Proposal Under the Small Community Air Service Development Program
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1 Proposal Under the Small Community Air Service Development Program Date: August 27, 2010 Applicants: DUNS Number: Number: 7531 Congressional Districts: 10, 11 Wilkes-Barre/Scranton International Airport Luzerne County, PA; Lackawanna County, PA Contact: Docket #: Barry J. Centini Wilkes-Barre/Scranton International Airport 100 Terminal Drive, Suite 1 Avoca, PA Phone: (570) airport@flyavp.com DOT-OST
2 I. EXECUTIVE SUMMARY The Wilkes-Barre/Scranton International Airport and the Counties of Luzerne and Lackawanna are submitting this application for grant funds available under the Small Community Air Service Development Program to address the deficiencies in the Airport s air service, including high fares and an insufficient level of service. These deficiencies are the result of the unique characteristics of the air transportation system in the Greater Northeastern Pennsylvania region. Air travelers using the Wilkes-Barre/Scranton International Airport (AVP) pay among the highest fares of any similar sized airport in the country. AVP has aggressively recruited both legacy and low cost airlines to enter its market for many years, but few carriers are willing to enter even AVP s top O&D markets. This is in part because there are multiple airports served by low cost carriers, as well as legacy carriers with more flights, which surround the Wilkes- Barre/Scranton International Airport. As a result, AVP s fares are not only high, but they are not competitive with the other airports. The lower fares and increased number of flights at the surrounding airports are sufficient to lure passengers from Wilkes-Barre/Scranton International Airport to airports more than 100 miles away, but these airports are not close enough to genuinely offer convenient service. Successful attraction of a low cost air carrier to AVP s key markets has a track record of improving the cost differential in some AVP markets. However, successfully retaining those low cost carriers long-term has proven difficult. Maintaining legacy air carrier service to other AVP key markets has improved cost differentials in those markets. However, the number of seats on the legacy carriers has been steadily decreasing, which is forcing Northeastern Pennsylvania travelers to travel to another airport for their travel needs. Our described program is designed to address these concerns. With this in mind, the Airport continues to provide exceptional service to its community, while having no control or responsibility over the main variable in air travel the customer. Currently, AVP has five legacy carriers, and three of those are handled by one airline. While airlines have in the past been more prone to provide their own employees for ground handling and customer support positions, the last few years have put that in jeopardy as airlines consolidate their employees at smaller airports. For several years, the U.S. airline industry has been struggling to control costs. Controllable costs have been dropping over the last half-decade, with carriers using methods, such as reducing airline employee wages and the actual Page 2 of 28
3 outsourcing of on-airport jobs. Many carriers are opting not to start additional markets without the Airport and community picking up the charges for those start-up costs. Also, many carriers that have service at airports are decreasing their flights dramatically to control costs. The current trend is a continued increase in the AVP passenger market leaking to alternative airports and a serious imbalance in Pennsylvania s airport system. With no air carriers operating in some of AVP s top O&D markets, there is a significant gap between the demand for service and the level of service being provided. Past experience in these markets has proven they can be operated successfully and profitably, however, current carriers at AVP have chosen not to seek operating to those markets from AVP. The results of past efforts utilizing Air Service Development funds have been positive. Delta Connection s (formerly Northwest Airlink s) nonstop Detroit service, which began in April 2005, continues to provide a good destination to business travelers, with acceptable fares. Wilkes-Barre/Scranton International Airport and its supporting communities have continually been engaged in marketing the airport and look forward to improving the air service at AVP with the additional support of the DOT Small Community Air Service Development Program. II. SERVICE DESCRIPTIONS A. Wilkes-Barre/Scranton International Airport s Service Area Wilkes-Barre/Scranton International Airport (AVP) is a non-hub airport located in Northeastern Pennsylvania serving a surrounding population of approximately one million residents. AVP is within a two-hour drive of several major east coast cities including Philadelphia and New York, is approximately eight (8) miles from Wilkes-Barre, PA and Scranton, PA, and is centrally located among four (4) major interstate highways. Page 3 of 28
4 (Source Google Maps) The Wilkes-Barre/Scranton/Hazleton metro-area has a population of over 600,000. There are over one million potential air passengers within a one-hour drive time and just fewer than three million located within a 90- minute drive time. Within a One-Hour Drive Time is a Market of Over 1 Million Potential Air Passengers (Source SH&E Analysis, US Census, Maptitude) Wilkes-Barre/Scranton s airport service is bound by Philadelphia International Airport and Lehigh Valley International Airport to the south, each offering substantially greater numbers of scheduled flights and often significantly lower fares. These two airports are approximately a 100- and 60-mile drive, respectively, from the Wilkes-Barre/Scranton Page 4 of 28
5 International Airport. One factor of great concern to the Partnership submitting this application is that Southwest Airlines offers competing service at Philadelphia International Airport and is offering significantly lower fares to many of AVP s top markets. An additional factor is that both AirTran and Allegiant Air provide low fare options to leisure destinations at Lehigh Valley International Airport. AirTran is also providing nonstop Atlanta service from Lehigh Valley International Airport. To the east, John F. Kennedy International Airport, Newark Liberty International Airport, LaGuardia Airport and Stewart International Airport also compete with AVP, offering travelers numerous low fare options. As large hubs, John F. Kennedy International, Newark Liberty International and LaGuardia offer substantially more scheduled flights and direct service options both domestically and internationally. B. Description of Community s Existing Air Service There are currently five (5) major airline networks serving the Wilkes- Barre/Scranton International Airport. These carriers are US Airways, Continental, Delta, United and American. Combined, these carriers serve a total of five (5) major hubs including Charlotte, Chicago, Detroit, Newark and Philadelphia. The table below indicates the type of aircraft flown by each carrier, equipment type, seats and frequency at AVP. It is important to note that all service to and from AVP is flown with either a regional jet or turboprop, yet O&D research and previous experience indicate that many AVP markets can support significantly larger aircraft such as Boeing 737 or the new Embraer 170/190 series. Carrier Market Code A/C Stops Daily Daily Monthly Monthly Seats/ Type Depts Seats Depts Seats Flight AA Chicago ORD ER AA Chicago ORD ERD CO Newark CLE DH DL Detroit DTW CRJ UA Chicago ORD ER US Charlotte CLT CR US Philadelphia PHL CRJ US Philadelphia PHL DH US Philadelphia PHL DH TOTALS Source: OAG Schedule Tapes, August 2010, via Sabre Airline Solutions Page 5 of 28
6 The chart below shows the cities serviced by AVP s current airlines from AVP. Source: OAG Schedule Tapes August 2010 AVP Primary Catchment Area Usage, Retention & Total Booked Rank Market PDEW AVP Retention AVP Primary Leakage Total Booked 1 MCO % LAS % ORD % TPA % ATL % PHX % PHL % LAX % FLL % DFW % RSW % CLT % DEN % CVG % PBI % BNA % DTW % STL % MSP % SAN % JAX % SEA % MCI % SFO % IND % IAH % MIA % CUN % RDU % SAT % Subtotal % ,092.5 Other % Total % 1, ,812.5 Source: Adjusted SABRE MIDT and D.O.T. 10% Coupon Sample for YE April 2010 Page 6 of 28
7 For 2009, Wilkes-Barre/Scranton International Airport reported 413,001 combined enplaned & deplaned passengers. However, the true Primary Catchment Area size is estimated to be triple that number (see table above), which indicates that AVP is leaking passengers to surrounding airports, with the primary reasons, based on market research, being competition from low-fare markets, frequency and available seats. US Airways has traditionally dominated the AVP market. Delta Connection has recently cut flights, which increases opportunities for other airlines. In 2009, Delta Connection has eliminated Cincinnati service (January 2009), which was AVP s #9 O&D Market for CY 2008, and has eliminated Atlanta (August 2009), which was AVP s #5 O&D Market for CY New service in the past several years include: United Express to Washington Dulles in October 2004; Continental Connection to Boston in March 2005; Hooters Air to Orlando, Fort Lauderdale, St. Petersburg in October 2005; Myrtle Beach Direct Air to Myrtle Beach in June 2008; Continental Connection to Newark in October 2008; and American Eagle to Chicago O Hare in June Source: OAG Schedule Tapes August 2010; Wilkes-Barre/Scranton International Airport, YE 2Q 2010 Page 7 of 28
8 AVP New Service During the Past Several Years New Service Airline Began Ended Reason for Ending (1) Washington-Dulles, DC United Express October 2004 August 2005 Shuttle America became US Airways carrier United did not have other aircraft to maintain route Detroit, MI Northwest Airlink April 2005 N/A Orlando, FL Hooters Air October 2005 March 2006 Rising Fuel Costs Fort Lauderdale, FL Hooters Air October 2005 March 2006 Rising Fuel Costs St. Petersburg, FL Hooters Air October 2005 March 2006 Rising Fuel Costs Myrtle Beach, SC Hooters Air March 2006 March 2006 Rising Fuel Costs Boston, MA Continental Connection March 2005 March 2007 Reduction of Continental Connection flights into BOS system wide Pittsburgh, PA US Airways Pre-1980 June 2007 Reduction of US Hub Myrtle Beach, SC Myrtle Beach Direct Air June 2008 August 2008 Seasonal service Cleveland, OH Continental Connection October 2008 Moving AVP s service from #3 CO Hub to #1 CO Hub Newark, NJ Continental Connection October 2008 N/A Cincinnati, OH Delta Connection March 1995 January 2009 Reduction of DL Hub Atlanta, GA Delta Connection May 2002 August 2009 Poor load factors; AVP-ATL route over 700 NM (too far for CRJ) Chicago, IL (O Hare) American Eagle June 2010 N/A (1) Reasons for Ending comments were given by Airline Representatives to AVP AVP Outbound Seats History Annual Percent Outbound Change vs. Year Seats Prior Year , , % , % , % , % , % , % , % , % Seats Month ('10 vs. '09) Diff (+/-) % Change January % February -3, % March -2, % April -1, % May -2, % June % Total for Period -9, % Source: Wilkes-Barre/Scranton International Airport Page 8 of 28
9 Losses in the past several years include: United Express to Washington Dulles in August 2005; Hooters Air to Orlando, Fort Lauderdale, St. Petersburg and Myrtle Beach in March 2006; Continental Connection to Boston in March 2007; US Airways to Pittsburgh in June 2007; Myrtle Beach Direct Air to Myrtle Beach in August 2008; Continental Connection to Cleveland in October 2008; Delta Connection to Cincinnati in January 2009; and Delta Connection to Atlanta in August With these losses, as well as the significant reduction in available seats (shown above), it is anticipated that the decrease in passenger enplanements (shown below), as well an increase in load factors, will continue to drop throughout the remainder of 2010, even with the addition of American Eagle in June AVP Enplanement History Percent Annual Change vs. Year Enplanements Prior Year , , % , % , % , % , % , % , % , % Enplanements Month ('10 vs. '09) Diff (+/-) % Change January % February -2, % March % April % May % June % Total for Period -4, % Source: Wilkes-Barre/Scranton International Airport Page 9 of 28
10 To the south of AVP, Lehigh Valley International Airport has been increasing seats, which we feel is a detriment to AVP. Within the past year at ABE: AirTran has added new service to Orlando, Atlanta and Fort Lauderdale (beginning November 4, 2010) with 117-seat Boeing 717 aircraft Allegiant Air has added new service to Myrtle Beach, and moved its Florida service from Sanford to Orlando with 150-seat MD-80 aircraft American Eagle added new service to Chicago O Hare with three daily flights using 50-seat aircraft Direct Air added new service to Myrtle Beach and Punta Gorda with 150-seat Boeing 737 aircraft Delta has increased seat capacity to Atlanta from one daily 50-seat aircraft to one 142-seat MD-88 aircraft Delta has increased service to Detroit from three to four daily flights using 50-seat aircraft United has increased service to Chicago O Hare from three to four daily flights using 50- and 66-seat aircraft C. Analysis of Greater Northeastern Pennsylvania Needs and Deficiencies Over the past several years, AVP experienced a severe reduction in jet service to Philadelphia and Pittsburgh, which included a reduction in the number of seats available. Additionally, the region does not currently have competitive year round low fare service to its number one O&D market: Orlando. Service to Orlando performed well when it was introduced in 2004, with the positive trend continuing in 2005 and 2006, until Hooters Air discontinued all air service due to multiple factors, including internal scheduling problems, rising fuel costs, airline scheduling problems and problems with their service model. Atlanta, another AVP top O&D market, continued to perform well since returning to AVP in 2002, but ended in August Delta s primary reason for discontinuing the flight is that the stage length was too long for a regional jet. As seen below, AVP is ranked as #6 by Delta s Load Factors at ATL. Page 10 of 28
11 Delta Ranking by Load Factor at ATL Source: U.S. D.O.T. Report T-100 YE Dec All airlines (with the exception of American), including Continental, Delta, United and US Airways, remain at constant capacity, with no future growth on the horizon. US Airways has had no growth to Charlotte since they began with one daily flight in April 2005, with the exception of an occasional short-term period extra Saturday only flight. Delta has had no growth to Detroit since they began with three daily flights in April In October 2005, the Detroit flights decreased to twice daily because of problems with Mesaba Airlines. The third daily flight was reinstated in February 2009 after Delta discontinued all service from AVP to Cincinnati. United has had no growth to Chicago since they began with three daily flights in October In May 2003, the Chicago flights decreased to twice daily, and United has been satisfied with the performance to date with no additional increase in service. As seen below, AVP is ranked as #11 to Charlotte, #19 to Detroit and #23 to Chicago O Hare. Page 11 of 28
12 US Airways Ranking by Load Factor at CLT Source: U.S. D.O.T. Report T-100 YE Dec Delta Ranking by Load Factor at DTW Source: U.S. D.O.T. Report T-100 YE Dec Page 12 of 28
13 United Ranking by Load Factor at ORD Source: U.S. D.O.T. Report T-100 YE Dec Although there has been no growth at AVP to these four destinations listed above, airports near AVP, i.e. Lehigh Valley International, have been gaining seats, even though there load factors are lower than AVP s. From the charts listed above: For ATL, AVP is ranked #6; ABE is ranked #72 For CLT, AVP is ranked #11; ABE is ranked #50 For DTW, AVP is ranked #19; ABE is ranked #72 For ORD, AVP is ranked #23; ABE is ranked #69 As seen below, here are the latest load factors from AVP to specific destinations, most destinations have load factors at 87% or higher. Sources: U.S. D.O.T. T-100 Reports and Wilkes-Barre/Scranton International Airport Page 13 of 28
14 Another challenge for AVP is the fact that competing airports are marketing their low-fare service to travelers in the AVP market area, through television, newspaper, radio and billboard (as seen below). The billboard below was actually placed less than ½ mile from the entrance to AVP. In light of these circumstances, AVP continues to actively pursue competitive low-fare service, as well as maintaining or even increasing legacy air service, to its top markets. AVP s air fares remain extraordinarily high for the level of service offered and the economic demographic of the area as evidenced in the table below. As shown on the chart below, AVP s fares remain above average and significantly higher than select markets with similar sized O&D passengers. Page 14 of 28
15 AVP vs. Selected U.S. Cities - O&D Passengers & Avg. Fare Total Daily Avg. O&D Daily O&D Rank Market Code State Enp. Psgrs Enp. Psgrs Fare Psgrs Psgrs 1 Rochester RST MN 151, $ , Appleton ATW WI 263, $ ,567 1,432 3 Chattanooga CHA TN 265, $ ,285 1,436 4 Asheville AVL NC 294, $ ,663 1,596 5 Wilkes-Barre/Scranton AVP PA 173, $ , Rapid City RAP SD 284, $ ,187 1,562 7 Wilmington ILM NC 283, $ ,334 1,563 8 Durango DRO CO 148, $ , South Bend SBN IN 296, $ ,771 1, Grand Junction GJT CO 207, $ ,402 1, Peoria PIA IL 231, $ ,012 1, Wausau CWA WI 161, $ , Erie ERI PA 116, $ , Medford MFR OR 279, $ ,285 1, Redmond RDM OR 222, $ ,989 1, Daytona Beach DAB FL 203, $ ,235 1, Allentown ABE PA 358, $ ,499 1, Newburgh SWF NY 186, $ ,271 1, Bloomington-Normal BMI IL 253, $ ,198 1, Aguadilla BQN Other 242, $ ,025 1, Nantucket ACK MA 141, $ , Atlantic City ACY NJ 536,335 1,469 $ 93 1,070,089 2,932 Average 241, $ ,010 1,318 (Source: U.S. D.O.T. O&D Survey YE 2Q2010, via Sabre Airline Solutions, OAG Schedule Tapes III. STRATEGIC PLAN FOR USING GRANT FUNDING A. Program Goals The primary goals of this grant proposal are to increase enplanements at AVP by attracting new service and expanding current service, to address insufficient air service by attracting replacement service for such services recently lost, and to address unreasonably high fares to AVP s prime markets by increasing competition between existing air carriers and new air carriers. Currently, the AVP markets are underserved and it is apparent that travelers in the region are choosing to use alternative airports offering more scheduled service to a broader range of destinations with lower fare service. Historically, the Northeastern Pennsylvania market has supported new service as it enters the region and it is anticipated by all Partners in this program that this trend will continue with a high level of success. Specifically, the four program goals are as follows: Page 15 of 28
16 1. Restore daily service to: a. Hartsfield-Jackson Atlanta International Airport b. Washington-Dulles International Airport c. Pittsburgh International Airport 2. Secure daily service to Lester B. Pearson International Airport in Toronto, Canada. 3. Secure service to leisure destinations, i.e. but not limited to, Central Florida Region (Orlando/Tampa/St. Petersburg), Fort Lauderdale, West Palm Beach, Punta Gorda, Las Vegas, and/or Myrtle Beach. 4. Entice existing air carriers at AVP to expand their service with additional flights/markets. From the successful implementation of these program goals, AVP anticipates a direct affect of reduced fares in key markets and a significantly increased level of service. B. Target Audiences The following is a list of target audiences for AVP: Low-fare carriers 1. AirTran Airways 2. Allegiant Air 3. Direct Air 4. Southwest Airlines 5. Vision Airlines 6. X Air Legacy carriers 1. Air Canada 2. American Airlines 3. Continental Airlines 4. Delta Air Lines 5. United Air Lines 6. US Airways Regional carriers 1. Cape Air 2. Colgan Air 3. Gulfstream International Airlines Page 16 of 28
17 C. Plan Implementation and Timetable Key milestones for the Program will be: Securing meetings with carriers to negotiate new service (October 2010 March 2011). Announcing new service with local community marketing campaign (January 2011 June 2011). Starting up new service (January 2011 October 2011). Monitoring and analyzing monthly traffic numbers of new service (January 2011 June 2012). Monitoring and analyzing fares to the target markets (January 2011 June 2012). IV. AIRPORT AND BI-COUNTY PARTNERSHIP FUNDING AND MONITORING ASSURANCES The Wilkes-Barre/Scranton International Airport will act as the sponsor of the program. The sponsorship will be managed by Barry J. Centini, Airport Director, and the program will be managed by an airport administration and bicounty partnership representing the counties of Luzerne and Lackawanna. The partnership will meet on a regularly scheduled monthly basis to review the progress and schedule of the program and more often when the program requires it. At each meeting, goals, objectives, and milestones will be evaluated to measure progress. Additionally designated members of the Partnership will be assigned to evaluate any changes in the current market environment and to identify any potential obstacles. The Partnership will prepare and submit quarterly reports to provide assurances that both the DOT and community funding are being spent in the manner proposed. At the time that new service is secured and the funding is successfully allocated, the quarterly reports will provide the DOT updates on the success of the service. Page 17 of 28
18 V. FUNDING DESCRIPTION A. An airline to restore daily Atlanta service, minimum one (1) daily flight. Risk abatement subsidy for daily service for a minimum of six (6) months. FAA: $ 200,000 Luzerne County: $ 25,000 Lackawanna County: $ 25,000 Total: $ 250,000 B. An airline or airlines to provide nonstop Washington (DC), Pittsburgh and/or Toronto service, minimum two (2) flights per weekday per destination. Risk abatement subsidy for daily service for a minimum of six (6) months. FAA: $ 50,000 Luzerne County: $ 10,000 Lackawanna County: $ 10,000 Total: $ 70,000 C. An airline or airlines to provide service to one or more nonstop leisure destinations, i.e. but not limited to, Central Florida region, Fort Lauderdale, West Palm Beach, Punta Gorda, Las Vegas and/or Myrtle Beach, minimum two (2) flights per week per destination. Start-up costs for provided service. FAA: $ 125,000 Luzerne County: $ 40,000 Lackawanna County: $ 40,000 Airport: $ 50,000 Total: $ 255,000 D. Local Market Advertising to provide needed baseline support for new and/or restored airline service with a new or present airline, as well as support of additional flights with present airline service. FAA: $ 200,000 Luzerne County: $ 25,000 Lackawanna County: $ 25,000 Airport: $ 50,000 Total: $ 300,000 Page 18 of 28
19 E. TOTALS: FAA: $ 575,000 Luzerne County: $ 100,000 Lackawanna County: $ 100,000 Airport: $ 100,000 Total: $ 875,000 VI. COMMUNITY ACTIVITIES The Airport and supporting community organizations have been aggressively and actively marketing the airport for several years. This effort has included many initiatives all undertaken to ensure that the Northeastern Pennsylvania community is served in the best possible way. Specific activities have included: * Direct subsidy to carriers * Targeted carrier meetings * New service cost reduction incentives including: - Advertising and marketing assistance for, but not limited to, television, radio, and newspaper coverage - Waiving of landing fees and space rentals for a negotiated period - Donate local billboard advertising space and county bus system promotion - Develop and direct a new service information mailing initiative to local travel agents and community businesses * New service kick-off and promotional meetings with local travel agents * New service local community marketing support initiatives * Annual attendance and participation at ACI s annual Marketing JumpStart conference VII. RESULTS OF PAST AIR SERVICE DEVELOPMENT EFFORTS The results of past efforts utilizing Air Service Development funds are positive. Service continues to Detroit, MI, via Delta Airlines express carrier Pinnacle Airlines with load factors averaging 80% during 2008, and averaging 88% during 2009, and averaging approximately 89.2% for the first seven months of Detroit service began at AVP in April Service to Orlando, FL, did better than expected despite Hooters Air s end of service in March 2006 due to Page 19 of 28
20 its own internal financial issues, with load factors averaging in the 83% to 86% range by the end of their tenure at AVP. The Detroit service continues to provide a good destination to business travelers, with acceptable fares. The Orlando service provided a great level of service for business and leisure travelers, with a very competitive fare structure. With our past history and experience of being able to utilize funds for positive gains, we are confident that an award to Wilkes-Barre/Scranton International Airport will bring positive results. VIII. PROGRAM SPONSORS Program Legal Sponsor: Program Partners: Barry J. Centini, Airport Director Luzerne County, PA Wilkes-Barre/Scranton Lackawanna County, PA International Airport Greater Pittston Chamber of Commerce 100 Terminal Drive Greater Scranton Chamber of Commerce Avoca, PA Greater Wilkes-Barre Chamber of Commerce 570/ Phone Lackawanna Co. Convention & Visitors Bureau 570/ Fax Luzerne Co. Convention & Visitors Bureau bcentini@flyavp.com Pocono Mountains Visitors Bureau Attachments: 1) Attachment 1 Gulfstream International Airlines Letter of Support 2) Attachment 2 US Airways Letter of Support 3) Attachment 3 X Air Letter of Support 4) Attachment 4 Cape Air Letter of Support 5) Attachment 5 Delta Air Lines Letter of Support 6) Attachment 6 Direct Air Letter of Support 7) Attachment 7 Program Partners In-Kind Contributions Page 20 of 28
21 ATTACHMENT 1 Page 1 Order: Docket DOT-OST The Honorable Raymond LaHood Date: August 23, 2010 Secretary of Transportation U.S. Department of Transportation 1200 New Jersey Ave., SW Washington, DC Dear Mr. LaHood, I am writing today in support of Wilkes-Barre/Scranton International Airport and their application for a Small Community Air Service Development Grant. As you may be aware, the dissolution of the former US Airways hub in Pittsburgh has left a huge hole in terms of regional air service in western Pennsylvania. More than thirty cities within 350 miles of Pittsburgh that former enjoyed non-stop service remain without that link. Besides being the second largest city in Pennsylvania, Pittsburgh is a true regional business center and while the Greater Pittsburgh International Airport has done a tremendous job of restructuring itself as a true Origin/Destination traffic generator, it is noteworthy that the only other Pennsylvania city being served by air from Pittsburgh is Philadelphia. Despite being the anchor of western Pennsylvania business, cities such as Latrobe, Erie, Wilkes-Barre/Scranton, Williamsport, Allentown, and even the State Capital in Harrisburg remain without a direct air link. Pennsylvania is the sixth largest state in the union in terms of population and this lack of regional access is problematic and economically restrictive. Gulfstream International Airlines continues to work diligently to restore service from the Greater Pittsburgh International Airport to airports throughout the region and would welcome the possibility of adding Wilkes-Barre/ Scranton as a destination. Conceived in cooperation with the Greater Pittsburgh International Airport, the Pittsburgh Connector, has the intent of restoring service in several regional markets, focusing on Pittsburgh International Airport as its hub. We remain very interested in serving the Wilkes-Barre/Scranton Pittsburgh market and restoring that community s link to the business center of western Pennsylvania. As with any new venture, the start-up costs constitute a good deal of our forecast outlay. We fully endorse Wilkes- Barre/Scranton s effort to secure a SCASD Grant to aid in launching and marketing this venture. We are confident that the restoration of this vital air link will benefit economic development in Pennsylvania. These funds will assure a means to grow and promote this new travel option and allow Gulfstream International to focus on providing seamless connectivity and operational reliability to assure this new service succeeds and the people of Pennsylvania benefit. Very truly yours, Mickey Bowman Vice President of Corporate Development Gulfstream International Airlines 3201 Griffin Road Ft. Lauderdale, FL Griffin Road, 4th Floor Fort Lauderdale FL (954) fax (954) cell (270) mbowma@gulfstreamair.com Page 21 of 28
22 ATTACHMENT 2 Page 1 Order: Docket DOT-OST Page 22 of 28
23 ATTACHMENT 3 Page 1 Order: Docket DOT-OST Page 23 of 28
24 ATTACHMENT 4 Page 1 Order: Docket DOT-OST Page 24 of 28
25 ATTACHMENT 5 Page 1 Order: Docket DOT-OST Page 25 of 28
26 ATTACHMENT 6 Page 1 Order: Docket DOT-OST Page 26 of 28
27 ATTACHMENT 7 Page 1 Order: Docket DOT-OST In-Kind Contributions Wilkes-Barre/Scranton International Airport Small Community Air Service Grant Luzerne County Convention and Visitors Bureau In-Kind Item Amount Staff Fulfillment $2, Mailing and Distribution of Visitor Guide $ Attendance at Trade Shows $2, Ad Placement - Annual Visitors Guide $2, Ad Placement - Pennsylvania Pursuits Magazine $1, Total In-Kind: $8, Lackawanna County Convention and Visitors Bureau In-Kind Item Amount Staff Fulfillment $3, Mailing and Distribution of Visitor Guide $1, Attendance at Trade Shows $2, Half Page Ad Placement - This Week in The Poconos $1, Total In-Kind: $8, Pocono Mountains Visitors Bureau In-Kind Item Amount Staff Fulfillment $2, Mailing and Distribution of Visitor Guide $1, Attendance at Trade Shows $1, Ad Placement on 800poconos.com $2, Total In-Kind: $7, Greater Pittston Chamber of Commerce In-Kind Item Amount Insert in Monthly Newsletter for 12 months $3, Total In-Kind: $3, Page 27 of 28
28 ATTACHMENT 7 Page 2 Greater Wilkes-Barre Chamber of Commerce In-Kind Item Amount Full Page Ad Placement - Annual Dinner Program $ Full Page Ad Placement - Legislative Breakfast $ Full Page Ad Placement - Awards Luncheon Program $ Staff Fulfillment $2, Total In-Kind: $3, Greater Scranton Chamber of Commerce In-Kind Item Amount Ad Placement in News Briefs Newsletter $2, Web Site Exposure Total In-Kind: $2, Page 28 of 28
29 APPENDIX B Page 1 Order: Docket DOT-OST SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST SUMMARY INFORMATION All applicants must submit this information with their proposal, along with a completed form SF424 on A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) Not a Consortium Interstate Consortium Intrastate Consortium Community now receives EAS subsidy Community (or Consortium member) previously received a Small Community Grant If previous recipient: Date of grant: 09/15/2004 Expiration date of grant: 08/17/2006 B. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) Public Private 1. Wilkes-Barre/Scranton International Airport 1. Greater Pittston Chamber of Commerce 2. Luzerne County 2. Greater Scranton Chamber of Commerce 3. Lackawanna County 3. Greater Wilkes-Barre Chamber of Comm Lackawanna Co. Conv. & Visitors Bur Luzerne Co. Conv. & Visitors Bureau 6. Pocono Mountains Vacation Bureau C. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) Marketing Upgrade Aircraft New Route Personnel Increase Frequency Low Fare Service Travel Bank Service Restoration Subsidy
30 Surface Transportation Regional Service Other (specify) Revenue Guarantee Launch New Carrier Start Up Cost Offset First Service Study Secure Additional Carrier APPENDIX B Page 2 D. EXISTING LANDING AIDS AT LOCAL AIRPORT: Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other (specify) E. PROJECT COST: 1. Federal amount requested: $ 575, State cash financial contribution: $ 0 3. Local cash financial contribution $ 300,000 3a. Airport cash funds: $ 100,000 3b. Non-airport cash funds: $ 200,000 3c. Total local cash funds (3a. + 3b.): $ 300, TOTAL CASH FUNDING ( c.): $ 875, Local funds contributed from already-existing programs or projects included in line 3c. amount: $ 0 6. Local funds contributed from new commitments or new resources included in line 3c. amount: $ 0 7. Airport In-Kind contribution: $ 280,000 (est.) (amount & description) min. 6 month waiver of landing fees/sp.rent., billboard usage, direct mail campaigns 8. Other In-Kind contribution: $ 33,400 (amount & description) (See Attachment 7) Ad placements, trade show exposure, staff fulfillments, mailings, web site exposure/ads, newsletter inserts 9. TOTAL IN-KIND CONTRIBUTION ( ): $ 313,400 (est.) 10. TOTAL PROJECT COST ( ): $1,188,400 (est.)
31 F. ENPLANEMENTS: , , , , , , , , , ,193 APPENDIX B 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. c. Program is not covered by E.O H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF YES, PROVIDE EXPLANATION) No Yes (explain)
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