Proposal Under the Small Community 

Air Service Development Program

Docket DOT-OST-2011-0119

Submitted by

Manistee County Blacker Airport

Barry Lind

Airport Director

2323 Airport Road

Manistee, Michigan 49660

DUNS# 948868799

EIN 382169455

MI-002
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Small Community Air Service Development Program 2

Table of Contents

1. Proposal Overview

2. Historical Commercial Airline Service

3. Existing Air Service

4. Community Air Service Needs

5. Air Service Development Efforts

6. Strategic Planning

7. Marketing Campaign Program

8. Partnerships

9. Necessary Funding Required

10.Marketing Campaign Success

11.Continued Marketing Program

12.Air Service Development

13.Legal Sponsor

Appendix A – Grant Summary Information

Appendix B - Marketing Plam

Appendix C - Body Group/Michigan Department of Transportation Study

Appendix D – In-Kind Contributions
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Manistee County Blacker Airport

Small Community Air Service Development

Grant Proposal

1. Proposal Overview

The Manistee and Ludington area of Michigan has historically suffered from the lack of

quality, affordable commercial air service. While air service has been subsidized through

the Essential Air Service program, the resulting service was not well utilized by the local

community. That has changed in 2011 with the introduction of affordable, quality

regional jet air service. This change is resulting in improved utilization of the airport by

the community and also resulting in significantly lower per passenger subsidy levels

through EAS. However to take full advantage of the current level of service, a

comprehensive marketing program is needed to further promote the service now

available. After decades of poor under-utilized air service, a consistent, sustained

marketing program is needed to change peoples negative perceptions about flying from

the local airport. With the result being significantly more people utilizing the service

thereby reducing subsidy requirements and spurring local economic development.

2. Historical Commercial Airline Service

The Manistee County Blacker Airport has a long history of commercial air service.

Commercial airline service spans 50 years; the timetable is as follows:

– 1961: Manistee, Michigan receives its first commercial flight, with service

provided by North Central Airlines.

– 1961-1979: North Central Airlines provides service with the Convair 340,

later the Convair 580. Service was primarily short “milk run” routes

connecting Manistee with Grand Rapids to the south and various cities to the

north. It was during this period that Manistee would see its best level of

enplanements up until the current year (8499 total passengers in 1968).

– 1979-1981: Republic Airlines, formed as the result of the merger of North

Central and Southern, continued to provide commercial service to the

Manistee Blacker Airport during the first years of airline deregulation.

However soon after deregulation, Republic stopped service. This began a

long period of decreasing quality of service with frequent carrier and schedule

changes. Enplanements were severely impacted during this period and would
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never really recover (2628 average total annual passengers during 1980's).

– 1981-1982: Simmons Airlines took over commercial air service with 18 seat

EMB 110 aircraft.

– 1982-1984: American Central Airlines took over commercial air service also

with EMB 110 aircraft.

– 1984-1988: Alliance Airlines took over commercial air service with Cessna

402 aircraft.

– 1988-1996: Alliance Airlines was acquired by Great Lakes Airlines in 1988

beginning the longest period of service by a carrier since North Central. It

was during this period that Great Lakes began operating as United Express.

– 1996-2002: With a notice to terminate service at Manistee the era of

unsubsidized service ends and that of EAS subsidies began. Great Lakes

Airlines acquired the essential air service contract to keep our community

connected to the national air transportation network. In 2001 with the loss of

the United Express code share, Great Lakes reorganizes and moves operations

out west, ending service in the midwest. 

– 2003-2008: Skyway Airlines dba Midwest Connect was awarded the essential

air service contract. With the change in carrier also came a change in hub

with a switch from Chicago O'Hare to Milwaukee. Service was provided by

19 seat Beech 1900 aircraft. Shortly after Skyway began service passenger

enplanements began to rise after two decades of stagnation. In 2003 total

passengers increased 14%; 2004 +35%; 2005 +0%; 2006 +40% and 2007

+8%. It was also during this time period that a State of Michigan grant

program was in place to provide marketing funds to small airports. The

results of those marketing dollars can be seen in the improved passenger

counts.

– 2008: Manistee experienced a two month suspension of service when Skyway

discontinued operations.

– 2008-2011: Great Lakes Airlines returned to Manistee. Service continued to

be provided to the Milwaukee hub. For the first time in the nearly fifty years

of commercial service, service was provided exclusively via non-stop flights

to a hub.

– 2011: Chautauqua Airlines dba Frontier Airlines begins non-stop regional jet

service with 37 seat EMB-135 aircraft to their Milwaukee hub. Passenger

numbers initially increase by 400%.
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3. Existing Air Service

On April 18th, 2011, Chautauqua Airlines dba Frontier Airlines began providing service to

the Manistee County Blacker Airport. Currently Frontier provides 13 flights per week to

Milwaukee and the schedule breakdown is as follows:

Arrivals:

Monday through Friday Flight 1898 – 2:55 PM Flight 1896 – 9:34 PM

Saturday Flight 1898 – 4:10 PM

Sunday Flight 1898 – 2:55 PM Flight 1896 – 9:34 PM

Departures:

Monday through Friday Flight 1895 – 7:30 AM Flight 1899 – 3:15 PM

Saturday Flight 1895 – 7:30 AM

Sunday Flight 1897 – 12:15 PM Flight 1899 – 3:15 PM

All flights are non-stop to Milwaukee, Wisconsin. General Mitchell International Airport

is a hub for Frontier Airlines, which features service to major destinations throughout the

United States. Frontier currently services the Manistee County Blacker Airport with the

EMB-135 37 seat Regional Jet.

4. Community Air Service Needs

In April, 2011 the Manistee County Blacker Airport made a transition from Great Lakes

Airlines to our current Essential Air Service air carrier, Chautauqua Airlines dba Frontier

Airlines. During the last decade, Manistee has seen a gradual growth in enplanements

since the switch of service from Chicago O'Hare to Milwaukee. First Skyway Airlines

dba Midwest Connect increased the ridership levels with their exceptional customer

service practices and the marketing program administrated through the Manistee County

Blacker Airport and the State of Michigan via advertising grant money. In 2007 the State

of Michigan was no longer able to continue their advertising grant program, however in

spite of the fact that Manistee saw a lapse in service during the spring of 2008 and a

switch in carrier to Great Lakes that same year, the growth was eventually able to

continue. Now in 2011 with the advent of quality, reliable regional jet service that

customers expect, the airport is undergoing rapid growth.

However in the current environment with escalating fuel prices, air carriers operating

regional jets are faced with significant challenges operating them profitably. In order to

sustain quality regional jet service, which has significantly improved passenger numbers
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the first few months of Frontier's service, a sustained effort needs to be made to market

and promote the service. Otherwise Manistee may loose regional jet service and return to

19 seat or possibly 9 seat service. And with that reduced level of service the airport

would likely see passenger numbers plummet and subsidies per passenger significantly

increase.

Frontier is demonstrating that significantly more demand exists for air service at

Manistee than been seen over the last 50 years. In order to tap into that demand, quality

service needs to be provided (i.e. non-stop regional jet service at a reasonable price)

otherwise passengers will drive significant distances in order to obtain the quality air

service they desire from other airports.

According to a Boyd Group study commissioned by the Michigan Department of

Transportation-Aeronautics Division, the Manistee County Blacker Airport has been

experiencing 85% to 90% passenger leakage to other airports. The estimated annual base

demand within the core catchment area of Manistee was projected to be 54,700 for 2011.

By improving the awareness of the quality service now available at the Manistee County

Blacker Airport through a comprehensive marketing program we can improve

significantly on the historic 10%-15% catchment. The Essential Air Service program has

provided the Manistee County Blacker Airport with an air carrier to provide access to the

national air transportation system; our community needs to support this service with

passengers. However after years of poor under-utilized service, a consistent

comprehensive marketing plan is needed to change negative perceptions about flying

from the local airport.

If air service were to be discontinued at our airport, the direct and indirect impact on this

region’s already struggling economy would be far reaching. Local businesses would be

forced to use other airports considerably further away for their airline travel options. The

local tourism industry would be equally affected by removing from tourists an important

travel option into this region to enjoy the many year round attractions. Fewer businesses

would choose to locate in the Manistee area in preference to other areas with commercial

air service.

5. Air Service Development Efforts

Over the last five years the Manistee County Blacker Airport has done a number of things

in order to retain air service and expand the use of the service. 2007 saw the ending of a

State of Michigan marketing grant program. During that program from 2004-2007

Manistee saw a 72% increase in passengers (3941 to 6760). While all of the growth can

not be attributed to the marketing efforts since that time period also corresponded to the

change in service from Great Lakes/Chicago O'Hare to Midwest Connect/Milwaukee,

certainly a portion of the growth is likely due to the marketing efforts. 
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In 2008 with the loss of Skyway, development efforts focussed on simply retaining air

service. Even with the EAS program guarantees, Manistee was without any air service

for a period of two months during 2008. With the advent of Great Lakes service

beginning in 2008, it was a period of rebuilding and learning. During the summer of

2009 the airport conducted a passenger survey to better understand the needs of the

community with regards to air service in preparation for the 2010 EAS bidding RFP.

As an Essential Air Service airport, Manistee County Blacker Airport has been working

within the boundaries of the EAS program. The long EAS selection process for Manistee

during 2010 required three rounds of bidding to finally come to a successful conclusion.

The development efforts included working with many potential air carriers and options

were also explored in possibly utilizing the Alternate EAS program as a solution to the air

service needs at Manistee. The conclusion of the EAS selection process resulted in

Frontier Airlines being awarded the bid and bringing much improved service to Manistee.

This year the airport embarked on an advertising program to promote the launch of the

new Frontier service. Since Frontier has started service we have seen 300% increases in

enplanements some of which can be attributed to the marketing efforts.

6. Strategic Planning

The overall goal of this proposal’s funding is to increase airline ridership at the Manistee

County Blacker Airport by effectively promoting public awareness of local airline service

and the new airline. With continued growth at the Manistee airport, we will make this

region a more appealing destination for both tourism and business. Also, with continued

ridership growth at the Manistee County Blacker Airport, we are better positioned to

attract new businesses and reduced Federal EAS subsidies and possibly the elimination of

the need for any subsidy.
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Table 1 - Total Passengers Per Year Since EAS Subsidies Began

As Table 1 shows, the utilization of the air service at Manistee has been steadily

increasing since the advent of EAS subsidized service. However in 2011 with the advent

of a quality affordable service we are seeing significant growth that we anticipate being

able to continue with additional marketing.

Table 2 - Average EAS Subsidy per Passenger

Table 2 shows that in spite of the fact that passenger numbers were increasing from 1998

through 2010, the average subsidy per passenger was also increasing as costs were rising

faster than enplanements. However with the new service that trend is now being changed

with 2011 and 2012 seeing projected significant decreases in per passenger subsidies.

1998

2001

2004

2007

2010

2011 Projected

2012 Projected

0

5000

10000

15000

20000

25000

30000

Passengers

1998

2001

2004

2007

2010

2011 Projected

2012 Projected

0

50

100

150

200

250

300

EAS Subsidy per 

Passenger
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The Manistee County Blacker Airport has not seen passenger numbers like last year's in

nearly 40 years, and this year is easily surpassing that. A properly administered

marketing strategy and quality airline service will allow the Manistee County Blacker

Airport to not only continue the growth seen over the last few years, but to dramatically

accelerate that growth. 

The projected goals for the Manistee County Blacker Airport are as follows:

Total Passengers

Actual Boardings 2010: 6760

Projected 2011: 20,000 +200%

End of 12 Month Campaign (Dec 2012): 30,000 +50%

7. Marketing Campaign Program

With Chautauqua/Frontier initializing service in April, 2011, the Manistee County

Blacker Airport Board recognized the importance of marketing the new service. Due to

the timing of the introduction of Frontier service and the timing of this SCASDP grant

cycle, the board determined it couldn't wait for this grant cycle before beginning to

market the new service. Therefore the airport allocated $21,000 and an additional

$20,000 was obtained from the Little River Casino Resort to implement a marketing

campaign for 8 months (April – November) during 2011 to promote the introduction of

Frontier service. We are already seeing the results of the combination of the new Frontier

service and the marketing of that service. For example in July 2011, Manistee saw 3163

total passengers versus 1074 in July 2010.

However we strongly feel that effective marketing isn't one-time marketing. But instead

to be effective, marketing needs to be comprehensive and on-going. Therefore as we

plan for 2012 marketing efforts we are looking to this SCASDP grant to allow us to

follow through on what has already been started.

The Manistee County Blacker Airport plans to continue and expand a comprehensive

advertising campaign to inform the region of the quality air service available locally. This

campaign will put to use many of the available media outlets to get the message out to the

public. Comparison information will also be used to help inform persons of the cost of

using alternative travel options. (Ex. Parking, drive times, fuel costs and lost

productivity).

The Manistee County Blacker Airport will focus the marketing within the catchment area

of the airport. This marketing will target Manistee County and those that border

Manistee County: Mason, Wexford, Benzie and Lake Counties. 
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The population of these counties according to the 2010 census is as follows:

County Population

Benzie 17,525

Lake 11,539

Manistee 24,733

Mason 28,705

Wexford 32,735 

Total 115,430

The proposed medias for this campaign will be radio, television, newspaper, billboards,

social media, internet and publications. The goal of this media outreach will be to make

the primary catchment populace aware of the advantages of using the Manistee County

Blacker Airport.

The marketing campaign is planned to begin January 2012 and complete December 2012.

This time frame is intended to align with the EAS 2-year contract award cycle. The next

Manistee EAS RFP should go out for bids in late 2012. When this marketing program

has delivered the 30,000 total passengers for 2012, we would anticipate that to result in

decreased subsidy requirements for the next EAS contract.

8. Partnerships

The Manistee County Blacker Airport works to build partnerships with the community at

every level: county government, local units of government, private businesses,

community groups and individuals. During these tough economic times there is an

increased awareness of the need for cooperation in order to achieve economic growth. 

We have seen this already during 2011. With the local Little River Casino Resort

contributing $20,000 already to our efforts and working with us to implement our

program.

As we look forward to the time period and project covered by this grant proposal, we see

local units of government (Manistee County) and groups (Local Revenue Sharing Board)

joining our efforts. We anticipate working with each partner as we have already done

with the Little River Casino Resort in order to effectively promote the Airport and

community.

The local community is strongly in favor of this proposal, as demonstrated by the

significant amounts of cash and non-cash commitments pledged to this effort. In a rural

area such as ours, the business community and citizens at large understand what an
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important component to the local economy the Manistee County Blacker Airport is. In

reviewing our package, we would ask that considerable weight be given to the amount of

community support that has been demonstrated. 

9. Necessary Funding Required

The estimated funding requirement to implement a highly effective public awareness

advertising campaign is $90,000. The amount that is requested is $50,000 through this

grant along with $25,000 cash pledged through local support and $15,000 in in-kind local

support. The local contributions have been acquired through municipalities, local

businesses, and community groups.

10. Marketing Campaign Success

Throughout the advertising campaign the success will be monitored through the

observation of increased passenger enplanements. The Manistee County Blacker Airport's

goal is to increase passenger boardings by 50% for 2012.

Campaign success will be measured in accordance with the following:

January 1 Start Campaign

Immediately Develop Marketing Material

Immediately Survey deficiencies, review avenues for

advertising and strategies. (Destinations and

seasons)

1

st month Begin marketing campaign

3

rd month Reassess marketing strategies and make

necessary changes.

6

th month Measure effectiveness and make

changes if necessary

9

th month Measure effectiveness

12th month Measure effectiveness

Measuring the effectiveness of this program will be done at intervals stated above. By the
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end of the third month of this program, Frontier Airlines will have been serving Manistee

for about one year. This will enable year over year comparisons that will allow tracking

of the effectiveness of the program. By the end of the first six months of this campaign,

the overall success of this grant should be verifiable. If the boarding increases have not

met expectations and advertising modifications have been ineffective by the ninth month

the remaining grant money will be returned and the program will be discontinued.

Throughout this whole campaign, surveys will be collected from the airline passengers.

These surveys will request information regarding: 

– Customer satisfaction of current service

– Destinations

– Pricing 

– Marketing comments 

– Overall travel experience using the Manistee County Blacker Airport.

These surveys will be conducted in relation to our campaign success schedule. All

surveys will be uniform with previous surveys for consistent results and less chances of

unreliable interpretations.

11. Continued Marketing Program

We believe that marketing is an essential piece in acquiring new and maintaining existing

customers. When this project is as successful as we believe it will be, the Manistee

County Blacker Airport will continue to acquire advertising monies through state and

local sources. The long term goal is to reduce the need for EAS subsidies and to

potentially eliminate that need completely. While those efforts may not be as

comprehensive as that proposed here due to less available funding, the importance of a

continual marketing effort is crucial to being effective.

12. Air Service Development

The Manistee County Blacker Airport Board is committed to aggressively executing our

Proposal, and developing a long-range plan to ensure the economic viability of our

Airport. We know that Manistee County is in one of the few areas in Michigan that are

continuing to grow in an otherwise economically depressed State. The Manistee County

Blacker Airport Board, as well as the community, is involved and committed to not only

this Proposal, but also long-term sustainability of one of the area's most valuable

economic development tools, the Manistee County Blacker Airport. The Manistee

County Blacker Airport Board plans to remain active in continuing marketing efforts of

any air carrier into their Airport.
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13. Legal Sponsor

Manistee County Blacker Airport

2323 Airport Road

Manistee, Michigan 49660

DUNS Number 948868799
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Appendix A
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Appendix B

Marketing Plan

Cable and Local Network Television

The primary role of television in this plan is to build brand awareness. Building on the

success and awareness created by Manistee County Blacker Airport's 2011 television

campaign, TV ads featuring local opinion leaders from the Manistee community will

continue to be the method used to deliver the message. Key points will continue to be

convenience, low fares, free parking and the benefits of flying Frontier Airlines.

Cable ads will be placed in two Charter Media markets: Manistee, Ludington and

Cadillac, reaching 16,900 households and Grand Traverse, Leelanau, Benzie and

Frankfort, reaching 18,900. Spots will air on ESPN, TRAVEL, FOOD, TLC, TBS, DISC,

FOX NEWS, HISTORY, ABC FAMILY, and TNT, reaching a targeted audience of adults,

male and female. 

Local Network TV spots will run on 9&10 (CBS) and 7&4(NBC), which cover 30

counties throughout Northern Michigan. Spots will run, primarily, during local newscasts.
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9&10 News Coverage Map – 25 Counties, Primary Market Strong adult rankings, CBS

affiliate
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7 & 4 News Coverage Map – 35 Counties, strong adult rankings, NBC affiliate
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Billboards

Outdoor posters promoting the "www.flymanistee.com" brand will rotate monthly

between in the local markets. All billboard locations will be on major highway routes.

Radio

(:10) second "live reads" will be utilized to promote last-minute fare sales. These ads will

run on WMTE-FM, WKLA-FM and WTCM AM/FM. The purpose of the radio ads is to

supplement the overall image and brand building being done via television and billboards

with content that is more immediate in nature (fare sales).

WMTE FM and WKLA FM cover Manistee and Mason counties, targeting adults 25-54.

Both stations feature local news and capture a large local audience. No current map

available.

WTCM FM covers Northern Michigan, as one of the highest rated radio stations in the

area. With strong adult ratings and a large local following, this station will deliver a wide

audience. 
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Newspaper Inserts

Insertions in local newspapers 2 times during the year will be used for image, and last

minute fair sales. Local newspapers to utilize: Ludington Daily News, Manistee News

Advocate, Traverse City Record Eagle, Cadillac News.

Ludington Daily News covers Mason & Manistee Counties: 

Circulation 9,233, Monday - Saturday
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Ludington, Scottville, Custer, Fountain, Walhalla, Free Soil, Branch, 

Baldwin, Hart, Manistee, Pentwater, Mears

Manistee News Advocate covers Manistee County:

Circulation 5,000, Monday - Saturday

Arcadia, Bear Lake, Brethren, Copemish, East Lake, Filer City, Fountain, 

Free Soil, Irons, Kaleva, Manistee, Onekama, Scottville, Wellston

Cadillac News covers Wexford and Lake County:

Circulation 7,700, Monday - Saturday

Mesick, Reed City, Evart, LeRoy, Tustin, Luther, Marion, Falmouth, McBain, 

Lake City, Merritt, Manton, Cadillac

Traverse City Record Eagle covers 13 counties, including Grand Traverse, 

Leelanau, Benzie and Wexford Counties:

Circulation 24,000, Daily

Web Site/E-marketing

Regular maintenance and updating of the www.flymanistee.com web site along with

select pay-per-click or on-line advertising. Also a continued emphasis on the

FlyManistee facebook page.

Event Sponsorships

Chamber Business After Hours, Travel Agent Open House, Forest Festival Sponsorship,

etc.

Print Advertising

Display ads in the Manistee County CVB Visitor's Guide, Mountain Life Magazine and

Shoreline Visitor's Guide.
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2012 Proposed Budget

Cable Television Purchased $ 15,200

Cable Television In-kind 8,000

Local Network TV Purchased 16,000

Local Network TV In-kind 7,000

Billboard 8,000

Radio 8,000

Newspaper Inserts 8,000

Website/E-marketing 4,000

Print/Magazine/Travel Guides 4,000

Event Sponsorships 2,000

Media Production 2,800

Graphic Design/Pre-press 1,250

Administration 4,000

Contingency 1,750

 $ 90,000
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Appendix C
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Appendix D