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Westmoreland County Airport Authority 

148 Aviation Lane, Suite 103 • Latrobe, PA 15650 

(P) 724.539.8100 (F) 724.539.2441 

To; Thursday, IVlarch 11,20i 0 

U.S. Rep. Tim Murphy 

U.S. Sen. Arlen Specter, 

U.S. Sen. Robert P. Casey Jr. 

Gentlemen: 

The Westmoreland County Airport Authority has served portions of your constituencies for more than 

three decades with the best air-service offerings available. We dont need to remind you how important a 

role air service plays in a vital economy, but we do need your help to revive that legacy of service. 

We humlply bring to your attention a situation that has long hampered and continues to impede our efforts 

to deliver air service to the many communities that are served by Arnold Palmer Regional Airport in Unity 

Township, Westmoreland County. We can't stress enough the importance of your awareness, 

comprehension and support in this critical issue. 

There are two federal programs that desperately need to be revamped, retooled and rebuilt if we are ever 

going to have a thriving, sustainable and reliable air-service system In Pennsylvania - the Essential Air 

Service Program (EAS) and a iesaer>-known counterpart, the Small Community Air Service 

Development Program (SCASD). While the former has been a bane to us, the latter has proven 

extremely effective in developing air service at Arnold Palmer Regional. 

The Essential Air Service Program has been widely and duly criticized for faults ranging from 

questionable effectiveness to blatant squander of federal money with its tepid to appalling results. Ifs 

admittedly unfair to paint all EAS recipients with the same bmsh. But we could at least agree that, on a 

case-by-case basis, where airlines are receiving millions in EAS subsidies to fly routes with dismal load 

factors, the money might, and justly should, be spent better elsewhere, in other words, If the flights are 

not full, is the service truly "essential?" 

And yet. in the FY 2011 budget, another $182 million is pnaposed for EAS. That's no reduction from 

previous years for a program that even participants call "^rport welfare.' It's also a program that directly 

Impacts efforts to attract air-service providers to our airport and others forced to compete in the freemarket system without a federal subsidy because the airiines are assured profits elsewhere regardless of 

performance. 

In comparison, the Small Community Air Service Development Program has a proven track record. Yet it 

suffers •• and we along with it -- from a lack of sufficient funding. Last year, 84 grant applications 

generated by communities in 38 states sought $39 million in SCASO funding to support new and 

emerging air service prelects. All applicants provided information on historical and current air service and 

airfare issues facing Ihelr communities, the economic benefits of air service and arguments In support of 

their proposals. Two of you even wrote letters of support for our application, which ultimately proved 

unsuccessful. 

Nearly all communities pledged local contributions to supplement their requests for federal assistance. 

The U.S. Department of Transportation's review of tiie applications confirmed tiiat air service issues 

continue to be of great concern to many small communities. Similar to previous years, a majority of 

applicants also proposed to implement projects using revenue guarantees or subsidies, together witti a 

variety of marketing and promotional initiatives. Nonetheless, of those 84 applicants, only 19 were 

seiscted .o receive awards that totaled less than S6.5 million. And of those selected, several were EAS 

Arnold Palm r Regional Airport Rostraver Airport 
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communities looking to promote existing, recently restored or newly subsidized air services at airports 

already subsidized through EAS. 

Less than $6,5 million was awarded. While less tiian $40 million would have funded ail who applied for the 

SCASD assistance. Meanwhile, more than $180 million Is being proposed for EAS in the coming budget 

to continue - we've all seen the news reports - ridiculously underused air service programs that waste fuel 

and money flying empty seats. 

Of course, proponents of EAS Justiy argue tiiat Uie program is. In fact, "essential" in some regions. But 

SCASD s effectiveness has also been clearly demonstrated, and we did it right here at Arnold Palmer 

Regional. With a $600,000 SCASD grant in 2004, the authority was able to draw Northwest Airiines to tiie 

bargaining table and establish daily scheduled service tiirough Detroit in early 2005. Along with marketing 

dollars senerated through otiier sources, the authority used tiie SCASD funds to pay revenue guarantee 

obligations, as outlined in its initial one-year agreement with the airline. 

NWA did not take tiie money and run. The airiine invested in and partnered witii our communities to 

continue service at Its own risk. This lasted about three more years, and likely would still be In place if not 

for the c conomic meltdown of 2008, combined witii a major merger that left Delta Airiines the controlling 

pa iier of Northwest Delta decided to halt Latrobe's service during the most tumultuous economic 

downturn the nation had experienced since the Great Depression. 

Bi ihe iiirport proved that the program can work. While the revenue guarantee was key to bringing the 

aiiiaie to the region, the airport's attributes were what kept it there. "Latrobe was the poster-child for 

small cctnmunjty air service success," said airline indusijy expert Michael Boyd, preskJent of the Boyd 

Group, ciM air service consulting and forecasting firm based In Evergreen. CO. "Where the national trend 

wfis tov.ard elimination of service, Arnold Palmer Regional successfully recruited and Incubated 

flir' :s t. Nortiiwest Airiines' global hub at Detroit Metropolitan Airport...the NoriJiwest Airiink service 

lit( ; apt tiie community connected to the worid." 

SC '-n .jrants are vital in negotiating airiines because - unlike other industries, and thanks to programs 

lik' - . - airlines only consider markets where tiiey face no risk. The problem Is, the program is woefully 

un(.(.ifui,ded, while programs like EAS seem to devour more funding and yield litfle more than empty 

se: o in , :-iany regions. 

W t'li; landscape, and nowhere else to turn, we desperately need your assistance toward a recovery 

at t r our region. We recentiy received a commitment from United Airiines to provide dally sen^ice 

thi 1 . Jiles International Airport witii a seven-figure-per-year revenue guarantee. United Is willing and 

cor 111 J to a long-term relationship with the region. 

A .JH. one-time grant would make tiiis a reality. With this solitary Investment, we can build a longtfif ership with a service that precisely fits our demographic. This request is reasonable In light of 

wl, ; I. OS to perform in free-mart<et competition and fair in tenns of all the years of subsidies that were 

no- I et :>d to an airport that Is capable of using them effectively. Genflemen, the clock is ticking. The 

loi • i. akes to secure this funding and move fonward with these efforts, the more the market 

Of . deteriorates. I look forward to discussing tills witii each of you genflemen and your staff at 

yoi ^t convenience, and I thank you for your attention to this issue. 

Gabriel E., 

Executive Director 

Westmoreland County Airport Authority 

C( ;. ; insportation Secretary Raymond H. La Hood