Flagler College, formerly the Ponce de Leon Hotel, in St. Augustine, Florida

Sponsor: St. Augustine - St. Johns County Airport Authority 

Northeast Florida Regional Airport

Edward Wuellner, AAE, Executive Director

Dun & Bradstreet DUNS Number: 14-664-2389

Tax Identification Number: 59-1163738

Congressional District Code: FL-07

Northeast Florida Regional Airport

St. Augustine, Florida

Application Under the Small Community Air Service Development Program

For Marketing and Advertising Support

Docket DOT-OST-2012-0069
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

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TABLE OF CONTENTS

INTRODUCTORY LETTERS .........................................................................................................................3

SUMMARY INFORMATION (SOLICITATION APPENDIX C)......................................................................5

INTRODUCTION.......................................................................................................................................8

AIR SERVICE OVERVIEW .........................................................................................................................9

Catchment Area........................................................................................................................................................ 9

Existing Air Service .................................................................................................................................................... 10

Skybus at Northeast Florida Regional Airport...................................................................................................... 11

AIR SERVICE NEEDS AND DEFICIENCIES ..............................................................................................12

Tourism Industry......................................................................................................................................................... 12

St. Johns County Economic Base.......................................................................................................................... 13

Capacity Reductions in Northeast Florida .......................................................................................................... 14

The High Cost of Air Service in Northeast Florida ............................................................................................... 14

STRATEGIC PLAN FOR NEW AIR SERVICE .............................................................................................16

Strategic Plan for Use of Marketing Funds........................................................................................................... 17

Air Service Development Efforts............................................................................................................................ 18

Public-Private Partnerships...................................................................................................................................... 18

Funding Plan.............................................................................................................................................................. 19

Implementation Timeline ........................................................................................................................................ 19

Route to Sustainability ............................................................................................................................................. 20

Monitoring Grant Progress...................................................................................................................................... 20

Legal Sponsor............................................................................................................................................................ 21

SUMMARY.............................................................................................................................................22
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

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INTRODUCTORY LETTERS
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

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St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

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SUMMARY INFORMATION (SOLICITATION APPENDIX C)

Small Community Air Service Development Program

Summary Information: Docket DOT-OST-2012-0069

A. Applicant Information (Check All That Apply)

 Not a Consortium Interstate Consortium Intrastate Consortium

 Community now receives EAS subsidy

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

If previous recipient: Date of Grant: ______________ Expiration date of Grant: _______________

Federal Funds Requested: ________________________________________________________________

Carrier(s) Service Obtained: ______________________________________________________________

Destination(s) Served: ____________________________________________________________________

B. Public/Private Partnership (List Organization Names)

Public:

1. St. Augustine – St. Johns County Airport Authority

2. City of St. Augustine

Private:

1. St. Johns County Tourism Development Council

2. St. Augustine, Ponte Vedra, and the Beaches Visitors and Convention Bureau

3. St. Johns County Economic Development Council

4. Galaxy Aviation

5. Professional Golfers Association (PGA)

C. 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)
 

 

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D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach

 Localizer Other:

E. Project Cost: Do Not Enter Text in Shaded Area

Line Description Sub Total Total Amount

1 Federal amount requested $ 250,000 

2 State cash financial contribution $ -

Local cash financial contribution

3a Airport cash funds $ 100,000 

3b Non-airport cash funds $ 150,000 

3 Total local cash funds (3a+3b) $ 250,000 

4 TOTAL CASH FUNDING (1+2+3) $ 500,000 

In-Kind contribution

5a Airport In-Kind contribution** $ -

5b Other In-Kind contribution** $ -

5 TOTAL IN-KIND CONTRIBUTION (5a+5b) $ -

6 TOTAL PROJECT COST (4+6) $ 500,000 

F. In-Kind Contributions**

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

describe the source(s) of fund(s) for each.
 

 

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G. Is 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

H. Is Applicant Delinquent on any Federal Debt? (If “Yes”, Provide Explanation)

 No Yes 

_______________________________________________________________________________________

_______________________________________________________________________________________
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

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INTRODUCTION

Northeast Florida stretches from the Georgia border along the Atlantic Coast south to nearly Daytona Beach 

and some 40 miles inland at any point. The six-county area has a population of over 1.4 million and contains 

well-known metro areas such as Jacksonville and St. Augustine.

The area’s tourism attractions and venues are perhaps less well-known than those of some other Florida areas 

but are, nevertheless, popular and annual local tourism visit days are measured in the millions.

Although the primary air carrier airport is located north of Jacksonville, the bulk of the region’s population and 

almost its entire tourism related infrastructure is located south of downtown Jacksonville and south and east of 

the St. Johns River with a center of gravity at St. Augustine. If the airline industry were to come today, for the first 

time, to Northeast Florida, the first air service would certainly be at Northeast Florida Regional Airport.

The Northeast Florida Regional Airport is a unique aviation facility. It is convenient to the major highways of the 

area and features a well-designed and ultra-low-cost airline terminal facility. On the field are extensive aviation 

related industrial facilities that contribute significant rental income to the airport and thus lower the facilityrelated cost burdens of scheduled air service, while contributing substantially to the local economy.

The Airport had scheduled air service briefly in the last decade. Low-cost carrier SkyBus Airlines flew from 

Northeast Florida Regional Airport from July 2007 through April 2008. During eight months of service Northeast 

Florida Regional was a traffic and revenue star in the fledgling SkyBus route system. Over 54,000 enplanements 

and 108,000 O&D passengers used the Airport during the brief period that SkyBus provided service. Despite 

Skybus’ success in Northeast Florida, its larger business plan was not prepared for the impending challenges in 

the airline industry and service ceased in April 2008. However, the Airport and its surrounding communities 

discovered that air service at Northeast Florida Regional can generate significant traffic and economic benefit. 

For that reason, the Airport and its supporters have continued to work to recruit various airlines to consider the 

enormous potential of this market.

To entice air carrier operations, the Airport and one of its Fixed Based Operators have developed a complete 

and low-cost ground handling service package, including above and below wing and fuel-into-plane service. 

This ground handling service package is available to any qualified airline and the attractive rate structure is 

long-term. In fact, operating costs for the airlines would be so low, the airport does not offer an introductory 
 

 

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incentive package. The Airport has in place today the infrastructure to handle several hundred thousand 

annual passengers with airport related costs well below those at Jacksonville or Daytona Beach.

The Airport and its partners need marketing dollars to aid prospective airlines in effectively marketing the 

Northeast Florida Regional Airport as a gateway to the region. This Grant application requests $250,000 in 

Department funding matched by $150,000 in local non-airport funds and $100,000 in local Airport funds. The 

total of $500,000 will give the Airport the final tool it needs to successfully recruit new air service to St. Augustine. 

The new service will lower the cost of air travel to Northeast Florida, improve access to the region for tourists, 

residents, and businesses, and thus confer a significant local economic benefit. This modest Grant funding 

request is entirely consistent with the purpose of the Grant Program and Department funds will enable new air

service that will have a significant positive local economic impact. 

AIR SERVICE OVERVIEW

Catchment Area

Northeast Florida Regional Airport (UST) is situated less than 

five miles from Historic St. Augustine and less than twenty miles 

from Ponte Vedra. There are nearly 1.5 million people within a 

sixty minute drive of the airport. This includes substantial 

portions of Jacksonville and its suburbs, primarily south and 

east of the St. Johns River.

The St. Johns River is a defining characteristic of Northeast 

Florida’s geography. There are only a few crossing points for 

the river, including several downtown bridges, and crossings 

on the I-295 beltway. Since the primary air service airport is 

north of the river, Northeast Florida Regional Airport is often 

closer and easier to access, even for residents of Jacksonville. 

In addition, the majority of the region’s tourism assets, 

including golf courses and hotels are south of the river.

Exhibit 1: Drive Time Map for Northeast

 Florida Regional Airport

Source: Sixel Consulting Group

Source: Sixel Consulting Group
 

 

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Exhibit 2: Northeast Florida Air Service Route Map

Source: OAG / UBM Aviation Schedules

Existing Air Service

Jacksonville International Airport (JAX) is the 

primary air carrier airport for Northeast Florida. 

The airport hosts all four legacy airline systems 

as well as low fare carriers Southwest/AirTran 

and jetBlue. Together, the six airline systems 

offer 28 nonstop destinations from JAX. 

Daytona Beach International Airport (DAB) is 

located at the southern edge of Northeast 

Florida. It hosts flights on Delta and US Airways 

to their Atlanta and Charlotte hubs.

Over 40% of Northeast Florida commercial 

flights in 2012 are scheduled to be operated 

with regional jet aircraft, providing over 25% of 

the regional seat capacity. These aircraft have much higher costs per seat mile based on structural issues, 

including fuel costs and profit margins paid to regional jet providers. In order to maintain profitability, airlines 

must pass these higher costs along to consumers, which in Northeast Florida manifests as higher yields.

The Northeast Florida market is dominated by 

Southwest and Delta. Southwest is the market 

share leader at Jacksonville International 

Airport. Delta’s services at Daytona Beach, 

however, propel it to the regional market share 

leader. US Airways is the third largest carrier on 

Florida’s Northeast coast. The region’s lowest 

cost provider, AirTran Airways, has been 

acquired by Southwest and will soon 

disappear. Today’s lowest cost airlines like 

Allegiant, Spirit, and Frontier do not have any 

operations in the region.

Exhibit 3: Northeast Florida Air Carrier Market Share

Source: U.S. DOT Data, Table DB1A
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

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Skybus at Northeast Florida Regional Airport

Skybus Airlines of Columbus, Ohio, first took to the skies in May 2007. Service to Northeast Florida Regional 

Airport began in July, becoming the airport’s first commercial airline. The carrier found quick success in 

Northeast Florida with initial load factors reaching 82% by November. By January 2008, services were increased 

with an additional flights and new flights from Portsmouth, New Hampshire, and Greensboro, North Carolina. 

Customers responded as service was added from these substantial markets without nonstop flights.

Unfortunately, the start-up carrier was ill-prepared for the economic environment it found itself in. 

Management was not ready for the oil spike of 2008 which saw oil trading at over $147 per barrel. The 

company’s rapid growth plan drove it to attempt markets elsewhere in its network that were unsustainable As 

all of these issues came together, the company ceased 

operations In April 2008. Media coverage of the carrier’s 

operational problems in its hometown of Columbus likely 

led to the poor performance in February 2008.

Exhibit 4: Map of Skybus Flights from 

 Northeast Florida Regional Airport

Source: U.S. DOT Data, T-100

Exhibit 5: Skybus Statistics from Northeast Florida 

 Regional Airport 

Source: U.S. DOT Data, T-100

Note: Skybus did not file statistics beyond February 2008
 

 

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AIR SERVICE NEEDS AND DEFICIENCIES

Tourism Industry

Tourism is a major industry in the Northeast Florida region. The St. 

Augustine area alone hosts 3.4 million annual overnight visitors per 

year. Annual regional tourism spending of an estimated $634 

million creates and supports over 11,000 local jobs.

The coastal area of Northeast Florida is marketed as Florida’s First 

Coast due to its historical significance. In fact, Florida tourism was 

born in St. Augustine in the late 1800’s with the arrival of Standard 

Oil mogul Henry Flagler. Flagler created the Florida East Coast 

Railroad and developed destination hotels along its path, bringing the first major influx of tourists to Florida. 

The First Coast has more tourism attractions than any other Florida coastal area:

 Historic sites including Historic St. Augustine, the oldest European settlement in North America (1565).

 Numerous sites that mark the progress of St. Augustine from the Spanish settlement period to the birth of 

Florida tourism to the conflicts of the American Civil Rights movement in the 1960s.

 The area is home to two PGA golf tour events, the World Golf Hall of Fame, the World Golf Village and 

fourteen public golf courses, and over 1,300 holes.

 Over 90 marinas and over 10,000 locally based motor and sail boats.

 Miles of uncrowded beaches and world renowned deep sea or fresh water fishing.

To host all these visitors, St. Johns County alone has over 6,000 total hotel rooms, and a similar number of other 

properties such as time-shares and rental homes. According to the University of Florida GeoPlan Center, there 

are over 27,000 hotel rooms within an hour drive of Northeast Florida Regional Airport. There is great diversity in 

the local lodging infrastructure from internationally known resorts such as Ponte Vedra or the Marriott at 

Sawgrass, to camping and trailer sites. For the year ended October 2011, the average visitor stay in the region 

was 5.39 days, the hotel Average Daily Rate was $100.45 and the local occupancy rate was 56.7%.
 

 

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This vast local tourism industry competes for tourism visitors and tourism 

dollars with other warm weather beach locations and venues in Florida, 

on the North American continent, and in the Caribbean. But the region 

competes with a distinct and significant disadvantage; a lack of leisure 

oriented air service and resulting high average fares that drive some 

tourism visitors to other destinations. In fact, this was noted in the March 

2010 St. Johns County Destination Master Plan which indicates that the 

lack of air service is perceived by meeting planners as a barrier for 

considering the First Coast. The report goes on to acknowledge that the current conference business and 

facilities that are available rely primarily on drive traffic.

St. Johns County Economic Base

While tourism is a very large and important part of 

the Northeast Florida economy, it is not the only 

sector that would benefit from improved air service. 

The St. Augustine area is home to a number of 

diverse businesses with diverse travel needs, 

including:

 The PGA Tour employs 620 at is 

headquarters in Ponte Vedra.

 The ATP World Tour offices are located in 

Ponte Vedra.

 Northrup Grumman employs over 1,000 people at an aircraft manufacturing, upgrade, and overhaul 

facility located at the Northeast Florida Regional Airport.

 MDI Holdings is a Nocatee-based Healthcare Information Systems specialist.

 Rulon International manufactures specialized acoustical wood panels for walls and ceilings.

 Carlisle Interconnect Technologies is a St. Augustine specialty manufacturer of high-performance wire 

and cable.

 Locally-based Ring Power sells and repairs heavy machinery from Caterpillar with 550 local employees.

 Hydro Aluminum of Linthicum Heights, Maryland, operates a tubing fabrication facility in St. Augustine.
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

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Capacity Reductions in Northeast Florida

While First Coast air service might be described as 

adequate by some, the fact is that air service has 

declined substantially. In 2010, capacity by the 

airlines has been reduced by 5% versus 2000. The seat 

capacity reduction in Northeast Florida is greater than 

the 2% reduction nationally during the same decade. 

However, local population increased 18%, about 8 

points greater than the national rate, leading to a 

decline in annual airline seats per capita of just under 

20% in Northeast Florida. This compares to a national 

reduction in airline seats per capita of 10%. In other 

words, Northeast Florida has lost airline seats at a per 

capita rate twice that of the national average. A 

symptom of this capacity loss is the fact that, since

2008, nonstop flights to twelve cities from Northeast 

Florida have been eliminated from airline schedules.

The High Cost of Air Service in Northeast Florida

The average one-way domestic fare from Jacksonville 

in 2011 was $163, an increase of 12% versus the 

previous year. Daytona Beach’s average one-way 

domestic fare was $155 and similarly increased 7% 

versus 2010. 

When compared to other airports in Florida, average 

fares in Northeast Florida are higher than comparable airports. Fares from Jacksonville are 7% higher than 

Sarasota/Bradenton, 11% higher than Fort Myers and Tampa, and 18% higher than Orlando and Fort 

Lauderdale. Average domestic fares in Jacksonville are double or more than the ultra-low cost carrier airports 

at Sanford, St. Petersburg, and Punta Gorda.

Exhibit 6: Growth Rate of Airline Seats Nationally and

 from Northeast Florida 

Source: U.S. DOT Data, T-100 and U.S. Census Bureau

Destination End of Service Last Carrier

Los Angeles Jan-2008 Delta

Columbus Feb-2008 Skybus

Greensboro Feb-2008 Skybus

Portsmouth Feb-2008 Skybus

Austin Aug-2008 ExpressJet

Kansas City Aug-2008 ExpressJet

Raleigh/Durham Aug-2008 ExpressJet

Indianapolis Aug-2009 Southwest

Gulfport/Biloxi Dec-2009 Continental

St. Louis Apr-2010 American

Cleveland Apr-2011 Continental

Exhibit 7: Destinations Which Have Lost Nonstop 

 Flights from Northeast Florida 

Source: U.S. DOT Data, T-100 Bureau
 

 

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Yield, which is the price 

passengers pay per mile 

traveled, from Jacksonville 

increased by 12% year-overyear to 15.9 cents per mile. 

Yield from Daytona Beach 

incased 8% from 2010 to 14.3 

cents per mile. 

When compared to the rest of 

Florida, yield in Northeast Florida 

is much more comparable to 

much smaller communities like 

Pensacola and Key West instead of its peer group. In fact, Jacksonville’s yield is 20% greater than Tampa, 28% 

greater than Fort Myers, 28% 

greater than Orlando, and 39% 

greater than Fort Lauderdale. 

Yield from Jacksonville is over 

60% higher than the low-cost 

carrier dominated airports at 

Sanford, St. Petersburg, and 

Punta Gorda.

Exhibit 8: Average One-Way Fare from Florida Airports 

Source: U.S. DOT Data, Table DB1A

Exhibit 9: Average Passenger Yield from Florida Airports 

Source: U.S. DOT Data, Table DB1A
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

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STRATEGIC PLAN FOR NEW AIR SERVICE

Northeast Florida Regional Airport believes that in order to successfully recruit air service, we need to meet the 

needs of three different business models:

 Small Jet Legacy Carriers for access to major carrier hubs and networks.

 Ultra-low cost carriers which can provide point-to-point service in certain types of city-pairs.

 Regional / niche carriers which can provide specialized intra-state air service.

Although the three business models are very different, they have demands that are similar to those of a small 

airport like Northeast Florida Regional. All of these carriers demand a low-cost, yet efficient airport, an ultraconvenient terminal building, and appropriately scaled amenities. Thus, the Airport’s guiding strategic 

principals are:

 Develop a state-of-art airport facility that can offer ultra-low costs for airlines, give passengers a 

pleasant transit experience and that is convenient to all of Northeast Florida.

 Build a partnership with on-field Ground Handling and Fueling companies to develop a complete, lowcost ground handling package, including above and below wing service and low-cost fueling service.

 Bring together the local tourism industry and economic development organizations via their 

associations, and reach agreement that potential new carriers will be able to reach commercial terms 

on the third-party sale of Northeast Florida hotel/motel rooms, rental cars and other leisure activities via 

the carrier’s ancillary service offerings. 

 Recruit carriers aggressively; listen to their needs and concerns and respond as possible.

 Build a significant marketing and advertising fund for use in partnership with carriers to support their 

market entry and address their number one concern: how to market new air service to Northeast 

Florida, which has not traditionally had such service.

All of the above principals are in place except for the development of a significant marketing and advertising 

fund for use in partnership with carriers to address their concern about adequate marketing of new Northeast 

Florida air service.

The Airport seeks to put that last principal in place via this Grant application for marketing funding.
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

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Strategic Plan for Use of Marketing Funds

The exact marketing strategy to be employed will not be determined until after the airport and carrier have 

reached an agreement. However, the marketing plan will be tailored to the type of service recruited:

 Small Jet Legacy Carriers will demand significant marketing in our region to inform residents that service 

from Northeast Florida Regional Airport is available, affordable, and convenient. We would also 

envision a targeted campaign to the legacy carrier’s frequent flyers who travel to our area and a 

targeted campaign to ensure local businesses are able to use the new air service.

 Ultra low-cost carriers are likely to treat Northeast Florida primarily as a destination. Marketing efforts in 

these cases will be focused on the origin market. In most cases, the carrier will also be working with the 

origin airport. We envision these marketing efforts to be collaborative efforts.

 Regional / niche carriers will require a combination of marketing efforts within our region and the origin 

region of each route. However, because these tend to be niche routes with a specific customer base 

in mind, the marketing campaign would be tailored to the expected passenger base.

While the details of the exact media to be used cannot be known at this time, we expect marketing 

campaigns to include;

 Radio promotions and ticket/hotel give-a-ways.

 Billboards emphasizing the destination and carrier in addition to the airport.

 E-mail and postal mailings to targeted potential customers.

 Online advertising tied to internet search engines and online travel agencies key to searches about 

travel to Northeast Florida or the markets served with our new air service.

 Grass roots efforts in our community designed to maximize local exposure.

 Close coordination with existing destination marketing campaigns outside of this program, organized by 

other organizations such as the St. Augustine, Ponte Vedra, and the Beaches Visitors and Convention 

Bureau, the St. Johns County Tourism Development Council, or the St. Johns County Chamber of 

Commerce.
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

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Air Service Development Efforts

The Northeast Florida Regional Airport has been committed to 

the development of air service since efforts to support Skybus 

began in 2007. Even though the Skybus was not successful, 

the airport, with the support of our community, has had an 

unwavering commitment to restarting commercial air service. 

In the past five years, we have had over 40 meetings with 

airline executives. Airport representatives have attended 

industry conferences every year, even setting up a display 

booth and sponsoring events at air service development 

conferences. This year, we are preparing to hire a director of 

business development for the airport whose responsibilities will 

include a focus on air service development.

Public-Private Partnerships

The Airport’s government and private sector partners in air service development include:

 The City of St. Augustine – The oldest city in North America is an active supporter of the airport. 

 St Johns County Tourism Development Council – The Mission Statement of the TDC is to enhance, 

advertise and promote St. Johns County as a desirable travel destination, attracting visitors and 

encouraging visitor expenditures across all segments of the County’s tourism and travel industry.

 Professional Golfers Association – The PGA hosts at least two events annually in the St. Augustine area 

and is a strong advocate for local air service. The World Golf Hall of Fame is also located in the area.

 St. Augustine – Ponte Vedra & Beaches Visitors & Convention Bureau (VCB) - The mission of the VCB is to 

brand and market the destination globally as a premier leisure, convention and business destination; to 

communicate the area's assets and inherent benefits; and to facilitate the opportunity for partners to 

promote their individual businesses within that framework.

 Galaxy Aviation – Galaxy is a full-service Fixed Based Operator with six locations nationwide.

 St. Johns County Economic Development Council – The Council has 304 members and its mission is to 

bring new business into the community and to help existing business and industry to prosper.

2008 2009 2010 2011 2012

Silver (Gulfstream) x x x x

Spirit x x x

Alaska/Horizona x

Southwest x x x

Vision x x

United x x x

Southwest x x x

Allegiant x x x x x

Republic Holdings x x

Pinnacle x

AirTran x x x

Frontier x x

Direct Air x

Branson Air Express x

Viva AeroBus x

PEOPLExpress x

City Link Air x

Exhibit 10: Meetings with Airlines 2008-2012

Source: Northeast Florida Regional Airport
 

 

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Funding Plan

Northeast Florida Regional Airport 

is requesting grant funds in the 

amount of $250,000 from the 

Department. This funding will be 

matched dollar-for-dollar by the 

airport operator, St. Augustine – St. 

Johns County Airport Authority and 

the St. Augustine, Ponte Vedra, 

and the Beaches Visitors and 

Convention Bureau. Thus the 

federal government is being asked 

to fund only 50% of the $500,000 

marketing project.

While we cannot know the exact expenditure rate for Grant funding, we believe that Grant supported 

marketing efforts will be distributed throughout the year 2012 and 2013, as appropriate for optimum support of 

new air service. Thus, the Airport requests that its Grant have at least a two-year term.

Implementation Timeline

Applications for Small Community Air Service Development Grants are due to the department on June 11, 

2012. It is anticipated that 

awards will be granted in the 

Third Quarter of 2012. Based 

upon that timeline, the airport 

has developed the timeline 

displayed in Exhibit 11. The 

timeline is tentative and will be 

driven by numerous items 

outside the airports control, 

Line Sub Total Total Amount

1 $ 250,000

2 $ - 

3a Airport cash funds $ 100,000

3b Non-airport cash funds $ 150,000

3 $ 250,000

4 $ 500,000

5a Airport In-Kind contribution** $ - 

5b Other In-Kind contribution** $ - 

5 $ - 

6 $ 500,000

In-Kind contribution

TOTAL IN-KIND CONTRIBUTION (5a+5b)

TOTAL PROJECT COST (4+6)

Description

Federal amount requested

State cash financial contribution

Local cash financial contribution

Total local cash funds (3a+3b)

TOTAL CASH FUNDING (1+2+3)

Exhibit 11: Project Cost 

Source: Appendix C, Item E

Date Activity Status

June 2012 Complete and File Grant Application via Grants.gov. Complete

Submit Support Letters from carriers and community interests Complete

Q3 2012 Reveive Grant Award and Negotiate Details with the Department

Q4 2012 Secure Commitment from Carrier to Initiate Service

Begin Marketing Activities when Carrier begins to sell tickets

Work with Carrier to monitor bookings

Work with Tourism Development Council to monitor interest

Q1 2012 Launch new service with public relations events

Continue to monitor bookings and interest

Begin monitoring of DOT data to complete feedback loop

Beyond Continue marketing as appropriate through Q2 2014

Exhibit 12: Implementation Deadline 
 

 

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including the Department’s granting of awards and air carrier start dates. The airport will take all actions 

necessary on its part to remain on the timeline illustrated.

Route to Sustainability

Marketing and promotion alone cannot make a new air service successful, nor be its downfall. However, the 

Airport and all Grant stakeholders recognize that marketing and promotion are one essential element of a 

successful new air service.

The Airport has a comprehensive airport facility and ground handling package that complements the 

marketing and promotional efforts this Grant will support. These two key elements, combined with substantial 

local funding, a passionate commitment to make air service happen at Northeast Florida Regional Airport, and 

a commitment to closely monitor new route performance, suggest that new air service at Northeast Florida 

Regional will be successful. We will also be prepared to make mid-course adjustments in strategy and tactics, 

as needed. The Airport and its local partners understand the need for success and will commit additional 

resources, as needed, to ensure that success.

While the shutdown of SkyBus in 2008 was not in any way the fault or responsibility of the Airport, that sudden 

end of a popular air service is still well remembered. The Airport and its local air service development partners 

have no intention of allowing a repeat of the SkyBus shutdown in late March of 2008.

Monitoring Grant Progress

The airport will monitor performance of the grant and submit quarterly summaries to the Department. 

Performance measurements will include:

 Status and activity related to air service recruitment efforts.

 Communications with the air carrier to review advanced bookings.

 Monitoring of Tourist Development Council website and inquiry activity for trends.

 Review and Monitoring of Department data sources including T-100 and Table DB1A.
 

 

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Legal Sponsor

The St. Augustine – St. Johns County Airport Authority, operator of Northeast Florida Regional Airport, is the legal 

sponsor for this project. Executive Director Edward Wuellner, AAE, will be responsible for the administration of 

the grant. Oversight will include (but not be limited to):

 Liaison with the Department, including the timely filing of all quarterly Grant status update reports

 Conclusion of all agreements with prospective airlines to serve the Airport

 Coordination and oversight of the implementation of Grant-supported marketing and promotional 

efforts

 Oversight and coordination of the regular performance reviews of Grant-supported efforts to ensure 

program success

 Approval of all expenditures of Grant funding, in close coordination with the Department and Grant 

program stakeholders

The contact information for the Legal Sponsor is:

Northeast Florida Regional Airport 

Edward R. Wuellner, AAE

Executive Director

4796 U.S. 1, North,

St. Augustine, Florida 32095

904.209.0090

erw@sgj-airport.com
 

 

St. Augustine – St. Johns Country Airport Authority and Northeast Florida Regional Airport

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

22

SUMMARY

If the Airline Industry were to first come to Northeast Florida today, the first flights would not be at Jacksonville 

International or Daytona Beach, but at Northeast Florida Regional, an ultra-low-cost airport perfectly located in 

the center of the region’s population and tourist attractions.

But the Airline Industry is already in Northeast Florida and at the aforementioned Jacksonville and Daytona 

Beach facilities. The result of that is air service distant from the true destination of tourist visitors and air service 

priced significantly higher than at other Florida airports like Orlando, Tampa, Fort Myers or Fort Lauderdale.

In this Grant proposal the Northeast Florida Regional Airport is seeking a modest amount of Grant funding (with 

a healthy local cash match) for the marketing and promotion of new air service at the airport.

The Airport already has in place an innovative and creative package of airport facility and ground handling 

services that will allow new entrant carriers to operate at much lower costs than other regional airports.

The need for low-fare air service at Northeast Florida Regional is clear:

 Northeast Florida air travelers using Jacksonville or Daytona Beach pay significantly higher average 

fares and exceedingly higher yields than do passengers using other airports in Florida.

 In Northeast Florida, tourism is a critical aspect of the economy. Tourist lodging and leisure venues in the 

region must compete for tourist visitors and dollars with other parts of the state. High airfares and limited 

nonstop low fare service is costing northeast Florida tourist visitors and dollars.

 Skybus served Northeast Florida Regional for less than a year. Yet this essentially unbranded startup 

airline generated over 107,000 O&D passengers in the few months it provided service at the airport. The 

brief service does prove that “fly it and they will come” applies to this Airport.

 The Airport and its local partners have a well-structured plan to ensure that new low-fare air service that 

is introduced will be successful.

This Grant application is both modest in its funding need and precise in its focus. It is precisely the type of 

innovative and creative air service development effort the SCASD program was intended to support.

The Airport and its partners thank the Department for its consideration of this application.
41* 

ST. AUGUSTINE 

PONTE VEDRA 

ON FLORIDA'S HISTORIC COAST 

Aloha Ley 

Associate Director 

Small Community Air Service Development Program 

United States Department of Transportation 

1200 New Jersey Avenue SE 

Washington, DC 20590 

June 11, 2012 

RE: Support of Northeast Florida Regional Airport Application for Funding Under 

the Department of Transportation Small Community Air Service Development 

Program 

Dear Ms. Ley: 

Representing the tourism industry of Florida's Historic Coast, St. Johns County, 

Florida, I am writing to express my support of Northeast Florida Regional Airport's FY 

2012 Small Community Air Service Development grant submission requesting federal 

funding to support marketing efforts at the airport. 

The Northeast Florida Regional Airport near St. Augustine previously had air service for 

a very short period with Sky Bus. The air service provided was unique to our region 

and competitive with connecting services offered at nearby airports. It also increased 

valuable overnight visitation at our destination which drove lodging, attraction, 

restaurant and retail expenditures. We believe that with the right airline partners, the 

airport can reinvigorate air service on our region once again. The Visitors & Convention 

Bureau is committed to assisting in every way possible including supplementing 

Federal marketing grants. 

Our region has a unique mix of industry, history, and tourism found nowhere else than 

"America's Oldest City." Adding air service to our community's portfolio will help us 

compete for jobs and tourism alike. We have room to grow and air service over our 

airport will play a vital role in that growth. 

The Small Community Air Service Development Program offers the opportunity to 

partner with the Northeast Florida Regional Airport to develop non-stop service to St. 

Augustine. We believe this Grant is essential in bringing new service to our local 

airport. Thank you for your consideration of this grant application. 

Richard Goldman, executive director 

St. Augustine, Ponte Vedra & The Beaches 

Visitors & Convention Bureau 

29 OLD MISSION AVENUE • ST. AUGUSTINE, FLORIDA 32084 

904-829-1711 • FAX 904-829-6149 • WWW.FLORIDASHISTORICCOAST.COM