Proposal under the Small Community Air Service Development Program For. Casper/Natrona County International Airport

Transcription

1 Proposal under the Small Community Air Service Development Program For Casper/Natrona County International Airport Docket DOT-OST Sponsor: Casper/Natrona County International Airport DUNS Number: Congressional District Code: WY 01 Contact: Mr. Glenn Januska Airport Manager Casper/Natrona County International Airport 8600 Airport Parkway Casper, WY Due Date: June 11, 2012

2 APPENDIX C SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET OST SUMMARY INFORMATION All applicants must submit this information with their proposal, along with a completed form SF- 424 on A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) X X Not a Consortium Interstate Consortium Intrastate Consortium Community now receives EAS subsidy Community previously received a Small Community Grant in 2002 in conjunction with Gillette, Wyoming If previous recipient: Date of Grant: September 2002 Expiration date of grant: 2005 Federal Funds Requested: $500,000 to help lease an aircraft for Big Sky Airlines to provide service between Casper and Gillette to Billings. B. PUBLIC/PRIVATE PARTNERSHIP Public: Private: 1. Casper/Natrona County Int l Airport 1. Casper Area CVB 2. Natrona County 2. Casper Area Chamber of Commerce 3. City of Casper 3. Casper Star Tribune/Casper Journal 4. State of Wyoming 4. Casper Area Economic Development Alliance 5. Town of Edgerton 5. Allegiant Airlines 6. Town of Mills 6. United Airlines 7. Town of Bar Nunn 7. SkyWest Airlines 8. Town of Evansville 8. World Wide Travel C. PROJECT PROPOSAL (Check All That Apply) X Marketing Upgrade Aircraft X New Route Travel Bank X Service Restoration Subsidy Surface Transport X Regional Service _ Revenue Guarantee _ Launch New Carrier Start Up Cost Offset First Service X Study Secure Additional Carrier Other 1

3 D. EXISTING LANDING AIDS AT LOCAL AIRPORT: X Full ILS X Outer/Middle Marker X Published Instrument Approach X Localizer Other (Specify) E. PROJECT COST: Line Description Sub Total Total Amount 1. Federal Amount Requested: $100, State cash financial contribution $15,000 Local Cash Financial Contribution: 3a. Airport cash funds: $15,000 3b. Non-Airport cash funds: $10, Total local cash funds: $25, TOTAL CASH FUNDING $140,000 In-Kind Contribution 5a. Airport In-Kind contribution* $13,740 5b. Other In-Kind contribution** $16, TOTAL IN-KIND CONTRIBUTION _$30, TOTAL PROJECT COST $170,000 F. IN-KIND CONTRIBUTIONS** For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution) describe the source of funds for each. Airport In-Kind - $6,240 for airport per turn ground handling equipment fees waived during first year and $7,500 for barter advertising. Other In-Kind - $6,240 for barter advertising by Chamber of Commerce; $2,500 by the Casper Area Economic Development Alliance; and $7,520 by local TV, Radio, and Newspapers. G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER PROCESS? Program is not covered by E.O H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? No

4 TABLE OF CONTENTS Subject Page Summary of Proposal 1 New Grant Proposal 1 Previous Grant 2 Our Community Team 2 Our Airport 2 Our Plan is Consistent 2 Air Service Background 3 The Casper/Natrona County International Airport (CPR) 3 Air Service History 3 Current Air Service 5 Casper Community Profile 5 Economic Indicators 7 Passenger Market 7 Local Market Demand 7 Passenger Leakage 8 Passenger Forecast 9 Action Plan 9 Action Plan Elements 9 Marketing Program 10 Market Research 10 Media Selection 10 Total Incentive Package 12 Performance Measurement and Schedule 12 Performance Measurement 12 Schedule 12 Community Support 13 Assurances 15 Support for Air Service Development Zone Designation 16 Letters of Support Letter from Allegiant Travel Company 17 Letter from Senator Barrasso and Senator Enzi 18 Letter from Congresswoman Cynthia Lummis 19 Letter from Governor Matt Mead 20 Letter from WYDOT Aeronautics Division 22 Letter from Natrona County Commission Chairman 23 Letter from City of Casper 24 Letter from Town of Edgerton 25 Letter from Town of Midwest 26 Letter from the Casper Area Economic Development Alliance 27 Letter from the Casper Area Chamber of Commerce 28 Letter from Wyoming Office of Tourism 30 Letter from Casper Area Convention and Visitors Bureau 31 Letter from Atlantic Aviation 32

5 Summary of Proposal New Grant Proposal PROPOSAL OF CASPER/NATRONA COUNTY INTERNATIONAL AIRPORT Casper/Natrona County International Airport is seeking a grant under the Small Community Air Service Development Program to help fund a comprehensive marketing and advertising program to: (1) expand service in the Casper-Las Vegas market, (2) support new regional jet service in the Casper-Salt Lake City market, (3) support additional regional jet service in the Casper-Denver market; and (4) add service in the Casper-Phoenix market. Allegiant Airlines currently provides air service between Casper and Las Vegas for nine months of the year and will operate flights in the three month suspension period if the passenger demand can be increased to support the additional flights. The Delta Connection is upgrading its flights between Casper and Salt Lake City from 30 EMB-120 aircraft to 50 seat CRJ-200 aircraft. This is a 67% increase in seats and additional marketing and advertising needs to be undertaken to support this new service to generate passengers to fill the additional seats. United Express is adding a fifth daily flight to Denver with a 50 seat CRJ-200 aircraft, a 25% increase in seats. Again, additional marketing and advertising is needed to help generate more passengers for this new flight. A marketing and advertising campaign has been developed for the support of current air service and is presented in this proposal. Members of the Airport Board of Trustees and Airport Management at Casper have had discussions with Allegiant Airlines regarding implementation of new seasonal service between Casper and Phoenix/Mesa Airport and have received a letter from Allegiant supporting our efforts to receive a grant to support their service. Allegiant Airlines does not require a revenue guarantee but does require a strong local marketing and advertising program. A marketing and advertising campaign will be developed for the support of this new air service. The funding from the grant and the local funding will be directed into three projects: (1) Development of a Marketing Plan; (2) Advertising and public relations program to support the Allegiant Airlines current air service to Las Vegas, the new Delta Connection CRJ service to Salt Lake City, and the additional United Express flight to Denver; and (3) Advertising and public relations program to support the new Allegiant Airlines service to Phoenix/Mesa Airport. The development of a Marketing Plan will include a catchment area analysis, point of sale analysis, market research, passenger forecast, marketing strategy for each market, advertising plan, promotional plan, public relations program, direct sales strategy, and program. The data and information in the Marketing Plan will be the basis for the overall marketing and advertising program for the current and new air service. To support this program, the sponsors of this grant are seeking $100,000 in Federal funds that will be matched with $40,000 in cash and $30,000 in-kind by the Airport and the community. 1

6 This should be sufficient to retain the experts needed to develop and manage this program to improve passenger traffic for current and attract passengers for the new air service. If follow up funding to support additional marketing and advertising is needed, the funding will be provided by local sources. Previous Grant Casper/Natrona County International Airport received a grant under the Small Community Air Service Development program jointly with Gillette, Wyoming in The grant was $500,000 and was intended to support new air service between Casper/Natrona County International Airport, Gillette Airport and Billings, Montana by providing funds to lease a B-1900 aircraft for Big Sky Airlines. The airline had a small connecting hub in Billings and it was thought that Casper and Gillette could be contributors to the Big Sky operations at Billings. Air service was started in 2003 but the passenger demand was minimal and the airline ceased this operation after a year in Casper and Gillette and returned the aircraft to the leasing company. Our Community Team Our community team includes: the Convention and Visitors Bureau, City of Casper, Town of Edgerton, Town of Mills, Town of Bar Nunn, Town of Midwest, Natrona County, Casper Area Chamber of Commerce, World Wide Travel, Casper Area Economic Development Alliance, and will be led by the Casper/Natrona County International Airport. This group has been able to develop incentive programs that have led to equipment and service upgrade as well as new nonstop jet service to Minneapolis, Chicago, and Las Vegas. Our Airport The Casper/Natrona County International Airport meets all FAA and TSA requirements for the type of service we are seeking. The Airport has the ticket counter and gate space to conveniently handle the current service of Allegiant, Delta Connection, United Express, as well as any new service. Our Plan Is Consistent With DOT Priorities This project to develop a marketing and advertising program to support current and new air service is consistent with the priorities established by the Secretary of Transportation. The new air service will not detract from the current air service and should help create a stronger awareness of the Casper/Natrona County International Airport. The Community and the Airport will work with the current airlines to provide lower fares by offering them an incentive package to advertise and be part of local sales promotions. The upgraded air service to Las Vegas and Salt Lake City and new air service to Phoenix/Mesa will benefit local businesses, educational institutions, vacation/pleasure travel, and the general public. With a 40% leakage of passengers to Denver, the improved and new air service will get the air traveler out to their car and back onto an airplane for trips from Casper/Natrona County International Airport. 2

7 Air Service Background The Casper/Natrona County International Airport (CPR) The Casper/Natrona County International Airport meets all FAA and TSA requirements for the type of service we are seeking. It is the primary commercial airport for jet airline service for approximately half of the State of Wyoming. It is estimated that the population of the total Airport catchment area is over 260,000. Casper/Natrona County International Airport has traditionally provided the best link to the National Transportation System for the residents of the many small, rural communities throughout the central part of Wyoming. The economies of the region continue to grow. Population is increasing, retail sales are up, and new companies are moving into the area and demand for airline service continues to be high. The Casper/Natrona County International Airport is a full service Airport. The passenger terminal has space to accommodate six airlines, and currently has three rental car companies and other customer amenities. Convenient, reasonably-priced automobile parking is available on- Airport. The Airport is seven miles northwest of downtown Casper and is owned and operated by Natrona County. The primary runway at the Airport is 10,165 feet long and 150 feet wide. Tenants and vendors at the Airport provide a full range of aviation services including fuel service, student instruction, charter flights, aircraft and engine repair, and aircraft storage. Air Service History The Airport passed from military control to ownership by Natrona County in The Airport is governed by a five member Board of Trustees that are each appointed for a five year term. The Airport has had scheduled air service since the early 1950 s. Prior to the Airline Deregulation Act of 1978, the Casper/Natrona County International Airport had frequent service by Western Airlines to Denver, Salt Lake City, Minneapolis, and through points in Montana to Calgary, Canada with B-737 aircraft. The peak year for enplaned passengers for CPR was 1979 with 142,079. In the 1990 s, service at the Airport was transferred from the mainline air carriers to the regional airline partners of Delta Air Lines and United Airlines. Flights were provided with commuter turbo prop aircraft. Northwest Air Link upgraded its service to Minneapolis in the summer of 2006 with 50 seat regional jets. Allegiant Airlines started service to Las Vegas in the fall of 2008 with MD-83 aircraft. The flights to Minneapolis were eliminated when Delta acquired Northwest in Flights declined but seats remained somewhat constant due to United Express replacing turbo prop aircraft with regional jet aircraft. Both United Express and Delta Connection are adding seats in July. United Express is adding one more regional jet flight to Denver and the Delta Connection is upgrading from 30 seat EMB- 120 aircraft to 50 seat CRJ-200 aircraft to Salt Lake City. This will increase the daily seats from 260 seats to 350 seats to the two hub airports. Allegiant will continue operating two trips per week to Las Vegas. Allegiant is increasing its seating on the MD-83 from 150 seats to 166 seats. 3

8 HISTORICAL NONSTOP SERVICE AT CPR Year Nonstop Markets Weekly Flights Weekly Seats 2000 DEN, SLC 83 2, DEN, SLC 89 2, DEN, SLC 68 2, DEN, SLC 76 2, DEN, SLC, MSP 77 2, DEN, SLC, MSP 88 2, DEN, SLC, MSP 69 2, DEN, SLC, MSP 76 2, DEN, SLC, MSP, ORD, LAS 77 3, DEN, SLC, LAS 43 2, DEN, SLC, LAS 42 2, DEN, SLC, LAS 43 2, DEN, SLC, LAS 50 2,700 Source: Official Airline Guide, summer issue Since 1995, the Airport has experienced a growth in passengers. For the fifteen year period, the Airport saw enplaned passengers increase 42%. There was a drop in passengers in 2002 after the impact of 9/11, but growth thereafter. Passenger enplanements leveled off with the switchover to regional jet aircraft where the airline reduced flights but added larger aircraft. The market experienced growth in enplaned passengers with the addition of Allegiant Airlines service to Las Vegas. Allegiant reduced capacity in 2011 with a corresponding drop in passengers. With a strong increase in seats in 2012, the Airport should see passengers return to 2010 levels. CASPER/NATRONA COUNTY INTERNATIONAL AIRPORT PASSENGERS 100,000 80,000 60,000 40,000 Enplaned Passengers 20, Source: Casper/Natrona County International Airport Data 4

9 Current Air Service As of July 2012, Casper/Natrona County International Airport had nonstop service to Denver, Las Vegas, and Salt Lake City. The service to Denver is provided by SkyWest Airlines operating as United Express. There are 34 nonstop flights per week with 50 seat CRJ-200 aircraft. Allegiant Airlines operates two flights per week to Las Vegas with 150 seat MD-83 aircraft. The service to Salt Lake City is provided by SkyWest Airlines operating at the Delta Connection. There are 14 flights per week with 50 seat CRJ-200 aircraft. CASPER AIR SERVICE JULY 2012 Market Airline Depart Arrive Aircraft Frequency CPR-DEN United Express 6:00 am 7:02 am CRJ Daily United Express 9:33 am 10:35 am CRJ Daily United Express 12:28 pm 1:30 pm CRJ Daily United Express 5:09 pm 6:10 pm CRJ Daily United Express 8:09 pm 9:10 pm CRJ x Saturday DEN-CPR United Express 8:05 am 9:06 am CRJ Daily United Express 11:01 am 12:02 pm CRJ Daily United Express 3:42 pm 4:43 pm CRJ Daily United Express 6:42 pm 7:43 pm CRJ x Saturday United Express 8:00 pm 9:00 pm CRJ Saturday United Express 9:59 pm 11:02 pm CRJ x Saturday CPR-LAS Allegiant 10:32 am 11:20 am MD-83 Mo, Fr. LAS-CPR Allegiant 7:05 am 9:50 am MD-83 Mo, Fr. CPR-SLC Delta Connection 6:00 am 7:36 am CRJ Daily Delta Connection 11:35 am 1:15 pm CRJ Sat & Sun Delta Connection 12:55 pm 2:35 pm CRJ x Sat & Sun SLC-CPR Delta Connection 9:45 am 11:12 am CRJ Sat & Sun Delta Connection 11:00 am 12:40 pm CRJ x Sat & Sun Delta Connection 9:55 pm 11:15 pm CRJ Daily Source: Official Airline Guide, July 2012 Allegiant Airlines will suspend their service to Las Vegas from August 14 th to November 8 th and then start back up on November 9 th. There will be seven flights in November and sixteen flights in December. The goal of Casper/Natrona County Airport is to keep the Allegiant Airlines for the entire year in 2013 and not lose service during the three month seasonal stoppage. Casper Community Profile The Casper/Natrona County community is a growing, diverse area that needs and depends upon airline service to connect its populace to the nation s air transportation system and to assist 5

10 others who serve and visit the area from throughout the United States and abroad. Casper is the number one market for the state of Wyoming. The Airport catchment area now covers almost half of the state s residents. The Casper/Natrona County area has a diverse group of employers, a low cost of living, and a relatively high median household income. The main industries are in retail/wholesale trade, services, natural resources, and medical. Oil and gas plays a prominent role in the community. In 2010 Casper was ranked as the highest rated family-friendly small city in the West and ranked eighth overall in the nation. The unemployment rate for the area was reported in April of 2012 as 4.9%, down from 7.1% in NATRONA COUNTY HAS A DIVERSE ECONOMY Sector % of Employment Retail/wholesale Trade 19.7% Government 14.5% Services 14.3% Health Care 12.7% Hospitality/entertainment 10.9% Mining 8.8% Construction 7.7% Finance/real estate 5.1% Manufacturing 4.7% Transportation 2.3% Source: Casper Area Economic Development Alliance The business market is strong and diverse in Natrona County. Community leaders will continue to support existing employers while attracting new businesses that will contribute to the economic well being of the area. MAJOR EMPLOYERS IN THE AREA Casper College City of Casper Hilltop National Bank Mountain View Regional Hospital Natrona County Poplar Living Center Sheppard of the Valley Care Center True Companies U.S. Postal Service Walmart Westech/WOTCO Wyoming Behavioral Institute Wyoming Machinery Wyoming Medical Center It should also be noted that Casper is the media and communications center for the state of Wyoming. There are nine television stations in Wyoming with five of them based in Casper (all of the networks plus PBS). There are eight radio stations based in Casper. The largest newspaper in the state is the Casper Star Tribune which has statewide distribution. 6

11 Economic Indicators In 2011, the Casper/Natrona County International Airport total catchment area had a population of approximately 260,813 residents with 120,022 housing units. Total retail sales for the Airport primary catchment area was approximately $51,632 per household. The effective buying income for the Airport primary market area was $49,900 per household. Approximately 40% of the area households have an annual buying income in excess of $50,000. Wyoming ranks 6 th in per capita personal income and fourth in the nation for overall economic outlook. The economic indicators for the Airport market area are about the same as the average for the State of Wyoming. Passenger Market for Casper Local Market Demand An analysis of passenger bookings was developed by Sabre Airline Solutions for the twelve months ending June The analysis came up with 203 outbound passenger bookings per day from the Casper/Natrona County International Airport primary catchment area. This equated to 74,000 outbound passengers and total of 296,000 origin and destination passengers. There were passengers per day for the total catchment area. This equates to 773,000 total origin and destination passengers for the total catchment area. TOP CPR DESTINATIONS FROM SABRE STUDY Annual Outbound Market PDEW Passengers LAS* ,222 PHX ,935 DEN* ,752 MCO ,840 LAX ,511 IAH ,037 ATL ,855 SLC* ,380 SEA ,198 SAN ,650 DTW 9.5 3,468 MCI 9.0 3,285 DFW 8.9 3,249 SFO 8.8 3,212 DCA 8.1 2,956 * Current Markets Served Source: Sabre MIDT data YE June 2010 Even though there are 12 airports in the total catchment area, the low fare service by Allegiant Airlines to Las Vegas from Casper/Natrona County International Airport has been responsible for capturing 65.5 outbound passengers per day, or 79% of the total passengers from the primary 7

12 and secondary catchment areas. On the other hand, the high fare service of United Airlines to Denver only captured 23% share of the total market. This indicates a leakage rate of 77%. CHOICE OF AIRPORT FOR CPR AREA PASSENGERS SHR 2.9% RAP 2.6% WRL 1.6% JAC 1.6% COD 0.9% RKS 0.6% LAR 0.2% CYS BFF0.2% 0.1% RIW 9.6% CPR 45.2% GCC 10.0% DEN 24.7% The Sabre Study presented the passenger bookings from the Global Distribution System for the total Casper/Natrona County International Airport total catchment area for a twelve-month period. Approximately 239 passengers per day originated at Casper/Natrona County International Airport and approximately 290 passengers per day went to other airports to originate their trips. Overall, Casper was able to retain 45% of the total passenger from its total catchment area. Passenger Leakage In the primary catchment area, Casper/Natrona County International Airport captured 65% of the passenger bookings with 31% going to Denver International Airport and 4% using other airports in the region. This is an increase from 57.6% since the introduction of Allegiant Airlines service to Las Vegas. For the total catchment area, CPR captured 45% with 25% using DEN and 30% using other airports in the region. This is an increase from 36% since the introduction of Allegiant Airlines service. Nonstop service tends to retain almost all of the passengers in the primary catchment area. The service to Las Vegas retained 93% of the primary CPR market, service to Denver retained 91% of the primary CPR market, and service to Salt Lake City retained 93% of the CPR market. In the primary market, only 74% of the passengers going to Phoenix used CPR and in the total catchment area, only 48% of the passengers going to Phoenix used CPR. These capture rates will be much higher if there was nonstop air service. 8

13 Passenger Forecast Prior to the introduction of nonstop service to Las Vegas by Allegiant Airlines, the Casper-Las Vegas market was approximately 5,700 origin and destination passengers per year. The first full year of nonstop service by Allegiant Airlines, the market produced 23,290 passengers and in the second full year, the market produced 29,966 passengers. The air service by Allegiant Airlines to Las Vegas provides an excellent example of what low fares will do for the Casper market. In 2007, prior to the entry of Allegiant Airlines, the average one way fare between Casper and Las Vegas was $ In 2009, after the entry of Allegiant Airlines, the average one way fare between Casper and Las Vegas was lowered to $79.78, a reduction of 61.5%. The stimulation for the new air service in the Casper-Las Vegas route was 406%. Since 2000, the Casper-Phoenix market has averaged over 5,000 origin and destination passengers per year, very similar to Las Vegas. Listed below is the passenger forecast for the Casper-Phoenix/Mesa market for service by Allegiant Airlines. The base data is passenger booking data developed by Sabre. Market stimulation and capture rate are based on Allegiant Airlines experience in the CPR-LAS market. The passengers for the primary market are large enough to support two trips per week for six months of the year. The passengers in the total market are large enough for flights all year. PASSENGER FORECAST FOR ALLEGIANT AIRLINES SERVICE TO PHOENIX/MESA Primary Secondary Total Market Market Market Initiated Passengers/Day Leaked Passengers/Day Total CPR-PHX Passengers/Day Annual Passengers 4,090 9,850 13,940 Stimulation 406% 406% Total Passengers 16,600 39,990 56,590 Capture Rate 92.7% 47.7% Allegiant Passengers 15,390 19,070 34,460 Action Plan Action Plan Elements The goal of the Action Plan is to address issues associated with the proposed air service that are critical to the long-term success of that service. In this regard, this action plan will focus on marketing for Casper/Natrona County International Airport in two areas: (1) funding for marketing, advertising and promotion for the existing air service; (2) funding for marketing, advertising and promotion for new air service. 9

14 Marketing Program Government review of the previous grants under the Small Community Air Service Development Program has shown that the successful projects had strong marketing and advertising programs developed by the sponsors and the airlines. Casper/Natrona County International Airport has created very successful marketing, advertising, and promotion programs for the introduction of new air service: Northwest Airlines to Minneapolis and Allegiant Airlines to Las Vegas. The target market for Casper air service is a combination of local business, leisure travel, and visiting friends and relatives in the Casper market area. The marketing in the local area will include advertising, promotions, and public relations in the twelve county region served by CPR. These mediums will be combined in a campaign to promote the existing air service to Las Vegas, Salt Lake City, and Denver, as well as the new air service to Phoenix/Mesa. The strong marketing and advertising program instituted by the community in the Casper market will allow the airlines to concentrate their marketing and advertising funds in their hub markets. The most effective way to contact the new customer is by targeting: (1) the traveler; (2) the travel agent; (3) the corporate travel coordinator; (4) the business associations; and (5) social media. All of these targets can be approached utilizing the same advertising media television, radio, newspaper, magazine, direct mail, , internet, and billboards. Market Research In the past, the Casper/Natrona County International Airport has utilized market research to determine the location of the potential passengers and the destinations of these travelers. The best tool for this is the Passenger Booking data by zip code developed by Sabre Airline Solutions. This data was formulated into a Catchment Area Analysis and Leakage Study giving the Airport detailed booking data for the total catchment area. Studies were developed in 2008 and 2010 and gave Casper/Natrona County International Airport excellent data to track passenger bookings and evaluate the performance of its marketing and advertising. Once the Catchment Area Analysis and Leakage Study is completed, then the Airport will hire a marketing consultant to develop a detailed marketing, advertising, and media plan. This Plan will determine the overall promotional strategy for the Airport. Based on previous advertising by the Airport, the following section sets forth a sample media plan for the two programs. The market research will be divided into two programs, (1) Catchment Area Analysis and Leakage Study and (2) Marketing, Advertising and Media Plan. It is estimated that these two programs will cost approximately $35,000. Media Selection It has been found that the market in the Casper/Natrona County International Airport catchment area can best be reached by using television, newspaper, radio, billboards, direct mail, online advertising via the internet, and social media. Listed below are the recommended media. 10

15 SELECTED MEDIA FOR AIR SERVICE Media Type Media Selected Location Television KTWO ABC Casper KCWY NBC Casper KGWC CBS Casper Newspaper Casper Star Tribune Casper Casper Journal Casper Wyoming Business Report Statewide Radio KWYY-FM Country Casper KRNK-FM Rock Casper KQLT-FM Country Casper KZQL-FM Hits Casper KTWO-AM Talk Casper KVOC-AM Talk Casper KKTL-AM Sports Casper As can be seen, Casper is the media capital for central Wyoming. The media based in Casper will give the advertiser reach throughout the entire state. The media plan goes heavy on electronic media with a good budget for public relations and social media. This project is based on two programs, one to support existing air service and one to support new air service. The market research will be utilized for both programs and the advertising will be split into two campaigns. The first campaign will support the existing air service to Denver, Las Vegas, and Salt Lake City. Based on previous ad campaigns developed by Casper/Natrona County International Airport, the following estimate is developed for the advertising program. The advertising program is estimated to be approximately $105,000 in cash expense and $23,760 in-kind expense. ESTIMATED ADVERTISING EXPENDITURES Cash In Kind Total Advertising Television $ 30,000 $ 7,500 $ 37,500 Newspaper $ 30,000 $ 2,520 $ 32,520 Radio $ 10,000 $ 2,500 $ 12,500 Outdoor (Billboards) $ 5,000 $ 2,500 $ 7,500 Production $ 10,000 $ 10,000 Internet $ 10,000 $ 10,000 Public Relations $ 10,000 $ 8,740 $ 18,740 Total $105,000 $ 23,760 $128,760 11

16 Total Incentive Package Combining the Small Community Air Service Development Program grant and local participation, the Casper/Natrona County International Airport will be able to offer a very complete package to support existing and new service. The combined incentive package will create an extremely strong marketing component and a strong public/private partnership. The total package will be $170,000. Total Federal participation requested is $100,000 with the community providing $40,000 in cash and $30,000 of in-kind. The in-kind will include $6,240 of waived fees and $23,760 of barter advertising. The sponsors will contribute 28.6% of the total cash and 41.2% of the total project. SUMMARY OF INCENTIVE PACKAGE FOR AIR SERVICE Federal Local Total Market Research $ 35,000 $ 0 $ 35,000 Advertising and Public Relations $ 65,000 $63,760 $128,760 Airport Fees $ 0 $ 6,240 $ 6,240 Total $100,000 $70,000 $170,000 Performance Measurement and Schedule Performance Measurement The incentive package as outlined in this application focuses on the Casper market area. The marketing, advertising, and promotional program presented herein should develop good awareness for new airline service. Passenger response can be measured by the reservations volume at the airline and by the passengers enplaned and deplaned at the Casper/Natrona County International Airport. The performance of the proposed air service will be tracked on a monthly and quarterly basis. This tracking will measure the number of passengers using the new air service and monitor the airline revenue and related incentive requirements. Monthly - Quarterly - The airline will provide flight segments flown and enplaned passengers. This data will be compared to the forecast projections to measure the performance of the program. The Sponsor will aggregate the year-to-date flight data and passenger statistics and will submit timely reports to the Department of Transportation. Schedule The Casper/Natrona County International Airport will start the marketing research part of the program immediately after the grant agreement is signed with the DOT. It is estimated that the market research part of the program will be completed within ninety days. At this point in time 12

17 the first advertising campaign for the existing air service can be started. The advertising program for the new air service to Phoenix/Mesa Airport will commence sixty days prior to the start of air service. The Casper/Natrona County International Airport commits to the completion of the grant, if awarded, within twenty-four months of acceptance and will diligently pursue an earlier closeout. Community Support The combination of small community living and the western can-do attitude has translated into a community ready, willing, and able to support the objectives of this application. One just needs to look at recent history to see how the community, the state, businesses, residents, and organizations have come together to support air service. Initiation, expansion, or development of air service cannot begin with an air carrier, and no initiation, expansion, or development would be successful without active community development. These collaborations (formal partnerships) in the past few years have included: Initiation of Northwest RJ Service to MSP Airport (cash and discounted fees), WYDOT (cash), Northwest Airlines (look and feel of campaign), TV, Radio, and Newspapers (discounted media), Casper Area Economic Development Alliance (travel bank). Upgrade of United EMB-120 Equipment to Dash-8s Airport (cash), WYDOT Aeronautics (cash), United Airlines (look and feel of campaign), TV, Radio, and Newspapers (discounted media). Creation of an Oxygen Concentrator Program - Airport (cash) and WYDOT Aeronautics (cash). Upgrade of United Dash-8 Equipment to CRJs Airport (cash), WYDOT Aeronautics (cash), and United (look and feel and production). Upgrade of Delta EMB-120 Equipment to CRJs Airport (cash), WYDOT Aeronautics (cash), and Newspapers (discounted media). Initiation of Allegiant Air flights to Las Vegas Airport (cash), WYDOT Aeronautics (cash), TV, Radio, and Newspapers (discounted media), press releases, media stories, live remote, coverage onboard 1 st flight, talk radio, and Good Morning Wyoming as well as Wyoming Cavalry Allegiant Air dasherboard, I Fly Casper Night, and Casper Ghosts Outfield wall advertisement. Purchase of Ground Support Equipment for Allegiant Air Service (and others) Casper Area Economic Development Alliance (cash). Initiation of United CRJ summer service to Chicago O Hare Airport Airport (marketing/advertising cash), WYDOT Aeronautics (cash), Natrona County (cash), City of Casper (cash), Convention and Visitors Bureau (cash), Casper Area Economic 13

18 Development Alliance (cash), TV, Radio, and Newspapers (discounted media), Wyoming Cavalry United dasherboard and I Fly Casper Night. Upgrade of SkyWest EMB-120 Equipment to CRJs Airport (cash) and WYDOT Aeronautics (cash), SkyWest marketing personnel (production, campaign look and feel), local media person to coordinate media buys, I Fly Casper night with the Wyoming Cavalry and promotional Casper/Natrona County International Airport/Delta/SkyWest T-shirt giveaway. While this reflects more formal relationships, it does not include a great deal of other activities and events: Chamber Business After Hours at the Airport, blasts, tons of media coverage, chamber surveys, newsletter articles, etc. The community has formed an air service advisory committee that meets quarterly. Members include representatives of the: Airport, Convention and Visitors Bureau, City of Casper, Town of Edgerton, Town of Mills, Town of Bar Nunn, Town of Midwest, Natrona County, Casper Area Chamber of Commerce, World Wide Travel, and Casper Area Economic Development Alliance. This group would work toward the implementation of the program and would work with United, SkyWest/Delta, and Allegiant closely. And this would only be the start. By working together we all would be able to identify many other ways to support this service. 14

19 Assurances The Casper/Natrona County International Airport (hereinafter referred to as Sponsor ) hereby provides the U.S. Department of Transportation with the following assurances: The Sponsor will comply with all of the applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance, and use of the Federal funds for this project. The Sponsor has the legal authority to apply for the Small Community Air Service Development Program grant, and to finance and carry out the proposed project; that a resolution, motion, or similar action has been duly adopted or passed as an official act of the applicant s governing body authorizing the filing of the application, including all understanding and assurances contained herein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. The Sponsor has access to the funds available for that portion of the project which are not to be paid by the United States government. The Sponsor has sufficient funds to assure operating and maintenance of items funded under the grant agreement, which it will own or control. The Sponsor shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of the grant, the total cost of the project in connection with which the grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of The Sponsor shall make available for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to the grant. The Sponsor will execute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved. The Sponsor will furnish such periodic reports as required pertaining to the project and activities. 15

20 Support for Air Service Development Zone Designation The Casper/Natrona County International Airport was initially developed as an Army Air Base during World War II. It consisted of 2,902 acres and saw its first aircraft operation on August 15, 1942, nearly 70 years ago. Today the Airport consists of 5,150 acres of land and has a number of the original buildings and structures remaining. All current buildings, both WWII and buildings built since that time are fully occupied. The Airport has numerous strengths when it comes to attracting business to the airport including: A 10,150 primary runway and 8,679 crosswind runway; 5,150 acres of land; WWII buildings and infrastructure; FTZ 157; U.S. Customs and Border Protection Operation (designated port of entry); FedEx Air Freight Operation; Con-way Freight (ground) operation; Adjacent Casper Logistics Hub (rail offload facility); Current availability of a 9,000 square foot communications/data building; New Fuel Farm (a 360% increase in capacity from the previous); and Immediate access to Highway 20/26 and access to I miles away. The Airport has undertaken initiatives to develop the business/industrial portion of the Airport s business and industrial portion including: Update of an Industrial Park Development Plan; Reconstruction and extension of Commerce Drive (Industrial Road Entrance); Expansion of FTZ 157; and Installation of a Fiber Optic Loop and DSL Service (currently underway). Despite these strengths, recent initiatives, and development opportunity, the Airport has some challenges when developing this land: Land lease vs. land sale; and Land Restrictions (historic designation of buildings and land area; grant assurances; transfer clause, etc.). The Airport is currently undertaking, with the FAA and WYDOT Aeronautics assistance, an update to the Airport s land use plan. What the Airport would hope to gain with the air service development zone designation would be: Assistance/Guidance on increasing the activity in the FTZ which has largely been dormant; Assistance/Guidance on identifying aeronautical and non-aeronautical businesses who would be a good fit with the Airport (targeted industry analysis); Assistance in identifying any governmental agencies (federal and state) who could serve as resources on an ongoing basis to assist the Airport in the land development; and Assistance/Guidance on balancing the historic designation against business/industrial park development. 16

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