Page 1 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 Small Community Air Service Development Program


### DOCKET DOT

- OST

- 201 1

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Application from the Town of Massena , New York Submitted July 30, 2011



## GRANT PROPOSAL

Background

This application is being filed by the Town of Massena as an Essential Air Servic es (EAS) community that currently receives subsidized air service under the EAS program. This proposal is limited to the marketing and promotion of EAS service at our airport, which is currently provided by Cape Air. The Town understands that EAS

- subsidi zed communities such as ours cannot use grant funds to support any new, competing air service, and that no funds can be authorized to support additional flights by EAS carriers or changes to those carriers’ existing schedules, in order to avoid conflict wi th the EAS program.

This application builds upon the success we achieved in a prior SCASDP funding round. In 2005,

t he Town of Massena received a $400,000 Small Community Air Service grant, which was awarded to help the community market the Massena Inter national Airpo rt and to develop
sustainable service.

For the reasons explained below, the grant was extended for an additional one

- year term (for a total of four years), a final report was filed in December of 2009, and the Town has received the
full re imbursement of all withheld funds from DOT.

During the course of the 2005 grant period, the community experienced two serious setbacks that delayed our ability to carry out our original grant objectives :

 The EAS carrier serving our region, Big Sky, cea sed its services to our airport during the first year of its contract, leaving our airport with no air service at all for eight months, until a replacement carrier , Cape Air, was able to commence service.

 The Seaway International B ridge that connects Ma ssena to Cornwall, Ontario, was unexpectedly closed by a Mohawk protest demonstration for six weeks; this occurred on the day we held our first Canadian marketing event for a campaign which emphasized the easy connections between Cornwall and the Massena I nternational Airport, which is “ right across the bridge. ”

These unforeseen difficulties seriously limited and delayed airport marketing efforts , as we had
to switch gears to focus on crisis management and attracting a new carrier, and obviously could

not market the airport until a new carrier was in place and the bridge was open again.Page 2 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 Despite the s e obstacles , a number of key strategies were implemented, which collectively provide a strong foundation for the activities proposed in this grant application :

 We gathered the data needed to demonstrate that Massena had the airport in frastructure,
location and the catch ment area size to transition out of the EAS system over time.

 From our outreach to carriers, we learned we needed to increase our EAS numbers substantially before our current EAS carrier, or others, would consider bringing sustainable service to our airport.

 We learned how to work with airlines, and recruited a team of community leaders to support air service development and who participated in our first ever market presentation to an airline company

.

 We created a new airport website ( www.massenainternationalairport.com ), built relationships with the major travel users in our catch ment area, and implemented a marketing campaign to promote the airport throughout the region

.

Unfortunately, we reached the end of the extended 2005 grant award period just when these efforts were beginning to bear fruit.

The funding we are requesting in t his SCASDP grant application would be used to build upon the foundation laid in the 2005 grant period and is focused on the requirement that EAS airports must apply for funding only to market their EAS service. That objective is exactly in line
with where we need to go next with our airport, as we have identified increasing our EAS ridership as the next step for developing our air service market.

With continued U.S. DOT investment, we will:

 Implement a comprehensive and sustained traditional and new medi a campaign to market and promote Massena’s existing EAS service to local residents

– thus building on the

Massena International Airport brand awareness e stablished under the first grant , and
“l essons learned” from our first promotional campaign

.

 Work with university partners to develop additional creative promotional approaches to

attract increased ridership from these large travel users

.

 Work with the economic development agencies and interests in the region to increase business use of the airport by cur rent and emerging drivers for economic growth.

 Broaden marketing efforts beyond the local region to attract the additional passengers needed to increase enplanements to the 7,500 level or more.Page 3 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 Since we received our first Small Community Air Service gra nt, Massena has experienced the closure of one of our major employers, a General Motors plant which had operated here for nearly 50 years. Economic development in Massena and Northern New York has lagged behind
the rest of the state and nation for decades , and this plant closure has been an additional blow. Transportation barriers have been identified as one of the key reasons for the region’s lack of development.

With DOT funding to help us launch an aggressive EAS marketing campaign at this time, we will:

 Ensure that the DOT will get the most return for the EAS subsidy dollars it provides to the

Massena International Airport.

 Achieve the milestones of first reaching 5,000 and then 7,500 enplanements by the end of the grant period.

 Tackle one of the key transportation barriers limiting our region’s economic growth.

 Provide Massena with a rallying point for promoting the community at a difficult economic

time.

 Use air service as a catalyst for initiating new economic development strategies for Masse na as a Canadian border community.



## “Gateway of the St. Lawrence Valley”Page 4 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Desc ription of Existing Air S ervice

 Carrier

– Massena is currently served by Cape Air, an employee

- owned company founded in 1989 that has been recognized by the FAA with a Diamo nd Award for Aircraft Maintenance. Cape Air partners with at least 20 major airlines and has codeshares with Continental, Jet Blue and American Airlines. The third EAS provider to serve Massena over the last six years, Cape Air is widely credited for rest oring confidence at Massena and the four other airports it serves in Northern New York under the EAS program, after a period in which all communities endured very poor service from Big Sky Airlines, and then no service at all when that airline ceased opera tions nine months into its EAS contract.

 Service frequency

– Cape Air runs three flights daily, seven days a week (21 weekly departures). Flights are staggered to accommodate arrivals and departures at different

times

– flights leave at 7:07 AM, 12:5 7 PM and 5:06 PM; return flights arrive at 11:35 AM,
3:36 PM and 7:45 PM.

 Nonstop destinations

– Cape Air provides non

- stop service between Massena and Albany, New York. Albany is a destination that has been requested by air travelers in the region

sin ce 2004. Cape Air is the first EAS carrier to make this interest the basis for their EAS proposal. The Albany service has become a popular shuttle service between the Massena region and the State Capital, eliminating a four

- hour drive through the Adironda cks for meetings, working with elected officials and state agencies, or connecting with the national air transportation system to reach destinations throughout the country.

In 2010, Cape Air introduced flights from Massena to Boston, with a stop in Alba ny. Currently, passengers are offered three daily flights to Boston and three return trip opportunities. The introduction of Boston service has boosted enplanement numbers, as
our local rural residents can now reach two destinations that meet their air t ravel ne eds and interests. As a result, enplanements achieved the 700 passengers/month level for each month in the last quarter, and topped the 800 passenger level by mid

- July.

 Fares

– Cape Air offers a $69.50 one

- way fare, and runs periodic $99 round trip ticket specials; Bos t on flights are $104.95 for departures and $94.50 on the return

– so passengers can travel to and from the U.S. East Coast for only $200. Cape Air also offers discount pricing for those purchasing books of tickets for frequent tra vel. For example, Cape Air’s

10

- ticket discount commuter book for travel between Massena and Albany is $499; commuter books for travel between Massena and Boston are $849.



###  Equipment types

– Cape Air operates Cessna 402s, which fits with the airline’s foc us on serving island communities and small EAS markets. While some have expressed a preference for larger planes, area travelers understand the size of the aircraft is adequate for short flights to Albany, or for the jump from Albany to Boston.Page 5 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Sy nopsis of the History of Air S ervice in Massena

Service to Massena has historically required an EAS subsidy. Through 2006, Massena was served by US Airways Express (M ESA Airlines), which operated weekday, s mall turboprop

services to Pittsburgh with stops in Ma ssena, Ogdensburg and Watertown . This service was acceptable at the time that Alcoa (our major employer) required frequent travel to Pittsburgh

, and when US Airways operated a connecting hub there. As both of these elements were eliminated, Pittsburgh fe ll out of favor as a destination by local air travelers, who had also become increasingly intolerant of the up

- and

- down nature of the flight that made three stops in the region at communities people could reach faster by car, before reaching a hub.

In t he early part of the 2000 decade, local elected officials began to lobby MESA and DOT to
eliminate the three

- stop schedule, and to make Albany the destination for flights out of Massena. To support their efforts, officials commissioned a survey in 2002 by the Merwin Rural
Services Institute of SUNY Potsdam to document the travel destination interests of local air travelers. A total of 82 businesses and institutions in St. Lawrence County provided these

responses:

 Nearly 70% would be more likely to use l ocal air service if the destination hub were changed from Pittsburgh to Albany.

 N early 75% were currently traveling out of the region, to Syracuse or Canada, to board flights , despite the higher taxes and fees involved that make the cost of Canadian air travel
very steep.

 72% identified Albany a s one of their top three regular travel destinations.

 Less than 30 % indicated that they utilized local air service at any level ; for the majority , an

out

- of

- county airport was used in order to reach a destinat ion other than Pittsburgh.

 Additional traffic leakage from the St. Lawrence catchment area occu r r ed due to travelers choosing to drive, rather than fly, to their destinations ; the lack of flights to Albany left travelers with no other option than driving for meetings and business in the state capital.

Armed with this data, officials in Massena and surrounding areas solicited letters of support to change the destination for Massena flights to Albany. Letters were received from leading industries, institu tions of higher education and officials at all levels of government, as well as from the region’s state and federal elected representatives. The switch in hubs was also supported by the St. Re gis Mohawk Tribe, General Motor s Powertrain Group and the New York Power Authority.

Despite having this ammunition, the community was unsuccessful in lobbying to change the destination to Albany in the 2003 EAS bidding round. As a result, MESA continued to fly planes that were largely empty, while local travelers i ncurred the added costs, frustration and 3

- 4 hour drive times to airports, or longer drives to other destinations, because of poor EAS service.Page 6 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 Frustration with MESA, as well as the efforts of a local entrepreneur, eventually led to a more organized, aggre ssive and collaborative effort to improve air service in Massena. Efforts were given a significant boost in July 2004, when the entrepreneur worked with Bombardier to bring a small jet into Massena which was used to take community leaders from throughout St. Lawrence County on a round trip flight to Binghamton, New York; this “consciousness raising” effort woke up the region to the possibility that better air service could be had, and led directly to the founding of the St. Lawrence Valley Air Task Force.

Co

- chaired by the Business Development Corporation for a Greater Massena and the St. Lawrence County Chamber of Commerce, the Air Task Force eventually numbered 20 and included representation from several local governments, county interests, educational

i nstitutions, unions, travel agencies and economic development agencies.

The Air Task Force operated from 2004 to 2009, and initiated a number of air service development efforts, which are summarized starting on page 8. Most importantly, the Task

Force served as the coordinating body for joint meetings of all five EAS airports in the region to work together in transitioning EAS service from MESA’s multi

- stop flights to Pittsburgh to a different, more favored destination. In the next round of EAS biddin g, the five EAS

- served communities jointly backed Big Sky Airlines’ proposal to serve Boston. In April of 2007, Big Sky initiated four roundtrip flights to Boston with connecting service through Delta, on Beechcraft 1900D turboprops

, from Massena and the four other EAS airports in the region.

Big Sky’s arrival was well received

– the official launch event in Massena drew a standing room only crowd, and ticket sales at the introductory price of $99 were strong. Unfortunately, there were also early indic ators that Big Sky had bitten off more than it could chew in expanding into
the northeast

– its relationship with Delta proved to be problematic, and internal changes at Big Sky, including the loss of key personnel, soon began to impact customer service. Air Task Force members met as early as late May to resolve concerns, but the problems continued to grow throughout the summer and fall. By the end of the year, financial difficulties, weather problems in Boston, difficulty in booking flights through Delta ’s reservation system, customer complaints, political fallout, and negative media coverage all combined to create a “perfect storm” that shut down Big Sky’s northeast service offerings in December of 2007.

Air Task Force organizers mobilized over the ye ar

- end holidays to advocate for affected passengers, to keep the community informed, and to coordinate region

- wide efforts to secure a new provider by working with federal officials, NYS DOT, U.S. DOT and all EAS airport owners.

Cape Air was retained as the new EAS carrier in March of 2008, and began phasing in their service at all airports in the Northern New York region. For Massena, this meant a start date of September, 2008. After eight months without any flights at all, local residents were welcom ing, especially due to Cape Air’s decision to finally provide travelers out of Massena with their destination of choice, by offering direct flights to Albany. After the negative experience with Big Sky, travelers were also more willing to accept Cape Air’ s 9

- seat planes, even though this was a smaller craft than some travelers preferred.Page 7 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 As Cape Air was awarded service in 2008 under an emergency order, Massena’s EAS contract was rebid in 2010. The EAS bid process drew three airlines, and prompted much int erest and debate in the local community. An offer by Gulf Stream was favored by those who preferred their proposal to bring in larger planes that would provide direct flights to Boston. A new EAS
entrant, Charter Air Transport, emerged which drew both in terest and skepticism, as they were offering an innovative, but untested approach to using charter services to meet EAS needs.

Cape Air proposed continued service to Albany, along with introducing service to Boston via Albany. The airline also proposed setting up a local ticket office to enhance their service to the community. Town officials were clearly torn between the opportunity for larger planes and direct flights to a national hub versus their trust in and appreciation of Cape Air’s stability and their proven track record of reliable service and community partnership. After much debate, and two votes, Cape Air won the community’s recommendation.

Since the start of a new round of EAS service in 2010, Cape Air’s enplanements in Massena have

cont inued to show stable and steady growth. The combination of flights to Albany and the addition of the Boston destination provide Massena with the potential to rea ch 5,000 enplanements this year. W orking with the Town, and with the additional marketing do llars requested in this grant, Cape Air officials have indicated they are optimistic of reaching 5,000 enplanement s again in 2012, and of reaching 7,500 enplanements or more by the end of 2014.

Enplanement data for Massena fr om January of 2000 to July of 2011 (see chart on next page) reflects the fluctuating numbers experienced at the end of the MESA years, the positive and negative response of the community to Big Sky at the start and finish of its service to Massena,
and the growth in enplanement numbers that the Albany and Boston destination s , reliable service, and good customer service of Cape Air have generated.Page 8 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 MONTHLY PASSENGER ENPLANEMENT REPORT (2000 compared to Jan. 2003

– June, 2011)

MASSENA INTERNATIONAL AIRPO RT, MASSENA, NY

MESA No Serv.

MESA MESA MESA MESA MESA Big Sky C. Air C. Air C. Air C. Air

2000 2003 2004 2005 2006 2007 2008 2009 2010 2011
January 300 220 238 312 252 197 0 270 260 219 February 293 187 271 317 240 177 0 267 234 209

Marc h 318 204 270 372 274 193 0 285 269 295

1st QTR 911 611 779 1001 766 567 0 822 763 723 April 262 226 265 369 224 164 0 274 296 382
May 306 195 258 372 281 245 0 257 269 364

June 291 197 262 305 272 237 0 217 261 365
2nd QTR 859 618 785 1046 777 646 0 748 826 1111 July 282 295 307 359 323 194 0 286 291
August 350 240 340 332 361 198 0 272 307 September 291 246 325 300 290 197 113 246 262
3rd QTR 923 781 972 991 974 589 113 804 860

October 373 318 374 308 264 192 303 324 326

November 333 238 3 56 299 232 138 305 335 294

December 271 234 321 247 172 73 296 284 289
4th QTR 977 790 1051 854 668 403 904 943 909

Total Pax 3670 2800 3587 3892 3185 2205 1017 3317 3358



### Local Air S e rvice D evelopment E fforts and Results, 2004 to July 2011

The St. Lawrence Valley Air Task Force was founded in August of 2004 to “establis h affordable, convenient and sustainable air service in Massena to serve the St. Lawrence County, Franklin County, Akwesasne, and Canadian markets.” The Air Task Force was formed by a Steering Committee whose members included the Town of Massena, the Business Development Corporation for a Greater Massena (BDC) , the Greater Massena Chamber of Commerce, the St. Lawrence County Board of Legislators, St. Lawrence County Cham ber of Commerce

– Economic Development Committee, St. Lawrence County IDA, the Merwin Rural Services Institute of SUNY Potsdam, the St. Regis Mohawk Tribe, and community member air service advocates.

The BDC and County Chamber agreed to co

- chair the Task Force, with the BDC providing staffing services. Eventually, the Air Task Force grew to 20 individuals, with representatives from St. Lawrence University, SUNY Canton, the Canton Office of Economic Development, the Town and Village of Malone, and an area labor union representative and travel agent joining during the time period the Task Force facilitated airport development efforts for Massena.Page 9 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 In addition to facilitating the transition in EAS service providers from M ESA to Cape Air, and managing the cri sis caused by the shut down of Big Sky Airlines, the Air Task Force completed the following air service development efforts between August 2004 and September 2009:

 Retained a technical consultant to issue an RFP for air service development efforts, evalua te responses to the RFP, and recommend the best professional firm for the community.

 Contracted with Innova Aviation to conduct a market survey, make the case for concentrating air travel in Massena, and write and administer a U.S. DOT Small Community

Air Service Development Program grant to advance airport development efforts.

 Secured and implemented the $400,000 SCASDP grant to pursue sustainable, non

subsidized air service for the Massena International Airport, to conduct outreach with
carriers on beha lf of the community, and to initiate a marketing effort for the airport.

 Contributed $150,000 in cash investment and $250,000 in in

- kind services to advance the goals of the grant.

 Established the relationships that led to the creation of the North Count ry Airport Alliance

,
a group of EAS

- served airports working together on shared airport concerns.

 Orchestrated a “sales pitch” luncheon event with the President of Big Sky, while customer services were being addressed behind the scenes, to encourage the ai rline to move beyond EAS service; participants included Alcoa, the New York Power Authority, all four colleges and universities, Massena Memorial Hospital, and Cornwall economic development and tourism officials This was a good dress rehearsal for additi onal market presentations to be
made in the future with more solid candidates.

 Educated major travel users, such as the colleges and universities, on the benefits of concentrating their air travel at the Massena International Airport, in order to increase its enplanement numbers to a level that will facilitate transition out of the EAS system

 Developed working relationships with Canadian and Mohawk economic development, tourism and chamber representatives, as part of international economic development

par tnership discussions; these relationships have generated regional interest and support for using Massena’s airport as an economic development tool to advance the border region.

 Developed professional promotional materials and launched a major, introductor y advertising/marketing effort for the Massena International Airport in Canada, Northern New York communities, Akwesasne, and with major travel users such as the colleges. Efforts included the development of a new airport logo, website, rack cards, banner s, events for Canadian travel professionals, media campaigns, and promotion of the Massena
International Airport at consumer and business shows.

 Facilitated the introduction of Cape Air to the region, helping it to establish its brand and relationships wi th representatives of key market segments and community leaders.Page 10 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 In the post

- Task Force years (2010 to date), the Town Supervisor, Airport Committee, and the Business Development Corporation for a Greater Massena have taken up the banner for the developmen t of the Massena International A irport and enhancing the air service it offers. The
Town funded a 2010 SCASDP application to continue the marketing efforts that were just getting underway when the 2005 grant fund concluded; this application was not funded , but the outreach to grant partners in 2010, and marketing strategies developed at that time have been expanded upon and incorporated into this 2011 application. The Town also facilitated an airport business planning process, which identified key strateg ies to help improve the profitability of the airport through continued marketing efforts of the airport and its existing services, attracting business/corporate owners to grow general aviation revenues, increasing enplanements to document the need for a ru nway extension, and developing hangar space and economic development projects at the airport and in aligned areas.

The Mayor of Cornwall, the Mayor of Massena and the Town Supervisor for Massena have also joined forces to support the development of runway extensions at the Massena and Cornwall airports, which will provide additional air passenger options in Massena, and improved air freight service in Cornwall, mutually benefit ting both communities.

The St. Lawrence County Legislature’s Economic Enh anceme nt Committee is supportive of the development of the Massena ’s a irport as a key economic driver , and the County’s endorsement
of Massena a irport development initiatives is on track for review by the full legislature.



### Air Service Development at Massena International Airport Key Achievements, 2004 to July 2011

 Secured flights to Albany, a top destination fo r local air travelers

.

 Gained a foothold in the Canadian market

.

 Increased awareness among community leaders and major travel users of how to work with the air service industry

.

 Developed a cooperative, rather than confrontational, relationship with EAS carriers

.

 Restored public confidence after eight months without any service

.

 Secured the highest level of enplanements among all EAS airports in the region

.

 With the arrival of Cape Air, enplan ements increased by 10% in 2009 and by 43% from July

2010 t o July 2011.

 An Airport Business Plan has been developed which lays out a clear strategy for the future development of the airport to transition it to a profitable driver for economic growth

.

 Advocacy efforts within the County and the Massena/Cornwall bo rder region are garnering consensus and support for the further development of Massena’s Airport facilities.Page 11 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Description of Local Air Service Needs/D eficiencies

About Massena, New York

The Town of Massena, New York is located in St. Lawrence County on the New York/Ontario, Canada border, in the heart of the state’s sprawling, rural and geographically isolated “North Country”.

Sandwiched between the Adirondack Park to the south and the St. Lawrence River to the North,
Massena is located in the center of a six

- county area that is one of the few regions of the U.S.
without a four

- lane highway. There is also no major airport; ins tead, Massena operates one of five small airports situated throughout the region which operate under EAS subsidies.

Economic growth has been strongest at the edges of the region, which are home to the only communities that have been able to grow to the si ze of cities

– Watertown to the west, and Plattsburgh to the east. In between, Massena is one of over 200 towns and villages which have small, “no growth” economies supported by agriculture, higher education, health care, or government services. Economic sectors that are beginning to grow include gaming activities at the adjacent St. Regis Mohawk Akwesasne reservation, where a casino expansion is underway, and outdoor recreation/heritage tourism, as the region learns how to capitalize on its rivers and
la kes, undeveloped land, and colonial history.

A variety of resource

- based industries, such as mining and forestry, as well as manufacturing and retail services, are also scattered throughout the region. Massena, which is home to the region’s only shopping mall and the oldest Alcoa facility in North America, has built its economy on being an industrial and retail center. Unfortunately, these economic sectors are both in serious decline, and this has begun to take a toll on the community and region.

EMPLOYMENT STATUS

In labor force 57.9%

N ot in labor force 42.1%

OCCUPATION Management/professional 25.5% Service occupations 22.2% Sales and office occupations 24.8% Manufacturing 17.4%

Retail trade 16.65%

Educ./health/social services 24.7%

Government workers 17.3%

INCOME

Median h ousehold income $31,391 Median family income $38,696 Per capita income $18,111

Massena NY 2000 Census DataPage 12 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Ne eds and Opportunities to be met by Marketing Massena’s EAS S ervice

Insufficient transportation infrastructure is a major contributor to the region’s lack of progress, as documented in two different transportation studies

– a March 2002 North Country

Trans portation Study implemented by the Development Authority of the North Country with $1.5 M in funding secured by former Congressman John McHugh, and a 2008 Northern Tier Expressway Study prepared by Wilbur Smith Associates for the NYS DOT and the Federal

Hi ghway Administration. Findings in these studies related to air service concluded, among other things, that consolidating service at one or more regional airport(s) would lead to improved service and increased benefits for the region, and that poor transpo rtation negatively impacts potential student enrollment in the region’s colleges and universities, and is a major
detriment to student recruitment.

A lack of transportation infrastructure, however, does not translate into a lack of travel needs and opport unities. The main drivers in these areas include:

Current air service travel needs

 With a border location on a major waterway, Massena is a strategic operations center for state and federal power and security agencies that employ large numbers of worker s who must maintain relationships with offices in other parts of the state and nation.

 The multi

- national Alcoa Corporation has operated a manufacturing facility in Massena for over 100 years; a recently signed contract assures the plant’s operation for the foreseeable future. The largest employer in the area, Alcoa provides a consistent base of air travelers

.

 Additional major employers in the Massena area include four colleges and universities located in the nearby communities of Canton and Potsdam; t heir financial stability depends upon being able to attract students from outside the region to reach their enrollment goals.

 A northern climate and an aging population create a substantial “snowbird” traveling public
in winter months when travel by autom obile to larger cities for flights south is difficult and dangerous.

Key air service opportunities

Professional consultant efforts, funded by the 2005 SCASDP grant, confirmed that the Massena
International Airport’s location, and its capacity for expan sion, made it the best candidate in
Northern New York to attract and sustain non

- subsidized service in the future. While intrigued by Massena’s potential, carriers were interested in seeing increased growth in EAS

- funded travel before they would consider bringing sustainable service to the community.Page 13 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Massena International Airport Catchment Area

The St. Regis Mohawk Akwesasne community, which straddles the border and is adjacent to Massena, has made a substantial investment in its cas ino/gaming operations, both of which are increasing visitors to the region. Like the colleges and universities in the region, the Mohawks currently base their promotional strategies on a driving market, but all have an interest in expanding their markets if air service continues to improve in Massena.

Massena is located directly across the St. Lawrence River from the Canadian city of Cornwall, Ontario, with each community anchoring one end of an international bridge.

Cornwall’s airport is smaller than Massena’s and has no commercial service. The population of Cornwall and its immediate surrounding area is 65,000, and 80,000 including outlying regions.
While Cornwall

- area Canadians patronize Massena’s restaurants, entertainment and shopping

venues, th ey travel to Syracuse, Plattsburgh or Burlington for affordable U.S. flights, particularly to points south.

A 2008

- 09 Retention and Expansion Study by the Cornwall Economic Development Department revealed that 71% of respondents from the city’s manufact uring sector travel out of the region on business; 41% utilized air for some of these travel needs, with the majority using Montreal or Ottawa as departure points. U.S. travel destinations accounted for 40% of travel needs, with
east coast destinations ac counting for 20% of that total. Increasing the number of Canadians using Massena’s EAS service to reach U.S. destinations is a key part of this funding request; they are willing to cross the border to access U.S. services, and are our airport’s largest un tapped
market.Page 14 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 The work done by the St. Lawrence Valley Air Task Force, with guidance from the Innova
Aviation and InterVISTAS air service industry consultants funded by our 2005 U

. S

. DOT SCASDP
grant award

, identified six major needs/deficiencies which would benefit from increased EAS enplanement numbers:

1. Massena ’s airport needs a runway extension to attract jet service; greater enplanement numbers will help to attract a jet carrier and to justify federal investment to lengthen the runway.

2. In the 2005 grant period, Massena wa s currently serving less than 10% of the enplanements in its total extended catchment area. While the catchment area is large enough to maintain a sustainable air service market, non

- EAS carriers want to see higher enplanement figu res before they will invest in the community.

3. The existing nine

- seat plane service is seen as adequate, but not ideal, especially by passengers not comfortable with flying in smaller aircraft with a single pilot on board; the best way to convince the curr ent EAS provider to bring in larger craft, or to retain a carrier offering larger planes, is by filling as many seats as possible.

4. Improved air service will help large travel users, such as our universities to overcome transportation barriers that increa se costs or create recruitment disadvantages

, and major drivers for economic development, like the Mohawk gaming operations that are now dependent on a “driving” market, to increase their impact on the local and regional economy; continual contacts and pro motional efforts are needed to encourage major
travel users to concentrate their air traffic at the Massena International Airport so that a
sustainable service level can be reached.

5. While Massena’s “hassle free” airport experience and lower fares are attr active to Canadian travelers, they need to be sold on supporting the existing EAS service as a first step to attracting larger planes/direct flights to vacation destinations or a major hub.

6. Massena will need to secure the support and cooperation of Cana dian and Mohawk leaders in order to achieve its goal of sustainable service. Based on our experience with the major travel users on the U.S. side, positioning air service in Massena as a regional economic development tool, and incorporating support for th e EAS service into regional economic development strategies, is the best way to achieve this.

A 2010 Airport Business Plan prepared for NYS DOT by R.A. Weidemann & Associates
documented that the Massena International Airport has historically been operated as transportation service to local residents (in the same category as roads), rather than as a business operation. As a result the Airport has operated at a deficit for years, with the level of expenses exceeding income currently averaging 33.51%.Page 15 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 Wit h the closure of our GM plan t, an assessment reduction in the millions for the shopping mall based in Massena, and one of the highest unemployment rates in New York State , the Town recognizes that it cannot continue to subsidize the operation of the Massen a International Airport in the long

- term. T he Airport Business Plan identifies four key strategies/opportunities that will, over time, enable the airport to move from a deficit operation to a profitable driver of economic growth:

 Enhanced Marketing, to b oost awareness and usage of existing services.

 Attracting Business/Corporate Operators to grow general aviation revenues.

 Increasing passenger numbers from the region, including Canada, to document the need for a runway extension that would support the t ransition from EAS to commercial service.

 Hanger Development and aligned business development on the airport grounds/surrounding commercial areas to diversify and increase revenue sources.

To help develop marketing and promotion messages for specific mar k ets, and to measure the
results and effectiveness of the campaign, there is also a significant need for research and data collection. Specific information needs include :

 Gathering of data on passengers flying on Cape Air at Massena , including zi p cod e origin and
final destination (Albany or Boston ) ; this information will be provided by Cape Air and there is the possibility of obtaining other demographic data as well.

 More detailed data and analysis of the air service needs, interests, destinations, and airport
choice s of those in the Massena catchment area, particularly those in four target markets:

 Massena

- area residents dependent upon the EAS system to access the national air transportation system.

 Large travel users, particularly our four univers ity centers.

 Drivers of economic growth that can increase employment/market share through improved air service, such as the Akwesasne Mohawk gaming operations, and opportunities identified through the region’s economic development offices

.

 Canadian and M ohawk travelers who represent the additional enplanement numbers needed for Massena to develop its airport and introduce air service options that will advance the community/region as a whole.

 C ost comparisons between Massena and other airports , to documen t the financial advantages when travelers “Fly Massena”.

 How best to market the existing EAS service to passengers within the catchment area, as measured by data development and analysis.Page 16 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 The Strategic Plan we have developed to address these needs, oppor tunities and deficiencies is based upon reaching or surpassing a level of 5,000 annual enplanements in 2012 and reaching 7,500 enplanements by 2014.

These enplanement goal targets are based on the following:

 MESA achieved 3,892 enplanements on a 19

- sea ter aircraft in 2005 , the year in which US Airways substantially de

- hubbed Pittsburgh, transferring many of its flights to Philadelphia International Airport.

 Traffic in the following years at M assena declined to 3,185 enplanements in 2006, then to 2,20 5 in 2007, and was discontinued altogether with the demise of Big Sky Airlines in January of 2008 ( after having only commenced service in the second quarter of 2007).

 Since beginning service in September of 2008, Cape Air achieved enplanements of 1,017 in
its first five start

- up months, and in its first full calendar year of operation, 2009, brought enplanements back up to 3,317. As of the 2 nd quarter, 2011, Cape Air’s enplanements have exceeded the total number of enplanements MESA reached in calendar 20 05.

 Cape Air officials state that growth from July 20 10

- July 20 11 was 43%, putting the airport on track to achieve enplanement levels of 5,000 this year. This is a figure Cape Air expects to sustain in 2012, and in crease to 7,500 or more by 2014, especi ally with a stronger marketing push in place that includes a focus both on Albany and the new Boston service. In addition, Cape Air is working on behalf of Massena to have MSS added to the JetBlue website, which would effectively make Massena a JetBlue ci ty, providing a highly attractive advantage to
feature in new promotions.



### Strategic P lan for Increasing EAS Enplanements

Background:

Unanticipated difficulties experienced during our 2005 SCASDP grant reduced the amount of time and money allocated for marketing; we did not get beyond introducing the Massena
International Airport to Canadian travelers and periodic promotions to major U.S. travel users. Promotion was seriously deterred by the customer service problems and eventual closure of Big Sky Airl ines, the time lag before a replacement carrier began service, and the temporary closure of the Seaway International Bridge.Page 17 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 “Fly Massena”

This application requests funds for a multi

- year “Fly Massena” marketing effort which will build
on the activitie s most successful in the past, introduce marketing elements outsi de the scope of our 2005 grant ( such as creative college/community events ) and undertake the market

re search/data collection efforts necessary to design an d document our market and the best

s trategies to reach it

. The campaign will emphasize the added convenience now offered to travelers with Boston serving as the primary t ravel destination, plus the promotion of Massena as a Jet Blue community as this opportunity is developed by Cape Air.

P roject/ Goal :

 Massena will implement a three

- year “Fly Massena” Campaign to meet or exceed 5,000 enplanements in 2012, and to reach 7,500 or more EAS enplanements by 2014.

Target Markets:

 The rural population of Massena

- area residents that the EAS progra m serves.

 Four key, large air travel

- user s

– our four university centers

.

 Business interests that are k ey drivers of economic growth, such as the Akwesasne Mohawk gaming operations and other s identified by economic developers in the region.

 The broader region of Canadian and Mohawk travelers who represent the additional enplanement numbers needed for Massena to develop and grow its airport

.Page 18 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 Project C omponents:

Region

- wide Marketing

 Develop a “Fly Massena” marketing campaign using traditional med ia (radio, TV, print, billboards, mailings, etc.)

 Upgrade airport website and implement a supplemental viral marketing campaign (broadcast emails, Facebook, Twitter, YouTube , etc.)

Targeted Promotions to Key Market Segments Implement “Fl y Massena” events/ promotions in four target markets:

1. Mas sena and Surrounding C ommunities

2. Colleges and Universities

3. Business Interests

4. T he Broader Region of Canadian and Mohawk Air T ravelers

Promotions will include media campaigns and strategies developed with our two Canadian grant partners ( the City of Cornwall and the Cornwall Chamber ) plus the St. Regis Mohawk
Tribe. Ideas include a Massena/Cornwall/Tribe event to show how b oosting EAS numbers at Massena is good for all three communities

. The American Chamber of Commerce in
Canada (Amcham) is a grant partner; their support w ill include digital promotion ( through
its national website / email broadcasts ) and partner recognition at regional events. Region

- wide marketing strategies will include both trad itional and new media campaigns (see above). A key campaign feature will be a 30

- day grassroots “Fly Massena” socia l media campaign, focused on raising awareness for the flights offered at the Massena
International Airport, with a chance to win Boston area/Jet Blue destinations vacation packages offered as an incentive to participate.

We will plan strategies with five economic development partners: the Massena, St. Lawrence County, and Malone chambers ; the St. Lawrence County IDA ; and Massena’s Business Development Corporation. We will reach out to other economic development agencies in the region, and approach th e Akwesasne gaming operations about repeating and enhancing airport promotions done with them under our 2005 SCASDP grant. All four of our colle ges/universities

– St. Lawrence University, Clarkson University, SUNY Potsdam, SUNY Canton

– have signed on as grant partners. Creative promotional strategies will be developed for each campus; ideas include: promotions at hockey games

, student film competition s, a “ Fly Like a Rock Star promotion, ” an “Art in the Air” student plane exterior design competition , and “Shakes on a Plane” a four

- campus competition, possibly involving local fast food restaurants/ice cream shops (for every milkshake purchased, a portion of the cost would go to l ocal charities. )Page 1 9 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 Market Research Activities

 Establish a process with Cape Air for tracking and reporting passenger data.

 Gather and monitor data from traditional and electronic/new media campaigns to measure the effectiveness of print and online marketing tools.

 Data collection/analysis of air service needs, interests, destinations, and airport choices of those in the Massena catchment area that are using airports for their air travel needs.

 Compilation of cost comparisons between Massena and other airport s, to document how
affordab le it is for travelers to “Fly Massena.”

Reporting Activities

 Quarterly reports by project coordinator to Airport Marketing Committee

 Annual Review by project coordinator with Massena Town Council

 Final reports from consultants engaged to carry out marketing, research and project
coordination

Project Timeline:

Year One

1 st quarter Retain Marketing Consultant/develop regional and viral marketing campaign s
2 nd quarter U pdate website/r etain Marketing research consultant/develop research process 3 rd quarter Initiate regional marketing campaign

4 th quarter Plan college/university promotions

Year Two

1 st quarter Initiate college/university promotions

2 nd quarter Plan business interest/economic development promotions

3 rd quarter I nitiate business interest/economic development promotions

4 th quarter Plan Mohawk/Canadian promotions

Year Three

1 st quarter Initiate Mohawk/Canadian promotions

2 nd quarter Maintain all activities

3 rd quarter Establish mechanisms to sustain best marketin g practices beyond grant period

4 th quarter Wrap up and final report



### Massena International Airport Welcomes You!

Our new Airport Terminal

– where connections to everywhere start!Page 20 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Public/Private Partnership I nvolvement

While the Air Task Force concluded its operation with the end of the 2005 DOT grant, the
relation ships forged and doors opened during the grant period provide a strong foundation for the marketing objectives in this grant.

Grant Partners

The following organizations and institutions have agreed to serv e as Grant Partner s for the marketing efforts to be funded with this grant:

1. American Chamber of Commerce in Canada

2. Business Development Corporation for a Greater Massena*

3. City of Cornwall, Ontario, Canada

4. Clarkson University

5. Cornwall Chamber of Commerce

6. Greater Massena Chamber of Commerce*

7. Malone Chamb er of Commerce

8. St. Lawrence County Chamber of Commerce*

9. St. Lawrence County Industrial Development Agency*

10. Saint Lawrence University*

11. SUNY Canton*

12. SUNY Potsdam

13. Village of Massena*

The St. Regis Mohawk Tribe served on the Air Task Force. The y were unable to take action to be a grant partner by the grant deadline , but they have indicated their continued interest and support and anticipate being involved in Mohawk

- focused marketing activities under this grant.

Partnership involvement will consist of:

 Help in planning events/promotions in support of existing EAS service

 Input into general marketing materials /t hose specific to th eir interests

 Guidance and assistance with data collection and market research

 Eleven of our 13 Grant Partners have confirmed a will ingness to provide

i n

- kind support and a base level of investment ; the Business Development Corporation for a Greater Massena has committed a minimum of $5,000

, the American Chamber of Commerce in Canada a minimum of $1,000,

a nd n ine other partners have committed to a minimum of $250 each.

Cape Air has reviewed this application and is supportive of its goals. The y have offered to help with promotions by providing award tickets and by participating in events and providing added support, and will look at ways to link their EAS marketing activities with “Fly Massena” promotions. Finally, Cape Air will provide data a nd
assistance with our market research efforts. 

### Seven of our
grant partners *

served on the

St. Lawrence Valley Air Task
Force from

2004

- 2009

*denotes former
Task Force memberPage 21 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Funding Necessary for Project Imple mentation

The Town of Massena is seeking $300,000 in federal funding from the SCASDP. The Town will provide $ 100 ,000 in local, cash match support , w hich will be used to leverage an additional $100,000 in in

- kind support (at a minimum) to enhance marketing strategi es in this application.

Project Budget (Cash) : Regional/new media campaigns/consultant & activities $ 165 ,000 Targeted marketing promotions $1 25 ,000 Market research/data collection/consultant & activities $ 5 0,000 Project coordination/grant administration $60,000

Total $4 00 ,000

Funding Sources (Cash):
Federal 2011 SCASDP Funds $300,000

Local Town of Massena $100,000

Total $4 00 ,000

The Town’s contribution will be provided from “gaming compact” monies collected and administered by N ew York State , which , by law must be used for community marketing and economic development purposes. This is a stable source of fun ding which the Town intends to commit annually to continue the marketing, events and economic development approaches undertaken under this grant which prove to be the most successful.

In addition, we will use the federal and local cash investment to lev erage a minimum of $100,000

in in

- kind support to enhance SCASDP

- funded marketing activities. We will invite/document in

kind support from these sources :

 A minimum of $25,00 0 in donated advertising space . In our 2005 SCASDP grant, we
document ed $20,000 in additional, bonus advertising above the grant dollars invested.

 A minimum of $50,000 in in

- kind support from 13 grant p artner s . A total of 16% of this amount has been pre

- c ommitted by 11 of the partners, for a base investment of $8,250 . In 2005, we d ocumented that over $200,000 was contributed i n in

- kind hours/materials from members of the St. Lawrence Valley Task Force over four years; it is reasonable to project
that we will be able to secure and document $50,000 in in

- kind support in three years fr om 13 partners, particularly with our focus on working on specific events/prom otions with each partner, and concentrate d effort by the project coordinator to document in

- kind contributions on an ongoing basis throughout the project.

 A minimum of $25,000 i n in

- kind support from Cape Air

. In our 2005 SCASDP grant, Cape

Air documented contributing $18,182 in in

- kind support to airport marketing efforts. For this application

, Cape Air has discussed using up to one

- third of their annual EAS marketing budget ( approximately $10,000 annually /$30,000 total ) toward SCASDP

- funded EAS marketing efforts for Massena, with the emphasis on directing their marketing dollars for promotions focused on U.S. residents

.Page 22 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Monitoring of Local Funding Committed to Project

T he Tow n of Massena’s funding commitmen t of $100,000 will be divided into three annual installments. A line item in the Town’s budget will be set up for the Town’s match. A financial statement showing the status of all line items is reviewed at the Town Council ’s regular meeting each month, and all items are reviewed during annual outside audits. Funds will be expended and monitored according to the grant agreement and process used with our 2005 SCASDP grant.



### Monitoring of Progress and Critical Milestones

The Town of Massena, as the government entity which owns the Massena International Airport, will be the legal sponsor for administering our SCASDP grant project.

A local project coordinator will be retained to oversee the administration of project funds,

c omplete required reporting, and work with the Town Supervisor’s staff to submit documentation and reimbursement requests to the DOT. The air service consultant who administered Massena’s 2005 SCASDP funding has agreed to provide advisory services.

The pr oject coordinator will facilitate the work of two consultants:

 A marketing consultant who will develop and implement the regional marketing campaign, new media promotions, and promotions to the four target market segments.

 A marketing research firm that will be engaged to develop and implement plans to gather, analyze and interpret data gathered to help us understand the market for the Massena International Airport and the best marketing vehicles to reach them.

Each consultant will be charged with devel oping a project budget based on the allocations proposed in this application. The consultants will provide monthly reports to the project coordinator listing activities and expenses against the approved timeline and budget.

Reporting process:

 The projec t coordinator will present a quarterly report to the Town’s Airport Committee, including progress toward goals and a financial report of expenditures for the period.

 The project coordinator will present an annual review to the Massena Town Council of all grant activities and a financial report of all project expenditures against the project budget.

 All consultants engaged for this project will present final written reports and recommendations to
the Town Airport Committee and Town Council.

 Enplanement n umbers will be monitored on a monthly basis to assure that the goals of achieving 5,000 enplanements in the first year, increasing to the 7,500 level by the end of the grant period, are attained. If enplanement figures do not show progress toward these go als, or targeted market segments do not show responsiveness to marketing activities, the project coordinator and

m arketing consultant will adjust the marketing plan and advise the Town Airport Committee/DOT

.Page 23 of 23

– Town of Massena SCASDP

– Submitted July 30, 2011 

### Continuation of Efforts b eyond the Grant Perio d

Massena’s Airport Business Plan recommends continued investment in a irport marketing to increase enplanements as a part of an overall airport development strategy

.

Th e Town has identified its gaming compact revenues as a stable source of funding for th is

purpose.

This grant will develop the knowledge, relationships and tools needed to properly invest these dollars for successful, ongoing marketing efforts, by:

 Establishing a base of 7,500 annual enplanements to build upon for further growth.

 Gather ing and analyzing marketing data to provide a basis for attracting and investing local marketing dollars beyond the grant period.

 Validating the most effective and successful marketing vehicles to pursue moving forward.

 Rebuilding the relationships that ar e key to reaching higher enplanement levels and the airport’s development overall.

With direction, funding, and tools in place, the final task under the grant will be to establish a mechanism that will harness and direct the collective power of all of the se elements, such as revitalizing the Air Task Force. We have made an initial outreach to regional leader, who is interested in serving as the Chairperson of a new Air Task Force, based upon the momentum we can create for this under this grant.

In conclu sion, t he Town of Massena is also examining the relationship between air service, airport infrastructure / development and airport management , based on the recommendations in the Airport Business Plan . The Town is now focused on how it can successfully coor dinate, fund and manage efforts in all these areas, in order to transition the Massena International Airport
fr om a subsidized community service to a revenue generator and driver for economic growth

. The solid marketing program that will result from thi s grant funding will not only provide a basis for helping the Massena International Airport to continue to attract high levels of enplanements,
but contribute to the success of the airport across the board, and support the advanc ement of
the econ omically c hallenged Massena /Northern New York region as a whole

.