Board ofDirectors:

Secretary

Virginia Moc:ivl)ik Treasurer

ktFormanek Cl:trkitwln

Phil Phillips,Jr. Plllltp 'I'aldo M. L, Vart Pmt¢ke ExecutiveDirector/CEO
Airport Director

Kelly L.Johnson, A./..E. DirectorofFinance

Terry L. Franklin**L~l** Coun.ild John 

### a Elro.li**Au~ust** 9, 2013**M~h** :Brooke Cbapmart, Associate Director Small Community AirService DevelopmentProgram Office ofAviation Analysis 8

111 Floor, Room 

### W86

...J07 United States Department ofTransportation Washington, DC 20590 Re: Branson.Regional Airp0ttTrl;l.nsportatiou DeveropmentDistrict Application DocketiD: DOT-OST-2013-0120 Small Community Air Service Dt.!Velopment Pmgram Dear 

### Ms. ·Chapnum: The purpose of this tetter is to bring your attention to au application which has 

### been Sttbmitted to the United States Department ofTransportation. Itis a fede·ral grant funding application for air service development for a pr.ivate!y owned and operated aitpo.rt, the Branson Airport in·Branson Missouri (BKG) DOT-.OST;.20 13
..0 120. We**underst~nd th~**  competitive nature ofattracting passengers and attaining a:ir 

### service. This 

### is a ehaHenge 

### for any ajtpdrt. We are a 

### small hub airport with several air carriers and non-stop destinations. The purpose ofthis

. letter, howevet • .references a. matter .of fairness.

. While I UJ1derst!lnd the grant process 

### is. available to public entities, and BKQ is not direc;tly the applicant, the o.utcome is 

### the same • public funds being used to support a private enterprise, At the Northwest Arkansas Regional Airport, we have**n~ver** t$sed 

### a bond payment orfailed. any ofthe**requitemen~s** we are botmd to in accordance with our bond indenture; the 

### same does .t\ot hold try at BKG (this 

### is a matter 

### ofpublicrecord). In addition, BKG is seeking to attairt LAX service in their application if it is funded. After LAX

- XNA servicewas discontinued severalyears ago, daily service 

### will begin again later this month. {t has taken years of effort to regain this market for our customers. To subsidize 

### a private airport to 

### attempt. 

### to capture the same 

### ei.IS.tonrets: usiug 

### 1neans Mt availa.bJe to 

### XNA wotdd be 

### a.n injustice 

### to NW Arkansas. 

### BKO .does not tmve to follow the same fecteral· regulations and grant assurances that are mandated at public use 

### airports. Private**airp<)r~s gr~t.** exclusive**a~reements** that limit competition, and they don't have reporting requir:en1ents 

## to the pliblic. Tltey can**t~se** airport funds tor incentive pt(!grams**wher~** XNA cannot. In short, they can do many things as a private entity that place 

### publicly owned and operated facilities at a competitive business**disadvantage~** Public use**airports·don~t** answer to sl1areholders ami 

### certainly don

### •t .share revenues; AU revetnies 

## are used· according to .regulatioL'l attd don't pay dividends or airport-gene1·ated. revenue to subsidies air carriers who are also operating for 

### the profitofindividual dwners or 

### shareholders.

Allee L. Walton Terminal BUilding. One Airport B.oulevard • Shite 100 • Bentonville, AA 72712**~hone: 479~205,-1.000**  • Fax:479.::205-1001 flyxna.eom 

## ObMs
..Brooke Chapman August 9. 2013 Page2 Competition is healthy, and we understand the economic impact ofair fares to the public. 

### We also understturd the considerabie federal, state and.local investmemt in XNA's.airport. With this said, for the se<»nd consecutive year, we respectfully submit

### th~t a private business should not be11efit 

### from a public fundilig program. Orauting of 

### BKG's application will further damage our abilityto compete on a level playing field.