# Dothan Region al Airport

Dothan, Alabama

Proposal Under the Small Community Air Service

Development Program Docket DOT

- OST

- 2010

- 0124

Dun & Brad street DUNS Number 040648222 Two Digit Congres sional District Code: 02Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 2 

## TABLE OF CONTENTS
INTRODUCTORY LETTER

................................ ................................ .................. 4 EXECUTIVE SUMMARY

................................ ................................ ...................... 5 AIR SERVICE OVERVIEW

................................ ................................ ................... 7

Catchment Area

................................ ................................ ................................ ................................ ..................... 7
Other Commercial A irport Locations in the Region

................................ ................................ ............................... 8 Current Nonstop Routes and Frequencies

................................ ................................ ................................ ............ 9 Air Service Development Efforts

................................ ................................ ................................ ............................ 9
Ai rport Marketing and Promotion

................................ ................................ ................................ ......................... 10 

## AIR SERVICE DEVELOPMENT NEEDS AND DEFICIENCIES

......................... 11
Capacity Trends

................................ ................................ ................................ ................................ ................... 11 Declining Traffic

................................ ................................ ................................ ................................ ................... 12 Prohibitively High Fares

................................ ................................ ................................ ................................ ....... 14 Second Highest Domestic Fare in the Lower 48 United States

................................ ................................ ........... 17 

## STRATEGIC PLAN

................................ ................................ ............................ 18

Goals

................................ ................................ ................................ ................................ ................................ .... 18 Target Airline Support

................................ ................................ ................................ ................................ .......... 18
Local Dothan

- Dallas/Ft. Worth Traffic and Revenue

................................ ................................ ........................... 19 Similarities to the Columbus, Georgia

- Dallas/Ft. Worth Market

................................ ................................ .......... 2 2 Connecting Traffic and Revenue Via American's Dallas/Ft. Worth Hub

................................ .............................. 24 Proposed Schedule

................................ ................................ ................................ ................................ .............. 26 Alternate Strategies

................................ ................................ ................................ ................................ .............. 26 

## PROJECT IMPLEMENTATION, MONITORING AND FUNDING

....................... 27
Public / Private Partnerships

................................ ................................ ................................ ................................ 27
Pr oject Funding

................................ ................................ ................................ ................................ .................... 28 Implementation Timeline

................................ ................................ ................................ ................................ ...... 29
Start

- Up Period and Sustainability of the Market

................................ ................................ ................................ . 29 

## PROJECT MONITORING AND FINANCIAL CONTROL

................................ .... 30

Success Metrics

................................ ................................ ................................ ................................ ................... 30 Legal Sponsor

................................ ................................ ................................ ................................ ...................... 30
Financial Controls

................................ ................................ ................................ ................................ ................ 30 Expiration of Grant Funding Prior to Self Sustainability

................................ ................................ ....................... 31Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

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## APPENDIX A: REQUIRED SUMMARY INFORMATION

................................ ... 32

A. Applicant Information

................................ ................................ ................................ ................................ .... 32
B. Public/Private Partnerships

................................ ................................ ................................ .......................... 32
C. Project Proposal

................................ ................................ ................................ ................................ ........... 32
D. Existing Landing Aids at Local Airport

................................ ................................ ................................ .......... 32
E. Project Cost

................................ ................................ ................................ ................................ .................. 33
F. Enplanements

................................ ................................ ................................ ................................ ............... 33
G. Is this appli cation subject to review by state under Executive Order 12372 Process?

................................ 33
H. Is this applicant delinquent on any federal debt?

................................ ................................ ......................... 33 

## APPENDIX B: COMMUNITY BACKGROUND

................................ .................. 34
Dothan and Southeastern Alabama Economic and Community Information

................................ ...................... 34 

## APPENDIX C: LETTERS OF SUPPORT

................................ .......................... 41Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

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## INTRODUCTORY LETTERDothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 5 

## EXECUTIVE SUMMARY

Dothan Regional Airport is proposing a Small Community Air Service Development Grant in the amount of $750,000 to supplement community and airport cash and in

- kind funding totaling $476,000 to provide a minimum revenue guarantee and marketing support for service between Dothan and Dallas/Ft. Worth on 50

- seat regional jets operated by American Eagle.

Dothan Regional Airport serves as the primary airport for residents of
, a nd visitors to Southeastern Alabama
, Southwestern Georgia, and parts of the Florid a Panhandle. It is the only airport in Southeastern Alabama with
commercial service. The Airport is the closest airport to F ort Rucker, a U.S. Army base with 5,800 military personnel, 7,600 civilian and contract employees and 3,300 military family members . Fort Rucker drives the economy of the Dothan

- Enterprise metropolitan statistical area and is an important component of the need for improved air service in Dothan.

Delta Air Lines is the only carrier with commercial service in Dothan with four roundtrip s to its hub in Atlanta. Because there is no competitive air service in Dothan, fares are extremely high. Dothan's average domestic fare over the last four quarters was $351 each way, and the average domestic one

- way fare in the most rec ent quarter was $ 398. Dothan's average domestic fare gives Dothan the distinction of having the second highest fare among all airports in the Lower 48 United States. Dothan's airline capacity and the traffic generated at the airport have declined each year since the yea r
- end first quarter 2005 as the fare increased from an already high level $210 to $351 each way. $351 is just the average for the year

- end first quarter 2010; analysis of quarterly data indicates the first quarter 2010 fare was $398 each way or $796 round trip. While the military or military contractors may be willing to pay fares at these levels, small businesses and residents in the region cannot afford to fly from Dothan Regional Airport, and travelers who cannot afford or are not willing to pay the unr easonably high fares must drive to an airport outside the region.

With the exception of Albany, Georgia, each of the communities surrounding Dothan

– Mo ntgomery, Ft. Walton
B e a c h
, Tallahassee and most recently
, Columbus

– are s erved by more than one carrier, and fares are generally lower at the surrounding airports. While the average domestic fare in Columbus was only marginally lower than the average Dothan fare, American Eagle recently began servi ng the Columbus market, and the competition provided by American Eagle wil l most likely force fares lower in Columbus.

Dothan's local Dallas/Ft. Worth market size and average fare are higher than the local Columbus

- Dallas/Ft. Worth market size and American would likely generate more local traffic in Dothan than it gene rates in Columbus. The introduction of nonstop service in a nd of itself would stimulate the market size, but American would also likely
introduce lower fares in the market (or at least open more inventory priced at the lowest fares versus the amount
of lo w - priced inventory currently available on Delta via Atlanta) thereby stimulating the market size.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 6 Service to D allas/Ft. Worth on American would link Dothan with many of its largest markets American serves beyon d Dallas/Ft. Worth and likely increase traffic and lower fares in these markets.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 7 

## AIR SERVICE OVERVIEW

Catchment Area

Dothan Regional Airport is the primary airport serving Southeastern Alabama , Southwestern Alabama and parts of the Florida Panhandle; 282,600 residents live within a 60

- minute drive of the airport, and 507,200 residents live within a 90 minute drive of the airport.

Exhibit 1: 60 and 90

- Minute Drive Time Catchment Area s of Dothan Regional AirportDothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

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## Other Commercial Airport Locations in the Region

Dothan Regional Airport is the primary airport for travelers in the Dothan area; however, the limited service and high fares at Dothan force many residents and visitors to the area to use other airports in the region. Other airports with commercial service in the region are loc ated in Albany, Montgomery, Columbus, Panama City,
Tallahassee and Ft. Walton Beach.

Exhibit 2 : Location of Dothan Regional Airport Relative to Other Airports in the Region, Distances and Drive Times from Dothan Regional Airport to Other AirportsDothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 9 

## Current Nonstop Routes and Frequencies

Dothan is served only by Delta/Delta Connection with four roundtrips on 50

- seat regional jet s to Atlanta.

Exhibit 3 : Current Route Operated from Dothan Regional Airport



## Air Service Development Efforts

Dothan Regional Airport attended the Airports International Council JumpStart conference in San Diego this year in June. Meetings were held with American Eagle, United Airlines and US Airways. Business cases were presented to American Eagle for Dallas/Ft. Wort h service, to United for Washington Dulles service and to US Airways for Charlotte service. American Eagle and United expressed particular interest in the Dothan market because Dothan Regional Airport is the c losest market to Fort Rucker, and b oth airline s recognize the value of military traffic to their networks.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 10 

## Airport Marketing and Promotion

In addition to meeting with airlines, Dothan Regional Airport also markets the airport's existing service to travelers
in the catchment area. The Airport uses a mixed advertising strategy including local radio, print, outdoor and web outlets to convey a message of convenience targeted to business traveler s

. Dothan's high fares have caused leisure travelers to be priced out of market, but the military and business community will consider paying a premium for the convenience and fast er service available at Dothan Regional Airport

. The airport's marketing budget is approximately $50,000 per year . This is supplemented by playing an active ro le in local chamber and civic activities connecting the airport to the business community and economic development efforts. The airport also supports aviation education in the region with tours and in

- kind services, and maintains a close partnership
with Fort Rucker and its agencies.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 11 

## AIR SERVICE DEVELOPMENT NEEDS AND DEFICIENCIES

Capacity Trends

In the year

- end first quarter 2010
, Dothan 's capacity declined to its lowest point in ten years. In fact, Dothan's capacity has declined each year since 2005. Relative to year

- end first quarter 2005, Dothan's capacity is down 43% to 183 seats per day each way from 320 seats per day each way.

Exhibit 4 : Seats per Day Each Way (All Carriers) at Dothan Regional Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 12 

## Declining Traffic

Just as Dothan's capacity declined to its low point of the last te n years, traffic has also declined to a low point. Domestic origin and destination traffic fell 46% from 129,760 passengers in the year

- end first quarter 2005 to 69,830 passengers in the year

- end first quarter 2010, and international traffic fell to 8,560 origin and destinations
passengers ( Exhibit 5 ) . In terms of passengers per day each way (PDEW), Dothan's traffic stood at 96 domestic
PDEW and international traffic stood at 12 PDEW. ( Exhibit 6 )

Exhibit 5 : Annual D omestic and International Origin and Destination (O&D) Passengers at Dothan Regional Airport

– Year

End First Quarter 2001

- 2010 ( DB1B data)

See Next Page for Exhibit 6Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 13 Exhibit 6 : Annual Domestic and International Passengers per Day Each Way (PDEW) at Dothan Regional Airport

– Year

- End First Quarter 2001

- 2010 (DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 14 

## Prohibitively High Fares

As Dothan has lost capacity and traffic d eclined, fares have increased substantially (Exhibit 7 ). Since 2005, when capacity and traffic reached its peak, Dothan's averag e domestic one

- way fare has increased $141 or 67.4% from $210 to $351. The average one

- way domestic fare of all Lower 48 airports in the year

- end first quarter 2010 was $143, so Dothan's increase of $141 since 2005 is just $2 lower than the average domestic one

way fare of all Lower 48 airports in the year

- end first quarter 2010.

Exhibit 7 : Seats per Day Each Way and Average Domestic Fare at Dothan Regional Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 and DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 15 While Dothan's year

- end first quarter 2010 domestic one

- way fare was $351, analysis of quarterly data indicates the fare rose from $324 in second quarter 2009 to $344 in third quarter to $345 in fourth quarter and finally to $398 in first quarter 2010 ( Exhibit 8 ). $398 each way means the average domestic roundtrip from Dothan
Re gional Airport cost $796 in first quarter 2010

– a prohibitively expensive fare by any standard.

Exhibit 8 : Seats per Day Each Way and Average Domestic Fare at Dothan Regional Airport

- Quarterly Data

– First Quarter 2008 through First Quarter 2010 (DOT T

- 100 and DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 16 A significant share of the traffic in Dothan's catchment area leaks to other airports because fares are lower at other airports in the region. Dothan's year
- end first quarter 2010 one
- way domestic fare was significantly higher
than domestic fares at all but one of the surrounding airports in the region (Exhibit 9)

. The other airport in the region with high fares was Columbus, Georgia, where the average fare was only $5 lower than Dothan's fare

. Although the Columbus far e was high, Columbus fares will likely fall since American Eagle began service in Columbus on July 15. The next highest fare was $243

– more than $100 lower than the average Dothan fare and fares among the other airports ranged as low as $182 at other air ports in the region.

Exhibit 9 : Average Domestic Fare in Dothan and the Airports Surrounding Dothan

– Year

- End First Quarter 2010 (DOT T

- 100 and DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 17 

## Second Highest Domestic Fare in the Lower 48 United States

For the second year in a row, Dothan's average domestic fare was the second highest fare among all airports in the Lower 48 United States (Exhibit 10) . At $351 each way, or $702 roundtrip, Dothan's average domestic fare

was seco nd only to Inyokern, Calif ornia, and Dothan is one of only four Lower 48 markets with an average one

way fare greater than $300 in the year

- end first quarter 2010. While several larger airports in the U.S. claim their
market suffers from " high fares "
, Dothan area travelers might b elieve a low

- cost carrier entered the market if they could pay the average fare of m arkets such as Huntsville, Columbia, Shreveport or Memphis.

Exhib it 10 : Domestic O&D Passengers, PDEW and Average Domestic One

- Way Fare at the 25 Lower 48 Airports with the Highest Domestic Fares

– Year

- End First Quarter 2010 (DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 18 

## STRATEGIC PLAN

Goals

Dothan has two primary goals for its Small Community Air Service Development Grant proposal for service to
Dallas/Ft. Worth on American :

 Lower fares to both military and non

- military travelers in Dothan by introducing a competitor

 Reverse the decline in Dothan's traffic by stimulating new traffic and recapturing traffic lost to other airports 

## Target Airline Support

During a meeting in June 2010 at the JumpStart conference, American Eagle expressed some interest in operating the proposed service from Dothan to Dallas/Ft. Worth , but American Eagle has a policy of not writing a letter of support for Small Community Air Service Development Grant proposals. American Eagle has indicated a minimum revenue guarantee will reduce its financial risk and may move Dothan

- Dallas/Ft. Worth above other opportunities that do not offer a minimum re venue guarantee.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 19 

## Local Dothan

- Dallas/Ft. Worth Traffic and Revenue

The local Dothan

- Dallas/Ft. Worth market has declined over the past ten year s as the a verage fare increased (Exhibit 11 ). In the year

- end first quarter 2010, the market produced 2.8 PDEW at an average fare of $307 each
way.

Exhibit 11 : Dothan

- Dallas/Ft. W orth PDEW and Average Fare

– Year

- End First Quarter ( DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 20 Quarterly data, as illustrated in Exhibit 12
, indicates the Dothan

- Dallas/Ft. Worth market size continued to decline over each of the past four quarters to 2.2 PDEW in first quarter 2010 at an average fare of $338 each way.

Exhibit 12 : Dothan

- Dallas/Ft. Worth PDEW and Average Fare

– Q uarterly Data

– First Quarter 2008 through First Quarter 2010 (DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 21 Wh ile local Dothan

– Dallas/Ft. Worth traffic is in the low single digits, nonstop service would likely stimulate the market. Analysis of markets American Eagle entered in the recent past indicates market sizes grew after American Eagle entered the market. Four of the markets American Eagle entered over the past three years fro m Dallas/Ft. Worth are Montgomery, Manhattan, Santa Fe and Roswell . While pre

- and post

- service market sizes vary among the markets from virtually no traffic in Santa Fe and Roswell to 1.6 PDEW in Manhattan and 10.7 PDEW in Montgomery, the average pre

- mar ket size in these markets was 3.1 PDEW. The average post

- service market size among these markets was 22.4 PDEW. The largest increase came in the Roswell market where traffic grew from virtually no traffic to 27.0 PDEW. While the Dothan market may behave differently, traffic growth in Montgomery, Manhattan, Santa Fe and Roswell is likely a strong indication the Dothan

- Dallas/Ft. Worth market will also likely grow significantly if nonstop service is introduced.

Exhibit 13 : Pre

- and Post

- Service Market Siz es in Recent New American Eagle Dallas/Ft. Worth Markets (DB1B Data)

While the Dothan

- Dallas/Ft. Worth market size will likely increase with the introduction of nonstop service, the average fare will likely decline. Analysis of the same new American Eag le markets, Montgomery, Manhattan, Santa Fe and Roswell, indicate the average fare in the post

- service period was $152. While it would be unreasonable to assume the average Dothan

- Dallas/Ft. Worth fare would fall from its most recent level of $307 in
the year
- end first quarter 2010 or $338 in first quarter 2010 to $152, the average decline in Montgomery and Manhattan was 25%. A 25% decline in the year

- end first quarter Dothan

- Dallas/Ft. Worth fare would equate to a decline of $76
, or a fare of $230. A de cline of 25% in the first quarter 2010 Dothan

- Dallas/Ft. Worth fare would result in a decline of $85
, or a fare of $254. While the post

- service fares are still relatively high, they would represent savings to Dothan travelers and are sufficiently high en ough to make Dothan an exceptionally attractive opportunity for American Eagle.

Exhibit 14 : Pre

- and Post

- Service Average Fares in Recent New American Eagle Dallas/Ft. Worth Markets (DB1B Data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 22 

## Similarities to the Col umbus, Georgia

- Dallas/Ft. Worth Market

American Eagle began service from Columbus, GA to Dallas/Ft. Worth on July 15, 2010 . In the year

- end first quarter 2010, the Columbus

- Dallas/Ft. Worth market size was smaller than the Dothan

- Dallas/Ft. Worth market size, and has trended below Dothan's market size since 2003 (Exhibit 15 )

.

Exhibit 15 : Dothan and Columbus, GA

- Dallas/Ft. Worth PDEW

– Year

- End First Quarter (DB1B Data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 23 Like the market size, Dothan's average Dallas/Ft. Worth fare is also more favorable than Columbus. Despite a larger market size, Dothan's average fare has trended above the average Columbus fare (Exhibit 16 )

. In the
year
- end first quarter 2010, the average Columbus

- Dallas/Ft. Worth one

- way fare was $256, while the average

one
- way Dothan

- Dallas/Ft Worth one

- way fare was $307. With a higher average fare and a larger market size,
the data indicates there is more inherent demand in Dothan than Columbus, and the Dothan

- Dallas/Ft. Worth
market size would be stimulated even more than the Columbus market size. I f American Eagle was therefore willing to enter the Columbus market with less historical traffic and a lower average fare, Dothan should have even more appeal for American Eagle.

Exhibit 16 : Dothan and Co lumbus, GA

– Dallas/Ft. Worth Average One

- Way Fare

– Year

- End First Quarter (DB1B Data)

The overall Columbus domestic market size was 115 PDEW at an average fare of $344 in the year

- end first quarter 2010 versus Dothan's average market size of 96 PDEW at an average fare of $351. In first quarter 2010,

t he Columbus domestic market size stood at 101 PDEW at an average fare of $365; the Dothan domestic market size stood at 88 PDEW at a much higher average fare of $398.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 24 

## Connecting T

raffic and Revenue Via American 's Dallas/Ft. Worth Hub

Service connecting Dothan to American's Dallas/Ft. Worth hub would connect Dothan with at least 77 markets American serves from Dallas/Ft. Worth, primarily in the Central and Western United States, but also to two
markets in Asia and several markets in Mex ico and two other markets in Central America. Many of the markets served by American and American Eagle from Dallas/Ft. Worth are the homes of large military bases (San Diego, San Antonio, Honolulu
, Killeen and Manhattan) and would generate significant mil itary traffic from Dothan. As
illustrated in Exhibit 17 , the largest markets American could flow via Dallas/Ft. Worth are Los Angeles, Dallas/Ft. Worth, Seattle, Houston and Kansas City. The 30 largest markets American could flow via Dallas/Ft. Worth
gen erated 34 PDEW at an average fare of $393. Just as nonstop service would stimulate traffic in the local
Dothan

- Dallas/Ft. Worth market, traffic in flow markets American could serve via Dallas/Ft. Worth would also likely be stimulated. Since Delta has no competition in Dothan, the introduction of competition in the market by American would likely also reduce average fares in competitive markets.

Exhibit 17 : Non

- Circuitous Markets American Could Serve with Dothan

- Dallas/Ft. Worth Service (based on circ uity not greater than 67%)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 25 Exhibit 18 : Annual O&D Passenger s, PDEW and Average One

- Way Fares in the 30 Largest Markets American Could Serve with Dothan

– Dallas/Ft. Worth Service

– Year

- End First Quarter 2010 Data ( DB1B data)Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 26 

## Proposed Schedule

Dothan Regional Airport proposes a two roundtrip schedule ti med to capture flow traffic in markets north, south and west of Dallas/Ft. Worth with an early morning and a late afternoon departure from Dothan.

Exhibit 19 : Proposed American Eagle Dothan

- Dalla s/Ft. Worth Schedules



## Alternate Strateg ies

If American declined to serve the Dothan market, the Airport would like to offer the Small Community Air Service funding to either United Airlines in the form of a minimum revenue guarantee for Dothan

- Washingt on Dulles service or to US Airways for Dothan

- Charlotte service. Two roun dtrips would be proposed in each market

.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 27 

## PROJECT IMPLEMENTATION, MONITORING AND FUNDING Public / Private Partnerships

Dothan Area Chamber of Commerce

The Dothan Area Chamber of Commerce is a membership driven action agency designed to meet community and economic development needs. It is a voluntary non

- profit organization comprised of 1,000+ area business, professionals and individuals who have banded together to advance the comm ercial, financial, civic, agricultural, industrial and general interests of the community. This organization operates under the direction of a 34

- member board of directors that is elected by Chamber members. The Board, serving without pay, sets the policie s of the
Chamber.

Dothan Area Convention and Visitors Bureau

The Dothan Area Convention and Visitors Bureau actively promote s Dothan and the surrounding a r e a , a n d its attractions to visitors and play s a pivotal role in the community's air service development effo rts.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 28 

## Project Funding

Community and Airport cash and in

- kind contributions totaling $476,000 will supplement the proposed Small Community Air Service Development Grant of $750,000 requ ested from the Department Transportation.

Four com munity organizations will contribute $240,000 in cash toward the minimum revenue guarantee. T he
sources and the amount s of each contribution are:

1. City of Dotha n

– $100,000
2. Houston Count y

– $40,000
3. Dothan Area Chamber of Commerce

– $50,000
4. Dothan Area Con vention and Visitors Bureau

– $50,000

In addition to the community funding, the Airport will contribute $18,000 in cash for marketing the new service, and the Airport will waive fees and charges in American Eagle's first year of service estimated to be wor th $218,000.

The total value of cash and in

- kind contributions from the communi ty and the Air port is valued at $476,000 or 39 % of total project value (Exhibit 20).

Exhibit 20 : Program Funding SummaryDothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 29 

## Implementation Timeline

Our proposed implementation timeline for the project assumes the Department will award Small Community Grant Funding in December 2010. Once the award is announced
, Dothan Regional Airport will begin discussions with
American to begin service. Based on airline plannin g lead times and the need for advance bookings, we assume
American would not be able to begin service until at least June 2011. The first two milestones on the Airport's timeline are to execute the grant agreement with the Department and the minimum reven ue guarantee agreement
with American . Once service is announced and schedules are published, the Airport would begin marketing the new route and working with American to monitor advance bookings. The Airport will continue its marketing program and contin ue to work with American to monitor the route once service begins. The Airport will submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

Exhibit 20 : Proposed Project Ti meline (assumes grant announcements in December 2010 and service launch in June 2011)



## Start

- Up Period and Sustainability of the Market

The Airport will aggressively market the new service to business and leisure travelers in the catchment area. A benefit of beginning service in June 2011 is to capture the peak of traffic seasonality in the U.S. domestic and international air travel market. Beginning service in the summer will provide a strong start for the service and provide two

- and

- a
- half to th ree months to build business traffic in the market before leisure traffic demand falls in
mid

- August to early Septembe r. B usiness travel will become more important for the success of the route as leisure travel declines in the Fall. The Airport expects t he route to be self

- sustaining within the first two years of

ser vice and will include Dallas/Ft. Worth as part of its on

- going marketing and promotional campaigns of the airport.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 30 

## PROJECT MONITORING AND FINANCIAL CONTROL
Success Metrics

The s u ccess of th e progra m will be based on achieving the objectives of the program . The Airport will continuously monitor the performance of the route. Even before service begins we will communicate with
American on a weekly basis to monitor advance bookings and week

- ov er
- week of advance bookings. Marketing and promotional activities can be adjusted if advance bookings are weak or are not booking at a rate comparable
to other American Dallas/Ft. Worth markets.

Project Goals Success Metric

 Lower fares to both military and non

- military travelers in Dothan by introducing a competitor  Lower quarterly year

- over
- year fares in the markets American serves via Dallas/Ft. Worth (including fares in the local Dallas/Ft. Worth market)

 Reverse the decline in Dothan's traffic by
s timulating new traffic and recapturing traffic lost to other airports  Increased quarterly year

- over
- year origin and destination traffic

Once service begins, the Airport will rely on traffic and revenue data provided directly by the airline and the amount of reimbursements requested by the airline as indications of project success. T

- 100 data and DB1B data will also be analyzed to compare year

- over
- year market size growth on a quarterly basis. In addition, the airport will analyze leakage once the service has operated for a full year to determine the trend in leakage to other airpor ts. The Airport will report its success metrics in the quarterly grant reports to the Department. 

## Legal Sponsor

Dothan

- Houston County Airport Authority is the legal sponsor responsible for administering the program. Dothan

Houston County Airport Authori ty is a government entity.

Dothan

- Houston County Airport Authority
800 Airport Drive, Suite 15

Dothan , AL 36303

Art Morris , Airport Director

334

- 983

- 8101 

## Financial Controls

As the sponsor, Dothan

- Houston County Airport Authority and its governing body, Do than Airport Commission, will be the responsible partie s for all fiscal matters and the Department's reporting requirements. The Commission is established as a public governing body. As a public entity
, the Department can be assured thatDothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 31 proper financial controls are in place to guarantee that the Department ’s Grant will be used in accordance with any subsequent agreement. The Dothan Airport C ommission understands that the g rant is a reimbur sable grant, meaning the Commission is responsib le for program expenditures and will submit invoices to the Department for reimbursement, based on a percen tage of the total grant request.



## Expiration of Grant Funding Prior to Self Sustainability

Although data and our analysis of the data indicates the Dothan market could support the proposed American Eagle service to Dallas/Ft. Worth, the Authority would pursue stopgap measures in an effort to ensure continued community funding remains available in the event the proposed service is not as successful as anticipated. After service begins, the Authority will provide monthly service updates to civic entities to keep them abreast of American Eagle's success in the market.Dothan Regional Airport, Dothan, Alabama

Small Community Air Service Development Program Proposal

– 2010 

### 32 

## APPENDIX A: REQUIRED SUMMARY INFORMATION
A. Applicant Information

Not a Consortium

Interstate Consortium

I ntrastate Consortium
Community now receives EAS subsidy
Community (or Consortium member) previously receive d a Small Community Grant
If previous recipient: Date of Grant: October 19, 2003 Expiration Date of Grant: October 19, 2005



## B. Public/Private Partnerships

Public

 Dothan Regional Airport Commission

 City of Dothan

 Houston County

Private

 Dothan Area Chamber of Commerce

 Dothan Area Convention and Visitors Bureau 

## C. Project Proposal

Marketing Upgrade Aircraf t New Route Personnel Increas e Frequency Low Fare Service Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (specify) Revenue Guarantee Launch New Service Start

- Up Cost Offset First Service Stu dy Secure Additional Carrier



## D. Existing Landing Aids at Local Airport

Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other (specify)Dothan Regional Airport, Dothan, Alabama

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### 33 

## E. Project Cost

F. Enplanements

2000 69,641 2004 67,301 2008 48,760 2001 54,960 2005 67,075 2009 42,955 2002 57,801 2006 56,519 2003 60,190 2007 48,084



## G. Is this application subject to review by state under Executive Order 12372 Process?

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


## H. Is this applicant delinquent on any federal debt?

No
Yes (explain)Dothan Regional Airport, Dothan, Alabama

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## APPENDIX B : COMMUNITY BACKGROUND Dothan and Southeastern Alabama Economic and Community In formation

Southeastern Alabama’s Economy

Located in Southeastern Alabama, the combined Dothan and Enterprise MSA is approximately twenty miles west
of the Georgia state line and eighteen miles north of the Florida state line. The city is the seat of Houston County
, with portions extending into nearby Dale County and Henry County . The population of the combined Dothan and Enterprise MSAs is 237,006 based on the 2008 U.S. Census Bureau estimate, and the Dothan MSA is the fifth largest MSA in Alabama behind Birmi ngham, Mobile, Huntsville and Montgomery and ahead of Tuscaloosa.

Major attributes of the communities include a strategic location, easy access via highways serving the region, a mild winter climate, strong work ethic, trained work force, a sound and div ersified economy, first

- rate educational institutions and a pro

- business tax structure.

Exhibit 21: Southeastern Alabama Area MapDothan Regional Airport, Dothan, Alabama

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### 35 Dothan’s economy is well

- diversified, with manufacturing comprising 17%, trade 17%, health care and social services 15%, ed ucational services 9%, and public administration at 8%, rounding

- out the top two

- thirds of industry groups. Dothan's economy includes agriculture
, aerospace , distribution, retail and advanced technology,
with Sony
, General Electric
, Michelin
, Dunbarton , Bar rington Seafood, Qualico Steel, Pemco World Air Services and several other companies represented. According to Dothan's 2008 Annual Financial Report, the 2008 fiscal year saw 250 new jobs and $50,000,000 in capital investment brought to the city. Althoug h peanut production remains a mainstay of the agricultural sector, cotton is gaining in importance. Tomato production is locally significant as well, especially in the nearby town of Slocomb , which styles itself "the Tomato Capital of the World".

There are 15 employers in the area with at least 300 employees. The largest area employer is Fort Rucker (Exhibit 22).

Exhibit 22: Largest Employers in the Dothan AreaDothan Regional Airport, Dothan, Alabama

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### 36 Median In come
Dothan’s median family income ranks as the second highest among MSAs in Alabama and the MSAs surrounding the Airport’s catchment area. Dothan’s median household income is $57, 906 , and Dothan’s low cost of living, relative to the U.S. average cost of living
, translates the median family income into $ 71,050 of purchasing power (Exhibit 23)

.

Exhibit 23: Median Family Income and Purchasing Power of Alabama MSAs and MSAs Surrounding Dothan Regional Air port’s Catchment Area ( CNN Money 2008 Best Places to L ive Report)Dothan Regional Airport, Dothan, Alabama

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### 37 Regional Center of Commerce

Dothan serves as a center of commerce for Southeastern Alabama and Southwestern Georgia. This is illustrated in Dothan’s retail sales per capita versus other MSAs surrounding Dothan’s catchment area and other MSAs in
Alabama (Exhibit 24 ). Residents in the region come to Dothan and Enterprise to spend money just as they would use Dothan Regional Airport if more capacity and competitive air fares were available. Dothan’s retail sales per capita is higher than v irtually all MSAs in the region, with the exception of Fort Walton Beach, and Fort Walton’s retail sales per capita is boosted by coastal vacation spending. Panama City’s retail sales per capita is also boosted by coastal vacation spending.

Exhibit 24: R etail Sales per Capita of the Largest MSAs in the Dothan Region

Fort Rucker

Fort Rucker is a U.S. Army base located near Dothan. It is the primary flight training base for Army Aviation and
is home to the United States Army Aviation Center of Excellence (USAACE) and the United States Army Aviation
Museum . Operational units on the post include the 1st Aviation Brigade and the 110th Aviation Brigade handling Army Aviation train ing, and the USAF 23d Flying Training Squadron for the training of Air Force helicopter pilots.

The US Army Aviation Center of Excellence is the dominant military facility at Fort Rucker. Training, doctrine, and testing are all key parts of the Center's mi ssion to develop Army Aviation's capabilities. All Army Aviation training has been undertaken at Fort Rucker since 1973, as well as training of US Air Force and ally helicopter pilots. The Center is home to the US Army Aviation Technical Test Center (ATTC) , which conducts developmental aircraft testing for Army Aviation. The United States Army Operational Test and Evaluation Command's Test andDothan Regional Airport, Dothan, Alabama

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### 38 Evaluation Coordination Office and TH

- 67 primary and instrument training are both located at Cairns Army
Airfield.

The 110th Aviation Brigade consists of five battalions using three different sites. 1st Battalion, 11th Aviation Regiment, operates and manages air traffic control services and flight simulation support for USAAVNC/Fort Rucker and the National Airspace Sys tem. 1st Battalion, 14th Aviation Regiment operates from Hanchey Army Heliport and conducts graduate level training using the AH

- 64D Apache Longbow and OH

- 58D Kiowa helicopters. 1st Battalion, 212th Aviation Regiment operates from Lowe Army Heliport and co nducts combat and night operational training, using the OH

- 58, UH

- 1, and UH

- 60 helicopters. 1st Battalion, 223d Aviation Regiment operates from Cairns Army Airfield and Knox Army Heliport and conducts flight training using the CH

- 47 Chinook helicopter and C

- 12 Huron aircraft. The Helicopter School Battalion operates from Lowe Army Heliport and, providing training for Latin American pilots under the United States Security Cooperation Program.

Additionally, due to the large number of Warrant Officers statione d there, the Warrant Officer Career Center and
the Warrant Officer Candidate School are located at Fort Rucker.

Support and other facilities at Fort Rucker include the Lyster Army Health Clinic, United States Army Aeromedical Research Lab, United States Ar my School of Aviation Medicine, and Army Aviation Museum.

The Arts

Built in 1915, the Dothan Opera House represents the elegance of turn

- of

- the

- century southern life. Theatre performances, spectacular concerts, symphonies
, ballet performances, and many other cultural events are regularly held in this landmark. Tours are available upon request. The Dothan Civic Center was constructed in 1975, and features 10,800 square feet of exhibit space, seating for 3,100, basketball floor, concession stands,
conference rooms and other amenities. Dothan Area Botanical Gardens offer a paved nature trail and rose and herb gardens, as well as a demonstration garden.

National Peanut Festival

The National Peanut Festival is the largest peanut festival in the United States and is held each fall in Dothan, Alabama, to honor peanut growers and to celebrate the harvest season. The festivities include games and amusement rides on a large midway, animal acts, agricultural displays, an outdoor amphitheater with live music concerts by national recording artists, beauty pageants, arts and crafts displays, contests, food and a two

- hour parade. The National Peanut festival also sponsors and holds field crop exhibits with prizes awarded to each
exhibitor.Dothan Regional Airport, Dothan, Alabama

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### 39 M useums
The United States Army Aviation Museum is an aviation museum located on Fort Rucker near Dothan. It has the largest collection of helicopters held by any museum in the world. The museum features some 50 aircraft on public display with aviation artifacts ranging from a replica of the Wright br others' Model B military biplane to an
AH

- 64 Apache from Operation Desert Storm. The museum has over 160 aircraft in its collection and holds 3,000
historical items.

Dothan also has other museums. The Wiregrass Museum of Art includes five galleries featu re changing exhibitions of visual and decorative arts in the historic building. Also features ARTventures, a hands

- on exhibit for children. The Landmark Park Agricultural Museum is the official agriculture museum of the State of Alabama. It
includes a 190 0s farmstead with farmhouse, outhouses and farm animals. The George Washington Carver Museum relates the story of the African

- American inventor who invented over 500 different products from peanuts and other plants native to the South. Aside from offering exhibits about Carver himself, this museum also offers information on African cultures and their influences on the world, prominent African

- American scientists, explorers and inventors, and the positive contributions made by African

- Americans in military affairs and the area of social development.

Sports and Recreation

The Robert Trent Jones Golf Trail offers a collection of 468 holes of championship golf on 11 different sites across
Alaba ma. Highland Oaks, the course located in Dothan, offers a 36

- hole complex featuring some of the longest and most classically designed holes on the trail. Highland Oaks Golf Course is part of Alabama's Robert Trent Jones Golf Trail , and was proclaimed by Golf Digest as the seventh

- best public course in the US. The 36

- hole facility offers three championship 9

- hole courses, plus a 9

- hole Par 3 course. Westgate Park and Water World is
a five

- field complex hosting local, regional, state and national softball tournaments . It is adjacent to Water World, Westgate Recreational Complex and the BMX Track. The Water World includes ocean

- sized waves in the giant wave pool and twisting 400

- foot (120 m) water slides. This 45,000 acre lake is located on the Chattahoochee River between Alabama and Georgia. The area surrounding the lake is rich with historic sites and towns. The lake itself is nationally known for its bass fishing.Dothan Regional Airport, Dothan, Alabama

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### 40 H igher Education

Dothan offers several opti ons for higher education

– large and small, public and private, 2 and 4 year schools. There is truly an opportunity for everyone.

Institutions of Higher E ducation in and Around Dothan

Troy University

Troy University’s Dothan Campus, located between the city of Dothan and Fort Rucker, is home to an outstanding faculty and staff that is dedicated primarily to serving the “nontraditional” adult learner. Here students can choose from more than 60 graduate and undergraduate degree options that are taught in day, evening and weekend classes, to accommodate busy adult learners with jobs and other commitments.

One of Troy University’s proudest traditions is the long relationship they’ve shared with the U.S. m ilitary. Troy University has been serving those who serve for decades all around the world in Dothan.

Set on 275 picturesque acres, the Dothan Campus is large enough to provide top

- notch programs and exceptional facilities close to where you live and work . Perhaps that’s why TROY was named the number one public university in Alabama by Forbes magazine in 2009 and has been a Princeton Review “Best in the Southeast” for five consecutive years.Dothan Regional Airport, Dothan, Alabama

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## APPENDIX C: LETTERS OF SUPPORTDothan Regional Airport, Dothan, Alabama

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### 42Dothan Regional Airport, Dothan, Alabama

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### 43Dothan Regional Airport, Dothan, Alabama

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### 44Dothan Regional Airport, Dothan, Alabama

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### 45Dothan Regional Airport, Dothan, Alabama

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### 46Dothan Regional Airport, Dothan, Alabama

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### 47Dothan Regional Airport, Dothan, Alabama

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### 48Dothan Regional Airport, Dothan, Alabama

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### 49Dothan Regional Airport, Dothan, Alabama

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### 50Dothan Regional Airport, Dothan, Alabama

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### 51