# SMALL COMMUNITY AIR SERVICE

DEVELOPMENT PROGRAM

DOCKET OST

- 2012

- 0069

Respectfully submitted by:

The Bradford Regional Airport AuthorityJune 10, 2012

Ms. Aloha Ley

Office of Aviation Analysis

1200 New Jersey Avenue SE, W8 6

- 310

Washington, D.C. 20590

Dear Ms. Ley :

On behalf of the Bradford Regional Airport Authority and its supporting

jurisdictions, please find enclosed t he Br adford Regional Airport Authority’s proposal and

four (4) copies for consideration in the Sma ll Community Air Service Development

Program.

Bradford, Pennsylvania and t he surrounding region represents the kind of

community that the grant was designed to assist. We are a rura l community that has

struggled with air service issues in the pa st. As th e proposal will outline, t he Bradford

Regional Airport Authority has implemented many successful programs over the last

several years and the award of a small community grant will assist in the continued

development of air service in our region of Pennsylv ania

.

This proposal seeks to expand these marketing efforts through the assistance of

a Small Community Air Service Grant and return the community to self

- sufficiency

.

Thank you for your time and consideration.

Sincerely,

Thomas C. Frungillo

Thomas C. Frungillo , A.A.E

Airport Director**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 1 | Page Contents of Proposal

Background

Historical Air Service

Current Air Service

EAS Order Requesting Proposals

Goals

Air Service Development Acti on Plan

Summary of Request

Billboard Advertising

Newspaper Advertising

Radio Advertising

Travel Banks

Timetable

Funding

Monitoring the S uccess of the Program

Airport Business Council

Self

- Sustaining

Alternative Plan

Airport and Community Contact Information

Airport and Community Name

Additional Community Member

Project Sponsor

Endorsement**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 2 | Page Background

Since 1948 the Bradford Regional Airport has pr ovide d commercial air service to

residents in a 5 county region in Northwestern Pennsylvania and Cattaraugus County in

New York.

The Bradford R egional Airport is located approximately 16 miles south of the city of

Bradford and 20 miles south of the New Y ork border. Analysis of this market area show s

that the Bradford Regional Airport loses passengers from its multi

- county market area to

larger airports such as Buffalo Niagara International Airport , Erie International Airport,

and Pittsburgh International Airport . Each of these larger, competing airports is two or

more hours away from the airport’s primary market area.

The market population is over 220,000 and includes McKean County ( 43,537), Elk

County (32,268), Warren County (43,863), Cameron County (5,9 74), Potter County

(18,080) and Cattaraugus County, NY ( 79,688).

The Bradford Regional Airport Authority was created in 1967 under the Municipal

Authorities Act of 1945 and includes the counties of McKean, Elk, Cameron and Warren,

and is the governing bod y of the airport. Although the airport is located in McKean

County and derives the most benefit, the airport is a regional asset.

As part of the economic development strategy for McKean County retaining commercial

air service is critical for existing busi nesses and in the attrac tion of new businesses to

the region. The six (6) county market areas has always been a leader in the oil & gas

industry as well as the timber industry.

Development of the Marcellus Shale is expected to create more than 98,000 job s and

contribute upwards of $14 billion into the state’s economy , according to a recent report

by the Pennsylvania State University.

Oil and gas Exploration firms have significantly increased their activity in the region and

a re inquiring about commercial air service to locate or expand their facilities.

Historical Air Service

Between 1995 and 2000, Bradford Regional Airport experienced a decrease in its

scheduled depar tures, available seats, and the size of the aircraft serving the market.

After Sep tember 11, 2001, this downward trend in departures and seats accelerated and

reached an all time low in 2011

.

A significant portion of the annual demand for commercial air service travel in this multi

county market area is served by other airports

. In re cent years , passenger diversion to

more distant airports has increase d as low

- fare carrier s have begun operations in both

Buffalo and Cleveland, and as Pittsburgh International has decreased fares to maintain

its competitive position

.**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 3 | Page As shown in the tab le below, th e number of enplanements from the airport has declined

steadily since September 9, 2011

.

1995 2000 2003

Annual Enplanements 15,083 12,833 3,940

Scheduled Flight Departures 1,851 1,665 686

Scheduled Departing Seats 40,167 31,445 12,597

Av g. Seats per Flight 22 19 19

A nnual enplanements at Bradford Regional Airport peaked at 16,698 in 1992. Since

1994, enplaned passengers at the airport declined , reaching a 30 year low in 2003.

Annual enplanements in 2004 nearly doubled to 8,071 due in pa rt to the addition of a 3 rd

flight and competitive air fares. In November 2004, shortly after Colgan began providing

air service in Bradford, a fourth flight was added.

We project that t he strategic marketing plan outlined in this proposal will enable th e

airport to recapture lost market share and return to its historical levels of enplanements

. Increased enplanements will improve Silver’s load factor and financial performance in

the Bradford market and should allow the airport to reduce its dependence o n the EAS

subsidy program.

Year Enplanements

1990 13,815

1991 14,154

1992 16,698

1993 14,871

1994 15,970

199 5 15,083

199 6 13,977

199 7 14,184

199 8 13,377

199 9 12,868

200 0 12,833

2001 8,918

2002 6,109

2003 3,940

* 2004 8,071

2005 5,364

2006 3,609

2007 3,036

2008 4,954

2009 2,599

2010 2,854

2011 2,589**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 4 | Page Current Air Service

Bradford Regional Airport is served by a single carrier (United Expre ss /Silver Airways ) to

a single hub (Cleveland

- Hopkins) exclusively by the 19

- seat Beech 1900 aircraft . With

three (3) flights per day during the weekday, one (1) flight on Saturday and two (2) flights

on Sunday, additionally service is shared with Jamestown, NY further reducing the

available seats and reliability rate.

EAS Order Requesting Propo sals

The Department of Transportation on May 9 th , 2012 issued the Order Requesting

Proposals from air carriers interested in providing Essential Air Service beginning

October 1, 2012 through September 30 , 2014. Proposals are due June 21 , 2012.

In the O rder Requesting Proposals from air carriers, the Department of Transportation

addresses a Special discussion concerning Bradford :

The current average daily enplanements at Bradford are 8.8, commensurate with the

FAA Moderation and reform Act of 2012, Febr uary 14, 2012, P.L. 112

- 95 communities

will not be eligible for subsidized EAS if enplanements per day are fewer than 10 and the

community is located within 175 miles of a large or medium hub airport. Bradford is

located 76 miles from Buffalo Niagara Inter national Airport, a medium hub. As stated in

P.L. 112

- 95 , the fewer than 10 enplanement per day provision will be used measuring

FY2013 passenger data (October 1, 2012, through September 30, 2013). The data will

likely be available January 2014, and the co mmunities’ eligible status will be determined

accordingly. Any carrier that proposes service at Bradford should be aware of this

situation and aggressively promote and stimulate traffic at the community to ensure their

continued eligibility in the EAS Prog ram.

** Average daily enplanement requirement = total traffic divided by 313 service days divided by 2

Goals

In order to continue eligibility in the EAS Program, Bradford Regional Airport must

increase the average daily enplanements above the 10 passen ger requirement.

Bradford Regional Airport has forged a strong partnership wit h Silver Airways ; both

parties are committed to strengthening the competitive position of the airport. With more

competitive airfares

, convenient schedule, and the possibility of a change in the

destination hub to Pittsburgh International Airport, both parties will work hard at

marketing the new service and destination.

Pittsburgh International Airport has been working on an inter

- line baggage agreement,

where the airport woul d handle baggage and thus access to Low Cost Carriers (LCC’s)

such as Southwest would become an opportunity to increase passenger traffic.

This innovative concept may become a new approach for de

- hubbed airports such as

Pittsburgh to become the central hu b it once was and relieve congestion at other

airports.**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 5 | Page Additionally Marcellus Shale companies are locating to Pittsburgh as a hub for oil and

gas activity; direct service into Pittsburgh will allow these types on companies’ access

into our region.

The go als of our proposal are straightforward :

• E xpand the marketing and advertising campaign already started through th e

partnership of the Bradford Regional Airport

, Silver Airways

, Bradford Travel

a nd the Bradford Area Alliance (a CEO led group including twe lve of the

major employers in the region)

.

• P romote the advantages and convenience of the Bradford Regional Airport

throughout the region.

• E ducate the leisure traveler on internet technology and tools available to find

the lowest fares.

• Establish Travel bank with local businesses

• Establish a everyday / walk up fare to Pittsburgh or Cleveland

• Promote commercial air service to oil & gas companies

• R ecapture passengers who are now flying out of more distant airports.

• I ncre ase the number of average daily enplanements above the 10 passenger

requirement

.

• I ncrease the load factor and profitability of S ilver Airways, so the EAS

Program f unding is no longer require d

.

Air Service Development Action Plan

Summary of Request

The Bradford Regional Airport in pa rtnership with Silver Airways

. , Bradford Travel and

the Bradford Area Alliance ; hereby request s $ 1 2 0,4 00 under the Small Community Air

Service Development Program. This will be matched by $40,0 00 in local funding and

$20,4 00 in

- kind funding.

The $40,000 l ocal community match wil l be provided by the Bradford Area Alliance

.

The Bradford Area Alliance is a CEO led organization representing thirteen of the major

employers in the Bradford area. Members of the Alliance include Zippo Manufacturing

Company , W.R . Case Cutlery, KOA Speer Electronics Inc., Top Line Manufacturing,

American Refining Group, Allegany Bradford Corporation, Kessel Construction, Bradford

Regional Medical Center , University of Pittsburgh at Bradford

, Bradford Forest Products

, PNC Bank , Nor thwest Savings Bank

, and Beacon Light Behavioral Health Systems

.**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 6 | Page Th e $120 ,4 00 of marketing funds will be utilized for the following initiatives:

• Billboard advertising throughout the six (6) county regions to include the

southern part of New York State.

• Newspaper and radio advertising to promote the airports new air service and

marketing campaign.

• Promotion, marketing and set

- up of a local Travel Bank, where companies

will be educated on how to set up and use travel banks.

Billboard Advertising

Curre ntly the Bradford Region al Airport, Silver Airways and Bradford Travel Partnership

are utilizing billboard advertising in limited locations with b illboard advertising to be

placed in a different location every month for a period of three (3) months.

T he P artnership will double the billboard advertising to three (3 ) billboards a month to be

advertised through out the six county regions for a period of 2 years. It is our belief this

will increase public awareness and increase passenger usage of the air servi ce.

Billboard advertising will also keep the Bradford Regional Airport in the mind s of the

traveler which may normally choose another airport and which do es not use a travel

agency for their bookings.

The cost estimate of Billboard advertising for 2 yea rs

$2 ,0 00 / month times 24 months = $48,000

Newspaper Advertising

Limited Newspaper advertising has been provided through the partnership o f Bradford

Travel and the Bradford Regional Airport

. Advertisement listed sample fares t o the most

popular destinations, comparisons to flights out of Buffalo International Airport, and the

benefits of flying out of Bradford Regional Airport, such as; free parking, travel time, and

short security lines.

The primary newspaper s in the six (6) county regions incl ude t he Bradford Era

, t he

Ridgway Record and the Olean Times Herald

.

The advertisements would be place d in each of the three (3) newspaper s four (4) times

a month . The advertisements would include the advantages of flying out of Bradford

Regional Airpor t a nd sample pricing to the most popular destinations.

The cost estimate of the newspaper advertising for 2 years :

Average adve rtisement cost per newspaper: $5 00 / month.

$5 00 / month advertised in 3 new spapers for 24 months = $36,000**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 7 | Page Radio Advertising

Radio advertising will consist of similar content as in the newspapers.

The cost of a six (6) 30 second spots per day on WESB AM and WBRR, five days a

week

, is estimated as $4 00 per week.

We feel every other week for twenty (26) weeks for a 2 year period would build

awareness.

The cost estimate of the radio advertising for 2 years : $4 00 / week for 52 weeks (2 years ) = $20,800

Travel Banks

Companies in the Bradfo rd Area Alliance which include Zippo Manufacturing Company,

W.R. Case Cutlery, KOA Speer Electronics Inc., Top Line Manufacturing, American

Refining Group, Allegany Bradford Corporation, Kassel Construction, Bradford Regional

Medical Center, University of Pittsburgh at Bradford, Bradford Forest Products, National

City Bank, Northwest Savings B ank, and Beacon Light Behavioral Health Systems will

be asked to establish travel banks to show their commitment to using the air service.

Additionally a Marketing Representative will seek other businesses in the region to

support and provide assi s tance i n establishing and marketing travel banks.

The cost estimate for salary, time, travel, etc.:

$ 300 / week for 52 weeks (1 year) = $15,6 00

Timetable

Start 3 Months 6 Months 12 Months 18 Months 24 Months

Develop

Marketing

Plan and

Campaign

Plan

Visit local

travel

agencies and

set

- up

program

Set beginning

markers Advertise

Campaign

Month ly

progress

reports

submitted

Passenger

levels

increase by

75 a month Advertise

Campaign

active

Passenger

levels

increase by

100 a month

Monthly

progress

repo rts

submitted Advertise

Campaign in

progress

Passenger

levels

continue to

incr ease by

100 a month

Monthly

progress

reports

S ubmitted Advertise

Campaign in

progress

Passenger

levels

continue to

increase by

2 00 a month

Monthly

progress

reports

submit ted Advertise

Campaign

progress

Comes to an

end

Passenger

levels

continue to

in crease by

2 00 a month

Monthly

progress

reports

Submitted

Program

judged a

success**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 8 | Page Utilizing the 2,589 (215 enplaned passengers per month average) enplanem ents for the

year of 2011 as a base line starting point, it is the goal of the Bradford Regional Airport

to increase the average daily enplanements above the 10 passenger requirement.

5,500 total passenger / 313 / 2 = 8.8 daily passengers

** Average daily enplanement requ irement = total traffic divided by 313 service days divided by 2

1 st Year Goals

2011 1 st Month 2 nd Month 3 rd Month Remaining 9 Months Total

5,500 75 75 75 100 6,625

6,625 total passenger / 313 / 2 = 10.58 daily passengers

2 nd Year Goals

20 12 2 00 ad ditional passenger per month for 12 months Total

6,625 2,400 9,025

9,025 total passenger / 313 / 2 = 14.4 daily passengers

Funding

The following are partners for this proposal:

Bradford Regional Airport Authority

Silver Airways

Bradford Travel

Bradford Area Alliance

The Bradford R egional Airport Authority, as the legal sponsor of the application, will be

the administrator of the program. The Airport Authority will oversee and manage the

marketing campaign and advertising through the Airport D irector. The Airport Authority

will monitor the program funds and how they are spent. The Airport Authority will also

provide monthly reports on the program and its progress.

The other partners will provide the funding necessary for the local share of the program.

A funding breakdown for the program follows:

Funding Breakdown

Goals Local Funds / In Kind Contribution Federal Funds Totals

Billboard

Advertising $24,000 $24,000 $48,000

Newspaper

Advertising $18,000 $18,000 $36,000

Radio Advertising $10,4 00 $10,400 $20,800

Establish /Market

Travel Banks $ 7,800 $ 7,800 $15,600

Total $60 ,2 00 $60 ,2 00 $120,400

% of Total 50 % 50 % 100 %**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 9 | Page Monitoring the S uccess of the Program

The highlights for judging the program a success include the following:

• Passenge r e nplanements increase

• Increased p ublic perception and awareness of the new and improved air

service at the Bradford Regional Airport

.

• Re

- capture lost passengers due to past air service issues

• Advertise and m arket new areas such as the southern part of New York

State. This will be measured through the air service survey conducted by the

University of Pittsburgh at Bradford intern.

The ultimate success of the program will be an additional 75 passenger enplanements a

month in the first year, and 2 00 addi tional enplanements per month in the second years.

Public perception and increased awareness will also be considered a success of the

program. Student interns from the University of Pittsburgh at Bradford will conduct a

survey of the flying public prio r to the initiation of the program and again at the end of

both the first and second year of the program to measure public awareness.

Reports monitoring the success of the program will be submitted on a monthly basis.

Airport Business Council

As par t of the marketing campaign and a way of monitoring the success of the program,

we will form an Aviation Business Council with representatives from the Bradford Area

Alliance and other major corporate travelers in the region. Working with Bradford Travel,

S ilver Airways and the Council, we will review implementation of the program and

progress on enplanements on a monthly basis.

The participation of the Council members in our program will give them ownership in the

process and a shared commitment to the ke y objective of increasing enplanements. The

business community is committed to maintaining viable commercial air service in

Bradford. The private sector will contribute $40,000 and will participate in the

management and monitoring of the program.

S elf

- Sustaining

The goal of the program is increasing patronage of commercial air service offered at the

Bradford Regional Airport. Changing the public’s perception of the airport and the air

service will be a key objective of the program. Due to past air service, non

- competitive

airfares , and a poor and inadequate schedule

, area residents have tended to overlook

Bradford R egional Airport and fly from other airpo rts. Once we can change the

perception of the past, it is our belief that the new air service an d airport can become**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 10 | Page self

- sustaining , and ultimately eliminat e the need for funding through the Essential Air

Service Program.

Alternative Plan

T he $12 0,4 00 of marketing funds will be utilized for the following initiatives:

• Billboard advertising throug h out the six (6) county regions to include the

southern part of New York State

• Newspaper and radio advertising to promote the airports new air service and

marketing campaign.

If a particular marketing program is deemed un succe ssful in promoting the new air

service and increasing enplanements through an evaluation process developed by the

Airport Business Council and analyzed by the University of Pittsburgh at Bradford i ntern

, the funds will be re

- directed in to an other marketing program which has been dee med a

succe ss through the same process. A new funding budget will be developed and

implemented.

Additional ly, alternative marketing programs will be proposed a nd developed by the

Airport Business Council and evaluated through the University of Pittsburg h at Bradford

– Internship Program.

Alternative marketing may include, but not limited to:

1) Part

- time marketing staff position through the University internship program.

2) Marketing through on site visits to area businesses and travel agencies

.

Airport a nd Community Contact Information

Airport and Community Name

Bradford Regional Airport (BFD)

212 Airport Drive

Lewis Run, PA 16738

Contact:

Thomas C. Frungillo, A.A.E

Airport Director

Community and Region Served: Bradford, Pennsylvania and the surroundi ng area of six

(6) counties in Northwestern Pennsylvani a and the Southern Tier of New York State

represented by the Bradford Regional Airport Authority.**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 11 | Page Additional Community Member s

This proposal is supported by the Bradford Area Alliance

, Bradford T ravel a nd Silver

Airways

.

Project Sponsor

The Bradford R egional Airport Authority, ope rator of the Bradford Regional Airport

, is the

official sponsor in submitting this application.**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 12 | Page ENDORSEMENT

The following ind ividuals and organizations have endorsed this recommendation and

offer their support :

111 th Congressional District

Congressmen Glenn “GT” Thompson

Pennsylvania Senate (25 th Senatorial District)

Senator Joseph Scarnati

Pennsylvania State Representative 6 5 th District (Mc Kean, Forest and Warren )

Representative Kathy Rapp

Pennsylvania State Representative 66 th (McK ean, Cameron and Potter )

Representative Martin Causer

McKean County Commissioners

Joseph DeMott, Commissioner

Al Pingie, Commissioner

Cliff Lane , Commissioner

Elk County Commissioners

Dan Freeburg, Commissioner

June Sorg, Commissioner

Janis Kemmer , Commissioner

Cameron County Commissioners

Glen F i ebig, Commissioner



### H. James Thomas , Commissioner

Phil Jones, Commissioner

Warren County Commissione rs

John Eggelston

, Commissioner

John Bortz

, Commissioner

Steven Vance, Commissioner

Bradford Regional Airport Authority

Joseph DeMott , Chairman

Ron Dankesreiter, Vice Chairman

Murray Marsh , Treasurer

Robert Huber, Board Member

John Satterwhite, Board Mem ber

Dan Freeburg , Board Member

Fred Fesenmyer, Board Member

Max Brady , Board Member

John Eggelston, Board Member**Bradford Regional Airport**

**Small Community Air Service Development Program**  **June 2012**



### 13 | Page Bradford Regional Airport Advisory Committee

Amy Kessler, Transportation Director, North Central Regional Planning and

Development Commission

Ray McMahon, past Executive Director, McKean Co unty Economic Development

Agency

Pennsylvania Department of Transportation

Brian Gearhart, Director of Aviation

North Central Regional Planning and Development Commission

Eric Bridges, Executive Director

C ity of Bradford

Tom Riel, Mayor

City of Bradford, Office of Economic and Community Development

Sarah Andrews, Executive Director

Bradford Area Chamber of Commerce

Ron Orris, Executive Director

Allegheny National Forest Vacation Bureau

Linda Devlin, Exe cutive Director

Bradford Area Alliance

Martin M. Glesk, Executive Director

Greg Booth, President & CEO, Zippo Manufacturing

Jeannine T. Schoenecker , President & COO, American Refining Group, Inc.

Thomas R. Bromeley, President & CEO, ABC/Topline Manufactur ing

Scott Rice, Chairman & President, KOA Speer Electronics Inc.

Dr. Livingston Alexander, President, University of Pittsburgh at Bradford

Tim Finan , President & CEO, Bradford Regional Medical Center

Fred Fesenmyer, President, Minard Run Oil Co.

John Satte rwhite, Publisher, The Bradford Era

Richard Kessel, President, Kessel Construction, Inc.

Max Brady, Regional Manager, PNC Bank

William Pantuso, Senior Vice President, Northwest Savings Bank