August 27, 2010 

An Integrated Program of New Service Development via: 

Start-Up Cost Offsets, Advertising/Marketing, and Revenue Guarantees 

 In Support of New Scheduled Air Service to/from Chicago O’Hare 

Sponsor: St. Cloud Regional Airport 

 St. Cloud Minnesota 

 William P. Towle, Airport Director 

 Congressional Code: MN-006 

 Dun & Bradstreet Number: 032664372 

ST. CLOUD REGIONAL AIRPORT, MINNESOTA

Proposal Under the Small Community Air Service Development Program 

 

Docket: DOT-OST-2010-0124

Before the Office of the Secretary of Transportation 

US Department of Transportation
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 2

TABLE OF CONTENTS

Section Page 

Introductory Letter 3 

Summary Information 4 

Introduction 7 

Primary Objectives of Proposal 8 

Executive Summary 9 

Detailed Explanation of Proposal 14 

Expected Results 17 

Letters of Support 22 

The Loss of Air Service 30 

Air Service Deficiencies 34 

Extenuating Factors Affecting Air Service 38 

Availability of Alternate Airports 41 

Use of Local/Federal Funds 42 

Public/Private Partnerships 43 

Implementation Timeline 45 

Air Service Advisory Groups 46 

Local Air Service Development Efforts 47 

In-kind Services from the Community 48 

Performance Measures 49 

Legal Sponsor 50 

Financial Controls 51 

Return on Investment 52 

DOT Exit Strategy 53 

Alternate Plan 54 

Airport Information 55 

Community Profile 56 

Conclusions 65 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 3

INTRODUCTORY LETTER 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 4

SUMMARY INFORMATION 

Small Community Air Service Development Program 

Docket DOT-OST-2010-0124 

A. Applicant Information 

 Not a Consortium Community now receives EAS subsidy 

 Interstate Consortium Intrastate Consortium 

 Community previously received a Small Community Grant 

 If previous recipient, date of Grant: ________________________________ 

 expiration date of Grant: _______________________ 

B. Public/Private Partnership

Public: 

1. St. Cloud Regional Airport 

2. City of St. Cloud 

3. Stearns County 

4. Benton County 

5. Various Area Cities 

Private: 

 

1. St. Cloud Area Economic Development Partnership 

2. St. Cloud Area Chamber of Commerce 

3. St. Cloud Area Convention and Visitors Bureau 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 5

C. Project Proposal 

 Marketing Upgrade Aircraft New Route 

 Personnel Increased Frequency Low Fare Service 

 Travel Bank Service Restoration Subsidy 

 Surface Transportation Regional Service Other (Specify) 

 Revenue Guarantee Launch New Carrier 

 Start Up Cost Offset First Competitive Service 

 Study Secure Additional Carrier 

D. Existing Landing Aids at Airport

 Full ILS Outer/Middle Marker Published Instrument Approach 

 Localizer Other: RVR Indicator Lighting System

E. Project Cost 

1. Federal amount requested: $ 500,000 

2. State cash financial contribution: $ 0

3. Local cash financial contribution: $ 50,000

 3a. Airport cash funds: $ 0

 3b. Non-Airport cash funds: $ 50,000 

 3c. Total local cash funds: $ 50,000

4. TOTAL CASH FUNDING: $ 550,000

5. Local funds contributed from already existing

Programs of projects included in line 3c: $ 0

6. Local funds contributed from new commitments 

Or new resources included in line 3c: $ 50,000

7. Airport In-Kind contribution: $ Various

Description: Fee waivers: landing and terminal fees

8. Other In-Kind contribution: $ Various

Description: Advertising and marketing match money; pre-purchased tickets

9. TOTAL IN-KIND CONTRIBUTION: $ Undetermined

10. TOTAL PROJECT COST: $ 550,000
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 6

F. Enplanements at Airport

 2000: 21,180 

2001: 20,130

 2002: 19,730

 2003: 18,410

 2004: 19,130

 2005: 22,160

 2006: 22,320

 2007: 22,620

 2008: 17,510 

2009: 11,680 

G. Is Application Subject to Review by State Under Executive Order 12372 Process?

 This application was made available to the State on ______. 

 Program is subject to review, but has not been selected by the State. 

 Program is not covered. 

H. Is Applicant Delinquent on any Federal Debt? 

 No 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 7

INTRODUCTION 

The St. Cloud Regional Airport is in a much different position in August of 2010, than it was in the 

last time it applied for a Small Community Air Service Development Grant – just a year ago. 

Shortly after the Airport submitted its Grant proposal last year, Delta Air Lines announced it would 

end all service at the St. Cloud Regional Airport as of December 31, 2009. The Airport quickly 

went to work, meeting with several airlines in hopes of retaining an alternate service. But each 

airline told the Airport the same thing: to consider St. Cloud, they would have to have a revenue 

guarantee in place. 

In this application for assistance, the St. Cloud Regional Airport seeks $500,000 from the 

Department of Transportation to help it replace service and access to the national air 

transportation system. It is unlikely the Airport will be 

able to come up with all of the funding required for a 

revenue guarantee locally. But the Airport is working 

hard, as this Grant is written, to develop a local 

revenue guarantee for new service. 

The Airport has identified United Airlines/United Express 

as the best possible option for service, with ideal flights 

routing through the Chicago O’Hare hub. United 

coded service over O’Hare would connect to 131 

one-stop destinations – the widest possible array of service of any airline/hub combination. The 

Airport has had several discussion with United’s regional airline partners, and will meet with 

United as soon as it has word on this Grant application. 

Even the most conservative estimates of passenger “leakage” from the St. Cloud market to 

other airports in the region put the total number of passengers generated locally at more than 

590,000 – of which, just 3.5% used the local airport when it offered scheduled air service. In 2009, 

Delta offered St. Cloud residents just 0.24 departing airline seats per capita – the lowest offering 

in any upper Midwest market. 

The Department of Transportation has the opportunity to partner with St. Cloud in this proposal – 

to return commercial air service to the community, and re-link the community with the national 

air transportation system, in much the same original spirit and intent of the Small Community Air 

Service Development Program.

“The St. Cloud Regional Airport 

seeks $500,000 from the 

Department of Transportation 

to help it replace service and 

access to the national air 

transportation system.” 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 8

PRIMARY OBJECTIVES OF PROPOSAL 

Objectives for Program: 

 Return commercial air service to the St. Cloud market 

 Recruit service to a hub that can connect to the largest centers of demand 

 Use new service to decrease passenger leakage to Minneapolis/St. Paul 

Means to Achieve Objectives: 

 Develop community support/revenue guarantee for new service 

 Develop local pre-purchased ticket program 

 Find local partners willing to share in the financial burden of supporting new 

service 

Course of Action to Support Means: 

 Pair federal Small Community Air Service Development Grant with local 

investment to support commercial air service 

 Ensure flight schedules match community demand 

 Ensure service has long-term funding in place, for at least 12 months 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 9

EXECUTIVE SUMMARY 

The St. Cloud Regional Airport is located in Stearns County which is northwest of the 

Minneapolis/St. Paul metro area. The nearest alternate airport with jet service is located in 

Minneapolis, a 11⁄2-hour drive to the southeast. 

The 30 minute drive St. Cloud catchment area (seen in the dotted line) is home to 194,481 

people as of the latest US Census estimates, while the one hour drive catchment area (seen 

inside the solid line) is 

home to 1.1 million people 

(see Figure 1). The areas 

shaded in red represent 

areas where residents must 

pass the St. Cloud 

Regional Airport on their 

way to access air service 

at other airports in the 

region – namely 

Minneapolis/St. Paul. The 

population of the total 

area in red is 200,097, while 

the population of the area 

in dark red is 102,779, or 

53% of the St. Cloud 

Regional Airport’s 

immediate catchment 

area. Thus, 53% of 

population of the St. Cloud Regional Airport’s catchment area is located in such a way as to 

ensure service from the St. Cloud Airport, itself, would be more convenient than service from 

MSP. The total 60-minute population surrounding St. Cloud is 1.1 million as of the latest US Census 

estimates. 

FIGURE 1: St. Cloud Regional Airport’s immediate

(30 minute) and extended (60 minute) catchment areas
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 10

The St. Cloud Regional Airport lost its only access to the national air transportation system as of 

December 31, 2009, when Delta Air Lines’ regional partner Mesaba Airlines ceased service to 

Minneapolis/St. Paul (see Figure 

2). At the time, Mesaba was 

operating three daily roundtrip 

flights with Saab SF340 

turboprop aircraft, seating 34 

passengers. 

The St. Cloud market was a 

victim of the merger between 

Northwest and Delta, as the 

Delta accounting of revenue 

in northern tier regional 

markets has made many of 

those markets look 

unprofitable. Despite strong 

yields, St. Cloud lost service 

along with other northern tier markets such as Muskegon, Eau Claire, Houghton, and Paducah. 

All of those markets had service in 1978, and qualified for Essential Air Service subsidies. All four 

now have regional jet service on the United code to Chicago O’Hare. St. Cloud did not have 

service in 1978, as its first service began in the 1980s – so it did not qualify for Essential Air Service 

subsidy. In 2010, St. Cloud is the largest unserved market in Minnesota, and the largest in the 

combined area of Minnesota, Wisconsin, and Michigan. 

Delta left the St. Cloud market despite a recent trend of increasing passengers being produced 

by the Airport. Between the year ended first quarter 2006 and the year ended first quarter 2008, 

St. Cloud Regional Airport passengers were steady bewteen 67 and 70 passengers per day each 

way, despite increasing fares that topped $404 roundtrip in each of those three years (see Figure 

3 on next page). 

Non-Stop Departures Seats Departures Seats Capacity

Carrier Destination Per Day Per Day Per Day Per Day Change

Delta MSP 3.7 127 0 0 -100.0%

Delta Total 3.7 127 0 0 -100.0%

St. Cloud Total 3.7 127 0 0 -100.0%

Jun-09 Jun-10

FIGURE 2: St. Cloud Regional Airport’s last air service,

Cancelled as of December 31, 2009
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 11

Passengers only started to decline signficantly as average one way fares began to top $210 (see 

Figure 3). In the the year ended first quarter 2009, the average fare in St. Cloud increased to 

$476 roundtrip – an unsustainable level that caused a passenger decline from 67.6 passengers 

per day each way to 49.7 passengers per day each way. It should also be noted that the 

passenger numbers of YE1Q10 only include three quarters of service – as there was no service in 

St. Cloud in the first quarter of 2010. 

While St. Cloud’s origin and destination passengers were increasing over the last four years, both 

Northwest Airlines, and Delta Air Lines after the merger, were cutting flights and seats in the St. 

Cloud market. By February of 2009, St. Cloud saw just 3.9 departures per day, on average, and 

a total of 154 available departing seats per day (see Figure 4). Through 2009, the number of 

departing flights and the number of available seats continued to decline in St. Cloud, until the 

eventual service cancellation, which was announced in October of 2009. When Delta 

announced it was leaving the St. Cloud market, passengers begin to decline precipitously as 

departures were cut – and many found themselves forced to book their trip through 

Minneapolis/St. Paul. 

FIGURE 3: O&D Passengers and Average One Way Fares at St. Cloud Regional Airport

YE1Q01 – YE1Q10; Source: US DOT Table DB1A

42,560 40,830 39,590 38,720 39,920

48,160 48,470 46,900

33,920

19,300

2,610 

2,030 

2,060 1,640 

2,290 

3,000 2,580 

2,440 

2,330 

1,070 

61.9

58.7

57.1

55.3

57.8

70.1 69.9

67.6

49.7

27.9

0

10,000

20,000

30,000

40,000

50,000

YE1Q01 YE1Q02 YE1Q03 YE1Q04 YE1Q05 YE1Q06 YE1Q07 YE1Q08 YE1Q09 YE1Q10

PDEW International Domestic

$214

$203

$196 $199

$204 $202

$214

$209

$238

$205
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 12

Between February of 2009 and October of 2009, Delta cut St. Cloud’s average daily departures 

by 41%, or an average of 1.6 departures per day (see Figure 4). At the same time, the number 

of available seats per day each way (SDEW) declined from 154 to 77 – a loss of 77 available 

departing seats each day, or 50%. 

While Delta cuts flights and seats, making the St. Cloud schedule much more difficult to 

purchase, and ensuring St. Cloud could not compete with Minneapolis/St. Paul, passengers 

started to change their travel habits. Between February 2009 and December of 2009, average 

daily onboard passenger at St. Cloud declined from 57 to just 22 – or 61% (see Figure 4). This 

decline in passengers was due to several factors, including higher fares, fewer flights, fewer 

seats, and press coverage that made it appear flights were no longer available at the St. Cloud 

Regional Airport. 

This slow decline in service quality, schedule quality, and sufficient available seats has made the 

St. Cloud market appear smaller than it actually is, and, to some airlines, it makes the St. Cloud 

market appear as though it is too weak to support commercial air service. This is not the case. 

154

137

145

133 132

137

119

106

77

106

89

57 53

46

39 41 45

36 38

28

36

22

0

20

40

60

80

100

120

140

160

180

200

2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12 2010/01 2010/02 2010/03 2010/04

Available SDEW Onboard PDEW Flights DEW

3.9

3.7

3.9

3.5

3.8 3.8

3.5

2.9

2.3

2.9

2.6

FIGURE 4: Available Seats Per Day Each Way, Flights Per Day Each Way, and Onboard Passengers

February 2009 – April 2010; Source: US DOT T100 Report
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 13

The right service pattern, with service to a hub farther from St. Cloud – a hub that actually 

provides value to the origin and destination traveler – can be successful in the St. Cloud market. 

Population estimates show the St. Cloud market 

produced a total of 812,000 origin and destination 

passengers in the year ended first quarter 2010, or a 

little more than 1,100 passengers per day each way – 

most of whom traveled from the Minneapolis/St. Paul 

Airport. 

The Airport has identified United Airlines/United 

Express as the best possible option for service, with 

ideal flights routing through the Chicago O’Hare hub. United coded service over O’Hare would 

connect to 131 one-stop destinations – the widest possible array of service of any airline/hub 

combination. The Airport has had several discussions with United’s regional airline partners, and 

will meet with United as soon as it has word on this Grant application. 

The Airport will require risk mitigation to overcome the impression that Northwest and Delta have 

built – of a weak and declining regional service market. The opposite is true, with strong 

economic growth in St. Cloud, and one of the nation’s lowest unemployment rates. The Grant 

will help put the community back on the national commercial air transportation map – leading 

to increased economic activity. 

“Population estimates show the 

St. Cloud market produced a 

total of 812,000... passengers in 

the year ended first quarter 2010, 

or a little more than 1,100 

passengers per day each way.” 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 14

DETAILED EXPLANATION OF PROPOSAL 

At this time last year, the St. Cloud market was struggling with the highest airfares of all medium 

and large markets in the Midwest region, a loss of available seats, and few prospects for airlines 

that want to enter the market at risk. Then, in the fall of 2009, Delta announced it would end all 

service in the market. As of January 1, 

St. Cloud was left without access to the 

national air transportation system. 

The Airport has since heard from all 

major political and business leaders in 

its region that it must work diligently to 

restore commercial air service. The 

major piece of this effort will be the 

support of a Small Community Air 

Service Development Grant for a 

revenue guarantee to be use to ensure 

the new carrier does not lose money in 

the market during the start-up phase of 

service.

St. Cloud has strategically chosen United Express service to Chicago O’Hare as the best possible 

hub/airline combination for new air service (see Figure 5). Chicago service on the United code 

is best positioned to link St. Cloud to as many one-stop destination as possible, without the huge 

expense of a long jet flight to a faraway hub. 

The route between St. Cloud and Chicago O’Hare would cover 394 miles, and could be flown 

by a SkyWest Canadair CRJ200 aircraft (CRJ), seating 50 passengers in an all-economy 

configuration, with an average flying time of 51 minutes at an average groundspeed of 400 

knots (see Figure 5). The Airport proposes two daily flights in each direction between St. Cloud 

and O’Hare. The Airport proposes the flights be timed to meet the morning outbound bank on 

United Airlines at O’Hare, serving omni-directional destinations from the hub. The Airport also 

proposes a late evening return, connecting those same cities back into St. Cloud during United’s 

last bank.

FIGURE 5: Proposed Route,

St. Cloud to Chicago O’Hare
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 15

The proposed schedule assumes an average ground speed of 400 knots on the route, and does 

not take into account winds or weather conditions. That ground speed will result in an average 

flight time of 51 minutes on the St. Cloud – O’Hare route (see Figure 6). An additional 15 minutes 

has been added on each end for taxi time, resulting in a total block time of 1:21. 

SkyWest service, under the United code, from St. Cloud to Chicago O’Hare would open 131 onestop destinations (see Figure 7). Flights timed on the proposed schedule would connect to 

destinations worldwide, 

from Tokyo and Hong 

Kong to London and 

Frankfurt. O’Hare is the 

best possible hub to 

provide air service 

access for St. Cloud 

travelers, accessing onestop service to the 

largest possible number 

of markets. Moreover, 

when service was 

provided at the St. 

Cloud Regional Airport, 

Chicago frequently 

ranked as one of St. 

Cloud’s largest origin 

and destination 

Origin Destination Departs Arrives Block Time Equipment 

STC ORD 6:24am 7:45am 1:21 CRJ 

ORD STC 12:30pm 1:51pm 1:21 CRJ 

STC ORD 2:19pm 3:40pm 1:21 CRJ 

ORD STC 9:30pm 10:51pm 1:21 CRJ 

FIGURE 6: Proposed Schedule,

St. Cloud to Chicago O’Hare

FIGURE 7: Connections Beyond the O’Hare Hub

On United Airlines Coded Service, August 2010
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 16

passenger market, averaging as many as 3,000 annual passengers, or four passengers per day 

each way.

Under this proposal, revenues will be tracked on a monthly basis, including all ticket sales, cargo 

sales, and ancillary revenue. These revenues will be benchmarked against the established costs, 

agreed to by both the St. Cloud Regional Airport and the airline operating the service, before 

service begins. In any month where revenues exceed 

stated costs, the extra revenue will be credited to the 

community’s account. Should revenue not cover stated 

costs, a payment will be made from the Small Community 

Air Service Development Grant account. 

This project is essential for the region due to the fact that 

St. Cloud market has now lost all connectivity to the 

national air transportation system. United Express service 

to and from O’Hare remains the single most important objective for not only the Airport, but the 

community as a whole. 

If, for some unforeseen reason, service is not commenced in a timely manner by a United Express 

carrier on the St. Cloud – Chicago O’Hare route, the Airport proposes to use federal grant 

money awarded under the Small Community Air Service Development Program to fund another 

air service development project, using the Grant funding as a revenue guarantee. Among the 

alternate routes covered under this proposal would be American Eagle, with service to Chicago 

O’Hare and/or Dallas/Ft. Worth; Continental, with service to Cleveland and/or Houston; US 

Airways with service to Charlotte or Phoenix; AirTran, with service to Milwaukee; and/or Frontier, 

with service to Denver and/or Milwaukee. The Airport would also recruit other airlines, 

depending on their ability to enter the market with an appropriate service package. 

“...Service to and from O’Hare 

remains the single most 

important objective for not 

only the Airport, but the 

community as a whole.” 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 17

EXPECTED RESULTS 

Route Specific Data: St. Cloud – Chicago O’Hare 

Without current air service provided in the St. Cloud market, the local airline passenger and 

revenue market must be estimated by assuming St. Cloud is currently generating a share of the 

passenger and revenue traffic at Minneapolis/St. Paul – the nearest airport with commercial air 

service – relative to St. Cloud’s share of the area’s population. The St. Cloud Regional Airport 30-

minute catchment area represents 5.13% of the total population of the 90-minute 

Minneapolis/St. Paul catchment area (see Figure 8). 

The immediate St. Cloud 

catchment area, represented in 

Figure 8 in red, includes 204,714 

people. For the purposes of these 

calculations, only those living in the 

immediate, 30-minute St. Cloud 

Regional Airport catchment area 

were considered in the analysis, as 

STC would be significantly more 

convenient for them than 

Minneapolis/St. Paul. For the 

purposes of these projections, it is 

assumed United Express service at 

St. Cloud would draw passengers 

only from its 5.13% share of the 

Minneapolis/St. Paul catchment 

area. 

Assuming these conservative population-based passenger and revenue estimates, it is estimated 

that the St. Cloud market currently produces 944 unstimulated origin and destination passengers 

per day each way to destinations that naturally connect over the United Chicago O’Hare hub. 

As of the year ended first quarter 2010, it is estimated St. Cloud produced 689,425 total origin 

FIGURE 8: St. Cloud’s Share of the Greater

Minneapolis/St. Paul Catchment Area
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 18

and destination passengers that would flow over Chicago O’Hare on United coded flights (see 

Figure 9). 

In all, the St. Cloud – Chicago O’Hare route is estimated to have the potential to capture 83% of 

the current passengers flying in and out of St. Cloud, through the nearest current air service at 

Minneapolis/St. Paul (see Figure 9). At the same time, the O’Hare hub could capture 75% of the 

current estimated revenue generated in the St. Cloud market. Currently, United markets from St. 

Cloud that flow over the Chicago O’Hare hub generate an estimated $115 million in annual 

airline revenue, or more than $158,000 in revenue per day each way (RDEW) to and from St. 

Cloud. 

The United hub at Chicago O’Hare has potential to capture large portions of traffic in 131 of St. 

Cloud’s origin and destination markets. The O’Hare hub is especially well positioned to capture 

traffic traveling in virtually all directions – including large markets such as Chicago, itself, which is 

estimated to produce 80.5 passengers per day each way (PDEW) to and from St. Cloud; New 

York/Newark, which is estimated to produce 55.6 PDEW; the Los Angeles Basin, which is 

estimated to produce 45.9 PDEW; Phoenix, which is estimated to produce 44.6 PDEW; and 

Washington-Baltimore, which is estimated to produce 43.1 PDEW (see Figure 10 on next page). 

O'Hare 

83%

Other 

Hubs 17%

O'Hare 

75%

Other 

Hubs 25%

Estimated St. Cloud O&D Revenue $153,804,952 100%

Revenue Flowing Over O’Hare $115,671,888 75%

Estimated St. Cloud O&D Passengers 826,510 100%

Passengers Flowing Over O’Hare 689,425 83%

FIGURE 9: St. Cloud’s Estimated Passengers and Revenue Over O’Hare on United

Source: Sixel Consulting Group Hub Builder, YE1Q10
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 19

St. Cloud’s top 15 revenue markets that would flow over Chicago O’Hare on United coded 

service are each estimated to produce more than $3,000 in revenue per day each way (see 

Figure 11 on next page). The top potential St. Cloud revenue market over United’s O’Hare hub is 

estimated to be New York/Newark, which is estimated to produce more than $10,300 in revenue 

per day each way (RDEW). Chicago O’Hare, itself, ranks as St. Cloud’s fourth-largest revenue 

market that United would access, generating an estimated $6,873 in revenue per day each way 

as of the year ended first quarter 2010. 

FIGURE 10: St. Cloud’s Estimated Top 20 Passenger Markets Over O’Hare on United

Source: Sixel Consulting Group Hub Builder, YE1Q10

58,734

40,575

33,481

32,575

31,499

31,143

26,497

26,001

22,661

20,757

19,645

18,280

17,891

15,889

14,142

13,482

13,474

11,622

11,145

10,565

80.5

55.6

45.9

44.6

43.1

42.7

36.3

35.6

31.0

28.4

26.9

25.0

24.5

21.8

19.4

18.5

18.5

15.9

15.3

14.5

0 10000 20000 30000 40000 50000

Chicago Area- 1

New York/Newark - 2

Los Angeles Basin - 3

Phoenix/Mesa Area - 4

Washington/Baltimore - 5

Orlando/Sanford Area - 6

Las Vegas - 7

San Francisco Bay Area - 8

Atlanta - 9

Dallas/Ft Worth Area - 10

Seattle/Tacoma - 11

Boston - 12

South Florida Area- 13

Fort Myers - 14

San Diego - 15

West Florida Area - 16

Philadelphia - 17

Milwaukee - 18

Cancun - 19

Detroit - 20

Annual Passengers PDEW
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 20

The United hub at Chicago O’Hare is in a unique position to generate additional traffic and 

revenue to any number of St. Cloud’s top origin and destination markets. United Express service 

from St. Cloud to O’Hare has the potential to capture as much as an estimated $115 million in 

current airline revenue, not taking into account any revenue stimulation through lower fares and 

additional non-stop service. 

Should it launch service between St. Cloud and Chicago O’Hare United Express would be 

competing in markets that have current fares well above the regional average. The average 

one way fare out of Minneapolis/St. Paul to St. Cloud markets that United would connect with 

one-stop service over Chicago O’Hare was $168 as of the year ended first quarter 2010 – 11.3% 

higher than the current regional average of $151 each way (see Figure 12 on next page). 

FIGURE 11: St. Cloud’s Estimated Top 20 Revenue Markets Over O’Hare on United

Source: Sixel Consulting Group Hub Builder, YE1Q10

$7,534,528

$5,574,906

$5,489,264

$5,017,418

$4,515,863

$4,215,088

$3,601,511

$3,504,350

$3,168,013

$3,063,350

$2,904,693

$2,859,561

$2,684,097

$2,337,258

$2,196,790

$2,189,461

$2,116,328

$2,094,268

$2,079,991

$1,799,435

$10,321

$7,637

$7,520

$6,873

$6,186

$5,774

$4,934

$4,800

$4,340

$4,196

$3,979

$3,917

$3,677

$3,202

$3,009

$2,999

$2,899

$2,869

$2,849

$2,465

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000

New York/Newark - 1

Los Angeles Basin- 2

Washington/Baltimore - 3

Chicago Area- 4

San Francisco Bay Area - 5

Phoenix/Mesa Area - 6

Las Vegas - 7

Orlando/Sanford Area- 8

Boston- 9

Atlanta - 10

Seattle/Tacoma - 11

Dallas/Ft Worth Area - 12

South Florida Area- 13

Philadelphia - 14

Fort Myers - 15

London Heathrow - 16

Cancun - 17

Detroit - 18

San Diego - 19

Houston Area - 20

Annual Revenue

RDEW
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 21

Average fares in St. Cloud markets that would naturally flow over Chicago O’Hare on United 

would likely be at $168 each way (see Figure 12), if service is priced at current averages to the 

same markets out of Minneapolis/St. Paul. 

The Airport and the community both believe the best opportunity for successful service will be 

routed through Chicago O’Hare. The beauty of this project is the wide ranging community buyin that has already started. Previous air service development studies have shown the most 

successful projects are ones in which the community has a financial stake. That will certainly be 

the case in this project. 

FIGURE 12: MSP’s Average Fares to Top 20 Revenue Markets Over O’Hare on United

Source: Sixel Consulting Group Hub Builder, YE1Q10

$85

$186

$167

$129

$174

$113

$136

$174

$135

$138

$148

$173

$150

$138

$147

$128

$173

$77

$190

$198

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200

Chicago Area - 1

New York/Newark - 2

Los Angeles Basin - 3

Phoenix/Mesa Area - 4

Washington/Baltimore - 5

Orlando/Sanford Area - 6

Las Vegas - 7

San Francisco Bay Area - 8

Atlanta - 9

Dallas/Ft Worth Area - 10

Seattle/Tacoma - 11

Boston - 12

South Florida Area - 13

Fort Myers - 14

San Diego - 15

West Florida Area - 16

Philadelphia - 17

Milwaukee - 18

Cancun - 19

Detroit- 20

Average Over ORD: $168
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 22

LETTERS OF SUPPORT 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 23
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 24
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 25
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 26
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 27
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 28
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 29
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 30

THE LOSS OF AIR SERVICE IN ST. CLOUD 

The St. Cloud Regional Airport lost its commercial air service on December 31, 2009 when Delta 

Air Lines’ regional partner Mesaba pulled its last flights. At the end of the service, Mesaba 

operated just three frequencies per day in each direction between St. Cloud and 

Minneapolis/St. Paul – down from six frequencies per day just a few years before. In fact, service 

was continually trimmed in St. Cloud after the Delta – Northwest merger, as Delta tried to match 

capacity to the profitability of the route in its accounting system. 

While Northwest profitably served a number of upper Midwest markets for several decades 

following deregulation – going as far as to add and grow service to markets such as St. Cloud – it 

was clear soon after the Delta merger that there was a different strategy in regards to serving 

smaller, upper Midwest markets. While Northwest accounting placed a premium on system 

revenue from small markets – revenue that came into the larger Northwest system through 

connections – it appears Delta accounting places a larger premium on the local revenue a 

flight generates – the revenue credited to the specific local segment of the flight, and not the 

connection. 

In the case of St. Cloud, the approximate accounting in the Northwest methodology showed 

the route as slightly profitable as recently as the second quarter of 2009 (see Figure 13). While 

the Northwest accounting methodology showed a local segment loss (or segment margin) of 

35.3%, it showed an overall margin of 0.4% - service was accounted as very slightly profitable. 

ORG DEST Deps Seats Pax

Seats/

Dep LF % Local Dist Cost

Sys Pax

Revenue

Segment

Revenue

Segment

Profit

Segment

Margin

Overall

Margin

SLA

CASM

SLA Sys

Yield

SLA Seg

Yield

SLA Loc

Yield

SLA Beyond

Yield

MSP STC      664   22,576      6,623        34.0 29.3% 1.0%       61       572,469     1,495,618      423,244      (149,225) ‐35.3% 0.4% 0.08952   0.29238 0.22560 0.11386          0.21726

Northwest Service Operated by Mesaba - Saab 340 Equipment

Second Quarter 2009

SLA adjustm ents are to the average of 431.8 m iles // Proration based on Northwest Airlines Methodolgy

FIGURE 13: Approximation of Northwest Accounting of STC‐MSP Route

Source: Sixel Consulting Group, Second Quarter 2009
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 31

However, under the accounting in the Delta methodology, the St. Cloud route did not look 

nearly as profitable – in fact, it showed an even larger segment loss (see Figure 14). With so few 

passengers traveling between St. Cloud and Minneapolis/St. Paul, itself, there is no way the route 

would likely ever be profitable under the Delta accounting methodology, which places a 

premium on local passengers. There is little to no local demand between STC and MSP – and it’s 

unlikely there ever would be, as the drive – even in traffic – would take less time than going 

through security in time to make the flight. Thus, under the Delta accounting system, the 

segment margin was -63.6% - a loss of $222,524 in second quarter 2009, according to an 

approximation prepared by Sixel Consulting Group. 

After the Delta – Northwest merger, many upper Midwest markets were hurt by this same 

accounting change. Markets that Northwest served profitably for many years, including 

Muskegon, Eau Claire, Paducah, and Houghton, were cut by Delta and Mesaba, only to find 

their way into the United Express network. The St. Cloud Regional Airport believes a similar course 

of action would be in the best interest of United, the St. Cloud region, and many of the 

Midwest’s travelers. 

Over the last three years, the St. Cloud Regional Airport saw a steady and slow decline in the 

number of flights being offered by Northwest, and then Delta after the merger, along with a slow 

and steady decline in the number of available seats being offered in the market. In the summer 

of 2007, Northwest was offering close to five daily departures from the St. Cloud Regional Airport 

(see Figure 15 on next page). By the summer of 2008, the number of daily departures at St. 

Cloud had dropped to 3.8 – a loss of a daily flight. During the same time period, Northwest cut 

daily average available seats departing St. Cloud from 171 to 139 – a loss of 32 daily seats, or 

19% of departing seats. 

ORG DEST Deps Seats Pax

Seats/

Dep LF % Local Dist Cost

Sys Pax

Revenue

Segment

Revenue

Segment

Profit

Segment

Margin

SLA

CASM

SLA Sys

Yield

SLA Seg

Yield

SLA Loc

Yield

SLA Beyond

Yield

MSP STC      664   22,576      6,623        34.0 29.3% 1.0%       61       572,469     1,495,618      349,945      (222,524) ‐63.6% 0.08952   0.29238 0.18653 0.11386          0.23211

Delta Service Operated by Mesaba - Saab 340 Equipment

Second Quarter 2009

SLA adjustm ents are to the average of 431.8 miles // Proration based on Delta Air Lines Methodolgy

FIGURE 14: Approximation of Delta Accounting of STC‐MSP Route

Source: Sixel Consulting Group, Second Quarter 2009
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 32

Between the summer of 2008 and the summer of 2009, the average daily number of departures 

at St. Cloud stayed relatively stable, but the number of seats being offered in the market 

declined. In May of 2008, airlines offered 150 average daily departing seats in St. Cloud (see 

Figure 15). By May of 2009 the average number of daily departing seats dropped to 133, mainly 

due to flight cuts on the weekends. 

The St. Cloud Regional Airport saw its biggest seat cuts once Delta announced it would leave 

the market. Between July of 2009 and December of 2009, Deltas cut an average of 1.2 daily 

departures, or 48 daily average departing seats from St. Cloud (see Figure 15). Altogether, from 

the beginning of 2007 to the end of 2009, St. Cloud saw Northwest and Delta cut an average of 

2.1 daily departures, or 45% of flights, and an average of 82 daily departing seats, or 48% of all 

available seats. 

These cuts made the service more inconvenient for local travelers. The result: many started to 

drive to Minneapolis/St. Paul to access more frequent flights and passenger retention at St. 

Cloud decline. Overall, from January of 2007 to December of 2009 the St. Cloud Regional 

171

150

171171

159

168

152

143

154150147

126

150146150

130

150

139

132

139

135

150149

128

142

154

137

145

133132

137

119

106

77

106

89

78

73

81 77

71

79

67

61 64 64 62

54

67 70 68

54

64

59

52 52

45

55 51

45 46

57 53

46

39 41 45

36 38

28

36

22

0

20

40

60

80

100

120

140

160

180

200

2007/012007/022007/032007/042007/052007/062007/072007/082007/092007/102007/112007/122008/012008/022008/032008/042008/052008/062008/072008/082008/092008/102008/112008/122009/012009/022009/032009/042009/052009/062009/072009/082009/092009/102009/112009/122010/01

Available SDEW Onboard PDEW Flights DEW

4.7

4.4

4.6 4.8 4.7 4.7

4.5

4.2 4.3 4.2 4.1

3.7

4.0

3.7 3.9 3.7

3.9 3.8 3.8 3.9 3.8 3.9 3.9

3.5

3.8 3.9 3.7

3.9

3.5

3.8 3.8

3.5

2.9

2.3

2.9

2.6

FIGURE 15: Available Seats Per Day Each Way, Flights Per Day Each Way, and Onboard Passengers

January 2007 – April 2010; Source: US DOT T100 Report
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 33

Airport saw it average daily onboard departing passengers decline from 78 per day to 22 per 

day – a loss of 72% of all passenger traffic (see Figure 15 on previous page). 

It should be noted the passenger decline in St. Cloud is partially attributed to the loss of flights 

and seats. Part of the decline can also be attributed to increasing fares – up almost 10% on 

average in the last three years of service at the St. Cloud Regional Airport. Still, the data is not 

pretty, and it emphasizes the fact that the Airport will require risk mitigation to overcome the 

impression that Northwest and Delta have built of a weak and declining regional service market. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 34

AIR SERVICE DEFICIENCIES IN ST. CLOUD 

Although the St. Cloud Regional Airport catchment area represents a large proportion of the 

population of the larger region, even when local service was available, the Airport did not retain 

the number of passengers equal to its share of the regional population. In other words, the 

Airport was still “leaking” a large percentage of its passengers to other airports – although none 

of the other airports in the region are particularly close. 

The St. Cloud metropolitan statistical area (MSA) had a population of 186,954 as of the latest US 

Census estimates (see Figure 16). The larger region comprised of the metro areas of 

Minneapolis/St. Paul, Duluth, and Eau Claire, has a current population of 3,850,145. St. Cloud’s 

share of the regional population is 4.9%. 

FIGURE 16: Regional Population Distribution

Source: US Census Estimates

STC

DLH

EAU

Regional Population

MSP

Minneapolis/St. Paul (MSP) 3,229,878 83.9%

Duluth (DLH) 274,571 7.1%

St. Cloud (STC) 186,954 4.9%

Eau Claire (EAU) 158,742 4.1%

Population Share

Source: US Census Share of Population of Combined DLH/MSP/STC/EAU Catchment
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 35

In many markets, an Airport draws a number of passengers proportional to its overall population 

in the region. If that were to be the case in the St. Cloud market, one could reasonably expect 

the Airport to retain about 5% of the total passengers using 

all four airports in the larger region. However, in the case of 

St. Cloud, the St. Cloud Regional Airport did not retain close 

to that percentage of the region’s passengers. 

While the St. Cloud metro area (MSA) is home to almost 5% of 

the region’s total residents (see Figure 17), its airport retained 

just 0.12% of the region’s total origin and destination 

passengers when it had scheduled air service (see Figure 18). 

In the region, St. Cloud had the lowest percentage of 

passenger retention of any airport as of the year ended first 

quarter 2010. In the year ended first quarter 2010, the St. 

Cloud Regional Airport saw a total of 20,370 origin and 

destination passengers. If the Airport had been able to 

retain the number of regional passengers proportional to its 

share of population in the region, it would have been used 

by another 785,894 passengers. In effect, the St. Cloud 

Regional Airport “leaked” these passengers to other airports 

in the region – a leakage rate of 97.5%. The bottom line is 

that the St. Cloud Regional Airport only retained about 2.5% 

of the passengers that should be expected based on its 

share of the regional population, when it had commercial 

air service. 

The largest beneficiary of St. Cloud’s passenger leakage appears to be Minneapolis/St. Paul – 

which is more than one and a half hours away by car. Minneapolis/St. Paul International Airport 

had “reverse leakage” as of the year ended first quarter 2010, when it drew 17% more 

passengers than its proportion of the regional population. While Minneapolis/St. Paul makes-up 

83.9% of the region’s population, it boards 98.2% of the region’s total origin and destination 

passengers (see Figure 17 and Figure 18). If Minneapolis/St. Paul retained a number of origin and 

destination passengers proportional to its regional population share, it would be expected to 

generate 13.8 million passengers annually. In the year ended first quarter 2010, Minneapolis/St. 

Paul saw a total of 16.2 million O&D passengers – more than 17% above its regional share. Some 

of those passengers came at the expense of St. Cloud. 

Minneapolis 

83.90%

St. Cloud 

4.90%

Duluth 

7.10%

Eau Claire 

4.10%

FIGURE 17: Regional Population Share

Source: US Census Estimates

FIGURE 18: Regional O&D Passenger Share

Source: US DOT Table DB1A

Minneapolis 

98.20%

St. Cloud 

0.12%

Duluth 

1.54% Eau Claire 

0.14%
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 36

Another way of determining passenger leakage from the St. Cloud market to other airports in the 

region is by comparing the economy of St. Cloud to the economies of the nearest three cities 

with commercially-served airports. The easiest way to gauge each catchment area’s 

contribution to the economy of the region is to compare the gross metropolitan products (GMP) 

of each. A GMP is much like a gross national product – an overall gauge of economic activity in 

an area in dollars earned. 

The United States Council of Mayors reports the St. Cloud metro area (MSA) produced a GMP of 

$7.7 billion in 2008, which represented 3.6% of the total gross regional product (GRP) of the area 

including Minneapolis/St. Paul, Duluth, and Eau Claire (see Figure 19). Minneapolis/St. Paul 

generated the largest portion of the GRP, with $188 billion, or 89.1%, while Duluth produced a 

GMP of $9.5 billion – good for 4.5% of the GRP. 

Source: United States Council of Mayors, June 2008

Minneapolis/St. Paul (MSP) $188.0 Billion 89.1%

Duluth (DLH) $9.5 Billion 4.5%

St. Cloud (STC) $7.7 Billion 3.6%

Eau Claire (EAU) $5.9 Billion 2.8%

GMP Share

Gross Metropolitan Product (GMP)

STC

DLH

EAU

MSP

FIGURE 19: Regional Gross Metropolitan Product (GMP) Distribution

Source: US Council of Mayors
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 37

Despite producing 3.6% of the total gross regional product (GRP), when the St. Cloud Regional 

Airport had commercial air service, it retained just 0.12% of the region’s total origin and 

destination passengers (see Figure 20). In the region, St. 

Cloud has the lowest percentage of passenger retention 

relative to its gross metro product (GMP), of any airport. 

As of the year ended first quarter 2010, the St. Cloud 

Regional Airport generated a total of 20,370 origin and 

destination passengers when it had scheduled air service – 

through the first three quarters of that period. If the Airport 

had been able to retain the number of regional passengers 

proportional to its share of the GRP, it would have been 

used by another 571,987 passengers. In effect, the St. Cloud 

Regional Airport “leaked” these passengers to other airports 

in the region – a leakage rate of 96.6%. With local, 

scheduled air service the Airport only retained about 3.5% of 

the passengers that should be expected based on its share 

of the gross regional product. 

The main beneficiary of St. Cloud’s passenger leakage is 

Minneapolis/St. Paul. Minneapolis/St. Paul experienced 

“reverse leakage” as of the year ended first quarter 2010, 

when it drew 10.2% more passengers than its proportion of 

the gross regional product (GRP). While Minneapolis/St. Paul 

generates 89.1% of the GRP, it boards 98.2% of the region’s 

total origin and destination passengers (see Figure 21). If Minneapolis/St. Paul retained a number 

of origin and destination passengers proportional to its GRP share, it would be expected to 

generate 14.7 million passengers annually. As of the year ended first quarter 2010, 

Minneapolis/St. Paul saw a total of 16.2 million O&D passengers – more than 10% above its 

projected GRP share. 

Even with new service at St. Cloud, it is likely most of the region’s passengers will still use 

Minneapolis/St. Paul. But, for new St. Cloud service to Chicago O’Hare to be successful, it needs 

to draw just 60,000 annual passengers, or 10% of its GMP estimated current passengers flying 

from Minneapolis/St. Paul.

FIGURE 20: Regional GMP Share

Source: US Council of Mayors

FIGURE 21: Regional O&D Passenger Share

Source: US DOT Table DB1A

Minneapolis 

98.20%

St. Cloud 

0.12%

Duluth 

1.54% Eau Claire 

0.14%

Minneapolis 

89.10%

St. Cloud 

3.60%

Duluth 

3.60%

Eau Claire 

2.80%
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 38

EXTENUATING FACTORS AFFECTING AIR SERVICE 

It has been established that, even when local air service was provided, the St. Cloud Regional 

Airport was losing a significant number passengers from its catchment area. Attention then turns 

to the reasons why travelers were driving to other airports. As is the case with many other 

airports experiencing leakage, it all comes down to the availability of flights on the right airlines 

at the right times, and, perhaps even more importantly, airfares. 

When Delta offered service into the St. Cloud Regional Airport, in calendar year 2009, it offered 

far fewer seats available for sale in St. Cloud than there are available at any of the other airports 

in the immediate region. Delta offered 

just over 44,700 outbound available 

seats in St. Cloud in 2009 (see Figure 22). 

In 2009, airlines offered 425 times more 

available seats in Minneapolis/St. Paul 

than they offered in St. Cloud. 

The lack of sufficient available seats for 

sale in the St. Cloud market when 

service was offered forced many 

travelers to drive to Minneapolis/St. Paul to access the national air transportation system. The 

small number of available seats at the St. Cloud Regional Airport in 2009 is partially responsible 

for the Airport’s inability to retain a number of origin and destination passengers proportional to 

its population and gross metropolitan product. 

The other major factor driving 

passengers to other airports in the region 

was the average fare in the St. Cloud 

market relative to the fares found at 

adjacent airports. In 2009, before service 

was pulled, the St. Cloud Regional Airport 

has some of the highest average fares in 

the Midwest region – with average fares 

36% higher than the regional average. 

FIGURE 22: Total Departing Seats, CY2009

Source: US DOT T100 Data

19,038,357

193,574

57,268

44,706

0 5,000,000 10,000,000 15,000,000

Minneapolis/St. Paul

Duluth

Eau Claire

St. Cloud

$205

$187

$186

$183

$150 $160 $170 $180 $190 $200

St. Cloud

Eau Claire

Minneapolis/St. Paul

Duluth

FIGURE 23: Average One Way Fares, CY2009

Source: US DOT Table DB1A
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 39

St. Cloud also had the unfortunate honor of having the highest average fares among adjacent 

airports – the airports it most frequently “leaks” passengers to – before service was pulled through 

calendar year 2009. The average fare at St. Cloud in 2009 was $205 each way (see Figure 23). 

The average fare at the St. Cloud Regional Airport before service was pulled was 9.6% higher 

than the $187 average at Eau Claire and 10% higher than the $186 one way average at 

Minneapolis/St. Paul (see Figure 23). With fewer available seats and higher average fares, there 

wasn’t much incentive for St. Cloud travelers to fly from their hometown airport, other than its 

convenience. In many cases, as flight 

frequencies were pulled throughout 

2009, the convenience did not outweigh 

the greater flight offerings and lower 

fares at Minneapolis/St. Paul. 

Another important metric that helps 

explain St. Cloud’s passenger leakage, 

even when it still had scheduled air 

service, is the number of available airline 

seats per resident of a community’s 

metro area. This gives an indication of the number of trips that the average person in the metro 

area could take from their local airport. The national average of available seats per capita in 

2009 was close to five – five airline seats departing a market per person. 

In St. Cloud’s case, Delta offered just 0.24 available departing seats per resident of the St. Cloud 

metro area – not the catchment area – just the immediate metro (see Figure 24). This was the 

lowest number of seats per capita of any airport in St. Cloud’s region. The number indicates 

there were only enough seats offered in the market so that one quarter of the population could 

take a local airline trip – one of the lowest such numbers in the country. For comparison, airlines 

offered 0.36 seats per capita in Eau Claire, 0.71 seats per capita in Duluth, and 5.89 seats per 

capita in Minneapolis/St. Paul. It is clear that airlines in these smaller communities count on 

leakage to MSP to fill seats there. 

FIGURE 24: Departing Seats Per Capita, CY2009

Source: US DOT T100 Data and US Census Estimates

5.89

0.71

0.36

0.24

0123456

Minneapolis/St. Paul

Duluth

Eau Claire

St. Cloud
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 40

The only proven way to bring down fares, and add seats to the St. Cloud market, is to recruit a 

new airline with a new commitment to serving the market. The proven way to recruit flights from 

a new airline is to offer some kind of incentive package, to reduce a carrier’s barrier to entry into 

a new market. Leakage costs a community significant money – in time, wasted fuel, and wear 

and tear on personal and company vehicles. The Airport aims to eliminate these inefficiencies 

by adding new airline service. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 41

AVAILABILITY OF ALTERNATE AIRPORTS 

The St. Cloud catchment area is currently served by the Minneapolis/St. Paul International 

Airport. There is no current local air service in St. Cloud. The region is not well-served by 

alternate airports. In fact, the only other true alternate is Brainerd, Minnesota, which is 62 miles to 

the north of St. Cloud on two-lane roads (see Figure 25). Brainerd has little commercial air 

service, with three current daily 

flights on Northwest to 

Minneapolis/St. Paul. 

St. Cloud’s commercial service 

airport, right now, is 

Minneapolis/St. Paul International. 

MSP lies 82.6 miles to the 

southeast of St. Cloud’s 

downtown business district. The 

trip is all freeway, but it is difficult 

due to the fact that the MSP 

Airport lies on the southern edges 

of the metro area. Moreover, 

traffic is a major problem on 

weekdays, making the 1:30 trip 

run well over 2 hours in many cases. Minneapolis/St. Paul is not an ideal alternate, and not an 

adequate location for St. Cloud’s access to the national air transportation system.

 

FIGURE 25: Alternate Airports Near

St. Cloud, Minnesota
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 42

USE OF LOCAL/FEDERAL FUNDS 

Marketing and Advertising 

The St. Cloud Regional Airport proposes to spend at least $50,000 in funds on marketing and 

advertising promotions in support of new service introductions. 

Revenue Guarantee 

The St. Cloud Regional Airport proposes to make available at least $500,000 in funds for a 

revenue guarantee, to cover start-up losses that may occur during the first twelve months of 

service. Subject to negotiation, payments will be made to the airline quarterly when income 

derived from passengers and cargo is less than agreed expenses. Revenue generated that 

exceeds expenses will be carried forward and tapped before any grant funds are used. 

Startup Cost Offsets 

The St. Cloud Regional Airport proposes to spend only existing airport funds and matching funds 

to pay for start-up costs in support of new service introductions. The Airport, and its partners, will 

provide essential terminal space and equipment to handle the new service.

Additional Costs 

As part of this program, the St. Cloud Regional Airport understands that additional expenses will 

be incurred, such as monitoring the results of the program and reporting those results back to 

the US DOT. In addition, the St. Cloud Regional Airport expects to incur some expenses in airline 

recruitment. The Airport may choose to use DOT funding in these efforts. 

Pre-Purchased Ticket Program 

Outside this Grant proposal, the community is currently building pledges for a pre-purchased 

ticket program. This will be paired with the Grant and other local funding to round-out the 

package of incentives for the new carrier. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 43

PUBLIC/PRIVATE PARTNERSHIPS 

A number of other local partners will be working with the St. Cloud Regional Airport to promote 

and market the new service. Contacts will be made to all St. Cloud members of partner 

organizations and those with an interest in growing the economic base of the community 

through local business growth, attraction of new businesses and the promotion of tourism and 

visitor traffic via the airport. 

The St. Cloud Area Economic Development Partnership

The St. Cloud Area Economic Development Partnership plays the leading role in projects in St. 

Cloud related to business, housing and economic development. The Partnership’s mission is to 

promote the economic vitality and industrial development of our community. The areas of 

concentration are: 

- Citywide business development and retention emphasizing the creation of jobs which 

increases the tax base of the community. 

- Continual enhancement of the public & private investment in the business/commercial 

districts of the City. 

- Development of the entire waterfront of the City to capitalize on this significant asset and 

enhance its value to the community. 

- Encourage the provision of a targeted broad range of housing as needed in the 

community to support the growth of the City and preserve and enhance older 

neighborhoods. 

- Advocate progressive public policy for development issues. 

St. Cloud Area Chamber of Commerce

St. Cloud Area Chamber of Commerce members represent all sizes and kinds of businesses in the 

St. Cloud area. The Chamber is dedicated to promoting the economic, civic, commercial 

cultural, industrial, and educational interests of the St. Cloud area. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 44

The Chamber provides members opportunities such as new business contacts, business referrals, 

and up-to-date information on the business community and relevant policy issues. Members rely 

on the Chamber for information regarding business expansion, professional development 

opportunities, and political advocacy. 

St. Cloud Area Convention and Visitors Bureau 

The St. Cloud Area Convention and Visitors Bureau is responsible for marketing the St. Cloud 

region for its 450 participating members (hotels, restaurants, attractions, businesses, etc.). The 

Bureau is responsible for visitor growth and awareness, and will support the growth of service at 

the Airport.
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 45

IMPLEMENTATION TIMELINE 

The proposed implementation timeline for the project assumes the Department of Transportation 

will award Small Community Grant Funding in December 2010. Once the award is announced, 

the St. Cloud Regional Airport will conduct additional airline meetings to secure a new service 

that is mutually beneficial. Based on airline planning lead times and the need for advance 

bookings, we assume the new carrier would not be able to begin service until at least March of 

2012. 

The first three milestones on the Airport's timeline are to execute the grant agreement with the 

Department of Transportation, meet with prospective airlines to negotiate for service, and sign 

the minimum revenue guarantee agreement with the appropriate airline partner. Once service 

is announced and schedules are published, the Airport would begin marketing the new route 

and working with the new carrier to monitor advance bookings. The Airport will continue its 

marketing program and continue to work with the new carrier to monitor the route once service 

begins. The Airport would submit grant status reports on a quarterly basis to the Department 

throughout the proposed two year term of the minimum revenue guarantee. 

While the estimated dates are targets, it is possible service could be secured and launched on a 

more aggressive timeline once Grant funding is awarded. It is also possible that new service 

could slip to 2013 should an airline require additional risk mitigation, beyond that included in this 

proposal, from the community. 

Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement December 2010

Executive Grant Agreement with DOT January 2011

Meet With Prospective Airlines February - June 2011

Negotiate Minimum Revenue Guarantee (MRG) With Airline July/August 2011

Announce Service December 2011

Publish Schedule December 2011

Begin Marketing of New Route January 2012

Monitor Advance Bookings January - March 2012

Service Launch March 2012

MRG Available for Service March 2012 - March 2014

Monitor Route Performance March 2012 - March 2014

Submit Grant Status Reports to DOT Quarterly Q1 2011 - Q1 2014

Close Grant April 2014
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 46

AIR SERVICE ADVISORY GROUPS 

The St. Cloud Regional Airport has a long-established Air Service Advisory Board, whose primary 

function is to seek out new opportunities and help recruit and support new service. The 

Committee consists of members from various community organizations, along with the Airport 

Director and the City of St. Cloud’s Public Services Director. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 47

LOCAL AIR SERVICE DEVELOPMENT EFFORTS 

Despite airline recruitment efforts over the last several years, the Airport has been unable to 

recruit additional service, outside Sun Country’s charter flying in the market – even after Delta 

left the market in January of 2010. The Airport realizes how essential it will be to future air service 

development to find a partner in the Department of Transportation’s Small Community Air 

Service Development Program. 

In the past several years, Airport leaders, and the Airport’s consulting firm, have met with various 

airlines to work on initiatives to bring new service to the region. In all cases, those airlines have 

indicated that St. Cloud’s incentive offerings are not enough to overcome the risk in the market, 

due to the fact that historical data doesn’t support additional flying. However, the market did 

grow by almost 13% in the last decade, indicating it can support airline service. 

The Airport must develop a more attractive incentive package, going as far as to enter into a 

capacity purchase agreement, in order to secure service and a new link to the national air 

transportation system. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 48

IN-KIND SERVICES FROM COMMUNITY 

The following organizations will help promote the St. Cloud Regional Airport’s air service 

development goals through their various membership groups. There is no estimated value to 

these services. 

 St. Cloud Area Economic Development Partnership 

 St. Cloud Area Chamber of Commerce 

 St. Cloud Area Convention and Visitors Bureau 

 City of St. Cloud 

 Stearns County 

 Sherburne County 

 Benton County 

 Area Cities 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 49

PERFORMANCE MEASURES 

The success of the program will be based on three variables. The first measure of success will be 

the recruitment and retention of a new airline to the St. Cloud market. When new service is 

initiated, the first measure of success will be met. The Airport will judge the second measure of 

success by the increased number of enplanements. Finally, the third measure of success will be 

based on how much average airfares charged in the community have gone down. The 

measurement of enplanements will include a monthly comparison, once the program begins, to 

past enplanements numbers. The measurement of airfares will be derived from US DOT OD1A 

reports. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 50

LEGAL SPONSOR 

The St. Cloud Regional Airport is the legal sponsor responsible for administering the program. The 

St. Cloud Regional Airport is a government entity. 

St. Cloud Regional Airport 

1550 45th Avenue Southeast 

St. Cloud, Minnesota 56304 

William Towle, Airport Director 

320.255.7292 

wtowle@ci.stcloud.mn.us 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 51

FINANCIAL CONTROLS 

As the sponsor, the St. Cloud Regional Airport and its governing body, the City of St. Cloud will be 

the responsible parties for all fiscal matters and DOT reporting requirements. The City Council is 

established as a public governing body. As a public entity the DOT can be assured that proper 

financial controls are in place to guarantee that the DOT’s Grant will be used in accordance 

with any subsequent agreement. The St. Cloud Regional Airport understands that the Grant is a 

reimbursable grant, meaning the Airport is responsible for program expenditures and will submit 

invoices to the DOT for reimbursement, based on a percentage of the total grant request. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 52

RETURN ON INVESTMENT 

The Airport has developed a cost effective and achievable strategy to add airline service. The 

proposal uses proven methods of achieving air service improvements, allowing the DOT to be 

comfortable with choosing this proposal. The renewed access to the national air transportation 

system is in line with the major goals of the Small Community Air Service Development Program. 

Approximately $50,000 of the $550,000 in cash is committed to being spent. The remaining 

$500,000 in cash available for the revenue guarantee portion of the grant may never be 

expensed. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 53

DOT EXIT STRATEGY 

The St. Cloud Regional Airport has developed this proposal as a one-time grant. While the initial 

startup costs will be paid for out of other airport funds, the advertising and marketing program 

will commence a few months before service starts and last for at least twelve months. The 

revenue guarantee program will also be in place for twelve months, with two additional twelvemonth periods available for negotiation. It is projected that the service will be financially selfsustaining within the second twelve months of service. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 54

ALTERNATE PLAN 

If, for some unforeseen reason, service is not commenced in a timely manner by a United Express 

carrier on the St. Cloud – Chicago O’Hare route, the Airport proposes to use federal grant 

money awarded under the Small Community Air Service Development Program to fund another 

air service development project, using the Grant funding as a revenue guarantee. Among the 

alternate routes covered under this proposal would be American Eagle, with service to Chicago 

O’Hare and/or Dallas/Ft. Worth; Continental, with service to Cleveland and/or Houston; US 

Airways with service to Charlotte or Phoenix; AirTran, with service to Milwaukee; and/or Frontier, 

with service to Denver and/or Milwaukee. The Airport would also recruit other airlines, 

depending on their ability to provide adequate access to the national air transportation system. 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 55

AIRPORT INFORMATION 

The St. Cloud Regional Airport is well positioned for airline growth. The Airport has current 

terminal room, including ticket counter, back office, and gate space, for carriers to begin flights 

immediately. 

The Airport features a pair of crossing runways. The main 

runway is 7,000 feet in length, with dual ILS (instrument 

landing system) approaches, with the ability to handle 

virtually any jet aircraft in any weather conditions. St. 

Cloud’s crosswind runway is 3,000 feet in length – perfect 

to separate frequent general aviation traffic from 

commercial traffic. 

Another attractive feature of the St. Cloud Regional 

Airport is that parking is always free. This is a distinct 

advantage over other airports in the region, such as 

Minneapolis/St. Paul International, where parking can 

run $16 a day or more.
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 56

COMMUNITY PROFILE 

St. Cloud sits along the Mississippi River, and includes more than 30 islands, called the “Beaver 

Islands,” just downstream from Downtown. Incorporated in 1856, the St. Cloud region is now 

home to more than three-quarters of a million people (those living within 60 miles of the St. Cloud 

Regional Airport). 

St. Cloud has a long history as an industrial center, beginning in the mid-1800s when the railroad 

first came through town, and the first timber mill opened. Today, St. Cloud is one of the largest 

manufacturing centers in the upper Midwest, with major companies building a number of 

goods, including trucks, boats, tools, freezers, lumber, paper, optical lenses, furniture, and 

sporting goods. 

St. Cloud is home to three major universities, which 

enroll more than 22,000 full-time students from all 50 

states and around the world. Minnesota’s second 

largest public university, St. Cloud State University 

brings tens of thousands of people to the region for 

studies, athletic events, and cultural activities each 

year. It is joined in the City by the joint campus of the College of St. Benedict and St. John’s 

University, along with Rasmussen College and St. Cloud Technical College. 

In addition to being a gateway to the lakes of central Minnesota, St. Cloud has a number of 

attractions that draw tens of thousands of visitors each year. Quarry Park, which is a collection 

of 20 dormant granite quarries, is now a hiking, mountain biking, and cross-country skiing 

destination. St. Cloud’s Central Business District is one of the few that is listed, as a whole, on the 

National Register of Historic Places, and designated a “Preserve America” community. The 

Clemens and Munsinger Gardens attract visitors from around the country. These gardens are set 

along the Mississippi River. The region also offers museums, performance halls, and convention 

centers that hold their own against the larger, better-known sites in Minneapolis/St. Paul. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 57

St. Cloud Economic Overview 

The City of St. Cloud first grew into an economic base for the upper Midwest in the late 1800s 

and early 1900s, as the terminus of navigation on the Mississippi River, and as the southern end of 

the Great Northern Railroad. At the time, the City’s main industries were timber and paper 

milling, along with wholesale trade. 

Today, St. Cloud is still a center for timber and paper 

milling, with large companies doing both. As of 2010, St. 

Cloud's population is 66,333 and has had a population 

growth of 12.24 percent since 2000. Residents of St. 

Cloud spend an average of $6,779 per year on travel. 

 The Mississippi is a lifeline to communities throughout the Midwest and the South. The railroad still 

carries goods made in St. Cloud throughout the Great Plains and the Rocky Mountain states. 

Still, St. Cloud’s economy has diversified since those days, with the mainstay industries providing 

an economic backdrop of more cutting-edge technologies. St. Cloud is now a center for health 

care, food processing, heavy and light manufacturing, administrative services, and Minnesota 

State Government. 

Private industries, or small firms, employ the vast majority of 

St. Cloud area residents – growing by 5% over a five-year 

period. These smaller companies help to diversify the 

economic base of the region, making it more resistant to 

economic downturns. The current unemployment rate in 

St. Cloud is 6.2%, well below the national average of 9.5% 

(May 2010). Other large industries include manufacturing 

of both durable and non-durable goods, retail trade, 

government, and health care and education. Future job growth over the next ten years is 

predicted to be 24.82%. 

A number of nationally and internationally recognized companies have operations in the St. 

Cloud metro area. Among the more well known are Electrolux, CompuCredit, Fingerhut, 

Woodcraft, and New Flyer USA. These companies have offices throughout the US, and all over 

the world, and require frequent travel. Their employees are often forced to fly from 

Minneapolis/St. Paul due to the lack of reliable and competitive service at the St. Cloud 

Regional Airport. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 58

Firm # of Employees 

St. Cloud Hospital 6,232

State of Minnesota 2,055

Electrolux Home Products 1,850

St. Cloud Area School District 1,800

St. Cloud State University 1,400

Veterans Affairs Medical Center 1,101

Gold'n Plump Poultry Processing 867

Cold Spring Granite Company 850

St. John's University 750 

City of St. Cloud Associations 735 

Wolters Kluwer Financial Services 650 

Nahan Printing 600 

New Flyer 550 

Knife River Corporation 530 

Woodcraft Industries, Inc. 527 

The Antioch Company 500 

Verso Paper Manufacturers 500 

College of Saint Benedict 491 

Quebecor World 488 

Figure 26: Major Employers in the St. Cloud Area

Source: St. Cloud EDC, 2009
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 59

Fortune 500 Companies in the St. Cloud Area

Seventeen Fortune 500 companies have their headquarters within 75 miles of the St. Cloud 

Regional Airport – most in the Minneapolis/St. Paul metro area. Many of these companies’ 

employees live within the St. Cloud Airport catchment area, and would likely use the St. Cloud 

Regional Airport should the proper service be offered. The following large, multinational 

companies drive the Minnesota economy. 

Firm 2010 Fortune Rank Revenue (in billion $) 

United Health Group 21 $87.1 

Target 30 $65.4 

Best Buy 45 $45.0 

Supervalu 47 $44.6 

3M 106 $23.1 

US Bancorp 121 $19.5 

General Mills 155 $14.7 

Medtronic 160 $14.6 

Xcel Energy 244 $ 9.6 

Ameriprise Financial 288 $ 7.9 

C.H. Robinson Worldwide 301 $ 7.6 

Thrivent Financial 342 $ 6.5 

Ecolab 365 $ 5.9 

Nash Finch 400 $ 5.2 

St. Jude Medical 445 $ 4.7 

Alliant Techsystems 454 $ 4.6 

PepsiAmericas 464 $ 4.4 

Figure 27: Fortune 1000 Companies in the St. Cloud Area

Source: Fortune Magazine, 2010
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 60

Select Company Profiles

Gold’n Plump 

Gold’n Plump is the top chicken processor in the upper Midwest, with more than 

1,500 contract farmers and other employees in Minnesota and Wisconsin. The 

company’s headquarters are located in St. Cloud. Gold’n Plump works with a 

collection of “farm families,” unlike most major producers than have in-house farms. 

Gold’n Plump distributes its chicken products throughout the Midwest and upper Great Plains. 

Electrolux 

Based in Stockholm, Sweden, Electrolux is one of the largest 

appliance manufacturers in the world, with plants and offices in twodozens countries. Electrolux freezers are manufactured in St. Cloud. The company has a 23% 

market share on freezer sales in the US – all built in St. Cloud. Worldwide, Electrolux employs 

almost 57,000 people – with nearly 1,300 employees in St. Cloud. 

New Flyer USA 

New Flyer is the country’s leading builder and supplier of transit 

buses for transit agencies in major cities all over the country. The 

company’s US operations are based in St. Cloud, and much of its administration and sales staff 

travels from the St. Cloud region to clients around the US and Canada. The company’s world 

headquarters are located in Winnipeg, Manitoba. 

Woodcraft Industries 

A leading builder of wood products for use in furniture and cabinets, 

Woodcraft Industries has its corporate headquarters in St. Cloud. 

The company sells its products to manufacturers around the country, 

with administration and sales staff based in St. Cloud.

Fingerhut 

Fingerhut is a nationwide retailer, specializing in shop-at-home 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 61

product merchandizing on its website. Fingerhut is different from other retail websites, in that it 

allows customers to pay monthly for items purchased, without using a credit card. Fingerhut has 

a major facility in St. Cloud. 

Minnesota Tourism 

The St. Cloud region is a well-known destination 

for hikers, bicyclists, and cross-country skiers, 

featuring the beauty of the Mississippi River, 

and the striking landscape of the upper 

Midwest hardwood forest. The River, itself, 

draws thousands of visitors to the area each 

year for boating, water skiing, and kayaking 

trips – not to mention fishermen. The hiking 

trails lining either bank also draw serious outdoor enthusiasts. 

St. Cloud is also a destination for winter sports, with cross-country skiing taking center stage. The 

region receives, on average, 48.4 inches of snow each year, which is more than enough for not 

only skiing, but also ice fishing, ice skating, and other wintertime activities. 

St. Cloud has one of the Midwest’s largest collections of preserved 

turn-of-the-century architecture, with some of the finest examples 

of Romanesque Italianate churches, and federalist red-brick 

homes and businesses. The City’s downtown core is one of the 

few in the country to be named a Preserve America Community – 

the whole of downtown is listed on the National Register for 

Historic Places. 

St. Cloud has all the attractions one would expect in a regional 

center for culture and history, as the City serves as a hub for a 

large portion of the upper Midwest. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 62

Quarry Park 

A large draw to St. Cloud, Quarry Park and Nature Preserve 

brings in 60,000 visitors each year. They come here to see 

the 20 abandoned granite quarries that line the outskirts of 

St. Cloud. The Park features hiking and biking trails, quarry 

swimming, skiing and snowshoeing on lighted trails, ice 

fishing, and one of the best displays of fall colors – that 

rivals New England. 

Munsinger Clemens Botanical Society 

Dating from the early 1930s, St. Cloud’s Munsinger Clemens Botanical 

Society features 14 acres of flower-lined trails under towering pines. 

The WPA project is now one of the premier botanical gardens in the 

Midwest, drawing thousands from around the country each year. 

Paramount Theatre and Visual Arts Center 

The Paramount is a landmark in downtown St. Cloud. It opened on 

Christmas Eve of 1921, as St. Cloud’s “largest and finest playhouse.” 

By the 1960s, the Paramount had fallen into disrepair. It was not until 

the 1990s that the City got serious about renovating the Theatre. 

Today, the Paramount is the home to St. Cloud’s Symphony 

Orchestra, three theatre groups, a chamber music group, a ballet 

troupe, and an art museum. The Paramount hosts more than 60,000 

visitors each year. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 63

Cathedral of St. Mary 

The largest church and oldest parish in the community, St. Cloud’s Cathedral of St. Mary is one of 

the finest surviving examples of Italian Romanesque architecture in the US. The 

Cathedral’s style seems almost out of place in the upper Midwest, but the key 

ingredient that draws millions of visitors. The Cathedral is also home to the “KC 

Marrin Pipe Organ,” which is considered one of the most important musical 

instruments in the country. 

St. Cloud Higher Education 

St. Cloud is home to three universities, enrolling more than 22,000 full-time students. In fact, St. 

Cloud’s higher education enrollment is higher than any other metro area in the State of 

Minnesota, with the exception of Minneapolis/St. Paul. St. Cloud’s universities offer everything 

from the large, state school experience, to the smaller, liberal arts college experience, drawing 

students from all 50 states, and more than 40 foreign countries. 

College Enrollment 

St. Cloud State University 17,000 

St. Cloud Technical College 5,200 

College of St. Benedict/St. John’s University 4,000 

Rasmussen College 1,000 

Total Higher Education Enrollment 27,200

St. Cloud State University 

The second largest public university in the State of 

Minnesota, St. Cloud State University enrolls 17,000 full-time 

students in more than 60 degree programs (as of the fall semester, 2007). The University employs 

more than 700 highly qualified faculty members. The University is, perhaps, best known for its 

NCAA Division I ice hockey team – the Huskies. 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 64

College of St. Benedict/St. John’s University

Offering a smaller, liberal arts campus in St. Cloud, the joint 

campus of the College of St. Benedict and St. John’s 

University currently enrolls 4,000 full-time students. The 

institutions offer the most demanding study abroad program in the State of Minnesota, with 62% 

of all undergrads choosing to study overseas. Sister campuses are located in Australia, Austria, 

Chile, China, England, France, Greece, Ireland, Italy, Japan, Spain, and South Africa. 

Rasmussen College

Rasmussen College is well known throughout the upper 

Midwest, with a total of 12 campuses in a dozen different 

communities. The St. Cloud campus enrolls 500 students in 

several dozen bachelor’s degree programs.

COMPARISON TO OTHER COMMUNITIES IN REGION 

 
St. Cloud Regional Airport – Small Community Air Service Development Grant – August 2010 65

CONCLUSIONS 

The Department of Transportation has the opportunity to partner with St. Cloud in this proposal – 

to return commercial air service to the community, and re-link the community with the national 

air transportation system, in much the same original spirit and intent of the Small Community Air 

Service Development Program. 

St. Cloud is one of the communities hardest hit by the merger between Delta Air Lines and 

Northwest Airlines. After almost 30 years of successful Northwest service in the St. Cloud market, 

Delta Air Lines announced it would end all service at the St. Cloud Regional Airport as of 

December 31, 2009. The Airport quickly went to work, 

meeting with several airlines in hopes of retaining an 

alternate service. But each airline told the Airport the 

same thing: to consider St. Cloud, they would have to 

have a revenue guarantee in place. 

The Airport has identified United Airlines/United Express 

as the best possible option for service, with ideal flights 

routing through the Chicago O’Hare hub. United 

coded service over O’Hare would connect to 131 onestop destinations – the widest possible array of service of any airline/hub combination. The 

Airport has had several discussions with United’s regional airline partners, and will meet with 

United as soon as it has word on this Grant application. 

Even as St. Cloud lost flights and available seats, the number of passengers using the St. Cloud 

Regional Airport continued to grow. Northwest and Delta cut St. Cloud’s available seats by 50% 

between 2007 and the end of 2009. At the same time, St. Cloud saw an increase in origin and 

destination passengers even as fares went up. There is demand for local air service in St. Cloud. 

The Airport will require risk mitigation to overcome the impression that Northwest and delta have 

built – of a weak and declining regional service market. The opposite is true, with strong 

economic growth in St. Cloud, and one of the nation’s lowest unemployment rates. The Grant 

will help put the community back on the national commercial air transportation map – leading 

to increased economic activity. 

“After almost 30 years of 

successful Northwest service... 

Delta Air Lines announced it 

would end all service at the St. 

Cloud Regional Airport as of 

December 31, 2009.”