PROPOSAL UNDER THE 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

Docket DOT-OST-2010-0124 

City of Kearney, Nebraska 

DUNS# 085814960

NE 03 

Existing Air Service

Great Lakes Airlines provides three non-stop round trips to Denver each day. Typical 

non-refundable fares are $110 - $180 each way; refundable tickets are generally priced 

between $250 - $300 each way. Kearney Regional Airport is a Class III, and so does not 

handle larger regional aircraft on a scheduled basis. Great Lakes flies Beechcraft 1900 

pressurized twin engine turboprop aircraft or less frequently (due to fewer planes) 

Embraer 120 Brasilla pressurized twin engine turboprop aircraft with 19 or 30 seats, 

respectively. 

The City of Kearney has written a letter of support to the Department of Transportation 

for the Great Lakes proposal for Essential Air Service subsidy, with continuation of 

current service levels, with a subsidy amount of $1,965,740 annually. This proposal is 

for the two year period beginning November 1, 2010. 

Historical Service

In 1959 Kearney Regional Airport, then named Kearney Municipal Airport, began 

receiving commercial air service form Frontier Airlines. In 1976, Air Nebraska began 

serving Kearney, followed in 1979 by Pioneer Airlines. Kearney’s peak of three 

commercial carriers ended in 1980 with the discontinuation of service by Frontier. Two 

years later Air Nebraska also left the market. In 1986, Pioneer Airlines was replaced by 

GP Express Airlines – which remained as the commercial air service provider in Kearney 

until 1996 when all service was discontinued. 

In 1997 commercial air service to Denver was revived in Kearney by Great Lakes 

Airlines, then known as United Express, which is the current commercial air service 

provider at Kearney Regional Airport. A local effort to partner with the Department of 

Transportation and seek out new proposals for Essential Air Service lead to the 

resumption of service in Kearney by Great Lakes. It is that local energy and foresight, 

combined with funding from the Department of Transportation, which has made the 

Kearney Regional Airport the third busiest scheduled commercial service airport in 

Nebraska. Enplanements dropped off sharply after the terrorist attacks of 9/11, and again 

less drastically during the recent recession, following national trends. 

In the last year, the regional airport (Central Nebraska Regional Airport in Grand Island, 

Nebraska) in closest proximity to Kearney Regional Airport has changed their destination 
hub from Kansas City to Denver, bringing the two airports into conflict with some 

overlapping catchment areas. The City of Kearney does not desire to compete directly 

with another Essential Air Service Community, and believes that a market analysis and 

strategic plan may help Kearney Regional Airport succeed without marketing in 

competition with Grand Island. 

Recent Local Air Service Development Efforts

In 2006, the Air Transportation Committee (ATC) of the Chamber of Commerce and the 

Airport Advisory Board (AAB) of the City of Kearney partnered to re-brand the airport, 

which included a new logo and name change to Kearney Regional Airport. A marketing 

campaign to entice passengers to fly locally, “Make it simple to Fly: Simply Fly 

Kearney” was developed in collaboration with Great Lakes Airlines to include the 

following initiatives: 

• Public relations efforts including a PowerPoint template for presentation to key 

community and business leaders 

• Print ad campaign including brochures, mailings, newsletters, and more to 

Chamber members, service groups, etc. 

• Website design update 

• Billboard, TV, radio, and newspaper advertising campaign in surrounding region 

Enplanements did increase, partly as a result of these marketing efforts, and partly 

through the change of hub destination for Grand Island from Denver to Omaha, and later 

to Kansas City. The ATC and the AAB were also successful in securing 30-seat Brasilia 

aircraft complete with restroom facility and attendant for the Kearney Regional Airport. 

In 2009, a second marketing campaign designed to attract more travelers from 

surrounding communities was launched with the tagline, “Hop. Skip. Fly.”. It focused on 

the convenience and savings of flying locally rather than driving to a medium or large 

hub. Unfortunately, this campaign coincided with first an economic downturn and then a 

change in hub destinations for the Grand Island airport, Kearney’s closest commercial air 

service provider. Enplanements dropped for Kearney, although remained above the 

10,000 mark. 

Strategic Plan

In order to continue to maintain the level of service, infrastructure and facilities that the 

regional area needs, the Kearney Regional Airport must maintain AIP funding. To 

expand and improve service and prepare for challenges that are facing the regional air 

service industry and the Essential Air Service program in the next five to ten years, the 

Kearney Regional Airport must position itself to better understand the marketplace and 

how to promote and attract travelers and service providers. A professional market 

analysis and strategic plan will arm the City of Kearney will the data necessary to set 

realistic objectives and harness the support of private organizations to ensure success in 

the future. 
The Kearney Regional Airport Strategic Planning project will identify the market area 

for the airport as well as potential marketing and promotional activities to decrease 

leakage and increase the consumer base. Although dates are subject to adjustment 

depending on award date, the City of Kearney desires to release a Request for Proposals 

for a market research and strategic planning consultant in January of 2011. After a thirty 

day submittal period, the City will review proposals, conduct interviews and confirm a 

contract by March 1, 2011. Research should begin immediately, and should progress 

quickly with the assistance of local partner organizations that can gather information in 

collaboration with the selected consultant. On-site research and meetings with the 

consultant will be conducted by May 15, 2011. 

Monthly updates, in the form of written notices and web conferences between the 

consultant and the City of Kearney will ensure that the project remains on task and keep 

communication concerning unanticipated problems or new avenues of analysis open. A 

draft version of the market analysis should be presented to the stakeholders, consisting of 

the City of Kearney and partner organizations, for comment by July 15, 2011. A draft 

strategic plan for comment and final market analysis should be presented to the 

stakeholders by September 1, 2011. The final strategic plan and market analysis package 

should be submitted to stakeholders by September 30, 2011. A public review of the 

project will take place in a televised public hearing on October 11, 2011. 

Public-Private Partnerships and Funding

The Buffalo County Economic Development Council and Kearney Area Chamber of 

Commerce are extremely supportive of the Kearney Regional Airport and the economic 

impact of quality, affordable, local air service. Both organizations have worked with the 

City of Kearney on past projects involving the Kearney Regional Airport, most notably 

through the Chamber Air Transportation Committee involvement in the 2006 marketing 

campaign. Each organizations has committed to assisting with the Kearney Regional 

Airport Strategic Planning project through in-kind donations of $500 each of media and 

marketing assistance to gather data from the existing and potential business and industry 

base in the Kearney area. The Development Council and the Chamber of Commerce are 

committed to the success of the Kearney Regional Airport and as stakeholders will 

collaborate with the City of Kearney to ensure the successful implementation of a 

strategic plan. 

The Kearney Area Visitor’s Bureau frequently partners with the City of Kearney on 

projects, and will support the market analysis of the Kearney Regional Airport Strategic 

Planning project. Air transportation is essential to a thriving tourism economy. 

The University of Nebraska at Kearney is a partner with the City of Kearney at the 

Kearney Regional Airport, along with a privately owned fixed base operator, in providing 

pilot training and an aviation degree program. The University also has a significant 

interest in the continued success of the airport and the economic impact it has on the 

community of which the University is an important fixture. The University of Nebraska 
will provide an in-kind donation of $1,000 to assist with research for the market analysis 

portion of the project. 

The City of Kearney will contribute $5,000 from general fund revenues, allocated for 

airport marketing, and $10,000 from general fund revenues not previously allocated for 

airport use, for a total cash contribution of $15,000. No airport revenues will be used as 

match for this project. A federal request of $50,000 will be matched by the above 

described $17,000 of cash and in-kind local sources. 

A separate fund will be created by the City of Kearney, in keeping with City grant 

policies, for all project costs. The Airport Manager, Jim Lynaugh, and the Assistant to 

the City Manager, Suzanne Brodine, will collaborate to administrate the project and 

monitor the program funds with continuous approval form the Kearney City Council. 

Mr. Lynaugh has over 10 years experience in the management of the Kearney Regional 

Airport Budget, more than $1.3 million annually including over $200,000 annually in 

FAA funding. Ms. Brodine oversees all federal and state grant projects undertaken by the 

City of Kearney, currently totaling approximately $3.4 million in open awards. An 

independent audit of City accounts will be made at the end of the fiscal year to ensure 

that all funding is spent in the manner proposed. 

Monitoring and Evaluation

Kearney Regional Airport Strategic Planning project will be monitored on an ongoing 

basis through monthly web meetings between the City of Kearney and the selected 

consultant. Key milestones, listed here with estimated dates subject to award, will be 

required to be met on time through a contract between the City of Kearney and the 

consultant: 

January 2011 Request for Proposals for a market research and strategic planning 

March 2011 Execute consultant contract 

May 2011 On-site research and meetings with stakeholders and consultant 

July 2011 Draft market analysis submitted to stakeholders 

September 2011 Draft strategic plan and final market analysis submitted 

October 2011 Final strategic plan and market analysis package submitted 

October 2011 Public hearing to review project 

If proposed activities are in process, but not completed, and the City of Kearney feels that 

the selected consultant is justified in extending deadlines, the City of Kearney is 

committed to reallocating funding from the general fund to complete the proposed 

project. However, strict contract language and continual monitoring will ensure that the 

Kearney Regional Airport Strategic Planning project will be completed on budget. The 

City of Kearney is committed to carrying out the objectives indicated by the project to 

make the Kearney Regional Airport successful, including funding from general fund 

revenues to establish a marketing campaign and potentially move from a Class III to 

Class II airport. 
Long-term Project Commitment

The goals of the Kearney Regional Airport Strategic Planning project are self-contained 

and will be written into a contract for professional services with a consulting firm chosen 

through a public Request for Proposals process. The contract will require regular status 

updates and completion of milestones to ensure that the project is on schedule. If the 

goals of the project - the completion and presentation of an in-depth analysis to determine 

the viability of enhancing air transportation at the Kearney Regional Airport through 

marketing, potential class upgrade from III to II, and financial incentives for enhanced or 

expanded commercial service – are not met before the grant expires, the City of Kearney 

will terminate the contract with the consultant. The City would then develop a new plan 

of action to generate funding, through a mix of local private and public funds to complete 

the project on a lesser scale than presented in this application. Although the analysis 

could not be conducted with the level of detail desired to ensure that future plans are well 

structured, the City of Kearney is committed to establishing quantitative analysis to guide 

planned investment in service and infrastructure at Kearney Regional Airport. 

The long-term goals of the project extend beyond the grant period. The City of Kearney 

has dedicated funds from general revenues and is considering additional revenue sources, 

such as a dedicated percentage of an occupation tax, to support promotional activities and 

potential carrier incentives at the Kearney Regional Airport. In addition, local private 

partners are interested in supporting these activities but without a formal study a plan of 

action can not be developed and presented for funding. The City of Kearney and its 

private partners will use the results of this study to target communities and organizations 

in the catchment area that benefit from continued and expanded service and present a 

strategic plan to them for consideration for support and funding. 

Legal Sponsor

City of Kearney is the legal sponsor for this application and will receive program 

reimbursements.