Proposal Under the Small Community

Air Service Development Program

Docket: DOT-OST-2014-0113

Sponsoring Entity: Huntsville International Airport

Dun & Bradstreet Number: 063680789

2-digit Congressional District Code: 05

July 2014
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014
Table of Contents

Executive Summary __________________________________ 1

Air Service Overview__________________________________ 2

Air Service Needs and Deficiencies_________________________________ 2

Passenger Leakage______________________________________________ 2

Top O/D Markets Not Served ______________________________________ 4

HSV Tops Highest Fares in the Nation ______________________________ 5

Historical Service _______________________________________________ 6

Efforts to Improve Air Service and Recapture Leakage Market __________ 7

Market Research _______________________________________________________ 7

Air Service Budget _____________________________________________________ 7

Promotional Campaigns and Programs (2010-2013)__________________________ 7

Strategic Plan _______________________________________ 8

Primary Goals:__________________________________________________ 8

Objectives: _____________________________________________________ 8

Target Carrier(s) ________________________________________________ 9

Target Markets Analysis __________________________________________ 9

Current Grant Application is Materially Different from 2010 Grant Award _ 10

Plan Implementation and Funding ______________________ 11

Public/Private Partnership _______________________________________ 11

Funding Overview ______________________________________________ 11

Community and Airport Participation ______________________________ 13

Airport Marketing Program _____________________________________________ 13

Marketing Budget and Schedule _________________________________________ 14

Funding Assurances ____________________________________________ 15

Legal Sponsoring Entity _________________________________________ 15

Conclusion____________________________________________________ 15

Previous Grants ____________________________________ 16

Community Overview ________________________________ 17

Appendix A: Letters of Support _________________________ 21
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

U.S. Senator Richard Shelby _____________________________________ 22

Allegiant Air ___________________________________________________ 23

City of Huntsville, Mayor’s Office__________________________________ 24

Madison County Commission ____________________________________ 25

Chamber of Commerce of Huntsville/Madison County ________________ 26

Huntsville/Madison County Convention & Visitors Bureau_____________ 27

City of Athens, Mayor’s Office ____________________________________ 28

Limestone County Commission___________________________________ 29

Greater Limestone County Chamber of Commerce ___________________ 30

Limestone County Economic Development Association_______________ 31

City of Decatur, Mayor’s Office ___________________________________ 32

Decatur/Morgan County Chamber of Commerce _____________________ 33

Decatur-Morgan County Convention and Visitors Bureau _____________ 34

City of Madison, Mayor’s Office ___________________________________ 35

North Alabama Mountain Lakes Tourist Association__________________ 36
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

1

Executive Summary

Huntsville International Airport (HSV) serves an 18-county region, which encompasses 12 counties in North 

Alabama and six counties in South Central Tennessee. Passenger service is provided by three commercial 

airlines and serves almost 1.2 million customers annually. HSV sits almost equal distant to Nashville and 

Birmingham airports – both of which are served by low cost carriers. High fares at HSV continue to drive 

significant passenger volumes to neighboring Birmingham, AL (BHM) and Nashville, TN (BNA); HSV has 

maintained a position in the top eight of the highest fare airports in the country as stated by the Bureau of 

Transportation Statistics Domestic Air Fare report for the past six years. In 2014, HSV conducted a Leakage 

Study, showing HSV loses about 39% of its market. The primary markets that are recapturing HSV passengers 

are Birmingham, AL, and Nashville, TN, with some leakage to Atlanta, GA, and Chattanooga, TN. 

After AirTran launched service, with assistance from a SCASDP 2010 grant, HSV’s leakage to other airports 

was recaptured and fares declined. In fact, HSV dropped as low as eighth on the BTS list of domestic air fares.

HSV was one of the initial 16 small communities that lost AirTran service due to the merger with Southwest, and 

coupled with the “capacity discipline” by all the carriers we began to see an increase in market leakage and 

fares again.

To achieve considerable and long-term air service enhancement, HSV needs a sustainable air service program 

that is mutually beneficial for the community and the carriers. The Airport adopted an incentive program to offer 

airline incentives up to $2 million. This incentive can be used by multiple carriers, to offset current or future 

airport costs for a two-year promotional period, with the goal of promoting new passenger service which will 

reduce the number of passengers driving to other airports. The objective of the program is for the airlines to 

provide an innovative approach to reduce our leakage. The airline(s) must offer a program which can be readily 

advertised and substantially reduce the number of passengers driving to alternate airports. The grant will 

supplement the Airport’s established incentive program by offsetting the start-up/station costs and marketing 

costs. In addition, city leaders are committed to this grant, pledging more than $500,000 in cash from the 

community as a match to the proposed grant.

Key attributes of program:

• Investing in ground services to lower carrier start-up and ongoing operating costs

• Add new air service resulting in:

o Reduced leakage

o Increased competition

o Increased enplanements

o Reduced fares

• Long-term success will be achieved through:

o Relieving initial start-up/station costs and marketing costs for new program

o Leveraging airport’s experience in timely and successful implementation of 2004 and 

2010 SCASDP grants

o Strong marketing plan and incentives to support new program

o Community support of $500,000
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

2

Air Service Overview

Air Service Needs and Deficiencies

The air service needs and deficiencies come from three main areas:

1. Significant leakage

2. Unserved markets 

3. Highest fares in the nation

Passenger Leakage

HSV passengers are primarily driving to BNA and BHM; however we are losing passengers to Atlanta and 

Chattanooga as well because they are able to obtain more competitive fares and non-stop destinations (see

Exhibit 1). Very few communities share the unique geographical location that HSV has with low fare service 

from both Southwest Airlines and Frontier Airlines in close proximity of its airport. 

Exhibit 1: 2014 Airport Market Share of Huntsville Passenger Leakage

To measure drive traffic, a monthly analysis is conducted of cars registered in HSV’s 18-county service region

parked in the BHM and BNA airport parking lots. A special survey is also conducted on holidays such as 

Thanksgiving and Christmas to specifically gauge leisure travel. With the presence of AirTran and non-stop 

service to BWI and MCO, our drive traffic declined. However, with the loss of AirTran and the non-stop 

service the drive traffic increased. The drive traffic trend usually corresponds with the passenger traffic at 

HSV.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

3

HSV has non-stop service to nine airports in eight cities (see Exhibit 2).

Exhibit 2: Current Air Service Map – July 2014
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

4

Top O/D Markets Not Served

Year-ending first quarter 2014 shows that 50% of HSV’s top 10 destinations are not currently served with nonstop service (see Exhibits 3 and 4). 

Exhibit 3: Top 10 O&D Markets Ranked by Passengers, YE1Q14

Rank Destination Annual 

Passengers

Currently Has 

Non-Stop Service

1 Washington, DC (National) 68,065 Yes

2 Los Angeles, CA 33,545 No

3 Dallas, TX (Dallas/Ft Worth) 32,275 Yes

4 Houston, TX (George Bush Intc.) 32,250 Yes

5 Orlando, FL 28,475 No

6 Charlotte, NC (Douglas) 26,430 Yes

7 Baltimore, MD 25,385 No

8 Chicago, IL (O’Hare) 21,540 Yes

9 Boston, MA 21,174 No

10 New York, NY (La Guardia) 20,565 No

Source: DOT DB1B data via Diio Mi Internet-Based Aviation Data Tool as of YE 1Q14

Exhibit 4: Current Air Service Details, Scheduled for July 2014

Airline Destination Equipment Type Flights/

Day

Seats/

Day

American Dallas/Fort Worth, TX A320 - Narrow Airbus 3 355

American Chicago-O'Hare, IL ERJ - RJ Embraer 2 97

Delta Atlanta, GA A320 - Narrow Airbus 1 122

Delta Atlanta, GA B717 - Narrow Boeing 3 312

Delta Atlanta, GA MD-80 - Narrow McDonnell Douglas 2 346

Delta Detroit, MI Canadair CRJ - RJ Bombardier 2 82

United Denver, CO ERJ - RJ Embraer 1 48

United Washington-Dulles, VA Canadair CRJ - RJ Bombardier 1 42

United Houston-Intercontinental, TX ERJ - RJ Embraer 3 140

United Chicago-O'Hare, IL ERJ - RJ Embraer 1 50

US Air Charlotte-Douglas, NC Canadair CRJ - RJ Bombardier 2 123

US Air Charlotte-Douglas, NC Canadair CRJ - RJ Bombardier 3 145

US Air Washington-National, DC Canadair CRJ - RJ Bombardier 2 79

US Air Washington-National, DC E-170 (E-Jet - Narrow Embraer) 2 118

Source: Diio Mi Internet-Based Aviation Data as of 07/29/14
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

5

HSV Tops Highest Fares in the Nation

The latest Bureau of Transportation Statistics report shows HSV to be the highest fare airport in the country 

for all four quarters of 2013 (see Exhibit 5) while hovering in the top tier for the past five years. In fact, HSV’s 

average fare of $528 is 38.4% higher than the national average of $381 while HSV is 25% higher than BHM 

and 45% higher than BNA (see Exhibit 6).

Exhibit 5: Highest U.S. Domestic Average Itinerary Fares 4th Quarter 2013

Note: Number on bar chart represents HSV ranking per quarter by BTS

Exhibit 6: Highest U.S. Domestic Average Itinerary Fares 4th Quarter 2013

Source: Bureau of Transportation Statistics report 

Methodology: Top 100 Airports* Based on 2013 U.S. Originating Domestic Passengers. Fares based on domestic itinerary fares, roundtrip or one-way for which no return is purchased. Fares are based on the total ticket value which consists of the price charged by the 

airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Fares include only the price paid at the time 

of the ticket purchase and do not include other fees paid at the airport or onboard the aircraft. Averages do not include frequent-flyer or 

“zero fares” or a few abnormally high reported fares. Not including Alaska, Hawaii or Puerto Rico.

1

4

2

1 1 1

5

4

1 1 1 1

2

3

1 1 1

6

8

1

2009 2010 2011 2012 2013

1Q 2Q 3Q 4Q

+38.4%

($146)
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

6

586,321 

624,037 

632,210 

595,272 

520,890 

2009

2010

2011

2012

2013

Passengers at HSV experience some of the highest fares with regards to walk-up fares (last minute fares). 

See sample of walk-up fares below (see Exhibit 7).

Exhibit 7: Sample Current Comparison of HSV Walk-up Fares 

HSV BNA BHM HSV Higher/Lower 

BNA/BHM (Average)

Washington-National, DC $995 $450 $481 $466 53%

Newark, NJ $848 $512 $813 $663 22%

Dallas/Ft Worth, TX $688 $438 $413 $426 38%

Baltimore, MD $724 $430 $451 $441 39%

Orlando, FL $554 $455 $418 $437 21%

Source: Sabre fare quotes pulled July 30, 2014 for travel outbound on August 1, 2014 and return August 4, 2014

Historical Service

HSV has experienced a change in traffic as the market has responded to changes in air service (see Exhibit

8). Low fare service and non-stop destinations have positively impacted passenger traffic. 

Exhibit 8: Enplaned Passengers – Past Five Years

AirTran – May 2010 – August 2012

Source: Huntsville International Airport
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Efforts to Improve Air Service and Recapture Leakage Market

Market Research

This community has been extremely active since 1995 in the pursuit of new air service and competitive 

airfares. Below is a list of such efforts.

Community Efforts

• Conduct Focus Groups, 1994 – Current

• Conduct Annual Passenger Survey, 1994 – Current

• Conduct Annual Drive Market Survey, 1998 – Current

• Conduct Monthly Car Tag Analysis, 1995 – Current

• Conduct Annual Drive Market Analysis, 1998 – Current

• Conduct Weekly Competitive Airport Fare Analysis, 1994 – Current

• Established Regional Partnership Council, 1991 – Current

• Established Business Travel Council, 1998 – Current

• Make Presentations to Existing Airlines, 1996 – Current

• Provide Start-up Incentives to Airlines for New Non-stop Service, 1996 – Current

• Created Incentive Program for Sister-city Fare Matching, 2000 – Current

• Applied for DOT Air Service Grants, 2003, 2004, 2006, 2010, 2013

• Recipient of DOT Grant and Created Huntsville Hot Ticket Program, 2004

• Conducted Campaign for US Airways Fare Reduction Program for 25 Cities from HSV, 2006

• Created Travel Assistant Program – Huntsville Hot Ticket Line, 2008 - Current

• Recipient of DOT Grant and Attracted AirTran, 2010

• Adopted new incentive program, 2012 - Current

• Marketing Program with American Airlines, 2014

Air Service Budget

Annually, the Airport allocates approximately $750,000 to support air service efforts which includes airport 

staff, advertising, airline meetings, and marketing programs. Through the years the Airport has invested 

nearly $6.5 million in waived airport fees, advertising campaigns and other concessions to incentivize new air 

service and competitive fares. This grant request will not replace these funds but will be used to supplement 

our ongoing efforts.

Promotional Campaigns and Programs (2010-2013)

In addition to the items listed above, the Airport has created unique promotions and programs to serve both 

business and leisure travelers in our service region. 

• “Huntsville Hot Ticket and Travel Assistant Program” - A free information and ticket booking service 

provided through Huntsville International Airport. If passengers need help from a real person with 

questions about booking a ticket, group travel, or the latest airline rules and regulations, our Hot Line 

(256-258-1944) connects them directly to a travel specialist. This complementary service receives 

over 2,200 calls a month from passengers seeking assistance. 

• 2010 DOT Grant for AirTran service to MCO and BWI – The 2010 grant was used to attract service to 

MCO and BWI by AirTran. The service was launched and impacted our community with an average 

50% reduction in fares to those markets, and BWI and MCO grew to our number one and two top 

destinations, respectively.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

8

Strategic Plan

The objective of the grant request is to increase air service through a combination of traditional start-up 

incentives along with investments such as ground handling which could provide ongoing carrier cost 

savings. The focus investments to reduce costs comes from direct input from carriers looking to start 

service at Huntsville based on their successful experiences at other airports. Start-up funding includes

start-up/station costs and marketing efforts for the airlines to provide programs that will reduce the 

number of passengers driving to alternate airports. The airline can be any carrier currently serving the 

market or a new entrant such as Allegiant Air, which has provided a letter of support with this application.

The airline must offer a program which can be readily advertised and substantially reduce the number of 

passengers driving to alternate airports. The airline must implement a program that is mutually beneficial 

for the community at large for either leisure or business travelers. This grant can be used to fund new 

programs by multiple airlines in our market. The $500,000 grant supplemented with the $500,000 grant 

from the City of Huntsville will be used to offset the start-up/station costs which could include but not 

limited to ground handling, salaries for new employees and marketing costs for any carrier that 

implements a program that reduces our passenger leakage.

Primary Goals:

The community has four chief goals for seeking a small community air service development grant and can 

be accomplished by the following plan.

1. Create permanent cost reductions for both start-up and ongoing airline operations.

2. Recapture leakage – prevent leakage from increasing and threatening existing service.

3. Increase enplanements in order to attract new service and maintain existing service.

4. Increase awareness of competitive fares at HSV as compared to competing airports.

Objectives:

1. Analyze and make investments that could be made by HSV which will reduce costs for carriers at 

start-up and on an ongoing basis. Examples of those which have proven successful at other 

airports include purchasing ground handling equipment. 

2. Fund incentives (start-up/station costs - including but not limited to ground handling, employee 

salaries, marketing/promotional costs) for the airlines to implement programs that will create fare 

parity with competing airports. The programs are targeted at retaining HSV passengers in our 

service region, not attracting passengers from other areas.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

9

3. Fund local marketing and promotional programs to create awareness of airline fare programs, 

competitive air fares, and new air service. Our airport branding has suffered from the negative 

publicity with the BTS rankings thus creating a perception that low fares do not exist in our 

market. This marketing program will be crucial in helping retain our passengers.

Target Carrier(s) 

HSV continues to have conversations with potential carriers. A specific opportunity has come up with one 

or more carriers with the focus being on lowering carrier operating expenses in order to facilitate 

profitable growth into new routes. The new passengers would then lead to low CPE for all carriers at the 

airport. Any new service would be supported with launch marketing funds. Airline support for this 

proposal is demonstrated through letters of support.

Target Markets Analysis

HSV’s primary target is new service to markets in Florida. Orlando has twice had successful service to 

HSV first from Delta and then later AirTran. Multiple other markets show potential to be viable in the longterm. Should HSV not secure service to Florida it will, as a secondary option, look to use the grant for 

other service to the East Coast.

HSV saw strong stimulation from new AirTran service, which could be expected in other new markets 

given the current fare differentials between HSV and leakage to other airports. Note that AirTran 

operated Baltimore with two flights per day and Orlando just one, capping its potential stimulation.

Exhibit 9: Stimulation from new AirTran Service, Passengers per day Each Way

2009 2011 Stimulation

Baltimore 43 163 281%

$152 $102 

Orlando - MCO 50 100 102%

$224 $129 

Source: Diio Mi Internet-Based Aviation Data as of 07/29/14, U.S. DOT DB1B O&D Data
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Exhibit 10: Fares in Potential Target Markets, HSV versus Leakage to Other Airports, YE 1Q14

BOS BWI FLL MCO TPA

ATL $186 $133 $116 $134 $148

BHM $244 $155 $195 $127 $122

BNA $174 $156 $171 $152 $157

Weighted 

Average

$186 $141 $127 $138 $147

HSV $247 $227 $191 $206 $243

HSV H/(L) $61 $86 $64 $68 $96

Average 33% 61% 50% 50% 65%

Source: Diio Mi Internet-Based Aviation Data as of 07/29/14, U.S. DOT DB1B O&D Data

Exhibit 11: Daily Passengers Each Way in Potential Target Markets to/from HSV, YE 1Q14

BOS BWI FLL MCO TPA

HSV 29.0 34.8 12.2 39.0 14.5

Source: Diio Mi Internet-Based Aviation Data as of 07/29/14, U.S. DOT DB1B O&D Data

Current Grant Application is Materially Different from 2010 Grant 

Award

This application is significantly different enough to constitute a new project under 49 U.S.C. § 41743. 

This application incorporates different goals and a dramatically different structure for securing service and 

positioning it for ongoing success. The 2010 Grant was for a revenue guarantee with marketing support. 

This grant looks to fundamentally lower operating costs for ongoing savings, providing a cost base that 

will be viable for the long-term.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

11

Plan Implementation and Funding

Public/Private Partnership

The City of Huntsville and the Huntsville Industrial Development Board have formed a partnership to 

provide financial support for air service development. They supported the 2010 grant and are partners 

with this application as well.

In addition, we have two active airport community support groups. These groups include the Regional 

Partnership Council and the Huntsville International Airport Business Travel Council. The Regional 

Partnership Council, formed in 1991, includes elected officials, chambers of commerce, tourism agencies 

and corporations from the 18-county service region of the airport. The Regional Partnership Council’s 

mission is to create an environment of ownership for the HSV facilities, to promote strong working 

relationships and to encourage information and resource sharing among the Tennessee Valley 

communities in the HSV service region. The Huntsville International Airport Business Travel Council 

assists the airport in air service development efforts and currently has 80 active members throughout the 

region.

Funding Overview

As detailed below, to secure service from our carriers the community is committing $500,000 in cash 

towards the start-up/station costs and marketing costs, while the airport will pledge up to $2,000,000 in 

incentives. On June 10, 2014 the HSV board of directors adopted new incentives for the air service 

development program (section 10) in the Statement of Policy, Regarding Airlines Use and Occupancy of 

Airport Facilities - FY2014.

SECTION 10

AIR SERVICE DEVELOPMENT PROGRAM

The Executive Director may establish air service development programs providing incentives to 

advance the Authority’s goal of promoting new passenger service to a greater number of destinations, 

service which will reduce the number of passengers driving to other airports from the Airport’s service 

area and new cargo service which will promote international air commerce. Any such incentives shall be 

consistent with federal law. 

A. Passenger Service Incentive 

The Executive Director is authorized to expend up to a maximum amount of TWO MILLION AND 

00/100 DOLLARS ($2,000,000.00) during Fiscal Year 2015 to provide incentives to Air Carrier Airlines 

which increase enplanements at the Airport by reducing the number of passengers driving from the 

Airport’s service area to other airports. To qualify for such an incentive an Airline must offer new service 

that can be readily advertised and can reasonably be expected to substantially reduce the number of 

passengers driving from the Airport’s service area to other airports. Any Air Carrier Airline seeking such 

an incentive must provide a detailed written proposal which results in a written agreement entered into by 

the Airline and the Authority.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Thus HSV is requesting a $500,000 grant to supplement local start-up/station costs and marketing costs.

Community Airport DOT

Total

Fund Uses Cash In-Kind Cash In-Kind Grant

Marketing $250,000 $745,652 $250,000 $250,000

Incentives

Start-Up/Station

Costs $500,000 $250,000 $1,500,000

Total $500,000 $250,000 $745,652 $500,000 $1,995,652
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Community and Airport Participation

Community Participation

The community participation will include $500,000 towards the program(s) from HSV.

Airport Marketing Program

HSV will implement a comprehensive marketing campaign surrounding new programs at the airport, 

including:

• Traditional Media Coverage

o Host roll-out media event

o Disseminate national news wire coverage for launch of service

o Visit regional talk shows and editorial boards to discuss service

o Keep new service continuously in the news throughout 18-county service region (print, 

TV, radio, online, billboard) 

• Social Media Exposure

o Mention weekly the new service across HSV social media channels

o Build exclusive social media campaign surrounding new service

o Host social media contests for airline voucher giveaways

o Cross promote service with corporate and community social media streams 

o Educate local and travel bloggers to generate articles on new service

o Advertise with paid banner ads on key blogger websites

o Feature new service on HSV blog

• Direct Marketing

o Sponsor $50,000 in airline voucher giveaways through Huntsville Hot Ticket 32,000 

membership

o Advertise bi-monthly on Huntsville Hot Ticket eblast and website

o Advertise on baggage claim jumbotron 

• Community Outreach

o Develop and distribute marketing materials to Chambers of Commerce, corporations, 

tourism agencies and travel agents in 18-county service region

o Distribute giveaways promoting the new service at tourism information booths

o Feature service at all speaking engagements and tours (approximately two per month)

o Attend and promote service at large-scale community events

o Engage community and business leaders to be ambassadors for the new service

o Solicit feedback from passengers on new service to determine services’ effectiveness
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Marketing Budget and Schedule

Exhibit 12: Marketing Plan
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Funding Assurances

HSV will be the coordinator between the public/private partners for the DOT grant. As well, HSV will take 

responsibility for the grant funds. 

Legal Sponsoring Entity

Huntsville-Madison County Airport Authority

(Huntsville International Airport – HSV)

1000 Glenn Hearn Blvd., Box 20008

Huntsville, AL 35824

Contact: Richard Tucker, Executive Director, 256-258-1955

Conclusion

Per the DOT order soliciting Small Community Air Service Development Program proposals, Huntsville 

International Airport should be given priority consideration for this grant by having met the criteria as set 

forth in the order soliciting proposals as follows:

1. BTS reports HSV has the highest average air fares in the country as of YE 4Q13 – 38% 

higher than the national average; and 

2. The community will provide 25% of the cost of the program; and

3. The City of Huntsville and the Huntsville Industrial Development Board is a public-private 

partnership formed to initiate programs with the carriers to improve air fares and substantially 

reduce the number of passengers driving from the airport service area to other airports.

4. This grant will provide material benefits to a broad segment of the traveling public including 

businesses, educational institutions, and other enterprises.

5. This grant will be used within a two-year period upon receipt of the award and carrier 

agreement to provide program/service as described above. The project timeline will include 

one year for finalizing agreements with the carriers. The next phase will include the 

announcement of the program/service, start of program/service and then the marketing 

campaign. It is anticipated that the payout, to the carrier(s) will happen on a monthly basis.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Previous Grants

The current DOT grant application represents a new project and is not concurrent with the 2004 or 2010 

grants. The new grant is justified based on the service deficiencies out of HSV and the grant would go 

towards off setting start-up risks and station costs for new or incumbent carriers.

2004

The 2004 grant was for funding to build a “fare alert” email marketing system – Huntsville Hot Ticket. We 

have been able to highlight “hot fares” for top destinations and provide information on airline low fare 

weekend getaways. The development and implementation of the Huntsville Hot Ticket system and site 

went very well; and the program developed in a timely manner (3Q 2005) and within budget. As well, we 

supplemented the program four years later with a Huntsville Hot Ticket Line (256-258-1944) to assist 

passengers – at no cost to them – in finding hot fares and deals in and out of Huntsville. The 

infrastructure created for Huntsville Hot Ticket is still utilized today for direct marketing to nearly 32,000 

people. 

2010

The 2010 grant was funding for a revenue guarantee for low cost non-stop service to Orlando and 

Baltimore. AirTran announced service and once the service was added our fares to MCO and BWI 

decreased on average 50%, as well these two markets rose to the number one and number two 

destinations out of HSV. AirTran’s service was so successful our BWI passenger market grew 134% and 

MCO grew 31%. During AirTran’s presence HSV moved as low as number eight, on the air fare list, as 

ranked by the BTS. When Southwest merged with AirTran, HSV was one of 16 small communities that 

lost their AirTran service, thus bringing our market full circle with the loss of non-stop service and the 

climb back to the highest air fares in the U.S.
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Community Overview

The Huntsville Metropolitan Area continues to gain recognition as a “community 

hot bed” to live, work and play. Below is a partial list of recognitions:

Huntsville/Madison County, Alabama, is geographically near the center of the southeastern United States with 

more than 430,000 people in the metro area. Madison County and its surrounding counties form a thriving 

regional market with a population of more than one million people. This metro area has strong growth in 

population, employment, annual pay and labor force. The Huntsville community serves as the primary economic 

engine for the northern Alabama and southern Tennessee region. Since the early 1950s, Huntsville has been 

one of the nation’s principal centers for space and defense technology. Home to the work of Dr. Wernher von 

Braun and America’s rocket development programs, the Huntsville community and Redstone Arsenal became 

the location of choice for the country’s best and brightest aerospace engineers and scientists. Rocket City USA, 

as the region was known, gave original meaning to the term “rocket science”. The strong economic base of this 

community requires connectivity to the world at competitive fares.

Huntsville is one of the

Top 30 fastest growing major 

metro’s in the country

U.S. Census, March 2014

Huntsville is among the top 

10 Most Promising U.S. 

Tech Hubs to watch in 2014

Techie.com, January 2014

Huntsville receives

Standard & Poor’s highest 

possible “AAA” bond rating

Standard & Poor's, October 2013

Huntsville named one of 

the Best Places to Live

Livability.com, October 2013

Huntsville/Madison County is 

No. 4 on the list of America's 

high tech hot spots

Progressive Policy Institute, October 2013

Huntsville ranked in 

NerdWallet's top 10 U.S. 

cities on the rise list

NerdWallet, August 2013

Madison County ranked

No. 7 in the country of a great 

place to live and find a job

CNN Money.com, August 2013

Huntsville named among 

top 25 cities for high-tech 

startups

Entrepreneur, August 2013

Huntsville 4th for

Growth Potential

Business Facilities, August 2013

Huntsville is a best 

destination for

green travelers

TravelNerd (NerdWallet), July 2013
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

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Appendix A: Letters of Support

1. U.S. Senator Richard Shelby

2. Allegiant Air

3. City of Huntsville, Mayor’s Office

4. Madison County Commission

5. Chamber of Commerce of Huntsville/Madison County

6. Huntsville/Madison County Convention & Visitors Bureau

7. City of Athens, Mayor’s Office

8. Limestone County Commission

9. Greater Limestone County Chamber of Commerce

10. Limestone County Economic Development Association

11. City of Decatur, Mayor’s Office

12. Decatur/Morgan County Chamber of Commerce

13. Decatur-Morgan County Convention and Visitors Bureau

14. City of Madison, Mayor’s Office

15. North Alabama Mountain Lakes Tourist Association
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

22

U.S. Senator Richard Shelby
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

23

Allegiant Air
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

24

City of Huntsville, Mayor’s Office 
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

25

Madison County Commission
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

26

Chamber of Commerce of Huntsville/Madison County
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

27

Huntsville/Madison County Convention & Visitors Bureau
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

28

City of Athens, Mayor’s Office
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

29

Limestone County Commission
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

30

Greater Limestone County Chamber of Commerce
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

31

Limestone County Economic Development Association
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

32

City of Decatur, Mayor’s Office
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

33

Decatur/Morgan County Chamber of Commerce
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

34

Decatur-Morgan County Convention and Visitors Bureau
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

35

City of Madison, Mayor’s Office
Huntsville International Airport

Small Community Air Service Development Grant Application – July 2014

36

North Alabama Mountain Lakes Tourist Association