# August 27, 2010 An Integrated Program of Air Service Development via: An Enhanced Marketing and Advertising Campaign In Support of Lehigh Valley Air Service

Sponsor: Lehigh – Northampton Airport Authority Allentown, Pennsylvania George F. Doughty, Executive Director Congressional Code: PA-015
Dun & Bradstreet Number: 045140415 

# LEHIGH VALLEY INTERNATIONAL AIRPORT ALLENTOWN, PENNSYLVANIA Proposal Under the Small Community Air Service Development Program Docket: DOT-OST-2010-0124 Before the Office of the Secretary of Transportation US Department of TransportationLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 2 TABLE OF CONTENTS

Section Page

Summary Information 3

Introduction 6 Primary Objectives of Proposal 8 Executive Summary 9 Detailed Explanation of Proposal 14

Current Air Service 17

Air Service Deficiencies 23 Extenuating Factors Affecting Air Service 28 Availability of Alternate Airports 31
Use of Local/Federal Funds 32 Public/Private Partnerships 33 Pennsylvania’s Proposed Air Service Grant Program 34 Implementation Timeline 36 Air Service Advisory Groups 37 Local Air Service Development Efforts 38 In-kind Services from the Community 39

Performance Measures 40 Legal Sponsor 41

Financial Controls 42

Return on Investment 43 DOT Exit Strategy 44 Airport Information 45 Community Profile 46 Comparisons to Regional Communities 58

Conclusions 65Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 3 SUMMARY INFORMATION

Small Community Air Service Development Program
Docket DOT-OST-2010-0124



### A. Applicant Information

Not a Consortium Community now receives EAS subsidy
Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, date of Grant: ____________________________ expiration date of Grant: ___________________



### B. Public/Private Partnership

Public:

1. Lehigh-Northampton Airport Authority
2. City of Allentown
3. City of Bethlehem
4. City of Easton
5. Lehigh County
6. County of Northampton

Private:

1. Lehigh Valley Economic Development Corporation
2. Greater Lehigh Valley Chamber of Commerce
3. Lehigh Valley Convention and Visitors Bureau
4. Pocono Mountain Vacation BureauLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 4 C. Project Proposal

Marketing Upgrade Aircraft New Route
Personnel Increased Frequency Low Fare Service
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Other (Specify)
Revenue Guarantee Launch New Carrier Start Up Cost Offset First Competitive Service Study Secure Additional Carrier



### D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 200,000
2. State cash financial contribution: $ 0
3. Local cash financial contribution: $ 50,000 3a. Airport cash funds: $ 50,000 3b. Non-Airport cash funds: $ 0
3c. Total local cash funds: $ 50,000
4. TOTAL CASH FUNDING: $ 250,000
5. Local funds contributed from already existing Programs of projects included in line 3c: $ 0
6. Local funds contributed from new commitments
Or new resources included in line 3c: $ 50,000
7. Airport In-Kind contribution: $ Various Description: Additional In-Kind Marketing
8. Other In-Kind contribution: $ Various Description: Advertising and marketing match money
9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined
10. TOTAL PROJECT COST: $ 250,000Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 5 F. Enplanements at Airport

2000: 450,854
2001: 435,490
2002: 352,195
2003: 349,265
2004: 355,745
2005: 343,335
2006: 360,085
2007: 396,005
2008: 319,995
2009: 374,896



### G. Is Application Subject to Review by State Under Executive Order 12372 Process?

This application was made available to the State on ______. Program is subject to review, but has not been selected by the State. Program is not covered.



### H. Is Applicant Delinquent on any Federal Debt?

NoLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 6 INTRODUCTION

The Lehigh Valley International Airport continues to be hurt by airline flight and seat cuts. These cuts have reduced the Airport’s overall capacity by more than 605,000 available seats in per year in just the last six years. In the last 12 months the Airport has lost service on two network carrier routes. Delta ended service between the Lehigh Valley and its hub in Cincinnati, after the merger with Northwest. Allentown retained service to both Atlanta and Detroit, but both routes saw frequency reductions. In fact, Delta now operates just one frequenc y per day between Allentown and Atlanta. Additionally, Continental ended its service between Allentown and Cleveland, leaving it to serve just one route from the Lehigh Valley International Airport.

With fewer available seats and higher average fares, there isn’t much incentive for Lehigh Valley travelers to fly from their hometown airport, other than its convenience. Airlines serving the Lehigh Valley simply don’t offer enough seats to satisfy local demand. And because, for so long, the Allentown market has been underserved, local residents are conditioned to expect to have to drive to other ai rports in the region to catch flights. Moreover,
there is little incentive for Allentown’s incumbent ai rlines to offer additional flights, as they can fill the planes they fly into and out of the market, while earning a fare and yield premium for their scarce product. The only incentive to increase service will be enplanements that continue to push the Allentown load factor to the 90% mark, forcing airlines to add seats to handle increased demand. The Airport believes its propos al for advertising and marketing funds in this application will have that impact.

The Lehigh Valley International Airport seeks a Small Community Air Service Development Grant in order to provide marketing and advertising support for all the current local service provided. As the Airport has lost two network carrier routes in the last 12 months, it has new urgency in requesting a SCASD Grant. In the past, the Airport has requested funding for revenue guarantees for additional service. This year the Airport sees its focus on service retention and support – which is why it has changed strategies for this Grant proposal. 

## “In the past, the Airport has requested funding for revenue guarantees... this year the airport [is focusing] on service retention and support.”Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 7 The best way to grow passengers in the short term in the Lehigh Valley will be to promote the current service to potential local travelers, and then in the longer term, to promote any new service the Airport is able to at tain. The Department of Transportation has a unique opportunity to invest a small amount in this grant propos al that could go a long way towards changing attitudes and impressions about air service in eastern Pennsylvania.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 8 PRIMARY OBJECTIVES OF PROPOSAL

Objectives for Program:

 Bolster performance of Le high Valley air service

 Increase enplanements through increased awareness

 Decrease leakage to other airports in the region through lower fares

 Long term service improvements due to increased viability of local air service

Means to Achieve Objectives:

 Build a larger budget for marketing and advertising efforts in the Lehigh Valley

 Target segments of the population in the region most likely to use local air service

 Work with businesses to increase usage of current air service through increased

awareness

Course of Action to Support Means:

 Develop targeted marketing and local advertising campaign for potential airport users in the Lehigh Valley

 Ensure campaign saturates the market with the message that local air service is competitive with service offered at other airports in the region

 Ensure campaign has funding to run for a significant period of time – at least 12
consecutive monthsLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 9 EXECUTIVE SUMMARY

The Lehigh Valley continues to be hurt by airline capacity cuts and fare increases. The Lehigh Valley International Airport has lost 43% of all of its airline seats in the last ten years. In fact, available airline seats have declined in Allentown in each of the last six years by at least 5%. These seat cuts have caused load factors to jump 44% in the same time period. But they have also caused a suppression of passenger traffic, as access to air service in the Lehigh Valley has
become more difficult.

The Lehigh Valley International Airport is positioned at the heart of the region between Philadelphia and New York City. The Airport is in Allentown, but it serves a much larger area including the cities of Bethlehem and Easton, among
others. The immediate metropolitan area is home to 15 Fortune 1000 companies, including 12 in the Fortune 500. Yet Allentown, the Lehigh Valley, and the region as a whole have long been underserved in terms
of commercial air service.

The Lehigh Valley International Airport doesn’t draw from as
wide an area as some other airports in the region, largely due to the competing service found in Philadelphia and New York/Newark. The Airport’s catchment area is limited to a 30-minute drive in all directions. Even in this tightly defined area –
where all residents are within 30 miles of the Ai rport – the population is almost 1.7 million (see Figure 1).

For the purposes of this proposal, those who live on the outskirts of Philadelphia, within the sphere of influence of the Philadelphia Airport, are not included in the analysis, even though many of 

### FIGURE 1: The Lehigh Valley International Airport’s Immediate Catchment AreaLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 10 those travelers might choose to fly out of Allentown as an alternat ive to Philadelphia. This was done so as to narrow the Lehigh Valley catchment area, and to prove the strength of the local market without inflating the size of the local population.

The primary Lehigh Valley International Airport catc hment area, as defined in Figure 1, is home to 1,691,525 people as of the most recent US Census estimates. The primary catchment area has grown by a solid 5.9% since 2000, with 93,700 new residents moving to the region in the last ten
years.

In the last 12 months the Airport has lost service on two network carrier routes, and had one less-than-daily
leisure route shifted to a different airport. In the
summer of 2009 Delta ended service between the Lehigh Valley and its hub in Cincinnati, after the merger
with Northwest. Allentown
retained service to both Atlanta and Detroit, but both routes saw frequency reductions. Then,
Continental ended its
service between Allentown and Cleveland, leaving it to serve just one route from the Lehigh Valley International Airport. Allegiant Air also shifted service, ending the route between Allentown and Orlando’s Sanford Airport and shifting that service to Orlando International (MCO) to better compete with AirTran, which also serv es MCO from Allentown.

As of August of 2010, the Lehigh Valley International Airport has non-stop service to 13 cities (see Figure 2). It’s important to make a distinctio n between the Airport’s “network” daily service and Lehigh Valley/Allentown Newark Toronto

Detroit
Chicago O’Hare
Philadelphia

Washington Dulles

Atlanta Charlotte

Myrtle Beach

Orlando (MCO)

Tampa/St. Petersburg

Punta Gorda/Ft. Myers Ft. Lauderdale Legend

Denotes Year ‘Round Service Denotes Seasonal Service 

### FIGURE 2: Current Service at the Lehigh Valley International Airport, August 2010Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 11 its less-than-daily leisure and seasonal service. In terms of daily network service, the Airport has access to eight hubs, with service operated by seven airlines: Air Canada, AirTran, American Eagle, Continental, Delta, United, and US Airways. The Airport also has less-than-daily service provided by Allegiant Air and DirectAir to five le isure-oriented destinations . Service to three of the leisure destinations is operated seasonally.

This less-than-daily leisure service has the impact of lowering the market’s overall average fare, while not truly providing adequate fare relief in the vast majority of larger markets. While Allentown’s overall average fare has been declin ing in recent years, the average is brought down by the ultra-low fares offered by Allegiant, DirectAir, and even AirTran in specific leisure
markets. The non-low cost ca rrier average is much higher.

In the last three years, Allentown has seen a decline in both the number of available seats in the market and in the number of passengers using the Lehigh Valley International Airport. As of the year ended first quarter 2008, airlines serving the Lehigh Valley offered a total of 1.2 million available seats (see Figure 3). By the year ended first quarter 2010 this number had dropped to just over one million – a loss of almost 200,000 annual available seats or 17% fewer seats for sale.

931,250 809,350 689,870 702,770 718,420 676,480 753,280 797,840 700,430 708,270

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 

### $200

$177 $172 $177
$162 $181 $169 $160 $165

$141 1,777,643

1,406,451

1,175,432 1,615,281 1,474,329 1,388,013
1,208,875 1,133,857 1,041,710 1,009,627 

### FIGURE 3: Available Seats, O&D Passengers, and Average One Way Fare at ABE YE1Q01

– YE1Q10; Sources: US DOT Table DB1A and US DOT T100 DataLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 12 At the same time, passengers were suppressed by 11%. As of the year ended first quarter 2008, the Lehigh Valley International Airport saw a total of 797,840 origin and destination passengers (see Figure 3). That number dropped to 708,270 passengers as of the year ended first quarter 2010. Passengers were suppressed by the lack of available seats, and by the reduced network connectivity with the loss of service through De lta’s Cincinnati hub and Continental’s Cleveland
hub.

While the overall average one way fare at the Lehigh Valley International Airport looks competitive, at $141 each way as of the year ended first quarter 2010 (see Figure 3), that fare does not adequately represent the cost of access to the national air transportation system. That average is brought down by fares on less-th an-daily service to leisure destinations.

When the average network carrier fare and average low cost carrier fare is broken out from the overall average fare in the Allentown market it is clear that network connectivity is still much more expensive at the Lehigh Valley International Ai rport than at other airports in the region. The average one way network carrier
fare in Allentown for 2009 was $165 each way (see Figure 4).The average one way less-thandaily leisure fare is just $71 for 2009. This low leisure fare, while excellent for vacation travelers, does little to support the economic growth of the region. Moreover, the leisure fare brings
down the market’s overall average fare and makes it appear as though air service is much cheaper in Allentown than it really is.

This is also illustrated by Allentown’s position among the Northeast region’s airports in terms of average one way fare. Of Northeast region airports (as defined by the FAA) with catchment area populations between 800,000 and 1.5 million, the Lehigh Valley International Airport has the second highest average one way network carrier fare, at $165 each way or $330 roundtrip in $198 $183 $177 $177 $165 $175 $186 $183 $189

$165

$107 $94 $86 $91

$71

$0 $50 $100 $150 $200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Network Fare LCC Fare 

### FIGURE 4: Average One Way Fare at ABE, Network Carriers vs. LCC CY2000

– CY2009; Source: US DOT Table DB1ALehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 13 2009 (see Figure 5). Only Hartford has a higher average fare for network carrier service – and its just $1 more each way than the fare in Allentown. Allentown’s average fare is 4.4% higher than the regional average of $158 each way in 2009. It
should also be noted that the average one way
network carrier fare at Philadelphia was $152 in 2009 - $13 less each way
than the fare at Allentown.

The higher average fares found at the Lehigh Valley International Airport cause many travelers to “leak” to other airports – primarily Philadelphia – without ever checking local service first. Those who live in the Airport catchment area are conditioned to check Philadelphia fares first, as those fares have ty pically been cheaper than the fares found in Allentown. Local area travelers immediately book flights from Philadelphia, or in some cases Newark, without ever checking to see if fares would be cheaper in the Lehigh Valley itself. This lack of general air service awareness is draining the local economy of valuable travel dollars, as travelers spend more than they would lo cally by flying fr om other airports.

Now is the time for the Airport to reverse this trend and change the regional mindset, by marketing the availability of local air service in a more aggressive way. The Airport cannot undertake a wide ranging advertising campaign on its own – its revenues simply cannot cover that kind of expense. It needs a federal partner for financial assistance in this case. The Airport believes a federal Small Community Air Service Deve lopment Grant will not only help it publicize its flight availability, but that it will also capture some leakage, and capture more local passenger traffic.

The Airport has a comprehensive plan to achieve its air service goals – in line with the SCASDG Program. The Airport’s marketing and advertisin g program includes many media platforms, and will blanket the region, ensuring widespread outreach throughout the Lehigh Valley. $166

$165

$161

$149

$142

$138

$132

$120

$100.00 $110.00 $120.00 $130.00 $140.00 $150.00 $160.00 $170.00 Hartford, CT

Allentown, PA

Albany, NY

Newburgh, NY

Providence, RI

White Plains, NY

Newport News, VA

Buffalo, NY Northeast Region Average: $158 

### FIGURE 5: Average One Way Network Fares at Northeast Region Airports CY2009; Source: US DOT Table DB1ALehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 14 DETAILED EXPLANATION OF PROPOSAL

The Lehigh Valley International Airport seeks a Small Community Air Service Development Grant in order to provide marketing and advertising support for all the current local service provided. The Airport has lost two network carrier routes in the last 12 months, which gives it new urgency in requesting a SCASD Grant for marketing and advert ising. In the past, the Airport has requested funding for revenue guarantees for additional serv ice. This year the Airport sees its focus on service retention and support – which is why it has changed strategies for this Grant proposal.

The declining number of available airline seats in the Allentown market is well documented in this proposal. But it must also be noted that, despite this loss of seats, the Lehigh Valley International Airport has done an excellent job of community outreach and advertising, despite a limited budget. This has been evidenced by a large increase in the percentage of seats that are being filled by paying passengers – or the Airport’s load factor.

In the last ten years, the load factor on all airlines serving the Lehigh Valley International Airport has gone up by 23 points, or 43%, to a high of 76% of seats filled in Allentown as of the year ended April 30, 2010 (see Figure 6). In the year ended April 30, 2001, the Airport filled just 53% of its seats. In the last three years, the average load factor has not dipped below 70%. This high load factor is a testament to strong community outreach and marketing work.

Nonetheless, most Lehigh Valley travelers access air service at airports other than the Lehigh Valley International Airport. This passenger “leakage” happens due to higher fares at Allentown, but also because of the la ck of local knowledge about available local air service. Those who live in the Airport catchment area have not been educated to check local fares first, before booking flights from other airpor ts. This lack of general air service awareness can only be overcome through a major investme nt in widespread mark eting and advertising. 53%

53% 56% 64%

61% 59% 68% 76% 72% 76%

40% 45% 50% 55% 60% 65% 70% 75% 80% 85%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 

### FIGURE 6: Load Factor Trend at the Lehigh Valley Int’l Airport, Year Ended April 30 2001

– 2010; Source: US DOT T100 DataLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 15 In order to counteract this trend the Airp ort plans a wide-ranging marketing campaign, saturating the entire Lehigh Valley. The camp aign will include frequent radio, television, billboard, and newspaper advertising, along wi th social media and giveaways. The Airport seeks $200,000 in federal funds, to be paired with $50,000 in brand new local funds – which is above and beyond the current Airport marketing budget – to support this marketing and advertising campaign. The campaign is planned to last for at least 12 months, and possibly as long as 18 months depending on the in-kin d matching donations made by local media companies.

The Airport has already developed a comprehe nsive marketing and advertising placement plan, which will include large bu ys on local and regional radio stations, along with local and regional news papers and magazines (see Figure 7).
The campaign will be
focused in the immediate Lehigh Valley MSA, however
it will also have limited ad placement in bordering
counties. It will not include any placement in the immediate Philadelphia and/or Newark airport
catchment areas.

Other types of marketing will
include new website materials for ease of booking
and better awareness of specific flight schedules. The Airport also plans specific outreach to area businesses, through Airport-affiliated employees, to meet with those who travel most frequently and ensure they are aware of the benefit of using local air service. Additionally, the Airport will have new support from its newly formed air service focus group that’s made up of many regional business leaders. 

### FIGURE 7: Print Advertising Example for AirTran at Lehigh Valley Int’l Airport, January 2010; Source: Lehigh Valley Int’l AirportLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 16 The actual advertising will build upon the target ed campaigns that the Airport has been running. These campaigns push local catchment area residents to check the fares at the local airport before booking their flights, and to think about the time and expense of driving to other airports in the region to access air
service.

Airport leaders believe the marketing and advertising campaign will dramatically
increase awareness of the service offered at the Lehigh Valley International Airport, thus increasing enplanements, and helping, in the long -term, to lower fares in the market, making the Airport more competitive with other airports in the region. Moreover, the Airport believes the marketing and advertising campaign, on this wide scale, will have an immediate impact. 

## “The actual advertising... [will] push

local catchment area residents to check the fares at the local airport before booking their flights.”Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 17 CURRENT AIR SERVICE IN THE LEHIGH VALLEY

In the last 12 months, the Lehigh Valley International Airport has lost network service to two separate hub airports on two separate airlines. After the summer of 2009, Delta ended service between Allentown and Cincinnati (see Figure 8). Additionally, Continental ended service to Cleveland, in favor of service to its larger hub at Newark. In that same time period, the Airport was able to recruit American Eagle to the market, with non-stop flights to Chicago O’Hare, providing direct competition to
United on that route.

The Airport has current service to eight hub airports and five origin and destination cities
on seven network carriers and two low cost leisure airlines. Air Canada has daily service to its hub in Toronto. American Eagle now serves Chicago O’Hare with three daily regional jet non-stops in each direction. Continental Express has multiple daily flights
to its hub at Newark. Delta Connection has multiple daily regional jet flights to its hubs in Atlanta and Detroit. United Express has multiple daily regional jet flights to its hubs at Chicago O’Hare and Washington Dulles. US Airways has multiple daily flights to its hubs in Charlotte and Philadelphia. AirTran has low cost, seasonal daily network service to Atlanta (which operates during the summer), with less than daily service to Orlando and Ft. Lauderdale. Allegiant Air has mainline jet serv ice several times per week to Orlando, with seasonal service to Myrtle Beach, and St. Petersburg/Tampa. DirectAir provides non-stop flights to Myrtle Beach and, seasonally, to Punta Gorda. Lehigh Valley/Allentown

Cleveland

Cincinnati 

### FIGURE 8: Service Lost at Lehigh Valley Int’l Airport, Summer 2009

– Summer 2010Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 18 Current Passenger Traffic in the Lehigh Valley

Over the last seven years, despite large gains in less-than-daily low cost service at the Lehigh Valley International Airport, the Allentown market has lost available seats in each and every year. From the year ended April 30, 2004 to the year ended April 30, 2010, the Allentown market lost more than a third of its available seats (see Figure 9). As of the year ended April 30, 2004, airlines offered 1.6 million available seats into and out of Allentown. By the year ended April 30, 2010, that number had dropped to just over one million available seats – a loss of available more than 600,000 annual available seats, or 37% of the market’s total capacity.

At the same time, total onboard passengers have been suppressed by the lack of available seats at the Lehigh Valley International Airport. In the year ended April 30, 2004, the Airport saw a total of just over a million origin and destination passengers (see Figure 9). By the year ended April 30, 2010, the market enplaned and deplaned just under 771,000 total passengers – a loss of more than 260,000 passengers, or 26% of passenger traffic. 1,777,643

1,406,451

1,175,432 1,615,281

1,474,329
1,388,013

1,208,875 1,133,857
1,041,710 1,009,627 945,385

740,257 662,149 1,038,227

902,059 824,636 827,704 862,743

752,360 770,938

500,000 700,000 900,000 1,100,000 1,300,000 1,500,000 1,700,000 1,900,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Available Seats Onboard Passengers 

### FIGURE 9: Available Seats and Onboard Passengers at the Lehigh Valley Int’l Airport, Year Ended April 30, 2001

– Year Ended April 30, 2010; Source: US DOT T100 DataLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 19 Non-stop, low cost service has elevated Orlando International (MCO) and Orlando/Sanford (SFB) to the position of Allentown’s top two orig in and destination passenger markets. Allegiant has now shifted its Orlando service to MCO to better compete with AirTran and Allentown’s other carriers, but as of the year ended first qu arter 2010, Sanford still generated 96 passengers per day each way (PDEW) on Allegiant service (see Figure 10). That ranked Sanford just behind Orlando International, which saw 114 passenge rs per day each way in the same period. Allentown passenger markets with non-stop low cost service have seen similar growth, with traffic on the Allentown – St. Petersburg/Tampa route now producing 59 passengers per day each way (PDEW). At the same time, the route between the Lehigh Valley and Ft. Lauderdale produced almost 42 passengers per day each way as of the year ended first quarter 2010.

While low cost markets thrive, some of the lega cy carriers’ strongest markets in and out of Allentown have been struggling. In the last four years, the Allentown – Atlanta route has fallen from the Lehigh Valley’s third largest origin an d destination passenger market to the seventh largest, with 26.5 passengers per day each way (PDEW) (see Figure 10). Other major business 83,370 70,120 43,300 30,870 30,620 24,660 19,380 16,750 16,470 16,100 14,420 13,390 12,120 11,140 10,140 9,620 9,530 7,520 7,450 7,390 114.2 96.1 59.3 42.3 41.9 33.8 26.5 22.9
22.6
22.1 19.8 18.3 16.6 15.3 13.9 13.2 13.1 10.3 10.2 10.1

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Orlando Sanford St. Petersburg Chicago-O'Hare

Ft. Lauderdale Cleveland Atlanta Charlotte Los Angeles Myrtle Beach

Las Vegas San Francisco Tampa Detroit Dallas/Ft. Worth Minneapolis/St. Paul Phoenix Nashville San Diego

Ft. Myers Annual Passengers PDEW 

### FIGURE 10: Top 20 O&D Passenger Markets at the Lehigh Valley Int’l Airport, Year Ended First Quarter 2010; Source: US DOT Table DB1ALehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 20 markets that have fallen on Alle ntown’s list of top 20 passenger markets include Chicago (which used to rank first, as of four years ago), Char lotte, Detroit, Los Angeles, San Francisco, and Dallas/Ft. Worth.

As high fares suppress origin and destination pa ssenger traffic on the Allentown – Atlanta route,
airline revenues on the route have fallen dram atically, as well. Atlanta has fallen from Allentown’s second largest revenue market to its fourth largest revenue market during the last four years. As of the year ended first quarter 2008, the Allentown – Atlanta route produced $6,100 in airline revenue per day each way (RDEW). By the year ended first quarter 2010 Atlanta revenue had dropped to just $4,830 per day each way – a loss of 21% of revenue on the route (see Figure 11).

While legacy carrier revenues on major business routes in and out of the Lehigh Valley fall in ranking, due to high fares suppressing passenger traffic, low cost carrier routes continue to see explosive revenue growth from Allentown. Low cost service on the Allentown – Orlando route has elevated it to the Lehigh Valley’s largest origin and destination revenue market, with more than $7.5 million in revenue in the year ended first quarter 2010, or $10,283 in revenue per day 7,506,470 6,457,520 4,824,130 3,525,900 3,274,640 3,119,070 3,035,390 3,034,240 2,938,680 2,459,440 2,366,980 2,344,050 1,797,450 1,618,010 1,527,200 1,512,090 1,369,990 1,362,250 1,264,070 1,235,100 $10,283 $8,846 $6,608 $4,830 $4,486 $4,273 $4,158 $4,156 $4,026 $3,369 $3,242 $3,211 $2,462 $2,216 $2,092 $2,071 $1,877 $1,866 $1,732 $1,692

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Orlando Chicago-O'Hare Sanford Atlanta St. Petersburg Ft. Lauderdale Cleveland Charlotte Los Angeles San Francisco Las Vegas Detroit Dallas/Ft. Worth Phoenix Tampa Minneapolis/St. Paul San Diego

Houston

Denver Seatte Annual Revenue
RDEW 

### FIGURE 11: Top 20 O&D Revenue Markets at the Lehigh Valley Int’l Airport, Year Ended First Quarter 2010; Source: US DOT Table DB1ALehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 21 each way (RDEW) (see Figure 11). Low cost carrier routes from the Lehigh Valley International Airport to St. Petersburg/Tampa and Fort Lauder dale saw similar revenue growth in the year ended first quarter 2010, with St. Petersburg/T ampa producing revenues of more than $3.2 million, or $4,486 in revenue per day each way. Fort Lauderdale airline revenues from Allentown grew to more than $3.1 million, or $4,273 in revenue per day each way.

There is a disconnect between pricing in thos e leisure markets from Allentown and all other markets with either direct or connecting network service. The less-than-daily leisure carrier average fare in the Lehigh Valley as of the year ended first quarter 2010 was $71 each way, compared to the network carrier average fare of $165 each way (see Figure 12). While low fares to Florida are available in Allentown, there are few low fares to other, non-leisure destinations, causing many business travelers to assume fares are too high at Allentown, thus “leaking” to other airports in the region.

While the average fare between the Lehigh Valley International Airport and Orlando is just $93 each way, before taxes, fees, and ancillary charges, the average fare to Chicago – which is half $93 $209

$102 $123 $182 $181 $178 $164 $184 $126 $210 $177 $157 $170 $129 $184 $144 $130 $190 $182

$0 $50 $100 $150 $200 Orlando Chicago-O'Hare

Ft. Lauderdale Cleveland Atlanta Charlotte Los Angeles

Las Vegas San Francisco Tampa Detroit Dallas/Ft. Worth Minneapolis/St. Paul Phoenix Nashville San Diego

Ft. Myers Jacksonville, FL Houston - Bush Denver Non-LCC Average: $165 

### FIGURE 12: Average One Way Fares at Top 20 O&D Passenger Markets at the Lehigh Valley Int’l Airport, Year Ended First Quarter 2010; Source: US DOT Table DB1ALehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 22 the distance from Allentown – is $209 each wa y as of the year ended first quarter 2010 (see Figure 12). These fare disparities are found in many of the Lehigh Valley’s top 20 passenger markets, based on whether that ma rket is primarily serving business travelers or leisure travelers, and the kind of service in those markets – daily versus less-than-daily.

Air Carrier Market Share in the Lehigh Valley

US Airways has been, and continues to be, the la rgest carrier in the Allentown market, although its market share has been eroded by about five points in the last two years. As of the year ended first quarter 2010, US Airways carried more than a quarter of all Allentown travelers who flew through the Lehigh Valley International Airp ort (see Figure 13). While US Airways market share has fallen slightly, Delta was able to grow its Allentown market share by more than 75% through its acquisition of Northwest Airlines. In 2008, Delta carried 12% of Lehigh Valley passengers.

Allegiant Air continues strong growth in the Allentown market, and is now ranked as the Airport’s second largest passenger airline (see Figure 13). In 2007, Allegiant was
ranked as a distant fourth in terms of the largest passenger airlines at Allentown. By the year ended first quarter 2010 Allegiant
carried almost 20% of all Allentown passengers. Allegiant’ s strong market share makes it appear as though the Lehigh Valley market is stronger than it really is – and that fares are lower than they really are. While Allegiant’s ultra low fares are perfect for vacation travelers to specific leis ure destinations, they do not tran slate to lower fares in markets where Allegiant provides no direct comp etition to Allentown’s network carriers. 

### US 25%

G4 20% DL 19% UA 19% FL 8% Other 8%

US Airways (US) 179,770 25.4% Allegiant Air (G4) 140,420 19.8% Delta (DL) 137,740 19.4% United (UA) 137,720 19.4% AirTran (FL) 59,720 8.4% Other 52,900 7.5% 

### FIGURE 13: Passenger Market Share at the Lehigh Valley Int’l Airport, Year Ended First Quarter 2010; Source: US DOT Table DB1ALehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 23 AIR SERVICE DEFICIENCIES IN THE LEHIGH VALLEY

Although the Lehigh Valley International Airport catchment area represents a large proportion of the population of the larger region, the Airport does not retain the number of passengers equal to its share of the regional population. In other words, the Airport is “leaking” a large percentage of its passengers to other airports – even though those airports are not particularly
close.

The Allentown-Bethlehem-Easton metropolitan statistical area (MSA) had a population of 808,210 as of the latest US Census estimates (see Figure 14). The larger region comprised of the metro areas of Allentown, Philadelphia, Harrisb urg, and Wilkes-Barre/Scranton has a current combined population of 7,885,873. Allentown’s share of the regional population is 10.3%.

In many markets, an Airport draws a number of passengers proportional to its overall population in the region. If that were
to be the case in the Allentown market, one could reasonably expect the Airport to
retain about 10% of the total passengers using all four airports in the larger region. However,
in the case of Allentown, the Lehigh Valley International Airport does not retain anywhere close to a tenth of the region’s passengers. Source: US Census Share of Population of Combined PHL/ABE/MDT/AVP Catchment Philadelphia (PHL) 5,838,471 74.3% Allentown (ABE) 808,210 10.3% Harrisburg (MDT) 660,042 8.4% Wilkes-Barre/Scranton (AVP) 549,150 7.0% Population Share ABE

MDT PHL AVP 

### Regional Population FIGURE 14: Regional Population Distribution, Source: US Census EstimatesLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 24 While the Allentown MSA is home to 10% of the region’s total residents, its airport retains just 2.6% of the region’s total origin and destination pass engers as of the year ended first quarter 2010 (see Figures 15 and 16). In the region, Allentown “l eaks” more passengers to other airports than any other airport. As of the year ended first quar ter 2010, the Lehigh Valley International Airport saw a total of 377,794 outbound origin and destination passengers. If the Airport had been able to enplane the number of regional passengers proportional to its share of population in the region, it would have been used by another 1,110,956 departing passengers. In effect, the Lehigh Valley International Airport “leaked” these passengers to other airports in the region – a leakage rate of 74.6%. The bottom line is that the Lehigh Valley International Airport only retains about a 25% of the departing passengers that should be expected based on its share of the regional population.

The largest beneficiary of Allentown’s passenger leakage appears to be Philadelphia. The Philadelphia International Airport had “reverse leakage” as of the year ended first quarter 2010, when it drew 23.5% more passengers than its proportion of the regional population. While Philadelphia makes-up 74.3% of the region’s population, it boards 91.8% of the region’s total departing origin and destination passengers (see Figures 15 and 16). If Philadelphia retained a number of departing or igin and destination passengers proportional to its regional population share, it would be expected to generate 10.7 million outbound passengers annually. As of the year ended first quarter 2010, Philadelphia enplaned almost 13.3 million outbound O&D passengers – almost 24% above its regional share. Many of those passengers likely came at the expense of the Lehigh Valley International Airport. Allentown

10.3%

Philadelphia

74.3% Harrisburg

8.4% Scranton 7.0%

Allentown

2.61%

Philadelphia

91.75% Harrisburg

4.25% Scranton 1.38% 

### FIGURE 15: Regional Population Share, Source: US Census Estimates

FIGURE 16: Regional Departing Pax Share, Source: US DOT T100 DataLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 25 Another way of determining passenger leakage fr om the Lehigh Valley International Airport to other airports in the region is by comparing th e economy of the Lehigh Valley to the economies of the nearest three cities with commercially-served airports. The easiest way to gauge each catchment area’s contribution to the economy of the region is to compare the gross metropolitan products (GMP) of each. A GMP is much like a gross national product – an overall gauge of economic activity in an area in dollars earned.

The United States Council of Mayors reports the
Allentown metro area (MSA) produced a GMP of $29 billion, which represented 7.3% of the total gross regional product (GRP) of the area including Allentown, Philadelphia,Harrisburg, and WilkesBarre/Scranton (see Figure 17). Philadelphia generated the largest portion of the GRP, with more than $321 billion, or 81%, while Harrisburg produced a GMP of $27.2 billion – good for almost 7% of the GRP.

Despite producing more than 7% of the total gr oss regional product (GRP), the Lehigh Valley International Airport retains just 2.6% of the regi on’s total origin and destination passengers (see Figures 18 and 19). In the region , Allentown leaks more passengers to other airports, relative to its gross metro product (GMP), than any airport in the re gion as of the year ended first quarter 2010.

As of the year ended first quarter 2010, the Lehi gh Valley International Airport generated a total of 377,794 enplaned origin and destination passengers (see Figures 18 and 19). If the Airport had
been able to board the number of outbound regional passengers proportional to its share of the GRP, it would have been used by another 677,339 passengers. In effect, the Lehigh Valley Source: United States Council of Mayors, June 2008 ABE

MDT PHL AVP

GMP Share Philadelphia (PHL) $321.4 Billion 81.1% Allentown (ABE) $29.0 Billion 7.3% Harrisburg (MDT) $27.2 Billion 6.9% Wilkes-Barre/Scranton (AVP) $18.6 Billion 4.7% 

### Gross Metropolitan Product (GMP) FIGURE 17: Regional Gross Metro Product (GMP) Distribution, Source: US Council of MayorsLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 26 International Airport “leaked” these departing pa ssengers to other airports in the region – a leakage rate of 64.2%. The Airport retains about 35% of the outbound passe ngers that should be expected based on its share of the gross regional product.

The main beneficiary of Allentown’s outbound passenger leakage, based on GRP, is, again, Philadelphia. Philadelphia experienced “reverse leakage” as of the year ended first quarter 2010, when it drew 13.1% more departing passengers than its proportion of the gross regional product (GRP). Whil e Philadelphia generates 81% of the GRP, it boards almost 92% of the region’s total outbound origin and destination passengers (see Figures 18 and 19). If Philadelphia retained a number of origin and destination passengers proportional to its GRP share, it would be expected to generate 11.7 million departing passengers annually. As of the year ended first quarter

2010, Philadelphia saw almost 13.3 million outbound O&D passengers – more than 13% above its projected GRP
share.

It has been established that the Lehigh Valley International Airport is losing a significant number passengers from its catchment area. Attention then turns to the reasons why travelers are driving to other airports. As is the case with many other airports experiencing leakage, it all comes down to the availability of flights on the right airlines at the right times, and, perhaps even more importantly, airfare perception. There is a perception in the region that fares at airports outside of Philadelphia Intern ational are priced much higher than the fares found at PHL, itself. This is often not the case , but those who live in the communities surrounding Philadelphia have been conditioned to not even check local airfares before booking from PHL. Allentown

7.3%

Philadelphia

81.1% Harrisburg

6.9% Scranton 4.7%

Allentown

2.61%

Philadelphia

91.75% Harrisburg

4.25% Scranton 1.38% 

### FIGURE 18: Regional GMP Share, Source: US Council of Mayors

FIGURE 19: Regional Departing Pax Share, Source: US DOT T100 DataLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 27 The Lehigh Valley International Airport has designed this Grant-supported project to change that regional mindset. This wide-ranging advertis ing campaign proposed in this application will challenge local consumers to check fares at th e Lehigh Valley International Airport first, by publicizing the deals available at the local airport. The campaign will result in a much widerbased knowledge of local air service availability, and eventually lead to reduced leakage.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 28 EXTENUATING FACTORS AFFECTING AIR SERVICE

The major extenuating factor affecting air service in the Lehigh Valley is the fact that airlines serving the Lehigh Valley International Airport offe r far fewer seats available for sale in Allentown than they do at other adjacent airports in the re gion. The lack of sufficient available seats for in the Lehigh Valley forces many travelers to drive to other airports to access the national air transportation system – with most flying in and out of the overcrowded Philadelphia International Airport. The small number of available seats at the Lehigh Valley International Airport as of the year ended first quarter 2010 is partially responsibl e for the Airport’s inability to retain a number of origin and destination passengers proportional to its population and gross metropolitan product.

As of the year ended first quarter 2010, airlin es offered a little more than 497,000 outbound available seats at the Lehigh Valley International Airport (see Figure 20). While airlines offered
fewer available seats at Scranton than in Allentown, Scranton’s local population is a third less than the population of the Lehigh Valley.
Airlines offered 59% mo re departing seats at Harrisburg than they offered in Allentown. And as of the year ended first quarter 2010, airlines offered 35 times the available seats in Philadelphia that they offered in Allentown.

With fewer available seats and higher average fares, there isn’t much incentive for Lehigh Valley travelers to fly from their hometown airport, other than its convenience. In many cases, the convenience does not outweigh the greater flight offerings and lower fares at other airports in the region. Moreover, in many cases local, Lehigh Valley passengers don’t even realize the breadth of flights offered at their airport, as they are conditioned to naturally use Philadelphia,
instead.

There is another illustration of just how few seats are available in the Lehigh Valley, especially when considering how large the market is: the number of departing seats available per capita as of the year ended first quarter 2010. Of the four adjacent airports in the region – Philadelphia, Harrisburg, Wilkes-Barre/Scranton, and Allentown, itself – the Lehigh Valley International Airport has the second fewest outbound available airline seats per capita (see Figure 21). Airlines 17,451,742

790,906

497,026

260,408

0 5,000,000 10,000,000 15,000,000 

### Philadelphia

Harrisburg

Allentown

Scranton 

### FIGURE 20: Available Departing Seats at Regional Airports, YE1Q10; Source: US DOT T100 DataLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 29 serving Lehigh Valley International offered just 0. 61 outbound seats per resi dent of the AllentownBethlehem-Easton metro area as of the year ended first quarter 2010. Allentown had 95% fewer departing seats per resident th an Harrisburg, which is a smaller community, and 386% fewer departing seats per capita than Philadelphia. The regional average number of departing seats per capita for the year ended first quarter 2010 was 2.42 - 293% higher than the average at the Lehigh Valley International Airport.

The number of seats per capita is an excellent data point for understanding how underserved non-hub and small-hub markets are. The data in this case illustrates how airlines have neglected the Lehi gh Valley market, and forced residents of the Lehigh Valley International Airport’s metro area to seek out air service at other airports in the region.

With so few available seats in the Allentown ma rket, it is no surprise that the Airport’s enplanements are well under the regional av erage for departing origin and destination passengers per capita. As of the year ended first quarter 2010, the Lehigh Valley International Airport generated just 0.47 departing passengers per residents of its metro area - 293% fewer than the regional average of 1.84 outbound passengers per capita (see Figure 22). The Lehigh Valley International Airport generated
the second fewest outbound passengers per capita of all adjacent airports as of the year ended first quarter 2010, producing 99% fewer departing origin and destination passengers per capita than Harrisburg and 386% fewer departing O&D passengers per capita than Philadelphia. Philadelphia was the only airport in the immediate region that generated more passengers per capita than the regional av erage as of the year en ded first quarter 2010 – 2.99

1.20

0.61

0.47

0.0 0.5 1.0 1.5 2.0 2.5 3.0 

### Philadelphia

Harrisburg

Allentown

Scranton Average Seats Per Capita: 2.42 

### FIGURE 21: Available Departing Seats Per Capita, YE1Q10; Source: US DOT T100 Data and US Census Estimates

2.27

0.93

0.47

0.36

0.0 0.5 1.0 1.5 2.0 2.5 

### Philadelphia

Harrisburg

Allentown

Scranton Average Passengers Per Capita: 1.84 

### FIGURE 22: Enplaned Passengers Per Capita, YE1Q10; Source: US DOT T100 Data and US Census EstimatesLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 30 meaning it has the impact of raising that average well above the average enplanements of other adjacent airports.

Although it may appear that the Lehigh Valley market doesn’t produce as many O&D passengers as other markets, that is not necessarily the case. The likely reality is that there aren’t enough seats to accommodate the demand for travel in the Allentown market, so many of those who live in the Lehigh Valley International Airport metro area are forced to drive to other airports, such as Philadelphia, to access the national air transportation system.

Airlines serving the Lehigh Valley simply don’t offer enough seats to satisfy local demand. And because, for so long, the Allentown market has been underserved, local residents are conditioned to expect to have to drive to other airports in the region to catch flights. Moreover, there is litt le incentive for Allentown’s incumbent airlines to offer additional flights, as they can fill the pl anes they fly into and out of the market, while earning a fare and yield premium for their scarce product. The only incentive to increase service will be enplanements that continue to push the Allentown load factor to the 90% mark, forcing airlines to add seats to handle increase d demand. The Airport believes its proposal for advertising and marketing funds in this application will have that impact. 

## “...Because, for so long, the
Allentown market has been underserved, local residents are conditioned to expect to have to drive to other airports in the region to catch flights.”Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 31 AVAILABILITY OF ALTERNATE AIRPORTS

The Lehigh Valley is surrounded by a number of ai rports offering various levels of service. However, the drive to all of these airports can be difficult due to traffic congestion. The closest alternate airport is Philadelphia International, which is 73 miles to the

south of Allentown, a drive – without taking into account prevailing traffic
conditions – of an hour and 20 minutes. The drive to Philadelphia also requires the
use of a toll road – the Pennsylvania Turnpike (see Figure 23).

The Lehigh Valley’s second closest alternate airport is Newark Liberty International, which lies 83 miles to the east of Allentown (see Figure 23). Traffic on this route can be quite heavy, so the drive often takes much longer than the
hour and a half it should. 

### FIGURE 23: Airports in the Region With the Lehigh Valley International Airport (ABE)Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 32 USE OF LOCAL/FEDERAL FUNDS

Marketing and Advertising

The Lehigh Valley International Airport proposes to spend a total of $250,000 on marketing and advertising promotions in support of local air service. $50,000 of the marketing budget will come from new Airport sources – in addi tion to the normal advertising budget of the Airport. $200,000 of the budget will come from federal funds un der this application. The funding should be sufficient to blanket the market with the messag e that local service is more convenient than service provided at other airports in the region . The campaign will be developed so that it targets specific segments of the population who ar e most likely to fly locally. For examples, see the “detailed explanation of the prop osal” section of this application.



### Additional Costs

As part of this program, the Lehigh Valley In ternational Airport understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. The Airport will pay for these additional expenses out of other airport sources and will not incorporate these fees and charges into this proposal.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 33 PUBLIC/PRIVATE PARTNERSHIPS

A number of local partners will be working with the Lehigh Valley International Airport to promote and market the new service. Contacts w ill be made to all Allentown-Bethlehem-Easton
members of chambers of commerce and similar or ganizations, and those with an interest in growing the economic base of the community thro ugh local business grow th, attraction of new businesses and the promotion of tourism and visitor traffic via the airport.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 34 PENNSYLVANIA’S PROPOSED AIR SERVICE GRANT PROGRAM

Another potential partner in the Lehigh Valley In ternational Airport’s Small Community Air Service Development Grant proposal is the State of Pennsy lvania. The State is cu rrently working towards an air service developmen t grant program of its own. Should the program be passed before the award of this federal grant, the Airport would use any funding obtained from the State as an additional match to its federal SCASD Grant application.

The proposal for this additional grant program, submitted to State leaders in Pennsylvania, is below. The program has not yet been passed, but there is widespread support for its
introduction.



# Draft 7/7/10

Pennsylvania Air Service Development Grant Program
Background
Pennsylvania airports continually strive to maintain and expand airline service. Airlines are requiring significa nt marketing support and start up funding as a condition for providing any new air service, o r in some cases, just to mainta in existing air service.  This trend is affecting most airports across the United States and a irports in the Commonwealth of Pennsylvania are no exception .  Pittsburgh International Air port recently worked with the Governor’s Office and Allegheny County officials to provide millions of dollars to secure non‐stop flights to Europe.  The intense competition for air se rvice is occurring at a time when airports are experiencing a decline in revenues, which mak es it more difficult to fully fund air service development initiatives.
Airports are limited, both by th eir budgets and by federal regu lations, as to the types and kinds of air service develop ment incentives that can be off ered to airlines to begin new service or to retain existing service.  Other states have recog nized the importance of supporting air service developmen t by funding marketing for com mercial service airports. South Carolina and Kansas are ex amples of national leaders in s upporting and funding air service development and retentio n. These states understand that direct financial support is often the only way to successfully attract new air service.
The creation of the Pennsylvania Air Service Development Grant Program would provide an additional tool for Pen nsylvania airports to use as part of their efforts to attract and retain airlines to their respective communities.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 35 Pennsylvania is beginn ing a debate on the funding of transporta tion and how to meet infrastructure needs.  The future of Pennsylvania airports and the significant economic impact they generate mu st be part of a policy solution .  Despite having significant positive economic impact in thei r regions, airports have not be en well‐integrated with community economic development o bjectives, particularly outside of Philadelphia and Pittsburgh.  PENNDOT and DCED mu st become more involved in a co ncerted effort to bring state resources to aviation economic development initiatives

. Proposal
It is proposed that Pennsylvania establish an Air Service Development Grant Program that would provide funding to he lp airports/communities attract and retain air service.  A program funding level of $2M‐$3M annually is recommended for gr ants to PA airports, regional economic development ag encies or municipalities.  The program will allow all Pennsylvania communities and their commercial service airports to more aggressively compete for air service.  All Pennsylvania commercial service a irports would be eligible for these grants.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 36 IMPLEMENTATION TIMELINE

The Airport’s proposed implementation timeline for the project assumes the Department will award Small Community Grant Fund ing in December 2010. Once the award is announced, the Lehigh Valley International Airport will begin wo rk with private marketin g and advertising firms, along with the Airport incumbent airlines, to build the campaign materials and to finalize the placement plan.

The first two milestones on the Airport's timeline are to execute the grant agreement with the Department and execute an agreement with a ma rketing and advertising firm to begin work. These milestones should be achieved by the end of January 2011. Additionally, the Airport will submit grant status reports on a quarterly basis to the Department throughout the proposed term of the marketing and advertising program. The specific timeline is listed below.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010 Executive Grant Agreement with DOT January 2011 Executive Agreement with Marketing Firm January 2011 Develop Creative February 2011 Develop Comprehensive Placement Strategy February 2011 Launch Campaign March 2011 Sustain Campaign March 2011 - May 2012 Monitor Route Performance March 2011 - May 2012 Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q2 2012 Close Grant May 2012Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 37 AIR SERVICE ADVISORY GROUPS

The Lehigh Valley International Airport is govern ed by the public Lehi gh-Northampton Airport Authority (LNAA). The LNAA is a 19-member Boar d of Governors. The members of the Board are appointed by county executives of Lehigh and Northampton. It is governed by the Pennsylvania Municipal Authorities Act. The airport auth ority owns and operates the Lehigh Valley International Airport (LVIA, airport code ABE) and manages Queen City Airport & Braden Airpark.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 38 LOCAL AIR SERVICE DEVELOPMENT EFFORTS

The Lehigh Valley International Airport continues it s efforts to bring additional airline competition to the Allentown/Bethlehem/Easton air service region. The Airport has been actively recruiting
additional service on a number of airlines – both majors and regionals. The Airport has participated in several dozen airport-airline meet ings per year over the last few years, as it
continues to make its case for new air service.

In 2005, the Airport realized it must curb leakage and lower average fares in the market through service from low cost carriers. The Airport de veloped a wide ranging plan to bring low cost carriers to the market, including a large scale in centive package for marketing, advertising, and airport fee waivers. This program was successful in bringing Allegiant Air to the Allentown market. Today, Allegiant serves three Florida routes from the Lehigh Valley International Airport, and Allegiant’s presence in the market has helped to lower average fares by 8% in the last calendar year.

In 2009, the Airport’s continuing talks with
AirTran culminated in the introduction of service on non-stop routes to both Orlando and Ft. Lauderdale. Both routes are served less-than-daily. Then, in 2010, the Airport was able to convince AirTran to expand its presence in the market by adding daily non-stops to Atlanta, operated seasonally in the summer.

The Airport also had recent success in recruiting American Eagle to launch non-stop flights to the Chicago O’Hare hub, providing better competition on westbound connecting service. These flights operate three times per day as of August of 2010.

The Airport has been able to secure this servic e expansion entirely through local funding. The Lehigh Valley International Airport has neve r received a Small Community Air Service Development Grant. All air service development work has been entirely funded by the Airport and the community.



## The Airport has been able to secure... service expansion entirely

through local funding... [having] never received a Small Community

Air Service Development Grant.”Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 39 IN-KIND SERVICES FROM COMMUNITY

The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services.

 Lehigh Valley Air Service Focus Group

o New group comprised of top business leaders in the region

 Lehigh Valley Economic Development Corporation

 Greater Lehigh Valley Chamber of Commerce

 Discover Lehigh Valley (formerly known as the Lehigh Valley Convention and Visitors Bureau)

 Pocono Mountain Vacation Bureau

 City of Allentown

 City of Bethlehem

 City of Easton

 County of NorthamptonLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 40 PERFORMANCE MEASURES

The success of the program will be based on a pair of variables. The Airport will judge the first measure of success by the increased number of enplanements on its local air service. The
second measure of success will be based on how much average airfares charged in the community have gone down, with the increase in enplanements. The measurement of enplanements will include a monthly compar ison, once the program begins, to past enplanements numbers. The measurement of airfar es will be derived from US DOT OD1A reports.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 41 LEGAL SPONSOR

The Lehigh-Northampton Airport Authority is the legal sponsor responsible for administering the program. The Authority is a government entity.

Lehigh-Northampton Airport Authority Lehigh Valley International Airport 3311 Airport Road Allentown, Pennsylvania 18109 George F. Doughty, Executive Director 610.266.6001 George@lnaa.comLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 42 FINANCIAL CONTROLS

As the sponsor, the Lehigh-Northampton Airport Authority will be the responsible party for all fiscal matters and DOT reporting requirements. The group is established as an Airport Authority, which is a public governing body. As a public entity the DOT can be assured that proper financial controls are in place to guarantee that the DOT’s gran t 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 ex penditures and will submit invoices to the DOT for reimbursement, based on a percen tage of the total grant request.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 43 RETURN ON INVESTMENT

The Lehigh-Northampton Airpor t Authority has developed a cost effective and achievable strategy to increase enplanements and lower airfares at the Lehigh Valley International Airport. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The increased awareness of air service, increased enplanements on the service, and access to lower airfares with increased enplanements, is in line with the major goals of the Small Comm unity Air Service Development Program.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 44 DOT EXIT STRATEGY

The Lehigh Valley International Airport has develo ped this proposal as a one-time grant. The advertising and marketing program will commence as soon as this grant is awarded and last for at least twelve months. It is projected that lo cal enplanements will gr ow within the first few months of the launch of the advertising program.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 45 AIRPORT INFORMATION

The Lehigh Valley International Airport is the pr imary gateway for the communities of Allentown, Bethlehem, and Easton, Pennsylvania. The Airport is also an alternate for residents living in the northern suburbs of Pennsylvania’s largest city: Ph iladelphia. The Airport was originally built in 1929, and it’s one of the few in the country that sti ll serves its community from its original location.The facility’s previous name was the Allentown – Bethlehem – Easton Airport, hence its threeletter designator “ABE,” which the Airport still carries today.

The Lehigh Valley International Airport has two runways. The primary runway, 6/24, is 7,600 feet in length, with dual ILS (instrument landing system) approaches – able to handle virtually any aircraft in virtually any weather (see Table 30). The Airport’s secondary, crosswind runway, 13/31, is just under 5,800 feet in length, with a single ILS approach. 

### FIGURE 24: Aerial Photo of the Terminal of the Lehigh Valley International Airport (ABE)Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 46 LEHIGH VALLEY COMMUNITY PROFILE

Allentown is the largest city in the area known as Pennsylvania’s Lehigh Valley, joined in the Valley by Bethlehem and Easton. The region wa s originally settled in 1735, and formally incorporated in 1811. The region’s biggest growth occurred at the end of the 1800s, as the steel industry hit
its stride. While Bethlehem Steel is still based in the region, the Lehigh Valley’s economy has shifted away from heavy manufacturing in the last few decades. Today, high tech consumer electronics and health care are mainstays of the econom y of the Lehigh Valley.

The region is increasingly recognized for its high quality of life – preserving a smaller town feel with the amenities of the large cities that surround the Valley. The Lehigh Valley also offers the lowest cost of living in the northeast corridor, a good base of jobs requiring highly educated workers, a vibrant arts and culture scene, and close proximity to the world’s biggest and best cities.

The Lehigh Valley is also blessed
with a beautiful natural
environment. The three cities of the Valley are situated between a pair of ancient mountain ranges – Blue Mountain to the
north and South Mountain to the south. The Valley’s 730 square miles of rolling hills offer hiking, biking, skiing, and many other outdoor adventures, just steps from the city.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 47 What’s New in the Lehigh Valley in 2010

The Lehigh Valley continues to attract new investments, even in the recovering economy. Many businesses and investors from the larger cities in the region are now moving away from those more expensive markets, to the Lehigh Valley, du e to its close proximity and the availability of resources. The area surrounding Allentown has se en a number of recent business developments that signal it is an up-and-coming place for new development.

 The Lehigh Valley has become a center for gaming. The Sands Casino Group of Las Vegas has opened the Sands Bethworks in Bethle hem. The integrated resort offers a 300- room hotel, 200,000-square feet of retail space, a mutli-purpose convention center, and 3,000 slot machines.

 It was, perhaps, the largest business development since the first steel mill came to the Lehigh Valley – the announcement in 20 06 that Olympus, the Japanese camera company, would relocate its North American Headquarters to the Allentown MSA. The move continues to pay big dividends in the community, with Olympus now employing more than 800 people in administrative jobs in the Lehigh Valley. Today, Olympus not only helps to drive the region’s economy, but also its demand for air travel, as the company’s senior officers seek more reliable air transportation from the Lehigh Valley International Airport.

 The Dunn Twiggar Company announced one of the largest commercial and residential developments in Allentown’s history. The Comp any will invest more than $175 million in “The Waterfront” – a ten year project along the Lehigh River. The development will revitalize a blue collar neighbor hood and aging industrial site.

 Adding to the Lehigh Valley’s increasingly high-paying job base, Detroit-based NHT Consultants engineering firm moved into a new home office in Bethlehem. NHT will work on a number of major building projects in eastern Pennsylvania from its Lehigh Valley office, initially employing 16 engineers.

 The Lehigh Valley’s high-tech infrastructure ha s been upgraded significantly by start-up EMV Technologies, a leader in the use of nanotechnology to find new ways to handle kidney dialysis. The company, based in Bethlehem, near Lehigh University, has wonLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 48 millions in federal grant money to make its si te the leader in research in its field. As company CEO William Van Geertruyden said , “The research and production of nanotechnology products require a skill ed labor force and a good technology infrastructure. The Lehigh Valley has both.”

Allentown Economic Overview

While manufacturing was, at one time, the dominant industry in the Lehigh Valley, it has declined to just 15% of the total employment in the region. That might sound like economic disaster, but it’s been just the opposite. The economy in the Allent own MSA continues to diversify and expand, with 17% job growth in just the last year.

Major corporations still anchor the local economy, with companies such as Mack Trucks and Bethlehem Steel providing a base of well-paying steady jobs. But today, new industries in the high tech, nanotechnology, heath care, and engineering fields provide more jobs than the traditional “power companies.”

The Lehigh Valley is also a prime location for trade, with 25% of the entire nation’s population
located within 250-miles of downto wn Allentown. More than 50 motor freight carriers provide daily service to the area, and the Norfolk Southe rn rail line has a major hub in Allentown.

The Lehigh Valley labor pool is highly skilled, but its big drawback is that there aren’t enough workers to fill the available jobs. A severe workforce shortage in the region has caused a massive in-migration, causing the population in th e Lehigh Valley to jump by 13% in the last ten years. The main job surge is in the high tech fie ld, while other fields are either slowly increasing employment, or holding steady.

A number of major corporations have operations in the Lehigh Valley. In fact, the region’s list of largest employers reads like a “who’s who” of multinational companies. Among the most notable names are Mack Trucks, Guardian Life Insurance, Crayola, T-Mobile, LSI, Aetna, Olympus, Kraft Foods, Dun and Bradstreet, Verizon, Georgia Pacific, and Nestle Purina.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 49 1 LEHIGH VALLEY HOSPITAL CENTER 2 ST LUKE'S HOSPITAL 3 AIR PRODUCTS & CHEMICALS INC 4 LEHIGH COUNTY GOVERNMENT CTR 5 ALLENTOWN SCHOOL DISTRICT 6 STATE GOVERNMENT 7 LEHIGH VALLEY PHYSICIAN GROUP 8 MACK TRUCKS INC 9 PARKLAND SCHOOL DISTRICT 10 B BRAUN MEDICAL INC 11 LEHIGH VALLEY HOSPITAL MUHLENBERG 12 LUTRON ELECTRONICS CO INC 13 PPL SERVICES CORP 14 SACRED HEART HOSPITAL 15 DORNEY PARK/WILDWATER KINGDOM 16 EAST PENN SCHOOL DISTRICT 17 HARTFORD FIRE INSURANCE CO 18 ALLENTOWN, CITY OF 19 THE WOOD COMPANY 20 GIANT FOOD STORES LLC 21 WEIS MARKETS INC 22 CARBON-LEHIGH INTERMEDIATE 23 T MOBILE USA 24 AGERE SYSTEMS INC 25 WAL-MART ASSOCIATES INC 26 FEDERAL GOVERNMENT 27 WACHOVIA SHARED RESOURCES LLC 28 MUHLENBERG COLLEGE 29 THE RECEIVABLE MANAGEMENT 30 F L SMIDTH INC 31 GOOD SHEPHERD HOME 32 LEHIGH CARBON COMMUNITY COLLEGE 33 HEARTLAND EMPLOYMENT SERVICES 34 ALLIED PERSONNEL SERVICES INC 35 RODALE INC 36 HEALTH NETWORK LABORATORIES 37 THE MORNING CALL INC 38 AETNA LIFE INSURANCE COMPANY 39 WHITEHALL-COPLAY SCHOOL DISTRICT 40 KIDSPEACE NATIONAL CENTER FOR KIDS 41 BOSCH REXROTH CORP 42 DUN AND BRADSTREET INC 43 FISHER CLINICAL SERVICES INC 44 PPL GENERATION LLC 45 EASTERN INDUSTRIES INC 

### FIGURE 25: The Lehigh Valley’s 45 Largest Employers Source: Lehigh Valley Economic Development CorporationLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 50 1, Wal-Mart 13, Verizon Communications 17, Home Depot 44, Walgreens 82, The Hartford 85, Aetna Services, Inc. 131, Manpower, Inc. 257, Guardian Life Insurance 275, Air Products and Chemicals (Headquarters) 332, VF Corporation 336, PPL Utilities (Headquarters) 565, HCR Manorcare Health Services 864, LSI, Inc. 872, CF Martin

Select Company Profiles

Air Products and Chemicals Based in Allentown, and ranked 275 on the Fortune 500 list, Air Products and Chemicals produces atmospheric gases and the materials and equipment to dispense those gases. The company has annual revenues topping $10 billion, with markets in every state in the US and in 40 foreign countries. All administ rative and executive staff is based in Allentown.

Mack Trucks Founded in 1900, Mack Trucks is one of the oldest and largest heavy-duty truck producers in the world. Mack has its headquarters in Allentown, and the company is overseen by its owner, Volvo. All sales staff is based in Allentown. Mack has dealers in every state in the country, and a number of foreign countries from Australia to Europe. 

### FIGURE 26: Fortune 1000 Companies in the Lehigh Valley, By 2010 Rank Source: Fortune MagazineLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 51 Crayola, Inc. The worldwide leader in children’s creative products, Crayola has called Easton its home since the early 1900s. The company’s world headquarters and main manufacturing plant are still located in the Lehigh Valley. Crayola is a wholly-owned subsidia ry of Hallmark Cards. The Easton factory is also home to the “Crayola FACTORY,” a hands on Cr ayola museum designed for kids.

Just Born, Inc. Called the “maker of everyone’s favorite candies,” Just Born is a familyowned confectionery company based in Bethlehem. The company has its world headquarters in Bethlehem, in addi tion to its main factory, which offers daily tours. Among the Just Born products are household names like Mike and Ike, Peeps, Hot Tamales, and Teenee Beanee.

Olympus USA Olympus is a world reno wned maker of cameras. The company is based in Tokyo, Japan, but its North American headquarters are located in Center Valley, Pennsylvania – just outside Allentown. Olympus moved operations to the Lehigh Valley in 2006, due to the high cost of operations at its Long Island headquarters. Olympus has 2,900 employees worldwide, not including its subsidiaries – including 800 in the Lehigh Valley.

Dun and Bradstreet Known best as “D & B,” Dun and Bradstreet is one of the leading providers of business information in the country. Businesses an d communities are known nationwide by their “DUNS Number” – which helps track credit information. With revenues topping $1.4 billion in 2007, D & B has a major operation in Allentown.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 52 Higher Education in the Lehigh Valley

The Lehigh Valley is home to 11 colleges and universities, drawing 45,000 full-time students from
around the US and more than 40 foreign countries. These institutions range from community colleges to major state universities, from small liberal arts campuses to major engineering schools. The Lehigh Valley’s colleges and universities offer excellence for the region’s students and the region’s economy.

Cedar Crest College 1,600 DeSales University 2,900 East Stroudsburg University 6,300 Kutztown University 8,600 Lafayette College 2,300 Lehigh-Carbon Community College 5,500 Lehigh University 6,700 Moravian College 2,100 Muhlenberg College 2,500 Northampton Community College 5,800 Penn State University – Lehigh Valley 700

Total Enrollment 45,000

Select Higher Education Profiles

Lafayette College Located in Easton, Lafayette College is a private liberal arts institution with a history of excellence dating back to 1826. US News and World Report ranks Lafayette the 34 th best liberal arts college in America. The school is also listed, by Barron’s , as one of the 65 most competitive school s in the country for admission. Lafayette’s endowment is one of the largest in the country, indicating the general wealth of alumni. 

### FIGURE 27: Higher Education Enrollment in the Lehigh Valley, Fall 2010 Source: Lehigh Valley Economic Development CorporationLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 53 Lehigh University Founded in 1865, Lehigh University is named after the Valley in which it sits. The campus is located in Bethlehem, specializing in undergraduate and graduate programs in engineering. Lehigh is the “technical” campus for the region, providing an outstanding, highly ski lled workforce for the growing technical trades in the region. A number of small, high-tech companies have recently located to the area surrounding the campus in Bethlehem, taking advantage of the University’s research and faculty for their new advancements in the sciences. Lehigh is listed as, by US News and World Report , as one of the “top tier” universities.

East Stroudsburg University One of 14 state universities in the Pennsylvania State System of Universities, East Stroudsburg is located about 40 minute s to the north of the Lehigh Valley International Airport. The University was founded in 1893 as a teachers’ college, but today the campus offers programs in 68 liberal arts fields. The University’s teams compete in the NCAA’s Division II.

Kutztown University Kutztown University is another school in the Pennsylvania State System of Universities. The campus is located in Kutztown, which is about 15 minutes to the west of Allentown. The University is one of the oldest public institutions in the State, foun ded in 1866. Today, Kutztown offers students more than 100 programs in four un dergraduate colleges and one graduate college.

Muhlenberg College Located in Allentown, Muhlenberg College is a private liberal arts institution. The College is affiliated with the Evangelical Lutheran Church of America, but it maintains a religiously diverse student body. The College was ranked in the top 100 liberal arts colleges in the country by US News and World Report.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 54 Tourism in Eastern Pennsylvania

The Lehigh Valley is well known for its picturesqu e beauty, with the Lehigh River carving a wide valley through the hills of eastern Pennsylvania. The region is made up of three primary cities: Allentown, Bethlehem, and Easton. Each of the three cities offers excellence in the arts, cultural attractions, fine dining and shopping.

In the winter, the region becomes a mecca for skiers, with a pair of major ski resorts located within a short drive of the Lehigh Valley International Airport. In the summer, the region turns its attention to hiking, fishing, and biking, with a numb er of large lakes and trails through
the hills that surround all three cities.

Four large festivals are held in the Lehigh Valley each year. Musikfest is a large, 10 day festival held in Bethlehem each August. Mayfair is an arts and crafts festival held in Allentown each May. In September, attention turns back to Bethlehem for the Celtic Classic, a large Celtic heritage festival. Finally, the Great Allentown Fair is the oldest festival in the region. It’s been held on the Allentown Fairgrounds each August for the last 150 years.

The Lehigh Valley offers attractions that draw visitors not just from the major cities surrounding the region, but also from around the northeast, an d around the country. The Valley has a wide variety of things to do, from amusement parks to natural caves.

Bear Creek and Blue Mountain Ski Areas Located in the southernmost part of the Pocono Mountains, Blue Mountain and Bear Creek together offer more than 50 ski runs and 20 lifts, with a vertical drop of more than 1,600 feet. Blue Mo untain, the larger of the two resorts, also offers night skiing. The resorts are located within 45 minutes of the Lehigh Valley International Airport.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 55 Dorney Park and Whitewater Kingdom Drawing more than a million visitors ea ch year, Dorney Park and Whitewater Kingdom is one of the largest amusement parks on the east coast. Many of the park’s visitors travel some distance, with more than half those who buy tickets coming from Philadelphia and New York. The Park offers seven roller coasters, and a huge water park. It is open from the end of spring through fall.

America on Wheels Museum America On Wheels offers a glimpse of the past, present and future of the nation's over-the-road transportation syst em and preserve its history by looking back in time, collecting valuable artifa cts and vehicles and illustrating the tremendous impact transportation has had on people's daily lives. The elaborate galleries of America On Wheels feature the vehicles that put our nation, literally, on the road to international leadership in automotive transportation. Exhibits range from the latest in pe rsonal transportation vehicles, such as scooters and Segways, to the grand Mack Trucks that help feed and supply a growing country. Since its opening in April 2008, more than 50,000 visitors have toured America On Wheels.

Dutch Springs A spring-fed quarry lake near Nazareth, in the Lehigh Valley, Dutch Springs has become a major inland attraction for SCUBA divers. The lake is more than 100 feet deep, as water continues to fill the ar ea left over by a large rock quarry. The park offers a number of “submerged attractions” for SCUBA divers to search for underwater including submerged ai rcraft, buses, and transport trucks.

Colonial Industrial Quarter
Downtown Bethlehem has been transformed back to the way it was in the last 1700s. Th e Colonial Industrial Quarter is home to a number of living history attractions that operate the same way they did in the 1760s, including a tannery and waterworks. The Quarter also includes a full-scale village and an open air museum.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 56 Allentown Art Museum Founded in 1934 by noted impressionist painter Walter Emerson Baum, the Allentown Art Museum now houses a collection of more than 13,000 pieces, along with a library and archives hous ing more than 16,000 volumes. The
Museum is best known for its collections of impressionist painting, textile arts, and drawings.

Zoellner Arts Center Located on the campus of Lehigh University in Bethlehem, the Zoellner Arts Center opened in 1997 as a magnet for major arts performances. The Center houses a collection of three large theatres, along with studio performance space, and a sm all art museum. The Center has hosted such well known perfor ming groups as the New York Philharmonic, Hubbard Street Dance Chicago, MOMIX, and the Aquila Theatre Company.

No. 9 Mine and Museum A tribute to the Lehigh Valley’s mining economy of the past, the No. 9 Mine and Museum is the oldest continually operating anthracite coal mine in the world, having been opened in 1855. Each year, tens of thousands of visitors tour the mine shaft, descending 1,600 feet into the hillside, for a look at what coal mining was like at the turn of the century.

Crystal Cave One of the most popular natural attractions on the east coast, Crystal Cave is located just 15 minutes west of the Lehigh Valley International Airport in Kutztown. Discovered in 1871, the Cave is more than a half-million years old. It descends 155 feet below ground le vel, and draws tens of thousands of visitors each year.Lehigh Valley International Airport – Small Commu nity Air Service Development Grant – August 2010 

## 57 DaVinci Science Center Opened in 1996, Allentown’s DaVinci Science Center has quickly become one of the hottest cultural attractions in the Lehigh Va lley. The facility contains more than 200 hands-on exhibits, teaching lessons in biology , physics, and chemistry. The Center has partnerships with area schools and businesses to make sure all students have an adequate science education, supporting the gr owth of high-tech industry in the region.

Lehigh Valley Iron Pigs Baseball The AAA affiliate of the Philadelphia Phillies, the Lehigh Valley Iron Pigs play in the brand new Coca-Cola Park in Allentown. The Iron Pigs compete in the International League. The team draws almost a quarter-million fans to the park each year.Lehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 58 COMPARISONS TO REGIONAL COMMUNITIES

FIGURE 28: Top 50 Northeast Region Airports by Domestic Flights Completed, CY2009; Source: US DOT Form 41 Schedule T100

Outbound Percent of Airport CY 2007 CY 2008 CY 2009 Flights / Day CY 2009 07-09 08-09

1 Philadelphia, PA 198,351 198,023 191,665 525.1 11.4% -1.7% -3.2% 2 New York La Guardia, NY 177,880 171,913 160,626 440.1 9.6% -5.0% -6.6% 3 Boston, MA 161,278 150,625 146,557 401.5 8.7% -4.7% -2.7% 4 New York New ark, NJ 155,682 153,549 145,385 398.3 8.6% -3.4% -5.3% 5 New York J F Kennedy, NY 141,504 136,852 130,334 357.1 7.7% -4.0% -4.8% 6 Washington National, DC 131,104 131,372 128,796 352.9 7.7% -0.9% -2.0% 7 Washington Dulles, DC 135,072 126,582 121,966 334.2 7.3% -5.0% -3.6% 8 Baltimore, MD 116,276 111,315 110,704 303.3 6.6% -2.4% -0.5% 9 Pittsburgh, PA 84,057 64,117 55,017 150.7 3.3% -19.1% -14.2% 10 Buffalo, NY 37,456 37,555 36,842 100.9 2.2% -0.8% -1.9% 11 Hartford, CT 41,477 37,183 32,298 88.5 1.9% -11.8% -13.1% 12 Richmond, VA 33,519 32,563 29,797 81.6 1.8% -5.7% -8.5% 13 Norfolk, VA 33,199 30,544 28,678 78.6 1.7% -7.1% -6.1% 14 Providence, RI 35,895 32,071 28,522 78.1 1.7% -10.9% -11.1% 15 Rochester, NY 26,411 25,693 24,655 67.5 1.5% -3.4% -4.0% 16 Albany, NY 25,387 23,344 24,260 66.5 1.4% -2.2% 3.9% 17 Syracuse, NY 24,089 22,551 20,918 57.3 1.2% -6.8% -7.2% 18 Manchester, NH 26,974 24,418 20,435 56.0 1.2% -13.0% -16.3% 19 Nantucket, MA 26,054 23,473 19,741 54.1 1.2% -13.0% -15.9% 20 White Plains, NY 19,584 18,039 17,374 47.6 1.0% -5.8% -3.7% 21 Portland, ME 15,847 16,304 15,028 41.2 0.9% -2.6% -7.8% 22 Harrisburg, PA 16,082 15,139 14,423 39.5 0.9% -5.3% -4.7% 23 Burlington, VT 14,671 14,703 13,608 37.3 0.8% -3.7% -7.4% 24 Hyannis, MA 18,185 15,409 12,494 34.2 0.7% -17.1% -18.9% 25 Long Island, NY 14,457 12,024 10,106 27.7 0.6% -16.4% -16.0% 26 New port New s, VA 10,090 10,022 9,488 26.0 0.6% -3.0% -5.3% 27 Roanoke, VA 10,947 10,347 9,042 24.8 0.5% -9.1% -12.6% 28 Allentown, PA 10,983 9,465 8,986 24.6 0.5% -9.5% -5.1% 29 Charleston, WV 10,723 9,559 8,598 23.6 0.5% -10.5% -10.1% 30 Martha's Vineyard, MA 8,760 8,661 8,227 22.5 0.5% -3.1% -5.0% 31 Charlottesville, VA 7, 971 7,600 6,774 18.6 0.4% -7.8% -10.9% 32 Wilkes-Barre/Scranton, PA 6,580 5,915 5,667 15.5 0.3% -7.2% -4.2% 33 Atlantic City, NJ 5,795 5,091 5,100 14.0 0.3% -6.2% 0.2% 34 Bangor, ME 6,248 4,346 4,572 12.5 0.3% -14.5% 5.2% 35 State College, PA 5,223 4,539 4,365 12.0 0.3% -8.6% -3.8% 36 Ithaca, NY 3,753 3,796 4,171 11.4 0.2% 5.4% 9.9% 37 Binghamton, NY 4,347 3,893 3,779 10.4 0.2% -6.8% -2.9% 38 Erie, PA 5,230 3,888 3,764 10.3 0.2% -15.2% -3.2% 39 New burgh, NY 7,376 5,959 3,475 9.5 0.2% -31.4% -41.7% 40 Elmira/Corning, NY 3,645 3,337 3,105 8.5 0.2% -7.7% -7.0% 41 Westerly, RI 3,143 3,196 2,786 7.6 0.2% -5.9% -12.8% 42 Block Island, RI 3,029 3,159 2,783 7.6 0.2% -4.1% -11.9% 43 New Bedford, MA 3,256 3,200 2,716 7.4 0.2% -8.7% -15.1% 44 Lynchburg, VA 2,295 1,987 2,470 6.8 0.1% 3.7% 24.3% 45 Salisbury, MD 2,850 2,655 2,464 6.8 0.1% -7.0% -7.2% 46 Huntington, WV 2,154 2,147 2,402 6.6 0.1% 5.6% 11.9% 47 Provincetow n, MA 2,490 2,522 2,273 6.2 0.1% -4.5% -9.9% 48 Lebanon, NH 1,210 1,163 2,075 5.7 0.1% 31.0% 78.4% 49 Dubois, PA 1,094 747 1,617 4.4 0.1% 21.6% 116.5% 50 Plattsburgh, NY 496 1,139 1,612 4.4 0.1% 80.3% 41.5% Total of Above 1,840,179 1,743,694 1,652,540 4,527.5 98.3% -5.2% -5.2%

Total Flights Completed 1,878,274 1,769,973 1,681,893 4,607.9 100.0% -5.4% -5.0% Avg. Ann. Change RankLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 59 FIGURE 29: Top 50 Northeast Region Airports by Domestic Seats Available, CY2009; Source: US DOT Form 41 Schedule T100

Outbound Percent of Airport CY 2007 CY 2008 CY 2009 Seats / Day CY 2009 07-09 08-09

1 Philadelphia, PA 19,134,703 18,735,464 17,779,804 48,712 11.7% -3.6% -5.1% 2 New York J F Kennedy, NY 16,405,343 16,146,423 15,256,287 41,798 10.0% -3.6% -5.5% 3 New York La Guardia, NY 16,684,744 16,203,930 15,074,750 41,301 9.9% -4.9% -7.0% 4 Boston, MA 15,922,073 15,233,581 14,893,464 40,804 9.8% -3.3% -2.2% 5 New York New ark, NJ 16,213,781 15,819,388 14,746,259 40,401 9.7% -4.6% -6.8% 6 Baltimore, MD 14,576,319 13,892,993 13,541,214 37,099 8.9% -3.6% -2.5% 7 Washington National, DC 12,664,343 12,614,694 12,109,299 33,176 8.0% -2.2% -4.0% 8 Washington Dulles, DC 11,995,107 11,394,509 10,896,154 29,852 7.2% -4.7% -4.4% 9 Pittsburgh, PA 6,648,776 5,755,453 5,094,222 13,957 3.3% -12.5% -11.5% 10 Buffalo, NY 3,368,176 3,603,401 3,459,366 9,478 2.3% 1.3% -4.0% 11 Hartford, CT 4,222,296 3,922,607 3,327,728 9,117 2.2% -11.2% -15.2% 12 Providence, RI 3,379,928 3,035,371 2,763,249 7,571 1.8% -9.6% -9.0% 13 Norfolk, VA 2,574,745 2,459,385 2,269,351 6,217 1.5% -6.1% -7.7% 14 Richmond, VA 2,464,029 2,446,264 2,254,985 6,178 1.5% -4.3% -7.8% 15 Manchester, NH 2,608,610 2,433,556 2,055,872 5,633 1.3% -11.2% -15.5% 16 Albany, NY 1,905,343 1,829,797 1,758,013 4,816 1.2% -3.9% -3.9% 17 Rochester, NY 1,913,689 1,875,495 1,751,934 4,800 1.2% -4.3% -6.6% 18 Syracuse, NY 1,566,156 1,483,295 1,362,403 3,733 0.9% -6.7% -8.2% 19 Long Island, NY 1,685,655 1,463,066 1,267,148 3,472 0.8% -13.3% -13.4% 20 White Plains, NY 1,248,275 1,224,125 1,240,878 3,400 0.8% -0.3% 1.4% 21 Portland, ME 1,045,208 1,160,385 1,132,812 3,104 0.7% 4.1% -2.4% 22 Burlington, VT 922,102 1,021,665 948,468 2,599 0.6% 1.4% -7.2% 23 Harrisburg, PA 855,686 848,474 825,599 2,262 0.5% -1.8% -2.7% 24 New port New s, VA 822,742 795,633 718,183 1,968 0.5% -6.6% -9.7% 25 Atlantic City, NJ 757,125 700,255 703,663 1,928 0.5% -3.6% 0.5% 26 Allentown, PA 582,252 531,115 520,029 1,425 0.3% -5.5% -2.1% 27 Roanoke, VA 535,734 511,468 455,416 1,248 0.3% -7.8% -11.0% 28 Charleston, WV 432,410 409,022 392,615 1,076 0.3% -4.7% -4.0% 29 Charlottesville, VA 319,161 303,593 280,471 768 0.2% -6.3% -7.6% 30 Wilkes-Barre/Scranton, PA 295,285 283,592 270,631 741 0.2% -4.3% -4.6% 31 New burgh, NY 657,248 499,904 256,785 704 0.2% -37.5% -48.6% 32 Bangor, ME 285,204 251,358 252,521 692 0.2% -5.9% 0.5% 33 Nantucket, MA 288,353 254,328 215,712 591 0.1% -13.5% -15.2% 34 State College, PA 218,998 192,767 192,603 528 0.1% -6.2% -0.1% 35 Ithaca, NY 143,828 147,503 165,403 453 0.1% 7.2% 12.1% 36 Erie, PA 208,866 174,412 163,305 447 0.1% -11.6% -6.4% 37 Elmira/Corning, NY 155,683 154,915 159,636 437 0.1% 1.3% 3.0% 38 Binghamton, NY 185,116 162,826 157,692 432 0.1% -7.7% -3.2% 39 Huntington, WV 99,668 120,899 155,161 425 0.1% 24.8% 28.3% 40 Hyannis, MA 176,825 146,597 119,229 327 0.1% -17.9% -18.7% 41 Lynchburg, VA 99,768 88,044 111,382 305 0.1% 5.7% 26.5% 42 Salisbury, MD 112,415 106,971 100,307 275 0.1% -5.5% -6.2% 43 Martha's Vineyard, MA 96,118 89,511 87,380 239 0.1% -4.7% -2.4% 44 Plattsburgh, NY 10,959 51,266 85,594 235 0.1% 179.5% 67.0% 45 New Haven, CT 63,885 57,412 55,379 152 0.0% -6.9% -3.5% 46 Staunton, VA 25,072 41,696 47,545 130 0.0% 37.7% 14.0% 47 Morgantow n, WV 31,934 39,430 42,879 117 0.0% 15.9% 8.7% 48 Worcester, MA 1,206 7,083 40,148 110 0.0% 477.0% 466.8% 49 Augusta, ME 22,159 22,078 39,216 107 0.0% 33.0% 77.6% 50 Clarksburg, WV 26,444 36,575 38,558 106 0.0% 20.8% 5.4%

Total of Above 166,659,545 160,783,574 151,636,702 415,443 99.6% -4.6% -5.7%

Total Seats Available 167,694,842 161,509,040 152,302,146 417,266 100.0% -4.7% -5.7% Avg. Ann. Change RankLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 60 FIGURE 30: Top 50 Northeast Region Airports by Domestic Onboard Passengers, CY2009; Source: US DOT Form 41 Schedule T100

Outbound Percent of Airport CY 2007 CY 2008 CY 2009 Paxs / Day CY 2009 07-09 08-09

1 Philadelphia, PA 14,076,810 13,923,683 13,366,637 36,621 11.8% -2.6% -4.0% 2 New York J F Kennedy, NY 12,814,483 12,705,658 12,078,954 33,093 10.6% -2.9% -4.9% 3 New York New ark, NJ 12,933,127 12,186,307 11,392,705 31,213 10.0% -6.1% -6.5% 4 Boston, MA 11,911,514 11,066,922 10,850,190 29,727 9.5% -4.6% -2.0% 5 Baltimore, MD 10,774,516 10,474,645 10,572,450 28,966 9.3% -0.9% 0.9% 6 New York La Guardia, NY 11,929,228 11,001,254 10,572,067 28,965 9.3% -5.9% -3.9% 7 Washington National, DC 8,963,773 8,617,308 8,414,920 23,055 7.4% -3.1% -2.3% 8 Washington Dulles, DC 9,064,513 8,510,226 8,277,522 22,678 7.3% -4.4% -2.7% 9 Pittsburgh, PA 4,907,682 4,293,616 3,947,837 10,816 3.5% -10.3% -8.1% 10 Buffalo, NY 2,682,247 2,733,456 2,667,153 7,307 2.3% -0.3% -2.4% 11 Hartford, CT 3,184,753 2,945,829 2,613,955 7,162 2.3% -9.4% -11.3% 12 Providence, RI 2,493,413 2,331,741 2,150,859 5,893 1.9% -7.1% -7.8% 13 Norfolk, VA 1,898,596 1,785,484 1,731,105 4,743 1.5% -4.5% -3.0% 14 Richmond, VA 1,820,217 1,744,527 1,655,437 4,535 1.5% -4.6% -5.1% 15 Manchester, NH 1,914,047 1,828,928 1,574,197 4,313 1.4% -9.3% -13.9% 16 Albany, NY 1,423,660 1,366,346 1,305,031 3,575 1.1% -4.3% -4.5% 17 Rochester, NY 1,428,543 1,346,647 1,272,251 3,486 1.1% -5.6% -5.5% 18 Syracuse, NY 1,184,152 1,113,714 1,022,792 2,802 0.9% -7.1% -8.2% 19 White Plains, NY 805,635 888,313 959,090 2,628 0.8% 9.1% 8.0% 20 Long Island, NY 1,167,086 1,049,070 930,611 2,550 0.8% -10.7% -11.3% 21 Portland, ME 819,987 875,655 871,351 2,387 0.8% 3.1% -0.5% 22 Burlington, VT 702,971 746,619 698,229 1,913 0.6% -0.3% -6.5% 23 Harrisburg, PA 644,464 638,532 619,824 1,698 0.5% -1.9% -2.9% 24 Atlantic City, NJ 568,785 534,289 534,601 1,465 0.5% -3.1% 0.1% 25 New port New s, VA 549,314 531,776 512,443 1,404 0.5% -3.4% -3.6% 26 Allentown, PA 432,394 396,104 382,662 1,048 0.3% -5.9% -3.4% 27 Roanoke, VA 348,937 312,108 298,211 817 0.3% -7.6% -4.5% 28 Charleston, WV 270,088 240,884 237,954 652 0.2% -6.1% -1.2% 29 Wilkes-Barre/Scranton, PA 220,190 219,762 205,840 564 0.2% -3.3% -6.3% 30 New burgh, NY 473,138 393,454 204,493 560 0.2% -34.3% -48.0% 31 Bangor, ME 205,121 188,876 199,117 546 0.2% -1.5% 5.4% 32 Charlottesville, VA 186,872 167,342 180,660 495 0.2% -1.7% 8.0% 33 State College, PA 143,836 130,673 130,670 358 0.1% -4.7% 0.0% 34 Erie, PA 142,419 124,080 121,091 332 0.1% -7.8% -2.4% 35 Elmira/Corning, NY 99,171 104,698 114,651 314 0.1% 7.5% 9.5% 36 Nantucket, MA 161,804 144,374 112,836 309 0.1% -16.5% -21.8% 37 Ithaca, NY 85,569 91,895 110,039 301 0.1% 13.4% 19.7% 38 Huntington, WV 62,284 81,176 104,013 285 0.1% 29.2% 28.1% 39 Binghamton, NY 120,169 105,408 98,086 269 0.1% -9.7% -6.9% 40 Lynchburg, VA 55,390 55,098 86,353 237 0.1% 24.9% 56.7% 41 Plattsburgh, NY 3,703 41,489 72,341 198 0.1% 342.0% 74.4% 42 Salisbury, MD 60,515 58,923 59,849 164 0.1% -0.6% 1.6% 43 Hyannis, MA 95,466 78,117 47,643 131 0.0% -29.4% -39.0% 44 Martha's Vineyard, MA 48,614 44,588 42,107 115 0.0% -6.9% -5.6% 45 New Haven, CT 37,572 33,901 32,982 90 0.0% -6.3% -2.7% 46 Worcester, MA 440 3,138 25,726 70 0.0% 664.6% 719.8% 47 Williamsport, PA 25,350 23,825 19,827 54 0.0% -11.6% -16.8% 48 Niagara Falls, NY 8,692 15,920 18,818 52 0.0% 47.1% 18.2% 49 Hagerstow n, MD 2,715 1,671 13,365 37 0.0% 121.9% 699.8% 50 Presque Isle, ME 15,589 13,224 13,300 36 0.0% -7.6% 0.6%

Total of Above 123,969,554 118,311,273 113,524,845 311,027 99.8% -4.3% -4.0%

Total Onboard Passengers 124,307,925 118,561,249 113,735,435 311,604 100.0% -4.3% -4.1% Rank Avg. Ann. ChangeLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 61 FIGURE 31: Top 50 Northeast Region Airports by Domestic Load Factor, CY2009; Source: US DOT Form 41 Schedule T100

Seats Overall Airport CY 2007 CY 2008 CY 2009 CY 2009 3 Yr Avg 07-09 08-09

1 Plattsburgh, NY 33.8% 80.9% 84.5% 85,594 79.5% 58.2% 4.4% 2 New burgh, NY 72.0% 78.7% 79.6% 256,785 75.8% 5.2% 1.2% 3 New York J F Kennedy, NY 78.1% 78.7% 79.2% 15,256,287 78.6% 0.7% 0.6% 4 Bangor, ME 71.9% 75.1% 78.9% 252,521 75.2% 4.7% 4.9% 5 Hartford, CT 75.4% 75.1% 78.6% 3,327,728 76.2% 2.0% 4.6% 6 Baltimore, MD 73.9% 75.4% 78.1% 13,541,214 75.7% 2.8% 3.6% 7 Providence, RI 73.8% 76.8% 77.8% 2,763,249 76.0% 2.7% 1.3% 8 Lynchburg, VA 55.5% 62.6% 77.5% 111,382 65.8% 18.2% 23.9% 9 Pittsburgh, PA 73.8% 74.6% 77.5% 5,094,222 75.1% 2.5% 3.9% 10 White Plains, NY 64.5% 72.6% 77.3% 1,240,878 71.4% 9.4% 6.5% 11 New York New ark, NJ 79.8% 77.0% 77.3% 14,746,259 78.1% -1.6% 0.3% 12 Buffalo, NY 79.6% 75.9% 77.1% 3,459,366 77.5% -1.6% 1.6% 13 Portland, ME 78.5% 75.5% 76.9% 1,132,812 76.9% -1.0% 1.9% 14 Manchester, NH 73.4% 75.2% 76.6% 2,055,872 74.9% 2.2% 1.9% 15 Norfolk, VA 73.7% 72.6% 76.3% 2,269,351 74.1% 1.7% 5.1% 16 Wilkes-Barre/Scranton, PA 74.6% 77.5% 76.1% 270,631 76.0% 1.0% -1.8% 17 Atlantic City, NJ 75.1% 76.3% 76.0% 703,663 75.8% 0.6% -0.4% 18 Washington Dulles, DC 75.6% 74.7% 76.0% 10,896,154 75.4% 0.3% 1.7% 19 Philadelphia, PA 73.6% 74.3% 75.2% 17,779,804 74.3% 1.1% 1.2% 20 Harrisburg, PA 75.3% 75.3% 75.1% 825,599 75.2% -0.2% -0.2% 21 Syracuse, NY 75.6% 75.1% 75.1% 1,362,403 75.3% -0.4% 0.0% 22 Albany, NY 74.7% 74.7% 74.2% 1,758,013 74.5% -0.3% -0.6% 23 Erie, PA 68.2% 71.1% 74.2% 163,305 70.9% 4.3% 4.2% 24 Burlington, VT 76.2% 73.1% 73.6% 948,468 74.3% -1.7% 0.7% 25 Allentown, PA 74.3% 74.6% 73.6% 520,029 74.1% -0.5% -1.3% 26 Long Island, NY 69.2% 71.7% 73.4% 1,267,148 71.3% 3.0% 2.4% 27 Richmond, VA 73.9% 71.3% 73.4% 2,254,985 72.9% -0.3% 2.9% 28 Boston, MA 74.8% 72.6% 72.9% 14,893,464 73.5% -1.3% 0.3% 29 Rochester, NY 74.6% 71.8% 72.6% 1,751,934 73.0% -1.4% 1.1% 30 Elmira/Corning, NY 63.7% 67.6% 71.8% 159,636 67.7% 6.2% 6.3% 31 New port New s, VA 66.8% 66.8% 71.4% 718,183 68.2% 3.4% 6.8% 32 New York La Guardia, NY 71.5% 67.9% 70.1% 15,074,750 69.9% -1.0% 3.3% 33 Washington National, DC 70.8% 68.3% 69.5% 12,109,299 69.5% -0.9% 1.7% 34 State College, PA 65.7% 67.8% 67.8% 192,603 67.0% 1.6% 0.1% 35 Huntington, WV 62.5% 67.1% 67.0% 155,161 65.9% 3.6% -0.2% 36 Ithaca, NY 59.5% 62.3% 66.5% 165,403 62.9% 5.7% 6.8% 37 Roanoke, VA 65.1% 61.0% 65.5% 455,416 63.8% 0.3% 7.3% 38 Charlottesville, VA 58.6% 55.1% 64.4% 280,471 59.2% 4.9% 16.9% 39 Worcester, MA 36.5% 44.3% 64.1% 40,148 60.5% 32.5% 44.6% 40 Binghamton, NY 64.9% 64.7% 62.2% 157,692 64.0% -2.1% -3.9% 41 Charleston, WV 62.5% 58.9% 60.6% 392,615 60.7% -1.5% 2.9% 42 Salisbury, MD 53.8% 55.1% 59.7% 100,307 56.1% 5.3% 8.3% 43 New Haven, CT 58.8% 59.0% 59.6% 55,379 59.1% 0.6% 0.9% 44 Nantucket, MA 56.1% 56.8% 52.3% 215,712 55.3% -3.4% -7.9% 45 Martha's Vineyard, MA 50.6% 49.8% 48.2% 87,380 49.6% -2.4% -3.3% 46 Hyannis, MA 54.0% 53.3% 40.0% 119,229 50.0% -14.0% -25.0% 47 Morgantow n, WV 12.5% 26.3% 27.7% 42,879 22.9% 49.0% 5.2% 48 Clarksburg, WV 16.8% 27.7% 26.6% 38,558 24.4% 25.8% -4.2% 49 Staunton, VA 19.5% 18.4% 18.7% 47,545 18.8% -2.1% 1.5% 50 Augusta, ME 18.9% 14.7% 10.1% 39,216 13.7% -27.1% -31.5%

Average Load Factor 74.1% 73.4% 74.7% 152,302,146 74.1% 0.4% 1.7% Rank Avg. Ann. ChangeLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 62 FIGURE 32: Top 50 Northeast Region Airports by Domestic O&D Passengers, CY2009; Source: US DOT Table DB1A

PDEW Percent of Airport CY 2007 CY 2008 CY 2009 CY 2009 CY 2009 07-09 08-09

1 Boston, MA 10,443,310 9,633,410 9,462,580 25,925 10.8% -4.8% -1.8% 2 New York La Guardia, NY 10,681,270 9,713,780 9,355,590 25,632 10.6% -6.4% -3.7% 3 New York J F Kennedy, NY 9,156,270 8,940,940 8,514,630 23,328 9.7% -3.6% -4.8% 4 New York New ark, NJ 9,779,510 9,055,060 8,103,840 22,202 9.2% -9.0% -10.5% 5 Baltimore, MD 8,001,400 7,826,830 7,851,870 21,512 8.9% -0.9% 0.3% 6 Philadelphia, PA 8,753,160 8,309,670 7,811,050 21,400 8.9% -5.5% -6.0% 7 Washington National, DC 6,886,690 6,377,320 6,326,990 17,334 7.2% -4.1% -0.8% 8 Washington Dulles, DC 5,330,520 4,862,320 4,525,960 12,400 5.1% -7.9% -6.9% 9 Pittsburgh, PA 3,899,760 3,664,520 3,437,190 9,417 3.9% -6.1% -6.2% 10 Buffalo, NY 2,474,600 2,554,600 2,464,510 6,752 2.8% -0.2% -3.5% 11 Hartford, CT 2,986,960 2,771,040 2,458,010 6,734 2.8% -9.3% -11.3% 12 Providence, RI 2,395,080 2,247,660 2,080,480 5,700 2.4% -6.8% -7.4% 13 Manchester, NH 1,865,850 1,782,750 1,544,090 4,230 1.8% -9.0% -13.4% 14 Norfolk, VA 1,674,960 1,592,950 1,516,950 4,156 1.7% -4.8% -4.8% 15 Richmond, VA 1,631,860 1,560,450 1,495,300 4,097 1.7% -4.3% -4.2% 16 Albany, NY 1,336,900 1,278,240 1,221,190 3,346 1.4% -4.4% -4.5% 17 Rochester, NY 1,297,820 1,222,280 1,150,970 3,153 1.3% -5.8% -5.8% 18 White Plains, NY 804,130 883,630 956,900 2,622 1.1% 9.1% 8.3% 19 Long Island, NY 1,159,930 1,040,860 924,490 2,533 1.1% -10.7% -11.2% 20 Syracuse, NY 1,084,220 998,580 918,510 2,516 1.0% -8.0% -8.0% 21 Portland, ME 776,980 832,960 830,720 2,276 0.9% 3.4% -0.3% 22 Burlington, VT 653,510 697,650 649,750 1,780 0.7% -0.3% -6.9% 23 Harrisburg, PA 583,130 570,290 557,970 1,529 0.6% -2.2% -2.2% 24 New port New s, VA 492,230 481,850 477,990 1,310 0.5% -1.5% -0.8% 25 Atlantic City, NJ 478,860 438,250 456,560 1,251 0.5% -2.4% 4.2% 26 Allentown, PA 395,680 366,060 352,580 966 0.4% -5.6% -3.7% 27 Roanoke, VA 301,470 268,260 256,040 701 0.3% -7.8% -4.6% 28 Charleston, WV 237,930 208,220 206,870 567 0.2% -6.8% -0.6% 29 New burgh, NY 451,310 371,240 192,990 529 0.2% -34.6% -48.0% 30 Wilkes-Barre/Scranton, PA 203,400 205,210 187,570 514 0.2% -4.0% -8.6% 31 Bangor, ME 188,290 165,080 179,470 492 0.2% -2.4% 8.7% 32 Charlottesville, VA 163,500 144,110 158,270 434 0.2% -1.6% 9.8% 33 State College, PA 125,580 116,480 112,240 308 0.1% -5.5% -3.6% 34 Erie, PA 131,010 112,360 111,310 305 0.1% -7.8% -0.9% 35 Nantucket, MA 157,250 141,990 109,900 301 0.1% -16.4% -22.6% 36 Elmira/Corning, NY 92,160 96,190 105,630 289 0.1% 7.1% 9.8% 37 Huntington, WV 57,940 78,950 101,150 277 0.1% 32.1% 28.1% 38 Ithaca, NY 79,840 82,430 99,900 274 0.1% 11.9% 21.2% 39 Binghamton, NY 113,900 97,060 92,790 254 0.1% -9.7% -4.4% 40 Lynchburg, VA 50,460 50,320 80,100 219 0.1% 26.0% 59.2% 41 Plattsburgh, NY 2,290 34,130 61,080 167 0.1% 416.5% 79.0% 42 Salisbury, MD 55,390 54,320 56,470 155 0.1% 1.0% 4.0% 43 Hyannis, MA 86,430 77,400 47,140 129 0.1% -26.1% -39.1% 44 Martha's Vineyard, MA 46,360 43,910 41,130 113 0.0% -5.8% -6.3% 45 New Haven, CT 34,610 31,850 31,200 85 0.0% -5.1% -2.0% 46 Williamsport, PA 24,270 23,040 19,340 53 0.0% -10.7% -16.1% 47 Presque Isle, ME 15,310 16,240 14,390 39 0.0% -3.1% -11.4% 48 Hagerstow n, MD 2,390 1,590 13,040 36 0.0% 133.6% 720.1% 49 New Bedford, MA 14,520 13,830 11,650 32 0.0% -10.4% -15.8% 50 Provincetow n, MA 11,890 11,170 10,590 29 0.0% -5.6% -5.2%

Top 50 Airports 97,672,090 92,149,330 87,746,930 240,403 99.8% -5.2% -4.8%

Total Regional Passengers 97,934,180 92,289,980 87,886,830 240,786 100.0% -5.3% -4.8% Avg. Ann. Change RankLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 63 FIGURE 33: Top 50 Northeast Region Airports by Domestic O&D Revenue, CY2009; Source: US DOT Table DB1A

RDEW Percent of Airport CY 2007 CY 2008 CY 2009 CY 2009 CY 2009 07-09 08-09

1 Boston, MA $1,714,021 $1,755,244 $1,451,023 $3,975 11.1% -8.0% -17.3% 2 New York J F Kennedy, NY $1,585,292 $1,629,313 $1,374,068 $3,765 10.5% -6.9% -15.7% 3 New York New ark, NJ $1,655,869 $1,691,456 $1,362,325 $3,732 10.4% -9.3% -19.5% 4 New York La Guardia, NY $1,564,413 $1,557,268 $1,325,496 $3,631 10.1% -8.0% -14.9% 5 Philadelphia, PA $1,260,285 $1,312,924 $1,121,397 $3,072 8.6% -5.7% -14.6% 6 Washington National, DC $1,161,979 $1,221,334 $1,088,039 $2,981 8.3% -3.2% -10.9% 7 Baltimore, MD $978,993 $1,063,718 $954,067 $2,614 7.3% -1.3% -10.3% 8 Washington Dulles, DC $933,434 $941,455 $805,874 $2,208 6.2% -7.1% -14.4% 9 Pittsburgh, PA $517,130 $530,378 $450,115 $1,233 3.4% -6.7% -15.1% 10 Hartford, CT $484,952 $479,422 $382,696 $1,048 2.9% -11.2% -20.2% 11 Buffalo, NY $298,432 $335,832 $285,183 $781 2.2% -2.2% -15.1% 12 Providence, RI $323,573 $330,494 $278,422 $763 2.1% -7.2% -15.8% 13 Norfolk, VA $273,976 $272,636 $242,316 $664 1.9% -6.0% -11.1% 14 Richmond, VA $251,430 $253,495 $213,700 $585 1.6% -7.8% -15.7% 15 Manchester, NH $244,829 $253,252 $199,469 $546 1.5% -9.7% -21.2% 16 Albany, NY $202,858 $209,957 $184,551 $506 1.4% -4.6% -12.1% 17 Rochester, NY $179,509 $184,308 $148,842 $408 1.1% -8.9% -19.2% 18 Syracuse, NY $173,646 $177,822 $145,414 $398 1.1% -8.5% -18.2% 19 White Plains, NY $112,015 $130,507 $127,515 $349 1.0% 6.7% -2.3% 20 Portland, ME $129,413 $143,459 $122,888 $337 0.9% -2.6% -14.3% 21 Long Island, NY $118,903 $125,608 $106,995 $293 0.8% -5.1% -14.8% 22 Burlington, VT $105,311 $113,270 $96,501 $264 0.7% -4.3% -14.8% 23 Harrisburg, PA $109,229 $112,458 $92,249 $253 0.7% -8.1% -18.0% 24 New port New s, VA $64,296 $69,470 $62,248 $171 0.5% -1.6% -10.4% 25 Allentown, PA $62,933 $61,151 $48,672 $133 0.4% -12.1% -20.4% 26 Roanoke, VA $56,853 $54,156 $43,920 $120 0.3% -12.1% -18.9% 27 Charleston, WV $47,147 $46,633 $39,891 $109 0.3% -8.0% -14.5% 28 Atlantic City, NJ $48,213 $34,071 $36,506 $100 0.3% -13.0% 7.1% 29 Bangor, ME $39,948 $37,322 $33,814 $93 0.3% -8.0% -9.4% 30 Wilkes-Barre/Scranton, PA $37,194 $38,997 $31,512 $86 0.2% -8.0% -19.2% 31 Charlottesville, VA $32,311 $31,711 $28,551 $78 0.2% -6.0% -10.0% 32 New burgh, NY $53,826 $50,855 $27,820 $76 0.2% -28.1% -45.3% 33 State College, PA $24,391 $25,160 $20,488 $56 0.2% -8.3% -18.6% 34 Binghamton, NY $20,156 $19,539 $16,252 $45 0.1% -10.2% -16.8% 35 Elmira/Corning, NY $15,303 $17,117 $15,781 $43 0.1% 1.6% -7.8% 36 Ithaca, NY $14,149 $16,273 $15,640 $43 0.1% 5.1% -3.9% 37 Erie, PA $20,992 $18,700 $15,152 $42 0.1% -15.0% -19.0% 38 Lynchburg, VA $11,925 $11,866 $12,942 $35 0.1% 4.2% 9.1% 39 Huntington, WV $10,039 $11,536 $10,507 $29 0.1% 2.3% -8.9% 40 Nantucket, MA $9,790 $10,509 $8,690 $24 0.1% -5.8% -17.3% 41 Salisbury, MD $8,837 $9,313 $8,320 $23 0.1% -3.0% -10.7% 42 Plattsburgh, NY $288 $4,187 $6,107 $17 0.0% 360.5% 45.8% 43 New Haven, CT $5,827 $5,999 $5,293 $15 0.0% -4.7% -11.8% 44 Martha's Vineyard, MA $3,787 $4,736 $4,446 $12 0.0% 8.3% -6.1% 45 Presque Isle, ME $3,935 $5,201 $4,288 $12 0.0% 4.4% -17.6% 46 Williamsport, PA $4,794 $4, 741 $3,550 $10 0.0% -13.9% -25.1% 47 Bar Harbor, ME $2,334 $2,890 $2,335 $6 0.0% 0.0% -19.2% 48 Morgantow n, WV $1,066 $1,873 $2,012 $6 0.0% 37.4% 7.4% 49 Hyannis, MA $2,439 $2,350 $1,621 $4 0.0% -18.5% -31.0% 50 Johnstow n, PA $1,912 $1,374 $1,476 $4 0.0% -12.1% 7.4%
Top 50 Airports $14,984,176 $15,423,337 $13,066,984 $17,900 99.9% -6.6% -15.3%

Total Regional Revenue $15,013,510 $15,442,721 $13,083,141 $17,922 100.0% -6.6% -15.3% A vg. Ann. Change RankLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 64 FIGURE 34: Top 50 Northeast Region Airports by Average Domestic Yield, CY2009; Source: US DOT Table DB1A

Itinerary Average Airport CY 2007 CY 2008 CY 2009 Mileage Fare 07-09 08-09

1 New Bedford, MA 72.87¢ 73.40¢ 73.53¢ 45 $33.08 0.5% 0.2% 2 Hyannis, MA 49.60¢ 56.11¢ 51.13¢ 67 $34.47 1.5% -8.9% 3 Martha's Vineyard, MA 34.64¢ 42.24¢ 42.25¢ 260 $110.01 10.4% 0.0% 4 Nantucket, MA 34.89¢ 39.12¢ 34.71¢ 231 $80.20 -0.3% -11.3% 5 Provincetow n, MA 29.80¢ 28.97¢ 30.20¢ 171 $51.72 0.7% 4.2% 6 Presque Isle, ME 20.11¢ 24.39¢ 21.84¢ 1,402 $306.29 4.2% -10.5% 7 Charleston, WV 20.56¢ 22.99¢ 19.20¢ 1,059 $203.41 -3.4% -16.5% 8 Roanoke, VA 21.31¢ 23.21¢ 18.72¢ 975 $182.60 -6.3% -19.3% 9 Charlottesville, VA 21.35¢ 23.41¢ 18.48¢ 1,047 $193.49 -7.0% -21.1% 10 Washington National, DC 18.77¢ 20.69¢ 18.04¢ 1,004 $181.20 -2.0% -12.8% 11 New York La Guardia, NY 16.63¢ 18.16¢ 15.87¢ 944 $149.86 -2.3% -12.6% 12 State College, PA 17.88¢ 19.10¢ 15.78¢ 1,236 $195.07 -6.1% -17.4% 13 Williamsport, PA 18.66¢ 18.18¢ 15.61¢ 1,252 $195.37 -8.5% -14.1% 14 New Haven, CT 16.97¢ 16.73¢ 15.47¢ 1,127 $174.30 -4.5% -7.5% 15 Bangor, ME 16.27¢ 18.52¢ 15.21¢ 1,315 $200.01 -3.3% -17.9% 16 Lynchburg, VA 24.49¢ 24.01¢ 15.21¢ 1,113 $169.29 -21.2% -36.7% 17 Salisbury, MD 17.77¢ 17.97¢ 15.13¢ 1,011 $152.94 -7.7% -15.8% 18 New port New s, VA 16.52¢ 17.45¢ 15.13¢ 875 $132.43 -4.3% -13.3% 19 Harrisburg, PA 17.26¢ 17.82¢ 14.80¢ 1,164 $172.22 -7.4% -16.9% 20 Richmond, VA 16.60¢ 17.12¢ 14.73¢ 1,009 $148.69 -5.8% -14.0% 21 Binghamton, NY 15.72¢ 16.43¢ 14.16¢ 1,322 $187.26 -5.1% -13.8% 22 Norfolk, VA 14.69¢ 15.19¢ 14.14¢ 1,189 $168.15 -1.9% -6.9% 23 Syracuse, NY 14.60¢ 15.81¢ 14.04¢ 1,187 $166.68 -1.9% -11.2% 24 Pittsburgh, PA 14.51¢ 15.32¢ 13.56¢ 1,006 $136.37 -3.3% -11.5% 25 Washington Dulles, DC 14.08¢ 15.02¢ 13.50¢ 1,415 $191.09 -2.1% -10.1% 26 Allentown, PA 15.88¢ 16.41¢ 13.40¢ 1,077 $144.32 -8.1% -18.3% 27 White Plains, NY 14.52¢ 14.93¢ 13.38¢ 1,035 $138.44 -4.0% -10.4% 28 Wilkes-Barre/Scranton, PA 15.21¢ 15.68¢ 13.37¢ 1,317 $176.04 -6.2% -14.7% 29 New burgh, NY 10.95¢ 12.55¢ 13.32¢ 1,117 $148.78 10.3% 6.1% 30 New York New ark, NJ 13.52¢ 15.13¢ 13.26¢ 1,350 $179.01 -1.0% -12.4% 31 Burlington, VT 13.83¢ 14.18¢ 13.17¢ 1,183 $155.85 -2.4% -7.1% 32 Ithaca, NY 17.13¢ 16.83¢ 13.14¢ 1,236 $162.41 -12.4% -21.9% 33 Huntington, WV 20.59¢ 17.89¢ 13.13¢ 805 $105.64 -20.1% -26.6% 34 Erie, PA 16.87¢ 16.53¢ 13.12¢ 1,079 $141.55 -11.8% -20.6% 35 Elmira/Corning, NY 15.81¢ 15.81¢ 13.01¢ 1,197 $155.71 -9.3% -17.7% 36 Portland, ME 14.65¢ 15.07¢ 12.94¢ 1,196 $154.71 -6.0% -14.1% 37 Albany, NY 13.17¢ 14.18¢ 12.89¢ 1,252 $161.40 -1.1% -9.1% 38 Philadelphia, PA 13.11¢ 14.26¢ 12.84¢ 1,174 $150.77 -1.0% -10.0% 39 Hartford, CT 13.43¢ 14.26¢ 12.80¢ 1,300 $166.46 -2.4% -10.2% 40 Rochester, NY 14.29¢ 15.17¢ 12.78¢ 1,054 $134.64 -5.4% -15.8% 41 Baltimore, MD 12.45¢ 13.98¢ 12.46¢ 1,019 $126.92 0.0% -10.9% 42 Providence, RI 12.38¢ 13.67¢ 12.44¢ 1,141 $141.89 0.2% -9.0% 43 Boston, MA 13.72¢ 14.95¢ 12.34¢ 1,319 $162.82 -5.2% -17.5% 44 Manchester, NH 12.12¢ 13.12¢ 11.99¢ 1,145 $137.31 -0.5% -8.6% 45 Long Island, NY 10.12¢ 12.29¢ 11.77¢ 1,070 $125.99 7.8% -4.2% 46 Buffalo, NY 12.54¢ 13.40¢ 11.67¢ 1,027 $119.83 -3.5% -12.9% 47 New York J F Kennedy, NY 11.80¢ 12.18¢ 10.76¢ 1,599 $172.04 -4.5% -11.7% 48 Atlantic City, NJ 10.67¢ 9.59¢ 9.53¢ 863 $82.23 -5.5% -0.6% 49 Hagerstow n, MD 23.43¢ 7.53¢ 9.23¢ 733 $67.62 -37.2% 22.6% 50 Plattsburgh, NY 13.79¢ 10.41¢ 8.36¢ 1,199 $100.27 -22.1% -19.7%
Average Regional Yield 13.95¢ 15.06¢ 13.24¢ 1,187 $157.19 -2.6% -12.1% Avg. Ann. Change RankLehigh Valley International Airport – Small Community Air Service Development Grant – August 2010 

## 65 CONCLUSIONS

The Lehigh Valley continues to be hurt by airline capacity cuts and fare increases. The Lehigh Valley International Airport has lost 43% of all of its airline seats in the last ten years. In fact, available airline seats have decline in Allentown in each of the last six years by at least 5%. These seat cuts have caused load factors to jump 44% in the same time period. But they have also caused a suppression of passenger traffic, as access to air service in the Lehigh Valley has
become more difficult.

There is a perception in the region that fares at airports outside of Philadelphia International are priced much higher than the fares found at PHL, itself. This is often not the case, but those who live in the communities surrounding Philadelph ia have been conditioned to not even check local airfares before booking from PHL.

The Lehigh Valley International Airport has designed this Grant-supported project to change that regional mindset. This wide-ranging advertis ing campaign proposed in this application will challenge local consumers to check fares at th e Lehigh Valley International Airport first, by publicizing the deals available at the local airport. The campaign will result in a much widerbased knowledge of local air service availability, and eventually lead to reduced leakage.

The Airport’s current marketing budget isn’t large enough for a wide scale marketing and advertising blitz, so the Airport must apply for funding from other sources. It is essential that the Airport take advantage of the current trend – using it to increase the number of passengers who fly locally, before average fares rise even more significantly.

The Airport believes a marketing blitz will cause pa ssengers to book locally, rather than “leaking” to other airports. Then, as passenger traffic grows in the market, through the increased marketing and advertising proposed in this application, service will grow naturally. The Airport has made a major change in its SCASD Grant st rategy this year, with a more sustainable approach to new service development. The Airport hopes this change will help it receive its first ever funding under the program. 

## “...those who live in the communities surrounding Philadelphia have been
conditioned to not even check local

airfares before booking from PHL.”