APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT-OST-2014-0133 

SUMMARY INFORMATION1

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: 

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

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

1.____________________________________________________ 

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. 2.

3. 4.

 

1 Note that the Summary Information does not count against the 20-page limit of the SCASDP application.
DOES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY 

THE FEDERAL AVIATION ADMINISTRATION UNDER 14 CFR PART 139? (IF “NO”, PLEASE 

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

APPLICATION UNDER PART 139 IS PENDING.) 

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________ 

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

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

1. 2.

3. 4.

E. APPLICANT INFORMATION: (CHECK ALL THAT APPLY) 

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

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

Service Development Program Grant

If previous recipient: Provide year of grant(s):_______________________________; and, 

the text of the grant agreement section(s) setting forth the scope of the grant project:

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

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

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.
G. PROJECT PROPOSAL:

 1. GRANT GOALS: (CHECK ALL THAT APPLY) 

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services2

Other (explain below)

2. FINANCIAL TOOLS TO BE USED: (CHECK ALL THAT APPLY) 

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

Start-up Cost Offset: offsetting expenses to assist an air service provider in setting up a 

new station and starting new service (for example, ticket counter reconfiguration)

Revenue Guarantee: an agreement with an air service provider setting forth a minimum 

guaranteed profit margin, a portion of which is eligible for reimbursement by the 

community 

Recruitment of Air Carrier: air service development activities to recruit new air service, 

including expenses for airport marketers to meet with air service providers to make the 

case for new air service

Fee Waivers: waiver of airport fees, such as landing fees, to encourage new air service; 

counted as in-kind contributions only 

Ground Handling Fee: reimbursement of expenses for passenger, cabin, and ramp (below 

wing) services provided by third party ground handlers 

Travel Bank: travel pledges, or deposited monetary funds, from participating parties for 

the purchase of air travel on an air carrier, with defined procedures for the subsequent use 

of the pledges or the deposited funds; counted as in-kind contributions only 

 

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing 

plan, study, air carrier proposal, etc.
Other (explain below) 

______________________________________________________________________________ 

______________________________________________________________________________ 

H. EXISTING LANDING AIDS AT LOCAL AIRPORT: 

Full ILS Outer/Middle Marker Published Instrument Approach 

Localizer Other (specify)

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

LINE DESCRIPTION SUB TOTAL TOTAL AMOUNT

1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non-airport cash funds

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

4 TOTAL CASH FUNDING (1+2+3)

In-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)

J. IN-KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), please 

describe the source(s) of fund(s) and the value ($) of each.
K. IS THIS APPLICATION SUBJECT TO REVIEW BY AN AFFECTED 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 LEAD APPLICANT OR ANY CO-APPLICANTS DELINQUENT ON ANY FEDERAL DEBT?

(IF “YES”, PROVIDE EXPLANATION) 

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________ 

APPLICATION CHECKLIST

INCLUDED? ITEM

For Immediate Action

Determine Eligibility

New Grants.gov users must register with www.grants.gov.

Existing Grants.gov users must verify existing www.grants.gov account has not expired 

and the Authorized Organization Representative (AOR) is current.

For Submission by 5:00 PM EDT on July 31, 2014

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate 

existing grant in order to be eligible for selection in FY2014 

Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov

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

Application of up to 20 one-sided pages (excluding any letters from the 

community or an air carrier showing support for the application), to include:

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

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

• A detailed description of the funding necessary for implementation of the 

community's project. 

• An explanation of how the proposed project differs from any previous projects 

for which the community received SCASDP funds (if applicable). 

• Designation of a legal sponsor responsible for administering the program.

• A motion for confidential treatment (if applicable) – see Appendix D below.



Docket: DOT-OST-2014-0133

Before the Office of the Secretary of Transportation

US Department of Transportation

Proposal for

SMALL COMMUNITY AIR SERVICE

DEVELOPMENT (SCASD) Grant

Victoria Regional Airport

Victoria, Texas

July 2014

prepared by:

County of Victoria, Texas

Victoria Regional Airport FY 2104 SCASD Grant Proposal

- i - 7/31/2014

TABLE OF CONTENTS

Proposal for 

Small Community Air Service Development Grant

Victoria Regional Airport (VCT)

Standard Form 424

SCASD Grant Proposal Application (Cover Sheet)

Introductory Letters of Support

Executive Summary .........................................................................................................................................................ES-1

1. Regional Setting ................................................................................................................................................................1

2. Existing Air Service......................................................................................................................................................... 3

3. Community Air Service Needs.................................................................................................................................... 4

4. Air Service Development Initiatives ....................................................................................................................... 5

5. Strategic Planning ........................................................................................................................................................... 6

6. Proposed Marketing Program.................................................................................................................................... 7

7. Proposed Program Budget .......................................................................................................................................... 9

8. Sustained Marketing Efforts......................................................................................................................................10

9. Previous SCASD Grant ................................................................................................................................................ 10

10. Legal Sponsor................................................................................................................................................................. 11

Appendix A Supporting Documentation
Victoria Regional Airport FY 2014 SCASD Grant Proposal

ES-1 7/31/2014

Executive Summary

Victoria Regional Airport (VCT) serves Victoria, Texas and six surrounding counties. The Airport has 

had commercial air service for more than 40 years. Victoria Regional Airport is part of the 

Department of Transportation’s Essential Air Service (EAS) Program and depends upon available 

funding to maintain its vital connection to the national air transportation system. Although the local 

and regional economy has been rapidly expanding in the industrial and manufacturing sectors, 

passenger traffic has declined significantly over the past 18 months. Despite the region’s economic 

growth, VCT has actually experienced a notably substantial decrease in monthly passenger traffic.

 

Passenger activity levels have deteriorated significantly due to a poor quality of service compounded 

by factors including aircraft equipment (non-pressurized, piston-engine, single pilot operation), 

baggage limitations, and all-to-frequent non-weather flight cancellations. These circumstances have 

severely impacted the number of passengers flying into and out of the Victoria Regional Airport 

(VCT), forcing over 97% of the available passenger traffic to drive hours to and from other 

surrounding airports. The resulting drop in passenger enplanements puts VCT at risk of being 

eliminated from the Essential Air Service Program in its entirety if it stays on the current course. 

The situation has forced the airport’s governance to make a radical shift in its approach to providing 

an adequate level of air service to meet the known existing demand of the region’s traveling public. 

Beginning in late 2014, the airport is changing air carriers and initiating higher quality regional air 

service, connecting Victoria to new hub destinations including Austin and Dallas-Ft Worth. Taking 

advantage of the Alternate Essential Air Service (AltEAS) program, Victoria will assume a greater 

hands-on role toward controlling and managing air service, with funds directly received from DOT 

which can be used to incentivize the airport’s new air service provider. This change is expected to 

provide the platform for dramatically improving the utilization of air service both for the region’s 

travelers and for visitors alike.

Changing air carriers to provide a higher level of service in equipment, and destination(s) to better 

meet the demands of the traveling public is imperative. The challenge now lies in how to get the 

message out to recapture lost market share to slash an incredibly high leakage rate of 97%. Our 

urgent need is to get those passengers to use VCT again.

To help re-introduce travelers to the improved equipment, new schedules, and destinations available 

as a result of the shift to AltEAS, the County of Victoria is seeking $100,000 in federal funds from the 

Small Community Air Service (SCASD) Program to develop and implement a comprehensive 

marketing program. If granted, the County intends to use the SCASD funds (in addition to $50,000 of 

its own funds plus $15,000 in in-kind services) to conduct an aggressive and sustained television, 

radio, print, and social media marketing campaign to recapture what was until recently, a growing 

number of passengers using the airport. The target audience will be focused on the business 

community, not just locally, but also toward industry and leisure travel representatives in who 

regularly visit the region.

The marketing program will be specifically designed to provide a clear, consistent, and ubiquitous 

message to shift the negative perceptions away from the Airport’s former air service and toward 

interest and a willingness to try the new service to new destinations. Successful implementation of 

the marketing program will be measured by a rapid and significant growth in enplanement levels, 

indicating that more travelers are utilizing the new service and are satisfied with the improvements 

in reliability, equipment, schedule, and destination choices.
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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1. Regional Setting

Victoria Regional Airport is a non-primary commercial service airport located five miles northeast 

of the city of Victoria. The Airport has three runways, modern passenger terminal and an Air Traffic 

Control Tower. The primary runway, Runway 12L/30R is 9,101 feet long and is enhanced by a 

precision instrument landing system (ILS). Runway 12R/30L is parallel to the primary runway and 

is 4,643 feet long and Runway 17/35 is 4,899 feet in length. 

The region served by the Victoria Regional Airport consists of Victoria County and six adjacent 

counties as depicted in Figure A.

 

Figure A

Regional Area

Table 1 presents recent population trends for the regional area.

Table 1

Regional Population Estimate

County 2010 2011 2012

Calhoun 21,357 21,442 21,609

DeWitt 20,096 20,255 20,465

Goliad 7,232 7,243 7,351

Jackson 14,074 14,032 14,255

Lavaca 19,267 19,347 19,468

Refugio 7,362 7,291 7,259

Victoria 86,846 87,545 89,269

TOTAL 176,234 177,155 179,676

Source: Source: U.S. Census Bureau
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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As Table 1 indicates, Victoria County is the largest and fastest growing county (2 percent annually) 

among the seven. The regional area is located roughly equidistant (1.5-2 hour drive) between 

Houston, Austin, San Antonio, and Corpus Christi. Figure B illustrates the relative location of 

Victoria to the surrounding major metropolitan areas. This location represents the situation where, 

as with other small communities, some levels of passenger leakage to the airports of these major 

cities can be expected.

Regional employment has also been increasing in recent years, driven by opportunities from 

expanding and new manufacturing firms. Table 2 lists the top 10 major manufacturing employers 

in Victoria County, average employment levels, and their representative industry sectors.

Table 2

Regional Manufacturing Employment

Company Employment Industry Sector

The Inteplast Group 2,300 Plastic Products

Formosa Plastic 1,800 Petrochemical / Plastics

ALCOA 650 Aluminum / Alumina

INVISTA 600 Petrochemical

DOW – Seadrift Operations 564 Petrochemical

Caterpillar – NAHEX 

Victoria

510 Heavy Excavators

Kaspar Wireworks 430 Metalworks/Plating

Mount Vernon Textiles 267 Textiles

Berry Plastics 180 Plastics

Seadrift Coke 157 Needle Coke

Fordyce Holdings Inc. 142 Sand & Gravel

INEOS Nitriles 125 Petrochemical

Source: Victoria Economic Development Corporation

Figure B

Competing Airports
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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Among these private sector employers, the largest are in the petrochemical industry. While 

economic indicators point toward growth for this strategically important sector, the community’s 

ability to maintain and nurture this segment of the economy will be based in no small part on the 

availability of viable air service.

2. Existing Air Service

In July 2012, Sun Air Express, LLC dba Sun Air International was selected to provide Essential Air 

Service at Victoria with an annual subsidy of $2,294,000. The EAS service was to include four 

weekday and four weekend nonstop round trips for a total of 24 flights per week a week to George 

Bush Intercontinental Airport (IAH) for the 2012-2014 period. Sun Air specified the use of a ninepassenger, piston twin-engine Piper Navajo aircraft operated with a single pilot. 

Sun Air initiated service in October 2012 shortly after the airport experienced a complete cessation 

of air service for the previous 90 days. Subsequent to Sun Air’s startup, monthly enplanements have 

averaged less than half of previous enplanements. This is partly the result of Sun-Air’s use of an 

unpressurized piston engine aircraft to serve the VCT-IAH market which may preclude many 

business travelers from flying into or out of the airport because of personal preferences, corporate 

policy, or other restrictions. Table 3 illustrates the historical pattern of monthly enplanements for 

the 2011-2014 period.

Table 3

VCT Monthly Enplanements

2011-2014

Month 2011 2012 2013 2014

 Jan 330 412 275 188 Colgan (Jan 2011 – Jun 2011)

 Feb 293 428 206 145 Colgan (Jul 2011 – Jun 2012)

 Mar 381 537 298 211 Sun Air (Oct 2012 – Jun 2014)

 Apr 389 526 294 212 

 May 482 533 316 241 

 Jun 477 485 321 233 

 Jul 515 - 271 

 Aug 505 - 280 

 Sep 457 - 244 

 Oct 474 221 249 

 Nov 469 337 201 

 Dec 396 293 235 

Total 5,168 3,772 3,190 1,230

Average 431 n/m 266 205

Notes: 

a. Cessation of air service Jul – Sep 2012 due to Pinnacle/Colgan bankruptcy

b. Average monthly enplanements for 2012 based on six months data
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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As Table 3 illustrates, monthly enplanements since Sun Air initiated service have never approached 

the previous averages by Colgan. Currently, under these conditions, Victoria Regional Airport is at 

risk of being eliminated from the Essential Air Service program. Under the rules of the EAS 

program, VCT must maintain a minimum average of 10 enplanements per day. Since Victoria 

Regional Airport became part of the EAS program, passenger enplanements have well exceeded 10 

passengers per day for all of the years previous to 2013. Beginning in FY 2012, enplanements have 

periodically dropped below 10 and continue to remain close to the minimum requirement.

EAS proposals were solicited for the July 2014 – June 2016 period and two proposals were 

received. Sun Air proposed a continuation of its use of the single pilot, nine-passenger piston twinengine aircraft to serve VCT with flights to IAH. Another airline proposed the use of a single-engine, 

single pilot, nine-seat turbine aircraft. Both proposals were ultimately rejected by the County, 

primarily due to the corporate travel restrictions. Sun Air’s poor flight completion performance and 

baggage limitations, both which have contributed to the failing business travel at VCT, was cited as 

rationale for the rejection of their proposal. 

In lieu of soliciting new EAS proposals, the County elected to request entrance into the Alternate 

Essential Air Service program which allows them to partner directly with an air service provider an 

negotiate for the most suitable equipment, schedule, and destination(s) to most closely match 

business travel demands.

3. Community Air Service Needs

The most recent air service study for Victoria Regional Airport was completed in 2012. The report 

identified the regional catchment area which has a population of 228,700 based on an area 

consisting of 37 zip codes.

The most disturbing finding of the report is that only three percent (3%) of the regional 

catchment area travelers used VCT. Forty-two percent diverted to IAH, 27 percent to AUS, 15 

percent to SAT, 11 percent to HOU and two percent to CRP. This suggests that most all Victoriabased or -bound business travelers are forced to drive 1.5 - 2 hours each way through one of the 

surrounding airports. 

The study also indicated that the true air service market for Victoria is estimated at over 300,000 

annual origin and destination passengers or 413 passengers daily each way. Domestic travelers 

accounted for 258,000 (86 percent) of the total true market while international travelers made up 

the remaining 42,000 passengers (14 percent).

Among the true market travelers, 64 percent (165,900) passengers were destined to/from one of 

the top 25 origination/destination markets. Dallas (DAL) was the number one destination with five 

percent of passengers however, VCT retains only one percent of passengers to Dallas (DAL). The 

next largest markets were: Newark (NYC), Denver, Philadelphia, and Las Vegas with retention rates 

of four, three, two, and one percent, respectively.
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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The failure to capture more of the local air travel market demand can be attributed to one of two 

basic reasons; (1) lack of knowledge that local commercial air service is available or, (2) 

unwillingness or inability to use the local commercial air service. Visitors to the region may not be 

aware that there is local service or assume no air service is available. On the other hand, travelers 

who know that there is available air service are not willing or through corporate policies, may not 

be able to use the service. Many corporations have policies that prohibit personnel travel on nonturbine aircraft, single pilot operations, and/or other such restrictions.

Over the past 18 months, VCT air service has been limited to non-stop service to IAH, with four 

flights daily using a Piper PA-31 Navajo. The aircraft is flown with only one pilot on board and is 

configured for nine seats, one of which includes the right seat in the cockpit. The Navajo is an 

unpressurized twin-engine piston-driven aircraft and has limited baggage capacity, particularly if 

one or more passengers check in with full-size luggage. 

With the drastic reduction in passenger enplanements since the introduction of the most recent 

EAS service at Victoria Regional Airport, it became readily apparent that an urgent need to make 

radical adjustments was necessary in order to preserve the ability for travelers to connect to the 

national air transportation system and attempt to rebuild the passenger traffic levels. This led to 

the County rejecting proposals for renewing the existing EAS services and requesting entry in the 

Alternate EAS program. The primary emphasis of the Alternate EAS for VCT was to bring back a 

two-pilot turbine twin-engine aircraft with 19 seats and standard baggage capacity. Also, in order 

to recapture more of the latent air service market locally, non-stop service to Houston would be 

abandoned in favor of commercial air service to the Dallas area with an intermediate stop in Austin.

This service is expected to begin in October and there will be an immediate need to educate the 

catchment area of the availability and benefits of the new service. The proposed marketing program 

will accomplish this and will also serve to encourage previous travelers to return to VCT for their 

air travel needs.

4. Air Service Development Initiatives

As demonstrated in Table 3, scheduled air service at Victoria Regional Airport has struggled in 

recent years. The performance of its Essential Air Service (EAS) has diminished to a point where it 

is in danger of being no longer sustainable regardless of the approved subsidy levels. The current 

air service provider uses an unpressurized piston twin-engine aircraft that has proved to be 

unpopular (and in some cases unusable) with business travelers. On-time performance, single pilot 

operation, baggage limitations, and maintenance cancellations have reached a level that has 

severely reduced confidence in the ability for travelers to make connections at IAH. Since October 

of 2012, average monthly passenger enplanements have dropped to represent only 53% of 

previous monthly activity.

In 2012, the bankruptcy of Pinnacle Airlines as parent of Colgan, resulted in Victoria without any air 

service for a period of three months during the peak summer season. The loss of momentum was 

compounded by the hurried rebid of EAS service during the hiatus and with only two respondents, 

the County accepted the only proposal that included the use of a twin-engine aircraft. 
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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Unfortunately this led to an immediate and significant reduction in passenger enplanements and 

traffic has not recovered.

The County solicited new proposals for the VCT-IAH EAS service in May 2014 and again, only two 

bids were received, one by the incumbent provider with no material changes in its current service 

and another by the previous proposer with a single engine turbine aircraft. The County rejected 

both proposals and without any other air service providers willing to bid on VCT’s EAS, the County 

was led to seek entry into the Alternate EAS program. The Alternate EAS program appears to offer 

greater flexibility and leverage in negotiating for the air service the Sponsor needs by taking 

responsibility for the contracting directly with an air service provider. Funds for the local AltEAS 

program come from the DOT budget for EAS as a grant for two years. Any capacity, performance or 

other air matters become the responsibility of the Sponsor. If local air service fails under the 

AltEAS program, the Sponsor can seek to re-enter the traditional EAS program but without any 

assurance that EAS will resume in a timely manner.

The County has elected to accept that responsibility and after soliciting proposals has submitted a 

proposal to DOT by Public Charters, Inc., as its AltEAS air service provider. Public Charter proposes 

to use a pressurized twin-engine turbine aircraft with two pilots and standard baggage capacity to 

provide direct service to Austin, the state capital with a continuing flight to the Dallas – Ft. Worth 

International Airport.

The service will consist of one round trip per day (excluding Sundays) between Victoria and DallasFt. Worth International Airport (DFW) with an intermediate stop on both the outbound and return 

legs at Austin (AUS). In addition, on the busier travel days of Monday, Wednesday, and Friday, the 

airline proposes to operate a second round trip between VCT and AUS. Under this schedule, the 

Airport would receive a total of 30 flight segments per week: 24 with the VCT-AUS-DFW-AUS-VCT 

routing and six with the VCT-AUS-VCT routing. Table 4 illustrates the proposed schedule for the 

new AltEAS service.

As the table indicates, the air service will improve primarily in terms of connections to Austin 

where Southwest Airlines has a major presence and on to DFW, a major American Airlines hub, the 

early morning schedule provides access to the morning bank of connecting flights. It is expected 

that the return of a 19-seat turbine aircraft to the Victoria market will serve as an acceptable 

aircraft to begin attracting business travelers back using the airport.

5. Strategic Planning

The goal of the SCASD proposal funding is to increase traveler usage of the Victoria Regional 

Airport. This will be accomplished by aggressively promoting the traveling public’s awareness of 

the Airport’s new approach to providing air service through the DOT’ s Alternate Essential Air 

Service program. The AltEAS program provides the Airport with greater flexibility and control of 

the air service provider’s performance by directly negotiating for the desired equipment, schedule 

and city-pair routes.
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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Once the marketing program is in place, community support through local businesses and industry 

is expected to provide additional awareness of the availability of the air service schedule and 

connections. With additional patronage, the airport’s operating revenues are expected to increase 

which can in turn be used to provide additional resources to enhance the air service.

Also, during the FY 2015-2016 period, the Airport will also be developing an update of its Master 

Plan which will include a strategic planning element to investigate and evaluate specific 

recommendations for enhancing air service among other issues. 

6. Proposed Marketing Campaign

The County is seeking the Small Community Air Service Development (SCASD) Grant in order to 

provide financial support for marketing and advertising to introduce and promote the new 

Alternate Essential Air Service program to the travelers “lost” over the past several years. It will 

take a concerted effort to educate corporate and business travelers about the availability of (1) 

aircraft that meet the requirements of large corporate business travelers, (2) aircraft large enough 

to accommodate nearly all typical baggage sizes, (3) enhanced reliability, (4) service between more 

meaningful city-pairs (VCT-AUS-DFW) and, (5) better customer experience.

While marketing to the local air service catchment area will be important, innovative methods to 

reach business visitors will be employed to deliver the message that “you can get here from there”. 

The fundamental competition for the County’s AltEAS program is the value of time. The time and 

associated expenses for a business traveler (rental car, fuel, parking, etc.) as they drive from 

neighboring large airports (IAH/HOU/AUS/SAT) to visit the area and by local business travelers’ 

drive to those airports will be key points in the campaign to convince business travelers there is a 

better way to VCT. 

Table 4

Proposed Air Service Schedule

Daily

Departs Arrives Time

VCT 6:00 AM AUS 6:35 AM 0.6

AUS 7:05 AM DFW 8:10 AM 1.1

 DFW 12:30 PM AUS 1:35 PM 1.1

 AUS 2:05 PM VCT 2:40 PM 0.6

Monday/Wednesday/Friday Only

Departs Arrives Time

VCT 3:30 PM AUS 4:05 PM 0.6

AUS 4:35 PM VCT 5:10 PM 0.6
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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With the support of advertising and marketing provided by the SCASD grant, the County expects to 

see a rapid and significant increase in passenger levels. Ultimately, the County hopes that the 

increased enplanements from such a marketing and advertising campaign will, in the future, reduce 

the reliance on the Essential Air Service (EAS) program subsidies for the VCT market. The longterm goal under a sustained marketing program will be to enhance use of the airport to a level 

where the community’s Essential Air Service funding is no longer required.

The County has plans for a wide-ranging marketing campaign, to include radio and television media 

spots, billboard, and print advertising, travel and tourism events, along with special promotions, 

contests, and other means to enhance awareness of the commercial air service at the Airport. The 

County is seeking $100,000 in federal funds, to be coupled with $50,000 in local funds and $15,000 

in in-kind services, to leverage the scope and range of the marketing program. The marketing 

campaign will be conducted over a 12-to-18 month period with another six months of residual 

effects of the program. The County expects that it will receive additional in-kind donations from 

local media companies to support the program as well, which could benefit the program even more.

Upon receipt of the grant, the County is prepared to engage a professional marketing firm to help 

develop a branded concept for the new service. This will be followed by with the roll-out of a 

comprehensive marketing and advertising placement plan, which will include strategic media buys 

on local and regional radio and television stations. In addition, coordinated buys with local 

newspapers, magazines, and other print media will focus on educating the traveling public about 

the new AltEAS service schedules and destinations. 

While the marketing campaign will be focused on attracting back “lost” patronage from the 

immediate business and industrial community of Victoria, it will also have an outreach component 

that targets frequent visitors calling on the region’s businesses. This will take the cooperation of 

corporate travel planners to help identify the opportunities, needs, and specific issues that may 

otherwise impede the use of VCT’s commercial service. 

Other types of marketing efforts anticipated using the SCASD grant funds will include:

- Links to the carrier’s and airport’s website for booking flights from other local and regional 

websites (click-throughs)

- Billboards along common routes targeting local and visitor passengers using the larger 

airports

- Social media presence with passive and push messages (Email, Facebook, Twitter, etc.)

- Passenger demographic and surveys with participation incentives

- Branded merchandise, giveaways, and other marketing tools.

The centerpiece of marketing campaign will be promote the flexibility of the Alternate Essential Air 

Service program and the opportunities it provides to improve customer satisfaction from several 

facets. It is anticipated that this will be manifested primarily by numerous testimonials, good news 

stories and the County’s ability to demonstrate to the traveling public that its airline service is 

dependable, affordable and “gets you where you want to go, when you want to go”.
Victoria Regional Airport FY 2014 SCASD Grant Proposal

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7. Proposed Project Budget

As stated earlier, the County is seeking $100,000 in federal funds which will be leveraged with 

$50,000 in local funds and $15,000 of in-kind services to develop and implement an aggressive 

marketing campaign to be conducted over a 12-to-18 month period. Table 5 presents the proposed 

budget for these funds. The specific budget amounts are subject to change based upon media buy 

discounts and packages available at any given time and/or through the marketing firm.

The County has committed the $50,000 in local funds for the grant which will be supplemented 

with the $5,000 pledged as in-kind services donated by the Victoria Chamber of Commerce (see 

attached letter of support). It is expected that local television, radio, and print media outlets will 

contribute a minimum of an additional $10,000 as they have done in the past, to support the 

marketing program. Other in-kind services may become available for the marketing program once 

the underway. Any unanticipated or additional expenses will be covered by the County through the 

Airport’s regular operating revenues or from County funds.

Table 5

Proposed Project Budget

Program Expenses

Item Cost

1. SCASD Administration 10,000

2. Marketing Firm/Specialist 40,000

3. Media Buys

 a. Radio/TV 45,000

 b. Print (Ads, Brochures, Direct Mail) 17,000

 c. Outdoor Advertising (4 @ 500/mo for 12 mo) 24,000

 d. Web Presence 5,000

 e. Social Media 3,000

 f. Promotional Items 6,000

4. Passenger Surveys & Promotions 5,000

5. Corporate Outreach 10,000

Total Marketing Program Costs 165,000

Program Revenue Sources

Resource Amount

Proposed SCASD Grant 100,000

Local Contribution 50,000

In-Kind Services 15,000

Total Funds & Resources 165,000

Notes:

 Pro forma budget subject to negotiated media rates and other factors
Victoria Regional Airport FY 2014 SCASD Grant Proposal

- 10 - 7/31/2014

8. Sustained Marketing Efforts

Historically proven by previous enplanement levels, the demand for the Airport’s air service exists. 

However, over the past few years, travelers have lost confidence in the ability of the air service to 

consistently and reliably complete flights that connect Victoria to the broader air transportation 

network. 

Unfortunately, it is the business traveler who can afford the fare but cannot afford the risk of a 

missed connection, either to get to Victoria or their ultimate destination. The lack of reliable air 

service only serves to force these travelers to the road to ensure their connection.

The development of a comprehensive marketing program will serve as the foundation of a 

sustained marketing presence for the Airport. It is expected that the momentum established by 

successfully recapturing lost passenger traffic will also provide opportunities to reach new 

travelers. To regain travelers’ confidence will take time, much longer than the anticipated 12-18 

month period of the proposed marketing program. The key to the Airport’s marketing program 

success will be a consistent and sustained message which will be developed as a result of SCASD 

project. Much of the digital material and web presence will continue to be effective after the 

program is completed. The Airport will also dedicate marketing expenses from its operating budget 

in future years which will also utilize materials that emerge from the project.

The airport will maintain the practice of continuous, periodic passenger surveys, social media, 

website development, local visits, and other interaction among community groups and large 

employers to constantly monitor demand and make recommendations to adjust the service 

accordingly. These efforts shall continue indefinitely as they provide critical feedback from the endusers for VCT to use as a tool to measure the overall (and specific) effectiveness of the air service. 

These constant, periodic measurements will allow the service to continuously update the operation 

to meet demand. 

9. Previous SCASD Grant

The County applied for and received a very modest $20,000 grant under the FY 2003 Small 

Community Air Service Program. From this grant, $19,416 was used for marketing and promoting 

existing commercial air service. The project was successfully completed in 2005 and the marketing 

program was instrumental in increasing passenger counts throughout 2004. 

For the FY 2006 SCASD program, the County applied for a $300,000 grant with $50,000 in 

dedicated local funds to be used as a financial backstop for inducing Continental Connection to 

provide an additional daily flight for the VCT-IAH market. The proposal included a focused 

marketing program to bring community awareness to the new scheduled flight. The County was 

not selected for a grant award. There have been no subsequent grant proposals from the County

before the current FY 2014 submittal.
Victoria Regional Airport FY 2014 SCASD Grant Proposal

- 11 - 7/31/2014

This proposed project differs from the previous FY 2003 grant in several areas. Unlike the 2003 

grant, the proposed FY 2014 grant is focused on educating the local traveling public regarding a 

new approach to providing new air service to the region. 

The FY 2014 project focuses attention toward a radical shift away from what local air service has 

become and from what the community has been accustomed to in recent years. The new air service 

brings back a larger 19-seat turbine aircraft (with a crew of two) and adequate baggage capacity. 

The proposed project will also introduce two new destinations (Austin and Dallas Fort Worth). 

These markets have not been served from Victoria over the past 20 years. 

Finally, the scale of the FY 2014 project is much larger in scope and detail (the original FY 2003 

project only expended $19,400) and incorporates the use of social media and other means to 

communicate the message which were not as popular or accepted 10+ years ago.

10. Legal Sponsor

The legal sponsor of the SCASD grant is the County of Victoria, Texas as owner and operator of the 

Victoria Regional Airport. The designated legal representative of the Airport is: 

Donald R. Pozzi, County Judge

County of Victoria, Texas

115 N. Bridge St.

Victoria, Texas 77901

(361) 575-4558
Appendix A

Support Documentation

700 N Main, Suite 104 Victoria, Texas 77901 361-485-3190 vedc@victoriaedc.com

April 29, 2014

Congressman Blake Farenthold

Congressional District 27, Texas

5606 N Navarro, Suite 203

Victoria, Texas 77904

Dear Congressman Farenthold:

Please accept this letter in support of the Victoria Regional Airport and Essential Air Service for 

Victoria and our surrounding communities.

The Victoria Economic Development Corporation (VEDC) is the contracted marketing agent for 

the City of Victoria and Victoria County. We work to recruit new industry to our community for 

the purpose of creating primary jobs and expanding the tax base; and to maintain existing 

businesses and assist them with expansions. Prospective companies diligently screen potential 

communities for the right location for their business by scrutinizing the assets available to them. 

The clients we attract are highly dependent on the availability of local air transportation for their 

operations. We have been successful in the past to present a strong business case for Victoria 

resulting in the decision of Caterpillar Inc. to locate their North American Hydraulic Excavator 

facility in our community. The availability of commercial air service was an important factor in 

their decision to locate in Victoria.

The business climate in Texas is the strongest in the nation, resulting in numerous requests for 

information from global companies seeking to locate in the south. Victoria is in direct 

competition with other communities in the state and nation for these projects. These companies 

are requiring close proximity to airports as criteria for community consideration. Two hours from 

a commercial airport is too far. It is imperative for Victoria to maintain the Victoria Regional 

Airport and commercial air service for advancing and maintaining local economic development. 

The loss of this asset would place our community at a competitive disadvantage to attract new 

industry or grow existing industry. We would be precluded from submitting for industrial 

projects with air service as criteria; resulting in the potential loss of jobs and revenue for our 

community. 

I appreciate the opportunity to offer my comments on this important issue for your 

consideration, and ask you to help us strengthen the viability of the Victoria Regional Airport by 

supporting the Essential Air Service program. Please contact me any time if I may be of further 

assistance.

Sincerely,

D. Dale Fowler, CEcD

President

2014 Board of Directors

Thomas A. Schmidt

Chairman

Jeff Lyon

Vice-Chairman

Dan Easton

Treasurer

Dennis Patillo

Immediate Past Chairman

Charmelle Garrett

Executive Board

Bobby Jacob

Executive Board

William R. Blanchard

Tom Butler

Elton Calhoun

Cally Fromme

Russell Marshall

David McLarry

Jon New

Judge Donald R. Pozzi

Janis Scott

Stephen Thames
Victoria Officials Commit Funding to Save Airport

by Melissa Crowe

The Victoria Advocate

July 29, 2014

Victoria County officials are looking at a $150,000 marketing campaign to improve the reputation at

Victoria Regional Airport.

Since Sun Air International started flying out of Victoria in October 2012, a constant string of

maintenance issues, canceled flights, baggage issues and ticketing problems have doomed the airport.

Unless the number of departing passengers increases, the airport could face losing federal funding, a

consequence that would effectively end commercial air service in Victoria.

With a new carrier anticipated to start in October, Victoria County commissioners voted Monday to

commit $50,000 to Airport Manager Jason Milewski's proposed campaign to show off the changes.

As word spreads of the new carrier, travelers are already rethinking plans to fly out of Victoria.

Despite Brad Bishop's bad experience with Sun Air two summers ago, he said he would be willing to

give a new carrier a try.

After flying into Houston from Mexico, his flight back to Victoria was canceled. He ended up having to

take a two-hour cab ride back home.

"I'm sure I'll end up flying out of Victoria again," Bishop, 22, of Victoria, said.

Milewski will submit an application Wednesday for a $100,000 federal grant he hopes will cover

two-thirds the cost of the marketing plan aimed at promoting the improved service a new carrier is

bringing to Victoria.

"We need to do a massive marketing campaign to let our public know there are significant changes at

the airport," Milewski said.

The new carrier, Public Charters, will start offering service Oct. 1 to Austin and Dallas - two of the

busiestairports ina five-state region, including Arkansas, Louisiana, New Mexico,OklahomaandTexas.

Since Pinnacle Airlines Corp., which operated Continental and later United flights from Victoria,

declared bankruptcy in April 2012, Victoria Regional has struggled to live up to its federal contract

with the Essential Air Service program. The program helps smaller communities maintain an airline.

"I don't want to beat a dead horse," Milewski said. "Without any question, it's clear that the level of

service we're offering is not meeting the demand."

To continue being in the Essential Air Service program, the airport needs an average of 10 passengers

a day and subsidies of no more than $200 per passenger.

While airports across the southwest region saw an average 2 percent increase in passengers, Victoria

saw a 45 percent drop from 2012 to 2013.

Victoria is second-to-last in passenger numbers for the 2013 calendar year and is above the subsidy

cap, Milewski said.
"If our decline in passenger counts were reflective of our local or regional economy, I wouldn't be here

today trying to pursue this," Milewski said. "More and more people are flying, and the economy is

getting better in our region."

County Commissioner Danny Garcia said it's unclear if the marketing campaign for thenew carrier will

show a return on investment.

"It's really a shot in the dark for us," he said. "But if Victoria County is going to continue to grow ... we

have to provide that type of service, which is a good airline."

The Small Community Air Service Development Grant has $7 million in its budget this year and

typically funds about 10 projects, Milewski said.

"It's strictly used for marketing, which is exactly what we need it for," Milewski said.

County Judge Don Pozzi said he supports the airport manager's recommendation.

Without the grant, the airport would still need the marketing campaign and likely $50,000 from the

county, Pozzi said.

Commissioner Kevin Janak applauded Milewski's efforts.

"We need to spend at least that amount of money to inform the public that this is a new look," Janak

said.

If passenger counts don't improve, the next move is to seek a waiver from the Department of

Transportation, Milewski said.

Commissioner Gary Burns said the airport needs to make a drastic change.

Burns proposed making the commitment as a loan to the airport, which will be repaid to the county.

Commissioners did not discuss a timeline for repayment.

Milewski said if the grant is approved, he will look at hiring a marketing firm to take the lead.

"We will lose all air service completely if we don't do something," Milewski said, later adding, "This is

our best shot."

Source: http://m.victoriaadvocate.com/news/2014/jul/28/mc_commcourt_072914_245319/