03/12/201 0 11:1 6 FA X 72 4 53 0 244 1 WCA A 

## S I 0-100312-07 2 

# yy^GAA Westmorelan d Count yAirpor t Authorit y 148 Aviatio n Lane , Suit e 103 • Latrobe , P A1565 0 (P) 724.539.810 0 (F

) 724.539.244 1 To ; Thursday , IVlarch 11,20 i 0 U.S . Rep . Ti m Murph y U.S . Sen . Arle n Specter , U.S . Sen . Robert P . Case yJr . Gentlemen : Th e Westmorelan d CountyAirpor t Authorityha s serve d portion s o f you rconstituencie s fo rmore tha n thre e decade s wit h th e bes t air-servic e offering s available . We don t nee d t o remin d yo u howimportan t a rol e ai rservic e play s i n a vita l economy , bu t w e d o nee d you rhel p t o reviv e tha t legac yo f service . W e humlpl ybrin g t o you rattentio n a situatio n tha t ha s lon g hampere d an d continue s t o imped e ou reffort s t o delive rai rservic e t o th e man ycommunitie s tha t are serve d b yArnol d Palme rRegiona l Airpor t i n Unit y Township , Westmorelan d County . W e can' t stres s enoug h th e importanc e o f you rawareness , comprehensio n an d suppor t i n thi s critica l issue . There are tw o federa l program s tha t desperatel ynee d t o b e revamped , retoole d an d rebuil t i f w e are eve r goin g t o hav e a thriving , sustainabl e an d reliabl e air-servic e syste m I n Pennsylvani a - th e Essentia l Ai r Servic e Progra m (EAS ) an d a iesaer>-known counterpart , th e Smal l Communit yAi rServic e Developmen t Progra m (SCASD) . Whil e th e forme rha s bee n a ban e t o us , th e latte rha s prove n extremel yeffectiv e i n developin g ai rservic e at Arnol d Palme rRegional . Th e Essentia l Ai rServic e Progra m ha s bee n widel yan d dul ycriticize d fo rfault s rangin g fro m questionabl e effectivenes s t o blatan t squande rof federa l moneywit h it s tepi d t o appallin g results . If s admittedl yunfai rt o pain t al l EA S recipient s wit h th e sam e bmsh . Bu t w e coul d a t leas t agre e that , o n a case-by-cas e basis , wher e airline s are receivin g million s i n EAS subsidie s t o fl yroute s wit h disma l loa d factors , th e moneymight , an d justl yshould , b e spen t bette relsewhere , i n othe rwords , I f th e flight s are not full , i s th e servic e trul y"essential? " An d yet . i n th e F

Y201 1 budget , anothe r$18 2 millio n i s pnapose d fo rEAS . That' s n o reductio n fro m previou s year

s fo ra progra m tha t eve n participant s cal l "^rpor t welfare. ' It' s als o a progra m tha t directl y Impacts efforts t o attract air-servic e providers t o ou rairpor t an d others force d t o compet e i n th e free market syste m withou t a federa l subsid ybecaus e th e airiine s are assure d profit s elsewhere regardles s o f performance . I n comparison , th e Smal l CommunityAi rServic e Developmen t Progra m ha s a prove n trac k record . Ye

t i t suffer s • • an d w e alon g wit h i t - - fro m a lac k of sufficien t funding . Last year , 8 4 gran t application s generate d bycommunitie s i n 3 8 state s sough t $3 9 millio n i n SCAS O fundin g t o suppor t newan d emergin g ai rservic e prelects . Al l applicant s provide d informatio n o n historica l an d curren t ai rservic e an d airfare issue s facin g Ihel rcommunities , th e economi cbenefit s of ai rservic e an d argument s I n suppor t o f thei rproposals . Tw

o of yo u eve n wrot e letters of suppor t fo rou rapplication , whic h ultimatel yprove d unsuccessful . Nearl yal l communitie s pledge d loca l contribution s t o supplemen t thei rrequest s fo rfedera l assistance . Th e U.S . Departmen t o f Transportation' s reviewo f tiie application s confirme d tiiat ai rservic e issue s continu e t o b e of great concer n t o man ysmal l communities . Simila rt o previou s years , a majorit yo f applicant s als o propose d t o implemen t project s usin g revenu e guarantee s o rsubsidies , togethe rwitt i a variet yof marketin g an d promotiona l initiatives . Nonetheless , o f thos e 8 4 applicants , onl y1 9 were seiscte d . o receive award s tha t totale d les s tha n S6. 5 million . An d o f thos e selected , severa l were EAS

Arnol d Pal m rRegiona l Airpor t Rostrave rAirpor t'03/12/201 0 11:11 5 FA X 72 4 53 9 244 1 WCA A 

### 810-100312-07 2

communitie s lookin g t o promot e existing , recentl yrestore d o rnewl ysubsidize d ai rservice s a t airport s alread ysubsidize d throug h EAS . Les s tha n $6, 5 millio n wa s awarded . Whil e les s tiian $4 0 millio n woul d hav e funde d ai l wh o applie d fo rth e SCAS D assistance . Meanwhile , more tha n $18 0 millio n I s bein g propose d fo rEA S i n th e comin g budge t t o continu e - we'v e al l see n th e new s report s - ridiculousl yunderuse d ai rservic e program s tha t wast e fue l an d moneyflyin g emptyseats . O f course , proponent s o f EA S Justi yargu e tiiat Ui e progra m is . I n fact , "essential " i n som e regions . Bu t SCAS D s effectivenes s ha s als o bee n clearl ydemonstrated , an d w e di d i t right here a t Arnol d Palme r Regional . Wit h a $600,00 0 SCAS D gran t i n 2004 , th e authoritywa s abl e t o dra wNorthwes t Airiine s t o tiie bargainin g tabl e an d establis h dail yschedule d servic e tiirough Detroi t i n earl y2005 . Alon g wit h marketin g dollars senerate d throug h otiie rsources , th e authorityuse d tiie SCAS D fund s t o payrevenu e guarante e obligations , a s outline d i n it s initia l one-yea ragreemen t wit h th e airline . NW Adi d not tak e tiie mone yan d run . Th e airiin e investe d i n an d partnere d witi i ou rcommunitie s t o continu e servic e at It s ow n risk . Thi s laste d abou t thre e more years , an d likel ywoul d stil l b e I n plac e i f no t fo rth e cconomi cmeltdow n o f 2008 , combine d witi i a majo rmerge rtha t lef t Delt a Airiine s th e controllin g p a iie ro f Northwes t Delt a decide d t o hal t Latrobe' s servic e durin g th e mos t tumultuou s economi c downtur n th e natio n ha d experience d sinc e th e Grea t Depression . B i ih e iiirpor

t prove d tha t th e progra m ca n work . Whil e th e revenu e guarante e wa s ke yt o bringin g th e aiiiai e t o th e region , th e airport' s attribute s wer e wha t kep t i t there . "Latrob e wa s th e poster-chil d fo r smal l cctnmunjt yai rservic e success, " sai d airlin e indusij yexper t Michae l Boyd , preskJen t o f th e Boyd Group , ci M ai rservic e consultin g an d forecastin g fir m base d I n Evergreen . CO . "Wher e th e nationa l tren d wfi s tov.ard eliminatio n o f service , Arnol d Palme rRegiona l successfull yrecruite d an d Incubate d flir ' : s t . Nortiiwes t Airiines ' globa l hu b a t Detroi t Metropolita n Airport...th e NoriJiwes t Airiin k servic e lit ( ; apt tiie communit yconnecte d t o th e worid. " S C '- n .jrant s are vita l i n negotiatin g airiine s becaus e - unlike othe rindustries , an d thanks t o program s lik ' - . - airline s onl yconside rmarket s where tiieyfac e n o risk . Th e proble m Is , th e progra m i s woefull y un(.(.ifui,ded , whil e program s like EA S see m t o devou rmor e fundin g an d yiel d litfl e more tha n empty 

### se : o i n , :-ian y regions . W t'li ; landscape , an d nowher e els e t o turn , w e desperatel ynee d you rassistanc e toward a recover y at t rou rregion . W e recenti yreceive d a commitmen t fro m Unite d Airiine s t o provid e dall ysen^ic e th i 1 . Jile s Internationa l Airpor t witi i a seven-figure-per-yea rrevenu e guarantee . Unite d I s willin g an d co r11 1 J t o a long-ter m relationshi p wit h th e region . A.JH . one-tim e gran t woul d make tiiis a reality . Wit h thi s solitar yInvestment , w e ca n buil d a long tfi f ershi p wit h a servic e tha t precisel yfit s ou rdemographic . Thi s reques t i s reasonabl e I n ligh t of wl , ; I . O

S t o perfor m i n free-mart<et competitio n an d fai ri n tenn s o f al l th e year s o f subsidie s tha t were no - I e t :> d to a n airpor

t tha t I s capabl e of usin g the m effectively . Genflemen , th e cloc k i s ticking. Th e lo i • i . akes t o secur e thi s fundin g an d mov e fonwar d wit h thes e efforts , th e more th e marke t O f . deteriorates . I loo k forwar d t o discussin g tills witi i eac h o f yo u genfleme n an d you rstaf f a t yo i ^

t convenience , an d I than k yo u fo ryou rattentio n t o thi s issue . 

### Gabrie l E. , Executiv e Directo r Westmorelan d Count

yAirpor t Authorit y C ( ; . ; insportatio n Secretar yRaymon d H . La Hoo d