





PROPOSAL UNDER THE SMALL COMMUNITY 

AIR SERVICE DEVELOPMENT PROGRAM

Docket Number OST-2011-0119



Submitted to the 

UNITED STATES DEPARTMENT OF TRANSPORTATION 

Docket Operations and Media Management Division



Submitted by

ABILENE REGIONAL AIRPORT

City of Abilene, Texas

DUNS Number 081078891

EIN 75-6000440

Congressional District – TX19



August 2, 2011
1

TABLE OF CONTENTS

ABILENE REGIONAL AIRPORT

1. Summary Information: Appendix B . . . . . . . . . . . . . . 2

2. Summary of Proposal . . . . . . . . . . . . . . . . . . . . . . . . . 4

3. Abilene Regional Airport Overview . . . . . . . . . . . . . . . 5

3.1 Abilene, Taylor County & Catchment Area Overview

3.2 Historic Service from Abilene, 1994 – 2011

3.3 Current Nonstop Service from Abilene

3.4 O & D Comparison of Abilene’s Top Markets

3.5 Challenges to Abilene’s Service Enhancement

4. Air Service Development Two-Year Strategic Plan . . . 10

5. Air Service Development Action Plan . . . . . . . . . . . 11

6. Proposed Funding Request . . . . . . . . . . . . . . . . . . . 12

7. Evaluation Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . 13

8. Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2

1. SUMMARY INFORMATION: APPENDIX C

Abilene Regional Airport

City of Abilene, Texas

 DUNS Number: 081078891

A. Applicant Information

 Not a Consortium  Interstate Consortium

 Intrastate Consortium  Community now receives EAS subsidy

X Community(or Consortium member) previously received a Small 

Community Grant

If Previous recipient: Date of grant: 2002 (Pilot Program) Expiration of grant: 2005

 Date of grant: 2006 Expiration of grant: 2010

B. Public/Private Partnerships 

Public Private

1. City of Abilene Abilene Reporter-News

2. Development Corporation of Abilene Brownwood, TX Marketing Alliance

3. Texas Midwest Community Network

C. Project Information

 Project Proposal 

 Marketing Upgrade aircraft  New route

 Personnel Increase frequency Low fare service

 Travel Bank Service restoration Surface transportation

 Subsidy  Regional service Other (specify) 

 Revenue guarantee  Launch new carrier 

 Start up cost offset First competitive service 

 Study  Secure additional carrier
3

D. Existing landing aids at local airport

 Full ILS  Outer/Middle Marker  Published instrument approach

 Localizer  Other (specify): 24 hour TRACON

E. Project Cost: Do Not Enter Text In Shaded Area

Line Description Sub Total Total Amount

1 Federal Amount Requested XXXXX $800,000

2 State cash financial contribution XXXXX -0-

Local cash financial contribution XXXXX XXXXX

3a Airport cash funds -0- XXXXX

3b Non-airport cash funds $210,000 XXXXX

3 Total local cash funds (3a+3b) XXXXX $210,000

4 TOTAL CASH FUNDING 

(1+2+3)

XXXXX $1,010,000

In-Kind Contribution XXXXX XXXXX

5a Airport In-Kind contribution** $10,800 XXXXX

5b Other In-Kind contribution** $50,725 XXXXX

5 TOTAL IN-KIND 

CONTRIBUTION (5a+5b)

XXXXX $61,525

6 TOTAL PROJECT COST (4+5) XXXXX $1,071,525
4

F. IN-KIND CONTRIBUTIONS**

For funds in lines 5a (Airport In-Kind contribution) and 5b (Other In-Kind contribution), 

please describe the source(s) of funds(s) for each.

 5a: The Airport will make an in-kind contribution of approximately $10,800 by 

waiving all airport use fees for two (2) years.

 5b: Up to $45,000 in dollar for dollar advertising purchase match by Abilene 

Reporter-News; $5,725 in regional advertising by the Brownwood, TX Marketing 

Alliance.

 2. SUMMARY OF PROPOSAL

Air service to Abilene and its 16-county West Central Texas catchment area was adversely 

affected by changes in the airline industry over the past few years. ABI lost Continental 

Airlines service to Houston Inter-Continental on October 1, 2008 leaving ABI with American 

Eagle service to only D/FW. Enplanements have decreased 18.8% since YE 2006 as 

passengers were affected by the national recession and looked to other airports within 

driving distance for more competitive fares and greater choice in destinations. Of the 

passengers in ABI catchment area, ABI is retaining about 56%.

Based on Abilene Regional Airport’s 2011 True Market Estimate (Attachment) the region 

served by ABI has a critical need for enhanced access to more competitive fares and 

improved destination choices.
5

 This proposal seeks to improve air service to and from Abilene and the West Central 

Texas region by requesting funds to assist with offsetting start-up costs for a new

carrier, including marketing assistance to support the new service for two years.

 The City of Abilene requests a grant for $800,000 under the terms of the Small 

Community Air Service Development Program to enhance access to the national air 

transportation system for the residents, businesses, universities, and healthcare 

systems of the Airport’s 16-county catchment area.

 Based on the past efforts of Abilene Regional Airport and its stakeholders throughout 

the West Central Texas region, along with a local cash contribution of $210,000, in 

support of its proposal from the Development Corporation of Abilene and Texas 

Midwest Communities Network; and In-Kind contribution estimated at $55,800 in 

annual airport fee waivers over the two-year grant period, Abilene has a high 

likelihood of success in attracting and establishing a new air carrier. 

 Abilene will accept partial award of its application.

3. ABILENE REGIONAL AIRPORT OVERVIEW

 Abilene Regional Airport is a FAA-designated Non-Hub Airport that enplaned 77,267

passengers in 2010. The Airport serves the West Central Texas region of Texas, an 

area that spans 16 counties and is home to approximately 250,000 residents within a 

60-mile radius that have strong economic and cultural ties to Abilene. 
6

 Abilene is a vital transportation link for the West Central Texas region. By promoting 

Abilene’s carrier - American Eagle Airlines – and the ease of beginning and ending 

air travel at ABI , the Airport has been able to successfully stimulate demand and 

attract 56% of West Central Texas’ passengers in spite of today’s difficult operating 

environment. 

 However, 44% of Abilene passengers are still lost to other Texas airports. This is the 

result of the average fare from Abilene that is 48% higher than the average fare from 

Midland, Texas to our Top 20 destinations. It is also the result of inadequate service 

to the different regions of the U.S.

3.1 Abilene, Taylor County & Catchment Area Overview

 Abilene (Taylor County) 2010 Population 131,506

 Abilene projected population growth rate 6% 

(2011-2020) (*2010 Woods& Poole Economics, Inc.)

 Abilene per capita personal income level. $38,000

 Unemployment rate (May 2011) 6.6%

 Total catchment area population (est.) 298,000

 Average mileage to Airport from the perimeter of 60

the catchment area
7

3.2 Historic Service From Abilene, 1994 - 2011

 In 1994, Abilene’s service level peaked at 27 daily departures, with nonstop service to 

Dallas, Houston, and Austin provided by four airlines – Delta/ASA, American Eagle 

Airlines, Dallas Express, and Conquest Airlines.

 Abilene has been challenged with service elimination in the last decade. In 1996, 

Delta Connection carrier ASA discontinued service. Continental Express re-initiated 

service in 2003, but discontinued it in October 2008. This contributed to an 18.8 % 

decline in enplanements from 2006 to 2010.

 American Eagle Airlines, a commuter carrier for parent American Airlines, has 

served Abilene continuously since the late 1970s. However, its enplanements 

decreased sharply after September 11, 2001. Abilene’s service level was maintained 

due to a city-incentivized heavy maintenance base operated by Eagle Aviation 

Services, Inc., a subsidiary of AMR Corp.

 Until September 1, 2003, when Continental Connection resumed service, Abilene was 

served by American Eagle Airlines only, providing six daily nonstops to DFW 

Airport. Since October 1, 2008, ABI is, once again, served only by American Eagle.

 In spite of Abilene’s high fares and single-carrier service, Abilene businesses support 

the Airport and airlines. A previous study showed almost 30% of Abilene passengers 

pay full Y or Premium Coach fares vs. the national average of 10%.
8

3.3 Current Nonstop Service From Abilene, August 2011

 Abilene’s current service consists of seven (7) nonstop flights to American 

Airlines’/American Eagle Airlines’ hub at Dallas/Ft. Worth International Airport:

 American Eagle has experienced steadily increasing load factors due to a rebounding 

local economy and replacing some 50-seat RJs with 37-seat RJs.

3.4 O&D Fare Comparison of Abilene’s Top Markets

 A comparison of current fares, obtained from the airlines’ web-based reservations 

sites, demonstrates that Abilene fares are generally higher than those from Midland 

and DFW Airports for ABI’s Top 20 True Market Destination Cities. 

 Round trip fares were obtained from the airlines’ web-based reservations sites; 14-

day advance purchase; departure on 7/19/11, with return on 7/22/11; one-stop service; 

taxes and fees included.
9

Date: American Airlines

Tuesday 1st Tuesday on Next Month 7/19/11-7/22/11

July 5, 2011 AA.com

From: ABI ABI ABI MAF MAF MAF DFW DFW DFW

Destination Out In Total Out In Total Out In Total

Orlando, FL MCO

$ 

192 

$ 

255 

$ 

447 

$ 

162 

$ 

212 

$ 

374 $123 $210

$ 

333 

Dallas Ft Worth, TX 

DFW

$ 

60 

$ 

60 

$ 

120 

$ 

39 

$ 

49 

$ 

88 

$ 

- $ - 

$ 

-

Seattle, WA SEA

$ 

229 

$ 

377 

$ 

606 

$ 

208 

$ 

208 

$ 

416 $144

$ 

169 

$ 

313 

Las Vegas, NV LAS

$ 

188 

$ 

188 

$ 

376 

$ 

188 

$ 

232 

$ 

420 $119 119

$ 

238 

Atlanta, GA ATL

$ 

169 

$ 

269 

$ 

438 

$ 

148 

$ 

241 

$ 

389 $109 $226

$ 

335 

Ontario, CA ONT

$ 

229 

$ 

234 

$ 

463 

$ 

205 

$ 

205 

$ 

410 $174 $174

$ 

348 

San Diego, CA SAN

$ 

214 

$ 

269 

$ 

483 

$ 

223 

$ 

268 

$ 

491 $154 $229

$ 

383 

El Paso, TX ELP

$ 

208 

$ 

208 

$ 

416 

$ 

187 

$ 

196 

$ 

383 $148 $147

$ 

295 

New York, NY LGA

$ 

313 

$ 

313 

$ 

626 

$ 

257 

$ 

302 

$ 

559 $252 $252

$ 

504 

Burbank, CA BUR

$ 

229 

$ 

234 

$ 

463 

$ 

213 

$ 

230 

$ 

443 $174 $174

$ 

348 

Los Angeles, CA LAX

$ 

229 

$ 

234 

$ 

463 

$ 

205 

$ 

205 

$ 

410 $174 $174

$ 

348 

Kansas City, MO MCI

$ 

165 

$ 

195 

$ 

360 

$ 

144 

$ 

166 

$ 

310 $105 $144

$ 

249 

Chicago, IL ORD

$ 

194 

$ 

194 

$ 

388 

$ 

173 

$ 

183 

$ 

356 $134 $134

$ 

268 

Philadelphia, PA PHL

$ 

198 

$ 

219 

$ 

417 

$ 

178 

$ 

208 

$ 

386 $139 $159

$ 

298 

Denver, CO DEN

$ 

149 

$ 

246 

$ 

395 

$ 

154 

$ 

162 

$ 

316 $89 $206

$ 

295 

Washington DC DCA

$ 

204 

$ 

234 

$ 

438 

$ 

183 

$ 

223 

$ 

406 $144 $174

$ 

318 

Minneapolis, MN MSP

$ 

229 

$ 

229 

$ 

458 

$ 

225 

$ 

252 

$ 

477 $186 $186

$ 

372 

Nashville, TN BNA

$ 

236 

$ 

236 

$ 

472 

$ 

235 

$ 

245 

$ 

480 $196 $196

$ 

392 

St.Louis, MO STL

$ 

169 

$ 

169 

$ 

338 

$ 

148 

$ 

158 

$ 

306 $109 $109

$ 

218 

Boston, MA BOS

$ 

298 

$ 

334 

$ 

632 

$ 

274 

$ 

274 

$ 

548 $238 $253

$ 

491 

Average Fare

$ 

205 

$ 

235 

$ 

440 

$ 

187 

$ 

211 

$ 

398 

$ 

146 

$ 

172 

$ 

317 

Comments:

Starting reports on 1st Tuesday of the month with 14 day advance 

purchase.
10

3.5 Challenges To Abilene Service Enhancement

 Abilene’s high average fare and proximity to four Texas airports served by low-fare 

carriers – primarily Southwest Airlines, but also AirTran, and Frontier Airlines - has 

resulted in passenger leakage of 44%.

 Dallas – DFW Airport 173 miles

 Midland/Odessa – Midland International Airport 176 miles

 Dallas – Love Field, home of Southwest Airlines 183 miles

 Lubbock – Lubbock International Airport 176 miles

 Stimulating new passenger demand for Abilene, and capturing those leaked passengers 

who drive to neighboring airports to take advantage of lower fares and variety of onestop destinations, will be our strategic plan’s largest challenges.

4. AIR SERVICE DEVELOPMENT TWO-YEAR STRATEGIC 

PLAN

 Abilene will build on its Air Service Development Plan designed to enhance the 

Airport’s ability to continue securing long-term self-sustaining improvements in its 

air service. This will be accomplished by continued communication and outreach to 

the population of our 16-county rural catchment area, whom we feel prefer a small, 

friendly rural airport by:

 Increasing our knowledge of area air service customers’ needs and 

expectations

 Increasing the Airport’s presence in Abilene and the region

 Updating the market’s air service data
11

 Conducting route planning forecasts for potential carriers

 Promoting enhanced air carrier destinations

 Offering financial assistance and marketing assistance to the carrier that 

provides enhanced service, including waiving all airport use fees and 

offsetting start-up costs of up to $400,000 per year over the two-year grant 

period. Utilizing all available no-cost to low-cost outreach tactics to 

promote the Airport and the airlines

4.1 Regional Advertising Campaigns Supporting New Hub 

Service

The Airport will place paid advertising on local TV and radio media, in rural newspapers 

and on outdoor billboards throughout the 16-county region to increase awareness of new 

hub service. In addition to Airport advertising in several Abilene-based newspapers, this 

project will provide two years of advertising campaigns in all regional newspapers, 

consisting of multiple insertions of small space ads and outdoor billboards (see ABI SCASDP 

Marketing Plan).

5. AIR SERVICE DEVELOPMENT ACTION PLAN

 Regardless of the outcome of this proposal, the Airport will do all it can for the next 

two years to ensure the success of its Air Service Strategic Plan using all available 

marketing tactics that work well in Abilene and the region:

 Issue news releases and/or hold press conferences or Town Hall Meetings in 

each county seat 

 Conduct sales blitzes in each county seat
12

 Promote new services at local and regional trade shows

 Issue e-mail announcements

 Continue to build the email address database

 Continue presentations to Abilene and regional service clubs

 Continue to provide group tours of the terminal and airfield

 Continue to coordinate group sales efforts with the Abilene Convention and 

Visitors Bureau, the Abilene Chamber of Commerce, the Abilene Industrial 

Foundation, and the Abilene Cultural Affairs Council

 Continue to work with Economic Development staff throughout West Central 

Texas

 Encourage the airlines to provide promotional fares, which compete with 

service at alternate airports, including those served by Southwest Airlines, 

that the Airport can communicate throughout the region by email and social 

media.

6. PROPOSED FUNDING REQUEST

 The City of Abilene requests a grant for $800,000 under the terms of the Small 

Community Air Service Development Program to implement its two-year Air Service 

Strategic Development Plan. 

 The Development Corporation of Abilene, which administers the city’s half-cent sales 

tax for economic development, has pledged $200,000 toward marketing the new 

service.

 Texas Midwest Communities Network has pledged $10,000 to market the new service 

to the rural areas of our catchment area.
13

 The Airport will make an in-kind contribution of approximately $10,800 by waiving 

all airport use fees for two (2) years.

 Abilene Reporter-News has committed to in-kind advertising contribution of up to 

$45,000.

 The Brownwood, TX Marketing Alliance has committed to in-kind advertising 

contribution of up to $5,725

 Abilene’s contribution represents 25% of the cost of this proposal.

7. EVALUATION CRITERIA

 We’ll know we’re successful when:

 The Airport’s passenger catchment rate increases from 56% to 65% in 

2013.

 Enhanced service to an additional U.S. hub in 2012 

 Abilene’s average fare is less than 20% higher than the average fares from 

D/FW and Midland to our Top 20 Destinations Cities.

 Monthly enplanements continue to increase year-over-year

 The tools we’ll use:

 Quantitative Data from the airport’s air service consultant 

 DOT Enplanement Data

 In-house web-based air fare tracking using 14-day advanced booking
14

 Who will do the work?

 The Airport Business Development Manager will be responsible for 

implementation of the Plan

 An air service consultant will be retained to conduct air service studies, as 

needed

8. ASSURANCES

 The City of Abilene is the public agency and local sponsor that will receive program 

funding from the Department of Transportation and submit reimbursement requests.

 Protections have been established in compliance with the Single Audit Act to ensure 

that money intended for this project cannot be diverted to other uses.