### APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST -2014-0133

SUMMARY INFORMATION 1



### 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/SCA SDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET 

### (D&B) DATA UNIVERSAL

NUMBERING SYSTEM 

### (DUNS) NUMBER 

### , INCLUDING 

### +4, EMPLOYEE IDENTIFICAT ION NUMBER



### (EIN) OR TAX ID



### . Legal Sponsor Name:

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

B. L IST THE 

### N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING 

### :

1.____________________________________________________

2.____________________________________________________

3.____________________________________________________

4.____________________________________________________

C. P ROVIDE THE FULL AIRP ORT NAME AND 

### 3-L ETTER 

### IATA A IRPORT 

### C ODE FOR THE

APPLICANT 

### ( S 

### ) AIRPORT 

### ( S 

### ) (O NLY 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.

### D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY

THE 

### F EDERAL 

### A VIATION 

### A DMINISTRATION UNDER 

### 14 CFR P ART 

### 139? (I F 

### “N O 

### ”, P LEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER 

### P ART 

### 139 IS PENDING 

### .)

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________
D. L IST THE 

### 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION 

### , AND IF A CONSORTIUM 

### , TO EACH PARTICIPATING COMMUNITY



### .

1. 2

.

3

. 4

.

E. A PPLICANT 

### I NFORMATION 

### : (C HECK 

### A LL 

### T HAT 

### A PPLY 

### )

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. P UBLIC 

### /P RIVATE 

### P ARTNERSHIPS 

### : (L IST 

### O RGANIZATION NAMES 

### )

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

### G. P ROJECT 

### P ROPOSAL 

### :

1. G RANT 

### G OALS 

### : ( CHECK ALL THAT APPLY 

### )

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services 2



### Other (explain below)

2. F INANCIAL 

### T OOLS 

### T O 

### B E 

### U SED 

### : ( 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)

R evenue 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 ai r 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 pa rticipating parties for

the purchas e 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. 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

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

- K ind contribution

5 a 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. I S 

### T HIS 

### A PPLICATION 

### S UBJECT 

### T O 

### R EVIEW 

### B Y AN 

### A FFECTED 

### S T ATE 

### 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 S tate for review.

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

L. I S 

### T HE 

### L EAD 

### A PPLICANT OR 

### A NY 

### C O 

### -A PPLICANTS 

### D ELINQUENT 

### O N 

### A NY 

### F EDERAL 

### D EBT 

### ?

(I F 

### “Y ES 

### ”, P ROVIDE 

### E XPLANATION 

### )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________
APPLICATION CHECKLIST

I NCLUDED ? I TEM

For Immediate Action

Determine Eligibility

New Grants.gov users must r egister with www.grants.gov

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

and the Authorized Organization R epresenta tive (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

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

A pplication 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 adminis tering the program

.

• A motion for confidential treatment (if applicable)

– see Appendix D below.

## Charlottesville Albemarle Airport Authority



# Application for Small Community
Air Service Development Grant

Docket DOT

- OST

- 2014

- 0013

DUNS # 0974173490000
Congressional District VA

- 005

Legal Sponsor:

Penny Shifflett

Charlottesville Albemarle Airport

Director of Finance and Administration

Charlottesville, VA 229111

July 30, 2014

Ms. Brooke Chapman

Associate Director Small Community Air Service Development Program United States Department of Transportation 1200 New Jersey Avenue, SE

W86

- 307 Washington, DC 20590

RE: Small Community Air Service Development Program:

Docket OST

- 2014

- 0113

__________________

Dear Ms. Chapman:

Included with this letter is Charlottesville Albemarle Airport’s (CHO) Small Community Air Service Development Program grant application. The purpose of this grant application was identified d u ring the

FY

- 2015 budget process when the Charlottesville Albemarle Airport Authority , a financially self

sufficient en tity, was forced to significantly cut its marketing and advertising budget in order to balance its operating budget. As a result of this reduction, the Authori ty turned to its community which rallied around its Airport with an amazing response. A pu blic

- private p artnership consisting of twenty

- two local organizations was formed for the purpose of securing marketing support for current and potential improved com mercial air service deemed critical to the economic development of the region. Prior to filing this application, CHO conducted extensive research and analysis of the local air service market to support the need of what we have titled the 24 month “Your Air port” jump start campaign, marketing CHO to the region it serves.

The Partnership has been formed to focus the efforts and resources of the community, in conjunction with the proposed assistance of the U.S. Department of Transportation, to achieve several specific goals:

 Support existing commercial air services to insure that they maintain current frequ ency, capacity and gauge at CHO;

 Reverse passenger leakage to neighboring airports, especially Richmond International Airport (RIC) and Washington Dulles ( IAD) ; and

 Serve the community’s air service needs to a higher extent than at present, in recognition of the current and future growth in air travel demand being generated by demographic and economic growth in the region.

Our application requests that a gra nt of $200,000 be made available for the development and implementation of the Charlottesville

- Albemarle Airport Marketing Plan (“Marketing Plan”). The proposed grant will be combined with $25,000 in cash funding and $122,870 of in

- kind funding from the

P artnership to fund the 24 month “Your Airport” campaign, as described in this application.2

The immediate need for the development and implementation of a high impact marketing plan and the request for funding results from the following industry trends th at are impacting both the demand for commercial air service and the quality of current air service at smaller communities like Charlottesville:

 The rapid demographic and economic growth taking place in the regional area surrounding

Charlottesville which is generating greater demand for air travel services;

 The expansion of University of Virginia and related research programs and activities which is also increasing air travel demand;

 The recent changes in commercial pilot hours for regional aircraft that has resulted in fewer pilots and fewer regional flights; and

 The escalation in fuel prices making 50

- seat regional jets (RJs) less economical to operate to

cities like Charlottesville.

The Marketing Plan will aggressively seek to encourage more travelers in Central Virginia to reverse years of leakage to other airports and encourage passengers to fly locally instead.

We respectfully request approval of this grant request and hope that the U.S. Department of Transportation will commit to support our continued efforts to improve air service at Charlottesville Albemarle Airport in Charlottesville, VA and the nine surrounding counties that it serves.

Sincerely,

Melinda Crawford, A.A.E. Penny Shifflett

Executive Director Legal Sponsor

Charlottesvi lle Albemarle Airport Director, Finance and Administration Charlottesville Albemarle Airport3



# 1 The CHO Market

The City of Charlottesville, VA, the county seat of Albemarle County is located 115 miles from Washington, DC, and is essentially halfway between Boston and Atlanta. Centrally located in Virginia, Charlottesville is about 70 miles from the state capital of Richmond. The City sits on the Rivanna River

sand wiched between the Southwest Mountains and Blue Ridge Mountains.

CONNECTED

The greater Charlottesville region is well connected with convenient access to major highways, an intensely creative culture and close proximity to larger metropolitan areas. The r egion is an emerging center for new business development in communication, information technology, biotechnology, light manufacturing, and distribution.

ANCHORED

Home of the University of Virginia, one of the nation’s premier academic and research

institu tions, the area is also host to more than two dozen wineries and some of the nation’s most acclaimed vintners that add to the backdrop of largely agricultural settings and mountain views.

OUTSTANDING HEALTH SCIENCES and HEALTHCARE ENVIRONMENT

The availabi lity of outstanding healthcare services not only represents a rapidly growing component of the regional economy, but it is an amenity that enhances the environment for both businesses and

residents.

The University of Virginia Health Sciences Center is a ma jor teaching and research 650

- bed hospital that has a Level One trauma center, offers medevac helicopter service, and ranks among the 100 best hospitals

in the United States.

EMPLOYMENT

Charlottesville’s employment is supported by the following major industries:

 Construction

 Education

 Electronic equipment & instruments

 Finance and insurance

 Healthcare  IT and professional services

 Lodging

 Publishing and broadcasting

 Retail

Kiplinger.com recently named Charlottesville as the fourth best city in America for jobs. Cities on this list have strong job markets but are expected to create new, well

- paying positions. Specifically, the report stated that, “The home of Thomas Jeffers on’s university is an unexpected blend of southern charm and liberal edge, with a strong business base.”

CHO Airport serves a region that is home to an exceptionally skilled and educated workforce, due to the presence of two community colleges and the Uni versity of Virginia. Over 32% of the region has at least a Bachelor’s degree, with an even higher concentration within the Charlottesville MSA. These workers add4

depth of knowledge and expertise to a business’ workforce, an essential asset in today’s mod ern

economy.

VIBRANT BUSINESSES

Therefore, the region is very attractive for business and professional services companies, including LexisNexis, MPS, SNL Financial, and CFA Institute, and for information technology companies, such as Terremark Worldwide, Inc., GE Intelligent Platforms, and WillowTree Apps. The National Ground Intelligence Center and the Defense Intelligence Agency anchor a robust defense sector which includes Aerojet, Booz Allen Hamilton, CACI, NIITEK, and Privaris.

Successful ad vanced m anufacturers have also found a home in Central Virginia including Continental
Teves, Euro

- Composites, Klöckner Pentaplast, Northrop Grumman, Ashbury International, TE Connectivity, RIDGID, California Sidecar, and MicroAire Surgical Instruments.

Major Busi nesses :

Business travelers are made in Central Virginia. Home to the University of Virginia (UVa), the region offers a rich network of University and community resources to support entrepreneurs and their businesses, including investment funding, profe ssional development, affordable office and laboratory space, incubator and accelerator support, mentorship and networking opportunities. A major research institution, with sponsored research awards totaling more than $338 million annually, the University of Virginia produces innovative research discoveries with the potential to address critical issues in medicine, engineering, the life sciences, education, business and society. The University seeks to maximize the impact of these discoveries by bringing t hem to the public through strategic partnerships with industry, government, new ventures and others. To enhance its commitment to the regional economy, the University has invested heavily in increasing collaboration between the University and the private sector and streamlining the commercialization of UVA research. According to a recent survey, University of Virginia technologies have created 53 companies and over 860 jobs, half of which are located in Central Virginia.

DEMOGRAPHICS

It is often useful to compare current figures and projected growth rates to other similar cities within the same geographic region that is served by commercial airports. Therefore, Charlottesville will be compared to the following cities for all demograph ic and economic indicators: Lynchburg, Newport News, Norfolk, Richmond, Roanoke, and Virginia Beach. These cities were chosen due to their similar5

geographic locations in Central/Southern Virginia. Most city comparisons are performed on a Metropolitan St andard Statistical Area (MSA 1 ) basis. For a more accurate comparison, we will use the cities of Newport News, Norfolk, and Virginia Beach as opposed to the combined MSA for all three. The Charlottesville MSA includes the City of Charlottesville as well a s Albemarle, Fluvanna, Greene, and Nelson counties. For growth rates, Charlottesville will also be compared to the state of Virginia and the

United States as a whole.

Exhibit 1 :

The Charlottesville MSA is projected to grow from its current size of 1 99,000 to nearly 211,000 by 2015. With a projected growth rate of 6% from 2010 to 2015, Charlottesville will grow faster than 4 of the 7 cities included in this comparison, slower than the growth rate for the Commonwealth of Virginia but slightly faster t han the growth rate projected for the U.S. as a whole (see Exhibit 1 ).

Exhibit 2 :

Total households in Charlottesville are projected to grow by 9% through 2015, 50% faster than the projected growth rate for population. This is greater than 3 of the 7 cities included in the comparison, but again, slightly slower than the growth rate for the Commonwealth of Virginia but faster than the growth rate projected for the United States as a whole (see Exhibit 2 ).

1 An MSA has at least one urbanized area of 50,000 or more population, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties.6



# 2 AIR SERVICE ISSUES (Needs and Deficiencies)

Current O&D Passengers

CHO generates 438,200 annual passengers (enplaned and deplaned) according to the U.S. DOT O&D Survey (year ended December 31, 2013). This figure equates to 573 total passengers per day each way (PDEW) 2 , a growth of 30.2% or 5.4% com pound annual growth rate from five years ago in 2009. Total passengers can be subdivided into 404,000 domestic passengers (528.1 PDEWs) and 34,200 international passengers (44.7 PDEWs). 92% of CHO’s passengers are domestic; whereas, 8% are traveling to

i nternational destinations.

Convenience of nonstop air service always plays a role in a traveler’s decision of which airport to uses, so it should come as no surprise that three of CHO’s top ten O&D destinations are markets served nonstop

from CHO. With th e initiation of nonstop service to Chicago in 2011, the Chicago route has become Charlottesville’s top air service market, averaging 45 PDEWs, and replacing New York City 3 , which is

now the third

- ranked market behind Atlanta. Among the other top ten marke ts, three are in the West

– the Bay Area 4 , the LA Basin 5 , and Denver; two are in Texas which has come on strong in recent years with

Dallas 6 and Houston 7 now in the top 10; one is in the Southeast region

– Charlotte; and the remaining

market is Orlando 8

. Of these ten markets, six do not have nonstop service which indicates CHO’s reliance on service to connecting hubs.

Exhibit 3 below shows a ranking of the top ten O&D city markets by PDEWs.

Exhibit 3 :

Rank City Passengers % of Total

1 Chicago 32,692 7%

2 Atlanta 23,398 5%

3 New York City 22,788 5%

4 San Francisco 15,450 4%

5 Los Angeles 14,680 3%

6 Dallas/Ft. Worth 14,602 3%

7 Denver 14,452 3%

8 Houston 13,000 3%

9 Orlando 11,402 3%

10 Charlotte 10,466 2%

Other 264,128 60%

Total 438,200 100%

2 Passengers per day each way, or PDEWS, is an industry acronym mea suring average daily round

- trip O&D traffic levels. PDEWs are calculated from total annual O&D passengers divided by the number of days in a year times two (i.e., annual O&D / (365*2).

3 New York City includes Newark (EWR), Kennedy (JFK), and LaGuardia (L GA) airports.

4 Bay Area includes Oakland (OAK), San Francisco (SFO), and San Jose (SJC) airports.

5 LA Basin includes Burbank (BUR), Los Angeles (LAX), Long Beach (LGB), Ontario (ONT), and Orange County (SNA) airports.

6 Dallas includes Dallas Love Field (DAL) and Dallas/Ft. Worth (DFW) airports.

7 Houston includes Houston Hobby (HOU) and George Bush Intercontinental (IAH) airports.

8 Orlando includes Orlando International (MCO) and Orlando Sanford (SFB) airports.7

Current Scheduled Service

CHO currently has 19 daily nonstop flights to six destinations provided by American Airlines, Delta Airlines, United Airlines, and U S Airways as shown in Exhibit 4 . The airport now has 135 weekly

scheduled commercial airc raft departures supplying over 7,000 weekly seats, with an average of 53.8 seats per departure. Compared to last year’s schedule (July 24

- 31, 2013), departures are down slightly by 4% for a decrease of 5 weekly, or .7 daily, flights. However, weekly seat s are up 16.9% for a total increase of 1,051 weekly or 150.1 daily seats as airlines have been upgauging their flights. These statistics show that average aircraft size has also increased by 9.4 seats, or 21.1% since last year.

Despite this modest growth in capacity, service at CHO has a large percentage of seats (47%) operated by turboprop equipment. Although this has declined year over year, we are at a much higher percentage of turboprop seats than we were five years ago (35% in July, 2010). 44% of de partures and 47% of weekly seats are still flown with turboprops. Comparatively, only 2% of departures at nearby Richmond International Airport (RIC) are flown by turboprops and 1% of weekly seats.

Exhibit 4 :

Exhibit 5 shows CHO’s service patterns for the week of July 24

- 31, 2014.

Exhibit 5 :

Carrier Market Equipment Type Weekly Departures Seat

Departures

American New York

- LaGuardia (LGA) Embraer Regional Jet

- 140 7 308

Chicago

- O'Hare (ORD) Canadair Regional Jet 14 700

American TOTAL 21 1,008

Delta Atlanta (ATL) Canadair Regional Jet 20 1,000

New York

- LaGuardia (LGA) Canadair Regional Jet 6 390

Delta TOTAL 26 1,390

United Washington

- Dulled (IAD) De Havilland Dash

- 8

- 200 21 777 US Airways Charlotte (CLT) Canadair Regional Jet 29 1,450

De Havilland Dash

- 8

- 300 8 296

De Havilland Dash

- 8

- 200 11 550

CLT Total 48 2,296 Philadelphia (PHL) De Havilland Dash

- 8

- 100/200 19 703 US Airways TOTAL: 115 5,295

Grand Total: 183 8,4708

As shown in Exhibit 6 below, service at CHO over the past ten years has been relatively stable.

Exhibit 6 :

Calendar Year

Destination Carrier 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Chicago O'Hare (ORD) American Eagle

Atlanta (ATL) Delta Connection

Cincinnati (CVG) Delta Connection

New York LaGuardia (LGA) Delta Connection
Detroit (DTW) Delta Connection/

Northwest Airlink Washington

- Dulles (IAD) United Express

Charlotte (CLT) US Airways Express

New York LaGuardia (LGA) US Airways Express

Philadelphia (PHL) US Airways Express

Due to the strength of the local market, CHO has retained nonstop service to most hubs except for the discontinuation of Detroit in 2010, which was quickly replaced by American service to ORD in 2011. Nonstop service to Cincinnati and Pittsburgh was discontinued as a result of greater st rategic corporate decisions by Delta and US Airways respectively when dismantling their connecting hubs.

CHO FARES

A fare comparison on an individual market level will provide a better comparison among airports than just the average fare for each airport. Exhibit 7 shows a comparison of the fares at each airport in CHO’s top 20 markets and analyzes how CHO fares compa re to its two physically closest rival airports, RIC and LYH. CHO has higher fares than either RIC or LYH in about half its markets, but in more than two

thirds of its markets, its fares are higher than RIC’s. This is important to note since RIC offers f ar more capacity for CHO travelers to “leak” to than does LYH. As a matter of LYH offers only 5% of the available weekly seats that RIC offers, and CHO has 194% more weekly seats than LYH does. LYH’s

fares exceed CHO’s some of the time because of their l ack of capacity relative to RIC. Hence, CHO suffers from a high degree of leakage to RIC because of its higher fares and their influence on a customer’s choice of airports.

Exhibit 7 :

Rank City CHO RIC LYH Highest vs. RIC Highest Overall

1 Chicago 174 235 216

2 Atlanta 205 143 170  

3 New York City 218 231 203

4 San Francisco 279 248 293 

5 Los Angeles 258 244 283 

6 Dallas/Ft. Worth 188 240 216

7 Denver 197 228 198

8 Houston 192 226 226

9 Orlando 152 111 157 

10 Charlotte 117 194 101

11 Boston 206 128 212 

12 Phoenix 227 192 225  9 13 Tampa 189 174 186  

14 New Orleans 192 183 199 

15 Minneapolis/St. Paul 231 222 215  

16 Seattle 256 243 315 

17 Las Vegas 271 210 224  

18 Nashville 209 188 201  

19 San Diego 268 223 247  

20 Miami 185 157 161  

CHO Leaks Significant Amount of Traffic to Other Airports

The Charlottesville Catchment Area

The Charlottesville Catchment Area has been defined using relative drive times and distances from CHO and represents the area where CHO would be expected to be either the primary choice of airport or could be expected to draw the majority of passengers sho uld it have appropriate service.

The Charlottesville Catchment Area, as shown in Exhibit 8 below, is between 40 and 50 miles from CHO

and within a 60

- 90 minute drive from the airport. It is the area within which CHO is the closest airport of comparable or larger size. The figure below provides a map of the nine

- county CHO region where we

expe ct to derive the majority of passengers due to our proximity to passenger houses, businesses, destinations, etc.

Exhibit 8 :

Close to one million passengers from the Charlottesville Catchment Area used CHO or other local airports for domestic and interna tional travel in calendar year 2013. 87% of this traffic consisted of domestic passengers (875,000). South Florida 9 with over 49,000 passengers, was the top domestic destination followed closely by the Boston area (48,000 passengers) and the San Francisc o Bay (35,000 passengers) as well as the LA Basin (35,000 passengers). Exhibit 9 below highlights the top domestic destinations for passengers originating from the Charlottesville Catchment Area. The top 20 domestic destinations account for nearly 60% of all Charlottesville Catchment Area domestic passengers.

9 South Florida includes Fort Lauderdale ( FLL), Miami (MIA), and West Palm Beach (PBI) airports.10

Exhibit 9 :

Charlottesville Catchment Area

Top Domestic Destinations (Calendar Year 2013)

Rank City Passengers % of Total

1 Orlando 57,508 7%

2 New York 47,377 5%

3 Atlanta 42,284 5%

4 Chicago 41,408 5%

5 Boston 38,585 4%

6 San Francisco 31,716 4%

7 Los Angeles 31,472 4%

8 Denver 25,524 3%

9 Dallas/Fort Worth 23,072 3%

10 Fort Lauderdale 22,628 3% 11 Tampa 20,652 2%

12 Houston 18,955 2%

13 Miami 18,954 2%

14 Las Vegas 16,736 2%

15 Minneapolis 16,016 2%

16 Seattle/Tacoma 15,307 2%

17 Phoenix 13,812 2%

18 Austin 13,244 2%

19 Charlotte 12,694 1%

20 San Diego 12,061 1%

Subtotal 520,006 59%

All Others 354,616 41%

Total 874,622 100%

International traffic from the Charlottesville Catchment Area using CHO or other local airports had a total of 124,000 passengers in calendar year 2013. London, UK, with nearly 9,000 passengers, was the top

destination followed by Cancun, Mexico (4,500 passengers) and Frankfurt, Germany (4,100 passengers).

Exhibit 10 below highlights the top international destinations for the passengers originating from the Charlottesville Catchment Area. The top 25 international destinations a ccount for 58% of all Charlottesville Catchment Area international passengers.

Exhibit 10 :

Charlottesville Catchment Area

Top International Destinations (Calendar Year 2013)

Rank City Passengers % of Total

1 London 8,685 7%

2 Cancun 4,539 4%

3 Frankfurt 4,160 3%

4 Paris 4,101 3%

5 Toronto 4,046 3%

6 Guatemala City 3,938 3%

7 Mexico City 3,374 3%

8 San Jose, CR 2,869 2%

9 Beijing 2,841 2%

10 Montego Bay 2,799 2%

11 Vancouver 2,682 2%

12 Tel Aviv 2,662 2%

13 Amsterdam 2,599 2% 14 Rome 2,363 2%

15 Bombay 2,246 2%

16 Amman 2,172 2%

17 Dublin 2,090 2%

18 Sao Paulo 2,049 2%

19 Dubai 1,902 2%

20 Nassau 1,836 1%

21 Punta Cana 1,792 1%

22 Johannesburg 1,631 1%

23 Zurich 1,557 1%

24 Copenhagen 1,513 1%

25 Madrid 1,397 1%

Subtotal 71,843 58%

All Others 52,214 42%

Total 124,057 100%

Charlottesville Catchment Area Passengers using CHO

CHO is one of six primary commercial service airports that serve the Charlottesville Catchment Area. CHO is in direct competition with Lynchburg Regional Airport (LYH), Richmond International Airport (RIC), Roanoke Regional Airport (ROA), Washington Dulle s International Airport (IAD), and12

Washington Reagan National Airport (DCA). 10 While CHO is the closest airport for passengers within the Charlottesville Catchment Area, the lack of nonstop service choices and the abundance of service

choices available fro m nearby airports results in more passengers using the competing airports than those

us ing CHO. As shown in Exhibit 11 , for the 875,000 domestic passengers, the preferred origin from the Charlottesville Catchment Area were CHO with 44%, RIC with 24%, IAD with 20%, DCA with 7.5%, and SHD with 3%. The other airports serving the Charlottesville Catchment Area captured 1.4% of the passengers. IAD, RIC, and DCA each lie within a two hour 11 drive from the City of Charlottesville and,

with their more extensive s ervice options, not to mention low cost carrier service, collectively captured nearly 60% of the Charlottesville Catchment Area traffic.

Exhibit 11 :

Charlottesville Service Area Domestic and International Passengers by Airport

Domestic Passengers = 874,622 International Passengers = 124, 507

The Charlottesville Catchment Area’s international travel market is less fragmented across the six airports. As shown in Exhibit 11 above , 75% of the 1 24,507 Charlottesville Catchment Ar ea’s international passengers used CHO or IAD. CHO and IAD accounted for 26% and 49% of the outbound international traffic, respectively, illustrating the high amount of leakage CHO experiences for

international itineraries.

10 Shenandoah

- Staunton airport (SHD) lies within the primary service area but currently offers more limited service and draws barely 1% of the catchment area traffic.

11 Source: Google Maps.13

External Industry Events Imp acting CHO

The majority of commercial airline departures in the U.S. aviation industry are operated by regional partners using regional aircraft seating from 19

- 100 seats. Changing laws and regulations in the U.S. are leading to a shortage of airline pilo ts, especially with the regional airlines. At the same time, rising fuel costs are making smaller regional aircraft uneconomical for airlines to operate. Major airlines and their regional affiliates are retiring numerous smaller regional aircraft and upg auging their fleet in general. As a result, many communities either are experiencing or will experience a reduction or cessation of flights.

With the cost of fuel climbing, network carriers have found that smaller regional aircraft are not as profitable. Fuel’s climb has driven network airlines and/or regional operators to invest in larger regional aircraft. Whereas in 2003, equipment of 50 seats or less comprised nearly 90 percent of all regional departures performed in the U.S., today that percentage i s less than 70 percent (see Exhibit 12 ). The trend toward flying larger aircraft is highlighted here by the flying being done by aircraft 70 seats and larger. This movement towards larger regional aircraft with better seat economics will not reverse itse lf, regardless of jet fuel prices.

Exhibit 12 :

Separate from fuel issues, a pilot shortage is present in the regional sector. The Big 4 US carriers (AA, DL, UA and WN) will need to replace more than 16,000 pilots who will be required to retire between now and 2022. Recent federal legislation requiring new pilots being granted an ATP license has been increased from 250 hours to 1,500 hours. In addition, new regulations increasing the number of hours rest for crews require airlines to hire more pilots a t a time when the pipeline of eligible pilots is shrinking. The regional sector of the business will be the most impacted as it pays its pilots less.14



# 3 CHO Air Service Development Efforts

Because of high fares, significant traffic leakage, poor service quality in terms of equipment types, and events outside of CHO’s control (fuel costs and pilot shortage), CHO has been quite aggressive in pursuing and maintaining air service.

The Airport has actively participated in the annual ACI

- NA JumpStart event for quite some. In addition, the Airport keeps in regular contact with airlines via e

- mail and phone communications as well as regularly visiting airlines headquarters to develop relationship s, express operational issues, and lobby for new or expanded service. In the last year, CHO has met with United in Chicago and Delta in Atlanta.

Besides in

- person meetings, the Airport maintains at a minimum quarterly communications with both

incumbent a nd potential new entrant carriers. The Airport regularly works with air service consultants to study its air service market and identify opportunities for air service improvements, including an updated leakage study completed this past June, 2014.

Our har d work and total community effort have been rewarded with some new services and new capacity in the marketplace:

 In 2011, with the help of a SCASD grant, CHO brought in new, twice daily ORD

- CHO

service with 44

- seat Embraer RJs; AA has recently upgauged thi s to 50

- seat CRJs.

 In 2013, Allegiant Air added twice weekly service between CHO and Orlando Sanford with a

166

- seat MD80.

 In April, 2014, AA added once daily, CHO

- LGA service with a 44

- seat Embraer RJ.

 In September, 2014, DL plans to upgauge one daily fli ght to ATL to a 110

- seat Boeing 717.

Our efforts have not been without setbacks. After working for years to attract Allegiant to our market to offer low fare service to Florida, we achieved that goal last winter. Unfortunately, Allegiant discontinued

ser vice after only three months of operations, citing the need to re

- deploy aircraft to other needs in their

system.

With recent history showing new routes added and enplanements increasing, it would be easy to rest on

our laurels and sit back and watch traff ic continue to grow; however, that is not the reality in this industry. In light of industry events in the regional airline industry with an acute shortage of pilots, fuel, etc., and with Allegiant’s entry and exit from our market, CHO has become keenly aware of the need to maintain the destinations, frequencies, and capacity that we have with our air service, and as a result, we are seeking this SCASD grant for marketing funds to promote these existing services, encouraging local travelers to fly locally and hopefully improving the profitability of these flights to insure that our airline partners keep this capacity in CHO and possibly grow it as well.



# 4 Difference from Previous SCASD Grants

While CHO has been fortunate in receiving two SCASD grants ove r the past 11 years, this current application is in no way related to either of the two previous efforts.

In 2003 and again in 2010, Charlottesville was awarded grant money from this same program to secure and/or improve new regional service. In 2003, CHO sought to replace existing turboprop service between CHO and Charlotte with regional jet service. In 2010, in the wake of NW/DL pulling out of the Detroit

CHO market, CHO wanted to add new service to another airline hub to facilitate east

- west flow traff ic. In15

addition, Chicago was the largest unserved market out of CHO at that time. Both applications were approved, and the ensuing efforts of the airport and the community resulted in enhanced service with regional jets to US’ CLT hub and new, twice

- dail y RJ service between CHO and Chicago’s O’Hare airport on AA.

In this current application for a grant, we are not looking to add new service, we want to keep our passengers flying out of CHO to support and maintain the service that we have.



# 5 MARKETING PLAN (to meet Air Service Needs)

If awarded a SCASD grant, CHO Airport will immediately implement a comprehensive 24 month “Your Airport” marketing plan. Some preliminary details of the plan are included. The final Marketing plan will be approved by all part ners and include the total spend of $347,870. We expect that the value offered from our select partnership will in fact be much higher.



### ( January 2015

– December 2016) “Your CHO Airport” C a m pa i g n Plan C r

ea t e d b y Loca l C r ea ti v e Fi rm

 A strategic marketing plan will be created that will concentrate on raising awareness of each airline serving CHO and the connectivity to each destination. The goal of the plan will be to increase top of mind awareness throughout the first 12 months and maintain that awareness into the second 12 months. A Unique “Your CHO Airport” logo will be created to support all advertising efforts.

(January 2015

– December 2016) “Your CHO Airport” Radio Campaign to create top of mind

awareness

The Charlottesville Radio Group

 30 weekly com mercials on 5 of the largest radio stations in the region. (150 commercials total)

 “Your CHO Airport” Logo, link on each website

 Matching schedule on www.wina.com

, www.3wv.com

, www.1061thecorner.com

 Schedule to air 6 weeks between January

- March 2015 and January

- March 2016

News Radio 1070 WINA

 11 campaign weeks to air between April

- December 2015 and April

- December 2016

 12 commercials per week

97.5 3WV

 27 commercials to air per flight week

 11 total flight weeks, April

- December 2015 and April

- December 2016

Freedom Tour

– command audience attention and response during this 10 week promotion, covering WWWV’s unparalleled 50

- thousand watt foo tprint! We will bring CHO Airport to the people during peak months (May

- July 2015 and 2016). The Your CHO Airport promotion will be center

- stage during 97.5 3WV’s Road Trip reaching Central Virginia’s TOP 25

- 54 audience.

 Live Appearance Thursday afterno ons with an on

- air personality, full broadcast set up with room for sponsor displays and special offers.16

 50 limited edition tour t

- shirts with the CHO logo incorporated in the design, distributed at each Tour Stop!

 Customized contest or register

- to

- win opp ortunity each week to drive traffic and keep excitement levels up!

NFL U Pick ‘Em

– CHO Airport will engage NFL Fans in a weekly contest that raises the stakes of virtually every NFL match

- up all season long. The idea is to promote all of CHO Airport’s d irect connections as they relate to NFL teams (Charlotte, Philadelphia, New York, Chicago etc.)

 Top sponsor credit in over 200 office pool promos, email blasts, and social media...and sponsorship of ESPN’s NFL Sundays

 Premiere logo placement on the www.3WV.com contest page, and 300x 250 web ad with link adjacent to contest page

Lite Rock Z95.1

 27 commercials to air per flight week

 11 total flight weeks, April

- December 2015 and April

- December 2016

95 Days of Summer

- This summer

- long campaign provides CHO with a unique platform to capitalize on key summer spending, introduce new customers to CHO; create a specific link between listeners and the

CHO brand. Summer of 2015 and 2016

 Sponsor credit in 95 Days of Summer updates, events and giveaways. Each local partner received equal rotation in all live/recorded promos from Memorial Day through Labor Day

 Listing and link on the www.literockz951.com 95 Days of Summer page

106. 1 The Corner

 27 commercials to air per flight week

 11 total flight weeks, April

- December 2015 and April

- December 2016

Fall Reunion

– Connect with thousands of Charlottesville’s most thoughtful residents and guests of the University. Autumn in Charlottesvi lle...for locals, it means festivals and football, craft breweries and VA Wineries, dining IN and dining OUT. 106.1 The Corner listeners are going to do their shopping

somewhere...make them think CHO first!

 Receive shared sponsor credits in specially

- created Corner messages every week identifying your business as our partner

.

 Tie CHO directly to Central Virginia’s most vibrant, growing radio station!

January 2015

– December 2016) “Your CHO Airport” Television Campaign to create top of mind

awareness

Phase 1 Introducing “Your CHO Airport” Local CBS, ABC, and FOX Affiliates

 Dura t ion: 26 w eek s

 Spots Per Week: 24 spots per week:

 WCAV

- CBS19: 8 per week (104 total spots) WVAW

- ABC16: 8 per week (104 total spots)

 WAHU

‐ FOX27: 8 per week (104 total spots)

 Total Campaign Reach %: 82% of TV Households

 Total Campaign Reach #: 61,898 Households

 Total Campaign Frequency: 10.2 times per viewer17

“Your Airport” P r om oti on M a in t en an ce Sc h e du le Local CBS, ABC, and FOX Affiliates

 Dura t ion: 39 W eek s

 Spo t s P e r W e ek : 16 spo t s p e r w e e k

 WCAV

- CBS19: 6 p e r w e e k (234 t o t al s p o t s)

 WVAW

- ABC16: 5 p e r w ee k ( 1 95 t o t al spo t s )

 WAH U

- F O X 2 7: 5 p e r w ee k ( 1 95 t o t al spo t s )

 T o t al Ca m pa i g n Re a c h %: 98% of T V H o us e holds

 T o t al Ca m pa i g n Re a c h # : 7 4,720 Hous e holds

 T o t al Ca m pa i g n Fr e qu e n c y : 11

. 4 t i me s p e r vi e w e r 24 spo t s p e r w ee k (t o air b et w e e n 5 a m

– 1a m ) 8 p e r w ee k ( 104 t o t al spo t s) 8 p e r w e e k ( 1 0 4 t o t al s p o t s ) 8 p e r w ee k ( 1 04 t

o t al spo t s )

“Your Airport”

- Promotion Maintenance Schedule NBC29 Duration: 52 Weeks

 550 Total Spots

 Total Campaign Reach 97.9% of Persons 35

- 64

 Total Campaign Reach #: 2,545,200 Adult Impressions

 Total Campaign Frequency: 11.4 times per viewer (January 2015

– December 2016 )

“Go CH O to Ch i cago ” University of Virginia Sports Properties/ Your CHO Airport

Ca m p a i g n to Re

- I nt

r oduc e & M a i n t a in CHO Service

Football Signage

– Scott Stadium: LED Panel Scoreboard Wings

 CHO’s logo and brand identity will appear on both video scoreboard LED panels (26’ x 12.5”) exclusively for one

- half (1/2) quarter during all home football games throughout the season (7 games)

 CHO will receive approximately ten (10) minutes of brand exposure per game

 UVA football drew over 370,000 attendees in 2013

M en’s and Women’s Basketball Signage

– John Paul Jones Arena: Fascia LEDs

 CHO will receive three (3) minutes per game of branded messages on LED fascia boards (Men’s and Women’s basketball)

 Fascia LEDs include lower in

- bowl branding presence on “horseshoe” LED fascia, east

end

- line LED fascia, and upper/lower scoreboard “rings”

 Men’s bas ketball was the 2013

- 2014 ACC regular season and tournament champions before advancing to the Sweet 16 of the NCAA tournament

 Men’s and Women’s basketball hosted over 250,000 fans in 2013

- 2014

Men’s Basketball Radio

- Pre

- game radio spot

 CHO will receive one (1) :30 second pre

- game radio spot per Men’s basketball broadcast on the Virginia Sports Radio Network (approximately 30 broadcasts)

 The Virginia Sports Radio Network reaches statewide through stations across the Commonwealth of Virginia
Digital

– Web Impressions

 CHO will receive 750,000 web impressions on VirginiaSports.com, the official website of The University of Virginia Athletics18  Ad impressions may be geo

- targeted to run exclusively for site visitors from specific zip

codes

 VirginiaSports.com receives over 2 million hits per month and over 300,000 unique visitors per month

(January 2015

– December 2016 )) Un i ve r s ity o f V ir g i n ia (UVA) Alumni Association/” Your CHO Airport Campaign” to re

- Introduce & maintain CHO service

CHO will partner with UVA Alumni Association to engage alumni and their families during home football games for the 2015 & 2016 Seasons

 CHO Airport will receive (4) 1/3 page ads in an issue of the Virginia Magazine mailed to approximately 200,000 people including alumni, faculty a nd parents of current students (electronic version of the Virginia Magazine sent to approximately 20,000 undergraduate and graduate students)

 “ Your CHO Airport” Logo included in the Alumni Association’s Football Weekends 1/3 page ad

 Homecomings full page ad in the Fall issue of the Virginia Magazine mailed to approximately 200,000 people including alumni, faculty and current students (electronic version of the Virginia Magazine sent to approximately 20,000 undergraduate and graduate students)

 “Your CHO Air

port” in GameTime! ad, a local game day publication distributed to 4,000 people per game throughout the Corner and stadium areas

 “Your CHO Airport” in Cville Best of Issue distributed to 27,000 people per year

 “Your CHO Airport” included in Football Wee kends full page ad in the Cavalier Corner magazine

Online and Web Advertising:

 Advertising banner placement in all Football Weekend at Alumni Hall e

- newsletters

 “Your CHO Airport” and link included in at least 10 emails sent to approximately
64,000 alumni regarding football tailgates

 “Your CHO Airport” and link included on the Football Weekends at Alumni Hall web page www.uvafootballweekends.com

Other Communications and Day

- of Marketing:

 Inclusion of CHO

- Mobile (interactive airport marketing vehicle) and 10’ x 10’ CHO tent at Alumni Hall for 6 of the 8 home football tailgates

 Name included in weekly promotional radio commercials leading up to the game airing

on 3WV and WINA

 Premier logo placement of banner (supplied by sponsor) in front of Alumni Hall on

g ame day

 “Your CHO Airport” included on Alumni Hall roadside advertising

 Recognition by performing band/DJ in game day announcements

 “Your CHO Airport” on t

- shirts passed out at tailgates

 “Your CHO Airport” printed on handle of promotional items passed out at tailgates

 Promotional Table at tailgate to promote airport amenities

(January 2015

– December 2016) “Your CHO Airport” / Chamber Event Campaign to Re

- introduce &

Maintain CHO Service19

CHO Airport will select the most popular events in the surrounding counties to participate with an interactive airport display. The use of the CHO Marketing vehicle as well as experiential displays will promote each of the airlines and the connections offered through CHO Airport to approximately 25,000 people.

• Inclusion of CHO

- Mobile (interactive airport marketing vehicle) and 10’ x 10’ CHO tent

at each selected chamber event.

• Premier logo placement of banner (supplied by sponsor) at each chamber event

. (January 2015

– December 2016) “Your CHO Airport” / Char lottesville Albemarle Convention and Visitors Bureau (CACVB) Campaign to Introduce CHO Airport Service / Central Virginia to selected destination markets. Build and sustain consistent awareness of Charlottesville and Albemarle County as a

one stop year

- ro und premier vacation destination through specifically targeted marketing efforts. This includes the implementation of the Charlottesville/Albemarle brand and the focus on select Cities that have LGA service, and are a “one

- stop trip away” from Charlottesvi lle, Virginia. Continue supporting all cooperative efforts with the CHO Airport marketing team to leverage these newly acquired grant funds.

 Host a Charlottesville day in selected communities to coordinate with selected VIP’s and travel

writers.

 Showcase Charlottesville / Albemarle as the gateway to some of the east coast’s premier

wineries.

 Showcase Charlottesville / Albemarle to select tour operators/travel agents as the entry and exit point for their city.

 Showcase Charlottesville / Albemarle to “one

- s top” city group tour operators as a key destination

in their tour bus itineraries.

 Showcase Charlottesville / Albemarle to travel media in select feeder markets as an easily accessibly destination from their cities.

 Implement targeted Facebook advertisemen ts promoting Charlottesville / Albemarle to select markets having direct flight available from their location.

 Work with Destination Travel Network (CACVB’s online advertising component) to feature advertisements on visitcharlottesville.org.



# 6 A Well D eveloped Public

- Private Partnership (including Funding required to implement Marketing Plan)

A key part of the Marketing Plan is the formation of a public

- private partnership between the

Charlottesville

- Albemarle Airport Authority (Authority), owner of the Charlottesville

- Albemarle Airport

and twenty

- one other organizations for the purpose of pursuing this grant award and keeping and
improving the air service that we have today at CHO. The Charlottesville Regional Chamber of
Commerce will assist in the gra nt administration and oversee the marketing efforts on behalf of the
community participants. A list of the organizations that have agreed to participate follows as well as their

c ontributions which serve as the funding source for the local component of ou r Market Plan:20

N eed to Terminate Existing Grants: There will be no need to terminate existing grants as none are open

for CHO.



# 7 Legal Sponsor

Penny Shifflett is the legal sponsor for this project. Ms. Shifflett will be responsible for the administration of the grant. The Contact infor mation for the legal sponsor is Penny Shifflett

, Charlottesville Albemarle Airport, Director of Finance and Administration, Charlottesville, VA 22911,

434

- 973

- 8342 ext. 113; PShifflett@gocho.com

## SCASDP Grant Application 2014

Public/Private Partnership Fund

$$ in kind Total
Albemarle County 500.00 $ 500.00 $

CACVB 5,000.00 $ 5,000.00 $ 10,000.00 $
Central Virginia Partnership for Economic Development 5,000.00 $ 5,000.00 $
Charlottesville Regional Chamber of Commerce 4,500.00 $ 4,500.00 $
City of Charlottesville 250.00 $ 250.00 $ 500.00 $
Culpeper County Chamber of Commerce letter only
Cville Radio Group 35,000.00 $ 35,000.00 $
Fluvanna County Chamber of Commerce 250.00 $ 250.00 $ 500.00 $

Forward Adelante 13,600.00 $ 13,600.00 $
Greene County Chamber of Commerce 500.00 $ 500.00 $
Greene County Economic Development & Tourism 500.00 $ 500.00 $ 1,000.00 $
Lousia County Chamber of Commerce letter only
Madison County Chamber of Commerce letter only

NBC 29 25,000.00 $ 25,000.00 $
Nelson County Chamber of Commerce 250.00 $ 250.00 $ 500.00 $

Newsplex 2,000.00 $ 20,000.00 $ 22,000.00 $
Okay Yellow 500.00 $ 1,500.00 $ 2,000.00 $

UVA Alumni 1,000.00 $ 7,520.00 $ 8,520.00 $

UVA Sports Properties 5,000.00 $ 10,000.00 $ 15,000.00 $
Virginia Film Festival letter only
Virginia Foundation for the Humanities letter only

CHO 5,000.00 $ 5,000.00 $

Total: 25,250.00 $ 123,870.00 $ 149,120.00 $

Total requested from DOT SCASD Grant: 200,000.00 $

Total Public-Private Partnership Fund: 349,120.00 $For more than a century “... dedicated to representing private enterprise, promoting business and enhancing the quality of life in our Greater Charlottesville communities.”

cvillechamber.com • 209 Fifth Street, NE • Charlottesville, Virginia 22902

July 23, 2014

RE: Charlottesville

- Albemarle Airport Authority

Federal Small Community Air Service Development Grant Program Community Partner

– Charlottesville Regional Chamber of Commerce

Dear Mr

. Secretary :

The Charlottesville Regional Chamber of Commerce as always

, is pleased to support the

Charlottesville

- Albemarle Airport Authority’s (CHO) $200,000 grant application to the U nited States Department of Transportation’s Small Communiity Air Service Development P rogram (SCASDP).

Our Airport’s grant application highlights the nee d in today’s highly competitive world to both,

a ttract new air service, as well as to retain and improve the new and existing air s ervice. The

Charlottesville Albemarle Airport Authorit y is dilligent in attrac ting new and expanded air service to CHO,

but economic and industry ev ents outside its control

, adversely impact CHO’s hard work and successes.
The availability of quality commercial air servi ce has a powerful impact on our region’s economy through improved access for our area’s globally

- competitive enterprises; thousands of business visitors and even greater numbers of tourists ; two critically important US defense intellegence agencies and associated defense intellegence en terprises ; one of the nation’s leading universities ; and

, other civic organizations

and institutions.

For more than a century our Chamber is dedicated to representing private enterprise, promoting business and enhancing the quality of life in our G reate r Charlottesville communities. Founded in 1913, today the Chamber has more than 1, 2 00 member & af filiate member enterprises together employ ing

more th an 45,000 men and women , representing an estimated total payroll of more than $1. 75 billion a

year.

Our Chamber helped give birth to the Airport. In 1947, a fter surveying, researching, and investigating a n “ideal location ” for a Charlottesville Airport, the Chamber came to a conclusion with a report sponsoring a location for the Charlottesville Albemarle A irport. The Chamber Board of Directors

then sent the report to the City of Charlottesville and Albemarle County for “implementation.” The Charlottesville Albemarle Airport opened in 1955, after several years of regulatory approvals at that very

same “ide al location” identified by the Chamber in 1947. Ours is an enduring 67

- year “public

- private”partnership that has helped to build and maintain our Charlottesville

- Albemarle Airport a s a signature

regional transportation facility in our Greater Charlottesville region.

Our a irport is a key portal into our community and a link to our nation and the world. Each year

more than 460 ,000 people take off from or land at our airport, repre senting aggregate airport revenues of

more than $4 .3 million. The continued sustenance and progress of “CHO” as a safer, more efficient and increasingly affordable transportation artery remains essential to the economic vitality of our region.

- 2

-

As you know well, our national air transportation industry continue s to work through difficult economic challenges. Throughout these challenges, in Charlottesville, t he Airport Authority and its management team enjoy our Chamber’s and community’s confid ence and support. With this in mind, our Chamber is pleas ed to participate in this program to help increase air service into our region. By incorporating the use of our effective direct Chamber business communications in your air travel promotions, this partnership will help insure that a broad range of business, university and community

leaders

– and travelers

– will avail themselves of more frequent air travel.

As one of the Authority’s community partner s, our Chamber will provide in

- kind programmatic communications and other strategic and administrative support and assistance to this initiative. We

estimate the in

- kind value of the se items to be in excess of $4,5 00. Where small community air service initiatives are concerned, it is partnerships such as ours that can help make the difference between having
sound, efficient, improving air services or not. We have every confidence that the CHO program will have the full support of our Chamber and its member enterprisses and the Central Virginia business community. Again, our Charlottesville Regional Chamber is pleased to join the Charlottesville

- Albemarle Airport Authority as a community partner in this Federal Small Community Air Service Development Grant Program initiative

.

Mr. Secretary, our Chamber urges your favorable consideration of the Charlottesville

– Albemarle Airport Authority’s grant application and we l ook forward to a successful re new ed partnership in building air travel for our region.

Thank you.

Sincerely,

Timothy Hulbert , IOM

Chamber President

The Honorable Anthony Foxx Secretary of Transportation Office of the Secretary United States Department of Transportation1200 New Jersey Avenue, SE

Washington, DC 20590

cc: T he Chamber Board of Directors

The H onorable Timothy Kaine, United States Senate
The Honorable Mark Warner, United States Senate The Honorable Robert Hurt, United States House of Representatives

### July 28, 2014

D ear Melinda, Jason, or Secretary Foxx

I am pleased to submit this letter of support for the Charlottesville

- Albemarle Airport’s (CHO)

grant application to the U.S. Transportation’s Small Community Air Service Development Program (SCASDP). CHO’s grant application highlights the potential of their public

- private partnership initiative to help market and retain our local air services and describe s a number of
new and expanded services that CHO has developed in recent years . The availability of quality commercial air service has a profound impact on the region’s economy through improved

access for visits

, but equally important, such quality air ser vice supports the needs of area

businesses and organizations, like the Virginia Film Festival (VFF) now celebrating its 27th year as a major program of the University of Virginia and a major cultural destination event for our
region of Central Virginia.

Towards this end, I want to assure you t hat the VFF fully supports CHO’s marketing efforts to
promote air services in destination markets and to k eep Central Virginians flying locally by using
Charlottesville Albemarle Airport. I am committed to working w ith CHO on an in

- kind partnership that utilizes the wide reach of the VFF to promote CHO’s initiatives to our non

- local
and local prospective audiences. If there is anything else I or the VFF can do to assist you with this endeavor, please don’t hesitate to ask.

Thanks for your efforts to maintain our leve l of air service that benefits the VFF and our
community so broadly. I feel certain that you will be successful in getting the grant from the
government and support from our greater Charlottesville com munity.

Sincerely,

Jody Kielbasa, Directo r

## July 2 4 , 2014

The Honorable Anthony Foxx Secretary of Transportation U.S. Deparment of Transportation
1200 New Jersey Ave. SE Washington, DC 20590

RE: U.S. DOT Small Community Air Service Development Program
Charlottesville Albemarle Airport
Charlottesville, VA

Dear Mr. Foxx:

I am writing this letter of support o n behalf of The University of Virginia and

it’s official marke ting arm

, Virginia Sports Properties. We are pleased to submit this letter of support of the Charlottesville Albemarle A irport Authority’s (CHO) application to the U.S. Department of Transportation’s Small Communiity Air Service Development Program (SCASDP). The Airport’s grant application is one of the highest priorities in keeping
Charlottesville and the central Virginia region on the leading edge serving

citize ns who choose to fly into and out of this market

.

The CHO’s great work has been instrumental in attracting and retaining
best in class aviation partners and provid es service to the community at a

level that is unmatched. As someone who represents a world class
university on a daily basis I can tell you that the work that Charlottesville
and the Airport Authority has done is at risk if they don’t continue with
their strategic plan of growing their commercial fo otprint and providing

excellent customer service

. Telling the CHO story in creative platforms
such as the ones Virginia Sports Properties provides enables our partners to

## drive business and leisure travel to one of the hidden gems in the region

.

We will have well over a million visitors to the UVA grounds just to attend
sporting events in the next calendar year . The amou nt of support we
receive directly an d indirectly from the the CHO makes the investment

work for us in terms of dollar commitments as we ll as value in kind donations to make CHO’s marketing budget significantly more efficient.

I can tell you for certain that this “public

- private” partnership that has been
developed between CHO and Virginia Sports Properties for the purpose of
supportin g our local CHO air services b y marketing them more broadly we are fortunate to have a reputiation as an outstanding Universiy and work
hard everyday to keep that standard high both on the sporting fields and in

the classroom.

I have spoken to other leaders at the University of Virginia and in the
community at large and I have every confidence that th is program will have the full support of the Greater Charlottesville region and beyond . CHO has

a record of success. I respectfully su bmit to you that should you decide to fund CHO’s application, we have every confidence that the program s we will be supporting with shine as an example of a true “Public / Private”

venture that works.

Warmest Personal Regards

,

Pat

Patrick Wood
Gen eral Manager Virginia Sports Properties University of Virginia Athletics
1815 Stadium Road Charlottesville, VA 22903

## July 2 4 , 2014

The Honorable Anthony Foxx Secretary of Transportation
U.S. Deparment of Transportation
1200 New Jersey Ave. SE Washington, DC 20590

RE: U.S. DOT Small Community Air Service Development Program
Charlottesville Albemarle Airport
Charlottesville, VA

Dear Mr. Foxx:

Virginia Sports Properties , The University of Virginia’s official marketing
arm, would also like to extend our financial support of Charlottesville Albemarle Airport Authority’s (CHO) application to the U.S. Department of Transportation’s Small Communi ty Air Service Development Program (SCASDP). The total contribution will include $5,000 in cash and $10,000 in kind for a total of $15,000 of cash and in kind support.

We are fully confident that this support will go to great use as CHO continues to grow their brand and in tu rn, the city of Charlottesville, its
surrouding counties, and its partners.

Warmest Personal Regards

, Pat

Patrick Wood General Manager Virginia Sports Properties University of Virginia Athletics
1815 Stadium Road Charlottesville, VA 22903

## NELSON COUNTY CHAMBER OF COMMERCE



# P. O. Box 182 Lovingston, VA 22949 July 24, 2014

The Honorable Anthony Foxx Secretary of Transportation U.S. Deparment of Transportation 1200 New Jersey Ave. SE Washington, DC 20590

RE: U.S. DOT Small Community Air Service Development Program

Charlottesville

- Albem arle Airport

, Charlottesville, VA

Dear Mr. Foxx:

I am pleased to submit this letter of support on behalf of the Charlottesville

- Albemarle Airport Authority’s (CHO) application to the U.S. Department of Transportation’s Small Communiity Air

Service Develo pment Program (SCASDP). The Airport’s grant application highlights the need in today’s aviation world to attract new service as well as to retain existing services.

C harlottesville has done an exemplary job in attrac t ing new and expanded air service to CHO, but numerous industry events outside its control imperil CHO’s hard work and associated successes. The availability of quality, commercial air service has a profound impact on the region’s economy through improved a ccess for visitors but equally important, supports the

needs of area business es , organizations, and educational institutions.

In return, as a par t n er with CHO, this letter is a commitment on behalf of Nelson County

Chamber of Commerce to contribute $250 t o invest in the marketing efforts associated with this grant. In addition, we will contribute at least $250 worth of in

- kind donations or promotions.

I want to assure you that the “public

- private” partnership that has been developed between CHO and the Nelson County Chamber of Commerce for the purpose of supporting our local CHO air services by marketing them more broadly will have our full support. Where small community air service initiatives ar e concerned, it is partnerships like ours that can make the difference between having these services and losing them. We have every confidence that the program will have the full support of the Central Virginia business community.

Sincerely,

Julia W. Rogers, CPA President, Chamber of Commerce Board of Directors

Cc: Elaine Hooker, SecretaryP.O. Box 769 An NBC Affiliate
503 East Market Street
Charlo ttesville, VA 22902

434

- 220

- 2900
Fax: 434 220

- 2904



## WVIR

- TV CHARLOTTESVILLE

July 22, 2014

Dear Jason :

Thanks for your letter of July 18, 2014 noting the possibility of a public

- private partnership

initiative between the Charlottesville Albemarle Airport , local businesses, and the U.S. Department o f Transportation. The people of the Charlottesville

- Albemarle area have

been highly supportive of the positive changes in the new and expanded services at the airport over the past several years . Hopefully, a partnership between the three parties, the Airp ort, local business and the Department of Transportation, can yield exciting new

devel o pments in local air transportation.

In order to help meet that end, NBC29, CW2 9, 29WeatherPlus and nbc29.com would lik e
to co ntribute over $25,000 of advertising. The marketing effort runs across all of our

networks , and the web. We’ll also provide substantial direct mail support. We feel our commanding share of audience will provide a very strong support in the multi counties the airport serves. You folks have done a t errific job at getting Central Virginians flying locally out of the Charlottesville Albemarle Airport.

Once again, thanks for what you’ve done to bring an expanding level of air ser v ice to Central Virginia. I trust the grant will go through, and that we, at NBC29, CW29, 29WeatherPlus, and nbc29.com can help develop many exciting, new possibilities to local

air travel.

Sincerely,

Pete Osborne
Senior Account Executive

### MADISON CHAMBER OF COMMERCE

110A N Main Street
Madison, VA 22727

540

- 948

- 4455
http://www.madison

- va.com

July 21, 2014

The Honorable Anthony Foxx
Secretary of Transportation U.S. Deparment of Transportation

1200 New Jersey Ave. SE Washington, DC 20590

RE: U.S. DOT Small Community Air Service Development Program

Charlottesville

- Albemarle Airport
Charlottesville, VA

Dear Mr. Foxx:

I am pleased to submit this letter of support o n behalf of the Charlottesvi lle Albemarle Airport Authority’s (CHO) application to the U.S. Department of Transportation’s Small Communiity Air Service Development Program (SCASDP). The Airport’s grant application highlights the need in today’s aviation world to not
only attract new service, which we have, but equally as important, to retain that service. Charlottesville
has done an exemplary job in attraciting new and expanded air service to CHO, but numerous industry events outside its control imperil CHO’s hard work and associat ed successes. The availability of quality, commercial air service has a profound impact on the region’s economy through improved access for
visitors but equally important, supports the needsof area business, organizations, and educational

institutions.

I want to assure you that the “public

- private” partnership that has been developed between CHO and the
Madison County Chamber of Commerce for the purpose of supporting our local CHO air services by
marketing them more broadly will have our full support. Where small community air service initiatives
are concerned, it is partnerships like ours that can make the difference between having these services and
losing them. We have every confidence that the program will have the full support of the Central Virgi nia business community.

Sincerely,

Tracey Gardner, Executive Director & Tourism CoordinatorGreene County Economic Development & Tourism Greene County Visitor Center 8315 Seminole Trail, Suite 2 Ruckersville, VA 22968 Phone: (434) 985

- 6663 www.gatewaytocharlottesville.com Fax: (877) 335

- 9993 

### July 21, 2014

The Honorable Anthony Foxx Secretary of Transportation U.S. Deparment of Transportation 1200 New Jersey Ave. SE Washington, DC 20590

RE: U.S. DOT Small Community Air Service Development Program Charlottesville Albemarle Airport Charlottesville, VA

Dear Mr. Foxx:

On behalf of Greene County Economic & Tourism, please accept this letter in full support of the Charlottesville Albemarle Airport Authority’s (CHO) application to the U.S. Department of Transportation’s Small Communiity Air Service Development Program (SCASDP). As Green’s director I applaud the Airport’s grant application to attact new service and to retain the current service for our community. The quality, commercial air service that CHO provids has a significant impact on the region’s economy. As a cooperative partner in economic development and tourism, the Airport is considered vital to our future growth.

In return, a s a par t n er with CHO, this letter is a commitment on behalf of Greene’s Economic Developmen t and Tourism department to contribute $500 to invest in the marketing efforts associated with this grant. In addition, we will contribute $500 worth

of in

- kind donations/promotions.

I hope you value the service that the airport provides our community as much as we do. We feel this grant will help to insure the future vitaligy of air service to the entire central Virginia area. Please let me know if we as a key stake holder can do more to see the continued success of Charlottesville Albemarle Airp ort Authority.

Most Sincerely,

Alan E. Yost

DirectorJuly 2 2 , 2014

The Honorable Anthony Foxx Secretary of Transportation U.S. Deparment of Transportation
1200 New Jersey Ave. SE Washington, DC 20590

RE: U.S. DOT Small Community Air Service Development Program

Charlottesville

- Albemarle Airport
Charlottesville, VA

Dear Mr. Foxx:

I am pleased to submit this letter of support on behalf of the Charlottesville

- Albemarle Airport Authority’s (CHO) application to the U.S. Department of Transportation’s Small Communiity Air Service
Development Program (SCASDP). The Airport’s grant application highlights the need in today’s aviation
world to not only attract new service, which we have, but equally as important, to retain that service.

Charlottesville has done an exemplary job in attrac ting new and exp anded air service to CHO, but numerous industry events outside its control imperil CHO’s hard work and associated successes. The availability of quality, commercial air service has a profound impact on the region’s economy through
improved access for visit ors but equally important, supports the needsof area business, organizations,

and educational institutions.

I want to assure you that the “public

- private” partnership that has been developed between CHO and

the Greene County Chamber of Commerce for the purpose of supporting our local CHO air services by marketing them more broadly will have our full support. Where small community air service initiatives are concerned, it is partnerships like ours that can make the difference between having these servic es and losing them. Towards this end, Greene County Chamber of Commerce would be pleased to contribute $ 500.00.

We have every confidence that the program will have the full support of the Central Virginia business
community.July 25, 2014

The Honorable Anthony Foxx Secretary of Transportation U.S. Deparment of Transportation 1200 New Jersey Ave. SE Washington, DC 20590

RE: U.S. DOT Small Community Air Service Development Program
Charlottesville

- A lbemarle Airport Charlottesville, VA

Dear Mr. Foxx:

Representing our diverse business community, I am pleased to submit this letter of support on behalf of the Charlottesville

- Albemarle Airport Authority’s (CHO) application to the U.S. Department of Tra nsportation’s Small Communiity Air Service Development Program (SCASDP). The Airport’s grant application highlights the need in today’s aviation world to not only attract new service, which we have, but equally as impor tant, to retain that service. Charl ottesville has done an exemplary job in attrac ting and providing services to Forward/Adelante Business Alliance (FABA) members, a diverse and upwardly mobile cross

section of the Greager Charlottesville area. Likewise, t he availability of quality,

commerci al air service has a profound impact on the region’s general economy

.

In return, as a partner with CHO, this letter is a commitment on behalf of FABA to contribute $8400 toward the marketing efforts associa ted with this grant to provide comprehensive pro motions in our quarterly business magazine. In

a ddition, we will contribute $5200 worth of in

- kind donations/promotions to highlight the airlines during each of our Signature business events.

We are committed to fully support our local CHO air ser vices through our “public

private” partnership that has been developed between CHO and
Forward/Adelante Business Alliance during the years for the purpose of

s upporting our local airport.

Sincerely,

Olga Alcaide

- Morse

Executive Director
Forward/Adelante Business Alliance www.forwardvirginia.comVirginia Foundation for the Humanities 145 Ednam Dr. , Charlottesville, VA 22904 

### The Honorable Anthony Foxx Secretary of Transportation U.S. Department of Transportation 1200 New Jersey Avenue SE Washington, DC 20590

July 24, 2014

Re: U.S. DOT Small Community Air Service Development Program Charlottesville Albemarle Airport , Charlottesville VA

Dear Mr. Foxx,

I am pleased to write in support of the Charlottesville Airport Authority’s (CHO) application to the U.S. Department of Transportation’ s Small Community Air Service Development Program (SCASDP). CHO’s grant application demonstrates the need for regional airports, of which CHO is an outstanding example, to attract and retain new service. Quality commercial air service is a

fundamental com ponent of a healthy regional economy, and a thriving airport such as CHO provides necessary services to Charlottesville

- area businesses, educational institutions, and cultural organizations alike.

From my perspective as Program Director of the Virginia Fe stival of the Book, the availability of a good local airport is, without question, essential to the ongoing success of the Book Festival. Authors, publishers, and visitors all consider air service as an important factor when they elect to make the trip to Charlottesville and take part in our annual Festival.

Please be assured that the partnership between the Virginia Festival of the Book, its parent organization, the Virginia Foundation for the Humanities, and CHO is intended to be enduring, rather than si mply serve the singular purpose of a marketing initiative. We are delighted to collaborate with CHO, and are eager to build a partner ship with the airport to create ongoing, community

based initiatives

. If awarded the grant in question, CHO’s work will undoubtedly have a significant and lasting impact on the Greater Charlottesville and Central Virginia communities.

Sincerely,

Jane B. Kulow Program Director, Virginia Festival of the Book Board of Directors

Chairman of the Board

Walter Rugaber Meadows of Dan, VA

Stephen K. Adkins Charles City, VA

Carolyn Bell Lynchburg, VA

Bob Blue Richmond, VA

Robert H. Brink Arlington, VA

Scott Colley Keswick, VA

Theodore DeLaney Lexington, VA

William Freehling Fredericksburg, VA

Barbara J. Fried Crozet, VA

Joanne Gabbin Harrisonburg, VA

Oliver Hill, Jr. Petersburg, VA

W. Tucker Lemon Roanoke, VA

B. Thomas Mansbach Washington, DC

Maurie D. McInnis Charlottesville, VA

Edward Mullen Richmond, VA

Michelle DuPont Olson McLean, VA

Daphne Maxwell Reid Petersburg, VA

Rita Roy Reston, VA

Martha J. Sims Virginia Beach, VA

Dennis Treacy Smithfield, VA

Emma Violand

- Sanchez Arlington, VA

Peter Wallenstein Blacksburg, VA

Lacy Ward, Jr. Prospect, VA

Robert C. Vaughan, III

VFH PresidentLetter of Financial Support

July 28, 2014

Dear Jason Burch,

Thank you for your contacting me about the potential public-private partnership initiative to
help market and retain our local air services at Charlottesville-Albemarler Airport. Our communi

ty’s hard work has resulted in a number of new and expanded services in recent years, and with the ongoing changes in the airline world, we don’t want to return to the status quo of years past.

Towards this end, Okay Yellow would be pleased to contribute $500 cash and $1,500 in kind
marketing planning services, graphic design, and video production services to support broad marketing eorts to promote local air services and keep Central Virginians ying locally by using Charlottesville Albemarle Airport. If there is anyting else I or our company can do to assist you
with this endeavor, please don’t hesitate to ask.

Thanks for your eorts to maintain our level of air service that benets our company and our community so broadly. I feel certain that you will be succesful in getting the grant from the Department of Transportation and support from our greater Charlottesville community.

Regards,

Paul Dierkes

Owner Okay Yellow, LLC