La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

1

APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120

SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet, a 

completed standard form SF424 and the full application proposal on www.grants.gov. 

For your preparation convenience, this Summary Information schedule is located at 

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

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL NUMBERING SYSTEM (DUNS)

NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER (EIN) OR TAX ID.

Legal Sponsor Name: City of La Crosse, Wisconsin (La Crosse Municipal Airport)

DUNS Number: 968433334

EIN/Tax ID: 39-6005490

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING:

1. LA CROSSE, WISCONSIN 

2.

3.

4.

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE APPLICANT(S) AIRPORT(S) (ONLY 

PROVIDE CODES FOR THE AIRPORT(S) THAT ARE ACTUALLY SEEKING 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 Program; Docket DOT-OST-2013-0120

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D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION, AND IF A 

CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. WI-03 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

 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. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. City of La Crosse 1.

2. La Crosse County 2.

3. 3.

4. 4.

5. 5.

G. PROJECT PROPOSAL: (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. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

3

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

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) $1,009,500

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) $1,129,950

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/Ft. 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. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372 PROCESS?

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. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE EXPLANATION)

 No Yes (explain) 

_________________________________________________________________________________________________

___________________________________________________________
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

4

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 Fares Versus Domestic Fares at Other Airports in the Lower 48 United States .................................14

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

Project Funding ....................................................................................................................................................21

Proposed Implementation Timeline .....................................................................................................................22

PROJECT MONITORING AND FINANCIAL CONTROL...................................................................... 23

Success Metrics ...................................................................................................................................................23

Legal Sponsor......................................................................................................................................................24

Financial Controls ................................................................................................................................................24

LETTERS OF SUPPORT ..................................................................................................................... 25
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

5

INTRODUCTORY LETTER
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

6

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 valued at $120,450 to provide a minimum revenue guarantee for service from La Crosse

to Dallas/Ft. Worth on the American Airlines 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 down 18.0% since it peaked in 2004, and total 

domestic and international traffic was down 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, the 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 study completed in September 2012 using data through First Quarter 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 

available 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

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

7

AIR SERVICE OVERVIEW

Catchment Area and Alternate Airports

The 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 also draws 

some traffic from other areas of Wisconsin and Minnesota. The July 1, 2012, Census Bureau population estimate 

of the La Crosse/Onalaska metropolitan statistical area was 135,298 residents; the population of the metropolitan 

statistical area grew 5.0% since 2000 from 128,887 residents. 

Other airports with 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 miles; the airport in Madison is 137 

miles, and Minneapolis/St. Paul International Airport 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 Times from La Crosse Municipal Airport and the Location of the Airports in 

Minneapolis/St. Paul, Rochester and Madison.

Location of Airport Road Miles

Minneapolis/St. Paul 147 Miles

Rochester 74 Miles

Madison 137 Miles
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

8

Existing 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, and 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 per Day Each Way by Market and Carrier at La Crosse – August 2013 

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

* The 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

flights 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 airlines. 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 meetings, the forum where each meeting took place and the date 

of the meeting are shown in Exhibit 3.

Airline Destination

Flights per Day 

Each Way

Seats per 

Flight

Seats per Day 

Each Way

Flights per Day 

Each Way

Seats per 

Flight

Seats per Day 

Each Way

Capacity 

Change

American ORD 4 5/7 44 209 4 5/7 44 209 0.0%

Total 4 5/7 44 209 4 5/7 44 209 0.0%

Delta DTW 1 50 47 6/7 50 45 -3.4%

MSP 3 5/7 50 184 3 50 148 -19.3%

Total 4 4/7 50 231 3 6/7 50 194 -16.1%

Grand Total 9 2/7 47 439 8 4/7 47 402 -8.4%

August 2012 August 2013
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

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 route. These incentives are included as part of this proposal.

Date Forum Location Airline(s)

October 2012 Sixel Consulting Small Airports Conference Portland, ME American

Frontier

March 2013 Network USA Conference San Antonio, TX Allegiant

Sun Country

United

March 2013 Delta Air Lines Headquarters Atlanta, GA Delta

April 2013 Sixel Consulting Small Airports Conference Portland, ME American

Frontier

SkyWest
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

10

AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

Capacity Trends

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 Each Way by Carrier at La Crosse Municipal Airport Year-End Fourth Quarter 2003-2012 (DOT T100 data) 

This Section Continued on Next Page

9 6

135 143 144

165

195 207

233

195

220

301

410

380

325 341

312

295

273

252 253

2 6 3 1 3 8

4

424

577 561

474

506 507 502 506

447

473

0

100

200

300

400

500

600

700

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Seats per Day Each Way

American Delta/Northwest Midwest All Carriers
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

11

Traffic Trends

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 the 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 Domestic and International Origin and Destination (O&D) Passengers at La Crosse Municipal Airport YearEnd Fourth Quarter 2003-2012 (DB1B data)

This Section Continued on Next Page

0

50,000

100,000

150,000

200,000

250,000

300,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

209,540

224,900 221,890 215,000 218,010

197,500

178,320 182,910 169,630 162,220

12,140

15,420 15,510 16,370 15,110

15,150

13,120 15,200

14,840

14,210

Annual Origin and Destination (O&D) Passengers

Annual Domestic O&D Annual International O&D

176,430 184,470

198,110

191,440

212,650

231,370 233,120 237,400 240,320

221,680
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

12

When La Crosse's annual O&D data is translated to passengers per 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 YearEnd Fourth Quarter 2003-2012 (DB1B data)

0

50

100

150

200

250

300

350

400

450

500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

287 307 304 295 299

270

244 251 232 222

1 7

2 1 2 1 2 2 2 1

2 1

1 8 2 1

2 0 1 9

Passengers per Day Each Way (PDEW)

Domestic PDEW International PDEW

241 252

272 262

291

317 320 328 325

304
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

13

Domestic Fare Trends

As airlines have cut capacity in La Crosse since capacity peaked in 2004, fares have increased. Since La 

Crosse's capacity 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 fell 18.0% to 473 seats per day 

each way 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 Data)

This Section Continued on Next Page

424

577 561

474

506

507 502 506

447

473

287

307 304

295 299

270

244 251

232 222

$181 $183 $185

$211

$222

$267

$255

$264

$270 $266

$100

$150

$200

$250

$300

0

100

200

300

400

500

600

700

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Average One-Way Fare

Seats and Passengers per Day Each Way

Seats per Day Each Way Domestic PDEW Average Domestic One-Way Fare
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

14

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 Municipal Airport and Cumulative Change since 2003 Versus the 

Average Lower 48 Airport

This Section Continued on Next Page

$181 $183 $185

$211

$222

$267

$255

$264 $270 $266

$138 $134 $136

$149 $149

$159

$143

$157

$171 $177

1.1% 2.4%

16.5%

22.7%

47.5%

41.0%

46.1%

49.0% 47.1%

-3.1% -1.1%

8.1% 7.9%

15.2%

3.6%

14.1%

24.1%

28.5%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$0

$50

$100

$150

$200

$250

$300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Cumulative Fare Change

Average One-Way Domestic Fare

La Crosse Domestic Fare Average Lower 48 Airport Domestic Fare

La Crosse Cumulative Change Average Lower 48 Airport Cumulative Change
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

15

La Crosse Domestic Fares Relative to Other High Fare Airports 

Not only did La Crosse have high fares relative to the average Lower 48 airports, the average domestic fare of 

$266 at La Crosse ranked as the sixth highest fare among all Lower 48 airports with at least 75,000 origin and 

destination passengers in 2012. Only Dothan, Williston, Minot, Columbus (Georgia) and Lawton generated higher 

average domestic fares 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 Fare Airports with at Least 75,000 Domestic O&D Passengers in 2012 (DB1B Data/Includes Data for All Carriers)

Rank Market

Domestic O&D 

Passengers

Domestic 

PDEW

Average Domestic 

One-Way Fare

1 Dothan 80,670 110 $325

2 Williston 78,760 108 $292

3 Minot 420,570 575 $283

4 Columbus, GA 112,310 153 $278

5 Lawton 96,860 132 $276

6 La Crosse 162,220 222 $266

7 Aspen 365,570 499 $264

8 Grand Forks 301,120 411 $263

9 Lake Charles 100,750 138 $261

10 Wausau 203,240 278 $260

11 Yuma 132,590 181 $259

12 Kalamazoo 206,400 282 $258

13 Alexandria 241,500 330 $258

14 Northwest Arkansas 933,230 1,275 $258

15 Bakersfield 245,450 335 $256

16 Green Bay 468,320 640 $256

17 Jackson Hole 488,600 667 $256

18 Monroe 178,220 243 $253

19 Klammath Falls 110,490 151 $253

20 San Angelo 100,250 137 $253

21 Fort Smith 150,960 206 $251

22 Brownsville 139,250 190 $250

23 Abilene 134,260 183 $248

24 Shreveport 488,910 668 $248

25 Mobile 479,670 655 $247

Year-End Fourth Quarter 2012
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

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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 the 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 Municipal 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% 

Location of Airport Road Miles

Minneapolis/St. Paul 147 Miles

Rochester 74 Miles

Madison 137 Miles

42.8%

51.7%

0.6%

4.9%
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

17

higher versus Rochester. The average fare paid at each of the four airports, based on the leakage study findings 

is illustrated in Exhibit 11. 

Exhibit 11: Average Fare Paid by La Crosse Catchment Area Passengers by Originating Airport – April 2011 - March 2012 

(September 2012 Leakage Study Data)

$0 $100 $200 $300

La Crosse

Minneapolis

Madison

Rochester

$265

$198

$205

$228
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

18

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 most 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 service 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 airport 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 revenue 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 2012, 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 not 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

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

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, the 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.

Rank Market PDEW Average Fare Rank Market PDEW Average Fare

1 LAX/SNA/ONT/BUR/LGB 8.7 $274 14 AUS 1.8 $235

2 PHX/AZA 8.0 $212 15 SMF 1.5 $296

3 DFW/DAL 7.8 $248 16 TUS 1.4 $209

4 LAS 7.2 $230 17 ELP 1.2 $366

5 MCO/SFB 6.7 $207 18 HNL 1.2 $420

6 MIA/FLL/PBI 5.3 $225 19 JAX 1.1 $284

7 SFO/OAK/SJC 4.9 $275 20 ABQ 1.1 $262

8 RSW 3.6 $206 21 SJU 1.1 $445

9 IAH/HOU 3.2 $333 22 CUN 0.9 $250

10 TPA/PIE 3.2 $239 23 RNO 0.9 $243

11 SAT 3.1 $294 24 OKC 0.8 $367

12 SAN 3.0 $268 25 PNS 0.5 $241

13 MSY 1.8 $296

25 Largest Markets 66.4 $247

All Markets 74.9 $261

All Carriers All Carriers
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2013-0120

20

Goals

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 downward trends in airline capacity and airline traffic at La Crosse Municipal Airport

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

 Recapture traffic 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 American Eagle to operate La Crosse-Dallas/Ft. Worth 

service, the airport and the community may request the Department consider redirecting award funding to assist 

in recruiting other service. 

In addition to the proposed Dallas/Ft. Worth service, the airport and 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 during meetings with these airlines.

PROJECT IMPLEMENTATION, MONITORING AND FUNDING

Public / Private Partnerships

The airport, local governments and business organizations in the region understand the importance of affordable 

air fares, and the relationship between 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 economy of La Crosse and using the local airport 

when traveling both for business and leisure. Excluding the City of La Crosse (and the Airport), there are 19

organizations partnering to improve air service in La Crosse. These 19 organizations have pledged total cash 
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

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funding of $159,500 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 Development 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 cash 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 contributions 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 Funding

Funding Source Grant Cash In-Kind Total

Department of Transportation $750,000 $750,000

Community $159,500 $159,500

Airport $100,000 $120,450 $220,450

Total $750,000 $259,500 $120,450 $1,129,950
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

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Proposed Implementation Timeline

The proposed implementation timeline for the project assumes the Department will award Small Community Grant 

Funding in September 2013. Once the award is announced, La Crosse Municipal Airport will advise American of 

the grant award. Based on American's planning lead times and the need for advance bookings, we assume it 

could not begin service until later half of 2014 at the earliest, and we have conservatively assumed the service 

could not begin until September 2014. The first two milestones on the Airport's timeline are to execute the grant 

agreement 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 new route and working with the airline to monitor advance bookings. The Airport will continue its 

marketing program 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 Department throughout the proposed three-year term of the 

minimum revenue guarantee. The proposed project timeline is shown in Exhibit 15.

Exhibit 15: Proposed Project Timeline

Activity/Project Milestone Estimated Dates

SCASD Grant Award Announcement September 2013

Execute Grant Agreement with DOT September/October 2013

Airline Meetings November 2013 - March 2014

Announce Service April 2014

Publish Schedule April 2014

Market Route (Pre-Launch) April-August 2014

Monitor Advance Bookings April-August 2014

Adjust Marketing Plan Based on Advance Bookings April-August 2014

Begin Service September 2014

Market Route (Post-Launch) September 2014 and Beyond

Operate Service with MRG September 2014 - August 2017

Monitor Route Performance Sepetmber 2014 - August 2017 and Beyond

Submit Grant Status Reports to DOT Quarterly 3Q 2013 - 3Q 2017
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

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PROJECT MONITORING AND FINANCIAL CONTROL

Success Metrics

The ultimate success of the program 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 markets served by the airline, increase traffic at the airport 

and reduce the amount of leakage to the airports in Minneapolis/St. Paul, Rochester and Madison. The Airport

will work with the airline to continuously monitor 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 

advance 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 downward 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 traffic 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 compare 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 quarterly grant 

reports to the Department. 
 

 

La Crosse Municipal Airport; La Crosse, Wisconsin

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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; the City of La Crosse 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 parties for all fiscal matters and the Department's reporting 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 reimbursable grant, meaning the City is 

responsible for program expenditures and will submit invoices to the Department for reimbursement, based on a 

percentage of the total grant request.
 

 

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LETTERS OF SUPPORT
 

 

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La Crosse Municipal Airport; La Crosse, Wisconsin

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