1 

# Proposal Under the Small Community Air Service Development Program

Docket # DOT-OST-2013-0120

Submitted By: City of Shreveport Shreveport Airport Authority

DUNS #966608952 Fourth Congressional District July 20132 

## Prepared By:

Shreveport Airport Authority 5103 Hollywood Avenue, Suite 300 Shreveport, LA 71109

Contact:

Bryant L. Francis, C.M. , Director of Airports

Email: bryant.francis@s hreveportla.gov

Mark Crawford, Marketing and Public Relations Manager

Email: mark.crawford@shreveportla.gov3 

## NOTE:

This document is prepared for the us e of the United States of America Department of Transportation and th e Shreveport Airport Authority for the Small Community Air Service Development Program. The data contained herein was obtained fr om sources deemed reliable as of July 25, 2013.4 

## Table of Contents

Page

1. Appendix B................................. ............................................5

2. Executive Summary ..................................................................8 -Proposal Objectiv e...........................................................8

-Current Air Service De ficiencies..........................................8

-A Viable Soluti on.............................................................9

3. Shreveport: Economic Growth Requires Improved Access ...................10 -Port of Shreveport-Bossier................................................11

-Barksdale Air For ce Base..................................................12

4. Economic Outlook...................................................................13

5. Service Decline at Shreveport Regional......

........................... ......................14 -Airlines and Nonstop Markets.............................................14 -Fare Comparisons... .........................................................16

-Current Needs...............................................................18

6. Analysis of Funding Need ed................................ ..........................19 -Strategic Plan to Meet Needs of SCASDP..............................20

7. Conclusion..................... .......................................................30

8. Letters of Suppor t....................................................................225 APPLICATION UNDER

SMALL COMMUNITY AIR SERVI CE 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 convenie nce, this Summary Informatio n schedule is located at http://www.dot.gov/policy/aviation-policy/sm all-community-rural-air-service/SCASDP

A. P ROVIDE 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: City of Shreveport/Shreveport Airport Authority

DUNS Number: #966608952

EIN/Tax ID: 72-6001326

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COMMUNITIES APPLYING :

1. C ITY OF S HREVEPORT /S HREVEPORT A IRPORT A UTHORITY

2.

____________________________________________________ 3.____________________________________________________

4.____________________________________________________

C. P ROVIDE THE FULL AIRPORT NAME AND 3-L ETTER IATA A IRPORT C ODE FOR THE APPLICANT ( S ) AIRPORT ( S )

(O NLY PROVIDE CODES FOR THE AIRPORT ( S ) THAT ARE ACTUALLY SEEKING SERVICE ).

1. Shreveport Regional Airport (SHV) 2.

3. 4.

D. L IST THE 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLICABLE TO THE SPONSORING ORGANIZATION , AND IF

A CONSORTIUM , TO EACH PARTICIPATING COMMUNITY

.

1. LA-04 2.

3. 4.6 E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium

Community now receives subsidized Essential Air Service

Community (or Consortium member) prev iously received a Small Community Air Service Development Program Grant

If previous recipient: Year of grant(s): 2004, 2009

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

PUBLIC PRIVATE

1.City of Shreveport 1.

2.Bossier Parish Police Jury 2.

3. Shreveport Bossier Convention Bureau 3.

4.TownSquare Media 4.

5.Bossier Chamber of Commerce 5.

G. P ROJECT P ROPOSAL : ( CHECK ALL THAT APPLY )

Marketing Upgrade Aircraft New Route

Travel Bank Service Restoration Subsidy

Surface Transportation Regional Service Revenue Guarantee

Launch New Carrier Start-up Cost Offset First Service

Study Secure Additional Serv ice Other (explain below)

Create an awareness campaign to citizens in our city and region of the air service available in SHV to increase

demand and in turn seat capacity, number of daily departures and number of non-stop destinations.

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT :

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other: GPS Approach7 I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA

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

1 Federal amount requested $225,000

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds $25,000

3b Non-airport cash funds $50,000

3 Total local cash funds ( 3a + 3b ) $75,000

4 TOTAL CASH FUNDING ( 1+2+3 ) $300,000

In-Kind contribution

5a Airport In-Kind contribution**

5b Other In-Kind contribution** $55,000

5 TOTAL IN-KIND CONTRIBUTION

( 5a + 5b ) $55,000

6 TOTAL PROJECT COST ( 4+5 ) $355,000

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.

TownSquare Media - $50,000, Bossier Chamber of Commerce - $5,000

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 th e state for review.

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

L. I S T HE A PPLICANT D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE

E XPLANATION )

No Yes (explain)8 

## Executive Summary

Proposal Objective

The Shreveport Airport Authorit y, operator of Shreveport Regiona l Airport (SHV), respectfully submits its application for a grant under th e Small Community Air Service Development Program in the amount of $ 225,000 . This grant funding would be matched by $75,000 in local and airport funding (33%), and $55,000 in in-kind advertising from local and other community media outlets, making for a total grant of $355,000.

This application is based on an analysis of curren t air service, utilization of that service, and opportunities for growing air service at SHV. The City of Shreveport and surrounding communities suffer from deficiencies in Shreveport Regional Airport’s current service pattern. There is a dire need for the creation and impl ementation of a campaign which will both educate and increase the public’s awareness of both new & existing service to s upport airlines in the overall success and profitability of its respective service in this market.

The modest grant funding request is entirely consistent with th e purpose of the Grant Program and Department funds will enable Shreveport Re gional Airport to serve as the true regional airport that it once was and can become again. Any success garnered from the grant funding made possible through this program will have a significant and positive local economic impact.

Current Air Service Deficiencies

Recent scheduling changes due to the challenges faced by airlines grappling with high oil costs

have contributed to a reduction of service levels at SHV. The combination of a struggling national economy and higher airlin e fuel costs have resulted in insufficient capacity and price competition for travelers to and fr om the airport’s service area:

 American Airlines reduced capacity at SHV beginning in Janua ry 2012 by switching from ATR aircraft to all regional jet servi ce. There are 128 less seat s per day offered, or 3,840 per month.

 This fall and winter, Delta Air Lines will decr ease daily operations into SHV from 9 to 7 flights a day which is a loss of 100 s eats per day, or 3,000 seats per month.

 Delta Air Lines will discontinue nonstop servi ce to its Memphis hub at the end of August 2013, which will reduce nonstop markets from 7 to 6 and offer fewer options to travelers destined for or origin ating from the Upper Midwest and East Coast.

The net result of these service reductions is that the Shreveport community, which is highly dependent on air service access in support of bot h its burgeoning leisur e and business economic bases, is now at risk of seeing growth s uppressed due to lack of air service access.9 A Viable Solution

If awarded the grant, the Shreveport Airport Authority’s goal is to implement an extensive regional awareness campaign using several advertising mediums to educate those within a 2-hour

drive time of the service curren tly available at Shreveport Regi onal Airport coupled with the relative ease not only to ge t to the airport, but to get through it (close-in parking, quick check-in, short security screening waits). Further, the Ai rport Authority continues to work with existing and potential new entrant carriers to attract and recruit new or upgraded Upper Midwest or East

Coast hub service and will include marketing of this new servic e, once announced, to the local community and region. The Airport and community ha ve identified several ca rrier / route options for this potential new service:

 Connect SHV directly to Chicago via Ameri can or United Airlines, which would greatly

increase the number of cities that can be reached with one stop from SHV.

 Marketing the upgrade of existing ATL servic e from 50-seat regional jets to 65-seat (CRJ-700) or larger jets. This approach w ould address the lack of available capacity to the important ATL hub, however, funds made available via this Grant Award would only be utilized if the total Delta capacity re mains constant or increases over what was available prior to the implementation of larger aircraft.

 Recruit new hub air service to Washington Dulles on United or Washington National on US Airways (American, post-merger). Dulles is a large East Coast hub airport and new nonstop service from Shreveport would ope n up enormous new c onnectivity for the community, especially given the number of military personnel traveling from Barksdale Air Force Base to Washington D.C. US Airw ays now offers more capacity at National than any other airline, and there is the poten tial to both serve the lo cal O&D passenger as well as those accessing connect mark ets served from National.

 Recruit new hub air service to Charlotte on US Airways (American, post-merger). Charlotte is a major US Airways hub and nonstop service from Shreveport would dramatically improve Shreveport air service options to the East Coast, as Delta’s existing ATL service already operates at very high load factors and with strong yields.

 While Shreveport Regional Airport does have leakage to surrounding airports, which was

evaluated in a 2010 Air Service St udy, our airport is poised to grow su bstantially due to future regionalization and the superior geographic location of the airport itself. With airlines ramping up the phase- out of 50-seat and smaller re gional aircraft, small markets will have to support larger airc raft to maintain service. Those which cannot are likely to

lose some or all of the se rvice currently operating. Seve ral communities in the Pacific Northwest are prime examples of this potential, as they lost some or all service with

Horizon Air as the airline transitioned fr om 37-seat turboprop to 76-seat turboprop aircraft several years ago. Being in the geogr aphic center of a region with a total of six (6) non-hub airports with scheduled service, Sh reveport is by far the busiest and will be able to support larger planes and additional flights. The infrastructure is already in place and the terminal facility can accommoda te additional passenger, flight, and ground transportation activity. With superior interstate systems connecting SHV to the region, many more passengers than are currently served can access our airport quickly and efficiently.10 Proven Success with New Approach & Purpose

The approach the Authority proposes to implem ent will be a new one in comparison to past successful SCASD grant proposals. We propose to combine Grant funds through the Small Community Air Service Developmen t Grant program with airport and locally-provided funds to implement a regional educati on & awareness campaign. This campaign will incorporate advertising and promotion funds to both highlight existing service available at SHV as well as to support airlines offering new or enhanced air service here.

The Shreveport Airport Authority used a $500,000 Grant under the Program to support the inauguration of Northwest Airlink CRJ-200 servi ce to Detroit in May 2 004. This service was highly successful. Northwest was so pleased with its overall performance in Shreveport that it increased capacity on its Memphi s service from CRJ-200 aircraft to ARJ-85 aircraft in May 2005 until January 2006 when the aircraft were taken out of service due to high operational costs.

Additionally, the Shreveport Airport Author ity was awarded a $100,000 grant in 2009 for marketing of larger jet service on American Airlines to Dallas. Unfortunately, after three years of working with American to use the grant, the airl ine was unable to schedule the required type of aircraft in our market. Therefore, implementa tion of the grant award funds was not successful and the grant expired at the end of 2012.



## Shreveport: Economic Growth Requires Improved Access

Shreveport and Bossier City are located in the No rthwest corner of Louisiana, and comprise the major commercial center for a tri-state area that encompasses portions of Louisiana, Texas, and

Arkansas.

Growing Population Base

The Shreveport/Bossier City community’s metr opolitan statistical ar ea (MSA) accounts for a population base of approximately 470,000 residents (60-minute drive time), an increase of over 30,000 in the last decade. Shreveport Regional Air port is the air gateway to a total population of more than 800,000 within 90-minutes and 1.9 million are accessible by a 120-minute drive.11 The region the airport serves continues to enjoy a thriving economy due to the stability of several key employers which are increasingly conducting business on a national and global basis.

Port of Shreveport-Bossier

An example of the need for additional Upper Midw est or East Coast connectivity is the Port of Shreveport-Bossier, which is also expanding.

Benteler Steel In fall 2012, Germany-based Benteler Stee l/Tube Co announced a $900-million, two-phase facility that will include both a seamless steel tube mill and a steel mill. The project occupies 330

acres at The Port of Caddo-Bossi er, where Benteler is creating 675 new direct jobs paying an average annual salary of $50,000, plus benef its. The project will have a huge impact on Northwest Louisiana. Specifically, its estimated that the large-scale pr oject will lead to the creation of approximately 1,540 new indirect jobs, resulting in a total of more than 2,200 new, permanent jobs in the area as a result of the proj ect. Additionally, during the term of Benteler's contract with the state which runs through 2035, it’s estimated that the projec t will result in total new earnings of $2.7 billion (approximately $150 million per year at full employment) in Northwest Louisiana and a total, cumulative economic impact of $16.2 billion in the region. With corporate offices in Germany, company ex ecutives and facility management and support staff will be traveling between Shreveport a nd Germany. New East Coast or Upper Midwest service would offer additional single-connection options when making the regular trip between SHV and the home office in Germany.12 Ronpak In 2012, Ronpak, a leading manufacturer of custom printed paper bags, packages and food wraps based in New Jersey, opened its new 155,000-square -foot manufacturing facility at the CaddoBossier Port. The company announced in July of 2011, it would build a $16.8 million manufacturing facility, which now serves as the company's new corporate headquarters. By 2018, Ronpak will employ 275 people in Shreveport with an average annual sala ry of more than $40,500, plus benefits. Once the facility is fully ope n, those direct jobs also will result in 783 new indirect jobs, leading to a total of more than 1,000 new j obs for North Louisiana. Ronpak will maintain a manufacturing facility in New Jersey and company executives will be traveling between Shreveport and New Jersey. Again, servi ce to a new Upper Midwest or East Coast hub would allow additional connectivity not currently available at SHV.

Elio Motors Elio Motors will occupy one-third of the former General Motors pl ant’s three million square foot site and will produce three-whee led vehicles capable of atta ining over 80 highway miles per gallon and over 60 MPG in the c ity. The company says it expects to begin commercial vehicle production in mid-2014, with significant hiring at the Shreveport facility to begin by the second quarter of 2014 and full employment to be reached in late 2015. Elio is expected to employ 1,500 people when it reaches full production. The two- seat vehicle will sell for $6,800. Suppliers and other manufacturing or distributi on companies may occupy all or a portion of the remaining two million square feet and represent the potential of hundreds of additional jobs fueling the employment base once Elio Motors is in vehicle production mode.

Barksdale Air Force Base

Further growth is occurring at Barksdale Air Fo rce Base in Bossier City. The base employs approximately 9,500 employees directly and is ho me to most of the nation’s B-52 strategic bomber fleet. Military personnel from Barksdal e are deployed throughout the world and fly commercial carriers. With many of them tr aveling internationall y, an additional hub connection(s) to and from Shreveport are vital. In addition, Global Strike Command is based in Bossier City and many staff members travel week ly or monthly to Washington D.C. Adding an Upper Midwest or East Coast hub would allow fo r better connectivity to the nation’s capital.

Local Medical Industry

Greater Shreveport has fast become a regional hub for health care and a nationally recognized medical community and a growing biomedical indus try with the Biomedical Research Institute. More than 13,000 people are empl oyed in the medical industry in Northwest Louisiana. A consortium of providers and re searchers from the renowned Louisiana State University Health

Sciences Center and Level 1 Trauma Center, the LSU Medical School, Overton Brooks VA Medical Center, Willis-Knighton Health System, the CHRISTUS Schumpert Health System, and the Shriner’s Hospital are working to meet the me dical needs of tomorrow and to keep us at the

forefront of health care advances.13 

## Economic Outlook

The economic outlook for Shreveport is one of gr owth from many directions. The planned I-49 extension from Shreveport to Texarkana, Arkans as, is under construction and will open up major traffic flow through Northwest Louisiana. I-69 is expected to cross thr ough Northwest Louisiana on its way from Memphis to Houston, also ope ning up the region to more traffic flow.

National retailers continue to negotiate for de velopment space in Shreveport, as a result of shopping patterns that bring regional consumer s from as much as two hours’ drive time.

Shreveport is the regional hub for healthcare services, drawi ng patients from East Texas,

Southwest Arkansas and North Lo uisiana. Shreveport has two major private hospital systems and one major public hospital system with a nati onally accredited medical school. All three institutions continue to expa nd in sophistication of service and technology. The health care industry in Shreveport will continue to expand as outlying areas relinquish more services that cannot be cost justified.

Commuting patterns into the Sh reveport-Bossier City MSA show a greater influx of workers from outlying areas, not included in the population estimate.

The Shreveport-Bossier City economy is becoming even more regional as interstate systems expand, retail trade options expand, and healthcar e services expand, not to mention tourism opportunities such as casinos and the expansive convention center and adjoining Hilton Hotel. This growth in infrastructure now must be matched by expansion in air service access.14 

## Service Declines at Shreveport Regional

Shreveport Regional Airport is classified as a Non-Hub airport by the FAA for calendar year 2013. Because of airline i ndustry related shifts, enplanemen ts have varied greatly in any given year since 1990. These levels have ranged from 250,524 to nearly 400,000. The airport is currently served by four airlines operating primarily regional jet aircraft. In July 2013, the airport had 24 peak daily depart ures to five hub airports and two leisure destinations. This compares to 41 daily de partures just prior to the September 11, 2001

terrorist attacks.

Year Total Passengers Variance
2003 546,390 0.0%
2004 576,450 5.5%
2005 623,430 8.1%
2006 597,600 -4.1%
2007 584,710 -2.2%
2008 529,840 -9.4%
2009 467,040 -11.9%
2010 460,160 -1.5%
2011 507,040 10.2%
2012 531,980 4.9%

Source: Sixel Consulting Group

Over the last ten years, SHV’s capacity is down 30.5%, passenger traffic is down 16.8%, and the domestic fare is up 46.6% to an aver age of $269 one-way. This indicates a better utilization of capacity than in years past , which is necessary in today’s economic environment, and with fares which have ri sen sharply. Through moderately increased capacity coupled with a more competitive air fare to those offered at surrounding airports, SHV’s passenger traffic c ould grow significantly.

Airlines and Nonstop Markets

The airport is currently served by four ai rlines offering the fo llowing nonstop routes:

Airline Destination Daily Frequency Delta Air Lines

Delta Air Lines

American Airlines Atlanta Memphis 7 round trips 2 round trips 8 round trips Dallas/Ft. Worth

United Airlines Houston 5 round trips
United Airlines Denve r 1 round trip

Allegiant Air Allegiant Air Las Vegas
Orlando 4 round trips / week 3 round trips / week

TOTAL DAILY 24 round trips / day

Source: OAG list of SHV scheduled service August 201315 As indicated by this outline of service, ther e is a dearth of acce ss to the Upper Midwest and East Coast. On August 28, 2012, United Airlines inaugurated nonstop service to Denver. This is proving to be a success st ory for the SHV market, as the service has consistently improved and continues to strengthen. Service to Denver had never been attempted from SHV. Denver is a unique market in that, of the six airports in the 120- minute drive time region, only SHV enjoys an d can support this nonstop service. The decision by United to open up unparalleled access to the Mountain West, West Coast, and

Western Canada via Denver can be used as an example for what new service to an Upper

Midwest or East Coast hub would do in growing the local market and providing improved access to the national transportation system.

The following two route maps demonstrate the shift in, and d ecline of, nonstop hub service from SHV. In 2007, there was nonst op service to Cincinnati, Chicago, and Detroit, none of which exist today. Upper Midwest and East Coast access was excellent in 2007, thanks to the service offered to thes e hubs, but is virtua lly nonexistent today.

SHV Route Map 200716 SHV Route Map as of August 2013

Fare Comparisons

Over the last ten years, the domestic aver age one-way fare is up 46.6% at SHV to $269.

This fare was the 11 th highest in the nation of Lower 48 Airports with at least 75,000 O&D passengers, as depicted below:

Rank Market Domestic O&D Domestic PDEW Average One-Way

Fare 1 Minot 324,120 443 $330 2 Dothan 80,670 110 $325 3 Williston 78,670 108 $292 4 Grand Forks 142,590 195 $287 5 Idaho Falls 191,350 261 $285 6 Columbus, GA 112,310 153 $278 7 NW Arkansas 837,400 1,144 $277 8 Lawton 96,860 132 $276 9 Laredo 121,470 166 $275 10 Bismarck 361,080 493 $274 11 Shreveport 429,600 587 $269

Source: Sixel Consulting Group

Of the Top 20 airports in this ranking, only Northwest Arkansas se rved more Domestic O&D passengers than Shreveport Regional.17 A look at the top 12 destinations within th e Midwest and East Coast from Shreveport shows a similar picture. Clear ly Shreveport has inadequate air service by the measure of airfares paid in comparison to nearby airports . It should be noted that both Chicago and Washington DC (DCA & BWI) are represented on this list of fares. As expected, DFW offers lower fares in most markets, which is likely due to high levels of competition and

the existence of national low- cost carriers serving DFW from several domestic cities. Based on the chart above, SHV’s fare is higher than the other three (3) airports in six of

12 markets.

Airlines serving SHV have deemed this market to be primarily a bus iness vs. leisure one. Therefore, the average fares tend to be higher than those available at surrounding airports. To combat higher fares, it is the airport’s goal to increase seat capacity, daily scheduled departures, and nonstop routes to be come the airport of c hoice within a 2-hour drive time. With increased competition and capacity, the market may realize a decline in average fares. To entice additional passenger activity, the Airport w ould like to launch a targeted advertising and awareness campaign. With a focus on offering superior access to the national transportation system when comp ared to other surrounding airports, and ease of ground accessibility via I-20 and I-49, the ca mpaign will be designed to educate and create Top of Mind awareness among air travelers.18 Current Needs

Analysis of the Shreveport market provides the following conclusions:

 Service Providers : Shreveport now has a limited number of airlines providing

service.

 Lack of Hub Connectivity to the Upper Midwest and East Coast : The upcoming discontinuation of Delta Air Li nes service to its Memphis hub delivers

further strain to our market with limited airline service to the Upper Midwest and

East Coast and no hub connections to the east beyond Atla nta, which Delta already operates at a high frequency with a corresponding high load factor.

 Need for Additional Seats : Shreveport Regional Airport has limited capacity with service primarily aboard 50-seat regi onal jets. Larger jets being flown into new or existing markets would open up mo re capacity for the Shreveport region’s

residents and visitors.

 Need for Increased Education & Awareness to Support Existing Service: Shreveport Regional Airport currently adve rtises primarily within the 60-minute drive time area, relying heavily on print a nd billboard advertis ing in addition to select television advertising, as well as special event sponsorships. With a population of 1.9 million within a 2-hour dr ive time, the airport is in a prime

location to entice additional travelers. Through a professionally developed awareness campaign, it is believed that mo re travelers who currently do not make SHV their airport of choice will, through th e consistent and varied delivery of information specifically related to existi ng services available, be given a new opportunity to make use of service offere d by our carriers. Further, through announcement of new or improved servi ce, the airport will work with the airline(s) providing that service to ade quately and appropriately promote that service as part of the awareness campaign.

The Shreveport Airport Authority is reques ting $225,000 as part of this proposal to participate in the 2013 Small Community Air Service Development Program. If awarded, this grant will be complimented by a 33% pe rcent community match to promote greater awareness of existing air service as well as to court, secure, initiate and market improved Upper Midwest or East Coast air service.

Since air service can be affected by many factors, the Shreveport Airport Authority recognizes the need to have numerous options with this proposal. While the primary goal of this proposal is to create and implem ent a professionally developed awareness campaign to increase usage of existing servic e, the Airport also believes there is an opportunity to attract new servi ce to a currently unserved market or to realize an increase in capacity to an existing nonstop market.19 Analysis of Funding Needed to Implement This Plan

The Shreveport Airport Authority will solic it requests from and negotiate with local advertising agencies to agree upon and implem ent a broad-based, region-wide, education & awareness campaign. This program would consist of utilizing the most effective mediums, which may vary in different parts of the region. Further, modifications or adjustments to the program would be made as needed. This would be warranted either due to a change in message, to offer fresh information, to incorporate a new medium, to increase or decrease media buys , to announce new or enhanced se rvice, or other reasons. The program would be implemented in 2014 and continue for 2-years. Based upon ongoing discussions with air carriers, SHV is expected to add to its roster of nonstop markets by 2015, depending upon economic cond itions and continued demand levels

which warrant such service c onsiderations by the airlines.

The funds will be used as follows:

 $225,000 for aggressive marketing and prom otion of existing as well as the introduction of new or improved air servi ce @ SHV within East Texas, Northeast

and Mid-to-Southern Louisian a and Southern Arkansas.

 $75,000 for aggressive marketing and promotio n of existing service as well as the introduction of new or improved serv ice in the Shreveport-Bossier area.

 Funding for this $300,000 education & aw areness program would be evenly divided between the 2-years of its ex istence at approximately $150,000 annually, and further strengthened by the in-kind component.20 Strategic Plan to Meet Needs of Small Community Air Service Development Program

If successful in the awarding of the Small Community Air Service Development Program, the Airport Authority will continue its ongoing nego tiations with airlines to develop hub service to Chicago, Charlotte, Washington Dulles or another Upper Midwest or East Coast city.

A key component of the success of future air se rvice is the success of existing service. In order to grow service, SHV must ensure it is doing its part to e ducate those within its market area about the superior services which are presently available. With increased passenger activity, airlines are more likely to consider the market for an increase in capacity (whether through additional frequency and/or utilizing larger aircraft). As marketing, advertising, and promotion has genera lly been on the decline within the airline industry, it is imperative for a small market such as SHV to increase its efforts. Airlines generally are not interested or do not have sufficient f unding to advertise in or around Shreveport. With the assistance of this grant award, the airport can positively affect awareness, contribute to increased usage, attract additional capacity, and hopefully realize a reduction in average air fare.

As it pertains to new or enhanced air service, the Airport Authority’s goal is to enter into an agreement with an airline that will provide long-term service which is profitable to the airline and self-sustaining shortly after serv ice start-up and also is beneficial to the community by providing new or enhanced conn ectivity through a hub air port. If the new service is marketed properly beginning soon after announcement, it ha s a better chance of

success.

The target audience for this new service will be similar to the existing customer now utilizing Shreveport Regional Airport. An es timated 70 percent of the airport’s customer base is business travelers, which will also be a key target for the new hub service. In cooperation with the airline, a particular emphasis will be placed on marketing and promoting the new or improved air service to companies and individuals using Shreveport air service which may ha ve a need to travel to that hub city or vi a that hub to

reach other cities.

The Airport Authority believes a reason able timetable for the creation and implementation of the education & awareness campaign is as follows:

 Awarding of SCASD grants: Fall 2013
 Negotiations with ad agencies: Fall/Winter 2014
 New awareness campaign introduction: Spring 2014
 Grant close-out: Fall 201621 The Shreveport Airport Authority will act as the lead agent with the Department of Transportation staff in administration of th e grant. The Shreveport Airport Authority’s Director of Airports is Brya nt L. Francis, C.M.; with Deputy Director of Airports, Bill Cooksey and Marketing and Public Relations Manager Mark Crawford as the DOT’s contacts for this grant. Mr. Francis, Mr. Cooksey and Mr. Crawford can be reached at (318) 673-5370.

Program Assurances

As the sponsor, the Shreveport Airport Authority of the City of Shreveport and its governing board will be the res ponsible parties for all fiscal matters and the Department's reporting requirements. The Shreveport Airpor t Authority is establ ished as a public department of the City of Shreveport. As a public entity, the Depart ment can be assured that proper financial controls are in place to guarantee that the Department’s Grant will be used in accordance with any subsequent agreement. The Shreveport Airport Authority understands that the grant is a reimbursable gr ant, meaning the Authority is responsible for program expenditures and will submit invoi ces to the Department for reimbursement, based on a percentage of the total grant request.



## Conclusion

In summary, the Shreveport Airport Authority believes the provision of federal dollars toward the creation and implementation of a regional educational & awareness campaign, which may include a component to market ne w or enhanced routes from Shreveport to the Upper Midwest and East Coast, will bene fit a number of cities and states which our airport serves.

Because Shreveport Regional serves a wide catchment area within a three-state region, citizens and businesses in North Louisiana, East Texas, and Sout h Arkansas will all

benefit from better education offered about curr ent levels of service as well as additional access to the national transportation system th rough new or enhanced air service. Also, businesses which are continuing to invest heav ily into this region’s economy will provide a steady stream of customers who need to trav el by air, whether for business or leisure.2223242526272829303132