# Jack Brooks Regional Airport Beaumont, Texas

Proposal under the Small Community Air Service Development Program

Docket DOT

- OST

- 2012

- 0069

Dun & Brad street DUNS Number : 010807535 Tax Identification Number: 74

- 6000291 Two Digit Congres sional District Code: 02

June 11, 2012 

# BPTJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 2 

## TABLE OF CONTENTS

INTRODUCTORY LETTER

................................ ................................ ................................ .................... 4
EXECUTIVE SUMMARY

................................ ................................ ................................ ........................ 5
AIR SERVICE OVER VIEW

................................ ................................ ................................ ..................... 7 Catchment Area and Alternate Airports

................................ ................................ ................................ ................. 7 Existing Air Service

................................ ................................ ................................ ................................ ................ 8 Air Service Development Efforts

................................ ................................ ................................ ............................ 8


### AI R SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

................................ ............................... 9 Capacity, Domestic Traffic and Domestic Fare Trends in Beaumont/Port Arthur

................................ ................. 9 Beaumont/Port Arthur's Domestic Fare Premium to the Average Lower 48 Airport

................................ ............ 10 Beaumont/Port Arthur's Largest Domestic Markets

................................ ................................ ............................. 12 Leakag e to Other Airports in the Region

................................ ................................ ................................ .............. 13 

### STRATEGIC PLAN

................................ ................................ ................................ .............................. 16 Marketing Beaumont/Port Arthur's Air Service Is Essential

................................ ................................ ................. 16 Upgrading Service from Turboprop to Regional Jet Aircraft

................................ ................................ ................ 17 The Significance of Houston Service

................................ ................................ ................................ ................... 18 Marketing Beaumont

- Houston Service

................................ ................................ ................................ ................ 18 Grant Amendments/Alternate Strategies

................................ ................................ ................................ ............. 21 

### PROJECT IMPLEMENTATION, MONITORING AND FUNDING

................................ .......................... 22 Public / Private Partnerships

................................ ................................ ................................ ................................ 22 Project Funding

................................ ................................ ................................ ................................ .................... 23 Implementation Timeline

................................ ................................ ................................ ................................ ...... 24 

### PROJECT MONITORING AND FINANCIAL CONTROL

................................ ................................ ...... 25
Goals and Success Metrics

................................ ................................ ................................ ................................ .. 25 Legal Sponsor and Financial Controls

................................ ................................ ................................ ................. 25 

### APPENDIX A: REQUIRED SUMMARY INFORMATION

................................ ................................ ..... 26

A. Applicant Information

................................ ................................ ................................ ................................ .... 26
B. Public/Private Partnerships

................................ ................................ ................................ .......................... 26
C. Project Proposal

................................ ................................ ................................ ................................ ........... 27
D. Existing Landing Aids at Local Airport

................................ ................................ ................................ .......... 27
E. Project Cost

................................ ................................ ................................ ................................ .................. 27Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 3 F. In

- Kind Contributions**

................................ ................................ ................................ ................................ . 28
G. Is this application subject to review by state under Executive Order 12372 Process?

................................ 28
H. Is this applicant delinquent on any federal debt?

................................ ................................ ......................... 28 

### APPENDIX B: LETTERS OF SUPPORT

................................ ................................ ............................. 29Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### INTRODUCTORY LETTERJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 5 

### EXECUTIVE SUMMARY

Jack Brooks Regional Airport located in Beaumont, Texas
, is proposing a Small Community Air Service Development Grant in the amount of $200,000 to supplement a community

- based cash contribution of $5 0 ,000 to develop and implement a marketing and advertising campaign to build general awareness of the community's local air service, communicate the convenience of originating trips at the local airport versus the airports in
Houston and to support the introduction of United Express regional jets at Beaumont/Port Arthur wh en Colgan Airways discontinues the Saab 340 turboprop service it currently operates for United Express at Beaumont/Port
Arthur

.
The community believes a targeted marketing and advertising campaign will have an immediate impact on the airport's traffic and position United Express for success once its flights are upgraded to regional jets. Federal
fu nding is critical to the achieve the objective of building traffic at the airport, as the a irport’s own limited budget is not large en ough to support a comprehens ive marketing and advertising campaign

. Because the United Express service is the only air service remaining in Beaumont/Port Arthur, it is essential for United's regional jet service to be successful. If the service is not successful, and proves to be a financial burden for United, Beaumont/Po rt
Arthur could lose the service, and the community would be left with no scheduled passenger service.

In 2011, t he average domestic fare at Jack Brooks Regional Airport was $315 each way , or $630 roundtrip,
excludi ng any taxes or fees. Since 1997 when Beaumont/Port Arthur's domestic traffic peaked and the average domestic fare was a reasonable $156 each way, the average domestic fare has increased 101.8%. The high fare give s Beaumont/Port Arthur the distinction of having the second highest average domestic fare of any airport in the Lower 48 United States with commercial airline service and compares to an average fare of $171 for all Lower 48 airports. Only Inyokern, California
, had a higher average domestic fare t han Beaumont/Port Arthur in 2011.

Airline capacity at Beaumont/Port Arthur is down significantly from its peak in the 1990s. In 2011, the service operated by United Express on the turboprop aircraft averaged just 138 seats per day each way on five fligh ts to United's hub at Houston Intercontinental Airport. This compares to airlines operating more than 600 seats per day each way as recently as 1998 when Continental Express and Continental Connection (now part of United) operated service to Houston and b oth American Eagle and Delta Connection operated service to Dallas/Ft.
Worth.

As the community has lost capacity and fares have increased, traffic has declined significantly. In fact, although Beaumont's capacity is down 77.8% from its peak in 1997, domes tic traffic is down 88.5% to just 33.5 PDEW in
2011. A recently

- completed leakage study of traffic or ig inating in the Beaumont/Port Arthur catchment area
determined 97. 5% of the traffic leaks to the two airports in Houston

.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

- OST

- 2012

- 0069 6 Unless the negative trends, especially the decline in traffic , are reversed, Beaumont/Port Arthur could loose its remaining air service. The probability of securing network carrier

- coded service connecting the community to a network carrier's hub in the event United Express disconti nues its service is unlikely. The proposed marketing and advertising campaign could help reverse the decline in traffic and soli di fy United Express' presence in
Beaumont/Port Arthur.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### AIR SERVICE OVERVIEW

Catchment Area and Alternate Airports

The Beaum ont/Port Arthur Metropolitan Statistical Area is considered as the primary catchment area for Jack Brooks Regional Airport. The July 1, 2011
, Census Bureau population estimate of the Beaumont/Port Arthur Metropolitan Statistical Area was 390,535 r esidents. The metropolitan statistical area consists of Jefferson, Orange and Hardin Counties , all in Texas.

Other airports with commercial airline service in the region ( and the highway distance ) from Jack Brooks Regional Airport are Houston Intercontinental Airport (103 miles), Houston Hobby Airport (96 miles) and Lake Charles Regional Airport (68 miles).

Exhibit 1: 30

- , 45

- and 60

- Minute Drive T imes from Jack Brooks Regional Airport and the Location of Alternate Airports in the Re gionJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### Existing Air Service

Beaumont/Port Arthur is served only by United Express with service to United's hub at Houston Intercontinental Airport with three flights per day. The service is currently operated by Colgan Airways using Saab 340 turboprop aircraft, but Colgan has indicated it will retire its entire f leet of Saab aircraft and disconti nue operating the Saab in Summer 2012. In place of the Saab operated by Colgan, Unit ed has indicated it will operate regional jet aircraft on the Beaumont/Port Arthur route when Colgan discontinues Saab service. A transi tion date has not been finalized or communicated to the airport as of this writing.



### Air Service Development Efforts

Preliminary discussions with American Airlines regarding potential American Eagle service from Beaumont/Port
Arthur to Dallas/Ft. Worth have not been encouraging. Officials at American believe Beaumont/Port Arthur's proximity to the airports in Houston would prevent American Eagle from penetrating a significant share of the traffic generated in Beaumont/Port Arthur's catchment area. Ame rican does not believe a schedule with two or three flights to its hub in Dallas/Ft. Worth would be competitive with the number of nonstop flights available at relatively competitive fares to the significant number of nonstop destinations available from Ho uston Intercontinental and Houston Hobby. American has also cited uncertainty regarding the number of regional jets it will operate in the future given its bankruptcy. While American hopes to grow its regional airline operation at
Dallas/Ft. Worth once i t emerges from bankruptcy protection , growth will likely be dependent on labor agreement s and the resulting post

- bankruptcy cost structure. We will continue the dialogue with American and highlight any competitive changes in the Houston market that would be favorable relative to A merican's position in
Beaumont/Port Arthur.

The ai rport has also held preliminary disc ussions with an airline currently operating less

- than

- daily service with
mainline aircraft from small communities to large leisure destinations such as Las Vegas and the Orlando area. The discussions have been somewhat encouraging because the airline advised airport management it would continue to evaluate Beaumont/Port Arthur as a potential market and continue to monitor the Las Vegas and
Orland o competitive environment s at the Houston airports.

The airport has also discuss ed potential service to Dallas Love Field and Austin with SeaPort Airlines. SeaPort operates single engine turboprop aircraft in essential air service markets from Love Field and has expressed some interest in extending to markets such as Beaumont /Port Arthur beyond Love Field outside the essential air service program. Dallas/Ft. Worth is Beaumont/Port Arthur's largest market, and nonstop service to Love Field
could be viable with a pricing strategy and schedule that generates enough traffic and revenue to cover the airline's cost and targeted profit margin.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

Capacit y , Domestic Traffic and Domestic Fare Trend s in Beaumont/Port Art hur

Within the last 15 years, Beaumont/Port Arthur ' s airline capacity peaked in 1998 at more than 600 seats per day each way. In 2011, capacity stood at just 138 seats per day each way, a decline of 77.8% versus the peak in
1998. As Beaumont/Port Arthur lost capacity, traffic declined and stood at just 33 domestic passengers per day each way (PDEW) (plus an additional four international PDEW) in 2011 and represents a decline of 92.2% since domestic traffic peaked at 300 PDEW in 1997. The average one

- way domestic fare, exclusive of any taxes and fees, at Beaumont/Port Arthur was $315 in 2011

– the second highest average domestic fare of any com munity in
the United States with commercial airline service.
Over the last 15 years, Beaumont /Port Arthur lost service on both Delta Connection and American Eagle to Dallas/Ft. Worth, US Airways Express service to New Orleans and most recently, Delta Connection service to
Atlanta in 2005. The only remaining airline service in Beaumont/Port Arthur is the United Express service to
United's hub at Houston Intercontin ental Airport.

Exhibit 2 : Seats per Day Ea ch Way , Domestic Passengers per Day Each Way (PDEW) and Average Domestic Fare at Jack Brooks Regional Airport Year

- End Fourth Quarter 1996

- 2011 (DB1B and T

- 100 data)Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### Beaumont/Port Arthur's Domestic Fare Premium to the Average Lower 48 Airport

At $315 each way, Beaumont/Port Arthur's average domestic fare was 84.5% higher than the average domestic fare of $171 at the average Lower 48 air port in 2011 ; Beaumont/Port Arthur's average domestic fare was $144 higher than the average Lower 48 airport. While Beaumont/Port Arthur's average domestic fare has been higher than the average domestic Lower 48 fare in each of the last 16 years, Beaumont/Port Arthur 's premium to the Lower 48 airport was as low as 3.1% in 1998.

Exhibit 3 : Average Domestic Fare at Beaumont/Port Arthur Versus the Average Lower 48 Airport

– Year

- End Fourth Quarter 1996

- 2011 (DB1B data)Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 11 Not only was Beaumont/Port Arthur's 2011 average domestic fare of $315 high relative to the average Lower 48 airport, but Beaumont/Port Arthur's fare was so high, it ranked as the second highest domestic fare for all Lower 48 airports in 2011. Only Inyoke rn, California had a higher average domestic fare.

Exhibit 4 : Origin and Destination Passengers, Passengers per Day Each Way (PDEW) and Average Domestic Fare at the 25 Highest Fare Airports in the Lower 48 United States in 2011 (DB1B data)Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### Beaumont/Port Arthur's Largest Domestic Markets

Based on DOT data for the 12 months ending in December 2011, Dallas/Ft Worth, Washington/Baltimore, the Los Angeles Basin, Austin and San Antonio are Beaumont Port Arthur's five largest domestic markets. T he 30 largest domestic marke ts are illustrated in Exhibit 5 and generated 22 PDEW. I t should be noted the 30 largest domestic markets generate approximately two

- thirds of Beaumont/Port Arthur's total domestic traffic. It should
also be noted these marke ts generated 188 more passengers per day each way , or a total of 210 PDEW in 1997
wh en Beaumont's traffic peaked; t raffic in these markets is down 89.5% since 1997. Each of the 30 largest
mark ets is served nonstop by United from its hub at Houston Interco ntinental, so retaining the existing service is essential for the community's air service needs.

Exhibit 5 : Annual Origin and Destination (O&D) Passengers and Passengers per Day Each Way (PDEW) in Beaumont/Port Arthur's 30 Largest Domestic Markets in the 12 Months Ending in December 2011 (DB1B data)Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 13 

### Leakage to Other Airports in the Region

There is significant demand for air service in Beaumont/Port Arthur. While DOT data indicates the airport generated just 33 domestic and four international PDEW in 2011, a leakage study completed in March 2012 using data for the 12 months ending in Septem ber 2011, calculated true demand of 1,408 domestic and 213
international PDEW

. Jack Brooks Regional Airport retains only 2.5% of the domestic and international traffic generated in its catchment area. Houston Intercontinental Airport captures nearly two

- t hirds of Beaumont/Port Arthur's traffic, and Houston Hobby Airport captures almost one

- third of the traffic. This translates to 1,075 PDEW lost to Houston Intercontinental Airport and 508 PDEW lost to Houston Hobby Airport.

Exhibit 6 : Share of Traffic Or iginating by Airport for Beaumont/Port Arthur Catchment Area Domestic and International Traffic October 2010

– September 2011 (March 2012 Leakage Study Data )Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 0069 14 The high shares of traffic leaked to Houston International Airport translates to 1,075 domest ic and international PDEW and the share of traffic lost to Houston Hobby Airport translates to 508 domestic and international PDEW.

Exhibit 7 : Number Passengers Captured by Airport for Beaumont/Port Arthur Catchment Area Domestic and International Traffic October 2010

– September 2011 (March 2012 Leakage Study Data )Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 0069 15 The high percentage of traffic leaked to the airports in Houston is not surprising given the small amount of airline

ca pacity operated by United Express at Beaumont/Port Arthur, the number of nonstop destinations and the number of flights operated at both Houston Intercontinental and Houston Hobby and the competitive pricing
environment in the Houston market. Based on the leakage study, the average fare (the domestic and international average) paid when a passenger leaks from Beaumont/Port Arthur to Houston Intercontinental was $298, and the average fare paid was $152 when a passengers leaks to Houston Hobby. This compare s to an average fare of $353 paid at Beaumont/Port Arthur.

Exhibit 8 : A verage Fare Paid by Beaumont/Port Arthur Catchment Area Passengers by Originating Airport

– October 2010

– September 2011 (March 2012 Leakage Study Data )Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### STRATEGIC PLAN

The air service development challenges in Beaumont/Port Arthur are clear : capacity is limited , the average fare paid by domestic travelers is extremely high and ranks as the second highest in the Lower 48 United States, service is provided by only one airline, an d 97.5% of the traffic generated in the catchment area is lost to the two airports in Houston. Despite these challenges, United Airlines plans to begin operating regional jets from Beaumont to its hub at Houston Intercontinental Airpor t when Colgan Airway s retires the Saab 340 aircraft from
its fleet in Summer 2012.


### Marketing Beaumont/Port Arthur's Air Service Is Essential

With the exception of the American Airlines hub at Dallas/Ft. Worth, Beaumont/Port Arthur is relatively isolated from other major airl ine hubs , and given American's reluctance to serve Beaumont/Port Arthur
, the community effectively has no viable option to recruit another network carrier to the community to supplement the existing network carrier service operated by United to Houston Int ercontinental

. The airport and the community believe the best way to reverse the unfavorable trends relative to the community's air service is to begin marketing its existing United service and the convenience of flying from Jacks Brooks Regional Airport. Marketing the existing service would not only benefit the community directly by increasing enp lanements at the local airport and reducing leakage, but it would also solidify United's presence in the communi ty by generating more traffic and revenue for
Un ited.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### U pgrading Service from Turboprop to Regional Jet Aircraft

United has taken a big step by committing regional jets that are more expensive to operate and maintain t han the Saab 340 turboprops the regional jets are replacing on the Beaumont/Port Arthur

- Houston route

. The community 's goal is to support United's decision by aggressively marketing United's service at Jack Brooks Regional Airport in an effort to prevent United from discontinuing service to Beaumont/Port Arthur. Ana lysis of
DOT T

- 100 data indicates the existing turboprop service operates with a low load factor (see exhibit 9 ). Between March 2011 and February 2012 (the latest mon th for which data is available), the highest load factor achieved was just 33% in May 201 1. United likely believes the introduction of regional jets will boost load factors given the unwillingness of some travelers to travel on turboprops. Unless traffic increases sufficiently enough to generate satisfactory load factors once United begins serving Beaumont/Port Arthur with regional jets, United may not be willing to operate the service with load factors as low as those generated with the Saab turboprop aircraft.

Exhibit 9 : Colgan Airways Beaumont/Port Arthur Load Factor by Month

– March 201 0

- February 2012 (DOT T

- 100 Data)Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### The Significance of Houston Service

As illustrated on the map in Exhibit 10 , United will serve more than 175 destinations with an average of 619 flights per day in July 2012 (based on OAG data as of June 1, 2012) from its hub at H oust on Intercontinental Airport. Houston is United's largest hub based on the average number of flights per day

. The number of cities served and the number of flights operated from Ho uston by United are significant and provide travelers in B eaumont/Port
Arthur with the convenience of a one

- stop connection to all major U.S. business centers and several major destinations in South America and Europe.

Exhibit 10 : Routes Operated by United Airlines from Houston Intercontinental Airport (July 201 2 OAG Data)



### Marketing Beaumont

- Houston Service

Jack Brooks Regional Airport i s seeking a Small Community Air Ser vice Development Grant to provide essential marketing and advertising support for United's service from Beaumont/Port Arthur to Houston Inte rcontinental

.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

- OST

- 2012

- 0069 19 The community believes a marketing and advertising program would result in more traffic for United and help mitigate the risk United has assumed by committing regional jets to the market in place of the Saab 340 turboprops Colgan Airways wi ll retire.

One of the primary reasons for the high amount of l eakage from Beaumont/Port Arthur to the airports in Houston
, aside from the issue of high fares, is a lack of knowledge within the community
about the air service at Jack Brooks Regional Airport

. Those who live in the airport's catchment area are not conditioned to check local fares first, before book ing flights from the airports in Houston, or they simply assume Southwest offers the lowest fares from Houston Hobby and book travel on Southwest

w ithout checking if flying from Beaumont/Port Arthur is an option. Over the long run, a general lack of awareness regarding air service available at Jack Brooks Regional Airport could ultimately result in the community losing its air service and
constrain the community's ability to develop its economy. The primary theme of the marketing campaign will therefore be to
remind tra velers to check local fares (while Beaumont/Port Arthur fares are generally high, sale fares are sometimes available) the convenience of flying from the local airport before booking trav el from the airports in Houston, and communicate the comfort and reliability of regional jet service. The campaign will highlight local air service affordability and availability, by showing direct comp arisons on certain routes between the fares offered from Jack Brooks Regional Airport and the airports in Houston. The campaign will also have a focused message aimed at promoting the introduction of United's regional jets, in an effort to improve the per ception of poor reliability and undependable s ervice operated from Beaumont/Port Arthur to Houston on the service operated by Colgan Airways.

Under the proposed plan, Jack Brooks Regional Airport would implement a comprehensive marketing campaign,
saturati ng the entire airport catchment area in the three counties that comprise the Beaumont/Port Arthur metropolitan statistical area.

The campaign will be designed to include frequent radio, television, newspaper and billboard advertising, along
with giveaway s. The Airport seeks $200,000 in federa l funds, to be paired with $50,000 in local funding , from the Airport and its community partners to support this marketing and advertising campaign. The campaign is planned
to last for two years

.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

- OST

- 2012

- 0069 20 Jack Brooks Regiona l Airport will develop a comprehensive marketing and advertising placement plan, which will
include media buys on local and regional radio stations, along with local and regional newspapers, magazines and business publications . The campaign will be focuse d in the immediate Beaumont/Port Arthur metropolitan
statistical area to include Jefferson, Orange and Hardin Counties.

Other types of marketing will include better airport branding, a redesigned airport website for ease of booking flights on the airport's website via a booking engine
, and better awareness of specific flight schedules, with ba nner ads promoting United's service. The Airport also plans specific outreach to area businesses, through Airport

affiliated employees, to meet with those who travel most frequently and ensure they are aware of the benefit of using local air service.

Rough drafts have been created for some of the adver tising slated for newspaper, magazine and business publication runs. P rint advertiseme nt s will promote the number of c onnections available on United at Houston
Intercontinenta l, the convenience of flying from the local airport, and th e hidden costs of flying from the airport s in
Houston. 97.5% of Beaumont/Port Arthur travelers drive to Houston to originate trips , despite the cost of gas, the cost of parking once they arrive at the airport in Houston and the uncertain driving conditions between Beaumont
and Houston. The marketing and advertising campaign will seek to increase awareness that a trip will be much

mo re convenient and comfortable by originating the trip at Jack Brooks Regional Airport on United , especially now
that United will begin operating regional jets from Beaumont/Port Arthur

.
The Airport believes the proposed marketing and advertising campaign will have an immediate impact on United's
traffic . The overarching goal is to increase the knowle dge about local air service, to increase enplanements and

r educe leakage to airports in Houston
, and to ensure a long

- term partnership with United in Beaumont

.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### Grant Amendments/

Alternate Strategies

Beaumont/Port Arthur ' s primary air service development goal is to market the air service available from the community's airport in an effort to increase enplanements, reduce leakage and solidify United's presence in Beaumont/Port Arthur. We foresee no circumstance that would prevent implementation of the proposed
market ing plan. A worst case scenario would be United discontinuing service to Beaumont/Port Arthur before the proposed two

- year marketing plan is completed . In this scenario, the community would request any remaining grant funding be used in the form of a re venue guarantee that could be implemented if a new carrier were to enter
the market.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### PR OJECT IMPLEMENTATION, MONITORING AND FUNDING Public / Private Partnerships

The community's su pport for long

- term depe ndable air service connecting Beaumont/Port Arthur with a large number of destinations is widespread. In addition to the formal marketing and communications plan, the follow ing organizations have pledged their support, either with pledges of financial support or pledges to use the ai r service currently available at Beaumont/Port Arthur.

Public

 Jefferson County, Texas

 Hardin County, Texas

 Orange County, Texas

 City of Beaumont

 City of Port Arthur

 City of Groves

 City of Nederland

 City of Port Neches

 Nederland Economic Development Corpora tion

 Port Arthur Economic Development Corporation

 Beaumont Chamber of Commerce

 Port Arthur Chamber of Commerce

 Groves Chamber of Commerce

 Port Neches Chamber of Commerce

 Beaumont Convention and Visitors Bureau

 Port Arthur Convention and Visitors Bureau

Private

 Baptist Hospitals of Southeast Texas

 Christus Hospital

 DSR & Associates, Inc.

 M&M Air Service of Beaumont, Inc.

 ValeroJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### Project Funding

In addition to the Small Community Air Servi ce Deve lopment Grant of $200,000 requested from the Department, organizations in the community are willing to prov ide cash of $ 50,000 over the two

- year life of the project . The
total value of cash contributions fro m the community is valued at $50,000 or 25% of the requested grant amount of $200,000 and 2 0% of the total project cost of $250,000

. The sources of the $50,000 in matching funding are $40,000 from Jefferson County, Texas general revenue funds and $10,000 from the County's Hotel Occupancy
Tax.

Exhibit 11 : Summary of Sources and Types of Projec t Funding

.Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### Implementation Timeline

The proposed implementation timeline for the project assumes the Department will award Small Communit y Gra nt Funding in August 2012 . Once the award is announced
, Jefferson County will execute the funding agreement with the Department of Transportation , and once the agreement is in place with the DOT, a formal agreement will be executed with a marketing and advertising firm to deve lop and implement the creative materials. The urgent nature of the project will requi re a very short implementation timeline, and the marketing and advertising campaign could be launched within 30 days of executing the agreement with the DOT. The Airport will continue its marketing pro gram and continue to work with the airline to moni tor the route once the marketing and communications strategy is launched . The Airport will submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the grant

.

Exhibit 12 : Proposed Project TimelineJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### PROJECT MONITORING AND FINANCIAL CONTROL

Goals and Success Metrics

The success of the program will be based not only on a higher number of enplanements on the United Express service to Houston Intercontinental, but also on a higher load factor. Because the capacity of the Saab 340 aircraft currently operated by Colgan Airways is 30 passengers, and the regional jets United will operate have either 37 or 50 seats, increased enplanements alone will not be an effective measure of success. To be successful, the program will need to generate both more enplanements and a higher load factor since the aircraft size will increase and the cost of operating the regional jets will be higher than the cost of operating the Saabs.

Theoretically, more seats per flight s hould enable United to offer more seats priced in lower fare buckets, and the average passenger fare should decline (or at least not increase as much as the fare would increase without any seat growth), so a second measure of success will be either a decli ne in the average fare paid or a decline in the rate at which fares are increasing . Because pricing is based on several variables beyond the community's control, we cannot assume more capacity will result in lower average fares. We will continue to monit or Beaumont/Port Arthur fare trends and correlate any changes with changes in both traffic and capacity.



### L egal Sponsor and Financial Controls

Jefferson County, Texas
, owns and operates Jack Brooks Regional Airport and will be the legal sponsor responsible for administering the program. Jefferson County, Texas
, is a government entity. As the operator of the Jack Brooks Regional Airport, Jefferson County, Texas
, will be the responsible pa rty for all fiscal matters and the Department of Transportation's repo rting requirements. The a irport has experience managing and monitoring

numerous State of Texas and FAA AIP grants for various airport capital improvement and compliance projects. As a public entity
, the Department can be assured that proper financial con trols are in plac e to guarantee that the Department's grant will be used in accordance with any subsequent agreement. Administrators of the county understand that the grant is a reimbursable grant, meaning the Airport is responsible for program expenditur es and will submit invoices to the US DOT for reimbursement, based on a percentage of the total grant request. The point of contact will be the Airport Director:

Jennifer L. Hogancamp, C.M. Airport Director Jack Brooks Regional Airport 4875 Parker Drive Beaumont, TX 77705 409

- 719

- 4900 (office) jhogancamp@co.jefferson.tx.usJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

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### APPENDIX A: REQUIRED SUMMARY INFORMATION

A. Applicant Information

Not a Consortium

Interstate Consortium

Intrastate Consortium
Community now receives EAS subsidy
Community (or Consortium member) previously received a Small Community Grant
If previous recipient: Date of Grant: September 16, 2002 Expiration Date of Grant: June 2006 (two extensions were granted)



### B. Public/Private Partnerships

Public

 Jefferson County, Texas

 Hardin County, Texas

 Orange County, Texas

 City of Beaumont

 City of Port Arthur

 City of Groves

 City of Nederland

 City of Port Neches

 Nederland Economic Development Corporation

 Port Arthu r Economic Development Corporation

 Beaumont Chamber of Commerce

 Port Arthur Chamber of Commerce

 Groves Chamber of Commerce

 Port Neches Chamber of Commerce

 Beaumont Convention and Visitors Bureau

 Port Arthur Convention and Visitors Bureau

Private

 Airport Travel Agency

 Baptist Hospitals of Southeast Texas

 Christus Hospital

 DSR & Associates, Inc.

 M&M Air Service of Beaumont, Inc.

 ValeroJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### C. Project Proposal

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 S ecure Additional Service Other (explain below)

_______________________________________________________________________________________

_______________________________________________________________________________________ 

### D. Existing Landing Aids at Local Airport

Full ILS Outer/Middle Marker Published Instrument Approach Localizer Other (specify)



### E. Project CostJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### F. In

- Kind Contributions**

For funds in lines 5 a (Air port In

- Kind contribution) and 5 b (Other In

- Kind contribution), please describe the source(s) of fund(s) for each.
(5a) N/A (5b) N/A



### G. Is this application subject to review by state under Executive Order 12372 Process?

a. This application was made available to the State under the Executive Order 12372 Process for review on (date):

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



### H. Is this applicant delinquent on any federal debt?

No
Yes (explain)Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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### A PPENDIX B: LETTERS OF SUPPORTJack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 30Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 31Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 32Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 33Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 0069 34Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 35Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 36Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 0069 37Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 0069 38Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 39Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 40Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 41Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 42Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 43Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 44Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 45Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 46Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 47Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 48Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

- OST

- 2012

- 0069 49Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

- OST

- 2012

- 0069 50Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

- OST

- 2012

- 0069 51Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT

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- 2012

- 0069 52