Northeast Florida Regional Airport, St. Augustine, Florida

Proposal under the Small Community Air Service Development Program

Docket: DOT-OST-2010-0124

Before the Office of the Secretary of Transportation

U.S. Department of Transportation

A Proposal to Support New Air Service Development with Marketing Funding

Sponsor: Northeast Florida Regional Airport at St. Augustine

St. Augustine, Florida

Edward R. Wuellner, AAE – Executive Director

Congressional Code: FL-07

Dun & Bradstreet Number: 14-664-2389

August 27, 2010
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Table of Contents

Description Page number

Table of Contents 2

Airport Letter 3

Summary Information (Appendix B) 4

Introduction and Proposal Objectives 7

NE Florida and St. Augustine Location and Population 9

The Best Airport location to Serve the Region 12

NE Florida Lodging Infrastructure 13

St. Augustine and NE Florida Area Profile 14

NE Florida Air Service and Traffic 22

The First Air Service at the NE Florida Regional Airport 26

NE Florida Average Fares 27

Alternative Airports and Traffic Leakage 29

Air Service Needs and Deficiencies 30

Local Air Service Development Efforts 30

Detailed Explanation of Proposal 32

A Strategic Plan for Success 35

Public/Private Partnership 35

Grand Funding 36

Target Audience & Marketing Plan 37

Grant Timeline, Milestones and Monitoring 38

Performance Measurements 39

Financial Controls and Program Oversight 39

Return on Investment, Use of Funds & Route Self Sufficiency 40

Alternative Timeline & Plan and Legal Sponsor 41

Airport Information 42

NE Florida Regional Facilities & Handling Package 43

Summary 44
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Introductory Letter
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Summary Information

Small Community Air Service Development Program

Docket DOT-OST-2010-0124

A. Applicant Information

 Not a Consortium Community now receives EAS subsidy

 Interstate Consortium Intrastate Consortium

 Community previously received a Small Community Grant

 If previous recipient, Date of Grant: ___________

Expiration date of Grant: ___________

B. Public/Private Partnership

Public:

1. Northeast Florida Regional Airport, St. Augustine

2. St. Augustine – St Johns County Airport Authority

3. City of St. Augustine

4. St. Johns County

Private:

 

1. Galaxy Aviation

2. St. Augustine Chamber of Commerce

3. St. Augustine Economic Development Council

4. Ponte Vedra & Beaches Visitors and Convention Bureau
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C. Project Proposal

 Marketing Upgrade Aircraft New Route

 Personnel Increased Frequency Low Fare Service

 Travel Bank Service Restoration Subsidy

 Surface Transportation Regional Service Other (Specify)

 Revenue Guarantee Launch New Carrier

 Start Up Cost Offset First Competitive Service

 Study Secure Additional Carrier

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach

 Localizer Other:

E. Project Cost

1. Federal amount requested: $ 100,000

2. State cash financial contribution: $ 0

3. Local cash financial contribution: $ 25,000

3a. Airport cash funds: $ 25,000

3b. Non-Airport cash funds: $ 0

3c. Total local cash funds: $ 25,000

4. TOTAL CASH FUNDING: $ 125,000

5. Local funds contributed from already existing

Programs of projects included in line 3c: $ 0

6. Local funds contributed from new commitments

Or new resources included in line 3c: $ 25,000

7. Airport In-Kind contribution: $ 167,535 estimated savings per daily 

turn per year

Description: Airport fee waivers and reduced rate ground handling

8. Other In-Kind contribution: $ 0

9. TOTAL IN-KIND CONTRIBUTION: $ 167,535 per new daily flight

10. TOTAL PROJECT COST: $ 292,535
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F. Enplanements at Airport

2000: 0

2001: 0

2002: 0

2003: 0

2004: 0

2005: 0

2006: 0

2007: 21,251 (SkyBus)

2008: 32,889 (SkyBus)

2009: 0

G. Is Application Subject to Review by State Under Executive Order 12372 

Process?

 This application was made available to the State on ______.

 Program is subject to review, but has not been selected by the State.

 Program is not covered.

H. Is Applicant Delinquent on any Federal Debt?

 No
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Introduction and Proposal Objectives

The Northeast Florida Regional Airport at St. Augustine, Florida is actively recruiting various airlines 

to provide air service at the Airport.

The Northeast Florida Regional Airport facility is ideally located for airlines to access the vast 

tourism and leisure time activities of northeast Florida. The Airport is located just south of 

Jacksonville and just north of Daytona Beach along Florida Highway 1 and only five miles from 

Interstate I-95. Its location is almost right on top of the center of population distribution for all of 

northeast Florida and it is closer to more hotels, motels and leisure activities than either 

Jacksonville International or Daytona Beach.

The Airport is also an ultra low-cost facility, having in place the infrastructure to handle several 

hundred thousand annual passengers at costs well below Jacksonville and Daytona Beach.

In short, if the Airline Industry were to first arrive at northeast Florida today, instead of decades 

ago, most air service would logically be placed at Northeast Florida Regional, not Jacksonville 

International or Daytona Beach.

The Northeast Florida Regional Airport, supported by the St. Augustine – St Johns County Airport 

Authority, is working hard to bring low fare air service to the Airport. Low fare air service at 

Northeast Florida Regional will have a significant positive economic impact on tourism in the 

region. Right now other regions of Florida enjoy markedly superior air service and lower fares 

than are offered in northeast Florida. This means that tourists intent on a trip to Florida are more

than likely to fly to central Florida (Orlando), southeast Florida (Miami, Fort Lauderdale or West 

Palm Beach) or the west coast (Tampa, Sarasota or Fort Myers) than they are to northeast 

Florida, simply due to lower fares and more flights.

A key element of recruiting low-cost carriers to serve Northeast Florida Regional is the availability 

of significant marketing funding, for use both in northeast Florida and in northern tier and mid 

Atlantic markets that generate significant Florida tourism visits.
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Therefore, in this Small Community Air Service Development Grant application the Northeast 

Florida Regional Airport requests $100,000 in Grant funding to support new low-cost air service 

expected to start at the airport in 2011.

The Airport and its regional and community partners will match the $100,000 Grant with $25,000 

in cash funding, for a total Grant funding of $125,000.

The Airport and its partners also have an ultra low-cost ground handling and terminal facility 

package to offer to prospective airlines. Depending on the size of aircraft and frequency of 

operation, this ground facilities package can be worth hundreds of thousands of dollars in 

savings compared to landing and turning an aircraft at any other airport in northeast Florida.

This proposal document will provide detailed information on the Airport’s prime location, 

outstanding low-cost facility, ambitious marketing and promotional support plans, and 

comprehensive ground facilities package. All of these elements combined will make new lowcost air service at Northeast Florida Regional a success and a significant positive economic 

contributor to the region.

Objectives for Proposal:

• Bring low-cost air service to the Northeast Florida Regional Airport

• Lower average airfares for travel to northeast Florida

• Benefit northeast Florida tourism by bringing low fare air service to region that is 

comparable to existing low fare service at Orlando, southeast and southwest Florida.

Means to Achieve Objectives:

• Use SCASD Grant and local match to provide a large pool of marketing and 

promotional funding for new air service

• Compliment marketing funding with a comprehensive ground facilities and handling 

package that will provide significant cost savings for prospective airlines

Course of Action to Support Means:

• Continue aggressive recruiting of new low fare air service

• Provide an aggressive multi level marketing program to support the new flights
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Northeast Florida & St. Augustine: Location & Population

The Florida State Tourism Board defines northeast Florida as the region from the Georgia state 

line along the Atlantic Ocean and extending some forty miles inland and running south to the 

northern fringe of the Daytona Beach area. The region encompasses six counties and has an 

estimated population of 1,439,421.

Two major interstate highways meet just north of St. Augustine. Interstate 10 ends its long run from 

California at Jacksonville while Interstate 95 runs north south on its path from Miami to Maine.

Three counties make up the ocean side of northeast Florida. Duval County is essentially 

Jacksonville, a city of over 800,000 (proper) and an MSA of over 1.3 million in population. 

Jacksonville is the largest city in Florida in terms of both population and square miles. It is also the 

13th largest city in the United States.

Northeast Florida
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St Johns and Flagler counties extend south of Duval County. The Northeast Florida Regional 

Airport is in St Johns County. Tourism and ocean side leisure activities such as boating or fishing 

are major activities in this area. St. Augustine was the first European settlement in the Americas in 

1565 and the remains of the settlement are a major historical site and tourist attraction. 

The “inland” counties of Nassau, Clay and Putnam are mostly rural or suburban in nature. There is 

a mix of agriculture or tree farming and suburbs extending out from the Jacksonville metro area.

The entire six county area has seen significant growth in population since 2000 with each county 

recording an increase, notably Flagler (63%) and St Johns (47%). Overall the region’s population 

grew 16% in nine years.

Most of the population is clustered around Jacksonville and then south near Interstate 95 and 

Florida Highway 1 and the Atlantic Ocean beaches.

County 2000 2009 Change

Clay 166,201 182,023 9.5%

Duval 778,879 850,962 9.3%

Flagler 49,852 81,240 63.0%

Nassau 57,663 69,835 21.1%

Putnam 65,304 73,821 13.0%

St. Johns 123,135 181,540 47.4%

Total 1,241,034 1,439,421 16.0%

NE FLORIDA COUNTY POPULATION

Population
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The geographic center of the six county area’s population is actually south of downtown 

Jacksonville and about equal distant from Northeast Florida Regional Airport and Jacksonville 

International Airport. The chart below is a zoom in on the previous chart to show just the area 

between Northeast Florida Region Airport and Jacksonville International Airport.

The over 1.4 million residents of northeast Florida have two air service choices, Jacksonville 

International to the north or the relatively limited services offered by a few airlines at Daytona 

Beach to the south.

Northeast Florida lacks the reputation as a tourism Mecca that more famous areas like Orlando 

or Fort Lauderdale have, despite having fabulous beaches, incredible sights and all the activities 

typical of a Florida vacation. The region is the major Florida tourism area that no one thinks of. 

One of the reasons no one thinks of it is a relative lack of low fare air service access for tourists to 

use.

Center of 

Population
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The Best Airport Location to Serve the Region

The Northeast Florida Regional Airport at St. Augustine is perfectly located and has in place the 

low-cost infrastructure needed to draw low fare air service to Northeast Florida.

Included within a 60 minute drive of Northeast Florida Regional Airport is all of Jacksonville, the 

northern fringe of Daytona Beach, and a population of 1.45 million. This compares with a 

population within 60 minutes from the Jacksonville International Airport of 1.28 million. So the 

Northeast Florida Regional facility has over 13% more Florida residents within an hour’s drive.

This same superior position applies with lodging infrastructure. Northeast Florida Regional is within 

an hour’s drive of 122,326 lodging units while Jacksonville International is within an hour of 

119.698 units, a difference of 2.2%. 
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Northeast Florida Lodging Infrastructure

There are approximately 1.6 million lodging units in the state of Florida. Over 177,000 of them 

(11%) are in northeast Florida. 

The northeast region also has the highest average number of lodging units per Lodging 

Establishment or facility. 

Total # Share of Average Units

Region Rental Units State Per Property

Northeast 177,207 11% 72

East 223,215 14% 45

Southeast 208,351 13% 30

Central 412,520 26% 40

Southwest 108,639 7% 50

West 267,479 17% 38

West Central 101,230 6% 25

Northwest 117,138 7% 44

State Total 1,615,779 100% 41

FLORIDA HOTEL/MOTEL PROPERTIES BY REGION
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St. Augustine and Northeast Florida Area Profile

The City of St. Augustine

The nation's oldest city is a wonderful place to live and 

boasts of having some of the most beautiful real estate in 

the world. While expansion and progress happen around 

the city, the city itself is largely unchanged, preserving 

the rich history and legacies of the Spanish, French, and 

English, making this the most unique small town in 

America. 

Beautiful beaches, blue skies, fine dining and unique 

shopping set in a romantic Spanish influenced 

atmosphere await exploration by visitors and residents 

alike. The St. Augustine area is known for rich history and 

friendly people, as well as a great place to raise a family.

Great boating, fishing, sailing & kayaking are available 

year round. Every option exists, from the salty Atlantic Ocean and Intra-Coastal Waterway rich 

with creeks and flats, to the fresh water of the St. Johns River on the west side of the county.

St. Augustine also has communities with special venues just for Golf, such as World Golf Village 

with the Hall of Fame. Tennis and equestrian pursuits are also supported in many venues and 

communities.

Things to see and do here are just as varied.

Museums, art, history and culture are everywhere.

There are blocks of "pedestrian only" shopping, horse 

drawn carriage rides, pristine beaches and a historic 

charm steeped in tradition.
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Tourism in the St. Augustine Area

The city of St. Augustine has more than 50 attractions, historic sites, and points of interest; 

drawing more than 2 million visitors annually. 

Founded in 1565 by the Spanish, St. Augustine is a city of carefully preserved historic sites, 

attractions, and neighborhoods. The Spanish influence is seen in the architecture, street names, 

food, and art. Historic landmarks include the Castillo de San 

Marcos National Monument, the oldest stone fort in the United 

States; the Spanish Quarter Village, a living history museum 

which interprets life in colonial St. Augustine circa 1740; The 

Fountain of Youth Discovery Park, where it is said Ponce de 

Leon sought everlasting youth; and the Mission of Nombre de 

Dios, where Pedro Menendez de Aviles first set foot on Florida’s shore in 1565. 

Still other landmarks are the Ponce de Leon and Alcazar hotels, built by Standard Oil magnate 

Henry Flagler in the late 19th Century. Today these grand Victorian structures house Flagler 

College and the Lightner Museum, a Victorian collectibles museum. 

Planning for the future

In April 2010, St. Johns County commissioners laid out an action plan to guide the growth and 

development of tourism for the next several years. St. Johns "has 

authenticity in spades," he said, identifying historical, romance, golf, 

family, arts and culture and outdoor recreation as specific areas of 

interest for tourists. According to the report, a great untapped 

market in African-American and Hispanic tourism exists.

Citing the study as “a road map to St. Augustine's 450th [birthday celebration in 2015]," plans 

include improving Fort Mose’s visitor’s center; continuing public-private cooperation that brings 

in tourists while also benefiting locals; packaging room stays with, for example, amphitheater 

tickets, resulting in potentially longer vacations here and eliminating downtown ordinances that 

hamper the arts.

The study also cited lack of commercial air access to county as one of the area’s weaknesses.
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Golf

Golf is easily one of the most popular and economically beneficial attractions in St. John’s 

county. With over 50 courses in or near St. Augustine, golf is a vital part of the local economy. 

Golf enthusiasts come from around the world to play at the area’s world-courses. But they also 

come to watch the pros play in some of the nation’s major tournaments, increasing tourism to 

the area. The Player's Championship has been consistently hosted at Sawgrass in Ponte Vedra 

Beach, just north of St. Augustine, since 1977. The Ginn Championship at Hammock Beach (held 

each year from March 30th through April 5th) is also a short drive from St. Augustine in Palm 

Coast, Florida. 

The World Golf Foundation, located in St. Augustine, is a 

nonprofit organization that develops and supports initiatives 

that positively impact lives through the game of golf and its 

traditional values. It’s impressive World Golf Village, which 

opened in 1998, includes an IMAX theater and two golf 

courses featuring design collaborations by four World Golf Hall 

of Fame members. 

However, its sigmature landmark is the World Golf 

Museum. In this museum, visitors can have their

picture taken atop the famous Swilcan Burn Bridge 

at The Old Course at St. Andrews. Wander among 

golf's most important trophies. See what it's like to 

putt on an old-time putting green with a hickory 

club. Get up close and personal with some of the 

most prized possessions of many of the Hall's 

members in the Member Locker Room, which 

contains over 2,000 items.

The economic impact of this sport to the region is great. A 2006 study showed that the World 

Golf Village, the result of a public-private partnership, pumped in $2.46 billion to the economy of 

St. Johns county from 1995-2005. The study said that the World Golf Village had stimulated the 

growth of 34,000 jobs (full-time, part-time and seasonal), including 26,000 in St. Johns.
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Beaches

The St. Augustine beaches boast miles of luxurious sand with beautiful weather year-round. 

Barrier islands naturally create the island waterway and miles of gorgeous coastline with many 

public areas for beach recreation and relaxation.

Anastasia State Park welcomes visitors from all over the world to 

enjoy its beautiful beach. Anastasia Island has 4 miles of pristine 

beach, a tidal salt marsh, and maritime and upland hammock, as 

well as nature trails that wind through the dunes shaded by 

hammock trees. It is a protected bird sanctuary and consists of 

1,700-acres and five miles of beautiful, sandy beaches. It features swimming, lifeguards, a bath 

house, hiking, nature trails, a boat ramp, fishing, a volleyball court, beach equipment rentals 

such as umbrellas and beach chairs, canoes, nature trails, grills and picnic areas, concessions, a 

covered pavilion, gift shops, playgrounds, and camping.

Crescent Beach is a stretch of beach just south of the City of St. Augustin e Beach and North of 

Marineland. It is notable for its white sand beach and gentle dunes.

St. Augustine Beach is located on Anastasia Island where you can 

enjoy sandy beaches, the St. Johns County Pier, a playground, 

pavilion, fishing pier, volleyball courts, bait shops, fine restaurants, 

shopping and more. St. Augustine Beach receives an estimated 5 

million visitors per year.

Guana River State Park, located in nearly by Ponte Vedra is a 2,000 acre sanctuary for 

endangered species. Recreational activities are many and varied. It features two public beach 

access facilities, consisting of parking lots and associated dune crossover boardwalks, along a 

4.2 mile stretch of otherwise undeveloped beach on the Atlantic Ocean.

The serene Vilano Beach, is a local "best-kept secret" offering a 

wide variety of vacation rentals, lodging, waterfront restaurants, 

the Vilano Beach Fishing Pier, parasailing and Sea Doo rentals, 

and many parks. Visitors may even choose to charter a deep 

sea fishing boat or a sailboat.
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Old St. Augustine Village

An entire city block of history experience, Old St. Augustine 

Village is a coll ection of 10 authentic houses dating from 1790 

and their centuries-old courtyards and gardens. Historic sites 

and archaeological ruins on the property date to 1572 and 

include a Spanish Colonial defense line, remnants of a 16th 

century hospital and cemetery, and the site of St. Augustine’s 

earliest bridge. The Village features the historic houses, a

museum store, a host pavilion, a visitor’s center and 10 exhibition galleries on St. Augustine’s and 

the nation’s history. Inside Old St. Augustine Village, interpreters give history a voice and a story. 

Economic Impact and Importance of Tourism to Northeast Florida

According to a 2005 study “Tourism in Paradise: The Economic Impact of Florida Beaches” the 

northeast region of the state sees the following economic impact from tourism;

 Annually an estimated $1 billion in direct and $1 billion in indirect economic impact

 An estimated 11.2 million annual tourist visits

 An estimated $2.8 billion in tourist spending

 An estimated 79,000 jobs in the region directly or indirectly the result of tourism

Clearly a healthly flow of tourism into the northeast Florida region is essential to economic health 

and growth. Covenient and low-cost air service is a fundamental component of ensuring the 

region captures its fair share of Florida tourists and their leisure dollars. 
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Saint Augustine Economic Overview

As of 2010, St. Johns County's population is 184,345 people, which is remarkable because since 

2000, it has had a surging population growth of 49.85 percent. The median household income is 

$64,028 and the median home cost in St. Johns County is $209,480. Compared to the rest of the 

country, St. Johns County's cost of living is 5.90%, only slightly higher than the U.S. average.

The unemployment rate in St. Johns County is 9.10 percent (U.S. avg. is 10.20%). Future job 

growth over the next ten years is predicted to be 19.96%. Professions that will grow include: 

health services, education, and professional and business services. St. Johns County will see 

improvements in 2010 in personal income, retail sales and auto sales, according to a study by 

the University of Central Florida.

A snapshot of economic activity in St. Johns County by Florida Trend magazine said, "Economic 

development officials (in St. Johns) say they are focusing on the short-term. They are working to 

increase the inventory of 'shovel-ready' commercial and industrial sites for business prospects 

who want to move now -- not five years from now." And a number of economic studies say St. 

Johns may see faster growth than surrounding counties. "More businesses are looking to locate 

or expand here. We've noticed a significant uptick in the number of (businesses) that are looking 

to make decisions on expansion," said Nick Sacia, vice president of the Economic Development 

Council, “Prospects for relocations or expansions are up 40 to 50 percent.”

Employer # of Employees

St. Johns County School District 3,357 

Flagler Hospital 1,503 

St. Johns County 1,416 

US Army National Guard 1,300 

Ponte Vedra Inn & Club 950

Northrop Grumman 900

Florida School for the Deaf and the Blind 767

Tree of Life 636

PGA Tour/TPC 625

Marriott at Sawgrass 550 

Hydro Aluminum North America 500

Vicar's Landing 500 
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Select Company Profiles

Flagler Hospital

Since its founding in 1889, this private, not-for-profit facility has grown 

into a 316-bed, acute care center that is consistently recognized 

nationally for overall clinical excellence. The hospital, which 

employs 1,503 staff, has been ranked among the top 5% in the nation for clinical excellence for 

the past 6 consecutive years.

Northrop Grumman

Northrop Grumman Corporation is a leading global security 

company whose 120,000 employees provide innovative systems, 

products, and solutions in aerospace, electronics, information systems, shipbuilding and 

technical services to government and commercial customers worldwide. The St. Augustine 

manufacturing center is the production element for the company's Airborne Early Warning and 

Electronic Warfare Systems business unit. With headquarters in Los Angeles and national and 

global offices and manufacturing facilities, this is a company with significant travel needs.

Tree of Life

Headquartered in St. Augustine, Tree of Life partners with suppliers, manufacturers, 

and retailers around the world to bring customers a complete line of natural, 

organic, multicultural, specialty and gourmet foods, supplements, health and 

beauty Tree of Life products. They are part of the health and environmentallyconscious business arena and were one of the industry pioneers, helping usher in 

a new idea that started nearly 40 years ago - that healthier eating coupled with environmental 

responsibility can make the world a better place for us all. 

PGA Tour/TPC

Located in Ponte Vedra , Florida, The Tournament Players Club at 

Sawgrass is home to the annual Player’s Championship, professional 

golf’s richest tournament. Travel and Leisure Golf Magazine rated TPC-Sawgrass one of the 

Top Ten Best Golf Resorts in the World. Completed in 2007, TPC's new 77,000 square foot 

Mediterranean styled clubhouse opened to rave reviews. The club attracts members and nonmembers alike, as visitors come to tour the club house, shop at the pro shop or dine at the club 

without having to become a member. The club also operates a golf school, where golfers 

come from around the nation to improve their golf game at this top course.
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Higher Education

Flagler College 

Flagler College is an independent institution serving 

over 2,500 students in the historic, seaside city of St. 

Augustine, Florida. As the college marked its 40th 

anniversary in 2008, it celebrated a remarkable 

heritage and a nationally recognized reputation for offering a rich, personalized liberal arts 

education at a relatively low-cost. Flagler C ollege offers baccalaureate degrees in twenty-two 

majors and twenty-nine minors, in both liberal arts and pre-professional programs. 

Flagler College’s historic and picturesque campus is nestled in 

the heart of St. Augustine, the Nation’s Oldest City. Its main 

building is a National Historic Landmark. The campus has 

blended its new buildings, a Student Center and renovated art 

building, to fit in with its historic buildings.

The college engages in quite a bit of travel through its athletic program, which is part of the 

National Collegiate Athletic Association (NCAA) Division II; through its study abroad program 

and with faculty participating in research in many areas of the country and the world. 

Additionally, family and friends require a convenient way to visit students.

Military Presence 

St. Augustine is the state headquarters for the Florida National Guard. The 

Florida National Guard traces its heritage back to 1565, the year the Spanish 

founders of St. Augustine organized their first company of citizen-Soldiers. 

Florida’s militia has defended local communities for over 440 years. Consistent 

with Article I, Section 8 of the U.S. Constitution, Florida's Citizen-Soldiers and Airmen continue to 

serve in units from the Panhandle to the Keys. Today, Florida Guardsmen are involved in 

hundreds of community service projects across the state each day. Many serve in disaster relief 

operations, helping residents recover from natural disasters. Others train or serve in critical 

national defense positions throughout the nation and overseas deploying to Iraq and 

Afghanistan supporting operations in the war on terrorism. The Florida National Guard has been 

headquartered in St. Augustine since 1907 and has a membership of more than 9.900 National 

Guard personnel and more than 2,000 Air National Guardsmen. Additionally, there are nearly 

350 employees of the Florida Department of Military Affairs.
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Northeast Florida Air Service and Traffic

There are currently two airports in the northeast Florida region with scheduled air service; 

Jacksonville and Daytona Beach.

Jacksonville

Jacksonville International is classified as a medium hub by the FAA. It enplaned nearly 2.8 million 

passengers in 2009 and is served by eight airlines.

Jacksonville has nonstop service to 28 domestic cities. There are approximately 100 departures 

per day from the airport. About 30% of departures are performed with regional jet equipment.

Domestic Market 

Carrier Traffic Share Avg Fare

American 409,430 8.3% $161.76

jetBlue 243,480 4.9% $125.12

Continental 275,420 5.6% $157.78

Delta (Northwest) 1,411,440 28.5% $142.90

AirTran 312,150 6.3% $101.58

United 292,030 5.9% $160.94

USAirways 801,380 16.2% $147.82

Southwest 1,208,000 24.4% $109.70

TOTAL 4,953,330 100.0% $135.57

Jacksonville Domestic Traffic: 12 Months 3/31/2010
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Daytona Beach

The Daytona Beach Airport is a much smaller airport on the southern fringe of the northeast 

Florida region. Daytona Beach has two airlines; Delta and USAirways. Delta offers nonstop 

service to Atlanta and USAirways to Charlotte. The Airport enplaned 211,631 passengers in 2009. 

Daytona Beach air service varies greatly by season. However, on an annual average about six 

departures per day are scheduled to Atlanta and three per day to Charlotte. About 80% of total 

Daytona Beach flights are performed with regional jet equipment.

In summary

 Northeast Florida generated just over 3 million enplanements in 2009

 Service is provided by eight airlines to 28 cities, about 109 daily departures

 About 93% of traffic is generated at Jacksonville, the balance at Daytona Beach

 The average domestic one-way net fare paid in 2009 was $137 

Domestic Market 

Carrier Traffic Share Avg Fare

Delta (Northwest) 301,850 75.9% $139.93

USAirways 95,650 24.1% $156.13

TOTAL 397,500 100.0% $144.04

Daytona Beach Domestic Traffic: 12 Months 3/31/2010
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Northeast Florida Top Markets

Eight of northeast Florida’s top twenty markets are in the northeast United States. Four are in the 

Midwest, two each in the southeast and south central regions, three are in the far west and one 

is intra-state Florida.

All of the top twenty markets have nonstop service from Jacksonville. Daytona Beach has 

nonstop Atlanta service.

Jacksonville/Daytona Beach Top Twenty Domestic O&D Markets Year Ended 3/31/2010

0 50,000 100,000 150,000 200,000 250,000

Atlanta

Philadelphia

Baltimore

Fort Lauderdale

New York JFK

Newark

New York LGA

Dallas

Boston

Chicago ORD

Washington D.C. DCA

Las Vegas

Nashville

Norfolk

Los Angeles

Detroit

Denver

Chicago MDW

Houston IAH

Indianapolis

247,340

230,060

220,650

184,610

179,130

178,890

162,260

149,470

144,250

133,910

128,820

124,210

121,090

113,890

102,770

102,650

101,280

87,890

86,180

85,250

338.8

315.2

302.3

252.9

245.4

245.1

222.3

204.8

197.6

183.4

176.5

170.2

165.9

156.0

140.8

140.6

138.7

120.4

118.1

116.8

Annual O&D PDEW
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Jacksonville Air Service Capacity

After steady growth from 2002 thru 2007, Jacksonville airline capacity dropped in 2008 and 2009. 

In 2008 departures dropped by 8% and capacity by 5%. In 2009 departures were again down 

12% and capacity down 11%. In fact 2009 capacity (seats) was barely above that of 2002.

Daytona Beach Air Service Capacity

Daytona Beach capacity has dropped even more than at Jacksonville. Capacity in 2009 was 

about 60% of that available in 2007 and 12% less than in 2002.

Jacksonville Annual Departures and Seats: 2002 – 2009

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2002 2003 2004 2005 2006 2007 2008 2009

7,821,929 7,886,411 8,238,975 8,644,288 8,761,945

9,386,521 8,889,413

7,900,080

63,214 75,050 

83,593 

86,783 85,000 

90,515 

83,417 

73,400 

Seats Departures

Daytona Beach Annual Departures and Seats: 2002 – 2009

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2002 2003 2004 2005 2006 2007 2008 2009

555,756

679,300

784,361 755,895

624,300

823,645

764,577

487,208

5,923 

7,797 

9,909 

8,658 

7,617 

7,618 

7,962 

6,115 

Seats Departures
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

26

The First Air Service at Northeast Florida Regional Airport

Skybus Airlines began operations from its Columbus, Ohio base in May of 2007. In July of that 

year the carrier became the first to operate at Northeast Florida Regional Airport.

By March of 2008 Skybus was operating four daily departures at Northeast Florida Regional. 

Northeast Florida service was a tremendous success for Skybus, with an average load factor 

over the nine months of operation of 74%. Unfortunately, Skybus was ill prepared for the difficult 

fuel cost and traffic demand environment of 2008 and the carrier shutdown April 5, 2008.

Month

Number of 

Daily Flights

Total 

Landings On Off Total Seats Load Factor

Jul-07 0.5 14 1,308 1,534 2,842 3,864 73.5%

Aug-07 1 31 3,360 3,245 6,605 8,556 74.0%

Sep-07 1 30 3,318 3,429 6,747 8,640 78.4%

Oct-07 1 30 3,385 3,384 6,769 8,640 78.4%

Nov-07 1 30 3,540 3,613 7,153 8,640 82.8%

Dec-07 2.5 59 6,340 6,655 12,995 16,992 76.5%

Jan-08 3.5 106 9,821 10,395 20,216 30,528 66.2%

Feb-08 4 114 10,136 10,381 20,517 32,832 62.5%

Mar-08 4 123 12,932 13,339 26,271 35,424 74.2%

537 54,140 55,975 110,115 154,656 74.0%

Skybus Monthly Data Summary: UST

July 2007 thorough March 2008

Skybus provided service from 

Northeast Florida Regional to three 

northern cities; Columbus, 

Greensboro and Portsmouth.

The tremendous traffic volumes 

the service generated, given an 

unknown airline, are proof that 

Northeast Florida Regional will 

support air service.

St. Augustine 

Greensboro 

Columbus

Portsmouth
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

27

Northeast Florida Average Fares

Northeast Florida (Jacksonville and Daytona Beach) has had a higher domestic average fare 

each year 2002 thru 2009 in comparison to other key Florida airports, including Orlando, Tampa, 

Fort Lauderdale and Fort Myers. The only exception is that Northeast Florida was $3 less than Fort 

Myers in year 2002.

In recent years northeast Florida has been well above its peer group, as much as $15 and 12% 

higher than Orlando and Tampa. These average fare paid discrepancies occur despite the 

presence of low-cost airlines at Jacksonville, including Southwest, AirTran and jetBlue.

The impact of these much higher average fares on the ability of northeast Florida tourism venues 

and lodging facilities to compete with other regions of Florida is obvious. Especially in these 

austere economic times vacationers count dollars and consumer consciousness about airfare 

dollars is always high.

Northeast Florida Average Fare vs. Other Key Florida Airports: 2002 - 2009

$118

$125 $124

$126

$139

$137

$145

$133

$111

$115

$110

$112

$122 $121

$128

$115

$109

$113

$108

$110

$124

$122

$130

$121

$110

$112

$108 $111

$124 $125

$129

$120

$121 $121 $121

$117

$130

$128

$138

$127

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

$150

2002 2003 2004 2005 2006 2007 2008 2009

Average Fare

NE Florida Orlando Tampa Fort Lauderdale Fort Myers
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

28

This average fare discrepancy is even more glaring given that the two northeast Florida airports 

are closer, being on the north end of Florida, to most of Florida’s top domestic markets, 

especially those in the New England and the northeast U.S. Therefore, from a yield standpoint, 

northeast Florida travelers are paying between 20% and 30% more per mile than Orlando or 

Tampa travelers.

Clearly the yield impact is not just from the higher average fares paid at northeast Florida 

airports but also reflects simple geography in that northeast Florida is closer to most of the 

nation’s key Florida travel generators than the other major Florida markets.

The average domestic trip distance chart shows that northeast Florida average passenger trips 

are between 10% and 20% shorter than those at other a major Florida airports.

Northeast Florida Yield vs. Other Key Florida Airports: 2002 - 2009

12.1

12.5

12.3

12.6

13.8

13.6

14.3

13.1

9.8

10.2

9.8

10.1

11.0 11.1

11.7

10.6

10.1

10.4

10.0

10.2

11.4 11.4

12.1

11.3

9.2 9.3

9.0

9.3

10.4

10.6

11.1

10.2

10.2 10.1 10.1

9.9

11.0

10.8

11.7

10.8

8

9

10

11

12

13

14

15

2002 2003 2004 2005 2006 2007 2008 2009

PDEW 

NE Florida Orlando Tampa Fort Lauderdale Fort Myers

Market 2002 2003 2004 2005 2006 2007 2008 2009

Northeast Florida 984 1,003 1,004 1,002 1,006 1,008 1,011 1,023

Orlando 1,130 1,131 1,126 1,112 1,110 1,102 1,105 1,112

Tampa 1,083 1,087 1,098 1,091 1,091 1,084 1,088 1,097

Fort Lauderdale 1,190 1,207 1,205 1,187 1,193 1,184 1,164 1,174

Fort Myers 1,192 1,205 1,202 1,189 1,185 1,179 1,177 1,176

Average Trip Distance

DOMESTIC TRIP DISTANCE: MAJOR FLORIDA MARKETS FOR 2002 - 2009
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

29

Alternative Airports & Traffic Leakage

Northeast Florida Regional Airport is perfectly positioned, both geographically and from a 

infrastructure cost standpoint, to draw new low-cost air service to the northeast Florida region. 

This new service will help mitigate the significantly higher average fares that northeast Florida 

passengers are paying in comparison to average fares at other major Florida airports.

The significant average fare differential between northeast Florida airports and nearby Orlando 

(106 road miles and 1:44 drive time) certainly would suggest that some travelers, both local 

residents and inbound tourists, use the Orland airport in lieu of Jacksonville or Daytona Beach.

In fifteen of northeast Florida’s top twenty markets the Orlando average fare paid is lower, in 

eight of the fifteen markets the percentage lower is double digits. Given the close proximity of 

Orlando and the low-cost of rental cars in Florida, these average fare differentials certainly 

suggest significant leakage of northeast Florida traffic to Orlando. 

NE Florida Orlando

Market Avg Fare Avg Fare Dollars Percent

Atlanta $117 $120 ($3) -2.5%

Philadelphia $111 $100 $11 11.0%

Baltimore $106 $88 $18 20.5%

Fort Lauderdale $95 $72 $23 31.9%

New York JFK $124 $117 $7 6.0%

Newark $141 $127 $14 11.0%

New York LGA $124 $116 $8 6.9%

Dallas $149 $122 $27 22.1%

Boston $126 $123 $3 2.4%

Chicago ORD $150 $116 $34 29.3%

Washington D.C. DCA $179 $118 $61 51.7%

Las Vegas $139 $159 ($20) -12.6%

Nashville $112 $120 ($8) -6.7%

Norfolk $103 $99 $4 4.0%

Los Angeles $161 $190 ($29) -15.3%

Detroit $135 $93 $42 45.2%

Denver $133 $140 ($7) -5.0%

Chicago MDW $108 $105 $3 2.9%

Houston IAH $157 $146 $11 7.5%

Indianapolis $91 $89 $2 2.2%

Difference

NE FLORIDA vs. ORLANDO: TOP TWENTY MARKETS AVERAGE FARE
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

30

Air Service Needs and Deficiencies

Northeast Florida has significantly higher average fares than other major cities in Florida. This 

discrepancy puts the entire region at a disadvantage when competing with other regions of 

Florida for tourists and recreational visitors. Most especially in these difficult economic times 

consumers are careful with their dollars, especially those discretionary dollars allocated to leisure 

activities and vacation getaways.

Northeast Florida tourism suffered double digit losses of traffic and dollars spent starting the 

summer of 2008 and extending thru 2009. So far in 2010 the tourism traffic volume is up, in many 

cases significantly. Some of this increase is due to economic recovery; another factor is the 

tragic oil spill in the Gulf of Mexico, which is driving some tourism visits and dollars to the Atlantic 

side of Florida.

But even as the economy recovers and tourism rebounds modestly, northeast Florida remains at 

a significant disadvantage when it comes the quantity and price of its air service, as compared 

to other Florida gateways like Orlando.

Local Air Service Development Efforts

The Northeast Florida Regional Airport at St. Augustine has only been active in air service 

development since 2007, after the tremendous potential of the airport was illustrated by the 

SkyBus service of 2007 – 2008. Accordingly, we have only a four year history of air service 

development effort however; we have put a lot of effort in those four years;

2007

 SkyBus begins service at Northeast Florida Regional in July. Airport assists carrier with 

ground handling support and works on additional routes that start in 2008.

2008

 Developed Presentations and Marketing Material for Pittsburgh ACI Jumpstart Meetings 

and met with Gulfstream, Spirit, Alaska/Horizon. Southwest, and Vision.

 Follow-up Material Development and Contacts with Jumpstart Meeting participants and 

had Air Service Development Consultant Meetings with United Airlines and Southwest.

 On-site Meeting with Allegiant Airlines.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

31

2009

 Developed Presentations and Marketing Material for ACI Jumpstart Meetings in Montreal.

 Met with Republic, Southwest, Spirit, Gulfstream and Pinnacle Airlines at ACI Jumpstart.

 Air Service Development Consultant Meetings with United Airlines, AirTran and Southwest.

 Follow-up Material Development and Contacts with Jumpstart Meeting participants.

2010

 Developed Presentation and Marketing Materials for Allegiant Airlines.

 Met with Allegiant Airlines at their corporate headquarters in Las Vegas, NV.

 Air Service Development Consultant Meetings with United Airlines and Southwest.

 Developed Presentation and Marketing Materials for Network USA Meetings.

 Met with AirTran, Spirit, Gulfstream, Southwest and Republic Airlines at Network USA, In Ft. 

Lauderdale, FL.

 Follow-up Material Development and Contacts with Network USA participants.

 Developed Email Marketing Materials for pre-conference contact to all Jumpstart 

participant airlines.

 Developed Presentations and Marketing Material for ACI Jumpstart Meetings in San 

Diego, CA.

 Met with Frontier, Southwest, AirTran, Vision at ACI Jumpstart.

 Gold Sponsorship and Display and Booth at ACI Jumpstart Event.

 Follow-up Material Development and Contacts with Jumpstart Meeting participants.

 Conference Call with GPT about NE Florida service potential with Vision or ExpressJet.

 Conference Call with Locair.

 Developed Presentation Materials for Sky King Airlines.

 On-site Meeting with Allegiant.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

32

Detailed Explanation of Proposal

The Northeast Florida Regional Airport at St. Augustine, Florida proposes to use Grant funding, 

with a healthy local match, to provide powerful marketing support for new service that various 

airlines have under consideration for the Airport.

One very significant challenge in recruiting airlines to serve the Airport is an understandable 

airline fear that prospective customers in northern and central U.S. cities will not understand 

where the Airport is and the region it serves. It is likely that consumers will readily identify Orlando 

or Tampa or Jacksonville as gateway cities in Florida. It is likely that the same consumers would 

struggle to identify St. Augustine as such and it is likely that most have never heard of the 

Northeast Florida Regional Airport. This concern has been expressed to the Airport by several 

airlines in face to face meetings.

So while the Airport has an outstanding location and excellent and low-cost facilities to offer, 

one thing it does not have is name recognition among prospective users in the northern and 

central United States. A good price and a nonstop flight are powerful tools to draw traffic but 

lack of name recognition means lost sales in the critical first year of new service at the Airport.

In response to this legitimate airline concern the Airport is seeking Grant funding, combined with 

a local cash match, to ensure that new air service will have very powerful and enduring 

marketing and promotional support during the critical start up phase.

All Airport marketing and promotional efforts will be collaborative, involving the Airport, the 

Airline, the St. Johns County Tourism Development Council (TDC) and various lodging and leisure 

activity entities. The Airport will coordinate the use of Grant funded marketing and promotional 

dollars, both with the Airline and with the existing marketing and promotional efforts of the TDC.

At the same time, and separate from this Grant application, the Airport has developed a 

complete airport facility and ground handling package for the Airline. This package of long term 

fee waivers and reduced cost ground handling support will save hundreds to over a thousand 

dollars per flight turn for the Airline, as compared to landing at Jacksonville or Daytona Beach or 

just about any other airport in Florida. The exact amount of savings per flight depends on the 

specific aircraft type involved and the frequency of operations.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

33

Specifically, the Northeast Florida Regional Airport plan involves;

 A collaborative effort to market new Northeast Florida air service in the cities and regions 

where the new air service will originate. This will involve working closely with the Airline 

which is likely to have some marketing and promotional infrastructure in place at the 

origin city and has a vested interest in the success of marketing efforts in that market.

 A tightly coordinated joint effort with the TDC and various resort and venue entities to 

steer existing tourism marketing resources to focus on the cities or regions where the new 

air service will originates.

 Depending on the carrier and type of service pattern and origin city, the Airport will 

undertake marketing and promotion of the service in northeast Florida. This effort will be 

scaled to the potential for traffic capture and will involve lower cost media outlets like 

billboard, radio and mass email or postal mail.

 A comprehensive airport facility and ground handling program that will ensure that the 

Airline will benefit from the lowest airport and turn costs in Florida. While this element of 

the plan does not involve Grant funding, it is complimentary. Successful Airlines today are 

very cost focused and the Airport’s complete ultra low-cost facility and ground handling 

package has already drawn positive response from airlines it has been presented to.

With a favorable decision on this Grant application the Airport and its partners will have all the 

pieces in place to bring low-cost air service to Northeast Florida Regional Airport. For a modest 

expenditure of Grant and local funds (and then combined with the locally developed and 

funded Airport facility and ground handling program) a very significant positive economic 

impact will occur and the Airport will be on its way to becoming a gateway to the region and a 

driver of low fare air service for the region.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

34

Extenuating Factors Affecting Northeast Florida Air Service

At some point along the evolutionary path of domestic air service the Northeast Florida Regional 

Airport at St. Augustine got left behind. The Airport clearly has the best location of any in the 

region for serving both local residents and inbound tourists. The Airport has all the infrastructure in 

place to handle several hundred thousand passengers per year.

The Northeast Florida Regional Airport did step back into connection to the national air 

transportation system with the Skybus service that started in May of 2007. The service generated 

a huge consumer response and proved the adage “fly it and they will come” does apply to 

Northeast Florida Regional.

But Skybus Airlines failed in April of 2008, the victim an overall weak business plan and extreme 

and unanticipated fuel price spikes in the spring of that year.

The Airport has a solid plan to restore low fare air service, this time with a complete facility and 

ground handling program and a significant Grant and locally funded marketing and 

promotional program.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

35

A Strategic Plan for Success

The Northeast Florida Regional Airport and its air service development partners see clearly that 

low-cost air service is a driver of economic activity and growth. The Airport and its partners have 

a comprehensive plan for ensuring that new air service at the Airport will succeed and grow. To 

this group this effort is an economic imperative.

Public / Private Partnership

The Airport’s government and private sector partners in air service development include;

The St. Augustine – St Johns County Airport Authority – The Airport Authority was established in 

1964 and has overseen the growth and evolution of the Airport facility since that time. The 

Authority is active in the economic development of Airport land, the oversight of Airport tenants, 

air service development and planning for the growth of the Airport and the region around it.

St Johns County Chamber of Commerce – The Chamber and its county wide membership is the 

most influential business and commerce organization in the county. The Chamber is dedicated 

to promoting economic growth and sound business practices.

St. Johns County Economic Development Council – A branch of the Chamber, the Economic 

Development Council’s mission is to “bring new business and industry into the community, and to 

help existing business and industry to prosper.”

St Johns County Tourism Development Council – The TDC promotes tourism in St Johns County. 

The TDC is funded by a local bed tax on rental units that generates about $5 million per year.

St. Augustine – Ponte Vedra & Beaches Visitors & Convention Bureau (VCB) - The mission of the 

VCB is to brand and market the destination globally as a premier leisure, convention and 

business destination; to communicate the area's assets and inherent benefits to consumers, 

meeting planners, travel trade, media, local community and constituents; and to facilitate the 

opportunity for partners to promote their individual businesses within that framework.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

36

Galaxy Aviation – Galaxy is a full service Fixed Based Operator with six locations, five of which 

are in Florida. Galaxy provides complete on ground service to general aviation and corporate 

aviation customers and provides airline ground handling services.

Grant Funding 

Grant Funding Allocation

The Airport requests in this Grant document $100,000 in Grant funding for the purpose of 

supporting the marketing and promotion of new air service at the Northeast Florida Regional 

Airport. The Grant funding of $100,000 would be supported by $25,000 in local cash match 

funding for a total Grant funding of $125,000.

The total Grant funding of $125,000 then splits out as 80% Department funding and 20% 

Northeast Florida Airport funding. All Grant related expenditures will be paid in that formula. The 

Airport and its partners understand that the Small Community Program is a reimbursable 

program therefore communities are required to make advance payments for funds expended in 

association with the project implementation under the program and then seek reimbursement.

NE Florida NE Florida

Allocation DOT Share DOT Percent Airport Share Airport Percent

Marketing & Promotion $125,000 $100,000 80% $25,000 20%

GRANT FUNDING BREAKDOWN
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

37

Target Audience and Marketing Plan

The primary target audience for the Grant funded marketing and promotional efforts will be 

consumers interested in visiting Florida that reside in the city and region near the airport that will 

receive nonstop flights to Northeast Florida Regional Airport.

As was explained earlier in this document, one of the hesitations of airlines that the Airport has 

spoken to is related to consumer perception of gateway airports in Florida and that places like 

Orlando or Tampa are likely well known in that regard and Northeast Florida Regional at St. 

Augustine is most likely not known at all.

Thus a focused program to promote the new air service in the northern tier or central U.S. city 

and region that will receive the new Northeast Florida Regional air service is a priority.

The Airport will have many allies in this effort including; 

 The Airline, which has a vested interest in the success of the new service and also will 

want all marketing & promotional efforts to conform to its brand & advertising protocols.

 The Tourist Development Council of St. Johns County, which is strongly motivated to 

nurture low fare air service at Northeast Florida Region, as a successful low fare service 

at this Airport is a huge boon to county tourism.

 The resort and lodging entities and the tourism venues of the St. Augustine area, all of 

which have suffered a loss of business activity due to the recession and are hungry for 

methods to expand visitor events.

While exact marketing and advertising plans cannot be determined until the carrier and route 

are known, the Airport envisions that a typical new air service to a northern or central U.S. city will 

use some or all of the following marketing and promotional methods in the origin city;

1) Radio promotions and ticket/hotel package giveaways

2) Billboards, advertising the destination as much as the airline

3) Emails and postal mailings to consumers that are identified as previous visitors from zip 

code and address retention programs at northeast Florida lodgings and leisure venues.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

38

4) Careful coordination with the existing northeast Florida promotional efforts of the TDC, 

turning those efforts to focus on the region where the new air service is to originate. TDC 

efforts cross a wide spectrum of media venues including newspaper, internet and radio.

Depending on the route and carrier business model the Airport will also market and promote the 

new air service in the northeast Florida region. To clarify this, if Allegiant is the carrier and the 

route is twice weekly to Allentown, PA, the Airport is unlikely to commit measureable promotional 

resources to the local northeast Florida market. If, on the other hand, the carrier is Frontier with 

year round three or four times weekly service to Milwaukee or Kansas City with an extension to 

Denver, then the Airport may commit measureable promotional resources to the local market, 

give that Frontier does not serve Jacksonville, operates a network type route system, and is 

committing significantly more frequency to the market than an Allegiant might.

Timeline, Milestones and Monitoring

The timeline for implementation of the marketing and promotional programs outlined in this 

application are controlled by two sequential events; the timeline of the award of the Grant and 

the Airline’s service startup date.

This timeline represents a best case of Grant implementation. Timeline and milestone sequence 

would obviously slip depending on sequence of Grant award and carrier service agreement.

Date Event Status

Aug, 2010 Grant Application Done

Sept, 2010 Letters of support

Q4 2010 Receive Grant Award

Q4 2010 Gain Airline commitments to serve Northeast Florida Regional

Q1 2011 Announce service

Q1 2011 Meet with stakeholders, Airline, TDC, lodging entities, to firm up marketing plan

Q1 2011 Begin quarterly DOT Grant status reports

Q1 2011 Begin marketing and promotional efforts in close coordination with stakeholders

Q2 2011 New service kickoff

Q2 2011 Evaluate first 30 days & booking curve

Q2 2011 Based on initial booking curve firm up Fall 2011 marketing plan

Q3 2011 Refine marketing program based on route performance

Q3 2011 Renew marketing program, targeting winter bookings 

Q1 2012 Evaluate first six months of service, adjust marketing plan as needed 

Indicates Milestone

NORTHEAST FLORIDA REGIONAL AIRPORT GRANT TIMELINE
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

39

Performance Measures

All stakeholders in the Grant implementation, the Airport, its partners, the Airline, the TDC and 

local lodging and leisure venue entities, will be regularly apprised of the performance of the new 

air service, in terms of load factor, average fare and revenue, and profitability. To the maximum 

extent possible, the stakeholders will reference actual market share performance and traffic mix 

metrics to determine if marketing and promotional efforts are successful. This will be done even if 

the route is performing well, since it may be performing well despite badly aimed marketing and 

promotional efforts, and could be doing even better with resource allocation adjustments.

Financial Controls and Program Oversight

The legal sponsor of this application, Mr. Edward R. Wuellner AAE and Executive Director of the 

Northeast Florida Regional Airport, will oversee the implementation of this Grant. This oversight 

will include (but not be limited to);

 Liaison with the Department, including the timely filing of all quarterly Grant status 

update reports

 Conclusion of all agreements with prospective airlines to serve the Airport

 Coordination and oversight of the implementation of Grant supported marketing and 

promotional efforts

 Oversight and coordination of the regular performance reviews of Grant supported 

efforts to ensure program success

 Approval of all expenditures of Grant funding, in close coordination with the Department 

and Grant program stakeholders
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

40

Return on Investment

The amount of this Grant is relatively modest by Small Community Grant program standards. The 

type of air service that will be supported by Grand funds is envisioned to be low fare flights with 

mainline type aircraft. Even a twice weekly 150 seat MD80 generates 600 route seats per week 

or 31,200 per year. Assuming even an 85% load factor, which is modest by Allegiant Air standards 

for example, this one example route would 26,520 annual O&D passengers. Even if the entire 

$125,000 is expended on this one route the cost per passenger generated in Grant funds is a 

modest $4.71.

Use of Local and Department Funds

The Airport and the designated legal sponsor will ensure that both Department and local funds 

associated with this project are expended in a manner consistent with the Grant intention and 

the contract between the Department and the Airport.

This is a straightforward marketing and promotions Grant with a clear target market and 

established methods of marketing and promotion that will be utilized with Grand funds.

Route Self Sufficiency

Marketing and promotion alone cannot make a new air service successful, nor be its downfall. 

However, the Airport and all Grant stakeholders recognize that marketing and promotion are 

one essential element of a successful new air service.

The Airport has a comprehensive airport facility and ground handling package that 

compliments the marketing and promotional efforts this Grant will support. These two key 

elements, combined with a passionate local commitment to make low fare air service happen 

at Northeast Florida Region and a commitment to closely monitor new route performance, 

suggest that new low fare air service at Northeast Florida Regional will be successful or that mid 

course adjustments in strategy and tactics, undertaken as needed, will result in eventual 

success. The Airport and its local partners understand the need for success and will commit 

additional marketing and promotional resources, as needed, to ensure that success. 
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

41

Alternate Timeline and Plan

The airline industry is very volatile, witness 2008 as an example. The Airport and its partners 

understand that sudden fuel cost spikes, economic slowdowns, and geopolitical events or even 

huge off shore oil spills can wreck the best laid new air service plans.

Thus, the Airport and its partners cannot predict such events or any alternative air service 

environment which may emerge from them. The Airport parties will remain as true as possible to 

the intent of this Grant application and any significant deviation from its written intent herein will 

be proposed to the Department for approval. Only extreme circumstances will cause such a 

plan shift and any shift will be subject to Department approval.

Legal Sponsor

The Legal Sponsor of this Grant application is the Northeast Florida Regional Airport. The 

designated Legal Sponsor contact is:

Edward R. Wuellner, AAAE

Executive Director

47 96 US 1 North

St. Augustine, Florida 32095

Phone 904 209 0090

Fax 904 209 0528

Email erw@sgj-airport.com
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

42

AIRPORT INFORMATION

Northeast Florida Regional Airport is located just a few miles from historic downtown St. 

Augustine and serves as a focal point for the Northeast Florida region. It is publicly owned by St. 

Augustine - St. Johns County Airport Authority. Remodeled and expanded in 1994, the terminal 

offers a full airline passenger processing infrastructure, including ticket counters, gate hold areas, 

baggage makeup and claim and TSA security screening. The airport has three asphalt runways 

of varying lengths; the primary runway is 7,996 feet. Crash/Fire/Rescue capability for mainline 

airline aircraft on site. 

The airport is located adjacent to US Highway 1 and only five road miles from Interstate 95. 

Customer parking near the terminal is $5 per day.
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

43

Northeast Florida Regional Facilities & Handling Package

The Airport recognizes that one of the major expenses of an airline operation is airport and 

ground handling costs. Northeast Florida Regional has put together a comprehensive package 

of long term rental waivers and low-cost ground handling arrangements to support new air 

service. The facility and handling package will save an airline hundreds or even over one 

thousand dollars per daily turn, when compared to Jacksonville or Daytona Beach, or just about 

any airport in Florida. This can amount to a quarter or a third of a million dollars a year in savings 

per daily frequency operated.

Below is an actual offer sheet the Airport presented to Frontier Airlines, showing the example of 

one E-190 daily turn cost at Northeast Florida Regional (UST) vs the same turn cost at Jacksonville 

International.

This example sheet shows a total airport facility and ground handling cost difference of $688.71 

per daily turn. That totals just over $251,000 in annual cost savings for that airline and equipment 

type vs operating at Jacksonville International.

Put another way, the E-190 aircraft in the example has 99 seats, meaning 36,135 annual 

outbound seats. At an 80% load factor that is 28,908 outbound O&D passengers and a total 

airport cost (including facility costs and ground handling) to the airline of $8.70 per passenger.

Airlines that the Airport has presented this option to have indicated it is an excellent incentive 

offer. The Airport has created this incentive package and will fund it independent of the Grant 

application and program, which is focused on marketing and promotion.

Airport Fee Metric UST

JAX NonsignatoryLanding 

Weight

JAX Cost 

Above UST Per 

Turn

Annual Turns

1 Daily Flight

Estimated 

Annual Cost 

Savings at UST

Landing Fee (per 1,000) No Charge $1.43 E-190 97,000 $138.71 365 $50,629

Apron Fee (per linear ft)

Average Terminal Rent (sq ft)

Ticket Counter (sq ft)

Bag Claim (sq ft)

No Charge

No Charge

No Charge

No Charge

$378.20

$29.50

$340.34

$32.28

F9 airport space 

fees at JAX 

would be part of 

contract ground 

handling costs 

Above and below wing station 

cost &fuel connect $350 $900 estimated $550 365 $200,750

Total Landing Fee and Station Turn Cost Difference $688.71 365 $251,379
 Northeast Florida Regional Airport – Small Community Air Service Development Grant

44

Summary

In this Grant proposal the Northeast Florida Regional Airport is seeking a modest amount of Grant 

funding (with a healthy local cash match) for the marketing and promotion of new low fare air 

service at the Northeast Florida Regional Airport.

This Grant funding would be combined with an innovative and creative (and in place) package 

of airport facility and ground handling services that will save airlines that operate at the Airport 

as much as a third of a million dollars per year per daily flight, as compared to operating the 

same flight at Jacksonville.

The need for low fare air service at Northeast Florida Regional is clear;

 Northeast Florida air travelers using Jacksonville or Daytona Beach pay significantly 

higher average fares and exceedingly higher yields than do passengers using Orlando, 

Tampa, Fort Lauderdale or Fort Myers.

 In northeast Florida tourism is a critical aspect of the economy. Tourist lodging and leisure 

venues in the region must compete for tourist visitors and dollars with other part of the 

state. High airfares and limited nonstop low fare service is costing northeast Florida tourist 

visitors and dollars.

 Skybus served Northeast Florida Regional for less than a year in 2007 – 2008. Yet this 

essentially unbranded startup airline generated over 107,000 O&D passengers in that 

brief period before the airline, due to its own business miscalculations, shut down. The 

brief service does prove that “fly it and they will come” does apply to this Airport.

 The Airport and its local partners have a well structured plan to ensure that new low fare 

air service that is introduced will be successful.

This Grant application is both modest in its funding need and precise in its focus. It is precisely the 

type of innovative and creative air service development effort the SCASD program was 

intended to support.

The Airport and its partners thank the Department for its consideration of this application.