# August 2, 2011 Sponsor: University of Illinois Office of Capital Programs and Real Estate Services Champaign, Illinois Bruce K. Walden, Director Congressional Code: IL

- 015
Dun & Bradstreet Number: 04

- 154

- 4081 Tax Identification Number (EIN): 37

- 6000511 

### Application for Federal Support for New Air Service via:
Revenue Guarantees Advertising/Marketing Program
Start

- Up Cost Offsets 

### In Support of Non

- Stop Service between Champaign/Urbana and Washington Dulles 

# UNIVERSITY OF ILLINOIS WILLARD AIRPORT CHAMPAIGN/URBANA, ILLINOIS
Proposal Under the Small Community Air Service Development Program Docket DOT

- OST

- 2011

- 0119University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 2 TABLE OF CONTENTS

Summary Information

– Appendix C 3
Introduction 6
The Champaign/Urbana Air Service Market 8
Current and Historical Service 9 Air Service Development Efforts 14
Air Service Needs and Deficiencies 17 Strategic Plan for New Air Service 21 Proposed New Route 23 Implementation Timeline 29
Alternate Plan 30
Public/ Private Partnership 31 Funding Plan 33
Performance Measures and Financial Controls 35 Legal Sponsor 36 Availability of Alternate Airports 37 Airport Information 38 Community Profile 39 Comparison to Other Communities in Region 47
Conclusions 52



### Section Page NumberUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 3 SUMMARY INFORMATION

– APPENDIX C

Small Community Air Service Development Program
Docket DOT

- OST

- 2011

- 0119



### A. Applicant Information

Not a Consortium Community now receives EAS subsidy
Interstate Consortium Intrastate Consortium Community previously received a Small Community Grant If previous recipient, date of Grant: ________________________________ expiration date of G rant: _______________________



### B. Public/Private Partnership

Public:

1. University of Illinois at Urbana

- Champaign
2. City of Champaign
3. City of Urbana

Private:

1. Champaign County Economic Development Corporation
2. Champaign County Alliance
3. University of Illinois Chancellor’s Office Community Projects Fund



### 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 O ffset First Service Study Secure Additional Service Other (Specify)University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 4 D. Existing Landing Aids at Airport
Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other: VOR, GPS, NDB, PAPI, VASI



### E. Project Cost

1. Federal amount requested: $ 600,000
2. State cash financial contribution: $ 0
Local cash financial contribution:
3a. Airport cash funds: $ 80,000
3b. Non

- Airport cash funds: $ 0
3. Total local cash funds: $ 80,000
4. TOTAL CASH FUNDING: $ 680,000
In

- Kind Contribution:

a. Airport In

- Kind contribution: $ 345,007
b. Other In

- Kind contribution: $ Various
5. TOTAL IN

- KIND CONTRIBUTION: $ 345,007 + Media Match
6. TOTAL PROJECT COST: $ 1,025 ,00 7 + In

- Kind



### F. In

- Kind Contributions

For funds in lines 7a (airport in

- kind contribution) and 7b (other in

- kind contribution), please describe the source(s) of fund(s) for each. Airport In

- Kind: Landing Fee Waiver for 12 Months: $34,125 Jetbridge Fee Waiver for 12 Months: $19,344
Common Use Rent Waiver for 12 Months: $212,736 Dedicated Space R ental Waiver for 12 Months: $78,792 Total Airport In

- Kind Contribution: $345,007 Community In

- Kind: Matching funding for advertising and marketing of service.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 5 G. Is Application Subject to Review by State Under Executive Order 12372 Process?
This application was made available to the State on ______. Program is subject to review, but has not been selected by the State. Program is not covered.



### H. Is Applicant Delinquent on any Federal Debt?

NoUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 6 INTRODUCTION

The market served by the University of Illinois Willard Airport in Champaign /Urbana is one of the highest fare markets in the United States, with a current average one way fare of $280

– 71% above the Great Lakes regional average fare. Willard Airport has the highest fare in all of Illinois and Indiana. Fares have been driven up in the market as air line capacity has been reduced

– down 30%

- by an average of 140 departing seats per day

– in the last two years.

Champaign/Urbana lost one of the two airlines serving the community last August w hen Delta
Air Lines discontinued the Delta Connection service that had linked Champaign/Urbana with the Detroit hub for over ten years. Alt hough American Eagle continue d its Champaign/Urbana service to Chicago and Dallas/Ft. Worth, the loss
of Delta's service result ed in fewer enplanements and higher fares. Passengers are, in fact, down 37% in the last five years at Willard Airport.

Moreove r, m any of the 411,000 residents of the catchment area, and businesses in and around Champaign and Urbana
, have been conditioned to use air service available from other airports in the region due to fare disparities. This has resulted in leakage estimated at 73,000 passengers per year in 2010, or 100 passengers per day each way.

The University of Illinois Willard Airport has developed a plan for additional air service, on a new airline, to a destination, and a region, that is not served at any of the airp orts in central Illinois. The Airport is seeking a Small Community Air Service Development Grant in support of new service on United/United Express to Washington Dulles. The Dulles hub provides excellent connectivity to 69 markets in which current connections require backtracks through other hubs. Moreover, the Dulles hub provides improved internat ional connectivity to the market, which is important considering 17% of Champaign/Urbana passengers are traveling to and from
international destinations. 

## “Willard Airport has the highest fares
in all of Illinois and Indiana. Fares have been driven up... as airline capacity has been reduced

– down
30%

– in the last two years.”University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 7 The University of Illinois Willard Airport is seeking a Small Community Air Service Development
Grant in the amount of $600,000. The Airport has already accumulated matching cash funding of $80,000 for the project. O f the total cash project cost of $680,000, the community will be providing cash funding for 12% of the funding needs. Outside cash fu nding, the Airport has committed more than $345,000 in fee waivers for the first year of service. Organizations within the community and the University of Illinois recognize the economic value commercial service at Willard Airport brings to the community and have underscored their commitment by allocating financial resources to the proposed marketing and advertising project.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 8 THE CHAMPAIGN/URBANA AIR SERVICE MARKET Current and Historical Air Service

The University of Illinois Willard Airport serves as a vital connection to the air transportation system for more than 400,000 residents in central Illinois. The Airport continues to suffer from flight reductions, capacity cuts, and rising fares which now rank it as the most expensive airport in which to fly in or out in all of Illinois and Indiana. The challenges have caused the Airport to lose 37% of its passenger traffic in the last six year

– a loss of an average of 128 passengers per day each way.

The University of Illinois Willard Airport is the primary airport serving Champaign, Urbana and
other smaller
communities within a 30
to 60

- minute drive time radius around the airpo rt
in Illinois and Indiana.
193 ,000 residents live
within a 30

- minu te drive of the airport, and
411 ,000 residents li ve within a 60

- minute drive of the airport (see map 1) . There are three other
communities in Central Illinois with commercial airline service within two hours of Champaign/Urbana, including Peoria,
Blo omington/Normal and Springfield.

In the summer of 201 1, A merican Eagle is the only airline left serving Champaign/Urbana. Delta
Connection discontinue d its service in the market between Champaign and Detroit on August 31, 2010. Since Delta left the market, American Eagle has expanded service marginally, by adding a sixth weekday flight to Chicago O’Hare, complementing its single daily flight to Dallas/Ft. Worth (see figure 1). American Eagle capacity in Champaign/Urbana is up about 15% 

### MAP 1: University of Illinois Willard Airport Catchment Area Source: Sixel Consulting GroupUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 9 in the last year (August 2011 over August 2010).
Still
, overall Willard Airport capacity is down by 49 departing seats per day in the last year, or 14.8%.

Champaign/Urbana’s air service story is one of rising fares, declining passengers, and significant passenger suppressing and leakage to other airports. As recently as 2005, Willard Airport averaged 347 passengers per day each way (see figure 2)

– even with the average fare at $208 each way. B y 2010,
the number of passengers traveling through Willard Airport had dropped to just 219 passengers per day each way

– a loss of 37%

- as the average one way fare had increased to $280

– up by $72 each way or 35% since 2005.

The exception in the declini ng number of passengers using the Airport is in international traffic. International passengers make up a surprisingly large percentage of total passengers for a regional market

- 17% of Willard Airport’s total passengers, or 36 passengers per day each wa y in 2010 (see figure 2 on next page ). This reflects the impact of the University of Illinois on the community, with its large number of international students and faculty. It also reflects the
business make

- up of the community, with many high tech, high ly mobile businesses based in Champaign/Urbana. 

### FIGURE 1: Current Service at the University of Illinois Willard Airp ort August 2010 vs. August 2011; Source: Airline Schedules

Non-Stop Departures Seats Departures Seats Capacity Carrier Destination Per Day Per Day Per Day Per Day Change
Delta DTW 2 98 0 0 -100.0%
Delta Total 2 98 0 0 -100.0% American Eagle ORD 4.9 232 5.6 281 17.4% DFW 1 50 1 50 0.0% American Eagle Total 5.9 282 6.6 331 14.8% Champaign/Urbana Total 7.9 380 6.6 331 -14.8% Aug-10 Aug-11University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 10 Rising fares in the Champaign/Urbana market have put Willard Airport at a significant competitive disadvantage relative to the other airports in central Illinois. In 2010, Willard Airport had the highest average one way
fare of all air ports in Illinois and Indiana. The average one way fare in Champaign/Urbana was $280, which is 70 % , or $116 each
way, above the average fare in the region of $164 (see figure 3).

It is also important to benchmark Champaign/Urbana fares against
those of o ther airports in central Illinois that provide a similar service to similarly sized catchment areas. 

### FIGURE 2: O&D Passengers and Average Fares at the University of Illinois Willard Airport 2001

– 2010; Source: US DOT Table OD1A

FIGURE 3: Average Fares in Illinois and Indiana Markets CY2010; Source: US DOT Table OD1A 199,280 189,510
160,500 200,650 226,460
196,020 187,930
160,980 143,930 133,200 19,920 21,350

19,680 22,230 26,780

27,370 25,760

24,580

23,120 26,500 300.3 288.8

246.8 305.3 346.9

306.0 292.7

254.2

228.8 218.8

0 50,000 100,000 150,000 200,000 250,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Int'l Pax Domestic Pax

$198 $192 $206

$192 $208 $231 $240 $264

$242 $280

$280 $224 $190 $184 $175 $172 $167 $166 $154 $146 $137 $125 $115 $102 $77

$0 $50 $100 $150 $200 $250 Champaign, IL

Evansville, IN Fort Wayne, IN

Springfield, IL Chicago O'Hare, IL South Bend, IN Peoria, IL Moline, IL Indianapolis, IN Bloomington/Normal, IL Chicago Midway, IL Marion, IL Quincy, IL Rockford, IL Decatur, IL Regional Average : $ 164University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 11 At $280 each way, the average Champaign/Urbana fare is $96 each way higher, or 52% above, the average fare at Springfield (see figure 3). The Champaign/U rbana average fare is $113 each way, or 68% above, the average one way fare at Peoria. And the average Champaign/Urbana on way fare is $134 higher, or 92% above, the average fare at Bloomington/Normal in 2010.

The higher average fares at Champaign/Urbana are a reflection of declining capacity in the market and the fact that most other central Illinois markets have many more availabl e airline
seats as of 2010. Since the summer of 2008, total available seat capacity at Willard Airport is down by 30%

- or by an average of 140 departing seats per day (see figure 4). At the same time, daily departures have dropped from 10.2 to just 6.8

– a loss of 3.4 daily flights in and out of the Airport, or 33% of all flights.

With the decline in capacity at the Airport, load factors have increased substantially, despite fares that have risen to join the highest average fares in the nation. The average load factor for Champaign/Urbana flights in March of 2010 was 64% (see figur e 4). By March of 2011, the load factor had grown to 74% on Champaign/Urbana flights

– a year over year increase of ten points.



### FIGURE 4: Flights, Seats and Passengers per Day Each Way, University of Illinois Willard Airport, July 2008

– March 2011

472

428

395 394 381

309 339 382 386 387 374 384 425

371 364 408
380

324 310 334 375 365 361 395 413

377

280 277 278 261 277 279 332

260.8 247.9 233.5 269.2 254.5

207.2 197.4 222.2 248.4 228.9 244.6 264.4
237.3 238.0 235.5 267.0 244.3

202.5 181.9 212.2 240.9 230.1 247.7 257.1

222.7 243.3 225.5 245.3 240.0

202.6 206.9 209.0 245.7

0 100 200 300 400 500

Available SDEW Onboard PDEW Flights DEW 10.2

9.3
8.6 8.6 8.3

6.8 7.5 8.4 8.4 8.5 8.1 8.4 9.5

8.4
7.6 8.5 8.0

7.0 6.7 7.2 7.9 7.8 7.6 8.2 8.5
7.8

5.8 5.8 5.8 5.3 5.7 5.7 6.8University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 12 This load factor increase
, despite all other challenges
, indicates the remaining demand for air
travel in the market is resili ent.

Much of the passenger demand in the market is bound for the East Coast . Three of the five top origin and destination passenger markets from Champaign/Urbana in 2010 we re on the East
Coast including New York/Newark, with an average of 13.1 passengers per day each way, Washington, DC, with an average of 12.2 passengers per day each way, and Boston, with an average of
8.8 passengers per day each way (see figure 5).

Champaign/Urbana passenger
demand bound for the East
Coast is forced to either connect through Chicago O’Hare, with a dogleg backtrack, or to fly from another airport in the region such as Indianapolis or one of the airpor ts in Chicago. While Champaign/Urbana is linked
well to demand for travel to the west, through Dallas/Ft. Worth on American, it is not well linked for demand for travel to the east. 

### FIGURE 5: Top 25 O&D Passenger Markets, CY2010; University of Illinois Willard Airport; Source: US DOT Table OD1A

9,580 8,920 7,380 6,980 6,400 4,940 4,560 4,440 4,060 3,530 3,050 2,920 2,870 2,730 2,710 2,700 2,600 2,360 2,320 2,120 13.1
12.2
10.1
9.6
8.8
6.8
6.2
6.1
5.6
4.8
4.2
4.0
3.9
3.7
3.7
3.7
3.6
3.2
3.2
2.9

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 New York/Newark, NY Washington, DC Dallas/Fort Worth, TX

San Francisco, CA Boston, MA Los Angeles, CA Chicago, IL Seattle/Tacoma, WA Detroit, MI Las Vegas, NV Denver, CO Minneapolis/St Paul, MN Philadelphia Phoenix/Mesa, AZ San Diego, CA

Seoul, Korea Austin, TX Raleigh/Durham, NC San Jose, CA

Houston, TX Annual Passengers PDEWUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 13 Moreover, average fares for travel to
markets in the east from Champaign/Urbana are relatively high considering the relatively short stage length of travel. The overall average one way far e in and out of Champaign/Urbana in 2010 was $280 (see figure 6). The average fare to New York/Newark was $178 each way, or $356 roundtrip, while the average fare to Washington, DC was $213 each way, or $426 roundtrip. The average DC fare was $17, or 9%, higher than the average fare to Phoenix, despite the fact t hat Washington, DC is 783 miles closer to Champaign/Urbana than Phoenix.

The net effect of high average fares, declining capacity, and limited airline options is that central Illinois has
limited access to the national air transportation system. It is more difficult in 201 1 for those living in the region to access air service than it has been at any point in the last decade.

For the first time since deregulation, the University of Illinois Wi llard Airport in Champaign/Urbana has service on just one carrier. The effect of this consolidation of service has been increasing fares, reduced capacity, and fewer opportunities for travel to and through the Airport. 

### FIGURE 6: One Way Fares to Top O&D Passenger Markets, CY2010 University of Illinois Willard Airport; Source: US DOT Table OD1A

$178

$213 $196

$215 $165 $230 $174 $243 $157 $170

$201 $173 $182 $196

$226 $886 $181 $182 $243 $207

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 New York/Newark, NY Washington, DC Dallas/Fort Worth, TX

San Francisco, CA
Boston, MA Los Angeles, CA Chicago, IL Seattle/Tacoma, WA Detroit, MI Las Vegas, NV

Denver, CO Minneapolis/St Paul, MN Philadelphia Phoenix/Mesa, AZ San Diego, CA

Seoul, Korea Austin, TX Raleigh/Durham, NC San Jose, CA

Houston, TX Average One Way Fare : $ 280

Seoul Not to ScaleUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 14 AIR SERVICE DEV ELOPMEN T EFFORTS

T

he University of Illinois Willard Airport is active in air service development, regularly meeting with airlines, working with community stakeholders to better understand their needs and goals in local air service, and in working to build risk mit igation packages for additional service. Most recently, University leaders attended a small airports conference in spring of 2011, meeting with airlines such as SkyWest, Frontier and Gulfstream, to determine which had interest in further pursuing
service in central Illinois.

In the summer of 2010, as soon as the University was notified by Delta that it was going to leave the market, it set up a meeting with American Eagle in Dallas, to discuss expanded service to fill Delta’s void. The University hired an air service developm ent consulting firm to present materials proving the market could handle additional capacity (see figure 7). The result of this meeting was an additional weekday regional jet frequency between Champaign/Urbana and Chicago O’Hare, bringing weekday flights to six per day in each direction, and increasing American’s capacity in the market by 15%.

After meeting with a number of airlines in the last nine months, the University has
concluded it will be essential to offer risk mitigation, in the form of a revenu e guarantee, for any new route and/or new airline. Due to the budget crisis in the State of Illinois, and subsequent pressure on the University ’s budget, it is clear the majority of this guarantee must come from outside sources, such as the Small Communit y Air Service Development Program. 

### FIGURE 7: CMI Presentation to American Eagle October 2010; Source: Sixel Consulting GroupUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 15 AIR SERVICE NEEDS AND DEFICIENCIES IN CHAMPAIGN/URBANA

It is clear that the Champaign/Urbana air service market suffers from a lack of available airline capacity, extremely high average fares, and a lack of competition between carriers. The main air service need for the region is additional non

- stop destinations on additional competing carriers. It is believed this additional competition will help solve some of the problems that cause passengers to leak out of the immediate catchment area to other airports in the region.

Before the leakage problem can be solved, it must be more clearly understood. T he University of Illinois Willard Airport ’s catchment area represents about a fifth of the total population of central Illinois. Altogether, central Illinois has a current population of almost 1.1 million people. The Champaign/Urbana metropolitan area ha d a population of 226,587 as of the l atest US Census estimates, making it the second largest metro area in central Illinois, after Peoria (see figure 8 ). Champaign/Urbana’s specific population share is 20.8%.



### FIGURE 8 : Regional Population Distribution in Central Illinois Source: US Census Estimates, 2009

Peoria (PIA) 375,002 34.5% Champaign/Urbana (CMI) 226.587 20.8% Springfield (SPI) 209,148 19.2% Bloomington/Normal (BMI) 168,451 15.5% Decatur (DEC) 108,132 9.9% Population Share 

## Regional PopulationUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 16 T

he University of Illinois Willard Airport doe s not come close to retaining the number of passengers equal to its share of the regional population. In other words, the Airport is “leaking” a large percentage of its passengers to other airports

– even though t he service offered at those airports is no t always superior to the service offered in Champaign/Urbana. The main reason for this leakage is likely based on average fare, which has been proven in this application to favor Bloomington/Normal, Peoria, and Springfield over Champaign/Urbana.

In many markets, an Airport draws a number of passengers proportional to its overall population in the region. If that were to be the case in the Champaign/Urbana market, one could reasonably expect the Airport to retain about 20.8 % of the total passengers using all five airports in the larger region. However, in the case of the Champaign/Urbana MSA
, Willard Airport does not retain anywhere close to that percentage of the region’s p assengers. Willard Airport retains just 12 .2 % of the region’s total origin and destination passengers (see figures 9 and 10).

As of calendar year 2010, Willard Airport in Champaign/Urbana saw a total of 102,511 originating passengers. If the Airport had been able to retain the number of regional passengers proportional to its share of population in the region, it wou ld have been used by another 73,198 originating passen gers. In effect, Willard Airport “leaked” these passengers to other airports in
t he region

– a leakage rate of 41.7%. Willard Airport only retains about 5 8.3 % of the passengers that should be expected based on its share of the regional population.

The l argest beneficiary of Champaign/Urbana’s passenger leakage is Bloomington/Normal

. The Central Illinois Regional Airport in Bloomington had “reverse leakage” in 2010, when it drew 177 % more passengers than its proportion of the regional population. While the Bloomington/Normal
area makes up 15.5 % of the region’s population, it boards almost 43 % of the region’s total origin and destination passengers (see figures 9 and 10 ). If Bloomington/Normal retained a number of 

### FIGURE 9 : Regional Population Share Source: US Census Estimates, 2009

FIGURE 10 : Regional O&D Passenger Share Source: US DOT Table OD1A CMI 20.84%

DEC 9.94%

SPI 19.24% BMI 15.49% PIA 34.49%

CMI 12.16% DEC 0.28%
SPI 7.35%

BMI 42.91% PIA 37.30%University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 17 origin and destination passengers propor tional to its regional population share, it would be expected to generate 130,627 originating passengers annually. As of calendar year 2010, Bloomington/Normal saw a total of 361,845 originating O&D passengers

– 231,218 originating
passengers above its re gional share

.

Another way of determining passenger leakage from the Champaign/Urbana market to other airports in central Illinois is by comparing the economy of Champaign/Urbana to the economies
of the other four cities in central Illinois with commercially

- served airports. The easiest way to gauge each catchment area’s contribution to the economy of the region is to compare the
gr

oss metropolitan products (GMP) of each. A GMP is much like a gross national product

– an overall gauge of economic activity in a specific area, measured in dollars earned.

The United States Council of Mayors reports the Champaign/Urbana m etro area produ ced a GMP of $8.8 billion, which represented 18.8 % of the total gross regional product (GRP) of the 

### FIGURE 11 : Regional Gross Metropolitan Product (GMP) Distribution Source: US Council of Mayors

Peoria (PIA) $17.1 Billion 36.8% Springfield (SPI) $9.3 Billion 19.9% Champaign/Urbana (CMI) $8.8 Billion 18.8% Bloomington/Normal (BMI) $6.3 Billion 13.4% Decatur (DEC) $5.2 Billion 11.1% GMP Share 

## Gross Metropolitan Product (GMP)University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 18 area also including Peoria, Springfield, Bloomington/Normal, and Decatur ( see figure 11). The
Peoria area generated the large st portion of the GRP, with $1 7.1 billion, or 36.8 %, while Springfield produced a GMP of $9.3 billion

– good for 19.9% of the GRP

. Bloomington/Normal produced a GMP of $6.3 billion in economic activity or 13.4% of the region’s GRP, while Decatur produced 11

. 1 % of the GRP on total econ omic activity of $5.2 billion.

Despite producing 1 8.8 % of the total gross regional product (GRP), the University of Illinois Willard Airport retains just 12 .2 % of the region’s total originating passengers (see figures 12 and 13 ). As of
the calendar year 2010, Willard Airport generated a
total of 102
, 511 originating passengers. If the Airport
had been able to retain t he number of regional passengers proportional to its share of the GRP, it wo uld have been used by another 56
, 409 passengers. In effect, Willard Airport “leaked” these passengers to other airports in t he region

– a leakage rate of 35.4 %. The Airport only retains about 64.5 % of the passengers that should be expected based on its share of the gross regional product.

There appears to be a large beneficiary of the Willard Airport’s passenger leakage: once again, it’s Bloomington/Normal

. Bloomington/Normal experienced “reverse leakage” as of the calendar year 2010, when it drew almost 219 % more passengers than its proportion of the gross regional product (GRP). While the area surrounding Bloomington/Normal generates 13.4 % of the GRP, the Central Illinois
R egional Airport boards almost 43 % of the region’s
total originating passengers (see figures 12 and 1 3 ). If Bloomington/Normal retained a number of origin and destination passengers proportional to its GRP share, it w ould be expected to generate 113,119 or iginating passengers annually. In 2010, Bloomington/Normal saw a total of 361,845 originating passengers

– 219 % above its projected GRP share.

It has been established that the University of Illinois Willard Airport is losing a significant number
passe ngers from its catchment area to Bloomington/Normal . Attention then turns to the reasons 

### FIGURE 12 : Regional GMP Share Source: US Council of Mayors

FIGURE 13 : Regional O&D Passenger Share Source: US DOT Table OD1A CMI 18.85%

DEC 11.05%

SPI 19.91% BMI 13.42% PIA 36.78%

CMI 12.16% DEC 0.28%
SPI 7.35%

BMI 42.91% PIA 37.30%University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 19 why travelers are driving to other airports

. As is the case with many other airports experiencing leakage, it all comes down to the availability of flights and the fares on those flights.

With substantial seat cuts over the last two years, Champaign/Urbana ranks as
one of the most underserved markets in
the Midwest . As of calendar year 2010, Champaign/Urbana had just 0.57 available departing airline seats per capita of its Metropolitan Statistical Area (MSA) (see figu re 14 ). With less than one departing seat per resident per year, the Champai gn/Urbana MSA had fewer available departing seats than both Peoria and Bloomington/Normal
, along with the other, larger airports in the region such as Chicago O’Hare, Chicago Midway, and Indianapolis

. The central Illinois average number of available depar ting a irline seats per capita was 0.96 as of
2010. Champaign/Urbana’s available departing seats per capita was just 59 % of that average

– meaning Champaign/Urbana is the second most underserved market in its surrounding region.

The same can be said about enplaned passengers per capita. Champaign/Urbana lags behind
all but one other central Illinois city

as of calendar year 2010 (see figure 15 ). Wi llard Airport saw just
0.29 passengers per resident of the Champaign/Urbana MSA

– less
than one fifth the number of
passengers pe r capita of the nearest airport in Bloomington/Normal . The central Illinois average number o f passengers per capita was 0.61 in 2010

– more than double the average in Champaign/Urbana’s MSA.

These indicators illustrate how the University of Illinois Willard Airport is relatively underserved when compared to corollary cities in its own region. The challenge for the Airport in recruiting additional service is the declining number of passengers using the Airport. But, as illustrated in 

### FIGURE 14 : Available Seats per Capita in Illinois Markets CY2010; Source: US DOT T100, US Census Estimates

FIGURE 15 : Passengers per Capita in Illinois Markets CY2010; Source: US DOT T100, US Census Estimates 2.18

0.89

0.57

0.52

0.0 0.5 1.0 1.5 2.0 BMI

PIA

CMI

SPI 

### Central Illinois Average : 0

. 96

1.52

0.60

0.29

0.24

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 BMI

PIA

CMI

SPI 

### Central Illinois Average : 0

. 61University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 20 this proposal, passengers in the market have been suppressed by large seat cuts over the last two years
, and increasing fares

– which rank as the highest average fares in both Illinois and
Indiana.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 21 STRATEGIC PLAN FOR NEW AIR SERVICE

It is clear the Champaign/Urbana market is underserved. It suffers from some of the highest fares
in the nation

– the highest of all airports in Illinois and Indiana

– and it has seen capacity cut by more than 100 departing seats per day in the last three years. The University of Illinois Willard Airport has developed this strategic plan to address deficiencies in capacity and in access to markets to the east. It is also projected that the competition provided by this plan will help to
reduce airfares.

The University of Illinois Willard Airport proposes to use a combination of locally raised funding in conjunction with federal Small Community Air Service Development Grant funding in support of
the addition of a new east bound hub

. East bound
service is essential in Champaign/Urbana, and in all of central Illinois, after Willard Airport lost Delta
service to Detroit . The loss of these flight s left the

mar ket with no easy east bound access. It must also be noted, there is no east coast se rvice on any airline from any central Illinois airport.

Willard Airport seeks a Small Community Air Service Develo pment Grant, in the amount of $6 00,000, to help mitigate United ’s initial monetary risk in serving the Champaign/Urbana

– Washington Dulles route (see map 2). The Airport proposes two daily flight s on the route in each
direction. The route between Champaign/Urbana and Washington Dulles would cover 583 miles in a flight time of one hour and 2 0 minutes, on average, assumi ng an average groundsp eed of
400 knots on an Embraer ERJ145 aircraft seating 50 in an all

- economy layout (see f igure 1 6 ).

Origin Destination Departs Arrives Block Time Equipment

CMI IAD 6:15am 9:00am 1:45 ER4 IAD CMI 11:45am 12:30pm 1:45 ER4 CMI IAD 1:00p m 3:45p m 1:45 ER4 IAD CMI 6:15 p m 7:00 pm 1:45 ER4 

### FIGURE 16: Proposed Schedule, Champaign/Urbana

– Washington Dulles MAP 2: Proposed Route, Champaign/Urbana

– Washington DullesUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 22 The proposed schedule is designed for ease of network integration into the Washington Dulles hub, ide al business connectivity to East Coast destinations for Champaign/Urbana business
travelers

– allowing for same day business trips to many destinations in the mid

- Atlantic and the
northeast (see f igure 1 6). An aircraft would overnight at Champaign/Urbana , departing early enough to hit the first departing bank o f the morning at Dulles on United . The schedule has a late morning return to Champaign/Urbana, wh ich would turn around in time to hit the afternoon/evening international bank at Dulles

. The last Dulles

- Champaign/Urbana flight of the day would leave with connections from most inbound international markets. This schedule would achieve two goals: pro viding the best possible connectivity to East Coast destinations, and providing excellent connectivity to international destinations, which account for 17% of Champaign/Urbana travelers.

The University of Illinois Willard Airport proposes that a relatively small portion of the cost of starting the new service be supported up front with federal funds from the Small Community Air Service Development Program. Of the total project cost of $ 68 0,000, only $ 5 0,000 will be used for mar keting and advertis ing projects . The federal share of the project will be $6 00,000, all of which will be used for the airline revenue guarantee. The federal revenue guarantee share will be matched by $30,000 in local revenue guarantee money and $50,000 in local marketing m oney.

The University of Illinois Willard Airport projects that the bulk of the grant money be available to provide insurance in case United/United Express incurs a loss during the first year of operations.
With demand for east bound service in the Champai gn/Urbana market, and the lack of any
current east bound serv ice as of the end of August 201 0
, the Airport projects the new flights will be profitable within one year.

If, for some unforeseen reason, service is not commenced within one year after Grant a ward by
United or a United Express carrier , the University of Illinois Willard Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program for
additional service on another airline. Other options include service to Washington National on US Airways Express, service to Philadelphia on US Airways Express, service to Charlotte on US Airways Express, service to Atlanta on Delta, service to Detroit on Delta, service to Cleveland on
Unite d Express, or service to Milwaukee on Frontier. Should none of these options become 

## “...providing the best possible connectivity to East Coast destinations, and providing

excellent connectivity to
international destinations...”University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 23 workable, the Airport will continue its discussions with all other carriers tha t can provide
additional seats to a hub not currently served.



### Route Specific Data: Champaig n/Urbana

– Washington Dulles

Champaign/Urbana was left without any east bound c onnecting service as of August 31 , 2010,
when Delta left the market and ended its service between Champaign/Urbana and Detroit. It is imperative that the Airport have east bound service, to prov ide the connectivity to the East
Coast and to international destinations that is necessary for the region’s major businesses.

The University of Illinois Willard Airport proposes United/United Express launch non

- stop service
between Champaign/Urbana and Washington Dulles with 50

- seat regional jets. This service would provide Champaign/Urbana with its first ever non

- stop flight to the Washington, DC area
, along with one

- stop
connections to 69 cities (see map 3 ).

The Champaign/Urbana
market currently produces 87.9
unstimulated origin
and destination passengers per day each way to
destinations that naturally connect
over the United Airlines/Star Alliance Washington Dulles
hub , not counting any passengers that might use the service from the other central Illinois catchment areas (see figure 1 7 )

. As of calendar year 2010
, Champaign/Urbana produced 64
, 150 total origin and destination passengers that would flow over Washington Dulles on United. 

### MAP 3: One

- Stop Connections over Washington Dulles on United, CY2010; Source: Sixel Consulting Group Hub Buil derUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 24 In all, the Champaign/Urbana

– Washington Dulles route has the potential to capture 40 % of the current passengers flying in and out of Champaign/Urbana , itself, without taking int o account any passenger leakage or any inbound leakage from other central Illinois catchment areas
which do not have service to the East Coast

. At the same time, the United Washington Dulles hub could capture 37 % of the current revenue generated in the ma rket as of calendar year
2010 (see f igure 1 7 )

. Currently, United/Star Alliance markets from Champaign/Urbana that flow
over the Washington Dulles hub generate almost $1 6.5 million in annual airline revenue, or $22 ,600 in revenue per day each way (RDEW) to and from Champaign/Urbana in 2010.

The central Illinois

– Washington/Baltimore market has generated an average of as many as 95 local passengers per day each way, as recently as 2005 (see figure 1 8 ). Since that time , the local market has been suppressed by rising fares, which now average $161 each way from all central Illinois airports, or $322 roundtrip. In 2010, the central Illinois market, including Champaign/Urbana, Bloomington/Normal, Peoria, Springfield, and D ecatur generated an average of 75 passengers per day each way to and from Washington/Baltimore airports, which include Washington National, Washington Dulles, and Baltimore

- Washington (see figure 1 8 ). Total passengers between central Illinois and Washingt on/Baltimore airports are down 21%, or an average of 19.7 passengers per day each way since 2005, while the average fare is up $24 each way, or 18%.



### FIGURE 17: Available Passengers and Revenue over IAD on United, CY2010; Source: Sixel Consulting Group Hub Builder

Dulles 40%

Other Hubs 60% Dulles 37%

Other Hubs 63%

Champaign/Urbana O&D Revenue $44,766,480 100% Revenue Flowing Over Washington Dulles $16,497,280 37% Champaign/Urbana O&D Passengers 159,700 100% Passengers Flowing Over Washington Dulles 64,150 40%University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 25 Fare increases are even more dramatic between Willard Airport, itself, and the Washington/Baltimore region. Since 2005, the average one way fare from Willard Airport to Washington/Baltimore airports is up $66 each way, or 46%, to an average of $209 each way, or $418 ro undtrip (see figure 19).

As fares from Champaign/Urbana to Washington/Baltimore have increased, passengers have been in significant decline. In 2004, Champaign/Urbana, itself, generated an average of 25 passengers per day each way to and from Washington/ Baltimore (see figure 19). By 2010, that number had fallen to just 15 passengers per day each way

– a loss of 41 % of the passengers flying between Willard Airport and Washington/Baltimore airports. These passenger decreases can largely be attributed to l ocal fares that were rising much more quickly than the fares from airports such as Chicago Midway and Indianapolis.



### FIGURE 18: O&D Passengers and Average One Way Fare, CMI+BMI+PIA+SPI+DEC

– IAD+DCA+BWI CY2010; Source: U S DOT Table OD1A

58,840 62,850 63,390 66,040 69,080 62,470 61,800 57,010 55,080 54,650 80.6 86.1 86.8 90.5 94.6

85.6 84.7

78.1 75.5 74.9

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Total Passengers

$153

$130 $135 $135 $137 $144 $146 $170

$157 $161University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 26 Beyond local Washington/Baltimore traffic, t he United hub at Washington Dulles has potential to capture large portions of traffic in 69 of Champaign/Urbana’s largest origin and destination
passenger markets. The Washington Dulles hub is especially well positioned to captu re traffic traveling to the East Coast and to Europe and the Middle East

– including large Champaign/Urbana markets such as New York/Newark , which produces 13.1 passengers per day each way (PDEW) to and from Champ aign/Urbana as of calendar year 2010 ; Boston , which produces 8.8 PDEW; Philadelphia , which produces 3.9 PDEW; Raleigh/Durham , which produces
3.2 PDEW; London Heathrow , which produces 2.2 PDEW; and Hartford , which produces 1.6 PDEW
as of calendar year 2010 (see figure 20 ).

It is likely United would stimulate the passenger market significantly in Champaign/Urbana , with a projected stimulation rate in its market of, at least, 50%. This stimulation would be seen most on

new one

- stop markets to the east of Ch ampaign/Urbana , that were not served previously by
Delta over Detroit with one stop. This gives the Airport reason to be optimistic that the service
can be self

- sustaining in as little as 12 months from the start of flights. 

### FIGURE 19: O&D Passengers and Average One Way Fare, CMI

– IAD+DCA+BWI CY2010; Source: US DOT Table OD1A

16,410 16,590

13,810 18,330 18,030

15,270 13,570 12,360 13,390

10,830 22.5 22.7

18.9 25.1 24.7

20.9

18.6

16.9 18.3

14.8

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDEW Total Passengers

$156 $147 $156

$142 $143 $150 $167 $197

$175 $209University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 27 Should it launch service between Champaign/Urbana and Washington
Dulles
, United would be adding
service in markets that have current
fares well above the Midwest regio nal
averag e of $164 each way (see Figure 21) . The average one way fare
to Champaign/Urbana markets that
United would connect with one

- stop
service over Washington Dulles was $25 7 as of calendar year 2010

– which
is 57 % abo ve the current regional
average

.

United service to Washington Dulles would provide much

- needed competition for Champaign/Urbana catchment area residents , and central Il linois passengers, in general, traveling to the market’s top destinations in the east and overseas , where fares top the regional average. Examples include New York/Newark , where th e average one way fare was $178 as of calendar
year 2010 ; Philadelphia , whe re the
average one way fare was $182 ; Raleigh/Durham , where the average one way fare was also $ 182 ; Hartford , where the average one way fare was $223 ; and
London Heathrow , where the average one way fare was $533 as of calendar
year 2010

. The best chance at fare relief
in markets to the east of Champaign/Urbana is for an airline to
offer new ser vice to a new hub along the
east coast. 

### FIGURE 20: Top 20 O&D Passenger Markets over IAD on United, CY2010; Source: Sixel Consulting Group Hub Builder

FIGURE 21: Average Fares at Top O&D Markets Over IAD on United, CY2010; Source: Sixel Consulting Group Hub Builder 9,580 6,980 6,400 4,940 4,440 2,870 2,710 2,360 1,630 1,570 1,180 1,180 1,110 1,030
980
840
780
780
750
730 13.1
9.6
8.8
6.8
6.1
3.9
3.7
3.2
2.2
2.2
1.6
1.6
1.5
1.4
1.3
1.2
1.1
1.1
1.0
1.0

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 New York/Newark San Francisco Bay Area
Boston Los Angeles Basin

Seattle/Tacoma Philadelphia

San Diego Raleigh/Durham
Orlando
London Heathrow
Hartford Portland, OR
South Florida Beijing
Richmond

Frankfurt Tokyo Narita Tampa
Cancun
Charlotte Annual Passengers PDEW

$178 $215 $165

$230 $243 $182

$226 $182 $188 $533

$223 $333 $197 $819 $167 $471 $1,205 $180

$225 $225

$0 $100 $200 $300 $400 $500 $600 $700 New York/Newark San Francisco Bay Area
Boston Los Angeles Basin

Seattle/Tacoma Philadelphia

San Diego Raleigh/Durham
Orlando
London Heathrow
Hartford Portland, OR
South Florida Beijing
Richmond

Frankfurt Tokyo Narita Tampa
Cancun
Charlotte Average Over IAD : $ 257

Beijing Not to Scale

Tokyo Narita Not to ScaleUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 28 The University of Illinois Willard Airport believes there is sufficient passenger traffic and revenue
that would flow over United’s Washington Dulles hub t o make the service profitable. United
would not be forced to offer rock

- bottom fares in Champaign/Urbana to be competitive

– even fares slightly higher than those found in other central Illinois markets would be considered low for
local Champaign/Urbana travelers. Moreover, this would be the only non

- stop service from a central Illinois airport to the East Coast , which should bolster the service through inbound leakage from other central Illinois catchment areas. The University of Illinois Willard Airport
believes in this new market , and must develop a risk mitigation package to ensure United can enter the market without the fear of an operating loss during the start

- up phase of new service

.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 29 IMPLEMENTATION TIMELINE

The proposed implementation timeline for the project assumes the Department of Transportation will award Small Community Grant Funding in September 201 1

. Once the award is announced,
the University of Illinois Willard Airport will conduct airline meeting (s) to secure United Express
service

. Based on airline planning lead times and the need for advance bookings, we assume
the service would not be able to begin until at least June of 2012

.

The first three milestones on the Airport's timeline are to execute the grant agreement with the Department of Transportation, meet with United and/or United Express carriers to negotiate for service, and sign the minim um revenue guarantee agreement with the appropriate airline partner

. Once service is announced and schedules are published, the Airport would begin marketing the new route and working with the new carrier to monitor advance bookings. The Airport will con tinue its marketing program and continue to work with the new carrier to monitor the route once service begins. The Airport would submit grant status reports on a quarterly basis to the Department throughout the proposed two year term of the minimum reven ue guarantee.

While the estimated dates are targets, it is possible service could be secured and launched on a more aggressive timeline once Grant funding is awarded. It is also possible that new service could slip to 2013 should an airline require addit ional risk mitigation, beyond that included in this proposal, from the community.



### Activity/Project Milestone Estimated Date

SCASD Grant Award Announcement September 2011 Executive Grant Agreement with DOT October 2011 Meet With Prospective Airlines Oct/Nov 2011 Negotiate Minimum Revenue Guarantee (MRG) With Airline Jan - Mar 2012 Announce Service March 2012 Publish Schedule March 2012 Begin Marketing of New Route March 2012 Monitor Advance Bookings March - June 2012 Service Launch June 2012 MRG Available for Service June 2012 - October 2014 Monitor Route Performance June 2012 - October 2014 Submit Grant Status Reports to DOT Quarterly Q4 2011 - Q4 2014 Close Grant October 2014University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 30 ALTERNATE PLAN

If, for some unforeseen reason, service is not commenced within one year after Grant award by United or a United Express carrier , the University of Illinois Willard Airport proposes to use federal grant money awarded under the Small Community Air Service Development Program for additional service on another airline. Other options include service to Washington National on US Airways Express, service to Philadelphia on US Airways Express, service to Charlotte on US Airways Express, service to Atlanta on Delta, service to Detroit on Delta, service to Cleveland on United Express, or service to Milwaukee on Frontier. Should none of these options become

w orkable, the Airport will continue its discussions with all other carriers tha t can provide
additional seats to a hub not currently served.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 31 PUBLIC/PRIVATE PARTNERSHIP

The Cities of Champaign and Urbana, the University of Illinois, and Willard Airport consistently work together on air service development projects. Other local partners will be working with the Airport to promote and market the new service. The Airport will manage and coordinate the marketing program.

The Airport has als o developed an air service development partnership program, reaching out to businesses and community leaders. Those partners are listed below, including their role in the
effort to retain current air service and recruit additional air service.



### Champaign County Economic Development Corporation

The Champaign County Economic Development Corporation is a public

- private partnership dedicated to fostering a cooperative, county

- wide approach to economic development. The organization coordinates with a number of other key organizations in the area to promote an
environment in which business thrives.



### Champaign County Alliance

The Champaign County Alliance is a service organization for the Champaign County Chamber of Commerce, the Champaign County Economic Development Corporation (EDC) and the Champaign County Convention and Visitors Bureau (CVB). The Alliance is made up of a b oard of directors with representation from the Chamber, the EDC and the CVB, plus the top investors (collectively) in the three organizations. These three top investors are the cities of Champaign and Urbana and the University of Illinois.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 32 Univer sity of Illinois at Urbana

- Champaign

The University of Illinois at Urbana

– Champaign ( U of I
, UIUC , or simply Illinois ) is a public research university located in Urbana and Champaign . 2009 enrollment was 31,209 undergraduate and 10,701 graduate students. UIUC is the oldest, largest, and most prestigious campus in the University of Illinois system. The University of Illinois Urbana

- Champaign is the second oldest public university in the state, second to Illinois State University. The university has 17 col leges and instructional units offering more than 150 programs of study. Additionally, the university operates an extension that serves 2.7 million registrants per year around the state of Illinois and beyond.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 33 FUNDING PLAN

Marketing and Advertising

The University of Illinois Willard Airport proposes to spend at least $50,000 in funds on marketing and advertising promotions in support of new service introductions. The goal is to increase ridership and usage of new service through targeted regional campaigns. The marketing potion of this project will come from local cash sour ces.



### Revenue Guarantee

The University of Illinois Willard Airport proposes to make available at l east $63 0,000 in funds for a revenue guarantee, to cover start

- up losses that may occur during the first twelve months of service on the new route. Subject to negotiation, payments will be made to the airline operating the new route quarterly when income derived from passengers and cargo is less than
the agreed expenses on the route. Revenue generated that exceeds expenses will be carried forward and tapped before any grant funds are used.



### In

- Kind Services

The following organizations will help promote the new service through their various membership groups. There is no estimated value to these services.

**•** University of Illinois Willard Airport

**•** University of Illinois at Urbana

- Champaign

**•** Champaign County Economic Development Corporation

**•** Champaign County Alliance

**•** University of Illinois Chancellor’s Office Community Projects Fund

**•** City of Champaign

**•** City of UrbanaUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 34 Fee Waivers

The Airport will allocate $345,007 in facility fee waivers to the new airline in the first 12 months of service. These fee waivers will include $34,135 in landing fee abatements; $212,736 in common use terminal rent waivers; $78,792 in rent waivers for th e new airline’s dedicated space in the terminal; and $19,344 in free use of a jetbridge for the new carrier.



### Start

- Up Cost Offsets

The Airport proposes to use a small portion of the funding provided under this proposal to pay for
start

- up costs in support of new service introductions. Money will be reimbursed to the new carrier, from the revenue guarantee portion of this proposal, as invoices are submitted detailing the work performed to offset the acquisition of necessary equipment to begin servic e (items include carts, tugs, power units, computer equipment, cabling, software, etc.).



### Additional Costs

As part of this program, the University of Illinois Willard Airport understands that additional expenses will be incurred, such as monitoring the re sults of the program and reporting those results back to the US DOT. In addition, the Airport expects to incur some expenses in the recruitment of the new airline to fly the new route. The Airport will not use DOT funding in these
efforts.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 35 PERFORMANCE MEASURES AND FINANCIAL CONTROLS

The success of new service in Champaign/Urbana will be based on three measurable variables: the increase in available seats in the market, the number of enplanements on the route, and the average airfares charge d in the affected city pairs. The first two measurements will include a monthly comparison
, once the program begins
, to past numbers. The second measurement will be derived from US DOT OD1A reports.

As the sponsor, the University of Illinois Willard Air port will be the responsible party for all fiscal matters and DOT reporting requirements. As a public entity the DOT can be assured that proper financial controls are in place to guarantee that the DOT’s grant will be used in accordance with any subsequen t agreement. T he University of Illinois Willard Airport understands that the grant is a reimbursable grant, meaning the Airport is responsible for program expenditures and will submit invoices to the DOT for reimbursement, based on a percentage of the tot al grant request.

The Airport has developed this proposal as a one

- time grant. The advertising and marketing program will commence a few months before service starts and last for at least twelve months. The revenue guarantee program will also be in plac e for twelve months, with two additional
twelve

- month periods available for negotiation. It is projected that the service on the new route will be financially self

- sustaining within the second twelve months of service.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 36 LEGAL SPONSOR

As the owner and operator of Willard Airport, the University of Illinois at Urbana

- Champaign is the legal sponsor responsible for administering the program. The University of Illinois at Urbana

Champaign is a government entity.

University of Illinois Office of Capital Programs and Real Estate Services 807 South Wright Street, Suite 340, MC

- 309 Champaign, Illinois 61820 Bruce K. Walden, Director Phone: 217

- 244

- 8496 Fax: 217

- 244

- 8802 bwalden@uillinois.eduUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 37 AVAILABILITY OF ALTERNATE AIRPORTS

The cities of Champaign and Urbana, along with the counties of Champaign, Vermilion, and Piatt, are all served by the University of Illinois Willard Airport , located directly off I

- 57 in Savoy.
The University of Illinois Willard Airport operates as the air travel access point for all of central Illinois, yet due to its high fares and limited service, many who live in the catchment area access air service at other airp orts in the region.

Among the other airports with air service are Decatur, which has only Essential Air Service (EAS) on 9

- seat aircraft, which is 53 miles from Champaign/Urbana (see map 4); Bloomington/Normal, which is 55 miles away from Champaign/Urbana; Springfield, which is 76 miles away from Champaign/Urbana; Indianapolis, which is 132 miles away from Champaign/Urbana; Chicago Midway, which is 124 miles away from Champaign/Urbana; and Chicago O’Hare, which is 158 miles away from Champa ign/Urbana. 

### MAP 4: Alternate Airports Near the University of Illinois Willard AirportUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 38 AIRPORT INFORMATION

Willard Airport is one of only a handful of commercial airports in the country owned and operated by an educational institution. Willard Airport, often referred to by its FAA designation "CMI," was named for former University of Illinois president Arthur C utts Willard.

The University of Illinois at Urbana

- Champaign established its nationally recognized Institute of Aviation at Willard Airport in 1946. The University takes full advantage of training and research opportunities made possible by the location of the Institute on the grounds of Willard Airport. Willard Airport covers 1,799 acres and has four runways of varying lengths: 3,817 ft. (asphalt), 5,299 ft. (concrete), 6,500 ft. (concrete) and 8,100 ft. (concrete). The terminal has five gates. The p assenger terminal offers a cafe, internet access throughout the terminal, an ATM machine
and a conference room.

Willard Airport is also home to the private jet service 'FlightStar'. Flightstar’s line operations encompass meeting, marshalling, and parking of transient and locally based aircraft, all fueling operations at the airport, towing and hangaring in Flightstar’s 6 hangars as well as the University of Illinois’ Institute of Aviation’s hangars, baggage handling, deicing and ground handling. Flightst ar currently provides maintenance services for American Eagle. That airline overnights four aircraft at Willard Airport each night for maintenance.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 39 COMMUNITY PROFILE

Comprised of two distinct cities, Champaign and Urbana, as well as several smaller cities and outlying areas, Champaign C ounty offers its residents a unique quality of life. Home to one of the nation’s largest universities, inhabitants can make use of all of the perks of living in a college town; academics, athletics, fine dinin g, nightlife and the arts. And just steps away lies the calm, bucolic respite of outlying communities, which are home to Farmer s’ Markets, antique shops and
outdoor activities.

Champaign County is home to 192,561 people. Since 2000, it has had a populat ion growth of 7.19%. The median home cost in Champaign County is $118,800. Compared to the rest of the country, Champaign County enjoys a lower

- than

- average cost of living at 89.40 (national average: 100). The median age is 29.5 (permanent residents only ).

Future job growth over the next ten years in Champaign County is predicted to be 22.96%. The income per capita is $23,875, which includes all adults and children. The median household income is $44,401.

Champaign/Urbana Economic Overview

Champaign County enjoys the support of local leadership in developing new business prospects, as well as tourism opportunities. The Champaign County Economic Development Corporation is a public

- private partnership dedicated to fostering a cooperative, cou nty

- wide approach to economic development. The Champaign County Chamber of Commerce is an association of over 1,100 area businesses (representing over 60,000 employees) that have joined together to advance the economic health of Champaign County and helps to shape the business climate in Champaign County. The Champaign County Convention and Visitors Bureau provides guidance, contacts and assistance to ensure successful events. Finally, the Illini Entrepreneurship Center, provided by the Academy for Entre preneurial Leadership at the University of Illinois, partners with respected business development organizations and educational institutions that work with clients who have the vision and potential to become a high

- growth enterprise.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 40 Firm Employees University of Illinois 10,500
Carle Clinic Association 2,919 Carle Foundation Hospital 2,750 Kraft Foods, Inc. 1,325
Provena Covenant Med. Center 1,200 Parkland Community College 1,200
Wal

- Mart 1,050 Champaign County 887 Plastipak Packaging 800
Christie Clinic Association 740
Hobbico 700
Jeld

- Wen 675
Amdocs 620 Devonshire Group 590 Meijer Stores 584 Herff Jones Cap & Gown 550 Busey Bank 544

The University of Illinois’ Research Park

The Research Park at the University of Illinois at Urbana

- Champaign (UIUC) provides an environment where technology

- based businesses can work with the research faculty and
students at UIUC to take advantage of opportunities for collaborative research and easy access to University labs, equipment, and services. Located on campus, the Research Park is already home to more than 70 companies and growing, employing over 1,400 people in high

technology careers. At any given time over 400 UIUC student interns with leading

- edge technical skills are working in these companies gaining valuable work experience while making real contributions to internal corporate R&D and product development progr ams. While some of these companies do not have the number of employees to rank in the top 10 yet, their contributions to this emerging research park and the local community is exciting nonetheless. 

### FIGURE 22: Top Emp loyers in Champaign County 2011; Source: Champaign County Economic Development CorporationUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 41 Illumia Corporation is a new safety and risk consulting business that provides Safety Culture measurement services. The team’s work in this area began in the mid 1990s and grew with the assistance of grants to the University of Illinois from the Feder al Aviation Administration and the Air Force Office of Scientific Research, to develop tools to measure the culture of safety and risk and apply them in distributed environments. Initial clients are commercial aviation operators. Illumia will develop an on line delivery system to provide survey services.

Two companies new to the research park are Aptimmune and Dioxide Materials. The former is a company known for developing the Porcine Reproductive and Respiratory Syndrome Virus (PRRSV)
vaccine for swine b ased on a proprietary cell line known as ZMAC. This economically important pandemic disease causes reproductive failure in breeding stock and respiratory tract illness in young pigs. The latter is a new startup developing technology for the conversion of CO2 into fuels and chemicals via artificial photosynthesis from Professor
Rich Masel's research labs.

Already, the UI Research Park is home to seven Fortune 500 companies: Caterpillar, State Farm, Deere & Co., Archer

- Daniels

- Midland, Science Applications International Corp., Yahoo and Qualcomm. Other companies in the research park include PrintEco, which makes plug

- ins for MS office, Internet Explorer, Outlook and Firefox; and EnvirGen, Inc., which is a world leader of research and development in
nutraceu tical/pharmaceutical products. 

### FIGURE 23: Diagram of University of Illinois Research ParkUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 42 Select Company Profiles

Carle Foundation Hospital Officially integrated into one organization in April 2010, the Carle Foundation includes Carle Foundation Hospital and related health care services, Carle Foundation Physician Services, Carle Physician Group (formerly Carle Clinic) and Health Alliance Medical Plans. For more than 20 years, Carle has advanced medicine by offering patients access to treatment options known as clinical trials. These research i nitiatives offer new insight into how to combat a disease, demonstrate new ways of thinking about treatment and possible cures. With 5,669 employees, the travel requirements of this internationally known medical foundation require
convenience and efficien cy.

Kraft Foods Kraft, which is based in Northfield, IL
, has a huge presence in Illinois, with nine plants that employ 8,000 people. Kraft operates 175 plants worldwide. The Champaign plant makes a variety of the company's most popular food items and is one of the newest facilities in the company. The Champai gn factory, which opened in 1963, is one of the largest food

- processing plants in the world. It covers 130 acres and has an assessed valuation of nearly $22 million, meaning it has a huge impact on the local economy of Champaign County.

Hobbico
Hobbico i s the largest retail and wholesale distributor of radio

- control hobby products in the world and one of the most progressive companies in the Champaign/Urbana area. Hobbico consists of 4
basic divisions and employs more than 600 people at the central
Illin ois headquarters. Hobbico is a stable, financially strong company that has grown tremendously in sales as well as profitability.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 43 JELD

- WEN
JELD

- WEN is a nationwide, comprehensive source for reliable wood, vinyl and aluminum windows and patio doors; wood and molded wood fiber interior doors; wood, steel, fiberglass exterior doors; and garage doors. Headquartered in Klamath Fall s , OR, Jeld

- Wen has manufacturing, sales and distribution locations throughout the country and the world.

Higher Education

University of Illinois at Urbana

- Champaign Life in Champaign/Urbana is centered around the University of Illinois. It is the state’s classic land grant university, dedicated to its traditional excellence in education, research, and public engagement, and driven to innovate in each of these missions.

More than 2,000 Urbana

- Champaign facul ty members lead more than 40,000 undergraduate, graduate and professional students in a process of discovery and learning in 16 colleges and
schools and more than 80 research centers
and labs. The Urbana campus faculty and alumni are internationally renow ned. Many faculty members have been elected to membership in the National Academy of Sciences, the National Academy of Engineering, and the American Academy
of Arts and Sciences.

Students and scholars find the University an ideal place to conduct research . The Beckman Institute for Advanced Science and Technology is a model for interdisciplinary research, where eighteen research groups from sixteen University departments work within and across three broadly defined themes: biological intelligence, human

- co mputer intelligent interaction, and molecular and electronic nanostructures. The University is also home to the National Center for Supercomputing Applications (NCSA).

With a faculty team so engaged in regional, national and international research, the ne ed for enhanced air service is great. As part of the Division 1, Big Ten athletic program, the travelUniversity of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 44 requirements of so many teams could be made more efficient with a wider range of travel options. And with such an enormous student body, expanded air se rvice would serve both student travels, as well as the travels of visiting friends and family.

Parkland Community College Parkland College is a fully accredited, public community college established to serve the needs of District 505, the third largest community college district in Illinois. Parkland has a current enrollment of nearly 12,000 students and employs approximately 1,200 faculty and staff. The college has become a center for educational opportunity and community enrichment in
east cen tral Illinois and has earned a national reputation for its excellent academic standards, innovative programs, and quality instruction.

Built on 255 acres of landscaped grounds in Champaign, Illinois, Parkland is centrally located
and accessible to all 54 communities in the district. The beautiful, quiet campus is situated near the intersection of interstate highways 57, 72, and 74
, and is just a seven

- to ten

- minute drive
from the University of Illinois campus.

Parkland’s facilities include more than 85 classrooms, 60 specialized labs, a library collection of over 120,000 volumes, an FM radio station, an educational TV station, an experimental agricultural land laboratory, an art gallery, and excellent physical education an d recreation facilities, including a fitness center. The cultural center contains a 320

- seat performing arts
theater and a 50

- foot dome planetarium, the second largest in Illinois. Parkland also has a child development center to serve the needs of faculty, staff, students, and families in the community.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 45 Tourism in Champaign County

Champaign County has more diverse attractions to draw visitors than most counties of comparable size can claim. Much of the area’s attractions center around the University of Illinois, which provides amenities such as a world

- class art museum, theater programs and Division I, and Big Ten Athletics. Beyond the University, Champaign County offers the visitor fine
din ing, museums and shopping.

Octave Chanute Aerospace Museum The Octave Chanute Aerospace Museum is a premier showcase of Illinois Aviation and the 77 year history of Chanute Air Force Base. The museum encompasses over 126,000 sq. ft. of display space, boa sting the largest aerospace museum in Illinois. Special memorial items are dedicated in honor of pioneer aviators
, Illinois and Chanute AFB commanders and heroes. A gift show,
visitors reception suite, library, Children's Discover Room, snack bar, and helpful volunteers await
visitor's arrival.

Krannert Center for the Performing Arts What Lincoln Center is to New York and Kennedy Center is to Washington D.C., Krannert Center
is to th e Midwest

- a magnificent showcase for the performing arts. Krannert Center differs from its East Coast counterparts in that it is first and foremost a place for education. A professional laboratory for the University dance, theatre, opera, and music dep artments, the Center also hosts internationally famous artists.

Orpheum Children's Science Museum The Orpheum Children's Science Museum, located in the 1914 Orpheum Theatre, is one of the finest buildings in downstate Illinois. Children of all ages are g iven the opportunity to learn science at their own pace in an informal setting.

Spurlock Museum The Spurlock Museum celebrates the people of the world with featured galleries of Africa, Ancient Egypt and Mesopotamia, Europe, East Asia, Southeast Asia an d Oceania, the Americans, and the Ancient Mediterranean. Special facilities include a focus gallery for temporary exhibits, learning center, auditorium, and educational resource center.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 46 Early American Museum The Early American Museum has an extensive collection interpreting 19th and early 20th century
life in East

- Central Illinois. Two floors of exhibits present architecture, trades and occupations, decorative arts, and childhood and domestic life of the time

. The Discovery Room offers hands

on opportunities for children to interact and learn about the residents of the Grand Prairie. Educational programs are offered for all ages throughout the year.

William M. Staerkel Planetarium
The second largest planet arium in Illinois is part of Parkland College's Cultural Center. The planetarium uses a Zeiss Star Projector to project 7,600 visible stars on the 50

- ft dome. State of
the art audio

- visual equipment and special effects help visitors learn about the stars and planets and experience the perspective of the larger universe. In addition to regular features, the planetarium also offers children's shows, rock

- n

- roll light shows, and special seasonal presentations.

Wandell Sculpture Garden
The Wandell Sculpture Garden was established in honor of Willett and Celia Wandell in 1998. This unique, free outdoor sculpture garden sits among 22

- acres of re

- created Illinois tall grass prairie
in a 130

- acre community park. While walking the path, one can encoun ter bikers, joggers, and other sculpture lovers, as the park serves both recreational and educational purposes. Works from local artists who have ties with the University of Illinois grace the garden.University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 47 COMPARISON TO OTHER COMMUNITIES IN REGION

Itinerary Average Airport CY 2008 CY 2009 CY 2010 Mileage Yield 08-10 09-10

1 Sault Sainte Marie, MI $292.14 $267.31 $293.56 1,269 23.14¢ 0.2% 9.8% 2 La Crosse, WI $289.04 $274.27 $287.71 1,157 24.87¢ -0.2% 4.9% 3 Pellston, MI $308.17 $259.79 $283.18 1,148 24.66¢ -4.1% 9.0% 4 Alpena, MI $314.41 $285.15 $276.13 1,178 23.45¢ -6.3% -3.2% 5 Kalamazoo, MI $241.88 $231.05 $265.98 1,032 25.77¢ 4.9% 15.1% 6 Traverse City, MI $255.74 $224.77 $251.73 1,148 21.92¢ -0.8% 12.0% 7 Lansing, MI $194.21 $209.71 $232.00 990 23.43¢ 9.3% 10.6% 8 Midland/Saginaw , MI $224.03 $204.24 $230.16 1,141 20.17¢ 1.4% 12.7% 9 Champaign, IL $220.14 $202.14 $226.21 1,144 19.78¢ 1.4% 11.9% 10 Evansville, IN $231.64 $225.00 $224.16 1,044 21.48¢ -1.6% -0.4% 11 Rhinelander, WI $238.11 $193.84 $217.01 1,229 17.66¢ -4.5% 12.0% 12 Marquette, MI $234.18 $194.77 $208.62 1,216 17.15¢ -5.6% 7.1% 13 Iron Mountain, MI $213.80 $200.86 $205.73 1,260 16.33¢ -1.9% 2.4% 14 Cincinnati, OH $249.76 $176.10 $200.87 965 20.81¢ -10.3% 14.1% 15 Escanaba, MI $222.07 $195.54 $197.89 1,245 15.89¢ -5.6% 1.2% 16 Hancock, MI $250.38 $222.44 $191.99 1,245 15.42¢ -12.4% -13.7% 17 Fort Wayne, IN $206.89 $175.94 $190.10 1,080 17.60¢ -4.1% 8.0% 18 Paducah, KY $235.32 $208.37 $184.61 1,179 15.66¢ -11.4% -11.4% 19 Lexington, KY $211.26 $186.12 $184.42 1,000 18.45¢ -6.6% -0.9% 20 Springfield, IL $197.98 $180.64 $183.56 1,115 16.46¢ -3.7% 1.6% 21 Cleveland, OH $164.98 $149.54 $181.62 1,010 17.99¢ 4.9% 21.5% 22 Green Bay, WI $205.48 $173.21 $175.59 1,073 16.36¢ -7.6% 1.4% 23 Wausau, WI $216.24 $174.94 $175.26 1,184 14.80¢ -10.0% 0.2% 24 Chicago O'Hare, IL $175.59 $157.37 $175.22 1,021 17.17¢ -0.1% 11.3% 25 Grand Rapids, MI $212.33 $185.11 $174.44 1,126 15.49¢ -9.4% -5.8% 26 Louisville, KY $164.97 $153.74 $174.17 962 18.10¢ 2.8% 13.3% 27 Appleton, WI $217.14 $168.16 $174.17 1,080 16.13¢ -10.4% 3.6% 28 Madison, WI $207.18 $163.68 $173.72 1,073 16.19¢ -8.4% 6.1% 29 Muskegon, MI $216.95 $209.94 $172.52 1,193 14.46¢ -10.8% -17.8% 30 Detroit, MI $162.95 $151.66 $171.94 1,065 16.15¢ 2.7% 13.4% 31 South Bend, IN $173.08 $156.41 $171.63 1,071 16.02¢ -0.4% 9.7% 32 Peoria, IL $176.89 $156.21 $167.30 1,168 14.32¢ -2.7% 7.1% 33 Moline, IL $169.68 $151.25 $166.09 1,072 15.50¢ -1.1% 9.8% 34 Eau Claire, WI $252.15 $217.36 $165.05 1,004 16.44¢ -19.1% -24.1% 35 Toledo, OH $174.82 $150.20 $161.86 932 17.36¢ -3.8% 7.8% 36 Dayton, OH $160.17 $138.31 $154.97 1,023 15.15¢ -1.6% 12.0% 37 Indianapolis, IN $153.48 $137.72 $153.82 1,033 14.89¢ 0.1% 11.7% 38 Columbus, OH $156.10 $135.03 $151.65 979 15.49¢ -1.4% 12.3% 39 Bloomington/Normal, IL $149.92 $136.07 $145.57 1,012 14.38¢ -1.5% 7.0% 40 Chicago Midw ay, IL $131.55 $120.65 $136.90 918 14.91¢ 2.0% 13.5% 41 Flint, MI $146.69 $127.26 $136.73 1,064 12.85¢ -3.5% 7.4% 42 Akron/Canton, OH $137.76 $122.60 $136.27 964 14.13¢ -0.5% 11.2% 43 Milw aukee, WI $160.49 $126.02 $125.53 1,021 12.30¢ -11.6% -0.4% 44 Marion, IL $129.05 $122.40 $124.75 568 21.97¢ -1.7% 1.9% 45 Quincy, IL $115.01 $131.77 $115.22 491 23.46¢ 0.1% -12.6% 46 Rockford, IL $112.15 $93.00 $102.02 1,225 8.33¢ -4.6% 9.7% 47 Manistee, MI $106.19 $98.51 $93.77 343 27.34¢ -6.0% -4.8% 48 Decatur, IL $132.56 $121.18 $77.26 137 56.31¢ -23.7% -36.2% 49 Youngstow n, OH $76.22 $60.27 $62.09 795 7.81¢ -9.7% 3.0% 50 Ow ensboro, KY $0.00 $58.08 $61.00 687 8.88¢ 100.0% 5.0%
Average Regional Fare $168.53 $148.48 $164.40 1,015 16.20¢ -1.2% 10.7% Avg. Ann. Change Rank 

### FIGURE 24: Top 50 Great Lakes Region Airports, Domestic One Way Fares, 2010University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 48 Outbound Percent of Airport CY 2008 CY 2009 CY 2010 Seats / Day CY 2010 08-10 09-10

1 Chicago O'Hare, IL 36,826,386 34,272,605 34,366,320 94,154 33.0% -3.4% 0.3% 2 Detroit, MI 19,546,458 18,016,325 18,159,704 49,753 17.5% -3.6% 0.8% 3 Chicago Midw ay, IL 12,250,952 11,798,088 11,436,573 31,333 11.0% -3.4% -3.1% 4 Milw aukee, WI 5,305,158 5,241,269 6,237,449 17,089 6.0% 8.4% 19.0% 5 Cleveland, OH 7,230,292 6,300,505 5,881,025 16,112 5.7% -9.8% -6.7% 6 Cincinnati, OH 8,635,524 6,556,243 4,925,786 13,495 4.7% -24.5% -24.9% 7 Indianapolis, IN 5,527,994 4,965,096 4,747,052 13,006 4.6% -7.3% -4.4% 8 Columbus, OH 4,638,055 4,222,455 4,023,676 11,024 3.9% -6.9% -4.7% 9 Louisville, KY 2,541,933 2,248,355 2,263,085 6,200 2.2% -5.6% 0.7% 10 Dayton, OH 1,891,431 1,677,199 1,634,305 4,478 1.6% -7.0% -2.6% 11 Grand Rapids, MI 1,272,905 1,196,928 1,410,604 3,865 1.4% 5.3% 17.9% 12 Akron/Canton, OH 941,551 928,018 956,546 2,621 0.9% 0.8% 3.1% 13 Madison, WI 1,039,406 962,764 937,044 2,567 0.9% -5.1% -2.7% 14 Lexington, KY 723,682 642,952 719,084 1,970 0.7% -0.3% 11.8% 15 Flint, MI 756,436 648,143 627,218 1,718 0.6% -8.9% -3.2% 16 Moline, IL 652,655 649,529 625,528 1,714 0.6% -2.1% -3.7% 17 Green Bay, WI 623,780 508,069 507,426 1,390 0.5% -9.8% -0.1% 18 South Bend, IN 493,172 432,325 416,800 1,142 0.4% -8.1% -3.6% 19 Appleton, WI 386,694 365,874 373,844 1,024 0.4% -1.7% 2.2% 20 Bloomington/Normal, IL 357,620 351,686 367,407 1,007 0.4% 1.4% 4.5% 21 Fort Wayne, IN 449,642 384,118 344,416 944 0.3% -12.5% -10.3% 22 Peoria, IL 387,608 355,475 332,132 910 0.3% -7.4% -6.6% 23 Traverse City, MI 271,890 272,382 256,042 701 0.2% -3.0% -6.0% 24 Evansville, IN 328,942 277,143 240,477 659 0.2% -14.5% -13.2% 25 Wausau, WI 236,664 239,477 238,940 655 0.2% 0.5% -0.2% 26 Midland/Saginaw , MI 285,096 255,015 238,111 652 0.2% -8.6% -6.6% 27 Kalamazoo, MI 284,307 223,941 234,338 642 0.2% -9.2% 4.6% 28 Lansing, MI 316,230 221,305 211,725 580 0.2% -18.2% -4.3% 29 La Crosse, WI 193,351 185,844 190,968 523 0.2% -0.6% 2.8% 30 Toledo, OH 213,139 162,560 146,331 401 0.1% -17.1% -10.0% 31 Champaign, IL 158,915 141,080 128,930 353 0.1% -9.9% -8.6% 32 Springfield, IL 111,939 104,135 109,007 299 0.1% -1.3% 4.7% 33 Marquette, MI 106,367 93,815 103,436 283 0.1% -1.4% 10.3% 34 Rockford, IL 132,307 131,608 97,448 267 0.1% -14.2% -26.0% 35 Rhinelander, WI 68,827 66,213 55,470 152 0.1% -10.2% -16.2% 36 Eau Claire, WI 67,420 57,868 53,828 147 0.1% -10.6% -7.0% 37 Escanaba, MI 25,565 36,210 40,936 112 0.0% 26.5% 13.1% 38 Pellston, MI 46,160 42,218 39,777 109 0.0% -7.2% -5.8% 39 Iron Mountain, MI 24,863 35,666 35,663 98 0.0% 19.8% 0.0% 40 Muskegon, MI 61,106 31,450 35,257 97 0.0% -24.0% 12.1% 41 Hancock, MI 40,600 41,118 35,241 97 0.0% -6.8% -14.3% 42 Youngstow n, OH 26,394 23,215 34,989 96 0.0% 15.1% 50.7% 43 Paducah, KY 36,342 31,148 34,366 94 0.0% -2.8% 10.3% 44 Alpena, MI 34,986 35,632 27,586 76 0.0% -11.2% -22.6% 45 Ow ensboro, KY 207 14,106 24,837 68 0.0% 995.4% 76.1% 46 Sault Sainte Marie, MI 23,596 24,310 24,412 67 0.0% 1.7% 0.4% 47 Marion, IL 19,126 18,730 18,459 51 0.0% -1.8% -1.4% 48 Quincy, IL 18,705 16,657 16,638 46 0.0% -5.7% -0.1% 49 Detroit Willow Run, MI 17,682 10,455 15,207 42 0.0% -7.3% 45.5% 50 Decatur, IL 14,782 11,249 13,243 36 0.0% -5.3% 17.7%

Total of Above 115,644,842 105,528,571 **103,994,686** 284,917 99.9% -5.2% -1.5%

Total Seats Available 115,761,559 105,600,682 104,051,551 285,073 100.0% -5.2% -1.5% Rank Avg. Ann. Change 

### FIGURE 25: Top 50 Great Lakes Region Airports, Domestic Seats Available, 2010University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 49 \ \ \ Itinerary Average Airport CY 2008 CY 2009 CY 2010 Mileage Fare 08-10 09-10

1 Decatur, IL 26.34¢ 27.27¢ 56.31¢ 137 $77.26 46.2% 106.5% 2 Manistee, MI 23.14¢ 22.84¢ 27.34¢ 343 $93.77 8.7% 19.7% 3 Kalamazoo, MI 23.04¢ 22.66¢ 25.77¢ 1,032 $265.98 5.8% 13.7% 4 La Crosse, WI 24.09¢ 23.83¢ 24.87¢ 1,157 $287.71 1.6% 4.4% 5 Pellston, MI 27.97¢ 22.35¢ 24.66¢ 1,148 $283.18 -6.1% 10.3% 6 Quincy, IL 31.43¢ 31.25¢ 23.46¢ 491 $115.22 -13.6% -24.9% 7 Alpena, MI 28.96¢ 23.90¢ 23.45¢ 1,178 $276.13 -10.0% -1.9% 8 Lansing, MI 19.41¢ 20.77¢ 23.43¢ 990 $232.00 9.9% 12.8% 9 Sault Sainte Marie, MI 23.02¢ 20.69¢ 23.14¢ 1,269 $293.56 0.3% 11.8% 10 Marion, IL 28.62¢ 30.16¢ 21.97¢ 568 $124.75 -12.4% -27.2% 11 Traverse City, MI 22.65¢ 19.91¢ 21.92¢ 1,148 $251.73 -1.6% 10.1% 12 Evansville, IN 23.35¢ 22.26¢ 21.48¢ 1,044 $224.16 -4.1% -3.5% 13 Cincinnati, OH 28.07¢ 19.03¢ 20.81¢ 965 $200.87 -13.9% 9.4% 14 Midland/Saginaw , MI 20.81¢ 18.17¢ 20.17¢ 1,141 $230.16 -1.5% 11.0% 15 Champaign, IL 20.32¢ 18.24¢ 19.78¢ 1,144 $226.21 -1.3% 8.4% 16 Lexington, KY 21.88¢ 18.86¢ 18.45¢ 1,000 $184.42 -8.2% -2.2% 17 Louisville, KY 17.61¢ 16.17¢ 18.10¢ 962 $174.17 1.4% 11.9% 18 Cleveland, OH 17.83¢ 16.13¢ 17.99¢ 1,010 $181.62 0.4% 11.5% 19 Rhinelander, WI 19.39¢ 15.17¢ 17.66¢ 1,229 $217.01 -4.6% 16.4% 20 Fort Wayne, IN 19.32¢ 16.59¢ 17.60¢ 1,080 $190.10 -4.6% 6.1% 21 Toledo, OH 19.33¢ 16.33¢ 17.36¢ 932 $161.86 -5.2% 6.3% 22 Chicago O'Hare, IL 17.35¢ 15.48¢ 17.17¢ 1,021 $175.22 -0.5% 10.9% 23 Marquette, MI 21.22¢ 16.23¢ 17.15¢ 1,216 $208.62 -10.1% 5.7% 24 Springfield, IL 19.10¢ 16.44¢ 16.46¢ 1,115 $183.56 -7.2% 0.1% 25 Eau Claire, WI 21.91¢ 19.02¢ 16.44¢ 1,004 $165.05 -13.4% -13.6% 26 Green Bay, WI 18.39¢ 15.81¢ 16.36¢ 1,073 $175.59 -5.7% 3.5% 27 Iron Mountain, MI 20.62¢ 16.54¢ 16.33¢ 1,260 $205.73 -11.0% -1.3% 28 Madison, WI 19.07¢ 14.76¢ 16.19¢ 1,073 $173.72 -7.9% 9.7% 29 Detroit, MI 15.83¢ 14.40¢ 16.15¢ 1,065 $171.94 1.0% 12.2% 30 Appleton, WI 19.77¢ 14.84¢ 16.13¢ 1,080 $174.17 -9.7% 8.7% 31 South Bend, IN 16.63¢ 14.73¢ 16.02¢ 1,071 $171.63 -1.9% 8.8% 32 Escanaba, MI 19.67¢ 16.16¢ 15.89¢ 1,245 $197.89 -10.1% -1.7% 33 Paducah, KY 26.01¢ 22.86¢ 15.66¢ 1,179 $184.61 -22.4% -31.5% 34 Moline, IL 15.62¢ 13.99¢ 15.50¢ 1,072 $166.09 -0.4% 10.8% 35 Grand Rapids, MI 19.03¢ 16.22¢ 15.49¢ 1,126 $174.44 -9.8% -4.5% 36 Columbus, OH 15.90¢ 13.78¢ 15.49¢ 979 $151.65 -1.3% 12.4% 37 Hancock, MI 19.41¢ 16.42¢ 15.42¢ 1,245 $191.99 -10.9% -6.1% 38 Dayton, OH 16.46¢ 13.74¢ 15.15¢ 1,023 $154.97 -4.1% 10.3% 39 Chicago Midw ay, IL 14.26¢ 13.05¢ 14.91¢ 918 $136.90 2.3% 14.3% 40 Indianapolis, IN 14.91¢ 13.32¢ 14.89¢ 1,033 $153.82 -0.1% 11.8% 41 Wausau, WI 19.28¢ 15.44¢ 14.80¢ 1,184 $175.26 -12.4% -4.1% 42 Muskegon, MI 21.67¢ 19.55¢ 14.46¢ 1,193 $172.52 -18.3% -26.0% 43 Bloomington/Normal, IL 14.91¢ 13.47¢ 14.38¢ 1,012 $145.57 -1.8% 6.8% 44 Peoria, IL 15.44¢ 13.34¢ 14.32¢ 1,168 $167.30 -3.7% 7.3% 45 Akron/Canton, OH 14.00¢ 12.42¢ 14.13¢ 964 $136.27 0.5% 13.8% 46 Flint, MI 13.96¢ 12.09¢ 12.85¢ 1,064 $136.73 -4.1% 6.3% 47 Milw aukee, WI 15.41¢ 12.14¢ 12.30¢ 1,021 $125.53 -10.7% 1.3% 48 Ow ensboro, KY 0.00¢ 8.45¢ 8.88¢ 687 $61.00 100.0% 5.1% 49 Rockford, IL 9.27¢ 7.69¢ 8.33¢ 1,225 $102.02 -5.2% 8.3% 50 Youngstow n, OH 8.86¢ 7.00¢ 7.81¢ 795 $62.09 -6.1% 11.6%
Average Regional Yield 16.88¢ 14.75¢ 16.20¢ 1,015 $164.40 -2.0% 9.8% Avg. Ann. Change Rank 

### FIGURE 26: Top 50 Great Lakes Region Airports, Domestic Yield, 2010University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 50 Outbound Percent of Airport CY 2008 CY 2009 CY 2010 Flights / Day CY 2010 08-10 09-10

1 Chicago O'Hare, IL 373,676 352,089 373,312 1,022.8 30.3% 0.0% 6.0% 2 Detroit, MI 204,122 195,701 204,116 559.2 16.6% 0.0% 4.3% 3 Chicago Midw ay, IL 94,213 90,538 88,038 241.2 7.1% -3.3% -2.8% 4 Cleveland, OH 102,058 89,521 84,482 231.5 6.9% -9.0% -5.6% 5 Milw aukee, WI 69,286 66,382 76,732 210.2 6.2% 5.2% 15.6% 6 Cincinnati, OH 129,511 97,265 70,789 193.9 5.7% -26.1% -27.2% 7 Indianapolis, IN 62,800 56,541 53,156 145.6 4.3% -8.0% -6.0% 8 Columbus, OH 54,790 50,267 48,463 132.8 3.9% -6.0% -3.6% 9 Louisville, KY 32,376 29,295 29,689 81.3 2.4% -4.2% 1.3% 10 Dayton, OH 26,443 23,319 22,841 62.6 1.9% -7.1% -2.0% 11 Grand Rapids, MI 18,125 17,707 19,618 53.7 1.6% 4.0% 10.8% 12 Madison, WI 16,488 15,004 14,636 40.1 1.2% -5.8% -2.5% 13 Lexington, KY 13,985 12,375 13,233 36.3 1.1% -2.7% 6.9% 14 Akron/Canton, OH 11,811 11,439 12,150 33.3 1.0% 1.4% 6.2% 15 Moline, IL 10,883 10,469 10,120 27.7 0.8% -3.6% -3.3% 16 Flint, MI 10,214 9,423 9,031 24.7 0.7% -6.0% -4.2% 17 Green Bay, WI 9,314 7,898 8,693 23.8 0.7% -3.4% 10.1% 18 South Bend, IN 10,039 7,877 7,359 20.2 0.6% -14.4% -6.6% 19 Appleton, WI 7,968 6,887 6,884 18.9 0.6% -7.1% 0.0% 20 Fort Wayne, IN 9,053 7,417 6,355 17.4 0.5% -16.2% -14.3% 21 Peoria, IL 6,929 6,416 5,677 15.6 0.5% -9.5% -11.5% 22 Wausau, WI 5,487 5,333 5,431 14.9 0.4% -0.5% 1.8% 23 Bloomington/Normal, IL 5,506 5,028 5,343 14.6 0.4% -1.5% 6.3% 24 Traverse City, MI 4,625 4,653 4,919 13.5 0.4% 3.1% 5.7% 25 Evansville, IN 7,636 5,678 4,875 13.4 0.4% -20.1% -14.1% 26 Kalamazoo, MI 5,342 4,305 4,712 12.9 0.4% -6.1% 9.5% 27 Midland/Saginaw , MI 3,885 4,086 4,259 11.7 0.3% 4.7% 4.2% 28 Lansing, MI 4,424 3,655 4,158 11.4 0.3% -3.1% 13.8% 29 La Crosse, WI 3,556 3,588 3,778 10.4 0.3% 3.1% 5.3% 30 Toledo, OH 4,624 3,084 2,719 7.4 0.2% -23.3% -11.8% 31 Champaign, IL 3,402 3,025 2,629 7.2 0.2% -12.1% -13.1% 32 Marquette, MI 2,699 2,386 2,177 6.0 0.2% -10.2% -8.8% 33 Springfield, IL 2,229 2,036 2,069 5.7 0.2% -3.7% 1.6% 34 Rhinelander, WI 2,340 2,316 1,963 5.4 0.2% -8.4% -15.2% 35 Marion, IL 927 1,054 1,861 5.1 0.2% 41.7% 76.6% 36 Quincy, IL 975 1,023 1,831 5.0 0.1% 37.0% 79.0% 37 Decatur, IL 778 621 1,735 4.8 0.1% 49.3% 179.4% 38 Escanaba, MI 862 1,065 1,204 3.3 0.1% 18.2% 13.1% 39 Eau Claire, WI 1,875 1,621 1,098 3.0 0.1% -23.5% -32.3% 40 Iron Mountain, MI 836 1,049 1,049 2.9 0.1% 12.0% 0.0% 41 Pellston, MI 1,232 1,076 980 2.7 0.1% -10.8% -8.9% 42 Ow ensboro, KY 11 361 958 2.6 0.1% 833.2% 165.4% 43 Alpena, MI 1,029 1,048 809 2.2 0.1% -11.3% -22.8% 44 Hancock, MI 1,015 1,030 756 2.1 0.1% -13.7% -26.6% 45 Muskegon, MI 1,746 925 732 2.0 0.1% -35.3% -20.9% 46 Sault Sainte Marie, MI 694 715 718 2.0 0.1% 1.7% 0.4% 47 Paducah, KY 1,061 912 708 1.9 0.1% -18.3% -22.4% 48 Rockford, IL 1,145 867 643 1.8 0.1% -25.1% -25.8% 49 Manistee, MI 534 661 630 1.7 0.1% 8.6% -4.7% 50 Ironw ood, MI 523 653 584 1.6 0.0% 5.7% -10.6%

Total of Above 1,345,082 1,227,684 **1,230,702** 3,371.8 99.9% -4.3% 0.2%
Total Flights Completed 1,347,237 1,228,643 1,231,537 3,374.1 100.0% -4.4% 0.2% Rank Avg. Ann. Change 

### FIGURE 27: Top 50 Great Lakes Region Airports, Domestic Flights Completed, 2010University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 51 Seats Overall Airport CY 2008 CY 2009 CY 2010 CY 2010 3 Yr Avg 08-10 09-10

1 Rockford, IL 81.9% 79.7% 89.6% 97,448 83.2% 4.6% 12.3% 2 Madison, WI 70.6% 78.0% 82.3% 937,044 76.8% 7.9% 5.5% 3 Akron/Canton, OH 77.6% 77.5% 81.1% 956,546 78.7% 2.2% 4.6% 4 Fort Wayne, IN 63.3% 68.1% 79.9% 344,416 69.7% 12.3% 17.3% 5 Flint, MI 69.7% 75.7% 79.5% 627,218 74.6% 6.8% 5.0% 6 Chicago O'Hare, IL 77.2% 76.8% 79.4% 34,366,320 77.8% 1.4% 3.4% 7 Chicago Midw ay, IL 70.6% 74.7% 79.0% 11,436,573 74.6% 5.8% 5.7% 8 Detroit, MI 77.9% 77.5% 78.8% 18,159,704 78.1% 0.6% 1.7% 9 Columbus, OH 72.8% 73.9% 78.8% 4,023,676 75.1% 4.0% 6.6% 10 Youngstow n, OH 66.0% 74.6% 78.7% 34,989 73.6% 9.2% 5.5% 11 Indianapolis, IN 74.4% 75.9% 78.7% 4,747,052 76.2% 2.8% 3.7% 12 Cincinnati, OH 74.2% 76.7% 77.5% 4,925,786 75.8% 2.2% 1.1% 13 Grand Rapids, MI 71.4% 74.0% 77.5% 1,410,604 74.4% 4.2% 4.8% 14 Milw aukee, WI 72.3% 73.4% 77.3% 6,237,449 74.5% 3.4% 5.4% 15 Cleveland, OH 72.9% 73.3% 76.5% 5,881,025 74.1% 2.4% 4.4% 16 Moline, IL 73.4% 71.3% 76.4% 625,528 73.7% 2.0% 7.1% 17 Dayton, OH 76.9% 73.6% 76.3% 1,634,305 75.6% -0.3% 3.7% 18 South Bend, IN 72.8% 73.7% 76.2% 416,800 74.1% 2.3% 3.4% 19 Peoria, IL 72.7% 68.8% 75.9% 332,132 72.4% 2.2% 10.3% 20 Lexington, KY 68.7% 70.0% 75.0% 719,084 71.2% 4.5% 7.2% 21 Bloomington/Normal, IL 73.5% 69.3% 74.7% 367,407 72.6% 0.8% 7.8% 22 Louisville, KY 74.7% 73.7% 74.4% 2,263,085 74.3% -0.1% 0.9% 23 Appleton, WI 67.0% 74.4% 72.7% 373,844 71.3% 4.2% -2.3% 24 Evansville, IN 58.9% 55.8% 70.8% 240,477 61.3% 9.6% 26.9% 25 Green Bay, WI 66.5% 69.1% 69.7% 507,426 68.3% 2.3% 0.9% 26 Wausau, WI 65.4% 60.8% 66.9% 238,940 64.3% 1.2% 10.0% 27 Champaign, IL 61.8% 62.3% 66.8% 128,930 63.5% 3.9% 7.2% 28 Traverse City, MI 67.2% 64.4% 65.5% 256,042 65.7% -1.3% 1.7% 29 Ow ensboro, KY 19.8% 74.3% 65.1% 24,837 68.2% 81.3% -12.4% 30 Toledo, OH 60.7% 58.7% 63.1% 146,331 60.8% 2.0% 7.6% 31 Lansing, MI 68.9% 63.1% 62.3% 211,725 65.3% -4.9% -1.2% 32 Midland/Saginaw , MI 57.5% 57.3% 61.9% 238,111 58.8% 3.8% 8.1% 33 Hancock, MI 62.5% 60.4% 60.1% 35,241 61.0% -2.0% -0.4% 34 Sault Sainte Marie, MI 55.9% 53.9% 58.6% 24,412 56.2% 2.4% 8.7% 35 Kalamazoo, MI 59.4% 61.2% 58.6% 234,338 59.7% -0.7% -4.3% 36 Pellston, MI 56.1% 56.0% 58.2% 39,777 56.7% 1.8% 3.9% 37 Paducah, KY 59.8% 59.5% 57.5% 34,366 58.9% -2.0% -3.3% 38 La Crosse, WI 58.3% 56.9% 57.1% 190,968 57.4% -1.0% 0.3% 39 Springfield, IL 50.8% 56.6% 56.3% 109,007 54.5% 5.2% -0.6% 40 Marquette, MI 52.8% 57.2% 55.4% 103,436 55.0% 2.5% -3.1% 41 Rhinelander, WI 41.3% 42.7% 47.7% 55,470 43.6% 7.5% 11.7% 42 Quincy, IL 12.1% 10.5% 46.2% 16,638 22.5% 95.0% 340.8% 43 Marion, IL 17.7% 18.4% 43.2% 18,459 26.3% 56.3% 134.8% 44 Escanaba, MI 31.2% 33.0% 40.6% 40,936 35.6% 14.1% 22.9% 45 Alpena, MI 49.2% 46.8% 39.9% 27,586 45.7% -9.9% -14.6% 46 Eau Claire, WI 44.6% 46.0% 38.9% 53,828 43.4% -6.6% -15.5% 47 Muskegon, MI 54.7% 49.3% 35.5% 35,257 48.1% -19.4% -27.9% 48 Iron Mountain, MI 22.5% 26.6% 33.9% 35,663 28.2% 22.6% 27.6% 49 Detroit Willow Run, MI 9.8% 21.5% 19.4% 15,207 16.0% 40.8% -9.9% 50 Decatur, IL 7.0% 5.8% 17.9% 13,243 10.4% 59.6% 210.4%
Average Load Factor 74.6% 75.3% 78.0% 104,051,551 75.9% 2.3% 3.7% Avg. Ann. Change Rank 

### FIGURE 28: Top 50 Great Lakes Region Airports, Domestic Load Factor, 2010University of Illinois Willard Airport • Small Community Air Service Development Grant Proposal • August 2, 2011 

## 52 CONCLUSIONS

Champaign/Urbana was left without any true east bound connecting service when Delta ended its long standing connection to Detroit . It is imperative that the Airport work to replace
east bound service, to prov ide the connectivity to the east coast and to international
destinations that is necessary for the region’s major businesses.

The University of Illinois Willard Airport proposes a new route between Champaign/Urbana and Washington Dulles . The Airport is requesting a Small Community Air Service D evelopment Grant
to ensure this route is launched. It would be the only non

- stop service from a central Illinois airport to a hub on the East Coast , and the only

non

- stop from the region to Washington, DC.

The Champaign/Urbana market continues to
be squeezed by seats cuts and fare increases.
It i s interesting to note that, while the number of seats offered by Champaign/Urbana’s airlines fell by 30 % between 2008 and 2010, the average number of passengers using the service provided at the Ai rport each day dropped by just 14 %
, as load factors improved to 74% for the 12 months ended March of 2011 . Even as airlines cut service, and as fares go up, demand for service stays strong in Champaign/Urbana

. This is evidenced by the fact that Champaign/Urbana has the highest average fare of all Illinois and
Indiana markets

– at $560 roundtrip in 2010.

Organizations within the community and the University of Illinois recognize the economic value commercial service at Willard Airport brings to the community and hav e underscored their commitment by allocating financial resources to the project. The project is ready to move forward in 2012, with federal support. 

## “T he Champaign/Urbana market continues to be squeezed by seat
cuts and fare increases.”