Evansville Regional Airport / Evansville, Indiana

Transcription

1 Docket: DOT-OST Before the Office of the Secretary of Transportation U.S. Department of Transportation Evansville Regional Airport / Evansville, Indiana Proposal Under the Small Community Air Service Development Program An Integrated Program of New Air Service Development via; Start-up Cost Offsets, Fee/Rent Waivers, Marketing, and Revenue Guarantees in Support of AirTran Airways Service to/from Atlanta and/or Orlando Sponsor: Evansville Regional Airport Robert H. Working, Airport Manager Evansville, Indiana Congressional Code: IN-008 Dun & Bradstreet Number: August 28, 2009

2 Table of Contents Description Page number Table of Contents 2 Introductory Letter 3 Summary Information 4 Introduction 7 Primary Objectives of Proposal 8 Executive Summary 9 Detailed Explanation of Proposal 15 Market Specifics 19 Letters of Support 23 Current Air Service 26 Air Service Deficiencies 33 Extenuating Factors Affecting Air Service 41 Availability of Alternate Airports 46 Use of Local / Federal Funds 47 Public / Private Partnerships 48 Air Service Advisory Groups 49 Local Air Service Development Efforts 50 In-kind Services from the Community 50 Performance Measures 51 Financial Controls 51 Return on Investment 51 DOT Exit Strategy 52 Alternate Plan 52 Airport Information 53 Community Profile 54 Comparison to Other Communities in Region 63 Conclusions 71 Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

3 Introductory Letter Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

4 Summary Information Small Community Air Service Development Program Docket DOT-OST A. Applicant Information Not a Consortium Community now receives EAS subsidy Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, expiration date of grant: December 31, 2008 Community Name Evansville, Indiana Address 7801 Bussing Drive City, State, Zip-code Evansville, Indiana Point of Contact: Dianna Kissel, Marketing Manager Phone: Dianna@evvairport.com County: Vanderburgh Congressional Code: IN-008 Dun & Bradstreet #: Designated Legal Sponsor: Name Robert H. Working Title Airport Manager Organization Evansville Regional Airport Address 7801 Bussing Drive City, State, Zip-code Evansville, Indiana Phone: ruworking@evvairport.com Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

5 B. Public/Private Partnership Public: 1. Evansville Regional Airport 2. City of Evansville 3. Vanderburgh County Private: 1. Chamber of Commerce of Southwest Indiana 2. Economic Development Coalition of Southwest Indiana C. Project Proposal Marketing Upgrade Aircraft New Route Personnel Increased Frequency Low Fare Service Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (specify) Revenue Guarantee Start Up Cost Offset Study Launch New Carrier First Competitive Service Secure Additional Carrier D. Existing Landing Aids at Airport Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

6 E. Project Cost Federal amount requested: $ 500,000 Total local financial contribution: $ 50,000 Airport funds: $ 25,000 Non-Airport funds: $ 25,000 State financial contribution: $ 0 Existing funds: $ 0 New funds: $ 0 Airport In-kind contribution: $ 0 (Amount & description) Other In-Kind Contribution: $ 0 (Amount & description) Total cost of project: $ 550,000 F. Enplanements at Airport 2004: 207, : 218, : 205, : 195, : 167,300 G. Is Application Subject to Review by State Under Executive Order Process? This application was made available to the State on. Program is subject to review, but has not been selected by the State. Program is not covered. H. Is Applicant Delinquent on any Federal Debt? No Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

7 Introduction The Evansville Regional Airport is an essential gateway to the national air transportation system for a large portion of Indiana, Kentucky, and Illinois. The Airport s 60-mile catchment area is home to almost 900,000 people. Despite the large population, the Airport has long been underserved by its airlines when compared to other airports in the southeast region. This summer, Evansville has been disproportionately hit by the merger of Delta and Northwest. The Evansville Regional Airport will lose service to Memphis in the merger, along with frequency reductions to all of the combined Delta Northwest hubs. After the merger, the combined Delta Northwest will have almost 70% of the Evansville passenger market. This is especially troubling for a market like Evansville, where the average fares are already some of the highest in the nation. The merger s impact on those fares will be to drive them up further. In 2008, Evansville s average fare of $466 roundtrip ranked as the second highest in catchment areas of 500,000 people or more in the Great Lakes Region. Fares in the Evansville market have gone up by 31% since 2005, as seats available have dropped by 20%, and passengers have been suppressed by 24%. An analysis of the current population of the Evansville market and other adjacent markets shows the Evansville Regional Airport leaks almost 70% of its passengers to other airports. The analysis shows more than 700,000 annual origin and destination passengers from the Evansville catchment area are forced to fly in and out of other airports in the region most notably Louisville, Indianapolis, and St. Louis, all of which are more than two hours away by car. Under this proposal, the Evansville Regional Airport seeks AirTran Airways low fare service to the Airline s Atlanta hub. AirTran would provide low fare competition in 34 of Evansville s largest passenger markets, providing an infusion of seats, and forcing other airlines to bring fares in line with other airports in the region. The average fare, right now, in markets AirTran would access over Atlanta is $422 roundtrip. These markets are mostly short haul, and have been identified as those that need the most fare relief. The Airport has developed a proven method of providing start-up cost offsets, revenue guarantees, and market support for AirTran s entry into the Evansville market. AirTran has long been looking at Evansville and it s time for Evansville to step up with the right offer to bring the service to the Airport. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

8 Primary Objectives of Proposal Objectives for Program: Add low fare service at the Evansville Regional Airport Recruit AirTran to the Evansville market, as the market s first low fare network carrier Increase airline competition in the market, thus lowering fares Create better low fare connectivity to the southeast, Florida, and western half of the US Lower fares in the market through increased enplanements Decrease leakage to Louisville and St. Louis Increase awareness in the region about low fare service in Evansville Means to Achieve Objectives: Prove a market does exist for AirTran s low fare network service in Evansville Develop incentives to set Evansville apart from other airports Recruit AirTran to the Evansville Regional Airport Course of Action to Support Means: Provide start-up cost offsets to reduce AirTran s cost of entry into the market Provide revenue guarantees to ensure the success of the new service Provide marketing support to increase awareness about AirTran s flights Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

9 Executive Summary The Evansville Regional Airport is an essential connecting point to the national air transportation for a large area of the Midwest, including parts of Indiana, Kentucky, and Illinois. The Airport provides the only commercial air service within a 125 mile radius, and yet it has been saddled by prohibitively high fares and a low number of available seats for more than a decade. This has the effect of suppressing passengers. The Airport draws the majority of its passengers from a radius of 60 miles, seen below in Table 1 in light green. This 60-mile catchment area is home to 899,628 people as of the latest US Census estimates. Table 1: Evansville Regional Airport Catchment Area The Evansville Regional Airport has been hard hit by the merger of Delta and Northwest. This summer the Airport will lose a non-stop destination, as well as frequencies to other hubs, as Delta culls its route network. Delta will continue to serve the hubs at Atlanta, Detroit, and Cincinnati (see Table 2), but will end service between Evansville and Memphis. This lost connectivity will hit Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

10 businesses especially hard as Memphis provided valuable connections to many cities in the south, including Toyota s co-located plants in the Evansville region and in San Antonio. Toyota is now searching for a better way to move people between the two cities, without a Memphis option. Moreover, the Delta-Northwest merger leaves Evansville with just two mainline, legacy carriers, instead of three, which will likely result in fewer available seats and higher average fares. In all, the Evansville Regional Airport has non-stop service to five cities (see Table 2). As of August 2009 the Airport will average 16 departures per day but that number will fall to just 14 departures a day as of the fall of Table 2: Scheduled Service at the Evansville Regional Airport, September 2009 The number of domestic passengers using the Evansville Regional Airport has fallen precipitously since Total passengers are down 24% since 2005 in Evansville a drop of more than 102,000 total origin and destination travelers (see Table 3). The reason for the passenger Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

11 declines in Evansville is fairly clear average fares have gone up considerably in the last four years in the market. Table 3: Domestic O&D Passenger & Fare Changes at Evansville Calendar Year 2003 to Calendar Year 2008 O&D Passengers Fared Average Fare 415, , , , , ,000 $180 $178 $201 $206 $233 0 CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 $0.00 The average Evansville domestic one way fare grew to $233 in 2008 the highest point in the last decade (see Table 3). Since 2005, average one way fares in Evansville are up 31%. The average fare increase is, at least, partially responsible for the loss of passengers over the same time period. In just the last year, average fares in Evansville have grown by 13%, or $27 each way. The average roundtrip fare in Evansville in 2008 was $466 one of the highest average fares in the nation. With less air service than many other airports in the region, the Evansville Regional Airport is saddled with higher airfares than any of the airports surrounding its primary market area. In fact, of all nearby airports in Indiana, Ohio, and Michigan, with catchment areas of more than 500,000 people, Evansville has the second highest current average one-way fare, at $233 each way, or an average of $466 roundtrip (see Table 4). The only airport with a higher average fare in 2008 in the region was Cincinnati, which had the second highest average fare in the nation in Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

12 2008. The average fare at the Evansville Regional Airport is 38% higher than the Great Lakes Region average of $169 each way. Table 4: Average One Way Fares at Airports in Indiana, Ohio, and Michigan With Catchment Area Populations of 500,000+ Calendar Year 2008 Great Lakes Average = $169 Cincinnati, OH $250 Evansville, IN Midland/Saginaw, MI Grand Rapids, MI Fort Wayne, IN Lansing, MI $232 $224 $212 $207 $194 Toledo, OH South Bend, IN Cleveland, OH Detroit, MI Dayton, OH Columbus, OH Indianapolis, IN Flint, MI Akron/Canton, OH $175 $173 $165 $163 $160 $156 $153 $147 $138 Youngstown, OH $76 $0 $50 $100 $150 $200 $250 Most challenging for the Evansville Regional Airport, in terms of retaining travelers who live in its immediate catchment area, is the lower fares found at the closest competing airports in Louisville and Indianapolis. The Evansville average fare is $68 more each way than the average fare at Louisville or 41% higher. The Evansville fare is an average of $80 more than the one way fare at Indianapolis or 53% higher (see Table 4). The airfare disparity is even more apparent when Evansville s top 20 markets are examined. The average fares in 16 of Evansville s top 20 markets are above the regional average (see Table 5). Only the fares to Tampa, Cincinnati, Baltimore, and Raleigh/Durham are below the regional average. The Cincinnati fare is the lowest, but airlines on the route still average $192 roundtrip, even though the stage length is less than 150 miles. On average, the Evansville - Cincinnati traveler is paying a 57-cents a mile for the flight. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

13 Table 5: Average One Way Fares at Top 20 US O&D Passenger Markets in Evansville Calendar Year 2008 Regional Average = $169 Chicago, IL Detroit, MI New York/Newark, NY Dallas/Ft Worth, TX Las Vegas, NV Atlanta, GA Tampa/St Petersburg, FL Orlando/Sanford, FL Los Angeles, CA Cincinnati, OH Phoenix/Mesa, AZ Baltimore, MD Raleigh/Durham, NC Seattle/Tacoma, WA Washington, DC Minneapolis, MN Philadelphia, PA San Diego, CA Houston, TX Denver, CO $96 $156 $142 $150 $198 $288 $279 $229 $195 $268 $206 $233 $196 $234 $250 $292 $224 $209 $308 $273 $0 $50 $100 $150 $200 $250 Evansville s large business markets, such as Chicago, Detroit, and New York/Newark have some of the highest fares in the market. The fare to Chicago averages $396 roundtrip, which is 17% above the regional average (see Table 5). The fare between Evansville and Detroit averages $576 roundtrip 71% above the regional average. And the fare to New York/Newark averages $558 roundtrip, which is 65% above the regional average. In many cases, fares to specific markets at the Evansville Regional Airport are more than double the fare found at competing airports within a two-and-a-half hour drive. And although there is no close alternate airport to Evansville, many people in the immediate catchment area are forced to drive to other airports for more affordable and rational airfare pricing. These drives are inefficient, time consuming, and a drain on the local economy. High airfares not only drain money away from the Evansville Regional Airport, but also force companies to look at other cities when considering where to base their most frequent travelers. If allowed to remain unchecked, it s likely the high airfare in environment in Evansville will lead to the loss of significant economic activity. The presence of lower fares within a two-and-a-half hour drive of Evansville leads to significant passenger leakage to services at these other airports. It has been difficult for the Airport to Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

14 recruit additional airlines to Evansville because of this leakage, because it dilutes the Airport s traffic data. Due to weaker traffic data, the Airport must be able to offer some kind of risk mitigation to get airline to try the Evansville market. And airfares will only come down in Evansville once additional airlines have entered the market and provided competition. Evansville is stuck in a situation where it must recruit additional airlines in order to ensure the market s continued viability, but it cannot recruit that competition with some kind of federal support to reduce a new airline s barriers to entry into the market. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

15 Detailed Explanation of Proposal With local airfares so high and available seats on the decline with the Delta-Northwest merger, the Evansville Regional Airport must seek a third carrier to bring additional competition and pricing stability to the market. In conversations with several potential carriers over the summer of 2009, Evansville has identified AirTran Airways as its best option, and its most likely partner. AirTran can provide low cost/low fare service to the market, initially launching a route to Atlanta, with the possibility of later service to cities such as Baltimore, Orlando, Milwaukee and Ft. Lauderdale. AirTran has had success in communities of similar size, such as Allentown, Akron/Canton, and Harrisburg. The Airport proposes to offer the grant funding, in the form of start-up cost abatements, fee waivers, marketing support, and revenue guarantees to AirTran for two daily flights to Atlanta (see Table 6). The Atlanta hub would give Evansville area travelers adequate access to competitive connecting service, and provide strong competition in the market for incumbent carriers Delta Connection and American Eagle. The Airport believes the addition of AirTran will result in much better connectivity, vastly increased enplanements, significantly lower fares, and a much more viable link to the national air transportation system. Table 6: Stage Length: 350 Miles Evansville Estimated Flight Time: 0:43 Atlanta Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

16 The route between Evansville and Atlanta would cover 350 miles, and could be flown by an AirTran Boeing aircraft, with an average flying time of 43 minutes at an average groundspeed of 425 knots (see Table 6). The Airport proposes two daily flights in each direction between Evansville and Atlanta, operated by B717 mainline jet aircraft, seating 117 total passengers, with 12 business class seats and 105 economy class seats. The Airport proposes the flights be timed to meet the morning outbound bank at Atlanta, serving omni-directional destinations from the hub. The Airport also proposes a late evening return, connecting those same cities back into Evansville during AirTran s last bank (see Table 7). Table 7: Proposed Schedule Evansville Atlanta Origin Destination Departs Arrives Block Time Equipment EVV ATL 6:12am 8:15am 1: ATL EVV 1:15pm 1:18pm 1: EVV ATL 2:00pm 4:03pm 1: ATL EVV 10:05pm 10:08pm 1: The proposed schedule assumes an average ground speed of 425 knots on the route, and does not take into account winds or weather conditions. That ground speed will result in an average flight time of 43 minutes on the Evansville Atlanta route (see Table 7). An additional ten minutes has been added on each end for taxi time, resulting in a total block time of 1:03. AirTran service from Evansville to Atlanta would open 34 one-stop destinations to new low fare service (see Table 8). Many of these markets are currently dominated by the Delta-American duopoly in Evansville. Flights timed on the proposed schedule would connect to destinations from Boston, in the northeast, to Seattle, in the Pacific Northwest. Connections through Atlanta would give Evansville travelers one-stop access to a number of markets in which there is little current competition. Moreover, Atlanta currently ranks as Evansville s sixth largest origin and destination passenger market, averaging almost 10,000 annual passengers, or 13.6 passengers per day each way, despite limited high fare service. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

17 Table 8: Connections Available Beyond the AirTran Atlanta Hub, August 2009 There is no question the Evansville market lacks competitive air service. The way current service is structured, with high fares on Delta and American, and limited service, including the loss of one of the market s major hub routes, there is little incentive for current carriers to keep fares inline with those found in other communities in the region. New flights, on a new low fare airline, would provide real competition in many of Evansville s largest markets. The effect of this competition would be to bring fares down and increase enplanements. Service on AirTran has been chosen strategically by the Airport. AirTran continually prices its markets not for the highest profit margin, but for long term growth and sustainability. Moreover, the AirTran aircraft of choice the Boeing 717 has some of the lowest operating costs in the industry and lower costs than any of the regional airliners currently serving Evansville. This helps AirTran fill large numbers of seats, while still offering low fares. The Evansville Regional Airport proposes that a relatively small portion of the cost of starting the new service be supported up-front with federal funds from the Small Community Air Service Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

18 Development Program. Of the total project cost of $550,000, only $50,000 will be used for marketing and advertising projects. An undetermined amount of money will be used to cover AirTran s start-up costs in the market. The federal share of this project will be $500,000, of which the vast majority will be used as a revenue guarantee. The Airport projects that the bulk of the grant money be available to provide insurance in case the new carrier needs help getting through its first full year of service in Evansville. With demand for the service in the Evansville market, the Airport projects the new flights will be profitable in their second year of operation. However, the Airport expects the new carrier to incur some losses at the launch of service, as the market becomes more accustomed to having competitive air service, lower fares, and as leakage slowly decreases. The objective of the proposal is clear. Evansville Regional Airport seeks to bring a new competing carrier to the region, in order to provide additional connection opportunities, moderate airfares, stimulate demand, and quell the leakage the airport experiences today. The Airport is targeting this program to meet the goals of the Small Community Air Service Development Program through increased capacity, lowered average fares, and increased service by new carriers to additional markets. If, for some unforeseen reason, service is not commenced in a timely manner by AirTran Airways on the Atlanta route, the Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help AirTran launch service on another route it deems more likely to see success. Among the alternate AirTran routes covered under this proposal would be Orlando, Baltimore, Milwaukee, Ft. Lauderdale, and Tampa/St. Petersburg. If AirTran declines to service the Evansville market completely, the Airport will work to recruit another carrier interested in beginning service to the community that can provide access to a new hub. Among the additional target airlines would be United, with service to Chicago O Hare and/or Washington Dulles; Continental, with service to Cleveland, Newark, and/or Houston; or US Airways with service to Charlotte. The Airport would also recruit other airlines, depending on their ability to compete and to lower local airfares. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

19 Market Specifics: Evansville Atlanta The Evansville market currently produces 230 unstimulated origin and destination passengers per day each way to destinations that naturally connect over the AirTran Atlanta hub. In calendar year 2008, Evansville produced 167,779 total origin and destination passengers that would flow over Atlanta on AirTran (see Table 9). In all, the Evansville Atlanta route has the potential to capture 44% of the current passengers flying in and out of Evansville, itself, without taking into account any passenger leakage, which is quite high due to the oppressive fare environment (see Table 9). At the same time, the Atlanta hub could capture 36% of the current revenue generated in the Evansville market. Table 9: Share of Evansville O&D Passengers and Revenue Naturally Flowing Over Atlanta on AirTran Calendar Year 2008 Total Evansville Passengers 362, % Share of Evansville Passengers Flowing Over ATL 167,779 46% Atlanta 44% Atlanta 36% Other Hubs 56% Other Hubs 64% Total Evansville Revenue $97,758, % Share of Evansville Revenue Flowing Over ATL $35,473,750 36% Currently, AirTran markets from Evansville that flow over the Atlanta hub generate more than $35.4 million in annual airline revenue, or almost $48,600 in revenue per day each way (RDEW) to and from Evansville (see Table 9). The AirTran hub at Atlanta has potential to capture large portions of traffic in 34 of Evansville s largest origin and destination markets. The Atlanta hub is especially well positioned to capture traffic traveling to the southeast, the west coast, and the east coast including large markets such as Las Vegas, which produces 14.6 passengers per day each way (PDEW) to and from Evansville; Dallas/Ft. Worth, which produces 14.5 PDEW; Atlanta, itself, which produces 13.6 Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

20 PDEW; Tampa, which produces 13.3 PDEW; Orlando, which produces 13.3 PDEW; and Los Angeles, which produces 13.0 PDEW (see Table 10). Table 10: Evansville s Top 20 O&D US Passenger Markets Over Atlanta on AirTran Calendar Year 2008 Las Vegas - 1 Dallas/Ft Worth - 2 Atlanta - 3 Tampa - 4 Orlando - 5 Los Angeles - 6 Phoenix - 7 Baltimore - 8 New York LGA - 9 Raleigh/Durham - 10 Seattle/Tacoma - 11 Philadelphia - 12 San Diego - 13 Washington DCA - 14 Denver - 15 Fort Lauderdale - 16 San Antonio - 17 Fort Myers - 18 New York EWR - 19 San Francisco ,660 10,650 9,940 9,740 9,700 9,510 7,900 7,280 7,250 6,510 6,410 5, , , , , , , , , Annual Passengers PDEW ,500 5,000 7,500 10,000 It is likely AirTran would stimulate the passenger market significantly in Evansville, with a projected stimulation rate in its markets of, at least, 100%. AirTran s low fare structure has been shown to have a similar impact in other markets in the Midwest. This gives the Airport reason to be optimistic that the service can be self-sustaining in as little as 12 months from the start of flights. Evansville s top 12 revenue markets that would flow over Atlanta on AirTran each produce more than $1,500 in revenue per day each way (see Table 11). The top potential Evansville revenue market over AirTran s Atlanta hub is Atlanta, itself, which produces more than $3,400 in revenue per day each way (RDEW). Dallas/Ft. Worth ranks as Evansville s second-largest revenue market that AirTran would access with service to the Atlanta hub, generating $3,001 in RDEW in The AirTran hub at Atlanta is in a unique position to generate additional traffic and revenue to any number of Evansville s top origin and destination markets. AirTran service from Evansville Regional Airport to Atlanta on AirTran has the potential to capture as much as $35.4 million in Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

21 current airline revenue, not taking into account any revenue stimulation through lower fares and additional non-stop service. Table 11: Evansville s Top 20 O&D US Revenue Markets Over Atlanta on AirTran Calendar Year 2008 Atlanta - 1 $2,485,000 $3,404 Dallas/Ft Worth - 2 $2,190,492 $3,001 Los Angeles - 3 $2,082,690 $2,853 Las Vegas - 4 $1,954,937 $2,678 Orlando - 5 $1,857,744 $2,545 New York LGA - 6 $1,734,128 $2,376 Tampa - 7 $1,430,027 $1,959 Phoenix - 8 $1,423,896 $1,951 Seattle/Tacoma - 9 $1,385,201 $1,898 Philadelphia - 10 $1,236,484 $1,694 New York EWR - 11 Denver - 12 San Francisco - 13 Boston - 14 Washington DCA - 15 San Diego - 16 Baltimore - 17 Raleigh/Durham - 18 San Antonio - 19 Charlotte - 20 $1,129,475 $1,114,591 $1,077,647 $1,073,891 $1,072,701 $1,055,340 $1,020,438 $957,621 $803,568 $798,445 $1,101 $1,094 $1,547 $1,527 $1,476 $1,471 $1,469 $1,446 $1,398 $1,312 Annual Passengers PDEW 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Should it launch service between Evansville and Atlanta, AirTran would be competing in markets that have current fares well above the regional average. The average one way fare to Evansville markets that AirTran would connect with one-stop service over Atlanta was $211 in % higher than the current regional average of $169 each way (see Table 12). AirTran would provide much-needed competition for Evansville catchment area residents traveling to most of the market s top destinations, where fares top the regional average, such as Dallas/Ft. Worth, where the average roundtrip fare was $412 in 2008; Atlanta, itself, where the average roundtrip fare was $500 in 2008; New York LaGuardia, where the average roundtrip fare was $478 in 2008; and Orlando, where the average roundtrip fare was $438 in Average fares in Evansville markets that would naturally flow over Atlanta on AirTran would likely be roughly 20% below the overall Evansville average. Still, specific Atlanta flow markets have some of the highest average fares of all Evansville markets, and must have relief in order for the number of local passengers to begin to rebound. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

22 Table 12: Average Fares in Evansville s Top 20 O&D Passenger Markets Over Atlanta on AirTran Calendar Year 2008 One Way Average Fares Average = $211 Las Vegas - 1 Dallas/Ft Worth - 2 Atlanta - 3 Tampa - 4 Orlando - 5 Los Angeles - 6 Phoenix - 7 Baltimore - 8 New York LGA - 9 Raleigh/Durham - Seattle/Tacoma - 11 Philadelphia - 12 San Diego - 13 Washington DCA Denver - 15 Fort Lauderdale - San Antonio - 17 Fort Myers - 18 New York EWR - 19 San Francisco - 20 $147 $140 $147 $183 $206 $250 $192 $219 $180 $239 $216 $218 $192 $233 $252 $192 $202 $197 $293 $281 $0 $50 $100 $150 $200 $250 The only real chance at fare relief in markets that flow over Atlanta on AirTran is for an additional airline to offer competing service. AirTran s low fare service would go a long way towards providing enough competition to bring fares in-line with those found in other regional markets. The Airport believes there is sufficient passenger traffic and revenue that would flow over AirTran s Atlanta hub to make the service profitable. AirTran would not be forced to offer rockbottom fares in Evansville to be competitive even fares slightly higher than those found in other Midwest markets would be considered low for local Evansville travelers. The Evansville Regional Airport believes in the Evansville Atlanta market, and must develop a risk mitigation package to ensure AirTran can enter the market without major up-front investments. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

23 Letters of Support Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

24 Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

25 Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

26 Current Air Service in Evansville The Evansville Regional Airport is served by the regional affiliates of two network carriers with flights to five non-stop destinations. Delta Connection has service to its hubs at Atlanta, Cincinnati, and Detroit, while American Eagle has service to its hubs at Chicago O Hare at Dallas/Ft. Worth. Evansville will lose its twice-daily service to the Delta hub at Memphis this fall as part of the Delta-Northwest merger process. It has also lost frequency on flights to Atlanta and Cincinnati within the last several months. Despite the presence of two airlines in the market, Evansville s average fares are 38% higher than the Great Lakes regional average, largely due to the fact that each airline serving Evansville has a stranglehold on service to its strongest markets beyond its hubs. The Airport must have an additional competing carrier to truly realize the benefits of competition on average airfares. The best solution would include service on a low cost carrier, instead of service on another legacy carrier. Current Passenger Traffic the Evansville Market The Evansville Regional Airport is coming off passenger highs seen in 2005, when the Airport saw an average of almost 600 passengers per day each way (PDEW) (see Table 13). In the four years since, domestic travel has fallen precipitously in the Evansville market from 600 passengers per day each way (PDEW) to 458 PDEW a loss of 24% of passengers in Evansville. This domestic travel downturn at the Airport coincides with the significant loss of available seats, including the loss of frequencies on each and every hub route served from the Airport. By the end of 2008, Delta began to rationalize the new hub structure of the combined Delta-Northwest. In Evansville this has meant the loss of service to the former Northwest hub at Memphis. These losses in service have made connectivity beyond major hubs much more limited from Evansville, and have driven many people either to choose other airports in the region for their travel, or, in many cases, not to travel at all. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

27 Table 13: Domestic Origin & Destination Passengers and Passengers Per Day Each Way (PDEW) Calendar Year Calendar Year , , , , Annual Passengers , PDEW 300, , , , , , , ,000 Domestic passengers at the Evansville Regional Airport have dropped by 24% since 2005 (see Table 13). At the same time, the average one way fare in the market has risen by almost 38% - one of the largest such airfare increases in the Midwest. The Airport has seen a precipitous decline in available seats in the last six years, beginning just after 2003, when the Evansville market set a record for the most seats ever offered in its history just over 800,000 total available seats (see Table 14). Since that high point, Evansville has lost more than 158,000 annual available seats per year a decline of 20%. The decline is highlighted by the drop in available seats between 2005 and 2006, when airlines pulled 10% of the market s seats, removing a total of 80,000 seats in just that one year period. There is little doubt the lack of available seats is suppressing local passengers, as airlines are able to better control their open inventory with fewer seats in the market. The two airlines serving Evansville are able to charge a premium for local air service. Those airlines are unchecked, due to the lack of a low cost carrier within 125 miles of the Evansville market. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

28 Evansville grew total onboard passengers between 1999 and 2005 from 304,700 annual passengers to 486,800 annual passengers growth of 60% - as the number of seats in the market grew by 42% over the same period (see Table 14). As seats have been pulled from the Evansville market in the years since 2005, total onboard passengers have dropped by almost 159,000, or 20%. Table 14: Available Seats and On-Board Passengers Calendar Year 1999 Calendar Year 2008 Seats On-Board Passengers 801, , , ,000 Inbound/Outbound T-100 Seats and Pax 680, , , , , , , , , , , , , , , , , , , , , ,799 Despite the lack of available seats, and the subsequent high average fares higher than other airports in the region the Evansville Regional Airport generated more than ten passengers per day each way (PDEW) to 12 domestic markets, and more than six PDEW to 20 domestic markets (see Table 15). The number one market for Evansville travelers in 2008 was Chicago, which saw a total of 24,420 origin and destination trips, or 33.5 passengers per day each way. Detroit ranked second, with 15,100 O&D trips in 2008, or 20.7 passengers per day each way. Despite Detroit s strong performance in 2008, as Evansville s second largest O&D market, Delta has announced it will pull back capacity to just two weekday flights on the Detroit route, as it realigns Northwest hubs to better match capacity throughout the system. The AirTran hub at Atlanta represents the sixth largest origin and destination passenger market for Evansville travelers in 2008 (see Table 15). In 2008, Evansville generated 9,940 total O&D Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

29 passengers to and from Atlanta, or 13.6 passengers per day each way, on an average roundtrip fare of $500. Table 15: Top 20 US Origin & Destination Passenger Markets at Evansville Calendar Year 2008 Chicago, IL 24, Detroit, MI 15, New York/Newark, NY 12, Dallas/Ft Worth, TX Las Vegas, NV Atlanta, GA Tampa/St Petersburg, FL Orlando/Sanford, FL Los Angeles, CA Cincinnati, OH Phoenix/Mesa, AZ Baltimore, MD Raleigh/Durham, NC Seattle/Tacoma, WA Washington, DC Minneapolis, MN Philadelphia, PA San Diego, CA Houston, TX Denver, CO 10,790 10,660 9,940 9,740 9,700 9,510 8, , , , , , , , , , , Annual Passengers PDEW 0 5,000 10,000 15,000 20,000 25,000 It is highly likely that demand in the Evansville-Atlanta market is underrepresented by the Department of Transportation data due to the high average fares that cause many Evansville passengers to fly from other airports in the region. Non-stop service would likely lower the average fare, due to the low fare philosophy of AirTran, dramatically increasing enplanements. Airline revenues in the Evansville market declined in almost all of the Airport s top 50 markets, and in 15 of Evansville s top 20 markets in Chicago ranked as Evansville s top revenue market in 2008, with $4.6 million in total origin and destination revenue (see Table 16). However, total revenue on the route in 2007 was just over $5.1 million marked a decline of 10% in Evansville Chicago revenue, and that route was not alone in revenue declines. The Evansville Atlanta route saw a decline of 13% of its origin and destination revenue, from almost $2.9 million in revenue in 2007 to $2.5 million in revenue in 2008 (see Table 16). Similarly, Evansville Los Angeles revenue dropped by 8% from 2007 to 2008, to $2.1 million, while Evansville Las Vegas revenue dropped by 9% in the same period to $1.9 million. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

30 Table 16: Top 20 US Origin & Destination Revenue Markets Calendar Year 2008 ORD $660,540 $905 LAX $657,230 $900 IAD $563,600 $772 SAN $328,990 $451 DEN $315,260 $432 PHX $311,810 $427 MCO $280,990 $385 LAS $277,720 $380 SEA $270,930 $371 DFW $260,440 $357 SLC $221,530 $303 BOS SNA JFK $202,400 $196,410 $178,200 $277 $269 $244 Annual Revenue RDEW BWI $175,280 $240 PDX $172,240 $236 PHL $169,800 $233 BOI $147,740 $202 ONT $135,740 $186 CLT $123,220 $ , , , , , ,000 While Evansville lost ground in the amount of origin and destination revenue it generates for its airline partners, it still boasted ten markets in which airlines earned in excess of $2,000 in revenue per day each way (see Table 16). All of Evansville s top 20 revenue markets generated in excess of $1,400 in revenue per day each way in The AirTran hub at Atlanta has tremendous potential to connect the Airline with the majority of available Evansville revenue. The Atlanta hub could access 16 of Evansville s top revenue markets. Moreover, the Airport believes non-stop service will dramatically increase nonstop revenue between Evansville and Atlanta. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

31 Air Carrier Market Share in Evansville For many years, Evansville was a market that was split into thirds with American, Delta, and Northwest each carrying about a third of all origin and destination passengers. This status quo was overturned by the Delta-Northwest merger in While Evansville s 2008 air carrier passenger market share numbers seem to follow the trend, with further analysis it becomes clear that the combined Delta-Northwest will dominate the Evansville market, unless the Airport can recruit an additional airline to provide further competition. In 2008, the combined Delta/Northwest carried 64% of Evansville s passengers, while American carried 30%, and other carriers, including Cape Air, which has since left the market, carried 6% (see Table 17). The combined Delta and Northwest are reflected in Table 17 in the same color, to show how, separately, the each had a third of the Evansville market, while together they have almost two-thirds. Table 17: Passenger Market Share in Evansville by Carrier Calendar Year 2008 Others 6% American 30% Delta 33% Northwest 31% By 2010, with Delta and American capturing a combined 95% of Evansville passenger market, one can reasonably expect Evansville fares to increase even more substantially. With 2008 fares Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

32 ranking as the second highest in the Great Lakes region, while the market still had three competitors capturing at least 30% of passengers, one can imagine what fares in the market will look like when one carrier is capturing 65% of the market, and the other 30% or more of the market. The Airport must work now to bring low fare competition to Evansville, before the high fare fate of the market is sealed. The same trend is apparent in Evansville s revenue share by carrier. The combined Delta- Northwest captured 68% of origin and destination revenue at the Evansville Regional Airport in 2008, while American captured a little more than 28% (see Table 18). Table 18: Revenue Market Share in Evansville by Carrier Calendar Year 2008 Much like the passenger market share of the carriers at the Evansville Regional Airport, the revenue split is far from achieving competitive balance. Together, Delta and American captured 96% of all Evansville O&D revenue in 2008 (see Table 18). This creates a pricing environment that discourages local travel, and encourages passengers to use other carriers at other airports in the region. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

33 Air Service Deficiencies in Evansville Although the Evansville Regional Airport catchment area represents a large proportion of the population of the larger region, the Airport does not retain the number of passengers equal to its share of the regional population. In other words, the Airport is leaking a large percentage of its passengers to other airports even though those airports are not particularly close. The Evansville Regional Airport metro area had a population of 350,261 as of the latest US Census estimates (see Table 19). The larger region comprised of the metro areas of Evansville, Louisville, Indianapolis, and St. Louis has a current population of 6,646,103. Evansville s share of the regional population is 5.3%. Table 19: Regional Population IND STL SDF EVV Population Share St. Louis (STL) 2,879, % Indianapolis (IND) 2,035, % Louisville(SDF) 1,380, % Evansville (EVV) 350, % Source: US Census Share of Population of Combined EVV/STL/IND/SDF Catchment Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

34 In many markets, an Airport draws a number of passengers proportional to its overall population in the region. If that were to be the case in the Evansville market, one could reasonably expect the Airport to retain about 5% of the total passengers using all four airports in the larger region. However, in the case of Evansville, the Evansville Regional Airport does not retain anywhere close to 5% of the region s passengers. While the Evansville metro area is home to 5% of the region s total residents, its airport retains just 1.6% of the region s total origin and destination passengers (see Table 20). In the region, Evansville has the lowest share of passenger retention of any airport. In 2008, the Evansville Regional Airport saw a total of 334,600 origin and destination passengers. If the Airport had been able to retain the number of regional passengers proportional to its share of population in the region, it would have been used by another 774,413 passengers. In effect, the Evansville Regional Airport leaked these passengers to other airports in the region a leakage rate of 69.8%. The bottom line is that the Evansville Regional Airport only retains about a third of the passengers that should be expected based on its share of the regional population. Table 20: Population Share US Census Estimates 2008 O&D Passenger Share Calendar Year 2008 Louisville 20.8% Evansville 5.3% St. Louis 43.3% Louisville 16.0% Evansville 1.6% St. Louis 48.4% Indianapolis 30.6% Indianapolis 34.0% Source: US Census Share of Population of Combined EVV/STL/IND/SDF Catchment The largest beneficiary of Evansville s passenger leakage appears to be Indianapolis which is three hours away by car. Indianapolis International Airport had reverse leakage in 2008, when it drew 11% more passengers than its proportion of the regional population. While Indianapolis only makes-up 30.6% of the region s population, it boards 34% of the region s total origin and destination passengers (see Table 20). If Indianapolis retained a number of origin and destination passengers proportional to its regional population share, it would be expected to Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

35 generate 6,438,540 passengers annually. In 2008, Indianapolis saw a total of 7,148,560 O&D passengers 11% above its regional share. Many of those passengers likely came at the expense of the Evansville Regional Airport. Another way of determining passenger leakage from the Evansville market to other airports in the region is by comparing the economy of Evansville to the economies of the nearest three cities with commercially-served airports. The easiest way to gauge each catchment area s contribution to the economy of the region is to compare the gross metropolitan products (GMP) of each. A GMP is much like a gross national product an overall gauge of economic activity in an area in dollars earned. Table 21: Gross Metropolitan Regional Population Product (GMP) IND STL SDF EVV GMP Share St. Louis (STL) $125.0 Billion 43.0% Indianapolis (IND) $94.5 Billion 32.5% Louisville(SDF) $55.7 Billion 19.2% Evansville (EVV) $15.4 Billion 5.3% Sources: United States Council of Mayors, June 2008 The United States Council of Mayors reports the Evansville metro area produced a GMP of $15.4 billion in 2008, which represented 5.3% of the total gross regional product (GRP) of the area Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

36 including Evansville, Louisville, Indianapolis, and St. Louis (see Table 21). St. Louis generated the largest portion of the GRP, with $125 billion, or 43%, while Indianapolis produced a GMP of $94.5 billion good for 32.5% of the GRP. Despite producing more than 5% of the total gross regional product (GRP), the Evansville Regional Airport retains just 1.6% of the region s total origin and destination passengers (see Table 22). In the region, Evansville has the lowest share of passenger retention relative to its gross metro product (GMP), of any airport. In 2008, the Evansville Regional Airport generated a total of 334,600 origin and destination passengers. If the Airport had been able to retain the number of regional passengers proportional to its share of the GRP, it would have been used by another 779,554 passengers. In effect, the Evansville Regional Airport leaked these passengers to other airports in the region a leakage rate of 70%. The Airport only retains about 30% of the passengers that should be expected based on its share of the gross regional product. Table 22: Gross Metropolitan Product Share US Council of Mayors 2008 Louisville 19.2% Evansville 5.3% St. Louis 43.0% Louisville 16.0% O&D Passenger Share Calendar Year 2008 Evansville 1.6% St. Louis 48.4% Indianapolis 32.5% Indianapolis 34.0% Source: United States Council of Mayors, Share of GMP of Combined EVV/STL/SDF/IND Catchment There appear to be two beneficiaries of Evansville s passenger leakage: both St. Louis and Indianapolis. St. Louis experienced reverse leakage in 2008, when it drew 12.6% more passengers than its proportion of the gross regional product (GRP). While St. Louis generates 43% of the GRP, it boards more than 48% of the region s total origin and destination passengers (see Table 22). If St. Louis retained a number of origin and destination passengers proportional to its Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

37 GRP share, it would be expected to generate 9,043,462 passengers annually. In 2008, St. Louis saw a total of 10,179,650 O&D passengers almost 13% above its projected GRP share. Similarly, Indianapolis drew a larger proportion of O&D passengers than its proportion of the gross regional product (GRP). In 2008, Indianapolis drew 4.6% more passengers than its proportion of the GRP. While Indianapolis generates 32.5% of the GRP, it boards 34% of the region s total origin and destination passengers (see Table 22). If Indianapolis retained a number of origin and destination passengers proportional to its GRP share, it would be expected to generate 6,836,857 passengers annually. In 2008, Indianapolis saw a total of 7,148,560 O&D passengers more than 4.6% above its projected GRP share. It has been established that the Evansville Regional Airport is losing a significant number passengers from its catchment area. Attention then turns to the reasons why travelers are driving to other airports airports that aren t particularly close. As is the case with many other airports experiencing leakage, it all comes down to the availability of flights on the right airlines at the right times, and, perhaps even more importantly, airfares. Airlines that serve the Evansville Regional Airport offer far fewer seats available for sale in Evansville than they do at other adjacent airports in the region. Airlines offered just over 322,802 outbound available seats in the Evansville in 2008 (see Table 23). In 2008, airlines offered 678% fewer seats in Evansville than they offered at Louisville, 1,600% fewer seats than airlines offered in Indianapolis, and 2,990% fewer seats than airlines offered in St. Louis in 2008 (see Table 23). The lack of sufficient available seats for sale in the Evansville market forces many travelers to drive to other airports to access the national air transportation system. The small number of available seats at the Evansville Regional Airport in 2008 is partially responsible for the Airport s inability to retain a number of origin and destination passengers proportional to its population and gross metropolitan product. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

38 Table 23: 10,000,000 Available Outbound Seats at Regional Airports Calendar Year ,000,000 8,000,000 7,000,000 6,000,000 5,000,000 9,966,363 4,000,000 3,000,000 2,000,000 1,000, ,501,750 2,511, ,802 St. Louis, MO Indianapolis, IN Louisville, KY Evansville, IN The other major factor driving passengers to other airports in the region is the average fare in the Evansville market relative to the fares found at adjacent airports. As has been established, the Evansville Regional Airport has some of the highest average fares in the Great Lakes region with fared average fares 29% higher than the regional average. Of airports with catchment areas of 500,000 or more residents in the Great Lakes region, Evansville has the second highest fares after Cincinnati, which has long been one of the top fare markets in the country. Evansville also has the unfortunate honor of having the highest fared average fares among adjacent airports the airports it most frequently leaks passengers to. The average fare at Evansville in 2008 was $232 each way (see Table 24). Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

39 Table 24: Regional Average One-Way Airfares Calendar Year 2008 Evansville, IN $232 Louisville, KY $165 St. Louis, MO $156 Indianapolis, IN $153 Adjacent Airport Average: $158 $100 $120 $140 $160 $180 $200 $220 The average fare at the Evansville Regional Airport was 41% higher than the $165 average at Louisville; 49% higher than the $156 average at St. Louis; and 52% higher than the $153 one way average at Indianapolis (see Table 24). With fewer available seats and higher average fares, there isn t much incentive for Evansville travelers to fly from their hometown airport, other than its convenience. In many cases, the convenience does not outweigh the greater flight offerings and lower fares at other airports in the region even though the closest of those other airports is a two-and-a-half hour drive. The only proven way to bring down fares, and add seats to the Evansville market, is to recruit additional flights to additional hubs on a new airline. The proven way to recruit flights from a new airline is to offer some kind of incentive package, to reduce a carrier s barrier to entry into a new market. The Evansville Regional Airport has designed this Grant-supported project to do just that. The project eliminates a new airline s barrier to entry by providing start-up cost offsets, and marketing support, while at the same time providing revenue guarantees to ensure the route has time to win over passengers from other airlines. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

40 The Airport must develop aggressive incentive programs to recruit additional air service, and to reduce leakage to other airports. Leakage costs a community significant money in time, wasted fuel, and wear and tear on personal and company vehicles. The Airport aims to eliminate these inefficiencies by adding new airline service. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

41 Extenuating Factors Affecting Air Service The airfare disparity between the Evansville Regional Airport and other airports in the Great Lakes region is well documented. So is the fact that the Evansville market has fewer available seats than most other airports in the region. But there is another illustration of just how few seats are available in Evansville, especially when considering how large the market is: the number of seats available per capita in Of the four adjacent airports in the Evansville region St. Louis, Indianapolis, and Louisville, and Evansville, itself Evansville has the fewest available airline seats per capita. In 2008, airlines serving the Evansville Regional Airport offered just 0.92 seats per resident of the Evansville metro area (see Table 25). Evansville had 98% fewer seats per resident than Louisville, 193% fewer seats per capita than Indianapolis, and 276% fewer seats per capita than St. Louis. Table 25: Available Seats Per Capita at Adjacent Airports Calendar Year 2008 St. Louis 3.46 Indianapolis 2.70 Louisville 1.82 Evansville The number of seats per capita is an excellent data point for understanding how underserved non-hub and small-hub markets are. The data in this case illustrates how airlines have neglected the Evansville market, and forced residents of the Evansville Regional Airport s metro area to seek out air service at other airports in the region all of which are at least a two-and-a-half hour drive away. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

42 The data shows if each resident of the Evansville metro area wanted to take just one trip a year by air, there would not be enough seats available to accommodate them at their home airport. In fact, there are only enough available seats offered in the Evansville market for 92% of catchment area residents to take one trip per year, despite the fact the average resident of the United States takes 2.1 airline trips per year. This data shows there is not a sufficient base of available seats at the Evansville Regional Airport to accommodate average demand. With so few available seats in the Evansville market, it is no surprise that the Airport s enplanements are well under the national average for origin and destination passengers per capita. In 2008, the Evansville Regional Airport generated just 0.96 passengers per residents of its metro area - 118% fewer than the national average of 2.1 passengers per capita (see Table 26). Table 26: Origin & Destination Passengers Per Capita at Adjacent Airports Calendar Year 2008 St. Louis Indianapolis Louisville 2.43 Evansville 0.96 National Average: The Evansville Regional Airport generated the fewest passengers per capita of all adjacent airports in 2008, producing 153% fewer origin and destination passengers per capita than Louisville, 266% fewer O&D passengers per catchment area resident than Indianapolis, and 268% fewer O&D passengers per capita than St. Louis (see Table 26). All other airports in the immediate region generated more passengers per capita than the national average. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

43 Although it may appear that the Evansville market doesn t produce as many O&D passengers as other markets, that is not necessarily the case. The likely reality is that there aren t enough seats to accommodate the demand for travel in the Evansville market, so many of those who live in the Evansville Regional Airport metro area are forced to drive to other airports, such as Louisville, to access the national air transportation system. Airlines serving Evansville simply don t offer enough seats to satisfy local demand. And because, for so long, the Evansville market has been underserved, Evansville residents are conditioned to expect to have to drive to other airports in the region to catch flights. Moreover, there is little incentive for Evansville s incumbent airlines to offer additional flights, as they can fill the planes they fly into and out of the market, while earning a fare and yield premium for their scarce product. Without any significant competition between the two network carriers serving the Evansville Regional Airport there is little pressure to bring fares in-line with those found at other airports in the region. The lack of competition is evidenced by each airlines market share in Evansville s top 50 origin and destination passenger markets. The combined Delta-Northwest has at least 50% of the market in 43 of Evansville s top 50 markets (see Table 27). Together, Delta-Northwest and American have combined O&D passenger market share of more than 90% in 48 of Evansville s top 50 markets (see Table 27). When all of Evansville s passenger markets are taken into account, Delta-Northwest and American have a combined market share of 94%. This combined market share makes for a virtual duopoly at the Evansville Regional Airport, forcing fares up, and causing many passengers to seek more affordable flights at other airports in the region. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

44 Table 27: Airline Share of Passengers at Evansville's Top 50 Domestic O&D Passenger Markets Calendar Year % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Chicago Detroit New York/Newark Dallas/Ft Worth Las Vegas Atlanta Tampa/St Petersburg Orlando/Sanford Los Angeles Cincinnati Phoenix/Mesa Baltimore Raleigh/Durham Seattle/Tacoma Washington Minneapolis Philadelphia San Diego Houston Denver Fort Lauderdale San Antonio Indianapolis Fort Myers San Francisco Boston Pittsburgh Norfolk Miami Delta Northwest American Commuters Others New Orleans Providence Kansas City Jacksonville Hartford Orange County Austin Charlotte Portland, OR Memphis San Jose Tucson Salt Lake City Albany Sacramento West Palm Beach Harrisburg Savannah Omaha Honolulu Sarasota/Bradenton Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

45 There is a remedy for the current duopoly in the Evansville. It begins with the recruitment of a low cost carrier that can provide additional competition. The Airport believes increased competition will lead to lower fares, through the addition of more available seats, more flights, and service that is more likely to compete on price and convenience with that found at other regional airports. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

46 Availability of Alternate Airports The Evansville Regional Airport is relatively isolated as the only commercially-served airport within a two hour drive. The closest alternate airport with scheduled airline service from Evansville is Louisville, which is 99 miles away (see Table 28). The drive time to Louisville is two hours and ten minutes, not taking into account traffic conditions. Table 28: Adjacent Airports With Current Air Service IND CVG STL EVV SDF Mileage Drive Time Evansville to Louisville (SDF) 99 2:10 Evansville to Indianapolis (IND) 174 3:13 Evansville to St. Louis (STL) 162 3:03 Evansville to Cincinnati (CVG) 172 3:18 Lambert St. Louis International Airport is the next closest to Evansville, at 162 miles away, or a drive of just over three hours (see Table 28). While most leakage likely occurs to flights at Louisville and St. Louis, some Evansville travelers drive as far away as Indianapolis and Cincinnati to access the national air transportation system. The drive to each of those cities is long, arduous, and difficult in the frequent bad weather the region experiences. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

47 Use of Local / Federal Funds Marketing and Advertising The Evansville Regional Airport proposes to spend $50,000 in funds on marketing and advertising promotions in support of new service. The goal is to increase enplanements and usage through targeted regional campaigns. Startup Cost Offsets The Airport proposes to use a small portion of the funding provided under this proposal to pay for start-up costs in support of new service introductions. Money will be reimbursed to the new carrier, from the revenue guarantee portion of this proposal, as invoices are submitted detailing the work performed to offset the acquisition of necessary equipment to begin service (items include carts, tugs, power units, computer equipment, cabling, software, etc.). Revenue Guarantee The Airport proposes to make available at least $500,000 in funds for a revenue guarantee to the new carrier, to cover start-up losses that may occur during the first twelve months of service. Subject to negotiation, payments will be made to the new carrier quarterly, when income derived from passengers and cargo is less than agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used. Additional Costs As part of this program, the Airport understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. In addition, the Evansville Regional Airport expects to incur some expenses in the recruitment of a new airline. These additional costs will come from the revenue guarantee portion of the funding. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

48 Public / Private Partnerships A number of local partners will be working with the Evansville Regional Airport to promote, support, and market the new service. Contacts will be made to all Evansville members of chambers of commerce and similar organizations, and those with an interest in growing the economic base of the community through local business growth, attraction of new businesses and the promotion of tourism and visitor traffic via the airport. Vanderburgh County Vanderburgh County and the City of Evansville are the major government entities overseeing the Evansville Regional Airport. The Airport is governed by the Evansville-Vanderburgh Airport Authority District, and its Board Members. This Board is made up of community leaders from major local business organizations. The Airport Board will oversee the development of this grant application, and administer the funds awarded. City of Evansville The City of Evansville is one of the biggest supporters of bringing additional air service to the local Airport, as they realize how vital the Airport is to the growth of the entire region that it serves. City leaders continually work with to develop and support new service initiatives. Chamber of Commerce of Southwest Indiana The Chamber of Commerce of Southwest Indiana is a totally independent non-profit corporation (not affiliated with government or any other agency) that is uniquely able to serve the needs of the business community in Evansville. The Chamber is dedicated to just one goal: the economic health of the area and the prosperity of its members. The Chamber s philosophy is simple: more business is good for existing business and an attractive and viable city will attract more business activity. The Chamber also believes additional economic activity will benefit every business person and resident in the region. The Chamber s work toward implementing this philosophy has been successful because of a powerful combination of active, motivated volunteer business leaders supported by a highly regarded professional staff. Together, the volunteer leaders and the professional staff do what no service Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

49 club, government agency nor individual business could do: enhance and promote Evansville as a place to do business and enjoy life. Moreover, the Chamber believes enhanced air service is essential to the interconnectivity of businesses, and is an essential part of any community s plan for economic growth. Economic Development Coalition of Southwest Indiana The Economic Development Coalition of Southwest Indiana is a private partner in this application. The Coalition provides a number of in-kind services. Coalition funding will commit to a program of viral marketing through blasts to all members and word-of-mouth advertising. The Coalition also contributes mailers to area businesses explaining the benefits of new and additional air service. The Coalition will have a financial stake, by providing matching funds, for any new air service in the region. Air Service Advisory Groups The Evansville Regional Airport is governed by the Evansville-Vanderburgh Airport Authority District Board Members. This Board is made up of a number of community leaders from different Evansville government bodies and major business organizations. The Airport Board members oversaw the development of this grant application, and will oversee and administer the funds awarded. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

50 Local Air Service Development Efforts The Evansville Regional Airport has been one of the more aggressive regional airports in the country in terms of its air service development efforts over the last decade. The Airport has had success in recruiting several new routes, including its route on American Eagle to Dallas/Ft. Worth, with is still in operation today. This Grant does not represent a new effort for the Evansville Regional Airport. It is the continuation of more than a decade of work to bring a low cost carrier to the community. The Airport has been in continual talks with AirTran for the last three years, meeting with leaders from the carrier at least annually. In 2009, the Airport has met with AirTran leaders no fewer than three times in formal settings, and several more times in informal settings. The Airport also meets with its incumbent and interested carriers on, at least, an annual basis. In the last month, Evansville Regional Airport leaders have met with planners from both United Airlines and ExpressJet. The Airport realizes the importance of constant work to improve the air service offerings in the community and the region, and spends considerable time and money working to communicate with airlines and make the case for the market. In-kind Services from the Community The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services. Vanderburgh County City of Evansville Chamber of Commerce of Southwest Indiana Economic Development Coalition of Southwest Indiana Evansville Convention and Visitors Bureau Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

51 Performance Measures The success of the program will be based on three variables. The first measure of success will be the recruitment and retention of a new airline to the Evansville market. When new service is initiated, the first measure of success will be met. The Airport will judge the second measure of success by the increased number of enplanements. Finally, the third measure of success will be based on how much average airfares charged in the community have gone down. The measurement of enplanements will include a monthly comparison, once the program begins, to past enplanements numbers. The measurement of airfares will be derived from US DOT OD1A reports. Financial Controls As the sponsor, the Evansville Regional Airport and its governing body, the Evansville Vanderburgh Airport Authority District, will be the responsible parties for all fiscal matters and DOT reporting requirements. The Authority is established as a public governing body. As a public entity the DOT can be assured that proper financial controls are in place to guarantee that the DOT s Grant will be used in accordance with any subsequent agreement. The Evansville Regional Airport understands that the Grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant request. Return on Investment The Airport has developed a cost effective and achievable strategy to add new service, increase enplanements, and lower airfares at the airport. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The increased competition, and access to lower airfares with increased competition, by adding service on a new low fare airline, is in line with the major goals of the Small Community Air Service Development Program. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

52 Approximately $50,000 of the $550,000 in cash is committed to being spent. The remaining $500,000 in cash available for the revenue guarantee portion of the grant may never be expensed. DOT Exit Strategy The Evansville Regional Airport has developed this proposal as a one-time grant. While the initial startup costs will be paid for out of other airport funds, the advertising and marketing program will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will also be in place for twelve months, with two additional twelvemonth periods available for negotiation. It is projected that the service will be financially selfsustaining within the second twelve months of service. Alternate Plan If, for some unforeseen reason, service is not commenced in a timely manner by AirTran Airways on the Atlanta route, the Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program to help AirTran launch service on another route it deems more likely to see success. Among the alternate AirTran routes covered under this proposal would be Orlando, Baltimore, Milwaukee, Ft. Lauderdale, and Tampa/St. Petersburg. If AirTran declines to enter the Evansville market, the Airport will work to recruit another carrier interested in beginning service to the community that can provide access to a new hub. Among the additional target airlines would be United, with service to Chicago O Hare and/or Washington Dulles; Continental, with service to Cleveland, Newark, and/or Houston; or US Airways with service to Charlotte. The Airport would also recruit other airlines, depending on their ability to compete and to lower local airfares. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

53 Evansville Regional Airport Background Evansville Municipal Airport (Evansville Regional Airport) was originated and financed by a $190,000 Evansville city bond issued in The bond provided for the purchase of 260 acres of land along U.S. Highway 41 and funded the airport's initial development. Airport construction between the years included a small terminal, weather bureau, hangar, transformer building with a light beacon, two 100 foot x 1,200 foot asphalt runways, boundary lights, grading, and drainage work. On October 1928, Interstate Airlines established Evansville as a stop for their Chicago-Atlanta and St. Louis-Louisville routes. Capital Air Corporation also initiated daily passenger service at Evansville Municipal Airport in In 1942, war leases at Evansville Municipal Airport began with Republic Aviation in May and the U.S. Government in August. During World War II, the airport was an operations base for ferrying aircraft detachments. In September 1942, Republic Aviation completed the first Thunderbolt (P-47) aircraft. Some 6,075 Thunderbolt aircraft were manufactured in Evansville by Republic and delivered throughout the country and to overseas battlefront. The past eighty-one years at Evansville Regional Airport has provided Tri-State residents with a local airport that provides convenience and quality services. Today, Evansville Regional Airport is an important component in the nation s aviation industry that offers over forty flights a day to destinations around the country. With a focus on innovation and customer service, Evansville Regional Airport will continue to provide services that meet the business and non-business air traveler needs and be an effective economic engine and job producing catalyst for the community. Evansville Regional Airport Aerial Photo Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

54 Evansville Community Information Evansville is the third-largest city in the U.S. state of Indiana and the largest city in Southern Indiana. The Evansville Regional Airport service is home to almost 900,000 people, who all live within a one hour drive of the Airport. The city is the county seat of Vanderburgh County and the regional hub for the Illinois-Indiana-Kentucky Tri- State Area. Settled in 1812, the city is situated on a gentle horseshoe bend on the Ohio River and often referred to as "River City." One of the most popular attractions in the region is Casino Aztar, the first riverboat casino in the state of Indiana. Evansville is also home to both the University of Evansville and the University of Southern Indiana. What s New in Evansville The broad economic base of the region has helped to build an economy, which is known for its stability, diversity, and vitality. In 2004, Evansville was named an "All-America City" by the National Civic League and in 2008, it was voted one of the best cities in the country by the readers of Kiplinger. Evansville enters the 21st Century as a center for advanced manufacturing, warehousing and distribution, retail trade, health care, finance, and business services. The city is becoming known for its growing number of corporate headquarters and regional offices, with new investment from headquartered companies such as American General Finance, Atlas Van Lines, Shoe Carnival, Mead-Johnson Nutritionals, and the Vectren Corporation. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

55 o Evansville leaders have approved the construction of a new downtown multi-use arena, which will seat 12,000 for concerts and 11,000 for sporting events. The $127 million project is being funded through bonds and a hotel tax however, it will not use local tax sources for construction or operation. Construction is scheduled to begin by the summer of 2009 and the arena is slated to open in late 2011, helping to bring major concerts and sporting events to the community, and drawing thousands of visitors to the area each year. The arena will also be home to the University of Evansville basketball team. o The Long-awaited I-69 construction begins connecting Evansville. Attracting businesses that would bring jobs to Southwestern Indiana is a strong rationale for building Interstate 69. That is what some of the highway's supporters trumpeted at an I-69 groundbreaking ceremony. Others cited improvements in traffic safety and a decrease in travel times from having a direct link between Evansville and Indianapolis. "It's going to make Evansville part of Indiana now instead of part of Kentucky. I talk to companies from St. Louis or from Cincinnati or Louisville (Ky.), and they hesitate to build in this area because of the expense of transporting their materials and their product to and from this area. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

56 o New American General Headquarters nears completion. All the steelwork is now up and workers are starting on other aspects of constructing the 170,000 square-foot building, which AGF will own. AGF's $35 million expansion project aims to relocate AGF employees presently based in leased space in Eagle Crest on Evansville's East Side to the Downtown campus. "It seems we never have enough office space," Roberts said, sighing over the prospect of the new additional space. The current employment totals around 1,200. Over the next five years, the new building is expected to add 150 full-time positions to the Downtown. Evansville Economic Overview Evansville is the regional center for a large trade area in Indiana, Kentucky, and Illinois. The broad economic base of the region has helped to build an economy which is known for its stability, diversity, and vitality. Major industries today include manufacturing, warehousing and distribution, retailing, health care, and finance and business services. In 2007 the metropolitan area was ranked 88th in the nation in terms of growth and economic impact. Corporate headquarters include Accuride, Atlas Van Lines, Berry Plastics, Mead Johnson, Old National Bank, Shoe Carnival, and Vectren. The city is also home to American General Finance, a division of AIG. Major manufacturing operations in and around the city include AK Steel in Rockport, Alcoa in Newburgh, Toyota in Princeton, and Whirlpool Corporation in Evansville. The city's economy was expanded by Casino Aztar's entertainment facility in The main complex consists of a 2,700 passenger riverboat casino, a 250-room hotel, a 1,660 vehicle parking garage, and pavilion housing pre-boarding facilities, retail shops, restaurants, and lounge area. An adjacent entertainment district features a 100- room boutique hotel and additional restaurants. The City of Evansville offers a unique pro-business tax structure for companies locating inside the Evansville Urban Enterprise Zone. Established in 1983 as one of only six enterprise zones in the State of Indiana, the Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

57 2.1-square-mile Evansville Urban Enterprise Zone offers inventory tax credits and other tax credits to eligible businesses. While Money Magazine reports the annual average family purchasing power for a family in Topeka in 2008 was $70,100, Topeka offers a much lower cost of living than most other cities of equal or greater size. In the same report, Money reports the national average cost of a home in 2006 was $260,000, while the average home in Topeka sold for just $99,000. Thus, the annual family income of $49,600 in Evansville goes much further in southwest Indiana than it would in most other comparable cities. The City s location, near the geographic center of the US, makes it the perfect location for almost any industry. Evansville s economy is home to a number of large manufacturing facilities of major corporations, such as Toyota, Whirlpool, ALCOA, AK Steel, GE Plastics, and Bristol-Myers Squibb, all of which produce significant business travel. Top Employers in Topeka MSA, 2009 Toyota 4,700 Deaconess Health System 4,200 St. Mary s Medical Center 3,317 Koch Enterprises 3,300 Evansville-Vanderburgh School Corporation 3,043 Industrial Contractors, Inc. 2,500 Alcoa 2,150 Whirlpool 2,083 Bristol Myers Squibb/Myers-Johnson 2,000 University of Southern Indiana 1,929 Black Beauty Coal Company 1,753 Vectren 1,750 TJ Maxx 1,540 GE Plastics 1,440 Berry Plastics 1,400 American General Finance 1,400 Old National Bancorp 1,200 Casino Aztar 1,150 Warrick County School Corporation 950 Guardian Automotive 650 Fifth Third Bank 650 Shoe Carnival 600 Atlas Van Lines 436 Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

58 Higher Education in the Evansville Area The city is home to two major universities, the University of Evansville and the University of Southern Indiana (USI). The Indiana University School of Medicine also has a presence in the city with the Evansville Center for Medical Education on the campus of USI. Other campuses in the city include Ivy Tech Community College, ITT Tech, Harrison College, and Oakland City University's School of Adult and Extended Learning. The main campus of Oakland City University is located just north of the city in Oakland City, Indiana. The Evansville Area is Home to Two Major Universities and Four Colleges and Technical Schools, With Current Enrollment Topping 13,000 Students University of Evansville The University of Evansville (UE) is a small, private university with approximately 3,050 students located in Evansville, Indiana. Founded in 1854 as Moores Hill College, it is located near the interchange of the Lloyd Expressway and U.S. Route 41. It is affiliated with the United Methodist Church. The University features liberal arts and sciences degrees, most with strong cooperative learning opportunities both on and off campus. In the Academic school years, the University of Evansville captured a title in the Concrete Canoe over perennial winners, The University of Wisconsin-Madison. The winning canoe, named Sauske, will compete at the national convention in Alabama. The American Society of Civil Engineers at UE also claimed top honors at the same conference competition. The ASCE chapter at UE has been increasing their placing in their region since 2004, steadily increasing in the ranks despite hard competition from renowned engineering schools like Purdue and University of Wisconsin-Madison. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

59 University of Southern Indiana The University of Southern Indiana (USI) is a public university in Evansville, Indiana. This publicly funded institution is rapidly growing and is the fastest growing comprehensive state university in Indiana. Fall enrollment figures in 2004 broke 10,000 students for the first time. The University boasts a modern 300-acre suburban campus situated within wooded rolling hills. In October, 2006, the University completed a master plan that provides the framework to double the size of the school and support a campus of over 20,000 students. A new building for the School of Business, opened in 1990, was named the Orr Center in honor of Governor Robert Orr, an Evansville native. Since then, four other large buildings have been built for the Liberal Arts, Nursing, and Education divisions, as well as a large fitness center for students and faculty. The number of classrooms has more than doubled since the campus was first opened, but the University is still planning for continued growth. Construction is complete on the David L. Rice Library, which opened in the fall semester of The building is five stories and features computer access, study tables/rooms, and copy machines located on each floor. With the growth of extracurricular organizations, the administration chose to convert the old library building into an extension of the University Center and is connected by an elevated walkway. A new Business and Engineering Center is being built along with several other construction and renovation projects. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

60 Evansville Tourism Whatever your age or your definition of fun is, you are sure to have a great time while you are a guest in Evansville thanks to our exciting, eclectic mix of attractions. Take a spin with Lady Luck at Casino Aztar. Take a stroll along our lovely Riverfront. Take a step back in time at the Reitz Home Museum or Angel Mounds State Historic Site. From fine arts to go karts, from golf links to skating rinks, and from shopping malls to dance halls, Evansville has it all! Performing arts The Victory Theatre is a vintage 1,950-seat venue that is home to the Evansville Philharmonic Orchestra. Each year, the orchestra presents a seven-concert classics series, four double pops performances, and special event concerts, as well as numerous educational and outreach performances. The theater also hosts local ballet and modern dance companies, theater companies, and touring productions. A wide variety of concerts, plays, and other special events are held at the 2,500-seat auditorium at The Centre downtown. Outdoor concerts and special events are held at the 8,500-seat Mesker Amphitheatre on the city's west side. Larger concerts, sporting events, and special events are held at the 12,500-seat Roberts Municipal Stadium on the city's east side. The New Harmony Theatre is a professional theatre produced by the University of Southern Indiana and operating under an agreement with the Actors Equity Association. Evansville Civic Theatre is Southern Indiana's longest running community theater, dating from the 1920s when the community theater movement swept across the country. From its humble beginnings at the old Central High School auditorium, Evansville Civic Theatre has had many home Soldiers and Sailors Memorial Coliseum, Bosse High School, the Rose Room of the McCurdy Hotel, the Elks Ballroom, and the Evansville Museum of Arts and Sciences. In 1974, Evansville Civic Theatre acquired the historic Columbia Movie Theater as its permanent home. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

61 Annual festivals The West Side Nut Club Fall Festival is a street fair held in the area west of downtown Evansville. It is held on the first full week of October and draws nearly 150,000 people. The main attraction of the festival is the food, with offerings of standards like elephant ears and corn dogs to the more unusual, such as chocolate-covered crickets, brain sandwiches, and alligator stew. Paul Harvey once remarked that only Mardi Gras in New Orleans is larger than the Fall Festival. The historic Reitz Home Museum each July the city plays host to the Evansville Freedom Festival. The United States Navy's Blue Angels have been an added attraction in recent years along with the Canadian Forces Snowbirds. Evansville also hosts Thunder on the Ohio each August. Thunder on the Ohio is a hydroplane boat race in the American Boat Racing Association season. The race is typically held in August on the Ohio River in downtown Evansville. Evansville has hosted Thunder on the Ohio since The winner of Thunder on the Ohio receives the Four Freedoms Trophy, which is named after the nearby Four Freedoms Monument, which rests along the Ohio River. The race has frequently been broadcasted on ESPN and the SPEED television network. On the last weekend of August, the popular Frog Follies takes place, when over 4,000 street rods converge on the Vanderburgh County 4-H fairgrounds north of the city. Museums Angel Mounds State Historic Site is nationally recognized as one of the best-preserved prehistoric Native American sites in the United States. From 1100 to 1450 A. D., a town near this site was home to people of the Middle Mississippian culture. Several thousand people lived in this town protected by a stockade made of wattle and daub. Because Angel Mounds was a chiefdom (the home of the chief), it was the regional center of a large community. The Evansville Museum of Arts, History and Science is home to one of southern Indiana's most established and significant cultural centers. It holds the Koch Planetarium, the oldest in Indiana. Also on the campus is the Evansville Museum Transportation Center, which features Evansville Regional Airport Small Community Air Service Development Grant Application August 28,

62 transportation in southern Indiana from the latter part of the Nineteenth Century through the mid-twentieth Century. The Reitz Home Museum is Evansville's only Victorian House Museum. It is noted as one of the country's finest examples of Second French Empire architecture. It was placed on the National Register of Historic Places in In October 2005, the USS LST 325 moored in Evansville and turned into a museum (USS LST Ship Memorial) in recognition of the city's war effort. During World War II, Evansville produced 167 LSTs (and 35 other craft), making it the largest inland producer of LSTs in the nation. The USS LST 325 is the last navigable tank landing ship in operation. The Children's Museum of Evansville opened its doors to the public in September The museum is the result of two years of planning and constructed in the historic Central Library downtown. The Art Deco building is listed on the National Register of Historic Places. The museum offers visitors three floors of interactive exhibits and galleries. Sports Evansville offers modern sports facilities for both soccer and ice skating events. The Goebel Soccer Complex is a $3.4 million project that opened in the spring of 2004 on 70 acres (280,000 m2) of land and features nine Olympic-size irrigated Bermuda grass fields and one Olympic-size AstroPlay turf field. Additionally, the EVSC Double Cola Fields provides twin soccer fields and stadium seating for high school regular season and postseason matches. Swonder Ice Arena is a $12.5 million double-rink facility that opened in the fall of 2002 and features a fitness center, a skate park, and party rooms. The Evansville Otters minor league professional baseball team has played at historic Bosse Field in the Frontier League since Bosse Field opened in 1915 and is the third oldest baseball stadium still in use in the United States and was the principal filming location for the movie A League of Their Own. The Evansville IceMen minor league professional ice hockey team has played at Swonder Ice Arena in the All American Hockey League since The IceMen have accepted a membership into the IHL, and will begin playing there within 2 years. Evansville Regional Airport Small Community Air Service Development Grant Application August 28,