Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 APPLICATION UNDER
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 2013

- 0120

SUMMARY INFORMATION

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D& B) DATA UNIVERSAL NUMBE RING SYSTEM (DUNS)

NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER (EIN) OR TAX ID

. Legal Sponsor Name: St. Clair County, Illinois
DUNS Number:
07

- 5897371 EIN/Tax ID:
37

- 6001924

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COMMUN ITIES APPLYING : 1._ S T

. C LAIR C OUNTY , I LLINOIS

_

C. P ROVIDE THE FULL AIRP ORT NAME AND 3

- L ETTER IATA A IRPORT C ODE FOR THE APPLICAN T ( S ) AIRPORT ( S ) (O NLY

PROVIDE CODES FOR TH E AIRPORT ( S ) THAT ARE ACTUALLY SE EKING SERVICE ).
1. MidAmerica St. Louis Airport (BLV)Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013

D. L IST THE 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG ORGANIZATION , AND IF A

CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY

. 1. IL

- 12

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium Community now receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant
If previous recipient: Year of grant(s):

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )
PUBLIC PRIVATE
1. MidAmerica St. Louis Airport 1. Leadership Council of Southwestern Illinois
2

. St. Clair County 2. Greater Belleville Chamber of Commerce

G. P ROJECT P ROPOSAL : ( CHECK ALL THAT APPLY ) Marketing Upgrade Aircraft New Route
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee
Launch New Carrier Start

- up Cost Offset First Service Study Secure Additional Service Other (explain below)

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT : Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other (specify) 

### XProposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013

I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA
L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT
1 Federal amount requested $2 00,000
2 State cash financial contribution $0
Local cash financial contribution
3a Airport cash funds $ 0
3b Non

- airport cash funds $50,000
3 Total local cash funds ( 3a + 3b ) $ 50 ,000
4 TOTAL CASH FUNDING ( 1+2+3 ) $25 0,000
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 ) $25 0,000

J. IN

- KIND CONTRIBUTIONS** For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please describe the source(s) of fund(s) and the value ($) of each. Airport will waive landing fees for additional flights; local media companies will offer discounts on advertising; partner airlines will offer free tickets for giveaways, etc.Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013

K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y S TATE U NDER E XECUTIVE O RDER 12372 P ROCESS ?

a. This application was made available to the state under the Executive Order 12372 Process for review on (date) _____________.
b. Program is subject to E.O. 12372, but has not been selected by the state for review.

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

L. I S T HE A PPLICANT D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE E XPLANATION )
No Yes (explain)

__________________________________________________________________ ___________________________Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 1

TABLE OF CONTENTS

Legal Sponsor 1
Introduction 2
The MidAmerica St. Louis Air Service Market 3 Unique Catchment Area 3 Regional Capacity Reductions 6 Passenger Leakage and the Regional “True Market” 7 Airport Use 7 Top Origin and Destination Markets 9
Carrier Shares 10 Per Capita Capacity 11 Strategic Plan for New Air Service 12 New Target Markets 12 Project Timeline 15 Public/ Private Partnership 16
Conclusion 17



## LEGAL SPONSOR

St. Clair County, Illinois sponsor of MidAmerica St. Louis Airport

, is the legal sponsor responsible for administering the proposed air service development program.

St. Clair County, Illinois MidAmerica St. Louis Airport 9656 Air Terminal Drive, Suite 100 Mascoutah, Illinois 62258 Tim Cantwell , Airport Director (877) 643

- 2637 director@flymidameric a.com 

### Section Page NumberProposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 2

INTRODUCTION

MidAmerica St. Louis Airport recently saw the reintroduction of commercial air service for the first time since the beginning of 2009, as Allegiant reinstated non

- stop service to Orlando/Sanford.
That service has seen its load factor climb to 92% as of spring of 2013

, illustrating the local
demand for service in the Illinois counties of the St. Louis metro area.

MidAmerica Airport serves a unique catchment area of 1.1 million people in the “metro east,” which is defined locally as the 18 Illinois counties in the St. Louis Metropolitan Statistical Area (MSA). These counties generate 25% of all passenger travel to and from t he St. Louis area, as determined by MidAmerica Airport’s recently completed True Market/Leakage Study. That study also shows the “metro east” generates 2.4 million annual airline passengers, or an average of 3,264 passengers per day each way

– more than e nough to support significant local service on the east side of the Mississippi River. Still, in 2012, MidAmerica Airport had an average of just 0.02 available airline seats per capita

– the most underserved
market in all of Illinois and Missouri.

Until A llegiant launched service at MidAmerica Airport, virtually all “metro east” travelers were forced to use Lambert St. Louis Airport to access the national air transportation system. But service at Lambert has continued to decline, largely due to airline co nsolidation, making air travel expensive and less convenient. The average one way fare paid by MidAmerica Airport catchment area passengers has increased by 19% in just the last four years, nearing $200 each way on average. At the same time, airlines ser ving Lambert Airport have cut available seats by 11%. Lambert has lost an average of 2,734 daily departing seats since the summer of 2011.

This capacity can be efficiently replaced, in targeted markets, by new service at MidAmerica St. Louis Airport. Th e Airport has defined its role as the low cost alternative to Lambert, and seeks to expand its slate of non

- stop destinations offered by less

- than

- daily low cost carriers. In order to recruit additional service, the Airport is seeking its first ever Small Community Air Service Development Grant. It intends to use $200,000 in Grant funding, matched by $50,000 in non

airport local cash, to offer marketing incentives to carriers launching service to new non

- stop destinations. This service will help replace lost airline seats, provide additional competition in the region, and better serve the most underserved market in the Midwest. 

## “ The average one way fare paid by MidAmerica Airport catchment area passengers has increased by 19%...”Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 3

THE MIDAMERICA ST. LOUIS AIR SERVICE MARKET Current and Historical Air Service

MidAmerica St. Louis Airport, located in the “metro east” of the St. Louis area, is positioned as the low cost, hassle

- free alternate airport for the St. Louis metro area

– and especially those who live on the Illinois side of the Mississippi River. The A irport is located on Scott Air Force Base, and is a joint use facility shared with St. Clair County. The County operates the commercial side of the
A irport while the US Air Force operates the base.

MidAmerica has a unique catchment area, seen in Map 1 in red, of 302,651 people. But a recent market study commissioned by the Airport shows its low cost service draws from a much larger area. The 60

- minute drive time catchment area, seen in yellow in Map 1, is home to 2.4 million people as
of the 2011 US
Census estimate.
The 90

- minute catchment area, seen in Map 1 in blue, is home to 3.1 million people. While
Lambert St. Louis Airport acts as the main gateway for the area, it has seen huge declines in service over the last decade, and quickly increasing fares, making low cost service at MidAmerica Airport more attractive.

The 18 counties on the Illinois side of the St. Louis metro area comprise 2 4% of the regional St. Louis economy and 36% of the St. Louis metro population (see Map 2 and Figure 1 on next
page ). Collectively, the 18

- county “metro east” has annual earnings of almost $23.4 billion and 

### MAP 1: MidAmerica St. Louis Airport Catchment Area Source: Sixel Consulting Group, 2011 US Census EstimatesProposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 4 total personal income of almost $39.4 billion. The 1.1 million people who live in this region make an average of $34,000 per year per capita, or $81,600 per household per year. These numbers are
much h igher than both the Midwest and national averages. This indicates that those who live in the “metro east” have more disposable income to spend on things like airline travel.

MidAmerica Airport’s sole service as of summer 2013 is Allegiant Air’s non

- stop flights, twice per week, to Orlando Sanford Airport. The service operates for most of the year, but has a seasonal hiatus from the end of August through
the end of October. T he service was re

instated in November of 2011, and saw quickly improving numbers. In its first month, its load factor was just 70%, as the service ramped up and as people began to discover the alternative to Lambert Airport (see Figure 2). By January of 2013, the load factor on the route had increased to 81%, and it further improved to 92% in March of 2013. Allegiant, itself, has reported improving margins on the flight, which has encouraged the Airport to develop data and incentives in support of servi ce to additional Allegiant destinations.

Allegiant had previously served MidAmerica Airport from 2005 through the beginning of 2009, 

### MAP 2 : The “Metro East” Counties of the St. Louis MSA Source: Sixel Consulting Group, July 2013

FIGURE 1 : Economic Breakdown of “Metro East” Counties Source: Sixel Consulting Group; US Census Data, July 2013

FIGURE 2 : PDEW, SDEW, and Load Factor, BLV

- SFB Source: US DOT T100, November 2012

– March 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 5

but ended service due to low ancillary revenue. Between 2009 and 2012, the market dynamics changed appreciably, with serv ice at Lambert Airport continuing to decline, making MidAmerica service more attractive. At its peak in 2007 , MidAmerica generated 51,190 annual passengers on Allegiant ( see Figure 3 ) or an average of 70 passengers per day each way (PDEW). Still

, that pe ak number represented just 0.5% of the total passengers generated in the St. Louis metro area, with the other 99.5% using Lambert Airport.

Since the 2007 passenger peak at St. Louis’ two airports with scheduled air service, origin and
destination passengers have dropped by 10% or an average of 1,571 PDEW

. At the same time, the average one way fare in the r egion has increased from $167 to $199 (see Figure 3)

– a jump of 19% or an average of $32 each way.

Since summer of 2011, airlines have cut an average of 2,734 daily departing seats at Lambert Airport, or 11% of all capacity (see Figure 4 on next page ). Surprisingly, this has resulted in a decrease in load factors at Lambert. Some of that can be attributed to the loss of connecting passengers, which would be included in this data. 

### FIGURE 3 : O&D Passengers and Average One Way Fares, at MidAmerica and Lambert Airports Source: US DOT OD1A, Calendar Year 2004

– Calendar Year 2012Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 6

Comparing this data to origin and destination data, about 15% of Lambert’s passengers were connecting in 2012, down from almost 20% in 2011. As airlines have cut flights and seats, connecting passengers have routed their travel through other hubs. Additionally, as flights and seats are cut, local passengers have seen fares increase and travel options decline, underlining the importance of additional service at MidAmerica St. Louis A irport. 

### FIGURE 4 : Passengers and Seats per Day Each Way, and Load Factor at Lambert St. Louis Airport Source: US DOT T100; June 2011

– February 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 7

PASSENGER LEAKAGE AND THE REGIONAL “TRUE MARKET”

To better understand its market, and the ability of the market to support additional air service, MidAmerica St. Louis Airport commissioned a True Market/Leakage Study in April of 2013. The study pulled actual ticket stock, from the Airline Reporting Corporation (ARC) from the zip codes
in the 18

- county “metro east” area, as defined previously in this application. The ticket data represented the year ended third quarter 2013. This was the period before Allegiant reinstated
MidAmerica service.

The study shows the MidAmerica catchment ar ea, on the Illinois side of the St. Louis metro area, generates almost 2.4 million annual airline passengers, or an average of 3,264 passengers per day each way (PDEW) (see Figure 5). Not surprisingly, 96% of those passengers choose to use
Lambert St. Louis Airport instead of other airports in the region. Small percentages were found to use Springfield, Peoria, Bloomington/Normal, or Indianapolis, among other airports, in rare cases. 

### FIG URE 5 : Originating Airport for BLV Catchment Passengers, YE3Q12 Source: Sixel Consulting Group BLV True Market/Leakage Study , April 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 8

Passengers use Lambert Airport despite the fact that its fares tend to be higher than the fares found at other airports in the region. The average fare paid by MidAmerica catchment area passengers at Lambert Airport was found to be $183 one way (see Figure 6).

Fares at Springfield, Peoria, Bloomington/Normal, and Indianapolis were all lower than the average at Lambert. The overall ave rage fare for the MidAmerica Airport catchment area was found to be $183, as well, the same as the average at Lambert, itself. People in the MidAmerica catchment area are willing to pay more for the convenience of service nearby. They have also
been foun d to pay more for non

- stop flights. These are two reasons Allegiant service at MidAmerica is a good fit for the market.

Most notably from the report, the Illinois side of the larger St. Louis catchment area generates almost 25% of all the region’s passen gers. The Airport’s True Market/Leakage Study shows the 

### FIGURE 6 : Average One Way Fare by Airport for BLV Catchment Pass engers, YE3Q12 Source: Sixel Consulting Group BLV True Market/Leakage Study, April 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 9 Illinois side share by
the region’s top 25 origin and
destination markets (see Figure 7). The
MidAmerica Illinois

side catchment area generates an even higher proportion of St. Louis’ passengers
to leisure
destinations. For example, the “metro east” generates 31% of passengers, or 112,201 annual
passen gers, to Orlando/Sanford; 36% of passengers, or 106,872 annual passengers to Las Vegas; 34% of passengers, or 91,396 annual passengers to Phoenix/ Mesa; and 37% of passengers, or 47,523 annual passengers to Southwest Florida, which includes Ft. Myers
and Sarasota.

As previously noted, the overall average one way fare in the greater St. Louis catchment area, and in the “metro east,” is $183 (see Figure 8). The region has relatively high fares
to leisure markets

– and those fares have been steadily rising. Despite l ow cost service to Florida, the Orlando/Sanford fare averages $133 each way, while the South Florida (including Miami, Ft. Lauderdale, and West Palm Beach) fare averages $158 each way, and the Southwest Florida fare averages $156 

### FIGURE 7 : Top 25 O&D Markets in the St. Louis Area, by Catchment, YE3Q12 Source: Sixel Consulting Group BLV True Market/Leakage Study, April 2013

FIGURE 8 : One Way Fares in Top 25 O&D Markets , YE3Q12 Source: Sixel Consulting Group BLV Study, April 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 10

each way. While Allegiant service from MidAmerica Airport is the lowest cost service in the region, there are a number of other markets where Allegiant would be able to significantly reduce the cost of travel from the St. Louis area by adding service at MidAmerica.

While Lambert Airport no longer has a “hub” airline,
as it did when TWA

, and later American

, operated large connecting complexes at the Airport, more than 50% of all passengers in the region use Southwest (see Figure 9). As of the year ended third quarter 2012, 48.1% of St. Louis area passengers, including those in the MidAmerica catchment area on the Illinois side of the Mississippi, used Southwest
Airlin es, while another 2.7% used Southwest subsidiary AirTran

– in effect, a total of 50.8% of passengers were traveling on Southwest flights.

The effects of consolidation in the airline industry
have been dramatic in the St. Louis area, as seats have been drastically cut and fares have increased by 25% in the last ten years. MidAmerica Airport’s True Market/Leakage Study shows 97.3% of all passenger traffic in the market is carried by what will be the “big four” c arriers

– American+US Airways, Delta, Southwest+AirTran, and United (see Figure 9). Only 2.7% of passenger traffic flies on other carriers. While the market is not dominated by a single carrier, its traffic is split in such a way that few carriers compet e for passengers, causing subsequent service cuts and increasing fares.

MidAmerica Airport ranks as the most underserved airport in all of Missouri and Illinois

– with less service than the Essential Air Service (EAS) markets in the two states. The avera ge airport in
Missouri and Illinois has 6.88 available airline seats per capita of its metro area (see Figure 10 on next page ) . The Missouri side of the St. Louis area has just 87% of the average number of available seats, or 5.97 seats per capita. The I llinois side of the St. Louis area is the most
underserved metro area in the region, with an average of just 0.02 airline seats per capita in 2012, or just 0.29 % of the regional average number of seats. This number will increase slightly in 

### FIGURE 9 : C arrier Share, YE3Q12 Source: Sixel Consulting Group BLV Study, April 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 11

2013, with expanded service on Allegiant, but it will still remain below 1% of the regional average number of seats per capita.

The size of the “metro east” market is la rge enough to support significantly more airline serv ice at MidAmerica Airport. The number of available airline seats at Lambert Airport is at its lowest point in the last several years. At the same time, MidAmerica’s focus on less

than

- daily low cost se rvice has resulted in a strong alternate market being developed. MidAmerica is well positioned to continue to grow its leisure

- oriented traffic base, bringing much needed fare relief to the wider St.
Louis area. 

### FIGURE 10 : Seats per Capita in Illinois and Missouri Source: US DOT T100, Calendar Year 2012Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 12

STRATEGIC PLAN FOR NEW AIR SERVICE

MidAmerica St. Louis Airport’s recent market study confirms the fact that the “metro east” counties, in Illinois, in the St. Louis area can support additional service. Allegiant’s reinstated
service to Orlando Sanford has seen load factor s increasing each month since its launch. The Airport has confidence new service to additional destinations will be equally as successful.

As with any new service

– especially at smaller, alternate airports

– marketing and advertising are keys to immedia te success. New routes at MidAmerica Airport must be supported with large campaigns to ensure the market is aware of the availability of airline seats. Moreover, in a market like MidAmerica’s

, the Airport must break consumer habits. People in the “metro east” are trained to cross the Mississippi River to access flights at Lambert Airport, regardless of the cost differential. Marketing is paramount to breaking the habit

– especially in cases where service from MidAmerica is more convenient and cheaper.

MidAmerica Airport is seeking its first federal Small Community Air Service Development Grant in support of additional non

- stop destinations on less

- than

- daily low cost carriers. The total project cost is $250,000, with $50,000 coming from

non

- airport loc al

sources, including the Leadership
Council of
Southwestern
Illinois and the
Greater Belleville
Chamber of
Commerce . The funding will be used as a marketing incentive to a carrier beginning non

- stop service to a market
without current non

- stop service fr om MidAmerica.

Through its recent market study, completed in preparation for this application, the Airport has identified a set of routes on which it will actively recruit low cost service (see Map 3). The Airport 

### MAP 3: Target Routes for MidAmerica St. Louis Airport Source: MidAmerica St. Louis Airport , July 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 13

has a sufficient market to support addit ional Florida service, with routes to St. Petersburg

– Clearwater, Ft. Lauderdale, and Punta Gorda/Southwest Florida being the prime targets. To the west, the Airport has sufficient passenger travel to support service to Las Vegas, Los Angeles, or
Phoenix /Mesa.

The MidAmerica Airport catchment area, which consists of the Illinois side of the larger St. Louis metro area, generates 31% of all current Florida passengers to and from the region. In all, the MidAmerica Airport catchment area generates almost 329,000 a nnual passengers
to and from Florida destinations (see Figure 11), or an average of 450 passengers per day each way. Orlando/Sanford is the largest origin and destination market in Florida to and from the St. Louis area, which is likely why Allegiant chos e it as its first MidAmerica Airport destination. The next three largest markets are the targeted markets for MidAmerica Airport

– South Florida, through Ft. Lauderdale; Tampa/St. Petersburg; and Southwest Florida, through Punta Gorda. Each market genera tes at least 178 passengers per day each way, so all are large enough to support new less

- than

- daily service without significant passenger stimulation.

The average fare from the St. Louis
area to these Florida markets was $148 each way as of the year ended third quarter 2012 (see Figure 12). The Orlando/Sanford fare is the lowest, at $133 each way, but it will
fall further with the intr oduction of Allegiant service. Allegiant loses money on its MidAmerica

– Orlando/Sanford fare, but makes money on its ancillary fees. Of the top four markets, South Florida and Southwest Florida support the highest fares

– and also have
the least non

- sto p service from Lambert Airport. 

### FIGURE 11 : Top O&D Markets from the St. Louis Area to Florida, YE3Q12 Source: Sixel Consulting Group BLV Study, April 2013

FIGURE 12 : Average One Way Fares in Top Florida Markets, YE3Q12 Source: Sixel Consulting Group BLV St udy, April 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 14

The Illinois side of the St. Louis area generates 29% of
demand to and from
destinations in the southwest
US. The MidAmerica Airport catchment area generated 351,000 total passengers to and
from these destinations in the year ended third quarter 2013 (see Figure 13), or an average of 481 passengers per day each way. While the largest southwest US market from the St. Louis area is the Los Angeles Basin, the largest from the Illinois side of the catchment is Las Vegas. Illinois passengers generate 36%
of S t. Louis’ total demand to and from Las Vegas, with nearly 107,000 annual passengers, or an average of 147 passengers per day each way. The Illinois demand to and from Las Vegas is enough to support, at least, twice

- weekly service from MidAmerica Airport.

The average one way fare between the St. Louis area and southwest US markets is $175 (see Figure 14). The Los Angeles Basin fare is the highest of all southwest US markets at an average of $193 each way. The Las Vegas fare is at $167 each way, while the Phoenix/Mesa fare is at $164 each way. In all cases, the low cost service being recruited by MidAmerica Airport would provide
the marke t with fares lower than current averages. 

### FIGURE 13 : Top O&D Markets from the St. Louis Area to the Southwest, YE3Q12 Source: Sixel Consulting Group BLV Study, April 2013

FIGURE 14 : Average One Way Fares in Southwest Markets, YE3Q12 Source: Sixel Consulting Group BLV Study, April 2013Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 15

The Airport’s marketing plan for new service would include a wide range of media, based on the success the Airport has seen in building its load factors on Orlando/Sanford service. For Allegiant’s reinstatement of service, the Airport provided a
number of marketing efforts, including targeted web

- based advertising (see Figure 15). The Airport will continue to build upon the low fare message it has developed, as it works to become the low fare alternate airport for the
St. Louis metro area.

The anticipated timeline for the project assumes a Grant would be
awarded in September of 2013 (see Figure 1 6 ). If the Grant agreement
with the DOT is finalized in October
of 2013

, during the fall of 2013 and into the spring of 2014, the Airport will
work to recruit less

- than

- daily, low cost air service through the
incentives offered under thi s program. As soon as that service is launched, the campaign will launch, in support of that new service. The Airport anticipates closing the Grant by September of 2015 , if not before. 

### FIGURE 1 6 : Project Timeline Source: MidAmerica St. Louis Airport, July 2013 FIGURE 1 5 : Example of Advertising Content Source: MidAmerica St. Louis Airport, November 2012Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 16

PUBLIC/PRIVATE PARTNERSHIP

This application for federal Small Community Air Service Development Grant funding is supported by several community partners who have pledged matching cash. These partners
include the local chamber of commerce, the area economic development authority, an d the county that owns and operates MidAmerica St. Louis Airport

.



### Greater Belleville Chamber of Commerce The Greater Belleville Chamber of Commerce is a membership organization that supports and advances business and community interests, as well as the qu ality of life in Belleville and surrounding communities. The mission of the Chamber is to identify and serve the needs of businesses. That means working to increase prosperity by encouraging growth of existing businesses and fostering the establishment of new ones. In addition, it translates to providing representation in government affairs, and working with educational, cultural, c ivic and service organizations. The Chamber has supported each effort to bring scheduled air service to MidAmerica Airport.



### Leadership Council of Southwestern Illinois
The Leadership Council of Southwestern Illinois is the premier organization fostering economic growth in Ma dison and St. Clair counties. It developed the first regional economic development agenda, and for almos t 30 years, the organization has strengthened public/private partnerships throughout Southwestern Illinois to lay the foundation for job growth and retention. The Leadership Council’s membership includes approximately 150 top executives and decision
makers from the five sectors it unite s , providing a level of diversity that makes the organization unique. The Council understands the importance of MidAmerica Airport to the economy of the region and continues to work with the Airport to recruit additio nal service.



### St. Clair County St. Clair County was one of the guiding forces in developing Scott Air Force Base into a joint use facility The County was responsible for developing MidAmerica Airport’s passenger terminal and
other facilities. While Scott Air Force Base pumps $2 billion each year into the region's economy

, the addition of commercial service to the facility is the key to continued growth in the County.Proposal of MidAmerica St. Louis Airport • Mascoutah, Illinois • July 2013 

## 17

CONCLUSION

MidAmerica St. Louis Airport is at the center of the single most underserved catchment area in
all of Illinois and Missouri. The 18

- county “metro east”

– comprising the Illinois counties in the St.
Louis metro area

– has service on just one airline to one destination twice per week. The result is 96% of “metro east” p assengers driving to Lambert St. Louis Airport for access to air service.

Airlines continue to cut service at Lambert, suppressing local passengers. Since summer of 2011

, airlines have cut an average of 2,734 daily departing seats from the market

– 11% o f the market’s total capacity. In the last four years, airline seat cuts have caused fares to increase by 19%, to their highest point in the last decade, at $199 each way.

MidAmerica Airport had recent success with the reintroduction of Allegiant service to Orlando/Sanford last November. Since its re

- launch, load factors on the route have climbed to 92%, which illustrates the fact that local travelers have been looking for an alternate airport with low cost service. This success has also helped to focus MidAmerica’s air service recruitment efforts on less

- than

- daily low cost carriers. These carriers offer something unique in the region, and provide excellent competition against the established “big four” serving Lambert Airport.

MidAmerica Airp ort has been able to recruit service without the aid of a federal Small Community Air Service Development Grant. This is its first application, as the air service environment has changed and the need for additional incentives is paramount in
new service r ecruitment.

The Airport’s new service plan includes non

- stops to a city without current service. The Airport has identified several areas of focus for new service, based on regional demand spelled out in its recently completed True Market/Leakage Study. The focus markets include cities in Florida and
in the southwest US.

MidAmerica St. Louis Airport seeks a federal Grant of $200,000, matched by $50,000 in non

airport local cash, to offer marketing incentives to carriers launching service to new non

- st op destinations. This service will provide the region with new competition, lower fares, and more travel options through its secondary gateway. 

## “ ...airline seat cuts have caused fares to increase by 19%, to their highest poin t in
the last decade...”