11 June 2012

Tupelo Regional Airport

Tupelo, MS

Proposal for the Small Community Air Service Development Program 

Docket DOT-OST-2012-0069

Sponsor: Tupelo Regional Airport, Tupelo, MS

Joshua Abramson, Airport Executive Director

Congressional Code: MS-001

Dun & Bradstreet Number: 101809887

Tax Identification Number (EIN): 64-0631825
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

2

TABLE OF CONTENTS

SECTION PAGE

INTRODUCTORY LETTERS OF SUPPORT................................................................................................................................ 3

APPENDIX C - SUMMARY INFORMATION ............................................................................................................................ 5

GRANT PROPOSAL AND MAJOR OBJECTIVES....................................................................................................................... 7

AIR SERVICE AREA FOR TUPELO........................................................................................................................................... 7

Toyota Motor Manufacturing, Mississippi, Inc ........................................................................................................... 7

Other Tupelo Businesses............................................................................................................................................. 8

TUPELO’S CURRENT AIR SERVICE & TRENDS........................................................................................................................ 8

Current Scheduled Air Service..................................................................................................................................... 8

Background on Essential Air Service Subsidy .............................................................................................................. 9

An Analysis of Air Service Needs or Deficiencies....................................................................................................... 10

TUPELO AIRPORT’S STRATEGIC PLAN: ............................................................................................................................... 11

Implementation Timeline.......................................................................................................................................... 12

Community Development Foundation Partnership .................................................................................................. 13

Marketing Material ................................................................................................................................................... 13

Performance Measures and Financial Controls ........................................................................................................ 14

LEGAL SPONSOR................................................................................................................................................................. 14

CONCLUSIONS.................................................................................................................................................................... 14

LETTERS OF SUPPORT ........................................................................................................................................................ 16
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

3

INTRODUCTORY LETTERS OF SUPPORT
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

4
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

5

APPENDIX C - SUMMARY INFORMATION

A. Applicant Information: (Check All That Apply)

 Not a Consortium  Interstate Consortium  Intrastate Consortium

 Community now receives EAS subsidy

 Community (or Consortium member) previously received a Small Community Grant

If previous recipient: Date of grant: __October 2005_ Expiration date of grant: __August 2007_

Federal Funds Requested: __$475,000 for start-up, personnel, new carrier launch______________

Carrier(s) Service Obtained: ____Delta Airlines___________________________________________

Destination(s) Served: _____ATL______________________________________________________

B. Public/Private Partnerships: (List Organization Names)

C. 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)

D. Existing Landing Aids at Local Airport:

 Full ILS  Outer/Middle Marker  Published Instrument Approach

 Localizer  Other (specify)

PUBLIC PRIVATE

1. Tupelo Regional Airport 1. Community Development Foundation

2. City Of Tupelo
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

6

E. Project Cost: Do Not Enter Text in Shaded Area

F. 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) for each.

A donation of expertise on marketing material and dissemination strategy has been provided by a 

local marketing professional firm. The Airport staff is stretching each dollar by shopping out 

publishing and production. The Airport will utilize its staff to manage the purchasing of all print and 

other media distribution.

G. Is Application Subject To Review By State Under Executive Order 12372 Process?

 This application was made available to the state under the Executive Order 12372 Process for 

review on (date) _____________.

 Program is subject to E.O. 12372, but has not been selected by the state for review.

 Program is not covered by E.O. 12372.

H. Is The Applicant Delinquent On Any Federal Debt? 

 No  Yes (explain)

LINE DESCRIPTION SUB TOTAL TOTAL 

AMOUNT

1 Federal amount requested $ 75,000

2 State cash financial contribution $ 0

Local cash financial contribution 

3a Airport cash funds $ 0

3b Non-airport cash funds $ 25,000

3 Total local cash funds (3a + 3b) $ 25,000

4 TOTAL CASH FUNDING (1+2+3) $ 100,000

In-Kind contribution

5a Airport In-Kind contribution** $ Various

5b Other In-Kind contribution** $ Various

5 TOTAL IN-KIND CONTRIBUTION (5a + 5b) $ Various

6 TOTAL PROJECT COST (4+5) $ 100,000
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

7

GRANT PROPOSAL AND MAJOR OBJECTIVES

Grant Proposal Amount: $75,000.00

Major Objectives: (1) Boost Airport performance to the level that an Essential Air 

Service subsidy is no longer required.

(2) Develop a new campaign which will market Silver Airways for 

Tupelo Regional Airport, putting the emphasis on their upcoming 

changes to the air service being provided and customer convenience.

(3) Introduce the “FLY LOCAL” commitment to local businesses that 

educates on how they may support Tupelo’s air service.

(4) Reduce passenger leakage through an aggressive marketing 

campaign to publicize and market Tupelo’s air service area at a better 

dollar value by flying locally rather that driving to Memphis, TN.

AIR SERVICE AREA FOR TUPELO

The Tupelo Regional Airport air service area has a population of approximately 345,482, average 

per capita income of $17,389, and average household income of $44,900. These are 2009 estimates 

for the specific census tracts 

illustrated in the Air Service Area. The

2010 U.S. Census data shows 

population growth of one percent 

between 2000 and 2010 within 

Tupelo city limits. However, with the 

opening of Toyota’s manufacturing 

plant in nearby Blue Springs, 

Mississippi (discussed below), a 

significant population increase is 

likely. A similar situation occurred 

when the population of Georgetown, 

Kentucky, more than doubled after 

Toyota opened its plant there in 

1988.

TOYOTA MOTOR MANUFACTURING, MISSISSIPPI, INC

In Tupelo’s Air Service Area, the largest economic development project and expected major driver 

of demand for air transportation is the new Toyota Motor Manufacturing, Mississippi, Inc., plant in 

Blue Springs, Mississippi. This facility is located approximately 12 miles northwest of the Tupelo 
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

8

Regional Airport, along Highway 78. The plant, which represents a total investment of over $1.3 

billion, has begun annual production at a maximum capacity of approximately 150,000 Corolla 

sedans. Toyota is expected to employ approximately 2,000 people. An additional 17,000 indirect 

and direct jobs are estimated to be added to northeast Mississippi through a general trickle-down 

effect.

Toyota’s presence in the region is expected to drive demand for air service access to both 

Cincinnati (nearest large airport to the Georgetown, Kentucky, facility) and Los Angeles (nearest 

major airport to Toyota’s US headquarters in Torrance, California).

Other Tupelo Businesses

Tupelo focuses on the future, allocating resources for business and job development. In the past 

several years, Tupelo has successfully created thousands of new jobs and increased wages for its 

hard workers. North Mississippi Health Services is the largest rural hospital in North American and 

employs 4,286 medical professionals. They are joined by two regional banks, BancorpSouth and 

Renasant Bank, headquartered in downtown Tupelo. Other employers include: Lane Furniture 

Industries, Cooper Tire and Rubber Company, MTD products, Philips Day-Brite, Hancock Fabrics, 

and many more top notch businesses that require dependable air service.

TUPELO’S CURRENT AIR SERVICE & TRENDS

Current Scheduled Air Service

Air service at Tupelo Regional Airport is currently operated by Pinnacle Airlines dba Delta 

Connection providing an average of 12 weekly departure flights to Memphis, Tennessee on a 50-

passenger CRJ-200. The May 2012 schedule is illustrated below.

Departs Departure 

time

Arrives Arrival 

Time

Operated by Flight 

#

Stops Frequency

MEM 2:16p TUP 3:03p Pinnacle DBA Delta Connection 4004 0 MTWRT__

MEM 7:30p TUP 8:13p Pinnacle DBA Delta Connection 3786 0 MTWRF__

MEM 5:01p TUP 5:45p Pinnacle DBA Delta Connection 3786 0 _______SS

TUP 5:16a MEM 8:59a Pinnacle DBA Delta Connection 4071 0 _______S_

TUP 811:a MEM 8:54a Pinnacle DBA Delta Connection 4071 0 ________S

TUP 7:11a MEM 7:54a Pinnacle DBA Delta Connection 4071 0 MTWRF__

TUP 5:35p MEM 6:14p Pinnacle DBA Delta Connection 3906 0 MTWRF__
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

9

Background on Essential Air Service Subsidy

Delta’s service at Tupelo Regional Airport is subsidized under the Essential Air 

Service (EAS) program of the US Department of Transportation. The carrier 

receives an annual subsidy of $921,818.30.

Tupelo is relatively new to the program having previously been served on an unsubsidized basis. 

However, on November 15, 2009, Mesaba Airlines (at the time a wholly owned subsidiary of Delta 

and since sold to Memphis-based Pinnacle Airlines Corporation) notified the US Department of 

Transportation of intent to discontinue service at Tupelo. Following Mesaba’s notification, DOT 

issued a Request for Proposals to provide replacement service, with or without subsidy. Two were 

received: Mesaba (Delta Connection) and Seaport Airlines. The submittal of Seaport Airlines was 

dismissed as it proposed service with aircraft seating 9-passengers and the Essential Air Service 

passengers unless a community waives that right. The Delta submittal initially requested subsidy of 

$1,061,068 but after negotiations, US DOT staff agreed to the lower level that is currently in effect.

In July of 2011, Delta announced that they are retiring their fleet of Saab 340 aircraft and requested 

to terminate air service in 24 communities including Tupelo.

"While Delta would prefer to continue serving these communities, the new reality of 

mounting cost pressures faced by our industry means we can no longer afford to provide 

this service. As we continue to strengthen our business, Delta is retiring the Saab 

turboprops and some 50-seat jet aircraft, which will hinder the financial viability of serving 

these smaller markets."

Since this announcement DOT Office of Aviation Analysis has issued eight orders extending service 

obligation to Pinnacle DBA Delta Connection and requested three rounds of proposals from airlines 

interested in providing Essential Air Service. In April, 2012 two were received: Silver Airways, 

formerly Gulfstream International,

and Air Choice One. A new order 

has been written by DOT on May 

22, 2012, selecting Silver Airways 

to provide Essential Air Service 

(EAS) at Muscle Shoals, Alabama;

Greenville, Laurel/Hattiesburg, 

and Tupelo, Mississippi; and 

Greenbrier/White Sulphur Springs, 

West Virginia (Lewisburg), using 

34-passenger Saab 340 aircraft. Muscle Shoals and Laurel/Hattiesburg will each receive 12 weekly 

non-stop round trips to Atlanta-Hartsfield International Airport (Atlanta) while Greenville and 

Tupelo will receive 18 weekly round trips over a Greenville-Tupelo-Atlanta routing. 
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

10

An Analysis of Air Service Needs or Deficiencies

The past few years have been a disorganized schedule for Tupelo’s customers to travel. This

marketing grant is critical to boost airport performance and education to our local communities 

regarding the latest change to Silver Airways anticipated to begin in October 2012. 

Since the Delta/Northwest merger in 2008, changes at the Tupelo Regional Airport have had the 

general public feel like they are flying through a fog and not knowing which air carrier will be here 

and for how long. The latest changes to Silver need to be marketed through very strong advertising. 

With funding from this marketing grant, the airport plans to implement new ways to educate and 

familiarize the community with Silver Airways and their practices, such as ticketing services, 

schedules, and friendly agents. The airport provides affordable parking, travel time savings, and 

economic benefits for the entire community. This campaign will emphasize the direct and indirect 

benefits of service provided by Silver Airways and introduce the “FLY LOCAL” commitment for local 

businesses.
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

11

An average fare comparison underscores the fact that traffic leakage to Memphis International 

Airport is something that cannot be reversed with fares alone and that a large percentage of 

consumers will likely continue to use this airport, particularly when traveling to the limited number 

of 55 markets served on a nonstop basis from MEM. It also points to the need for replacement air 

service at Tupelo Regional Airport being provided by Silver Airways to Atlanta that offers a distinct 

difference in frequency and destinations with 171 nonstop markets, against the 55 markets

available through Memphis. 

TUPELO AIRPORT’S STRATEGIC PLAN:

The Airport seeks a Small Community Air Service Development Grant in order to assist with a 

widespread marketing and advertising campaign in support of new Essential Air Service (EAS) 

provided by Silver Airways to Atlanta. 

The Airport believes a more widespread campaign, 

specifically targeted at passengers who are currently 

leaking to other airports in the region, will spur more 

passenger growth. At the same time, the Airport would 

hope the increased enplanements from a marketing and 

advertising program would reduce the burden on the 

Essential Air Service (EAS) program to provide subsidies in 

the market. 

To reduce the leakage to Memphis, Tupelo plans a wideranging marketing campaign, saturating Tupelo’s air 

service area. The campaign will include frequent radio, 

television, Web, and newspaper advertising, along with 

giveaways. The Airport seeks $75,000 in federal funds, to 

$200

$250

$300

$350

$400

$450

$500

$550

$600

$650

10q1 10q2 10q3 10q4 11q1 11q2 11q3 11q4

Hartsfield-Jackson Atlanta

International

Memphis International

Tupelo Regional
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

12

be paired with $25,000 in local cash funds from the City of Tupelo. The local funds of $25,000 are

above and beyond the airport’s current marketing budget. The Airport realizes the importance of 

the campaign as well as local participation in the SCASD program. Therefore, it has adjusted the

budget accordingly to provide a 33% match to the federal funding requested. The campaign is 

planned to last for at least 12 months, and possibly as long as 18 months.

In addition to marketing, the “FLY LOCAL” commitment will be targeted to local businesses in an 

effort to incorporate Tupelo’s air service into their travel needs. A key component of the ‘Fly Local’ 

campaign will be the Business Travel Pledge, through which local companies will pledge their 

support for the Airport’s services, in return for a range of incentives, and the promise of additional 

services in the future. The Airport will take every opportunity to reach out to local businesses, 

directly and in conjunction with the Community Development Foundation, to share the many 

methods to support Tupelo’s air service provided by Silver Airways. 

The leadership at the Tupelo Regional Airport

believes the marketing and advertising 

campaign will dramatically increase awareness 

of the new service offered, thus increasing 

enplanements and helping make the Airport 

more competitive with other airports in the 

region. Additionally, the Airport believes the 

marketing and advertising campaign will have 

an impact in reducing the burden on the 

Essential Air Service (EAS) program in the next 

bid cycle that is scheduled for October, 2014.

Implementation Timeline

The Airport’s proposed implementation timeline for the project assumes the Department will 

award Small Community Grant Funding in September 2012. Once the award is announced, the 

Tupelo Regional Airport will begin work, along with Silver Airways, to gather the existing campaign 

materials and to finalize the placement plan. 

Activity/Project Milestone Date

SCASD Grant Award Announcement Sep. 2012

Develop Air Service Marketing Material Sep. 2012

Grant Agreement With DOT Oct. 2012

Develop “Fly Local” Material In Place

Develop Comprehensive Placement Strategy Oct. 2012

Launch Campaign Nov. 2012

Monitor Performance On going

Submit Performance Reports To DOT Quarterly

Close Grant Aug. 2014

The Business Travel Pledge

By taking the Business Travel Pledge, your company 

will commit to making Tupelo Regional Airport your 

‘first choice,’ using us wherever possible as part of 

your company travel policy. The Tupelo Airport

recognizes that it won’t always offer the route or 

type of service you require. However, by committing 

to those that are available, you will help us develop a 

more comprehensive range of business services in 

the shortest possible timeframe.
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

13

Community Development Foundation Partnership

The Tupelo Regional Airport plans to utilize local chamber organization, the

Community Development Foundation, as an information bridge between 

the air service area businesses and the airport. CDF is a membership 

organization governed by a 60-member Board of Directors, elected by the 

members, with a 15 member Executive Committee, composed of officers, 

division leaders and other professionals. Currently CDF has in excess of 

1,400 members. Utilizing a professional staff and experienced volunteers, 

CDF presents the positive points of the Tupelo-Lee County region to business, industry and 

professional leaders who bring jobs to the region. CDF's membership assumes the leadership role 

in developing a ten year strategy plan, an annual program of work designed to enhance 

agricultural, business, educational, industrial, private/public partnership and support efforts such 

as skills and technology enhancement, improved transportation and health care.

In addition, CDF has been instrumental in establishing and/or supporting agencies that meet the 

needs of the community: Lift, Inc., a multi-county community action agency; United Way of Greater

Lee County; The Lee County Council of Governments; Big Ten Development Association; 

Entrepreneurs' Forum of Northeast Mississippi; Tri-State Natchez Trace Parkway Association and 

Tupelo Furniture Marketing Association.

Marketing Material 

In order to maximize the federal and local dollars spent on this campaign, the Airport will keep a 

major part of marketing coordination in-house. Professionals in the marketing business have 

agreed to donate their time and expertise to make sure the Airport gets the most out of this 

marketing campaign. They will assist the airport in developing the overall strategy in dissemination 

of the material as well as provide specific guidance on forming agreements and how rights to 

material will be retained. 

The Airport will select a marketing firm through the request for proposals process. This firm will 

help to build on the “FLY LOCAL” commitment. They will create storyboards, outlines, and 

recommend seasonal promotions for the Airport to place itself. With these terms, the airport will 

retain all rights to change and disseminate the material as it sees fit. To further stretch each dollar, 

the airport will utilize the competitive bidding process to shop out the video and audio production 

of the material. 

The Airport staff will personally visit the area’s largest employers to educate travel departments 

and management on the importance of supporting Tupelo’s air service provided by Silver Airways. 

The Airport understands that supporting air service is more than pricing tickets from Tupelo but 

also people must fly to Tupelo. Local businesses need to understand that they can educate their 

vendors, customers, and other professionals that flying into Tupelo is an option that may not have 
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

14

occurred to many out-of-town people. The Airport has developed material to help support this 

effort. Post-it notes, email signature templates, fliers, and the airport’s Web page are already 

designed and ready for print and distribution.

Performance Measures and Financial Controls

The marketing campaign along with the “FLY LOCAL” commitment success will be based on a pair 

of metrics. The Airport will measure the enplaned passengers as a primary metric. The 

measurement of enplanements will include a monthly comparison, once the program begins, to 

past enplanement numbers. The second measure of success will be the number of companies that 

register to “FLY LOCAL” and adopt the business travel pledge. 

As the sponsor, the Tupelo Airport Authority will be the responsible party for all fiscal matters and 

submit DOT the required reporting. The Airport Authority is a public governing body and 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 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.

LEGAL SPONSOR

The Tupelo Airport Authority is the legal sponsor responsible for administering the program

Tupelo Airport Authority

2704 W. Jackson St. 

Tupelo, MS 38801

b - 662-841-6570

f - 662-841-6571

joshua@flytupelo.com

CONCLUSIONS

As a smaller, Essential Air Service (EAS) airport, the Tupelo Regional Airport does not have the 

resources to build an air service area-wide marketing campaign. With more funding to better 

spread the message, the Airport anticipates it can grow passengers up to levels seen in 2008 –

roughly double the number of passengers currently using the facility. The Airport has a sound 

strategy in place for its federally supported advertising campaign. The plan only needs federal 

funding to move forward. The Airport believes this marketing will reduce leakage to other airports. 

Then, as passenger traffic grows in the market, through the increased marketing and advertising 

proposed in this application, revenues will grow, and the federal subsidy required to support 

Essential Air Service (EAS) at Tupelo will be reduced. The Department of Transportation can invest a 
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

15

small amount in this grant proposal, that could help save it millions of dollars in EAS funding in the 

years to come.
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

16

LETTERS OF SUPPORT 
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

17
Docket DOT-OST-2012-0069 Department Of Transportation

 Small Community Air Service Development Program

Proposal from the Tupelo Airport Authority

Issue Date: 06/11/2012

18