# Proposal Under the Small Community Air Service

Development Program, Docket DOT

- OST

- 201 3

- 0 120

City of Morgantown, WV
Morgantown Municipal Airport

DUNS 177686867

West Virginia Congressional District 01Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 2 

### Contents

Summary Information

................................ ................................ ................................ ..................... 3

History

................................ ................................ ................................ ................................ ............. 7

Background

................................ ................................ ................................ ................................ .. 7

Current Air Service Climate

................................ ................................ ................................ ......... 9

Fut ure

................................ ................................ ................................ ................................ .......... 9

Eligibility

................................ ................................ ................................ ................................ ........ 10

Selection Criteria

................................ ................................ ................................ ........................... 10

Priority Selection Criteria

................................ ................................ ................................ .......... 10

Secondary Selection Criteria

................................ ................................ ................................ ..... 12

Project

................................ ................................ ................................ ................................ ........... 14

The Problem

................................ ................................ ................................ .............................. 14
Air Service Needs and/or Deficiencies

................................ ................................ ...................... 14

Target Market

................................ ................................ ................................ ............................ 15

Strategic Plan to Meet Air Service Needs of the Community

................................ ................... 15

Goals and Objectives

................................ ................................ ................................ ............. 15

Financial Plan

................................ ................................ ................................ ................................ 16

Differences From Previous Project

................................ ................................ ............................... 16

Designation of Sponsor

................................ ................................ ................................ ................. 17

This applica tion is prepared in accordance with USDOT Order 2013

- 6

- 14 (Docket DOT

- OST

2013

- 0120) to establish the Morgantown community interest in receiving a grant under the Small Community Air Service Development Program.

Questions regarding this application should be forwarded to Mr. Michael Clow, Airport Director at (304) 291

- 7461 or by e

- mail to mclow@cityofmorgantown.org

.Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 3 APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST

- 201 3

- 0120



### S ummary I nformation

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

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

.

For your preparati on convenience, this Summary Information schedule is located at

http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- service/SCASDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL NUMBE RING SYSTEM (DUNS) NUMBE R , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER (EIN) OR TAX ID

. Legal Sponsor Name: Morgantown, City of,

Inc.

DUNS Number: 177686867

EIN/Tax ID: 556000215

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING :

1. C ITY OF M ORGANTOWN

__________________________________ 2._____________________

_______________________________ 3.____________________________________________________

4.____________________________________________________

C

. P ROVIDE THE FULL AIRP ORT NAME AND 3

- L ETTER IATA A IRPORT C ODE FOR THE APPLICAN T ( S ) AIRPORT ( S ) (O NLY PROVIDE CODES FO R THE AIRPORT ( S ) THAT ARE ACTUALLY SE EKING SERVICE ).

1. Morgantown Municipal Airport MGW 2

.

3

. 4

.Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 4 D. L IST THE 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG O RGANIZATION , AND IF A

CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY

.

1.WV

- 01 2

.

3

. 4

.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

☑ Not a Consortium Interstate Consortium Intrastate Consortium

☑ Community now receives subsi dized Essential Air Service

☑ Community (or Consortium member) previously received a Small Community Air Service Development Program Grant

If previous recipient: Year of grant(s): 2003 /2004

F

. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )

PUBLIC PRIVATE

1. West Virginia Aeronautics Commission 1. Greater Morgantown Convention and

Visitors Bureau

2. West Virginia University 2.

3. 3.

4. 4.

5. 5.

G

. P ROJECT P ROPOSAL : ( CHECK ALL THAT APPLY )

☑ Marketing Upgrade Aircraft New Ro ute

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start

- up Cost Offset First Service

☑ Study Secure Additional Service Other (explain below)Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 5 H

. E XISTING L ANDING A IDS AT L OCAL A IRPORT :

☑ Full ILS ☑ Outer/Middle Marker ☑ Published Instrument Approach

☑ Localizer Other (specify)

I

. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA

L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested 4 0 0 ,000

2 State cash financial contribution 20,000

Local cash financial contribution

3a Airport cash funds 0

3b Non

- airport cash funds 30 ,000

3 Total local cash funds ( 3a + 3b ) 30 ,000

4 TOTAL CASH FUNDING ( 1+2+3 ) 45 0 ,000

In

- K ind contribution

5 a Airport In

- Kind contribution ** 20,000

5b Other In

- Kind contribution ** 1 6 ,000

5 TOTAL IN

- KIND CONTRIBUTION ( 5 a + 5b ) 3 6 ,000

6 TOTAL PROJECT COST ( 4+ 5 ) 4 8 6 ,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.

Airport

– Grant Management and Administration

- $20,000

Greater Morgantown Convention and Visitors Bureau

– Advertising

- $ 6 ,000

West Virginia Univ ersity

– Advertising and Web Blasts to 29,000 Students

- $10,000Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 6 K

. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y S T ATE U NDER E XECUTIVE O RDER 12372
P ROCESS ?
This application was made available to the s tate under the Executive Order 12372
Process for revie w on (date) _____________.

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

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

L. I S T HE A PPLICANT D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE E XPLANATION )

☑ No Yes (exp lain)

_____________________________________________ _________________________________

______________________________________________________________________________Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 7 

### History

Background

In 1934 and 1935, the City of Morgantown purchased a sizable tract o f land near the

M i leground i n east Morgantown to construct an airfield. Construction began in 1935 and the Morgantown Municipal Airport (MGW) opened on November 9, 1937. Even before construction was complete, Tri

- State Aviation Corporation began regularl y scheduled flights to Pittsburgh and Charleston. Morgantown has enjoyed continuous comm ercial air service

ever since.

Air Service at MGW has declined in recent years. In the late 1990’s, service to Pittsburgh International Airport (PIT) and Washington DC National Airport (DCA) were offered by US Airways. Enplanements averaged approximately 25,000 per year during this period. With the economic recession of the late 1990’s and the terrorist attacks of 2001, air service declined at MGW and is currently approximately 10,000 enplanements per year. Figure 2 shows the decline that began in 1998 and the stabilization in enplanements that started in 2003.

Figure 2 . MGW Enplanements 1996 to 2017 0 5,000 10,000 15,000 20,000 25,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Historical 1996 to 2012

Forecast 2013 to 2017 Figure 1 . Morgantown Municipal Airport TerminalMorgantown Municipal Airport

201 3 SCASDP Grant Application Page 8 The decline necessitated the City of M organtown applying for, and being granted, status as an Essential Air Service market in 2004. That contract was awarded to Regions Air , flying as continental Connection, in 2005, providing service to Cleveland

- Hopkins International Airport (CLE) in Beech 1900’s. This service was not well received. Regions also had financial difficulties and declared bankruptcy and ceased flying in 2007 , leaving MGW without air service for sever al
months in 2007 . The EAS contract was then awarded to Colgan Airlines , fl ying as United Express, with service to Washington DC Dulles International Airport (IAD) in 2007. Colgan, which was bought by Pinnacle Airlines in 2007, chose to drop from the EAS market in 2012 and the EAS contract for MGW was awarded to Silver Airways , also flying as United Express . That service continues today.

Prior to 9/11, MGW enjoyed service to both PIT and DCA via US Airways Express. With the

extended shutdown of DCA following 9/11, that service terminated and only service to PIT remained. This is reflected in the steady decline in passengers as shown in Figure 2. When US Airways de

- hubbed PIT in 2004, MGW lost that service as well. Air service was t hen offered by Regions Air, flying as Continental Express with service to Continental’s hub in Cleveland. This service resulted in most of MGW’s traffic opting to drive, also reflected in Figure 2. Regions Air declared bankruptcy in 2007 and ceased all f lying to MGW in March of that year. Colgan Air, operating as United Express, was awarded the EAS contract in May 2007 and service was resumed, with flights to IAD. As can be seen from Figure 2, passenger counts rebounded to approximately 10,000 per year. In 2012, Colgan (now part of Pinnacle Airlines) also declared bankruptcy and announced that flights to MGW would cease after May of 2012. As the only carrier in the market, Colgan/Pinnacle was required to remain in the market until a new carrier

could b e found. In July of 2012, the EAS contract was awarded to Silver Airways, who has continued the service as United Express to IAD.

Today, MGW requires subsidies under the USDOT Essential Air Service Program (EAS)

. Service is provided by Silver

Air way s to Washington DC Dulles International Airport (IAD) with 18 flights weekly in 34 seat Saab 340
aircraft.

With four airlines offering service to
three different hubs in the past ten years, it has become difficult to convince residents of the Morgantown

area to fly from MGW. There are still members of the community that believe the service is offered to PIT, although that has not been true for over eight

years. There are others that believe the
service still continues to CLE and refuse Figure 3 . MGW Service AreaMorgantown Municipal Airport

201 3 SCASDP Grant Application Page 9 to fly the route. And , there are many that believe that competitive airfares cannot be found
here. The Airport needs to be able to inform the public of the service provided and convince
them to use it.



### Current Air Service Climate

Today’s air service climate in Northern Wes t Virginia is significantly different than it was 15 years ago. In the late 1990’s, PIT was a US Airways “fortress” hub with numerous domestic and international flights. Fares were also higher and the incremental cost of flying from MGW to

PIT was nomina l. Today, low cost carriers have moved into the market within a three hour
drive of MGW. Southwest Airlines and AirTran Airways, Southwest’s wholly owned subsidiary,

serve PIT . Southwest is also available at Baltimore Washington International Airport (B WI), at both Reagan National (DCA) and Dulles (IAD) in Washington DC, and at Columbus Inter n a tional Airport ( CMH ). As can be seen in Figure 3, all of these locations, with the exception of PIT, are

at the 200 mile “drive” limit for most people. PIT is only 88 drive miles from MGW. In the ultra

low cost market, Allegiant Air flies from Tri

- State Airport (HTS) in Huntington and Spirit Airlines flies from Latrobe Airport (LBE) in southwest Pennsylvania. All of these are well within the drive area for Morgant own residents.

MGW’s catchment area is very diverse. It contains the northern tier of counties in West Virginia, the southern tier of counties in southwest Pennsylvania, extreme western Maryland,
and several counties in northeast Ohio and includes some 2. 8 million residents. Within 100 miles of the Airport lie the cities of Pittsburgh and its s outhern suburbs. Except for a 5,200 foot main runway and the limits on this program imposed by being an Essential Air Service Airport, this grant application might have been for attracting low cost or ultra

- low cost service to MGW. However, it is for marketing and promotional activities to convince the people of the catchment

area to fly from this airport vice one of the others in the area.



### Future

Even with the p opulation and economic growth in this region, air travel from MGW continues to decline. The forecast for 2013 and beyond, as seen in Figure 2, is for a gradual decline. Only
a reintroduction to the community of the air service provided at MGW and the marketing of
th is airport and its ai r service t o those who could come to this area , offered by this grant, can
arrest this slide.Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 10 

### Eligibility

MGW is eligible for this program.

As of calendar year 1997, MGW was, and continues to be, a Non

- Hub Primary Service Airport

. While MGW’s airfares are reasonable, our service is only to Washington Dulles International Airpor t, which has third highest fares in the United States. The cumulative
effect of IAD fares added to MGW ’ s fares makes our fares among the highest in the

FAA ’ s Eastern Region.

The City of Morgantown was to receive a SCASDP Grant in 2003 in consortia with the City of Athens, OH and Ohio University. This grant was cancelled when the Athens Airport could not participate. The grant was re

- issued the following year to a consortium of the City of Morgantown and the City of Clarksburg for both MGW and the North Central West Virginia Regional Airport (CKB) . That grant was completed and
closed in 2007. That grant was to market the service from CKB and MGW to DCA . This grant is to market the service to and from MGW to the Midwest US via Washington Dulles, thus is a completely different project than the previous grant awarded to this Airport.

MGW is a recipient of subsidized service under the Essential Air Service program. As such, this project will only be used to market a nd promote the existing carrier.



### Selection Criteria

Priority Selection Criteria

1. Airfares are higher than the national average air fares for all communities.

Me ad and Hunt, Inc. analyzed air fare dat a for all airports that reported passengers for Calendar Year (CY) 2012. For the CY ending December 31, 2012, MGW had the second highest fares in the FAA’s East Region. MGW’s fares averaged $266 for the year against an average for all 57 airports in the region of $198. This equates to a fare from MGW being over 34% higher than the average.

2. The community or consortium will provide a portion of the cost of the activity from local sources other than airport revenue sou rces.
The community has pledged the following

State of West Virginia Aeronautics Commission

- $20,000 cashMorgantown Municipal Airport

201 3 SCASDP Grant Application Page 11

Greater Morgantown Convention and Visitors Bureau

- $ 30 ,000 cash a nd $6,000 in

kind West Virginia University

- $ 10 ,000 in

- kind
Morgantown Municipal Airport Staff will provide in

- kind service to m anage and administer the gra nt

- $20,000 in

- kind

3. The community or consortium has established or will establish a public

- private partnership to facilitate air carrier service to the public.

The City of Morgantown/Morgantown Municipal Ai rport has an established Air Service Committee made up of individuals representing:

City of Morgantown Greater Morgantown Chamber of Commerce Greater Morgantown Conventions and Visitors Bureau West Virginia University West Virginia University Athletics

Wes t Virginia University Hospitals

4. The assistance will provide material benefits to a broad segment of the traveling public, including businesses, educational institutions, and other enterprises, whose access to the national air transportation is limited.

The target audience for the project to be completed under this grant includes:

Local business people that are driving to another airport to travel or are driving long
distances for their business. Government workers traveling for their work.

Students and staf f from West Virginia University traveling for study and recreation. University researchers traveling to accomplish studies that support their research. Hospital staff and management. Tourists visiting the Morgantown area.

Student

- athletes, coaches, trainer s and boosters traveling from WVU for competition and other university teams traveling to Morgantown to compete with
WVU teams at home.

This broad audience covers most of the travelers in the Morgantown region and provides
the material benefits to the comm unity that air service affords.

5. The assistance will be used in a timely manner.

The time frame for completion of this project is three years.

6. Multiple communities cooperate to submit a regional or multistate application to
consolidate air service into one regional airport.

This project is to promote air service from MGW.Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 12 

### Secondary Selection Criteria

1. Innovation

This project will be innovative in that it is intended to target more than just the local market. Our intent is to target a specific group of pote ntial visitors to Morgantown, specifically travelers coming to Morgantown as visitors for athletic competition from the Midwestern US. This group was chosen in part to attract visitors as part of WVU’s recent transfer to the Big 12 conference and, by comi ng for athletic competition, to show visitors
the attractions of the Greater Morganto wn area and convince them to return for other

activities . Additionally, we intend to be innovative in our use of media, with electronic media such as web sites and other means being a significant part of the project.

2. Participation

This project is supported by a variety of local groups including:

US Senator Jay Rockefeller US Representative David McKinley The State of West Virginia Monongalia County The City of Morgantown

West Virginia Un iversity

T he Greater Morgantown Convention and Visitors Bureau and its members The Morgantown Area Cha mber of Commerce and its members

These groups have either pledge d monetary support or community support via a letter of support to US DOT.

3. Location

This grant is for the Morgantown Municipal Airport, located in the north central part of West Virginia.

The closest medium or large hub airport is Pittsburgh International Airport (PIT)

– a medium hub, commercial service airport

– which has low cost service with Southwest Airlines and
AirTran Airlines. PIT is 88 road miles from MGW. Arnold Palmer Regional Airport in Latrobe, PA (LBE)

– a primary, non

- hub airport

– has ultra

- low cost service with Spirit
Airlines. L BE is 61 driv ing miles from MGW.

The Morgantown Metropolitan Statistical Area (MSA) continues to grow. As can be seen in Figure 4

, while the population of Morgantown itself has remained flat, Monongalia CountyMorgantown Municipal Airport

201 3 SCASDP Grant Application Page 13

Total Population: Morgantown, Monongalia County, and MS A, 1970

- 2013

Year Morgantown Monongalia County MSA 1

1970 29,431 63,714 NA

1980 27,605 75,024 NA

1990 25,879 75,509 NA

2000 26,809 81,907 111,200

2010 29,660 96,189 129,709

2013 NA 100,332 134,164

Source: US Census; 1 Includes Monongalia and Presto n Counties

Figure 4

. Population Growth in the Morgantown MSA

has grown by almost 60% in the past 40 years and over 22% ju st in the past 13 years while the MSA population has grown over 20% in the same 13 years. It should be noted that these figures do not include the almost 30,000 students at West Virginia University.

The Morgantown region has been a bright spot in the state’s economy over the last five years, having grown rapidly despite the recession. Though the Great Recession slowed

economic growth nationall y, the Morgantown region never experienced the large declines in output or employment seen elsewhere in the state and nation. Indeed, in some sectors, Morgantown grew exceptionally fast over the last five years. However, a more modest growth is expected ov er the next five years.

Source: 2013 Morgantown Metropolitan Statistical Area Outlook, WVU College of Business and Economics Bureau of Business and
Economic Research
In the past three years, Latrobe, PA and Parkersburg, WV received grants under the SCASDP. This project should have no effect on their projects.

Other Factors

The proposed project addresses the problem within the limits of the Essential Air

Service restriction. Air service in this community has declined since 1996 and is forecasted to continue to decline over the next five years. The Airport has an annual budget that will allow for continuing marketing after the grant. The Airport also plans to continue this program for up to three years following this grant.Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 14 

### Project

The Problem

Air service u sage has declined over the past 20 years from approximately 25,000 enplanements

to approximately 10,000 enplanements . Usage is forecast to gradually decline over the next five years. This lack of usage affects MGW’s ability to provide quality air service that supports the needs of this community.

MGW requests assistance to implement measures appropriate for an Essential Air Service Airport under this program including, but not limited to:

An air service market study to determine the best way to present this Airport to those in the catchment area and those that are likely to fly here from other locations across the
country.

Marketing of the existing Air Service to Morgantown and the surrounding area and to
areas from which we woul d like to attract inbound passengers

.
Promotion of Air Service.

Promotion of a new EAS carrier. Silver Airways began service to the community on August 1, 2012.



### Air Service Needs and/or Deficiencies

Air service at MGW is not deficient. The Essential Ai r Service (EAS) contract requires Silver Airlines to provide three (3) flights per day on weekdays and three (3) flights on weekends. That equates to 936 flights per year, and at 34 seats per flight, to 31,824 available seats in the
market. Even if we we re to match the best year for enplanements in the past 17 years of 24,812, we would only have an average load factor of 78%. The deficiency at MGW is people
who choose to fill those available seats.

Although a formal leakage study has not been done, as Figure 2 demo nstrated, the drop in enplanements from 1996 to 2012 from approximately 25,000 to approximately 10,000
demonstrates that close to 60% of the travelers from the Morgantown area are flying from another airport. The question is why these people are maki ng that choice ? The bigger question
is how do we re

- introduce MGW to these travelers and convince them to use this Airport vice
the others ?

The air service need at MGW is passengers. The best way to convince the people in this community to fly the servic e from MGW is a marketing campaign that introduces the new service, demonstrates the reliability of that service, demonstrates the benefits of Dulles International Airport as a hub, and shows that the service is affordable and competitive toMorgantown Municipal Airport

201 3 SCASDP Grant Application Page 15 service offere d in other nearby airports. There is also a large untapped market of people that are expecting to come to Morgantown as fans for their teams. . West Virginia University joined the Big 12 conference just a year ago. The people coming to Morgantown to chee r their team as they compete with WVU should be explored and marketed to convince those people to use MGW as their gateway. Once those people fly to this area for a game, they will see the opportunities to enjoy the region and become potential visitors fo r other purposes.



### Target Market

The target market includes:

Local business people University students, faculty, and staff University researchers Federal government staff Hospital staff University athletic boosters, students, and fans



### Strategic Plan to Me et Air Service Needs of the Community

Goals and Objectives

There is only one goal for this project

– To increase ridership on the existing airline.

Objectives:

o Establish a three year marketing program in a variety of media.

o Engage a marketing consultant to assist in development and oversight of the

program

o Establish the program to be self

- sustaining over the following three years.Morgantown Municipal Airport

201 3 SCASDP Grant Application Page 16 

### Financial Plan

This project consists of Marketing and Promotion of the existing air carrier. The expected costs
are as fol lows:

Marketing Consultant

o $40,000/year for three years $120,000 Development of a new Airport Website

o $1 6 ,000 $ 1 6 ,000 Advertising in a variety of media

o Radio /TV/Print/Electronic/Billboards

o $1 10 ,000 per year for three years $3 30 ,000
Grant Admini stration

o $8,000 per year for first year

o $6,000 per year for second and third years $ 20,000
Total $4 8 6 ,000

Revenue Sources

SCASDP Grant $400,000 State of West Virginia Aeronautics Commission $ 20,000 Greater Morgantown Conventions and Vis itors Bureau $ 36 ,000 West Virginia University ( In

- Kind ) $ 10,000
Airport ( In

- Kind )

o Grant Administration $ 20,000

Total $4 8 6 ,000



### Differences From Previous Project

In 2003, Morganto wn was awarded a SCASDP Grant in consortium with Athens, OH for joint marketing of the two markets. Athens Airport was unable to take advantage of the grant , and the grant was deferred . In 2004, the 2003 grant was re

- awarded to a consortium of Morgantown and Clarksburg, WV to market service from the two communities to Washington Reagan National Airport.

This grant request is to provide marketing and promotion al assistance to market the air service provided from Morgantown Municipal Airport (MGW) to variou s comm unities in the United States via Washington Dulles International Airport (IAD). The difference is that IAD is not the ultimate destination most members of this community fly to. Most use IAD for its throughMorgantown Municipal Airport

201 3 SCASDP Grant Application Page 17 connections allowing the citizens of the Greate r Morgantown area access to IAD’s 104
worldwide destinations. Therefore, the marketing efforts should not stop with IAD, but continue to a variety of destinations, also raising awareness of people at those destinations to the availability of air service t o MGW.



### Designation of Sponsor

The sponsor for this grant will be The City of Morgantown, a legally chartered government under the laws of the State of West Virginia. The City is legally, financially, and otherwise able to administer the grant, including having the authority to assume and carry out the certifications, representations, warranties, assurances, covenants, and other obligations required under the grant agreement with the Department of Transportation and to ensure compliance by the grant recip ient with the grant agreement and grant assurances.