Jack Brooks Regional Airport

Beaumont, Texas

Proposal under the Small Community Air Service Development 

Program

Docket DOT-OST-2012-0069

Dun & Bradstreet DUNS Number: 010807535

Tax Identification Number: 74-6000291

Two Digit Congressional District Code: 02

June 11, 2012

BPT
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

2

TABLE OF CONTENTS

INTRODUCTORY LETTER .................................................................................................................... 4

EXECUTIVE SUMMARY ........................................................................................................................ 5

AIR SERVICE OVERVIEW..................................................................................................................... 7

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

Existing Air Service ................................................................................................................................................ 8

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

AIR 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

Leakage 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 ..................................................................................................................................................27
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-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............................................................................................. 29
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

4

INTRODUCTORY LETTER
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-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 $50,000 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 when 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 

funding is critical to the achieve the objective of building traffic at the airport, as the airport’s own limited budget is 

not large enough to support a comprehensive 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/Port 

Arthur could lose the service, and the community would be left with no scheduled passenger service.

In 2011, the average domestic fare at Jack Brooks Regional Airport was $315 each way, or $630 roundtrip, 

excluding 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 

gives 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 than 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 flights 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 both 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, domestic traffic is down 88.5% to just 33.5 PDEW in 

2011. A recently-completed leakage study of traffic originating 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 discontinues its service is unlikely. The proposed marketing 

and advertising campaign could help reverse the decline in traffic and solidify United Express' presence in 

Beaumont/Port Arthur.
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

7

AIR SERVICE OVERVIEW

Catchment Area and Alternate Airports

The Beaumont/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 residents. 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 Times from Jack Brooks Regional Airport and the Location of Alternate Airports in the 

Region
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

8

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 fleet of Saab aircraft and discontinue operating the Saab in 

Summer 2012. In place of the Saab operated by Colgan, United has indicated it will operate regional jet aircraft 

on the Beaumont/Port Arthur route when Colgan discontinues Saab service. A transition 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. American 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 Houston 

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 it emerges from bankruptcy protection, growth will likely be dependent on labor agreements 

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 American's position in 

Beaumont/Port Arthur.

The airport has also held preliminary discussions 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 

Orlando competitive environments at the Houston airports.

The airport has also discussed 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-OST-2012-0069

9

AIR SERVCE DEVELOPMENT NEEDS AND DEFICIENCIES

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

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 community 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 Intercontinental Airport. 

Exhibit 2: Seats per Day Each 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)

551 561

621

528

430

339

266 203

267

226

169 165 157 148 144 138

284 300 289

257

231

191

138

107

138

119

100 9 0

6 2 5 0 4 7 3 3

$163 $156 $155 $156

$166

$162

$168

$207

$183 $189

$210

$188

$244 $245

$271

$315

$0

$50

$100

$150

$200

$250

$300

$350

$400

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Average One-Way Fare Seats and Passengers per Day Each Way

Seats per Day Each Way Domestic Passengers per Day Each Way (PDEW) Average Domestic Fare
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

10

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 airport 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)

$163 $156 $155 $156

$166 $162 $168

$207

$183 $189

$210

$188

$244 $245

$271

$315

$145 $146 $151 $150 $158

$146

$136 $138 $134 $136

$149 $149

$159

$143

$157

$171

$0

$50

$100

$150

$200

$250

$300

$350

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Average One-Way Domestic Fare

BPTDomestic One-Way Fare Average Lower 4 8 Airport Domestic One-Way Fare
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-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 Inyokern, 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)

Rank Market

Domestic O&D 

Passengers

Domestic 

PDEW

Domestic 

Fare

1 Inyokern, CA 15,970 21.9 $417

2 Beaumont/Port Arthur, TX 24,430 33.5 $315

3 Dothan, AL 80,290 110.0 $313

4 Devils Lake, ND 10,430 14.3 $312

5 Columbus, GA 115,710 158.5 $308

6 Fort Leonard Wood, MO 12,180 16.7 $296

7 Victoria, TX 9,510 13.0 $294

8 Meridian, MS 30,000 41.1 $293

9 Presque Isle, ME 29,320 40.2 $289

10 Minot, ND 279,440 382.8 $288

11 Del Rio, TX 15,380 21.1 $286

12 Macon, GA 1,710 2.3 $284

13 Texarkana, TX 52,950 72.5 $284

14 Laurel/Hattiesburg, MS 27,700 37.9 $283

15 Williston, ND 50,720 69.5 $273

16 Sault Ste. Marie, MI 33,990 46.6 $270

17 LaCrosse, WI 169,630 232.4 $270

18 Jamestown, ND 9,900 13.6 $261

19 Albany, GA 63,450 86.9 $260

20 Clarksburg, WV 11,130 15.2 $259

21 Waco, TX 62,110 85.1 $259

22 International Falls, MN 25,880 35.5 $258

23 Tupelo, MS 20,080 27.5 $257

24 Killeen, TX 332,840 455.9 $257

25 Alexandia, LA 242,380 332.0 $257

Year-End Fourth Quarter 2011
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

12

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. The 30 

largest domestic markets are illustrated in Exhibit 5 and generated 22 PDEW. It 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 markets generated 188 more passengers per day each way, or a total of 210 PDEW in 1997 

when Beaumont's traffic peaked; traffic in these markets is down 89.5% since 1997. Each of the 30 largest 

markets is served nonstop by United from its hub at Houston Intercontinental, 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)

0 200 400 600 800 1,000 1,200 1,400 1,600

Dallas/Ft. Worth - 1

Washington/Baltimore - 2

Los Angeles Basin - 3

Austin - 4

San Antonio - 5

Atlanta - 6

Philadelphia - 7

Tulsa - 8

New York/Newark - 9

Chicago - 1 0

San Francisco Bay Area - 1 1

New Orleans - 1 2

South Florida - 1 3

Las Vegas - 1 4

Denver - 1 5

San Diego - 1 6

Phoenix - 1 7

Orlando - 1 8

St. Louis - 1 9

Nashville - 2 0

Tampa/St. Petersburg - 2 1

Seattle - 2 2

Jacksonville - 2 3

Little Rock - 2 4

Kansas City - 2 5

Portland - 2 6

Anchorage - 2 7

El Paso - 2 8

Minneapolis/St. Paul - 2 9

Corpus Christi - 3 0

1,440

1,150

1,000

760

730

700

700

670

650

650

630

620

610

580

540

480

430

420

380

370

340

300

290

290

260

260

230

220

220

210

2.0

1.6

1.4

1.0

1.0

1.0

1.0

0.9

0.9

0.9

0.9

0.8

0.8

0.8

0.7

0.7

0.6

0.6

0.5

0.5

0.5

0.4

0.4

0.4

0.4

0.4

0.3

0.3

0.3

0.3

Annual O&D PDEW
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-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 September 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-thirds 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 Originating by Airport for Beaumont/Port Arthur Catchment Area Domestic and International Traffic 

October 2010 – September 2011 (March 2012 Leakage Study Data)

0%

20%

40%

60%

80%

100%

All Domestic + International 

Traffic

All Domestic Traffic International Traffic

2.5% 2.5% 2.1%

66.3% 61.7%

96.5%

31.4% 35.9%

1.4% Share of Traffic

Beaumont Houston Intercontinental Houston Hobby
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

14

The high shares of traffic leaked to Houston International Airport translates to 1,075 domestic 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)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

All Domestic + International 

Traffic

All Domestic Traffic International Traffic

39.9 35.5 4.4

1,074.9

869.1

205.8

508.3

505.3

3.0

Number of Passengers per Day Each Way (PDEW)

Beaumont Houston Intercontinental Houston Hobby
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

15

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

capacity 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 compares to an 

average fare of $353 paid at Beaumont/Port Arthur.

Exhibit 8: Average Fare Paid by Beaumont/Port Arthur Catchment Area Passengers by Originating Airport – October 2010 –

September 2011 (March 2012 Leakage Study Data)

$0 $50 $100 $150 $200 $250 $300 $350 $400

Beaumont

Intercontinental

Hobby

$353

$298

$152

2.5%

66.3%

31.4%

Average Fare

Share of Traffic
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

16

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, and 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 Airport when Colgan Airways 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 airline 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 Intercontinental. 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 enplanements at the local airport and reducing 

leakage, but it would also solidify United's presence in the community by generating more traffic and revenue for 

United.
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

17

Upgrading 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 than 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. Analysis 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 month for which data is available), the highest load factor achieved 

was just 33% in May 2011. 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 2010-February 2012 (DOT T-100 Data)

32%

37% 38% 37%

42%

33% 32% 33% 33%

26%

22%

25% 25% 25%

33%

30% 29% 30%

28% 26% 26%

23%

18%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Load Factor (Non-Directional)

BPT-IAH Load Factor (Non-Directional)
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

18

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 Houston 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 Houston by United are significant and provide travelers in Beaumont/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 2012 OAG Data)

Marketing Beaumont-Houston Service

Jack Brooks Regional Airport is seeking a Small Community Air Service Development Grant to provide essential 

marketing and advertising support for United's service from Beaumont/Port Arthur to Houston Intercontinental. 
 

 

 

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 will retire.

One of the primary reasons for the high amount of leakage 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 booking flights from the airports in 

Houston, or they simply assume Southwest offers the lowest 

fares from Houston Hobby and book travel on Southwest 

without 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 travelers 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 travel 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 comparisons 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 perception of poor reliability and undependable service 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, 

saturating 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 giveaways. The Airport seeks $200,000 in federal 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 Regional 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 focused 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 banner 

ads promoting United's service. The Airport also plans specific outreach to area businesses, through Airportaffiliated 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 advertising slated for newspaper, magazine and business 

publication runs. Print advertisements will promote the number of connections available on United at Houston 

Intercontinental, the convenience of flying from the local airport, and the hidden costs of flying from the airports 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 

more 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 knowledge about local air service, to increase enplanements and

reduce 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-OST-2012-0069

21

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 

marketing 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 revenue 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-OST-2012-0069

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PROJECT IMPLEMENTATION, MONITORING AND FUNDING

Public / Private Partnerships

The community's support for long-term dependable air service connecting Beaumont/Port Arthur with a large 

number of destinations is widespread. In addition to the formal marketing and communications plan, the following 

organizations have pledged their support, either with pledges of financial support or pledges to use the air 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 Corporation

 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.

 Valero
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

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Project Funding

In addition to the Small Community Air Service Development Grant of $200,000 requested from the Department, 

organizations in the community are willing to provide cash of $50,000 over the two-year life of the project. The 

total value of cash contributions from the community is valued at $50,000 or 25% of the requested grant amount 

of $200,000 and 20% 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 Project Funding

.

Funding Source Grant Cash In-Kind Total

Department of Transportation $200,000 $200,000

Community $50,000 $50,000

Airport $0

Total $200,000 $50,000 $0 $250,000
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

Proposal Under the Small Community Air Service Development Program; Docket DOT-OST-2012-0069

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Implementation Timeline

The proposed implementation timeline for the project assumes the Department will award Small Community Grant 

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 develop and implement the creative materials. The urgent 

nature of the project will require 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 program and continue to work with the airline to monitor 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 Timeline

Activity/Project Milestone Estimated Dates

SCASD Grant Award Announcement August 2012

Distribute Marketing and Advertising RFP August 2012

Execute Grant Agreement with DOT September 2012

Execute Agreement with Marketing and Advertising Firm September 2012

Develop Creative September 2012

Develop Comprehensive Placement Strategy September 2012

Launch Campaign September 2012

Sustain Compaign October 2012 - September 2014

Monitor Route Performance October 2012 - September 2014

Submit Grant Status Reports to DOT Quarterly (December 2012 - October 2014)

Close Grant October 2014
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

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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 should 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 decline 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 monitor 

Beaumont/Port Arthur fare trends and correlate any changes with changes in both traffic and capacity.

Legal 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 party for all fiscal matters and 

the Department of Transportation's reporting requirements. The airport 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 controls are in place 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 expenditures 

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.us 
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

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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 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

 Airport Travel Agency

 Baptist Hospitals of Southeast Texas

 Christus Hospital

 DSR & Associates, Inc.

 M&M Air Service of Beaumont, Inc.

 Valero
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

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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 Secure 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 Cost

Line Description Sub Total Total Amount

1 Federal amount requested $200,000

2 State cash financial contribution

Local cash financial contribution $200,000

3a Airport cash funds

3b Non-airport cash funds $50,000

3 Total local cash funds (3a + 3b): $50,000

4 TOTAL CASH FUNDING (1 + 2 + 3): $250,000

In-Kind contribution

5a Airport in-kind contribution**

5b Other in-kind contribution**

5 TOTAL IN-KIND CONTRIBUTION (5a + 5b):

6 TOTAL PROJECT COST (4 + 5): $250,000
 

 

 

Jack Brooks Regional Airport; Beaumont, Texas

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F. 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) 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

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APPENDIX B: LETTERS OF SUPPORT
 

 

 

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