APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST -2014-0133

SUMMARY INFORMATION 1

All applicants must submit this Summary Information schedule, as the application coversheet , a completed standard form SF424 and the full application proposal on www.grants.gov

. For your preparation convenience, this Summary Information schedule is located at http://www.dot.gov/policy/aviation- policy/small -community- rural

- air

- service/SCA SDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL

NUMBERING SYSTEM (DUNS) NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER (EIN) OR TAX ID

. Legal Sponsor Name:
Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING : 1.____________________________________________________
2.____________________________________________________
3.____________________________________________________
4.____________________________________________________

C. P ROVIDE THE FULL AIRP ORT NAME AND 3-L ETTER IATA A IRPORT C ODE FOR THE

APPLICANT ( S ) AIRPORT ( S ) (O NLY PROVIDE CODES FOR THE AIRPORT ( S ) THAT ARE ACTUALLY

SEEKING SERVICE ).

1. 2

. 3

. 4

.

1 Note that the Summary Information does not count against the 20

- page limit of the SCASDP application.D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY

THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P ART 139? (I F “N O ”, P LEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER P ART 139 IS PENDING .)

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________ D. L IST THE 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATING COMMUNITY

. 1. 2

. 3

. 4

.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium
Community currently receives subsidized Essential Air Service
Community (or Consortium member) previously received a Small Community Air Service Development Program Grant

If previous recipient: Provide year of grant(s) :_______________________________; and, the text of the grant agreement section(s) setting forth the scope of the grant project :

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.G. P ROJECT P ROPOSAL :
1. G RANT G OALS : ( CHECK ALL THAT APPLY )

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration
Regional Service Surface Transportation Professional Services 2

Other (explain below)

2. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising): promotion of the air service to the public

Start

- up Cost Offset : offsetting expenses to assist an air service provider in setting up a
new station and starting new service (for example, ticket counter reconfiguration)

R evenue Guarantee : an agreement with an air service provider setting forth a minimum
guaranteed profit margin, a portion of which is eligible for reimbursement by the
community

Recruitment of Air Carrier: air service development activities to recruit new air service,
including expenses for airport marketers to meet with air service providers to make the

case for new air service

Fee Waivers : waiver of airport fees, such as landing fees, to encourage new ai r service;
counted as in-kind contributions only
Ground Handling Fee : reimbursement of expenses for passenger, cabin, and ramp (below
wing) services provided by third party ground handlers

Travel Bank: travel pledges, or deposited monetary funds, from pa rticipating parties for
the purchas e of air travel on an air carrier , with defined procedures for the subsequent use
of the pledges or the deposited funds; counted as in-kind contributions only

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc.Other (explain below)

______________________________________________________________________________

______________________________________________________________________________

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT :
Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA

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

1 Federal amount requested

2 State cash financial contribution
Local cash financial contribution

3a Airport cash funds

3b Non

- airport cash funds

3 Total local cash funds ( 3a + 3b )

4 TOTAL CASH FUNDING ( 1+2+3 )

In

- K ind contribution

5 a Airport In

- Kind contribution **

5b Other In

- Kind contribution **

5 TOTAL IN

- KIND CONTRIBUTION
( 5a + 5b )

6 TOTAL PROJECT COST ( 4+ 5 )

J. IN- KIND CONTRIBUTIONS**
For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please describe the source(s) of fund(s) and the value ($) of each.K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN A FFECTED S T ATE U NDER E XECUTIVE

O RDER 12372 P ROCESS ?

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 S tate for review.

c. Program is not covered by E.O. 12372.

L. I S T HE L EAD A PPLICANT OR A NY C O -A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ?
(I F “Y ES ”, P ROVIDE E XPLANATION )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________ APPLICATION CHECKLIST

I NCLUDED ? I TEM

For Immediate Action
Determine Eligibility

New Grants.gov users must r egister with www.grants.gov

. Existing Grants.gov users must verify ex isting www.grants.gov account has not expired and the Authorized Organization R epresenta tive (AOR) is current

. For Submission by 5:00 PM EDT on July 31, 2014
Communities with active SCASDP grants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for selection in FY2014
Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

S ummary Information schedule complete and used as cover sheet (see Appendix B )

A pplication of up to 20 one - sided pages (excluding any letters from the community or an air carrier showing support for the application ) , to include:

• A description of the community’ s air service needs or deficiencies

.

• A strategic plan for meeting those needs under the Small Community Program

.

• A detailed description of the funding necessary for implementation of the community's project.

• An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

• Designation of a legal sponsor responsible for adminis tering the program

.

• A motion for confidential treatment (if applicable)

– see Appendix D below.

# Small Community Air Service Development Grant Town of Islip, New York

July 31, 20141 

# Contents

 Description of Air Service Needs/Deficiencies

 Strategic Plan

 Description of Funding Needed to Implement the Project

 Designation of Legal Sponsor2 

# Description of Air Service Needs/Deficiencies3 

# Passengers in MacArthur’s catchment area are using alternative airports to travel to both leisure and business destinations

Top 10 MacArthur Market Area Passengers via Kennedy and LaGuardia YE 1Q 2011


## Via JFK **Via LGA**

Leaked Percent Leaked Percent Rank City Psgrs of Total Rank City Psgrs of Total

1 Orlando 333,789 13.5% 1 Atlanta 179,519 8.9% 2 Los Angeles 242,057 9.8% 2 Orlando 122,280 6.1% 3 Las Vegas 198,871 8.0% 3 Fort Lauderdale 110,222 5.5% 4 Phoenix 145,255 5.9% 4 Chicago 108,310 5.4% 5 San Francisco 118,539 4.8% 5 Denver 99,426 4.9% 6 Fort Lauderdale 118,138 4.8% 6 Washington 91,344 4.5%
7 Tampa 107,618 4.3% 7 Charlotte 89,519 4.4% 8 West Palm Beach 94,054 3.8% 8 West Palm Beach 79,527 3.9% 9 Seattle/Tacoma 92,864 3.8% 9 Tampa 64,565 3.2% 10 Buffalo 82,490 3.3% 10 Dallas/Fort Worth 64,536 3.2%

Total Via JFK 2,475,136 100.0% Total Via LGA 2,016,290 100.0%

Source: Travelport, MIDT Data, YE 1Q 2011.4 

# After years of steady fares since 2000, average fares have increased 6.7% annually since 2007

MacArthur’s Domestic O&D Passenger and Average Fare CY 2000

– YE 3Q 2012

Source: USDOT, O&D Survey O&D Passengers (thousands) Avg. Fare

0 500 1,000 1,500 2,000 2,500

$80 $90 $100 $110 $120 $130 $140 $150

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YE 3Q 12 

### Average **Fare**

Avg. Annual Growth (Fares)

2000

– YE 3Q 2012 2.7%

2005

– YE 3Q 2012 5.2%5 

# Summary of Air Service Issues

 ISP lost 46.6% of its passenger traffic from 2007 through 2012, the largest loss among small hub airports in the US

 ISP has seen air fares increasing at a 7% annual rate as the air service at the airport has decreased.

 ISP is leaking almost 75% of its catchment area to LGA and JFK at a time where LGA and JFK are capacity constrained with no immediate infrastructure or airspace improvements in sight.



# ISP is seeking to continue its efforts to develop air service that is complimentary to air service at LGA and JFK and that provides benefits to the airlines, the passengers, the region’s airport operators and the region’s economy.6 

# Strategic Plan7 

# Strategic Plan

 The funding from this grant would be used to develop additional service at ISP in a way that begins the next phase of air service development at ISP. The Regional Planning Association report commissioned by the Port Authority (PANYNJ) identified ISP as the primary regional airport that can provide immediate benefits to the NY region. Further air service development at ISP will provide the following benefits to the region:

 More efficient use of airspace

- The RPA report directly ties the ability of the NY region to meet the needs of the economic growth to its airport capacity. Increasing capacity at LGA and JFK is critical to meeting this demand, and runway capacity and airspace capacity cannot be added quickly. Passengers from the Long Island catchment area that are now driving to LGA or JFK can be matched with air service at ISP within the same airline hub system. This matches the catchment area demand with the flight capacity on Long Island plus opens up capacity at LGA and JFK for the growth in demand there as well. ISP is a key component for near

term capacity increases at JFK and LGA, and this grant will enable this phase of the ISP air service development to commence

.8 

# Strategic Plan

 More efficient use of existing airport infrastructure

- Similarly to the airspace, the addition of infrastructure capacity is going to be a long and expensive process. Based on ISP leakage studies, redirecting the Long Island catchment area traffic to ISP through increased and improved air service could open up as much as 15% more capacity at LGA alone for growth in air service there, which is needed to meet the demands of the economic growth of the NY region.

 More efficient airline operations and marketing

- The airlines have completed major mergers and operational changes over the past five years, reducing capacity and costs as part of their return to profitability. The Airport has presented to the airlines that the next step in this operational efficiency will be to consider ISP as part of a co

- terminal operation with the NY airports. Long Island is in the same media market as LGA and JFK, so marketing efforts for air service are shared. Airport costs per passenger for the overall NY airport market will be averaged down when airlines add the lower airport costs at ISP ($3.50/enplaned passenger) to the higher costs at JFK ($25/enplaned passenger) and LGA ($25/enplaned passenger considering the new Central Terminal Building).9 

# Strategic Plan

 Positive environmental impacts from passengers making shorter trips to the airport

- By better matching air service at ISP with its catchment area and providing benefits to the airlines and airport operators to facilitate this new service, passengers from the ISP catchment area that are now driving to JFK and LGA will have an opportunity to make shorter trips to ISP. This will reduce the environmental footprints of these passengers with the positive results accruing to the region.10 

# Description of Funding11 DESCRIPTION OF PROJECT FUNDING12 

# Designation of Legal Sponsor13 

# Designation of Legal Sponsor

 Town of Islip, New York

 Department of Aviation

 Mr. Robert Schaefer, Airport Commissioner

 rschaefer@townofislip

- ny.gov