APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0133 

SUMMARY INFORMATION1

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

coversheet, a completed standard form SF424 and the full application proposal on 

www.grants.gov. 

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

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

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

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER 

(EIN) OR TAX ID.

Legal Sponsor Name: 

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

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

1.____________________________________________________ 

2.____________________________________________________ 

3.____________________________________________________ 

4.____________________________________________________ 

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE 

APPLICANT(S) AIRPORT(S) (ONLY PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY 

SEEKING SERVICE).

1. 2.

3. 4.

 

1 Note that the Summary Information does not count against the 20-page limit of the SCASDP application.
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)

______________________________________________________________________________

______________________________________________________________________________ 

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently 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):_______________________________; and, 

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

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

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

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.
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 Services2

Other (explain below)

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 

 

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing 

plan, study, air carrier proposal, etc.
Other (explain below) 

______________________________________________________________________________ 

______________________________________________________________________________ 

H. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

Full ILS Outer/Middle Marker Published Instrument Approach 

Localizer Other (specify)

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds

3 Total local cash funds (3a + 3b)

4 TOTAL CASH FUNDING (1+2+3)

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)

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)

______________________________________________________________________________

______________________________________________________________________________ 

APPLICATION CHECKLIST

INCLUDED? ITEM

For Immediate Action

Determine Eligibility

New Grants.gov users must register with www.grants.gov.

Existing Grants.gov users must verify existing www.grants.gov account has not expired 

and the Authorized Organization Representative (AOR) is current.

For Submission by 5:00 PM EDT on July 31, 2014

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate 

existing grant in order to be eligible for selection in FY2014 

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

Summary Information schedule complete and used as cover sheet (see Appendix B)

Application of up to 20 one-sided pages (excluding any letters from the 

community or an air carrier showing support for the application), to include:

• A description of the community’s air service needs or deficiencies.

• A strategic plan for meeting those needs under the Small Community Program.

• A detailed description of the funding necessary for implementation of the 

community's project. 

• An explanation of how the proposed project differs from any previous projects 

for which the community received SCASDP funds (if applicable). 

• Designation of a legal sponsor responsible for administering the program.

• A motion for confidential treatment (if applicable) – see Appendix D below.
Docket DOT-OST-2014-0113

Proposal under the Small Community Air Service 

Development Grant Program 

Golden Triangle 

Regional Airport

Under 49 U.S.C. 41743 et seg 

DUNS # 075457010

Congressional District # MS-01
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 2

Table of Contents

SUMMARY OF PROPOSAL 3

The Proposed Solution 4

INTRODUCTION: THE GOLDEN TRIANGLE MARKET 7

Circuitous Routings = Higher Fares 10

Sizing The Traffic Loss 12

THE GRANT SOLUTION 13

The Market Is Ready - And Will Be Profitable 13

GRANT ADMINISTRATION PLAN 15

General Application of Grant Funding 15

Carrier Negotiations & Agreement 15

Program Fund Allocation 16

Marketing & Advertising Support 17

Post-Grant Support 17

SUMMARY OF APPLICATION 19
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 3

Summary of Proposal

Golden Triangle Regional Airport (GTR) serves a wide region, including Columbus, 

Starkville, and West Point, comprising a population area in 

excess of 220,000.

Over the past decade, Golden Triangle Regional Airport has 

become the gateway and the center of $5.5 billion in major 

industrial development and investment. This includes:

• Mississippi State University: Located approximately 14 miles west of Golden 

Triangle Regional Airport, Mississippi State University has over 20,000 students 

enrolled and over 1,200 faculty members. Growing relationships with points in Asia.

• Airbus Helicopters:. Over 400 employees and headquarters in the DFW Metroplex., 

plus strong traffic generation to Asia and Latin America.

• PACCAR: Manufacturer of Peterbilt and Kenworth trucks. The firm has major 

facilities in the DFW Metroplex as well as in the Northwest US. Because of the 

extensive back-tracking over ATL, and the higher fares attendant to this routing, this 

major industry faces significant travel constrictions.

• Severstal International: Russian owned company, with over 650 employees at 

Columbus, MS location. Total investment in region is $1.8 billion. Growing Asian 

business relationships.

• Aurora Flight Sciences: Global Aerospace defense contractor that designs and 

produces Unmanned Aerial Vehicles. US headquarters in Washington, DC, with ties 

to Dallas market driven by Gulfstream production

• Yokohama: Tire company building a $1.2 billion dollar facility. Very strong Tokyo & 

Osaka traffic potential.

These expansions have outstripped the levels of air service at GTR. Most cogently, this 

economic growth is now threatened by three air service deficiencies:

 GTR capacity today is 31.4% below the levels in 2004 – over 100,000 

arriving and departing seats annually.1

 There is no direct westbound access to and from GTR. All travel to 

points in the Western United States requires lengthy – and expensive –

back tracking connections over Atlanta.

 Current fares – based on nonstop mileage to key destinations, are 

between 18% and 20% higher than competing airports that have 

omni-directional connectivity over multiple hubs.

Today, despite the influx of this global business, GTR market has only three daily flights 

– totaling only 150 seats each way – to the Delta hub at Atlanta. Because capacity has 

 

1

Source: airline schedules filed for year 2004 v year 1014.

Due to mergers & airline 

consolidation, GTR now 

finds itself with 

insufficient air service to 

support its growing 

global-based economy
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 4

not matched the explosion in the region’s global economic expansion, these flights tend 

to be full and result in both spillage of traffic, as well as high fares. 

Meetings with Delta to increase service to ATL have been unsuccessful, as the carrier 

claims to have a shortage of available lift. But even with more capacity to ATL, the GTR 

market will still have the major air service deficiency of no consumer-convenient access 

from the Western United States, which is where most of the new industries in the region 

have the majority of their business.

This is the challenge which represents a growing and economically-threatening air 

service deficiency. Because of mergers, cutbacks in fleets and changes in airline 

strategies, GTR today is connected to the globe via a very thin and tenuous three flights 

per day to Atlanta. This makes access to and from the US west a very time-consuming 

back-track process. It also leaves the region with only one airline system – Delta.

Discussions have been held with carrier systems that have the ability to address this set 

of deficiencies – lack of capacity and lack of westbound access. However, riskabatements that will be necessary far outstrip the ability of the community to raise such 

funding. It is here where the grant will be necessary.

The Proposed Solution

This situation is specifically what the Small Community Air Service Development Program 

was created to address. GTR and the region it serves today require additional air service 

access to satisfy, support, and maintain the economic growth that this region of 

Mississippi has experienced. 

To that end, the Airport and community are requesting a grant in the amount of 

$750,000, with a substantial local match, to recruit service to a westbound air gateway. 

This would be branded service on the American system to Dallas/Ft.Worth International, 

the United system to Houston Intercontinental, or the United system to Denver. A 

minimum of two daily round-trip flights are the goal.2

The grant funds will be matched by $500,000 in local cash (for a total of $1.25 million) 

plus fees and waivers representing another $200,000 of in-kind support. Of the total 

funding – DOT and local match, $50,000 is intended for hard marketing of the service, 

with the remainder being in reserve within a risk-offset mechanism. As shown in this 

document, the very high demand represents a low risk for the grant funding. 

This Grant Is Designed To Provide Immediate Results

The traffic demand is in place. The higher fares and lack of air service access that the 

SCASD program is in place to alleviate are material. This grant will allow the airport to 

 

2 As the Department knows, the American and United brands consist of a combination of certificated carriers, such as 

ExpressJet, Mesa, Piedmont, Air Wisconsin, TranStates, Chautauqua, SkyWest, Envoy, GoJet and Republic, which operate 

significant portions of the AA and UA systems. In this proposal, one of these certificated carriers will be the likely 

operator, and the targeted recipient of the revenue risk-offset proposed.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 5

continue to grow. In the absence of this assistance, this region of Mississippi will see 

stagnation of economic investment in the future.

The grant requested will successfully accomplish the following:

 Resolve Clear Air Service Deficiencies. The grant herein will allow GTR to 

recruit service to a major westbound air service gateway. Specifically, the aim is 

the American Airlines hub at DFW, the United Airlines hub at Denver, or the 

United Airlines hub at Houston Intercontinental. All of these would represent 

fundamental relief from the current air service deficiency.

 Engender New Investment. GTR is the site of substantial investment by 

companies such as Airbus Helicopter, with large facilities in Texas. Expansion of 

their GTR facilities will be dependent on air service access to the West, without 

the necessity of a four-hour (at minimum) back-track over Atlanta. 

The Golden Triangle community has worked tirelessly to attract and retain business 

partners over the last several years. These businesses provide a boon to the local 

economy, offering good paying jobs and benefits for the local residents. 

The air service that this grant will engender will allow these companies reassurance that 

their decisions to establish a presence in the GTR region was the correct one.

Need For Grant Support

The Department is well aware of the current difficult situation in the airline industry. 

Carriers today seek to avoid risk, and that includes 

situations that involve initiation of new service, even in 

markets where the traffic demand is high and the potential 

for success great. 

Today, in light of the enormous financial challenges facing 

the airline industry, some form of economic risk-reduction 

must be in place to attract new service such as that which 

is proposed in this document. 

Preliminary discussions with the carriers have made clear that such would be necessary 

to attract this service.

The Risk-Abatement Program

The Airport and Community plan to apply $1.2 million of the total program cash toward 

a clearly-defined and agreed-upon revenue guarantee program for the first year of the 

proposed service. 

The remaining $50,000 will be in the form of a well-targeted marketing program within 

the GTR air service region. It is noted that westbound access is not service that needs to 

US Airline fleets are not 

expanding in total 

numbers of aircraft. 

Therefore, GTR will need 

strong financial 

incentives to resolve this 

air service deficiency.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 6

be strongly promoted – the local industries currently have strong demand for efficient 

westbound access, and the new service will see rapid traffic build.

The revenue guarantee will be drawn upon only if reasonable, pre-determined traffic 

and revenue generation goals are not met. At the end of the 12-month period any DOT 

revenue-guarantee funds not used will be relinquished to the Department.

The community believes that this request fills both the intent and the spirit of Congress 

in implementing this program. The community has a pressing air service deficiency that 

drives fares higher than competing airports, and is threatening to slow the strong 

economic growth in the Golden Triangle region. 

The unique community enthusiasm for business development that will support this new 

service is showcased by the growing investment in the region by diverse manufacturing 

companies such as Severstal Steel, Weyerhaeuser Corporation Printing Paper, Airbus 

Helicopter, PACCAR, and Baldor Electric Company. These companies, and ones like 

them, have many options as to where to establish facilities. The fact that they did so in 

the Golden Triangle region speaks volumes about their vision for the future in the area, 

and increased air service would certainly reinforce those expectations.

Grant Administration

This application is submitted by the Golden Triangle Regional Airport Authority and will 

be the organization responsible for the administration of the grant funds. The 

community support for this application is broad and encompasses the entire business 

base of the region.

Project Sponsors & Community Partner

The official sponsor of this project is the Golden Triangle Regional Airport Authority.

The community partnership will be directed by the Columbus-Lowndes Community 

Development LINK

The community and the Airport appreciate the time and efforts of the Department in 

reviewing this application, and look forward to a favorable decision. Please direct any 

correspondence regarding this matter to:

Mr. Michael P. Hainsey

Executive Director

Golden Triangle Regional Airport

2080 Airport Road

Columbus, Mississippi 39701

662-327-4422
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 7

Introduction: The Golden Triangle Market

The Golden Triangle catchment area comprises all or parts of 12 counties, with a 

population base of approximately 220,000 people.

Golden Triangle’s stature as a developing commercial and industrial center is 

strengthened by its location at the junction of two major Interstate highway arteries. 

From an air service perspective, however, these highways facilitate access to Jackson, 

Birmingham, and even now-“dehubbed” Memphis, where lower fares and nonstop 

service to both DFW and IAH are still in place. This grant will substantially reduce that 

leakage and allow for more convenient service for the GTR market area.

The western US business travel base at GTR is sensitive to the fact that traveling 

through Atlanta to connect to points west is a major inconvenience and drain on 

valuable time. The additional alternative access to the DFW, DEN or IAH hub will be a 

major upgrade to address this deficiency.

Golden Triangle: The Case for Westbound Service

Given the economic development in the GTR region, the need for westbound 

connectivity – which this grant will make possible - is of the utmost importance to the 
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 8

economic future of Mississippi. The following entities have difficulty in expanding and 

attracting new business with the current air service, which requires expensive back-haul 

flying over Atlanta.

While the Delta service to Atlanta has excellent connectivity to the east coast and 

Europe, the route leaves a major deficiency in access to the western US. 

PACCAR, a truck manufacturer, has extensive operations in the US Northwest, with its 

Kenworth and Peterbilt factories. Airbus Helicopters has major facilities and their 

headquarters in the DFW region. Yokohama, a global tire manufacturer is building a 

plant in the GTR region, and access to and from Asia and Japan is now limited to the 50-

seat Delta flights that are not only typically booked full, but involve substantially more 

travel time and expense than accessing connecting opportunities from DFW, IAH, or 

DEN.

A factor often not fully recognized is the competitive situation among major universities 

such as Mississippi State. MSU competes nationally and globally for the best staff, 

research teams, and students. The difficulty in accessing GTR puts this top-tier center of 

learning at a major disadvantage.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 9

GTR Today Is Only “Half Served”

Today, the need for US and global access for GTR is more critical than ever. The growth 

in the local economic and industrial base represents demand for service across the 

nation and to international points as well. Much of the industrial growth has been with 

companies with roots in the EU. The current Delta service – at a bare-bones three daily 

50-seat RJ flights – only partially addresses this need. However, the community is 

partially cut off from the nation west of the Mississippi by virtue of lack of access to a 

western airline hub gateway. 

The result is that western access to and from GTR involves substantially more flying –at 

least six hours per round trip in additional travel time.3 

For example, the flying travel distance today between GTR and DFW (where there is 

substantial demand from PACCAR and Airbus Helicopter, among others) is almost 50% 

more than a nonstop flight would be to American’s DFW hub. Access to Houston 

represents 60% more flying.

 

3

This is 1.2 hours to Atlanta, at least one hour for connect time, and retracing the miles west.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 10

Circuitous Routings = Higher Fares

Because the current and deficient air service requires consumers to and from the 

Western United States to connect over ATL and then backtrack, the total miles flown are 

much higher than at other airports with more adequate access. Therefore, when we 

compare GTR to other regional airports, based on the fares per mile based on the 

nonstop great-circle distance, it is apparent that GTR has materially higher costs of air 

travel.

Because of the air service deficiency at GTR, consumers suffer much higher airfares that 

at other airports in the region. A review of the average one-way fare paid at GTR v 

other points in the region underscores this:4

 

4

Full Year 2013, fares reported to DOT, and expressed as one-way averages, including federal fees and taxes.

GPT HSV

$314.19 $259.58 $245.13 $273.45 $302.90

$ Variance: $54.61 $69.06 $40.75 $11.29

GTR Percent Premium 21.0% 28.2% 14.9% 3.7%

GTR JAN BHM
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 11

It is noted that the average one-way fare paid at GTR in 2013 was even higher than 

Huntsville, which is often reported by the media as having among the highest fares in 

the nation.

To key western destinations, particularly some that have strong current or growing 

business ties with the GTR region, the variance in average fares paid by consumers is 

often astronomically higher than the averages shown above. Reviewing average oneway fares paid in 2013, including taxes and federal fees, it is clear that the lack of direct 

access to the west is resulting in higher travel costs and depressed demand.5

Note that two key destinations that have strong military-related communities of interest 

with Columbus Air Force Base – Colorado Springs and San Antonio – have very wide fare 

disparity with Jackson. 

The Airport and the community would respectfully submit that these data clearly 

demonstrate the air service challenge that Golden Triangle Regional Airport is facing, 

particularly as it continues to compete for industrial investment in the area.

 

5 Average one-way fares paid, including federal fees and taxes for full year 2010. Source: DB1B data 

analyzed by Aviation DataMiner.

Percent

Market AVG Fare AVG Fare Variance

DFW $271.04 $200.63 35.1%

IAH $328.71 $179.00 83.6%

LAX $386.30 $340.53 13.4%

DEN $310.43 $268.74 15.5%

SFO $395.45 $342.64 15.4%

SEA $429.71 $348.38 23.3%

SAN $400.97 $338.03 18.6%

SAT $350.75 $237.33 47.8%

AUS $326.05 $220.10 48.1%

ELP $382.04 $324.75 17.6%

OKC $307.13 $245.63 25.0%

COS $708.98 $256.91 176.0%

HNL $666.81 $544.45 22.5%

GTR JAN
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 12

Sizing The Traffic Loss

To size the loss in traffic demand that this grant can help recapture, key destinations in 

the western US to/from JAN/GTR region were listed, based on year 2013 traffic.

This was then related to the passengers-to-population for each airport:

Without question, GTR is not capturing the westbound traffic it is now generating. 

Service to DFW, DEN or IAH, as outlined in this application, will not only capture this 

traffic, but can also stimulate new traffic demand. (Note that the analysis covers only 

the largest western destinations.)

GTR JAN Region

Market O&D O&D TOTAL PSGR

DEN 1,549 22,608 24,157

HOU/IAH 1,510 121,155 122,665

DFW 1,358 54,382 55,740

LAS 1,112 19,532 20,644

LAX 1,373 27,844 29,217

SAN 846 10,917 11,763

SAT 1,142 15,368 16,510

SEA 1,913 12,589 14,503

SFO 1,292 13,300 14,592

SJC 226 3,630 3,856

SLC 882 8,335 9,216

SMF 469 5,758 6,228

SNA 587 6,687 7,274

Total 14,260 322,105 336,365

JAN Estimated Catchment Population 629,000

GTR Estimated Catchment Population 220,000

Total Region Population 849,000

Jackson - Western US O&D - Key Markets 322,105

GTR - Western US O&D - Key Markets 14,260

Total Western O&D - Key Western Cities 336,365

Ratio of Western O&D to Population 0.40

GTR Population - Est. Generation To Key Cities 87,162

Current GTR Capture (2013) 14,260

GTR Lost Traffic Due Lack of WB Service 72,902
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 13

The Grant Solution

In the new consolidated airline industry, there are only a limited number of gateway 

options open to GTR in regard to attaining westbound access. These are the branded 

systems of United/DEN, United/IAH, and American/DFW.

Any of these three access gateways would satisfy the current air service deficiency at 

GTR, and open the region to new economic opportunities in the Western United States. 

In this proposal, data for access to DFW are show as examples of the very high potential 

for this service to be successful. A pattern of two daily round-trip flights with 50-seat jet 

airliners is the baseline service level proposed.

The Market Is Ready - And Will Be Profitable

Based on leakage reviews shown in the prior section, GTR today is losing at least 72,000 

annual O&D passengers due to the lack of efficient access to and from the Western 

United States.

GTR-DFW represents a huge opportunity not only for the region, but for the American

Airlines system. To be conservative, the GTR projections were based on the known and 

established DFW service operated by American Airlines from much larger Jackson.

Adjustments were made for market size and the longer length of haul to DFW. Traffic 

projections were then adjusted to assume an 80% capture rate. No adjustment was 

made for expected market stimulation due to the entry of nonstop flights, nor the 

expected levels of new Asian traffic generated by Yokohama Tire.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 14

In addition, no adjustment was made for the expected major increase in Asian traffic 

demand with the completion of the Yokohama Tire factory.

These data are very conservative, and are clear indications that the grant dollars 

invested in GTR will not only provide a strong increase in air service, but will do so at 

very low risk to the DOT.

Analyses of United/IAH produced a similar result. United/DEN is also a potentiality, but 

the longer stage length makes it more problematic.

GTR - DFW Mileage 491

Local GTR-DFW Yield $0.4344

Connecting Traffic Yield $0.1537

Avg Beyond DFW Segment Miles 901

Equipment CRJ-200

Service Pattern 2x Daily

Annual Segments 1,431

Completion Factor 98.0%

Annual Seats 71,540

Annual ASM 35,126,140

Estimated CASM 0.185

Estimated Route Cost - Annually $6,498,336

Traffic Revenue

Local Traffic & Revenue 15,118 $3,224,230

Flow Traffic & Revenue 39,944 $5,591,300

Onboard Traffic & System Revenue 55,062 $8,815,530

Full Year Segment Projected Operating Profit $2,317,194

Segment RPMs 27,035,426

Segment Load Factor 77.0%

Proforma Projection

Projected Operational Statisitcs

Traffic & Revenue Summary
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 15

Grant Administration Plan 

General Application of Grant Funding

The grant requested in this application will be applied only to provide assurances

regarding the levels of revenue the target airline will attain, based on reasonable, prenegotiated passenger projections.

Fundamentally, this is not a subsidy – if the revenue targets are met, no funds will be 

due the carrier. The program will simply provide a safety net to offset the airline’s 

legitimate initial risks in opening a new nonstop market.

This approach has been used successfully at a number of other small airports with the 

assistance of SCASD program grants. It will also be successful at Golden Triangle 

Regional Airport.

Carrier Negotiations & Agreement

Upon grant award, the Airport will initiate negotiations with the specific operating

carriers within the American or United systems. The Airport will propose the following, 

with the final agreement subject to Department approval:

 Provision for two daily (reduced week-end) frequencies, timed to connect with 

the carrier systems’ flight banks at the connecting hub – American’s system at 

DFW, United’s system at Denver, or United’s system at IAH;

 A pre-agreed per-segment cost for the operation. This will include a fuel factor 

(escalator and deflator) and will be based on historical published costs for E-Jet, 

ERJ (or CRJ) aircraft, and will vary depending on the specific operator. The cost 

will include a reasonable profit hurdle to be agreed upon.

 It is noted that there is considerable current and pent-up demand for the access 

that the grant-supported service will provide. Therefore, the risk-offset will be for 

one year only.

 Reliability will be crucial to the success of the service. Therefore, strict schedule 

performance standards will be 98% controllable flight completion, 95% on-time 

(w/in 15 minutes of schedule) arrivals, based on airline-controllable factors.

 The agreement will contain stipulations on reasonable pricing and availability of 

discount seat inventories on the flights. The Airport will require the airline to 

provide updates regarding pricing and availability on the route to assure that 

fares approximate those in similar markets operated by the airline.

 Airline operational and revenue performance will monitored monthly and 

reported to DOT on a quarterly basis. The final accounting of any revenue 

support will be made at the end of the 12-month period.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 16

 Determination of any risk-offset dollars owed to the airline will be made at the 

end of the grant period, adjusted for any service failures. In no case will the 

carrier be due more than the total of the revenue support portion of the 

program.

The Airport will not make any agreement without the Department’s review and approval. 

The Airport will provide the Department with a complete summary of the revenue 

support agreement that is consummated with the air carrier that will operate the route.

The Airport will provide the Department with a progress report on the revenue support 

program on a quarterly basis, or as the Department may otherwise specify.

Program Fund Allocation

The program is intended primarily provide a revenue guarantee to reduce the carrier’s 

initial risk in entering and building the GTR market. In addition, there will be a local 

marketing effort that will engender local awareness and support for the new service.

In addition, the new service will qualify under the airport’s air service enhancement 

program, and will represent approximately $200,000 in in-kind and fee waivers, which 

are in line with the FAA’s restrictions and policies on incentive programs.

Support – Negotiations & Related Activities

Promptly upon approval of this application, GTR staff will initiate negotiations with the 

target carrier systems.

These will include clear cost and revenue goals agreed-upon in advance. The proposed 

flight schedule will be reviewed for connectivity. The Airport will have the option of 

cancelling the program with sufficient notice to the carrier should the traffic and revenue 

not build sufficiently during the 12-month period. 

Revenue Guarantee Component

The target carrier would be required to provide a minimum of two round-trip flights 

daily, using at minimum 50-seat jets. The program would establish strict standards, 

including a schedule completion requirement of 98%, ex-weather. 

The revenue guarantee will be structured based on projected local traffic as well as a 

mechanism for credit for beyond-hub revenues generated by the new service. With the 

Application Grant Funds Local Match Total

Risk-Abatement $720,000 $480,000 $1,200,000

Marketing $30,000 $20,000 $50,000

Totals $750,000 $500,000 $1,250,000
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 17

agreement of the Department, GTR would propose a structure similar to that used 

successfully at other airports that have built service with grant-funded revenue off-set. 

Minimum revenue goals will be established, and monitored monthly. Any variance would 

be computed at the end of the grant period.

Based upon the traffic projections completed by the Airport, it is expected that the 

market will attain self-sufficiency in a reasonably quick period. The community would 

agree to relinquish any unused grant funds back to the Department after 12 months 

from start of service.

Marketing & Advertising Support

The Community intends to implement an aggressive targeted program of advertising 

and marketing to assure that the new service builds traffic quickly and with minimum 

draw on the revenue guarantee. These will include:

 Pre-Operations Support: It is critical that the community be made aware of the 

new service, but within a reasonable timeframe before it begins. As illustrated in 

the data herein, it is believed that the ramp period to economically-viable 

bookings will be short, but the local print and electronic media will be used to 

promote the service with a blitz 30-day before the first flight.6

 Civic Contact: Community groups will be tapped to allow Airport staff to present 

the new service at key membership functions. 

 Airport Events: In conjunction with the target carrier, events at Golden triangle 

Regional Airport will be planned to raise the profile of both the new service as 

well as the incumbent Delta service to Atlanta

Post-Grant Support

Golden Triangle Regional Airport has an aggressive marketing program focused on the 

new emerging industries establishing facilities in the region. Direct contact with travel 

departments at important businesses such as Airbus Helicopter, PACCAR, and others will 

assure that ridership remains strong after the 12-month grant period. In addition, the 

Airport and community have resources to market the service within the region.

Because the majority of the passenger traffic is expected to be business-driven, the 

Airport will continually work with the target airline to assure that the carrier’s marketing 

is well-focused on the key corporations that have facilities in this region of Mississippi.

 

6 Booking decisions are now made very close to travel date. A media blitz earlier than 30 days will not be fully effective.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 18

Past Air Service Development Activities

The airport and the community have worked very hard to retain existing service and 

recruit new carriers to the market. In the very tough environment of the past five years, 

it has been a very difficult challenge.

On a routine basis, the Airport has meetings with incumbent Delta, as well as with target 

new entrant carriers. As the Department is aware, however, the pull-down of hubbing 

levels at STL, CVG, and most recently, MEM, CLE and CVG has resulted in much-reduced 

opportunities to attract new service.

Prior Grant Applications

The Golden Triangle Regional Airport was awarded a grant in year 2007 which was for a 

risk-abatement program specifically to attract a second carrier to the airport. After grant 

award, the Department allowed the grant to be used to underwrite additional incumbent 

Northwest/Delta service. The service was a success in a very short period of less than a 

year. It was discontinued, however, when Delta reduced and ultimately eliminated the 

former Northwest hub at Memphis, as a result of its merger with that carrier.

This current application is different in goal and in intent. The influx of new businesses to 

the region in the past five years has created a pressing need for access to points in 

Texas and the Northwest US, as well as for points in the West 

The Grant Will Create Competitive Balance 

Golden Triangle Regional Airport is now served by only one airline system, and only to 

one of that carrier’s connecting hubs. While the community is grateful for this air 

service, there is a greater need for the business community as well as the leisure 

travelers. 

The extensive economic growth and the expectation of future growth demands 

enhanced connectivity to the west, and DFW or IAH support that connectivity. Healthy 

competition among airline systems will help reduce fares, add greater route efficiency, 

and allow the consumer to make more than just one choice when going on a business 

trip or a vacation. 

The Golden Triangle Regional Airport Authority would respectfully submit that the Small 

Community Air Service Development Grant Program was designed to address this type 

of situation. It is further noted that the grant will result in materially-improved air 

service, with minimal risk to the scarce funds allocated by Congress to this program.
Proposal of Golden Triangle Airport 

2014 Small Community Air Service Development Grant Program

Docket DOT-OST-2014-0113 Page 19

Summary of Application

The Golden Triangle Regional Airport Authority believes that this application is consistent 

with the goals of the Small Community Air Service Development Grant Program. 

 It addresses a demonstrable air service deficiency – lack of western 

connectivity and high fares that are causing substantial leakage and lost 

economic impact.

 It will open an entire region of Mississippi to the Western United 

States. 

 It will foster goodwill with the business community that the region has 

worked so hard to build up over the last several years. The business community 

needs easy, affordable access to the western US.

 It will help to bring fare discipline to the GTR market. In 2013, consumers 

at GTR actually paid on average 21% more than consumers at nearby 

Jackson, (to some western destinations, as much as 80% more) resulting in 

significant leakage and lost economic impact to the Golden Triangle region.

Based on these data, the Airport would ask the department for favorable consideration 

to this application.


August 1, 2014 

Brooke Chapman

Associate Director

Small Community Air Service Department

Office of Aviation Analysis

U.S. Department of Transportation

1200 New Jersey Ave., SE

Washington, DC 20590

Room W86-307

Dear Ms. Chapman,

On behalf of Mississippi State University, I am writing in support of the Small Community Air 

Service Grant application that has been submitted by the Golden Triangle Regional Airport (GTR).

The purpose of the airport’s application is to address air service deficiencies and increase access to 

the national transportation system for the region. Specifically, the grant proposal addresses the lack 

of available capacity to/from the western United States. As an organization who utilizes GTR as its 

primary airport for travel purposes, we support additional capacity and an increase in nonstop 

destinations for the greater GTR community. We also believe that increased capacity and a new 

destination will allow for healthy competition among carriers at GTR.

Mississippi State University is the largest user of the GTR airport, and has faculty, staff and students 

flying every direction worldwide. As a top-tier research university, we have meetings, conferences, 

and research endeavors in every state, and many countries. Currently to travel west, we are required 

to fly first to Atlanta, which adds time and inconvenience to these trips. Our university is growing 

in terms of both students and research programs, thus this limitation will be even more so in the 

future.

We urge the Department of Transportation to give the Golden Triangle Regional Airport’s

application favorable consideration. Please feel free to contact me with any questions.

Sincerely,

David R. Shaw, Vice President for Research

and Economic Development


Airbus Helicopters, Inc. 

1782 Airport Road 

Columbus, MS 39701 

(662) 327-6226 

www.airbushelicoptersinc.com 

CONFIDENTIALITY NOTICE: This document may contain confidential, 

privileged, or otherwise protected information. If you are not the intended 

recipient, please do not use, copy, forward, or disclose the contents of this 

document. Instead, please inform the sender that you received the document 

and then discard it. 

July 21, 2014 

Brooke Chapman, Associate Director 

Small Community Air Service Department 

Office of Aviation Analysis 

U.S. Department of Transportation 

1200 New Jersey Ave., SE 

Washington, DC 20590 

Room W86-307 

Dear Ms. Chapman, 

On behalf of Airbus Helicopters, Inc. – Columbus Mississippi, I am writing to request U.S. Department of 

Transportation approval of the Small Community Air Service Grant application submitted by the Golden Triangle 

Regional Airport (GTR). 

The purpose of the airport’s application is to address air service deficiencies and increase access to the national 

transportation system for the region. Specifically, the grant proposal addresses the lack of available access and 

capacity to/from the western United States from GTR. 

Airbus Helicopters – Columbus, Mississippi, is located on the GTR airport and utilizes GTR as its primary airport for 

commercial travel purposes, when we are able. Westbound access, significantly relevant for this grant application, is 

a substantial problem for Airbus Helicopters. Our U.S. company headquarters is located in the greater Dallas/Fort 

Worth area, and the lack of service to/from western destinations is a deficiency which threatens to limit future 

economic expansion here in Mississippi, increases operating costs and reduces the productivity of my workforce. 

Based on analysis of Airbus Helicopters travel data (utilizing a quarter-based sampling methodology) since January 

2012, the deficiency of access to/from western destinations is significant. Our analysis indicates, on average, we 

experience over 408 western-related commercial flight segments annually. Many, if not most, of these segments 

require employees to drive via personally operated vehicles to departure cities with western access. Most frequently, 

these departure locations are Birmingham, Jackson or Memphis. Return segments require similar use of personally 

operated vehicles or rental cars via these same locations. Lastly, as I look forward at future workload, I anticipate a 

greater than 10% growth in air travel requirements to western destinations due to the addition of a commercial 

helicopter assembly line in Mississippi which begins production in September of this year. 

The impact of this deficiency in western air service access to/from GTR is not unique to Airbus Helicopters. The 

entire region suffers from this deficiency. Increased economic investment in the Golden Triangle Region over the 

past several years has added thousands of industrial jobs, but commercial air service, in general, has not kept pace 

with this growth. Additionally, this growth is exacerbated by the lack of western access via GTR. The region’s air 

travel needs exceed the current level of air service. In addition to western access and capacity, an increase in 

nonstop destinations for the greater GTR community is severely needed. 

For these specific and empirical reasons, I urge the Department of Transportation to give the Golden Triangle 

Regional Airport’s application favorable consideration. If I can answer any additional questions, I can be reached via 

662-244-6300. 

Very respectfully, 

Sam Adcock 

VP and General Manager