primary reason that visitors come to the market area served by Sarasota Bradenton International Airport however, as outlined, the local economy and air service is threatened by the unprecedented challenge in the form of public perceptions regarding oil washing ashore. Not Just Tourism: A Diverse Economic Base The economy of the market served by Sarasota Bradenton International Airport is not strictly tourism. As the table below illustrates, the region has a vibrant and diverse industrial base that includes the presence of a number of technology and Fortune 100 companies. Company Industry/Description Approximate # of Employees Tropicana Products Fruit juice producer 2,200 PGT Industries Custom doors, windows, and patio rooms 1,400 Wellcraft Marine Fiberglass boats 1,050 Intertape Polymer Group Manufacturer of specialized plastic and paper products for retail industry 850 American Marine Holdings Boat manufacturing 840 Invensys Sensor Systems Magnetic, ultrasonic and resistive speed, position and motion sensors and controls 700 Hi-Stat Manufacturing Sensors for automotive sector 575 Tropitone Furniture Manufacturer of casual furniture 550 Hoveround Powered wheelchairs and mobility scooters 480 IMG Academies Sports academies 460 RMC Concrete Ready-mix concrete and pavers 430 Docket DOT-OST Page 8

9 JC Jones Chemicals Water treatment chemicals 400 Eaton Aerospace Electrical power and load management, systems for aerospace 400 Vengroff Williams & Associates Collection agency 300 Carter Grandle Manufacturer of casual furniture, umbrellas and cushions 300 L-3 Communications, Aviation Flight Data and Voice Recorders 200 Comdial Corporation Business communication hardware 150 Many of these industries have communities of business interest with points west of the Mississippi, and are forced to drive to Tampa International Airport for such destinations due to the extreme circuity of existing connecting flights and the high fares from SRQ. Docket DOT-OST Page 9

10 3. Current SRQ Air Service Proposal of Sarasota Bradenton International Airport Sarasota Bradenton currently has service from five airline systems. All are focused on tapping the strong north-south traffic flows from the Northeast and Upper Midwest. During the fourth quarter of 2011, Sarasota Bradenton International Airport will have nonstop service to 11 destinations offered by five airline brands. Service Scheduled for 4Q 2011, not including seasonal Canadian flights The map visually illustrates the gap in access to the West and the Southwestern US. While there is connectivity to these points from the hubs at Atlanta and Chicago/O Hare, the carriers focus on traffic capture on a north-south axis, reducing seat capacity for consumers to and from the West. This data will be provided below. Docket DOT-OST Page 10

11 Historical Enplanements & Capacity Despite strong air service development efforts on the part of the Airport, SRQ has yet to see enplanements rebound to pre-9/11 levels. In fact, since 9/11 SRQ has lost two major carriers that formerly provided access to the West American to STL, and Continental to IAH. 900,000 SRQ Has Yet To Recover To Pre-9/11 Levels 800, , , , , , Est Enplanements 795, , , , , , , , , , , ,779 In the last five years, seat capacity at SRQ has declined almost 19% Departures Seats Carrier Change % Change Change % Change AA 365 (365) % 18,250-18, % AC ,373 17,373 B ,550 93,550 CO 2,104 (2,104) % 83,605-83, % DL 3,372 2,183 (1,189) -35.3% 404, ,818-70, % FL 2,650 1,933 (717) -27.1% 318, ,441-87, % NW 199 (199) % 24,532-24, % US 1,513 1, % 133, ,880-11, % Total 10,203 6,619 (3,584) -35.1% 982, , , % Docket DOT-OST Page 11

12 Average Market Fares While it varies by market, the average fares paid by SRQ consumers are higher than at Tampa international Airport. But to western points, average fares are significantly higher. Below are average fares in SRQ top O&D markets. SRQ TPA Rank Market Avg Fare AVG Fare SRQ Pct Difference 1 MDW $ $ % 2 JFK $ $ % 3 ATL $ $ % 4 BOS $ $ % 5 BWI $ $ % 6 IND $ $ % 7 DCA $ $ % 8 DTW $ $ % 9 MSP $ $ % 10 BUF $ $ % Airport Average $ $ % The average paid-fare difference at SRQ is 2.4% higher than at TPA. However, when fares to key points in the West are isolated, SRQ has an enormous fare premium to and from many destinations: M arket SR Q A vg T P A A vg P C T D iff ABQ $ $ % GEG $ $ % LAS $ $ % LAX $ $ % PDX $ $ % PHX $ $ % SEA $ $ % SFO $ $ % TUS $ $ % Fares shown are one way, including federal fees and taxes for the full year These are strong evidence that the western access this grant will facilitate is today a major air service deficiency that inflicts high fares on the market. Docket DOT-OST Page 12

13 Statement of Air Service Deficiency The air service deficiency that the grant will address is one that is becoming more severe as much larger Tampa to the north adds additional western spokes. For example, today, for a consumer in the DFW Metroplex, the air journey to SRQ represents at minimum a 5-hour journey with a connection. A nonstop flight would be approximately 2.3 hours less than half of today s trip time. The lack of a more direct connecting opportunity represented by the target hubs in this application is a major deficiency that severely diminishes SRQ s ability to compete for western-generated tourist dollars. Today, Sarasota Bradenton International Airport has a major shortfall in air service access and much higher fares to and from the US West. The expansion of such service at Tampa International over the past five years has resulted in much of this traffic demand shifting to TPA. Simple visual comparisons between the service access at SRQ and TPA are illustrative of this point: Docket DOT-OST Page 13

14 This disadvantage is clearly borne out by traffic data. As a gateway to a leisure market, it is logical that the traffic base is mostly in-bound originated. This is true of the SRQ market as a whole, but not it is not the case with O&D from western metropolitan areas. At SRQ, the traffic base in total is only 36.5% locally-generated. That means that, overall, over 63% of passengers using Sarasota Bradenton International are visitors. However, when the current O&D from five typical western destinations is reviewed, the inbound originations are just over 50%, much below the airport s average of 63.5%. Rank Market Psgr % Originating At SRQ Efficiency 1 LAX 15, % 88.7% 2 DFW 13, % 77.8% 3 DEN 13, % 90.5% 4 SFO 12, % 90.4% 5 PHX 8, % 84.9% 6 SAN 6, % 87.9% Totals 70, % 87.5% SRQ 1,286, % 94.1% It is also of note that the routing efficiency the average miles of consumer itineraries compared to nonstop flying is only 87.5%, pointing to high routing circuity. These issues are not inconsequential: as a leisure destination, the convenience of access to SRQ is a critical factor in attracting tourist dollars. Not having access to a western hub gateway, which would reduce trip time and help level the competitive playing field with Tampa, is a significant air service deficiency. It is one that is demonstrably affecting the local economy of Sarasota Bradenton. Docket DOT-OST Page 14

15 Airline Connect Patterns Are Aimed North, Not West Proposal of Sarasota Bradenton International Airport While there is theoretical connectivity to and from points in the West, this is countered by: Much increased circuity compared to having access to a west-oriented connecting hub. For example: The flight time between TPA and DFW is two hours and fifteen minutes. The combined flight times and connecting requirements between SRQ and DFW, over Atlanta is, at minimum, four hours and fifty minutes. 1 In fact, SRQ-region consumers can actually save considerable total travel time using Tampa, even including the 60-minute (or less) drive time to TPA. The current air service at SRQ is oriented and timed to capture north-south traffic flows. The connect patterns of the top three carriers at SRQ are clearly aimed at maximizing this traffic: Top 10 Delta SRQ Connect Destinations Top 10 US SRQ Connect Destinations Rank Dest Pax PDEW Rank Dest Pax PDEW 1 MSP 14, BOS 11, BOS 14, PHL 7, DTW 13, BUF 7, CVG 12, PIT 6, LAX 12, MDT 5, EWR 11, EWR 4, LGA 10, RDU 4, CMH 10, PVD 4, IND 9, CMH 4, DAY 9, CLE 3, Top 10 FL SRQ Connect Destinations Rank Dest Pax PDEW 1 MDW 9, IND 8, FNT 8, BOS 7, BWI 8, BMI 7, MSP 7, CAK 7, MLI 5, BUF 5, Of the top ten connect markets, at each of the three largest carriers at SRQ, all but one are north-south oriented. These top ten hub connect points represent almost 350 passengers 700 total O&D each day. Less than five percent are West-oriented, represented by Delta s 16.9 PDEW to Los Angeles. 2 1 Source: Airline schedules filed with Innovata, LLC and analyzed by Aviation DataMiner. The SRQ-DFW data include the 2 Source: Full year 2010 O&D analyzed by Aviation DataMiner. Docket DOT-OST Page 15

16 SRQ Deficiency Is Clear An analysis of the population to passenger ratio to/from the US West from the Florida west coast underscores the strong deficiency at SRQ. Seattle Portland Salt Lake City Sacramento Las Vegas Los Angeles SNA Phoenix San Diego Albuquerque The Westbound Air Service Deficiency Represents over 117,000 Lost SRQ Passengers to/from These Ten Cities, alone. Saras ota Brade nton Note that this analysis does not consider the traffic losses to secondary cities in the West, such as Colorado Springs, Fresno, Spokane, and dozens of other points. Only 39% of the potential west-oriented traffic generated at SRQ is being captured on local flights. Docket DOT-OST Page 16

17 Grant Application The Airport has identified three westbound airline gateways that can materially address this damaging service shortfall. They are United to IAH, American to DFW, and United to Denver. Denv er - United Dallas/Ft.Worth - American Houston/Intercontinental Sarasota Bardenton SRQ-IAH Is The Prime Objective, But Airline Uncertainties Are Present While the option to the United IAH hub is the most obvious, it is noted that strategic planning at United is still in flux due to the merger with Continental. Based on that, the carrier might prefer to pursue the much longer Denver option, which would provide strong feed to compete with Southwest, the #2 carrier at Denver International. American s hub at DFW is a strong option as well. American also is in strategic flux, and may spin off its American Eagle subsidiary. It also has less than seat CRJ-700s, which would be the design aircraft for the SRQ-DFW market. Because of these uncertainties, the Airport and the Community would ask the Department s flexibility in the exact west-oriented connecting hub ultimately pursued. By the time the grant is awarded, there could be substantial changes at these carriers that would alter the exact gateway possibility. In this application, specific projections are made for SRQ-IAH. Similar projections can be made for AA/DFW and for UA/DEN. The grant amount requested is the same, but the Airport would be appreciative of the Department s understanding of the uncertain airline industry context that may evolve in the next several months. Docket DOT-OST Page 17

18 Traffic & Revenue Projections The airport has accomplished detailed forecasts for each of the target carriers. These include market capture and share projections, the latest data regarding aircraft fleets and operational expenses, and extensive analysis of attainable capture on a market-by-market basis. For the proposed SRQ-IAH service, two daily nonstop flights are forecast. Projected Operating Metrics - SRQ -IAH Market Distance 795 Aircraft CRJ-700 Service Pattern 2 Roundtrips Annual Seats 82,431 Annual Flights 1,249 Completion Factor 96.0% Block Time 2.4 Annual Block Hours 2,998 Cost Per Hour $4,045 CASM $ Annual Segment Operating Cost $12,123,592 Revenue & Traffic Projections Local Traffic IAH Local O&D 9,024 IAH Local PDEW 12.4 Average Fare $ Local Revenue $1,330,758 Local Yield $ Connecting Traffic Connecting Traffic 64,351 Connecting PDEW 88.2 Connecting Revenue $13,144,225 Totals Onboard Passengers 73,375 Total PDEW Pro-Rated Revenue $14,474,983 Less Displacement (10%) $1,447,498 Net System Revenue $13,027,485 Net Average Revenue per Passenger $ Average Market Yield $ Market RASM $ Load Factor Projections Annual ASMs 65,532,931 Annual RPMs 58,333,025 Segment Load Factor 89.0% Projected Segment Operating Profit $903,893 Operating Margin 7.5% Docket DOT-OST Page 18

19 Air Service Retention & Recruitment Strategy As noted above, the Airport has an aggressive air service development program, focused on both domestic and international traffic demand. In this case, the Airport has clearly identified a market need, target carriers that can benefit from the opportunity it represents, and has a clear plan to assure that the service is successful. We would point to the Airport s nurturing of the service facilitated by the first grant, and has assisted the carrier (AirTran) in expanding its market reach at SRQ beyond the initial route. (SRQ-ATL). To that end, the Airport and its community partners will assure that the service is strongly supported, both during and after the grant period by the following: Community Outreach The service shortfall to the US West now loses over 60% of the traffic generated to that region. The community is eager for new service, and has been seen with AirTran, and later jetblue, will support the proposed service to IAH. The airport nurtures this by frequent outreach to key civic groups and organizations. By mail, e- mail, one-on-one meetings, and via website promotions, SRQ keeps the service at the airport in front of the public. Industry Meetings The Airport participates in all major airline recruitment events, including Routes and JumpStart. In addition, the airport management is heavily involved in industry organizations such as Airports Council International. This provides excellent exposure for SRQ at several levels. Airline Outreach The Airport is in regular, organized, and focused contact with all incumbent and target carriers. Where appropriate, direct meetings are held with airline planners to keep them aware of events and traffic issues at SRQ. Prior Small Community Air Service Grant The Community was honored by being made the recipient of a 2003 Small Community Air Service Development Grant. Proudly, the grant was a success in attracting the airport s first low-fare carrier (AirTran) and has been the foundation for additional new north-south service. Just as in 2003, the need and the traffic opportunity in this current application are such as to point to a high potential for success. As with the earlier grant, this 2011 application fully meets the intent of Congress in implementing this program. Docket DOT-OST Page 19

20 Summary of Air Service Development & Retention Activities Regular phone Regular phone Regular phone and and and contacts with contacts with contacts with incumbent incumbent incumbent carriers, carriers, carriers, discussion of discussion of discussion of service levels and service levels and service levels market market and market performance performance performance Regular phone and contacts with incumbent carriers, discussion of service levels and market performance Regular phone and contacts with incumbent carriers, discussion of service levels and market performance Attendance at Networks 2010 Conference (March), ACI Jumpstart Conference (June), and Routes Conference (September) Meetings with US Airways, jetblue, and American Airport advertising campaign targeting local travelers Attendance at ACI Jumpstart Conference (June), and Routes Conference (September) Meetings with Southwest, Martinair, SkyBus, US Airways, and USA 3000 Airport advertising campaign targeting local travelers Meetings with Northwest Airlines, Continental, Southwest, and jetblue Airport advertising campaign targeting local travelers Attendance at Networks Latin America Conference (November) Meetings with United, KLM, Condor, Ryanair, US Airways, and AirTran Airport advertising campaign targeting local travelers Attendance at Networks 2011 Conference (February), ACI Jumpstart Conference (June), and Routes Conference (September) Meetings with ArkeFly, Condor, KLM, and United Airport advertising campaign targeting local travelers The Sarasota Bradenton International Airport has one of the most aggressive air service development programs in the nation. This will be a key factor in the success of the service the grant will make possible. Docket DOT-OST Page 20

21 SCASD Grant Administration Plan Responsibility for SCASD Grant Funds Sarasota Manatee Airport Authority will administer SCASD grant funds as this application s legal sponsor. The Bradenton Area Convention and Visitors Bureau and the Sarasota Convention and Visitors Bureau will support the efforts of the Authority in the implementation of the marketing program outlined in this proposal. Summary of Plan for Use of SCASD Grant Funds Risk-Offset The main focus of the program is to provide a risk-offset to the target carrier to incubate initial start of service. Because of strong traffic potential, the risk-offset will be for one year only, and is based on a strictly-constructed agreement that will apply the local revenues, and the net system contribution of the new service, against the actual costs of operation. The agreement will mirror other similar and successful programs supported by SCASD grants. The airline will be required to operate a minimum of two daily round trip flights, with a reduced week-end schedule allowed. Fares must be commensurate with those at other airports in the region in this case, Tampa. Schedule reliability must be 98% for controllable events Month Spending Projection Revenue Guarantee Marketing Program Total Community $314,286 $85,714 $400,000 US DOT $785,714 $214,286 $1,000,000 TOTAL $1,100,000 $300,000 $1,400,000 The agreement will be for a one-year period. However, it is envisioned that triggers be contained in the agreement, allowing both the airline and the community to cease the operation before 12 months should traffic and revenues materially fail to reach reasonable levels. In addition to the above, the Airport has a substantial marketing and in-kind support program. This is outlined on Appendix C. Marketing Program The Airport has a plan to specifically focus marketing and community awareness efforts on the new service. It is noted that both of the target carriers will be new to the SRQ market, and therefore the Airport is planning the following efforts: Docket DOT-OST Page 21

22 Pre-Start-Up Activities There will be a focused public awareness campaign in the SRQ service area, starting 90 days prior to service start. These will include print and radio media to introduce the new airline to the public, outlining the ease of access to points west with the service. Within 30 days of service initiation, the Airport and Community plan to have an array of civic meetings and presentations to assure brand identity for the carrier and the service it will be offering. It is expected that the airline will actively participate functionally and financially in these efforts. Post Start-Up Activities The booking curve on the flights will be monitored in conjunction with the airline. Any perceived weaknesses in demand will be defined based on local traffic generation, and inbound-generated (visitor) traffic. Appropriate marketing dollars will be applied as necessary. Reliability and customer service will be critical. The Airport will monitor for feedback from consumers using the new service, and respond appropriately and vigorously with the carrier in the event that any systemic service failures occur. These would include delays, misconnects, baggage problems, and one-on-one interface between the airline staff and the consumer. Plan to Monitor Funds and Project Effectiveness Subsequent To Grant The Sarasota Bradenton International Airport will be responsible for monitoring the traffic and revenue performance of the new airline on a monthly basis focused on key metrics such as onboard passengers, frequency levels, overall capacity, load factors, average fares paid, etc. This data will be summarized in reports outlining grant progress and expenses to be filed with the Department. The Airport fully believes that its track record in incubating and developing AirTran subsequent to the earlier grant will continue with this application. The Airport monitors the traffic trends of all incumbents and has a rapid response to address any booking, traffic, or service weaknesses that arise. The new service made possible by this grant will be no different. Docket DOT-OST Page 22

23 APPENDIX C Page 1 SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET OST SUMMARY INFORMATION SARASOTA MANATEE AIRPORT AUTHORITY All applicants must submit this information with their proposal, along with a completed form SF424 on A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) X Not a Consortium Interstate Consortium Intrastate Consortium Community now receives EAS subsidy X Community (or Consortium member) previously received a Small Community Grant If previous recipient: Date of Grant: 9/24/2004 Expiration date of grant: 9/23/2006 B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) Public Private 1. _Sarasota County Government 1. 2._Manatee County Government C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) X Marketing Upgrade Aircraft New Route Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee X Launch New Carrier Start Up Cost Offset First Service Study X Secure Additional Carrier Other (explain below)

24 APPENDIX C Page 2 D. EXISTING LANDING AIDS AT LOCAL AIRPORT: X Full ILS X Outer/Middle Marker X Published Instrument Approach X Localizer Other (specify) E. PROJECT COSTS: DO NOT ENTER TEXT IN SHADED AREA LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT 1 Federal amount requested $ 800,000 2 State cash financial contribution Local cash financial contribution 3a Airport cash funds $ 200,000 3b Non-airport cash funds $ 400,000 3 Total local cash funds (3a +3b) $ 600,000 4 TOTAL CASH FUNDING (1+2+3) $ 1,400,000 In-Kind contribution 5a Airport In-Kind contribution** $ 233,000 5b Other In-Kind contribution** 5 TOTAL IN-KIND CONTRIBUTION (5a + 5b) $ 233,000 6 TOTAL PROJECT COST (4+8) $ 1,633,000 F. IN-KIND CONTRIBUTIONS** For funds in lines 5a (Airport In-Kind contribution) and 7b (Other In-Kind contribution), please describe the source(s) of fund(s) for each. 3a) SRQ Airport offers marketing funds too all airlines for new service. Airport would provide $200,000 for twice daily CRJ-700 service. 5a) SRQ Airport offers $5.00 per enplaned passenger airport fee abatement for one year for all new service. Estimated value will be $183,000 for twice daily CRJ-700 service with projected 73,375 passengers enplaned deplaned. 5a) SRQ owns two backlit billboards on airport property. SRQ will provide the billboards to promote the service. Estimated In-Kind value at $50,000.

25 APPENDIX C Page 3 G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER PROCESS? a. This application was made available to the State under the Executive Order Process for review on (date). b. Program is subject to E.O , but has not been selected by the State for review. X c. Program is not covered by E.O H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF YES, PROVIDE EXPLANATION) X No Yes (explain)