# August 27, 2010 An Integrated Program of New Service Development via: Start-Up Cost Offsets, Advertising/ Marketing, and Revenue Guarantees In Support of New Scheduled Air Service to/from Baltimore/Washington

Sponsor: Evansville Re gional Airport Evansville, Indiana Douglas P. Joest, Interim Airport Manager Congressional Code: IN-008
Dun & Bradstreet Number: 021734082 

# EVANSVILLE REGIONAL AIRP ORT, EVANSVILLE, INDIANA
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 TransportationEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 2 TABLE OF CONTENTS

Section Page Introductory Letters of Support 3 Summary Information 6
Introduction 9 Primary Objectives of Proposal 10 Executive Summary 11 Detailed Explanation of Proposal 16 Expected Results 20 Letters of Support 24
Current Air Service 32
Air Service Deficiencies 37 Extenuating Factors Affecting Air Service 40 Availability of Alternate Airports 42
Use of Local/Federal Funds 43 Public/Private Partnerships 44 Implementation Timeline 46 Air Service Advisory Groups 47 Local Air Service Development Efforts 48 In-kind Services from the Community 49
Performance Measures 50 Legal Sponsor 51
Financial Controls 52
Return on Investment 53 DOT Exit Strategy 54
Alternate Plan 55 Airport Information 56 Community Profile 57 Comparison to Other Commun ities in Region 66
Conclusions 73Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 3 INTRODUCTORY LETTERS OF SUPPORTEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 4Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 5Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 6 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 re ceived a Small Community Grant If previous recipient, date of Grant: _________2004

___________________ expiration date of Grant: __December 31, 2008

__


### B. Public/Private Partnership

Public:

1. Evansville Regional Airport
2. City of Evansville
3. Vanderburgh County

Private:

1. Chamber of Commerce of Southwest Indiana
2. Economic Development Coalit ion of Southwest IndianaEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 7 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 Inst rument Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 500,000
2. State cash financial contribution: $ 0
3. Local cash financial contribution: $ 50,000 3a. Airport cash funds: $ 25,000 3b. Non-Airport cash funds: $ 25,000
3c. Total local cash funds: $ 50,000
4. TOTAL CASH FUNDING: $ 550,000
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: Fee waivers: Two years withou t landing and terminal fees
8. Other In-Kind contribution: $ Various Description: Advertising and marketing match money
9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined
10. TOTAL PROJECT COST: $ 550,000Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 8 F. Enplanements at Airport

2000: 260,604
2001: 226,077
2002: 226,636
2003: 217,704
2004: 230,690
2005: 247,375
2006: 235,981
2007: 225,358
2008: 194,508
2009: 155,963



### 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?

NoEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 9 INTRODUCTION

Of Great Lakes region catchment areas with populations of 500,000 or more, Evansville has the highest fares – averaging $226 each way as of the year ended first quarter 2010, or $452 roundtrip. Evansville is the single most expensive medium-sized market in which to fly in or out in the entire Great Lakes region.

The Evansville Regional Airport is an essential ga teway to the national air transportation system for a large portion of Indiana, Kentucky, and Illi nois. The Airport’s 60-minute catchment area is home to more than 550,000 people. Despite the large population, the Airport has long been underserved by its airlines when compared to other airports in the region.

To better understand th e market dynamics, the Evansville Regional Airport has just completed a wideranging leakage study and “true market” analysis. This study shows the lack of available seats, and the high local airfares, cause almost 45% of Evansville catchment area residents to fly from other airports in the region – with most using Loui sville, even though it’s over two hours away by

car.
The situation will get worse in Evansville this fall. Delta Air Lines, following its merger with Northwest, has announced it will leave the Evansville-Memphis market – for the second time. The service had been flown twice daily. This loss of seats will exacerbate the fare pressure in the
Evansville market – as Evansville continues to be one of the airports hardest hit by the DeltaNorthwest merger.

The Airport must do something to bring lower fa res to the region. Un der this proposal, the Evansville Regional Airport seeks AirTran Airways low fare service to the Airline’s Baltimore/Washington hub. AirTran would provid e low fare competition in nearly a dozen of Evansville’s largest passenger markets, providing an infusion of seats, and fo rcing other airlines to bring fares in line with other airports in the regi on. The average fare, right now, in markets AirTran would access over BWI is $400 roundtrip. These markets are mostly short haul, and have been identified as some of those that need the most fare relief. The Airport has developed a proven method of providing start-up cost offsets, reve nue guarantees, and market support for AirTran’s entry into the Evansville market. AirTran has long been looking at Evansville – and it’s time for Evansville to step up with the right of fer to bring the service to the Airport. 

## “Evansville is the single most expensive medium-sized market in

which to fly in or out in the entire Great Lakes region.”Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 10 PRIMARY OBJECTIVES OF PROPOSAL

Objectives for Program:

 Add low fare service at the Evansville Regional Airport

 Increase airline competition in the market, thus lowering fares

 Create better low fare connectivity

 Lower fares in the market through increased enplanements

 Decrease leakage to Loui sville and Indianapolis

 Increase awareness in the region ab out low fare service in Evansville

Means to Achieve Objectives:

 Prove a market does exist for low fare network service in Evansville

 Develop incentives to set Evansv ille apart from other airports

 Recruit a low fare, network carrier to the Evansville Regional Airport

Course of Action to Support Means:

 Provide start-up cost offsets to reduce the cost of entry into the market

 Provide revenue guarantees to ensure the success of the new service

 Provide marketing support to increase awareness about lower faresEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 11 EXECUTIVE SUMMARY

The Evansville Regional Airport is an essential connecting point to the national air transportation system for a large area of the Midwest, including parts of Indiana, Kentucky, and Illinois. The Airport provides the only commercial air service within a 125 mile radius, and yet it has been saddled by prohibitively high fares and a low number of available seats for more than a decade. This has the effect of suppressing passengers, and causing passengers to “leak” to other airports in the region.

The Airport draws the majority of its passengers from a radius of 60 minutes,
seen to the side in Figure 1 inside the solid
black line. This 60
minute catchment area is home to 557,000 people as of the latest
US Census estimates.

The Evansville Regional Airport has been hard hit by the merger of Delta Air Lines and Northwest Airlines. This fall the Airport will lose a non-stop destination, as well as frequencies to other hubs, as Delta culls its
route network. Delta will continue to serve the hubs at Atlanta, Detroit, and Cincinnati (see Figure 2), but will end service between Evansville and Memphis. This lost connectivity will hit businesses especially hard – as Memphis provided valuable connections to many cities in the south, including Toyota’s co-located plants in the Evansville region and in San Antonio. Toyota is now searching for a better way to move people between the two cities, without a Memphis option. Moreover, the Delta-Northwest merger le ft Evansville with just two mainline, legacy carriers, instead of three, which has resulted in fewer available seats and higher average fares. 

### FIGURE 1: Evansville Regional Airport’s immediate (30 minute) and extended (60 minute) catchment areasEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 12 In all, the Evansville Regional Airport will have non-stop service to five cities as of November 2010 (see Figure 2). As of August 2010 the Airport averaged 14 departures per day –
but that number will fall to just 12 departures a day as of the fall of 2010 – and just 600 total departing seats per day.

The number of domestic passengers using the Evansville Regional Airport has fallen precipitously since the year ended first quarter 2005. Total domestic passengers
are down 37% since 2005 in Evansville – a drop of more than 159,000 total domestic origin and destination travelers (see Figure 3). The reason for the passenger declin es in Evansville is fa irly clear – average fares have gone up considerably in the last four years in the market.

The average Evansville domestic one way fare grew to $226 as of the year ended first quarter 2010 – the highest point in the last decade (see Figure 3). Since 2005, average one way fares in Evansville are up 31%, or $53 each way. 

## Memphis Service Ends Fall 2010 FIGURE 2: Current Air Service at the Evansville Regional Airport August 2010Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 13 The average fare increase is, at least, partially responsible for the loss of passengers over the same time period. In just the last two years, average fares in Evansville have grown by 8%, or $16 each way – easily outpacing inflation (see Figure 3). The average roundtrip fare in Evansville as of the year ended first quarter 2010
was $452 – one of the highest average fares in
the nation.

With less air service than many other airports in the region, the Evansville Regional Airport is saddled with higher airfares than any of the airports surrounding its primary market area. In fact, of all Great Lakes region airports, as defined by the Federal Aviation Administration, with catchment areas of more than 500,000 people, Evansville has the highest current average one-way fare, at $226 each way, or an average of $452 roundtrip (see Figure 4). The average one way fare at the Evansville Regional Airport is $75, or 50%, higher than the Great Lakes Re gion average of $151 each way. 428,130 429,990 400,150 387,800

309,730
268,720

$173 $187 $202 $210 $235 $226

$0.00 0 300,000

YE 1Q 05 YE 1Q 06 YE 1Q 07 YE 1Q 08 YE 1Q 09 YE 1Q 10 O&D Passengers Fared Average Fare 

### FIGURE 3: Domestic O&D Passengers and Domestic Average One Way Fares At the Evansville Regional Airport, YE1Q10, Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 14 Most challenging for the Evansville Regional Airport, in terms of re taining travelers who live in its immediate catchment area, is the lower fares found at the closest competing airports in Louisville and Indianapolis. The Evansville averag e fare is $68 more each way than the average
fare at Louisville –

or 41% higher.
The Evansville
fare is an average of $80
more than the one way fare at Indianapolis – or 53% higher (see Table 4).

In many cases, fares to specific
markets at the
Evansville Regional Airport
are more than
double the fare
found at competing airports within a two-and-a-half hour drive. And although there is no close alternate airport to Evansville, many people in the immediate catchment area are forced to drive to other airports for more affordable and rational airfare pricing. These dr ives are inefficient, time consuming, and a drain on the local economy. High airfares not only drain money away from the Evansville Regional Airport, but also force companies to look at ot her cities when considering where to base their most frequent travelers. If allowed to remain un checked, it’s likely the high airfare environment
in Evansville will lead to the loss of significant economic activity. $225 $217 $209 $186 $184 $178 $177 $174 $170 $162 $160 $160 $158 $158 $157 $155 $154 $154 $141 $141 $138 $137 $130 $125 $123 $121 $95

$0 $50 $100 $150 $200 Evansville, IN

Lansing, MI Champai g n, IL

Lexington, KY Grand Rapids, MI Sprin g field, IL Fort Wayne, IN Cincinnati, OH Green Bay, WI

Madison, WI South Bend, IN Chicago

... Louisville, KY Peoria, IL Detroit, MI Cleveland, OH Moline, IL Toledo, OH Dayton, OH Indianapolis, IN Bloomington/N

... Columbus, OH Flint, MI Akron/Canton,

... Chica g o

... Milwaukee, WI Rockford, IL 

### Great Lakes Average: $151 

### FIGURE 4: Great Lakes Region Domestic Average One Way Fares YE1Q10, Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 15 This drive diversion factor, often referred to as passenger “leakage,” diverts almost 45% of
Evansville catchment area travelers to access ai r service at other airports, according to a new True Market Study just completed for the Evansvil le Regional Airport by air service development consulting firm Sixel Consulting Group. The study surveyed
almost 6,000 actual tickets, along with an analysis of other airline data sources, and
found that the Evansville Regional Airport retains just 55.4% of its total passengers,
while 36% use Louisville’s
Standiford Field and 3.5% use Indianapolis International Airport (see Figure 5). It is interesting to note that there is no freeway or interstate highway between Evansville and Indianapolis, so passengers who “leak” to Indianapolis have to do so
without interstate access.

The leakage can be at least partially explained by the fare disparity between Evansville and both Indianapolis and Louisville. While the current average one way domestic fare at Evansville is $226, the average one way fare at Louisville is 30% lower at $158 and the average one way fare in Indianapolis is 38% lower at $141 (refer to Figure 4 on previous page).

It has been difficult for the Evansville Regional Airp ort to recruit additional airlines to the market because of this leakage. The Ai rport’s poor retention of local passengers dilutes the Airport’s traffic data. Due to weaker traffic data, the Airport must be able to offer some kind of risk mitigation to get an airline to la unch new service in the Evansville market. Airfares will only come
down in Evansville once additional airlines have entered the market and provided competition.
Evansville is stuck in a situation where it must re cruit additional airlines in order to ensure the market’s continued viability, but it cannot recruit that competition without some kind of federal support to reduce a new airline’s barriers to entry into the market. 36.0% 55.4% 3.5% 

### FIGURE 5: Passenger Leakage from the Evansville Catchment Area Source: Sixel Consulting Group True Market Study, 2010Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 16 DETAILED EXPLANATION OF PROPOSAL

With local airfares so high and available seats on the decline, the Evansville Regional Airport must seek a third carrier to bring additional comp etition and pricing stability to the market. In conversations with several potential carriers over the past two years, Evansville has identified AirTran Airways as its best option for fare relief, and its most likely partner. AirTran can provide low cost/low fare service to th e market, initially launching a rout e to Baltimore/Washington – in an unserved part of the country – with the possib ility of later service to cities such as Orlando,
Milwaukee and Ft. Lauderdale. AirTran has had su ccess in communities of similar size, such as Akron/Canton, Bloomington /Normal, and Harrisburg.

The Airport proposes to offer the grant funding, in the form of start-up cost abatements, fee waivers, marketing support, and revenue guarantees to AirTran for at least one daily flight to Baltimore/Washington (BWI) (see Figure 6). The Baltimore/Washington hub would give Evansville area travelers adequate access to competitive connecting service, and provide strong fare competition in the market for
incumbent carriers Delta Connection and American Eagle. The Airport believes the
addition of AirTran will resu lt in better east coast connectivity, vastly increased enplanements, signif icantly lower fares, and an additional viable link to the national air transportation system.

The route between Evansville and Baltimore/Wash ington (BWI) would cover 593 miles, and could be flown by an AirTran Boeing 717-200 aircraft with an average flying time of 1:17 minutes at an average groundspeed of 400 knots (see Figure 6). The average block time on the service would be 1:50, from gate to gate.

The Airport proposes at least one daily flig ht in each direction between Evansville and Baltimore/Washington, operated by B717 mainline jet aircraft, seating 117 total passengers, with 12 business class seats and 105 economy class seats. The Airport proposes the flights be timed to meet the morning outbound bank at BWI, serving omni-directional destinations from the hub. 

### FIGURE 6: Proposed Route, Evansville

– Baltimore/WashingtonEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 17 The Airport also proposes a late evening return, connecting those same cities back into Evansville during AirTran’s last bank (see Figure 7).

Origin Destination Departs A rrives Block Time Equipment

EVV BWI 5:20am 8:10am 1:50 717
BWI EVV 9:30pm 10:20pm 1:50 717

The proposed schedule assumes an average ground speed of 400 knots on the route, and does
not take into account winds or weather conditions. That ground speed will result in an average flight time of 1:17 minutes on the Evansville – Baltimore/Washington route (see Figure 7). An
additional 16.5 minutes has
been added on each end for

taxi time, resulting in a total
block time of 1:50.

AirTran service from Evansville to Baltimore/Washington would open ten one-stop
destinations to new low fare service (see Figure 8). Many of these markets are currentlydominated by the DeltaAmerican duopoly in Evansville. Flights timed on the proposed schedule would
connect to destinations from Boston, in the northeast, to San Juan in the Caribbean. Connections through BWI would give Evansville travelers one-stop access to a number of markets in which there is little current competition. Moreover, the combined Baltimore/Washington, DC market currently ranks as
Evansville’s 3 rd largest origin and destination passenge r market, averaging almost 11,600 annual 

### FIGURE 7: Proposed Schedule, Evansville

– Baltimore/Washington

FIGURE 8: One

‐ Stop Connections on Proposed Route, Evansville

– Baltimore/WashingtonEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 18 passengers, or 15.8 passengers per day each way, despite limited high fare service and leakage to other airports.

There is no question the Evansville market lacks competitive air service. The way current service is structured, with high fares on Delta and Amer ican, and limited service, including the loss of one of the market’s major hub routes, there is littl e incentive for current carriers to keep fares inline with those found in other communities in the region. New flights, on a new low fare airline, would provide real competition in many of Evansville’s largest markets. The effect of this competition would be to bring fares down and increase enplanements.

Service on AirTran has been chosen strategically by the Airport. AirTran continually prices its markets not for the highest profit margin, but for long term growth and sustainability. Moreover, the AirTran aircraft of choice – the Boeing 717 – has some of the lowest operating costs in the industry – and lower costs than any of the regional airliners currently serving Evansville. This helps AirTran fill large numbers of seats, while still offering low fares.

The Evansville Region al Airport proposes that a relatively small portion of the cost ofstarting the new service be supported upfront with federal funds from the Small Community Air Service Development Program. Of the total project cost of $550,000, only $50,000 will be used for marketing and advertising projects. An undetermined amount of money will be used to cover AirTran’s start-up costs in the market. The federal share of this project will be $500,000, of which the vast majority will be used as a revenue guarantee.

The Airport projects that the bulk of the grant money be available to provide insurance in case the new carrier loses money during the start-up phase of service in its first full year in Evansville. With demand for the service in the Evansville market, the Airport projects the new flights will be profitable in their second year of operation. However, the Airport expects the new carrier to incur some losses at the launch of service, as the market becomes more accustomed to having competitive air service, lower fares, and as leakage slowly decreases.

The objective of the proposal is clear. Evan sville Regional Airpor t seeks to bring a new competing carrier to the region, in order to provide additional connection opportunities, moderate airfares, stimulate demand, and quell the leakage the airport experiences today. The 

## “New flights, on a new low fare airline, would provide real competition in many of Evansville’s largest markets... to bring fares down and increase enplanements.”Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 19 Airport is targeting this program to meet the goals of the Small Community Air Service Development Program through in creased capacity, lowered average fares, and increased service by new carriers to additional markets.

If, for some unforeseen reason, service is not commenced in a timely manner by AirTran Airways on the Baltimore/Washington route, the Airpor t proposes to use fede ral grant money awarded under the Small Community Air Service Development Program to help AirTran launch service on
another route it deems more like ly to see success. Among the alternate AirTran routes covered under this proposal would be Orlando, Milwau kee, Ft. Lauderdale, Tampa/St. Petersburg, and
Atlanta.

If AirTran declines to serve the Evansville mark et completely, the Airport will work to recruit
another carrier interested in beginning service to the community that can provide access to a new hub. Among the additional target airlines would be United, with service to Chicago O’Hare and/or Washington Dulles; Continental, with serv ice to Cleveland, Newark, and/or Houston; or US Airways with service to Charlotte. The Airpor t would also recruit other airlines, depending on their ability to compete and to lower local airfares.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 20 EXPECTED RESULTS

Route Specific Data: Evansville – Baltimore/Washington (BWI)

The Evansville market cu rrently produces 28,710 unstimulated origin and destination passengers destinations that naturally connect over the Ai rTran Baltimore/Washington hub as of the year ended first quarter 2010 (see Figure 9). In all, the Evansville – Baltimore/Washington route has the potential to capture 10% of the current passengers flying in and out of Evansville, itself, without taking into account any passenger leakage, which is quite high due to the oppressive fare environment. At the same time, the BWI hub could capture 7% of the current revenue generated in the Evansville market.

Currently, AirTran markets from Ev ansville that flow over the Baltimore/Washington hub generate more than $5.7 million in annual airline revenu e as of the year ended first quarter 2010 (see Figure 9). The AirTran hub at Baltimore/Washington has potential to capture large portions of traffic in 11 of Evansville’s largest origin and de stination markets. The BWI hub is especially well positioned to capture traffic traveling to the southeast, the northeast, and DC – including large markets such as South Florida (which includes Ft. Lauderdale, Miami, and West Palm Beach), which produces 9.6 passengers per day each way (PDEW) to and from Evansville; Boston, which 

### FIGURE 9: Connecting Passengers and Revenue, Evansville

– Baltimore/Washington Source: Sixel Consulting Group Hub Builder, YE1Q10

BWI 10%

Other Hubs 90% BWI 7%

Other Hubs 93%

Evansville O&D Revenue $77,497,280 100% Revenue Flowing Over BWI $5,735,760 7% Evansville O&D Passengers 301,131 100% Passengers Flowing Over BWI 28,710 10%Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 21 produces 6.5 PDEW; and Cancun, which produces 3.4 passengers per day each way as of the year ended first quarter 2 010 (PDEW) (see Figure 10).

It is likely AirTran would
stimulate the passenger market significantly in Evansville, with a projected stimulation rate in its markets of, at least, 100%. AirTran’s
low fare structure has
been shown to have a similar impact in other markets in the Midwest. This gives the Airpor t reason to be optimistic that the service can be self-sustaining in as little as 12 months from the start of flights.

Evansville’s top three revenue markets that woul d flow over Baltimore/Washington on AirTran each produce more than $1,300 in revenue per day each way as of the year ended first quarter 2010 (see Figure 11). The top potential Evansville

revenue market over
AirTran’s Atlanta hub is Washington-Baltimore, itself, which produces almost $2,800 in revenue per day each way (RDEW). South
Florida ranks as Evansville’s second-largest revenue
market that AirTran would
access with service to the BWI hub, generating $3,001 in RDEW as of the year ended first quarter 2010. 11,540
7,020
4,720
2,460
1,040

680

440

420

390 15.8

9.6

6.5

3.4

1.4

0.9

0.6

0.6

0.5

0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00 Washington/Baltimore - 1

South Florida Area - 2

Boston - 3

Cancun - 4 Montego Bay - 5

San Juan - 6

Nassau - 7

Rochester - 8

Portland - 9 Annual Passengers
PDEW 

### FIGURE 10: Top Passenger Markets, Evansville

– Baltimore/Washington Source: Sixel Consulting Group Hub Builder, YE1Q10

$2,027,120

$1,462,400

$955,850

$495,150

$282,970

$191,600

$126,630

$109,560

$84,480 $2,777

$2,003

$1,309

$678

$388

$262

$173

$150

$116

0.00 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 Washin g ton/Baltimore - 1

South Florida Area - 2

Boston - 3

Cancun - 4
Montego Bay - 5

San Juan - 6

Nassau - 7

Rochester - 8

Portland - 9 Annual Revenue
RDEW 

### FIGURE 11: Top Revenue Markets, Evansville

– Baltimore/Washington Source: Sixel Consulting Group Hub Builder, YE1Q10Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 22 The AirTran hub at Baltimore/Washington is in a unique position to gene rate additional traffic and revenue to any number of Evansville’s top or igin and destination markets. AirTran service from Evansville Regi onal Airport to Baltimore/Washington on AirTran has the potential to capture as much as $5.7 million in current annual airline revenue, not taking into account any revenue stimulation through lower fares and additional non-stop

service.

Should it launch service
between Evansville and Baltimore/ Washington, AirTran would be competing
in markets that have current fares well above the regional average. The average one way fare to Evansville
markets that AirTran would connect with one-stop service over Baltimore/Wa shington was $200 as of the year ended first quarter 2010 – 33% higher than the current Great Lakes regional average of $151 each way as of the year ended first quarter 2010 (see Figure 12). AirTran would provide much-needed competition for Evansville catchment area residents traveling to many of the market’s top destinations, where fares top the regional average, such as Washington-Baltimore, where the average roundtrip fare was $352 as of the year ended first quarter 2010; South Florida, where the average roundtrip fare was $416 as of the year ended first quarter 2010; Boston, where the average roundtrip fare was $406 as of the year ended first quarter 2010; and Portland, Maine, where the average roundtrip fare was $432 as of the year ended first quarter 2010.

Average fares in Evansville markets that would naturally flow over Baltimore/Washington on AirTran would likely be roughl y 20% below the overall Evansville average. Still, specific Baltimore/Washington flow markets have some of the highest average fares of all Evansville markets, and must have relief in order for the number of local pass engers to begin to rebound.

The only real chance at fare reli ef in markets that flow over Ba ltimore/Washington on AirTran is for an additional airline to offer competing service. AirTran’s low fare service would go a long $176
$208
$203
$201
$272
$282
$288
$261
$217

$0 $50 $100 $150 $200 $250 Washington/Baltimore - 1

South Florida Area - 2

Boston - 3

Cancun - 4
Montego Bay - 5

San Juan - 6

Nassau - 7

Rochester - 8

Portland - 9 

### Average Over BWI: $200 

### FIGURE 12: Average One Way Fares, Evansville

– Baltimore/Washington Source: Sixel Consulting Group Hub Builder, YE1Q10Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 23 way towards providing enough competition to br ing fares in-line with those found in other regional markets.

The Airport believes there is sufficient passen ger traffic and revenue that would flow over AirTran’s Baltimore/Washington hub to make the se rvice profitable. AirTra n would not be forced
to offer rock-bottom fares in Evansville to be co mpetitive – even fares slightly higher than those
found in other Midwest markets would be considered low for local Evansville travelers. The Evansville Regional Airport beli eves in the Evansville – Baltim ore/Washington market, and must develop a risk mitigation package to ensure AirT ran can enter the market without major up-front
investments.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 24 LETTERS OF SUPPORTEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 25Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 26Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 27Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 28Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 29Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 30Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 31Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 32 CURRENT AIR SERVICE IN EVANSVILLE

The Evansville Regional Ai rport is served by the regional affi liates of two netw ork carriers with flights to five non-stop destinations. Delta Connection has service to its hubs at Atlanta, Cincinnati, and Detroit, while American Eagle has service to its hubs at Chicago O’Hare at Dallas/Ft. Worth. Evansville will lose its twice-dail y service to the Delta hub at Memphis this fall. It has also lost frequency on flights to Atlant a and Cincinnati within the last two years.
Despite the presence of two airlines in the market, of Great Lakes region catchment areas with populations of 500,000 or more, Evansville has the highest fares – averaging $226 each way as of the year ended first quarter 2010, or $452 roundtri p. Evansville is the single most expensive medium-sized market in which to fly in or out in the entire Great Lakes region. The Airport must have an additional competing carrier to truly realize the benefits of competition on average airfares. The best solution would include service on a low cost carrier, instead of service on another legacy carrier.

Current Passenger Traffic the Evansville Market

The domestic travel downturn nationwide, and at the Evansville Regional Airport, coincides with the significant loss of available seats, including the loss of frequencies on each and every hub
route served from the Airport. By the end of 2008, Delta began to
rationalize the
new hub
structure of the
combined
Delta-Northwest.
In Evansville this
will mean the
loss of service to
the former
Northwest hub 975 973 965 927 889 864 883 855 822 817 861 842 872 833 830

693 757

645 648 681 657 611 612 633 718 555 594 630 579 513 475 520 467 478

357 405 431 406 443 510
433 420 415 451 434 403 367 391 460 471

0 200 400 600 800 1,000 1,200

Available SDEW Onboard PDEW Flights Per DEW 24.0 23.5 23.5 22.8 22.0

17.5 17.7 17.3 16.7 17.0 17.8 17.3 17.6 17.1 17.2
14.4 15.5 13.1 13.6 14.1 13.5 12.3 12.3 12.8 14.8 

### FIGURE 13: Available Seats, Onboard Passengers, and Daily Departures Source: T100 Reports, April 2008

– April 2010Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 33 at Memphis by fall of 2010. Other routes have lo st frequencies and available seats. These losses in service have made connectivity beyond major hubs much more limited from Evansville, and have driven many people either to choose other airp orts in the region for th eir travel, or, in many cases, not to travel at all.

Total onboard passengers at the Evansville Region al Airport have dropped by 25% since April of 2008 (see Figure 13). At the same time, the average one way fare in the market has risen by almost 45% - one of the largest such airfare increases in the Great Lakes region.

The Airport has seen a precipitous decline in available seats in the last two years. Evansville has lost 26% of its average daily available seats since April of 2008, as the number of departing seats per day has declined from 975 in April of 2008 to 718 in April of 2010 (see Figure 13). At the same time, airlines have cut the average number of daily departing flights in the Evansville market from 24 in April of 2008 to 14.8 in April of 2010 – a loss of more than nine daily departures or a total departure decline of 38%.

There is little doubt the lack of available seats is suppressing local passengers, as airlines are able to better control their open inventory with
fewer seats in the market. The two airlines serving Evansville are able to charge a premiu m for local air service. Those airlines are unchecked, due to the lack of a low cost carrier within 125 miles of the Evansville market.

Despite the lack of available seats, and the subsequent high average fares – higher than other airports in the region – the Evansville Regional Airport generated more than ten passengers per day each way (PDEW) to eight domestic markets, and more than five PDEW to all top 20 domestic markets as of the year ended first quarter 2010 (see Figure 14). The number one market for Evansville travelers as of the year ended first quarter 2010 was Chicago, which saw a total of 19,800 origin and destination trips, or 27.1 passengers per day each way. New York/Newark ranked second, with 12,290 O&D trips, or 16.8 passengers per day each way. Other top markets include Dallas/Ft. Worth, with 10,960 O&D trips, or 15.0 passengers per day each way, Detroit with 10,020 O&D trips, or 13.7 passengers per day each way, and Las Vegas with 9,740 O&D trips, or 13.3 passengers per day each way. 

## “New flights, on a new low fare airline, would provide real competition in many of Evansville’s largest markets... to bring fares down and increase enplanements.”Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 34 If Baltimore/Washington, Washington Nation al, and Washington Dulles are combined, the Washington-Baltimore market represents the th ird largest origin and destination passenger destination for Evansville travelers as of the year ended first quarter 2010 (see Figure 14). As of the year ended first quarter 2010, Evansville generated 11,540 total O&D passengers to and from Washington-Baltimore, or 15.8 passengers per day each way.

It is highly likely that demand in the Evansville-Washington/Baltimore market is underrepresented by the Department of Transportation data due to the high average fares that cause many Evansville passengers to fly from other airports in the region. No n-stop service would likely lower 19,800
12,290
10,960
10,020
9,740
8,500
8,340
7,890
6,760
6,580
6,500
5,160
5,120
4,960
4,740
4,720
4,650
4,240
4,200
4,190 27.1

16.8

15.0

13.7

13.3

11.6

11.4

10.8

9.3

9.0

8.9

7.1

7.0

6.8

6.5

6.5

6.4

5.8

5.8

5.7

0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00 14,000.00 16,000.00 18,000.00 20,000.00 Chicago, IL
New York/Newark, NY
Dallas/Ft Worth, TX
Detroit, MI Las Vegas, NV
Orlando/Sanford, FL Los Angeles, CA
Atlanta, GA
Phoenix/Mesa, AZ

Washington, DC Tampa/St Petersburg, FL
Denver, CO
Cincinnati, OH
Baltimore, MD Philadelphia, PA
Boston, MA
Seattle/Tacoma, WA San Diego, CA Raleigh/Durham, NC
Houston, TX Annual Passengers

PDEW 

### FIGURE 14: Evansville’s Top 20 O&D Domestic Passenger Markets Source: US DOT Table DB1A, YE1Q10Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 35 the average fare, due to the low fare philosophy of AirTran, dramatically increasing enplanements.

The AirTran hub at Baltimore-Washington has tremendous potential to connect the Airline with the majority of available Evansville revenue. The BWI hub could access seven of Evansville’s top 20 year ended first quarter 2010 revenue markets. Moreover, the Airport believes non-stop service will dramatically increase non-stop revenue between Evansville and BWI.

Air Carrier Market Share in Evansville
For many years, Evansville was a market that wa s split into thirds – with American, Delta, and Northwest each carrying about a third of all origin and destination passengers. This status quo was overturned by the Delta-Northwest merger in 2008. Now the market is unevenly distributed both in terms of passengers and revenue, with Delta becoming the major market force. Since Delta took this position, it has cut frequency on several routes, and in the fall of 2010, it will end service between Evansville and the former Northwest hub in Memphis.

As of the year ended first quar ter 2010, the new Delta carried 65.3% of Evansville’s passengers, while American carried 34.7% (see Figure 15). With Delta and American capturing a
combined 100% of Evansville passenger market, one can reasonably expect Evansville fares to increase even more substantially. With year ended first quarter 2010 fares ranking as the highest in the Great Lakes region, it is likely the trend will continue without a new competitor to add seats and force lower fares. The Airport must work now to bring low fare competition to Evansville , before the high fare fate of the market is
sealed. American 34.7%

Delta 65.3% 

### FIGURE 15: Passenger Market Share at EVV Source: US DOT Table DB1A, YE1Q10Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 36 The same trend is apparent in Evansville’s reve nue share by carrier. The new Delta captured 66.1% of origin and destination revenue at the Ev ansville Regional Airpor t as of the year ended first quarter 2010, while American captured a 33.9% (see Figure 16). Much like the passenger market share of the carriers at the Evansville Regional Airport, the revenue split is far from achieving competitive balance. This creates a pricing environment that discourages local travel, and encourages passengers to use other carriers at other airports in the region. American

33.9%

Delta 66.1% 

### FIGURE 16: Revenue Market Share at EVV Source: US DOT Table DB1A, YE1Q10Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 37 AIR SERVICE DEFICIENCIES IN EVANSVILLE

Although the Evansville Regional Airport catchment area represen ts 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 – ev en though those airports are not particularly close. The Airport took the pro-active step of having Sixel Consul ting Group prepare a leakage analysis and True Market Study in anticipation of this Grant applic ation. That study found the Airport retains just 55% of its catchment area’s passengers, with more than a third of those living nearest Evansville flying in and out of the airport in Louisville. Hi ghlights of the True Market Study include the following:

o Based on the analysis 561,018 enplaned and deplaned passengers – 769 passengers per day each way - are produc ed in the Evansville catchment area. Evansville Regional Airport (EVV), Lo uisville International Airport (SDF) and Indianapolis International Airport (IND) are the primary airports used among area passengers (see Figure 17).

o Slightly more than 5 in 10 – 55.4% of Evansville Regional Airport area passengers – or 426 area passengers per day each way, use Evansville Regional, while 277 passengers per day each way drive in order to travel to/from Louisville International. The remaining 8.6% of passengers, or 66 per day each way, use Indianapolis International or other airp orts in the region (see Figure 17).

o Based on the analysis , $124.5 million in domestic and international revenue – $170,570 per day each way - is generated in the Evansville Regional Airport catchment area (see Figure 18).

o 63.7% of area revenue, or $79.3 million, is generated at Air port Passe nge rs PDEW Share

1 Evansville, IN 310,600 425.5 55.4% 2 Louisville, KY 202,225 277.0 36.0% 3 Indianapolis, IN 19,415 26.6 3.5% 4 Other A irports 28,778 39.4 5.1%

Total Evansville Are a Passe nge rs 561,018 769 100.0% Rank 

### FIGURE 17: Airports Used by EVV Catchment Area Passengers, CY2009; Source: EVV True Market Study, 2010

Airport Revenue RDEW Share
1 Evansville, IN $79,319,810 $108,657 63.7% 2 Louisville, KY $37,923,969 $51,951 30.5% 3 Indianapolis, IN $3,283,265 $4,498 2.6% 4 Other Airports $3,989,235 $5,465 3.2%
Total Evansville Area Revenue $124,516,278 $170,570 100.0% Rank 

### FIGURE 18: Airports Capturing EVV Catchment Area Revenue, CY2009; Source: EVV True Market Study, 2010Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 38 EVV while $38 million is generated at SDF. The remaining 5.8% of revenue is generated at IND and other area airports (see Figure 18).

Evansville retains less than two-thirds of its catchm ent area’s passengers to 18 of its top 20 origin and destination passenger markets, according to the 2010 True Market Study. While the Evansville Regional Airport retains almost 80% of passengers to and from Chicago O’Hare – due to American Eagle’s non-stop service – it retains just 32% of passengers to Boston, just 25% of passengers to Miami, and just 31% of passenger s to Hartford (see Figure 19). Most of these “leaking” passengers are flying from Louisville’s Standiford Field, which offers average fares 30%
below the fares offered at Evansville.

Total

Rank Airport Paxs Share Paxs Share Paxs Share Paxs Share Passengers
1 Chicago O'Hare, IL 21,300 79.6% 5,090 19.0% 0 0.0% 380 1.4% 26,766 2 Las Vegas, NV 9,530 41.4% 13,070 56.7% 430 1.9% 0 0.0% 23,032 3 Orlando, FL 9,160 44.3% 2,820 13.6% 8,300 40.1% 420 2.0% 20,687 4 Detroit, MI 10,170 55.8% 7,690 42.2% 0 0.0% 370 2.0% 18,226 5 Atlanta, GA 8,020 47.9% 7,130 42.5% 540 3.2% 1,070 6.4% 16,757 6 Dallas/Fort Worth, TX 9,640 58.5% 6,830 41.5% 0 0.0% 0 0.0% 16,468 7 New York La Guardia, NY 6,950 49.5% 6,510 46.4% 220 1.6% 350 2.5% 14,035 8 Tampa, FL 7,510 60.5% 4,370 35.2% 130 1.0% 400 3.2% 12,411 9 Boston, MA 3,920 32.5% 7,310 60.6% 210 1.7% 620 5.1% 12,068 10 Phoenix, AZ 6,520 54.2% 5,370 44.6% 0 0.0% 150 1.2% 12,040 11 Philadelphia, PA 4,960 43.7% 5,520 48.6% 550 4.8% 330 2.9% 11,358 12 Miami, FL 2,690 24.7% 5,640 51.8% 0 0.0% 2,560 23.5% 10,888 13 Los Angeles, CA 8,080 75.0% 1,770 16.4% 850 7.9% 70 0.7% 10,768 14 Sanford, FL 0 0.0% 0 0.0% 0 0.0% 10,380 100.0% 10,380 15 Baltimore, MD 6,530 63.8% 3,700 36.2% 0 0.0% 0 0.0% 10,228 16 Providence, RI 1,690 18.2% 7,040 75.7% 560 6.0% 0 0.0% 9,298 17 Minneapolis, MN 4,300 49.5% 3,760 43.3% 130 1.5% 490 5.6% 8,680 18 Kansas City, MO 2,670 34.5% 5,060 65.5% 0 0.0% 0 0.0% 7,729 19 Hartford, CT 2,380 31.1% 3,960 51.7% 0 0.0% 1,320 17.2% 7,658 20 San Jose, CA 1,720 22.7% 5,870 77.3% 0 0.0% 0 0.0% 7,592 21 New York New ark, NJ 4,410 59.3% 2,400 32.3% 550 7.4% 80 1.1% 7,440 22 Houston Intercontinental, TX 4,510 61.8% 2,390 32.8% 400 5.5% 0 0.0% 7,296 23 Denver, CO 5,010 68.7% 1,970 27.0% 0 0.0% 310 4.3% 7,287 24 San Diego, CA 5,200 71.5% 1,500 20.6% 430 5.9% 140 1.9% 7,273 25 Washington National, DC 4,550 63.9% 2,220 31.2% 180 2.5% 180 2.5% 7,125 26 Seattle/Tacoma, WA 4,310 63.2% 1,490 21.9% 390 5.7% 630 9.2% 6,818 27 San Francisco, CA 3,160 48.1% 3,230 49.1% 60 0.9% 120 1.8% 6,572 28 Fort Lauderdale, FL 3,840 59.7% 2,430 37.8% 0 0.0% 170 2.6% 6,433 29 Austin, TX 2,320 37.8% 3,660 59.6% 160 2.6% 0 0.0% 6,141 30 Manchester, NH 950 15.7% 5,110 84.3% 0 0.0% 0 0.0% 6,061 31 Raleigh/Durham, NC 5,100 93.2% 370 6.8% 0 0.0% 0 0.0% 5,473 32 Fort Myers, FL 3,070 61.8% 1,210 24.4% 0 0.0% 680 13.7% 4,964 33 New Orleans, LA 3,070 67.2% 1,130 24.7% 360 7.9% 0 0.0% 4,568 34 Pittsburgh, PA 3,200 74.3% 1,110 25.8% 0 0.0% 0 0.0% 4,305 35 Cancun, Mexico 2,670 64.4% 340 8.2% 570 13.7% 570 13.7% 4,149 36 San Antonio, TX 2,960 71.8% 1,160 28.1% 0 0.0% 0 0.0% 4,123 37 Cincinnati, OH 4,100 100.0% 0 0.0% 0 0.0% 0 0.0% 4,100 38 Savannah, GA 1,560 38.5% 2,500 61.6% 0 0.0% 0 0.0% 4,056 39 Norfolk, VA 2,300 58.8% 1,610 41.2% 0 0.0% 0 0.0% 3,910 40 Oklahoma City, OK 1,510 43.8% 650 18.8% 0 0.0% 1,290 37.4% 3,451 41 Orange County, CA 2,330 70.0% 1,000 30.0% 0 0.0% 0 0.0% 3,331 42 Charlotte, NC 2,000 64.4% 980 31.5% 0 0.0% 130 4.2% 3,108 43 Montego Bay, Jamaica 1,340 43.3% 20 0.6% 1,670 54.0% 60 1.9% 3,092 44 Albany, NY 1,610 52.1% 1,480 47.9% 0 0.0% 0 0.0% 3,088 45 West Palm Beach, FL 1,840 60.0% 1,230 40.1% 0 0.0% 0 0.0% 3,068 46 Grand Rapids, MI 1,900 64.4% 1,050 35.6% 0 0.0% 0 0.0% 2,952 47 Jacksonville, FL 2,120 71.9% 830 28.1% 0 0.0% 0 0.0% 2,949 48 Cleveland, OH 1,930 66.2% 990 33.9% 0 0.0% 0 0.0% 2,917 49 Salt Lake City, UT 2,330 80.3% 510 17.6% 0 0.0% 60 2.1% 2,903 50 Portland, OR 2,270 78.6% 490 17.0% 0 0.0% 130 4.5% 2,886
Total Evansville Area Passengers 310,600 55.4% 202,220 36.0% 19,410 3.5% 28,788 5.1% 561,018 Evansville Louisville Other Airports Indianapolis 

### FIGURE 19: Passenger Retention in Evansville’s Top 50 True Passenger Markets Source: EVV True Market Study, 2010; Sixel Consulting GroupEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 39 Current air service in Evansville does a poor job connecting the catchment area’s passengers to destinations in the northeast and the southeast, with weak retention to Philadelphia, New York City, Boston, Providence, and even the Washingt on-Baltimore area (see map in Figure 20). Evansville’s current air service does a much better job connecting its catchment area to the southwest, with strong retention to Denv er, Phoenix, San Diego, and Los Angeles.

The Airport’s glaring need for new service is to the east of the market, where its retention is poorest (see map in Figure 20). Passenger retentio n from Evansville to western markets tends to be better, as higher fares are not such a deterrent to local air travel over longer distances, where fares from other airports in the region are also higher. On short stage lengths to the east of the market, Evansville cannot compete on fare with either Louisville or Indianapolis, causing more significant passenger leakage to those destinations. It is clea r that additional service to an
eastern hub would best serve the Evansville market. 

### FIGURE 20: Map of Passenger Retention in Evansville’s Top 20 True Passenger Markets Source: EVV True Market Study, 2010; Sixel Consulting GroupEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 40 EXTENUATING FACTORS AFFECTING AIR SERVICE

The airfare disparity between the Evansville Regional Airport and other airports in the Great Lakes region is well documented. So is the fact that the Evansville market has fewer available seats than most other airports in the region. Th e proposal has also detailed the current market strength of the new Delta Air Lines in the Evansville market, with a virtual duopoly between Delta
and American as of August 2010.

It would stand to reason, then, that most of thos e passengers who live in the Evansville Regional Airport catchment area, but who fly from other airports in the region instead of Evansville due to the lack of local available seats and high average fares, would seek out the service of airlines
other than Delta and American at other airports in the region . Somewhat surprisingly, the Airport’s 2010 True Market Study found the opposite to be true.

Based on the analysis, it was determined that th e new Delta is the Evansville catchment area’s largest passenger airline, carry ing an average of 377 passengers per day each way – 49.1% of the area total (see Figure 21). Delta is followed by American at 22.3% of the passenger market share. Together, Delta and American capture 71.4% of all Evansville catchment area passengers, regardless of which airport in the region they use. In other words, most passengers in the
Evansville catchment area “leak” to Louisville and Indianapolis for lower fare s – created by competition – on the same airlines that provide direct service into the Evansville Regional Airport.

Less than 30% of Evansville catchment area passengers use airlines other than Delta and American – even when they fly out of Louisville an d Indianapolis. Southwest, with its low fares and frequent service at both Indi anapolis and Louisville, captures just at 9.3% of Evansville catchment area travelers (see Figure 21). It shou ld also be noted that AirTran currently has very little market presence in Evansv ille – capturing less than 1% of all Evansville catchment area passengers with its service at Indianapolis. Airline Passengers PDEW Share

1 Delta/Northw est 275,459 377.3 49.1% 2 American 125,101 171.4 22.3% 3 Southw est 52,244 71.6 9.3% 4 US Airw ays 31,755 43.5 5.7% 5 Continental 13,077 17.9 2.3% 6 United 12,004 16.4 2.1% 7 Allegiant 10,380 14.2 1.9% 8 Airtran 4,907 6.7 0.9%
Total Evansville Area Pass engers 561,018 769 100.0% Rank 

### FIGURE 21: Airlines Used by All EVV Catchment Area Passengers; Source: EVV True Market Study, 2010Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 41 It is important to note, that even if additional airline service – including low cost service – is offered at the Evansville Regional Airport, airlines serving Evansville will not realize the full number of passengers and the full amount of revenue represented in this True Market Study. While these numbers represent what the Evansville market currently produces for airlines at EVV and other airports combined, it does not represent the eventual retention number of service in Evansville. Local air service, in regional markets like Evansville, retains only a percentage of the total market, as many travelers still choose to drive to other airports to access the national air transportation system.

While this True Market Study indicates the
Evansville local air serv ice market is currently large enough to support additional local air service, local marketing and business support will be essential to ensuring any additional local serv ice sees success. The next task will be for the Airport to develop financial support for any additi onal scheduled air servic e. The Airport and its community partners must meet with multiple loca l businesses and organizations to solicit local funding for a revenue guarantee to support an a dditional airline taking the risk of launching
service in the Evansville market.

There is a remedy for the current duopoly in the Evansville. It begins with the recruitment of a low cost carrier that can provide additional competition. The Airport believes increased competition will lead to lower fares, through the a ddition of more available seats, more flights, and service that is more likely to compete on price and convenience with that found at other regional airports. 

## “...local marketing and business support will be essential to ensuring any local service sees

success. The... Airport [must] develop financial support for any

additional scheduled service.””Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 42 AVAILABILITY OF ALTERNATE AIRPORTS

The Evansville Regional Airport is relatively isolat ed as the only commercially-served airport within a two hour drive. The closest alternate airport with scheduled airline service from Evansville is Louisville, which is 99 miles away (see Figure 22). The drive time to Louisville is two hours and ten minutes, not taking into account traffic conditions.

Lambert – St. Louis International Airport is the next closest to Evansville, at 162 miles away, or a drive of just over three hours (see Figure 22). While most leakage likely occurs to flights at Louisville and St. Louis, some Evansville travelers drive as far away as Indianapolis and Cincinnati to access the national air transportation system. The drive to each of those cities is long, arduous, and difficult in the frequent bad weather the region experiences. 

## Adjacent Airports With Current Air Service

Evansville to Louisville (SDF) 99 2:10 Evansville to Indianapolis (IND) 174 3:13

Evansville to St. Louis (STL) 162 3:03 Evansville to Cincinnati (CVG) 172 3:18 Mileage Drive Time EVV IND

STL

SDF CVG 

### FIGURE 22: Location of Evansville Regional Airport in relation to other airports in regionEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 43 USE OF LOCAL FEDERAL FUNDS

Marketing and Advertising

The Evansville Regional Ai rport proposes to spend $50,000 in funds on marketing and advertising promotions in support of new service. The goal is to increase enplanements and usage through targeted regional campaigns.



### Revenue Guarantee

The Airport proposes to make available at least $500,000 in funds for a revenue guarantee to the new carrier, to cover start-up losses that may occu r during the first twelve months of service. Subject to negotiation, payments will be made to the new carrier quarterly, when income derived from passengers and cargo is less than agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds
are used.



### Startup Cost Offsets

The Airport proposes to use a sma ll portion of the funding provided under this proposal to pay for start-up costs in support of new service introduc tions. Money will be reimbursed to the new carrier, from the revenue guarantee portion of this proposal, as invoices are submitted detailing the work performed to offset the acquisition of necessary equipment to begin service (items include carts, tugs, power units, computer equipment, cabling, software, etc.).



### Additional Costs

As part of this program, the 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. In addition, the Evansville Regional Airport expects to incur some expenses in the recruitment of a new airline. These additional costs will come from the revenue guarantee portion of the funding.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 44 PUBLIC/PRIVATE PARTNERSHIPS

A number of local partners will be working wi th the Evansville Regional Airport to promote, support, and market the new service. Contacts will be made to all Evansville members of
chambers of commerce and simila r organizations, and those with an interest in growing the economic base of the community through local business growth, attraction of new businesses and the promotion of tourism and visitor traffic via the airport.

Vanderburgh County

Vanderburgh County and the City of Evansville are the major government entities overseeing the Evansville Regional Airport. The Airport is governed by th e Evansville-Vanderburgh Airport Authority District, and its Board Members. This Board is made up of community leaders from major local business organizations. The Airport Board will overse e the development of this grant application, and administer the funds awarded.

City of Evansville

The City of Evansville is one of the biggest supp orters of bringing additi onal air service to the local Airport, as they realize how vital the Airport is to the growth of the entire region that it serves. City leaders continually work with to develop and support new service initiatives.

Chamber of Commerce of Southwest Indiana

The Chamber of Commerce of Southwest Indiana is a totally independent non-profit corporation (not affiliated with government or an y other agency) that is uniquely able to serve the needs of the business community in Evansville . The Chamber is dedicated to just one goal:
the economic health of the area an d the prosperity of its members.

The Chamber’s philosophy is simp le: more business is good for exis ting business and an attractive and viable city will attract more business activity. The Chamber also believes additional economic activity will benefit every business person and resident in the region. The Chamber’s work toward implementing this philosophy has been successful because of a powerfulEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 45 combination of active, motivated volunteer busi ness leaders supported by a highly regarded professional staff. Together, the volunteer leader s and the professional staff do what no service club, government agency nor individual business could do: enhance and promote Evansville as a place to do business and enjoy life. Moreover , the Chamber believes enhanced air service is essential to the interconnectivity of businesses, an d is an essential part of any community’s plan for economic growth.

Economic Development Coalition of Southwest Indiana

The Economic Development Coalition of Southwest Indiana is a private partner in this application. The Coalition provides a number of in-kind services. Coalition funding will commit to a program of viral marketing through e-ma il blasts to all members and word-of-mouth advertising. The Coalition also contributes mailer s to area businesses explaining the benefits of
new and additional air service.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 46 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in De cember 2010. Once the award is announced, the Evansville Regional Airport will conduct addi tional airline meetings to secure a new service that is mutually beneficial. Based on airlin e planning lead times and the need for advance bookings, we assume the new carrier would not be able to begin service until at least March of
2012.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with prospect ive airlines to negotiate for service, and sign the minimum revenue guarantee agreement with the appropriate airline partner. Once service is announced and schedules are published, the Airport would begin marketing the new route and working with the new carrier to monitor adva nce bookings. The Airport will continue its marketing program and continue to work with th e new carrier to monitor the route once service begins. The Airport would submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is awarded. It is also possible that new service could slip to 2013 should an airline require addition al risk mitigation, beyond that included in this proposal, from the community.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010 Executive Grant Agreement with DOT January 2011 Meet With Prospective Airlines February - June 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline July/August 2011 Announce Service December 2011 Publish Schedule December 2011 Begin Marketing of New Route January 2012 Monitor Advance Bookings January - March 2012 Service Launch March 2012 MRG Available for Service March 2012 - March 2014 Monitor Route Performance March 2012 - March 2014 Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q1 2014 Close Grant April 2014Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 47 AIR SERVICE ADVISORY GROUPS

The Evansville-Vanderburgh Airport Authority Di strict Board is made up of a number of community leaders from a variety of business organizations. These Board members oversaw the development of this grant application, and wi ll oversee and administer the funds awarded.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 48 LOCAL AIR SERVICE DEVELOPMENT EFFORTS

The Evansville Regional Airport has been one of the more a ggressive regional airports in the country in terms of its air service development efforts over the last decade. The Airport has had success in recruiting several new routes, including its route on American Eagle to Dallas/Ft. Worth, which is still in operation today.

This Grant does not represent a new effort for the Evansville Regional Airport. It is the continuation of more than a decade of work to bring a low cost carrier to the community. The Airport has been in continual talks with AirTran fo r the last three years, meeting with leaders from the carrier at least annually. In 2010, the Airport has met with AirTran leaders and planners twice in formal settings, and several mo re times in informal settings.

The Airport also meets with its incumbent and interest ed carriers on, at least, an annual basis. In 2010, Evansville Regional Airport leaders have me t with planners from United Airlines, American Eagle, Republic Airways, Frontier Airlines, Midwest Airlines, and Continental Airlines.

The Airport realizes the importance of constant work to improve the air service offerings in the community and the region, and spends considerable time and money working to communicate
with airlines and make the case for the market.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 49 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.

 Vanderburgh County

 City of Evansville

 Chamber of Commerce of Southwest Indiana

 Economic Development Coalit ion of Southwest Indiana

 Evansville Convention and Visitors BureauEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 50 PERFORMANCE MEASURES

The success of the program will be based on three variables. The first measure of success will be
the recruitment and retention of a new airline to the Evansville market. When new service is initiated, the first measure of success will be met. The Airport will judge the second measure of success by the increased number of enplanements. Finally, the third measure of success will be based on how much average airfares charged in the community have gone down. The measurement of enplanements will include a monthly comparison, once the program begins, to past enplanements numbers. The measurement of airfares will be derived from US DOT OD1A reports.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 51 LEGAL SPONSOR

The Evansville-Vanderburgh Airpor t Authority District Board is th e legal sponsor responsible for administering the program. The Board is a government entity.

Evansville-Vanderburgh Airport Authority District Board 7801 Bussing Drive Evansville, Indiana 47725 Douglas P. Joest, Interim Airport Manager 812.421.4401 doug@evvairport.comEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 52 FINANCIAL CONTROLS

As the sponsor, the Evansville – Vanderburgh Airp ort Authority District, will be the responsible parties for all fiscal matters and DOT reporting re quirements. The Authority is established as 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 Grant will be used in accordance with any subsequent agreement. The Evansville Regional Airport unders tands 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 tota l grant request.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 53 RETURN ON INVESTMENT

The Airport has developed a cost effective an d achievable strategy to add new service, increase enplanements, and lower airfares at the airport. The proposal uses proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The increased competition, and access to lower airfares with increased competition, by adding service on a new low fare airline, is in line with the major goals of the Small Community Air Service Development Program.

Approximately $50,000 of the $550,000 in cash is committed to being spent. The remaining $500,000 in cash available for the revenue guarantee portion of the grant may never be expensed.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 54 DOT EXIT STRATEGY

The Evansville Regional Airport has developed this proposal as a one-time grant. While the initial startup costs will be paid for out of other airp ort funds, the advertising and marketing program
will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will al so be in place for twelve months, with two additional twelvemonth periods available for negotiation. It is projected that the service will be financially selfsustaining within the second tw elve months of service.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 55 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by AirTran Airways on the Baltimore/Washington route, the Airpor t proposes to use fede ral grant money awarded under the Small Community Air Service Development Program to help AirTran launch service on
another route it deems more like ly to see success. Among the alternate AirTran routes covered under this proposal would be Orlando, Milwau kee, Ft. Lauderdale, Tampa/St. Petersburg, and
Atlanta.

If AirTran declines to enter the Evansville market, the Airport will work to recruit another carrier interested in beginning service to the commun ity that can provide access to a new hub. Among the additional target airl ines would be United, with service to Chicago O’Hare and/or Washington Dulles; Continental, with service to Cleveland, Newark, and/or Houston; or US Airways with service to Charlotte. The Airport’s alternate low cost carrier under this Grant proposal will be Frontier Airlines, with service to either the Milwaukee hub or the Denver hub.

The Airport would also be open to recruiting other airlines, depend ing on their ability to compete
and to lower local airfares.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 56 AIRPORT INFORMATION

Evansville Municipal Airport (Evansville Regional Airport) was originated and financed by a $190,000 Evansville city bond issued in 1928. The bond provided for the purchase of 260 acres of land along U.S. Highway 41 and funded the airpor t's initial development. Airport construction between the years 1928-1929 included a small terminal, weather bureau, hangar, transformer building with a light beacon, two 100 foot x 1,200 foot asphalt runways, boundary lights, grading, and drainage work. On October 1928, Interstate Ai rlines established Evansville as a stop for their Chicago-Atlanta and St. Louis-Louisville routes. Capital Air Corporation also initiated daily passenger service at Evansville Municipal

Airport in 1928. In 1942, war leases at Evansville Municipal Airport began with Republic Aviation in May and the U.S. Government in August. During World War II, the airport was an operat ions base for ferrying aircraft detachments. In September 1942, Republic Aviation completed the first Thunderbolt (P-47) aircraft. Some 6,075
Thunderbolt aircraft we re manufactured in Evansville by Republic and delivered throughout the country and to overseas
battlefront.

The past eighty-one years at Evansville Regional Airport has provided Tri-State residents with a local airport that provides convenience and qualit y services. Today, Evansville Regional Airport is an important component in the nation’s aviation industry that offers more than 15 flights a day to destinations around the country. With a focu s on innovation and customer service, Evansville Regional Airport will continue to provide servic es that meet the business and non-business air traveler needs and be an effective economic engine and job producing catalyst for the community. 

### Aerial Photo of Evansville Regional Airpor tEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 57 COMMUNITY PROFILE

Evansville is the third-largest city in the U.S. state of Indiana and the largest city in Southern Indiana. The Evansville Regional Airport service is home to almost 557,000 people, who all live within a one hour drive of the Airport. The city is the county seat of Vanderburgh County and the regional hub for the Illinois-Indiana-Kentucky Tri-State Area. Settled in 1812, the city is situated on a gentle
horseshoe bend on the Ohio River and often referred to as "River City." One of the most popular attractions in the region is Casino Aztar, the first riverboat casino
in the state of Indiana. Evansville is also home to both the University of Evansville and the University of
Southern Indiana.

What’s New in Evansville

The broad economic base of the region has helped to build an economy, which is known for its stability, diversity, and vitality. In 2004, Evansville was named an "All-America City" by the National Civic League and in 2008, it was voted one of the best cities in the country by the readers of Kiplinger. Evansville enters the 21st Century as a center for advanced manufacturing, warehousing and distribution, reta il trade, health care, finance, and business services. The city is becoming known for its growing number of corp orate headquarters and regional offices, with new in vestment from headquartered companies such as American General Finance, Atlas Van Lines, Shoe Carniv al, Mead-Johnson Nutritionals, and the Vectren Corporation.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 58 o Construction has begun on a new downtown multi-use arena, which will seat 12,000 for concerts and 11,000 for sporting events. The $127 million project is being funded through bonds and a hotel tax however, it will not use local tax sources for construction or operation. Construction is scheduled to begin by the summer of 2009 and the arena is slated to open in late 2011, helping to bring major concerts and sporting events to the community, and drawin g thousands of visitors to the area each year. The arena will also be home to the University of Evansville basketball team.

o The Long-awaited I-69 construction begins connecting Evansville. Attracting businesses that would bring jobs to Southw estern Indiana is a strong rationale for building Interstate 69. That is what some of the highway's supporters trumpeted at an I-69 groundbreaking ceremony. Others cited improvements in traffic safety and a decrease in travel times from having a
direct link between Evansville and Indianapolis. "It's going to make Evansville part of Indiana now instead of part of Kentucky. I talk to companies from St. Louis or from Cincinnati or Louisville (Ky.), and they hesitate to build in this area because of the expense of transporting their materials and their product to and from this

area.”Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 59 Evansville Economic Overview

Evansville is the regional center for a large trad e area in Indiana, Kentucky, and Illinois. The broad economic base of the region has helped to build an economy which is known for its stability, diversity, and vitality. Major industri es today include manufacturing, warehousing and distribution, retailing, health care, and finance and business services. In 2007 the metropolitan area was ranked 88th in the nation in terms of growth and economic impact. Corporate headquarters include Accuride, Atlas Van Lines, Berry Plastics, Mead Johnson, Old National Bank, Shoe Carnival, and Vectren. The city is also home to American General Finance, a division of AIG. Major manufacturing operations in and around the city include AK Steel in Rockport, Alcoa in Newburgh, Toyota in Princeton, and Wh irlpool Corporation in Evansville. The city's economy was expanded by Casino Aztar's entert ainment facility in 1995. The main complex consists of a 2,700 passenger riverboat casino, a 250-room hotel, a 1,660 vehicle parking garage, and pavilion housing pre-boarding facilities, re tail shops, restaurants, and lounge area. An adjacent entertainment district features a 100-r oom boutique hotel and a dditional re staurants.

While Money Magazine reports the annual average family purchasing power for a family in Topeka in 2008 was $70,100, Evansville offers a much lower cost of living than most other cities of equal or greater size. In the same report, Money reports the national average cost of a home in 2006 was $260,000, while the average home in Evansville sold for just $99,000. Thus, the annual “family income” of $49,600 in Evansville goes
much further in southwest Indian a than it would in most other comparable cities.

The City’s location, near the geographic center of the US, makes it the perfect location for almost any industry. Evansville’s economy is home to a number of large manufacturing facilities of major corporations, such asToyota, Whirlpool, ALCOA, AK Steel, GE Plastics, and BristolMyers Squibb, all of which produce significant business
travel.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 60 Higher Education in the Evansville Area

The city is home to two major universities, the University of Evansville and the University of Southern Indiana (USI). The Indiana University Sch ool of Medicine also has a presence in the city with the Evansville Center for Medical Education on the campus of USI. Other campuses in the city include Ivy Tech Community College, ITT Tech, Harrison College, and Oakland City University's School of Adult and Extended Learning. The main campus of Oakland City University is located just north of the city in Oakland City, Indiana. The Evansville Area is Home to Two Major Universities and Four Colleges and Technical Schools, With Current Enrollment Topping 13,000 StudentsEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 61 University of Evansville
The University of Evansville (UE) is a small, private university with approximately 3,050 students located in Evansville, Indiana. Founded in 1854 as Moores Hill College, it is located near the interchange of the Lloyd Expressway and U.S. Route 41. It is affiliated with the United Methodist Church. The University features liberal arts and sciences degrees, most with strong cooperative learning opportunities both on and off campus. In the 2008-2009 Academic school years, the University of Evansville captured a title in the Concrete Canoe over perennial winners, The University of Wi sconsin-Madison. The winning canoe, named Sauske, will compete at the national
convention in Alabama. The American Society of Civil Engineers at UE also claimed top honors at the same conference competition. The ASCE chapter at UE has been increasing their placing in their region since 2004, steadily increasing in the ranks despite hard competition from renowned engineeringschools like Purdue and University of WisconsinMadison. UE is a Division I NCAA athletic institution, and it has an overseas campus in Grantham, England.

University of Southern Indiana
The University of Southern Indiana (USI) is a public university in Evansville, Indiana. This publicly funded institution is rapidly growing and is the fastest growing comprehensive state university in Indiana. Current enrollment is 10,516. The Un iversity boasts a modern 300-acre suburban campus situated within wooded rolling hills. In October, 2006, the University completed a master plan that provides the framework to double the size of the school and support a campus of over 20,000 students. A new building for the School of Business, opened in 1990, was named the Orr Center in honor of Governor Robert Orr, an Evansville native. Since then, four other large buildings have been built for the Liberal Arts, Nurs ing, and Education divisions, as well as a large fitness center for students and faculty. The nu mber of classrooms has more than doubled sinceEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 62 the campus was first opened, but the University is still planning for continued growth. Construction is complete on the David L. Rice Library, which opened in the fall semester of 2006. The building is five stories and features computer access, study tables/rooms, and copy machines located on each floor. With the gr owth of extracurricular organizations, the administration chose to convert the old library building into an extension of the University Center and is connected by an elevated walkway. A new Business and Engineering Center is being built along with several other construc tion and renovation projects.

Evansville Tourism

Whatever your age or your definition of fun is, you are sure to have a great time while you are a guest in Evansville thanks to our exciting, eclectic mix of attractions. Take a spin with Lady Luck at Casino Aztar. Take a stroll along our lovely Riverfront. Take a step back in time at the Reitz Home Museum or Angel Mounds State Historic Site. From fine arts to go karts, from golf links to skatin g rinks, and from shopping malls to dance halls.

New this year, the Mesker Park Zoo & Botanic Garden is pleased to present AMAZONIA, Forest of Riches
, the largest and most spectacular exhibit to open in the Zoo’s 80 year history. As you journey through AMAZONIA, you will encounter dozens of rainforest residents from high in the canopy to the forest floor below. Tropical trees and palms soar to the 45-foot tall roof and create a breathtaking tropical setting. Mo nkeys and beautiful birds welcome you to their treetop homes. A waterfall roars and a suspension bridge beckons. Evidence of researchers are apparent through the clipboards (educational signag e) and the research station (classroom with interactive activities) they have left behind. Tapirs and other odd creatures greet you around each bend in the trail. Be on the lookout for the elusive and majestic jaguar! AMAZONIA will have a strong conservation message throughout.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 63 Performing Arts

The Victory Theatre is a vintage 1,950-seat venue that is home to the Evansville Philharmonic Orchestra. Each year, the orches tra presents a seven-concert classics series, four double pops performances, and special event concerts, as well as numerous educational and outreach performances. The theater also hosts local ballet and modern dance companies, theater companies, and touring productions.

A wide variety of concerts, plays, and other special events are held at the 2,500-seat auditorium at The Centre downtown. Outdoor concerts and special events are held at the 8,500-seat Mesker Amphitheatre on the city's west side. Larger concerts, sporting events, and special events are held at the 12,500-seat Roberts Municipal Stadium on the city's east side.

The New Harmony Theatre is a professional theatre produced by the University of Southern Indiana and operating under an agreement with the Actors Equity Association.

Evansville Civic Theatre is Southern Indiana's longest running community theater, dating from the 1920s when the community theater movement swept across the country. From its humble beginnings at the old Central High School audito rium, Bosse High School, the Rose Room of the McCurdy Hotel, the Elks Ballroom, and the Ev ansville Museum of Arts and Sciences.

Annual festivals

The West Side Nut Club Fall Festival is a street fair held in the area west of downtown Evansville. It
is held on the first full week of October and draw s nearly 150,000 people. The main attraction of the festival is the food, with offerings of standard s like elephant ears and corn dogs to the more unusual, such as chocolate-covered crickets, br ain sandwiches, and alligator stew. Paul Harvey once remarked that only Mardi Gras in New Orleans is larger than the Fall Festival. The historic Reitz Home Museum plays host to the Evansville Freedom Festival each July. The United States Navy's Blue Angels have been an added attracti on in recent years along with the Canadian
Forces Snowbirds. On the last weekend of Au gust, the popular Frog Follies takes place, when over 4,000 street rods converge on the Vanderbu rgh County 4-H fairgrounds north of the city.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 64 Museums

Angel Mounds State Historic Site is nationally re cognized as one of the best-preserved prehistoric Native American sites in the United States. From 1100 to 1450 A. D., a town near this site was home to people of the Middle Missi ssippian culture. Several thousand people lived in this town protected by a stockade made of wattle and daub. Because Angel Mounds was a chiefdom (the home of the chief), it was the re gional center of a large community.

The Evansville Museum of Arts, History and Scienc e is home to one of southern Indiana's most established and significant cultural centers. It ho lds the Koch Planetarium, the oldest in Indiana. Also on the campus is the Evansville Museum Transportation Center, which features transportation in southern In diana from the latter part of the Nineteenth Century through the mid-Twentieth Century.

The Reitz Home Museum is Evansville's only Victorian House Museum. It is noted as one of the country's finest examples of Second French Empire architecture. It was placed on the Nati onal Register of Hi storic Places in
1973.
In October 2005, the USS LST 325 moored in Evansville and turned into a museum (USS LST Ship Memorial) in recognition of the city 's war effort. During World War II, Evansville produced 167 LSTs (and 35 other craft), making it the largest inland producer of LSTs in the nation. The USS LST 325 is the last navigable tank landing ship in operation.

The Children's Museum of Evansville opened it s doors to the public in September 2006. The museum is the result of two years of planning and constructed in the historic Central Library downtown. The Art Deco building is listed on the National Register of Historic Places. The museum offers visitors three floors of interactive exhibits and galleries.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 65 Sports

Evansville offers modern sports facilities for both soccer and ice skating events. The Goebel Soccer Complex is a $3.4 million project that opened in the spring of 2004 on 70 acres (280,000 m2) of land and features nine Olympic-size irrigated Bermuda gr ass fields and one Olympic-size AstroPlay turf field. Additionally, the EVSC Double Cola Fields provides twin soccer fields and stadium seating for high school regular season and postseason matches. Swonder Ice Arena is a $12.5 million double-rink facility that opened in the fall of 2002 and features a fitness center, a skate park, and party rooms.
The Evansville Otters minor league professional baseball team has played at historic Bosse Field in the Frontier League since 1995. Bosse Field opened in 1915 and is the third oldest baseball stadium still in use in the United States and was the principal filming location for the movie A League of Their Own. The Evansville IceMen minor league professional ice hockey team has played at Swonder Ice Arena in the All American Hockey League since 2008.

The City of Evansville also plans to build a major so ftball complex. It would include an eight-plex of fields, allowing large tournaments to come to the area – and driving a significant amount of travel. The project could be st arted by the beginning of 2011.Evansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 66 COMPARISON TO OTHER CO MMUNITIES IN REGION

Itinerary Average Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Mileage Yield 08-10 09-10
1 Alpena, MI $275.51 $321.80 $277.10 1,177 23.55¢ 0.3% -13.9% 2 La Crosse, WI $242.16 $295.12 $276.25 1,143 24.16¢ 6.8% -6.4% 3 Sault Sainte Marie, MI $260.26 $294.90 $271.17 1,292 20.99¢ 2.1% -8.0% 4 Pellston, MI $260.66 $309.38 $258.46 1,163 22.22¢ -0.4% -16.5% 5 Kalamazoo, MI $219.77 $242.13 $239.05 1,019 23.45¢ 4.3% -1.3% 6 Traverse City, MI $224.89 $252.67 $227.19 1,126 20.17¢ 0.5% -10.1% 7 Evansville, IN $208.94 $233.55 $225.25 1,019 22.10¢ 3.8% -3.6% 8 Hancock, MI $220.95 $246.89 $222.83 1,338 16.66¢ 0.4% -9.7% 9 Lansing, MI $180.83 $197.79 $216.77 990 21.90¢ 9.5% 9.6% 10 Champaign, IL $198.92 $218.69 $209.22 1,118 18.71¢ 2.6% -4.3% 11 Midland/Saginaw , MI $206.37 $221.26 $209.08 1,122 18.63¢ 0.7% -5.5% 12 Eau Claire, WI $213.84 $252.73 $204.01 1,131 18.04¢ -2.3% -19.3% 13 Muskegon, MI $184.88 $221.69 $203.82 1,108 18.40¢ 5.0% -8.1% 14 Iron Mountain, MI $170.53 $231.83 $202.63 1,230 16.47¢ 9.0% -12.6% 15 Paducah, KY $211.56 $233.54 $199.41 941 21.19¢ -2.9% -14.6% 16 Marquette, MI $199.38 $228.40 $198.71 1,206 16.48¢ -0.2% -13.0% 17 Rhinelander, WI $208.58 $232.13 $198.32 1,269 15.63¢ -2.5% -14.6% 18 Escanaba, MI $189.97 $235.56 $192.59 1,224 15.74¢ 0.7% -18.2% 19 Lexington, KY $201.46 $205.99 $185.99 985 18.88¢ -3.9% -9.7% 20 Grand Rapids, MI $192.07 $211.51 $183.84 1,139 16.14¢ -2.2% -13.1% 21 Springfield, IL $190.81 $196.25 $178.00 1,111 16.02¢ -3.4% -9.3% 22 Fort Wayne, IN $200.93 $204.07 $176.56 1,061 16.64¢ -6.3% -13.5% 23 Cincinnati, OH $242.62 $243.82 $174.49 933 18.70¢ -15.2% -28.4% 24 Green Bay, WI $189.95 $204.82 $169.59 1,081 15.69¢ -5.5% -17.2% 25 Appleton, WI $203.78 $205.86 $166.40 1,115 14.92¢ -9.6% -19.2% 26 Wausau, WI $208.48 $213.47 $166.24 1,157 14.37¢ -10.7% -22.1% 27 Madison, WI $194.39 $197.17 $161.87 1,098 14.74¢ -8.7% -17.9% 28 South Bend, IN $164.89 $170.29 $160.09 1,059 15.11¢ -1.5% -6.0% 29 Chicago O'Hare, IL $161.84 $174.18 $159.58 1,016 15.70¢ -0.7% -8.4% 30 Louisville, KY $153.73 $163.91 $158.45 948 16.72¢ 1.5% -3.3% 31 Peoria, IL $168.34 $174.87 $158.03 1,172 13.48¢ -3.1% -9.6% 32 Detroit, MI $150.09 $160.73 $157.45 1,057 14.89¢ 2.4% -2.0% 33 Cleveland, OH $153.89 $164.74 $154.60 938 16.48¢ 0.2% -6.2% 34 Moline, IL $155.83 $165.95 $154.01 1,082 14.24¢ -0.6% -7.2% 35 Toledo, OH $165.32 $172.76 $153.84 920 16.72¢ -3.5% -11.0% 36 Dayton, OH $154.75 $155.90 $141.30 1,011 13.98¢ -4.4% -9.4% 37 Indianapolis, IN $148.85 $149.74 $140.73 1,032 13.64¢ -2.8% -6.0% 38 Bloomington/Normal, IL $142.37 $146.78 $137.65 1,017 13.53¢ -1.7% -6.2% 39 Columbus, OH $139.16 $152.35 $137.41 978 14.05¢ -0.6% -9.8% 40 Flint, MI $135.95 $143.08 $129.78 1,059 12.26¢ -2.3% -9.3% 41 Ironw ood, MI $142.47 $135.16 $128.96 411 31.34¢ -4.9% -4.6% 42 Marion, IL $110.67 $136.37 $125.42 475 26.40¢ 6.5% -8.0% 43 Akron/Canton, OH $134.03 $133.88 $125.29 987 12.70¢ -3.3% -6.4% 44 Chicago Midw ay, IL $111.88 $131.59 $122.87 922 13.33¢ 4.8% -6.6% 45 Milw aukee, WI $159.10 $154.79 $121.43 1,032 11.77¢ -12.6% -21.6% 46 Quincy, IL $111.42 $115.16 $117.63 399 29.51¢ 2.7% 2.1% 47 Manistee, MI $124.22 $107.85 $99.78 460 21.68¢ -10.4% -7.5% 48 Rockford, IL $116.60 $105.83 $94.93 1,217 7.80¢ -9.8% -10.3% 49 Youngstow n, OH $78.33 $72.42 $61.85 863 7.17¢ -11.1% -14.6% 50 Ow ensboro, KY $159.30 $56.60 $57.07 684 8.34¢ -40.1% 0.8%
Average Regional Fare $155.96 $166.08 $150.63 1,007 14.96¢ -1.7% -9.3% Avg. Ann. Change Rank 

### FIGURE 23: Top 50 Great Lakes Region Airports Ranked by Average Domestic Fare Year Ended First Quarter 2010; Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 67 Itinerary Average Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Mileage Fare 08-10 09-10

1 Ironw ood, MI 20.61¢ 27.69¢ 31.34¢ 411 $128.96 23.3% 13.2% 2 Quincy, IL 30.50¢ 33.33¢ 29.51¢ 399 $117.63 -1.6% -11.5% 3 Marion, IL 33.94¢ 27.70¢ 26.40¢ 475 $125.42 -11.8% -4.7% 4 La Crosse, WI 20.77¢ 24.69¢ 24.16¢ 1,143 $276.25 7.9% -2.1% 5 Alpena, MI 25.14¢ 28.51¢ 23.55¢ 1,177 $277.10 -3.2% -17.4% 6 Kalamazoo, MI 21.33¢ 23.12¢ 23.45¢ 1,019 $239.05 4.9% 1.4% 7 Pellston, MI 25.09¢ 28.04¢ 22.22¢ 1,163 $258.46 -5.9% -20.8% 8 Evansville, IN 21.38¢ 23.14¢ 22.10¢ 1,019 $225.25 1.7% -4.5% 9 Lansing, MI 17.08¢ 19.86¢ 21.90¢ 990 $216.77 13.2% 10.3% 10 Manistee, MI 18.40¢ 24.71¢ 21.68¢ 460 $99.78 8.5% -12.3% 11 Paducah, KY 23.86¢ 25.82¢ 21.19¢ 941 $199.41 -5.8% -17.9% 12 Sault Sainte Marie, MI 21.28¢ 23.26¢ 20.99¢ 1,292 $271.17 -0.7% -9.8% 13 Traverse City, MI 20.07¢ 22.39¢ 20.17¢ 1,126 $227.19 0.2% -9.9% 14 Lexington, KY 20.78¢ 21.13¢ 18.88¢ 985 $185.99 -4.7% -10.6% 15 Champaign, IL 18.21¢ 20.12¢ 18.71¢ 1,118 $209.22 1.4% -7.0% 16 Cincinnati, OH 26.97¢ 26.97¢ 18.70¢ 933 $174.49 -16.7% -30.7% 17 Midland/Saginaw , MI 19.42¢ 20.35¢ 18.63¢ 1,122 $209.08 -2.1% -8.5% 18 Muskegon, MI 19.99¢ 21.87¢ 18.40¢ 1,108 $203.82 -4.1% -15.9% 19 Eau Claire, WI 19.06¢ 22.00¢ 18.04¢ 1,131 $204.01 -2.7% -18.0% 20 Louisville, KY 16.77¢ 17.30¢ 16.72¢ 948 $158.45 -0.1% -3.4% 21 Toledo, OH 17.97¢ 18.96¢ 16.72¢ 920 $153.84 -3.5% -11.8% 22 Hancock, MI 17.36¢ 18.90¢ 16.66¢ 1,338 $222.83 -2.0% -11.9% 23 Fort Wayne, IN 18.77¢ 19.16¢ 16.64¢ 1,061 $176.56 -5.8% -13.2% 24 Marquette, MI 18.31¢ 20.33¢ 16.48¢ 1,206 $198.71 -5.1% -18.9% 25 Cleveland, OH 16.38¢ 17.69¢ 16.48¢ 938 $154.60 0.3% -6.8% 26 Iron Mountain, MI 18.23¢ 19.59¢ 16.47¢ 1,230 $202.63 -4.9% -15.9% 27 Grand Rapids, MI 17.49¢ 18.67¢ 16.14¢ 1,139 $183.84 -3.9% -13.6% 28 Springfield, IL 18.04¢ 18.68¢ 16.02¢ 1,111 $178.00 -5.8% -14.2% 29 Escanaba, MI 18.60¢ 20.37¢ 15.74¢ 1,224 $192.59 -8.0% -22.7% 30 Chicago O'Hare, IL 16.06¢ 17.19¢ 15.70¢ 1,016 $159.58 -1.1% -8.7% 31 Green Bay, WI 16.87¢ 18.57¢ 15.69¢ 1,081 $169.59 -3.6% -15.5% 32 Rhinelander, WI 17.94¢ 18.68¢ 15.63¢ 1,269 $198.32 -6.7% -16.3% 33 South Bend, IN 15.65¢ 16.13¢ 15.11¢ 1,059 $160.09 -1.7% -6.3% 34 Appleton, WI 18.90¢ 18.47¢ 14.92¢ 1,115 $166.40 -11.2% -19.2% 35 Detroit, MI 14.87¢ 15.53¢ 14.89¢ 1,057 $157.45 0.1% -4.1% 36 Madison, WI 17.98¢ 17.95¢ 14.74¢ 1,098 $161.87 -9.5% -17.9% 37 Wausau, WI 18.49¢ 19.10¢ 14.37¢ 1,157 $166.24 -11.8% -24.8% 38 Moline, IL 14.59¢ 15.25¢ 14.24¢ 1,082 $154.01 -1.2% -6.6% 39 Columbus, OH 14.37¢ 15.44¢ 14.05¢ 978 $137.41 -1.1% -9.0% 40 Dayton, OH 16.26¢ 15.75¢ 13.98¢ 1,011 $141.30 -7.3% -11.2% 41 Indianapolis, IN 14.58¢ 14.46¢ 13.64¢ 1,032 $140.73 -3.3% -5.7% 42 Bloomington/Normal, IL 14.12¢ 14.63¢ 13.53¢ 1,017 $137.65 -2.1% -7.5% 43 Peoria, IL 14.56¢ 15.13¢ 13.48¢ 1,172 $158.03 -3.8% -10.9% 44 Chicago Midw ay, IL 12.24¢ 14.22¢ 13.33¢ 922 $122.87 4.4% -6.3% 45 Akron/Canton, OH 13.69¢ 13.65¢ 12.70¢ 987 $125.29 -3.7% -7.0% 46 Flint, MI 13.13¢ 13.66¢ 12.26¢ 1,059 $129.78 -3.4% -10.2% 47 Milw aukee, WI 15.39¢ 14.73¢ 11.77¢ 1,032 $121.43 -12.5% -20.1% 48 Ow ensboro, KY 12.87¢ 8.02¢ 8.34¢ 684 $57.07 -19.5% 4.0% 49 Rockford, IL 9.63¢ 8.78¢ 7.80¢ 1,217 $94.93 -10.0% -11.2% 50 Youngstow n, OH 9.10¢ 8.42¢ 7.17¢ 863 $61.85 -11.2% -14.8%
Average Regional Yield 15.75¢ 16.55¢ 14.96¢ 1,007 $150.63 -2.5% -9.6% Avg. Ann. Change Rank 

### FIGURE 24: Top 50 Great Lakes Region Airports Ranked by Average Domestic Yield Year Ended First Quarter 2010; Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 68 Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Flights / Day YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 389,530 368,296 353,598 968.8 28.8% -4.7% -4.0% 2 Detroit, MI 205,452 201,594 195,120 534.6 15.9% -2.5% -3.2% 3 Chicago Midw ay, IL 103,594 90,893 90,507 248.0 7.4% -6.5% -0.4% 4 Cincinnati, OH 141,950 120,918 90,079 246.8 7.3% -20.3% -25.5% 5 Cleveland, OH 102,260 98,806 88,091 241.3 7.2% -7.2% -10.8% 6 Milw aukee, WI 75,210 65,677 75,390 206.5 6.1% 0.1% 14.8% 7 Indianapolis, IN 61,769 60,902 55,664 152.5 4.5% -5.1% -8.6% 8 Columbus, OH 60,816 51,881 49,695 136.2 4.1% -9.6% -4.2% 9 Louisville, KY 34,763 31,030 29,349 80.4 2.4% -8.1% -5.4% 10 Dayton, OH 27,230 26,060 22,450 61.5 1.8% -9.2% -13.9% 11 Grand Rapids, MI 19,060 17,874 17,934 49.1 1.5% -3.0% 0.3% 12 Madison, WI 16,945 16,368 14,784 40.5 1.2% -6.6% -9.7% 13 Lexington, KY 14,054 13,875 12,056 33.0 1.0% -7.4% -13.1% 14 Akron/Canton, OH 12,275 11,705 11,552 31.6 0.9% -3.0% -1.3% 15 Moline, IL 10,939 10,828 10,199 27.9 0.8% -3.4% -5.8% 16 Flint, MI 10,458 9,579 9,649 26.4 0.8% -3.9% 0.7% 17 Green Bay, WI 9,958 8,754 8,039 22.0 0.7% -10.2% -8.2% 18 South Bend, IN 9,834 9,456 7,669 21.0 0.6% -11.7% -18.9% 19 Fort Wayne, IN 9,439 8,745 6,978 19.1 0.6% -14.0% -20.2% 20 Appleton, WI 8,844 7,673 6,799 18.6 0.6% -12.3% -11.4% 21 Peoria, IL 6,910 6,794 6,235 17.1 0.5% -5.0% -8.2% 22 Wausau, WI 5,287 5,573 5,319 14.6 0.4% 0.3% -4.6% 23 Evansville, IN 7,558 7,182 5,245 14.4 0.4% -16.7% -27.0% 24 Bloomington/Normal, IL 5,874 5,330 4,826 13.2 0.4% -9.4% -9.5% 25 Traverse City, MI 4,417 4,627 4,695 12.9 0.4% 3.1% 1.5% 26 Kalamazoo, MI 5,715 5,051 4,461 12.2 0.4% -11.6% -11.7% 27 Midland/Saginaw , MI 3,919 3,935 4,108 11.3 0.3% 2.4% 4.4% 28 Lansing, MI 4,991 4,148 3,826 10.5 0.3% -12.4% -7.8% 29 La Crosse, WI 3,358 3,595 3,591 9.8 0.3% 3.4% -0.1% 30 Toledo, OH 5,829 4,039 3,038 8.3 0.2% -27.8% -24.8% 31 Champaign, IL 3,517 3,294 2,974 8.1 0.2% -8.0% -9.7% 32 Marquette, MI 3,293 2,621 2,322 6.4 0.2% -16.0% -11.4% 33 Rhinelander, WI 2,883 2,240 2,252 6.2 0.2% -11.6% 0.5% 34 Springfield, IL 2,162 2,140 2,068 5.7 0.2% -2.2% -3.4% 35 Eau Claire, WI 1,867 1,865 1,459 4.0 0.1% -11.6% -21.8% 36 Marion, IL 675 1,007 1,258 3.4 0.1% 36.5% 24.9% 37 Quincy, IL 872 1,036 1,233 3.4 0.1% 18.9% 19.0% 38 Escanaba, MI 971 881 1,073 2.9 0.1% 5.1% 21.8% 39 Iron Mountain, MI 1,115 864 1,057 2.9 0.1% -2.6% 22.3% 40 Alpena, MI 1,078 1,033 1,056 2.9 0.1% -1.0% 2.2% 41 Hancock, MI 1,005 1,034 1,009 2.8 0.1% 0.2% -2.4% 42 Pellston, MI 1,187 1,241 998 2.7 0.1% -8.3% -19.6% 43 Muskegon, MI 2,296 1,462 841 2.3 0.1% -39.5% -42.5% 44 Paducah, KY 1,071 1,055 831 2.3 0.1% -11.9% -21.2% 45 Decatur, IL 1,010 789 821 2.2 0.1% -9.8% 4.1% 46 Rockford, IL 1,594 977 787 2.2 0.1% -29.7% -19.4% 47 Sault Sainte Marie, MI 704 700 719 2.0 0.1% 1.1% 2.7% 48 Manistee, MI 634 534 660 1.8 0.1% 2.0% 23.6% 49 Ironw ood, MI 665 526 628 1.7 0.1% -2.8% 19.4% 50 Ow ensboro, KY 52 12 572 1.6 0.0% 231.7% 4666.7%

Total of Above 1,406,889 1,306,499 1,225, 564 3,357.7 99.9% -6.7% -6.2%
Total Flights Completed 1,409,098 1,308,407 1,226,398 3,360.0 100.0% -6.7% -6.3% Rank Avg. Ann. Change 

### FIGURE 25: Top 50 Great Lakes Region Airports Ranked by Domestic Flights Completed Year Ended First Quarter 2010; Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 69 Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Seats / Day YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 38,535,761 36,179,004 34,070,667 93,344 32.5% -6.0% -5.8% 2 Detroit, MI 20,250,096 19,147,722 17,720,596 48,550 16.9% -6.5% -7.5% 3 Chicago Midw ay, IL 13,458,441 11,813,673 11,766,193 32,236 11.2% -6.5% -0.4% 4 Cleveland, OH 7,232,204 7,023,862 6,165,028 16,890 5.9% -7.7% -12.2% 5 Cincinnati, OH 9,477,859 8,107,643 6,062,210 16,609 5.8% -20.0% -25.2% 6 Milw aukee, WI 5,228,194 5,125,901 6,027,418 16,513 5.8% 7.4% 17.6% 7 Indianapolis, IN 5,451,926 5,434,678 4,868,275 13,338 4.6% -5.5% -10.4% 8 Columbus, OH 5,228,298 4,375,283 4,151,920 11,375 4.0% -10.9% -5.1% 9 Louisville, KY 2,670,853 2,446,607 2,221,159 6,085 2.1% -8.8% -9.2% 10 Dayton, OH 1,870,559 1,877,113 1,610,197 4,411 1.5% -7.2% -14.2% 11 Grand Rapids, MI 1,277,097 1,263,015 1,200,067 3,288 1.1% -3.1% -5.0% 12 Madison, WI 1,073,328 1,041,958 944,156 2,587 0.9% -6.2% -9.4% 13 Akron/Canton, OH 951,758 942,172 937,615 2,569 0.9% -0.7% -0.5% 14 Flint, MI 760,811 699,524 649,930 1,781 0.6% -7.6% -7.1% 15 Moline, IL 654,223 645,278 640,916 1,756 0.6% -1.0% -0.7% 16 Lexington, KY 707,818 726,624 626,455 1,716 0.6% -5.9% -13.8% 17 Green Bay, WI 642,348 597,585 492,621 1,350 0.5% -12.4% -17.6% 18 South Bend, IN 495,039 483,454 419,135 1,148 0.4% -8.0% -13.3% 19 Fort Wayne, IN 457,175 437,064 364,361 998 0.3% -10.7% -16.6% 20 Appleton, WI 394,102 387,301 364,162 998 0.3% -3.9% -6.0% 21 Peoria, IL 389,625 375,068 348,137 954 0.3% -5.5% -7.2% 22 Bloomington/Normal, IL 376,694 346,666 346,431 949 0.3% -4.1% -0.1% 23 Traverse City, MI 269,905 275,325 263,591 722 0.3% -1.2% -4.3% 24 Evansville, IN 335,152 323,862 257,368 705 0.2% -12.4% -20.5% 25 Midland/Saginaw , MI 283,861 287,258 243,241 666 0.2% -7.4% -15.3% 26 Wausau, WI 212,561 247,398 237,180 650 0.2% 5.6% -4.1% 27 Kalamazoo, MI 291,518 273,047 225,507 618 0.2% -12.0% -17.4% 28 Lansing, MI 351,610 292,494 216,730 594 0.2% -21.5% -25.9% 29 La Crosse, WI 191,542 193,740 185,398 508 0.2% -1.6% -4.3% 30 Toledo, OH 253,273 195,786 158,782 435 0.2% -20.8% -18.9% 31 Champaign, IL 169,337 153,615 139,780 383 0.1% -9.1% -9.0% 32 Rockford, IL 161,878 126,563 120,093 329 0.1% -13.9% -5.1% 33 Springfield, IL 106,920 106,536 108,455 297 0.1% 0.7% 1.8% 34 Marquette, MI 120,434 102,367 92,762 254 0.1% -12.2% -9.4% 35 Rhinelander, WI 79,385 67,223 63,863 175 0.1% -10.3% -5.0% 36 Eau Claire, WI 66,126 67,015 53,444 146 0.1% -10.1% -20.3% 37 Pellston, MI 47,900 46,077 40,494 111 0.0% -8.1% -12.1% 38 Hancock, MI 39,450 42,202 39,343 108 0.0% -0.1% -6.8% 39 Escanaba, MI 18,479 29,826 36,482 100 0.0% 40.5% 22.3% 40 Alpena, MI 36,652 35,122 35,968 99 0.0% -0.9% 2.4% 41 Iron Mountain, MI 21,185 29,205 35,938 98 0.0% 30.2% 23.1% 42 Muskegon, MI 59,612 55,817 30,178 83 0.0% -28.8% -45.9% 43 Paducah, KY 36,721 36,050 29,882 82 0.0% -9.8% -17.1% 44 Sault Sainte Marie, MI 23,936 23,800 24,446 67 0.0% 1.1% 2.7% 45 Youngstow n, OH 27,117 25,223 22,045 60 0.0% -9.8% -12.6% 46 Ow ensboro, KY 986 1,800 18,402 50 0.0% 332.0% 922.3% 47 Marion, IL 14,687 20,608 18,181 50 0.0% 11.3% -11.8% 48 Quincy, IL 16,473 19,864 16,297 45 0.0% -0.5% -18.0% 49 Manistee, MI 12,046 10,146 12,540 34 0.0% 2.0% 23.6% 50 Detroit Willow Run, MI 19,343 14,934 12,138 33 0.0% -20.8% -18.7%

Total of Above 120,852,298 112,580,098 104,736,1 77 286,948 99.9% -6.9% -7.0%

Total Seats Available 120,984,893 112,687,644 104,801,756 287,128 100.0% -6.9% -7.0% Rank Avg. Ann. Change 

### FIGURE 26: Top 50 Great Lakes Region Airports Ranked by Domestic Seats Available Year Ended First Quarter 2010; Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 70 Outbound Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 Paxs / Day YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 30,464,106 27,705,230 26,486,070 72,565 33.1% -6.8% -4.4% 2 Detroit, MI 15,775,620 14,761,499 13,881,432 38,031 17.3% -6.2% -6.0% 3 Chicago Midw ay, IL 9,613,880 8,415,658 8,950,346 24,521 11.2% -3.5% 6.4% 4 Cincinnati, OH 7,175,351 5,980,438 4,796,531 13,141 6.0% -18.2% -19.8% 5 Cleveland, OH 5,418,772 5,051,045 4,606,166 12,620 5.8% -7.8% -8.8% 6 Milw aukee, WI 3,812,972 3,692,574 4,487,721 12,295 5.6% 8.5% 21.5% 7 Indianapolis, IN 4,135,106 4,038,009 3,725,918 10,208 4.7% -5.1% -7.7% 8 Columbus, OH 3,835,291 3,220,252 3,133,412 8,585 3.9% -9.6% -2.7% 9 Louisville, KY 1,985,473 1,814,405 1,653,088 4,529 2.1% -8.8% -8.9% 10 Dayton, OH 1,419,698 1,431,827 1,193,968 3,271 1.5% -8.3% -16.6% 11 Grand Rapids, MI 991,225 878,236 911,368 2,497 1.1% -4.1% 3.8% 12 Madison, WI 776,823 734,641 755,809 2,071 0.9% -1.4% 2.9% 13 Akron/Canton, OH 702,108 729,924 731,423 2,004 0.9% 2.1% 0.2% 14 Flint, MI 548,058 496,443 498,171 1,365 0.6% -4.7% 0.3% 15 Moline, IL 484,765 470,556 467,286 1,280 0.6% -1.8% -0.7% 16 Lexington, KY 515,341 487,034 456,341 1,250 0.6% -5.9% -6.3% 17 Green Bay, WI 453,765 381,831 350,252 960 0.4% -12.1% -8.3% 18 South Bend, IN 381,916 346,640 311,690 854 0.4% -9.7% -10.1% 19 Appleton, WI 284,667 260,626 270,210 740 0.3% -2.6% 3.7% 20 Fort Wayne, IN 298,210 270,676 262,603 719 0.3% -6.2% -3.0% 21 Bloomington/Normal, IL 266,822 255,238 246,251 675 0.3% -3.9% -3.5% 22 Peoria, IL 284,710 267,086 245,175 672 0.3% -7.2% -8.2% 23 Traverse City, MI 199,989 178,299 173,104 474 0.2% -7.0% -2.9% 24 Evansville, IN 214,996 181,394 155,807 427 0.2% -14.9% -14.1% 25 Wausau, WI 156,746 150,264 150,826 413 0.2% -1.9% 0.4% 26 Midland/Saginaw , MI 184,285 154,907 144,604 396 0.2% -11.4% -6.7% 27 Kalamazoo, MI 179,726 161,982 134,979 370 0.2% -13.3% -16.7% 28 Lansing, MI 247,697 196,047 133,245 365 0.2% -26.7% -32.0% 29 La Crosse, WI 123,184 107,785 106,412 292 0.1% -7.1% -1.3% 30 Rockford, IL 124,181 103,583 97,300 267 0.1% -11.5% -6.1% 31 Toledo, OH 163,716 116,497 94,101 258 0.1% -24.2% -19.2% 32 Champaign, IL 113,734 94,117 87,505 240 0.1% -12.3% -7.0% 33 Springfield, IL 63,374 54,258 62,549 171 0.1% -0.7% 15.3% 34 Marquette, MI 66,960 54,222 52,896 145 0.1% -11.1% -2.4% 35 Rhinelander, WI 38,990 27,096 26,984 74 0.0% -16.8% -0.4% 36 Eau Claire, WI 33,486 28,297 24,362 67 0.0% -14.7% -13.9% 37 Hancock, MI 26,866 25,099 23,685 65 0.0% -6.1% -5.6% 38 Pellston, MI 29,327 25,288 22,846 63 0.0% -11.7% -9.7% 39 Paducah, KY 24,130 20,505 18,476 51 0.0% -12.5% -9.9% 40 Youngstow n, OH 17,425 17,033 17,008 47 0.0% -1.2% -0.1% 41 Alpena, MI 20,429 16,174 16,989 47 0.0% -8.8% 5.0% 42 Muskegon, MI 35,616 28,777 14,501 40 0.0% -36.2% -49.6% 43 Sault Sainte Marie, MI 14,392 12,635 13,371 37 0.0% -3.6% 5.8% 44 Ow ensboro, KY 212 1,594 13,066 36 0.0% 685.1% 719.7% 45 Escanaba, MI 10,456 8,012 12,490 34 0.0% 9.3% 55.9% 46 Iron Mountain, MI 10,341 5,463 10,076 28 0.0% -1.3% 84.4% 47 Columbus Rickenbacker, OH 3,484 6,022 4,751 13 0.0% 16.8% -21.1% 48 Marion, IL 4,490 3,227 4,449 12 0.0% -0.5% 37.9% 49 Manistee, MI 4,420 1,846 2,941 8 0.0% -18.4% 59.3% 50 Quincy, IL 1,910 2,259 2,876 8 0.0% 22.7% 27.3%

Total of Above 91,739,241 83,472,550 80,043,430 219,297 100.0% -6.6% -4.1%

Total Onboard Passengers 91,801,309 83,512,828 80,062, 378 219,349 100.0% -6.6% -4.1% Avg. Ann. Change Rank 

### FIGURE 27: Top 50 Great Lakes Region Airports Ranked by Domestic Onboard Passengers Year Ended First Quarter 2010; Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 71 PDEW Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 YE 1Q 10 YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL 14,459,240 12,957,880 12,050,030 33,014 25.4% -8.7% -7.0% 2 Detroit, MI 8,039,100 7,055,850 6,506,560 17,826 13.7% -10.0% -7.8% 3 Chicago Midw ay, IL 6,414,060 5,457,120 5,591,860 15,320 11.8% -6.6% 2.5% 4 Indianapolis, IN 3,623,940 3,499,090 3,275,640 8,974 6.9% -4.9% -6.4% 5 Cleveland, OH 3,966,160 3,449,810 3,239,570 8,876 6.8% -9.6% -6.1% 6 Milw aukee, WI 2,796,680 2,729,320 3,088,160 8,461 6.5% 5.1% 13.1% 7 Columbus, OH 3,401,050 2,880,630 2,800,910 7,674 5.9% -9.3% -2.8% 8 Cincinnati, OH 2,050,210 1,733,160 2,093,880 5,737 4.4% 1.1% 20.8% 9 Louisville, KY 1,770,390 1,607,350 1,454,900 3,986 3.1% -9.3% -9.5% 10 Dayton, OH 1,314,320 1,332,190 1,101,200 3,017 2.3% -8.5% -17.3% 11 Grand Rapids, MI 860,790 756,950 793,650 2,174 1.7% -4.0% 4.8% 12 Akron/Canton, OH 654,100 689,050 687,670 1,884 1.4% 2.5% -0.2% 13 Madison, WI 658,370 637,670 664,770 1,821 1.4% 0.5% 4.2% 14 Flint, MI 525,720 480,270 472,650 1,295 1.0% -5.2% -1.6% 15 Moline, IL 440,870 428,800 420,900 1,153 0.9% -2.3% -1.8% 16 Lexington, KY 435,470 411,540 388,590 1,065 0.8% -5.5% -5.6% 17 Green Bay, WI 412,690 337,010 306,040 838 0.6% -13.9% -9.2% 18 South Bend, IN 360,270 313,560 282,380 774 0.6% -11.5% -9.9% 19 Appleton, WI 258,220 235,760 243,730 668 0.5% -2.8% 3.4% 20 Fort Wayne, IN 270,560 237,510 232,700 638 0.5% -7.3% -2.0% 21 Bloomington/Normal, IL 253,120 247,120 230,320 631 0.5% -4.6% -6.8% 22 Peoria, IL 251,800 233,330 218,780 599 0.5% -6.8% -6.2% 23 Traverse City, MI 180,690 159,540 154,870 424 0.3% -7.4% -2.9% 24 Wausau, WI 140,380 133,410 136,310 373 0.3% -1.5% 2.2% 25 Evansville, IN 193,740 154,040 134,040 367 0.3% -16.8% -13.0% 26 Midland/Saginaw , MI 152,270 126,610 110,990 304 0.2% -14.6% -12.3% 27 Lansing, MI 218,500 171,830 107,390 294 0.2% -29.9% -37.5% 28 Kalamazoo, MI 162,270 133,980 99,270 272 0.2% -21.8% -25.9% 29 La Crosse, WI 109,720 94,030 89,820 246 0.2% -9.5% -4.5% 30 Toledo, OH 152,420 100,300 77,690 213 0.2% -28.6% -22.5% 31 Rockford, IL 109,680 78,260 76,010 208 0.2% -16.8% -2.9% 32 Champaign, IL 93,530 75,850 70,160 192 0.1% -13.4% -7.5% 33 Springfield, IL 57,560 48,820 50,460 138 0.1% -6.4% 3.4% 34 Marquette, MI 61,140 48,980 47,680 131 0.1% -11.7% -2.7% 35 Rhinelander, WI 33,300 23,770 24,410 67 0.1% -14.4% 2.7% 36 Hancock, MI 25,390 23,300 22,180 61 0.0% -6.5% -4.8% 37 Pellston, MI 27,410 22,700 21,290 58 0.0% -11.9% -6.2% 38 Paducah, KY 21,890 19,530 17,440 48 0.0% -10.7% -10.7% 39 Muskegon, MI 30,470 22,140 13,900 38 0.0% -32.5% -37.2% 40 Youngstow n, OH 10,440 11,130 13,040 36 0.0% 11.8% 17.2% 41 Ow ensboro, KY 140 1,610 12,890 35 0.0% 859.5% 700.6% 42 Sault Sainte Marie, MI 13,470 11,580 12,440 34 0.0% -3.9% 7.4% 43 Eau Claire, WI 19,410 15,110 11,100 30 0.0% -24.4% -26.5% 44 Alpena, MI 7,880 6,720 6,740 18 0.0% -7.5% 0.3% 45 Escanaba, MI 8,770 4,260 6,570 18 0.0% -13.4% 54.2% 46 Iron Mountain, MI 6,810 2,920 4,930 14 0.0% -14.9% 68.8% 47 Marion, IL 3,460 2,340 3,200 9 0.0% -3.8% 36.8% 48 Manistee, MI 3,830 1,820 2,860 8 0.0% -13.6% 57.1% 49 Quincy, IL 1,540 1,960 2,710 7 0.0% 32.7% 38.3% 50 Ironw ood, MI 3,600 1,070 1,030 3 0.0% -46.5% -3.7%
Top 50 Airports 55,066,840 49,208,580 47,476,310 130,072 100.0% -7.1% -3.5%

Total Regional Passengers 55,094,300 49,226,850 47,477, 010 130,074 100.0% -7.2% -3.6% Avg. Ann. Change Rank 

### FIGURE 28: Top 50 Great Lakes Region Airports Ranked by Domestic O&D Passengers Year Ended First Quarter 2010; Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 72 RDEW Percent of Airport YE 1Q 08 YE 1Q 09 YE 1Q 10 YE 1Q 10 YE 1Q 10 08-10 09-10
1 Chicago O'Hare, IL $2,196,844 $2,101,917 $1,794,811 $4,917 26.6% -9.6% -14.6% 2 Detroit, MI $1,142,087 $1,070,810 $966,010 $2,647 14.3% -8.0% -9.8% 3 Chicago Midw ay, IL $681,093 $673,374 $645,490 $1,768 9.5% -2.6% -4.1% 4 Cleveland, OH $581,648 $540,024 $476,682 $1,306 7.1% -9.5% -11.7% 5 Indianapolis, IN $517,998 $504,172 $443,881 $1,216 6.6% -7.4% -12.0% 6 Columbus, OH $454,516 $419,149 $368,325 $1,009 5.4% -10.0% -12.1% 7 Milw aukee, WI $422,987 $403,924 $362,290 $993 5.4% -7.5% -10.3% 8 Cincinnati, OH $447,329 $385,088 $342,676 $939 5.1% -12.5% -11.0% 9 Louisville, KY $258,600 $249,986 $218,254 $598 3.2% -8.1% -12.7% 10 Dayton, OH $195,645 $201,736 $151,144 $414 2.2% -12.1% -25.1% 11 Grand Rapids, MI $153,834 $147,725 $135,263 $371 2.0% -6.2% -8.4% 12 Madison, WI $118,812 $117,212 $101,840 $279 1.5% -7.4% -13.1% 13 Akron/Canton, OH $84,305 $90,261 $84,289 $231 1.2% 0.0% -6.6% 14 Lexington, KY $81,615 $79,672 $67,538 $185 1.0% -9.0% -15.2% 15 Moline, IL $65,805 $68,607 $62,336 $171 0.9% -2.7% -9.1% 16 Flint, MI $68,348 $66,577 $59,519 $163 0.9% -6.7% -10.6% 17 Green Bay, WI $73,512 $64,622 $48,734 $134 0.7% -18.6% -24.6% 18 South Bend, IN $56,986 $51,045 $43,036 $118 0.6% -13.1% -15.7% 19 Fort Wayne, IN $51,119 $45,537 $38,563 $106 0.6% -13.1% -15.3% 20 Appleton, WI $49,310 $45,574 $38,517 $106 0.6% -11.6% -15.5% 21 Peoria, IL $40,527 $38,742 $32,746 $90 0.5% -10.1% -15.5% 22 Bloomington/Normal, IL $34,456 $35,352 $30,920 $85 0.5% -5.3% -12.5% 23 Traverse City, MI $36,334 $35,159 $30,596 $84 0.5% -8.2% -13.0% 24 Evansville, IN $38,115 $33,814 $28,175 $77 0.4% -14.0% -16.7% 25 La Crosse, WI $24,848 $25,843 $23,147 $63 0.3% -3.5% -10.4% 26 Lansing, MI $37,177 $32,105 $21,389 $59 0.3% -24.1% -33.4% 27 Kalamazoo, MI $32,679 $29,707 $21,380 $59 0.3% -19.1% -28.0% 28 Wausau, WI $27,435 $26,620 $21,145 $58 0.3% -12.2% -20.6% 29 Midland/Saginaw , MI $28,385 $25,327 $20,707 $57 0.3% -14.6% -18.2% 30 Champaign, IL $17,304 $15,188 $13,342 $37 0.2% -12.2% -12.2% 31 Toledo, OH $24,046 $16,689 $11,453 $31 0.2% -31.0% -31.4% 32 Marquette, MI $11,363 $10,386 $8,807 $24 0.1% -12.0% -15.2% 33 Springfield, IL $10,546 $9,035 $8,500 $23 0.1% -10.2% -5.9% 34 Rockford, IL $12,478 $8,222 $7,170 $20 0.1% -24.2% -12.8% 35 Pellston, MI $6,415 $6,042 $4,776 $13 0.1% -13.7% -21.0% 36 Hancock, MI $5,051 $5,244 $4,463 $12 0.1% -6.0% -14.9% 37 Rhinelander, WI $6,437 $5,077 $4,450 $12 0.1% -16.9% -12.3% 38 Paducah, KY $4,460 $4,398 $3,350 $9 0.0% -13.3% -23.8% 39 Sault Sainte Marie, MI $3,324 $3,267 $3,170 $9 0.0% -2.3% -3.0% 40 Muskegon, MI $5,295 $4,574 $2,599 $7 0.0% -29.9% -43.2% 41 Eau Claire, WI $3,738 $3,361 $2,046 $6 0.0% -26.0% -39.1% 42 Alpena, MI $1,978 $1,998 $1,646 $5 0.0% -8.8% -17.6% 43 Escanaba, MI $1,603 $935 $1,200 $3 0.0% -13.5% 28.3% 44 Iron Mountain, MI $1,090 $644 $944 $3 0.0% -6.9% 46.5% 45 Youngstow n, OH $817 $804 $802 $2 0.0% -0.9% -0.2% 46 Ow ensboro, KY $22 $91 $734 $2 0.0% 473.9% 705.9% 47 Marion, IL $383 $319 $400 $1 0.0% 2.2% 25.4% 48 Quincy, IL $172 $226 $319 $1 0.0% 36.3% 41.2% 49 Manistee, MI $461 $196 $285 $1 0.0% -21.3% 45.4% 50 Ironw ood, MI $503 $142 $133 $0 0.0% -48.6% -6.4%
Top 50 Airports $8,119,832 $7,706,519 $6,759,994 $9,260 100.0% -8.8% -12.3%
Total Regional Revenue $8,122,502 $7,708,453 $6,760,069 $9,260 100.0% -8.8% -12.3% Avg. Ann. Change Rank 

### FIGURE 29: Top 50 Great Lakes Region Airports Ranked by Domestic O&D Revenue Year Ended First Quarter 2010; Source: US DOT Table DB1AEvansville Regional Airport – Small Community Air Service Development Grant – August 2010 

## 73 CONCLUSIONS

The Evansville Regional Airport must have assistance to recruit an additional competing carrier in order to grow available seats, curb leakage, and lower fares. Evansville travelers are faced with some of the highest average fares in the country – 50% higher, or $75 each way higher, than the Great Lakes regional average. Average fares in the Evansville market have jumped by 31% since 2005. Today, Evansville boasts the highest average airfare in the Great Lakes region of all airports serving catchment areas of 500,000 people or more.

The Evansville Regional Airport has just completed a wide -ranging leakage study and “true market” analysis. This study shows the lack of available seats, and the high local airfares, cause
almost 45% of Evansville catchment area residents to fly from other airports in the region – with most using Louisville, even though it’s over two hours away by car. The average fare at Louisville is 30% below the average fare at Evansville. The average fare at Indianapolis is 38% below the average fare at Evansville.

The situation will get worse this fall. Delta Air Lines
has announced it will leave the EvansvilleMemphis market. The service had been flown twice daily. This loss of seats with exacerbate the fare pressure in the Evansville market – as Evansville continues to be one of the airports hardest hit by that Delta-Northwest merger.

Evansville’s passengers continued to be suppresse d, with total available seats down by a quarter in just the last two years. Evansville used to be served by 24 departures per day. In the summer of 2010 that number is down to 15 departures per day. Total passengers have been suppressed by 37% since 2005.

The only real chance at fare relief and passenger growth in Ev ansville is for an additional airline to offer competing service. The Airport believes there is sufficient passenger traffic and revenue that would flow over AirTran’s Baltimore/Washin gton hub to make the service profitable. The Evansville Regional must develop a risk mitiga tion package to ensure AirTran can enter the market without major up-front inve stments. This risk mitigation package will include marketing support, revenue guarantees, and start-up co st offsets, backed by the Department of Transportation. 

## “Evansville boasts the highest average airfare in the Great Lakes region of all airports serving catchment areas of 500,000 people or more.”