APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST SUMMARY INFORMATION

Transcription

1 APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST SUMMARY INFORMATION All applicants must submit this Summary Information schedule, as the application coversheet, a completed standard form SF424 and the full application proposal on For your preparation convenience, this Summary Information schedule is located at A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID. Legal Sponsor Name: Lafayette Airport Commission DUNS Number: EIN/Tax ID: B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING: 1. LAFAYETTE AIRPORT COMMISSION C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE). 1. Lafayette Regional Airport (LFT) D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY. 1. #

2 3. 4. E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) Not a Consortium Interstate Consortium Intrastate Consortium Community now receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant If previous recipient: Year of grant(s): 2004 F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) PUBLIC 1. Lafayette Airport Commission Louisiana Department of Transportation & Development PRIVATE 2. G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY) Marketing Upgrade Aircraft New Route Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee Launch New Carrier Start-up Cost Offset First Service Study Secure Additional Service Other (explain below) H. EXISTING LANDING AIDS AT LOCAL AIRPORT: Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other (specify) GPS Approach VOR DME Approach ASR I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA 2

3 LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT 1 Federal amount requested 289,500 2 State cash financial contribution 40,500 Local cash financial contribution 3a Airport cash funds 75,000 3b Non-airport cash funds 3 Total local cash funds (3a + 3b) 405,000 4 TOTAL CASH FUNDING (1+2+3) In-Kind contribution 5a Airport In-Kind contribution** 5b Other In-Kind contribution** 5 TOTAL IN-KIND CONTRIBUTION 1 (5a + 5b) 6 TOTAL PROJECT COST (4+5) 405,000 J. IN-KIND CONTRIBUTIONS** For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please describe the source(s) of fund(s) and the value ($) of each. 3

4 K. 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 L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF YES, PROVIDE EXPLANATION) No Yes (explain) 4

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6 PROPOSAL UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET DOT-OST SUBMITTED BY: LAFAYETTE AIRPORT COMMISSION LEGAL SPONSOR LAFAYETTE AIRPORT COMMISSION DUNS # U. S. CONGRESSIONAL DISTRICT # 3 AIR SERVICE NEEDS/DEFICIENCIES Major Origin/Destination Not Served or Not Served Adequately Lafayette Regional Airport (LFT) is a non-hub airport that provides air service to major hubs (IAH, ATL and DFW) for connecting service. Three commercial airlines provide service United Airlines, Delta Airlines and American Airlines. Cumulatively, these airlines provide approximately twenty inbound and twenty outbound flights per day. Three barriers that affects passengers from choosing to fly in/out of LFT include the lack direct air service to desired locations such as Lad Vegas, New York and Los Angeles, smaller-sized aircraft and a lack of education and understanding of the overall time and cost for air travel when passengers choose to fly in/out of a distant airport. Over the past two years, passengers flying in/out of LFT have expressed frustration and dissatisfaction about flights being overbooked, not receiving their luggage when they arrive and flight time delays. These problems are a direct result of the current air carriers reluctance to provide larger aircraft that can accommodate the number of passengers who wish to fly in/out of LFT. Another major deficiency is a lack of direct service to both the east and west coast. Delta Airlines is the only air carrier serving LFT that has direct flights to Atlanta. United Airlines and American Airlines only offer direct service to Houston and Dallas respectively. Individuals seeking a more time efficient and cost effective air travel look to flying out of New Orleans, primarily choosing Southwest Airlines to obtain direct flights to locations such as New York, Las Vegas and Los Angeles. Fare levels the Community Deems Relevant to Consideration The internet and social media has radically changed the methods and preferences that individuals utilize to research and select their air travel. This change is especially relevant for the 18 49

7 age demographic. A recent study conducted by the Pew Research Center reported that 87% of individuals in the age demographic have a mobile device and utilize their mobile device to access the internet. Mobile devices have become the main source for these individuals to connect to social media and communicate with other individuals. When researching and booking air travel, this age demographic primarily goes to travel websites such as Expedia and Kayak. When individuals utilize the travel websites, their main priority is to find the lowest possible airfare, followed by finding a direct flight to their desired destination. Southwest Airlines is LFT s major competitor for losing this age demographic. Southwest Airlines offers direct flights and bargain airfares, especially if a person books their air travel through the Southwest Airline s website. Booking through an air carrier is becoming far more common as people are more comfortable with their navigation skills and prefer to book their own flight reservations. Listed below is a price comparison of airfares that can be booked through the Southwest Airlines website verses the three major air carriers that fly in/out of LFT to major destinations: (Airfares are based on a round trip, five day stay for one person) Travel to New York via New Orleans - $207 Travel to New York via Lafayette - $320 Travel to Las Vegas via New Orleans - $196 Travel to Las Vega via Lafayette - $357 Travel to Los Angeles via New Orleans - $199 Travel to Los Angeles via Lafayette - $346 All of the travel through New Orleans on Southwest Airlines are non-stop flights. Travel through Lafayette to the other destinations required a change of aircraft in either Houston, Atlanta or Dallas. When the LAC trip calculator is utilized to compare the actual travel costs to fly in/out of New Orleans as opposed to flying in/out of Lafayette, the difference in cost was less than $100 for the convenience of flying in/out of Lafayette. This cost comparison included the cost for parking and gas mileage to drive to/from New Orleans but did not include a cost factor for a person s time to travel to/from Lafayette to New Orleans. When the comparisons were calculated the difference to fly to/from the three destinations through Lafayette were: New York - $32 Las Vegas - $80 Los Angeles - $66

8 Air Service Development Efforts Over the Past Three years and Results of Those Efforts During the past three years, the LAC has made a concerted effort to promote flying Lafayette. Successes have included a total revitalization of the Fly Lafayette Club which provides incentives and door prizes for individuals who join the club. The LAC website was updated and added social media tools such as Facebook, Twitter and Foursquare. The trip calculator is located in a more prominent location on the LAC website to help with the ease of locating the calculator. Another marketing improvement has been the installation of an LED sign at the main entrance to the airport. Some short lived successes included securing some direct flight service to destinations other than Houston, Atlanta and Dallas. In 2011, the LAC waived landing fees and terminal rent for four months and provided marketing funds to promote air service provided by Vision Airlines for twice weekly non-stop air service on a seasonal basis to Destin/Panama City, Florida. Vision Airlines ceased flight operations at LFT after four months due to low passenger volumes. During 2011 through 2012, the LAC waived landing fees and terminal rent and allowed a turnaround rate plus $35,000 in marketing funds to promote Allegiant Airlines direct air service to Las Vegas. Passenger load was high, but the airline discontinued air service after four months due to economic reasons. The LAC has a standing offer to any airline to waive landing fees for airlines who will offer scheduled air service for their aircraft that is capable of offering first class for large groups and out-sized cargo. Impediments that occurred over the past three years included a runway construction project that expanded a runway from 6,500 feet to 8,000 feet. This construction project reduced the number of usable runways for the take-off and landing of aircraft. During this same time period, the LAC was required to comply with a congressional mandate for runway safety areas that left the airport with no instrument landing system. These barriers resulted in airline cancellations, lost baggage and diversions back to the departure airport because no precision approved system was operational. Passengers expressed their aggravation and verbalized that they would use alternate airports for their future air travel needs because of the inconveniences that were created by these problems. During the past three years, the LAC has been in continuous communication and discussions with United Airlines, Delta Airlines and American Airlines requesting that the airlines increase the aircraft size and the number of flights to their current hubs. The LAC has also made a

9 concerted effort to encourage these airlines to offer direct air service to Chicago, Denver and Charlotte. STRATEGIC PLAN The goal for this project is to research, develop and implement a social media program that will reach and increase the number of individuals in the age demographic to fly in/out of Lafayette Regional Airport. This goal will be accomplished by meeting the following objectives: Conduct focus groups with individuals within the age demographic to obtain information, insight, and opinions on the methods and tools that they utilize to research and plan their travel arrangements. Develop social media and analytic tools to reach and monitor travel related social media activity. Obtain opinions, insight and further recommendations from members of the focus groups regarding the improved and newly developed social media tools. Fully implement social media and analytic tools. Maintain daily social media and analytic activities. Focus Groups Three separate focus groups will be formed for this project. Each focus group will be comprised of a minimum of twelve individuals in the age demographic. Each focus group will include a combination of men and women from all socio-economic levels who reside within the eight parish Acadiana region. Each focus group session will take place over a two-hour period with a qualified consultant initiating the session with a brief overview of the airport and the current social media tools that are used by the airport. The members of the focus group will be asked to share opinions about flying in/out of Lafayette Regional Airport and the methods that they use to research and plan their travel arrangements. The members of the focus group will also be asked to share the primary factors that they consider when making their travel arrangements and specifically identify the primary factors they consider when making arrangements to fly to/from a destination. Additional information will be obtained to identify the most desirable locations that they choose to visit and the locations

10 that they need to fly to for business purposes. The members of the focus groups will also be asked if they use other airports that are not located in the Acadiana region and if so, the names of those airports and the reasons that impacted their decision to utilize that airport. Based on the preferred travel destinations that are identified, the consultant will utilize the LAC trip calculator to demonstrate the true cost of flying in/out of Lafayette compared to flying in/out of a distant airport. Finally, the members of the focus group will be asked to share their thoughts and opinions of the most valuable social media tools that should be used to effectively communicate and maintain contact with individuals in the age demographic when they research and plan their travel arrangements. All of the information gained and gathered from the focus groups will be reviewed and a comprehensive report will be prepared. The report will be shared with the LAC board and staff. Development of Social Media and Analytic Tools Based upon the information, opinions and recommendations obtained from the members of the focus groups, a comprehensive social media program will be designed to increase contact and communication with potential air travelers within the age demographic. The current social media tools utilized by the airport Facebook, Twitter and Foursquare will be enhanced and other preferred and recommended social media tools will be added to maximize the number of contacts and interaction with individuals within the age demographic. During the development period, a comprehensive review of analytic and tracking tools will be conducted. This review will include research on analytic tools that have a proven success record with other airports to help assure that the appropriate analytic tools are selected for obtaining accurate and pertinent information. The analytic tools will help to track information such as the number of contacts and communication activities that are received from the age demographic, the number of persons within the age demographic that choose to fly in/out of Lafayette and the number of individuals within the age demographic who choose to utilize the LAC trip calculator. Evaluation and Recommendations for the New Social Media Program Each of the three focus groups will be reconvened to view the new social media program. The participants will be asked to provide their opinions regarding the enhanced and newly added social media tools as well as the level of ease to utilize and access the various social media tools. All of the participants will be asked to prioritize their preferred social media tools and to make any recommendations for changes, additions and deletions to the social media program. The information received from the members of the focus groups will be reviewed and a report will be prepared and shared with the LAC board and staff.

11 Implementation of Social Media and Analytic Tools After a complete review and evaluation of the information received from the second focus group sessions, the social media tools will be fully implemented and activated. Simultaneously, the analytic tools will be implemented and activated. Continuous Monitoring and Maintenance of Social Media and Analytic Tools Upon completion of the full implementation of the social media program, all aspects of the social media program will be monitored and maintained to assure that all contacts and communications receive a timely response. With the addition of the analytic tools, all relevant information will be collected on a daily basis. The collected data will be prepared into a monthly report that will include information such as the number of contacts received from individuals within the age demographic, any trends that can be detected, preferred social media tools and any changes and/or revisions that need to be made to improve the social media program. The monthly report will be shared with the LAC board and staff. FUNDING DESCRIPTION Total 3 Year Budget: $405,000 Funding Requested Through the Small Community Air Service Development Program: $289,500 Other Funding Sources: Lafayette Airport Commission - $75,000 Cash Match Louisiana Department of Transportation & Development - $40,500 Cash Match Funding Expenditures: Year 1 Focus Groups - $75, Hours/Person Program Development - $55, Hours/Person Year 2 Program Development and Implementation - $130, Hours/Person

12 Year 3 Program Implementation, Maintenance, Results Tracking - $145, Hours/Person Total Project Budget: $405,000 The professional consultant fees are based on current GSA billing rates with all professional consultants possessing a minimum of a bachelor s degree in Mass Communications and at least five years of working in airport marketing and promotion. At the end of the project period, the Lafayette Airport Commission will assume the financial responsibility to maintain a viable social media program. How This Project is Different from Previous Funding In 2004, the Lafayette Airport Commission was awarded a grant in the amount of $240,000 through the Small Community Air Service Development Program. These funds were utilized to develop and implement a marketing program that focused on developing stronger relationships with travel agencies, air service sales personnel and major employers to book their clients air service needs in/out of Lafayette Regional Airport. Traditional marketing methods were used such as the development of brochures and implementing a billboard campaign that was launched in adjacent states to encourage passengers utilizing other airports to consider flying in/out of Lafayette. The proposed project is specifically designed to target individuals within the age demographic by utilizing social media. Through the utilization of this age demographics preferred method for research and communication, the LAC social media program will be able to educate and communicate the positive aspects of flying in/out of Lafayette. This project will also focus on gaining a better understanding and knowledge about this age group s social media preferences that will help to create a continuous form of communication with these individuals. This project will also develop and implement an analytic component to help assure that pertinent data is continuously collected and evaluated to maintain a viable social media program.

13 LEGAL SPONSOR The Lafayette Airport Commission, a public entity of the Lafayette Consolidated Government, will serve as the legal sponsor for the project. The LAC has the legal authority to assume the responsibility to ensure that all funding under federal, state and local laws will be carried out for all aspects of this grant program.