### APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST -2014-0133

SUMMARY INFORMATION 1



### 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/SCA SDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET 

### (D&B) DATA UNIVERSAL

NUMBERING SYSTEM 

### (DUNS) NUMBER 

### , INCLUDING 

### +4, EMPLOYEE IDENTIFICAT ION NUMBER


### (EIN) OR TAX ID



### . Legal Sponsor Name:

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

B. L IST THE 

### N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING 

### :
1.____________________________________________________

2.____________________________________________________

3.____________________________________________________

4.____________________________________________________

C. P ROVIDE THE FULL AIRP ORT NAME AND 

### 3-L ETTER 

### IATA A IRPORT 

### C ODE FOR THE

APPLICANT 

### ( S 

### ) AIRPORT 

### ( S 

### ) (O NLY PROVIDE CODES FOR THE AIRPORT 

### ( S 

### ) THAT ARE ACTUALLY

SEEKING SERVICE 

### ).

1. 2

.
3

. 4

.

1 Note that the Summary Information does not count against the 20

- page limit of the SCASDP application.

### D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY

THE 

### F EDERAL 

### A VIATION 

### A DMINISTRATION UNDER 

### 14 CFR P ART 

### 139? (I F 

### “N O 

### ”, P LEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER 

### P ART 

### 139 IS PENDING 

### .)

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________ D. L IST THE 

### 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION 

### , AND IF A CONSORTIUM 

### , TO EACH PARTICIPATING COMMUNITY



### . 1. 2

.
3

. 4

.

E. A PPLICANT 

### I NFORMATION 

### : (C HECK 

### A LL 

### T HAT 

### A PPLY 

### )

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

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

If previous recipient: Provide year of grant(s) :_______________________________; and, the text of the grant agreement section(s) setting forth the scope of the grant project :

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

F. P UBLIC 

### /P RIVATE 

### P ARTNERSHIPS 

### : (L IST 

### O RGANIZATION NAMES 

### )

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

### G. P ROJECT 

### P ROPOSAL 

### :

1. G RANT 

### G OALS 

### : ( CHECK ALL THAT APPLY 

### )

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration
Regional Service Surface Transportation Professional Services 2



### Other (explain below)

2. F INANCIAL 

### T OOLS 

### T O 

### B E 

### U SED 

### : ( CHECK ALL THAT APPLY 

### )

Marketing (including Advertising): promotion of the air service to the public

Start

- up Cost Offset : offsetting expenses to assist an air service provider in setting up a
new station and starting new service (for example, ticket counter reconfiguration)

R evenue Guarantee : an agreement with an air service provider setting forth a minimum
guaranteed profit margin, a portion of which is eligible for reimbursement by the
community

Recruitment of Air Carrier: air service development activities to recruit new air service,
including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers : waiver of airport fees, such as landing fees, to encourage new ai r service;
counted as in-kind contributions only
Ground Handling Fee : reimbursement of expenses for passenger, cabin, and ramp (below
wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from pa rticipating parties for
the purchas e of air travel on an air carrier , with defined procedures for the subsequent use
of the pledges or the deposited funds; counted as in-kind contributions only

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc.

### 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)

I. P ROJECT 

### C OST 

### : D O NOT ENTER TEXT IN SHADED AREA



### L INE 

### D ESCRIPTION 

### S UB 

### T OTAL 

### T OTAL 

### A MOUNT



### 1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non

- airport cash funds

3 Total local cash funds ( 3a + 3b )

4 TOTAL CASH FUNDING ( 1+2+3 )

In

- K ind contribution

5 a Airport In

- Kind contribution **

5b Other In

- Kind contribution **

5 TOTAL IN

- KIND CONTRIBUTION

( 5a + 5b )

6 TOTAL PROJECT COST ( 4+ 5 )

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.

### K. I S 

### T HIS 

### A PPLICATION 

### S UBJECT 

### T O 

### R EVIEW 

### B Y AN 

### A FFECTED 

### S T ATE 

### 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 S tate for review.

c. Program is not covered by E.O. 12372.

L. I S 

### T HE 

### L EAD 

### A PPLICANT OR 

### A NY 

### C O 

### -A PPLICANTS 

### D ELINQUENT 

### O N 

### A NY 

### F EDERAL 

### D EBT 

### ?

(I F 

### “Y ES 

### ”, P ROVIDE 

### E XPLANATION 

### )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________ APPLICATION CHECKLIST

I NCLUDED 

### ? I TEM



### For Immediate Action
Determine Eligibility

New Grants.gov users must r egister with www.grants.gov

. Existing Grants.gov users must verify ex isting www.grants.gov account has not expired and the Authorized Organization R epresenta tive (AOR) is current

. For Submission by 5:00 PM EDT on July 31, 2014
Communities with active SCASDP grants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for selection in FY2014
Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

S ummary Information schedule complete and used as cover sheet (see Appendix B )

A pplication of up to 20 one - sided pages (excluding any letters 

### from the community or an air carrier showing support for the application ) , to include:

• 

### A description of the community’ s air service needs or deficiencies

.

• 

### A strategic plan for meeting those needs under the Small Community Program

.

• 

### A detailed description of the funding necessary for implementation of the community's project.

• 

### An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

• 

### Designation of a legal sponsor responsible for adminis tering the program

.

• 

### A motion for confidential treatment (if applicable)

– see Appendix D below.Docket DOT

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# Proposal f or A Grant Under The Small Community Air Service Development Program

Submitted by 

# Chattanooga Airport

DUNS # 556328334 Congressional District # 3Proposal under the Small Community Air Service Development Program

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## Table of Contents

1. Proposal Overview

................................ ................................ ............ 3 Airport Name and Contact Information

................................ ................................ 3 Legal Sponsor of Proposal

................................ ................................ ................. 3 Community Partner for Application

................................ ................................ ..... 3 Grant Eligibility

................................ ................................ ................................ 3 Project Description

................................ ................................ ........................... 3 CHA Experiences High Fares Causing Traff ic Passenger Leakage

............................. 4



### 2. CHA Service Area and Vibrant Economy

................................ ............... 7
CHA Service Area

................................ ................................ ............................. 7 The Chattanooga Local Economy is Diverse and Growing

................................ ....... 8 Strong Higher Education

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



### 3. CHA Air Service Deficiency

................................ ............................... 10 Addressing the Air Service Deficiency: Northeastern US Air Service Access

............ 11 The Fare Issue: CHA vs. ATL and BNA

................................ .............................. 12 Current Grant Request Differs from SCASDP Grant Award in FY 2004

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



### 4. SCASD Grant Administration Plan

................................ ..................... 15 Requested Term of Grant

................................ ................................ ................ 15 Funding and Revenue Sources

................................ ................................ ......... 15 Revenue Guarantee

................................ ................................ ........................ 15 Marketing and Advertising Plan

................................ ................................ ........ 1 6 In

- Kind Funding

................................ ................................ ............................. 16 Previous Air Service Development Efforts

................................ .......................... 16 Ensuring Self

- Sufficiency

................................ ................................ ................. 17Proposal under the Small Community Air Service Development Program

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# 1 . Proposal Overview

Airport Name and Contact Information

Chattanooga Airport (CHA )

Terry L. Hart President and CEO 1001 Airport Road, Suite 14 Chattanooga, TN 37421 Thart@chattairport.com 423

- 855

- 2202



### Legal Sponsor of Proposal

The Chattanooga Metropolitan Airport Authority is the official legal sponsor of the Small
Community Air Service Development Program application.



### Communi ty Partner for Application

The Chattanooga Area Chamber of Commerce joins the A irport in the submission and
support of this application, and is participating in the community matching portion of the
funding request for the grant.



### Grant Eligibility

The Chattanooga Airport is fully eligible based on the criteria put forth in the Department of
Transportation Docket DOT

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.



### Project Description

The plan for grant implementation is to address considerable air service def iciencies due to

a lack of north eastern US acc ess from the greater Chattanooga region. Specifically, there is
a strong community of interest between the Chattanooga region and the New York City
metropolitan area, and the objective of this grant application is to gain nonstop a cce ss to
the NYC metro region.Proposal under the Small Community Air Service Development Program

Docket DOT

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– 0113 4 CHA is a market characterized by high fares and suffers from a lack of capacity due to its
proximity to Hartsfield

– Jackson Atlanta International Airport (ATL) , which is approximately

a two hour or 124 mile drive from Chattan ooga Airport. However, due to severe traffic
congestion in the greater Atlanta metropolitan region, this drive time can be closer to three

to four hours since ATL is on th e south side of the metro area . Chattanooga region residents
prefer to utilize their hometown airport, and the objective of this grant application is to
increase ridership at CHA and to diversify the travel options that the local community has

for business and leisure travelers at CHA.

The northeastern US is a major market for the Chatta nooga Airport
, capturing over 26 % of
all pass engers traveling to and from CHA. This is a top region for CHA passenger traffic, and
increased capacity would be a great benefit to the community. Nonstop service to/from the
New York City metro region would allow the community to utilize local air service, rather
than contributing to the passenger leakage that opts to travel to ATL for increased air

service options.



# CHA Passenger and Revenue Distr ibution

CY 201 3

CHA Experiences High Fares C ausing Passenger Traffic Leakage

In addition to lack of nonstop options at CHA compared to regional competing airports, CHA
experiences fares that are significantly higher than both Atlanta and Nashville, the two
primary competing airports in the region for CHA passenger traffic. Additionally, CHA
average one way gross fares are approximately 10% higher than the National Average as of

CY 2013.Proposal under the Small Community Air Service Development Program

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# CHA Gross Fare Premium vs. Regional Airports

and National Average

The presence of higher fares than other regional airports exacerbates t he air service
deficiency at CHA

, and increased capacity with an emphasis on the New York City metro
region may bring greater fare discipline to the market due to increased competition

.

A revie w of the CY 2013 population

- to

- O&D passenger traffic for CHA and competing
regional airports ATL and BNA further illustrates the air service deficiency that exists in
Chattanooga. It is clear that significant passenger traffic leakage exists at C HA, and the

intent of thi s grant application is to curtail such leakage in addition to increasing access to
the national transportation system for the greater Chattanooga community.



# CHA Passenger Traffic/Air Service Deficiency vs. ATL/BNA
CY 2013Proposal under the Small Community Air Service Development Program

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– 0113 6 The grant funding request is for $50 0, 0 00 with a community match of $250,000, for a total
of $750 ,000 in cash contributions to aid in risk mitigation for increased air service acces s to/from the New York City metro region, and by extension the northeastern US

. Many

letters of support from the community are attached, illustrating the high level of support for

this proposal

. The Chattanooga Metropolitan Airport Authority respectfully appreciates the
Department giving consideration to its grant application.Proposal under the Small Community Air Service Development Program

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# 2. CHA Service Area and Vibrant Economy

CHA Service Area

The Chattanooga Airport is a critical component to the economic vibrancy of the region,

which is cha racterized by approximately 6 50,000 people within a forty five minute drive
time and 1,1 00,000 people within a seventy five minute drive time . The closest commercial
airports that provide highe r levels of air service than CHA include Hartsfield

– Jackson
Atlanta International Airport (ATL ), Nashville International Airport (BNA ), McGhee Tyson

Airpor t (TYS), and Birmingham

– Shuttlesworth International Airport (BHM ). However, these
airports range between 2.0

– 3.0 hours away from Chattanooga , and make f or a

cumbersome drive for all travelers, both business and leisure

. CHA is the more efficient and

lo gical option.



# CHA Primary and Extended Service AreaProposal under the Small Community Air Service Development Program

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### The Cha ttanooga Local Economy is Diverse and Growing

The economy within the greater Chattanooga service area is extremely prosperous and
recent developments indicate that the region is positioned for significant growth over the
next several years. Automotive manufacturer Volkswagen Group of America announced on
July 14, 2014 that it plans to expand the Chattanoo ga manufacturing operations by adding
an additional manufacturing line and creating the National Research and Development and
Planning Center of Volkswagen Group of America. This commitment comes with a $9 00
million investment in its expansion and the crea tion of 2,000 new jobs for the greater
Chattanooga region. Chattanooga is the only U.S. based manufacturing facility for
Volkswagen, demonstrating the level of dedication to the community.

This exciting new development is expected to drive significant new air service needs, as it is
expected that additional suppliers will rel ocate to the region to increase productivity and
ease the supply chain needs of Volkswagen. The Chattanooga Chamber anticipates that
2,000 new supplier jobs will be created as a result of the Volkswagen expansion. In addition

to the large Volkswagen presence and expansion in Chattanooga, the region is host to
numerous other important businesses . Representative companies that have a significant
presence in the region include Amazon.com, BlueCross BlueShield of Tenness ee, McKee
Foods Corporation, The W illiam Wrigley Jr. Company, UNU M , and Chattem (Sanofi

- Aventis).
More than 500 jobs and $200 million in combined investment announced over the last year
by Coca Cola Bottling, Chattem, Mahindr a, Sun Pharma, and Paris based Plastic Omnium.

Additionally, nearby Dalton, GA is known as the “Carpet Capital of the World” and is home

to over 100 carpet manufacturing plants. Shaw Floors, Mohawk Industries, and Tandus
Flooring are just a few of the man y organizations located in the region that rely on CHA for

air service needs.



### Strong Higher Education

The Chattanooga region is home to several educational institutions of higher education,
including the second largest University of Tennessee campus in the state. Over 30,000

students were enrolled in the various school s as of Fall 2013. The table on the following
page illustrates a breakdown of the enrollment by school.Proposal under the Small Community Air Service Development Program

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# Higher Education in CHA Region

CHA air service is critical for both the local busi nesses and the educational institutions in the
region. Without convenient and efficient air service at CHA, these organizations will need to
look elsewhere for their travel needs, ultimately having a negative economic impact on the
greater Chattanooga area . A Small Community Air Service Development Program grant
award will help ensure that the local community can further utilize Chattanooga Airport for

their travels.Proposal under the Small Community Air Service Development Program

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# 3. Air Service Deficiency at CHA

While ATL and BNA clearly have a greater absolute number of passengers traveling to/from
the New York City metro region, the following table s illustrate that the percentage of total
passengers to/from the New York City metro region at CHA is similar to the percentages at
ATL and BNA. The big dif ference, however, is that no nonstop service exists at CHA while
extensive nonstop flights are present at both ATL and BNA, as can be seen from the
currently scheduled departures and seat capacity for CY 2014 below.



# CHA NYC Region O&D Compared to Regional Airports
CY 2013

This is a clear indication that if nonstop flights existed between Chattanooga and the New
York metro region, there is a strong li kelihood that they will be self

- sufficient and a
profitable route for whichever carrier flies between the two regions. Passenger leakageProposal under the Small Community Air Service Development Program

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– 0113 11 would be reduced and a portion of the passengers currently making the onerous drive to
ATL or BNA would opt for the nonstop service at CHA.

The deficiency is clear: A total of over 25,000 annual departures and 2.8 million annual
seats are scheduled at ATL and BNA for CY 2014, while zero annual departures and seats
are scheduled at CHA for this same time period.

The following table and map are representative of the total annual departures and seat
capacity available from network carriers at CHA:



# CHA Scheduled Network Carrier Departures and Seats
CY 2014

Addressing the Air Service Deficiency: Northeastern US Air Service Access

The air servi ce deficiency has been clearly outlined, with the Chattanooga community
having a strong connection with the New York City metro region but suffering from indirect
routings due to a lack of nonstop air service access. The proposed solution for this

deficien cy is nonstop service to any of the three primary NYC metro airports: LGA, JFK, or
EWR. Each of these airports, and the airlines that serve them, have excellent connectivity to
the greater northeast region including upstate NY and New England. Not only wou ld
nonstops to the New York City metro region alleviate a deficiency for NYC region travelers,
but also aid in more efficient routings to/from the northeastern US.Proposal under the Small Community Air Service Development Program

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– 0113 12 While CHA does have nonstop flights to Delta’s hub in ATL and the American/US Airways

hub in CLT, these flights operate with very high load factors which make it difficult for both
leisure and business travelers to find available seats. As the graph below indicates, the

Delta CHA

- ATL nonstops operate with an annual load factor of almost 83%, wi th several
months being 85

- 90%. Furthermore, the American/US Airways CHA

- CLT nonstops operate
with similarly high load factors, averaging 80% on an annual basis.



# Delta CHA

- ATL and American/US Airways CHA

- CLT

Load Factor Performance Apr 2013

– Mar 2014

So while a look at the CHA air service map may seem as though there is adequate access to

the north eastern US via both ATL and CLT , there is actually quite a challenge accessing this

region due to high load factors on the current flights

. With limited available capacity on the
current flights, direct access to the northeastern US would be beneficial for the Chattanooga

community.



### The Fare Issue: CHA vs. ATL and BNA

As has been previously illustrated from an overall market perspective, CHA suffers from
higher fares than its primary competing airports, ATL and BNA. During CY 2013, CHA had
higher average one way gross fares of 14.5% vs. ATL and 13.5% vs. BNA from a mark et
perspective. However, it is instructive to review the fares for the New York City metroProposal under the Small Community Air Service Development Program

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– 0113 13 region markets and other top northeastern US markets from these same airports to get an
indication of how much of a premium CHA passengers have been paying on averag e compared to ATL and BNA.

The following table highlights the fact that for the New York City markets and larger
northeastern US markets, CHA average gross one way fares were approximately 19%
higher than ATL and 26% higher than BNA. This is a clear repre sentation of an air service
deficiency at CHA, and increased capacity may aid in providing fare discipline in these
popular CHA markets.



# CHA vs. ATL and BNA Average Gross One Way Fare s

– NYC and Top Northeast Markets

CY 2013

Current Grant Request Diff ers From SCASDP Grant Award in F Y 2004

The Chattanooga Metropolitan Airport Authority were recipients of a $750,000 Small
Community Air Service Development Program grant award in FY 2004. This request differs
significantly from FY 2004 award, as the p rior grant award was aimed specifically at
improving westbound connectivity at CHA with the specific target of American Airlines’

Dallas

– Ft. Worth (DFW) hub. Th e purpose of the current grant proposal is materiallyProposal under the Small Community Air Service Development Program

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– 0113 14 different from the previous award and is aimed specifically at increasing air service access
to the New York City metropolitan region and the northeastern US.

It is important to note that American Airlines entered the CHA market with DFW nonstop
service in August 2005 and has been serving the CHA

- DFW market ever since on a self

sustaining basis. American’s DFW nonstops are a vital aspect to air travel at CHA, as would
be the case for New York City metro nonstops providing much needed access to the

northeastern US.Proposal under the Small Community Air Service Development Program

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# 4 . SCASD Grant Administration Plan

Requested Term of Grant

The Chattanooga Metropolitan Airport Authority respectfully requests that the term of the
grant be for two years from the start of service

.



### Funding and Revenue Sources

The amount r equest ed in this proposal is $500,000. The matching portion will come from

two sources:

 T he Chattanooga Area Chamber of Commerce will contribute an additional 40 % or
$200,000 in cash to be utilized for revenue guarantee purposes.

 Chattanooga Airport will contribute $50,000 in airport revenue , which will not be
used for the revenue guarantee portion of the project and will only be used for
marketing activities.



### Revenue Guarantee

The primary purpose of the revenue guarantee portion of the grant funding is to offset t he
risk of the carrier in entering the market with NYC region nonstop service. The agreement
will be based on a specific contract that details the revenues per flight and the
determination of how the revenues are to be computed. The airline will agree to o perate a
specific pattern of flights.

Specific targets for air service will include Delta LGA/JFK, United EWR, American LGA/ JFK, or

JetBlue JFK.Proposal under the Small Community Air Service Development Program

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### Marketing and Advertising Plan

The airport and community understand that a critical component to ensuring the successful

start

- up period for new service or increased capacity will be a comprehensive marketing and
advertising plan. This will include:

 Extensive usage of social media outlets, including Facebook, Twitter, Instagram, and

Pinterest in order to buil d awareness of the new air service

 Print media ad vertisements in local publications

 Billboards along major roadways to create awareness within the community

 Television and radio advertisements in order to reach as many people in the
community as possibl e

 Banner adv ertisements on the airport’s website and through the targeted ad network
to reach customers by their online search habits

 Utilization of extensive networking resources to spread the word, including public
speaking to civic and other groups



### In

- Kind Funding

In addition to the cash contributions from the community, the Chattanooga Airport will offer

in

- kind incentives in the form of a landing fee waiver for six months from the start of new

service. This in

- kind incentive is valued at $50,000.



### Previous Air Service Development Efforts

Chattanooga Airport has been very active in its air service development efforts over the last

three years. Th e actions taken include:

 Par ticipation in Air Service Development Conferences such as ACI Jumpstart

and Network USA

.Proposal under the Small Community Air Service Development Program

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 In the last 36 months, CHA has met at the corporate airline headquarters with
several carriers, including Delta and United Airline s to discuss potential
opportunities. The meetings were productive and the airlines receptive to

meeting w ith the airport. This is part of the ongoing relationship that CHA has
built with airlines and is helpful for the purpose of updating the carriers on
developments in the greater Chattanooga community that may impact air

service opportunities.

 CHA has been diligent in updating its five year Air Service Master Plan , which
was last completed in Jan uary 2013 for years 2013

– 2017 . The purpose is to
outline current airline performance and future opportunities. It is an excellent
tool for the airport to unde rstand air service economics, and if concerns exist
for them to address them proactively.

 The airport works closely with an aviation consultancy to keep abreast of
current trends at the airport, airline performance metrics, and potential

opportunities or threats to air service at CHA

.



### Ensuring Self

- Sufficiency

CHA is fully aware that there can be extenuating circumstances which have the potential to
impact ridership on a new route . Just as the airport has been diligent in its air service
development efforts described above, they will be equally as attentive to the necessity of
the new service to be successful. To this end, the airport plans to take the following actions:

 Stay in close contact with the airline on a monthly basis to fully communicate t he
performance of the new service, and to swiftly address any issues that may arise

that are having a negative impact on passenger traffic and/or financial performance

 Re

- focus targe ted marketing and advertising if it is deemed necessary with the
objective of increasing ridership

### 1 Cameron Hill Circle

Chattanooga, TN 37402 www.bcbst.com



### July 25 , 2014

Brooke Chapman

, Associate Director Small Community Air Service Department Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Ave., SE Washington, DC 20590 Room W86

- 307

Dear Ms. Chapman,

On behal f of BlueCross BlueShield of Tennessee, Inc., I am writing in support of the Small Community Air Service Grant application that has been submitted by the Chattanooga Metropolitan Airport Authority (CHA).

The purpose of the airport’s application is to addr ess air service deficiencies and increase access to the national transportation system for the region. BlueCross BlueShield of Tennessee, Inc. is an economic driver for the city, and a staunch supporter of growth in the local community, and as such, we und erstand the need for increased air service options at the Chattanooga Airport. As our community continues to grow and our economy continues to flourish, it is my most sincere belief that any new service will achieve self

- sufficiency, as our track record ha s shown in the past with attracting air service.

We urge the Department of Transportation to give the Chattanooga Metropolitan Airport Authority’s application favorable consideration. Please feel free to contact me with any questions.

Sincerely,

W illiam M. Gracey President & CEO Bill Gracey President & CEO BlueCross BlueShield of T ennessee

### PO Box 2275 Cleveland TN 37320

- 2275

423

- 472

- 6587 Direct line 423

- 728

- 0804

FAX: 423

- 472

- 2019 

### July 29, 2014

Brooke Chapman Associate Director Small Community Air Service Department Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Ave., SE Washington, DC 20590 Room W86

- 307

Dear Ms. Chapman

,

On behalf of the Cleveland/Bradley Chamber of Commerce , I am writing in support of the Small Community Air Service Grant application that has been submitted by the Chattanooga Metropolitan Airport Authority (CHA).

The purpose of the airport’s applicati on is to address air service deficiencies and increase access to the national transportation system for the region . Our chamber is an economic driver for the City of Cleveland and Bradley County , and a staunch supporter of growth in our region , and as suc h, we understand the need for increased air service options at the Chattanooga Airport. With the recent announcement of the expansion of the VW automobile assembly plant in Chattanooga and the $2 billion Wacker Polysilicon facility under construction here in Bradley County, our region will continue to grow and our economy will continue to flourish. I t is my most sincere belief that any new service will achieve self

- sufficiency, as our track record has shown in the past with attracting air service.

We urg e the Department of Transportation to give the Chattanooga Metropolitan Airport Authority’s application favorable consideration. Please feel free to contact me with any questions.

Sincerely,

Gary L. Farlow President & CEO Cleveland / Bradley Chamber of Commerce