# University of Illinois Willard Airport

Se rving the Communities of Champaign and Urbana

Proposal Under the Small Community Air Service

Development Program Docket DOT

- OST

- 2010

- 0124

Dun & Brad street DUNS Number: 04

- 154

- 4081 Two Digit Congres sional District Code: 15University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 2 

## TABLE OF CONTENTS
INTRODUCTORY LETTER

................................ ................................ .................. 4 EXECUTIVE SUMMARY

................................ ................................ ...................... 5 AIR SERVICE OVERVIEW

................................ ................................ ................... 6
Catchment Area and Other Airports in the Region

................................ ................................ ................................ 6 Current Champaign Airline Service

................................ ................................ ................................ ........................ 7 Marketing, Promotion and Air Service Development

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

## AIR SERVICE DEVELOPMENT NEEDS AND DEFICIENCIES

........................... 9
Declining Capacity

................................ ................................ ................................ ................................ ................. 9 Seats per Capita

................................ ................................ ................................ ................................ .................. 11 Declining Traffic

................................ ................................ ................................ ................................ ................... 12 High Fares

................................ ................................ ................................ ................................ ............................ 14 Traffic and Fares in Champaign/Urbana's Largest Domestic Markets

................................ ................................ 17
Traffic and Fares in Cha mpaign/Urbana's Largest International Markets

................................ ........................... 18 

## STRATEGIC PLAN

................................ ................................ ............................ 19

Goals

................................ ................................ ................................ ................................ ................................ .... 19 Detailed Explanation of Proposal

................................ ................................ ................................ ......................... 19 

## PROJECT IMPLEMENTATION AND FUNDING

................................ ................ 21
Public/Private Partnership

................................ ................................ ................................ ................................ .... 21 Project Funding

................................ ................................ ................................ ................................ .................... 22 Implementation Timeline

................................ ................................ ................................ ................................ ...... 23 Project Monitoring and Success Metrics

................................ ................................ ................................ .............. 24 Legal Sponsor

................................ ................................ ................................ ................................ ...................... 25
Financial Controls

................................ ................................ ................................ ................................ ................ 25
Return on Inv estment

................................ ................................ ................................ ................................ ........... 25 DOT Exit Strategy

................................ ................................ ................................ ................................ ................ 26 

## APPENDIX A: REQUIRED SUMMARY INFORMATION

................................ ... 27

A. Applicant Information

................................ ................................ ................................ ................................ .... 27
B. Public/Private Partnerships

................................ ................................ ................................ .......................... 27
C. Project Proposal

................................ ................................ ................................ ................................ ........... 27
D. Existing Landing Aids at Local Airport

................................ ................................ ................................ .......... 28
E. Project Cost

................................ ................................ ................................ ................................ .................. 28University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 3 F. Enplanements

................................ ................................ ................................ ................................ ............... 28
G. Is this application subject to review by state under Executive Order 12372 Process?

................................ 28
H. Is this applicant delinquent on any federal de bt?

................................ ................................ ......................... 29 

## APPENDIX B: COMMUNITY BACKGROUND

................................ .................. 30
University of Illinois

- Willard Airport Background

................................ ................................ ................................ .. 30 Champaign County Community Information

................................ ................................ ................................ ........ 31 

## APPENDIX C: LETTER OF SUPPORT

................................ ............................. 38University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 4 

## INTRODUCTORY LETTERUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 5 

## EXECUTIVE SUMMARY

University of Illinois Willard Airport is proposing a Small Community Air Service Development Grant in the amount
of $250,000 that will be supplemented with $80,000 of cash from community organizations to develop and implemen t a marketing and advertising program

. Champaign/Urbana will lose one of the two airlines serving the community in just a few days on August 31 when
Delta Air Lines discontinues the De l t a Connection/Northwest Airlink service that had linked Champaign/Urban a with the Detroit hub for over ten years. Although American Eagle will continue its Champaign/Urbana service to Chicago and Dallas/Ft. Worth, the loss of Delta's service will result in fewer enplanements at the airport and could result in higher fares.

T he loss of Delta comes at the end of a ten year period where capacity declined 35.6% from the beginning of the decade and 41% from its peak. Capacity in the most recent year

- end period was at its lowest point over the last ten years, while traffic also dec lined to its lowest point. Champaign/Urbana's domestic fares on the other hand, were at $190 each way in the most recent year

– just under their ten

- year peak of $200 each way in the year

- end first quarter 2009.

Without an effort to increase the airport' s traffic on the remaining capacity, our community risks losing some or all of the remaining capacity operated by American Eagle. We believe the best way to reverse the trend in the community's air service metric is to develop and implement a marketing an d advertising campaign to build awareness to the air service offered at the local airport and recapture traffic leaking to other airports in the region. Many residents and businesses in and around Champaign and Urbana have been conditioned to use air serv ice available from other airports in the region and may not be aware American Eagle serves two hubs from Champaign/Urbana and can travel to their final destination with just one connection by originating their trip from the local airport. A well

- funded an d executed marketing and advertising campaign will steer travelers back to Willard Airport, increasing enplanements at the airport and strengthening American Eagle's financial performance in Champaign.

If the community were to win a grant, work could begin immediately on developing the marketing and advertising campaign, and it could be implemented in less than three months, by March 1, 2011. Because the University of Illinois owns and operates Willard Airport and b ecause the University employs various mar keting and advertising personnel, these personnel would be leverage for some of the creative and content work for the campaign and a higher percentage of program funding could be used for advertising placement.

O rganizations within the community and the Un iversity of Illinois recognize the economic value commercial service at Willard Airport brings to the community and have underscored their commitment by allocating financial
resources t o the proposed marketing and advertising project.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 6 

## AIR SERVICE OVERVIEW

Catchment Area and Other Airports in the Region

University of Illinois Willard Airport is the primary airport serving Champaign, Urbana and other smaller
communities within a 30 to 60

- minute drive time radius around the airport in Illinois and Indiana. 187,000
residents live within a 3 0

- minute d rive of the airport, and 576,000 residents live within a 60

- minute drive of the airport. There are three other communities in Central Illinois with commercial airline service within two hours of Champaign/Urbana, including Peoria, Blo omington/Normal and Springfield (Exhibit 1).

Exhibit 1: 30 and 60

- Minute Drive Time Catchment Area s of University of Illinois Willard AirportUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 7 

## Current Champaign Airline Service

Currently, American Eagle and Delta Connection serve Champaign /Urbana, but Delta Connection will discontinue
its service in the market and end service between Champaign and Detroit on August 31, 2010. Without the Delta Connection service, Champaign will be served only by American Eagle to Chicago (five rou ndtrips per day) and Dallas/Ft. Worth (one roundtrip per day) (Exhibit 2)

.
Exhibit 2 : Route s Operated from University of Illinois Willard Airport (Effective September 1, 2010)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 8 

## Marketing, Promotion and Air Service Development

With only limited marke ting and advertising funding available, Willard Airport markets the air service in the community in print media, on billboards and on radio ads during all big ten football and basket ball broadcasts.

Print media includes:

 Champaign County Community Link M a gazine

 Community Concierge M agazine

 Champa ign County Commerce Connection M agazine

 Inside Illinois M agazine

The objective of this proposal is to win a Small Community Air Service Development Grant to initiative a comprehensive marketing and advertising camp aign.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 9 

## AIR SERVICE DEVELOPMENT NEEDS AND DEFICIENCIES

Declining Capacity

In the year

- end first quarter 2009, Champaign/Urbana 's capacity declined to its lowest point in the last ten years. Although capacity increased from year

- end first quarter 2001 to year

- end first quarter 2006, capacity was down 41% from 625 seats per day each way at the peak to 370 seats per day each way in the year

- end first quarter 2010 (Exhibit 3).

Exhibit 3 : Seats per Day Each Way at University of Illinois Willard Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 data)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 10 Although American's capacity in Champaign/Urbana reached a ten

- year low in the most recent year, America n has oper ated more capacity than Delta/Northwest every year in each of the last ten years (Exh ibit 4 ). In the year

end first quarter 2005, Delta began Cincinnati service and Northwest added capacity in the Detroit market, causing the combined Delta/Northwest capacity to increase for two years until Delta discontinued Cincinnati
service. Delta al so entered the Atlanta market for a brief period of time in the year

- end first quarter 2007.

Exhibit 4 : Seats per Day E ach Way by Carrier at University of Illinois Willard Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 data)

Over the same ten ye ar period, three destinations were added in the Champaign/Urbana market including
Cincinnati and Atlanta on Delta and Dallas /Ft. Worth on American. O ver the same period, four markets were discontinued; Atlanta and Cincinnati on Delta , Detroit on Northwes t and St. Louis on American (Exhibit 5 ). American's Chicago service has operated continuously over the last ten years.

Exhi bit 5 : Champaign/Urbana Markets Added and Discontinued by Year, Carrier and DestinationUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 11 

## Seats per Capita

Seats per capita me asures the amount of airline capacity in a community relative to the community's population and can be helpful when comparing the quality of one community's air service to another.

Relative to the other three airports in the region, Champaign/Urbana has fewer seats per capita than either Bloomington or Peoria. In the year

- end first quarter 2010, airlines operated 135,038 seats in each direction to and from Champaign/Urbana. The latest census bureau estimate of Champaign/Urbana's MSA population is 226,13 2 residents. When the number of se ats are divided by the population estimate , the result is 0.6 0 seats per capita

– airlines operated 0.60 seats for every resident of Champai g n/Urbana in the most recent year

. Bloomington had 2.06 seats per capita, Peoria had 0.92 seats per capita, and Springfield had 0.46 seats per capita in the most recent year ( Exhibit 6 )

. Delta will exit the Champaign/Urbana market on August 31, 2010. If Delta had not operated at Champaign/Urbana in the most recent year, Champaign/Urba na's seats per capita would have been 0.4 8 . This is
also an indication of Champaign/Urbana's seats per capita in the upcoming year without Delta. The community will have essentially the same level of service Springfield had in the most recent year.

Exhibi t 6 : Seats per Capita in Champaign/Urbana, Bloomington/Normal, Peoria and Springfield

– Year

- End First Quarter 2010 (T

- 100 data and U.S. Census Bureau 2009 population estimates)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 12 

## Declining Traffic

Champaign/Urbana's traffic has declined as carriers reduced capacity in the market. Champaign/Urbana traffic peaked i n the year

- end first quarter 2006 with 223,400 domestic and 26,900 international origin and destination
passengers. Since the peak, traffic fell 36.5% to 141,770 origin and destination pas sengers, while international traffic fell 13.7% to 23,210 origin and destination passengers in the most recent year. In the year

- end first quarter 2010, combined domestic and international traff ic is down 34.1% since the peak (Exhibit 7).

Exhibit 7 : Annu al D omestic and International Origin and Destination (O&D) Passengers at University of Illinois Willard Airport

– Year

- End First Quarter 2001

- 2010 ( DB1B data)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 13 Translated to passengers per day each way (PDEW), Champaign/Urbana generated 194 domestic and 32 international PDEW in the year

- end first quarter 2010

– down from 306 domestic PDEW and 37 international PDEW at a the peak. International traffic, on a percentage basis, held

- up much better than domestic traffic (Exhibit 8)

.

Exhibit 8 : Annual Domest ic and International Passengers per Day Each Way (PDEW) at University of Illinois Willard Airport

– Year

- End First Quarter 2001

- 2010 (DB1B data)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 14 

## High Fares

Domestic fares in Champaign/Urbana declined somewhat between year

- end first quarter 2001 and 20 06, but began to increase again in 2006 as capacity and traffic declined. In the most recent year

- end period, Champaign/Urbana's average fare stood at $190

– down from a peak of $200 in the previous year, but still high by most standards (Exhibit 9)

.

Ex hibit 9 : PDEW, Seats per Day Each Way and Average Domestic Fare at University of Illinois Willard Airport

– Year

- End First Quarter 2001

- 2010 (DOT T

- 100 and DB1B data)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 15 Champaign/Urbana 's year

- end first quarter 201 0 domestic one

- way fare was $190
, but a nalysis of the data by quarter shows the average domestic one

- way fare stood at $201 in first quarter 2010

– up $22 versus first quarter 2009. The average domestic fare trended up to this level as both capacity and domestic traffic trended down to
their l owest levels in the last two years (Exhibit 10)

.

Exhibit 10 : PDEW, Seats per Day Each Way and Average Domestic Fare at University of Illinois Willard Airport

- Quarterly Data

– First Quarter 2008 through First Quarter 2010 (DOT T

- 100 and DB1B data)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 16 At $190, the average domestic one

- way fare in Champaign/Urbana in the most recent year was the highest of the airports at the four airports in Central Illinois. With an average one

- way fare of $134, Bloomington had the lowest
domestic one

- way fa re among the four airports. T he Bloomington fare is a function of low

- cost carrier A irTran's service in Bloomington, and American and De lta match AirTran's pricing in com petitive markets. Bloomington's average fare was $56 lower each way than the average Champai gn/Urbana fare. Springfield's average fare was $169 and Peoria's average fare was $174 (Exhibit 11)

.
Exhibit 11 : Average Domestic Fare in Champaign/Urbana and the Airports Surrounding Champaign/Urbana

– Year

- End First Quarter 2010 (DOT T

- 100 and DB1B d ata)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 17 

## Traffic and Fares in Champaign/Urbana's Largest Domestic Markets

The 30 largest domestic Champaign/Urbana markets produced 83.6% of the total domestic traffic. American carried 84% of the traffic in the 30 largest domestic markets, and Delta car ried 15% of the traffic (the remaining 1% was written on other carrier's ticket stock and ultimately flown on an American or Delta flight to or from Champaign).

American carried 80% of Champaign/Urbana's total domestic traffic, and Delta carried 18%. Whi le American carried four of every five passengers, American's average fare was also higher than Delta's average fare

– $189 versus $179. Given American's dominant share of the market and its fare premium to Delta, it is not surprising
Delta will discon tin ue its service in Champaign/Urbana (Exhibit 12).

Exhibit 12 : PDEW, Share and Average One

- Way Fare in Champaign/Urbana's 30 Largest Domestic Markets

– Year

- End First Quarter 2010 (DB1B data)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 18 

## Traffic and Fares in Champaign/Urbana's Largest International M arkets

International traffic in Champaign/Urbana accounts for 14% of the total traffic in the community. This is approximately twice as much international traffic as a typical market the siz e of Champaign/Urbana generates. The higher ratio of internation al traffic is likely a function of traffic generated University of Illinois and Asian

- based manufacturers in the region. The five largest markets are Seoul, Shanghai, Taipei, London and Toronto.
American carries 59% of the international traffic and Delta carries 17%. The remaining 24% is ticketed on various foreign airlines, including American's oneworld alliance partners and Delta's SkyTeam alliance partners. While American carries the dominant share of the international traffic, Delta's discontinuation of service in Champaign/ Urbana will adversely impact the ability of foreign airlines to sell Champaign/Urbana as a destination (Exhibit 13)

.

Exhibit 13 : PDEW, Share and Average One

- Way Fare in Champaign/Urbana's 30 Largest International Markets

– Year

- En d First Quarter 2010 (DB1B data)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 19 

## STRATEGIC PLAN

Goals

Champaign/Urbana has four goals for its Small Community Air Service Development Grant proposal:

 Build awareness of the service operated by American Eagle in Champaign

 Retain the remaining capacity o perated by American Eagle

 Eventual ly i ncrease enplanements, despite the loss of Delta's service

 Decrease leakage to surrounding airports 

## Detailed Explanation of Proposal

After declines in capacity and traffic over the last five years, Delta will exit the Champaign/Urbana market on August 31, 2010 and leave the community with only one airline for the first time in its recent history. The community must take action to preserve its remaining air service and seeks a Small Community Air Service Development Gra nt to establish a marketing, promotion and advertising program.

In the past, the A irport relied on airlines to locally market, promote and advertise their service a t Willard Airport; however, the financi al condition of the indus try over the last ten year s has forced airlines to limit their marketi ng and advertising to only their largest markets. Small markets such as Champaign/Urbana were deemed too small, and marketing and advertising budgets have been reduced effectively to zero in the small markets. Willard Airport recognizes the critical function of marketing and advertising air service, especially in a region like Central Illinois where service at other airports is an option for travelers in the Champaign/Urbana area. Without an effective, well

- fu nded marketing and advertising program, the airport will be at risk of losing some or all of American Eagle's service, and without a reversal of the trend in declining traffic, the airport will not be able to
attract new service from other airlines.

While Champaign/Urbana ha s the fortune of service to two of American's hub s

– Chicago and Dallas/Ft. Worth

– many travelers in the area are not aware of the service an d automatically look for options from other airports when making travel arrangements without ch ecking options from Champaign/Urbana. Travelers are conditioned to check and book options from other airports simply because they are not aware of the service available in Champaign/Urbana. Some t ravelers who are aware of service from Champaign/Urbana sim ply assume schedule s and fares at airports in Bloomington or Peoria are better than the options from their local airport.

The Airport believes a marketing campaign using multiple forms of media to include frequent radio, television, billboard, newspaper an d targeted web advertising, along with targeted promotional activities such as ticketUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 20 giveaways targeted at residents and businesses in the Airport's immediate catchment area will build awareness of the service available from Champaign/Urbana. In additi on to media buys, the Airport plans to use a portion of the funding to enhance the functionality of its website ( www.flycmi.com ) so travelers in the area make the website a "go

- to" portal for their travel planning.

The Airport is seeking $250,000 in Small Community Air Service Development funding supplemented with $80,000 of community

- contributed cash to begin a marketing and advertising campaign. The Airport anticipates the funding would be used over a two year period . At the end of two years, marketing and advertising would be
self

- funded by the Airport, albeit at a somewhat reduced level

. The Airport has no marketing and advertising campaign at this time. Because the Airport is owned by the University of Illinois and because the University has its own marketing and promotional personnel, the Airport will work with University personnel to develop the Airport's marketing and advertising campaign. Leveraging these resources will enable the Airport to buy more media p lacement with the grant and local funds. Because there are other airport s in Central Illinois, most media placement will be limited to the immediate Champaign/Urbana area. Marketing the airport in the catchment area of another airport would be ineffectiv e, in most cases, relative to marketing in the Airport's immediate catchment area.

The marketing and advertising campaign will have four primary messages;

 C onvenience of the local airport

 F ares may be just as low as the fares at alternate airports

 Se rvi ce is available to two hubs

 A ll service is operated with jets

The Airport believes its proposed marketing and advertising campaign will have an immediate impact on the
awareness of airline service av ailable from the local airport, play a key role in rever sing the decline in the airport's traffic and ensure American Eagle retains its capacity in the Champaign/Urbana market.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 21 

## PROJECT IMPLEMENTATION AN D FUNDING Public/Private Partnership

Champaign County Economic Development Corporation
The Champaign Count y Economic Development Corporation is a public

- private partnership dedicated to fostering a cooperative, county

- wide approach to economic development. The organization coordinates with a number of other key organizations in the area to promote an environme nt in which business thrives.

Champaign County Alliance
The Champaign County Alliance is a service organization for the Champaign County Chamber of Commerce, the Champaign County Economic Development Corporation (EDC) and the Champaign County Convention an d Visitors Bureau (CVB). The Alliance is made up of a board of directors with representation from the Chamber, the EDC and the CVB, plus the top investors (collectively) in the three organizations. These three top investors are the cities of Champaign an d Urbana and the University of Illinois.

University of Illinois at Urbana

- Champaign

The University of Illinois at Urbana

– Champaign ( U of I
, UIUC , or simply Illinois ) is a public rese arch university located in Urbana. 2009 enrollment was 31,209 undergradu ate and 10,701 graduate students. UIUC is the oldest, largest, and most prestigious campus in the University of Illinois system . The University of Illinois Urbana

Champaign is the second oldest public university in the state, second to Illinois State Unive rsity

. The university
has 17 colleges and instructional units offering more than 150 programs of study. Additionally, the university operates an extension that serves 2.7 million registrants per year around the state of Illinois and beyond.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 22 

## Project Fun ding

In addition to the Small Community Air Service Development Grant of $2 50,000 requested from the Department,
the organizations within the communit y have committed to cash contributions totaling $80,000. Communi ty cash contributions will be provided b y the Champaign County Economic Development Corporation ($20,000)
, the Champaign County Alliance ($10,000) and the University of Illinois ($50,000). The university's funding will be provided by the Chancellor's Community Projects Fund. The planned total value of the program is $330,000, with 24.2% of the funding coming from the community (Exhibit 14).

Exhibit 14: Sources and Types of Program FundingUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 23 

## Implementation Timeline

Assuming the Department awards the Small Community Grant Funding in December 2010, the Airport will immediately begin implementing its proposed marketing and advertising program. The Airport will implement its proposed marketing and advertising campaigns with a sense of urgency, and it is in the interest of the community to implement the proposed campaign as quickly as possible.

The first task will be to execute the grant agreement with the Department . Once the agreement has been executed, an integrated marketing and advertising strategy and plan will be developed beginni ng in January 2011. Following development of the strategy and plan, content for the visual and audio portions of the strategy will be developed. Website enhancements will be developed in parallel with content development throughout the
remainder of Janua ry and February 2011. The target date for roll

- out of each aspect of the marketing and advertising plan is March 1, 2011. The Airport plans to manage funding of this grant to allow for two year's worth of marketing and advertising through December 31, 20 12. At that time, marketing and advertising will continue, at a level based on the amount of continued funding from the community and funding in the Airport's budget (Exhibit 15)

The Airport will submit grant status reports on a quarterly basis to the Dep artment throughout the proposed two year term of the program through December 2012.

Exhibit 15 : Proposed Project Timeline (assumes grant announcements in December 2010 )University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 24 

## Project Monitoring and Success Metrics

The s u ccess of th e progra m will be b ased o n achieving the goals of the program

. Because Delta will exit the market, year

- over
- year traffic will likely be down, but it should be down to a lesser extent if the proposed marketing and advertising program is implemented. Because a simple year

- over
- ye ar comparison of traffic will not provide an adequate measure of the effectiveness of the marketing and advertising campaign in the first year Delta is not serving the community, the airport will compare the decline in traffic to the decline in capacity. If the proposed campaign is successful, traffic should not decline as much as the decline in capacity. The change in American Eagle's year

- over
- year load factor will also provide an indication of t he program's success; the more effective the campaign, the higher American Eagle's load factor.

Project Goals Success Metric

 Build awareness of the service operated by American Eagle in Champaign

 Retain the remaining capacity operated by American Eagle

 Eventual ly i ncrease enplanements, despite the loss of De lta's service

 Decrease leakage to surrounding airports  Traffic declines to a lesser extent than the decline in capacity caused by Delta's exit (Year One)

 Traffic increases year

- over
- year by month (Year Two)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 25 

## Legal Sponsor

As the owner and operator of Willard Airport, the University of Illinois at Urbana

- Champaign is the legal sponsor responsible for administering the program. The University of Illinois at Urbana

- Champaign is a government entity.

University of Illinois Office of Capital Programs and Re al Estate Services 807 South Wright Street, Suite 340, MC

- 309 Champ ai gn, Illinois 61820
Bruce K. Walden, Directo r

Phone: 217

- 244

- 8496

Fax: 217

- 244

- 8802
bwalden@uillinois.edu



## Financial Controls

As the sponsor, the University of Illinois at Urbana

- Champaig n will be the responsible party for all fiscal matters and the Department's reporti ng requirements. The University is established as a public governing body. As a public entity
, the Department can be assured proper financial controls are in place to guar antee the Department ’s Grant will be used in accordance with any subsequent agreement. The University of Illinois at Urbana

Champaign understands the g rant is a reimbur sab le grant, meaning the University is responsible for program expenditures and will su bmit invoices to the Department for reimbursement, based on a percen tage of the total grant request.



## Return on Investment

The University of Illinois at Urbana

- Champaign Willard Airport will develop a cost e ffective and achievable marketing and advertisin g strategy to reverse negative enplanement trends at the Airport. The prop osed plan will

use proven methods of achieving air service improvements, allowing the DOT to be comfortable with choosing this proposal. The increased awareness of air service, inc reased enplanements on the service, and access to
lo wer airfares, is in

- line with the goals of the Department's Small Community Air Service Development Program.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 26 

## DOT Exit Strategy

The University of Illinois at Urbana

- Champaign Willard Airport has develop ed this proposal as a one

- time grant. Work on the proposed advertising and marketing program will begin as soon as this grant is awarded and last for a period of two years. It is projected that local enplanements will increase within the first few months of launching the marketing and advertising program in March 2011.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 27 

## APPENDIX A: REQUIRED SUMMARY INFORMATION
A. Applicant Information

Not a Consortium

Interstate Consortium

Intrastate Consortium
Community now receives EAS subsidy
Community (or Consortium member) previously received a Small Community Grant
If previous recipient: Date of Grant: ____________________ Expiration Date of Grant: ____________________



## B. Public/Private Partnerships

Public
University of Illinois at Urbana

- Champaign

Private
Champaign County Economic Development Corporation
Champaign County Alliance
University of Illinois Chancellor's Office Community Projects Fund



## C. Project Proposal

Marketing Upgrade Aircraft New Route Personnel Increase Frequency Low Fare Service Travel Bank Service Res toration Subsidy Surface Transportation Regional Service Other (specify) Revenue Guarantee Launch New Service Start

- Up Cost Offset First Service Study Secure Additional CarrierUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

Small Community Air Service Development Program Proposal

– 2010 

### 28 

## D. Existing Landing Aids at Local Airport

Full ILS Outer/Middle Marker Publish ed Instrument Approach Localizer Other (specify)



## E. Project Cost

1. Federal amount requested: $250,000 2. State cash financial contribution: 3. Local cash financial contribution: $80,000 3a. Airport cash funds: 3b. No n
- airport cash funds: $80,000 3c. Total local cash funds (3a + 3b): $80,000 4. TOTAL CASH FUNDING (1 + 2 + 3c): $330,000 5. Local funds contributed from already

existing programs or projects included in line 3c amount: 6. Local funds contributed from new co mmitments or new resources included in line 3c amount: $80,000

7. Airport in

- kind contribution: ( waived fees ) 8. Other in

- kind contribution: (advertising/media placement) 9. TOTAL IN

- KIND CONTRIBUTION (7 + 8): $0 10. TOTAL PROJECT COST (4 + 9): $330,000 

## F. Enplanem ents

2000 121,183 2004 118,510 2008 102,946 2001 112,569 2005 133,853 2009 87,775 2002 111,159 2006 121,813 2003 96,447 2007 117,194



## G. Is this application subject to review by state under Executive Order 12372 Process?

a. This application was made available to the State under the Executive Order 12372 Process for review on (date):
b. Program is subject to E.O. 12372, but has not been selected by the State for review.
c. Program is no t covered by E.O. 12372University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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## H. Is this applicant delinquent on any federal debt?
No Yes (explain)University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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## APPENDIX B : COMMUNITY BACKGROUND University of Illinois

- Willard Airport Background

Willard Airport is one of only a handf ul of commercial airports in the country owned and operated by an educational institution. Willard Airport, often referred to by its FAA designation "CMI," was named for former University of Illinois president Arthur Cutts
Willard. Formal dedication of the airport took place on October 26,
1945 with the first scheduled airline service in 1954.

The University of Illinois at Urbana

- Champaign established its nationally recognized Institute of Aviation at Willard Airport in 1946. The University takes full adva ntage of training and research opportunities made possible by the location of the Institute on the grounds of Willard Airport.

Willard Airport covers 1,799 acres and has four runways of varying lengths: 3,817 ft. (a sphalt), 5,299 ft. (concrete), 6,500 f t. (concrete) and 8,100 ft. (concrete).

The terminal is comprised of five gates

. The passenger terminal offers a cafe, internet access throughout the
terminal , an ATM machine and a conference room.

Willard Airport is also home to the private jet servi ce 'FlightStar'. Flightstar’s line operations encompass meeting, marshalling, and parking of transient and locally based aircraft, all fueling operations at the airport, towing and hangaring in Flightstar’s 6 hangars as well as the University of Illinois’ Institute of Aviation’s hangars, baggage handling, deicing and ground handling.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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## Champaign County Community Information

Life in Champaign County

Comprised of two distinct cities, Champaign and Urbana, as well as several smaller cities and outlying areas, Champaign county offers its residents a unique quality of life. Home to one of the nation’s largest universities, inhabitants can make use of all of the perks of living in a college town; academics, athletics, fine dining, nightlife and the arts. And ju st steps away lies the calm, bucolic respite of outlying communities, which are home to Farmer’s Markets, antique shops and outdoor activities.

Champaign County is home to 192,561 people. Since 2000, it has had a population growth of 7.19%. The
median ho me cost in Champaign County is $118,800. Compared to the rest of the country, Champaign County enjoys a lower

- than

- average cost of living at 89.40 (national average: 100). The median age is 29.5 (permanent residents only).

Major events include Roger Eber t’s Annual Film Festival, the Urbana Sweetcorn Festival, the Cham paign
Downtown Festival of the A rts and the Champaign Champagne Festival.

Champaign/Urbana Economic Overview

The unemployment rate in Champaign County, IL, is 8.50%, with job growth of

- 4.27% . Future job growth over the next ten years is predicted to be 22.96%. The income per capita is $23,875, which includes all adults and children. The median household income is $44,401.

Champaign County enjoys the support of local leadership in developing new business prospects, as well as tourism opportunities. The Champaign County Economic Development Corporation is a public

- private partnership dedicated to fostering a cooperative, county

- wide approach to economic development. The Champaign County
Chamb er of Commerce is an association of over 1,100 area businesses (representing over 60,000 employees) that have joined together to advance the economic health of Champaign County and helps to shape the business climate in Champaign County. The Champaign Cou nty Convention and Visitors Bureau provides guidance, contacts and assistance to ensure successful events. Finally, the Illini Entrepreneurship Center, provided by the Academy for Entrepreneurial Leadership at the University of Illinois, partners with res pected business development organizations and educational institutions that work with clients who have the vision and potential to become a high

- growth enterprise.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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### Employment in Champaign County

Major Employers in Champaign County



### Firm Employees Univer sity of Illinois 10,500 Carle Clinic Association 2,919 Carle Foundation Hospital 2,750 Kraft Foods, Inc. 1,325 Provena Covenant Med. Center 1,200 Parkland Community College 1,200 Wal

- Mart 1,050 Champaign County 887 Plastipak Packaging 800 Christie Clinic Association 740 Hobbico 700 Jeld

- Wen 675 Amdocs 620 Devonshire Group 590 Meijer Stores 584 Herff Jones Cap & Gown 550 Busey Bank 544 Source: Champaign County Economic Development Corporation 2009
What’s new in Champaign County

The Research Park at the University of Illinois at Urbana

- Champaign (UIUC) provides an environment where technology

- based businesses can work with the research faculty and students at UIUC to take advantage of opportunities for collaborative research and easy access to University labs, equipment, and services. Located on campus, the Research Park is already home to more than 70 companies and growing, employing over 1,400 people in high

- technology careers. At any given time over 400 UIUC student interns with leading

- ed ge technical skills are working in these companies gaining valuable work experience while making real contributions to internal corporate R&D and product development programs. While some of these companies do not have the number of employees to rank in th e top 10 yet, their contributions to this emerging research park and the local community is exciting nonetheless.

Illumia Corporation is a new safety and risk consulting business that provides Safety Culture measurement
services. The team’s work in this ar ea began in the mid 1990s and grew with the assistance of grants to the University of Illinois from the Federal Aviation Administration and the Air Force Office of Scientific Research, to develop tools to measure the culture of safety and risk and apply th em in distributed environments. Initial clients are commercial aviation operators. Illumia will develop an online delivery system to provide survey services.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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### 33 Two companies new to the research park in 2010 are Aptimmune and Dioxide Materials. The former i s a company known for developing the Porcine Reproductive and Respiratory Syndrome Virus (PRRSV) vaccine for swine based on a proprietary cell line known as ZMAC. This economically important pandemic disease causes reproductive failure in breeding stock an d respiratory tract illness in young pigs. The latter is a new startup developing technology for the conversion of CO2 into fuels and chemicals via artificial photosynthesis from
Professor Rich Masel's research labs.

Already, the UI Research Park is home to seven Fortune 500 companies: Caterpillar, State Farm, Deere & Co., Archer

- Daniels

Midland, Science Applications International Corp., Yahoo and Qualcomm. Other companies in the research park include PrintEco, which makes plug

- ins for MS office, Interne t Explorer, Outlook and Firefox; and EnvirGen, Inc., which is a world leader of research and development in nutraceutical/pharmaceutical products.

Select Company Profiles

Officially integrated into one organization in April 2010, the Carle
Foundation in cludes Carle Foundation Hospital and related health care services, Carle Foundation Physician Services, Carle Physician Group (formerly Carle Clinic) and Health Alliance Medical Plans. For more than 20 years, Carle has advanced medicine by offering patien ts access to treatment options known as clinical trials. These research initiatives offer new insight into how to combat a disease, demonstrate new ways of thinking about treatment and possible c ures. With 5, 669 employees , the travel requirements of this internationally known medical foundation require convenience and efficiency.

Kraft Foods

Kraft, which is based in Northfield, IL has a huge presence in Illinois, with nine plants that employ 8,000 people. Kraft operates 175 plants worldwide. The Champaig n plant makes a variety of the company's most popular food items and is one of the newest facilities in the company. The Champaign factory, which opened in 1963, is one of the largest food

- processing plants in the world. It covers 130 acres and
has an ass essed valuation of nearly $22 million, meaning it has a huge impact on the local economy of Champaign County.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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### 34 Hobbico

Hobbico is the largest retail and wholesale distributor of radio

- control hobby products in the world and one of the most progressive comp anies in the Champaign/Urbana area. Hobbico consists of 4 basic divisions and employs more than 600 people at the central Illinois headquarters. Hobbico is a stable, financially strong company that has grown tremendously in sales as well as profitability

.

JELD

- WEN

JELD

- WEN is a nationwide, comprehensive source for reliable wood, vinyl and aluminum windows and patio doors; wood and molded wood fiber interior doors; wood, steel, fiberglass exterior doors; and garage doors. Headquartered in Klamath Fall , OR, Jeld

Wen has manufacturing, sales and distribution locations throughout the country and the world.

Higher Education

Life in Champaign/Urbana centers around the University of Illinois. It is the state’s classic land grant university, dedicated to it s traditional excellence in education, research, and public engagement, and driven to
innovate in each of these missions.

More than 2,000 Urbana

- Champaign faculty members lead more than 40,000 undergraduate, graduate and professional students in a process of discovery and learning in 16 colleges and schools and more than 80 research centers and labs. The Urbana campus faculty and alumni are internationally renowned. Many faculty members have been elected to membership in the National Academy of Sciences, t he National Academy of Engineering, and the American Academy of Arts and Sciences.

Students and scholars find the University an ideal place to conduct research. The Beckman Institute for Advanced Science and Technology is a model for interdisciplinary rese arch, where eighteen research groups from sixteen University departments work within and across three broadly defined themes: biological intelligence, human

computer intelligent interaction, and molecular and electronic nanostructures. The University is al so home to the National Center for Supercomputing Applications (NCSA).

With a faculty team so engaged in regional, national and international research, the need for enhanced air service is great. As part of the Division 1, Big Ten athletic program, the tr avel requirements of so many teams could beUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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### 35 made more efficient with a wider range of travel options. And with such an enormous student body, expanded air service would serve both student travels, as well as the travels of visiting friends and family.

Parkland Community College

Parkland College is a fully accredited, public community college established to serve the needs of District 505, the third largest community college district in Illinois. Parkland has a current enrollment of nearly 12,000 stud ents and employs approximately 1,200 faculty and staff. The college has become a center for educational opportunity and community enrichment in east central Illinois and has earned a national reputation for its excellent academic standards, innovative pro grams, and quality instruction.

Built on 255 acres of landscaped grounds in Champaign, Illinois, Parkland is centrally located and accessible to all 54 communities in the district. Our beautiful, quiet campus is situated near the intersection of interstate highways 57, 72, and 74 and is just a seven

- to 10

- minute drive from the University of Illinois campus. It takes about 2 1/2 hours to reach Parkland from downtown Chicago and Indianapolis, and 3 hours from St. Louis.

Our facilities include more than 85 c lassrooms, 60 specialized labs, a library collection of over 120,000 volumes, an FM radio station, an educational TV station, an experimental agricultural land laboratory, an art gallery, and excellent physical education and recreation facilities, includin g a fitness center. Our cultural center contains a
320

- seat performing arts theater and a 50

- foot dome planetarium, the second largest in Illinois. Parkland also has a child development center to serve the needs of faculty, staff, students, and families in our community.

Tourism in Champaign CountyUniversity of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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### 36 Champaign County has more diverse attractions to draw visitors than most counties of comparable size can claim. Much of the area’s attractions center around the University of Illinois, which provides amenities s uch as a
world

- class art museum, theater programs and Division I, Big Ten Athletics. However, tourist attractions do not stop there. Beyond the University, Champaign County offers the visitor fine dining, museums and shopping.

Octave Chanute Aerospace Mu seum
The Octave Chanute Aerospace Museum is a premier showcase of Illinois Aviation and the 77 year history
of Chanute Air Force Base. The museum encompasses over 126,000 sq. ft. of display space, boasting the largest aerospace museum in Illinois. Specia l memorial items are dedicated in honor of pioneer aviators Illinois
and Chanute AFB commanders and heroes. A gift show, visitors reception suite, library, Children's Discover Room, snack bar, and helpful volunteers await visitor's arrival.

Krannert Cen ter for the Performing Arts

What Lincoln Center is to New York and Kennedy Center is to Washington D.C., Krannert Center is to the
Midwest

- a magnificent showcase for the performing arts. Krannert Center differs from its East Coast counterparts in that i t is first and foremost a place for education. A professional laboratory for the University dance, theatre, opera, and music departments, the Center also hosts internationally famous artists.

Orpheum Children's Science Museum

The Orpheum Children's Scienc e Museum, located in the 1914 Orpheum Theatre, is one of the finest buildings in
downstate Illinois. Children of all ages are given the opportunity to learn science at their own pace in an informal setting.

Spurlock Museum

The Spurlock Museum celebrates the people of the world with featured galleries of Africa, Ancient Egypt and Mesopotamia, Europe, East Asia, Southeast Asia and Oceania, the Americans, and the Ancient Mediterranean. Special facilities include a focus gallery for temporary exhibits, lear ning center, auditorium, and educational
resource center.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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### 37 Early American Museum

The Early American Museum has an extensive collection interpreting 19th and early 20th century life in East

Central Illinois. Two floors of exhibits present architecture, t rades and occupations, decorative arts, and
childhood and domestic life of the time. The Discovery Room offers hands

- on opportunities for children to interact
and learn about the residents of the Grand Prairie. Educational programs are offered for all ag es throughout the
year.

William M. Staerkel Planetarium

The second

- largest planetarium in Illinois is part of Parkland College's Cultural Center. The planetarium uses a Zeiss Star Projector to project 7,600 visible stars on the 50

- ft dome. S t ate of the art audio

- visual equipment and special effects help visitors learn about the stars and planets and experience the perspective of the larger
universe. In addition to regular features, the planetarium also offers children's shows, rock

- n
- roll light shows, a nd special seasonal presentations.

Wandell Sculpture Garden

The Wandell Sculpture Garden was established in honor of Willett and Celia Wandell in 1998. This unique, free outdoor sculpture garden sits among 22

- acres of re

- created Illinois tall grass prair ie in a 130

- acre community park. While walking the path, one can encounter bikers, joggers, and other sculpture lovers, as the park serves both recreational and educational purposes. Works from local artists who have ties wit h the University of Illinois grace the garden.University of Illinois Willard Airport Serving the Communit ies of Champaign/Urbana, Illinois

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## A PPENDIX C: L ETTER OF SUPPORT