Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0113

SUMMARY INFORMATION

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: 

Chippewa Valley Regional Airport/Eau Claire County

Name of Signatory Party for Legal Sponsor:

Charity Speich, Airport Manager

DUNS Number:

80-698-9513

EIN/Tax ID:

39-6005694

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

1._CHIPPEWA VALLEY REGIONAL AIRPORT/EAU CLAIRE COUNTY_

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. Chippewa Valley Regional Airport (EAU)

DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY THE FEDERAL AVIATION 

ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO,” PLEASE EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A 

CERTIFICATE OR WHETHER AN APPLICATION UNDER PART 139 IS PENDING.)

 Yes No (explain) X
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113

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

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY. 

1. WI-03

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: Provide Year of grant(s): 2004 and, the text of the Grant agreement 

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

Securing additional service to Milwaukee, WI (MKE) on Skyway Airlines, Improve connectivity to

the national air transportation system for Eau Claire and the surrounding communities, Provide 

intermodal access to area residents via Amtrak service available at Milwaukee, and Increase 

use of services at the Airport to recapture traffic and elevate the Chippewa Valley Regional 

Airport to a secondary airport for the congested Minneapolis/St. Paul Airport.

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

PUBLIC PRIVATE

1. Eau Claire County 1. Chippewa County Economic Development 

Corporation

2. University of Wisconsin-Eau Claire 2. Xcel Energy

3. 3. Chippewa Falls Area Chamber of Commerce

 4. Sacred Heart Hospital

G. PROJECT PROPOSAL:

1. GRANT GOALS: (CHECK ALL THAT APPLY)

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services

Other (explain below)

Marketing and Promotion of air service at Chippewa Valley Regional Airport

X
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113

2 . FINANCIAL TOOLS TO BE USED: (CHECK ALL THAT APPLY)

Marketing (including Advertising): promotion of the air service to the public

Start-Up Cost Offset: offsetting expenses to assist an air service provider in setting up a 

new station and starting new service (for example, ticket counter reconfiguration)

Revenue Guarantee: an agreement with an air service provider setting forth a minimum

guaranteed profit margin, a portion of which is eligible for reimbursement by the

community

Recruitment of Air Carrier: air service development activities to recruit new air service,

including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service;

counted as in-kind contributions only

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

(below wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from participating parties for

the purchase of air travel on an air carrier, with defined procedures for the subsequent 

use of the pledges or the deposited funds; counted as in-kind contributions only

Other (explain below)

Update Passenger Leakage Study to use in conjunction with marketing activities

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $150,000

2 State cash financial contribution $0

Local cash financial contribution

3a Airport cash funds $0

3b Non-airport cash funds $15,000

3 Total local cash funds (3a + 3b) $15,000

4 TOTAL CASH FUNDING (1+2+3) $165,000

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+5) $165,000

J. IN-KIND CONTRIBUTIONS**

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

describe the source(s) of fund(s) and the value ($) of each.

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

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

Process for review on (date) _____________.

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

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

L. IS THE LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

No Yes (explain) 

_____________________________________________________________________________________________
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 1

Legal Sponsor

The Chippewa Valley Regional Airport (CVRA) is the legal sponsor responsible for administering 

the proposed air service marketing and promotion plan. The Airport is a government agency, 

owned and operated by Eau Claire County, Wisconsin.

Chippewa Valley Regional Airport

3800 Starr Avenue 

Eau Claire, WI 54703

Charity Speich, Airport Manager

(715) 839-6241

Charity.Speich@chippewavalleyairport.com
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 2

Contents

LEGAL SPONSOR .....................................................................................................1

INTRODUCTION.............................................................................................................................. 2

AIR CARRIER LETTER OF SUPPORT............................................................................................... 4

OVERVIEW OF THE CHIPPEWA VALLEY REGION........................................................................ 5

CURRENT AND HISTORICAL AIR SERVICE AND DEFICIENCES ................................................... 6

TRAFFIC RETENTION AND LEAKAGE ............................................................................................ 9

AIR SERVICE DEVELOPMENT EFFORTS AND AIR SERVICE MARKETING .................................. 10

STRATEGIC PLAN TO IMPROVE AIR SERVICE THROUGH MARKETING.................................... 12

PUBLIC/PRIVATE PARTNERSHIPS................................................................................................. 18

PREVIOUS SMALL COMMUNITY AIR SERVICE GRANT .............................................................. 19

CONCLUSION.............................................................................................................................. 20

INTRODUCTION

The Chippewa Valley Regional Airport (EAU) herein submits an application for a 2014 Small 

Community Air Service Development (SCASD) Grant. The Chippewa Valley Regional Airport is in 

the Department of Transportation’s Essential Air Service (EAS) program and, accordingly, 

proposes to use modest Federal Grant funding, matched by local non-airport cash to develop 

and implement an aggressive air service marketing program, designed to raise enplanements 

and thus, in the long term, reduce EAS subsidy needs.

Eau Claire’s current air service is operated by SkyWest Airlines operating 50-seat regional jet 

aircraft on twice daily service to Chicago O’Hare International Airport. SkyWest operates the 

service under a codeshare agreement with United Airlines, and the service is marketed using the 

United Express brand. The SkyWest service replaced previous Mesaba Airlines service operated 

under a code share agreement with Northwest Airlines in early 2010. Mesaba operated nonstop 

service to Minneapolis/St. Paul using 34-seat Saab 340 aircraft. 

Dating back ten years, Eau Claire was served without an EAS subsidy by Mesaba under a codeshare agreement with Northwest Airlines. On July 14, 2009, Mesaba filed a Ninety-Day Notice of 

Termination of Service with the Department of Transportation stating it would end service to Eau 

Claire (along with service to seven other communities) on October 12, 2009 unless it was 
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 3

awarded an EAS subsidy. SkyWest was ultimately awarded the EAS contract for service at Eau 

Claire at an annual rate of $1,732,372 and began service on March 1, 2010. SkyWest was 

subsequently awarded a second contract for EAS service at Eau Claire on January 26, 2012 at 

an annual subsidy of $1,733,576 and awarded a third contract on October 21, 2013 at an 

annual subsidy of $1,546,536. It should also be noted the Department of Transportation and 

Mesaba agreed to a subsidy of $574 per flight during the hold-in period from October 12, 2009, 

thru February 28, 2010.

The Airport is seeking $150,000 in federal assistance to develop and implement a strategic 

marketing plan for the promotion of the airport. The proposed marketing plan would utilize grant 

funds to develop a full strategic marketing strategy and advertising plan to use as a guide for all 

future initiatives and ensure all airport marketing activities are aligned with achievable goals and 

industry demands. The grant funds would be used to advertise the airport based on the 

recommendations of the strategic marketing plan. The Airport has assembled a coalition of

local support to showcase the importance 

of effectively marketing the airport. A 

portion of Eau Claire County’s financial 

contribution will be the local, matching 

funds for the grant. Although SkyWest and 

United are strong airline partners with a welltimed flight schedule, SkyWest is not 

generating enough traffic in Eau Claire to 

eliminate the subsidy provided by the EAS 

Program; significant traffic leaks from Eau 

Claire to other airports in the region. Small Community Air Service Development Grant funding 

could be used to build awareness of Eau Claire’s existing air service and reduce leakage from 

the Airport.

“The EAU Average Domestic 

Fare Increased 39.7% to $209 in 

Fourth Quarter 2013... 

contributing to the significant 

amount of passenger leakage.”
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 4

AIR CARRIER LETTER OF SUPPORT
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 5

OVERVIEW OF THE CHIPPEWA VALLEY REGION

Located in the Western part of Wisconsin near the Chippewa River, Chippewa Valley Regional 

Airport is approximately 180 miles from the capital city of Madison and approximately 90 miles 

east of Minneapolis/St. Paul International Airport. The Chippewa Valley Regional Airport is 

owned by Eau Claire County, operated by Chippewa and Eau Claire Counties, and physically 

resides in Chippewa County, Wisconsin. Combined, the total population as of 2013 was 164,570. 

Median household income for the two counties equates to $49,074. The cost of living has 

continued a gradual decline as the long term trend line was well under the national average in 

2012. Eau Claire received an overall ranking of 91.0, which was well under the national average 

of 100. Low cost of living is advantageous for the city as well as its residents and encourages 

cultural diversity. The ability for individuals to live affordably is indicative that they will remain in 

the area longer while contributing 

to an ever increasing population 

base with which the Airport can 

draw from. 

Key economic sectors for the 

counties of Eau Claire and 

Chippewa are wide ranging. The 

area is home to numerous 

employers including the 

corporate office of home 

improvement retailer Menards, 

Inc. The University of Wisconsin –

Eau Claire is another large employer in the region. One corporation, Hutchinson Technologies, is 

a global supplier of suspension assemblies for disk drives. Their product is in virtually every size 

and type of disk drive; from those used in desktops to those used in enterprise computing 

throughout the world. In 2013, Eau Claire was named second in the United States for 

construction job growth; it was up 31% versus 2012 according to data from the Associated 

General Contractors of America. In addition to a diverse economy, Eau Claire’s economy is 

thriving. Eau Claire’s May 2014 unemployment rate stood at 4.7% versus the Wisconsin statewide 

unemployment rate of 5.5% and the U.S. national unemployment rate of 6.3%. 
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 6

CURRENT AND HISTORICAL AIR SERVICE AND DEFICIENCES

As illustrated in Exhibit 1, airline capacity in Eau Claire has declined from 229 scheduled seats per 

day each way to just 100 seats per day each way, a decline of 56.3%. Fortunately, traffic has 

declined just 18.3%, and the average domestic one-way fare is up just 8.1% over the same 

period to $192 in 2013. Although the average domestic fare is up just 8.1% over the last ten 

years, it is up 23.7% since a ten year low in 2011.

Exhibit 1. Eau Claire Seats per Day Each Way, Domestic Passengers Per Day Each Way (PDEW) and 

Average Domestic One-Way Fare – Annual Data – 2004-2013 (U.S. DOT DB1B Data).

 

 

Eau Claire’s domestic traffic declined significantly three times between 2005 and 2009. 

Between 2005 and 2006, traffic declined 16.7% to 53 PDEW, between 2007 and 2008, traffic 

declined 21.1% to 41 PDEW and finally declined 30.0% between 2008 and 2009 to just 29 PDEW.

The decline between 2007 and 2008 occurred as Eau Claire’s average domestic fare increased 

to an all-time high of $223, and the final decline occurred as capacity fell 13.1% to 172 seats per 

day each way and the average domestic fare remained above $200. The final decline also 

coincided with Mesaba’s Notice of Termination indicating it would discontinue service to Eau 

Claire unless it received a subsidy under the Essential Air Service Program. Although capacity 

continued to decline as Eau Claire transitioned from Mesaba’s service to SkyWest’s twice-daily 

229

195

186

200

198

172

145

110

100 100

64 63

53 52

41

29

42 47

53 52

$177

$190

$197

$189

$223

$202

$162

$155

$171

$192

$0

$50

$100

$150

$200

$250

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Average One-Way Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way Domestic PDEW Average Domestic One-Way Fare
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 7

service to Chicago and has settled at 100 seats per day each way, domestic traffic has 

increased 81.4% from the low of 29 PDEW in 2009 to 52 PDEW in 2013.

Although Eau Claire’s average domestic fare declined from a high of $223 in 2008 to a ten-year 

low of $155 in 2011, it has increased 23.7% since 2011 to $192 in 2013 and now exceeds the 

average domestic fare of $181 at the average Lower 48 airport. 

Compared to the average domestic fare at the average Lower 48 airport, Eau Claire’s average 

fare has increased at a faster rate – 23.7% -- from $155 in 2011 to $192 in 2013 as illustrated in 

Exhibit 2. Over the same period, the average domestic fare at the average Lower 48 airport 

increased just 5.6% from $171 in 2011 to $181 in 2013.

 

Exhibit 2. Eau Claire Average Domestic One-Way Versus Average Domestic Fare at the Average Lower 48 

Airport – Annual Data – 2004-2013 (U.S. DOT DB1B Data).

Exhibit 3 illustrates the relationship between Eau Claire’s capacity, domestic traffic and average 

domestic fare over the last nine quarters through fourth quarter 2013. Although capacity has 

been flat over the last nine quarters, the average fare exceeded was $220 in first quarter 2013 

and $209 in fourth quarter 2013. This compares to an average fare of $180 in first quarter 2013 at 

the average Lower 48 airport and $180 in fourth quarter 2013 as illustrated in Exhibit 4.

$177

$190

$197

$189

$223

$202

$162

$155

$171

$192

$134 $136

$149 $149

$159

$143

$157

$171 $177

$181

$0

$50

$100

$150

$200

$250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Average Domestic One-Way Fare

Eau Claire Average Domestic One-Way Fare

Average Lower 48 Airport Average Domestic One-Way Fare
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 8

Exhibit 3. Eau Claire Seats per Day Each Way, Domestic Passengers Per Day Each Way (PDEW) and 

Average Domestic One-Way Fare – Quarterly Data – Fourth Quarter 2011 through Fourth Quarter 2013 (U.S. 

DOT DB1B Data).

 

Exhibit 4. Eau Claire Average Domestic One-Way Versus Average Domestic Fare at the Average Lower 48 

Airport – Quarterly Data – Fourth Quarter 2011 through Fourth Quarter 2013 (U.S. DOT DB1B Data).

99 100 100 100 98 100 100 100 99

52 55 56 53 49 48

56 58

48

$150 $151

$165

$180

$190

$220

$166

$178

$209

$0

$50

$100

$150

$200

$250

0

50

100

150

200

250

2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4

Average One-Way Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way Domestic PDEW Average Domestic One-Way Fare

$150 $151

$165

$180

$190

$220

$166

$178

$209

$172 $176

$182

$174 $175 $180

$178

$184

$180

$0

$50

$100

$150

$200

$250

2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4

Average Domestic One-Way Fare

Eau Claire Average Domestic One-Way Fare

Average Lower 48 Airport Average Domestic One-Way Fare
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 9

TRAFFIC RETENTION AND LEAKAGE

Based on a traffic retention and leakage study completed in 2012 using year-end first quarter 

2012 data, Chippewa Valley Regional Airport retains just 12.1% of all traffic generated in its 

catchment area; 79.7%, or 380 passengers per day each way leak to and from Minneapolis/St. 

Paul International Airport; 7.0% of the traffic leaks to Madison and 1.2% of the traffic leaks to 

Wausau/Stevens Point.

Exhibit 5. Traffic retention at Chippewa Valley Regional Airport and leakage to Minneapolis/St. Paul, 

Wausau/Stevens Point and Madison (Sixel Consulting Year-End First Quarter 2012 Traffic Retention and 

Leakage Study Data).

Although a significant amount of traffic likely leaks from Eau Claire to an alternate airport 

because nonstop service exists from the alternate airport to a traveler’s final destination, 

because more flights are available or because lower fares may be available from an alternate 

airport, some traffic may leak simply because travelers are not aware of the United Airlines

coded service available from Chippewa Valley Regional Airport. An effective marketing 

program may enable the Airport to retain more traffic if awareness of the existing service 

increases.

7.0%

1.2% 79.7% 12.1%
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 10

AIR SERVICE DEVELOPMENT EFFORTS AND AIR SERVICE MARKETING

The Chippewa Valley Regional Airport has been in the EAS program for a number of years with 

the first carrier being Northwest Airlines via Mesaba Airlines with service to Minneapolis/St. Paul. 

The 2009 EAS bid cycle found the community presented with a new option: twice daily service to 

Chicago O’Hare on a 50-seat regional jet operated by SkyWest Airlines under the United Airlines 

brand. Therefore, while additional options would have always been appreciated, true air service 

development recruitment efforts were not necessary. However, airport management and their 

consultant did have ongoing phone conversations with not only Mesaba Airlines and Northwest 

Airlines when they were in the market, but now SkyWest Airlines, especially as each two year EAS 

bid cycle comes to a close. 

Previous EAS bids from SkyWest Airlines did include marketing assistance funds in the submission; 

2011 bid for example had $20,000 allocated for marketing assistance. The current contract does 

not provide for any marketing assistance. One can assume the lack of airline marketing funds 

implies the airline feels confident that the area knows of the service; however the average load 

factor suggests this assumption to be inaccurate. 

The Chippewa Valley Regional Airport maintains an outstanding relationship with Sixel Consulting 

Group as their partner in air service development efforts. CVRA has retained Sixel Consulting 

Group for several years now and works with them to ensure the Chicago O’Hare route continues 

to be viable as well as communicate with any other charter or potential low cost carrier option. 

Sixel Consulting Group did assist the Airport in December of 2009 with the transition between 

essential air carriers, Northwest Airlines to SkyWest. This included document preparation for 

community distribution as well as connection data to ensure the community understood the 

value of the ORD hub. More recently, Sixel Consulting Group participated in the Master Plan 

Update, completed in 2012, for the airport providing not only a “leakage study” but also an 

estimate on future air carrier operations and equipment type at the Airport. 

Current Air Service Marketing – The Chippewa Valley Regional Airport maintains an ongoing air 

service marketing effort, but the budget allocation is tight and the staff resources to accomplish 

some of the necessary community outreach efforts are not available. In the days of trying to do 

more with less, the marketing program’s reach has been diminished. Below is a list of the variety 

of media channels the Airport has been active in:
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 11

The advertising focused solely on the daily flights offered by SkyWest from the Chippewa Valley 

Regional Airport as depicted in the bus ad example included in this document. With Northwest 

Airlink leaving the market to newcomer SkyWest Airlines, the Airport felt compelled to advertise 

in as many venues as possible in an effort to educate the community on the new carrier and 

service. However, an actual marketing plan with quantifiable 

metrics to track the effectiveness of the ads was never 

developed. Ads were placed in various forms of media 

without a full plan in place. 

While the Chippewa Valley Regional Airport recognizes 

incorporating marketing activities into the operating budget 

is crucial to continued success of the service and airport 

passenger boardings, limited funds in past years have 

prevented Airport staff from developing and executing a full 

scale marketing plan. As with other similar sized airports, staff 

members often wear multiple hats to ensure the smooth 

operation of the Airport leaving little time to devote to 

marketing and advertising activities. 

With that being said, the Chippewa 

Valley Regional Airport made certain 

to allocate some funds to advertising 

activities throughout the past 5 years. 

2010 through 2013 the marketing 

budget for the entire Airport was 

$25,000 per year with 2014 seeing a slight increase in budgeted amounts at $35,000. Annualized 

spending has been kept at a fairly consistent rate. 

In summary, both the Chippewa Valley Regional Airport and the community it serves realize the 

importance of their local air service. In the EAS program “air service recruitment” is a once 

Marketing and Promotional Activity Summary For Past 5 Years

TV Advertising

Radio Advertising

Online Advertising through limited Websites

City Bus Advertising

Traditional Print-Local Market

Trade Show Exhibits
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 12

every other year exercise and with a United Airlines coded regional jet to a major hub in the 

market, there are not a lot of options for “recruitment”. CVRA has worked hard, within their

budgetary constraints, to promote the service that exists. But given the location of the airport 

and the amount of passenger traffic that is leaking to nearby airports, this has been a significant 

challenge. This challenge can be overcome with an airport specific, detailed marketing plan 

coupled with a strong community engagement tie in. 

STRATEGIC PLAN TO IMPROVE AIR SERVICE THROUGH MARKETING

The Chippewa Valley Regional Airport has one significant positive item working in its favor: the 

airline service SkyWest is offering. With direct, twice daily jet service to Chicago O’Hare, one of 

the largest domestic airline hubs, the service is a package many communities would be envious 

of. Service is provided on CRJ 200, 50-seat aircraft, which is arguably the proper gauge of 

aircraft for the market and route of this distance. SkyWest Airlines is a willing carrier; committed 

to being successful in all markets it serves. This is evident by the letter of support provided with 

this application. The more urgent task of the airport is to continue to develop traffic demand 

and route utilization from the airport, and stop leakage to other nearby airports. 

Funding Plan – This grant application proposes to use modest SCASD funding, coupled with nonairport cash matching funds from Eau Claire County, to fund a broad and multi-phased 

marketing and advertising program in and around the region. The proposed program would be 

directly tied into the detailed marketing plan the Airport is proposing to develop. This plan 

would include quantitative measurements which would measure the effectiveness of any 

campaign initiated for CVRA.

In-Kind contributions are being sought from various local media outlets which may include trade 

advertising or added value to future placement. However, a specific dollar amount cannot be 

identified at this time without knowing if the grant application is successful. Rest assured local 

media firms will be pressed for additional value in any placements in the market and CVRA will 

make the case assisting in this endeavor helps the regional economy flourish. 

The Chippewa Valley Regional Airport has done a respectable job within their current, limited 

budget of marketing and promoting local air service. The phenomenally high leakage rate to 

nearby airports paired with a national shift in travel planning demands a new and more 
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 13

complex approach to local air service marketing. An aggressive and multi-layered marketing, 

promotional and community outreach effort, is proposed for the airport and can be 

accomplished with the help of this funding. 

The Airport would like to utilize grant funds to develop and implement a full air service marketing 

strategy and advertising plan to use as a guide for all future initiatives and ensure all airport 

marketing activities are in line with achievable goals and industry demands. The plan will identify 

airport goals and tactics to achieve each of those defined goals. 

One of the key components of the proposed marketing strategy process will be to determine if 

brand development and creative exercises are necessary in order to find the correct channels 

to advertise on in order to encourage more local travelers to choose to start and end their trips 

from Eau Claire verses driving to a competing airport. 

The marketing strategy will include a full advertising campaign and plan which will be focused 

on increasing awareness and driving travelers to choose to travel from EAU. The plan would 

include a combination of traditional advertising methods and new media methods to advertise 

the current United Airlines service while using the brand identity of the airport to resonate with 

local travelers. 

The advertising plan will work to refine the Airport’s media strategy to reflect national consumer 

shift to online travel planning while simultaneously working to advance familiarity with EAU in the 

local community. The proposed program will aim to support United Airlines with retail 

advertising through traditional methods while also focusing on defining and communicating the 

real customer value of flying from EAU to Chicago O’Hare (ORD) to connect onwards as 

compared to driving to alternative airports. The airport will also look into incorporating a modest 

online travel planning calculator and using social media to create awareness and attract 

travelers in the region. 

The marketing strategy will also include a focused community outreach and corporate travel 

program. By further developing partnerships with local economic development, government 

and tourism partners, the airports can maximize related partnership marketing efforts. 

Partnerships will help the airport maintain a solid image and reputation as strategic air 

transportation leaders in the region. Corporate outreach is also an important component and 
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 14

will be included in an effort to connect with local businesses and identify opportunities to retain 

more local business traffic. 

Funding for the EAU marketing strategy and advertising program would be spread over a 12-

month period aimed at commencing during the second quarter of 2015. To better understand 

the true Chippewa Valley Regional Airport market, the Airport would like to move forward with 

an updated True Market Analysis. Information from the last True Market Study is nearly four years 

old and travel patterns may have significantly changed during that timeframe. Once results of 

the True Market Study are known, the Airport can begin developing specific goals and tactics to 

reach potential passengers. Under this proposed timeline, the detailed marketing plan should be 

established by the end of second quarter 2015 and media placement is targeted to begin 

following the completion of that plan. The media placement will include launching updated 

Airport branded ads in the market. 

Components of the Proposed Chippewa Valley Regional Airport (EAU) Marketing 

Strategy Plan and Advertising Program

True Market Research: In an effort to understand the true markets served by EAU, a “true market” 

study (sometimes referred to as a leakage study) would be conducted utilizing a portion of the 

proposed grant funds. The results of this study will help the airport to showcase itself to airlines 

and also assist in the marketing efforts by allowing EAU and associated marketing consultants a 

“true market” vision for the airport. True Market Studies are a great way to illustrate demand 

that doesn’t show up in traditional data sources. Airlines can see the demand that is not being 

met. 

Benefits of a True Market Study: 

 Air Service Marketing Benefit: Helps to determine “true” number of local PDEW that might 

fly a particular market if additional service was added. 

 Passenger Marketing Opportunities: Allows a deeper look at where passengers are 

coming from, leaking to and will help to determine which geographical areas warrant 

focused advertising efforts and increased paid media spend. 

Traditional Advertising and Marketing Methods: The strategic marketing and advertising plan will 

utilize a combination of traditional advertising and public relations methods paired with 

targeting online and new media methods. The goal of the program will be to connect and reconnect with potential travelers while also increasing brand awareness within the region. 
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 15

Components of the traditional advertising portion of the plan will include: Radio Advertising, TV 

Advertising, Out-of-Home (billboard advertising), and Local Online Advertising (local online news 

banner advertising). On-air/TV spend may be focused on premium placement such as weather 

and traffic sponsorships to ensure maximum value and the largest audience reach available.

The airport will also work to develop brand specific television commercials which will be 

incorporated into the on-air placements and also used in on-line pre-roll elements of the media 

plan. The inclusion of traditional media placement will allow the airport to support local media 

outlets while enhancing relationships with local media partners. The described traditional 

advertising elements will be timed around specific program objectives including the 

incorporation of airline fare sales and specific efforts around Airport brand building and local 

awareness. Recommended media outlets will be determined once the advertising program is 

finalized. 

New Media and Targeting Online Advertising Methods: The plan will also include targeting online 

and new media advertising methods. These efforts will incorporate a combination of: Advanced 

Keyword Targeting, Flight Path Advertising (targeted advertising on Online Travel Agencies), 

Search Engine Marketing and Social Media. These advertising methods will be aimed at 

targeting the potential passenger when they are in the mindset to travel. Targeting online 

advertising will help the airport to reach travelers by incorporating airport / travel related 

keywords paired with geographical and behavioral targeting. When a geo-targeted traveler 

searches for specific airport defined words they will be redirected to an airport related ad while 

surfing on common news sites. Recommended media outlets will be determined once the 

advertising program is finalized. 

Social Media Integration and Website Enhancements: By building an online brand presence 

through social media and website enhancements the airport can forge a stronger connection 

with the traveling public. Ongoing, open communication on these channels can help to foster 

a trust within the online travel community. By creating channels for one-on-one communication 

with airport travelers we can work to humanize the airport travel experience and create 

customers for life, rather than advertising acquaintances. This social media program will allow 

the airport to have a conversation with past, present and future travelers, rather than simply 

allowing travelers to have a conversation about the airport, with no airport involvement. The 

proposed marketing strategy program will work to develop a presence on social media sites 

(Twitter, Facebook, etc.). The program will also look into website enhancements that will help to 
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 16

highlight the Airport brand platform and help drive travelers to book flights from Eau Claire 

though education and offerings. 

A Travel Cost Calculator will also be incorporated into the enhancement program and will be 

aimed at educating local travelers of the true cost involved with traveling from EAU verses the 

cost of driving and parking at a competing airport. A sample of what it might look like is below.

Community Outreach and Corporate 

Support Program: An important 

component of the marketing plan will be a 

community outreach and corporate 

support program. The Airport would like to 

move forward on developing a full plan to 

identify major corporate travel patterns. 

There are a number of corporations 

located in the region including the 

corporate headquarters for Menards. The 

program will work on developing a 

corporate travel program and reaching 

out to travel planners of corporations to 

get more employees to fly from EAU. The 

proposed program will attempt to identify 

the needs of corporate travelers and allow 

the airport in conjunction with airline partners, increase offerings to better accommodate high 

paying business customers. The program will start with the identification of Travel 

Managers/Travel Contacts within top 50 corporations in the region. The next step in the 

program will be to use relationship building tactics and identify ways to encourage travel 

managers to modify travel policies so that all travelers check EAU first before booking from 

another airport. 

The proposed marketing program will also identify community partnerships and advertising 

opportunities including local colleges, sports leagues and events. The sample marketing plan is 

briefly listed in the following chart. 
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 17

Chippewa Valley Regional Airport Sample Marketing Plan

Develop online travel planning site presence

Promote Air Service to ORD based on updated passenger leakage analysis

Focus on Overall Cost of Travel in Comparison to Driving to Alternative Airports

Look at Developing Incentive Program for Corporations to Utilize CVRA

Tactics to Implement CVRA Plan

Traditional Advertising to create a standardized brand position that fits in the market: 

radio, online, outdoor, TV

Begin specific advanced online retargeting campaign 

Implement social media campaigns to target educational institutions and their audience

Corporate outreach through grant partners database information 

Direct corporate incentive program for Airport utilization

Sports/Community Sponsorships

Total Marketing Budget Including Leakage Analysis and Video Creative: $165,000

If awarded the modest grant amount requested, it would be the intent of the Airport to fully 

utilize the grant prior to the end of 2016 with grant close out documents submitted for approval 

late third quarter 2016; well before government deadline. 

Activity/Project Milestone Estimated Date

Grant Award Late September 2014

Documents Fully Executed Early November 2014

Passenger Leakage Analysis Updated 1st Quarter 2015

Detailed Marketing Plan Development Late 1st Qtr. /Early 2nd Qtr. 2015 

Execution of Marketing Plan 2nd Quarter 2015 thru 2nd Quarter 2016

Grant Close out Submitted to DOT 3rd Quarter 2016

The goal of the Chippewa Valley Regional Airport program will be to increase current traffic 

levels by at least fifty percent (50%) from 2013 levels. The detailed marketing plan would include 

future media campaign considerations to provide a continued pathway for passenger growth 

once the modest grant amount was expended. 

The drive radius of the CVRA catchment area does cover a wide area of Western Central 

Wisconsin. These residents in the catchment area are within a two hour drive of direct, Chicago 

O’Hare service at CVRA while still remaining in the State of WI. Crossing the border into 

Minnesota for service out of another major hub, MSP provides an economic benefit to that 

State; not to Wisconsin as a whole. The purpose of this Grant application is to make that

economic value KNOWN, whereas today it is essentially not known statewide or, for that matter, 

anywhere.
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 18

PUBLIC/PRIVATE PARTNERSHIPS

Having a viable airport which provides access to the world is an economic engine in and of 

itself, but the Chippewa Valley Regional Airport has numerous entities supportive of the Airport’s 

goal of improving air service awareness. The Chippewa County Economic Development 

Corporation, the only full time professional organization aimed at the economic development of

Chippewa County, is a strong supporter of the application. Attached to the application is a 

letter of support explaining how increased air service promotion will benefit the area from their 

view point. 

The other large professional economic development agency, Eau Claire Area Economic 

Development Corporation, may provide the Airport with access to their customers through their 

email data base. It would be the intent of CVRA to establish an arrangement to provide 

informational updates to the membership about the benefits of using CVRA thereby promoting 

the air service and brand. 

The Eau Claire Area Chamber of Commerce is another strong supporter in the public-private 

partnership. Without viable, strong air service and the awareness of the capability to utilize the 

local airport, the economic impact, both direct and indirect is reduced. The option may exist to 

partner with them to send out specific CVRA marketing messages geared towards the business 

community via targeted email blasts as part of the marketing campaign. Those details as well as 

other options will be determined should the application be successful. 

Other supporters of the application include the Chippewa Falls Area Chamber of Commerce, in 

addition to a number of private entities including Xcel Energy, Sacred Heart Hospital and the 

University of Wisconsin-Eau Claire. As proof of their support for the Airport, a portion of Eau Claire 

County’s financial contribution to the airport is committed to the ten percent local grant match. 

The incumbent airline also supports the Airport’s effort to increase ridership on the route and as 

evidence, provided a letter of support which is included in this document.
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 19

PREVIOUS SMALL COMMUNITY AIR SERVICE GRANT

The Chippewa Valley Regional Airport was a previous grant award recipient in 2004, but there 

are distinct differences between the previous application and award compared to the one you 

have before you today. A major difference being the status of the airport at the time of the first 

grant: non-EAS status. 

The Chippewa Valley applied for and received a SCASD Grant in September of 2004. The Grant 

was for $500,000 with a local match of $100,000. The goals of the Grant included: securing 

additional service to Milwaukee, WI (MKE) on Skyway Airlines, improve connectivity to the 

national air transportation system for Eau Claire and the surrounding communities, provide 

intermodal access to area residents via Amtrak service available at Milwaukee, increase use of 

services at the Airport to recapture traffic and elevate the Chippewa Valley Regional Airport to 

a secondary airport for the congested Minneapolis/St. Paul Airport. Again, this was filed in the 

pre-EAS era of the Airport. After the grant was awarded and negotiation with Midwest Airlines 

underway, it became clear that a relationship was not possible. Thus, another airline and route 

was sought. 

Chippewa Valley Regional Airport ended up providing the minimum revenue guarantee to Big 

Sky Airlines for flying daily service on a Beech 1900 turboprop from EAU into MDW which quickly 

expended the grant funding while not fully meeting the community’s needs. The service lasted 

approximately three months before it was pulled. The Grant was closed in October 2007.

This new 2014 Grant request is for marketing funding to promote the airport and the air service it 

contains within the scope of allowable Grant fund usage for EAS cities as described above. It 

does not provide minimum revenue guarantees nor is the intent to connect area residents with 

other forms of transportation (i.e. rail). As previously mentioned, the grant would be utilized for 

promotion and strategic planning as it relates to advertising.
Chippewa Valley Regional Airport; Eau Claire, Wisconsin

Application Under the Small Community Air Service Development Program; Docket DOT-OST-2014-0113 20

CONCLUSION

With Chippewa Valley Regional Airport only capturing 12.1% of the traffic in its catchment area, 

the need for additional marketing and promotional activities is clearly evident. The twice daily 

jet service to Chicago O’Hare, arguably one of the largest hubs domestically with connections 

throughout the world, is one that any small community throughout the nation would be envious 

of. However, lack of a clear strategic advertising plan has left CVRA with no voice in the area; 

the service is underutilized with the average load factor since the SkyWest service began at a 

mere 51%. There is significant room for improvement and this grant application seeks to give 

voice to the Airport. 

This grant would provide the Airport with the opportunity to not only perform an updated 

passenger analysis, but would allow the development of a strategic, multi-layered plan to 

actively engage the corporate community to better utilize the airport. The funding level 

requested is a modest $150,000 in federal grant funding backed by a local non-airport match of 

$15,000, or 10% of the requested amount. This Grant application outlines a creative solution to 

an entirely fixable problem; EAS service with poor passenger counts. This modest funding will 

enable the Chippewa Valley Regional Airport to dramatically increase traffic, therefore 

reducing subsidy per passenger and, in future bid cycles, overall subsidy need. It would be the 

eventual goal of the Airport to exit the EAS program in the future. The Chippewa Valley Regional 

Airport together with their public and private partners urges the Department of Transportation to 

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

July 21, 2014

Ms. Brooke Chapman,

Associate Director

Small Community Air Service Development Program

U.S. Department of Transportation

8

th Floor, Room W86-307

1200 New Jersey Avenue SE,

Washington D.C. 20590

Dear Ms. Chapman,

Reference: Docket DOT-OST-2014-0113

The Chippewa Valley Regional Airport located in Eau Claire Wisconsin, has submitted to the 

Department an application under the 2014 Small Community Air Service Development (SCASD) 

Grant.

The Airport’s application is for marketing funds to support new or existing air service at the 

Chippewa Valley Regional Airport. These funds, if awarded, will go towards the development and 

implementation of a marketing campaign to increase awareness and promote the services the 

airport provides. The campaign would include a variety of elements including, but not limited to 

an updated true market study and a community engagement program. 

Xcel Energy, the electric and natural gas utility provider throughout the Chippewa Valley, fully 

supports the application as the ultimate goal of the marketing campaign is to increase passenger 

service to a level where the Airport may be able to exit the Essential Air Service program. We 

therefore urge the Department to give the Chippewa Valley Regional Airport 2014 grant 

application favorable consideration as the process moves forward in grant award. 

Best regards,

James M. Hanke

Manager – Economic Development & Community Services

Xcel Energy

770 Scheidler Road, Suite 3  Chippewa Falls, WI 54729

(715) 723-7150 (800) 797-9976  Fax: (715) 723-7140

e-mail: ccedc@chippewa-wi.com

July 16, 2014

Ms. Brooke Chapman,

Associate Director

Small Community Air Service Development Program

U.S. Department of Transportation

8

th Floor, Room W86-307

1200 New Jersey Avenue SE,

Washington D.C. 20590

Reference: Docket DOT-OST-2014-0113

Dear Ms. Chapman,

The primary mission of the Chippewa County Economic Development Corporation (CCEDC) is to foster a 

strong economic environment which supports businesses and nurtures growth and new investment in the 

region. CCEDC is dedicated to promoting and facilitating economic development and to improve the quality 

of life in Chippewa County by increasing its economic base. The Chippewa Valley Regional Airport (CVRA) 

is critical to our economic development success and its important role cannot be over emphasized.

The purpose of this letter is to urge the US Department of Transportation to award the CVRA the 2014

Small Community Air Service Development (SCASD) Grant currently submitted. This funding request is for 

marketing funds to support new or existing air service at the CVRA. These funds, if awarded, will go towards 

the development and implementation of a marketing campaign to increase awareness and promote the 

services the airport provides. The campaign would include a variety of elements including, but not limited 

to an updated true market study and a community engagement program. 

The CCEDC Board of Directors fully supports the application as the ultimate goal of the marketing campaign 

is to increase passenger service to a level where CVRA will be in a better position so as not to utilize the 

Essential Air Service program in the future. If I can answer any of your questions concerning CCEDC’s 

support for the activities outlined in the CVRA 2014 SCASD application please do not hesitate to contact 

me. 

Best regards,

Charlie Walker 

Chippewa County Economic Development Corporation