Proposal of Mississippi EAS Airport Consortium • July 2013

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet, a 

completed standard form SF424 and the full application proposal on www.grants.gov. 

For your preparation convenience, this Summary Information schedule is located at 

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

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL NUMBERING SYSTEM (DUNS)

NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: Tom Williams, Meridian, Mississippi

DUNS Number: 155690262

EIN/Tax ID: 64-0820692

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

1. MERIDIAN, MISSISSIPPI

2. GREENVILLE, MISSISSIPPI

3. HATTIESBURG, MISSISSIPPI

4.____________________________________________________

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY 

PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING SERVICE).

1. Meridian Regional Airport MEI 2. Mid-Delta Regional Airport GLH

3.Hattiesburg-Laurel Regional Airport PIB 4.
Proposal of Mississippi EAS Airport Consortium • July 2013

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A 

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. Meridian MS-03 2. Greenville MS-02

3. Hattiesburg-Laurel MS-04 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

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

Development Program Grant

If previous recipient: Year of grant(s): MEI 2002, GLH 2007

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES) DETAILS ON PAGE 19

PUBLIC PRIVATE

1. Meridian 9 public entities 1. Meridian 6 private entities

2. Greenville 15 public entities 2. Greenville 11 private entities

3. Hattiesburg-Laurel 10 public entities 3. Hattiesburg-Laurel 9 private entities

4. 4.

5. 5.

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Service Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

x
Proposal of Mississippi EAS Airport Consortium • July 2013

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $120,000

2 State cash financial contribution $18,000

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $18,000

3 Total local cash funds (3a + 3b) $18,000

4 TOTAL CASH FUNDING (1+2+3)

In-Kind contribution

5a Airport In-Kind contribution** $0

5b Other In-Kind contribution** $0

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

$0

6 TOTAL PROJECT COST (4+5) $156,000

Note: $6,000 from each of the three cities and $6,000 in matching funds from the state for each of 

the three cities. Each city is envisioned to receive $40,000 in Federal funding. 

J. IN-KIND CONTRIBUTIONS**

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

describe the source(s) of fund(s) and the value ($) of each.
Proposal of Mississippi EAS Airport Consortium • July 2013

K. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

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

Process for review on (date) _____________.

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

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

L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE EXPLANATION)

No Yes (explain) 

_____________________________________________________________________________________________

_______________________________________________________________
Proposal of Mississippi EAS Airport Consortium • July 2013 1

TABLE OF CONTENTS AND LEGAL SPONSOR

Legal Sponsor 1

Airline Letter of Support 2

Introduction 3

Community Locations, Populations and Economy 4 - 5

Current Air Service and Traffic 6 - 9

Air Service Deficiencies and Needs 10 - 12

Air Service Development Efforts and Air Service Marketing 13 - 14

A Strategic Plan to Retain Our Air Service 15 - 18

Public Private Partnerships 19

Previous Grant Awards and Summary 20 - 21

The legal sponsor of this Grant Application is the Meridian Airport Authority. Mr. Tom Williams, 

President of the Authority, will administer this Grant.

Tom Williams

President, Meridian Airport Authority

2811A Airport Blvd South

Meridian, Mississippi 39307

Phone: 601.482.0364

Fax: 601.482.5899

Email: twilliams@meridianairport.com

Other consortium representatives are:

Mr. Draylan Gant, Airport Director, Greenville Mid-Delta Airport

662.334.3121 dgant@greenvillems.org

Mr. Tom Heanue, Executive Director, Hattiesburg-Laurel Regional Airport

601.545.3111 tom.heanue@flypib.com

This document is 25 pages in length, consisting of four pages of Summary Information (cover), a 

one page carrier letter of support and 20 pages of application information.

Section Page Number
Proposal of Mississippi EAS Airport Consortium • July 2013 2

CARRIER LETTER OF SUPPORT
Proposal of Mississippi EAS Airport Consortium • July 2013 3

INTRODUCTION

A consortium of the Mississippi communities of Greenville, Hattiesburg-Laurel and Meridian, 

herein make application for a Small Community Air Service Development (SCASD) Grant. These 

cities are in the Essential Air Service (EAS) program and, accordingly, propose to use modest 

Federal Grant funding, matched by both local non-airport cash and funding from the State of 

Mississippi, to develop and implement an aggressive air service marketing program, designed to 

raise enplanements at all three airports and thus, in the long term, reduce EAS subsidy needs.

For decades, Delta Air Lines, or its predecessor carriers Northwest or Republic or Southern 

Airways, had provided high quality network carrier air service at all three airports. However, on 

July 15, 2011, Delta filed to terminate EAS service at twenty-four airports, including Greenville and 

Hattiesburg. In the summer of 2012, Meridian’s EAS contract came up for renewal and Delta 

chose not to bid to retain that service. Delta made a network strategy decision to exit the EAS 

program and many small communities nationwide. At the same time that Delta has cut its ties 

with much of rural America, it is also eliminating its Memphis hub operation and drastically 

reducing operations at that airport. Unfortunately, these two network strategy decisions have left 

the critically important air service of Greenville, Meridian and Hattiesburg adrift. There are only 

two practical connecting hubs for small cities in Mississippi, the giant Atlanta hub, and Memphis. 

Delta declined to provide a code sharing agreement for Atlanta service to any prospective 

replacement carrier for these three cities, and Memphis is essentially a collapsed former hub to 

which any EAS service would find almost nothing with which to connect.

Silver Airways began independently branded EAS service to Atlanta from these three airports on 

October 1, 2012. The service is provided with well-appointed SF340 aircraft at competitive fares. 

However, for the first nine months of Silver service traffic has collapsed; Greenville down 49%, 

Hattiesburg 57% and Meridian 60%. EAS city transitions from network service to independent 

carrier service are usually painful and this one has been particularly so. The new service needs 

marketing support to regenerate traffic at these three airports. This SCASD proposal calls for DOT 

funding of $40,000 per city ($120,000 total) matched by $6,000 from each city ($18,000) and 

$18,000 from the State of Mississippi. Total marketing funding would equal $156,000 or $52,000 per 

city. This funding would enable an aggressive multi-phased marketing program to bring rural 

Mississippi travelers back to their home airports. This marketing program will rejuvenate rural 

Mississippi air service. The Mississippi EAS Airport Consortium urges the Department to give this 

proposal favorable consideration. 
Proposal of Mississippi EAS Airport Consortium • July 2013 4

COMMUNITY LOCATIONS, POPULATIONS AND ECONOMY

The three Mississippi cities are located in different parts of the state. Greenville is located in the 

northwestern part of the state, about 117 road miles northwest of Jackson. Hattiesburg-Laurel is 

located in southeastern Mississippi, about 88 miles 

from Jackson. Meridian is located in east central 

Mississippi, about 93 miles from Jackson.

Greenville has the only air service airport in northwest 

Mississippi and in southeastern Arkansas. The 2012

micropolitian MSA population is 49,750. The one hour 

drive radius population is 128,677 and the two hour 

drive radius population is 453,328.

Key economic sectors include agriculture, casinos

and manufacturing, anchored by a US gypsum 

factory, a Mars Candy factory and a major 

agricultural research center.

Meridian is only 20 miles from the Alabama border 

and the airport serves east central Mississippi and 

west central Alabama. The 2012 micropolitan MSA 

population is 107,111. The one hour drive radius 

population is 174,290 and the two hour drive radius 

population is 1,216,851, as it includes the Jackson 

metro area.

Key economic sectors of the Meridian economy 

include the Meridian Naval Air Station and Mississippi 

National Guard facilities, and four major healthcare 

centers, while Peavey Electronics and Lockheed 

Martin headline an extensive list of manufacturing 

and distribution companies.
Proposal of Mississippi EAS Airport Consortium • July 2013 5

Hattiesburg-Laurel – The Hattiesburg-Laurel Regional Airport is adjacent to I-59 between 

Hattiesburg and Laurel. The 2012 metropolitian MSA population is 146,766. The one hour drive 

radius population is 273,425 and the two hour 

drive radius population is 1,216,851, as it 

encompasses part of the Gulfport, Jackson and 

New Orleans metro areas.

Key economic sectors for the Hattiesburg-Laurel 

region include education (University of Southern 

Mississippi with 18,000 students), healthcare and

Camp Shelby (the largest National Guard facility 

east of the Mississippi with up to 100,000 annual 

troop training events). Top private sector 

employers include Halliburton, Marshall Durbin 

Corporation, BAE, Georgia Pacific, GE Aviation, 

Kohler, and Johnson Controls.

By most economic measures, Mississippi is the poorest state in the union. The chart lists US Census 

Bureau data that shows the relative standing of the State and the three EAS communities that 

are party to this application.

In terms of per capita income (PCI) the Greenville area is one of the poorest in Mississippi and in 

the nation. Hattiesburg-Laurel and Meridian PCI are about at the state level. In terms of median 

Household Income (MHH) Greenville is again one of the poorest areas in the state and nation 

while Hattiesburg-Laurel and Meridian rank modestly below the State levels. 

Per Cap Median HH

Unit 2011 From US From MS Unit 2011 From US From MS

United States $27,915 United States $52,762

Mississippi $20,521 -26.5% Mississippi $38,718 -26.6%

GLH Washington Co $16,856 -39.6% -17.9% GLH Washington Co $28,591 -45.8% -26.2%

Hattiesburg Forest & Jones Co $19,866 -28.8% -3.2% Hattiesburg Forest & Jones Co $36,724 -30.4% -5.2%

Meridian Lauderdale Co $20,688 -25.9% 0.8% Meridian Lauderdale Co $35,420 -32.9% -8.5%

Difference Difference

COMPARISON OF KEY ECONOMIC METRICS

Per Capita Income Median Household Income
Proposal of Mississippi EAS Airport Consortium • July 2013 6

CURRENT AIR SERVICE AND TRAFFIC

Current Air Service – Silver Airways provides EAS service at all three of the Mississippi Airports that 

are party to this application. Service is to Atlanta onboard newly refurbished 34-seat SF-340B 

aircraft. Ironically, some of the 25 SF340Bs in the Silver fleet were formerly flown by Mesaba 

Airlines on Delta Connection flights serving these same cities.

Silver service is operated 

under the Silver brand and 

3M airline code. The carrier 

has no code-sharing 

agreements at this time in 

Atlanta.

Greenville service is onestop via Tupelo. Service is 

three times per weekday, 

once per Saturday and 

twice per Sunday.

Meridian and Hattiesburg both have twice per day nonstop service to Atlanta, with Hattiesburg

service reduced to one trip per day on Saturday and Sunday while Meridian has one trip per 

day on Saturday and two on Sunday.

A Difficult Transition – Delta, or its predecessor carriers Southern, Republic or Northwest, had 

served each of these cities for decades and, until 2008, without EAS subsidy. On October 1, 2012,

Silver assumed service at all three cities, plus at Tupelo, Muscle Shoals and Lewisburg, WV. Prior to 

that Silver had assumed EAS service at six Colgan Air EAS cities around Washington Dulles on 

August 1, 2012. And Silver had only initiated SF-340 operations in March of 2012. For a small airline

Market Segments/week Route Segments Seats Subsidy

Greenville 36 ATL via TUP 1,835 62,390 $3,522,398

Hattiesburg 24 Nonstop ATL 1,223 41,582 $2,965,667

Meridian 26 Nonstop ATL 1,325 45,050 $2,417,808

SUMMARY OF SILVER AIRWAYS ATLANTA SERVICE

Service Annual
Proposal of Mississippi EAS Airport Consortium • July 2013 7

0

5,000

10,000

15,000

20,000

25,000

23,290

20,440

19,800

18,200

22,590

20,120

16,360

15,600

11,80010,930

11,460

13,270

11,090

7,600

like Silver the operational and logistical challenges of 2012 are massive. A significant number of a 

new aircraft type had to be placed on line, with all the implied flight operations, station and 

maintenance infrastructure and employment. A dozen new small city stations had to be opened 

as well as hub station operations in Dulles and Atlanta. The timeline for this transition was driven 

by Colgan’s (Pinnacle) bankruptcy and Delta’s desire to exit these markets they had served for 

decades. 

The result was an uneven transition. Any transition from a global airline to an independent 

regional carrier will be difficult. This one was very difficult. Delta did not agree to allow Silver to 

use its code on Mississippi flights, nor were frequent flyer mile credits extended. Silver had to start 

Mississippi operations with a convoluted GDS display structured around the reservations and 

booking engine capability of Island Air, a small Hawaiian airline. This was confusing to Mississippi 

travelers. Full GDS display across all online venues took several months. A Delta.com booking 

display did not become operational until December. And flight operations were uneven, given 

the scope of operational responsibility Silver took on August 1 and then October 1. So the initial 

months of Silver service at these Mississippi airports were operationally weak and GDS poor.

The results of this painful transition were dreadful traffic results at the three Mississippi airports. 

Traffic History – At Greenville traffic has declined 49% in the first nine months of Silver service. The 

chart shows estimated 2013 year end traffic against actual for 2000 to 2012.

GREENVILLE ANNUAL TRAFFIC 2000 – 2013 (2013 estimated)

Greenville service for years 2000 to

9/30/2012 was Delta (Northwest) to 

Memphis, operated with SF340s 

until the last few months of 

operations in 2012 when CRJ 

equipment was used. With the 

exception of a few months in 2002, 

2003 and 2004 where three daily 

trips were offered, Memphis service 

was two daily trips. With two daily trips, annual traffic was 20,120 in 2005 and averaged 12,000 or

more from 2006 until Delta’s exit in 2012.
Proposal of Mississippi EAS Airport Consortium • July 2013 8

0

5,000

10,000

15,000

20,000

25,000

30,000

25,470

22,85020,880

22,200

28,590

28,050

27,93026,85023,570

24,900

26,870

28,550

24,970

13,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

60,140

59,460

41,450

41,100

53,640

51,680

42,480

31,300

37,350

35,160

32,800

32,110

28,710

15,000

At Hattiesburg traffic has declined 57% in the first nine months of Silver service. The chart shows 

estimated 2013 year end traffic against actual 2000 to 2012.

HATTIESBURG ANNUAL TRAFFIC 2000 – 2013 (2013 estimated)

Hattiesburg service in years 2000 

to 9/30/2012 was Delta 

(Northwest) to Memphis, always 

two daily trips and operated with 

SF340 aircraft until CRJ 

equipment was used from July 

2011 until 9/30/2013.

2013 total Hattiesburg traffic is 

projected to be half that of the 

average for the past five years.

At Meridian traffic has declined 60% in the first nine months of Silver service. The chart shows 

estimated 2013 year end traffic against actual 2000 to 2012.

MERIDIAN ANNUAL TRAFFIC 2000 – 2013 (2013 estimated)

Unlike Greenville and Hattiesburg,

Meridian service for the period 

2000 to 9/30/2013 was always 

Delta and always Atlanta. 

Furthermore, Meridian saw 

regional jet service beginning in

2006. The market’s annual traffic 

numbers reflect access to the 

more powerful Atlanta hub, 

higher frequency levels and a 

longer period of regional jet service.

Top Markets – The top market list for each of these airports has changed significantly from the 

shift from Delta network service to Silver independently branded service. Thus the chart 

compares top markets for the last six months of Delta service to top markets for the first six 

months of Silver service.
Proposal of Mississippi EAS Airport Consortium • July 2013 9

GLH

Rank Market O&D Avg Fare Market O&D Avg Fare

1 ATL 770 $185 ATL 310 $117

2 LGA 380 $185 ELM 60 $277

3 DCA 270 $185 ORF 60 $212

4 LAX 260 $185 RDU 50 $200

5 LAS 240 $185 BDL 40 $286

PIB

Rank Market O&D Avg Fare Market O&D Avg Fare

1 PIT 540 $232 ATL 590 $115

2 MOT 490 $416 PHL 140 $238

3 MCI 420 $209 CLT 50 $176

4 ATL 370 $345 ORD 50 $210

5 MEM 370 $301 AVP 30 $325

MEI

Rank Market O&D Avg Fare Market O&D Avg Fare

1 ATL 770 $185 ATL 720 $109

2 LGA 380 $185 LGA 130 $248

3 DCA 270 $185 CLT 120 $148

4 LAX 260 $185 BDL 70 $259

5 LAS 240 $185 SAV 60 $236

Delta: 2012 Q2 & Q3 Silver: 2012 Q4 & 2013 Q1

MISSISSIPPI EAS AIRPORT TOP MARKETS; PRE AND POST DELTA SERVICE

Delta: 2012 Q2 & Q3 Silver: 2012 Q4 & 2013 Q1

Delta: 2012 Q2 & Q3 Silver: 2012 Q4 & 2013 Q1

$188

$200

$225 $229

$257

$232 $237

$225

$237

$136

$195

$220

$270 $274 $266

$279

$299 $293

$308

$142 $182

$199

$234 $236

$249

$250 $275

$283

$301

$138

$100

$150

$200

$250

$300

$350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Average Fare

GLH MEI PIB

With Silver Airways Atlanta service it is

logical that Atlanta would become 

the top O&D market for all three 

markets. At Meridian it already was 

the top market owing to Delta 

service to Atlanta.

So with the exception of Atlanta, and 

LGA for Meridian, the top five 

markets for each city have turned 

over completely due to the transition 

from Delta network service to Silver 

Airways independent branded 

service.

Average Fares – Greenville, Hattiesburg and Meridian have historically been high fare markets, 

especially Hattiesburg and Meridian.

 GREENVILLE, HATTIESBURG, MERIDIAN AVERAGE FARE

The 2012 fare shown is for the

Delta service for the year ended 

9/30/2013. The 2013 fare shown is for 

Silver service for the six months 

October 2012 to March 2013.

The Silver average fares shown reflect the very high percentage of Silver passengers that were 

reported as local Atlanta. No doubt some of these passengers were not true local Atlanta but 

instead were connecting to other carriers on the sum of two local pricing and combined point 

to point bookings.
Proposal of Mississippi EAS Airport Consortium • July 2013 10

AIR SERVICE DEFICIENCIES AND NEEDS

Air Service Deficiencies – In the past year, these Mississippi airports have experienced the shock 

of losing reliable network air service that they had depended on and counted on and 

supported with significant traffic at high fares for a span of several decades. Therefore the air 

service deficiencies and needs are significant.

Current air service lacks;

- A network carrier brand

- A network carrier code

- Integrated network carrier online connect market pricing

- Brand identity across the broader domestic network

- Brand identity across the broader international global air service network

- Brand identity in Mississippi or in Atlanta

- Brand loyalty or frequent user program for Mississippi or Atlanta residents

These deficiencies are responsible for the dramatic drop in traffic at all three airports starting last 

October when Delta exited the market and Silver entered the market.

This chart shows the month by month enplanements at the three airports for the period October 

2011 to June 2012 (Delta’s last nine months) in comparison to the period October 2012 to June 

2013, which was Silver’s first nine months.

Month 2011-2012 2012-2013 2011-2012 2012-2013 2011-2012 2012-2013

Delta Silver Change Delta Silver Change Delta Silver Change

Oct 690 289 -58.1% 1,381 487 -64.7% 1,578 713 -54.8%

Nov 734 312 -57.5% 1,333 479 -64.1% 1,533 686 -55.3%

Dec 628 300 -52.2% 1,318 417 -68.4% 1,645 534 -67.5%

Jan 449 255 -43.2% 1,086 486 -55.2% 1,171 553 -52.8%

Feb 449 354 -21.2% 1,166 461 -60.5% 1,339 546 -59.2%

Mar 462 354 -23.4% 1,270 583 -54.1% 1,662 635 -61.8%

Apr 499 263 -47.3% 826 531 -35.7% 1,524 658 -56.8%

May 621 277 -55.4% 892 524 -41.3% 1,711 638 -62.7%

Jun 588 210 -64.3% 1,098 460 -58.1% 1,603 562 -64.9%

Period 5,120 2,614 -48.9% 10,370 4,428 -57.3% 13,766 5,525 -59.9%

Greenville Hattiesburg-Laurel Meridian

MISSISSIPPI BOARDINGS COMPARISON: DELTA VS SILVER
Proposal of Mississippi EAS Airport Consortium • July 2013 11

From day one of Silver service there is no traction for that service. Furthermore, there appears to 

be no gradual buildup of patronage.

Should this weak traffic pattern continue air service at these three cities will continue to decline 

and may, in some instances, end. The impact of weak un-patronized air service, or worse, the 

loss of air service on rural Mississippi cities is significant. It is well established that rural communities 

with more or better transportation infrastructure outperform peer cities with less or inferior 

transportation infrastructure. This is true for highways and freeways, railroads, port facilities (in the 

case of cities on major bodies of water) and it is true of airports and air service. Now all three of 

these communities have excellent airports; in one case a former Air Force base (GLH), in another 

a current Naval Air Station (MEI joint use). The third airport (PIB) was built in 1975 specifically to be 

the regional air service airport for the surrounding area. Until Delta left, all three had quality air 

service from a Global Network carrier.

The economic impact of lost air service, or service that declines to the point that it is in name 

only and without measurable patronage, is significant. The contrast between documented 

inbound visitors-by-air to each Mississippi City, per DOT reports, for the last 12 months of Delta 

service compared to the number of visitors-by-air on Silver, even at the same Point-Of-Origin 

percentages, is significant.

Even if half the visitor traffic still arrives in some manner at the three Mississippi cities, about 3,600 

annual visitors would still be lost.

Delta YR 9/30/12 Estimated

Service Dom O&D Percent O&D Percent O&D Visitors

GLH 12,260 56% 6,915 44% 5,345 2,673

PIB 24,970 54% 13,484 46% 11,486 5,743

MEI 30,450 56% 16,900 45% 13,550 6,775

Total 67,680 55% 37,298 45% 30,382 15,191

Projected Year 2013 Estimated

Silver 2013 Dom O&D Percent O&D Percent O&D Visitors Visitors Percent

GLH 7,600 56% 4,286 44% 3,314 1,657 -1,016 -38.0%

PIB 13,000 54% 7,020 46% 5,980 2,990 -2,753 -47.9%

MEI 15,000 56% 8,325 45% 6,675 3,338 -3,438 -50.7%

Total 35,600 55% 19,631 45% 15,969 7,984 -7,207 -47.4%

MISSISSIPPI AIR SERVICE POINT OF ORIGIN AND VISITOR ESTIMATES 

Inbound Origin

Local Origin Inbound Origin

Local Origin Change in Visitors
Proposal of Mississippi EAS Airport Consortium • July 2013 12

Other Airport Time Distance Time Distance Time Distance

Birmingham 2:23 151

Gulfport 1:15 68 2:36 158

Jackson 2:35 131 1:50 95 1:26 88

Little Rock 2:43 150

Memphis 2:48 149

Mobile 1:44 90

New Orleans 2:03 122 3:20 209

Greenville Hattiesburg Meridian

ALTERNATIVE AIRPORTS

Estimated True

City Demand (PDEW) Airport of Use Percent

GLH 17%

MEM 42%

LIT 27%

JAN 15%

PIB 10%

MSY 55%

JAN 23%

GPT 12%

Greenville 106 domestic and 

7 international

Hattiesburg 418 domestic and 

25 international

2012 LEAKAGE STUDY RESULTS

If each visitor averaged even a modest 3 day-visit and spent $150 per day, the economic loss 

for the three cities totals $1,620,000 per year (3,600 visitors x 3 days stay each x $150). There is also 

the intangible damage that lack of viable air service does when rural communities seek to retain 

existing local businesses/industry or recruit new business/industry to a local site or office/industrial 

park. Proximity to scheduled air service is almost always a critical factor in rural site selection 

evaluations by companies. 

Alternative Airports – None of the three Mississippi Airports has a low fare airport in close 

proximity. Greenville is the most isolated with 2.5 hour plus drives to any alternative airport. 

Hattiesburg has modest viable other air service options at Jackson (1:50 drive) and significant 

other options at New Orleans (2:03 

drive depending on traffic). Meridian 

has close proximity to any options at 

Jackson but is 2.5 hours or more from 

any other airport with distinctive 

other air service options.

Traffic Leakage – In the summer of 2012 the Mississippi Transportation Department Aeronautics 

Division funded a comprehensive leakage study at three Mississippi airports, with Greenville and 

Hattiesburg being two of the study areas. The analysis period was April 2011 to March 2012, 

during which time both cities had Delta service 

twice daily to Memphis.

The study concluded that, at that time, the 

Greenville catchment area produced 113 

PDEW and the local airport only captured 17% 

of that demand. At Hattiesburg true demand 

was 443 PDEW with the local airport capturing 

10%. A study was not done at Meridian; at this time, given similar Delta service and a location 

similar to that of Hattiesburg, it is reasonable to assume similar results. By these measures 

Greenville and Hattiesburg (and by extension Meridian) air service was inadequate at that time, 

which was prior to Delta’s withdrawal and Silver assuming local air service.
Proposal of Mississippi EAS Airport Consortium • July 2013 13

Venue Timeframe Funding Per Year

Billboards 2011 - 2013 $15,000

Radio 2011 - 2013 $4,000

Newpaper 2011 - 2013 $3,000

TV spots 2011 - 2013 $12,000

TV Drawing 2011 - 2013 $1,000

Total $35,000 $11,667

Presentation at Delta State University

Spoke to Delta Economic Development Council

Spoke at Chamber Luncheon

Spoke at Kiwanis, Rotary and Travel Clubs

GREENVILLE AIR SERVICE PROMOTION 2011 - 2013

Traditional Media Schedule

Community Outreach

AIR SERVICE DEVELOPMENT EFFORTS AND AIR SERVICE MARKETING

Air Service Development Efforts – The three consortium cities have been in the EAS program for 

some years and for most of those years the EAS carrier was Delta. Service to Memphis (Greenville 

& Hattiesburg) and Atlanta (Meridian) was the best possible combination of carrier and route for 

each city. Therefore, air service development, in the sense of recruiting “new” air service, was 

not necessary. During these years each city’s airport management did have ongoing phone 

conversations with Delta, especially as each two year EAS bid cycle came.

When it became clear in 2010 that Delta intended to leave all three cities an active and 

cooperative effort began to find replacement service. In addition to the three cities in the 

consortium, Tupelo and Muscle Shoals also participated in replacement carrier recruitment 

efforts. An air service consultant was hired and active recruitment of viable replacement carriers 

began. This was a long process. There are fewer and fewer regional carriers and some have had 

financial difficulties. Like the network carrier sector, the regional carrier sector was in turmoil in 

the 2010 – 2012 period. After multiple EAS RFP bid cycles did not yield a viable replacement 

carrier, Silver Airways, fresh from Chapter 11 re-organization, stepped up in 2012 to bid to serve 

the five cities. The recruitment of Silver Airways involved face-to-face meetings and dozens, if not 

more, conference or phone conversations. Significant study and data research was undertaken 

by the air service consultant to help Silver become familiar with the markets. Silver replacement 

of Delta service in all five cities began on October 1, 2012.

Current Air Service Marketing – Each of the three communities has had ongoing air service 

marketing and promotion efforts, during the era of Delta service and even more so with the 

abrupt and traumatic shift from Delta to Silver Airways, which in two of the three markets also 

involved a shift in hub served.

At Greenville the local airport manager works closely 

with the Airport’s community partners in efforts to 

ensure a high level of local awareness of air service.

Given difficult economic conditions in northwest 

Mississippi, Greenville’s city, county and airport 

budgets are very tight. Nevertheless, nearly $12,000 

per year has been spent on air service promotion.
Proposal of Mississippi EAS Airport Consortium • July 2013 14

Year Venue or Event

All year WMOX Talk Radio ads

All year WALT Talk Radio ads

Symphony Program ads

Little Theater Program ads

All year WMOX Talk Radio ads

All year WALT Talk Radio ads

Symphony Program ads

Little Theater Program ads

Airport Open House May

Media release/website update, August

Meeting with Silver Airways in August

Work with Congressman on DOD travel policy

September & December, radio interviews

All year WMOX Talk Radio ads

All year WALT Talk Radio ads

Talk Radio interview

Meeting with Silver Airways in May

Symphony Program ads

Little Theater Program ads

MERIDIAN AIR SERVICE PROMOTION 2011 - 2013

2011

2013

2012

Timeframe Venue Spend

2010 Q3 TV, Radio, Magazine $2,900

2010 Q4 USM Football, TV, Radio $4,365

2011 Q1 Rotary Club, TV, Radio $2,125

2011 Q2 USM ad, TV, Radio $3,445

2011 Q3 TV, Magazine, SMU football program $5,710

2011 Q4 TV, USM football program $2,775

2012 Q1 TV $1,625

2012 Q2 TV, Magazine, Expo, Calendar $4,938

2012 Q3 TV, Expo, USM program, billboard, web ad $8,289

2012 Q4 TV, USM program, billboard $3,150

2013 Q1 TV, Billboard $5,092

2013 Q2 TV, Billboard, USM program $3,622

Total $48,036

Three Year Average $16,012

At Hattiesburg-Laurel the Airport has spent an HATTIESBURG AIR SERVICE PROMOTION 2011 - 2013

average of $16,012 per year on marketing and 

support of the local air service. Annualized spending 

has been at a consistent rate. Primary media venues 

include TV, radio and University of Southern Mississippi 

(USM) print venues.

Hattiesburg had a complete reversal of the schedule 

timing of its Silver Airways schedule after the first six 

months of service. The carrier also changed its GDS display in June of 2013 from one coded with 

Island Air of Hawaii to one coded with Silver Airways. For these reasons Hattiesburg believes that 

future marketing and promotional efforts will have a more effective message.

At Meridian the Airport has had a modest ongoing 

marketing effort involving local talk radio ads and 

local Symphony and Theater program ads.

The shift of air service from Delta to Silver Airways 

generated significant additional airport marketing 

efforts in the second half of 2012. The Airport has met 

with Silver Airways in person twice in the past nine 

months and has maintained constant phone 

contact in between. The Airport also is in constant 

contact with the Naval Air Station and its 

transportation management office. The Airport has 

spent about $12,000 per year on local advertising for each of the past three years.

In summary, all three airports and the communities they serve realize the importance of their 

local air service. In the EAS program “air service recruitment” is a once every other year exercise 

and when Delta is the incumbent carrier there is not a lot of recruiting. All three airports and 

communities moved aggressively to retain viable air service when it became clear that Delta 

was leaving. All three have worked hard, within the budgetary constraints they have, to 

promote the new Silver Airways service. But they are essentially starting from scratch or from zero 

in terms of brand identity and new air service features. This has been a significant challenge.
Proposal of Mississippi EAS Airport Consortium • July 2013 15

A STRATEGIC PLAN TO RETAIN OUR AIR SERVICE

The loss of Delta Air Lines service at the Mississippi consortium airports has had a devastating 

impact on traffic. This would be of significant concern at any airport but is even more so since all 

three Mississippi airports are in the EAS program. It is essential that all three cities work to recover 

from the loss of Delta and move forward with Silver Airways.

This will be difficult. Delta has not agreed to a code-sharing arrangement with Silver, nor has the 

carrier extended any frequent flyer affinity program features to the Silver flights. This application 

has outlined the challenges these three cities face without Delta; a lack of network carrier 

brand, code and integrated pricing. Then there are all the implied obstacles of an unknown 

brand, Silver Airways, trying to establish itself in each city, in Atlanta, and across the domestic 

and global air service networks and in the global distribution systems.

There are positives in this air service situation. All three cities have service to Atlanta, the largest 

airline hub in the world. Service is provided on re-furbished SF340B aircraft, the proper gauge of 

aircraft for markets these sizes and routes of these distances. And Silver Airways is committed to 

being a successful small community carrier. So while Silver Airways continues to establish itself as 

a national brand serving small cities and while it continues to seek frequent flyer and other 

business arrangements with network carriers the urgent task of the Mississippi consortium airports 

is to develop traffic demand for Silver services at Greenville, Hattiesburg and Meridian.

Funding Plan – This Grant application proposes to use modest SCASD funding, coupled with nonairport cash matching funds from each city and further cash matching funds from the Mississippi 

Department of Transportation, to fund a broad and multi-phased marketing and advertising 

program in and around each of the Mississippi cities and also, via low cost methods, in the 

Atlanta area (targeting Atlanta area local traffic demand to Mississippi). 

In recognition of the potential Grant eligibility issues related to Greenville, the funding plan is 

summarized by community so a partial Grant award is a Department option.

Greenville Cash Percent Hattiesburg Cash Percent Meridian Cash Percent Program Cash Percent

DOT $40,000 76.92% DOT $40,000 76.92% DOT $40,000 76.92% DOT $120,000 76.92%

Community $6,000 11.54% Community $6,000 11.54% Community $6,000 11.54% Community $18,000 11.54%

State $6,000 11.54% State $6,000 11.54% State $6,000 11.54% State $18,000 11.54%

Total $52,000 100.00% Total $52,000 100.00% Total $52,000 100.00% Total $156,000 100.00%

CONSORTIUM GRANT FUNDING PLAN 
Proposal of Mississippi EAS Airport Consortium • July 2013 16

New Service Marketing Plan – All three cities have done a good job, within their limited budgets, 

of marketing and promoting local air service in the past three years. The sudden shift from 

household name Delta (and its powerful frequent flyer affinity in Mississippi) to the unknown Silver 

Airways demands a new and more complex approach to local air service marketing. With the 

aid of Grant funding an aggressive and multi-layered marketing and promotional effort is 

proposed for each of the three cities, coupled with a modest online travel planning venue and 

social media effort targeted at consumers in the Atlanta metro area with interest in travel to 

Mississippi.

Greenville Marketing Plan – The program would refine existing marketing efforts to reflect a 

national consumer shift to online travel planning. The program would also work to plant the Silver 

Airways brand in the market and retain traditional retail advertising efforts.

Greenville area funding would be expended over a 12-month period beginning in late 2013 

across all the advertising tactics listed. Greenville, like each city, would contribute $5,000 to a 

funding pool that would target Atlanta area consumers via online travel planning site POPS. The 

goal of the Greenville program will be to double current traffic levels from about 571 monthly 

O&D to 1,142 monthly O&D by program end. This would put annual market O&D near 14,000 

with momentum toward additional growth.

Hattiesburg Marketing Plan – The new marketing program will refine existing marketing efforts to 

reflect a national consumer shift to online travel planning. It would also focus on defining the real 

customer value of local travel to Atlanta and connecting via Atlanta in comparison to driving to 

alternative airports.

Strategies Funding

Develop online travel planning site presence 

Re-inforce local retail advertising

Develop incentive programs for local corporations & institutions

Focus on pricing advantage for Atlanta local travel

Tactics 12 Months

Create a standardized brand position that fits the market, radio, outdoor, web $3,000

Begin POP advertising tactics on travel websites $15,000

Quarterly social media based promotions $4,000

Direct corporate incentive program; MARs, University, Research Center $8,000

Re-inforce local retail advertising $11,000

Aggressively develop local (low cost) sponsorships $10,000

Sub Total $51,000

Contribution to Atlanta Area POP and Social Media program $5,000

Total $56,000

GREENVILLE MARKETING PLAN
Proposal of Mississippi EAS Airport Consortium • July 2013 17

Funding allocations are assumed to be similar to those in Greenville. A goal of the Hattiesburg 

program would be a 50% increase in O&D traffic to about 20,000 annual passengers.

Meridian Marketing Program – Meridian’s program will be like that of Hattiesburg-Laurel’s as the 

two markets are in similar geography and have similar demographics.

The goal of the Meridian marketing program would be to increase traffic to an annual rate of 

24,000 O&D by program end.

Atlanta Marketing Program – Clearly the notion of conventional advertising for modest Silver 

Airways flights to Mississippi in the huge Atlanta metro area is laughable. However, the pool of 

$5,000 from the three cities could be used for GDS POP programs that would offer online GDS 

inquiries the option to check service to the three consortium airports. Furthermore, various social 

media venues can target, at low cost, users in the Atlanta area that match up with Mississippi 

activities. The total cost of such a POP and social media program would be about $15,000.

Strategies Funding

Develop online travel planning site presence 

Promote Atlanta nonstop service, new to the market

Develop incentive programs for local corporations & institutions

Focus on overall cost of travel in comparison to driving to another airport

Tactics 12 Months

Create a standardized brand position that fits the market, radio, outdoor, web $3,000

Begin POP advertising tactics on travel websites $15,000

Quarterly social media based promotions $4,000

Direct corporate incentive program; USM, local corporations $8,000

Re-inforce local retail advertising $11,000

Aggressively develop local (low cost) sponsorships $10,000

Sub Total $51,000

Contribution to Atlanta Area POP and Social Media program $5,000

Total $56,000

HATTIESBURG-LAUREL MARKETING PLAN

Strategies Funding

Develop online travel planning site presence 

Promote Atlanta nonstop service, new to the market

Develop incentive programs for local corporations & institutions

Focus on overall cost of travel in comparison to driving to another airport

Tactics 12 Months

Create a standardized brand position that fits the market, radio, outdoor, web $3,000

Begin POP advertising tactics on travel websites $15,000

Quarterly social media based promotions $4,000

Direct corporate incentive program; Peavey, Lockheed, Healthcare Centers $8,000

Re-inforce local retail advertising $11,000

Aggressively develop local (low cost) sponsorships $10,000

Sub Total $51,000

Contribution to Atlanta Area POP and Social Media program $5,000

Total $56,000

MERIDIAN MARKETING PLAN
Proposal of Mississippi EAS Airport Consortium • July 2013 18

DL Routes O&D Avg Fare Delta Share

JAN - ATL 18,130 $281 97.3%

GTR - ATL 1,460 $207 100.0%

GPT - ATL 14,200 $175 98.6%

Group Total 33,790 $233 98.0%

Silver Routes Silver Share

GLH - ATL 3,100 $117 100.0%

PIB - ATL 5,860 $115 100.0%

MEI - ATL 7,170 $109 100.0%

Group Total 16,130 $113 100.0%

ATLANTA - MISSISSIPPI LOCAL TRAFFIC: 

2012 Q4 and 2013 Q1

A Greater Goal – Major airline mergers have reduced network carrier competition. No place is 

this more clear than between Mississippi and Atlanta. Delta’s merger with Northwest eliminated 

Memphis as a competitive balance in the region west of Atlanta. Southwest’s decision to 

remove AirTran service from the Memphis – Atlanta city pair in August 2013 means that in the

entire region between Dallas and Atlanta the only city pair with nonstop competition is New 

Orleans – Atlanta. But Silver Airways service from the consortium cities of this application does 

provide significant low fare capacity between Mississippi and Atlanta for the benefit of local 

O&D passengers.

The chart at right graphically shows the 

pricing difference between Delta at Jackson, 

Golden Triangle and Gulfport and Silver at the 

three consortium cities during the first six 

months of Silver service, October 2012 thru 

March 2013. Note that Delta holds an 

absolute lock on market share in its markets 

with a 98% share at $233. In contrast, Silver’s 

reported average fare in its three markets was $113.

The drive radius of the three consortium 

airports does cover a wide area of northwest 

and southeast Mississippi. Tupelo also has Silver 

service but is not part of this application. If the 

same drive radius is projected over Tupelo 

then most Mississippi residents are within a one 

or two hour drive of Silver Airways low fare 

Atlanta service. Given Delta’s competitive 

lock and associated high local fares on 

Atlanta service at Jackson, Golden Triangle 

and Gulfport, Silver service is of STATEWIDE 

value. The purpose of this Grant application is 

to make that value KNOWN, whereas today it 

is essentially not known statewide or, for that 

matter, in Atlanta.
Proposal of Mississippi EAS Airport Consortium • July 2013 19

Entity Status

City of Greenville

Washington County

Delta Council

Washington County CVB

Washington County Chamber & EDC

Delta Regional Medical Center

USDA Research Center & Associates

Delta State Univeristy

Mississippi Valley State University

Harlow's and Tropicana Casinos 

NW Mississippi Grain Export

Avis, Hertz and Enterprise Car Rentals

US Gypsum

MARs, Inc

Leading Edge Aviation Service

GREENVILLE PUBLIC PRIVATE PARTNERSHIP

Public 

Private

Entity Status

Cities of Hattiesburg and Laurel

Counties of Jones and Forest

Camp Shelby

University of Southern Mississippi

Pearl River & Jones County Community Colleges

South Central Medical Center

Hattiesburg Clinic

BAE Systems

C-SPIRE Communications

Dixie Electric Power Association

Sanderson Farms

Mississippi Power Association

Hampton Inn and Courtyard by Marriott

Bancorp South and Regional Bank

HATTIESBURG PUBLIC PRIVATE PARTNERSHIP

Private

Public 

Entity Status

The City of Meridian and Lauderdale County

East Mississipppi Business Development Corp

Meridian Community College

NAS Meridian and Mississippi ANG

Rush Hospital and Anderson Regional Medical

Lauderdale County Tourism Bureau

Peavey Electronics

Auto Rentals, Inc

Checker Leasing

Meridian Aviation

Quick Flight

Dean Aircraft Service 

MERIDIAN PUBLIC PRIVATE PARTNERSHIP

Public 

Private

PUBLIC PRIVATE PARTNERSHIPS

All three Mississippi communities have active air 

service committees or task forces.

At Greenville the public private partnership for 

improving air service has ten public entity members 

and nine private sector members.

At Hattiesburg-Laurel the public private 

partnership for improving air service has ten

public members and nine private sector 

members.

At Meridian the public private partnership for 

improving air service has nine public and six 

private sector members. 
Proposal of Mississippi EAS Airport Consortium • July 2013 20

PREVIOUS GRANT AWARDS AND SUMMARY

Both Meridian and Greenville have received previous Grant awards. Both were pre-EAS status 

and prior to the exit of network service from the market.

Meridian – Meridian applied for and received a SCASD Grant in September of 2002, the first year 

of the program. The Grant was for $500,000. The goals of the Grant were securing new turboprop 

or jet services, either from incumbent carrier ASA or a new entrant (new hub), increasing 

frequency of service on existing route to Atlanta, implementation of marketing programs to 

support new services and the gathering of market data, including airfare comparisons, parking 

lot surveys and passenger surveys. A Grant amendment in March of 2003 allowed Grant funding 

to be used for ground support equipment, carrier facility modifications and consultant fees. 

Grant funding was used for MRG and associated support, as listed in the Grant contract and the 

Grant amendment. The Grant was closed in March of 2005, prior to Meridian being put in the 

EAS program by Delta in 2007. This new 2013 Grant request is for marketing funding within the 

scope of allowable Grant fund usage for EAS cities.

Greenville – Greenville was awarded a SCASD Grant in 2007 for $450,000, matched by $50,000 in 

local non-airport cash. The purpose of the Grant was to recruit and provide minimum revenue 

guarantee (MRG) and marketing support for new nonstop service to Atlanta, with Delta Air Lines 

being the target carrier. At the time the Grant was applied for Greenville was NOT in the EAS 

program, with service from Northwest Airlink SF340s twice daily to Memphis. In June of 2008 

Northwest (Mesaba) filed notice of termination at Greenville for the purpose of bidding to 

receive EAS subsidy. Thus Greenville entered the EAS program AFTER having been awarded a 

SCASD grant for MRG and associated marketing support but before that Grant could be used 

for its intended purpose. In 2010 Greenville requested permission of the Department to use the 

marketing portion of the Grant, $50,000, to support existing Northwest Airlines network carrier 

service to Memphis. Marketing funds were then expended and the Grant closed on 8/3/2011.

There are several key distinctions between the Greenville Grant award of 2007 and Greenville’s 

participation in this Grant application. The first Grant was requested and awarded when 

Greenville was outside the EAS program. Greenville had no idea, when it applied for the first 

Grant, that it would end up in the EAS program and unable to use that Grant as intended. 

Greenville had no idea that Delta would, upon merger with Northwest, make a wholesale exit 

from two dozen Northwest cities. 
Proposal of Mississippi EAS Airport Consortium • July 2013 21

 

This goes to the heart of the question of what is a “same project”. Greenville won a Grant in 2007 

for MRG and marketing for new service to Atlanta. Completely different market circumstances 

were thrust upon the community in 2008, essentially negating the entire purpose of the 2007 

Grant award. Was Greenville then to simply give back its entire Grant, because Northwest 

Airlines made an economic decision to put Greenville in EAS? Then, in 2011, Delta, having 

merged with Northwest, makes a wholesale exit from rural America and will not grant the

Greenville replacement carrier a code-share, joint pricing or any frequent flyer affinity program, 

despite that carrier offering service to Atlanta, Delta’s largest hub. (Ironically, Silver uses many of 

Mesaba’s former Delta Connect SF340s that flew GLH – MEM) This is not a “same project” Grant 

request. It is marketing funding, but to support totally different air service situations involving 

totally different airlines and service to different hubs. As the SCASD program continues the 

Department must recognize that EAS cities often have NO control over their air service destiny 

and make Grant applications in good faith based upon then current air service circumstances. 

Summary – Mississippi is the poorest state in the union. Therefore, nowhere, except perhaps 

Alaska, is rural air service as important to the local economy as it is in rural Mississippi. On 

October 1, 2012 Silver Airways was asked to do a “mission impossible” in Mississippi. The dramatic 

loss of traffic at these three cities threatens the long-term viability of their service. A key reason 

for the traffic loss is a near complete lack of brand identity for Silver Airways in the three cities 

and in the state. This application outlines a comprehensive marketing and promotional effort, 

using the latest in proven air service marketing techniques, to establish Silver branded service to 

Atlanta in these three cities and grow traffic back in the direction of the Delta service era. As the 

application points out, Silver is the only low fare air service competition for Delta between any 

region of Mississippi and Atlanta. But low fare competition is of little value if it has no brand 

identity in its service region.

The funding level requested is a modest $40,000 per city or $120,000 in SCASD funding. Each city 

is putting in $6,000 in non-airport local funding and the Mississippi DOT will match the local 

matches dollar for dollar, making the total state/local match $12,000 per city or $36,000 in total.

This Grant application outlines a creative solution to a serious and costly problem, EAS service 

with poor passenger counts. This modest funding will enable these cities to dramatically increase 

traffic, therefore reducing subsidy per passenger and, in future bid cycles, overall subsidy need. 

The consortium cities, their public and private partners, and the Mississippi DOT urge the 

Department to give this creative and modestly priced Grant proposal a favorable review.