# August 2, 2011 Sponsor: Metropolitan Topeka Airport Authority, Topeka, Kansas Eric Johnson, President/Director of Airports Congressional Code: KS

- 002
Dun & Bradstreet Number: 150947141 Tax Identification Number (EIN): 48

- 0878790 

### Application for Federal Support for New Air Service via:
Revenue Guarantees Advertising/Marketing Program
Start

- Up Cost Offsets 

### In Support of Non

- Stop Service between Topeka and Denver 

# FORBES FIELD AIRPORT , TOPEKA, KANSAS
Proposal Under the Small Community Air Service Development Program Docket DOT

- OST

- 2011

- 0119Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 2 TABLE OF CONTENTS

Summary Information

– Appendix C 3
Introduction 6
The Topeka Air Service Market 7
Historical Service 7 Air Service Development Efforts 13
Air Service Needs and Deficiencies 14 Strategic Plan for New Air Service 19 Proposed New Route 19 Implementation Timeline 27
Alternate Plan 28
Public/ Private Partnership 29 Funding Plan 31
Performance Measures and Financial Controls 33 Legal Sponsor 34 Availability of Alternate Airports 35 Airport Information 36 Community Profile 37
Conclusions 46



## INTRODUCTORY LETTERS OF SUPPORT

Section Page NumberMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 3 SUMMARY INFORMATION

– APPENDIX C

Small Community Air Service Development Program
Docket DOT

- OST

- 2011

- 0119



### 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: __________________

______________ expiration date of G rant: _______________________



### B. Public/Private Partnership

Public:

1. Metropolitan Topeka Airport Authority
2. City of Topeka
3. Shawnee County Commission

Private:

1. Greater Topeka Area Chamber of Commerce
2. Coalition of Topeka Area Businesses



### C. Project Proposal

Marketing Upgrade Aircraft New Route
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee
Launch Ne w Carrier Start

- Up Cost Offset First Service Study Secure Additional Service Other (Specify)Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 4 D. Existing Landing Aids at Airport

Full ILS Outer/Middle Marker Published Instru ment Approach
Localizer Other:



### E. Project Cost

1. Federal amount requested: $ 5 5 0,000
2. State cash financial contribution: $ 0
Local cash financial contribution:
3a. Airport cash funds: $ 50 ,000
3b. Non

- Airport cash funds: $ 1 5,000
3. Total local cash funds: $ 65 ,000
4. TOTAL CASH FUNDING: $ 615 ,000
In

- Kind Contribution:

a. Airport In

- Kind contribution: $ Various
b. Other In

- Kind contribution: $ Various
5. TOTAL IN

- KIND CONTRIBUTION: $ Undetermined
6. TOTAL PROJECT COST: $ 615 ,000 + In

- Kind



### F. In

- Kind Contributions

For funds in lines 7a (airport in

- kind contribution) and 7b (other in

- kind contribution), please describe the source(s) of fund(s) for each. Fee waivers: landing and terminal fees (airport) Advertising and marketing match money (media companies)



### G. Is Application Subject to Review by State Under Executive Order 12372 Process?
This application was made available to the State on ______. Program is subject to review, but has not been selected by the State. Program is not covered.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 5 H. Is Applicant Delinquent on any Federal Debt?

NoMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 6 INTRODUCTION

Access to air service in and around Kansas’ capital is getting more difficult. The region surrounding Topeka has seen total airline seat capacity cut by 27 % in the last two years. The result of the seat cuts has been an increase in the average fare pai d by Topeka catchment
area passengers

– up 14% in just the last year or $20 each way on average.

Topeka is one of the few state capitals in the country without locally

- provided air service. Topeka’s closest service is provided at Kansas City, which is mo re than an hour ’s drive from the center of the City. Regional air service is also provided in Manhattan, Kansas, but it is also more than an hour from Topeka, and destinations are limited.

There is no service from central Kansas to Denver, nor is there effective connecting service to the western US. While Kansas City does have Denver service, airlines have cut the average numbe r of seats per day each way between Kansas City and Denver by 707 in the last two years, or by 32% of all airline seat capacity in the market.

Realizing this weakness in local air service, t he Metropolitan Topeka A irport Authority has spent considerable time building a local coalition of support for potential air service. This local coalition has pledged $15,000 in cash funding for this application

– new from previous applications for Small Community Air Serv ice Development Grant fund ing.

Additionally, the Airport Authority has met with several carriers in 2011 to talk about Denver service, including SkyWest, operating as United Express, and Frontier. In those meetings, the airlines made it clear that a risk mitigation program w ould be a key to their interest in serving the route. This application lays out a specific strategic plan to support service to Denver, to replace a small portion of the Denver seats eliminated by airlines serving the larger region, and to provide the cap ital of Kansas with its first scheduled, network airline service in eight years. 

## “ [A] local coalition has pledged

$15,000 in cash funding for this application

– new from previous applications...”Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 7 THE TOPEKA AIR SERVICE MARKET Historical Air Service

In the context of this application, Topeka may be best known as one of the few state capitals in the country without scheduled air service. The Topeka metro area is home to almost a half million people. The City is more than 70 miles from its nearest air service

– in Kansas City. In 2011, Topeka suffers from declin ing airline seat capacity in the region

– with seats down 27% in the last two years in the area surrounding Topeka. Subsequently, fares in the region have gone up by an average of $20 each way in just the last year.

The 30 minute drive time Topeka catchment area (see within the dotted line in map 1 ) is home to 168,139 people as of
the latest US Census
estimates. T he one hour
drive time catchment are a (seen inside the solid line in
map 1 ) is home to 464,809 people.

The areas shaded in green
in map 1 represent areas where residents must pass the Topeka

– Forbes Field Airport on their way to
access air service at other airports in the region

– namely Kansas City
International. The population of the total area in green is 199,623, while the population of the area in dark green is 130,134, or 77.4% of the Topeka’s immediate
catchment area

. Topeka is not isolated, but the areas t o the north and west of the Airport certainly are isolated

. 

### MAP 1 : Immediate (30 Minute) and Extended (60 Minute) Catchment Areas, Forbes Field Airport, TopekaMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 8 The Forbes Field Airport lost its last scheduled air service in July of 2007. Allegiant Air provided

non

- stop flights, twice per week, between Topeka and Las Vegas from March of 2006 through
t he summer of 2007. The service performed well, from an analysis of all data points, but it was ended as Allegiant was beginning to see margins in the 20% to 25% range

– slightly higher than the projected margin it was likely earning in Topeka.

For the full 17

- month operation of Topeka

– Las Vegas service, Allegiant averaged a load factor of 79% (see figure 1 ). The carrier averaged 44 available seats per day each way (SDEW), and boarded an average of 36 passengers per day each way (PDEW)

– despite the fact that the service operated just twice per week.

Topeka

– Las Vegas service performed best just before it was pulled. In the last two months of Allegiant service
, the route averages 40.3 passengers per day each way

– the highest two

month average for the entire duration the route was served (see figure 1 ). In the last two months of service in Topeka, Allegiant averaged a load factor just above 91%. 12 40 44 45 44

39 45 44

40 44 44 48

44 45

39 45 44

9.4 20.3 30.0 40.8 39.6

34.2 36.1 34.8

28.5 35.5

31.1 36.5 35.7

32.7

29.9 40.6 40.2

0.0 10.0 20.0 30.0 40.0 50.0 60.0

2006

- 03 2006

- 04 2006

- 05 2006

- 06 2006

- 07 2006

- 08 2006

- 09 2006

- 10 2006

- 11 2006

- 12 2007

- 01 2007

- 02 2007

- 03 2007

- 04 2007

- 05 2007

- 06 2007

- 07 Available SDEW Onboard PDEW Load Factor 77.7%

50.7% 68.8% 90.6% 91.1% 88.5%
80.1% 79.9%
71.2% 81.5%

71.5% 75.7% 82.1%
72.7% 77.3% 90.3% 92.3% 

### FIGURE 1 : Departing Seats p er Day, Departing Passengers p er Day, and Load Factor Topeka

– Las Vegas Service, March 2006

– July 2007; Source: US DOT T100 DataMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 9 Topeka lost is last commercial hub service in 2003, when the Department of Transportation
ended its status as an Essential Air Service (EAS) market. The judgment was made due to the fact that the average subsidy, per passenger, had topped the $200 cap. Otherwise, Topeka would still qualify as an EAS service point today, as it had commercial service at the end of
de regulation and it lies more than 70 miles from the nearest medium hub airport, in Kansas City.

Previous scheduled hub service was not ideal, as service was provided only to Kansas City. There was virtually no value to the local segment, so all traffic wa s connecting. The service was not altogether operationally reliable, which led many to conclude a drive to Kansas City was easier than the flight. This is what caused the EAS subsidy per passenger to spike. Any future
service in the market must connect through a hub farther away than Kansas City, to ensure there is value for a local passenger.

The Topeka area currently makes up a small portion of the Kansas City International Airport
catchment area , as there is no current scheduled air service in Topeka. The Topeka

– Forbes Field Airport 30

- minute
catchment area represents

6.59% of the total population of the 90

- minute Kansas City
catchment area (see map 2

)

. The immediate Topeka
catchment area
, represented in map 2 in purple, includes 168,139 people

.

Only those living in the immediate, 30

- minute Topeka catch ment area
are considered in the origin and destination
passenger analysis included in this proposal , as Forbes Field would be significantly more convenient for them than Kansas City International Airport (MCI)

. For the purposes of these projections, it is assumed Topeka Would Be Significantly More Convenient for 6.59% of the Kansas City International Airport Catchment Area 

### MAP 2 : Topeka’s Catchment Area Relative to t he Kansas City International Catchment AreaMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 10 service at Topeka would draw passengers only from its 6.59% share of the Kansas City catchment

area (see map 2 )

.

When these assumptions are taken into account, it becomes apparent that even the immediate Topeka catchment area generates enough passengers to support local air service. The Topeka catchment generated an estimated 593,820 origin and destination passengers in calendar year 2010, or an average of 813 passengers per day each way (see figure 2). Passengers generated in the Topeka catchment area in 2010 were flat over 2009, de spite regional fares increasing by 14%. The average fare paid by passengers from the Topeka catchment area went up by $20 each way in 2010, to $168 each way.

Passengers generated in the immediate Topeka catchment area have fallen by an estimated 13% since 2007, or an average of 121 passengers per day each way (see figure 2). A
combination of volatile fares a nd reduced capacity in the region

– namely at Kansas City
International

– have caused the passenger decline.



### FIGURE 2 : Estimated O&D Passengers from the Topeka Catchment Area CY2002

– CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

557,297 550,836 574,748 584,886 621,753 643,839 606,891 560,762 555,340 26,662 26,782 31,203 34,300 37,249 38,552

39,184

36,012 38,480 799.9 791.3 830.1 848.2 902.7 934.8

885.0

817.5 813.5

200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW International Domestic

$132 $132 $138 $146 $153 $154 $167

$148 $168Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 11 Nonetheless, at 2010 passenger totals, the Topeka catchment area generates plenty of air travel to support local air service

– even when taking int o account only the immediate, 30

- minute catchment area for Forbes Field Airport. The region’s average of 813 passengers per day each way would b e enough to support 17 50

- seat regional jet departures per day from the Forbes
Field Air port at a load factor o f 96 %

.

Passengers generated in the Topeka
catchment area travel to destinations in
both directions from the market. Of the top 20 origin and destination passenger markets from the Topeka area as of calendar year 2010, eight are west of the
market while 12 are east of the market (see figure 3). In 2010
, it is estimated that Chicago ranked as Topeka’s number one origin and dest ination domestic
passenger market, generating more tha n 37,6 00 annual passengers or an average of 51.6 passengers per day each way (PDEW)

. Chicago was followed by
Denver , with an average of 37.4 passengers per day each way; Dallas/Ft. Worth, with 37.1 pas sengers per day each
way; New York/Newark, with 32.7 passengers per day each way; Orlando,
with 28.5 passengers per day each way; Las Vegas, with 27.5 passengers per day each way; and Atlanta, with 24.8 passengers per day each way.

As previously noted in this proposal, the average fare in the Topeka region is up 14% in just the last year. The 2010 average one way fare was $168 each way

– up from $148 each way in 2009 (see figure 4). The reason for the regional fare increase is the loss of airline capacit y in the region surrounding the Topeka catchment area

– with total available seats down 27%
since the summer of 2008. 

### FIGURE 3 : Topeka’s Estimated Top 20 O&D Passenger Markets, CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

37,664 27,302 27,097 23,841 20,801 20,076 18,091 17,377 17,268 16,697 12,815 11,677 11,249 11,005 10,508 9,778 9,390 9,150 8,961 8,761 51.6
37.4
37.1
32.7
28.5
27.5
24.8
23.8
23.7
22.9
17.6
16.0
15.4
15.1
14.4
13.4
12.9
12.5
12.3
12.0

0 5000 10000 15000 20000 25000 30000 35000 Chicago, IL Denver, CO Dallas/Fort Worth, TX New York/Newark, NY

Orlando/Sanford, FL Las Vegas, NV

Atlanta, GA Washington, DC Los Angeles, CA Phoenix/Mesa, AZ Houston, TX Baltimore, MD Tampa, FL Seattle/Tacoma, WA San Diego, CA Milwaukee, WI Fort Lauderdale, FL Nashville, TN Philadelphia

Boston, MA Annual Passengers PDEWMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 12 Average fares to most markets west of Topeka are well above $300 roundtrip, while eastern markets generally have lower fares (see figure 4). For example, the average fare to Orlando is $228 roundtrip as of 2010, while the average fare to Los Ange les is $314 roundtrip. It should be
noted that these fares
do not take into
account the cost of a Topeka catchment
area passenger accessing air service at other airports in the region. The cost of driving from Topeka to Kansas City’s airport has increase d by more than 50% in the last year, as gas prices have gone up.

With rising fares and decreasing capacity in the region surrounding Topeka, access to air
service is more difficult than it has been at any time since the end of 2001. This fact gives

new e mphasis to the goal of the Metropolitan Topeka Airport Authority in its effort to bring
local air service to Forbes Field. 

### FIGURE 4 : Average One Way Fare at Topeka’s Top 20 O&D Passenger Markets, CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

$109 $95 $127 $176 $114 $138 $128 $167 $157 $153 $155 $134 $115 $158 $154 $89 $128

$100 $167 $149

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 Chicago, IL Denver, CO Dallas/Fort Worth, TX New York/Newark, NY

Orlando/Sanford, FL Las Vegas, NV

Atlanta, GA Washington, DC Los Angeles, CA Phoenix/Mesa, AZ Houston, TX Baltimore, MD Tampa, FL Seattle/Tacoma, WA San Diego, CA Milwaukee, WI Fort Lauderdale, FL Nashville, TN Philadelphia

Boston, MA 

### Average Fare : $ 168Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 13 AIR SERVICE DEVELOPMENT EFFORTS

The Metropolitan Topeka Airport Authority is dedicated to doing whatever it can to bring viable, sustainable air service to Kansas’ capital. Since Allegiant Air left the market in 2007
, the Airport has begun a process to bring a network air carrier to the market, to offer connectivity to the majority of cities Topeka

- area business travelers n eed access to. The Airport has hired a consulting firm to work on the recruitment of additional service.

The Airport Authority has also spent considerable time building a local coalition of support for potential air service. This local coalition has pledged $15,000 in cash funding for this application

– new from previous applications for Small Community Air Service Development Grant funding.
The coalition will be of tremendous value in marketing the new service at Forbes Field Airport and in ensuring local businesses use the service.

So far in 2011 , the Air port has been able to

secure one

- on

- one meetings wi th three airlines, including SkyWest/United Express, Frontier and
SeaPort Airlines . In these conversations airlines did express interest in serving the Topeka market. The primary target of discussion with these airlines was service to Denver, which is wh y Denver has been made the target of this application for federal support. 

## “This local coalition has pledged

$15,000 in cash funding for this

application... of tremendous value marketing the new service.”Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 14 AIR SERVICE NEEDS AND DEFICIENCIES IN TOPEKA

There are a number of challenges to the successful recruitment of a new airline to Forbes Field Airport in Topeka, just as there are several challenges for Topeka catchment area passengers accessing air service at other airports in the region. In regard to challenges with access to service for area passengers, airlines have cut regional capacity by more than a quarter sinc e the fuel spike of 2008. This has resulted in rising fares

– up 14% in just the last year. Moreover, it is much more expensive now for Topeka catchment area passengers to drive to other airports in the region due to the increased gas cost.

Detailing, perhaps, the most significant air service deficiency in the region, i n just the last three years Kansas City International Ai rport has seen it s most significant seat cuts in more than a
decade . These seat cuts have the impact of making air service more difficult to access for those in the Topeka catchment area. Since the summer of 2008 , Kansas City has lost an average of 72 daily depart ures

– a loss of 31 % of tha t Airport’s daily flights (see figure 5 ). During that same time period, Kansas C ity has lost an average of 6,146 daily outbound available seats,
or 27 % of all the market’s available airline capacity.



### FIGURE 5 : Available Seats, Flights, and Passengers per Day at MCI June 2008

– February 2011; Source: US DOT T100 Data

22,653
21,923

21,113

19,968 19,818

18,906 18,810
18,122 18,125 18,209 18,784 19,127 20,349 20,317
19,575
18,841 19,205 18,942
18,274

17,369 17,261 18,332 18,364 18,735 19,553 19,272 19,239 18,678 18,658 19,039 18,475

16,983 16,507 18,542
17,783

16,211

14,271 15,152

13,231 13,916

11,534 12,198 13,925 13,802 14,874 16,711 17,027

15,034

13,915 14,882

14,012 13,541

11,591 11,860 14,059 13,802 14,877 16,702 16,399

14,951
14,280 14,934 14,397 13,859

11,778 11,813

8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000

Available SDEW Onboard PDEW Flights DEW 232.4

213.9
206.3

187.2 186.4 183.4 181.6 177.5 181.4 183.6 191.1 190.3 199.9 198.3
190.3

181.0 182.5 182.8 175.4
166.6 167.5 179.0 178.0 180.7 189.4 186.5 187.5 180.4 180.6 181.2 175.9

162.7 160.0Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 15 Cuts in available seats in K ansas City had begun to level off, until November of 2010 (see figure 5). Since then, airlines have cut an additional 2, 5 32 seats per day each way on average

– or 13 % of total capacity at Kansas City. Since summer 2008, airlines have cut the equivalent o f 123
50

- seat regional jet departures per day from Kansas City International Airport.

These air carrier flight and seat losses not only hurt the immediate Kansas City catchment area, but also Topeka. Topeka catchment area travelers have had to rely more on service provided at Kansas City for access to the national air transportation system. This access is becoming more difficult as the region, as a whole, sees cuts in airline service.

It has been established in this proposal that the Forbes Field Airport in Topeka has a sufficient passenger base in its local catchment area to support commercial air service. Despite this, airlines have found the region unattractive due to the relative proximity of Kansas City International Airport (MCI). While thi s, in and of itself, represents a hardship for the Airport and the community it serves
, there are additional extenuating circumstances regarding seat loss and flight declines to consider in the larger region.

To gauge the general strength of the Topeka metropolitan statistical area (MSA), and its ability to support commercial flights, the Airport produced an analysis of the market’s position in the region, and an
estimated determina tion
of the number of local Topeka MSA passengers using other airports in the region. This analysis also included a projection of regional travel based on
the economies of the area’s main airport

FOE MCI

ICT 

### Regional Population

Kansas City (MCI) 2,070,544 70.5%

Wichita (ICT) 637,781 21.7% Topeka (FOE) 229,619 7.8% Population Share 

### FIGURE 6 : Regional Population Distribution Source: US Census EstimatesMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 16 served metropolitan areas. This analysis helps to validate the projected numbers for new service. At the same time, the analysis also points out just how underserved the Topeka market is.

T

he Topeka metropolitan statistical area (MSA) had a population of 229,619 as of the latest US Census estimates (see Figure 6 ). The larger region comprised of the metro areas of Kansas City and Wichita has a current population of 2,937,944. Topeka’s share of that population is 7.8%.

In many markets, an Airport draws a number of passengers proportional to its overall population in the region. If that were to be the case in the Topeka market, one could reasonably expect the Airport to retain about 8% of the total passengers using all three airports in the larger region. While the Topeka metro area is home to almost 8% of the region’s total residents, without current service, its Airport retains none of the reg ion’s passengers (see fig ures 7 and 8 ). If the Airport had been able to retain the number of regional passengers proportional to its share of population in the region , it would have been used by 805,653 origin and d estination passengers as of calendar year 2010.

The largest beneficiary of Topeka’s passenger leakage is Kansas City

– which is more than an hour away, on a drive of 74 highway miles by the most direct route. Kansas City had “reverse leakage” as of calendar year 2010, when it drew 24 % more passengers t han its proportion of the regional population. While Kansas City makes up 70.5% of the region’s population, it boards more than 87% of the region’s total origin and destination passengers (see figures 7 and 8 ). If Kansas City retained a number of origin and destination passengers proportional to its regional population share, it would be expected to generate 7.3 million passengers annually. In 2010, Kansas City
saw a total of 9,010,920 O&D passengers

– again, almost a quarter above its regional share.
M an y of those “extra” passengers came from the Topeka catchment area. 

### FIGURE 7 : Regional Population Share Source: US Census Estimates

FIGURE 8 : Regional O&D Passenger Share Source: US DOT Table OD1A, CY2010 Kansas City 70.50% Wichita 21.70% Topeka 7.80%

Kansas City 87.24% Wichita 12.76% Topeka 0.00%Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 17 Another way of determining passenger leakage from the Topeka catchment area is by comparing the economy of Topeka to the economies of the nearest cities with commercially

served airpo rts. The easiest way to gauge each catchment area’s contribution to the economy of the region is to compare the gross metropolitan products (GMP) of each. A GMP is much like a gross national product

– an overall gauge of economic activity in an area in d ollars earned.

The United States Council of Mayors reports the Topeka metro area produced a GMP of $8.7 billion, which represented 6.4% of the total gross regional product (GRP) of the area including Kansas City and Wichita (see figure 9 ). Kansas City generated the larg est portion of the GRP, with $101.2 billion, or 74.6%, while Wichita produced a GMP of $25.7 billion

– good
for 19.0% of the GRP.

Despite producing 6.4% of the total gross regional product (GRP), the Topeka
area doesn’t retain its share of passengers due to the fact the Airport has no current airline service (see figures 10 and 11 ). If the Airport had been able to retain the number of regional passengers proportional to its share of the GRP, it would have
been use d by 661,048 passengers as of calendar ye ar 2010. FOE MCI

ICT

Kansas City (MCI) $101.2 Billion 74.6% Wichita (ICT) $25.7 Billion 19.0% Topeka (FOE) $8.7 Billion 6.4% 

### Gross Metropolitan Product (GMP)

GMP Share 

### FIGURE 9 : Regional Gross Metro Product (GMP) Distribution Source: US Council of MayorsMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 18 The major beneficiary of Topeka’s passenger leakage is, again, Kansas City. Kansas City experienced “reverse leakage” as of the year ended first quarter 2010, when it drew 16% more passengers than its proportion of the gross regional product (GRP). While Kansas City generates 74.6% of the GRP, it boards
more than 87% of the region’s total origin and destination passengers (see figures 10 and 11 ). If Kansas City retained a number of origin and destination passengers proportional to its GRP share, it

w ould be expected to generate 7.7 million passengers annually. In 2010, Kansas City saw a total
of more than nine million O&D passengers.

These statistics illustrate that the Topeka market is strong enough in both population, and in its economic health, to ge nerate at least 66 0,000 annual origin and destination passengers. If none of Topeka’s passengers “leaked” to other airports in the region, it would generate en ough local passengers to fill 19 50

- seat regiona l jet departures per day at a 95 % load factor.

While these estimates illustrate the relative strength of the Topeka catchment area, challenges
remain in the successful recruitment of a new airline to Forbes Field Airport . Foremost, in its meetings with various airlines in 2011, Airport leadership has learned that many airlines are worried about breaking passenger habits in the catchment area, and convincing those passengers to use their local airport instead of driving to Kansas City to access service. This Grant application is a key to funding an ad equate marketing program to accomplish the goal of retaining passengers, and to convincing airlines the proper amount of funding is available to achieve this goal. 

### FIGURE 10 : Regional GMP Share Source: US Council of Mayors

FIGURE 11 : Regional O&D Passenger Share Source: US DOT Table OD1A, CY2010 Kansas City 74.60% Wichita 19.00% Topeka 6.40%

Kansas City 87.24% Wichita 12.76% Topeka 0.00%Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 19 STRATEGIC PLAN FOR NEW AIR SERVICE

In order to address the challenges to air service in the region surrounding the Topeka catchment area, t he Metropolitan Topeka Airport Authority has developed this plan for local service provided at Forbes Field Airport

. The strategic plan aims to correct deficiencies in service that include the lack of access to the air transportation system within 70 miles of the Topeka area, the decline in available airline seats and capacity in the region, and the increased cost of f lying to and from Topeka through other airports.

Under this plan, t he Metropolitan Topeka Airport Authority proposes to use a combination of $65,000 in locally raised funding in conjunction with federal Small Com munity Air Service Development Grant money in support of the addition of scheduled network airline service to the market. The proposed route is between Topeka and Denver, based on direct
airline feedback from one

on

- one meetings in 2011 (see map 3 ). It is believed this
route will have the best
chance of success due to the fact it is not duplicated at the nearest regional airport, in Manhattan,
Kansas. It is proposed the route be operated by a United Express carrier, to access the widest potential

a rray of one

- stop destinations beyond Denver.

The Airport proposes two daily flights on the route in each direction. The route between Topeka
and Denver would cover 486 miles in a block ti me of one hour and 4 0 minutes , on average, assumi ng an average grou ndspeed of 400 knots on a Canadair CRJ200 regional jet aircraft seating 50 passengers in an all

- economy layout

. 

### MAP 3 : Proposed Route: Topeka

– DenverMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 20 The proposed schedule would allow for the overnight of an aircraft at the Forbes Field Airport, which positions the aircraft for an early morni ng departure to Denver to connect to the first departing block of flights of the day on the United Airlines network (see figure 12 ). This schedule connects into the main midday and evening banks at Denver , as well, with a late evening
arrival. The schedu le is designed for the Topeka area business traveler to be able to make a two day trip to most Intermountain and West Coast markets

– providing the best possible competition with the schedule at Kansas City.

Origin Destination Departs Arrives Block Time Equipment
FOE DEN 6:3 0am 7:1 0a m 1: 4 0 CRJ
DEN FOE 10:15a m 12:55 p m 1:4 0 CRJ
FOE DEN 1:55 pm 2:35 pm 1:4 0 CRJ
DEN FOE 8 :1 0pm 10 :50 pm 1:4 0 CRJ

The Metropolitan Topeka Airport Authority seeks a Small Community Air Service Develop ment Grant, in the amount of $55 0,000, to help mitigate the initial monetary risk in serving the Topeka

– Denver route , primarily for a United Express carrier

. In addition to the federal portion, the Airport Authority has developed local cash commitments of $65,000 in support of this project. The total project cost is projected to be $615,000

The Metropolitan Topeka Airport Authority projects that the bulk of the grant money be available to provide insurance in case the new carrier incurs a loss during the first year of operations. With
demonstrated demand for service in the Topeka market, and demand for connectivity over the
Denver hub, the Airport projects the new flights will be profitable within one year. A total of $550,000 will be available for this revenue guarantee. The additional $65,000 in funding will be used in support of marketing and advertising programs. Start

- up expenses will be provided to the new carrier outside of this proposal, with additional airport cash.

If, for some unforeseen reason, service is not commenced in a timely manner by a carrier serving
the United Airlines hub at Denver , the Metropolitan Topeka Airport Authority proposes to use federal grant money awarded under the Small Community Air Service Development Program for 

### FIGURE 12 : Proposed Schedule: Topeka

– DenverMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 21 service to another hub with wide

- ranging connectivity. Among the options the Airport will
consider would be service to Denver on Frontier or another affiliate d carrier ; service to Memphis on Delta or one of its affiliated carriers; service to Dallas/Ft. Worth on American or one of its affiliated carriers; service to Minneapolis/St. Paul on Delta or one of its affiliated carriers; service to Chicago on a United Express or American Connection carrier, or service to Detroit on Delta or
one of its affiliated carriers.

Should these options, for an unforeseen reason, not be available for new service at the Forbes
Field Airport, the Airport will continue its discussio ns with all other carriers that can provide
service . Since the community has never before received a Small Community Air Service Development Grant, it will have no limitations on which new hub the DOT could fund.



### Route Specific Data: Topeka

– Denver

The United Airlines Denver hub would provide Topeka area travelers the most wide

- ranging
colle ction of one

- stop destinations of any hub to the west of the market

. There is no current
service from
central Kansas to Denver on any
airline. The Metropolitan Topeka Airport Authority has had recent discussions,
in the spring of
2011 , with SkyWest, about serving the Topeka

– Denver
market under the
United code. It
was made clear in
these discussions
that a risk mitigation program 

### MAP 4 : One

- Stop Connections over Denver on United August 2011 ; Source: Sixel Consulting Group Hub BuilderMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 2 2 would be a key to new service.

United Ex press service from Topeka to Denver on the United code would connect to 66 one

- stop
cities throughout the western US, Mexico, Canada, Hawa ii and Alaska (see map 4 ). Denver provides the best possible connecti vity to destinations on the West Coast

– which rank as some of the region’s largest origin and destination passenger markets.

It’s important to understand the dynamics of current Denver service from other airports in the region surrounding Topeka. In the last two years, the Kansas City

– Denver route has seen major flight and seat reductions, outpacing national averages. As of June of 2009, airlines offered an average of 2,209 seats per day each way between Kansas City and Denver (see figure 13). By February of 2011, the average number of seats per day each way between Kansas City and Denver dropped to just 1,502

– a loss of 707 seats per day each way, or 32% of all airline seat capacity in the market.



### FIGURE 13 : Available Seats, Flights, and Passengers per Day between MCI and DEN June 2009

– February 2011; Source: US DOT T100 Data

2,209 2,185

2,086 2,015 1,994 1,994 1,982 1,938 1,967 1,972 1,900 1,856 1,892 1,868 1,922 1,936 1,894 1,898 1,825

1,494 1,502 1,739 1,867

1,641

1,509 1,509

1,325 1,381

1,210 1,258 1,437

1,319 1,400 1,664 1,681

1,578
1,500 1,485 1,437 1,384

1,075 1,154

500 700 900 1,100 1,300 1,500 1,700 1,900 2,100 2,300 2,500

2009

- 06 2009

- 07 2009

- 08 2009

- 09 2009

- 10 2009

- 11 2009

- 12 2010

- 01 2010

- 02 2010

- 03 2010

- 04 2010

- 05 2010

- 06 2010

- 07 2010

- 08 2010

- 09 2010

- 10 2010

- 11 2010

- 12 2011

- 01 2011

- 02 Available SDEW Onboard PDEW Flights DEW 16.5 16.3
15.6
15.0 14.6 15.0 15.2 15.0 15.3 15.4 15.4 15.0 15.8 15.6 15.9 15.7 15.4 15.1 15.1

12.4 13.9Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 23 At the same time, airlines have cut Denver flights from the region surrounding Topeka. Between
Ju ne of 2009 and February of 2011, airlines have cut an average of 2.6 flights per day each way between Kansas City and Denver, or 16 % of all flights in the market (see figure 13) . The impact of these flight and seat cuts has been increased difficulty for l ocal travelers heading to destination west of the market. It should also be noted, the number of daily average seats between Topeka and Denver, as noted in this proposal, is just 100. In the last two years, 707 seats have been cut from the Kansas City

– Topeka market. The seats proposed in this application will replace only a small proportion of those already cut from the local region.

As regional fares have stabilized over the last five years, the number of passengers traveling between Topeka and Denver, itself, has grown by more than 50%. In 2010, the local Topeka

– Denver market generated an average of 37.4 passengers per day each way, on average, at an average one way fare of $95 (see figure 14).

Since 2005, the local Topeka

– Denver market has grown by an average of 12.4 passengers per day each way, or 50% (see figure 14). In that time, t he average fare paid in the Topeka



### FIGURE 14 : Estimated O&D Passengers from the Topeka Catchment Area to/from Denver CY2001

– CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

23,086

20,145

16,694 18,200 18,267 25,619 31,121
28,472 26,759 27,295 31.6

27.6

22.9 24.9 25.0 35.1 42.6

39.0

36.7 37.4

10,000 15,000 20,000 25,000 30,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Estimated DEN PDEW Estimated DEN Pax

$124 $113 $126 $125 $137

$99 $87 $97 $91 $95Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 24 catchment area for local travel to Denver has gone down by 30%. In 2010, the local Topeka

– Denver market is large enough to support one regional jet flight per day in each direction with a
75% load factor

– not taking i nto account any connecting traffic or any traffic stimulation with

new non

- stop service.

The Topek a catchment area currently generates an estimated average of 21 1 origin and destination passengers per day each way to destinations that naturally connect over the United
Airlines Denver hub. As of calendar year 2010 , Topeka is estimated to have generated 154,253 total origin and destination passengers that would flow over Denver on United and the Star Alliance (see figure 15 ). In all, the Topeka

– Denver route has the potential to capture 26 % of the passengers currently estimated to be flying to and from the Topeka catchment area through other airports, without taking into account any passenger stimulation through the addition of
local non

- stop service.

At the same time, the United Airlines Denver hub could capture 23 % of the current estimated

revenue generated in Topeka catchment area (see figure 15 ). It is estimated that markets from Topeka that flow over the United Denver hub generate more than $22.8 million in annual airlin e revenue, or $31,240 in revenue per day each way (RDEW).



### FIGURE 15 : Estimated Topeka O&D Passengers and Revenue Flowing over Denver on United CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

Denver

26%

Other Hubs 74% Denver 23%

Other Hubs 77%

Estimated Topeka O&D Revenue $99,807,439 100%

Revenue Flowing Over Denver $22,804,881 23% Estimated Topeka O&D Passengers 593,820 100%

Passengers Flowing Over Denver 154,253 26%Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 25 The United/Star Alliance hub at
Denver has potential to capture
l arge portions of traffic in many of Topeka’s largest estimated origin
and destination markets. The
Denver hub is especially well positioned to captu re traffic traveling to the West Coast and the
Intermountain West , along with many destinations in Mexico and
Canada. Among the large markets
that would be served over Denver
on United is Denver , itself, which is
estimated t o have produce d 37.4 passengers per day each way (PDEW) to and from Topek a in 2010 ; Los Angeles, which produces 29.8

PDEW; Las Vegas, which produces 27.5 PDEW; Phoenix, which produces 22.9 PDEW; Seattle/Tacoma, which produces 15.1 PDEW; and San Diego , which produces 14. 4
PDEW as of calendar year 2010 (see figure
16 ).

Should it launch service between Topeka
and Denver , United , or one of its affiliated carriers, would be adding service in markets
that have current fares averaging $148 each way at Kansas City International Airport (see figure 17 ). United Express would provide ano ther alternative in many
markets where fares are abo ve the Midwest regional average. Examples include Los 

### FIGURE 1 6 : To peka’s Top 20 Passenger Markets over DEN on United CY2010; Sources: US DOT Table OD1A, Sixel Consulting Group Analysis

FIGURE 17 : Average One Way Fare at Top 20 Passenger Markets Over DEN on UA, CY2010; Sources: US DOT Table OD1A 27,302 21,785 20,076 16,697 11,005 10,508 8,069 6,316 5,731 5,096 4,720 4,040 2,735 1,681 1,448 1,277 1,130 980 819 532 37.4 29.8 27.5 22.9 15.1
14.4
11.1 8.7 7.9 7.0 6.5
5.5 3.7 2.3 2.0
1.7 1.5 1.3
1.1 0.7

0 5,000 10,000 15,000 20,000 25,000 Denver Los Angeles Basin Las Vegas

Phoenix Seattle/Tacoma San Diego San Francisco Bay Area Portland, OR Salt Lake City Cancun Sacramento Albuquerque
Tucson Spokane Boise Puerto Vallarta Anchorage

Los Cabos Colorado Springs Billings PDEW

$95 $156 $138

$153 $158 $154

$172 $171 $153 $202 $157 $138 $142 $147

$162 $223 $283 $253 $155

$182

$0 $50 $100 $150 $200 $250 Denver Los Angeles Basin Las Vegas

Phoenix Seattle/Tacoma San Diego San Francisco Bay Area Portland, OR Salt Lake City Cancun Sacramento Albuquerque Tucson Spokane Boise Puerto Vallarta Anchorage

Los Cabos Colorado Springs Billings Average Over DEN : $ 148Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 26 Angeles , where the average roundtrip f are was $312 in 2010 ; Phoenix , where the average roundtrip fare was $306 ; Seattle /Tacoma
, where the average rou ndtrip fare was $316 in 2010 ; San Francisco
, where the average fare was $344 roundtrip; and Portland, Oregon, where the
average roundtrip fare was $342 in 2010

.

The Metropolitan Topeka Airport Authority believes there is sufficient passenger traffic and
revenue th at would flow over United’s Denver hub to make the service profitable. United would
not be forced to offer rock

- bottom fares in Topeka to be competitive

– even fares slightly higher than those found in other regional markets, such as Kansas City, would be low enough to capture local traffic and end some of the leakage the market experiences today. The Airport Authority believes this is the best plan for local, network air service, moving forward.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 27 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in September of 2011

. Once the award is announced, the Metropolitan Topeka Airport Authority will conduct additio nal airlin e meetings
to secure new service

. Based on airline planning lead times and the need for advance bookings, we assume the new carrier would not be able to begin service until at least June of
2012.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with prospective airlines to negotiate for service, and sign the minimum revenue guarantee agreement with the appropriate airline partner

. Once service
is announced and schedules are published, the Airport would begin marketing the new route and working with the new carrier to monitor advance bookings. The Airport will continue its marketing program and continue to work with the new carrier to monitor the route once service begins

. The Airport would submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum revenue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is awarded. It is also possible that new service could slip to 2013 should an airline require additional risk mitigation, beyond that included in this proposal, from the community.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2011 Executive Grant Agreement with DOT October 2011 Meet With Prospective Airlines Oct/Nov 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline Jan - Mar 2012 Announce Service March 2012 Publish Schedule March 2012 Begin Marketing of New Route March 2012 Monitor Advance Bookings March - June 2012 Service Launch June 2012 MRG Available for Service June 2012 - October 2014 Monitor Route Performance June 2012 - October 2014 Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2014 Close Grant October 2014Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 28 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced in a timely manner by a carrier serving
the United Airlines hub at Denver , the Metropolitan Topeka Airport Authority proposes to use federal grant money awarded under the Small Community Air Service Development Program for
service to another hub with wide

- ranging connectivity. Among the options the Airport will consider would be service to Denver on Frontier or another affiliated carrier; service to Memphis on Delta or one of its affiliated carriers; service to Dallas/Ft. Worth on American or one of its affiliated carriers; service to Minneapolis/St. Paul on Delta or one of its affiliated carriers; service to Chicago on a United Express or American Connection carrier, or service to Detroit on Delta or
one of its affiliated carriers.

Should these options, for an unforeseen reason, not be available for new service at the Forbes
Field Airport, the Airport will continue its discussions with all other carriers that can provide
service . Since the community has never before received a Small Community Air Service Development Grant, it will have no limitations on which new hub the DOT could fund.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 29 PUBLIC/PRIVATE PARTNERSHIP

A number of local partners will be working with the Airport to promote participation in this air service development project. The Airport has already generated $15,000 in non

- Airport cash matching funding for this proposal. Additionally, c ontacts will be made to all Topeka members of chambers of commerce and similar organizations, and those with an interest in growing the economic base of the community through local business growth, attraction of new businesses and the promotion of tourism and visitor traffic via the Airport.



### Metropolitan Topeka Airport Authority The Metropolitan Topeka Airport Authority owns and operates Forbes Field Airport in Topeka. The Authority has long been advocating for increased commercial air service at the Airport, and this application is just part of that advocacy. The Airport Authority has already approved the money to be spent to match this Grant, recognizing how important the addition of viable air service is to the region.



### Greater Topeka Area Chamber of Commerce The Greater Topek a Chamber of Commerce has the mission of working to get the things done
that a company cannot do alone. A Chamber membership is seen as an investment in both a company's and the community's future.

The membership of the Greater Topeka Chamber of Commerce represents the entire community with members from business and industry, private associations, civic organizations,
home based businesses, social service agencies, education, government, and individuals. Over 1,200 member firms, representing over 1,900 ind ividuals, are Chamber members, joining in their support of the Forbes Field Airport in Topeka.



### City of Topeka As the State’s second largest city, and Kansas’ capital, the City of Topeka is glad to have the opportunity to partner with Forbes Field Airport to bring competitive air service to the City. Community leaders have long been working to recruit additional air service to the region.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 30 Shawnee County Commission This three person board oversees the operation of Shawnee County, the home of the City o f Topeka and Forbes Field Airport. The Commission is publically elected, and in charge of a multi

million dollar annual budget. The Commission has a current emphasis on economic development and
, as such, supports the effort to bring air service to Forbes Field.



### Coalition of Topeka Area Businesses Dozens of local businesses will work together to support the push to bring air service to eastern Kansas. These businesses will not only pledge to use new service at Forbes Field Airport, but also
work to make sure the air service marketing message is spread throughout the community.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 31 FUNDING PLAN

Revenue Guarantee The Metropolitan Topeka Airport Authority propose s to make available $55 0,000 in funds for a revenue guarantee to the new carrier, to cover start

- up losses that may occur during the first twelve months of service. Subject to negotiation, payments will be made to the new carrier quarterly when income derived from passengers and cargo is less than agreed expenses on the
route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used.



### Marketing and Advertising The Metropolitan Topeka Airport Authority proposes to spend at least $65 ,000 in funds on marketing and advertising promotions in support of new service introductions. The goal is to increase ridership and usage of new local service through targeted regional campaigns.



### In

- Kind Services The following organizations will help promot e the new service through their various membership groups. There is no estimated value to these services.

**•** Greater Topeka Chamber of Commerce

**•** City of Topeka

**•** State of Kansas

**•** Metropolitan Topeka Airport Authority

**•** Coalition of Topeka Area Businesses



### Startup Cost Offsets The Metropolitan Topeka Airport Authority proposes to spend only existing airport funds and matching funds to pay for start

- up costs in support of new service introductions. The Airport, and its partners, will provide essential terminal space and equipment to handle the new service.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 32 Additional Costs As part of this program, the Metropolitan Topeka Airport Authority understands that additional expenses will be incurred, such as monitoring the results of the program and reporting those results back to the US DOT. In addition, the Airport Authority expects to incur some expenses in the recruitment of a new airline to serve the region. The Airport will not use DOT funding in these
efforts

– but instead, will use its own internal funding

.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 33 PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of new service in the Topeka market will be based on three measurable variables: the increase in available seats in the market, the number of enplanements on the route, and the average airfares charged in the affected city pairs. The first two measurements will include a monthly comparison once the program begins to post numbers. The second measurement will be derived from US DOT OD1A reports.

The sponsor, the Metropolitan Topeka Airport Authority will be the responsible party for all fiscal matters and DOT reporting requirements. As a public entity the DOT can be assured that proper financial controls are in place to guarantee that the DOT’s grant will be used in accordance with any subsequent agreement. The Metropolitan Topeka Airport Auth ority understands that the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the DOT for reimbursement, based on a percentage of the total grant request.

The Airport has developed this p roposal as a one

- time grant. The advertising and marketing program will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will also be in place for twelve months, with two additional
twelve

- mon th periods available for negotiation. It is projected that the service on the new route will be financially self

- sustaining within the second twelve months of service.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 34 LEGAL SPONSOR

The Metropolitan Topeka Airport Authority is the legal sponsor responsible for administering the
program

. The Metropolitan Topeka Airport Authority is a government entity.

Metropolitan Topeka Airport Authority Forbes Field Airport PO Box 19053 Topeka, Kansas 66619 Eric Johnson
, President/Director of Airport s 785.862.2362 ejohnson@mtaa

- topeka.orgMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 35 AVAILABILITY OF ALTERNATE AIRPORTS

Currently, the Topeka catchment area is only served by its alternate airports, as Forbes Field Airport has no scheduled air service. The primary alternate for Topeka travelers is Kansas City International, which lies 71 miles from downtown Topeka (see fig ure 18 ). The drive to Kansas City’s Airport can take as long as two hours in normal traffic.

A smaller percentage of Topeka catchment area
travelers use Wichita’s
Mid

- Continen t Airport as an alternate (see figure
18 ). Mid

- Continent isn’t as popular as Kansas City, due to the fact it lies
a two and a half hour
drive from most of Topeka. Other alternates
include Salina and Manhattan, but neither airport offers truly competitive s ervice, so neither draws significantly from the Topeka market. 

### FIGURE 18 : Alternate Airports in the Topeka Area As of August 2011Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 36 AIRPORT INFORMATION

Forbes Field Airport in Topeka was built as a military outpost, located in the heart of America, and has remained so for many years. In 1976, commercial air services moved from Topeka’s “other” airport, Billard Municipal, to Forbes Field, largely due to i ts available infrastructure, including a 12,000

- foot runway and an 8,000

- foot runway. Work to build Forbes Field began weeks after the Japanese bombing of Pearl Harbor,

in 1941, when the military sought an air base in
middle America. It operated solely i n a military role, hosting the Strategic Air Command, until 1976. The military left behind an outstanding physical plant, capable of becoming an air

- hub
for all of eastern Kansas
and western Missouri. 

### FIGU RE 19 : Aerial Photo of Forbes Field Airport, Topeka, KansasMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 37 COMMUNITY PROFILE

Topeka is the capital of the State of Kansas, the economic and cultural center of all of east central Kansas, and one of Money Magazine’s “Best Places to Live.” The City of Topeka has a population of roughly 125,000 people, according to statistics from th e US Census Bureau. Topeka’s Metropolitan Statistical Area (MSA), as defined by the Census Bureau, includes the counties of Shawnee (where Topeka is the County Seat ), Jackson, Jefferson, Osage, and Wabaunsee. Roughly, 230,000 people live within th e Topeka MSA.

Government and related services jobs comprise more than half of the Topeka job base. Additionally, a number of Fortune 500 companies have major offices or facilities in the Topeka MSA, including Goodyear, Frito

- Lay, Hallmark Cards, Payless ShoeSource (headquarters), Westar Energy (headquarters), and Burlington
Northern Santa Fe.

The cities surrounding Topeka
are home to some of the world’s truly great universities, including the University of Kansas at Lawrence, Kansas State University at Manhattan, Washburn University, and Emporia State University. Together these schools enroll more than 65,000 full

- time students, and employ more than 15,000 highly educated, and nationally regarded faculty and
staff members.

Topeka is increasingly becomi ng a regional tourist destination. In addition to high profile, and highly attended Division I collegiate athletics at the University of Kansas and Kansas State, the region offers new and original historical and cultural destinations that can’t be found a nywhere else. The National Park Service has opened a museum commemorating the Brown vs. the Board of Education decision, desegregating schools in Kansas. In addition, Topeka’s rose gardens and botanical parks draw visitors from around the country.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 38 What’ s New in Topeka Topeka isn’t the largest City in the State of Kansas, but new developments have made it the fastest growing economy in the State. With a total of 1,575 retained jobs
, 463 new jobs with an average wage of $50,000 and corporate investment of $352.25 million the Topeka area economy continues its stability from 2010 to 2011.

• The announced projects include a new Home Depot rapid deployment center , the purchase of the former Payless ShoeSource distribution center by PTMW, Inc. and expansions at the existing U.S. Foodservice, Goodyear Tire & Rubber Company and Frito

Lay plants

.

• The benefits will continue to grow o ver the next ten years, with 3,770 direct and indirect jobs added, resulting in 762 new residents in Shawnee County.

• The salaries to be paid to direct and indirect workers over the next ten years exceeds $2
billion , with nearly $777 million worth of taxa ble sales and purchases expected in the county over that decade.

The following companies have made major new investments in the Topeka economy:

The Home Depot Jobs: 300 Investment: $25 million

Frito

- Lay Investment: $60 million

U.S. Foodservice Retained Jobs: 175 New Jobs: 24 Investment: $13 million
The Goodyear Tire & Rubber Company Retained Jobs: 1,400 Investment: $250 million

PTMW, Inc. New jobs: 138 Investment: $4.25 millionMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 39 Topeka Economic Overview

As the capital of Kansas, Topeka also serves as the economic capital of the region. Almost half of the Topeka

- area workforce has jobs in state and federal government. Almost all of the State of Kansas’ service offices are located in Topeka. Additionally , the federal government has more than a thousand employees based in Topeka, in administration

- related jobs. Topeka is also home to high finance companies, major manufacturing facilities, and distribution centers.

While Money Magazine reports the annual average family purchasing power for a family in Topeka was $65,000, just below the national average of $68,000, Topeka offers a much lower cost of living than most other cities of equal or greater size. In the same report, Money reports
the national aver age cost of a home was $260,000, while the average home in Topeka sold for just $95,000. Thus, the annual “family income” of $65,000 in Topeka goes much further in east
central Kansas than it would in most other comparable cities.

The US Census Bureau reports the median income for a Topeka household is $36,000, while the median family income is $46,000. The per capita income for Topeka was $20,000, as reported in current US Census Bureau
estimates.

The City’s location, near the geographic center of th e US, makes it the perfect location for almost any industry. Flour mills, printing and publishing companies, medical providers, iron foundries, food processing plants, and rail and highway transportation companies have all realized the value of Topeka’s l ocation, opening major operations, employing tens of thousands of highly skilled workers.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 40 STATE OF KANSAS 8,074 GOODYEAR TIRE & RUBBER COMPANY 1,600 TOPEKA CITY GOVERNMENT 1,500 BLUE CROSS AND BLUE SHIELD 1,362 U.S. GOVERNMENT 1,192 DILLON STORES DIVISION 1,170 BNSF RAILWAY COMPANY 1,100 HILLS PET NUTRITION, INC. 919 WESTAR ENERGY 881 FRITO

- LAY, INC. 840 PAYLESS SHOES 810 JOSTENS PRINTING & PUBLISHING 703 RESER’ S FINE FOODS 700 HALLMARK CARDS, INC. 680 ALORICA, INC. 600 SECURITY BENEFIT 600 TARGET DISTRIBUTION CENTER 600 JOINT FORCE HEADQUARTERS & NATIONAL GUARD 556 MIDWEST HEALTH MANAGEMENT 550 VETERANS HEALTH RESOURCE CENTER 468 AT & T KANSAS 460 COREFIRST BANK & TRUST COMPANY 408 190th AIR REFUELING WING KANSAS AIR GUARD 361
Bold indicates headquarters location

Select Company Profiles Payless ShoeSource The nationally recognized provider of designer shoes at discount prices, Payless ShoeSource was founded in Topeka in 1956, and it still has its corporate headquarters in the City. In 2005, Payless sold more than 182 million pairs of sh oes, at a value of $2.7 b illion, at retail stores in all 50 states and in a number of foreign companies. Payless currently employs more than 1,730 people in its corporate administration and distribution offices in Topeka,
and
, as such, is one of the City’ s most important private employers. 

### FIGURE 2 0 : Top Employers in Topeka Source: Greater Topeka Chamber of CommerceMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 41 Burlington Northern Santa Fe (BNSF) Created by a merger of six major railways, Burlington Northern Santa Fe railroad is the nation’s second largest, in terms of the number of track miles. BNSF is one of just four t rue national transcontinental railways in the US. The company is based in Fort Worth, Texas, but it operates one of its largest rail yards in Topeka, where it has a major transcontinental transfer hub. BNSF also has major rail yards in Los Angeles, Kansa s City, and Alliance,
Nebraska.

Jostens Printing and Publishing Jostens is the country’s leading provider of school portraits, class rings, and yearbooks, along with graduation caps, gowns, and diplomas. The company is headquartered in Minneapolis, but it has its major printing and publishing division headquarters in Topeka. Jostens’ Topeka facility not only prints school photos, but also diplomas and yearbooks, with more than 1,000 employees in east
central Kansas.

Frito

- Lay
Frito

- Lay is a wholly owned subsidiary of Pepsi

- Co, best known for its snack foods. Frito

- Lay had 2008 revenue of $43 billion, while the company employed more than 198,000 people nationally, including more than 800 in Topeka. Frito

- Lay’s Topeka plant cur rently produces a number of its brands of chips, along with cookies, and some of Pepsi

- Co’s soft drinks.

Hallmark Cards
Hallmark is one of the best known companies, with one of the most recognized service marks in corporate America. The company was founded in 1910, in Kansas City, and has grown to become with world’s foremost designer, printer, and seller of greeting cards. Hallmark currently has mo re than 43,000 retail outlets around the world. Hallmark’s Topeka plant currently produces about 46% of the company’s greeting cards. It also includes Hallmark’s largest export center. Together, those two Topeka operations employ 750 people in east cent ral Kansas.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 42 Goodyear Tire and Rubber One of the most admired companies in the world, according to Fortune Magazine , Goodyear employs more than 1,700 people at its rubber manufacturing plant in Topeka. Headquartered in Akron, Ohio, Goodyear has major fac ilities in North Carolina, Virginia, California, Alabama, Arizona, New York, Florida, and Texas

– not to mention overseas facilities in Canada, Belgium, France, Germany, Turkey, South Africa, Brazil, Chile, China, India, Taiwan, Japan, Indonesia, and Austr alia. Goodyear is one of the largest users of the national and international air transportation system.

Westar Energy Westar ranks 936 on the Fortune 1000 list, as of the year ended 2007. The company has its corporate headquarters in Topeka. Westar is the largest energy provider in Kansas, and one of the largest in the Midwest, with more than 675,000 customers. Westar employs more than 2,200 people in the region.

Higher Education in the Topeka Area

The region surrounding Topeka is a center for hig her education that is recognized around the world. Two of the best universities in the United States are located just miles from Topeka: the University of Kansas (KU) and Kansas State University (KSU). The region is also home to the smaller, and well
reg arded Washburn University, which is located in Topeka itself, and Emporia State University, which lies less than 50 miles from the State Capitol. Together, these four universities employ more than 15,000 people, and enroll more than 65,000 full

- time stude nts. Moreover, KU and KSU draw hundreds of thousands of alumni and fans every year to their outstanding Division I athletic programs, as the “Jayhawks” and the “Wildcats” fight for Big XII Conference championships

.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 43 The University of Kansas The University of Kansas at Lawrence sits less than 40 miles to the east of Topeka. The University is widely regarded as one of the nation’s preeminent teaching and research universities, currently enrolling almost 30,000 full

- time students. KU is the St ate’s flagship liberal arts institution. KU’s mission is to serve as a “center for learning, research, scholarship, and creative endeavor” for the State of Kansas, the country, and the world. Kansas offers what students and alumni call an “ideal campus,” historic, yet wireless at the same time, close to the State’s capital, yet bordering the prairie, with high

- tech labs, interactive classrooms, and world

- class performing arts venues. The University of Kansas is best known as a “basketball school,” with it s Jayhawks continually battling for championships in the Big XII Conference and in the NCAA’s Division I. The University offers outstanding athletic facilities, and its sports programs draw several hundred thousand fans each year, from all over the countr y.

Kansas State University Kansas State (KSU) is the State’s flagship engineering and technology institution. Its main campus is located in Manhattan, which lies less than 50 miles to the northwest of Topeka . KSU currently enrolls more than 23,000 full

- time students from all 50 states and more than 90 foreign countries. KSU is known as one of the “best buys” in a college education. Princeton Review ranks Kansas State as the fifth best buy in the country, w hile Consumers’ Digest ranks it 16 th

. KSU offers more than 250 different undergraduate programs, and it grants doctoral degrees in 45 areas of study. Each year the University grants more than $150 million in scholarships and grants.

Like the University of Kansas, Kansas State is a member of the Big XII athletic conference. The Wildcats compete in more than two dozen sports, and draw a few hundred thousand fans to

on

- campus sporting events each year.

Washburn University
While no match for the University of Kansas or Kansas State, in terms of the size of the student body, Washburn University in Topeka is considered one of the Midwest’s best master’s level institutions. US News and World Report ranks Washburn the sixth best Midwest liberal arts college. Washburn currently enrolls more than 7,000 full

- time students. Washburn provides a broad

- based liberal arts education, with special emphasis on professional skills. The University offers small class sizes, accomplished faculty, one

- on

- one instruction, an d state

- of

- the

- art technology.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 44 Emporia State University The University is located just 50 miles from Topeka, in the town of Emporia, which lies in heart of northeastern Kansas’ Bluestem region of the Flint Hills, Emporia State University enrolls 6,400 ful l

- time students, who study in more than 100 different majors. Emporia State provides the community with not only an outstanding institution for higher learning, but with a pair of libraries, a museum, recreational facilities, and other cultural offerings.

Topeka Tourism As a quintessential piece of America’s heartland, Topeka offers the very best of Midwest culture. As the capital of Kansas, Topeka offers a number of government

- related attractions, as the City provide s families the best, hands

- on opportunities to learn about how government really works. Topeka also has a number of regionally recognized attractions that draw hundreds of thousands of visitors each year, including a national park dedicated to the Brown vs . the Board of Education decision desegregating public schools. Topeka is home to a dozen art galleries, five performing arts centers, two botanical gardens, a zoo, a number of nationally known museums, dozens of unique restaurants, and some of the best s hopping in the Midwest.

Brown vs. Board of Education National Historic Site Opened in May of 2004, on the 50 th anniversary of the Brown vs. Board of Education decision to desegregate public schools in Kansas, this National Historic Site offers a unique l ook back at what led up to the decision, and insight into how the decision was made. It’s a story of hope and courage, and the plaintiffs in the case never knew the impact they would have on the history, not just of Kansas, but of the country. This

museu m tells the story of these “ordinary people” who stood up for what was right, and changed history.

Kansas Museum of History The Kansas Museum of History offers a true “look back” at how the State was settled, and what life was really like when Kansas was the western frontier of the United States.
The museum has award

- winning exhibits about the colorful characters, and the everyday folks, who helped to turn the prairies of the region into the most fertile agricultural area in the world. The museum has re stored a full

- scale wagon from the Oregon Trail, along with a full

- size Cheyenne tipi, as a tribute to those who called the land home long before any European settlers arrived. The museum is home to one ofMetropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 45 the few remaining 1880 locomotives, displayed in an exhibit that explains the Topeka, Atchison,
and Santa Fe railroad.
Reinisch Rose Garden and Doran Rock Garden The Reinisch garden features more than 400 varieties of roses, amidst more than 6,500 species of plants. The garden is one of 23 test plots in the country for “hybridizers,” or cross

- bred roses. The garden was conceptualized in 1926, and it opened in 1930, at a cost of $30,000. The garden typically blooms from late

- May through mid

- September.

Ward

- Meade Park Botanical Gardens
The Ward

- Meade g ardens compliment the Reinisch Rose Garden, offering more than 500 varieties of flowers, shrubs, and trees on a 2.5 acre area of land. Each individual plant is labeled, making the garden a perfect place to learn botany and horticulture. Ward

Meade Park i s also home to Topeka’s only “water garden.”

Topeka Zoo The Topeka Zoo is the passport to discovering hundreds of species of exotic animals, without ever leaving east central Kansas. The zoo offers innovative animal exhibits such as “Discovering Apes,” the tropical rain forest, “Lion’s Pride,” the children’s zoo, and the “Black Bear Woods.” The zoo also offers exhibits featuring animals commonly found in the region surrounding Topeka.

Combat Air Museum Much more than a mere collection of aircraft, the Combat Air Museum, located at Forbes Field, houses a wide variety of aviation artifacts dating back to the
First World War. The museum offers one of the world’s best collections of aircraft engines, with d escriptions and explanations as to how they were developed and how they work. The museum also offers battlefield dioramas, which are full

- scale mock

- ups of
World War One and World War Two battlefield installations.Metropolitan Topeka Airport Authority • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 46 CONCLUSIONS

In its meetings with airl ines in 2011, the Metropolitan Topeka Airport Authority has learned that one of the biggest challenges it faces in recruiting local air service is the fact that many airlines are worried about breaking passenger habits in the catchment area. Passengers in the Topeka catchment area are conditioned to drive to Kansas City to access air service. This Grant application is a key to funding an adequate marketing program to accomplish the goal of retaining passengers, and to provide an airline with a revenue gua rantee to cover potential losses during the start

- up phase of service.

This application takes on new importance in 2011, as airlines have cut regional capacity by more than a quarter since the fuel spike of 2008. Th is has resulted in rising fares

– up 14% in just the last year , or $20 each way . Moreover, it is much more exp ensive now for Topeka catchment area passengers to drive to other airports in the region due to the increased gas
cost.

Denver has the potential to serve as an excellent
hub for service for much of central Kansas. There
is no other Denver service offered in either the Topeka or Manhattan catchment areas. Moreover, the number of daily average seats between Kansas City and Denver has been cut by 32% in the last two years. The Kansas City

– Denver market has seen a loss of 707 available seats per day each way. The 100 available seats per day each way proposed in this application will replace only a small portion of those already cut from the region.

The Metropolitan Topeka Airport Authority has spent considerable time building a local coalition of support for the air service proposed in this application. This local coalition has pledged $15,000 in cash funding for this application

– new from previous applications for Small Community Air Service Development Grant funding. Additionally, the Airport will co ntribute $50,000 in cash funding as part of this project. With this funding in place, the DOT can be assured it has a committed partner in Topeka. 

## “ This application takes on new importance in 2011, as airlines have cut regional capacity by more than a quarter since the fuel spike of 2008.”