# Application Under the Small Community Air Service Development Program

Docket OST

- 2012

- 0069

Sponsoring Entity: Outagamie County Regional Airport

Dun & Bradstreet Number: 11

- 862

- 0140

2

- digit Congressional District Code: 08
June 11, 2012**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 



# Table o f Contents

Executive Summary

__________________________________ 1 Air Service Overview

__________________________________ 3 Summary of Current Service

________________________________ ______ 3 Recent Air Service Losses

________________________________ ________ 5 United ATW

- DEN

________________________________ _______________________ 7 Frontier ATW

- MKE

________________________________ _____________________ 7 Potential Impact on Fares

________________________________ _______________ 7 

### Efforts to Improve Air Service

________________________________ _____ 9 Air Service Development Studies / Meetings

________________________________ 9 History of Cost Control and Innovation

________________________________ ___ 10 FBO

________________________________ ________________________________ _ 13 

# Previous 2009 Grant

_________________________________ 14 Strategic Plan

______________________________________ 16

Goals

________________________________ ________________________ 16 Funding Overview

________________________________ ______________ 16 Use of Funds / Timeline

________________________________ _________ 17 Business Model Study for ARFF Training Academy

_________________________ 17 Funding for Start

- up and Year One Expenses

______________________________ 18 

### Funding Assurances

________________________________ ____________ 18 Milestones and Monitoring

________________________________ _______ 18 Sustainability

________________________________ __________________ 19 Alternate Plan

________________________________ _________________ 19 Measure of Success

________________________________ ____________ 19 

# Conclusion

________________________________________ 20 Appendix A: Required Summary Information

______________ 2 1 Appendix B: Letters of Support

_________________________ 25**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 1 

## ATW is proposing to pioneer a new ARFF model, supporting air service through recurring cost savings while providing
innovative new public safety training. A program which
could become a model for
other communities. 

# Executive Summary

Outagamie Country Regional Airport (“ATW”) near Appleton, WI is the principal airport for the Fox Cities region (eight cities including Appleton, Oshkosh and Neenah) of Northeast Wisconsin. The region is home to several major companies including Kimberly Clark, Oshkosh Corporation and Bemis Company.
Until recently, ATW has enjoyed daily service to six network hubs, connecting the community to the world. However, in
the last twenty four months, ATW has lost United Airlines service to Denver (last flown in December 2010), as well as Milwaukee service on Frontier (last flown September 2011). Both services were well s upported by the community and have been lost due to the impact of the economic downturn. Combined, these two
cancellations and pull downs from Delta, will reduce capacity by 17 % year

- over
- year ( August 201 2 vs. August 201 1

– see Exhibit 5 ). Further, Frontier Airlines was the only low cost carrier offering connecting
service from ATW; their pullout creates the prospect of increased fares and leakage.
To address the airport’s long

- term competitive position, ATW is proposing an innov ative new approach to providing Aircraft Rescue and Fire Fighting ( “ ARFF ” )

.

In April 2012 Fox Valley Technical College (“FVTC”) won a five county referendum to support $6 6 million to develop a FVTC. The hallmark development of FVTC referendum is a $34 million development on 74

acre s of land on the south end of ATW for a new public safety training center . This lease is an important part of ATW’s aggressive efforts to increase and diversify non

- aeronautical revenue. The public safety training center wou ld be the only one of its kind in the U.S., offering a full range of training opportunities. The number of students enrolled in FVTC’s public safety program has jumped from 900 to 1,500 in the past 18 months. FVTC also provides annual training to nearly 15 ,000 law enforcement workers nationwide in various specialized areas. The facility will also provide an opportunity to also work with Pierce Manufacturing/Oshkosh Truck to test new design and engineering on fire trucks and airport fire rigs before final d elivery.

FVTC was having capacity issues with regard to serve the training needs of local law enforcement, security agencies, EMT's and fire. The new facility at the airport would bring all of those agencies under**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 2 the same building to train together for emergencies. It also allows for the staging of fire equipment, EMS, paramedics and police who all may be responding to the same type of scenario.
In this grant application ATW is proposing to further leverage the investment FVTC and the community
are mak ing at the airport. ATW and FVTC would like to partner to explore the creation of an ARFF training academy, to leverage the school’s presence at ATW for unique training opportunities. Beyond that, the potential exists for the school to actively participa te in providing ARFF services at ATW utilizing
instructors and interns
, who have been trained to a certain index
, to provide or supplement ARFF staff. It would give students an amazing opportunity to complete their training in a live airport environment, producing strong graduates specifically trained for airport firefighting . While the program needs to be more deeply studied, it is anticipated that the partnership could generate ongoing annual ARFF savings of $ 2 00,000 out of ATW’s approximately $ 500,000 expense. This would be a significant reduction to the airport’s rate base, providing a key advantage in retaining and attracting new service. It also helps the airport maintain a cost structure attractive to low cost carriers. To prevent increases in fa res and leakage, ATW needs to increase capacity and competition at the airport and this program is a key step in being
able to do that

.

The grant application specifically is seeking:

• Funding for a study to develop the business model for the new ARFF progr am

o Grant of $75,000 to develop a business model for the new concept ARFF program

o $10,000 of cash support from the community

o $80,000 of in

- kind support from FVTC

o $10,000 of cash from ATW

 Total community participation in funding the study is 57%

• Funding for start

- up and year 1 expenses:

o Grant of $350,000 towards start

- up costs and marketing for the program

o $30,000 of cash support from ATW airport

o FVTC will be covering all additional expenses which could be substantial

• In total the community will be covering 2 3% of the expense, with 16% from the community / FVTC
and 7% from ATW**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 3 Long

- term success will be achieved through:

• Leveraging airport’s experience in timely and successful implementation of 2009 SCASDP grant

• Establishing a program which provides ongoing co st savings to airlines which encourages sustaining and growing air service

• Start

- up and year

- one expenses will only be spent if the business case is solid and FVTC makes

a commitment to funding the remaining expenses and ongoing expenses

• Reducing fares and leakage by creating an environment friendly to low cost carriers and making existing service more profitable by reducing costs



# Air Service Overview

Summary of Current Service

ATW has service to seven cities including flights into four airline hubs with connections to destinations around the world (see Exhibit 1 : ATW Route Map

– June 2012 ).



### Exhibit 1 : ATW Route Map

– June 2012

Allegiant’s service to Orlando

- Sanford is operated on a seasonal basis. R ecent service loses include the
loss of Delta’s seasonal Memphis service
, Frontier Airlines withdrawing from ATW effective September 2011 (see Exhibit 2 : Current Air Service Details

– June 201 2 Schedule )**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 4 

### Exhibit 2 : Current Air Service Details

– June 201 2 Schedule

Source: Innovata schedule data, via Diio Mi Internet

- Based Aviation Portal

Without low fare connecting service and with the growth of Southwest/AirTran in Milwaukee (“MKE”),
ATW remains at a s ignificant pricing disadvantage (see Exhibit 3 : Current Fares ATW, GRB, and MKE to
ATW’s T op T en Destinations ).



### Exhibit 3 : Current Fares ATW, GRB, and MKE to ATW’s T op T en Destinations

Source: Expedia f are quotes pulled July 21, 2011 for travel outbound on August 25, 2009 and return August 31, 2009; max 1 stop

Historical fares to ATW’s top O&Ds from ATW and peer markets (see Ex hibit 4 : 201 1 Historical Fares ATW, GRB, and MKE to ATW’s Top Ten Destinations ) reveals a similar disparity between ATW and MKE, driving significant passenger leakage. The exceptions are Allegiant’s point

- to

- point markets which appeal
to leisure customers but do not address overall fare issues in ATW.

Airline Destination Equipment Type Flights / Week Seats / Week Delta Atlanta, GA Regional Jet 13 858
Delta Detroit-DTW, MI Regional Jet 32 1,600
Delta Minneapolis / St. Paul, MN Regional Jet 27 1,350 Allegiant Phoenix, AZ Narrow-body Jet 2 300 Allegiant Las Vegas, NV Narrow-body Jet 2 300
United Chicago-ORD, IL Regional Jet 39 1,950

ATW Higher / (Lower) Than Destination ATW MKE GRB MKE GRB Atlanta, GA $635 $439 $656 45% (3%) Denver, CO $981 $518 $1,027 89% (4%) Detroit-DTW, MI $1,036 $814 $1,026 27% 1% Los Angeles-LAX, CA $1,052 $558 $1,025 89% 3%

New York-LGA, NY $1,007 $462 $959 118% 5% Orlando-MCO, FL $861 $398 $850 116% 1% Minneapolis / St. Paul, MN $1,085 $573 $973 89% 12% Phoenix, AZ $935 $548 $961 71% (3%) San Francisco-SFO, CA $1,028 $667 $1,053 54% (2%)

Average of Top 10 $958 $553 $948 73% 1%**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 5 

### Ex hibit 4 : 201 1 Historical Fares ATW, GRB, and MKE to ATW’s Top Ten Destinations

Source: DOT DB1B data via Diio Mi Internet

- Based Aviation Data Portal



## Recent Air Service Losses

Until recently, ATW has enjoyed daily service to six network hubs, connecting the community to the world.
H owever, i n the last twenty four months, ATW has lost United Airlines service to Denver (“DEN”), last flown in December 2010; as well as cancellation of MKE service on Frontier in September 2011

. ATW also had summer only service to Delta hub Memphis (“MEM”) in summer 2011. In total, capacity is down by 17 % y ear
- over
- year ( July 201 2 vs. July 201 1

– see Exhibit 5 : ATW Weekly Seats Year

- over
- Year, by Carrie r )

.

A s of this fall, ATW will be left with daily service to its four remaining hubs

– Atlanta, Chicago, Detroit, and Minneapolis

– supplemented by less

- than

- daily leisure flights on Allegiant. This leaves a notable hole in the ATW route map, with flights to on ly one hub to the west of ATW (MSP, served by Delta).

ATW Top O&Ds

– fares vs. Peers
YE 2011Q4

$145

$115 $164

$113 $98 $160

$125 $131 $126 $141 $184

$155 $223

$172 $187 $209

$178 $215

$156 $177 $211 $193 $172 $259

$184 $218

$184 $205

$116 $139 +62% +115% +36%

+47% +57%

WAS - 2%

MSP DAL +33%

DEN DTT - 8% +50% +57%

LAX NYC ATL ORL LAS

ATW GRB MKE Destination
ATW PDEW 53.8 43.4 28.3 20.8 18.6 16.9 16.8 16.3 15.1 14.9**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 6 

### Exhibit 5 : ATW Weekly Seats Year

- over
- Year, by Carrie r

Source: DOT DB1B O&D Data via Diio Mi Internet

- Based Aviation Data Portal

T he capacity loss at ATW is on par with nei ghboring airports other than Madison (“MSN”) ( see Exhibit 6 : Weekly Seats Year

- over
- Year

– ATW and Peer Airports ).



### Exhibit 6 : Weekly Seats Year

- over
- Year

– ATW and Peer Airports

Source: Diio Mi Interne t

- Based Aviation Data Portal 

### 279 86

100 601

279 86 0 525

Frontier

Allegiant

United

Delta
- 13%

- 100%

0%

0%

Aug

- 12 Aug

- 11



### 2,773

526 1,066 1,546 1,219 2,875

479 890

- 9% - 21%

- 17% - 28%

+4%

CWA ATW GRB MSN MKE 12,585 17,370

Aug

- 12 Aug

- 11**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 7 

### United ATW

- DEN
United launched ATW

- DEN during the onset of the recession in March 2009 and just as fuel prices were starting to climb again. The community showed stong support for the market from the onset with load
factors o f 85% in the inial month and averag ing 80% over the life of the flight ( see Exhibit 7 : United ATW

DEN L oad F actor ) . Unfortuantely the combination of climbing fuel expense and recession dampened pricing kept the market from reachi ng profit forecasts and was discontinued in December 2010.



### Exhibit 7 : United ATW

- DEN L oad F actor

Source: T 100 data via Diio Mi Internet

- Based Aviation Data Portal



### Frontier ATW

- MKE ATW was the original headquarters for Midwest Express which was later merged into Frontier Airlines. The community had long supported the ‘hometown carrier’ and is very disappointed to see them go. ATW had three flights per day on the ERJ

- 135. Unfortunately with changes in Frontier Airlines’ strat egy, most of their service from MKE was pulled, including ATW.



### Potential Impact on Fares ATW air fares are already higher than the national average air fares for all communities. Year

- ending 4Q1 1 , ATW’s average domestic fare was $ 192 , well above the nati onal average of $ 171 , and much higher than the average domestic fare for MKE, at $ 139

. 80% 76% 86% 85% 88% 87% 85%

72% 79% 80% 72% 72% 75% 78% 84% 82% 89% 85% 84% 76% 83% 85%

May Jun Jul Aug Sep Oct Apr Nov Dec Jan 2010 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar 2009**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 8 With the loss of Frontier, capacity to most O&Ds are served only by Delta and United who 6 4 % and 3 1 % of the market respectively (see Exhibit 8 : Year

- over
- year ATW Seat Share by Carrier ). Allegiant account s for 5 % of capacity with point

- to

- point less than daily service to leisure markets

.



### Exhibit 8 : Year

- over
- year ATW Seat Share by Carrier

Source: Diio Mi Internet

- Ba sed Aviation Data Portal



### Exhibit 9 : Fare Gap ATW vs. MKE
With the loss of low cost carrier hub service and the continued growth in MKE of Southwest/AirTran, the fare gap between ATW and MKE has hit new highs of $87 which is a
5 8% premium over ATW, putting tremendous pressure on
traffic to leake from ATW to MKE. ATW Fares vs. MKE ($ one

- way)

239 226 218 211 191 193 184 191

151 145 154 142 131 135 133 126

3Q 2Q 1Q 2010 4Q 4Q 3Q 2Q 1Q 2011 +60 ( +46% ) +87 ( +58% )

MKE ATW**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 9 

## Efforts to Improve Air Service
Air Service Development Studies / Meetings ATW began active air service development in 2008. Key activities over the past five years i nclude:

• Fall 2008: Engaged Seabury APG for air service development consulting including leakage study

• Fall 2008: Formed Community Travel Task Force

• September 2008: Met with United Airlines in Chicago

o Secured ATW

- Denver service, launched March 2009

• February 2009: Met with American Airlines / American Eagle in Dallas

• March 2009: Attended Network conference

• April 2009: Met with Midwest Airlines in ATW

• May 2009: Met with Delta Air Lines in Atlanta

o Secured upgauge of all but one flight from turboprop to regional jet

o Secured flight timing changes requested by the community

• August 28, 2009: filed successful application for $150,000 SCASDP grant to support marketing efforts in the face of AirTran growth and Southwest launching at MKE

• Fall 2009: hosted multiple airli nes for visits to ATW

• October 2009: met with Continental Airlines in Houston

• February 2010: met with Frontier Airlines in Denver

• February 2010: attended Allegiant conference

• March 2010: attended Network conference

• May 2010: Met with Delta Air Lines in Atl anta

• June 2010: hosted a community Air Service Summit with top community leaders

• Fall 2010: hosted multiple airlines for visits to ATW

• December 2010: met with Frontier Airlines in Denver

• February 2011: Met with American Airlines / American Eagle in Dallas

• March 2011: attended Network conference

• May 2011: attended Allegiant conference**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 10 

# In October of 2011 and five years ahead of schedule, the airport retired the debt of the terminal. Allowing ATW to continue its aggressive partnering with airlines. • June 2011: attended JumpStart conference

• March 201 2 : attended Network conference

• May 201 2 : attended Allegiant conference

• June 201 2 : attended JumpStart conference

Since 2008 , ATW has met and maintained contact with virtually every legacy and low

- cost carrier in the United States (including the Target Carrier). Measured by share of July 2011 domestic ASMs, the carriers ATW has met with represent 92% of domestic ASM s (See Exhibit 10 : July 2012 Domestic Schedule

– ASM Share by Carrier (Top 10) ). Of course, ATW is open to meeting with the carriers who are not on this list, however, ATW would likely not be a fit in those carriers’ busines s models.



### Exhibit 10 : July 2012 Domestic Schedule

– ASM Share by Carrier (Top 10)

Rank Carrier Weekly Flights Weekly Seats (000) Weekly ASM (mil) ATW Contact? Domestic ASM Share
1 UA 35,798 2,961 2,932 X 20%
2 DL 37,305 3,684 2 ,927 X 20%
3 WN 23,122 3,185 2,216 X 15%
4 AA 21,102 2,119 2,024 X 14%
5 US 20,818 1,881 1,390 X 10%
6 B6 4,709 619 708 X 5%
7 AS 5,430 626 605 X 4%
8 FL 4,555 552 435 X 3%
9 F9 2,292 298 259 X 2%
10 VX 1,139 164 254 X 2%

Source: Diio Mi Internet

- Based Aviation Portal



### History of Cost Control and Innovation ATW has long believed that a core aspect of airport management and air service development is to remain fiscally conservative

– provide a quality passenger and operational experience while keep ing expenses as low as possible for carriers. ATW remains the lowest landing fee airport in the State of Wisconsin as reported by the Wisconsin State Journal. Sin ce 2001, ATW has**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 11 provided over $ 7.6 million dollars to airlines as a “competitive discount” t o airlines, dollars that would have otherwise gone into airport reserves.

**B OND BURNING PA**  **R T**  **Y:** ATW recently made a strategic move to retire debt on its terminal that underwent an expansion in 2001. At that time, bonds totaling $4.0 million issued with a 15 year term. The Air port choose to pay them off utilizing airport reserves in November 2011, which was five years early. This decision will save the airport $234 thousand in interest.

“Paying off this debt early assists us in keeping our rates and charges for our terminal t enants, including airlines, competitive.” said Marty Lenss, airport director. “The Airport is committed to providing convenient, modern, and affordable facilities to both its airline partners and customers.”

Always cognizant of keeping carrier operating costs low, the airport has engaged in many creative ways to market and improve the customer experience that have involved minimal cash outlay. Examples
include:

• Aggressively pursuing non

- traditional airport revenues such as land leases and business
dev elopment

o Expanded hang a r lease with Gulfstream

o Flight school

o Tech. fire program

o General Aviation is up 23% in 2012

o Industrial Park

• Partners h ip with local and regional chambers exchanging advertising in the airport with membership and advertising in publica tions

• Partnership with local hotel to provide upgraded furniture for the airport lobby in exchange for being able to brand the area

• Community interaction program

- representatives from the airport have gone into the community on a grass roots**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 12 campaign and h ave become members of many area organizations such as the Fox Valley Economic Development Partnership, Fox Valley Chamber, Leadership Fox Cities, New North and Learning for Life to name a few

• “Turkeys and Ham” is a holiday promotion that is advertised on C umulus radio asking the community to bring in food donations, especially turkeys, chickens and hams for the holidays.
Donors are entered to win awards of $500 on one of the airlines serving ATW. The entire airport
staff then delivers the donations to a lo cal food kitchen

• ATW is proud to be the home airport of “Old Glory Honor Flight” a national organization focused on sending WWII Veterans to their memorial in Washington DC. The entire airport staff volunteers
to make their mission a success

• Uniform progra m for staff and customer service training for all airport employees and touch points of passengers. These programs are important to ensure ATW is in

- tune with passengers and provides a great experience, which in

- turn promotes repeat usage of the airport. ATW has also implemented a new Mission and Vision statement for the airport

• Partnered with the local baseball stadium in a creative advertising campaign in which each parking lot has been signed with an airline logo to designate where you have parked suc h as the Delta lot or the Allegiant lot; providing exposure for ATW and value add to incumbent carriers

• Fun promotions with Allegiant Air, including the Orlando Adventure

• Media events at the airport which are well

- attended by the community and media, ge nerating strong word

- of

- mouth. Examples include:

o Milk and cookie day at the airport for increased seats on
Midwest

o Big parties for the announcement of service to Las Vegas and Orlando by Allegiant Air

o Celebrated the addition of the Denver launch with an e vent including Denver omelets

o Elvis was at the airport for the Memphis Service announcement and the community enjoyed Peanut Butter and Banana Sandwiches and a life

- size Elvis tribute guitar cake

• Travel agency outreach

– delivered plants with pots branded with an airport message

• Recently added customer amenities include:**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 13 o Added food behind the security checkpoint and upgrading existing food in general

o Free WI

- FI

o Free baggage carts

• Installed passenger feedback stations to generate new ideas and quickly ident ify passenger issues

• Implemented innovative new airline lease structure to further support commitment to lowering airlines
fees

• New rental car leases and an additional rental car company to improve non

- airline revenues

• Won grants for a solar heating system to reduce the airport’s carbon footprint and the terminal heating cost. Part of overall effort by the airport to become more efficient and environmentally friendly

o Green efforts are tracked real

- time on the website and in the airport (see screen shot)



### FBO In response to concerns expressed by scheduled carriers and other airport users, in October 2010 ATW took over the airport’s fixed base operator (“FBO”), renaming it the Platinum Flight Center. Running the FBO allows ATW the flexibility to charge c ompetitive rates on services
such as into

- plane, and to use the FBO as part of the incentive mix to
attract new service.**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 14 

# Previous 2009 Grant

The current grant application represents a new project and is unrelated to the grant that ATW won in 2009.
The 2009 grant was for $150,000 in marketing money to assist ATW in targeting leakage in the face of a strong competitive threat in MKE
, as Southwest Airlines was launching service and AirTran was growing dramatically ( see Exhibit 11 : Year

- over
- year Capacity at MKE ).

Source: Diio Mi Internet

- Based Aviation Portal

ATW utilized the 2009 SCASD grant with an initial market research study
which revealed there was a low awareness of the services offered at ATW. Other findings include d thoughts of inconvenience, high prices, and a mixed message in advertising. From that study ATW analyzed its advertising message and created a crisp and clear design concept that reflects the airports perceived shortcomings revealed in the research
proc ess.

The Airport then rolled out the “Quick, Close
, Convenient” Campaign

. Upon completion of the design, the airport purchased local media to create awareness by web site ads, billboards, television, print, and radio.

The same market research study was performed at the end of the SCASD and some of the findings are:

• Virtually 100% of Appleton

- area travelers had seen or heard the ads

• Interviewees were highly aware of the “Quick, Close, Convenient” message

• Message very effective in getting trial

• Respondent s also answered very favorably to using ATW in the future 5,857 0 2,113 5,349

5,499 1,624 4,787 5,231

- 6%

17,141 Midwest

+29% +127%

- 2%

Total 13,319 Other Southwest AirTran

Dec

- 09 Dec

- 08 

### Exhibit 11 : Year

- over
- year Capacity at MKE

Exhibit 12 : Sample Advertising**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 15 2009 66% 2008 61%

66% 64% 2010

62% 0 60% 58% 63% The goal of the 2009 grant was to reduce the impact on leakage of the fare war and growth in low cost service at MKE. The grant was clearly a success, with ATW regaining four percent of the pass engers from its
natural catchment area.

However, t he recent loss of one quarter of ATW capacity threatens the gains made in the last two years

– as passengers are faced with fewer competitive options from their home airport; they are more likely to
undert ake the drive to MKE.

Source: Seabury APG analysis of MIDT booking and ARC ticketing data

Recapturing leakage is a battle of passenger perception, which can take a long time to alter. Lower fares and greater competition have taught many of ATW’s passen gers to drive two ho urs down Route 41 to
MKE. For passenger s to unlearn that lesson, it takes repeated observations that there are good service options available from ATW at reasonable fares.

Winning the current grant application would, then, not only he lp ATW win new service, but would build on the investment the Department of Transportation has already made in the community. 

### Exhibit 13 : Leakage from ATW Natural Catchment Area**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 16 

# Strategic Plan

The strategic plan calls ATW to partner with FVTC to initially study a business plan and then implement
an AR FF training program, cross

- utilizing staff, students and resources to reduce ATW’s ARFF expense.



## Goals

Appleton has two primary goals in seeking this SCASDP grant, both of which would be fulfilled by the strategic plan:

• Retain current air service and attr act new service through a reduction in airline fees

• Develop a sustainable business model for reducing ARFF expenses and providing high quality training, a model that could be used at other airports



## Funding Overview

As detailed in Exhibit 14 : Sources and Uses of Funds



### Exhibit 14 : Sources and Uses of Funds Community Airport DOT Total Fund Uses Cash In

- Kind Cash In

- Kind Grant Study $10,000 $80,000 $10,000 $75,000 $175,000

Start

- Up $30,000 $350,00 0 $380,000

Total $90,000 $40,000 $ 425 ,000 $555,000

The community cash comes from Fox Cities Economic Development Partnership, a business attraction organization comprised of the municipalities, organizations and utilities interested in the economic gr owth of the Fox Cities area

.

The community in

- kind comes from FVTC who will dedicate staffing to the completion of the strategic plan. Note that this application does not factor in the investment FV T C would be making in the launch and running of the new program.

ATW is dedicating new money to both support the study and the start

- up.**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 17 

## Use of Funds / Timeline
Business Model Study for ARFF T raining A cademy The study funds will be used to fund a study performed for FV T C using a third party consulting firm a long with their internal staff and support from ATW. The consulting firm will be selected following an RFP process. A key element of the training academy will be cross

- utilizing staff and resources to reduce ARFF expenses at ATW. Should the study cost l ess than the $85,000 in cash budgeted the remaining amount would not be invoiced against the grant. Should the study cost more than $85,000, ATW and
FV T C are prepared to cover the additional amount.

The tentative scope of the study would include:

1. Trainin g requirements

a. Basic ARFF b. Advanced courses

c. Instructor certifications needed 2. Facility requirements

a. Apparatus b. Live burn training facility

c. Special ARFF requirements

— need to train with Class B foam? AFFF foam? What equipment is required, how to contain/dec ontaminate the runoff? 3. Market research

a. Where else can you get this training? Who is the competition? b. What’s the size of the market? How many firefighters would like to have this training? Is there a demand, and where is that demand (Midwest, nationwide)?

c. Are there ongoing training needs? d. Job market?

e. What’s the typical rate structure? 4. Benefits of the proposed partnership and how to structure it

a. For key stakeholders ATW and FVTC b. Also consider partnerships with other firms in the community such as Oshkosh fo r their Pierce division which manufactures fire trucks, ProTec who is vendor providing ARFF services at ATW and other airports, and other firms 5. Financial plan

a. Start

- up costs and sources to fund them b. Staffing requirements

c. Ongoing costs and cost

- recovery**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 18 

### F unding for S tart
- up and Y ear O ne E xpenses The Business Model Study will define the expenses required to start

- up the Training Academy and operated it for the first year. Grant funds will be applied against the actual expenses with FVTC bearing a significant portion of those expenses.



## Funding Assurances

ATW will be the coordinator between the public/private partners for the DOT grant , with FVTC significant involved in the administration of the programs . As well, ATW will take responsibility for the grant fun ds.



## Milestones and Monitoring

ATW has established realistic timelines for implementing the plans presented here. Exhibit 15 establishes the key milestones. ATW will have ultimate responsibility for monitoring th e successful implementation of the grant program. It will partner with FVTC to coordinate the public / private contributions. Key areas
which will be monitored include:

• Detailed project timelines and budgets

• Consulting RFP and work performance

• Start

- up and year one operating benchmarks



### Exhibit 15 : Sample Schedule (Actual dependent on grant announcement / contract dates)

2012 2013 2014
6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9

RFP Submission Window

Complete Study Contract with Consultant Evaluate Proposals

Start

- up / Year 1 Pre

- launch Year 1 Operations Status Report to DOT Activity

Decision on Launching Issue RFP Study Grant Award File Grant Application**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 19 

## Sustainability

By starting with a detailed business plan, ATW and FVTC will decide to launch only if there is long

- term sustainability. FVTC has expanded its offerings through the years, understands the risks of doing so and will be committed to making the ARFF program work.



## Alternate Plan

None.



## Measure of Success

The ultimate success for the program will result in a r ecurring reduction in ARFF expenses at ATW and leveraging the reduced costs to maintain current service and attract new service.**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 20 

# Conclusion

Outagamie Regional Airport respectfully request s a grant in the amount of $ 4 25
, 000 to fund a Business
Mode l Study for an ARFF Training Academy and to fund a portion of start

- up and y ear
- one e xpenses. ATW believes it should be given priority consideration for the Small Community Air Service Program having met the criteria as set forth in the statue as follows:

• Air fares are higher than the national average air fares for all communities ;

 Year

- ending 4Q1 1
, ATW’s average domestic fare was $192, well above the national average of $171, and much higher than the average domestic fare for MKE, at $139.

• the community or consortium will provide a portion of the cost of the activity from local sources other than airport revenue sources;

 The program will be directly implemented with FVTC who will be in $80,000 of in

- kind for
the ini tial study and provide signific ant resources in start ing

- up and r unning the program. Fox Cities Economic Development Partnership has also pledged $10,000 in cash to help
f und the initial study.

• the community or consortium has established or will establish a public

- private partnership to facilitate air carrier service to the public;

 FVTC is an integral part of the plan with support from Fox Cities Economic Development Partnership

• the assistance will provide material benefits to a broad segment of the traveling public, including business, educational institutions, and other enterprises, whose access to the national air transportation system is limited ; and

 With the potential for $200,000 per year in recurring reductions to ARFF fees the impact

w ill be spread across all travelers.

• the assistance will be used in a timely manner.

 ATW has provided a detailed plan which is ready to launch

ATW deserves additional consideration given the innovative approach to air service development
, providing not only benefits to the local comm unity but a new model for f ire fighter training and d eveloping a plan which could serve as a working model for other communities

.**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 21 

# Appendix A : Required Summary Information

A. Applicant Information

Not a Consortium Community now receives EAS subsidy

Interstate Consortium Intrastate Consortium
Community previously received a Small Community Grant
If previous recipient, date of grant:

_____ 2009

____ expiration date of grant:

_____ None

____ 

# B. Public/Private Par tnership

Public:

1. Outagamie County Regional Airport

Private:

1. Travel Advisory Group



# C. Project Proposal

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy
Surface Transportation Regional Service Revenue Guarant ee

Launch New Carrier Start

- up Cost Offset First Service
Study Secure Additional Service Other (specify)**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 22 

# D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 23 

# E. Project C ost

L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT

1 Federal amount requested 425 ,000

2 State cash financial contribution 0

Local cash financial contribution

3a Airport cash funds 40,000

3b Non

- airport cash funds 10,000

3 Total local cash fund s (3a + 3b) 50,000

4 TOTAL CASH FUNDING (1 + 2 + 3) 475,000

In

- Kind contribution

5a Airport In

- Kind contribution**

5b Other In

- Kind contribution** 80,000

5 TOTAL IN

- KIND CONTRIBUTION
(7a + 7b) 80,000

6 TOTAL PROJECT COST (4 + 5 ) 555,0 00



# F. In

- Kind Contributions**

For funds in lines 5 a (Air port In

- Kind contribution) and 5 b (Other In

- Kind contribution), please describe the source(s) of fund(s) for each.

$80 ,000 : FVTC will dedicate staffing to the completion of the strategic plan study**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 24 

# G. 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 no t covered by E.O. 12372.



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

No Yes (explain) _____________________________________________**Outagamie County Re gional Airport**  **Small Community Air Service Development Grant Application**

**– June 2012** 

Page | 25 

# Appendix B : Letters of Support