### APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM
DOCKET DOT-OST-2014-0113

SUMMARY INFORMATION 1



### All applicants must submit this Summary Information schedule, as the application coversheet, a completed standard form SF424 and the full application proposal on www.grants.gov
. For your preparation convenience, this Summa ry Information schedule is located at

http://www.dot.gov/policy/aviation-policy/sm all-community-rural-air-service/SCASDP

A. P ROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET 

### (D&B) DATA UNIVERSAL

NUMBERING SYSTEM 

### (DUNS) NUMBER 

### , INCLUDING 

### +4, EMPLOYEE IDENTIFICATION

NUMBER 

### (EIN) OR TAX ID 

### . Legal Sponsor Name: Texas A&M University

Name of Signatory Party for Legal Sponsor: Rex Janne (Texas A&M University)

DUNS Number: DUNS 831132097 Cage Code 1NZX5
EIN/Tax ID: 17460005311

B. L IST THE 

### N AME OF THE COMMUNITY OR CONSOR TIUM OF COMMUNITIES APPLYING 

### : 1. R ESEARCH 

### V ALLEY 

### A IR 

### S ERVICE 

### T ASK FORCE FOR 

### E ASTERWOOD 

### A IRPORT 

### , B RYAN

AND 

### C OLLEGE 

### S TATION 

### , TX 2.____________________________________________________ 3.____________________________________________________ 4.____________________________________________________

C. P ROVIDE THE FULL AIRPORT NAME AND 

### 3-L ETTER 

### IATA A IRPORT 

### C ODE FOR THE

APPLICANT 

### ( S 

### ) AIRPORT 

### ( S 

### ) (O NLY PROVIDE CODES FOR THE AIRPORT 

### ( S 

### ) THAT ARE

ACTUALLY SEEKING SERVICE 

### ).

1 Note that the Summary Information does no t count against the 20-page limit of the SCASDP application.Easterwood Airport Small Community Air Service Development Grant Application July 2014

2 

### 1. Easterwood Airport 2. CLL
3. 4.

D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED

BY THE 

### F EDERAL 

### A VIATION 

### A DMINISTRATION UNDER 

### 14 CFR P ART 

### 139? (I F 

### “N O 

### ”,
P LEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR

WHETHER AN APPLICATION UNDER 

### P ART 

### 139 IS PENDING 

### .)
Yes No (explain)

___________________________________________________________________________

___________________________________________________________________________

______ D. L IST THE 

### 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING

ORGANIZATION 

### , AND IF A CONSORTIUM 

### , TO EACH PARTICIPATING COMMUNITY 

### . 1. Texas 17 th 

### Congressional District 2.
3. 4.

E. A PPLICANT 

### I NFORMATION 

### : (C HECK 

### A LL 

### T HAT 

### A PPLY 

### )
Not a Consortium Int erstate Consortium Intrastate Consortium Community currently receives subs idized Essential Air Service Community (or Consortium member) prev iously received a Small Community Air Service Development Program Grant If previous recipient: Provi de year of grant(s):_______________________________; and, the text of the grant agreement section(s) setting forth the scope of the grant project :

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

F. P UBLIC 

### /P RIVATE 

### P ARTNERSHIPS 

### : (L IST 

### O RGANIZATION NAMES 

### )
PUBLIC PRIVATE 1. Texas A&M University (State of Texas) 1. Research Valley PartnershipEasterwood Airport Small Community Air Service Development Grant Application July 2014

3 

### 2. City of Bryan TX 2. Astin Aviation 3. City of College Station TX 3. Easterwood Airport Management 4. County of Brazos TX 4. Bryan-College Station Chamber of
Commerce 5. 5. Bryan-College Station Convention and
Visitors Bureau
G. P ROJECT 

### P ROPOSAL 

### : 1. G RANT 

### G OALS 

### : ( CHECK ALL THAT APPLY 

### )

Launch New Carrier Secure Additi onal Service Upgrade Aircraft
First Service New Route Service Restoration Regional Service Surface Transportation Professional Services 2


### Other (explain below) Regional marketing to promote CLL services and reverse traffic leakage

2. F INANCIAL 

### T OOLS 

### T O 

### B E 

### U SED 

### : ( CHECK ALL THAT APPLY 

### )

Marketing (including Advertising): promotion of the air service to the public Start-up Cost Offset: offsetting expenses to assist an air service provider in setting up a new station and starting new service (for example, ticket counter reconfiguration)
Revenue Guarantee: an agreement with an air se rvice provider setting forth a minimum guaranteed profit margin, a portion of which is eligible for reimbursement by the community
Recruitment of Air Carrier: air service development activities to recruit new air service, including expenses for airport market ers to meet with air service providers to
make the case for new air service
Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service; counted as in -kind contributions only

2 “Professional Services” involve a community co ntracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc.Easterwood Airport Small Community Air Service Development Grant Application July 2014

4 

### Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp (below wing) services provide d by third party ground handlers
Travel Bank: travel pledges, or deposited moneta ry funds, from participating parties for the purchase of air travel on an air carrier, with defined procedures for the subsequent use of the pledges or the deposit ed funds; counted as in-kind contributions only

Other (explain below)

___________________________________________________________________________

___

___________________________________________________________________________

H. E XISTING 

### L ANDING 

### A IDS AT 

### L OCAL 

### A IRPORT 

### : Full ILS Outer/Middl e Marker Published Instrument Approach Localizer Other (specify)

I. P ROJECT 

### C OST 

### : D O NOT ENTER TEXT IN SHADED AREA


### L INE 

### D ESCRIPTION 

### S UB 

### T OTAL 

### T OTAL 

### A MOUNT 

### 1 Federal amount requested $ 525,000
2 State cash financial contribution Local cash financial contribution
3a Airport cash funds
3b Non-airport cash funds $175,000 3 Total local cash funds ( 3a + 3b ) $ 175,000 4 TOTAL CASH FUNDING ( 1+2+3 ) $ 700,000
In-Kind contribution
5a Airport In-Kind contribution** $ 25,000
5b Other In-Kind contribution** $ 25,000
5 TOTAL IN-KIND CONTRIBUTION ( 5a + 5b ) $ 50,000

6 TOTAL PROJECT COST ( 4+5 ) $ 750,000Easterwood Airport Small Community Air Service Development Grant Application July 2014

5 

### J. IN-KIND CONTRIBUTIONS** For funds in lines 5a (Airport In-Kind contri bution) and 5b (Other In-Kind contribution), please describe the source(s) of f und(s) and the value ($) of each. 5a: Easterwood Airport Management $25,000 5b: Astin Aviation $25,000

K. I S 

### T HIS 

### A PPLICATION 

### S UBJECT 

### T O 

### R EVIEW 

### B Y AN 

### A FFECTED 

### S TATE 

### U NDER 

### E XECUTIVE 

### O RDER 

### 12372 P ROCESS 

### ?

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

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

L. I S 

### T HE 

### L EAD 

### A PPLICANT OR 

### A NY 

### C O 

### -A PPLICANTS 

### D ELINQUENT 

### O N 

### A NY 

### F EDERAL 

### D EBT 

### ? (I F 

### “Y ES 

### ”, P ROVIDE 

### E XPLANATION 

### ) No Yes (explain)

___________________________________________________________________________

___________________________________________________________________________

______ APPLICATION CHECKLIST

I NCLUDED 

### ? I TEM 

### For Immediate Action Yes Determine Eligibility

Yes New Grants.gov users must register with www.grants.gov

. Existing Grants.gov users must verify existing www.grants.gov account has not expired and the Authorized Organiza tion Representative (AOR) is current. For Submission by 5:00 PM EDT on July 31, 2014 Communities with active SCASDP gr ants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for se lection in FY2014 Yes Complete Application for Federa l Domestic Assistance (SF424) viaEasterwood Airport Small Community Air Service Development Grant Application July 2014

6 

### www.grants.gov

Yes Summary Information schedule comple te and used as cover sheet (see Appendix B )

Yes Application of up to 20 one-sided page s (excluding any letters from the community or an air carrier show ing support for the application) , to include:
Yes  

### A description of the community’s ai r service needs or deficiencies.

Yes  

### A strategic plan for meeting those needs under the Small Community Program.

Yes  

### A detailed description of the fundi ng necessary for implementation of the community's project.

Yes  

### An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

Yes  

### Designation of a legal sponsor re sponsible for administering the program.

N/A  

### A motion for confidential treatment (if applicable) – see Appendix D below.

### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

_________________________________ ) Proposal Under the Small Community ) Docket OST-2014-0113 Air Service Development Program )

EASTERWOOD AIRPORT, CO LLEGE STATION, TEXAS RESEARCH VALLEY AIR SERVICE PARTNERSHIP
A Public-Private Partnership comprised of:

Texas A&M University (Legal Sponsor): DUNS Number 831132097 City of College Station City of Bryan County of Brazos Research Valley Partnership Bryan-College Station Convention and Visitors Bureau Bryan-College Station Chamber of Commerce Astin Aviation Easterwood Airport Management

Communications concerning this do cument should be addressed to:

Rex Janne Texas A&M University 1477 TAMU College Station, TX 77843-1477 979.458.4476 Telephone 979.845.3800 Facsimile

July 30, 2014Easterwood Airport Small Community Air Service Development Grant Application July 2014

3 Overview of the Air Travel Market Served by Easterwood Airport (CLL)
Easterwood Airport (CLL) is located in the communities of Bryan and College Station, in Brazos County in east central Texas. The airport is owned by Texas A&M University, an agency of the State of Texas, and is operated by Easterwood Airport Management under a management contract with the University. The airport is 95 miles north of Hous ton, 104 miles east of Austin, and 170 miles south
of Dallas/Ft. Worth.

The Bryan-College Station Metropolitan Statistical Ar ea (MSA), the core of the CLL catchment area for air service, is comprised of the Counties of Brazos, Burleson and Robertson, has a population of 236,819 (2013 estimate, US Census Bureau). Th e Research Valley, which encompasses the counties of Brazos, Burleson, Grimes, Leon, Madison, R obertson and Washington, has a total population of 328,348 (2013 estimate, US Census Bureau). The Research Valley comprises the natural air travel catchment area for CLL, if levels of air service at CLL were adequate to service the demand for air service in the region.Easterwood Airport Small Community Air Service Development Grant Application July 2014

4 The Research Valley is home to Texas A&M Univers ity, a world class university that has its main campus in College Station. The University, with a current enrollment of more than 50,000, is the sixth largest university in the U.S., and attracts students and faculty from all over the world. The University is ranked among the top ten research in stitution in the U.S. Each year, faculty and graduate students conduct more th an $820 million in sponsored research projects. The University is the largest employer in the Research Valley area.

The vibrant expansion and prominence of the Univer sity, in combination with the Research Valley Partnership, has generated strong demographic and economic growth in the region. For example, according to the U.S. Census Bureau, the populati on of the Bryan/College Station MSA grew from 184,885 in 2000 to 236,816 (estimated) in 2013, an increase of 28.1%. The Research Valley Partnership, the local economic development ar m of the community, serves as the catalyst of economic development in the Bryan and College St ation region, connecting community, university and industry, and building upon the foundation of the Texas A&M’s global expertise in engineering, agriculture, animal health, energy and the biosciences.Easterwood Airport Small Community Air Service Development Grant Application July 2014

5 Overview of Current Air Services at Easterwood Airport (CLL)

Easterwood Airport (CLL) currently has regional je t service operated by Amer ican Airlines/American Eagle 5 times daily to DFW, and by United Airlines/United Express 3 times daily (2 times daily on Saturdays) to Houston IAH. The June 2014 level of service for CLL is presented below.

Carrier Ori. Dest. Miles Aircraft Type Eqp. Mon Tue Wed Thu Fri Sat Sun Weekly Ops. Seats Seats/ Dep. AA CLL DFW 164 CRJ CRJ 1 1 2 2 2 2 2 12 600 50
AA CLL DFW 164 ERJ-140 ERD 3 3 1 1 1 1 1 11 484 44
AA CLL DFW 164 ERJ-145 ER4 1 1 2 2 2 2 2 12 600 50

5 5 5 5 5 5 5 35 1,684

UA CLL IAH 74 ERJ
135/140/145 ERJ 3 3 3 3 3 2 3 20 922 46

The current level of service at CLL results in an average daily outbound capacity of 372 seats, and an average of 7.86 daily outbound aircraft departures. This level of service equates to an average of 47.3 seats per aircraft departure for the services operated by American and United.

Seat capacity at CLL has historically been substa ntially higher than the current levels. In 1999 CLL handled 15 scheduled airline departures per day, which generated 188,000 or igination/destination (O&D) passengers annually. By 2003 service leve ls had dropped by one-third, and O&D traffic at CLL declined to 134,000. Most notably, this d ecline in service precipitated the growth of traffic leakage by surface transportation from the Research Valley area to Houston- IAH. This traffic leakage has depressed the level of growth that would otherwise have occurred as a result of the economic growth in the region. The O&D passenge r count at CLL for the 12 months ending first quarter 2014 is 163,665.

Most recently, the seat capacity offered by Unite d Airlines at CLL has sharply declined. While American Airlines has increased the seat capacity it offers at CLL, this has not brought seat capacity to the levels experienced in 2010 (133,400 in 2010 vs. 124,896 in 2013).Easterwood Airport Small Community Air Service Development Grant Application July 2014

6 The combination of less seat capacity and a growing air travel market in the region has resulted in increases in average onboard load factors for both Amer ican and United at CLL. This trend of higher load factors is viewed positively by the airlines, but it also indicates a need for more capacity in the market. Given the proximity of CLL to IAH, and the capacity reductions that have already been made by United, securing service expansion to Houston-IAH will be important, but difficult.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

1234123412341234

2010 2011 2012 2013LoadFactor 

### CLL Nonstop Routes Load Factors 2010 ‐ 2013 by quarter



### AA

‐ DFW UA

‐ IAHEasterwood Airport Small Community Air Service Development Grant Application July 2014

7 Overview of CLL Origin/Destination Markets

The local CLL-DFW is the largest O&D market fo r CLL; the combination of local market demand and the 5 daily frequencies results in excellent servi ce levels. However, the local market traffic and the connecting market traffic are competing for the limited number of seats available. Airline inventory management practices seek to achieve the highest yield for the traffic on a service; limited seat capacity and competing local and connecting tr affic tends to favor seat availability for higher revenue itineraries. Local market pricing tends to be impacted by this, with higher local market fares.

It is noteworthy that Houston is not among CLL’s top 25 O&D markets. The combination of traffic leakage by surface transportation to Houston-IAH and the higher fares that are offered for the local
market traffic tend to result in most of th e onboard traffic being on connecting itineraries.

It is also noteworthy that Atlanta is the second larg est local market for CLL, even though it does not have non-stop service from CLL. This suggests a st rong community of interest between the Research Valley area and the Greater Atlanta area, especiall y in the business and academic sectors of the market. If non-stop service were introduced between CLL and Atlanta, one can expect a substantial stimulation of the local market, based on the conve nience and time-saving of the non-stop service. The true local market, combined with enhanced connectivity to ot her destinations via Delta’s ATL hub, suggests Atlanta as a potentially viable service from CLL.

In 2012, Texas A&M University joined the South eastern Conference (SEC) for its athletic programs. This association has created a significant increase in travel from CLL to destinations within the southeast US. As an example, the University and its competitors generated over 180 charter aircraft
movements in 2013. The fans of these athletic te ams need air service to follow their teams, as Bryan/College Station is remote from SEC University locations. Again, this is a traffic generator that is growing but is not adequately accommodated by the current service pattern.Easterwood Airport Small Community Air Service Development Grant Application July 2014

8 Rank Airport O&D Pax PDEWs Average Fare 1 DFW 9,561 13.1 $109 2 ATL 5,346 7.3 $169 3 ORD 4,163 5.7 $208 4 DCA 4,118 5.6 $286 5 LAX 3,583 4.9 $217 6 DEN 3,566 4.9 $213 7 LGA 3,565 4.9 $180 8 BOS 3,282 4.5 $196 9 BWI 3,188 4.4 $183 10 MSP 3,106 4.3 $164 11 SAN 2,748 3.8 $201 12 MCI 2,738 3.8 $173 13 PHX 2,668 3.7 $190 14 SFO 2,599 3.6 $275 15 MCO 2,573 3.5 $186 16 LAS 2,535 3.5 $218 17 BNA 2,478 3.4 $172 18 STL 2,364 3.2 $173 19 PHL 2,251 3.1 $202 20 PIT 2,247 3.1 $186 21 AMA 2,221 3.0 $185 22 SEA 2,156 3.0 $270 23 SNA 2,072 2.8 $180 24 IND 2,070 2.8 $183 25 CMH 1,894 2.6 $157Easterwood Airport Small Community Air Service Development Grant Application July 2014

9 Overview of CLL Fare Levels

College Station (CLL) experiences higher than average air fares. The U.S. domestic average one-way fare for the twelve-months ending first quarter 2014 was $181.00. The domestic average fare for the same period for CLL was $196.00, or 8.3% higher. The CLL domestic averag e fare for the same period, stage-length adjusted for 1,000 miles, wa s $201.00. (Source: US DOT OD1B via Diio Online Portal)

The domestic average fares for CLL for American Airlines and United Airlines itineraries were virtually the same.

CLL is impacted by many of the same factors that impact air travel pricing at smaller communities throughout the U.S., including small aircraft, limited availability of seats, lack of significant competition, and short stage lengths. CLL is furthe r impacted by its relative proximity to HoustonIAH, creating strong incentives for air travelers from College Station to drive to Houston or Austin for air service. The Action Plan will address analyz ing fares and providing the Partnership with a competitive business case to restructure fares and recapture leaking passengers from the catchment

area.

$0 $50 $100 $150 $200 $250

‐ 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013AverageOnewayFareDomesticO&DTraffic 

## CLL Domestic O&D and Average Fare

O&D FareEasterwood Airport Small Community Air Service Development Grant Application July 2014

10 Growing Demand for and Inadequate Supply of Air Service at CLL

The combination of demographic and economic grow th in the Research Valley area, the growing travel needs of Texas A&M University, the substa ntial leakage of traffic from the CLL catchment area to Houston-IAH (and to other nearby airports to a much lesser degree), and the decline in seat capacity on the services at CLL all point to a situ ation of growing demand a nd inadequate supply of
air service.

One of the key tasks of the Action Plan involves th e quantification of the true level of air service demand being generated to and from th e Research Valley area, and the ex tent of the traffic leakage by surface transportation that is taking place. This analysis will be essential to addressing the region’s air service situation with airline planners and decisi on makers. While it is apparent that a market of over 300,000 people that hosts the sixth largest university in the U.S., with an average daily outbound airline seat availability of 372, is severely underser ved, establishing the extent and nature of that deficiency and the best approaches to improving air service at CLL will require substantial research and analysis.

Air Service Development Efforts Past 3 Years

The Research Valley community has undertaken various initiatives in recent years to secure additional air service. These efforts have included ma rketing, discussions with the planning staffs of the two airlines, and related promotional activity. They also included an application by Texas A&M University for a SCASDP grant in 2004, which did not result in a grant. Subsequently, the community’s air service development efforts occurre d during a period of uncertainty in the airline industry, including the financial crisis of 2007, th e recession of 2008, and the merger and integration of United Airlines (with Continental Airlines) and American Airlines (with US Airways).

In 2013, Texas A&M University contracted with Easterwood Airport Management for the operation and management of the airport. Under this ne w arrangement, Easterwood Airport Management is undertaking various infrastructure and customer serv ice improvements, including efforts to expand air services at CLL and creating an operational and busin ess environment that is conducive to air service growth.Easterwood Airport Small Community Air Service Development Grant Application July 2014

11 The formation of the Research Valley Air Service Part nership, with all of th e major stakeholders and interests involved, now provides the basis upon which the community’s air service development efforts can reach a higher level of effectivenes s. This SCASDP grant application and the Partnership’s Action Plan for air service development are key elements of these new efforts.

Research Valley Air Service Partnership

The Research Valley Air Service Partnership has been formed to serve as the public/private partnership for the community’s participation in the SCASDP. The Partnership membership reflects the broad range of interests that are highly relia nt on the development of air services at CLL. The Partnership will form a steering committee to guide the grant if awards, provide administrative control and be responsible for gaining results w ith the financial resources made available with a successful grant award. The members of the Partnership are:

 Texas A&M University

 City of College Station, Texas

 City of Bryan, Texas

 County of Brazos, Texas

 Research Valley Partnership

 Bryan-College Station Convention and Visitors Bureau

 Bryan-College Station Chamber of Commerce

 Astin Aviation

 Easterwood Airport Management

Action Plan under the DOT Small Community Air Service Program

This application is directly linked to the comm unity’s commitment to develop and implement an Action Plan to address the air service challenges that face CLL. The Action Plan will be tailored to the realities of both the current air service environment that small communities face throughout the U.S., and in particular CLL, and the state of the U. S. airline industry. The Action Plan will also take into account the needs of the business, academic and leisure travel sectors in the CLL region.

The elements of work required to fully develop a detailed Action Plan, described below, are in part designed to better understand many of the market and service dynamics that are affecting CLL. ThisEasterwood Airport Small Community Air Service Development Grant Application July 2014

12 will ensure that the Action Plan is focused on the right issues and challenges, and that its implementation offers the highest potential for success. Goals and Objectives

The Action Plan’s goals and objectives are clear and specific:

 Secure additional services and new route(s) linking CLL to hub airports, including incumbent and new-entrant airlines;

 Reverse passenger leakage to other airpor ts (focus on Houston Bush Intercontinental Airport);

 Strengthen the basis for economically-viable growth in air services at CLL, using a combination of community marketing and incen tives to airlines to mitigate potential risk;
and

 Serve the community’s air service needs to a higher extent than at present, in recognition of the current and future growth in air travel demand generated by demographic and economic growth in the region.

Task Elements of the Action Plan

The Partnership has developed the outline and key elements of an Action Plan designed to address the unique circumstances at CLL and in the Research Valley area. The Plan will provide research, analysis and evaluation of the market to arm th e community with credible evidence to present to
carriers identified.

Market and Service Analysis

The success of the Action Plan will require so und research and analysis, and resulting issue identification and resolution. The following task elements are essential for this success, and are of immediate priority.

 Regional Market Analysis:

o Definition of the current and potential catchment area of CLL

o Quantification of the demographic and ec onomic characteristics of the catchment area(s)Easterwood Airport Small Community Air Service Development Grant Application July 2014

13 o Identification of current and futu re air travel needs, including:

 Determination of air travel needs and priorities of major air travel generators

 Determination of priorities for potential new and expanded services

 Conduct travel demand survey of business, academic and leisure travel interests to refine the understanding of travel trends and needs, and potential air service user levels of interest.

o Performance of a traffic leakage study for the CLL area, including:

 Benchmarking analysis regarding propensity for air travel

 Integration of travel demand survey r esults and prior research and analysis to quantify degree of traffic leakage;

 Analysis to quantify travel patterns a nd issues related to traffic leakage.

 Air service Analysis

o Analysis of current air service, including:

 Analysis of existing air service at CLL, with focus on capacity, fares, traffic, connectivity and other metrics;

 Determination of the adequacy or deficiency of current services.

o New service(s) analysis, including:

 Analysis to identify priorities for new air service;

 Pre-qualification of new service opportu nities through initial analysis of onboard traffic and airline revenue potential.
Marketing

 Strategy Development:

o Development of a marketing strategy d esigned to increase public awareness of CLL services throughout the region

 Regional Marketing:

o Implementation of marketing/advertising stra tegy in the CLL catchment area, and in areas that can increasing utilize air services at CLL.

 New Service(s) Marketing:

o Implementation of focused marketing of ne w service(s) in advance of service launch, and during initial service operation.

 Recruitment of Air Carrier(s)Easterwood Airport Small Community Air Service Development Grant Application July 2014

14 o Presentation Development: integration of research and analysis into a presentation for specific air carrier targets, based on th e suitability of the service opportunity with the air carrier’s business model and capabilities.

o Direct Marketing: Meetings with targ eted air carriers, at air service meeting conferences and with airline management at their respective headquarters offices.

Incentives

 Ground Handling

o Ground handling support: Incentive for new entrant air carrier service, based on mitigation of cost of ground handling services

 Start-up Cost Offset

o Station start-up support: Incentive for new entrant air carrier service, based on mitigation of cost of establishing new station at CLL

 Revenue Guarantee

o Service performance support (if needed): Incentive for new entrant air carrier service, based on negotiated agreement to provide financial support for the new service if it does not meet agreed performance targets during initial fixed period.

Description of Necessary Funding

The ongoing aversion to business risk by air carriers calls for an integrated program of analysis, marketing, incentives and revenue guarantee to spur air service expansion at CLL. Funding by the Department in support of the proposed Action Plan is urgently needed. The Partnership is committed to provide substantial funding for various elements of the Action Plan: the additional funding by the Department under the SCASDP will enable the Pa rtnership to perform in-depth analysis and marketing, and to more aggressively offer air service incentives to airlines.

The burgeoning air travel needs of the College St ation and Bryan communities, and especially that related to the growth of Texas A&M University and its programs and activities, can be met by targeted improvements in air service at CLL. The Action Plan that will be implemented as a result of the proposed grant, and community funding through the public/private partnership, are essential to maximizing our success.Easterwood Airport Small Community Air Service Development Grant Application July 2014

15 Project Budget

Federal Funds $525,000 Local Cash Funding $175,000 Local In-kind Funding $50,000
TOTAL: $750,000

Program Elements Task budgets Element budgets Federal Local cash Local in

‐ kind

Market Analysis 65,000 $ 48,750 $ 16,250 $ ‐ $ Regional market analysis 20,000 $
Travel demand survey 20,000 $ Traffic leakage study 25,000 $

Service Analysis 35,000 $ 26,250 $ 8,750 $ ‐ $ Existing services analysis 10,000 $

New service analysis 25,000 $

Marketing 110,000 $ 82,500 $ 27,500 $ ‐ $
Strategy development 10,000 $ Regional marketing 75,000 $

New service marketing 25,000 $

Recruitment of Air Carrier 40,000 $ 30,000 $ 10,000 $ ‐ $

Presentation development 15,000 $

Direct marketing 25,000 $

Ground Handling Ground handling support 25,000 $ 25,000 $ ‐ $ ‐ $ 25,000 $

Start

‐ up Cost Offset 25,000 $ Start

‐ up station support 25,000 $ ‐ $ ‐ $ 25,000 $

Revenue Guarantee 450,000 $ 450,000 $ 337,500 $ 112,500 $ ‐ $ TOTAL 750,000 $ 525,000 $ 175,000 $ 50,000 $

Funding sources

Federal 525,000 $ Research Valley Partnership 50,000 $ Convention and Visitors Bureau 50,000 $ City of College Station (Contribution within CVB) City of Bryan (Contribution within CVB) Astin Aviation 25,000 $ Easterwood Airport Management 25,000 $ Texas A&M University Legal Sponsor 50,000 $ Chamber of Commerce 12,500 $ County of Brazos 12,500 $ 750,000 $ 525,000 $ 175,000 $ 50,000 $ CLL SCASDP BudgetEasterwood Airport Small Community Air Service Development Grant Application July 2014

16 Timeline of the Action Plan

It is assumed that, if awarded, the work under the Action Plan would commence in October 2014. A quarterly timeline related to the major elements of the Action Plan is outlined below.

4Q2014 Market Analysis

 Demographic and economic research

 Community air travel needs survey

 CLL passenger leakage study
1Q2015 Continuation of Market Analysis Tasks Services Analysis

 Existing Air Services Analysis

o Economic performance

o Capacity expansion

 Potential New Services

o Pre-qualification of opportunities

o Business case development
Marketing Strategy

 Marketing Themes

 Advertising Placement Strategy

 Co-op Marketing Strategy Recruitment of Air Carrier

 Initial Outreach

 Incentive Policy Development
2Q2015 Marketing

 Marketing Strategy Implementation

 New Service Marketing Plan Recruitment of Air Carrier(s)

 Outreach to Carriers

 Jumpstart 2015 Meetings 3Q2015 Marketing Recruitment of Air Carrier(s)

 Headquarters MeetingsEasterwood Airport Small Community Air Service Development Grant Application July 2014

17 4Q2015 Marketing Recruitment of Air Carrier(s) 2016 Marketing Recruitment of Air Carrier(s) Incentives (Ground Handling; Start-up Cost Off-set)

 Incentive Development and Application Revenue Guarantee (if necessary)

 Forecast of Service Performance

 Analysis of Revenue Requirement

 Development of Revenue Guarant ee Level, Scope and Structure

The Action Plan timeline, as well as the scope and timing of specific tasks and initiatives, may need to be refined during implementation, in order to mo st effectively achieve the community’s objectives. The identification and pursuit of air carrier opport unities (additional capacity, more frequency and/or new non-stop destination) will be based on market /service analysis and th e business case for the
service.

The implementation of a revenue guarantee would a pply to a new entrant airline and/or to non-stop service to an unserved destination. The appropria te level of revenue guara ntee would be established based on an in-depth forecast of the performance of the service, negotiation with the carrier, and determination of the scope and struct ure of the revenue guarantee program.

Easterwood Airport (CLL) has the requisite capability to support the services that will be pursued. It is expected that such services will be domestic serv ices, operated by aircraft that can be readily handled by CLL.

Designation of Legal Sponsor and Signatory Party

The legal sponsor of the grant is Texas A&M University (an agency of the State of Texas). The University has registered with “grants.gov” to establish itself as the legal sponsor, and has the following DUNS Number: 831132097. The signatory party for the grant is Texas A&M University.

The University, as the owner of Easterwood Airport, has regularly participated in grant programs of the U.S. Government, including FAA grants un der the Airport Improvement Program. TheEasterwood Airport Small Community Air Service Development Grant Application July 2014

18 University in fully equipped and experienced to undertake the legal sponsorship of the proposed SCASDP grant.

Easterwood Airport Management will provide admini strative and management services to the sponsor for the administration of the grant. Easterwood Airport Management is under contract with Texas A&M University for the management and operation of Easterwood Airport (CLL), and has a direct contractual relationship with the University.

The development and implementation of the Action Pl an will be governed by the Valley Research Air Service Partnership. A Steering Group of the Pa rtnership will serve as the governing body for the development and implementation of the Action Plan.