BEFORE THE OFFICE OF THE SECRETARY

UNITED STATES DEPARTMENT OF TRANSPORTATION

Community Proposal 

Montgomery, Alabama

SMALL COMMUNITY AIR SERVICE DOCKET OST- 2010-0124

DEVELOPMENT PROGRAM

Official Sponsor: Montgomery Regional Airport

DUNS #155618283

Congressional District #: 2

Overview of the Montgomery Challenge

Montgomery Regional Airport (MGM) serves a vibrant economic base that, in contrast to much 

of the nation over the past two years, has experienced strong industrial sector investments and 

employment growth by companies from not only the United States, but also Asia and Europe. 

For example, Montgomery is one of the leading auto-manufacturing centers in the world. The 

Hyundai facility has the capability of building 300,000 vehicles annually, and employs more than 

2,700. Including indirect employment (first and second-tier suppliers) the Hyundai investment 

has resulted in an estimated 25,000 jobs.

To support these jobs, adequate and affordable air access is essential. Unfortunately, airlines 

have cut capacity and fares have skyrocketed. 

 Capacity in the market has dropped by over 15% as airlines have reduced fleets and 

flying since 2004.

 Airfares at MGM are, on average, a minimum of 30% higher than at the two main 

alternative airports at Atlanta and Birmingham.

 Passenger traffic has declined by more than 30% since the beginning of the decade in 

spite of the strong growth in the local economy. 

The airport believes that implementation of an aggressive air service development and 

marketing program can effectively address the challenge and reverse the above trends. This 

will, in turn, lead to the recruitment of additional service thereby ensuring that the airport can 

continue to play a vital role in the economic development of the region. Therefore, Montgomery 

Regional Airport respectfully submits this proposal for a grant under the Small Community Air 

Service Development (SCASD) Program to fund the air service development and marketing 

mechanisms necessary to implement such a program.
US DOT Docket OST 2010-0124

Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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An Air Service Development & Marketing Plan Focused on Results

The SCASD grant funds requested in this proposal will allow Montgomery Regional Airport to 

accomplish the following three-step process to revitalizing air service:

 Market Study: The airport will conduct a comprehensive market study to ascertain the 

specific improvements in air service needed to meet the requirements of the 

Montgomery area economy within the real world context of the structure of the airline 

industry. This study will also incorporate specific recommendations for recruiting.

 Experienced Consultant: The airport seeks to hire an experienced consultant to 

execute the recommendations of the above study.

 Marketing Program: The efforts and activities of the Manager of Air Service 

Development will be supported with an aggressive marketing and promotional plan that 

includes specific support for new and expanded air service that may be recruited.

Montgomery is applying for a SCASD grant in the amount of $400,000 to be matched with 

$100,000 in airport dollars and $50,000 of “in-kind” contributions for total project funding of 

$550,000 over two years.

Project Sponsor

The Airport believes that this request fills both the intent and the spirit of Congress in 

implementing this program. The community has a pressing air service deficiency that is 

threatening to slow the strong economic growth in the Montgomery region. Moreover, the 

careful consideration given this and all applications under the Small Community Air Service 

Development Program by the Department is greatly appreciated and Montgomery Regional 

Airport looks forward to a favorable decision.

Please direct any correspondence regarding this proposal to the representative of the official 

project sponsor:

Mr. Phil Perry

Executive Director

Montgomery Airport Authority

4445 Selma Highway

Montgomery, Alabama 36108

Telephone: (334) 281-5040
US DOT Docket OST 2010-0124

Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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Proposal Contents

1. Montgomery Market Review................................................................................................ 4

MGM Air Service – Capacity Down 15% Over Past Five Years .............................................. 4

MGM Service Levels Are Low Compared to Neighboring Airports .......................................... 5

Montgomery Experiences Higher Fares.................................................................................. 6

Enplanement Trend ................................................................................................................ 7

Past Air Service Development Activities.................................................................................. 8

The Grant Will Help Save Jobs and Create New Ones ........................................................... 9

2. Proposed Air Service Development & Marketing Plan .....................................................10

Market Study .........................................................................................................................10

Staff Addition: Manager of Air Service Development................ Error! Bookmark not defined.

Advertising & Promotional Activities.......................................................................................11

Project Timeline.....................................................................................................................13

Project Budget .......................................................................................................................14

3. Grant Administration Plan..................................................................................................15

Grant Summary & Allocation of Funds ...................................................................................15

Term of Project ......................................................................................................................15

Community Partner Participation ...........................................................................................15

Plan to Measure and Report Project Effectiveness ................................................................15

Prior Grant Award ..................................................................................................................16
US DOT Docket OST 2010-0124

Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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1. Montgomery Market Review

The air service market area of Montgomery Regional Airport comprises all or parts of 13 

counties, with a population base of approximately 574,145 people. This population base has an 

average household income of approximately $49,438 and average per capita income of 

approximately $20,130.

Air Service Market Area

Montgomery Regional Airport

MGM Air Service Market Area



To BHM

To ATL

Montgomery’s position as a commercial and industrial center is strengthened by its location at 

the junction of two major Interstate highway arteries: I-65 and I-85. From an air service 

perspective, however, these highways facilitate traffic leakage to Birmingham and Atlanta, 

where lower fares, more flights, and a greater choice of carriers and nonstop destinations are 

offered. The grant requested in this proposal is intended to address this challenge and 

substantially reduce the resultant leakage.

MGM Air Service – Capacity Down 15% Over Past Five Years

Montgomery Regional Airport is currently accessed from the rest of the air transportation system 

via three airline systems providing service to four connecting hubs; Delta to Memphis and 

Atlanta, American to Dallas/Ft. Worth, and US Airways to Charlotte. 
US DOT Docket OST 2010-0124

Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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Current Air Service

Montgomery Regional Airport – August 2010

SOURCE: Innovata, LLC via

Since 2005, Montgomery has experienced the loss of 9.7% of average monthly departures and 

14.9% of its capacity. During this period the airport was able to recruit service on American 

Eagle to Dallas/Ft. Worth, but these gains were more than offset by the loss of Continental 

service to Houston and Delta service to Cincinnati.

MGM Service Levels Are Low Compared to Neighboring Airports

Current service levels at Montgomery Regional Airport pale in comparison to those available at 

both ATL and BHM. This is illustrated on the table on the next page and is primary driver of 

significant levels of traffic leakage.

Carrier Dest Aircraft August 2005 August 2010 Change % Change August 2005 August 2010 Change % Change

American DFW ER4 0 89 89 100.0% 0 4,450 4,450 100.0%

Continental IAH ER3 62 0 (62) -100.0% 2,294 0 (2,294) -100.0%

Delta ATL AT7 155 0 (155) -100.0% 10,230 0 (10,230) -100.0%

CRJ 62 237 175 282.3% 3,100 11,850 8,750 282.3%

CVG CRJ 62 0 (62) -100.0% 3,100 0 (3,100) -100.0%

MEM CRJ 93 89 (4) -4.3% 4,650 4,450 (200) -4.3%

US Airways CLT CRJ 0 78 78 100.0% 0 3,900 3,900 100.0%

ERJ 112 0 (112) -100.0% 5,600 0 (5,600) -100.0%

Total 546 493 (53) -9.7% 28,974 24,650 (4,324) -14.9%

Departures Seats
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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Service Level Comparison

MGM v Neighboring Airports

 

As it relates specifically to ATL, the higher levels of service are only one problem contributing to 

traffic leakage. The other factor is congestion issues at Atlanta, which result in high numbers of 

flight delays, cancellations, and misconnections. Given the uncertainty surrounding connections, 

many travelers to and from Montgomery now elect to begin or end their trip at ATL, driving the 

relatively short 2 hours and 30 minutes rather than take a connecting flight.

Montgomery Experiences Higher Fares

This loss of service over the past five years has compounded an already significant disparity of 

fares compared to other airports in the region. MGM suffers strong leakage to both Birmingham 

and Atlanta due to high fares, primarily the result of low-fare carriers at the latter two airports 

providing needed pricing discipline.

As the table on the next page illustrates, for the year ending March 31, 2010, consumers at 

Montgomery Regional Airport paid on average 36% more (+ $97.37) than travelers at ATL and 

30% more (+ $80.38) than travelers at BHM. In effect, Montgomery area consumers are paying 

the price for less competition.

Through the implementation of a comprehensive air service development and marketing 

program, the airport believes the current variance in fares with ATL and BHM can be reduced. It 

is important to note, however, that the airport harbors no misconceptions that it will be able to 

attain full fare parity with these airports. This is a simple fact of market size and specific airline 

strategies. Nonetheless, with the assistance of the SCASD funds requested in this proposal, the 

airport can communicate the importance of supporting air service at Montgomery Regional 

Airport, work with airlines to reduce fare differentials, establish a focused program to recruit 

additional service, and implement an aggressive advertising and promotional plan.

MGM ATL BHM

Airline Brands 3 17 6

Nonstop Destinations 5 235 25

Avg Daily Departures 16 1,323 69

Avg Daily Seats 822 152,991 6,106

Avg Seats per Departure 51.4 115.6 88.5

% Capacity by LCC 0.0% 17.5% 50.7%
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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Comparison of Average OW Gross Fare

MGM v Neighboring Airports: YE March 31, 2010

SOURCE:

Enplanement Trend

In contrast to the positive trends in the regional economy served by Montgomery Regional 

Airport, enplanement trends have not kept pace with the economic growth in the region. During 

calendar year 2000, the airport enplaned nearly 239,000 passengers. By 2009, that number had 

declined by 32.5% to less than 162,000. This equates to approximately 78,000 fewer 

passengers using Montgomery Regional Airport today than at the beginning of the decade. 

Rank Market Psgr

Avg OW 

Gross Fare Psgr

Avg OW 

Gross Fare

% Variance 

w ith MGM Psgr.

Avg OW 

Gross Fare

% Variance 

w ith MGM

1 LGA 7,092 $244.71 1,339,221 $161.30 -34.1% 78,425 $224.56 -8.2%

2 DFW 17,325 $190.19 867,976 $166.14 -12.6% 79,929 $157.30 -17.3%

3 FLL 2,680 $224.81 771,413 $106.29 -52.7% 56,330 $171.41 -23.8%

4 DCA 13,823 $330.73 782,310 $159.53 -51.8% 33,875 $215.79 -34.8%

5 LAX 10,575 $255.81 738,621 $230.73 -9.8% 59,179 $242.42 -5.2%

6 BOS 5,433 $296.46 744,480 $169.74 -42.7% 27,931 $229.14 -22.7%

7 EWR 4,445 $235.59 733,628 $176.45 -25.1% 25,822 $231.23 -1.9%

8 PHL 5,886 $291.77 705,466 $157.80 -45.9% 45,490 $206.58 -29.2%

9 ORD 6,518 $256.40 674,289 $152.80 -40.4% 45,888 $187.84 -26.7%

10 BWI 9,335 $236.45 551,057 $141.48 -40.2% 132,641 $160.99 -31.9%

11 MCO 6,113 $218.51 557,604 $143.69 -34.2% 120,478 $154.29 -29.4%

12 LAS 6,713 $266.75 517,376 $201.28 -24.5% 88,163 $188.19 -29.5%

13 DEN 5,947 $281.81 528,939 $170.76 -39.4% 45,216 $232.59 -17.5%

14 TPA 2,612 $285.82 449,432 $146.71 -48.7% 94,914 $155.35 -45.6%

15 DTW 8,419 $261.60 459,758 $153.68 -41.3% 54,934 $232.76 -11.0%

16 SFO 3,929 $280.66 490,009 $246.44 -12.2% 27,937 $246.19 -12.3%

17 MDW 2,103 $213.20 433,128 $119.34 -44.0% 81,133 $167.49 -21.4%

18 MIA 3,400 $199.60 500,677 $123.59 -38.1% 9,713 $258.01 29.3%

19 MSP 3,557 $303.40 448,561 $168.16 -44.6% 24,229 $255.37 -15.8%

20 IAH 2,861 $242.86 340,808 $180.33 -25.7% 72,338 $187.09 -23.0%

21 PHX 4,254 $244.74 348,692 $192.96 -21.2% 54,782 $192.60 -21.3%

22 RDU 5,889 $189.07 353,263 $126.14 -33.3% 32,257 $166.07 -12.2%

23 SEA 6,382 $303.09 343,193 $248.98 -17.9% 34,439 $219.62 -27.5%

24 IAD 4,455 $329.43 344,733 $157.09 -52.3% 20,392 $206.04 -37.5%

25 MSY 548 $162.81 262,326 $146.06 -10.3% 68,724 $103.56 -36.4%

Total 319,775 $272.75 24,310,561 $175.38 -35.7% 2,619,125 $192.37 -29.5%

Montgomery Atlanta Birmingham
US DOT Docket OST 2010-0124

Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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Negative Enplanement Trend at MGM

CY 2000- CY 2009

238,885

211,730

215,522

206,341

213,175

204,896

186,574 180,333

169,528

161,272

150,000

175,000

200,000

225,000

250,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Enplanements

The drivers behind the decline in enplanements are clear: reduced airline capacity and high 

fares.

Past Air Service Development Activities

The Department should know that the airport and the community have worked very hard to 

retain existing service and recruit new carriers to Montgomery Regional Airport. In the very 

tough environment of the past five years, however, this has been an extreme challenge and one 

that unfortunately with the limited resources available has yielded little results. The SCASD 

grant funds are intended to rectify this situation.

 Northwest Airlines service to Detroit – which in 2004/2005 accessed a strong auto-related 

industry – was very close to being recruited, thanks to the grant that the Department 

awarded the community. However, the difficulties that carrier encountered leading up to and 

after its Chapter 11 filing in 2005 shortstopped the Airport’s recruitment efforts.

 In 2009, the airport was successful in recruiting American Eagle service to Dallas/Ft. Worth. 

This helped fill the void left by the departure of Continental Express in 2007.

 The airport maintains an ongoing dialogue with both incumbent and potential new entrant 

carriers through regular meetings and participation in industry conferences.
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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The airport and community are continually reviewing the needs and opportunities represented 

by the growth in the auto industry. This proposal to conduct a comprehensive market analysis, 

initiate a highly focused air service development effort, and an aggressive marketing program is 

just but one outcome of that cooperation. 

The Grant Will Help Save Jobs and Create New Ones

Montgomery has seen enplanements fall during a period of unprecedented local economic 

growth. The reasons are clear: 

 Service Reductions: Capacity has been cut by 15% in the last five years, in spite of the 

local economy growing strongly. Montgomery is an underserved market.

 Fare levels: Compared to Birmingham and Atlanta (the two major sources of leakage 

from MGM), consumers in Montgomery paid an average 30% premium for the 

convenience of using their local airport.

These market conditions threaten the economic prosperity that the Montgomery region has 

enjoyed in recent years. To illustrate this point, Hyundai Motors – a major employer in the region 

- has advised repeatedly that these issues are becoming problematic in regard to that 

company’s future expansion plans in Alabama. Any limits on expansion by Hyundai will have a 

rolling negative impact throughout the regional economy, particularly among suppliers that have 

established operations in support of Hyundai.

Clearly, any improvements in air service that can be achieved will help preserve and increase 

employment in Montgomery, Alabama, the Southeast and arguably throughout the US industrial 

sector. The Montgomery Airport Authority would respectfully submit that the Small Community 

Air Service Development Grant Program was designed to address this type of situation. It is 

further noted that the grant will result in minimal risk to the scarce funds allocated by Congress 

to this program and favorable consideration of this proposal is appreciated.
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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2. Proposed Air Service Development & Marketing Plan

As outlined in the introduction to this grant proposal, Montgomery Regional Airport is requesting 

$400,000 in SCASD grant funds, to be matched with $200,000 in local and airport funds, to 

accomplish the a three-step plan aimed at air service:

 A Market Study to ascertain the specific improvements in air service needed to meet the 

requirements of the area economy 

 Hire an Air Service Consultant to assist the Manager of Air Service Development in 

executing the recommendations of the above study.

 An aggressive marketing and promotional plan that includes specific support for new and 

expanded service that is recruited.

Each of these components is outlined below.

Market Study

The Montgomery Regional Airport is proposing to engage the services of a professional air 

service consulting firm to assist in development a comprehensive market study that defines the 

specific service needs of the airport’s market area and identifies likely alternatives and 

outcomes that can be pursued to address identified deficiencies. This study will, at a minimum, 

include:

 Future Air Service Needs. The industrial growth in the Montgomery Regional Airport 

market area will have specific service needs in the future, including international access. 

The study will analyze these on a 20-year horizon, and matrix the needs by type, 

timeframe, and reasonableness of being met.

 Airline Industry Shifts. The analysis will review the effects of potential strategy 

changes among airlines operating in the southeast region, including the potential for 

additional consolidation beyond that completed by Delta and Northwest, and announced 

by Continental and United. The analysis will also incorporate potential shifts in the 

business models of LCCs, including the likelihood of serving smaller markets now that 

most large airports have low-fares.

 Fleet Shifts. The retirement of turboprops and the increasingly challenged economics of 

50-seat regional jets are of significant concern to Montgomery Regional Airport, with the 

latter comprising virtually of the airport’s current capacity. With no “next generation” 50-

seater on the horizon, the airport needs to have a clear understanding of the economics 

of future capacity if it is to be able to effectively compete for limited airline resources.

 Alternative Service Options. The community cannot overlook the potential of secondtier air taxi operations, or hybrid taxi/scheduled service, operators to supplement 

scheduled airlines. While the very light jet (VLJ) revolution appears to have been a non-
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

11

event, entrepreneurs are developing unique business models which could play a role in 

meeting the future air service air service needs at MGM.

 Alternative Connecting Hubs. As outlined in the previous section, MGM currently has 

nonstop to four connecting hubs which function as the portals to the rest of the world for 

the community. With respect to hubs there are two questions: First, what is the future of 

each hub Montgomery Regional Airport is dependent on, within contexts of both the 

current and potential future airline industry that includes consolidation and fleet shifts? 

Second, what is the possibility of developing alternative gateways, such as DEN or 

ORD?

This study is expected to take approximately 180 days to complete, and will incorporate 

extensive input from civic and business organizations, as well as specific users of Montgomery 

Regional Airport. The findings and recommendations in the study will be the basis for air service 

development activities that assure the Montgomery area continues to have adequate global 

connectivity.

Based on preliminary discussions with consultants, this component of the project has an 

estimated cost of approximately $50,000. 

Training and Consultant to assist the Manager of Air Service Development

The Montgomery Regional Airport is proposing to hire an Air Service Consultant to help assist 

the present Air Service Development staff in implementing the recommendations related to air 

service recruitment from the above study. 

This component of the project has an estimated cost of $100,000 based on the assumption of a 

$75,000 over two years. Benefits and payroll taxes will be contributed by the airport from its 

existing budgets.

Advertising & Promotional Activities

The final component of Montgomery Regional Airport’s plan incorporates aggressive advertising 

and promotional strategies. This program will have two primary audiences: the general public 

and local businesses, as outlined below:

 General Public: Advertising campaign developed around the theme of the convenient travel 

experience at Montgomery Regional Airport. This will include short drive time to the airport, 

lower parking rates than ATL or BHM, short check-in and security lines, uncongested 

terminal with complete amenities, and global connectivity.

 Business & Industry: Supplementing the message targeting the general public will be data 

and statistics on the important contribution that air service at Montgomery Regional Airport 

makes to the economic vitality of the region and the necessity to support local air service so 

as to ensure current service levels are maintained and new service is recruited.
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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While specific advertising components and tag lines will be developed with the assistance of an 

advertising agency, and subject to approval of the Department, airport staff have prepared the 

following preliminary campaign components for each target group.

General Public Campaign 

To reach the general public, the following media outlets are planned:

 Billboards along Interstates 65 and 85, the primarily route for traffic leakage to Atlanta and 

Birmingham;

 Print advertisements in local newspapers;

 Radio advertisements, with particular emphasis on stations and programs that attract 

listeners with demographics indicating a propensity for air travel;

1

 The use of television advertising is planned to visually illustrate the ease of travel to/from 

Montgomery Regional Airport. Media buys will likely be focused on local newscasts, allowing 

reach to a wide audience with a propensity for air travel; and

 Implementation of a social media marketing program, including Facebook and Twitter.

To extend the reach of marketing dollars, airport staff intend to work with incumbent airlines to 

for “in-kind” donation of tickets for use in radio and/or television promotions. 

Business Community Outreach Program

The following outlines the elements of the communication plan intended for local business and 

industry:

 Printed promotional pieces on the value of air service at Montgomery Regional Airport, 

including the value of time savings related to flying from MGM relative to ATL or BHM;

 Regular communications on the air service development efforts of the airport; and

 Presentations to civic group and local media (i.e., editorial boards, public affairs programs, 

etc.) 

A total of $400,000 has been earmarked for the advertising and promotional activities 

component of this project over a two-year period, including professional fees associated with 

advertising campaign development, media buys, and production costs.

Of this total amount, $100,000 will be set aside for the specific purpose of advertising new 

service that may be recruited. The airport will utilize this as an air service development 

incentive, providing a two-for-one match to the airline. Depending on commitment from the 

airline, this can result in up to $150,000 being available to promote new service from 

Montgomery Regional Airport. 

 

1 Actual media buys will be determined after consultation with the selected advertising agency and review of Arbitron rating data.
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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Project Timeline

The project contemplated in this proposal is intended, subject to approval of the Department, to 

be two-years in duration. Based on this, and assuming that the Department issuing SCASD 

grant awards near the end of the fourth quarter of 2010, Montgomery Regional Airport proposes 

the timeline as outlined below.

Project Component Approximate Timing

Air Service Market Study

Issuance of RFP – January 2011

Review of Proposals & Award of Contract – February 2011

Completion of Study – February 2011 to June 2011

Presentation of Study Findings & Recommendation to 

Community – July 2011

Hire Air Service Consultant Issuance of RFP - May 2011

Review of Proposals and Award Contract – June 2011

Provide recommendation to Airport Authority and hire for 

consultant – July 2011

Advertising & Promotional 

Campaign

Develop campaign theme in conjunction with advertising 

agency and produce materials – March 2011 to May 2011

General media public campaign – May 2011 to December 

2012

Business community outreach program – June 2011 to 

December 2012

A detailed project timeline will be prepared upon notice of the SCASD grant award and shall be 

submitted to the Department for approval.
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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Project Budget

The Airport has prepared a preliminary breakdown of the intended use of funds to execute the 

proposed project over a two year period. A detaile allocation between SCASD and community 

funds is provided in the next section under “Grant Administration.”

Proposed Project Budget

Montgomery Regional Airport Air Service Development Plan

Project Component Approximate Timing

Air Service Market Study

($50,000)

Professional Fees: $45,000

Expenses: $5,000 (travel, printing, etc.)

Manager of Air Service 

Development

($50,000)

Salary: $50,000 annually ($100,000 total)

Advertising & Promotional 

Campaign

($400,000)

Advertising agency professional fees & production: $30,000

Outdoor (billboards): $50,000

Print advertising: $100,000

Radio: $50,000

Television: $70,000 

SET ASIDE FOR NEW SERVICE: $100,000
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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3. Grant Administration Plan 

Grant Summary & Allocation of Funds

The Montgomery Regional Airport and its community partners are requesting a grant in the 

amount of $400,000 to implement a comprehensive air service development proposal. This will 

be matched with $100,000 of airports funds plus $100,000 in community matching funds for a 

total project budget of $600,000. The proposed allocation of grant and matching funds is as 

follows:

Term of Project

The project outlined in this proposal has a planned term of two years from execution of grant 

agreement with the Department. The Airport agrees that any funds not spent or allocated within 

the term of the grant agreement will be returned to the Department. 

Community Partner Participation

This application is submitted jointly by the Montgomery Regional Airport and the Montgomery 

Chamber of Commerce. The Chamber will be the community organization responsible for the 

coordinating with the airport that grant funds are effectively deployed and results are monitored. 

The community support for this application is broad and encompasses the entire business base 

of the region and are contributing a total of $100,000 in matching funds to supplement the 

airport’s contribution of $100,000

Plan to Measure and Report Project Effectiveness 

As outlined, the overall objectives of this project are to reverse current levels of traffic leakage 

and increase use of available air service at Montgomery Regional Airport. The resultant 

increase in passenger activity will be used to recruit additional service from incumbent carriers, 

as well as new-entrants to the MGM market

To ensure that grant dollars and community matching funds are used in a manner that achieves 

the stated objectives, the Airport will submit a quarterly progress report to the Department.2In 

addition to providing a narrative explanation of the activities, the report will measure the 

effectiveness of the marketing and communications by, at a minimum, the following metrics:

 

2

In addition, the airport will provide the Department with samples of all advertisements and copies of the market study.

SCASD 

Grant % of Total Matching Funds % of Total TOTAL

Market Study $35,000 70% $15,000 30% $50,000

Manager of Air Service Development $100,000 67% $50,000 33% $150,000

Advertising & Promotional $265,000 66% $135,000 34% $400,000

TOTAL $400,000 67% $200,000 33% $600,000

Category
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Grant Application – Montgomery Regional Airport 

Small Community Air Service Development Program

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 Increase in passenger enplanements at MGM, on a year-over-year over basis for each 

period as well as identification of enplanement level trends;

 Changes to load factors on scheduled air service;

 Impact of enplanement activity on concession revenues, including parking, rental cars, and 

other terminal services; and

 Changes to average fare levels in key markets on a year-over-year basis, as well as 

changes in fare levels from ATL and BHM during the same period.

In addition, as traffic capture rates and enplanement levels increase, the Airport will initiate 

communications with incumbent carriers and potential new-entrants with respect to market 

trends. These activities will be summarized in each report and successes in attracting additional 

capacity or new carriers will be highlighted.

Prior Grant Award

Montgomery was honored to have been awarded a Small Community Air Service Grant in 2005. 

The objective of that grant was to support implementation of nonstop service to the Northwest 

Airlines hub at Detroit to better support the Alabama auto industry. At the time, the auto industry 

was still healthy, and the commonalities of business interests between MGM with its Hyundai 

auto plant, and the first and second tier suppliers located in Michigan, Wisconsin, Ohio, Indiana 

and Ontario, represented a vital air travel need. 

Unfortunately, a set of events precluded the effective use of the 2005 grant. At the bottom line, 

ultimately Northwest Airlines found itself in Chapter 11 bankruptcy and therefore in a contraction 

mode. Furthermore, the near-collapse of the US auto industry and its supplier base has much 

reduced the deficiency that the 2005 grant was intended to address.