June 11, 2012

Sponsor: Williamsport Regional Airport – Williamsport, PA

Tom Hart, Executive Director

Congressional Code: PA - 05

Dun & Bradstreet Number: 075-998-641

Tax Identification Number (EIN): 24-6000743

Application for Federal Support for New Air Service via:

Revenue Guarantees

Advertising/Marketing Program

To Support New Non-Stop Service from Williamsport, PA to Washington Dulles 

WILLIAMSPORT REGIONAL AIRPORT, WILLIAMSPORT PA

Application Under the Small Community Air Service Development Program, 

Docket DOT-OST-2012-0069

Docket DOT-OST-2012-0069
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 2

TABLE OF CONTENTS

Section Page

Introductory Letter of Support 3

Summary Information – Appendix C 4

Introduction 7

Williamsport: Location, Population and Economy 8

Current and Historical Williamsport Air Service 11

Williamsport Air Service Deficiencies and Needs 15

Williamsport’s Strategic Plan to Improve Local Air Service 18

Air Service Recruitment Efforts and Previous Grand Award 21

Grant Funding Plan and Implementation Timeline 22

Air Service Partnership and Legal Sponsor 23

Summary 24

Silver Airways Letter of Support 25
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 3

INTRODUCTORY LETTER OF SUPPORT
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 4

SUMMARY INFORMATION – APPENDIX C

Small Community Air Service Development Program

Docket DOT-OST-2012-0069

A. Applicant Information

 Not a Consortium Community now receives EAS subsidy

 Interstate Consortium Intrastate Consortium

 Community previously received a Small Community Grant

 If previous recipient, Date of Grant: September 9, 2005

Expiration date of Grant: September 7, 2008

Federal Funds Requested: $500,000

Carrier(s) Service Obtained: None

Destination(s) Served: Target was new westbound service

DOT Grant Closeout Letter was dated January 9, 2009

No Grant funds were expended 

B. Public/Private Partnership

Public:

1. Williamsport Regional Airport

2. City of Williamsport

3. Lycoming County

Private:

1. Williamsport-Lycoming Chamber of Commerce

2. 1st Community Foundation

3. Lycoming Foundation

4. Industrial Properties Corporation
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 5

C. Project Proposal

 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 (Specify)

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach

 Localizer Other:

E. Project Cost

1. Federal amount requested: $ 500,000

2. State cash financial contribution: $ 0

Local cash financial contribution:

3a. Airport cash funds: $ 50,000

3b. Non-Airport cash funds: $ 500,000

3. Total local cash funds: $ 550,000

4. TOTAL CASH FUNDING: $ 1,050,000

In-Kind Contribution:

a. Airport In-Kind contribution: $ Various

Fee Waivers: One year waivers of landing and terminal fees

b. Other In-Kind contribution: $ na

5. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

6. TOTAL PROJECT COST: $ 1,050,000 + In-Kind
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 6

F. In-Kind Contributions

For funds in lines 4a (airport in-kind contribution) and 4b (other in-kind contribution), 

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

Fee Waivers: One year waivers of landing and terminal fees (airport)

G. Is Application Subject to Review by State Under Executive Order 12372 Process?

 This application was made available to the State on ______.

 Program is subject to review, but has not been selected by the State.

 Program is not covered.

H. Is Applicant Delinquent on any Federal Debt?

 No
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 7

INTRODUCTIONINTRODUCTION

Williamsport, Pennsylvania, is at the epicenter of a modern day “gold rush”. In this case the 

“gold” is natural gas; its source is the Marcellus Shale Play. Breakthroughs in mining technology in 

just the past few years are allowing for the economical mining of huge deposits of natural gas in 

the northeast United States. Williamsport sits atop one of the largest and most easily mined parts 

of the entire Marcellus. In just the past few years the landscape and economy of Williamsport 

have been transformed, from a relatively quiet city and area that was struggling to cope with 

the 2008-2009 recession, into a thriving and rapidly growing economy.

However, one element of Williamsport’s economy has not been transformed. That is local air 

service, which is completely inadequate to the immediate and near term future task of 

supporting all the air travel demand generated by the “gas rush”. Williamsport air service 

remains today as it was three years ago, two years ago and last year, despite a significant 

growth in traffic demand. While the air service pattern has 

remained stagnant, Williamsport traffic has grown 27% even as 

average fare has gone up 31% in those three years, 2009 – 2011.

Furthermore, the current three-trips-per day turboprop service 

from US Airways Express to Philadelphia offers little in the way of online connections to the south 

central U.S., where many of the nation’s gas mining companies and mining support companies

are based. Williamsport air service is not just stagnant and limited, it is provided by a carrier and 

via a hub with weak online connectivity to Texas, Oklahoma and Louisiana.

There are eight commercial airports in Pennsylvania, excluding EAS airports and Latrobe, which 

has only ULCC service. Among these eight airports Williamsport has the highest average fare 

(three years running) and is the only airport in the group with only one carrier. Williamsport 

appreciates its long history with US Airways. However, today the Williamsport economy is 

booming, and that boom is part of a national effort to move toward energy independence. But 

Williamsport’s ability to contribute to that goal is hindered by woefully inadequate air service.

The need for more air service is crystal clear. If ever there was an airport and air service situation 

for which the SCASD grant program was designed to address, Williamsport in 2012 is it. This 

document will outline in detail the compelling case for $500,000 in Grant funding, matched by 

$500,000 in local cash (non airport) funding, to aid Williamsport in recruiting desperately needed 

additional air service.

“Williamsport, Pennsylvania 

is at the epicenter of a 

modern day “gold rush.”
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 8

WILLIAMSPORT: LOCATION, POPULATION AND ECONOMYINT

Location and Population – Williamsport is located in north central Pennsylvania. It is the largest 

city and principal commercial center for an area of about 40 miles in any direction. The city and 

the neighboring cities of South Williamsport, Loyalsock, Montoursville and Duboistown, all sit aside 

the Susquehanna River. State Highways 15 and 220 cross at Williamsport and Interstate I-80 is less 

than 20 miles south of the city.

The one hour drive radius for the Williamsport Regional Airport (blue shaded area) has a 

population of 396,316. The two hour drive radius (red shaded area) has a population of 

2,297,828. The Williamsport MSA, which consists of Lycoming County, has a 2010 Census 

population of 116,111. The Lock Haven Micropolitan Statistical Area, immediately to the west of 

Williamsport had a 2010 population of 39,238, making the combined area population 155,349. 

The city of Williamsport has a population of just under 30,000. Throughout the first decade of this 
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 9

century regional populations have been steady, with a measurable decline for most of the 

decade and recent upswings in population driven by energy mining and related activities. 

Williamsport’s Economy – The U.S. Bureau of Economic Analysis ranked Williamsport as the 

seventh fastest growing city in the nation in 2010. Site Selection Magazine placed Williamsport 

third in the nation in its 2011 Governors Cup rankings of metropolitan areas for local efforts and 

successes in economic development and recruitment of new businesses to the area. All of this 

success and accolade is the result of a huge increase in energy mining activity in the 

Williamsport area, especially to the north and west of the city. Williamsport is a focus point of 

regional mining activity because of its highway and rail line infrastructure and proximity to areas 

of the Marcellus Play that are most favorable for mining.

The chart at right illustrates how gas mining 

activity is focused on the Williamsport area, 

with the gold shaded boxes showing that 

in 2011 47% of statewide drilling permits 

and 35% of wells drilled were in the 

Williamsport area.

Energy mining activity has caused the construction of five brand name hotels in Williamsport in 

just the past two years and local occupancy rates are among the highest in the northeast.

The Williamsport/Lycoming County Chamber of Commerce has identified twenty major Mining 

Companies or Mining support companies active in the Williamsport region and a total of 105 

energy mining companies 

have built, purchased or 

leased facilities in the area 

since 2009. There is 

significant potential for oil 

mining to complement the 

gas extraction. The major 

oil companies say they see 

energy mining activity in 

the Williamsport region 

continuing for many decades.

2009 2010 2011 Change

Total Permits 6,234 6,592 3,512 -46.7%

Percent Williamsport Area 15.8% 29.4% 47.2%

Wells Drilled 2,543 2,843 2,946 3.6%

Percent Williamsport Area 11.4% 30.5% 35.3%

PENNSYLVANIA OIL/GAS WELLS PERMITED & DRILLED 

Permits for Five County 

Williamsport Area 

Wells Drilled in the Five 

County Williamsport Area 

984 1,658 -14.5%

291 1,039 19.8%

1,940

867

Company HQ Location Company HQ Location

Halliburton Houston Precision Drilling Calgary

Chesapeake Energy Oklahoma City Saxon Drilling Calgary

Anadarko Dallas Baker Hughes Houston

Penn Virginia Philadelphia GE Oil and Gas Atlanta

Patterson-UTI Houston FMC Technologies Denver

Range Resources Dallas Shell Oil Netherlands

EXCO Resources Dallas Key Energy Midland TX

CONSOL Energy Pittsburgh XTO Fort Worth

Reliance Energy Houston Chief Oil & Gas Dallas

Nabors Industries Bermuda Warrior Energy Columbus, MS

MAJOR MINING OR SUPPORT COMPANIES ACTIVE IN THE WILLIAMSPORT AREA
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 10

The energy companies complement an already diverse local economy.

Major non-mining employment sectors in the Williamsport region include Health Care, heavy 

and light manufacturing, pharmaceuticals and consumer products.

There are seven institutions of higher learning within 39 miles of Williamsport with nearly 30,000 

enrolled students and over 2,400 faculty and staff. Leading this group is the Pennsylvania 

College of Technology for Penn State University. This campus is primarily dedicated to offering 

training and education in fields related to energy mining, in support of the area mining activities.

The strong growth curve of this diverse economy is reflected in the area’s unemployment rate, 

which has dropped as energy mining related job growth absorbs post recession joblessness.

Williamsport is known nationally as the home of the Little League World Series. This annual 

tournament happens for eleven days every August. The event draws hundreds of thousands of

visitors from around the nation and around the world. Little League International is based in 

Williamsport and manages over 7,000 Little League operations in 84 countries. 

Company Headquarters Compay Headquarters

Susquehanna Health Williamsport Shop-Vac Williamsport

PRIMUS Technologies Williamsport Lycoming Avco Providence

Brodart Williamsport Andritz Williamsport

Hope Enterprise Williamsport Wirerope Works Williamsport

West Pharmaceutical Philadelphia Weis Markets Williamsport

WIllIAMSPORT MAJOR EMPLOYERS: NON ENERGY MINING

4.9%

5.9%

8.8%

9.0%

7.7%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2007 2008 2009 2010 2011

Annual Unemployment Rate

US IPT SCE AVP P A MDT
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 11

CURRENT AND HISTORICAL WILLIAMSPORT AIR SERVICENT

Air Service: The Williamsport Regional Airport has had air service since 1929. For the past few 

decades service has been provided by US Airways Express carriers. Current service, which has 

been essentially unchanged in frequency, equipment, schedule or hub since 2008, consists of 

three daily Dash 8-100 round trips to Philadelphia. Looking forward, the US Airways website offers 

essentially the same schedule and equipment for all months of 2012. 

Williamsport Capacity, Domestic Traffic and Average Fare: 2004 - 2011

Traffic and Capacity: Williamsport air service capacity is down 49% since 2004. The main driver of 

this capacity decline was the loss of US Express Pittsburgh service in 2004, which was part of US 

Airways ending all connecting hub activities at that airport. Remarkably, Williamsport traffic is 

only down 25% since the loss of dual hub service in 2004, owing to the energy mining boom. 

Williamsport traffic is actually up 27% since 2009. The 27% increase in domestic traffic in two years 

is despite the average fare paid increasing 31% in the same period.

US Airways filed notice to terminate Williamsport air service in 2008 with intention to bid to serve 

the city with EAS subsidy, citing rapidly increasing fuel costs. In the ensuing EAS bidding process 

Northwest Airlink was designated to serve Williamsport. At that point US Airways withdrew the 

termination notice, citing lower fuel costs in the second half of 2008, and has continued to serve 

the city subsidy free since 2008. At no time did Williamsport receive subsidized EAS service.

200

192

189

165

140

99 97 102

88

80

68 65 62

52

61 66

$151

$176

$215

$204

$211

$188

$210

$246

$100

$120

$140

$160

$180

$200

$220

$240

$260

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011

Average Fare

Seats and Passengers per D ay Each W ay

Seats per Day Each Way Traffic PDEW Domestic Avg Fare 
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 12

Traffic History: Williamsport traffic peaked in 2004 at over 66,000 annual DOT reported domestic

and international O&D. Pittsburgh service ended that year and a gradual traffic decline began, 

culminating in a traffic low point in 2009 of 40,420 domestic and international O&D. 

Williamsport Domestic and International Traffic: 2003 - 2011

The Philadelphia Hub: The US Airways hub at Philadelphia offers 438 peak day departures to 135 

domestic and international destinations.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

53,170

64,090

58,110

49,330 47,700 45,360

38,100

44,430

47,850

1,200

2,070

2,980

3,620

3,070

3,540

2,320

2,300

2,960

Annual Enplanements

Domestic O&D International O&D
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 13

Top Markets and Average Fares: Travel demand related to mining activities in the Williamsport 

region is illustrated by the fact that Dallas and Houston are the top two destinations in 2011

Williamsport’s Top 25 Domestic Destinations: 2011

With the exception of destinations in Florida and the Carolinas, the average fare in every top 

Williamsport market is well over $200, in some cases over $300.

Average Fare in Williamsport's Top 25 Markets: 2011

3,750

3,100

2,200

1,930

1,540

1,360

1,270

1,200

1,190

1,160

1,070

1,040

1,010

980

830

810

760

730

660

660

660

600

600

570

460

5.1

4.2

3.0

2.6

2.1

1.9

1.7

1.6

1.6

1.6

1.5

1.4

1.4

1.3

1.1

1.1

1.0

1.0

0.9

0.9

0.9

0.8

0.8

0.8

0.6

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

DFW

IAH

MCO

TPA

ATL

ORD

LAX

BOS

MSY

DEN

PHX

JAX

CLT

LAS

PBI

RDU

FLL

SFO

CHS

RSW

SAN

MCI

MSP

DTW

BNA

Annual Passengers PDEW

$303

$282

$177

$177

$226

$220

$291

$171

$218

$277

$236

$170

$198

$295

$181

$143

$172

$322

$162

$194

$268

$228

$219

$202

$233

$ 0 $50 $100 $150 $200 $250 $300 $350

DFW

IAH

MCO

TPA

ATL

ORD

LAX

BOS

MSY

DEN

PHX

JAX

CLT

LAS

PBI

RDU

FLL

SFO

CHS

RSW

SAN

MCI

MSP

DTW

BNA
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 14

Regional Traffic Demand: The great demand for air travel between Williamsport and the south 

central United States is shown by the growth in O&D traffic associated with those city pairs.

O&D TRAFFIC WITH TEXAS, OKLAHOMA & LOUISIANA BY QUARTER 2008 - 2011

The above chart shows O&D traffic between Williamsport and every city in Texas, Oklahoma and 

Louisiana, by quarter, for 2008 to 2011. Traffic between Williamsport and this region has tripled in 

three years. The average fare hovers measurably above $300.

Alternative Airports: With the exception of State College, all other alternative airports are 

between 1.6 hours and 4.2 hours drive from Williamsport. Access to large scale low fare service 

requires a three plus hour drive 

to Philadelphia or four plus hour 

drive to Pittsburgh, with drive 

time in each case depending 

significantly on time of day

highway congestion in each of 

those large metro areas.

Delta and US Airways are common denominators at each alternative airport. Allegiant and 

Frontier offer less-than-daily service to leisure destinations at each airport they serve.

5

6

6

5

5

7

6

7

7

8

1 3

1 1

1 5

1 6

1 5 1 5

$258

$270

$252

$201 $204

$192

$212

$243

$279

$275

$267

$272

$311

$323

$316

$310

$100

$150

$200

$250

$300

$350

0

2

4

6

8

10

12

14

16

18

Average Fare

Passengers per Day Each Way

Traffic PDEW Avg Fare 

Airport Time Distance Airlines

State College SCE 1:14 58 DL, UA, US

Elmira ELM 1:34 90 DL, US, G4

Scranton AVP 1:43 95 DL, UA, US, G4

Harrisburg MDT 2:04 97 AC, AA, DL, F9, UA, US

Allentown ABE 2:20 132 AC, DL, F9, UA, US, G4

Philadelphia PHL 3:16 191 Everyone

Pittsburgh PIT 4:09 217 Everyone

WILLIAMSPORT ALTERNATIVE AIRPORTS
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 15

WILLIAMSPORT AIR SERVICE DEFICIENCIES AND NEEDS

Williamsport’s Air Service Deficiencies – Williamsport’s economy is three years into a major 

transformation, with energy mining leaping to the economic forefront to complement health 

care and manufacturing as key economic sectors. Yet Williamsport’s air service is stuck in a time 

warp in 2009, essentially unchanged despite the economic boom in the region. One aspect of 

energy mining is mobility; mining expertise is not home grown, in the United States is it based 

primarily in the South Central states of Texas, Oklahoma and Louisiana. The experts and 

specialists with the many and varied skill sets involved in exploring, drilling and extracting natural 

gas travel the world. Oversight of exploration, new well drilling and then extraction at mature 

well sites requires the ability for management and technocrats to move efficiently around the 

nation and the world. Williamsport is fortunate to sit atop one of the most lucrative mining zones 

in the Marcellus Play and it has excellent highway and railroad infrastructure needed for mining.

However, Williamsport’s air service is still in 2009. It was three trips a day to Philadelphia then, it’s 

three trips to Philadelphia now. Excluding EAS cities and Latrobe (which only has less-than-daily 

ULCC service from Spirit) Williamsport is the only commercial airport in Pennsylvania with only one 

carrier service. Williamsport has the highest domestic average fare in the state, and has had it 

for three years running, and five of the last six years. Despite a growing local economy 

Williamsport capacity, measured in seats, is essentially the same as 2009; with no indication from 

US Airways of any forthcoming changes. With the payload restrictions of the older turboprops 

that US Airways uses at Williamsport, the segment to Philadelphia had a 76% load factor in 2011, 

based on onboard passengers vs. actual payload capability. And there are challenges to 

Philadelphia as a hub; it is one of the most delay-prone hub airports in the nation and, due to 

the nature of US Airway’s route system, has limited online connectivity to the south central U.S.

So Williamsport has all the highways, railroads, building sites and labor force needed to support 

regional mining, it completely lacks the local air service to support those efforts.

Capacity Deficiencies - The current service pattern at Williamsport is three daily US Airways 

Express round trips to Philadelphia, operated with 37-seat Dash-8 100 aircraft. However, the 

venerable Dash 8s take major payload limitations and at Williamsport actual capacity is about 

33 passengers per flight. This means that Williamsport’s reported load factors and real load 

factors are very different.
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 16

Williamsport’s true load factor, onboard passengers divided by sellable seats, was 76% in 2011.

Williamsport’s significant capacity 

deficiencies are even clearer in 

the measure of air service 

capacity as a ratio to local 

population. Williamsport has the 

lowest number of airline seats per 

capita of any airport in its region, 

by a significant margin.

Highest Average Fares - Year 2011 DOT traffic statistics show over 700 airports with domestic 

traffic generation. On that raw list Williamsport has the 51st highest average fare at $245.74. 

Excluding Alaska airports and 

statistically insignificant reports, 

Williamsport has the 40th highest 

average fare in the nation. 

Williamsport’s nationwide peer 

group, airports with between 

40,000 and 60,000 annual 

domestic O&D, has 26 airports. 

Six of those are Alaska or Puerto 

Rico and three are EAS. Among 

the remaining 17 airports 

Williamsport has the third highest 

average fare, behind only 

Williston and Texarkana. As the chart illustrates, in 2011 Williamsport also had the highest average 

fare in Pennsylvania, considering all fifteen commercial airports, including the six with EAS. In the 

Year 2005 2006 2007 2008 2009 2010 2011

Onboard 60,659 52,417 49,856 46,185 38,733 44,285 47,665

Reported Seats 140,291 138,160 120,551 102,302 72,567 70,857 74,734

Reported LF % 43.2% 37.9% 41.4% 45.1% 53.4% 62.5% 63.8%

Actual Seats 123,849 122,859 102,498 90,651 64,119 62,733 62,898

Actual LF % 49.0% 42.7% 48.6% 50.9% 60.4% 70.6% 75.8%

US AIRWAYS EXPRESS LOAD FACTORS (DOT T100) IPT - PHL: 2005 - 2011 Airport 2006 2007 2008 2009 2010 2011

ABE $174.19 $160.00 $168.64 $139.15 $148.88 $166.11

AVP $192.65 $183.65 $191.13 $167.91 $184.87 $205.81

ERI $154.12 $160.52 $168.42 $137.72 $154.52 $182.63

IPT $215.48 $203.94 $210.69 $188.11 $209.71 $245.74

LBE $178.14 $162.08 $171.56 $146.21 $64.87

MDT $203.86 $186.52 $196.24 $164.88 $175.91 $201.24

PHL $144.51 $144.30 $158.29 $143.38 $162.51 $179.94

PIT $140.18 $133.19 $145.37 $131.30 $146.51 $160.43

SCE $209.84 $195.68 $216.97 $183.69 $194.91 $223.32

AOO $175.98 $166.35 $198.21 $166.74 $178.75 $213.75

BFD $205.93 $204.70 $203.40 $141.51 $206.12 $228.47

DUJ $176.20 $198.36 $206.98 $134.23 $208.75 $228.58

FKL $164.56 $173.39 $110.30 $105.36 $178.72 $148.46

JST $210.77 $224.22 $220.75 $193.51 $212.94 $231.52

LNS $148.70 $146.84 $85.68 $93.95 $98.39

State $147.96 $144.79 $157.92 $141.67 $159.00 $175.69

Pennsylvania Airports Average Domestic Fare: 2006 - 2011

Commercial Non EAS

EAS

Airport 2011 Population 2011 Seats Seats/Capita

Elmira 88,840 410,972 4.63

Harrisburg 552,911 1,722,411 3.12

State College 154,722 381,419 2.47

Allentown 824,916 1,071,070 1.30

Scranton 563,223 589,384 1.05

Williamsport 116,747 74,808 0.64

WILLIAMSPORT AREA AIRPORTS: SEATS PER CAPITA

MSA Population per US Census data, Seats per DOT T100 reports, both for year 2011
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 17

past six years Williamsport has had the state’s highest average fare each year except compared 

to State College in 2008 and in comparison to Johnstown (EAS) for several years.

Hub Issues - US Airways Philadelphia hub is one of the 

most delay-prone airports in the country. Short haul 

feeder routes like IPT – PHL suffer disproportionally at 

delay-prone hubs. The FAA tends to put the most gate 

holds on short haul segments and US Airways naturally 

will sacrifice short segment turboprops to preserve 

capacity for mainline at times that weather restricts 

airport capacity to well below scheduled service 

demand. Thus, Williamsport’s air service is not just stagnant and limited in capacity; it also is

delay prone, with monthly or annualized on time performance in the 70% range. Since the 

airport has no other air carrier or hub route, PHL delays control Williamsport’s fate in terms of 

traveler perception of local air service reliability. 

While US Airways and its Express carrier system is a fine airline network, that network, and its 

Philadelphia hub in particular, has very limited reach into the south central United States.

Williamsport Air Service Needs – Williamsport desperately needs new air service capacity and a 

new hub or connecting point option. It is the only non-EAS airport in Pennsylvania (excluding 

Latrobe with its less-than-daily ULCC service) with only one air carrier. Service options, in terms of 

frequency, seat availability and scope of online connections, are limited. Airfares are the highest 

in the state and among the highest in the country.

Service to a second hub, especially if by a second carrier, would introduce additional capacity, 

additional travel options, and drive down average fares to a more reasonable level in 

comparison to other airports in the region.

Rank Hub Percent Ontime

1 EWR 66.7%

2 SFO 71.4%

3 LGA 73.2%

4 BOS 73.7%

5 JFK 75.3%

6 ORD 75.5%

7 PHL 76.2%

DELAY PRONE HUB ONTIME RANKINGS

Year 2011
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 18

WILLIAMSPORT’S STRATEGIC PLAN TO IMPROVE LOCAL AIR SERVICE

The Williamsport Regional Airport, working closely with its public and private sector partners, is 

determined to bring local air service up to the standards necessary to support the strong 

economic growth the community and surrounding region are experiencing.

 

Proposed New Service – Williamsport believes the most logical and viable new air service for the 

region would be in the form of United Airlines branded flights to that carrier’s large hub at 

Washington Dulles. At Dulles United has 300 peak day departures to over 100 domestic and 

international cities. United is the largest airline in the world and its merger with Continental 

Airlines gives the combined carrier a huge network in south central United States, anchored by 

the hub at Houston.

The Williamsport – Dulles segment is 165 miles and an estimated 1.1 block hours of scheduled 

flight time. In addition to opening up greatly expanded online connections, Dulles service would 

also create a local traffic market between Williamsport and the Washington D.C. area. It is a 4.4 

hour drive and about 220 miles from Williamsport to either downtown Washington, D.C. or to the 

Virginia suburbs and 3.6 hours drive and 190 miles to the Baltimore area. All of these drive times, 

of course, do not consider the potential for traffic delays and congestion. Thus, Williamsport –

Dulles service will create local traffic, both business and leisure.

Service Impact – Given the pent up demand for air service in the Williamsport region and 

associated traffic leakage to other airports because Williamsport does not have enough seats, a 

reasonable fare or good connectivity to desired destinations, a United branded service to Dulles 

is estimated to immediately stimulate Williamsport traffic by 50%. Williamsport traffic so far in 2012 

is up 14% from 2011 and 2012 total O&D is projected to be 57,205, with existing service. 

Imposition of United branded Dulles service and the associated 50% stimulation would make 

2013 traffic 85,808 O&D.

The Dulles hub would create new single-connect online connections to more than a dozen cities 

and open up online double-connect options to almost every city in Texas, Oklahoma and 

Louisiana, via Houston. In 2011 United/Continental offered 1,085,293 nonstop seats to seven cities 

in those states via Dulles while US Airways had 901,613 nonstop seats to only three cities in the 

those states via Philadelphia.. Dulles had 20% more seats to more than twice as many 

destinations.
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 19

Williamsport Connections via the United/Continental Hub at Dulles

Traffic, Revenue and Operational Forecast – This forecast of results for new air service at 

Williamsport assumes new United coded service is offered by Silver Airways using SF340 

equipment and a status quo of service by incumbent US Airways.

The forecast calls for United Express service to capture 40% of the total domestic and 

international traffic generated at Williamsport in the first year of new service, assumed to be 

IPT MARKET Traffic and Revenue

Period O&D Avg Fare US UA UA O&D Fare @ 40% Revenue

2011 Actual DOT Reported 50,180 $267.51 100% 0% 0

2012 Projected Baed on Traffic Trends 57,205 $275.00 100% 0% 0

2013 With New Service 85,808 $250.00 60% 40% 34,323 $100.00 $3,432,312

2014 Mature New Service 98,679 $255.00 55% 45% 44,406 $102.00 $4,529,365

UA Express IPT - IAD Statistics and Cost Segments Blk Time Blk Hrs Cost/Hr Seats Load Factor Annual Cost

2013 1,800 1.1 1,980.0 $2,100 61,200 56.1% $4,158,000

2014 1,900 1.1 2,090.0 $2,142 64,600 68.7% $4,476,780

-$725,688

$52,585

WILLIAMSPORT - DULLES TRAFFIC, REVENUE AND COST FORECAST 

2013 IAD Segment Profit/Loss

2014 IAD Segment Profit/Loss

Domestic + International Traffic Share IAD Segment
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 20

2013. In 2011 Williamsport generated 47,850 domestic O&D at $245.73 and 2,960 international 

O&D at $619.58 for a combined 50,810 O&D at $267.51. So far in 2012 Williamsport traffic is up 

14% and that is the basis of assuming 2012 total traffic will be 57,205, with modest fare growth. 

In the forecast new United Airlines coded SF340 service from Williamsport to Dulles would begin in 

January of 2013, for purposes of generating a calendar year forecast. The total market would 

grow 50% in 2013 from the estimated 2012 baseline. Silver Airways SF340 operating costs are 

estimated from carrier EAS filings. The carrier has only just this year begun SF340 operations and 

indicated costs of operation are higher than historical norms for the type. The carrier is projected 

to have 16 of the type in operation by year end 2012 and synergies of scale should allow for 

operating costs below those shown herein beyond 2012.

Based on the initial high Silver Airways operating costs the new Williamsport – Dulles service is 

forecast to have an operating loss of $725,688 the first year, based on a 40% total Williamsport 

market share capture. The route is forecast to move modestly to profit in the second year of 

operation, with carrier market share increasing to 45%. The new service is forecast to have a 

measurable temperance on average fares, with Williamsport’s combined domestic and 

international average fare in 2013 dropping 9% from the projected 2012 fare.

This forecast is conservative in every way. Williamsport traffic is growing significantly even with just 

the stagnant incumbent carrier service with all its capacity, average fare, connectivity and hub

ATC related reliability limitations. Imposition of a second carrier and second hub, especially 

when the brand of that carrier is United and the hub is Dulles, will conservatively result in a 50% 

overall market size stimulation and a first year 40% market share. Please note that United and US 

Airways are both Star Alliance so Williamsport residents with US Airways frequent flyer status can 

earn miles on United coded flights from day one of United branded service. This gives the new 

carrier and service immediate local brand affinity.

Alternative Service Options –Silver Airways United branded Dulles service is one option for 

Williamsport. United regional jet service, either from a United Express partner with at-risk capacity 

or from an allocation of the United Airlines Capacity Purchase Agreement regional jet fleet are 

other options for gaining Dulles service. Please note that Williamsport has never seen a regional 

jet so market stimulation and share capture would be significant if such a service was deployed.

US Airways is also an option of lesser preference. Williamsport could recruit and support a single 

daily regional jet service to Charlotte, complementing existing Philadelphia service.
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 21

AIR SERVICE RECRUITMENT EFFORTS AND PREVIOUS GRANT AWARD

Williamsport has aggressively recruited new air service for many years.

Recruitment Efforts – Representatives of the Williamsport Airport and community have had faceto-face or conference call meetings with various airline representatives 22 times since 2007. We 

have hired consultants who specialize in helping airports retain and recruit air service.

2007 – We met with Northwest regarding Detroit service.

2008 – We had conference call meetings with Colgan, Gulfstream and American Eagle.

2009 – Met with Allegiant Air in Las Vegas.

2010 – Headquarters meetings with SkyWest and Continental.

2011 – We met with US Airways, Silver Airways, Pinnacle Airlines and Direct Air at a Small 

Community Air Service Conference.

2012 – Attended the Network Conference in Tampa and met with American Eagle, United, Silver 

Airways, Allegiant and Public Charters.

2007 – 2012: Each year we meet with US Airways in Phoenix to discuss our market situation. 

The annual marketing and promotional budget of the Williamsport Regional Airport averages 

about $27,000. We are capable of spending much more than that, however, the current limited 

nature of our air service and the high average fares limit what we can market and promote. We 

work closely with the US Airways Pricing Department to promote US Airways network fare sales.

Williamsport’s Previous Grant Award – Williamsport was awarded a SCASD Grant in 2005. The 

goal of that $500,000 Grant was “Recruit an air carrier to provide daily westbound service at 

Williamsport Regional Airport in order to lower fares, increase competition and reduce passenger 

leakage to other airports.” The Grant intended to use risk abatement funds to support new 

westbound service and the Airport intended to expand its marketing efforts in support of the 

new carrier. The Grant primarily targeted Northwest Airlines service to Detroit. Extensive 

conversations took place with Northwest but an agreement for new service did not occur. In 

2007 the Grant was extended for one year. In 2008 Northwest became focused on a merger 

with Delta and US Airways filed for EAS subsidy at Williamsport (later withdrawn). The grant 

expired in September 2008 and we received a formal notification of Grant closeout from the 

Department via letter on January 9, 2009. No Grant funds were spent. The 2005 Grant 

application and award was for westbound service. This application is for southbound service.
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 22

GRANT FUNDING PLAN AND IMPLEMENTATION TIMELINE

Grant Funding Amounts and Allocation – The Williamsport Regional Airport proposes Small 

Community Air Service Development Grant funding of $500,000. The Airport’s community 

partners will match the $500,000 with $500,000 of local (non airport) funding and the Airport will 

provide $50,000 in marketing funds, making total cash Grant funding $1,050,000. The Airport will 

provide for the new carrier or new service one year of a complete waiver of all airport related 

fees. Second year and beyond marketing and promotional funding will be an allocation of 

Airport marketing funds by market share of the new service.

Williamsport’s $500,000 in matching funds will 

come from the Chamber and two local 

Foundations. If more funding is needed, above 

and beyond that of this Grant and the matching 

funds, in order to preserve new air service, that 

funding will be forthcoming from these two sources and others in the city and region. Air service 

is recognized locally as a vital local infrastructure, just like rail lines and highway bridges.

Williamsport is fully aware of the importance of marketing and promotion to the success of local 

air service. The total of $1,050,000 includes a $50,000 allocation of Airport marketing funds. The 

Airport will work with the recruited airline to determine the optimum allocation of the $1,000,000 

in Department and local non-Airport funding between revenue guarantee and marketing. Any 

agreement between Williamsport and an airline will be subject to Department review.

Implementation Timeline – The 

timeline for implementing a Grant 

will depend on when the grant 

award is announced and a grant 

contract is signed and then on 

when an air carrier might begin 

grant supported service. The 

timeline at right assumes an August, 

2012 award. It also assumes that a carrier will be able to promptly start service, which is not 

assured or assumed. We request that our grant be valid for three years, given the fickle nature of 

the airline business.

Milestone Projected Date

SCASD Grant Award August, 2012

Grant Agreement with DOT September, 2012

Meetings with Target Airlines October, 2012

Conclude MRG Agreemment November, 2012

Announce New Service Starting March 2013 December, 2012

File Quarterly Grant Status Report to DOT January, 2013 & Ensuing Quarters

Create a Detailed New Service Marketing Plan January, 2013 

Begin New Service Marketing January, 2013

Conduct Community Meetings with Airline February, 2013

New Service Inaugural March, 2013 

Monitor Advance Bookings from Airline April, 2013 and Ongoing

Adjust Marketing Program as Needed 2013

End Grant Program 2014

GRANT IMPLEMENTATION TIMELINE

Entity Funding Share

Chamber of Commerce $250,000 23.8%

1st Community Foundation $125,000 11.9%

Lycoming Foundation $125,000 11.9%

Department of Transportation $500,000 47.6%

Airport Marketing Funds $50,000 4.8%

Total $1,050,000 100.0%

GRANT FUNDING SOURCES AND ALLOCATION
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 23

AIR SERVICE PARTNERSHIP AND LEGAL SPONSOR

Williamsport’s Public Private Partnership for Air Service Improvement – In 2007 the Williamsport 

Regional Airport formally created a community Air Service Improvement Committee, In 2009, 

with the local Chamber assuming so much of the effort to assist the Airport with air service 

recruitment, the Committee was folded into a new group consisting of key persons from the 

Chamber and representatives of the Industrial Properties Corporation, the 1st Community 

Foundation and the Lycoming Foundation. This group will work with the Airport and elected 

officials and will constitute the public private partnership that will support this Grant and air 

service that is the result of its award and use.

The Airport formed an air service recruitment focused partnership with the Williamsport-Lycoming 

Chamber of Commerce in 2010. In addition to its membership in the public private partnership, 

the Chamber has worked extensively with the Airport on airline recruitment and funded 

consultant and airline meeting costs. The Chamber’s relentless and focused recruitment efforts 

related to energy mining were a key reason Williamsport won third place in Site Magazine’s 2011 

Governor’s Cup rankings of community economic activity efforts nationwide. The determination 

with which Williamsport recruits new business and supports those businesses once they come to 

town bodes well for Williamsport’s efforts to recruit and support new air service enabled by 

award of a SCASD Grant.

Legal Sponsor – The legal sponsor of this Grant application and the administrator of a Grant 

award will be the Williamsport Regional Airport. The Executive Director of the Airport is Mr. Tom 

Hart. Mr. Hart has extensive experience administrating grant funding and plays an active role in 

ongoing efforts by the airport to retain existing air service and recruit new air service.

Mr. Tom Hart, Executive Director, Williamsport Regional Airport

700 Airport Road, Suite 204, Montoursville, PA 17754

507 368 2444 thart2@comcast.net

Entity Status

Williamsport Regional Airport Public

City of Williamsport Public

Lycoming County Public

Williamsport-Lycoming Chamber of Commerce Private

Industrial Properties Corporation Private

1st Community Foundation Private

Lycoming Foundation Private

WILLIAMSPORT PUBLIC PRIVATE PARTNERSHIP MEMBERS
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 24

SUMMARY

The past three years have seen an enormous growth in energy mining in the Williamsport area, 

with over 2,200 gas wells drilled locally and thousands of jobs created supporting the drilling and 

extraction processes. This economic surge perfectly complements the traditional local 

economic sectors of health care and manufacturing. In short, Williamsport’s economy is growing 

in every way except one. And that one is air service.

Williamsport’s local air service is almost exactly what it was three years ago. And three years ago 

(2009) that air service was down some 50% in capacity from 2004, when second hub service to 

Pittsburgh was lost. The loss of capacity despite a strong economy is reflected in very high load 

factors at Williamsport. The load factor for the Philadelphia route in 2011 was reported as 64% 

(up 10 points from 2004), however, factoring in the payload realities of Williamsport’s Dash 8-100s, 

the load factor for the Philadelphia route in 2011 was really 76%.

As a result of limited air service, Williamsport air fares are the highest in Pennsylvania and are 

among the highest in the nation, ranking 40th highest in the lower 48 among over 600 airports.

And Williamsport is the only non-EAS airport in the state with only one carrier service, with the 

exception of Latrobe and its less than daily ULCC service.

Furthermore, existing air service is to a delay-prone hub that has limited online connectivity west 

of the Mississippi and particularly to the south central United States, where many of the nation’s 

mining companies and mining support companies are based.

Despite the low frequency service, high load factors, very high average fares, a delay-prone 

hub and limited connectivity of the incumbent carrier and hub, Williamsport traffic is up 27% 

since 2009. This confirms the strong economy and implies that Williamsport’s traffic potential is 

perhaps twice that of its current generation.

This Grant application requests $500,000, to be matched by $500,000 in local cash non airport 

funding. Combined with Airport marketing funding of $50,000, the total of $1,050,000 will enable 

Williamsport to recruit and fund possible startup phase losses for critically needed new air service 

to Washington Dulles on the United Airlines brand and code. The Small Community Air Service 

Development Program was designed precisely for a situation such as that of Williamsport. The

Airport and its public and private sector partners urge the Department to award this Grant.
Williamsport Regional Airport • Small Community Air Service Development Grant Proposal • June 2012 25