# Montgomery

Regional Airport

Application Under t he


# Small Community Air Service Development Program

DOCKET DOT

- OST

- 2012

- 0069

Montgomery, Alabama Montgomery Airport Authority DUNS # 155618283 0000 EIN# 63

- 0638943 Congressional District #2A pplication of Montgomery Regional Airport

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# Proposal Contents

I. OVERVIEW OF THE M ONTGOMERY CHALLENGE

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

S TATEMENT OF P ROBLEM

................................ ................................ ....... 3 2012 : A S ERIOUS A IR S ERVICE D EFICIENCY

................................ ............ 3 T HE G RANT R EQUEST

................................ ................................ ............ 3 I MMEDIATE R ESULTS & E CONOMIC B ENEFITS

................................ .......... 4 A IRLINE T ARGETS

................................ ................................ .................. 4 P ROGRAM O VERVIEW

................................ ................................ ............ 5 N EED F OR G RANT S UPPORT

................................ ................................ .. 5 G RANT A DMINISTRATION

................................ ................................ ........ 6 P RIOR G RANT H ISTORY

................................ ................................ .......... 6 P AST A IR S ERVICE D EVELOPMENT A CTIVITIES

................................ ......... 6 P ROJECT S PONSOR

................................ ................................ ............... 7

II. MONTGOMERY MARKE T REVIEW

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

MGM A IR S ERVICE

– C APACITY D OWN 14.5% S INCE 2005

...................... 9 E NPLANEMENT H ISTORY

................................ ................................ ....... 10 T HE N UMBER O NE D EFICIENCY : A CCESS T O T HE O’H ARE G ATEWAY

....... 10 M ONTGOMERY F ARES

– S IGNIFICANTLY H IGHER

................................ ..... 11

III. OVERVIEW OF PRO POSAL

................................ ............................ 12

T HE N EW A IR S ERVICE D EMANDS A T M ONTGOMERY

.............................. 12 G ENERAL A PPLICATION OF G RANT F UNDING

................................ .......... 12 T HE G RANT W ILL H ELP C REATE J OBS

................................ .................... 13

III. PROJECTIONS OF CHICAGO/O’HARE SERVI CE

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

A IRLINE E XPENSE /R EVENUE P ERFORMANCE

................................ .......... 14 MGM

- ORD W ILL B E A SCASD S UCCESS

................................ .............. 15

IV. GRANT ADMINISTRA TION PLAN

................................ ................... 16

P ROGRAM F UND A LLOCATION

................................ ................................ 16 T HE R ISK

- A BATEMENT P ROGRAM

................................ .......................... 16 M A RKETING & A DVERTISING S UPPORT

................................ ................... 17 P OST

- G RANT S UPPORT

................................ ................................ ........ 18

V. SUMMARY OF APPLIC ATION

................................ .......................... 19A pplication of Montgomery Regional Airport

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## I. Overview of the Montgomery Challenge

Statement of Problem

In the past decade, Montgomery has emerged as one of the most vibrant industrial centers in America. One of the reasons is the extensive investment made in the region by companies from not only the United States, but from Asia and Europe as well. In contrast to other regions, Montgomery, Alabama remains a vibrant example of economic growth.

However, this growth is dependent on viable and affordable air service. Due to changes in the airline industry, Montgomery has suffered material declines in both air service and in capacity. These have led to higher fares as well. The result is that the expanding US, Korean and Asian business base is experiencing reduced access to Montgomery. This is exacerbated by the congestion and delays at the region’s main portal, to the US and the globe, which is Atlanta.

20 12 : A Serious Air Service Deficiency

These growing deficiencies will be addressed by the implementation of access to Chicago/O’Hare, where both United and American operate
domestic and i nternational hubbing operations. The additional capacity this new service will provide will both reverse the declines in air access to MGM, as well as bringing much

- needed additional fare discipline to the market. This grant application is intended to prov ide revenue incentives to attract service from one of these carrier systems.

As an example of the air service challenges facing MGM , we can point to the average fares paid (including taxes) at both Birmingham and at Montgomery for the full year 2010:

The Grant Request

This grant application is intended to gain access to the Chicago/O’Hare hub of American or United, which will : a) provide needed new competition, b) reverse the capacity decline, c) provide some additional fare discipline, and d) recapt ure traffic leaking to ATL and BHM.

Montgomery is applying for a grant in the amount of $400,000, with a
hard

- dollar local match of 20%, resulting in a total program funding of $480,000. In addition, the Airport will negotiate other in

- kind support for Access to the global Chicago/O’Hare hub will address a range of air service deficiencies as well as boost the MGM regional economy.A pplication of Montgomery Regional Airport

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- 0069 4 th e carrier, depending if it is American (an incumbent) or United (a new

entrant.)

The veracity of Montgomery’s need to address this deficiency is underscored by the increasing delays, misconnections, and other operational problems at Atlanta Jackson

- Hartsfield International Airport. In fact, Hyundai Motors

– a major e mployer in the region

- has advised repeatedly that these issues are becoming problematic in regard to that company’s future expansion plans in Alabama. This air service deficiency, therefore, is a serious economic issue.

Today, top

- tier jobs such as thos e generated by Hyundai are critical to the nation’s emergence from the current recession. The service that this grant will facilitate will help preserve and increase such employment in Alabama.

Therefore, Montgomery Regional Airport and the Montgomery Are a Chamber of Commerce hereby respectfully submit this application for a grant under the Small Community Air Service Development Program.

Immediate Results & Economic Benefits

The grant requested will successfully accomplish the following:

 Resolve A Clea r Air Service Deficiency . Montgomery and its important global industries need to replace the capacity lost over the past five years as the airline industry has contracted.

 Engender New Investment . Atlanta being the current major gateway for MGM is increasingly pro blematic to the economic growth of Alabama and to Montgomery. The problems of congestion, delays and misconnections at ATL are not going to be addressed in the near future. Opening access to O’Hare will give immediate relief from this t raffic bottleneck.

Airline Targets

As a practical matter, there are only two airline targets for this grant, American or United. Both are currently undergoing substantial strategic shifts that will not likely be comp letely addressed until late 2012 :

 Uni ted , currently, is the combination of the merger of United and Continental . The fleet plan for this carrier is not fully determined, particularly in the role of 50

- 66 seat jets, which are the airliners that are best suited for the MGM

- ORD route.

 American is in the process of spinning off its American Eagle subsidiary. It is clear that they are re

- structuring their regional feed system

. The Airport and community are requesting a grant in the amount of $400,000, with a 20%
hard

- dollar match, to recruit American or United to implement service to their global hub at ORD.A pplication of Montgomery Regional Airport

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- 0069 5 The grant will be used to recruit one o f these carriers. It is uncerta in at this time which will be ready to negotiate first, but it will be by the end of
2012 . This dovetails with th e natural time lines of the 2012 SCASD
program.

The Airport would ask the Department’s indulgence in this issue. Analyses indicate that either AA or UA will equally meet the community’s
needs

.

Program Overview

The proposed grant will fund a mechanism that has been used successfully in many prior Small Community Air Service Development Grants.

A structured agreement will determine exact cost and revenue projections for the service, with shortfalls

– if any

– determined after each three

month period. Specific requirements will be included regarding flight reliability, fare levels, and service quality.

A part of the $480,000 fund will be used to market and promote the new service in the MGM service area. This will be accomplished by laser

focused elect ronic media, including e

- mail, social media, and direct contact with key travel generators in the region.

Need For Grant Support

The Department is well aware of the current difficult situation in the airline industry. Carriers today seek to avoid risk, a nd that includes situations that involve initiation of new service, even in markets where the traffic demand is high and the potential for success great.

Today, in light of the enormous financial challenges facing the airline industry, some form of econo mic risk

- reduction must be in place to attract new service such as that which is proposed in this document. Preliminary discussions with the carriers have made clear that such would be necessary to attract this service.

Due to the low level of interest in risk

- taking on the part of the airline industry, the majority of the funds will be applied to a revenue risk offset program for the carrier.

Analysis by the Airport show a very strong demand for O’Hare service, and ver y strong flow traffic to/from both carrier’s route systems beyond ORD. However, the carriers are clear that without some form of revenue safety

- net, their interest in MGM

- ORD is very low.

The proposed program is for one year, and the majority of these fun ds will be applied to a revenue guarantee that will be drawn upon only if reasonable, pre

- determined traffic and revenue generation goals are not met. The community intends to have this program in effect for one year, With jet

- A at $3 a gallon, airlines are not prone to gamble in opening new markets to smalle r communities.

This grant will give the carrier a safety net in establishing
service to ORD.A pplication of Montgomery Regional Airport

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- 0069 6 and any DOT revenue

- guarantee funds no t used will be relinquished to the Department.

The community believes that this request fills both the intent and the spirit of Congress in implementing this program. The community has a pressing air service deficiency that is threatening to slow the stro ng economic growth in the Montgomery region.

Grant Administration

This application is submitted jointly by the Montgomery Regional Airport and a community coalition led by the Montgomery Chamber of Commerce. The community support for this application i s broad and encompasses the entire business base of the region.

The unique community enthusiasm for business development that will support this new service is showcased by the growing investment in the region by Hyundai. The community competed with cities across the nation for this huge auto facility. It was the enthusiasm and drive of the business community that convinced this Korean conglomerate to invest in Montgomery. This local pride will assure that the new Chicago service is a success, and that the Department’s grant dollars provide a solid air
service return on their investment.

Prior Grant History

The community was honored to have been awarded a Small Community Air Service Grant in 2005. The objective of that grant was to support implementation o f nonstop service to the Northwest Airlines hub at Detroit to better support the Alabama auto industry.

Unfortunately, a set of events precluded the ultimate use of the 2005 grant. At the bottom line, Northwest Airlines found itself in Chapter 11 bankrup tcy and therefore in a contraction mode. As a result, the grant was not utilized.

Past Air Service Development Activities

The airport and the community have worked very hard to retain existing service and recruit new carriers to the market. In the very t ough environment of the past five years, it has been a very difficult challenge.

Northwest Airlines service to Detroit

– which in 2004/2005 accessed a strong auto

- related industry

– was very close to being recruited, thanks to the grant that the Departmen t awarded the community. However, the difficulties that carrier encountered leading up to and after its Chapter 11 filing in 2005 shortstopped the Airport’s recruitment efforts.

In 2009, the Airport was successful in recruiting American Airlines (Eagle) flights to Dallas/Ft.Worth. This has helped fill the gap left whenA pplication of Montgomery Regional Airport

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- 0069 7 Continental discontinued service to its Hous ton Intercontinental hub in
2008

.

The A irport and the Chamber are co ntinually reviewing the needs and opportunities represented by the growth in the auto industry in the region. This application is one product of these studies. The access problems caused by the congestion at ATL will be greatly relieved with service to the global hub at O’Hare.

Project Sponsor

The official sponsor of this project is the Montgomery Airport Authority. The community partnership is a coalition of civic organizations led by the Montgomery Chamber of Commerce.

The community and the Airport ap preciate the time and efforts of the Department in reviewing this application, and look forward to a favorable decision. Please direct any correspondence regarding this matter to

Mr. Phil Perry Executive Director Montgomery Airport Authority 4445 Selma Hi ghway Montgomery, Alabama 36108
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## I I. Montgomery Market Review

The air service market area of Montgomery Regional Airp ort comprises all or parts of 16 counties, with a population base of approximately 575,000 and a city population alone of 205,764 according to the 2010 census. The city itself experienced a growth of 2.1% between 2000 and 2010.

The role of Montgomery

– beyond that of being the capital of Alabama

– is a commercial center. Well situated at the intersection of Interstate 65 and Interstate 85, the community has experienc ed population and economic growth in the past decade.

But this strong location for manufacturing and logistic s also allows relatively easy access to much larger Birmingham and Atlanta, facilitating loss of passenger traffic to those airports. This grant a pplication is intended to implement service that will begin to materially reverse this loss. The Hyundai factory has established Montgomery as a global manufacturing
center.

This grant will establish additional needed connectivity to MGM’s Asian city partners.A pplication of Montgomery Regional Airport

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- 0069 9 MGM Air Service

– Capacity Down 1 4. 5% Since 200 5

Montgomery Regional Airport is currently accessed from the rest of the air transportation system via three air line s ystems providing service to three connecting hubs; Delta to Atlanta , American to Dallas/Ft. Worth, and US Airways to Charlotte. But seat capacity has steadily declined

– down almost 15 percent since 2005. In that year, it had service to five airline hub gateways. Today, it is just three.

Despite growth in both population and economic activity, changes in the airline industry have resulted in MGM losing almost 15% of its seat capacity since 2005.

The grant will be key to reversing this
trend.A pplication of Montgomery Regional Airport

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- 0069 10 Enplanement History

In conjunction with declines in capacity, enplanements registered at Montgomery Regional Airport have not kept pace with the rapid economic growth and globalization of the industrial base.

Because of declining service levels, passenger traffic at MGM has yet to recover to the levels of 2004 . This is solely due to airline industry capacity reductions. The new service to Chicago/O’Hare will reverse this trend.

The Number One Deficiency: Access To The O’Hare Gateway

One of the most glaring deficiencies in MGM air service is lack of nonstop service to the global hub at Chicago/O’Hare.

Montgomery’s economy is now heavily auto

- centric, yet there is limited
seats and access to the industrial centers in the US Midwest. Furthermore, there is a huge challenge in that Montgomery is closely tied to key Asian industrial points, such as Seoul, Tokyo, Shanghai, and Taipei by virtue of the Hyundai plant. There is a pressin g need for more access to these points. Both of the hubbing carriers at ORD (American and United) can provide this access.

The additional capacity that this service would add will bring more fare discipline into the MGM market, as well as substantially re duce travel time to important automotive centers in Illinois, Michigan, Wisconsin , and Indiana. Business and leisure travel to/from points in the upper Midwest today entail a lot of extra flying for MGM

consumers.

Today, getting to Chicago requires flying almost 20%

more miles than a nonstop routing.A pplication of Montgomery Regional Airport

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- 0069 11 Montgomery Fares

– Significantly Higher

Fares at MGM average significantly higher than at either Birmingham or at Atlanta. Below are average one

- way fares pa id, including federal fees and taxes in Montgomery’s top 15 O&D markets for 2010.

Only in a few markets are fares comparable to BHM, and in all cases fares at ATL are much lower.

The addition of Chicago/O’Hare service, which this grant will make possible, will help address this cost imbalance that is resulting in st rong leakage to both BHM and ATL. MGM consumers need to pony up an average of almost 30% more to fly out of the local airport.

Opening service to ORD will bring additional discipline to airline pricing at
MGM.A pplication of Montgomery Regional Airport

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## I II . Overview of Proposal

The New Air Service Demands At Montgomery

Montgomery today is one of the leading auto

- manufacturing centers in the world. The Hyundai facility is manufacturing more than 1300 vehicles per day, and employs more than 2600 . Including indirect employment (first and second

- tier suppliers) the Hyundai investment has resulted in an estimated 6000 jobs.

Korean

- based Hyundai Heavy Industries , a global leader in the heavy industries sector, has built a m anufacturing plant in Montgomery. The facility, Hyundai Power Transformers USA, is located in Interstate Industrial Park. The facility was completed in early 2012 and employ s an average of 1000 pe ople . The plant produce s industrial transformers that weigh up to 500 tons and are used mostly by utility companies.

Both companies are global industries and support jobs across the nation. To support these jobs, adequate and affordable air ac cess is essential. However , airlines have cut capacity and fares have literally skyrocketed. The new capacity that Chicago/ORD service can provide will be a major step in addressing both of these challenges.

Today, the need for US and global access for Montgomery is more critical than ever. T he main gateway remains the Delta Air Lines hub at Atlanta Jackson

- Hartsfield I nternational Airport. An important part of the nation’s air transportation infrastructure, ATL remains congested and delay

- prone. Without question, access to another major global portal is necessary to assure that MGM has adequate air access and more reaso nable fare levels from the rest of the nation and the globe.

Furthermore, there is a substantial demand for nonstop service from Montgomery to the Chicagoland area, and the data support the
contention that such service will quickly become profitable on a fully

allocated flight sector basis.

General Application of Grant Funding

The grant requested in this application will be applied only to provide

assurances regarding the levels of revenue the target airline will attain, based on reasonable, pre

- negotiat ed passenger projections.

Fundamentally, this is not a subsidy

– if the revenue targets are met, no funds will be due the carrier. The program will simply provide a safety net to offset the airline’s legitimate initial risks in opening a new nonstop
marke t.

This approach has been used successfully at a number of other small airports with the assistance of SCASD program grants. It will also be successful at Montgomery. This proposal is for a risk

- abatement program, not an airline subsidy.

This approach has proven successful in many SCASD grant
awards across the
nation since 2002.A pplication of Montgomery Regional Airport

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- 0069 13 The Grant Will Help Create Jobs

Montgomery has seen enplanements fall during a perio d of unprecedented local economic growth. The reasons are clear: because of financial challenges in the airline industry, and not any factors in the MGM
economy, capacity has remained static. We can conclude the following from this situation.

 Service Red uctions : Capacity has been cut by almost 15% in the last five years, in spite of the local economy growing strongly. Montgomery is an underserved market

.

 Fare levels compared to Birmingham and Atlanta (the two major sources of leakage from MGM) are much higher. This grant will be a major factor in applying fare discipline in the market

The lack of nonstop service to Chicago itself is a cause of leakage that this gran t will address. Currently, the routing efficiency (the actual miles a consumer must fly, compared to nonstop flights) is only 81%. The need to connect through ATL, CLT or DFW is time

- consuming, expensive, and engenders additional leakage from MGM.

The Mon tgomery Airport Authority and the Montgomery Chamber of Commerce would respectfully submit that the Small Community Air Service Development Grant Program was designed to address this type of situation. It is further noted that the grant will result in mate rially

improved air service, with minimal risk to the scarce funds allocated by Congress to this program.A pplication of Montgomery Regional Airport

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## III. Projections of Chicago/O’Hare Service

Airline Expense/Revenue Performance

The route and market proformas accomplished by the Airport show that when fully developed, the MGM

- ORD market is clearly one that this grant can attract and make successful for both the community and for the airline. Below are cost projections based on the 50

- seat ERJ

- 145 aircraft operated by American

– American Eagle. The data for 50

- seat CRJ airliners operated by the United sy stem are nearly identical.

These data represent the market subsequent to the initial ramp period, which the grant is intended to address. The Airport would point out that the grant is intended only to reduce the risk level to encourage the carrier to enter the market. While these data reflect analyses of the American Airlines system distribution at O’Hare, the results from a review of the United system would not vary materially. Airlines are looking for markets where the increasing costs

o f “regional” jets
can be better supported.

The strong unmet market demand at MGM makes ORD service a solution to that problem.A pplication of Montgomery Regional Airport

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- ORD Will Be A SCASD Success

The data compiled by the Airport clearly show that the Chicago

– Montgomery market meet the criteria set by congress in developing the Small Community Air Service Development Grant Program. This award will accomplish the following:

 It will address an immediat e air service deficiency

 It will enhance economic development in the region

 It will incubate service that would help address a capacity shortage and have the effect of bringing more fare discipline into the market.

The Airport and the Community respectf ully ask the Department to review these compelling data, and give favorable consideration to a grant that will address a demonstrable air service deficiency at Montgomery.A pplication of Montgomery Regional Airport

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## IV. Grant Administration Plan

Program Fund Allocation

The program is intended primarily to provide a revenue guarantee to reduce the carrier’s initial risk in entering and building the Chicago route from Montgomery. In addition, there will be a local marketing effort that will engender local awareness and sup port for the new service.

The Risk

- Abatement Program

Montgomery Regional Airport and the community are in on

- going contact wit h many carriers regarding new service opportunities . These include American and United. Upon favorable notification of grant award, the Airport will enter into substantive negotiations with American Airlines or United Airlines to secure two daily nonstop f lights to Chicago/O’Hare.

The Airport will propose the following, with the final agreement subject to Department approval:

 Provision for two daily ( with reduced week

- end) frequencies, timed to connect with the carrier’s flight banks at ORD;

 A pre

- agreed per

- segment cost for the operation. This will include a fuel factor (escalator and deflator) and will be based on historical American Eagle (or alternatively, United Express) published costs for ERJ (or CRJ) aircraft. The cost will include a reasonable pr ofit hurdle to be agreed upon.

 It is understood that MGM

- ORD is not a market that is a long

- shot from potential profitability. The data definitely show that, with initial risk

- offset in the starting months, MGM

- ORD can be a strongly contributory route for either of the hubbing carriers (AA or UA) at Chicago. Therefore the period of the risk

- offset agreement will be for one year only, starting from the date of service initiation.

 Reliability is critical to the success of the service. Therefore, the agreement will include specific performance metrics. Schedule reliability: 98% controllable flight completion . On

- time arrivals within 15 minutes of published schedule: 95%

. In addition to hard dollars, the community and the Airport offer a range of non

- cash incentives to attract
airlines.A pplication of Montgomery Regional Airport

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- 0069 17  Pricing dynamics will be driven by the market and by competing service options to Chicago and points served by the target carrier beyond ORD. However, the carrier must agree to price the service
wit hin the relative confines of service at other, similar markets at ORD.

 The performance of the service, including reliability and passenger traffic, will be monitored by the Airport. The airline will be required to provide revenue reports, including local ORD O&D and beyond traffic revenues, every three months subsequent to service initiation.

 Risk

- abatement determination and settlement will be made at the end of each three

- month period.

The Airport will seek DOT approval prior to any agreement with the t arget carrier under this grant.

Marketing & Advertising Support

The Community intends to implement an aggressive targeted program of advertising and marketing to assure that the new service builds traffic quickly and with minimum draw on the revenue gu arantee. These will include:

 Pre

- Operational Media: A targeted program of newspaper and electronic media placement

– including targeted e

- mail and an aggressive social media program

- will begin 30 days prior to the announced date of start

- up service. 1

 Community Outreach. There are only 100 daily departing seats envisioned in this program. Therefore the community outreach will be highly targeted on the specific industries that have a need for Chicago, Upper Midwest, and Asia access. These efforts will
in clude direct e

- mail, presentations at Chamber and other civic events, and liaison with the travel managers of key corporations in the MGM region.

1 This is now fairly close to a normal consumer booking window. Media placements earlier than thi s will be diluted and ineffective. It has to be reliable, or no funds.

The proposed agreement will entail specific performance requirements on the target carrier.A pplication of Montgomery Regional Airport

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- 0069 18 Post

- Grant Support

Montgomery Regional Airport and the Montgomery Chamber of Commerce have a recognized p rogram to support and build local businesses. This includes the carriers serving the Airport.

At the end of the grant period of one year, the new Chicago service will continue to receive aggressive marketing support in the community, as do all carriers a t MGM. Therefore, the Department’s grant investment will be protected and enhanced into the future.A pplication of Montgomery Regional Airport

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## V. Summary of Application

The Montgomery Regional Airport believes that this application is consistent with the goals of the Small Community Air Service Development Grant Program.

 It meets the emerging needs of the globalized MGM region
economy

– Access to ORD via either American or United will not only open up new access to the Midwest, but will give MGM much

- needed new access to Asia. United’s nonstops to Tokyo have connectivity via its Haneda hub. American has connectivity over both Haneda and N arita via its one world Alliance relationship with Japan Air Lines. Both carriers have nonstops between Chicago and China.

 The ORD service will assist in recovering leakage to BHM and ATL. The important local MGM

- ORD traffic today involves a circuitous ro uting

– almost 20% more travel miles than nonstop flights. This literally drives consumers to use BHM and ATL.

 It will reduce the reliance on congested Atlanta Jackson

Hartsfield as the major gateway for Montgomery.

 It represents an opportunity for the t arget carriers. The Asian and other international traffic generated by MGM represent strong,
new net revenue streams for either of the target carriers.

 It will help to bring fare discipline to the MGM market. Today, consumers at MGM are paying on average almost 30 % more than consumers at Birmingham , resulting in significant leakage and lost economic impact to Montgomery.

Based on these data, the Airport would ask the department for favorable consideration to this application. The Airport and the community sincerely appreciate the Department’s time and efforts in reviewing this application.APPLICATION FOR Version 7/03
FEDERAL ASSISTANCE 2. DATE SUBMITTED Applicant Identifier 06/08/2012

1. TIPE OF SUBMISSION: 3. DATE RECEIVED BY STATE State Application Identifier Application Pre-application 

### IJ Construction 

### 61 Construction 4. DATE RECEIVED BY FEDERAL AGENCY Federal Identifier


### IJZJ Non-Construction IJNo ctlion
5. APPLICANT INFORMATION Legal Name: Organizational Unit:

Monlgomery Airport Authority Department:**O~anizalional** DUNS: Division: 1 6182830000

Address: Name and t&lephone number of person to be contacted on matters
Slreet: involving this applioation (give area code) 4445 Selma Highway Prefix: First Name: Phil City: Middle-Name MonlgOmery County: Montgomery Last Name Perry

:i.f.le·**Zl~Codo** Suffix:

ab.tma 108-4842

Coun\Pl: Email: Unite States of America executlve-director@montgomeryairporlorg

6. EMPLOYER IDENTIFICATION NUMBER (EIN): Phone Number (give area code) Fax Number (give area code)**f61@1-@]@]@]~@][J@]** 334-281·5040 334-81-5041

8. TIPE OF APPLICATION: 7. TYPE OF APPLICANT: (See back of form for Application Typos) IZI Now [] Continuation [J Revision N If Revision. enter appropriate**lette~** s) In box( es)**~!her** (specify) See back of form for descriplion of letters.) 

## 0 0 Airport Aulhority

Other (specify) 9. NAME OF FEDERAL AGENCY: Department of Tmnsportatlon

10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: 11. DESCRIPTIVE TITLE OF APPLICANT'S PROJECT: 

### @]@]-[]@]@] Montgomery Regional Airport

TITLE (Name of Program):**1~.** AREAS AFFECTED BY PROJECT (Cities. Counties, States, etc.):

Montgomery, Alabama

13. PROPOSED PROJECT 14. CONGRESSIONAL DISTRICTS OF:
SlartDate: J·Endlng Date: a. Applicant b. Project 06/11/2012 08124/2014

15. ESTIMATED FUNDING: 16.1S**APPLl~~~ 0N**  SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372' OCESS?

a. Federsl 400,000 a. Yes.ID THIS PREAPPLICATION/APPLICATION WAS MADE
AVAILABLE TO THE STATE EXECUTIVE ORDER 12372 b. Applicant PROCESS FOR REVIEW ON

c. Slate DATE:

d. Local 80.000**.~** b.No. Jlll PROGRAM IS NOT COVERED BY E. O. 12372

e. Other 

### IJ OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW f. Program Income 17 .IS THE APPLICANT DEliNQUENT ON ANY FEDERAL DEBT7

g. TOTAL 480,000. 

### 1J Yes If "Yes" attach an explanation. fl1l No

18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPLICATION/PREAPPLICATIDN ARE TRUE AND CORRECT. THE**P.~UMENT** HAS BEEN DUlY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ""-TTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED.

. rfzed tva Prefix 

### tp'[1 Name P"iddle Name

Last Name**~uffix** Perry**~-Tille** Executive Director**~-** Telephone Number (give area code) 334-281-5040**~.Sig ~~~ve** **~** ""' Date Si¥:ned '\,.\ \... <="':!ll:;;o... 06108/20 2
Previous Edition Usable**~** Siandard Fonn 424 (Rev.9-2003) Authorized for Local Revroduction Preoaibed bv OMB Circular A-102MA R THA ROBY

2ND DISTRICT

, ALABAMA

CANNON HOUSE OFFICE BUILDING

R OOM 414
WASHINGTON

, DC

PHONE : 12021 22!;.-2901

The Honorable Ray LaHood Secreta1y of Transportation

### ~ongress 

# of tbe Wniteb**~tates** f!)ouse of**~epre5entatibe5 ~asbington,** **11\~** 

### 20 5 1 5- ()102

June 4, 2012

U.S. Department ofTransportation

1200 New Jersey Ave., SE Washington

, DC 20590

RE: Montgomery Regional Airport
Small Community Air Service Development Grant

DOT -OST -2012-0069

Dear Honorabl e LaHood: COMMITIEES

AGRICULTURE

ARMED SERVICES

EDUCATION AND THE WORKFORCE

I have been contacted by r ep re se ntative s of the Montgomery Regional Airport located in Montgomery. Alabama, in reference to the S mall Commun it y Air Service Development Grant Pro g ram administered throu g h your age n cy

. As you will note from th e reference above, the airport ha s s ubmitted an application for this g rant.

Fundin g through this pro g ram would allow the Montgomery Regional Airport to improve air service
to th e region as it ha s been hi stor ic ally under se rved in air tran s portation s inc e 2004. These improvement s would include: meetin g the need s of the continued g lobalizin g of th e lo ca l economy, includ e th e addition of

a ir se rvi ce to C hicago

, reduce reliance on the already co ngested Atlanta-Hartsfield Airport as th e major gateway into Montgomery, and aid in bringing fare discipline to the Montgomery market where local

consumers a r e s pending 30% more per ticket than consumers in Birmingham.

Please know that I am glad to support the referenced application. Please note my intere s t and grant all
due and appropriate consideration. You may r e pl y to my district office in Dothan at the following address or fa x number.

U.S. Representative Martha Roby

217 Graceland Drive, Suite 5
Dothan. AL 36305
334-671-1480 (fax)

If yo u ne ed to reach a member of m y s taff: please contact Lori Ward at (334) 794-9680 or v iae-mail

at Iori. \\atd a mail.housc.g.o\

. Thank yo u for your attent ion to this matter.

MDR/lw Sincerely.

# {~

Martha Roby
Member of Congress

PRINTED ON RECYCLED PAPER

# : Jll :



# - City of 

## Montgomery, Alabama

Honorable Ray LaHood

U.S. Department of Transportation

1200 New Jers ey Ave., SE Washington, D.C. 20590

D ear Secretary LaHood: OFFICE OF THE MAYOR Todd Strange, Mqyor



### June 8, 2012 Post Offi ee Bo" nn Me>ntgome., · , Alabama

36101

- IIIJ PH 334-

- 6'25.'2000

FX 334.625.26oo



### The Montgomery Regional Airport, Montgomery, Alabama, is applying for a Small Community Air

Service D eve lopment (SCASD) Grant, Docket DOT-OST-2012-0069, to improve air service. The amoun t

of the grant is $400,000. The Airport Authority will match the required 20%, or $80,000

.

This region has been historically underserved in air transportation since 2004. Approving this modest

grant would:

• Meet the needs of the continued globalizing of the local economy (Hyundai Motor
Manufacturing of Alabama and the new Hyundai Heavy Indu stries manufacturing plants are

two prime examples);

• Provid e air se rvic e from Montgomery to Chicago which will help reduce the 47°;{) 

### passenger leakage rate to Birmingham, AL, and Atlanta, GA;

• Reduce reliance on the congested Atlanta-Hartsfield Airpor t as the major gateway into
Montgomery; and

• Help bring fare discipline to the Montgomery market (local consumers are spending 30% more

per ticket than consumers at Birm.ingham).

I strongly believe that approving this grant will add jobs to our local economy and dramatically
improve air transportation for Montgomery and the Ri ver Region. Thank you for considering thi s
grant application.

Sincerely, /

. 

# d4t"L;

Todd Strange Mayor