APPLICATION UNDER

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET DOT

- OST -2014-0133

SUMMARY INFORMATION 1

All applicants must submit this Summary Information schedule, as the application

coversheet

, a completed standard form SF424 and the full application proposal on
www.grants.gov

.

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

- air

- service/SCA SDP

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

NUMBERING SYSTEM (DUNS) NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER

(EIN) OR TAX ID

. Legal Sponsor Name:

Name of Signatory Party for Legal Sponsor:

DUNS Number:

EIN/Tax ID:

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

1.____________________________________________________

2.____________________________________________________

3.____________________________________________________

4.____________________________________________________

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

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

SEEKING SERVICE ).

1. 2

.

3

. 4

.

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

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

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

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

APPLICATION UNDER P ART 139 IS PENDING .)

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________

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

ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATING COMMUNITY

.

1. 2

.

3

. 4

.

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

Not a Consortium Interstate Consortium Intrastate Consortium

Community currently receives subsidized Essential Air Service

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

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

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

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

PUBLIC PRIVATE

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.G. P ROJECT P ROPOSAL :

1. G RANT G OALS : ( CHECK ALL THAT APPLY )

Launch New Carrier Secure Additional Service Upgrade Aircraft

First Service New Route Service Restoration

Regional Service Surface Transportation Professional Services 2

Other (explain below)

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

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

Start

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

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

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

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

community

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

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

case for new air service

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

counted as in-kind contributions only

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

wing) services provided by third party ground handlers

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

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

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

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

______________________________________________________________________________

______________________________________________________________________________

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

Full ILS Outer/Middle Marker Published Instrument Approach

Localizer Other (specify)

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

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

1 Federal amount requested

2 State cash financial contribution

Local cash financial contribution

3a Airport cash funds

3b Non

- airport cash funds

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

4 TOTAL CASH FUNDING ( 1+2+3 )

In

- K ind contribution

5 a Airport In

- Kind contribution **

5b Other In

- Kind contribution **

5 TOTAL IN

- KIND CONTRIBUTION

( 5a + 5b )

6 TOTAL PROJECT COST ( 4+ 5 )

J. IN- KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please

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

O RDER 12372 P ROCESS ?

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

Process for review on (date) _____________.

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

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

L. I S T HE L EAD A PPLICANT OR A NY C O -A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ?

(I F “Y ES ”, P ROVIDE E XPLANATION )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________
APPLICATION CHECKLIST

I NCLUDED ? I TEM

For Immediate Action

Determine Eligibility

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

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

and the Authorized Organization R epresenta tive (AOR) is current

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

Communities with active SCASDP grants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for selection in FY2014

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

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

A pplication of up to 20 one

- sided pages (excluding any letters from the community or an air carrier showing support for the application ) , to include:

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

.

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

.

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

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

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

.

• A motion for confidential treatment (if applicable)

– see Appendix D below.July 29, 2014

Brandon Belford
Deputy Assistant Secretary for

Aviation and International Affairs
U.S. Department of Transportation
Office of Aviation Analysis

8 th Floor, Room W86-307 -1200 New Jersey Ave., SE
Washington, DC 20590

Dear Mr. Belford:

Westover Metropolitan Airport is requesting a Small Co mmunity Air Service Development Program Grant in the amount of $250,000 with a local matching share of $125, 000 and airport in-kind incentives valued at $311,000 to
market, advertise and promote low-cost carrier service to one or more destinations and, in particular, to fund
ground handling services for the low-cost carrier service. The Airport is target ing either Allegiant Air or Frontier
Airlines to provide the low-cost service.

Westover Metropolitan Airport has all of the facilities a nd FAR Part 139 certifications needed to begin airline
service immediately and accommodate up to 100,000 passenger s per year with only minor changes to the existing
terminal building facilities.

At first glance, it may seem that the proximity of West over Metropolitan Airport to Hartford-Bradley, Albany
International, and Worcester would create redundant airlin e service if this project is successful. However, our
proposed grant application shows that is not the case. By soliciting ultra-low fare carriers, a different traveling
model is generated.

Our proposed grant application is organized to include the following major sections:

• Summary Information (presented prior to this letter)

• Description of Westover Metropolitan Ai rport's Air Service Needs/Deficiencies

• Strategic Plan for Meeting Air Service Needs

• Fundin g N e ce ssa r y f o r Impl e m en t a tion o f t h e Co mmun i ty's Project

• Designation of a Legal Sponsor Respon sible for Administering the Program

As shown in our letters at the end of this proposal, ther e is broad support of this proposal both by the local
community and economic development interests in Massachusetts. The public-private partnership includes the
Westover Metropolitan Development Corporation, Ch icopee and Affiliated Chambers of Commerce, Greater
Springfield Convention and Visitors Bureau, and the Western Massachusetts Economic Development Council,
which is comprised of several leading businesses. Commerc ial air service would attract both business and leisure
passengers and increase economic development activities via greater access to the community, more jobs at the
airport, and lower fares to the trav eling public (estimated at more th an $6 million in savings annually).
We look forward to the possibility of receiving a grant that will propel our Airport into productive commercial

airline service. The citizens and businesses of western Massa chusetts are eager to prove the value of such service.
Thank you for considering investing in Westover.

Very Truly Yours,

Allan W. Blair
President/CEO

www.wmass-arptcef.com
Affiliated with the Economic Developmen t Council of Western Massachusetts, Inc. 

# Westover Metropolitan Development Corporation

255 Padgette Street  Chicopee, MA 01022

(413) 593-5543  Fax (413) 593-51261 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113



### 2. Description of Westover Metropolitan Airport's Air Service

Needs/Deficiencies

In describing the air service needs and defici encies of Westover Metropolitan Airport, the following topics are addressed:

• Statement of the "Ask"

• Proximity of Other Air Service Points

• Previous Airline Service

• Ultra Low Cost Carrier Operating Model

• Average Fare Differences

Statement of the "Ask"

Although the "Ask" is a response to the air service needs (rather than a description of the needs), it was placed first in this proposal to give USDOT a cl ear understanding of our application request. The Westover Metropolitan Development Corporation (sponsor) is asking the USDOT for $250,000 to fund start up service at Westover Metropolitan Airport with ul tra low cost carrier service

. The sponsor is contributing $125,000 in state and local funding, along with $311,000 worth of in-kind services. Included in our program will be marketing, ground handli ng, and fee waivers at the Airport. Both Allegiant and Frontie r Airlines will be solicited.

Proximity of Other Air Service Points

Westover is located in western Massachuse tts, outside of the city of Springfield. Springfield, MA has an MSA with approxim ately 680,000 residents and does not have a commercial service airport associated with the city. The nearest commercial service airport to Springfield is Ha rtford’s Bradley International Airport, located nearly 40

minutes south. The next closes t airport is in Worcester, MA, which offers limited service with single daily flights to Orlando and Fort Lauderdale. Ot her airport options include Albany, NY to the west and Boston, MA to the east, each being in excess of 90 minutes away. Driving to both Worcester and Boston can be impeded by heavy traffic on the MassPike (I-90) during the summer months and during peak travel periods. This can easily add an additional 30-45 mi nutes to the journey.



## A total of $436,000 in matching funds and in-kind services are being dedicated to help ensure a

successful launch of an Ultra

- Low Cost Carrier2 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Figure 1 shows the study region and the airports in question. The proximity of other air service points indicates:

• Hartford Bradley International - 30 miles (40 minutes drive time)

• Worcester Regional - 51 miles (60 minutes drive time)

• Boston Logan International Airport - 93 miles (95 minutes drive time)

• Albany International - 97 miles (101 minutes drive time)

We realize that there is a c oncern about the proximit y of at least two of the listed four airline service airports, Hartford-Bradley International and Worc ester Regional, to Westover Metropolitan Airport. We intend to show that the proximity of these airports will have minimal impact on the demand for airline service at Westover Metropolitan Airport primarily because of the type of service being solicited

. That is, Ultra Low Cost Carrier (ULCC) service is not offered at any of the airports in proximity to Westover Metropolitan Airport. Th is type of service has a different operating model, as is discussed next. Figure 1 - Proximity of Airline Airports



## Westover Metropolitan intends to attract an Ultra Low Cost Carrier, type of service not currently offered

an y where else in the re g ion.3 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Previous Airline Service

SkyBus was the last airline to operate scheduled service at Westover when the airline operated service using Airbus A319 aircraft from Westover to Columbus, Ohio, and Greensboro, North Carolina, from July 2007 through April 2008,. SkyBus ended its

service at Westover when t he airline filed for bankruptcy; however, SkyBus proved Westover Metropolitan Airport could generate tr affic when low-cost service is available at the airport. SkyBus generated as many as 4,475 enpl anements in February 2008 and enplaned more than 24,000 passengers over t he eight months t he airline reported
Westover traffic to the DOT. Based on the average number of enplanements per month SkyBus generated in the ei ght months it reported dat a, it would have enplaned approximately 36,400 passengers over a 12-month period, and SkyBus would have generated 53,700 enplan ements based on the 4,475 en planements generated in February 2008.

Similar former SkyBus airports in competit ive airport regions have successfully regained

service under the ULCC mode l. Both Portsmouth Inter national at Pease and the Northeast Florida Regional Airport at St. A ugustine have each successfully attracted an ULCC in the past two years (Allegiant and Front ier respectively). In both cases, service has provided an added boost to the region as opposed to attracting passengers from nearby airports, thanks to the ULCC product model.

Ultra Low Cost Carrier Operating Model

The ULCC model is a new type of business model with a different product than has been traditionally seen in the US domestic mark et. The ULCC’s o ffer lower fares and an unbundled product, meani ng that consumers only pay for the services they desire (i.e. checked baggage, carry-on baggage, priori ty boarding, seat assignments, and food and beverages). In many case s, these ULCC’s (Spirit, Frontier, and Allegiant) have

stimulated demand in markets much like how Southwest did during the 1990’s. Passenger demands are increasi ng not by changing their airli ne preferences but rather their mode of transportation, or making additional air travel tr ips. Some of these ULCCs like Allegiant, bundle vacation pa ckages into their already lo w fares which help create

additional value to consumers and often time s result in new demand from families or groups that may have previ ously traveled by car.

Presently, none of the surrounding commercial se rvice airports have service provided by a ULCC, the nearest airpor ts with a ULCC are Boston’s Logan International Airport, nearly two hours away with Spirit Airlines, Stewart Internat ional Airport in Newburgh, NY, and Portsmouth Internati onal at Pease which both hav e Allegiant Air and located just under 2 hours and 30 minut es from Westover. 

## Westover Metropolitan is now the ONLY former SkyBus Airport not to have airline service reintroduced4 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Average Air Fare Differences

In 2013, average domestic air fa res in the U.S. were $381. 1 Citizens in the Massachusetts study region paid higher than the national average fares at HartfordBradley International (5.8 percent higher) and Albany International (13.6 percent higher) in 2013. Prior to the last quarter of 2013, fares were even higher at both HartfordBradley and Albany International.

One newspaper headline from No vember of 2013 read: "Bradl ey Fares $36 More Costly Than National Average." T he secondary headline stated: "Three-Quarters of top 100 airports had lower fares." The article went on to say that of the 100 busiest airports in the country, 25 had higher fares than Bradley. Co mparing Hartford's fares to similarly sized airports, Cleveland's average trip co st $32.80 more, and the other eight airports closest in size were all cheaper. Flights fr om Buffalo were $100 ch eaper. So were those from Fort Meyers. New Or leans flights were $60 less. 2 The Hartford Business Journal had a similar headline in August of 2012 that r ead: "Bradley Airfares Highest in Region. and Rising." The high air fares at Bradley have been known and discussed for some

time.

Worcester Regional Airport is roughly 51 miles and a one hour driv e from Westover Metropolitan Airport. Worcester features one airline - JetBlue. Average fares from Worcester were $281.35 in 2013 - 26.1 percent below the national average. However, JetBlue, while low cost, has fares near the national average. When looking at fares for August 2014, Worcester-Orlando fares r anges from $310 to $417 roundtrip.

A good comparison to what may happen at West over Metropolitan Airport with a ULCC would be Niagara Falls, NY, which is serv ed by two ULCCs: Allegiant Air and Spirit Airlines. While being in the vicinity of other commercial service airports of BuffaloNiagara and Rochester International Airpor ts, neither has been adversely affected by the ULCC service at Niagara Falls. The av erage fare for the airport was $135.40 in

2013. 3 This was 64.5 percent below the national average. A cost co mparison to Niagara

Falls works because the distanc e that the two ULCCs are fl ying to vacation destinations

in Florida and elsewhere would be about the same for Westover Metropolitan Airport.

1 Source: USDOT, Bureau of Transportation Statistics: http://www.rita.dot.gov/bts/airfares/programs/economics_a nd_finance/air_travel_price_index/html/AnnualFares.htm

l

2 Source: Mara Lee, "Bradley Fares $36 More Costly Th an National Average", (The Hartford Courant, Nov. 6, 2013).

3 Source: USDOT, Bureau of Transportation Statistics 

## The ULCC model works in multi-airport regions as evidenced by the recent success at Trenton without adversely affecting Allentown or Atlantic City air

service5 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Boston Logan International is 93 miles away from Westov er Metropolitan Airport and a

95 minute drive with no traffic. Similar to Albany, the air port is outside the proximity concern area, but was included because some air travelers in western Massachusetts use Logan International. Air fares averaged $376.60 in the fourth quarter of 2013, which was 1.1 percent lower than the national average.

Albany International is 93 miles away fr om Westover Metropolitan Airport and a 90

minute drive in low traffic. Th is airport is clearly outside the proximity concern area, but was included because some air travelers in western Massachusetts use Albany International frequently. Air fares averaged $432. 91 in the fourth quarter of 2013. As mentioned, this was 13.6 percent higher than the national average.

Citizens in western Massachusetts have not had adequate access to ultra low fare carrier service in the past

. For example, if each passenger could save $200+ in air fares, our forecast of enplanements (pres ented in Section 3) could show an annual savings to local area residents of over $6 million. From our previous analysis it is also likely that many of these air passengers woul d not have traveled via air, had the price been higher. Thus, they would not be detracting fr om airline service at other airports in the region.



## Westover Metropolitan would offer the only ULCC service in the region, offering a different fare product, delivering value to the region and stimulating demand as opposed to competing with neighboring airports6 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113



### 3. Strategic Plan for Meeting Air Service Needs

Westover Metropolitan Airport currently has no air service, and service on an ultra lowcost carrier such as Allegiant or Frontier is the most likely type of air service the airport can expect to attract. In meetings with eac h carrier, both Allegiant and Frontier have expressed interest in serving Westover . Both Allegiant and Frontier have operated Atlantic City charters from West over in the past, so the airpor t has proven its airfield can accommodate the type of aircraft Allegiant a nd Frontier would operate at Westover, and Westover's terminal can handle the passenger volume.

In describing the strategic plan for meet ing air service needs, the following topics are

discussed:

• Air Service Development Efforts

• Projected Passenger Demand

• Initiation of Ultra Low Cost Carrier Service

• Carrier Needs/Start-up Incentives

Air Service Development Efforts

Westover Metropolitan Airport ha s been approached by several airlines in recent years. Discussions with Allegiant Air have been ongoi ng for about four years, and the airport has had an open dialogue with Frontier Airl ines since October 2012. Allegiant is particularly interested in the Westover market as an alternative airport to the airports in Hartford, Boston, and Worcester. Discussio ns with Frontier also seem promising. Given

Frontier's recent new service from both Trenton, NJ and Wilm ington, DE as an alternate to Philadelphia, Frontier service from Westover , as an alternate to Boston, Hartford, and Worcester, seems reasonable. Both Allegi ant and Frontier have expressed the need for Westover to bear a portion of t he financial risk each airline would incur if it were to begin service at Westover. Allegiant has wr itten a letter supporting this proposal.

Projected Passenger Demand

A simplified method of forecasting passen ger demand was used for this application. Rather than present economet ric models or show leakage an alysis, the forecasts were developed by taking the st art-up schedule that Allegiant or Frontier would likely implement and apply their system- wide load factors to those flights. For Allegiant and Frontier the following proj ected passenger demand can be es timated, assuming four flights per week:



## Targeted airlines (Frontier and Allegiant) have already approached Westover about potential service.7 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Allegiant Forecast

• Flights per week/year: 4/208

• Departing seats per week (MD-80): 664

• 2013 System-wide load factor: 88.9%

• Number of enplanements/week: 590

• Number of enplanements/year: 30,700

• Number of total pa ssengers/year: 61,400

Frontier Forecast

• Flights per week/year: 4/208

• Departing seats per week (A-319): 552

• 2013 System-wide load factor: 90.7%

• Number of enplanements/week: 501

• Number of enplanements/year: 26,100

• Number of total pa ssengers/year: 52,200

The grant request is for a two-year perio d and no growth in enplanements for the second year is assumed (to remain conserva tive). As shown, the forecast passenger enplanements are between 26,100 and 30,700, and the numbe r of flights per year

would total 208.

It is believed that these number s are very conservative and t hat once the ultra low fare service is instituted, it will actually gain ridership in the second year.

Initiation of Ultra Low Cost Carrier Service

Westover Metropolitan has all of the facilities and FAR Part 139 certifications needed to begin airline service immediately and acco mmodate up to 100,000 passengers per year with only minor changes to the exis ting terminal building facilities. The frequency of the Airport's current TSA pers onnel would need to be increased once the airline service began and parking lots may need to be expa nded, but those changes can be made quickly. Thus, the facilities side of the Airport is adequate to accommodate airline service without delay.

The Airport believes Allegiant would likely serve one or more leisure-oriented destinations such as Sanford/Orlando, S t. Petersburg, Punta Gorda, Ft. Lauderdale, and/or Myrtle Beach, while Frontier would mo st likely serve one or more destinations including leisure markets and larger metropol itan areas such as Orlando, Tampa, Ft. Myers, Atlanta, Denver, Cleve land, Chicago, or Washingt on, DC – a route structure

consistent with Frontier’s cu rrent growth strategies. Figure 2 presents a graphical illustration of the potential service poi nts from Westover Metropolitan Airport.

From our forecast, it is likely that the st art-up service would fo cus on only one or two

cities of interest with a total of four flights per week. If additi onal flights were added, they would not be subsidized by our request.8 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Carrier Needs/Start-up Incentives

To invite a new carrier to serve Westover Metropolitan Airport, the sponsor must offer

incentives. Most airlines will not "test" a new market without risk sharing. In fact, there are cases where aircraft have been pulled from a profitable route in order to serve a more profitable route. So in centives are needed to defray costs and limit risks for the new carrier. The Westover Metropolitan Development Corporation has proposed several forms of start-up incentives:

• New Service Advertising/Marketing to the Public

• Airport Fee Waivers

• Ground Handling Fees

New Service Advertising/Ma rketing to the Public

In order to promote the start of airline service, an advertising/marketing program is needed. The Airport will pr ovide media exposure for the new airline service. The plan for marketing and advertising would include: lo cal broadcast and cable television, local radio, local newspaper, and strategically loca ted outdoor boards. It is suggested that a total of $125,000 be set aside to cover these efforts over a two year period. Due to the Figure 2 - Potential Air Service Routes9 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

need to generate the image, mess age and marketing materials in advance, the first year portion will amount to appr oximately $75,000. To sustain the message in year two, the second year portion will be approximately $50,000. These ratios may vary somewhat based upon actual demands. A detailed examination of the most cost effective local media will be conducted at the very onset of this effort, with thorough recommendations written, presented, and approved by the client well in advance of implementation. Periodic review will be conducted quarterly to evaluate the effectiveness of the message and media employed. Adjustments will be made as needed to ensure the most efficient

return on investment.

Airport Fee Waivers

In-kind services from the Airport will incl ude a waiver of landing fees, aircraft parking/apron fees, ground handling fees, terminal use fees, and fuel flowage fees.

• Landing Fees: The Airport currently charges $1.43 per 1,000 pounds in landing

fees for commercial aircraft such as the MD-80 or Airbus 319. These fees would be waived for a two year period as a star t-up incentive. With four flights per week, the value of waiving the landing f ees is $44,500 per y ear for the MD-80, and $49,400 for the Airbus 319.

• Aircraft Parking/Apron Fees: Westover Metropolitan Ai rport currently charges $250 for aircraft parking. This translates in to $52,000 in waived parking fees per

year.

• Terminal Use Fees: Terminal use fees are val ued at $260 per flight. This translates into $54,100 in waived fees per year.

The annual Airport fee waivers can be va lued at $150,600 for the MD-80 aircraft (Allegiant) and $155,500 for the A-319 aircraft (F rontier). Over a two-year period, the higher amount of in-kind fee waiver value totals $311,000.

Ground Handling Fees

Aircraft ground handling involves servicing an aircraft usually when it is parked at the gate of an airline terminal. Typically, it incl udes cabin cleaning service, catering, and ramp service. For this proposal, the va lue of ground handling has been estimated to total $600 per aircraft flight. With four flights per week, the value of ground handling is $125,000 per year. Over the two-year pr oject period, this totals $250,000.10 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113



### 4. Funding Necessary for Implem entation of the Community's Project

In this section, a description of the f unding needed to implement the proposed new service is presented and explained. The secti on is organized to include the following topics:

• Funding Needs

• Project Timeline

• Continuation of Project Acti vities Beyond the Grant Timeline

Funding Needs

As shown in Table 1 , the total cost of the project is $686,000 to include the amount of the requested grant, community-provided cash and the value of in-kind airport

incentives. The requested amount of the grant is $250,000, and community cash funding is $125,000 from the Westover Metropolitan De velopment Corporation. In addition, $311,000 would come from in-kind airport services.

Table 1 - Sources and Types of Proposed Project Funding

Funding Source Grant Cash In-Kind Total

US Department of Transportation $250,000 $250,000

State of Massachusetts $100,000 $100,000

Airport $25,000 $311,000 $336,000

Total $250,000 $125,000 $311,000 $686,000

The total cash funding of $ 375,000 would be divi ded equally between the first two potential routes and equally gr ound handling over two years as shown in Table 2. The marketing expense would be split unequally in the first year re lative to the second year. The reasoning behind this is the need for creative media devel opment in the first year versus the second. Also, the second year of advertising will be directed more toward maintaining ridership than generating new ri dership. In the first year, $75,000 is proposed to be spent on marketing, and $ 125,000 is proposed to be spent on ground handling for a total of $200,000 in Year 1. In the second year $50,000 is proposed for marketing and $125,000 for ground handling for a total of $175,000 in Year 2. The airport incentives valued at up to $311,000 would be credited similarly on a route-byroute basis based on the number of departures oper ated in each of the first two years.11 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Table 2 - Proposed Allocations of Project Cash Funding

Item Marketing Ground Handling Grand

Total Year 1 Year 2 Total Year 1 Year 2 Total

SCASDP Funding Route 1 $25,000 $16,700 $41,700 $41,650 $41,650 $83,300 $125,000

Route 2 $25,000 $16,700 $41,700 $41,650 $41,650 $83,300 $125,000

Total $50,000 $33,400 $83,400 $83,300 $83,300 $166,600 $250,000

Local Funding Route 1 $12,500 $8,300 $20,800 $20,850 $20,850 $41,700 $62,500

Route 2 $12,500 $8,300 $20,800 $20,850 $20,850 $41,700 $62,500

Total $25,000 $16,600 $41,600 $41,700 $41,700 $83,400 $125,000

Total Project Funding Grand

Totals $75,000 $50,000 $125,000 $125,000 $125,000 $250,000 $375,000

Project Timeline

Westover Metropolitan Airport intends to continue its meetings and discussions with both Allegiant and Frontier throughout the ev aluation period of Small Community Air Service Grant proposals, and will be prepar ed to execute a grant agreement with the Department as soon as awar ds are announced. If Westover is awarded a grant, the Airport will advise each airline of the award and determine if ei ther airline is prepared to begin service and when service could begin. Neither carrier would likely announce service sooner than 90 days prio r to beginning service. If service were to begin in the spring of 2015, the service would likely be announced sometime in October or November of 2014. Regardless of when the service is la unched, the proposed program would continue for two years. Westover Metropolitan Airpor t would work with either airline to market the service, and the Air port would file all required quarterly reports.

Table 3 - Proposed Project Timelines

Activity/Project Milestone Estimated Dates

SCASDP Grant Award Announcement September 2014
Execute Grant Agreement with USDOT September/October 2014

Airline Meetings October 2014 - February 2015

Announce Service March 2015

Publish Schedule March 2015
Market/Advertise Route (Pre-Launch) April - June 2015
Monitor Advance Bookings April - June 2015
Adjust Marketing Plan Based on Advanced Bookings April - June 2015
Begin Service July 2015
Market/Advertise Route (Post-Launch) July 2015 and Beyond

Monitor Route Performance July 2015 - July 2017 and Beyond
Submit Grant Status Reports to USDOT Quarterly 3Q 2014 - 4Q 201712 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113

Continuation of Project Activi ties Beyond the Grant Timeline

The project sponsors are conf ident the proposed service will be successful, and the service would likely begin with one route, wit h a second route added once the first route proves to be successful. This optimism is based on the experience of Skybus service at Westover, and the amount of traffic carried fr om the region to leisure destinations and increasingly higher fare trends among the airlines providing service from other airports in the region, such as Hartford. A true low-cost alternative to the fare levels at Hartford, in particular, will drive traffic to the proposed service at Westover.

Given the volatility of fuel costs and other factors beyond the control of the airline industry, the success of the proposed service cannot be assured. The Airport will work closely with the airline or airlines operat ing the proposed service throughout the grant period, and beyond the two-year grant period, to monitor bot h the amount of traffic and the average fares to ensure they are sufficient to sustain the service. In the event the service is not meeting the carrier's expectat ions, both the Westover Metropolitan Airport and the Economic Development Council of Western Massachusetts are prepared to

work with the carrier to address the carrier's concerns. Both project sponsors may be able to provide additional incentives and ma y be able to provide additional advertising and marketing, depending on the carrier's needs.



## Westover maintains low-cost terminal facilities that will be attractive to targeted carriers allowing for sustained service following the incentive period13 Westover Metropolitan Airport Proposal Under SCASDP; Docket DOT-OST-2014-0113



### 5. Designation of a Legal Sponsor Responsible for Administering the Program

The Westover Metropolitan Development Corporation is the legal sponsor responsible for administering the proposed program, and t he Westover Metropo litan Development Corporation is a government entity.

Westover Metropolitan Development Corporation Westover Metropolitan Airport Allan W. Blair, President/CEO 255 Padgette St. Chicopee, MA 01022 413-593-5544 (office )

Public-Private Partnership

The public-private partnership includes the Westover Metropolitan Development Corporation, Chicopee and affiliated Cham bers of Commerce, Greater Springfield Convention and Visitors Bureau, and t he Western Massachusetts Economic Development Council , which is comprised of several leading businesses. Commercial

air service would attract both business a nd leisure passengers an d increase economic development activities via greater access to the community, more jobs at the airport, and lower fares to the traveling public (est imated at more than $6 million in savings annually).

Financial Controls

As the sponsor, the Westover Metropolitan Development Corporation and its governing body, the Westover Metropolitan Developm ent Corporation Bo ard, will be the responsible parties for all fiscal matters and the Department's r eporting requirements. The Westover Metropolitan De velopment Corporation is established as a non-profit 501(c)(4) corporation and is a public governing body. As a pu blic entity, the Department can be assured that proper financial controls are in place to guarantee that the Department’s Grant will be used in accordanc e with any subsequent agreement. The Westover Metropolitan Development Corporat ion Board understands t hat the Grant is a reimbursable grant, meaning t he Board is responsible for program expenditures and will submit invoices to the Department for reimbursement, based on a percentage of the total grant request.RICHARDF.NEALCOMMITTEEONWAYSANDMEANSFIRSTDISTRICT,MASSACHUSETTSRANKINGMEMBER,________SUBCOMMITTEEONSELECTREVENUEMEASURESAT-LARGEWHIPDEMOCRATICLEADER,FRIENDSOFIRELANDCAUCUSnnrcuft1iUniti1itatiiIuusiofprintatiuiii1UaIiintnu,Gt2fl15July29,2014Ms.BrookeChapman,AssociateDirectorSmallCommunityAirServiceDevelopmentOfficeofAviationAnalysisU.S.DepartmentofTransportation1200NewJerseyAvenue,SE.,RoomW-86-307Washington,DC20590-0001Re:DocketDOT-OST-2014-0l13DearMs.Chapman:IampleasedtowriteinsupportoftheapplicationsubmittedbytheWestoverMetropolitanDevelopmentCorporation(WMDC)totheSmallCommunityAirServiceDevelopmentProgram.TheWesternMassachusettsCommunitysurroundingWesteoverishometo32universitiesandcollegeswith120,000studentswhichcreatesasubstantialuntappedtravelmarketinourregion.ThereturnofultralowcostAirServicewouldpromoteastongercivilian/MilitaryjointusepartnershipoftheairportandfurtherenhancetheecnomicimpactbroughttowesternMassachusettsforthebenefitoftheentireregion.WorkingwiththeGorvernor’sMilitaryTaskforceinthecontinuedefforttoprotectandpreservetheWestoverAirBase/MetropolitanAirport’sannual$394milliondollareconomicimpactwth5,300jobs,re-establishingAirServicewouldbenefitregionaltravelerswithreducedfaresandenhancetheproductivityoftheairport.Iurgeyoutogivetheirapplicationyoureveryconsiderationandkeepmeup-to-dateonanyupdatesthroughoutthegrantprocess.Sincerely,RichardE.NealMemberofCongress2208RAYBURNHOUSEOFFICEBUILDING300STATESTREETSILvIO0.C0NTEFEDERALBUILDINGWASHINGTON,DC20515SuITE20078CENTERSTREET(202)225-5601SPRINGFIELD,MA01105PITTSFIELD,MA01201(413)785-032514131442-0946PRINTEDONRECYCLEDPAPERJuly 25, 2014

Ms. Brooke Chapman, Associate Director Small Community Air Service Development Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Avenue, S.E., Room W

- 86

- 307 Washington, DC 20590

Dear Ms. Chapman:

On behalf o f the G reater Springfield Convention and Visitors Bureau (GSCVB)

, I am writing today to support the $250,000 grant application being submitted by Westover Metropolitan Development Corporation, the owner/operator of Westover Metropolitan Airport in Chicopee , MA

, for the “Small Community Air Service Development Program” (SCASDP) Docket DOT

- OST

- 2014

- 0113

.

As an affiliate of the Economic De velopment Council of Western M A, our mission is to promote the Pioneer Valley of

Western MA as a year

- round destination f or conventions, meetings, sports, group tour and leisure travel. By reintroducing c ommercial air service to the area, it will not only attract business, but will bring visitors to

— and generate economic growth for

— our local economy

.

The Pioneer Valley re gion is the second

- largest metropolitan area in Massachusetts . Westover Metropolitan Airport’s strategic location between Boston, Albany, Hartford, and Brattleboro makes it an ideal location for visitors to access our

one

- of

- a kind tourist attractions, fir st

- class events , hotels, restaurants and shopping.

The W estern Massachusetts community has lacked scheduled air service by an ultra

- low cost carrier for more than six

years , since the departure of Skybus. With the solicitation of a new low

- cost air servic e provider via Allegiant Air and /or Frontier Airlines, we will increase our ability to market the Pioneer Valley and enhance promotional opportunities in the

future

.

Funding for this project will not only result in positive local economic development

, bu t will stimulate leisure tourism and conventions and meetings in the Pioneer Valley of Western MA.

I respectfully request your favorable consideration of this grant application

.

Sincerely,

Mary Kay Wydra

PresidentMassMutual Financial Gro up is a marketing designation for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and s ales representatives.

1295 State Street  Springfield, MA 01111

- 0001  (413) 788

- 8411 Roger W. Crandall

Chairman, President and Chief Executive Officer

1295 State Street B101 Springfield, MA 01111

- 0001 Tel ( 413 ) 744

- 1606

rcrandall@massmutual.com

July 29, 2014

Ms. Brooke Chapman Small Community Air Service Development Office of Aviation Analysis U.S. Department of Transportation 1200 New Jersey Avenue, S.E., Room W

- 86

- 307 Washington, D.C. 20590

Dear Ms. Chapman,

I am writing to lend my support to Westover Metropolitan Development Corporation’s (WMDC) application for a $250,000 Small Community Air Service Development Program grant.

The grant would enable the WMDC to promote low

- cost airline service out of Westover Metropolitan
Airport in Chicopee, Mass., for the first time in six y ears. The funds would be used to market this

much

- needed service to the public and help ensure its success.

Establishing this service with such possible carriers as Allegiant Air and Frontier Airlines will provide

residents with a convenient and affordabl e travel option, maximize the use and productivity of the
airport, and drive business and tourism throughout Western Massachusetts.

MassMutual is proud to have called Western Massachusetts home since our founding here 163 years
ago. We are headquartered i n nearby Springfield, Mass., and have more than 5,200 employees in this
area. As one of the largest employers in the region, we have a long history of driving and supporting
local economic development and know that offering flights with competitive fares w ill boost business

in the area.

In fact, the WMDC’s plan aligns perfectly with other efforts underway to improve access to Western
Massachusetts and other points throughout New England. These projects include creating a regional
transportation hub through the $81 million restoration of Springfield’s historic Union Station and

building a commuter rail to connect New Haven and Hartford, Conn., to Springfield and other cities.

A low

- cost airline service at Westover would be a benefit to our residents, our bus inesses, and our
local economy. On behalf of MassMutual, I encourage you to approve this grant request and help the
WMDC make a positive difference in the revitalization of the region.

Sincerely,

Roger W. Crandall