La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 1 APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

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SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet, a completed standard form SF424 and the full application proposal on www.grants.gov

. For your preparation convenience, this Summary Information schedule is located at http://www.dot.gov/policy/aviation

- policy/small

- community

- rural

- air

- service/SCASDP

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

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

. Legal Sponsor Name: City of La Crosse, Wisconsin (La Crosse Municipal Airport)
DUNS Number: 9684333 3 4
EIN/Tax ID: 39

- 6005490

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING :
1. L A C ROSSE , W ISCONSIN
2.

3.

4.
C. P ROVIDE THE FULL AIRP ORT NAME AND 3

- L ETTER IATA A IRPORT C ODE FOR THE APP LICANT ( S ) AIRPORT ( S ) (O NLY

PROVIDE CODES FOR TH E AIRPORT ( S ) THAT ARE ACTUALLY SE EKING SERVICE ).

1. La Crosse Municipal Airport (LSE) 2.

3. 4.La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 2 D. L IST THE 2

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

.

1. WI

- 03 2.
3. 4.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )
Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

Community (or Consortium member) previously received a Small Community Air Service Development Program Grant

If previous recipient: Year of grant(s):

F. P UBLIC

/P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )
PUBLIC PRIVATE

1. City of La Crosse 1.

2. La Crosse County 2.

3. 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 Service Other (explain below)

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT : Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other (specify)La Crosse Municipal Airport; La Crosse, Wisconsin

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L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested $750,000

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds $100,000

3b Non

- airport cash funds $159,500

3 Total local cash funds ( 3a + 3b ) $ 259,500

4 TOTAL CASH FUNDING ( 1+2+3 ) $1,0 09 ,5 00

In

- Kind contribution

5a Airport In

- Kind contribution** $120,450

5b Other In

- Kind contribution**

5 TOTAL IN

- KIND CONTRIBUTION ( 5a + 5b ) $120,450

6 TOTAL PROJECT COST ( 4+5 ) $1,1 29 , 9 50

J. IN

- KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please describe the source(s) of fund(s) and the value ($) of each. La Crosse Municipal Airport will waive landing fees for two years for the proposed American Eagle
Dallas/F t. Worth service. Based on the landing fee of $3.78 per 1,000 lbs., the weight of the ERJ

- 145 at 43,651 lbs., and 365 scheduled landings per year for two years, the amount of this incentive equates to $120,450.

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)

_________________________________________________________________________________________________

___________________________________________________________La Crosse Municipal Airport; La Crosse, Wisconsin

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## TABLE OF CONTENTS

INTRODUCTORY LETTER

................................ ................................ ................................ .................... 5
EXECUTIVE SUMMARY

................................ ................................ ................................ ........................ 6
AIR SERVICE OVERVIEW

................................ ................................ ................................ ..................... 7
Catchment Area and Alternate Airports

................................ ................................ ................................ ................. 7 Existing Air Service

................................ ................................ ................................ ................................ ................ 8 Air Service Development Efforts

................................ ................................ ................................ ............................ 8


### AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

................................ ............................. 10
Capacity Trends

................................ ................................ ................................ ................................ ................... 10

Traffic Trends

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

Domestic Fare Trends

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

Domestic Far es Versus Domestic Fares at Other Airports in the Lower 48 United States

................................ . 14 La Crosse Domestic Fares Relative to Other High Fare Air ports

................................ ................................ ........ 15 Leakage to Other Airports in the Region

................................ ................................ ................................ .............. 16


### STRATEGIC PLAN

................................ ................................ ................................ .............................. 18
Revenue Guarantee for Nonstop Service to Dallas/Ft. Worth on American Eagle

................................ ............. 18

Goals

................................ ................................ ................................ ................................ ................................ .... 20 Grant Amendments/Alternate Strategies

................................ ................................ ................................ ............. 20 

### PROJECT IMPLEMENTATION, MONITORING AND FUNDING

................................ .......................... 20
Public / Private Partnerships

................................ ................................ ................................ ................................ 20

Pr oject Funding

................................ ................................ ................................ ................................ .................... 21 Proposed Implementation Timeline

................................ ................................ ................................ ..................... 22


### PROJECT MONITORING AND FINANCIAL CONTROL

................................ ................................ ...... 23

Success Metrics

................................ ................................ ................................ ................................ ................... 23 Legal Sponsor

................................ ................................ ................................ ................................ ...................... 24

Financial Controls

................................ ................................ ................................ ................................ ................ 24


### LETTERS OF SUPPORT

................................ ................................ ................................ ..................... 25La Crosse Municipal Airport; La Crosse, Wisconsin

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### INTRODUCTORY LETTERLa Crosse Municipal Airport; La Crosse, Wisconsin

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### EXECUTIVE SUMMARY

La Crosse Municipal Airport is proposing a Small Community Air Service Development Grant in the amount of $ 750,000 to supplement a community

- based cash contribution of $160,000

, airport cash funding of $ 100,000, and airport in

- kind incentives valu ed at $ 120,450 to provide a minimum revenue guarantee for service from La Crosse
to Dallas/Ft. Worth on the American Airline s regional affiliate, American Eagle

. Not only would Dallas/Ft. Worth service provide a nonstop service for travelers in the local market, but it would generate logical connections to nearly 90 destinations American and other oneworld carriers serve from Dallas/Ft. Worth.

Currently, Air service at La Crosse is limited to American's service to Chicago

, Delta's service to Minneapolis/St

. Paul

, and summer

- only service to Detroit on Delta. The communities served by La Crosse Municipal Airport are relatively isolated, and although American operates nonstop service to Dallas/Ft. Worth from Madison, Madison is

a 137

- mile drive from La Crosse

.
In 2012, airline capacity at La Crosse Municipal Airport was do wn 18.0 % since it peaked in 2004, and total
domestic and international traffic was do wn 26.6% since it peaked in 2004 . Over the same period of time, the average domestic fare at La Crosse is up 45.6% to $266 each way. At $266 , t he average domestic fare at La Crosse Municipal Airport was the sixth highest of all airports in the Lower 48 United States with at least 75,000 domestic origin and destination passengers in 2012.

Based on a leakage s tudy completed in September 2012 using data through First Q uarter 2012
, La Crosse Municipal Airport retains just 42.1% of the traffic generated in its catchment area. 52.1% of the traffic is lost to the airport in Minneapolis/St. Paul, despite a 147 mile drive to Minneapolis/St. Paul. The airport in Madison captures 4.8% of the traffic, and the airport in Rochester captures 0.6% of the traffic.

The proposed new service and additional capacity in La Crosse would likely make more lower cost tickets

availabl e to travelers in the area and enable La Crosse to recapture some of the traffic lost to the airports in Minneapolis/St. Paul, Madison and Rochester.La Crosse Municipal Airport; La Crosse, Wisconsin

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### AIR SERVICE OVERVIEW

Catchment Area and Alternate Airports

Th e La Crosse

- Onalaska Metropolitan Statistical Area is considered as the primary catchment area for La Crosse Municipal Airport , where most of the airport's traffic either originates or is destined, but the airport als o draws
some traffic from other areas of Wisconsin and Minn esota . The July 1, 2012

, Census Bureau population estimate
of th e La Crosse / Onalaska metropoli tan statistical area was 135,298 residents; the population of the metrop olitan statistical area grew 5 .0% since 2000 from 128,887 residents.

Other airports wit h commercial airline service in the region are located in Minneapolis/St. Paul, Rochester and

Madison

. The airport in Rochester is the closest airport to La Crosse at 74 m iles; the airport in Madison is 137 miles, and Minneapolis/St. Paul International Ai rport is located 147 miles from La Crosse

. The location of each airport, along with the 30

- , 60

- and 90

- minute drive times are illustrated in Exhibit 1.

Exhibit 1: 30

- , 60

- and 90

- Minute Drive T imes from La Crosse Municipal Airport and the Location of the Airports in Minneapolis/St. Paul, Rochester and Madison.La Crosse Municipal Airport; La Crosse, Wisconsin

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### Existi ng Air Service

La Crosse is served only by American to Chicago and by Delta with year

- round service to Minneapolis/St. Paul

and seasonal service to Detroit.

The number of flights per day, average seats per flight

, and seats per day by market and by carrier scheduled in August 2013 versus August 2012 are displayed in Exhibit 2

. The data illustrates American has scheduled an average of 209 seats per day each way in the Chicago market, a nd American's capacity is unchanged versus August 2012. Delta will operate a total of 194 seats per day each way on the average day in August 2013 to Detroit and Minneapolis/St. Paul, but Delta's total capacity will decline 16.1% or 37 seats per day each way versus August 2012. Overall, airline capacity at La Crosse will decline from 439 seats per day in August 2012 to 402 seats per day each way in August 2013

– a decline of 8.4%.

Exhibit 2 : Flights per Day *

, Seats per Flight and Seats pe r Day Each Way by Market and Carrier at La Crosse

– August 2013 Versus August 2012 (OAG Data as of July 10, 2013 )

* T he number of flights per day is displayed in increments of sevenths (because there are seven days in a week) . "4 5/7" is read as four flight s seven days a week with a fifth flight operated five of the seven days in a week.



### Air Service Development Efforts

La Crosse Municipal Airport actively began its air service development efforts in September 2012 with a leakage study that enabled stakeholders in the community's air service to understand the amount of traffic leaking to other airports in the region

, and to communicate La Crosse's true market size when meeting with airlines. Once the leakage study was complete, La Crosse began to meet with airlin es. Since October 2012, La Crosse's Airport Manager has presented nine business cases to seven airlines including Allegiant, American, Delta, Frontier, SkyWest, Sun Country

, and United. The airline meeting s, the forum where each meeting took place and the date of the meeting are shown in Exhibit 3.La Crosse Municipal Airport; La Crosse, Wisconsin

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- 0120 9 Exhibit 3: Dates, Forum and Location of La Crosse Municipal Airport Meetings with Airlines since October 2012

In addition to meeting with airlines to discuss the community's air service needs, the Airport has also recently developed its first

- ever incentive program aimed at attracting more airline capacity. The incentive program provides $100,000 in funding to market each new route and waives landing fees for a period of two years for each

new rout e. These incentives are included as part of this proposal.La Crosse Municipal Airport; La Crosse, Wisconsin

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### AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

Capacit y Trend s

La Crosse's total capacity is down 18% since it peaked in 2004 at 577 seats per day each way to 473 seats per day each way in 2012 . Although American's capacity increased 62.3% over this period to 220 seats per day each way , Delta's capacity is down 38.3% to 253 seats per day each way, and Midwest exited the market

. American's willingness to add capacity while Delta steadily decreased capacity between 2004 and 2012 may be indicative of American's willingness to further increase capacity and supplement existing service to Chicago by adding new service to Dallas/Ft. Worth. The trend in the number of seats per day each way by carrier for the last ten years is illustrated in Exhibit 4.

Exhibit 4 : Seats per Day Ea ch Way by Carrier at La Crosse Municipal Airport Year

- End Fourth Quarter 2003

- 2012 (DOT T

100 data)

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### Traffic Trend

s

Like capacity, La Crosse's traffic also peaked in 2004

, when traffic reached more than 240,000 annual origin and destination (O&D) passengers. Since th e peak in 2004, total traffic was down 26.6 % to 176,430 origin and destination passengers in 2012. Domestic traffic is down 27.9%, and international traffic is down 7. 8%; total traffic is down 26.6%. La Crosse generated the smallest number of passengers over the last ten years in 2012,
and traffic fell 4.3% from 2011 to 2012. Domestic, international and total O&D passengers in each of the last ten years are illustrated in Exhibit 5.

Exhibit 5 : Annual D omestic and International Origin and Destination (O&D) Passengers at La Crosse Municipal Airport Year

End Fourth Quarter 2003

- 2012 ( DB1B data)

T his Section Continued on Next PageLa Crosse Municipal Airport; La Crosse, Wisconsin

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- 0120 12 When La Crosse's annual O&D data is translated to passengers pe r day each way (PDEW), domestic traffic is
down 85 PDEW from 307 PDEW in 2004 to 222 PDEW in 2012 ; international traffic is down two PDEW from 21 PDEW in 2004 to 19 PDEW in 2012; total traffic is down 87 PDEW from 328 PDEW in 2004 to 241 PDEW in

2012. This data is illustrated in Exhibit 6.

Exhibit 6 : Annual Domestic and International Passengers per Day Each Way (PDEW) at La Crosse Municipal Airport Year

End Fourth Quarter 2003

- 2012 (DB1B data)La Crosse Municipal Airport; La Crosse, Wisconsin

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### D omestic Fare Trend

s

As airlines have cut capacity in La Crosse since capacity peaked in 2004 , fares have increased. Since La
Crosse's capacit y peaked in 2004 at 577 seats per day each way, the average domestic fare increased $ 83 each way or 45.6 % to $266 each way. This increase came as La Crosse's capacity f ell 18.0% to 473 seats per day

each w ay and domestic traffic fell 27.9 % to 222 passengers per day each way

.

Exhibit 7 : Passengers per Day Each Way (PDEW), Seats per Day Each Way and Average Domestic One

- Way Fare at La Crosse Municipal Airport

– Year

- End Fourth Quarter 2003

- 2012 (DOT T

- 100 and DB1B D ata)

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

The average domestic La Crosse fare was $266 each way in 2012, but the average fare at the average Lower 48 airport was just $177 each way in 2012. Over the last ten years, the average La Crosse fare is up $85 each way

or 47. 1%, while the average Lower 48 fare is up $39 each way or just 28.5%. La Crosse has experienced a higher absolute increase and a higher percentage increase versus the average Lower 48 airport. The average domestic fare for La Crosse and the average Lower 48 airport and the cumulative change is illustrated in Exhibit

8.

Exhibit 8 : Average One

- Way Domestic Fare at La Crosse Municip al Airport and Cumulative Change since 2003 Versus the Average Lower 48 Airport

T his Section Continued on Next PageLa Crosse Municipal Airport; La Crosse, Wisconsin

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### La Crosse Domestic Fares Relative to Other High Fare Airports

Not only did La Crosse have high fares relative to the average Lower 48 airport s , the average domestic fare of $266 at La Crosse ranked as the six th highest fare among all L ower 48 airports with at least 75, 000 origin an d destination passengers in 2012

. Only Dothan, Williston, Minot, Columbus (Georgia) and Lawton generated higher average domestic fare s than La Crosse in 2012

. A table of the 25 highest fare airports (with at least 75,000 O&D passengers in 2012) is shown in Exhibit 9; the airports are ranked in descending order of the average domestic
fare.

Exhibit 9 : Origin and Destination Passengers, Passengers per Day Each Way (PDEW) and Average Domestic Fare at the 25 Highest Far e Airports with at Least 75,000 Domestic O&D Passengers in 2012 (DB1B Data/Includes Data for All Carriers)La Crosse Municipal Airport; La Crosse, Wisconsin

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### Leakage to Other Airports in the Region

A leakage study completed in September 2012 using Year

- End First Quarter 2012 data revealed La Crosse Municipal Airport retains just 42.8% of the traffic generated in its catchment area. Although it is located more
than 145 miles from La Crosse, Minneapolis/St. Paul International Airport captured 51.7% of the traffic generated in the catchment area of La Crosse Municipal Airport. The airport in Madison captured 4.9% of the traffic, and the airport in Rochester captured 0. 6% of th e traffic. The map in Exhibit 10 illustrates the location of the alternate airports and the share of La Crosse traffic captured at each airport.

Exhibit 10 : Percent of La Crosse Catchment Area Traffic Captured at the Airports in La Crosse, Minneapolis/St. Paul, Madison and Rochester (September 2012 Leakage Study Data for Year

- End First Quarter 2012 Traffic)

The high percentage of traffic leaked to Minneapolis/St. Paul, in particular, is not surprising given the high fares at
La Crosse Mun icipal Airport and the relatively few nonstop destinations served from La Crosse. Based on the data collected in the September 2012 leakage study, the average fare (domestic and international) paid at La Crosse was $265 each way versus $198 at Minneapolis , $205 at Madison and $228 at Rochester. The fare paid by travelers using La Crosse was 25.3% higher versus Minneapolis; 22.6% higher versus Madison, and 14.0%La Crosse Municipal Airport; La Crosse, Wisconsin

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- 0120 17 higher versus Rochester. The average fare paid at each of the four airports, based on the leak age study findings

is illustrated in Exhibit 11.

Exhibit 11 : A verage Fare Paid by La Crosse Catchment Area Passengers by Originating Airport

– April 2011

- March 2012 (September 2012 Leakage Study Data)La Crosse Municipal Airport; La Crosse, Wisconsin

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### STRATEGIC PLAN

Revenue Guarantee for Nonstop Service to Dallas/Ft. Worth on American Eagle

La Crosse Municipal Airport believes the most effective and efficient way to reduce fares, increase traffic and reduce the number of passengers leaking to other airports is for airlines to add new service from La Crosse, and

American Airlines is mo st likely to add new service among the two airlines currently serving La Crosse

. Delta already serves Minneapolis/St. Paul and Detroit

– Delta's two closest hubs to La Crosse

– and has told the airport manager servic e to the next logical Delta hub, Atlanta, is unlikely.

American currently operates service to its hub in Chicago, so service to Dallas/Ft. Worth would be the next logical step for American to grow its presence in La Crosse. In August 2012, La Crosse's a irport manager was contacted by American to determine if La Crosse could offer a financial incentive, in the form of a minimum revenue guarantee, for service to Dallas/Ft. Worth. Unfortuanately, La Crosse was not able to provide any funds for a

minimum r evenue guarantee, and service to Dallas/Ft. Worth from three communities that were able to provide minimum revenue guarantee funding, Beaumont, Fargo and Columbia, Missouri, was announced and began in February 2013. At a meeting in La Crosse in December 2 012, American's Managing Director of State & Community Affairs told community leaders minimum revenue guarantee funding would improve the probability of
La Crosse

- Dallas/Ft. Worth service.

Service from La Crosse to Dallas/Ft. Worth would provide service no t only in the local La Crosse

- Dallas/Ft. Worth market, but it would also provide non

- circuitous connections to nearly 90 markets American and American Eagle serve from Dallas/Ft. Worth. The logical connecting markets are illustrated on the map in Exhibit 12.La Crosse Municipal Airport; La Crosse, Wisconsin

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- 0120 19 Exhibit 12 : Logical Connecting Markets American and American Eagle Could Serve with La Crosse

- Dallas/Ft. Worth Service (circuity not greater than 66%)

In 2012, t he 25 largest markets American could flow via Dallas/Ft. Worth markets generated 66.4 PDEW at an

average one

- way fare of $247; all markets that could logically flow via Dallas/Ft. Worth generated 74.9 PDEW at

an average one

- way fare of $261. The local La Crosse

- Dallas/Ft. Worth market generated 7.8 PDEW at an average fare of $248 in 2012. The market sizes and average fares are shown in Exhibit 13.

Exhibit 13 : 2012 Passengers Per Day Each Way (PDEW) and Average One

- Way Fare in the 25 Largest La Crosse Markets American and American Eagle Could Logically Flow via Dallas/Ft. Worth.La Crosse Municipal Airport; La Crosse, Wisconsin

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### Go als

La Crosse Municipal Airport has three goals for the proposed project to recruit American Eagle service from La
Crosse to Dallas/Ft. Worth:

 Reverse the d ownward trends in airline capacity and airline traffic at La Crosse Municipal Airport

― Additional c apacity will likely put downward pressure on the average fare paid by travelers

 Recapture t raffic generated in La Crosse's catchment area, but leaked to the airports in Minneapolis/St. Paul, Rochester and Madison

 Reduce the number of connections to markets not served with a single connection on American's existing
service to its hub in Chicago and Delta's existing service to its hubs in Minneapolis/St. Paul and Detroit



### Grant Amendments/

Alternate Strategies

La Crosse Municipal Airport 's primary air service development goal is for new service from La Crosse to Dallas/Ft. Worth on American Eagle. If the Department awards La Crosse Municipal Airport a grant for the proposed service, but the community is not successful in recruiting America n Eagle to operate La Crosse

- Dallas/Ft. Worth
service, the a irport and the community may request the Department consider redirect ing award funding to assist in recruiting other service

.

In additi on to the proposed Dallas/Ft. Worth service, the a irport a nd the community have also identified Denver as a hub that could provide travelers in the area with service not only in the local Denver market, but also
connections to destinations in the Inter

- Mountain West, the Southwest and the West Coast. If American Eagle were not willing to begin service from La Crosse to Dallas/Ft. Worth

, the airport would build business cases to present to both United and Frontier for service to Denver. Both United and Frontier have expressed interest in the
La Crosse market duri ng meetings with these airlines.



### PROJECT IMPLEMENTATION, MONITORING AND FUNDING
Public / Private Partnerships

The airport, l ocal governments and business organizations in the region understand the importance of affordable air fares, and the relationship b etween air fare affordability and economic growth. Based on this recognition and awareness, the airport manager regularly conducts community outreach meetings with business and government organizations to discuss the importance of air service to the econo my of La Crosse and using the local airport when traveling both for business and leisure. Excluding the City of La Crosse (and the Airport ) , th ere are 1 9 organizations partnering to improve air service in La Crosse . These 1 9 organizations have pledged total cashLa Crosse Municipal Airport; La Crosse, Wisconsin

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- 0120 21 funding of $1 59, 500 in community local funding to be applied to the minimum revenue guarantee of the proposed project.

1. CenturyLink

2. Chart Industries 3. Coulee Bank 4. Dairyland Power 5. Gunderson Health Systems 6. Kwik Trip 7. La Crosse County 8. La Crosse Area D evelopment Corp. 9. La Crosse Area Planning Committee 10. La Crosse County 11. Mathy Construction 12. Mayo Clinic Health System 13. Oakdale Electric 14. Organic Valley 15. Riverland Energy 16. Trust Point, Inc. 17. Viterbo University 18. Western Technical College 19. Xcel Energy



### Project Funding

In addition to the Small Community Air Service Development Grant of $750,000 requested from the Department, organizations in the community are willing to provide cash of $159,500 to be applied toward a minimum revenue guarantee. The airport will provide c ash of $100,000 for marketing and estimates the value of its in

- kind contributions from waived fees at $120,450 over the three

- year life of the project, based on one roundtrip operated with a 50

- seat regional jet. The total value of cash and in

- kind cont ributions from the community and the airport is valued at $379,950 or 33.6% of the total project cost of $1,129,950. A summary of funding sources

is shown in Exhibit 14.

Exhibit 14: Summary of Sources and Types of Project FundingLa Crosse Municipal Airport; La Crosse, Wisconsin

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### Proposed Implementat ion Timeline

The proposed implementation timeline for the project assumes the Department will award Small Communit y Gra nt Funding in September 2013 . Once the award is announced

, La Crosse Municipal Airport wi ll advise American of the grant award . Based on American's planning lead times and the need for ad vanc e bookings, we assume it could not begin service until later half of 2014 at the earliest , and we have conservatively assumed the se rvice could not begin until September 2014 . The first two milestones on the Airport's timel ine are to execute the grant

agree ment with the Department and to negotiate the minimum revenue guarantee agreement with the airline

. Once service is announced and schedules are published, the airline

, the Airport and the community will begin marketing the n ew route and working with the airline to monitor advance bookings. The Airport will continue its marketing pro gram and continue to work with the airline to monitor the route once service begins. The Airport will
submit grant status reports on a quarterly basis to the Depart ment throughout the proposed three

- year term of the minimum revenue guarantee. The proposed project timeline is shown in Exhibit 15.

Exhibit 15 : Proposed Project TimelineLa Crosse Municipal Airport; La Crosse, Wisconsin

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### PROJECT MONITORING AND FINANCIAL CONTROL

Success Metrics

The ultimate s u ccess of th e progra m will be based on American Eagle operating service to Dallas/Ft. Worth, or if American Eagle does not begin Dallas/Ft. Worth service, United or Frontier operating service to Denver. Regardless of whether the community obtains service to Dallas/Ft. Worth or Denver, the community expects the new service to put downward pressure on fares in the ma rkets served by the airline, increase traffi c at the airport and reduce the amount of leakag e to the airports in Minneapolis/St. Paul, Rochester and Madison

. The Airport

will work with the airline to continuously moni tor the performance of the new service . Even before service begins

, we will communicate with the airline on a regular basis to monitor advance bookings and week

- over

- week

a dvance bookings. Marketing and promotional activities can be adjusted if advance bookings are weak or are not booking at a rate satisfactory to the airline. A summary of the project goals and success metrics is shown in
Exhibit 16.

Exhibit 16 : Project Goals and Success Metrics

Project Goals Success Metric

 Reverse the d ownward trends in airline capacity and airline traffic at La Crosse Municipal Airport  Quarterly year

- over

- year increases in airline capacity and traffic

.

 Downward pressure on the average fare paid by travelers  Quarterly year

- over

- year declines in the average fares paid in La Crosse

 Recapture t raffic generated in La Crosse's catchment area, but leaked to the airports in Minneapolis/St. Paul, Rochester and Madison  Increased quarterly year

- over

- year origin and destination traffic

.

 Reduce the number of connections to markets not served with a single connection on American's existing service to its hub in Chicago and Delta's existing service to its hubs in Minneapolis/St. Paul and Detroit  Increases in traffic in markets not previously served with a single connection via Chicago, Minneapolis/St. Paul or Detroit.

Once service begins, the Airport will rely on traffic and revenue data provided directly by the airline and the
amount of minimum revenue guarantee reimbursements requested by the airline as indications of project

success. T

- 100 data and DB1B data will also be analyzed to compar e year

- over

- year market size growth on a quarterly basis. In addition, the airport will analyze leakage once the service has operated for a full year to determine the trend in leakage to other airports. The Airport will report its success metrics in the q uarterly grant reports to the Department.La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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### Legal Sponsor

La Crosse Municipal Airport is owned and operated by the City of La Crosse, Wisconsin, and the City of La
Crosse is the legal sponsor responsible for administering the program; t he City of La Cros se is a government entity.

Clinton J. Torp Airport Manager La Crosse Municipal Airport 2850 Airport Road La Crosse, WI 54603

- 1264 608

- 789

- 7464 (office) 608

- 789

- 7469 (fax)



### Financial Controls

As the sponsor, La Crosse Municipal Airport and its governing body, The City of La Crosse , will be the responsible partie s for all fiscal matters and the Department's reporti ng requirements. The City of La Crosse is established as a public governing body. As a public entity

, the Department can be assured that proper financial controls are in place to guarantee that the Department ’s Grant will be used in accordance with any subsequent
agreement. The City of La Crosse Board understands that the Grant is a reimbur sable grant, meaning the City is

res ponsible for program expenditures and will submit invoices to the Department for reimbursement, based on a percentage of the total grant request.La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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### L ETTERS OF SUPPORTLa Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 26La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 27La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 28La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 29La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 30La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 31La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 32La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 33 -La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 34La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 35La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 36La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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- 0120 37La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development P rogram; Docket DOT

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