APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0133 

SUMMARY INFORMATION1

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 Summary Information schedule is located at 

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

A. PROVIDE 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: 

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING: 

1.____________________________________________________ 

2.____________________________________________________ 

3.____________________________________________________ 

4.____________________________________________________ 

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE 

APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY 

SEEKING SERVICE).

1. 2.

3. 4.

 

1 Note that the Summary Information does not count against the 20-page limit of the SCASDP application.
DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY 

THE FEDERAL AVIATION ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO”, PLEASE 

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN 

APPLICATION UNDER PART 139 IS PENDING.) 

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________ 

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air 

Service Development Program Grant

If previous recipient: Provide year of grant(s):_______________________________; and, 

the text of the grant agreement section(s) setting forth the scope of the grant project:

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) 

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.
G. PROJECT PROPOSAL:

 1. GRANT GOALS: (CHECK ALL THAT APPLY) 

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services2

Other (explain below)

2. FINANCIAL TOOLS TO BE USED: (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 service 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 marketers 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 

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp (below 

wing) services provided by third party ground handlers 

Travel Bank: travel pledges, or deposited monetary 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 deposited funds; counted as in-kind contributions only 

 

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing 

plan, study, air carrier proposal, etc.
Other (explain below) 

______________________________________________________________________________ 

______________________________________________________________________________ 

H. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

Full ILS Outer/Middle Marker Published Instrument Approach 

Localizer Other (specify)

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds

3 Total local cash funds (3a + 3b)

4 TOTAL CASH FUNDING (1+2+3)

In-Kind contribution

5a Airport In-Kind contribution**

5b Other In-Kind contribution**

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b) 

6 TOTAL PROJECT COST (4+5)

J. IN-KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please 

describe the source(s) of fund(s) and the value ($) of each.
K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED STATE UNDER EXECUTIVE 

ORDER 12372 PROCESS? 

a. This application was made available to the State under the Executive Order 12372 

Process for review on (date) _____________. 

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

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

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT?

(IF “YES”, PROVIDE EXPLANATION) 

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________ 

APPLICATION CHECKLIST

INCLUDED? ITEM

For Immediate Action

Determine Eligibility

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 Organization Representative (AOR) is current.

For Submission by 5:00 PM EDT on July 31, 2014

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate 

existing grant in order to be eligible for selection in FY2014 

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

Summary Information schedule complete and used as cover sheet (see Appendix B)

Application of up to 20 one-sided pages (excluding any letters from the 

community or an air carrier showing support for the application), to include:

• A description of the community’s air service needs or deficiencies.

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

• A detailed description of the funding necessary for implementation of the 

community's project. 

• An explanation of how the proposed project differs from any previous projects 

for which the community received SCASDP funds (if applicable). 

• Designation of a legal sponsor responsible for administering the program.

• A motion for confidential treatment (if applicable) – see Appendix D below.
Small Community Air Service 

Development Grant Program 

Application of 

DOCKET OST-2014-0113 

DUNS # 037613692

Congressional District: Arizona 5
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

2

 

Proposal Contents 

THE CHALLENGE – AND THE SOLUTION ............................................. 3

IT’S NOT JUST LAKE HAVASU – IT’S ACROSS THE NATION .......................... 3

THE DEFICIENCY IS REAL. THE SOLUTION IS AVAILABLE ............................ 4

THE LAKE HAVASU SOLUTION – A MODEL FOR THE NATION ...................... 4

THE GRANT REQUEST .............................................................................. 5

COMMUNITY PARTICIPATION ..................................................................... 6

PROJECT SPONSOR ................................................................................. 6

LAKE HAVASU & THE PROPOSAL ........................................................ 7

A NEW MODEL – NEW TRAFFIC ................................................................ 7

THE OPERATOR IS IN PLACE ..................................................................... 8

THE LAKE HAVASU GRANT PROPOSAL ...................................................... 9

COST & REVENUE FORECASTS ............................................................... 10

TRAFFIC & REVENUES RAMP PERIOD...................................................... 11

GRANT ADMINISTRATION .................................................................... 12

THE PROGRAM ADMINISTRATION ............................................................ 12

MARKETING & ADVERTISING SUPPORT.................................................... 13

POST-GRANT SUPPORT ......................................................................... 13

SUMMARY OF APPLICATION ............................................................... 14
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

3

The Challenge – And The Solution

It’s Not Just Lake Havasu – It’s Across the Nation 

The changes in the US air transportation system in the last decade have 

presented new challenges to smaller communities such as Lake Havasu. 

 The independent regional airline industry – which once was a 

vibrant part of the transportation system serving proprietary route 

systems under their own brands has mostly disappeared.1

 The increase in operating costs - and other factors - have resulted 

in small airliners having poor economics for small community 

service. 

 As a matter of reality, the new economics of air service simply 

mean that many small communities cannot be fully connected to 

the national air transportation system from the local airport. 

 The recent deletion of several communities from eligibility for the 

Essential Air Service program is stark evidence of these trends. 

This is precisely the case with Lake Havasu. Its geographic location and 

its relative size now preclude a re-establishment at the local airport of 

connectivity to the national air transportation system. 

The only airline connecting hubsite that is within geographic access of 

Lake Havasu is the American/US Airways operation at Phoenix Sky 

Harbor. Connecting service to this point has been attempted in the past 

using traditional code-shared commuter service, without success. There 

were two main dynamics in play that doomed the success of this prior 

service. The first was poor reliability. 

But the second is more fundamental: feeder air service to a connecting 

hub dictates that schedules be set to meet the major airline’s connecting 

banks, and not the needs of the local O&D traffic to and from the small 

community to the hub city. Also, seats are allocated on the basis of fares 

to assure that they generate maximum revenue to the airline system – 

i.e., produce feed traffic. 

This means that the local fares the hub are necessarily high, which deters 

local O&D demand. In the hub and spoke system, the value of the seat 

leaving the small community is that represented by the total system 

revenue (read: connection revenue) it can generate. 

 

1

 Virtually all independent-operating and independent-branded “commuter” airlines today – such as 

Sliver, SeaPort, Air Choice One, etc., are primarily in business to bid on EAS markets – none have 

full, traditional route systems and markets of their own. 

The changes in the 

airline industry over 

the past decade – in 

particular, the 

disappearance of 

independent regional 

airlines – now cuts this 

region of Arizona away 

from accessing 

necessary services 

such as medical and 

technical, available 

only at large metro 

cities. 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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This traditional model is not designed nor intended to meet the needs of 

the consumers at small communities seeking access only to the services 

and commercial base at the hub city. This is a challenge across the 

United States for small communities, and for geographically-isolated 

places such as Lake Havasu, it is a major economic disadvantage. 

However, there are other applications for air service at Lake Havasu that 

are more focused, and meet a specific need of the community and region 

served by Lake Havasu Municipal Airport. This is the sector of the rural 

consumer base that requires access to medical, commercial, and other 

services not available locally. 

The Deficiency Is Real. The Solution Is Available 

While it is an economic reality that recruiting scheduled service from one 

of the nine remaining airline brands is likely out of reach, the fact remains 

that Lake Havasu and the region still require access to key services not 

supportable at rural communities. 

Today, it is a three-hour drive to either Phoenix or Las Vegas, making 

access to such services very difficult. In particular, as a substantial part of 

the Lake Havasu economy is dependent on retirees and second home 

owners, having air access to such major commercial centers is an 

increasing need. 

We would relate it to the successful system of air service within Alaska, 

which is mainly in place to assure that rural communities have access to 

services and vendors available at larger cities, such as at Anchorage and 

Fairbanks. While connectivity to larger airlines is generally precluded by 

size of the aircraft utilized, and the relatively high per-mile fares make 

such connectivity problematic, there is a need and a strong demand for 

local commuter service. This is the case with Lake Havasu – and, in fact 

with all of rural Arizona. 

The Lake Havasu Solution – A Model For The Nation 

In most cases, in the lower 48, the unfortunate fact is that there isn’t an 

operator interested in establishing such service in the absence of 

substantial subsidies from the Essential Air Service program.. 

However, Lake Havasu has such an operator ready willing and able to 

establish Part 135 operations between Lake Havasu and Phoenix Sky 

Harbor, aimed specifically at the needs of the local community to access 

the services available at that city. 

Dorato Jets, LLC, an established charter operator located at Lake Havasu 

stands ready to implement three weekday air taxi flights to Phoenix Sky 

Harbor, using nine-passenger Cessna Caravan aircraft. Forming a 

marketing identity of Dorato Airways, the company believes that this 

program could well be a strong example for rural communities across the 

US where demand is below that sufficient to support connectivity to larger 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

5

airlines, but where specific local needs will patronize limited scope service 

to larger commercial centers. 

Lake Havasu is proposing a new approach for air-travel-isolated 

communities. While traditional connectivity with the air transportation 

system via branded network carriers is now out of economic reach, there 

is an alternative to address the immediate challenge of accessing the 

services only available at larger communities. This is establishment of 

highly-reliable and convenient commuter service, using low-sector-cost 

Cessna Caravan aircraft. 

Because of the scope of the Part 135 operation, Dorato Airways will 

utilize non-security access facilities at both Phoenix and Lake Havasu. 

This will keep costs low and allow consumers greater time efficiency. 

In this proposal, Dorato Airways will implement service with a minimum of 

three round-trips per business day to Phoenix Sky Harbor Airport, with a 

lower frequency on week-ends. The flight schedules will be timed to 

represent effective alternatives to the 6-hour round-trip drive time, as well 

as to stimulate additional traffic. 

The Airport and the community believe that the air transportation system 

in the US has evolved to the point that this model is now not only viable, 

but necessary. 

The community holds no misconceptions regarding the need and the role 

of this service, which is to provide an economic channel for necessary 

business and service-access at Phoenix. However, it is believed that this 

grant will support and showcase a model that can be implemented at 

other communities across the nation. 

The Lake Havasu community would ask the Department for favorable 

consideration of this proposal, as it represents a potential solution for 

communities across the nation that have been cut completely from any 

commercial air service access. 

The Grant Request 

Lake Havasu is requesting a grant in the amount of $500,000, to be 

matched by community-provided funding of $100,000, for a total of 

$500,000, to assist Dorato Jets / Dorato Airways in acquiring the 

financing, equipment, aircraft and training to implement service to 

Phoenix. 

Analyses indicate that the service can be profitable within the first year of 

operation. A portion of the grant funding will be applied to offset the initial 

traffic ramp-up period, plus regional advertising and marketing. 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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Community Participation 

The Partnership For Economic Development will be the community 

participant in this grant request, and will be the entity that will administer 

the community funding portion. 

Mr. Gary Kellogg 

President/CEO 

Partnership For Economic Development 

314 London Bridge Road 

Lake Havasu City, AZ 86403 

(928) 505 7333 

Project Sponsor 

The official sponsor of this project is the City Of Lake Havasu 

Please direct any correspondence regarding this matter to 

Mr. Steve Johnson 

Airport Supervisor 

Lake Havasu Municipal Airport 

c/o Lake Havasu City 

2330 McCulloch Blvd N 

Lake Havasu, AZ 86403-5950 

(928) 764 3330 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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Lake Havasu & The Proposal 

Lake Havasu Municipal Airport is situated in a region that comprises over 

150,000 population within a 60-minute drive. None of this population base 

has any scheduled air access to Phoenix, and therefore is the target base 

for the proposed service. 

While the core population of Lake Havasu is approximately 52,000, the 

extended population base is proper to include as the traffic base for the 

Dorato Airways operation to Phoenix. The proposed service will offer 

significant benefits to consumers in Needles, Kingman and Bullhead City. 

None of these have flights to Phoenix, and none of these communities 

are seeking to implement such service. 

A New Model – New Traffic 

Historical traffic data at Lake Havasu or virtually any small community are 

not reliable nor indicative of the demand that the proposed type of service 

is expected to generate. There are fundamental differences in the 

The entire threestate region will 

benefit from the air 

access that this 

grant will make 

possible. 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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proposed Dorato Airways operation and past attempts at more traditional 

scheduled air service. 

Past service to Phoenix from virtually every small community in Arizona 

was intended to provide connectivity to a major airline system. As noted 

earlier, the operational profile for this type of service is fundamentally 

different from that which meets the specific commercial needs of 

Northwestern Arizona in accessing Phoenix. 

For this program to work, the following must be in place: 

 Frequency of service. At least three week-day departures are 

necessary. Otherwise, the timing and convenience of air service 

may be less attractive that driving. 

 Reliability. The service must have near-perfect schedule 

reliability to successfully draw consumers from the road, and to 

stimulate new traffic. 

 Cost. There are no misconceptions that this type of service will be 

“low fare.” However, it needs to be at cost levels that represent 

value to key consumer segments, while providing reasonable 

return to the operator. 

 Scheduling. The flight patterns must be designed to meet the 

needs of the Lake Havasu community, as it is originating traffic 

that will be the majority of the demand. 

This proposal entails a program that can meet all of these requirements, 

and, once incubated, may be applied to other points in Arizona as well. 

The Operator Is In Place 

Dorato Jets is an established, local charter operator at Lake Havasu. The 

company has committed to implementing service to Phoenix Sky Harbor 

Airport that meets the above criteria. The design aircraft will be the 

Cessna Grand Caravan, outfitted with 9 seats. Block time between Lake 

Havasu and PHX will be 65 minutes. 

Dorato Jets has advised that it will require approximately $500,000 to 

establish and implement the service. This includes acquiring and 

financing additional aircraft, training, and support functions. 

Based on traffic projections, the service is expected to be profitable from 

the first full year of operations. The main focus of this grant is to fund the 

financing for the capital expenditures necessary. In scope this is not 

inconsistent with other prior SCASD grants awarded to finance airport 

and related equipment. 

Lake Havasu has a 

Part 135 operator 

ready to take steps 

to initiate service to 

Phoenix subsequent 

to grant award. 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

9

The community and the Airport fully believe that with this grant, a severe 

communication deficiency – lack of access to a major commercial center 

– can be quickly and successfully addressed. 

The Lake Havasu Grant Proposal 

This region of Arizona represents a population of approximately 150,000 

within a 60-minute drive of Lake Havasu Municipal Airport. No airports in 

the region have scheduled air service to the important commercial center 

of Phoenix. 

The proposal for the grant is straight forward and consistent with many 

other successful programs achieved with the SCASD program. This will 

include: 

 Three week-day round-trip flights, scheduled to the needs of the 

regional communities for single-day access to the Phoenix metro 

area via Sky Harbor International Airport, with a reduced schedule 

on week-ends. 

 Fares will be set based upon known and expected costs of 

operation of a 9-passenger Cessna Caravan on the route, and the 

projected traffic. 

 Dorato Airways will establish a low-capital, low cost reservation 

system that will address the needs of the service proposed. 

Because of the limited scope of the service, and the fact that the 

flights are intended to meet the needs of the O&D market only, the 

expense of a comprehensive computer reservations system will 

be avoided. 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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Cost & Revenue Forecasts 

Historic data from past attempts at serving Phoenix are not valid, because 

that service was not structured to meet the local O&D needs of the 

community. 

Furthermore, a review of distantly-similar markets elsewhere in the US 

rendered little historical guidance regarding the traffic generation that can 

be expected. Isolated New England markets, such as Nantucket and 

Martha’s Vineyard, indicated – on 9-seat commuter aircraft – annual 

traffic in 2013 between @ 11,000 and 23,000 O&D passengers to the 

nearest major commercial center, Boston. 

The Community believes that this proposed service will generate traffic 

approximating one round trip for every 20 population in the region, 

approximating 7,500 annual O&D, approximating 24 passengers per day, 

or 12 per day each way. 

While it is felt that these estimates are reasonable, there are no historical 

data, and no forecast methodology that can provide additional support. 

What is absolutely known is that the community needs this service, and 

that the locally-based operator is ready and eager to make it a success. 

As the data below indicate, once established, it is estimated that the 

service will be a solid success. A normalized full year projection is as 

follows: 

 

HII - PHX Mileage 156

Equipment Cessna Caravan

Service Pattern 3x Daily

Completion Factor 98.0%

Annual Segments 1,835

Annual Seats 16,511

Annual ASM 2,575,722

Estimated CASM 0.410

Estimated Route Cost $1,054,872

Traffic Revenue

OW Fare -Net of Taxes $150.00 7,500 $1,125,000

Traffic & System Revenue $1,125,000

Full Year Segment Projected Operating Profit $70,128

Operating Margin 6.2%

 RPMs 1,170,000

Load Factor 45.4%

Proforma Projection

Projected Operational Statisitcs Normalized Full Year

Traffic & Revenue Summary
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

11

Traffic & Revenues Ramp Period 

The revenue guarantee portion of this grant request is to offset the 

potential losses facing the operator as the service gains public 

acceptance. 

The basic forecast is for the traffic to build gradually, with 50% of the total 

daily forecast demand to be captured in the first six months, ramping to 

full capture in the second six months. Therefore, the grant guarantee is 

for a 12-month period, beginning on the first day of scheduled operations. 

 

The forecasted data for the first six months conservatively projects a 

revenue ramp period, with profitability coming in the following six months. 

In the following six months, the estimate is that the program will reach 

and exceed break-even: 

The program will be structured to review traffic and revenues on a 

quarterly basis, with any revenue short falls below break-even addressed 

by the DOT/community grant funds. 

In addition to the capital requirements for the operator to add to its fleet, 

there is an estimate of a first-year loss of approximately $70,500. Given 

that the total grant funding is projected at $600,000, this will leave the 

remainder of the dollars available for marketing and advertising the 

service in the region. 

Estimated Route Cost $527,436

Traffic Revenue

OW Fare -Net of Taxes $150.00 2,813 $421,875

Profit/Loss

Traffic & System Revenue 2,813 $421,875 -$105,561

Projected Operational Statisitcs - First 6 Months

Traffic & Revenue Summary

Estimated Route Cost $527,436

Traffic Revenue

OW Fare -Net of Taxes $150.00 3,750 $562,500

Profit/Loss

Traffic & System Revenue 3,750 $562,500 $35,064

Projected Operational Statisitcs - Second Six Months

Traffic & Revenue Summary
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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Grant Administration 

The stated foundational purpose of the Small Community Air Service 

Development Program is to provide funding for communities to approach 

difficult air service challenges. 

The Lake Havasu proposal precisely meets that standard. In this, the 

community is requesting a grant in the amount of $500,000, to be 

matched with community funding of an additional $100,000, for a total of 

$600,000. The funding herein will allow Dorato Jets to finance the 

purchase of a used Cessna Grand Caravan, as well as the related 

support, training and staffing necessary to establish the new service to 

Phoenix. 

Of the cash funds, the distribution is intended as follows:. 

The Program Administration 

Lake Havasu Airport will be directly responsible for all liaison with the 

Department of Transportation in regard to the program. The community 

partners will be responsible for directing all regional promotions and 

marketing efforts to support the new capacity. 

Upon grant award, the community and Dorato Jets will provide the DOT 

with its detailed plan for use of the funds in regard to the capital needs. 

With approval of the DOT, the plan will outline financing and spending 

plans. 

Upon establishment of flights: 

 HII will monitor passenger traffic and keep records to track 

increases in ridership. 

 The carrier will provide passenger revenue data for traffic and 

revenues captured. This will determine the change in revenue 

contribution the new service is generating. 

 At the end of each three-month period, any shortfall between the 

agreed-upon revenue levels and the costs of operation will be 

settled. 

Application Grant Funds Local Match Total

Capital $416,667 $83,333 $500,000

1st Year Risk-Offset $58,750 $11,750 $70,500

Marketing $24,583 $4,917 $29,500

Totals $500,000 $100,000 $600,000
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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Marketing & Advertising Support 

Lake Havasu is not an expensive media market. Therefore, the dollars 

allocated to the support of the program will go far to assure that all 

sectors of the regional economy are aware of the new service. 

Basically, the community partners will approach the marketing of the 

program based on the following: 

 Print media – weekly advertisements starting 30 days from start of 

service upgrade, focusing on the fact that Phoenix service is 

coming to Lake Havasu 

 Direct contact – key businesses in the region will be contacted on 

a routine basis to assure ridership grows 

 Civic meetings – the Airport and the community will present the 

benefits of new upgraded service at civic meetings. 

Post-Grant Support 

At the end of the grant period of one year from the implementation of both 

jet flights, the service will continue to be promoted by both the Airport and 

the Partnership For Economic Development 

During and subsequent to the grant period, the focus of marketing efforts 

will be on the following: 

 The comparative cost-efficiency of using Lake Havasu Municipal 

Airport. 

 Convenience of the service offered 
Application of Lake Havasu, Arizona 

The Small Community Air Service Development Program OST – 2014-0113

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Summary of Application 

The Lake Havasu Municipal Airport and its community partners would 

summarize this proposal, and its importance as follows: 

 Changes in the airline industry have effectively precluded any 

chance of HII recapturing service from one of the nine 

remaining major carriers. These carriers do not have the 

equipment to access small communities. 

 There is a critical need to keep small communities 

commercially connected to major business centers. Small 

communities such as Lake Havasu do not have many of the 

support facilities – such as medical and legal – that are needed. 

Therefore, service such as outlined herein has enormous 

economic value. 

 There are no other air service options. The operator in this 

proposal is ready to begin service as soon as possible. 

 The program is viable and meets the context of the future 

airline industry. This program postures Lake Havasu for the 

future. Being pro-active, it addresses a near-term challenge in the 

future, and does so with results that are entirely consistent with 

the intent of Congress in establishing the Small Community Air 

Service Development Grant Program. 

Lake Havasu Regional Airport and its community partners appreciate the 

Department’s time in considering this application. 

This grant will 

assure that HII air 

service grows and 

prospers in the 

future.