## 1 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 Summa ry Information schedule is located at

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

A. P ROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET 

## (D&B) DATA UNIVERSAL

NUMBERING SYSTEM 

## (DUNS) NUMBER 

## , INCLUDING 

## +4, EMPLOYEE IDENTIFICATION NUMBER 

## (EIN) OR TAX ID



## . Legal Sponsor Name: Lawton Metropolitan Area Airport Authority

DUNS Number: 102393394

EIN/Tax ID: 731618964

B. L IST THE 

## N AME OF THE COMMUNITY OR CONSOR TIUM OF COMMUNITIES APPLYING 

## :
1. L AWTON 

## , O KLAHOMA



## 2.

3.

4.

C. P ROVIDE THE FULL AIRPORT 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. Lawton-Fort Sill Regional Airport (LAW) 2.

3. 4.

## 2 D. L IST THE 

## 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING

ORGANIZATION 

## , AND IF A CONSORTIUM 

## , TO EACH PARTICIPATING COMMUNITY



## . 1. OK-04 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) prev iously received a Small Community Air Service Development Program Grant

If previous recipient: Year of grant(s): 2005

F. P UBLIC 

## /P RIVATE 

## P ARTNERSHIPS 

## : (L IST 

## O RGANIZATION NAMES 

## )

PUBLIC PRIVATE

1. Lawton Metropolitan Area Airport Authority 1. Lawton Fort Sill Chamber of Commerce

2. Comanche County Industrial Development Authority 2.

3. Oklahoma Aeronautics Commission 3. 4. 4. 5. 5.

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 Serv ice Other (explain below)

H. E XISTING 

## L ANDING 

## A IDS AT 

## L OCAL 

## A IRPORT 

## :
Full ILS Outer/Middl e Marker Published Instrument Approach Localizer Other (specify:)

## 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 $195,000

2 State cash financial contribution $15,600
Local cash financial contribution

3a Airport cash funds $15,000

3b Non-airport cash funds $25,000
3 Total local cash funds ( 3a + 3b ) $40,000
4 TOTAL CASH FUNDING ( 1+2+3 ) $250,600

In-Kind contribution

5a Airport In-Kind contribution** $10,000

5b Other In-Kind contribution** $120,000

5 TOTAL IN-KIND CONTRIBUTION
( 5a + 5b ) $130,000

6 TOTAL PROJECT COST ( 4+5 ) $380,600

J. IN-KIND CONTRIBUTIONS**
For funds in lines 5a (Airport In-Kind contribut ion) and 5b (Other In-Kind contribution), please
describe the source(s) of fund( s) and the value ($) of each. 5a: Strategic plan staffing/monitoring ($10,000) 5b: Media ($110,000) and strategic plan staffing/monitoring ($10,000)

## 4 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)

______________________________________________________________________________

______________________________________________________________________________Legal sponsor: Lawton Metropolitan Area Airport Authority Contact: Barbara McNally - Airport Director Lawton/Fort Sill Regional Airport · PO Box 531 · Lawton, OK 73502-0531 (580) 353-4869 · barbara@flylawton.org 

# Application Under the Small Community Air Service Development Program

Docket DOT-OST-2013-0120 

# Lawton-Fort Sill Regional Airport Lawton, Oklahoma

                      Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityTable of Contents

Prepared by 

# Table of Contents

Page

Section 1. Application Highlights ............................................... 1 Air Service Issues ................................................................................... 1 Realistic Ti meline .................................................................................... 2 Financial Stakeholders Ac tively Involved ................................................ 2 Material Benefits ..................................................................................... 2


### Section 2. Air Service Environment ........................................... 3 Lawton Catchm ent Area ......................................................................... 3 Strong Local Econom y ............................................................................ 4 

### Section 3. Air Service – Existing and Historical ....................... 6 Existing Air Service ................................................................................. 6 Historical Ai r Service ............................................................................... 6 Previous Air Service Development Efforts .............................................. 8


### Section 4. Air Service Needs and Deficiencies ......................... 9 Underserved Market ............................................................................... 9 Declining Ai r Service ............................................................................. 10 High Airfares Cont inuing to Climb ......................................................... 11 

### Section 5. Strategic Plan ........................................................... 13 Project Goals ........................................................................................ 13 Public-Private Partne rship..................................................................... 13 Proposed Pl an ...................................................................................... 13 Strategic Plan Funding .......................................................................... 17 Project Continuation and Sustai nability ................................................. 17 Previous Grant Recipient - New Project and Goals .............................. 18 

### Section 6. Schedule and Monitoring ........................................ 19 Schedule ............................................................................................... 19 Monitoring Program .............................................................................. 19 

### Appendix A. Letters of Support ................................................ 20Application Under the Small Communi ty Air Service Development Program Lawton Metropolitan Area Airport AuthorityApplication Highlights 

### 1



# Section 1. Application Highlights

his Small Community Air Service Development Program (SCASDP) grant application for Lawton-Fort Sill Regional Airport (LAW) in Lawton,
Oklahoma meets the criteria of Docket DOT-OST-2013-0120. The Lawton Metropolitan Area Airport Authority, the airport sponsor, is requesting $195,000 in financial assistance to support a $380,600 air service initiative. The project goal is to maintain and improve performance of existing service to prevent service
reductions or discontinuation.

The Strategic Plan to accomplish the project goal is to fund a marketing/service awareness campaign to publicize the attributes of the existing service to increase ridership. Additionally, market monitoring will be conducted to track the value of the marketing campaign and to provide feedback for adjusting local promotion if needed. The intent of the program is to make local travelers aware of the service options available from LAW (inc luding one-stop connections) and the convenience of flying local versus driving to alternate airports.



### Air Service Issues

LAW and its catchment area have suffered fr om a lack of adequate air service for quite some time. Service has been restricted to feeder service to the Dallas/Fort Worth International Airport (DFW) hub with aircraft having limited capacity due to the economics of the short segment le ngth (160 miles). While catchment area traffic increased 44 percent from 2006 to 2010, air service at LAW has remained essentially static and passenger diversi on high. Activity associated with the national military build-up has contributed to this growth. The combination of single carrier service and restricted capaci ty has resulted in an overpriced market and more than 70 percent of catchment area air travelers diverting to other airports.

Reduced departures and seats have deteriorated the quality of air service provided at LAW. In a market with such limited air service, any reductions seriously impede the community’s access to the national air transportation system. LAW’s primary concern is ensur ing American’s profitability so that
American does not continue to reduce se rvice. Compared to markets American
serves at DFW with 50-seat aircraft or sm aller, LAW’s average load factor is significantly underperforming at 65 perce nt compared to an average for similar markets of 77 percent. This puts the LAW market at risk for further service reductions. This Strategic Plan is crafted to address that concern. 

# T This section contains:



###  Project goals



###  Description of the

Strategic Plan



###  Highlights of the grant

applicationApplication Under the Small Communi ty Air Service Development Program Lawton Metropolitan Area Airport AuthorityApplication Highlights 

### 2



### Realistic Timeline

The Strategic Plan is designed to increase ridership at LAW by implementing an aggressive, new marketing campaign to maintain and sustain the service. Retaining the existing flights will require a service awareness campaign designed to educate the traveling public and promot e the benefits of flying local. Key components of the Strategic Plan include:

 Multi-media marketing plan

 Financial commitment by the community

 Service monitoring program to ensure success



### Financial Stakeholders Actively Involved

The City of Lawton, Oklahoma, the Lawton Metropolitan Area Airport Authority, and the Lawton Fort Sill Chamber of Commerce have formed a public-private partnership to support this application. This partnership has the ability to implement the project in a reasonable timel ine and is committed to seeing it
succeed. Non-airport revenue sources will fund 16 percent ($40,600) of the
Lawton Metropolitan Area Airport $380,600 Strategic Plan cash requirement. Authority and the community will provid e 49 percent of the total funding plan in the form of cash and in-kind services; $130,000 is in-kind services with the remaining $55,600 in cash. All the requirements for sustainability are in place.



### Material Benefits

The assistance will provide material benef its to a broad segment of the traveling public, including businesses, the milita ry, educational institutions, and other enterprises. LAW serves an airport catc hment area of more than 355,000. The region served by LAW has a multifacet ed economy with many businesses and
institutions reliant on air service.

Unique to the Lawton area is the proximity of Altus Air Force Base and Fort Sill. Fort Sill, in particular, processes thousa nds of soldiers throughout the nation.
Fort Sill is one of four sites to host the Basic Officer Leadership Course which
has increased the travel base and air trav el needs over the last several years. Both of the military facili ties have expressed the need for air service retention and improvement at LAW. 

### The Strategic Plan is designed to increase ridership at LAW by

implementing an aggressive, new marketing campaign to

maintain and sustain American’s service.Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service Environment 

### 3



# Section 2. Air Service Environment

his section provides a profile of the Lawton community highlighting the economic and demographic attributes of the LAW catchment area. It identifies the businesses, institutions, military, government branches, and population that benefit from t he existing air service.



### Lawton Catchment Area

LAW serves a population that includes the City of Lawton, nine Oklahoma counties (i.e. Carter, Comanche, Cotton, Greer, Harmon, Jackson, Kiowa, Stephens, and Tillman), and a portion of fi ve other Oklahoma counties (i.e. Caddo, Garvin, Grady, Jefferson, and Murray). The service area covers 93 zip codes with an estimated 357,000 residents. Exhibit 2.1 shown below is a map of the LAW catchment area by zip code and shows the proximity of the Lawton area in relation to Dallas/Fort Worth and Oklahoma City.

Within a 50-mile radius of LAW is a popul ation of almost 330,000; expanded to 75 miles, the population grows to almos t 800,000. The area is experiencing consistent population growth and is expected to continue to grow into the future.

EXHIBIT 2.1 LAW CATCHMENT AREA 

# T This section contains: Description of the Lawton community in relation to
air service.



### LAW serves a population in the airport catchment area of 357,000. There is a population of almost 800,000 within a 75- mile radius.Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service Environment 

### 4



### Proximity to a Competing Airport

Based on a 2010 estimate of LAW ret ention, 73 percent of LAW’s catchment area air travelers find it necessary to drive to another airport to access air service. Thirty-six percent of passengers in the catchment area use Oklahoma City’s Will Rogers World Airport (OKC) located 88 miles to the northeast, and 29 percent use DFW located 184 miles to the southeast (reference Table 2.1 ).

TABLE 2.1 DRIVE TIME TO ALTERNATE AIRPORTS

AIRPORT MILES DRIVE TIME Wichita Falls, TX (SPS) 50 51 min Oklahoma City, OK (OKC) 81 1 hour, 13 min Tulsa, OK (TUL) 199 2 hours, 54 min Dallas, TX (DFW) 206 3 hours, 6 min Dallas, TX (DAL) 213 3 hours, 14 min Source: Microsoft MapPoint 2010

Although OKC offers several air service options including low-fare service, air travelers from the Lawton community must drive over 1.25 hours to access the airport. Unfortunately, congestion in the Oklahoma City area can be grueling at particular times throughout the day, and it can significantly add to the drive time. Travel time plus pre-boarding time requirements can exceed three hours and 30 minutes which is undesirable for many businesses located in the Lawton area. DFW, located 206 miles to the southeas t and in a more congested area than OKC, requires travelers from Lawton to drive over three hours to reach the airport. With heavy traffic and pre-boarding time requirements, an air traveler from the Lawton area diverting to DFW ma y require over six hours of lead time before their flight. Neither option is conducive to local economic development.

While Wichita Falls is less than an hour to the south, it is a non-hub airport with similar air service to LAW. The closest medium/large hub airport to the Lawton
area is DFW. Tulsa and OKC are clas sified as small hub airports. Without acceptable alternatives, local commercial air service is very important and highly valued by local Lawton residents.



### Strong Local Economy

Lawton, the fourth largest city in Oklahom a, is centrally loca ted in the heart of
southwest Oklahoma at the base of the Wi chita Mountains. Lawton serves as the prominent industrial, shopping, medical , recreational, educational, and religious center for the region. The region serve d by LAW has a multifaceted economy with many businesses and institutions reliant on air service for connections to customers, suppliers, and other facilities. 

### Lawton serves as the prominent industrial,

shopping, medical, recreational, educational, and religious center for the region.Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service Environment 

### 5

Fort Sill

Located just north of Lawton, Fort S ill has an annual total economic impact of $1.9 billion and encompasses about 94,000 acres or 145 square miles. It is home to a military population of about 16,50 0 and a civilian workforce of 7,000. Approximately 60,000 family members live on post or in the surrounding communities, and there are approximately 23,300 military retirees in the region.

Fort Sill is designated as the US Army Fi res Center of Excellence and is home to the Field Artillery School, Air Defense Artillery School, Army Training Center, Non-Commissioned Officer Academy, two Army Fires Brigades, two Air Defense Artillery Brigades, and many tenant uni ts. As the result of the 2005 Base Realignment and Closure (BRAC), the Ai r Defense Artillery School has fully made the transition from operations at Fo rt Bliss, Texas to its new permanent home at Fort Sill. Fort Sill generates thous ands of trips annually. Local air service is essential for Fort Sill military person nel destined to/from military facilities throughout the US and internationally.



### Local Businesses

The LAW catchment area’s major employers are listed in Table 2.2

. Manufacturers such as Goodyear Tire and Rubber Company, the largest private employer in the region, Bar–S Foods Company, and Republic Paperboard Company use LAW’s air service regularly to reach their facilities and customers throughout the world. Consulting, info rmation technology, and risk management companies (e.g. Advanced Systems Technology) also call the Lawton-Fort Sill region home. These industries are highly dependent on LAW’s air service.

Military communities across the nation have been bracing for the economic effects of sequestration and the impact of $500 billion in reductions to defense spending over the next 10 years. This has frozen inve stment in many of these communities, but Lawton continues to receive new developments in retail trade, along with hospitality, medical, and business services.



### Education and Government Institutions

Cameron University, Comanche County Hospital, city and county government, as well as local federal government em ployees represent government and institutional employees that regularly us e LAW’s air service. Cameron University, averaging 6,000 students, is a 100-year old higher educat ion institution under the University of Oklahoma Board of Regent s. Since 2008, enrollment at Cameron has grown by 14 percent, reaching the highest enrollment rates in Cameron's history. Retaining air service at LAW will have far reaching benefits for a broad spectrum of travelers and wi ll accomplish the goals of the SCASDP. TABLE 2.2 LAW CATCHMENT AREA’S MAJOR EMPLOYERS ORGANIZATION Fort Sill Good Year Tire & Rubber Co. Halliburton Lawton Public Schools Comanche County Memorial Hospital Raytheon Republic Paper Silverline Plastics Duncan Regional Hospital

Wilco Manufacturing Northrop Grumman

Walmart/Sam’s City Of Lawton Cameron University Southwestern Medical Center City Of Duncan The Geo Group Comanche Nation Great Plains Technology Center CGI Bar-S Foods Comanche County Ez Go Foods Southwest Oklahoma Heart And Vascular Center
Source: Lawton-Fort Sill Economic Review 2013Application Under the Small Communi ty Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service – Existing and Historical 

### 6



# Section 3. Air Service – Existing and Historical

his section presents a record of the cu rrent and historical air service for LAW. The current air service discussion highlights: service frequency, nonstop destinations, and equipment ty pes. The historical air service section includes a description of histori cal destinations, traffic levels, service providers, and any extenuating factors t hat have affected air service in the past or that can be expected to influence air service in the future. Past air service development efforts are also covered in this section.



### Existing Air Service

LAW suffers from very limited air service. Only one carrier (American Airlines) operates at the airport, providing nonstop commercial air service to only one destination, DFW. As of July 2013, LAW had 36 weekly departures and 1,800 weekly outbound seats to DFW. Amer ican uses the 50-seat Embraer ERJ-145 Regional Jet (operated by American’s regional subsidiary, American Eagle) to provide service. Table 3.1 provides a list of current air service at LAW.

Going forward, service is scheduled to decrease by two roundtrips per week, dropping to just four daily departur es instead of five on the weekends.



### Historical Air Service

While the airlines providing service at LAW has not changed much over the last 10 years, service levels have changed sign ificantly. This subsection summarizes LAW’s air service history including: destinations, traffic levels, and service providers. Extenuating factors that have affected air service are also reviewed.



### Destinations, Service Providers, and Traffic Levels

American Airlines has been operating in the LAW market providing service to DFW for many years. Delta Air Lines a ttempted to serve the LAW market in 2008/2009 to ATL; however, escalating fuel costs and the recession led to
Delta’s cessation of service. Delta ente red the market in March 2008, and left a year later in March 2009 during the peak of the recession.

Table 3.2 , next page, provides the history of LAW’s nonstop service by destination and air carrier over the past 10 years including departures, seats, onboard passengers and load factor. 

# T

TABLE 3.1 CURRENT AIR SERVICE ITEM LAW Hub DFW Carrier American Aircraft ERJ-145 Weekly Departures 36 Weekly Seats 1,800

Connecting Destinations 186
Source: Diio Mi, July 2013 This section contains: Description of existing air service, a synopsis of historical air service, and a description of air service development efforts.



### LAW suffers from very

limited air service. Only one carrier serves

the market, American Airlines (operated by

American Eagle).Application Under the Small Communi ty Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service – Existing and Historical 

### 7

Over the past 10 years, air service at LAW has experienced substantial changes
in terms of traffic levels. Seats and de partures peaked in 2008/2009 when Delta operated nonstop service to Atlanta. Since then, departures decreased by 32 percent while seats dropped 27 per cent and passengers declined 22 Load factors hit an all-time low in 2010 at just 46 percent. The load percent. factor rebounded in 2012 reaching the mid-60s for the first time since 2008.

In 2012 outbound passengers decreased 14 percent year-over-year and year-todate through June 2013 are down 11 perce nt. That is the result of American replacing the 64-seat ATR-72 turboprop aircraft with the ERJ-145 regional jet
with 50 seats. In 2012 American also used the 44-seat ERJ-140 and 37-seat ERJ-135 on the LAW-DFW route. Deploying aircraft with smaller capacity resulted in much fewer seats being offered, and consequently in fewer passengers on the route. The number of departures decreased in 2012 as well.

Exhibit 3.1 shows the trend in annual departures and outbound seats by quarter for the 12 months ended (through the first quarter 2013). As of the first quarter 2013 LAW’s total annual departures have declined by 32 percent from their peak in the third quarter 2008 (from 2,679 to 1,830 departures). Outbound seats decreased by 40 percent from their fourth quarter 2010 peak (from 131,371 to 78,732 seats per year). TABLE 3.2 HISTORICAL SERVICE BY DESTINATION AND AIRLINE (NON-DIRECTIONAL)

DESTINATION AIRLINE INDICATOR CALENDAR YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Atlanta, GA (ATL) Delta Dept 540 134 Seats 26,975 6,675 Onboards 17,221 3,574

LF % 64 54

Dallas, TX

(DFW) American Departures 2,092 2,074 2,228 2,097 2,211 2,134 1,691 2,003 1,661 1,818 Seats 71,128 70,499 75,735 71,313 76,856 85,283 107,733 131,371108,925 82,399 Onboards 38,843 42,384 44,001 46,580 50,088 50,560 58,295 60,307 60,913 52,615

LF % 55 60 58 65 65 59 54 46 56 64 Total Departures 2,092 2,074 2,228 2,097 2,211 2,674 1,824 2,003 1,661 1,818 Total Seats 71,128 70,499 75,735 71,313 76,856 112,258 114,408 131,371 108,925 82,399 Total Passengers 38,843 42,384 44,001 46,580 50,088 67,781 61,869 60,307 60,913 52,615

Load Factor % 55 60 58 65 65 62 54 46 56 64 Source: Diio Mi

40,000 60,000 80,000 100,000 120,000 140,000

1,000 1,500 2,000 2,500 3,000 3,5002004200520062007200820092010201120122013SeatsDepartures

12-months ended Departures Seats EXHIBIT 3.1 DEPARTURES AND SEATS

Source: Diio Mi T-100Application Under the Small Communi ty Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service – Existing and Historical 

### 8

Extenuating Factors That Have Affected Air Service

Two primary factors have affected LAW’s air service; its proximity to DFW and the availability of low-fare Southwest Airlines’ service at OKC. Due to its proximity to the Dallas/Fort Worth area, air service has naturally been skewed toward service to DFW. American Eagle and Delta Air Lines have previously provided competing service to their DFW hubs, but Delta discontinued its service when it significantly down-sized at DFW.

In addition to the large shadow cast by American’s DFW hub, the distance to other major hubs such as Chicago, Denver, Detroit, Atlanta, and Phoenix has been a deterrent to other carriers’ potential market entry. The market’s need for frequency and the approximate 160-mile segment length to DFW have combined to mandate the use of smaller regiona l jet equipment for economic reasons.
Distances to other hubs remain a factor.



### Previous Air Service Development Efforts

Over the past few years, the Lawton Metropolitan Area Airport Authority has been active in air service development efforts. In 2010 the Airport Authority commission a study to update LAW’s true market estimate (i.e. quantify diversion and identify top markets from the catchment area). Subsequently, airfare monitoring was conducted to determine if airfare disparities were causing the high diversion of air travelers. In 2012, the Airport Authority attended Network USA and met with multiple airlines to discuss new air service. Most recently, with declining performance on the existing American-DFW service, the Authority and public-private partnership has focused on supporting and rebuilding existing service which was the impetus behind this SCASDP grant application.

TABLE 3.3 PAST AIR SERVICE DEVELOPMENT EFFORTS YEAR INITIATIVE RESULT

2010 Community meeting regarding air service Completed Retention/Diversion Study Completed 2011 Airfare monitoring Completed 2012 Network USA (Met with multiple airlines) Completed 2013 Submitted SCASDP proposal Pending 

### Two primary factors have affected LAW’s air service; its proximity to DFW andthe availability of lowfare Southwest Airlines’ service at OKC.Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service Needs and Deficiencies 

### 9



# Section 4. Air Service Needs and Deficiencies

he Air Service Needs and Deficiencies section identifies the impetus behind this SCASDP grant application. This section demonstrates the critical need for the Lawton community to take action to preserve the highly valued air service at LAW.



### Underserved Market

The Lawton Metropolitan Statistical Area (MSA) has a population approaching 130,000 residents and is underserved by almost any measurement. Since MSAs are more readily comparable than catchment areas, Table 4.1 adds perspective to the degree the area is underserved. Among several markets similar in their population size to the Lawton MSA, only Morgantown, WV and Altoona, PA (both Essential Air Service markets) had sign ificantly fewer seats and only four markets (out of 18 shown) had only one de stination served by one carrier, as is
the case with LAW. Based on this benchm arking, a market the size of Lawton should have significantly more air service and is in need of retaining its existing service.

TABLE 4.1 AIR SERVICE COMPARISON

MSA POPULATION (000S) # OF CARRIERS # OF DESTINATIONS FLIGHTS PER WEEK SEATS PER WEEK Grand Junction, CO 159.03 5 7 112 6,561 State College, PA 155.1 3 3 90 3,759 Bangor, ME 154.94 3 6 113 7,378 St. George, UT 152.34 2 2 34 1,700

Flagstaff, AZ 142.74 1 1 39 1,950 Idaho Falls, ID 138.51 3 6 77 5,029 Wausau, WI 137.68 3 3 66 3,300 Manhattan, KS 132.6 1 2 35 1,708 Morgantown, WV 132.57 1 2 24 816

Rapid City, SD 130.01 4 8 151 9,626 Lawton, OK 126.81 1 1 36 1,800 Altoona, PA 126.64 1 2 18 612 Salisbury, MD 126.51 1 2 41 1,699 Brunswick, GA 115.2 1 1 21 1,050 San Angelo, TX 114.29 1 1 35 1,714 Wenatchee, WA 113.71 1 1 20 1,520

Missoula, MT 113.07 4 12 133 9,956 Bismarck, ND 112.63 4 4 86 5,474 Source: Diio Mi July 2013 schedul e; Woods & Poole Economics, Inc.

Exhibit 4.1 , next page, further shows that the LAW market is underserved. With only 27 percent of the LAW catchment area using the local airport, it is obvious
that fare and/or service issues exist. The availability of lower fares at OKC is a 

# T This section contains: Description of the Lawton community’s air service
needs and deficiencies.Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service Needs and Deficiencies 

### 10

significant incentive for potential LAW passengers to drive to OKC. OKC offers more service options, while LAW offers only one direct nonstop destination, DFW. While OKC is classified as a small-hub airport, LAW catchment area travelers still make the 2.5 plus hour roundtrip drive to access air service. More concerning is the 29 percent of travelers that choose to drive over six hours roundtrip to access service at DFW. While American offers flights to DFW from LAW, passengers drive to DFW from LAW instead of flying because of high connecting fares. It is often less expensive to drive over 200 miles one-way to DFW and take a nonstop flight to their final destination than to fly a connecting flight from LAW via DFW.



### Declining Air Service

From 2003 to 2006 air service was relatively steady at LAW with an average of 42 flights per week generally with 30- seat aircraft. Service peaked in 2008/2009
when both American and Delta served the market and American upgraded to larger 64-seat ATR aircraft. While the la rger aircraft provided more capacity per trip, ridership did not respond and drove the reduction in frequency. Where LAW once had as many as nine daily roundtr ips and 2,090 weekly seats, LAW now has only five roundtrips per day (reducing to four on the weekends) and 1,750 weekly seats ( Table 4.2 ). The net impact from swit ching from 64-seat turboprop ATR service to 50-seat regional jet service is that airline operating costs have increased but ridership has not, a recipe for potential further service reductions if
that trend is not reversed.

TABLE 4.2 NONSTOP DAILY FLIGHTS CALENDAR YEAR AVG FLIGHTS PER DAY - JULY FLIGHTS/ WEEK SEATS/ WEEK SEATS/ DEPT MON TUE WED THU FRI SAT SUN 2003 6 6 6 6 7 5 6 42 1,428 34 2004 6 6 6 6 7 5 6 42 1,260 30 2005 6 6 6 6 6 6 6 42 1,260 30 2006 6 6 6 6 6 5 6 41 1,230 30 2007 7 7 7 7 7 5 7 47 1,606 34 2008 9 8 9 9 9 8 9 61 2,090 34 2009 5 5 5 5 5 4 5 34 2,176 64 2010 6 6 6 6 6 5 6 41 2,624 64 2011 5 5 5 5 5 4 4 33 2,145 65 2012 5 5 5 5 5 5 5 35 1,750 50
Source: Diio Mi

The reduced departures and seats have deter iorated the quality of air service provided at LAW. In a market with such limited air service, any reductions seriously impede the community’s access to the national air

. transportation system EXHIBIT 4.1 LAW CATCHMENT AREA AIRPORT USE

OKC 35%

DFW 29% LAW 27% Other 9%Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service Needs and Deficiencies 

### 11

LAW’s primary concern is ens uring American’s profitabilit y so that American does not continue to reduce service. Compared to markets American serves at DFW with 50-seat aircraft or smaller, LAW’s average load factor is significantly underperforming at 65 percent compared to an average for similar markets of 77 percent. This puts the LAW market at risk for further service reductions. This Strategic Plan is crafted to address that concern and begin the awareness process of the need to support larger regional jet aircraft in the long-term.



### High Airfares Continuing to Climb

LAW’s average airfares are among the highest in the country. In 2012 LAW’s domestic average fare of $269 ranked 21 st out of approximately 650 airports in the US. In the contiguous 48 states, LA W’s average fare ranked 14th highest. LAW’s average fare has experienced a nine percent increase since 2011, which represents one of the highest growth ra tes in the country. The national average domestic fare over the same period has increased by only four percent.

LAW has long suffered from high airfares. Table 4.3 illustrates that LAW’s domestic average fares are high compared to average fares at diversionary airports. The table also shows the excessive difference in fares compared to the Southwest Region and national averages. LAW’s fares are substantially higher than DFW or OKC, with fares 38 to 39 percent higher. Compared to the Southwest Region, LAW’s fares are 43 percent higher. LAW’s fares are 53 percent higher than the US national average domestic fare.

TABLE 4.3 COMPARISON OF DOMESTIC AVERAGE FARES

AIRPORT CALENDAR YEAR LAW % DIFF 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 LAW $200 $198 $204 $217 $224 $242 $241 $246 $248 $269 DFW $167 $158 $160 $171 $161 $178 $162 $180 $189 $195 38% OKC $130 $136 $139 $152 $154 $163 $160 $174 $190 $194 39% Wichita Falls, TX $214 $201 $195 $220 $218 $237 $227 $230 $251 $262 3% Southwest Region $137 $137 $140 $150 $149 $161 $150 $166 $180 $188 43%

United States $134 $131 $135 $147 $147 $157 $143 $157 $170 $176 53% Source: Diio Mi; Note: FAA Southwest region includes AR, LA, NM, OK, TXApplication Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAir Service Needs and Deficiencies 

### 12

To further demonstrate the higher than average fares, Table 4.4 shows LAW’s average fares for its top 10 markets com pared to DFW and OKC. It is clearly
visible that LAW’s fares are substantia lly higher than those of OKCs and DFWs. In some markets, the one-way fare difference exceeds $100.

TABLE 4.4 AVERAGE FARE COMPARISON

LAW TOP 10 MARKETS AVERAGE FARE $ LAW FARE VS. LAW DFW OKC DFW OKC San Antonio, TX 231 116 167 115 64

El Paso, TX 267 160 206 107 61 Baltimore, MD 268 206 181 62 87 Seattle, WA (SEA) 251 209 191 42 60 Washington, DC (DCA) 347 255 244 92 103

New York, NY (LGA) 206 265 216 (59) (10) Atlanta, GA 273 192 249 81 24 Orlando, FL (MCO) 227 170 195 57 32

Philadelphia, PA 275 218 206 57 69 Phoenix, AZ (PHX) 234 175 160 59 74 All domestic markets 269 195 194 74 75 Source: Diio MiApplication Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityStrategic Plan 

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# Section 5. Strategic Plan

his Strategic Plan section provides a de scription of the goals of the project and the plan to support those goals. This section also provides a description of the legal sponsor responsible for administering the program and the public-private partnership that has been formed to actively participate in implementing the proposed project. A detailed description of the funding necessary for implementation of the Stra tegic Plan, including federal and nonfederal contributions, is also included in this section.



### Project Goals

The overall goal of the Strategic Plan proposed by LAW is to maintain and improve performance of existing servic e to prevent service reductions or discontinuation. Maintaining service from LAW to American’s DFW hub is the top priority of the community. Increased ridership is critical for maintaining and securing service at LAW and decreasing passenger diversion especially in light of industry trends indicating that only small communities with the ability to support larger regional jets will maintain air service in the longer term .



### Public-Private Partnership

The Lawton Metropolitan Area Airport Aut hority is the sponsor of LAW. For the purpose of this application, the Lawton Metropolitan Area Airport Authority in conjunction with the Comanche County Industrial Development Authority, the
Oklahoma Aeronautics Commission and the Lawton Fort Sill Chamber of Commerce have formed a public-private partnership. Collectively, this partnership is committed to completing the Strategic Plan outlined herein. All partners in the public-private partnership wi ll be fully involved in the execution of the Strategic Plan ( Table 5.1 ). As the airport sponsor, the Lawton Metropolitan Area Airport Authority will execute all federal grant offers and process all associated reimbursement requests and repo rting requirements. Lawton Fort Sill Chamber of Commerce in coordination with the Comanche County Industrial Development Authority and Oklahoma Aeronautics Commission will develop and implement the marketing program.



### Proposed Plan

To accomplish the goals of this SCASDP grant application, it is necessary to promote the value of flying locally instead of driving to nearby larger airports. 

# T

TABLE 5.1 PUBLIC-PRIVATE PARTNERSPUBLICPRIVATE PARTNER ROLE Public:

Lawton Metropolitan Area Airport Authority/LAW Grant and marketing program

administration; Strategic Plan

monitoring Comanche

County Industrial Development

Authority Assistance with marketing campaign

Oklahoma Aeronautics Commission Assistance with marketing campaign Private:

Lawton Fort Sill Chamber of Commerce Marketing campaign development and implementation This section contains:



###  A Strategic Plan for

maintaining and improving LAW’s air
service



###  Description of the public-private partnership



###  Designation of a legal

sponsor



###  Necessary funding for implementation



###  New project and goals as previous grant recipientApplication Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityStrategic Plan 

### 14

Funding an aggressive service awareness campaign will accomplish the project goals by: 1. Educating the public on the benef its of local air service and singleconnect markets. 2. Improve awareness of the existing flight schedule which will improve the performance of the flights and reduce the need to use alternate airports.

To ensure sustainability and improve ridership, an aggressive marketing plan is needed. The $360,600 marketing campaign includes:

 A multi-media advertising campaign

 Presentations to business groups, civic organizations and Chamber of
Commerce events

 Website and e-mail promotions

In the Lawton market it will be ess ential to continue creating service awareness in the community and modify existing travel habits due to historically deficient schedules and high airfares. A lack of air service awareness can lead to
continued diversion of travelers to di stant airports and subsequent service
reductions at LAW. Most air carriers do not have the budget or staff to create and implement air service awareness marketing campaigns in small communities like Lawton. The Strategic Plan proposes to use a comprehensive air service retention marketing campaign to promot e ridership on existing DFW hub service. The detailed marketing campaign is provided below.



### Marketing Goals

Local travel habits represent a barrier that limits the success of service in LAW
and needs to be overcome. Consumer dissatisfaction with current air service (especially in terms of comparatively high fares) has built an ingrained reluctance toward using LAW. A large percentage of catchment area air travelers (more than 70 percent) use an airport other than LAW.

In the short term, the goal is to contin ue creating service awareness, promote the direct and indirect benefits of flying local, and change existing travel habits. To quantify the marketing campaign’s impact, service awareness will be measured by enplanements with the goal to increase enplanements to a level acceptable by American. To achieve a load factor of at least 77 percent, the average DFW performance for markets served with 50-seat aircraft or smaller, a minimum additional 9,200 annual passengers are needed. This equates to 25 passengers daily each way or five passengers per flight.



### Target Audience

The target audience for the marketing campaign will be travelers who would benefit from using LAW. Primarily sout hwest Oklahoma business and leisure air 

### To ensure sustainability and improve ridership, an aggressive marketing plan is needed.Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityStrategic Plan 

### 15

travelers who reside in the LAW catchment area ( Exhibit 2.1 , page 3) will be targeted. Marketing to travelers visiting t he catchment area is a secondary target.



### Promotion Campaign

The promotion campaign will raise awarenes s of the service available at LAW, and communicate the benefits of using the lo cal airport for travel. The promotion campaign is designed around media advertising, direct marketing, and public relations.

MEDIA ADVERTISING

Advertising is a key part of marketing any service industry. The advertising program for LAW will be highly target ed, and will communicate the benefits of using local air service. An advertising campaign will be developed to reach business and leisure travelers with key messages. The campaign will have several components and development will include:

 Creation of a tagline or slogan and lo go that convey the most important message(s) for the target audiences

 Development of ad messages and concepts

 Production of ads designed to incorporate into print, radio, and television advertising by the marketing partners

Advertising funding is earmarked for regional advertising campaigns, including newspapers, television, radio, and Internet advertising. Appropriate publications/magazines by airlines with codeshare agreements with American Airlines will also be targeted. Some of these may be co-sponsored by American.

 – At least one commercial will be produced and aired on Television

television stations in the catchment area. The commercial will be used to convey the location and convenience of LAW.

 – Newspaper ads will be produced and placed in Newspaper newspapers in the catchment area. The ads will focus on the marketing message and will target days of heaviest readership rates. Table 5.2 provides a list of regional newspapers where the ads may be placed.

 – Creative, informative, and enter taining ads will be developed Radio and aired on stations throughout t he LAW catchment area. To ensure
that the radio ads reach a vast and demographically diverse listening audience, they will be aired on a wide variety of stations. Table 5.3 provides a partial list of regional radio stations.

 – Roadside billboard advertising may be implemented. The Billboards

content on the billboards will be c lear and specific. Since most of the travelers that divert to a competing airport for air travel use OKC, the billboard advertising will focus on the interstates connecting the catchment area with Oklahoma City. NEWSPAPERS RADIO STATIONS The Lawton Constitution KMGZ 95.3 The Fort Sill C annoneer KQTZ 105.9 The Cameron Collegian KJMZ 98.1 The Altus Times KZCD 94.1 The Duncan Banner KLAW 101.3 The Walters Herald KXCA 1380 The Cache Times KRKZ 93.5 The Comanche County Chronicle KCCU 89.3

The Frederick Press KKEN 102.3 The Daily Ardmoreite KBZQ 99.5 KFXI 92.1 KVRW 107.3 KACO 98.5 KICM 97.7 KVSO 1240 TABLE 5.2 REGIONAL NEWSPAPER/RADIO STATIONSApplication Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityStrategic Plan 

### 16

PROMOTION ACTIVITIES

Promotion efforts will actively target business travelers in the airport catchment area. Leisure travelers will be passively pursued. Active promotion activities will include a direct mail and e-mail campaign to business leaders in the community. LAW will also be promoted at meetin gs of the Chamber of Commerce, Local Development Corporation, and local serv ice organizations. Passive promotion will take place in newspaper and television news editorials.

The Lawton Fort Sill Chamber of Commerce has online and/or printed newsletters that go to the business leaders in each community, a key target audience for air service, making these publications an effective means of communicating about air service in Lawton. The Chamber has also agreed to
feature information and news about LAW ai r service on their website that they maintain to promote their communities. The Chamber of Commerce will launch a targeted direct mail campaign to provide information and news about the air service to those who make the travel decisions for businesses and organizations
in the service area.

The Chamber of Commerce will also prov ide promotional materials to community partners and to businesses with headquarters and/or facilities in other regions, to educate and inform potential inbound trav elers from these businesses about the availability of air service at LAW. A speakers’ bureau will be established to give presentations and provide informational materials at service club meetings and with key area businesses and organizations, especially as the air service improvements are launched.



### Marketing Budget

It is anticipated that a $360,600 cash and in-kind marketing and monitoring budget will be needed for a 12- to 18-month service awareness campaign. Cash and in-kind contributions will be used to
create the different forms of adv ertising, purchase ads, and raise awareness of air service in the Lawton market. The marketing program will include development and placement of ads through the
various media outlets.

Of the advertising program funds, an estimated 45 percent of the budget will be spent on television advertising, 37 percent on print media, 12 percent on radio and t he remaining six percent on direct marketing ( Exhibit 5.1 ). Other marketing services will be provided by the community partnership and include e-mail and website promotion.Television 45%

Print 37% Radio 12% DirectMarketing 6% EXHIBIT 5.1 DIVISION OF ADVERTISING FUNDSApplication Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityStrategic Plan 

### 17

Timeline

To evaluate the success of marketing effo rts, passenger enplanements will be reviewed monthly. Since the goals are to improve existing service performance and increase use of the local airport, onboard passenger loads will be used as an indicator of success. Marketing efforts will begin as soon as possible after award of the SCASDP grant. At the end of each three-month period, enplanements will be reviewed by the public-private part nership to determine the success of the marketing efforts and, if nec essary, make adjustments.



### Strategic Plan Funding

Lawton Metropolitan Area Airport Aut hority is seeking $195,000 of US DOT funding to be used as part of this Strat egic Plan. The community will participate in the program by funding a portion of the marketing campaign (cash and inkind), performance monitoring (in-kind), and program administration (in-kind).
Table 5.3 provides the Strategic Plan budget broken down by element and sources of funding. The community will fund 16 percent of the cash requirement of the program. Comanche County Industr ial Development Authority and the Oklahoma Aeronautics Commission are providing the non-airport cash fundingwith Design Works and the Lawton Fort Sill Chamber of Commerce providing inkind contributions.

TABLE 5.3 STRATEGIC PLAN BUDGET

DESCRIPTION FUNDING SOURCE

TOTAL US DOT AIRPORT NON-AIRPORT CASH CASH IN-KIND CASH IN-KIND Marketing campaign $195,000 $15,000 $40,600 $110,000 $360,600 Strategic plan staffing/monitoring $10,000 $10,000 $20,000
Total $195,000 $15,000 $10,000 $40,600 $120,000 $380,600 Percent of total project 51% 4% 3% 11% 32% 100% Percent of total cash contribution 78% 6% N/A 16% N/A 100%



### Project Continuation and Sustainability

A new downturn in the economy could lead to a lower than estimated load factor.
If at the end of the second six months of service (mont hs seven through 12) the service does not attain a minimum of a 75 percent average load factor, LAW with the support of the community will extend the marketing campaign for an
additional six months and will commit add itional funding of $20,000 (cash and inkind). The public-private partnership under stands the importance of this project
and will work to see it succeed.

Effective monitoring of the service will be critical to gauging its success and assessing its weakness. To be of aware of service performance, the publicprivate partnership will use a consultant to monitor LAW’s air service. After the SCASDP is awarded, the consultant will meet with public-private partnershipApplication Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityStrategic Plan 

### 18

leaders to heighten awareness of the service, describe the air service development program, and educate on the importance of protecting local air service. Once the Strategic Plan is in place, the consultant will analyze fare relationships, monitor load factors, and help the sponsor gauge the success of the program.



### Previous Grant Recipient - New Project and Goals

In 2005 the US DOT awarded the Lawton Metropolitan Area Airport Authority a SCASDP grant. The 2005 grant included the following project goals:

 Improve air service to a broad section of the traveling community

 Mitigate the need to drive long distances to access air service

 Provide better access to the national air transportation system for the
Lawton area

The primary focus of the 2005 grant was on attracting Delta Air Lines service to Atlanta, GA: a new carrier and a new de stination. The goals and focus of this 2013 grant application are different. This application is focused on maintaining existing air service through a comprehensive marketing campaign, not adding new air service. This application qualifies as a new project with new goals and meets the requirements of the SCASDP. 

### This application qualifies as a new project with new goals and meets the requirements of the SCASDP.Application Under the Small Communi ty Air Service Development Program Lawton Metropolitan Area Airport AuthoritySchedule and Monitoring 

### 19



# Section 6. Schedule and Monitoring

he public-private partnership has developed a realistic timetable for implementation of the grant project. This section provides the schedule for implementation of the Stra tegic Plan. A monitoring program is also provided to track the progress of the grant project.



### Schedule

The public-private partnership will devel op the marketing campaign immediately following SCASDP grant award, anticip ated in September 2013. The goal is to implement the marketing campaign no la ter than November 1, 2013. Timing of the marketing campaign is dependent on St rategic Plan funding and grant award. It is anticipated that the marketing camp aign will continue for 12 to 18 months.



### Monitoring Program

The monitoring program includes servic e performance tracking, assessing the effectiveness of the marketing campaign, and determining its impact on
retention/diversion at LAW. The follow ing will be completed to monitor the Strategic Plan:



### Monthly

 A review of aircraft departures, enplaned passengers, and load factors will be completed monthly.



### Quarterly

 A comparison of average historical airfares will be made to prior quarters using US DOT airline reported data.

 Published airfares will be tracked to the top 20 destinations and compared to the surrounding drive diversion airport’s fares.

 American Airlines will be contacted to ensure expectations for service are being met.



### Annual

 Passenger retention/diversion inf ormation will be updated after the
service has been in the market at least 12 months to determine the impact the service has had on retention/diversion at LAW. 

# T This section contains: How the community will monitor the progress of the project and the schedule for timely completion of the project.



### The grant award date is the critical date for the rest of the Strategic Plan.Application Under the Small Community Air Service Development Program Lawton Metropolitan Area Airport AuthorityAppendix A. Letters of Support 

# Appendix A. Letters of Support

ppendix A includes letters of support for Lawton Metropolitan Area Airport Authority’s SCASDP grant application. Support letters were submitted by public-private partners and government entities. The letters of support are included on the following pages of this Appendix A and are listed below.



### Public-Private Partnership Comanche County Industrial Development Authority
Lawton Fort Sill Chamber of Commerce Lawton Metropolitan Area Airport Authority (refer to cover letter)
Oklahoma Aeronautics Commission



### Government City of Lawton
State of Oklahoma 

# A This section contains: Support letters frommembers of the publicprivate partnership and government entities.