Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM
DOCKET DOT

- OST

- 2013

- 0120

SUMMARY INFORMATION

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. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL NUMBE RING SYSTEM (DUNS)

NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER (EIN) OR TAX ID

. L EGAL S PONSOR N AME : W ESTOVER M ETROPOLITAN D EVELOPMENT C ORPORATION DUNS N UMBER : 066980194 EIN/T AX ID: 042553520

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING : 1. W ESTOVER M ETROPOLITAN D EVELOPMENT C ORPORATION ; C HICOPEE , M ASSACHUSETTS
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 FOR TH E AIRPORT ( S ) THAT ARE ACTUALLY SE EKING SER VICE ).
1. W ESTOVER M ETROPOLITAN A IRPORT ( CEF ) 2.
3. 4.Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 2 D. L IST THE 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATIN G COMMUNITY

.
1. MA

- 0 2 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 subsidized Essential Air Service
Community (or Consortium member) previously received a Small Community Air Service Development Program Grant
If previous recipient: Year of grant(s):

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )
PUBLIC PRIVATE
1

. W ESTO VER M ETROPOLITAN D EVELOPMENT C ORPORATION 1. G REATER S PRINGFIELD C ONVENTION AND V ISITORS B UREAU 2. 2. R EGIONAL T ECHNOLOGY C ORPORATION 3. 3. W ESTFIELD B USINESS I MPROVEMENT D ISTRICT 4. 4. N ORTHAMPTON B USINESS I MPROVEMENT D ISTRICT 5. 5. S PRINGFIELD B USINESS I MPROVEMENT D ISTRICT 6. W ESTMASS A REA D EVELOPMENT C ORPORATION

G. P ROJECT P ROPOSAL : ( CHECK ALL THAT APPLY ) Marketing Upgrade Aircraft New Route
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee
Launch New Carrier Start

- up Cost Offset First Service Study Secure Additional Service Other (explain below)

Gound Handling

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT : Full ILS Outer/Middle Marker Publis hed Instrument Approach
Localizer Other (specify)Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 3 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 $ 450,000
2 State cash financial contribution
Local cash financial contribution
3a Airport cash funds $ 25,000
3b Non

- airport cash funds $ 25,000
3 Total local cash funds ( **3a + 3b** ) $ 50,000
4 TOTAL CASH FUNDING ( **1+2+3** ) $ 500,000
In

- Kind contribution
5a Airport In

- Kind contribution** $ 308,330
5b Other In

- Kind contribution**
5 TOTAL IN

- KIND CONTRIBUTION ( **5a + 5b** ) $ 308,330

6 TOTAL PROJECT COST ( **4+5** ) $ 808,330

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. Westover Metropolitan Airport will waive landing fees, apron fees, terminal use fees, office space rent, and baggage make

- up area fees for up to four flights per week for two years. The annual estimated in

kind contribution of these incentives is $154,165, and the estimated two year incentive is $308,330. The estimated landing fee incentive is based on ma ximum gross landing weight of an MD

- 80 at a rate of $1.04/thousand lbs.

K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y S TATE U NDER E XECUTIVE O RDER 12372 P ROCESS ?

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. 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 (explain)

_________________________________________________________________________________________________

___________________________________________________________Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 4 

## TABLE **OF CONTENTS**

INTRODUCTORY LETTER

................................ ................................ ................................ .................... 5
AIRLINE LETTER OF SUPPORT

................................ ................................ ................................ ........... 6
EXECUTIV E SUMMARY

................................ ................................ ................................ ........................ 7
AIR SERVICE OVERVIEW

................................ ................................ ................................ ..................... 8 Catchment Area and Alternate Airports

................................ ................................ ................................ ................. 8 Westover Metropolitan Airport Has Not Had Scheduled Service since 2008

................................ ........................ 9 Air Service Development Efforts

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

### AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

................................ ............................. 10 Capacity, Traffic and Fare Trends in the Region

................................ ................................ ................................ . 10 Domestic Fares Versus Domestic Fares at Other Airports in the Lower 48 United States

................................ . 11 

### STRATEGIC PLAN

................................ ................................ ................................ .............................. 12 Proposed Use of SCASD Funding

................................ ................................ ................................ ....................... 12 Objective

................................ ................................ ................................ ................................ .............................. 13
Grant Amendments/Alter nate Strategies

................................ ................................ ................................ ............. 13 

### PROJECT IMPLEMENTATION, MONITORING AND FUNDING

................................ .......................... 13 Public / Private Partnerships

................................ ................................ ................................ ................................ 13 

### PROJECT MONITORING AND FINANCIAL CONTROL

................................ ................................ ...... 14 Project Monitoring

................................ ................................ ................................ ................................ ................ 14 Sources and Allocations of Project Funding

................................ ................................ ................................ ........ 14 Project Timeline

................................ ................................ ................................ ................................ ................... 15
Continuation of Project Activities beyond the Grant Timeline

................................ ................................ .............. 16 Legal Sponsor

................................ ................................ ................................ ................................ ...................... 16
Financial Controls

................................ ................................ ................................ ................................ ................ 17Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 5 

### INTRODUCTORY LETTERWestover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 6 

### AIRLINE LETTER OF SUPPORTWestover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 7 

### EXECUTIVE SUMMARY

Westover Metropolitan Airport is proposing a Small Community Air Service Development Grant in the amount of $ 450, 000 to supplement a community

- based cash
contribution of $ 25,000
, airport cash funding of $ 25,000
, and airport in

- kind incentives valued at $ 308,330 to market, advertise and promote low

- cost carrier service to

one or more destinations and , in particular, t o fund ground handling services for the low

- cost carrier service. The Airport is targeting either Allegiant Air or Frontier Airli nes to provide the low

- cost service.

The Airport believes Allegiant would likely serve one or more destinations such as Sanford/Orlando, St. Petersburg, Punta Gorda, Ft. Lauderdale and/or Myrtle Beach, while Frontier would most likely serve one or more
destinations such as Orlando, Tampa, Ft. Myers, Ft. Lauderdale, New Orleans, Atlanta, Raleigh/Durham, Columbus, Detroit
, or Chicago

– a route structure similar to the route structure Frontier operates from Trenton, New Jersey.

Westover Metropolitan Airport currently has no air service, and servi ce on a low

- cost carrier such as Allegiant or Frontier is the most likely type of air service the airport can expect to attract

. In meetings with each carrier, b oth Allegiant and Frontier have expressed interest in serving Westover. Both Allegiant and Fr ontier have oper ated Atlantic City charters from Westover within the last 12 months, so the airport has proven its ai rfield can accommodate the type of aircraft Allegiant and Frontier would operate at Westover, and Westover's terminal can handle the passen ger volume.

Hartford's Bradley International Airport is the closest airport to Westover with commercial airline service
, but airline capacity and domestic traffic at Bradley is down 37.7% and traffic is down 27.7% since each metric peaked
within the last t en years in 2005 . Hartford's average domestic one

- way fare has risen from $131 in 2005 to $191
in 2012

– an increase of 46.3%. Hartford's average domestic fare is higher than the average fare at the average Lower 48 airport, and Hartford's average domes tic fare has risen at a faster rate than the increase at the average lower 48 airport over the last ten years. Low

- cost carrier service from Westover would provide travelers in the region with an alternative to the diminished air service in Hartford at w hat would likely be a lower cost than the
cost at Hartford.Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 8 

### AIR SERVICE OVERVIEW

**Catchment Area and Alternate Airports** 

Westover Metropolitan Airport is located in the heavily populated Northeast Corridor and is located within reasonably short drives of la rge population centers. Based on 2010 population data, 548,270 residents live withi n a 30

- minute drive, 1,531,000 live within a 60

- minute drive and 3,815,000 million live within a 90

- minute drive of the airport. Most of the Hartford metropolitan area is located within the 60

- minute drive time
, and many of the
western suburbs of Boston are within a 90

- minute drive of the airport.

Bradley International Airport in Hartford (BDL) is located approximately 26 miles from Westover, the airport in Worcester (ORH) is located approximately 60 miles from Westover, and Boston Logan International Airport (BOS) is located approximately 100 miles from Westover. The map in Ex hibit 1 illustrates drive times from Westover.

Exhibit 1: 30

- , 60

- and 90

- Minute Drive T imes from Westover Metropolitan Airport and the Location of the Airports in Hartford, Albany, Providence, Boston
, and Worcester

.Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 9 

### Westover Metropolitan Airport Has Not Had Scheduled Service **since 2008** 

Sky B us was the last airline to operate scheduled service at Westover when the airline operated service from Westover to Columbus, Ohio
, and Greensboro, North Carolina
, from July 2007 t hrough April 2008
, using Airbus A319 aircraft. SkyBus ended its service at Westover when the airline filed for bankruptcy ; however, SkyBus proved Westover Metropolitan Airport could generate traffic when low

- cost service is available at the airport.

Sky Bus generated as many as 4,475 enplanements in February 2008 and enplaned more than 24,000
passengers over the eight months the airline reported Westover traffic to the DOT. Based on the average number of enplanements per month SkyBus generated in the ei ght months it reported data, it would have enplaned approximately 36,400 passengers over a 12

- month period, and SkyBus would have generated 53,700 enplanements based on the 4,475 enplanements generated in February 2008.


### Air Service Development Efforts

Wes tover Metropolitan Airport speaks with low

- cost carriers on a regular basis. Discussions with Allegiant Air have been ongoing for about three years, and the airport had its first meeting with Frontier Airlines in October
2012. Allegiant is particularly interested in the Westover market as an alternative airport to the airports in Hartford, Boston and Worcester. A discussion with Frontier seemed promising

. Given Frontier's recent new service from the airport in Trenton, as an alternate to airline servi c e offered from Philadelphia to ten destinations, Frontier service from Westover, as an alternate to airline service at Boston, Hartford and Worcester seems reasonable. Both Allegiant and Frontier have expressed the need for Westover to bear a portion of t he financial risk each airline would incur if it were to begin service at Westover

. Allegiant has written a letter supporting this proposal.

If Allegiant were to begin service at Westover, the most likely destinations would be one or more of the following: Orlando/Sanford, St. Petersburg, Punta Gorda, Ft. Lauderdale or Myrtle Beach. The most likely desti nations Frontier would serve would be destinations such as Orlando, Tampa, Ft. Myers, Ft. Lauderdale, New Orleans, Atlanta, Raleigh/Durham , Columbus, Detroit and /or Chicago

.Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 10 

### AIR SERVCE DEVELOPMENT NEEDS **AND DEFICIENCIES Capacit**  **y**

**, Traffic and Fare Trends in the Region**

Westover Metropolitan Airport and Western Massachusetts have no scheduled air service; t he closest airport with
commerci al service to Westover is Hartford Bradley International Airport, so the declining capacity, declining
traffic and increasing fare trends at Hartford are most applicable to the case for commercial service at Westover. Within the last ten years, Hartford's domestic capacity and domestic traffic peaked, and the average domestic fare was at its lowest point in 2005. Between 2005 and 2012, Hartford's capacity is down 37.7% or nearly 5,400 seats per day each way; domesti c traffic is down 27.7% or 2,603 passengers per day each way, and the average fare has increased 46.3% from $131 each way to $191. The relationship of Hartford's domestic capacity, domestic traffic and average domestic o ne
- way fare is shown in Exhibit 2.

Low

- cost carrier service at Westover would provide travelers in the region with an alternative choice to the
deterioration of service and increasingly higher fares at the airport in Hartford over the last seven years. If the
service was operated by a carr ier such as Allegiant or Frontier, the average fare at Westover would likely be significantly less than the average fare paid at Hartford to the same destination(s) Allegiant or Frontier could serve from Westover.

Exhibit 2 : Domestic Seats per Day Ea ch Way, Domestic Passengers per Day Each Way and Average Domestic One

- Way Fare at Hartford Bradley International Airport Year

- End Fourth Quarter 2003

- 2012 (DOT T

- 100 data)

12,072 13,165 14,249

12,651
11,552

10,703 9,102 9,305 9,824
8,879 8,021 8,560 9,411 8,823

8,209 7,591 6,759 6,808 7,152 6,808 $144

$137
$131 $153 $163 $173

$156 $172 $178 $191

$100 $125 $150 $175 $200

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Average One-Way FareSeats and Passengers per Day Each Way Seats per Day Each Way Passengers per Day Each Way Average One

- Way FareWestover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 11 

### Domestic Fares Versus Domestic Fares at Other **Airports in the Lower 48 United States** 

Although Hartford's average domestic one

- way fare of $131 in 2005
, when capacity and traffic peaked , was lower than the average domestic fare at the average Lower 48 airport of $136 in 2005, Hartford's average fare stood at $191 in 2012 versus $177 at the average Lower 48 airport. Over the last ten years, Hartford's average domestic fare is up 32.5% while it is up 28.5% over a t the average Lower 48 airport, and Hartford's fare has been higher in each year since 2006. The average domestic fare for Hartf ord versus the average domestic fare at the average Lower 48 airport s , along with the percent change in the fares are shown in Exhibit 3

.

Exhibit 3 : Average One

- Way Domestic Fare at Westover Metropolitan Airport and Cumulative Change since 2003 Versus the Average Lower 48 Airport

$144 $137

$131 $153 $163 $173

$156 $172 $178 $191

$138 $134 $136 $149 $149 $159

$143 $157 $171 $177

- 5.0% - 9.4% 6.1% 12.6% 19.8%

8.1% 19.1%
23.2% 32.5%

- 3.1% - 1.1% 8.1%

7.9% 15.2%

3.6% 14.1% 24.1%
28.5%

- 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$0 $50 $100 $150 $200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Cumulative Fare ChangeAverage One-Way Domestic Fare Hartford Domestic Fare Average Lower 48 Airport Domestic Fare Hartford Cumulative Change Average Lower 48 Airport Cumulative ChangeWestover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 12 

### STRATEGIC PLAN **Proposed Use of SCASD Funding**

Westover Metropolitan Airport is requesting SCASD funding of $450 ,000 to market, advertise and promote low

cost service and , in particular, to fund ground handling services for a low

- cost carrier at Westover

. The Airport believes the airlines most likely to provide the proposed service are Allegiant Air or Frontier Airlines. SCASD
fundi ng will be supplemented by the airport with $25 ,000 of cash designated to marketing the serv ice
, and $25,000 in cash provided by partners in the community and designated for ground handling . In addition to the cash, in

- kind support from the Airport, in the form of fee waivers, is valued at $308,330 over a period of two years based an assumption of up to four flights per week operated with MD

- 80 aircraft.

Exhibits 4 and 5: Frontier and Allegiant Aircraft Operating Charter Service from the Terminal at Westover Metropolitan AirportWestover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 13 

### Objective

T he primary objective of Westover's proposal is to secure low

- cost carrier air service to one or more destinations that would act to offset declining airline capacity and increasing air fares paid by travelers in the region currently using Hartford Bradley International Airport. A combination of 14 destinations on two airlines have been identified as potential targets for the type of se rvice Westover is seeking. T he potential airline/destination combinations are:

• Allegiant

– Sanford/Orlando, St. Petersburg, Punta Gorda, Ft. Lauderdale, Myrtle Beach

• F rontier

– Orlando, Tampa, Ft. Myers, Ft. Lauderdale, New Orleans, Atlanta, Raleigh/Durham, Columbus, Detroit
, Chicago.



### Grant Amendments/ **Alternate Strategies**

Funds to market, advertise and promote air service and to provide grou nd handling support for service on a low

cost carrier is the objective of the requested Small Com munity Air Service Development G rant.

If the Department awards Westover Metropolitan Airport the grant fun ding requested, but the Airport is not
successful in securing service on one of the targeted airlines , the Airport would request an amendment to the grant from the Department to reallocate funding for ser vice on another carrier.



### PROJECT IMPLEMENTATION, MO **NITORING AND FUNDING Public / Private Partnerships** 

Westover Metropolitan Development Corporation owns and operates Westover Metropolitan Airport and is the project sponsor. Westover Metropolitan Development Corporation is a public entity. The Westover Me tropolita n Development Corporation and the Economic Development Council of Western Massachusetts (EDC ) have partnered in the proposal for Small Community Air Service Development funding.

Westover Metropolitan Development Corporation

Westover Metropolita n Development Corporation was created in 1974 by the Commonwealth of Massachusetts

as a non
- profit 501(c)(4) corporation for economic development of portions of the former Westover Air Force Base. Westover Metropolitan Development Corporation operates the airport under a joint use agreement with the Department of Defense.Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 14 Economic Development Council of Western Massachusetts

The Economic Development Counci l of Western Massachusetts (EDC) is a private, non

- profit corporation
that provides resources and information to businesses operating in
, or entering
, the region by aiding in expansion, relocation and networking. The mission of the EDC is to deliver the services and business resources that enab le companies to do business in Weste rn Massachusetts grow t he region's economy through the creation of quality jobs and enhanced public and private investment.

EDC accomplish es its goals through its own efforts and the coordinated efforts of seven affiliated partner organizations: the Affiliated Chambers of Comm erce, Greater Springfield Convention and Visitors Bureau, Regional Technology Corporation, Westfield Business Improvement District, Northampton Business Improvement District, Springfield Business Improvement District, Westmass Area Development Corporation and the Westover Metropolitan Airport.



### PROJECT MONITORING AND FINANCIAL CONTROL **Project Monitoring**

The primary goal of Westover's proposal is to secure low

- cost airline service by providing marketing and advertising and to partially offset the airline's ground handling expenses for an airline that agree s to operate the targeted leisure destination service. The success metric for the proposed grant funding is simple: securing and sustaining service to one or more of the targeted destinations

.



### Sources and Allocations of Project **Funding**

As illustrated in Exhibit 6 (see next page) , the total cost of the project is $ 808,330 to include the amount of the requested grant, community

- provided cash and the value of in

- kind airport incentives. The requested amount of the grant is $ 450,000 , and community cash fundi ng is $50,000 to include $25,000 from the Westover Metropolitan Development Corporation an d $25,000 from the Economic Development Corporation of Western Massachusetts. The Airport will be able to waive landing fees, aircraft parking/apron fees, terminal use fees and fuel flowage fees.
The total value of the in

- kind incentives offered by the A irport is up to $154,165 per year for two years based on an assumption of four flights per week operated with MD

- 80 aircraft over a 12 month period (the value would be half if two flights per week are operated). The value of the Airport's in

- kind incentiv es over two years is up to $308,330 (the airport incentive value per departure is estimated to be $741).Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 15 Ex hibit 6 : Sources and Types of Proposed Project Funding

The total cash funding of $500 ,000 would be divided equally between the first two potenti al routes and equally between marketing and ground handling over two years as shown in Exhibit 7. In the first year, $125,000 is proposed to be spent on marketing, and $125,000 is proposed to be spent on gro und handling for a total of $250 ,000 in Year 1 o n marketing plus ground handling. The same amounts w ould be spent in Year 2 . The airport incentives valued at up to $308,330 would be credited similarly on a route

- by

- route basis based on th e number of departures operated in each of the first two years.

Exhibit 7 : Proposed Allocations of Project Cash * Funding



### Project **Timeline**

Westover Metropolitan Airport intends to continue its meetings and discussion s with both Allegiant and Frontier throughout the evaluation period of Small Community Air Service Grant proposals, and will be prepared to execute a grant agreement with the Department as soon as awards are announced. If Westover is awarded a grant, the Airpor t will advise each airline o f the award and determine if either airline is prepared to begin service
and when service co uld begin. Neither carrier would likely announce service sooner than 90 days prior to beginning service. If service were to begin in November 2 014, the service wou ld likely be announced some time
in summer 2014 . Regardless of when the service is launched, the propose d program would continue for two years, Westover Metropolitan Airport would work with either airline to market the service, and the Airport would
file all required quarterly reports. Funding Source Grant Cash In-Kind Total Department of Transportation $450,000 $450,000 Community $25,000 $25,000 Airport $25,000 $308,330 $333,330 Total $450,000 $50,000 $308,330 $808,330

Year 1 Year 2 Total Year 1 Year 2 Total Total SCASD Funding Route 1 $56,250 $56,250 $112,500 $56,250 $56,250 $112,500 $225,000 Route 2 $56,250 $56,250 $112,500 $56,250 $56,250 $112,500 $225,000

Total $112,500 $112,500 $225,000 $112,500 $112,500 $225,000 $450,000

Community Funding Route 1 $6,250 $6,250 $12,500 $6,250 $6,250 $12,500 $25,000 Route 2 $6,250 $6,250 $12,500 $6,250 $6,250 $12,500 $25,000

Total $12,500 $12,500 $25,000 $12,500 $12,500 $25,000 $50,000

Total Project Funding Grand Totals $125,000 $125,000 $250,000 $125,000 $125,000 $250,000 $500,000

*Does not included airport in-kind incentives in the form of fee waivers valued at $308,330. Ground Handling MarketingWestover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 16 Exhibit 8 : Proposed Project Timeline (Assumes SCASD Awa rds Are Announced in September 2013 )



### Continuation of Project Activities beyond the Grant Timeline

The project sponsors are confident the proposed service will be successful, and the service would likely begin with one route, with a second route added once the first route proves to be successful. This optimism is based on the experience of Skybus servi ce at Westover, and the amount of traffic carried from the region to leisure destinations and increasingly higher fare trends among the airlines providing service from other airports in the region, such as Hartford. A true low

- cost alternative to the fare levels at Hartford
, in particular, will drive traffic to the proposed service at Westover.

Given the fragile state of the economy, the volatility of fuel costs and other factors beyond the control of the airline industry, the success of the proposed service cannot be assured. The Airport will work closely with the airline or airlines operating the proposed service throughout the grant period, and beyond the two

- year grant period, to monitor both the amount of traffic and the average fares to ensure t hey are sufficient to sustain the service. In the event the service is not meeting the carrier's expectations, both the Westover Metropolitan Airport and the Economic Development Council of Western Massachusetts are prepared to work with the carrier to ad dress the carrier's concerns. Both project sponsors may be able to provide additional incentives and may be able to provide additional advertising and marketing, depending on the carrier's needs. Activity/Project Milestone Estimated Dates SCASD Grant Award Announcement September 2013 Execute Grant Agreement with DOT September/October 2013 Airline Meetings November 2013 - May 2014 Announce Service June or July 2014 Publish Schedule June or July 2014 Market Route (Pre-Launch) September - November 2014 Monitor Advance Bookings September - November 2014 Adjust Marketing Plan Based on Advance Bookings September - November 2014 Begin Service November 2014 Market Route (Post-Launch) November 2014 and Beyond Begin Service November 2014 - November 2016 Monitor Route Performance November 2014 - November 2016 and Beyond Submit Grant Status Reports to DOT Quarterly 3Q 2013 - 4Q 2016Westover Metropolitan Airport ; Chicopee, Massachusetts Proposal Under the Small Community Air Service Development P rogram; Docket DOT

- OST

- 2013

- 0120 17 

### Legal Sponsor

The Westover Metropolitan Development C orporation is the legal sponsor responsible for administering the proposed program, and the Westover Metropolitan Development Corporation is a government entity.

Westover Metropolitan Development Corporation Westover Metropolitan Airport Michael W. Bolto n Director of Civil Aviation 255 Padgette St. Chicopee, MA 01022 413

- 593

- 5544 (office)



### Financial Controls

As the sponsor, the Westover Metropolitan Development Corporation and its governing body, the Westover Metropolitan Development Corporation Board
, will be the responsible parties for all fiscal matters and the Department's reporti ng requirements. The Westover Metropolitan Development Corporation is established as a

non
- profit 501(c)(4) corporation and is a public governing body. As a public entity, the Department can be assured that proper financial controls are in place to guarantee that the Department’s Grant will be used in accordance with any subsequent agreement. The Westover Metropolitan Development Corporation Board
understands that the Gran t is a reimbur sable grant, meaning the Board is responsible for program expenditures and will submit invoices to the Department for reimbursement, based on a percen tage of the total grant request.