Proposal Under the Small Community

Air Service Development Program

Docket: DOT-OST-2008-0100

Sponsoring Entity: Huntsville International Airport

Dun & Bradstreet Number: 063680789

2-digit Congressional District Code: 05

July 2013
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

APPLICATION UNDER 

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2013-0120



 SUMMARY INFORMATION



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/SCASDP

A. PROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL 

NUMBERING SYSTEM (DUNS) NUMBER, INCLUDING +4, EMPLOYEE IDENTIFICATION NUMBER 

(EIN) OR TAX ID.

Legal Sponsor Name: Huntsville International Airport

DUNS Number: 06-368-0789

EIN/Tax ID: 630379566

B. LIST THE NAME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING:

1. CITY OF HUNTSVILLE/HUNTSVILLE INDUSTRIAL DEVELOPMENT BOARD

2.____________________________________________________

3.____________________________________________________

4.____________________________________________________

C. PROVIDE THE FULL AIRPORT NAME AND 3-LETTER IATA AIRPORT CODE FOR THE 

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

SEEKING SERVICE).

1. Huntsville International Airport - HSV 2.

3. 4.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

D. LIST THE 2-DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING 

ORGANIZATION, AND IF A CONSORTIUM, TO EACH PARTICIPATING COMMUNITY.

1. 05 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

X Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

X Community (or Consortium member) previously received a Small Community Air 

Service Development Program Grant

If previous recipient: Year of grant(s): FY09, FY04

F. PUBLIC/PRIVATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

PUBLIC PRIVATE

1. City of Huntsville 1.

2. 2.

3. 3.

4. 4.

5. 5.

G. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

X Marketing Upgrade Aircraft X New Route

Travel Bank X Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

X Launch New Carrier X Start-up Cost Offset First Service

Study X Secure Additional Service Other (explain below)

H. EXISTING LANDING AIDS AT LOCAL AIRPORT:

X Full ILS Outer/Middle Marker X Published Instrument Approach

X Localizer Other (specify)
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

I. PROJECT COST: DO NOT ENTER TEXT IN SHADED AREA

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested $1,500,000

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds $2,000,000

3b Non-airport cash funds $500,000

3 Total local cash funds (3a + 3b) $2,500,000

4 TOTAL CASH FUNDING (1+2+3) $4,000,000

In-Kind contribution

5a Airport In-Kind contribution**

5b Other In-Kind contribution**

5 TOTAL IN-KIND CONTRIBUTION 

(5a + 5b)

6 TOTAL PROJECT COST (4+5) $4,000,000

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.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

K. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372

PROCESS?

a. This application was made available to the state under the Executive Order 12372 

Process for review on (date) _____________.

b. Program is subject to E.O. 12372, but has not been selected by the state for review.

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

L. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE 

EXPLANATION)

 X No Yes (explain) 

______________________________________________________________________________

______________________________________________________________________________

X
Table of Contents

Executive Summary __________________________________ 1

Air Service Overview__________________________________ 2

Air Service Needs and Deficiencies_________________________________ 2

Passenger Leakage ______________________________________________ 2

Top O/D Markets Not Served ______________________________________ 4

HSV Tops Highest Fares in the Nation ______________________________ 5

Historical Service _______________________________________________ 6

Efforts to Improve Air Service and Recapture Leakage Market __________ 7

Market Research _______________________________________________________ 7

Air Service Budget _____________________________________________________ 7

Promotional Campaigns and Programs (2010-2013)__________________________ 7

Strategic Plan _______________________________________ 8

Primary Goals:__________________________________________________ 8

Objectives: _____________________________________________________ 8

Plan Implementation and Funding _______________________ 9

Public/Private Partnership ________________________________________ 9

Funding Overview _______________________________________________ 9

Community and Airport Participation ______________________________ 11

Airport Marketing Program _____________________________________________ 11

Marketing Budget and Schedule _________________________________________ 11

Funding Assurances ____________________________________________ 13

Legal Sponsoring Entity _________________________________________ 13

Conclusion____________________________________________________ 13

Previous Grants ____________________________________ 14

Community Overview ________________________________ 15

Appendix A: Letters of Support _________________________ 19
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

Allegiant Air ___________________________________________________ 20

City of Huntsville, Mayor’s Office ___________________________________ 21

Madison County Commission _______________________________________ 22

Chamber of Commerce of Huntsville/Madison County ____________________ 23

Huntsville/Madison County Convention & Visitors Bureau_________________ 24

City of Athens, Mayor’s Office ____________________________________ 25

Limestone County Commission______________________________________ 26

Greater Limestone County Chamber of Commerce ______________________ 27

City of Decatur, Mayor’s Office _____________________________________ 28

Morgan County Commission _______________________________________ 29

Decatur/Morgan County Chamber of Commerce ________________________ 30

Decatur-Morgan County Convention and Visitors Bureau _________________ 31

City of Madison, Mayor’s Office_____________________________________ 32

Madison Chamber of Commerce ____________________________________ 33

North Alabama Mountain Lakes Tourist Association _____________________ 34
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

1

Executive Summary

Huntsville International Airport (HSV) serves an 18-county region, which encompasses 12 counties in North 

Alabama and six counties in South Central Tennessee. Passenger service is provided by four commercial 

airlines and serves almost 1.2 million customers annually. HSV sits almost equally distant to Nashville and 

Birmingham airports – both of which are served by Southwest Airlines. High fares at HSV continue to drive 

significant passenger volumes to neighboring Birmingham, AL (BHM) and Nashville, TN (BNA); HSV has 

maintained a position in the top eight of the highest fare airports in the country as stated by the Bureau of 

Transportation Statistics Domestic Air Fare report for the past five years. In 2012, HSV conducted a Leakage 

Study, showing HSV loses about 39% of its market. The primary markets that are recapturing HSV passengers 

are Birmingham, AL and Nashville, TN, with some leakage to Atlanta, GA, and Chattanooga, TN. Working with 

existing and potential carriers, the airport has attempted to address leakage.

After AirTran launched service, using funds from the 2010 grant, HSV’s leakage to other airports was 

recaptured and fares declined. In fact, HSV dropped as low as eighth on the BTS list of domestic air fares. HSV 

was one of 16 small communities that lost AirTran service due to the merger with Southwest and we began to 

see an increase in market leakage again.

To achieve considerable and long-term air service enhancement, HSV needs a sustainable air service program 

that is mutually beneficial for the community and the carriers. As a result on June 11, 2013, the board of 

directors adopted a new incentive program to offer airline incentives up to $2 million. This incentive can be used 

by multiple carriers, to offset current or future airport costs for a two-year promotional period, with the goal of 

promoting new passenger service which will reduce the number of passengers driving to other airports. The 

objective of the program is for the airlines to provide an innovative approach to reduce our leakage. The 

airline(s) must offer a program which can be readily advertised and substantially reduce the number of

passengers driving to alternate airports. The grant will supplement the Airport’s established incentive program

by offsetting the start-up/station costs and marketing costs. In addition, city leaders are committed to this grant, 

pledging more than $500,000 in cash from the community as a match to the proposed grant. 

Key attributes of program:

 Add new air service resulting in:

o Reduced leakage

o Increased competition

o Increased enplanements

o Reduced fares

Long-term success will be achieved through:

 Relieving initial start-up/station costs and marketing costs for new program

 Leveraging airport’s experience in timely and successful implementation of 2004 and 2010 

SCASDP grants

 Strong marketing plan and incentives to support new program

 Community support of $500,000
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

2

Air Service Overview

Air Service Needs and Deficiencies

The air service needs and deficiencies come from three main areas:

1. Significant leakage

2. Unserved markets 

3. Highest fares in the nation

Passenger Leakage

HSV passengers are primarily driving to BNA and BHM, however we are losing passengers to Atlanta and 

Chattanooga as well because they are able to obtain more competitive fares and non-stop destinations (see 

Exhibit 1). Very few communities share the unique geographical location that HSV has with low fare service 

from both Southwest Airlines and Frontier Airlines in close proximity of its airport. 

Exhibit 1: 2013 Airport Market Share of Huntsville Passenger Leakage

To measure drive traffic, a monthly analysis is conducted of cars registered in HSV’s 18-county service region

parked in the BHM and BNA airport parking lots (see Exhibit 2). The following chart is a sampling of the 

average number of cars, from the HSV service region, parked weekly in the BNA and BHM parking lots. A 

special survey is also conducted on holidays such as Thanksgiving and Christmas to specifically gauge 

leisure travel. As noted on Exhibit 2, with the presence of AirTran and non-stop service to BWI and MCO, our 

drive traffic declined. However, with the loss of AirTran and the non-stop service the drive traffic increased. 

The drive traffic trend usually corresponds with the passenger traffic at HSV.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

3

Exhibit 2: Huntsville Vehicle Tag Analysis

*Estimated yearend total number of vehicles for 2013

HSV has non-stop service to nine airports in eight cities (see Exhibit 3).

Exhibit 3: Current Air Service Map – July 2013
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

4

Top O/D Markets Not Served

Year-ending fourth quarter 2012 shows that more than 50% of HSV’s top 10 destinations are not currently 

served with non-stop service, with Baltimore and Orlando topping the list (see Exhibits 4 and 5). 

Exhibit 4: Top 10 O&D Markets Ranked by Passengers, YE4Q12

Rank Destination Annual 

Passengers

Currently Has Non-Stop 

Service?

1 Baltimore, MD 85,457 No

2 Washington, DC (National) 66,864 Yes

3 Orlando, FL 55,849 No

4 Los Angeles, CA 33,791 No

5 Houston, TX (George Bush Intc.) 30,333 Yes

6 Dallas, TX (Dallas/Ft Worth) 30,088 Yes

7 Boston, MA 28,031 No

8 Denver, CO 24,604 Yes

9 Charlotte, NC (Douglas) 24,386 Yes

10 Chicago, IL (O’Hare) 22,846 Yes

Source: DOT DB1B data via Diio Mi Internet-Based Aviation Data Tool as of YE 4Q12

Exhibit 5: Current Air Service Details, Scheduled for July 2013

Airline Destination Equipment Type Flights / Day Seats / Day

American Dallas/Fort Worth, TX Narrow-body Jet 3 320

American Chicago-O’Hare, IL Regional Jet 2 94

Delta Atlanta, GA Narrow-body Jet 5 665

Delta Atlanta, GA Regional Jet 4 215

Delta Detroit, IL Regional Jet 2 100

United Denver, CO Regional Jet 1 50

United Washington-Dulles, VA (IAD) Regional Jet 2 100

United Houston-Intercontinental, TX Regional Jet 3 150

United Chicago-O’Hare, IL Regional Jet 1 50

US Airways Charlotte-Douglas, NC Regional Jet 5 325

US Airways Washington-National, DC Regional Jet 2 138

US Airways Washington-National, DC Regional Jet 2 100

Source: Diio Mi Internet-Based Aviation Data as of 07/12/13
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

5

HSV Tops Highest Fares in the Nation

The latest Bureau of Transportation Statistics report shows HSV to be the highest fare airport in the country

for 3rd and 4th quarters of 2012, and in the 1

st quarter of 2013 (see Exhibit 6) while hovering in the top tier for 

the past five years. In fact, HSV’s average fare of $543 is 43% higher than the national average of $379 while 

HSV is 33% higher than BHM and 47% higher than BNA (see Exhibit 7).

Exhibit 6: Highest U.S. Domestic Average Itinerary Fares 1

st Quarter 2013

Note number on bar chart represents HSV ranking per quarter by BTS

Exhibit 7: Highest U.S. Domestic Average Itinerary Fares 1

st Quarter 2013

Source: Bureau of Transportation Statistics report ( 1

st Q2013) 

Methodology: Top 100 Airports* Based on 2013 U.S. Originating Domestic Passengers. Fares based on domestic itinerary fares, roundtrip or one-way for which no return is purchased. Fares are based on the total ticket value which consists of the price charged by the 

airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Fares include only the price paid at the time 

of the ticket purchase and do not include other fees paid at the airport or onboard the aircraft. Averages do not include frequent-flyer or 

“zero fares” or a few abnormally high reported fares. Not including Alaska, Hawaii or Puerto Rico.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

6

Passengers at HSV experience some of the highest fares with regards to walk-up fares (last minute fares). 

See sample of walk-up fares below (see Exhibit 8).

Exhibit 8: Sample Current Comparison of HSV Walk-up Fares 

HSV BNA BHM HSV Higher/Lower 

BNA/BHM (Average)

Washington-National, DC $1,762 $314 $936 $625 65%

Newark, NJ $1,020 $740 $350 $545 47%

Dallas/Ft Worth, TX $704 $372 $220 $296 58%

Baltimore, MD $616 $376 $356 $366 41%

Orlando, FL $544 $364 $410 $387 29%

Source: Sabre fare quotes pulled July 16, 2013 for travel outbound on July 16, 2013 and return July 19, 2013

Historical Service

HSV has experienced a change in traffic as the market has responded to changes in air service (see Exhibit

9). Low fare service and non-stop destinations have positively impacted passenger traffic. 

Exhibit 9: Enplaned Passengers – Past Five Years

Allegiant Air – May 2007 – October 2008

AirTran – May 2010 – August 2012

Source: Huntsville International Airport

628,306 

586,321 

624,037 

632,210 

595,272 

2008

2009

2010

2011

2012
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

7

Efforts to Improve Air Service and Recapture Leakage Market

Market Research

This community has been extremely active since 1995 in the pursuit of new air service and competitive 

airfares. Below is a list of such efforts.

Community Efforts

 Conduct Focus Groups, 1994 – Current

 Conduct Annual Passenger Survey, 1994 – Current

 Conduct Annual Drive Market Survey, 1998 – Current

 Conduct Monthly Car Tag Analysis, 1995 – Current

 Conduct Annual Drive Market Analysis, 1998 – Current

 Conduct Weekly Competitive Airport Fare Analysis, 1994 – Current

 Established Regional Partnership Council, 1991 – Current

 Established Business Travel Council, 1998 – Current

 Make Presentations to Existing Airlines, 1996 – Current

 Provide Start-up Incentives to Airlines for New Non-stop Service, 1996 – Current

 Created Incentive Program for Sister-city Fare Matching, 2000 – Current

 Applied for DOT Air Service Grants, 2003, 2004, 2006, 2010

 Recipient of DOT Grant and Created Huntsville Hot Ticket Program, 2004

 Conducted Campaign for US Airways Fare Reduction Program for 25 Cities from HSV, 2006

 Created Travel Assistant Program – Huntsville Hot Ticket Line, 2008

 Recipient of DOT Grant and Attracted AirTran, 2010

Air Service Budget

Annually, the Airport allocates about $782,000 to support air service efforts which includes airport staff, 

advertising, airline meetings, and marketing programs. Through the years the Airport has invested nearly $6 

million in waived airport fees, advertising campaigns and other concessions to incentivize new air service and

competitive fares. This grant request will not replace these funds but will be used to supplement our ongoing 

efforts.

Promotional Campaigns and Programs (2010-2013)

In addition to the items listed above, the Airport has created unique promotions and programs to serve both 

business and leisure travelers in our service region. 

 “Huntsville Hot Ticket and Travel Assistant Program” - A free information and ticket booking service 

provided through Huntsville International Airport. If passengers need help from a real person with 

questions about booking a ticket, group travel, or the latest airline rules and regulations, our Hot Line 

(256-258-1944) connects them directly to a travel specialist. This complementary service receives 

over 2,200 calls a month from passengers seeking assistance. 

 2010 DOT Grant for AirTran service to MCO and BWI – The 2010 grant was used to attract service to 

MCO and BWI by AirTran. The service was launched and impacted our community with an average 

50% reduction in fares to those markets, and BWI and MCO grew to our number one and two top 

destinations, respectively.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

8

Strategic Plan

The objective of the grant request is to fund start-up/station costs and marketing efforts for the airlines to 

provide programs that will reduce the number of passengers driving to alternate airports. The airline can 

be any carrier currently serving the market or a new entrant such as Allegiant Air, which has provided a 

letter of support with this application. The airline must offer a program which can be readily advertised 

and substantially reduce the number of passengers driving to alternate airports. The airline must 

implement a program that is mutually beneficial for the community at large for either leisure or business

travelers. This grant can be used to fund new programs by multiple airlines in our market. The $1,500,000 

grant supplemented with the $500,000 grant from the City of Huntsville will be used to offset the startup/station costs which could include but not limited to ground handling, salaries for new employees and 

marketing costs for any carrier that implements a program that reduces our passenger leakage.

Primary Goals:

The community has three chief goals for seeking a small community air service development grant and 

can be accomplished by the following plan.

1. Recapture leakage – prevent leakage from increasing and threatening existing service.

2. Increase enplanements in order to attract new service and maintain existing service.

3. Increase awareness of competitive fares at HSV as compared to competing airports.

Objectives:

1. Fund incentives (start-up/station costs - including but not limited to ground handling, employee 

salaries, marketing/promotional costs) for the airlines to implement programs that will create fare 

parity with competing airports. The programs are targeted at retaining HSV passengers in our 

service region, not attracting passengers from other areas.

2. Fund local marketing and promotional programs to create awareness of airline fare programs and 

competitive air fares. Our airport branding has suffered from the negative publicity with the BTS 

rankings thus creating a perception that low fares do not exist in our market. This marketing 

program will be crucial in helping retain our passengers.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

9

Plan Implementation and Funding

Public/Private Partnership

The City of Huntsville and the Huntsville Industrial Development Board have formed a partnership to 

provide financial support for air service development. They supported the 2010 grant and are partners 

with this application as well.

In addition, we have two active airport community support groups. These groups include the Regional 

Partnership Council and the Huntsville International Airport Business Travel Council. The Regional 

Partnership Council, formed in 1991, includes elected officials, chambers of commerce, tourism agencies 

and corporations from the 18-county service region of the airport. The Regional Partnership Council’s 

mission is to create an environment of ownership for the HSV facilities, to promote strong working 

relationships and to encourage information and resource sharing among the Tennessee Valley 

communities in the HSV service region. The Huntsville International Airport Business Travel Council 

assists the airport in air service development efforts and currently has 80 active members throughout the 

region.

Funding Overview

As detailed below, to secure service from our carriers the community is committing $500,000 in cash 

towards the start-up/station costs and marketing costs, while the airport will pledge up to $2,000,000 in 

incentives. On June 11, 2013 the HSV board of directors adopted new incentives for the air service 

development program (section 10) in the Statement of Policy, Regarding Airlines Use and Occupancy of 

Airport Facilities - FY2014.

Section 10

Air Service Development Program

The Authority has instituted an incentive program for Airlines willing to start new service from the Airport. 

The Authority will consider modifying the incentives or granting new incentives for proposals from Airlines 

which will advance the Authority’s goal of promoting new passenger service to a greater number of 

destinations, service which will reduce the number of passengers driving to other airports from the 

Airport’s service area and cargo service which will promote international air commerce. The Executive 

Director shall have the authority to modify existing incentives and implement new incentives promoting 

the stated goals. Any new or modified incentives will be offered to all air carriers. The incentives 

amounts stated below are generally available to the first Airline or Airlines to qualify for the passenger 

incentives and for the cargo incentive respectively. The manner in which the said amounts are utilized 

and distributed shall be at the sole discretion of the Authority and will be documented in an agreement 

with each qualifying Airline.

A. Passenger Service Incentives

The Authority is amenable to granting new incentives for proposals from Airlines which increase 

enplanements at the Authority by reducing the number of passengers driving from the Airport 
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

10

service area to other airports. The amount of any such credit, to be determined in the Authority’s 

sole discretion, will be based on the increased numbers of passengers taking advantage of the 

proposed service. In order to qualify for an incentive an Airline must offer a program which can be 

readily advertised and which substantially reduces the number of passengers driving from the 

Airport’s service area to other airports. To qualify for such an incentive an Airline must provide a 

detailed written proposal which results in a written agreement entered into by the Airlines and the 

Authority. The maximum amount of all incentives available from the Authority for Air Carrier 

Airlines for Fiscal Year 2014 is TWO MILLION AND 00/100 DOLLARS ($2,000,000).

Thus HSV is requesting a $1,500,000 grant to supplement local start-up/station costs and marketing 

costs.

Community Airport DOT

Total

Fund Uses Cash In-Kind Cash In-Kind Grant

Marketing $500,000 $500,000

Incentives $2,000,000 $2,000,000

Start-Up/Station

Costs $500,000 $1,000,000 $1,500,000

Total $500,000 $2,000,000 $1,500,000 $4,000,000
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

11

Community and Airport Participation

Community Participation

The community participation will include $500,000 towards the program(s) from HSV.

Airport Marketing Program

HSV will implement a comprehensive marketing campaign surrounding new programs at the airport, 

including:

 Traditional Media Coverage

o Host roll-out media event

o Disseminate national news wire coverage for launch of service

o Visit regional talk shows and editorial boards to discuss service

o Keep new service continuously in the news throughout 18-county service region (print, 

TV, radio, online) 

 Social Media Exposure

o Mention weekly the new service across HSV social media channels

o Build exclusive social media campaign surrounding new service

o Host social media contests for airline voucher giveaways

o Cross promote service with corporate and community social media streams 

o Educate local and travel bloggers to generate articles on new service

o Feature new service on HSV blog

 Direct Marketing

o Sponsor $50,000 in airline voucher giveaways through Huntsville Hot Ticket 32,000 

membership

o Advertise monthly in Huntsville Hot Ticket enewsletter and website

o Advertise in baggage claim area and along the terminal at HSV

 Community Outreach

o Develop and distribute marketing materials to Chambers of Commerce, corporations, 

tourism agencies and travel agents in 18-county service region

o Distribute giveaways promoting the new service at tourism information booths

o Feature service in all speaking engagements and tours (approximately two per month)

o Attend and promote service at large-scale community events

o Engage community and business leaders to be ambassadors for the new service

o Solicit feedback from passengers on service quarterly to determine services’ 

effectiveness

Marketing Budget and Schedule

Exhibit 10 contains a detailed marketing plan to launch the program to reduce drive traffic.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

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Exhibit 10: Marketing Plan
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

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Funding Assurances

HSV will be the coordinator between the public/private partners for the DOT grant. As well, HSV will take 

responsibility for the grant funds. 

Legal Sponsoring Entity

Huntsville-Madison County Airport Authority 

(Huntsville International Airport – HSV)

1000 Glenn Hearn Blvd., Box 20008

Huntsville, AL 35824

Contact: Richard Tucker, Executive Director, 256-258-1955

Conclusion

Per the DOT order soliciting Small Community Air Service Development Program proposals, Huntsville 

International Airport should be given priority consideration for this grant by having met the criteria as set 

forth in the order soliciting proposals as follows:

1. BTS reports HSV has the highest average air fares in the country – 43% higher than the 

national average; and 

2. The community will provide 25% of the cost of the program; and

3. The City of Huntsville and the Huntsville Industrial Development Board is a public-private 

partnership formed to initiate programs with the carriers to improve air fares and substantially 

reduce the number of passengers driving from the airport service area to other airports.

4. This grant will provide material benefits to a broad segment of the traveling public including 

businesses, educational institutions, and other enterprises.

5. This grant will be used within a two-year period upon receipt of the award and carrier 

agreement to provide program/service as described above. The project timeline will include 

one year for finalizing agreements with the carriers. The next phase will include the 

announcement of the program/service, start of program/service and then the marketing 

campaign. It is anticipated that the payout, to the carrier(s) will happen on a monthly basis.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

14

Previous Grants

The current DOT grant application represents a new project and is not concurrent with the 2004 or 2010 

grants. The new grant is justified based on the service deficiencies out of HSV and the grant would go 

towards off setting start-up risks and station costs for new or incumbent carriers.

2004

The 2004 grant was for funding to build a “fare alert” email marketing system – Huntsville Hot Ticket. We 

have been able to highlight “hot fares” for top destinations and provide information on airline low fare 

weekend getaways. The development and implementation of the Huntsville Hot Ticket system and site 

went very well; and the program developed in a timely manner (3Q 2005) and within budget. As well, we 

supplemented the program four years later with a Huntsville Hot Ticket Line (256-258-1944) to assist 

passengers – at no cost to them – in finding hot fares and deals in and out of Huntsville. The 

infrastructure created for Huntsville Hot Ticket is still utilized today for direct marketing to nearly 32,000 

people. 

2010

The 2010 grant was funding for a revenue guarantee for low cost non-stop service to Orlando and 

Baltimore. AirTran announced service and once the service was added our fares to MCO and BWI 

decreased on average 50%, as well these two markets rose to the number one and number two 

destinations out of HSV. AirTran’s service was so successful our BWI passenger market grew 134% and 

MCO grew 31%. During AirTran’s presence HSV moved as low as number eight, on the air fare list, as 

ranked by the BTS. When Southwest merged with AirTran, HSV was one of 16 small communities that 

lost their AirTran service, thus bringing our market full circle with the loss of non-stop service and the 

climb back to the highest air fares in the U.S.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

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Community Overview

The Huntsville Metropolitan Area continues to gain recognition as a “community 

hot bed” to live, work and play. Below is a partial list of recognitions:

Huntsville/Madison County, Alabama, is geographically near the center of the southeastern United States with 

more than 430,000 people in the Metro area. Madison County and its surrounding counties form a thriving 

regional market with a population of more than one million people. This metro area has strong growth in 

population, employment, annual pay and labor force (see Exhibit 11). The Huntsville community serves as the 

primary economic engine for the northern Alabama and southern Tennessee region. Since the early 1950s, 

Huntsville has been one of the nation’s principal centers for space and defense technology. Home to the work of 

Dr. Wernher von Braun and America’s rocket development programs, the Huntsville community and Redstone 

Arsenal became the location of choice for the country’s best and brightest aerospace engineers and scientists. 

Rocket City USA, as the region was known, gave original meaning to the term “rocket science.” The strong 

economic base of this community requires connectivity to the world at competitive fares.

Exhibit 11: Metro Area Growth

Source: Chamber of Commerce of Huntsville/Madison County

Madison named one of Family 

Circle's 10 Best Towns for 

Families

June 2013

Huntsville named 2013 

Playful City USA

May 2013

Huntsville named one of 10 

great places to be inspired by 

innovation

April 2013

Alabama rated #2 state for 

small business friendliness

April 2013

Huntsville named among the 

nation's Top 20 strongest 

economies

April 2013

Huntsville named among 

Metro Magnets Index 

"Fastest Growing U.S. 

Cities”

November 2012

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0% 25.3%

11.1%

29.0%

14.0%

Metro Area Growth

2000 - 2012
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

16
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

17
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

18
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

19

Appendix A: Letters of Support

1. Allegiant Air

2. City of Huntsville, Mayor’s Office

3. Madison County Commission

4. Chamber of Commerce of Huntsville/Madison County

5. Huntsville/Madison County Convention & Visitors Bureau

6. City of Athens, Mayor’s Office

7. Limestone County Commission

8. Greater Limestone County Chamber of Commerce

9. City of Decatur, Mayor’s Office

10. Morgan County Commission

11. Decatur/Morgan County Chamber of Commerce

12. Decatur-Morgan County Convention and Visitors Bureau

13. City of Madison, Mayor’s Office

14. Madison Chamber of Commerce

15. North Alabama Mountain Lakes Tourist Association
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

20

Allegiant Air
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

21

City of Huntsville, Mayor’s Office 
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

22

Madison County Commission
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

23

Chamber of Commerce of Huntsville/Madison County
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

24

Huntsville/Madison County Conve ntion & Visitors Bureau
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

25

Cit y of Athens, M ayor’s Office
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

26

Limestone County Commission
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

27

Greater Limestone County C hamber of Commerce
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

28

City of Decatur, Mayor’s Office
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

29

Morgan County Commission
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

30

Decatur/Morgan County C hamber of Commerce
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

31

Decatur-Morgan County Convention and Visitors B ureau
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

32

City of Madison, Mayor’s Office
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

33

Madison C hamber of Commerce
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2013

34

North Alabama Mountain Lakes Tourist Association