# TWEED NEW HAVEN AIRPORT AUTHORITY

NEW HAVEN, CONNECTICUT

Dun & Bradstreet DUNS Number: 800203864



# PROPOSAL UNDER THE : SMALL COMMUNITY
AIR SERVICE DEVELOPMENT PROGRAM

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SUBMITTED : Friday, July 26, 2013Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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### APPLICAT ION UNDER
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

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SUMMARY INFORMATION

All applicants must submit this Summary Information schedule, as the application coversheet, a completed standard form SF424 and the full application proposal on www.grants.gov

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

- policy/small

- community

- rural

- air

- service/SCASDP

A. P ROVIDE THE LEGAL SPONSOR AND ITS DUN AND BRADSTREET 

### (D&B) DATA UNIVERSAL

NUMBERING SYSTEM 

### (DUNS) NUMBER 

### , INCLUDING 

### +4, EMPLOYEE IDENTIFICAT ION NUMBER 

### (EIN) OR TAX ID


### . Legal Sponsor Name: Tweed New Haven Airport Authority
DUNS Number: 800203864
EIN/Tax ID:

B. L IST THE 

### N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING 

### : 1._ C ITY OF 

### N EW 

### H AVEN



### _________________________________ 2.____________________________________________________ 3.____________________________________________________ 4._________________________

___________________________

C. P ROVIDE THE FULL AIRP ORT NAME AND 

### 3

- L ETTER 

### IATA A IRPORT 

### C ODE FOR THE

APPLICANT 

### ( S 

### ) AIRPORT 

### ( S 

### ) (O NLY PROVIDE CODES FO R THE AIRPORT 

### ( S 

### ) THAT ARE ACTUALLY

SEEKING SERVICE 

### ). 1. Tweed New Haven Regional Airport (HVN) 2.
3. 4.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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### D. L IST THE 

### 2

- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION 

### , AND IF A CONSORTIUM 

### , TO EACH PARTICIPATIN G COMMUNITY


### . 1. CT

- 03 2.

3. 4.

E. A PPLICANT 

### I NFORMATION 

### : (C HECK 

### A LL 

### T HAT 

### A PPLY 

### )

Not a Consortium Inter state Consortium Intrastate Consortium Community now receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant
If previous recipient: Year of grant(s): 2004, 2007

F. P UBLIC 

### /P RIVATE 

### P ARTNERSHIPS 

### : (L IST 

### O RGANIZATION NAMES 

### )
PUBLIC PRIVATE 1. Tweed New Haven Airport Authority 1. Economic Development Corp. of New Haven 2. City of New Haven 2. Greater New Haven Chamber of Commerce

3. 3. AvPORTS
4. 4.

5. 5.

G. P ROJECT 

### P ROPOSAL 

### : ( CHECK ALL THAT APPLY 

### ) Marketing Upgrade Aircraft New Route
Travel Bank Service Restoration Subsidy Surface Transportation Regional Service Revenue Guarantee
Launch New Carrier Start

- up Cost Offset First S ervice Study Secure Additional Service Other (explain below)

H. E XISTING 

### L ANDING 

### A IDS AT 

### L OCAL 

### A IRPORT 

### :
Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other (specify) Special GPS and VOR approach pro cedures x XTweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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### I. P ROJECT 

### C OST 

### : D O NOT ENTER TEXT IN SHADED AREA


### L INE 

### D ESCRIPTION 

### S UB 

### T OTAL 

### T OTAL 

### A MOUNT


### 1 Federal amount requested $740,000

2 State cash financial contribution Local cash financial contribution

3a Airport cash funds

3b Non

- airpor t cash funds $260,000

3 Total local cash funds ( 3a + 3b ) $260,000

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

In

- Kind contribution

5a Airport In

- Kind contribution** $173,487

5b Other In

- Kind contribution**

5 TOTAL IN

- KIND CONTRIBUTION ( 5a + 5b ) $173,487

6 TOTAL PROJECT COST ( 4+5 ) $1,173,487

J. IN

- KIND CONTRIBUTIONS** For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please describe the source(s) of fund(s) and the value ($) of each. (5a) Funds con sist of $115,727 in fee and rent abatements , $32,760 in fuel flowage fee waivers and $25 ,000 in marketing cost assistance.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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### K. I S 

### T HIS 

### A PPLICATION 

### S UBJECT 

### T O 

### R EVIEW 

### B Y 

### S TATE 

### U NDER 

### E XECUTIVE 

### O RDER 

### 12372

P ROCESS 

### ?

a. This application was made available to the state under the Executive Order 12372 Process for review on (date) _____________.
b. Program is subject to E.O. 12372, but has not been selected by the state for review.

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

L. I S 

### T HE 

### A PPLICANT 

### D ELINQUENT 

### O N 

### A NY 

### F EDE RAL 

### D EBT 

### ? (I F 

### “Y ES 

### ”, P ROVIDE


### E XPLANATION 

### )

No Yes (explain)

______________________________________________________________________________

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## Table of Contents:

Section 1 : The New Haven Market

................................ ....................... 1

Introduction

................................ ................................ .............................. 1 Passenger Traffic & Air Service Trends

................................ ..................... 2 Catchment Leakage (Complete Year 2011)

................................ .............. 3 

## Section 2: Description of Air Service Needs & Deficiencies

................... 4

High Airfares

................................ ................................ .............................. 4 Danger of Losing Existing Service

................................ .............................. 4
Defic iencies of Alternative Airports in the Region

................................ .... 5 HVN’s Limited Air Service as Compared to Its Peers

................................ 6



## Section 3: Proposed Air Service to Washington DC

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

Strong Local Demand, High Fares & Good Connectivity

........................... 8 A Benefit to the Entire New Haven Region

................................ ............... 9



## S ection 4: HVN’s Air Service Development Efforts & Future Plans

...... 10

Infrastructure Improvements

................................ ................................ . 10 Community Engagement

................................ ................................ ........ 10 Community Support

................................ ................................ ................ 1 1



## Section 5: Requested Funds & Plans to Self

- Sufficiency

..................... 1 2

Requested Amount (Local share & Federal grant r equest)

.................... 1 2 Plan after SCASDP Funds are Acquired

................................ ................... 13
How Service Becomes Self

- Sufficient

................................ ..................... 1 3



## Section 6: Difference from Past Air Service Development Efforts

....... 14

Washington is the Difference

................................ ................................ . 14 An Airline is Ready Once Funds are Available

................................ ......... 14


## Appendices : Community Letters of Support

................................ ................. Appendix A

Airline Letters of Support

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## Section 1 : The New Haven Market

Introduction

About New Haven

New Haven is the socio

- economic center of southern Connecticut and is an increasingly global center of research and higher education. With major investments in public infrastructure, new commercial / lab space and residential products, the City is attracting young professionals and startups to the Downtown. The $467 million Yale New

- Haven Smilow Cancer Hos pital, which was completed in 2009, has catalyzed the economic base. Employment in New Haven increased 2% in 2011, growing at twice the state average. The region has fully recovered jobs lost during the recession and, as the City grows, more and more new j obs are concentrated in a densely developed Downtown. Further, the influence of Yale and Yale

- New Haven Hospital is attracting corporate growth. Emerging from the recession, Covidien relocated its 400

- person Surgical Devices Unit to New Haven, Al exion Phar maceuticals announced plans to move back to the center city and double its workforce to 600; and HigherOne developed a new $50 million headquarters to keep its 600 employees based in the ci ty.
In turn, over 2,000 new residential units have been developed i n the past ten years and another 900 are in planning/permitting stages as New Haven is consistently rated one of the hottest rental markets in the nation. Economic and residential growth is closely related. HigherO ne and Alexion both originated at Yale an d chose to stay and grow in the region. The so

- called 'millennial demographic' is establishing itself in the workforce and New Haven offers an attractive both a high quality of life and career pat h employment opportunities.

Greater New Haven's economic pos ition, however, is at risk due to deteriorate d transportation/ infrastructure conditions which impede access to the regional and global m arketplaces. In addition to the limited air service at Tweed (documented extensively herein), Interstate 95 is rated t he 6th most congested highway in America; there are over $2.0 billion in deferred ca pital investments on the MTA
Metro

- North passenger rail service line (including the repair of numerou s bridges); and Amtrak has proposed significant investment for a new hi gh speed rail line which would altogether bypass New Haven in order to better serve other markets, including Hartford. All of these factors adversely affect the City's ability to create even more jobs and enhance the nation's economic competitiveness.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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Key Facts about the Market: Population = 861,113 (T op 60 metro market in the country) Employment Base = 300,000 (with 78,000 located in a densely concentrated urban core)

Economic Drivers: Education: There are 47,000 students enrolled at local colleges/universities Advanced Manufacturing: Schick, Covidien and Assa Abloy are all industry leaders. Health Care: Yale

- New Haven Hospital is the 4th largest nationally.

About Tweed

- New Haven Regional Airport
Located in the heart of southern Connecticut, Tweed

- New Haven Regional Airport (HVN) has a catchment area that contains a population of 1,749,116 residents. The A irport is currently served by only one carrier, US Airways Express with four daily flights operated by 37 seat Dash

- 8

- 100 turboprop aircraft to the carrier’s hub in Philadelphia. The Airport’s main runway, RW Y 20 , is 5,600 feet long. A 400 foot displaced threshold on the north end of the runway forces RWY 02 to be only 5,200 feet long. The runway’s short length has limited the pote ntial for new air service at the Airport; however, there are still many viable air s ervice opportunities that exist with specific carriers to other nearby hubs

. Superior flight options at other surrounding airport along with large fare discrepancies at HVN have historically caused residents to drive between one and three hours to other ai rports when traveling by
air.
Legal Sponsor Desig nation
Tweed New Haven Airport Authority 155 Burr Street New Haven, CT 06512 (203) 466

- 8833

Ti m Larson, Executive Director Lori Hoffman, Airport Manager tlarson@flytweed.com lhoffman@flytweed.com

Pas senger Traffic & Air Service Trends

During the calendar year 2012, 76,570 O&D passengers used Tweed

- New Haven Regional Airport according to BTS O&D passenger data

. This 2012 traffic represented a 5.7% decline from 2011 when there were 81,200 O&D passengers using HVN. Despite this small set

- back in 2012, the overall trend during the past five years has been a slow and steady growth in passenger traffic. In 2012 passenger

t raffic was up 10.2% when compared to 2008, that year only 69,500 O&D passengers used th e Airport.

Over the course of the past five years, US Airways has adjusted the frequency of its HVN

- PHL service (between 3

- 4 daily departures) and size of aircraft in the market (the larger Dash 8

- 300 has been used on occasion, with the route primarily be ing served by the Dash 8

- 100). Meanwhile, air fares have increased 6.5% over that time period and are up 6.4% over last year.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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- 0120 3 Figu re 1 : New Haven's Primary Catchment Area, shaded in purple, has a population of just over one million people. When including HVN’s Secondary Catchment Area shaded in blue, HVN’s total catchment area has a population of 1.75 million people. Catchment Leakage (Complete Yea r 2011 )

Tweed New Haven Regional Airport’s Catchment Area is segmented into two different regions , a Primary Catchment Area and a Secondary Catchment Area. Slightly o ver one mill ion people reside within HVN’s Primary Catchment A rea , which is defined as all zip codes within a 30 minute drive of HVN. An additional 750,000 residents live within HVN’s
Sec ondary Catchment Area which is defined as the area outside the Primary Catchment Area whereby residents can drive to HVN in less time than they could to any other commercial service airport. The total catchment area boasts a population of approximately 1.7 5 million people

. Leakage from HVN’s Primary Catchment A rea totaled 629,270 O&D passengers in 2011, or 862 PDEW ( passengers daily each way ) . Total leakage from HVN’s combined total catchment area was 1.4 million O&D passengers or 1,911 PDEW ( passengers da ily each way )

.
One third of all airline bookings within the State of Connecticut take place within Tweed New Haven Regional Airport ’ s combined catchment area. However, HVN only retains approximately five percent of those passengers with the other 95% leak ing to much larger airports in the surrounding region.

Top 10 Domestic Leakage Markets (CY 2011 Data) :
1) Washington /Baltimore (BWI, DCA, IAD) 91,295 (133 PDEW) 2) South Florida, FL (FLL, MIA , PBI) 94,021 (129 PDEW) 3) Orlando, FL (MCO) 91,032 (125 PDEW) 4) Chicag o, IL (MDW, ORD) 48,347 (66 PDEW) 5) Los Angeles, CA (BUR, LAX, LGB, ONT, SNA) 48,307 (66 PDEW) 6) San Diego, CA (SAN) 43,485 (60 PDEW) 7) San Juan, PR (SJU) 34,294 (47 PDEW) 8) Las Vegas, NV (LAS) 33,243 (46 PDEW) 9) SF Bay Area, CA (OAK, SFO, SJC) 31,415 (43 PDEW) 10) Norfolk/ Newport News, VA (ORF, PHF) 28,330 (39 PDEW)Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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### $180 $185 $190 $195 $200 $205

Regional Average New Haven Average $189 $201 

## CY 2012 Average Domestic Fare

Figure 2 : New Haven's average domestic airfare was 6% higher than the regional average in 2012. Airports included in the regional average are BDL, BOS, EWR, HPN, HVN, JFK, LGA & PVD. Source: BTS O&D Passenger Survey. 

## Section 2 : Description of Air Service Needs and Deficiencies

Higher Air Fares

Average domestic air fares at Tweed

New Haven increased six percent yea r over year to $201 one

- way (including frequ ent flier rewards travel) in 2012, the highest of any airport in the immediate region except Newark

Liberty (EWR) and New York

- Kennedy (JFK)

. According to the Bureau of Transportation Statistics, the national domestic average one

- way airfare decreased 0.2 percent over the same time period. During this period of time

a verage one

- way air fares ranged from as low as $169 to as high has $213 in Boston, Hartford, New York, Providence and White Plains

. New Haven’s fares were six percent higher on average than the regional average of $189. In the fourth quarter of 2012, fares were up ten percent at HVN compared to the fourth quarter of 2011.

Danger of Losing Existing Service

The length of HVN’s primary runway limits the air service opportun ities available to the airport causing w eight
restrictions that prevent certain aircraft from carrying enough fuel to travel to distant hubs and often require airlines to limit the number of passengers on the plane to reduce weight

. There are only a few carriers that operate ai rcraft capable of flying fully loaded from HVN

to their nearby hubs. For US Airways, the Dash

- 8 is the only aircraft in its fleet that can profitably serve HVN unrestricted from its Philadelphia hub . While the Dash

- 8

- 100,200 & 300 series aircraft have been a workhorse for short regional flights at the US Airways Express Philadelphia hub for over 20 years , it is an aging aircraft that is getting more expense to maintain and is no longer in production. As a result of its age and lack of newer airframes to acq uire, US Airways intends to retire the Dash

- 8 from its regional fleet during the next few years

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Once the Dash

- 8 is removed from its fleet , US Airways will not have a suitable aircraft type to maintain
service between HVN and Philadelphia

. US Airways does have other aircraft in its fleet, mainly the EMB

- 170 series, which can physically operate unrestricted between Philadelphia and HVN; however, the economics of the segment prevent such an aircraft from doing so profitably. This economic conundrum can be att ributed to the high ratio of HVN passengers connecting beyond Philadelphia versus the lower number of HVN passengers traveling to Philadelphia. The jet aircraft US Airways would employ require that a larger percentage of the onboard passengers not be conne cting via the hub to be economical.

To ensure that HVN is capable of maintaining daily air service in the future it is vital that the airport

secure US Airways Express service to Washington Reagan National Airport (DCA) , or service to Washington Dulles Air port (IAD), to operate as United Express or in conjunction with United Airlines. By securing service to Washington with a suitable aircraft type, helps ensure that New Haven’s existing level of air service is maintained into the future.

The addition of DC A service would grow US Airways traffic at HVN, potentially making HVN

- PHL service viable with EMB

- 170 series aircraft while ensuring that HVN

- DCA service survives regardless as it is currently a far more popular market for local business travelers than Ph iladelphia. This strong local demand will provide US Airways with the economics necessary to operate an EMB

- 170 to DCA when the same might not be said for PHL. Additionally, by starting HVN

- DCA service now, US Airways will have the option of starting the m arket with smaller Dash

- 8 aircraft and grow the market so that it will have matured to a level where it can support larger EMB

- 170 in the future.
Should another carrier start service to HVN from Washington Dulles International Airport (IAD) there will als o be an assurance that existing levels of air service will be maintained. The two most likely candidates for IAD service at HVN are; Silver Airways with newer Saab

- 340 B+ turboprops that the carrier has just recently acquired and CommutAir with Dash

- 8

- 200 (Q

- 200) aircraft that are newer than those flown by US Airways and too have been recently acquired by the airline. Either way, i n the event US Airways does not have a suitable replacement aircraft for HVN

- PHL and chooses to pull service with the Dash 8’s

r etirement, service at HVN could be maintained by the carrier operating service between HVN and Washington.

Deficiencies of Alternative Airports in Region
Many passengers within New Haven’s catchment area are forced by high fares and lack of service to use the crowded New York City airports at JFK, Newark and LaGuardia. While these premier domestic and
i nternational gateways offer nonstop flights a round the country and around the world, congestion both on the ground and in the air can present a significant l imitation on the ease, reliability and availability of air service for New Haven Catchment Area passenger s. The travel time by car to La Guardia from New
Haven is 90 minutes i n no traffic with drives to Newark and JFK being even longer

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## 212,535 861,113 

## 1,039

17
0 200 400 600 800 1,000 1,200

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2011 MSA Population Daily Seats per 100,000 Residents 0 5 10 15 20 25 30

BOS EWR JFK LGA

21.01 22.10 28.26 26.08 

### Average Taxi

- Out Time (in Minutes) for Major US Carriers

- May 2013

Figure 4: Boston and NYC's airports had average taxi

- out times exceeding 20 minutes in May. Congestion both on the ground and in the air at airports that would otherwise serve as suitable alte rnates for New Haven passengers further increases the need for expanded service at HVN. Source: BTS

Figure 5: Tweed

- New Haven Regional Airport has a level of air service far below its peers as this side by side seats to population comparison demonstrates. Data Source: US Census and Data Based Products Airline Schedules for the week of June 03

- 09, 2013. The three main N ew York City airports are the most congest ed and delay

prone in the country , responsible for schedule disruption s and passenger inconveniences across the national air space system

. Taxi

- out times from these airports regularly exceed 20 minutes, further add ing to the already significant amount of time New Haven Catchment Passengers spend on the ground when they are forced by high fares and lack of service to use alternate airports for air travel.

HVN’s Limited Air Service as Compared to Its Peers

When c ompared to the airports serving metropolitan areas of similar size to New Haven, the level of air service at Tweed

- New Haven Regional Airport is far below its peers. In fact, the chart on the followingTweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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page shows more than thirty airports that are located i n MSA’s smaller than New Haven that offer more seats per resident than HVN does

. The New Haven Metropolitan Area has 861,113 people. For the week of June 03

- 09, 2013, US Airway s ’ schedule offered 17 daily seats at HVN per 100,000 New Haven residents

. B y comparison, Burlington, VT has a metropolitan area one quarter the size of New Haven’s and yet Burlington International Airport ( BTV ) offers 1,015 daily seats per 100,000 local residents

. Even airports in similar proximity to the major New York Airports ha ve significantly greater service. The Lehigh Valley International Airport (ABE) located near Allentown, PA is the same distance from Newark Liberty (EWR) as Tweed

- New Haven is from LaGuardia (LGA) . The metropolitan area populations of Allentown and New Hav en are similar in size, with New Haven being the larger of the two . Yet ABE offered 142 daily seats per 100,000 residents in June 2013 compared to HVN’s 17.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 

### $198 $272 $208 $184 $170 $350 $305 $285 

## New Haven

- Washington Quarterly Average Fare

Figure 6: The quarterly average fare to Washington increased 54% in fourth quarter 2012 over fourth quarter 2011. Source: US O&D Passenger Survey Data 

## Section 3 : Proposed Service to Washington, DC

Strong Local Demand, High Fares and Good Connectivi ty
With only a single carrier flying to one
destinatio n, the number of flights and destinations conveniently accessible from HVN are quite limiting for area passengers. Access to another regional hub with a substantial local market from New Haven in addit ion to connecting service to many new destinations not available via PHL would significantly improve the level and quality of air service at Tweed
New Haven Regional Airport . One of the most suitable regional hubs for the New Haven catchment is at the

sout hern end of the busy Northeast Corridor. Washington, DC is New Have n’s top airline passenger leakage market, with 133 passengers leaking daily each way. Airline leakage accounts for only 38 percent of the total New Haven

- Washington/Baltimore market with 62 percent of the market using Amtrak. The total size of this market acro ss both modes is 256,658 O&D passengers a year, or 352 passengers daily each way.

By comparison, 90 percent of the New Haven

- Philadelphia market currently uses Amtrak for a total marke t across both modes of 142,219 O&D Passengers a year or 195 passengers daily each way. The Washington DC market is therefore 1.8x larger than the Philadelphia market which is currently being served by US Airways with four daily flights.

The demand for air service between New Haven and Washington will be far more than 1.8x that of Philadelphia due to the long duration of the train trip. Travel between New Haven and Washington takes 4:40 on the Acela and roughly 5:30 on the Northeast Regional. These long tra vel times make travelers gravitate towards air travel when possible so save several hours in travel time. When traveling to Philadelphia, the opposite is true; a trip on Acela takes 3:00 with a trip on the Northeast Regional only taking 3:30. This two hour time savings makes traveling by plane or train to Philadelphia comparable. This is another reason why air service to Washington DC will be more viable than HVN’s current service to Philadelphia.

Airf ares to Was hington, DC, were far above average and have increased significantly in recent quarters. Average HVN

- Washington air fares were up 28 percent year over year in 2012. Fourth Quarter 2012 average fares were up 54 percent over fourth quarter 2011.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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In terms of point of sale demand for service to Washingt on DC, as referenced on Page 3 of this proposal, approximately one third of all Connecticut airline passenger bookings take place within the New Haven Catchment Area; however, that percentage is much higher for passengers traveling to Washington DC. In fac t 43% of all Connecticut bookings for air travel to BWI, DCA and IAD took place within New Haven’s Catchment Area, a full 10% higher than the catchment’s overall average for Connecticut airline

passengers. Similarly, Hartford Bradley International Airport’ s (BSL) Catchment Area contains 45% of Connecticut’s passenger bookings to BWI, DCA and IAD and that airport manages to support 18 daily nonstop flights to these three airports on three different airlines. This point of sale data and the comparison to BDL, shows just how strong demand with the New Haven region is for air service to Washington DC.

Furthermore, Washington DC is close enough to New Haven to be served by a number of carriers without undo weight restrictions with the current length of the HVN’s runway. With the appropriate level of financial assistance, service could start today.

A Benefit to the Entire New Haven Region

New service to Washington, DC would be of significant benefit to a broad segment of the New Haven community in addition to suppo rting a more balanced and efficient regional system. As the catchment area’s number one leakage market, it is clearly the most in

- demand market among area passengers. As a top business destination and the nation’s capital, Washington service would be very useful to local business travelers. With service to another airline connecting hub, business travelers who value increased flight options will find using Tweed

- New Haven Regional Airport more convenient and practical than before

. With airline hubs at both Washington airports, Dulles and Reagan, non

- stop service to Washington allows researchers, college students, and alumni from around the world greater access to the premier academic institutions in the New Haven area.

Additional service at HVN is in fact a small part, but a part nonetheless, to a regional solution for improving the reliability of air service for passengers in the greater New York City metropolitan area

. The more passengers that can be accommodated at smaller regional airports at the fringe s of the New York metro, the l ess that need be accommodated on the nation’s most congested runways and in its terminals. Tweed

- New Haven Regional Airport is a perfect example of such a regional airport that, if afforded the opport unity to provide additiona l non stop service to a regional hub with convenient
connections , could be of great benefit to passengers who use it as well as those who do not

. AVG Daily Seats per 100,000 PeopleTweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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## Section 4 : HVN ’s Air Service Development Efforts and Future Plan s

Tweed New Haven Regional Airport ’s Pla n for overco ming its air service deficiencies and meeting the air service needs of area residents takes a three

- pronged approach. It begins with the continued implementation of the Master Plan Update which includes infrastructure improvements to allow for safer flight operations and expanded runway length that will enable airlines to provide the airport with more air service opportunities. It continues beyond the airport’s perimeter through pervasive and effective community engagement to raise awareness abo ut the Airport, be a familiar face at local events and demonstrate the Airport’s commitment to the region. Following from that is the mission to elicit expanded community support to finance the Airport’s operations and growth efforts.

Infrastructure Impro vements

Tweed New Haven Regi onal Airport is actively engaged in the recruitment of new air service. In 2002, the Airport Authority adopted four phases of an updated Master Plan which focused on the physical constraints that prevent HVN from securing additi onal air service. Phase 1 included the construction of runway safety areas 1,000 feet in length at end of the main runway. Phase 2 included the systematic removal of runway obstructions identified in a recent aeronautical study. Lighting upgrades and the
l owering of instrument approach minimums on Runway 0 2 were also a part of this phase. The Airport continues with an extensive tree removal program as part of the on

- going runway obstruction removal. Phase 3 is crucial to developing future air service as it involves the paving of the safety areas of Runway
0 2 and 20 which would effectively provide 6,600 feet of runway for takeoffs and enable HVN to handle larger jets flying to further destinations. The Airport continues to work with the FAA to secure approval and funding for Phase 3 implementation. The final phase of the Master Plan includes the extension of Runway 0 2

- 30 by an additional 600 feet and the construction of a new runway safety area to Runway
0 2. With this extension, and with the paving of the safe ty areas and displacing the thresholds, HVN will achieve 7,200 feet for take

- off and 6,200 feet for landing.
HVN maintains one of the lowest CPE’s (cost per enplanement) for its tenant airlines in the region. The Airport is in continual dialogue with airl ines interested in potentially serving HVN now as well as when the safety areas are paved and runway performance is improved.

Community Engagement

In addition to a concerted effort to improve th e Airport infrastructure, Tweed New Haven Regional Airport mai ntains strong ties and partnerships with the community in an aggressive marketing campaign to increase local awareness and utilization of the Airport. Airport staff maintains close relationships with travel managers at many of the region’s largest employer s and travel generators, these travel managers provide the airport with vital information regarding their organizations travel needs, budgets and most popular destinations. When discussing new air service opportunities with targeted airlines, the informati on provided by these individuals is used to complement the analysis done by the airport to identify passenger traffic that will shift toward the new airline if it chooses to serve HVN.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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Community Support

Both the City of New Haven and the State of Connectic ut understand how important Tweed New Haven Regional Airport is to the local economy which is why these regional government agencies actively support the Airport with millions of dollars provided by both the City of New Haven ($325,000 annually)
and the St ate of Connecticut ($1,500,000 annually) to cover the airport’s operating expenses

. To ensure HVN has the best chances possible of securing additional air service, the airport has spent over $96,000 during the past three years on air service development ef forts and will continue to spend money in support of air service development initiatives. In addition to the se funds, Tweed New Haven Regional Airport also works with local employers, businesses and other economic drivers to promote the use of HVN through cooperative advertising, partnerships, promotions and sponsorships.

In the past the community has pledged overwhelming support for new air service to ensure its success. In 2007 many of New Haven’s local media outlets including; The New Haven Register, T he Connecticut Post, Comcast Cable and our local ABC and NBC affiliates combined to pledge $50,000 for marketing assistance. This was in addition to the incentives already being offered by Tweed New Haven Regional Airport. It is our belief that similar ple dges will be made by local media outlets this time as well. The exactly list of contributors and pledge amounts have not yet been finalized; however, past showing of support makes us confident to believe it can be done again.

For the sake of accuracy, the in

- kind services outlined in the grant application do not include such pledges from local media outlets since the exact amount of those pledges is yet to be determined.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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- 0120 12 Figure 7 : HVN will waive all airport fees during its first year of operation in addition to providing the carrier with $25,000 in free marketing and free ground handling during its first six months of operation at HVN.

Fig ure 8 : HVN will contribute $433

, 487 in cash and in

- kind services to the total incentive package for new air service. This will constitute 37 % of the total incentive package. If DCA service is secured, the airport will contribute an additional $25,000. 

## S ection 5 : Requested Funds and Plan to Self

- Sufficiency

Requested Amount (Lo cal share, F ederal grant request

)

The Federal Amount requested in the grant proposal is $ 740,000 . The Local Share will be $ 260,000 in matching cash or 26% of the total dollar amount

. Local funds will be provided by the Economic Development Corporation of New Haven. Together, these two amounts will combine for a total of $1,000,000 in cash to be used to improve and incentivize air service at HVN.

In addition to the local matching funds of $260,000 in cash, Tweed New Haven Regional Airport will be providing additional in

- kind

ser vices with a total value of $110,363

. Figure 7 outlines the in

- kind services that will be provided along with the value of each.

With the value of HVN’s In

- Kind Services taken into account, Tweed New Haven Regional Airport will be a ble to provide an airline with an incentive package that has a total value of $1,110,363. The value of HVN’s total contribution to this incentive will be $370,363 ($260,000 + $110,373) or 33% of the total $1,110,373 value.

The value of the complete incent ive package is outlined in Figure 8.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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Plan a fter SCASD P Funds are Acquired

The Tweed New Haven Airport Authority has been in discussions with two potential airlines to begin

non

- stop service to Washington, DC from HVN. Silver Airways and US Airways have both expressed interest in serving the market if SCASD P funds were made available to them

. Silver Airways would operate service to IAD at least twice daily with Saab

- 340 B+ aircraft in conjunction with United Airlines thereby allowing for seamless transfe rs of passengers and bags between the two carriers. US Airways would operate at least twice daily service to its hub at DCA. Once the SCASD P funds are acquired, the
Tweed

- New Haven Regional Airport Authority will notify both carriers of the grant receipt a nd jumpstart discussions for initiating service.

How Service Becomes Self

- Sufficient

Like all new airline routes, there is a time period required before a route matures to the expected passenger levels and revenue yields. Based on the data we have compile d, it is clear that a large market exists between New Haven and Washington, DC. This market should easily be able to support the new flights without assistance after the initial startup period.
To ensure that HVN’s new service to Washington is a success t he airport will start a local marketing campaign informing the traveling public of the new service. Additionally, targeted marketing will take place in Washington DC to promote these new flights to New Haven. The nature of business travel between the two r egions is very balanced making it just as important to market to Washingtonians who travel to New Haven as it is to market to New Haven residents who travel to Washington.
The airport will also work with New Haven’s largest companies and universities, the drivers of most business travel in the region, to both inform them of the new flights and to solicit their travel budgets toward the flights. It has been estimated that it could take up to six months before HVN’s new Washington flights turn a profit. It is our strong belief that the efforts put forth by the airport to promote new flights to Washington and to engage the local business community that will use the flights will ensure that this “road to profitability” is as short as possible.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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## Section 6 : Difference f

rom Past Air Service Development Efforts

The difference between this and previous air service development efforts lies essentially on two points: 1) T he market type requested and 2) T he level of airline interest.

Washington is the Difference

While service to other regional hubs could still be beneficial, Washington is clearly the most in demand local market from the New Haven catchment area further assuring its path to self

- sufficiency and long

term success. On the contrary, HVN’s previous SC ASDP assisted air service to Cincinnati in 2006 was to a des tination New Haven residents had little interest in as it only served as connecting hub to access other destinations.

The large amount of demand to Washington further justifies the wisdom in expe nding local, state and federal monies to secure the initial start of service by an airline that would otherwise overlook New Haven due to competitive market forces, the high

- cost of opening an airport station, and the inherent high risk of launching a new market.

Furthermore, the stag e length of HVN

- Washington is much shorter than HVN’s past service to Cincinnati making the service less expensive to operate while ensuring that no payload restrictions will exist for the airline . Delta Air Lines ended region al jet service to Cincinnati in 2006 due to greater than expected payload restrictions from HVN’s short runway c oupled with the increase in fuel costs at the time

. If these two issues didn’t exist, we believe the HVN

– Cincinnati service would have remaine d profitable for Delta Air Lines and the carrier would have continued the service for many years. However, with the loss of Cincinnati service, Tweed N ew Haven Regional Airport continued even more diligently with its obstruction removal program and efforts to pave the runway safety areas. New Haven

- Washington is less than half the stage length of New Haven

- Cincinnati, which enables the airline operating the route to fil l th e plane with far less fuel and to avoid payload restrictions.

An Airline Is Ready O nce the Funds are Available

Airlines have expressed interest in serving New Haven

- Washington if sufficient grant funds were made available to subsidize the initial start of service thereby mitigating any losses the airline might incur

. Expressed letters of interest are attached as appendices to this application. With this level of airl ine interest and support, Tweed New Haven Regional Airport is confident that if afforded the opportunity to leverage federal financial support with a suitable SCASD P Grant, HV N will successfully secure the vital new air service it seeks.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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- 012 Ap pendix A

L e tter of Support: Sen. Richard Blumenthal , Sen. Christopher Murphy & Rep. Rosa DeLauroTweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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- 012 Ap pendix ATweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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L e tter of Support: New Ha ven Mayor John DeStefano Jr.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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L e tter of Support: East Ha ven Mayor Joseph Maturo Jr.Tweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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- 012 Ap pendix ATweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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L e tter of Support: Yale New Haven H e althTweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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L e tter of Support: The GridTweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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- 012 Ap pendix ATweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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L e tter of Support: Silver AirwaysTweed New Haven Airport Authority | SCASDP Grant Proposal DOT

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L e tter of Support: US Airways