Application Under the Small Community 

Air Service Development Program

Docket DOT-OST-2012-0069

                      

Bert Mooney Airport

Butte, Montana

                      

Legal sponsor: Bert Mooney Airport Authority

DUNS: 15-605-3241

Federal Tax ID: 81-0453199

Congressional District Code: MT-01

Contact: Patrick Shea - Airport Manager

Bert Mooney Airport ∙ 101 Airport Road ∙ Butte, MT 59701

(406) 494-3771 ∙ pshea@butteairport.com


Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityTable of Contents

Prepared by

Table of Contents

Page

Application Highlights ............................................................... 1

Essential Air Service with High Travel Costs ..........................................1

Realistic Timeline....................................................................................2

Financial Stakeholders Actively Involved ................................................2

Air Service Environment............................................................ 3

Isolated Catchment Area ........................................................................3

Strong Local Economy............................................................................4

Air Service – Existing and Historical ........................................ 6

Existing Air Service.................................................................................6

Historical Air Service...............................................................................6

Previous Air Service Development Efforts ..............................................9

Air Service Needs and Deficiencies........................................ 10

Maintain Schedule Frequency...............................................................10

Extraordinarily High Airfares Continuing to Climb .................................10

Strategic Plan ........................................................................... 12

Project Goals ........................................................................................12

Proposed Air Service ............................................................................12

Public-Private Partnership.....................................................................12

Proposed Plan ......................................................................................13

Strategic Plan Funding..........................................................................14

Project Continuation and Sustainability.................................................15

Previous Grant Recipient - New Project and Goals ..............................15

Schedule and Monitoring......................................................... 17

Schedule...............................................................................................17

Monitoring Program ..............................................................................17

Appendix A. Marketing Plan .................................................... 18

Marketing Plan Goals............................................................................18

Marketing Partnership...........................................................................18

Target Audience....................................................................................19

Promotion Campaign ............................................................................19

Appendix B. Community Support ........................................... 22
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityApplication Highlights

1

Application

Highlights

his Small Community Air Service Development Program (SCASDP) grant 

application for Bert Mooney Airport (BTM) in Butte, Montana meets the 

criteria of Docket DOT-OST-2012-0069. The Bert Mooney Airport 

Authority, the airport sponsor, is requesting $150,000 in financial assistance to 

support a $175,000 air service initiative. The project goal is to improve the 

performance of existing Essential Air Service (EAS) to prevent further service 

reductions after the initial EAS agreement ends.

The Strategic Plan to accomplish the project goal is to fund a marketing/service 

awareness campaign to publicize the attributes of the existing EAS service.

Additionally, market monitoring will be conducted to track the value of the 

marketing campaign and to provide feedback for adjusting local promotion if 

needed. The intent of the program is to make local travelers aware of the service 

options available from BTM and the convenience of flying local versus driving to 

alternate airports.

Essential Air Service with High Travel Costs

Since Horizon Air exited BTM in August 2008, only Salt Lake City EAS service 

remains as a result of Delta Air Lines’ decision to convert BTM to an EAS market.

With limited air service options and geographic proximity to alternate airports, 

BTM’s catchment area air travelers often drive to larger, alternate airports to 

access conveniently scheduled service. As a result, the performance of existing 

service could erode and be at risk of exceeding the mandates of the 

EAS program.

The airport catchment area is geographically isolated with drive times to alternate 

airports exceeding 1.5 hours. Approximately 51 percent of BTM catchment area 

travelers (over 65,000 air travelers each year) are driving to alternate airports.

The previous loss of two daily roundtrips and the third seasonal roundtrip has 

deteriorated what was already marginal time-of-day coverage and has led to high 

passenger diversion and airfares that are well above average. Since the majority 

of BTM’s air travelers are traveling to destinations that can be served via Salt 

Lake City, the current two roundtrip EAS schedule needs to be promoted to 

continue its sustainability and meet the local need for access to the national air 

transportation system.

T This section contains: 

• Project goals

• Description of the 

Strategic Plan

• Highlights of the grant 

application
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityApplication Highlights

2

Realistic Timeline

The Strategic Plan is designed to increase ridership at BTM by implementing an 

aggressive, new marketing campaign to maintain and sustain the service.

Retaining the existing EAS flights will require a service awareness campaign 

designed to educate the traveling public and promote the benefits of flying local.

Key components of the Strategic Plan include:

• Multi-media marketing plan

• Financial commitment by the community

• Service monitoring program to ensure success

Financial Stakeholders Actively Involved

The Bert Mooney Airport Authority, the Butte-Silver Bow Chamber of Commerce, 

Butte Local Development Corporation, and the City/County of Butte-Silver Bow 

have formed a public-private partnership to support this application. This 

partnership has the ability to implement the project in a reasonable timeline and 

is committed to seeing it succeed. Non-airport revenue sources will fund nine 

percent ($12,500) of the $165,000 Strategic Plan cash requirement. Bert Mooney 

Airport Authority and the community will provide 14 percent ($25,000) of the total 

funding plan in the form of cash and in-kind services; $10,000 is in-kind services 

with the remaining $15,000 in cash. All the requirements for sustainability are 

in place.

Material Benefits

The assistance will provide material benefits to a broad segment of the traveling 

public, including business, educational institutions, and other enterprises, whose 

access to the national air transportation system is limited. BTM serves a remote 

population in the airport catchment area of 69,360 living in an area that is 

secluded from major population centers. The remoteness of BTM’s catchment 

area makes air service essential to the economic health of the region. The region 

served by BTM has an evolving economy with key industries requiring adequate 

local air service.

On July 15, 2011, Delta 

Air Lines’ filed notice 

of its intent to 

terminate its subsidyfree service at Butte, 

Montana, effective 

October 13, 2011. 

Delta’s EAS began in

April 2012. 
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service Environment

3

Air Service 

Environment

his section provides a profile of the Butte community highlighting the 

economic and demographic attributes of the BTM catchment area. It 

identifies the businesses, institutions, government branches, and 

population that benefit from the existing EAS.

Isolated Catchment Area

BTM, located in Butte, Montana, serves a population in the airport catchment 

area of 69,360 living in an area that is secluded from major population centers.

As can be seen in Exhibit 2.1, BTM’s catchment area includes: the city of Butte, 

Silver Bow County, Deer Lodge County, and portions of Beaverhead, Madison, 

Jefferson, Granite, and Powell counties.

EXHIBIT 2.1 AIRPORT CATCHMENT AREA

According to a Passenger Demand Analysis (leakage study) conducted in 2007, 

BTM serves 51 percent of its catchment area air travelers. Of the diverting 

passengers, 45 percent use Bozeman’s Gallatin Field Airport, 22 percent use 

Missoula International Airport, and 31 percent use other airports. Despite a drive 

time of over two hours to Missoula and nearly an hour-and-a-half to Bozeman, 

over 65,000 origin and destination passengers annually drive to another airport 

instead of using BTM. Driving to a distant airport from the catchment area can be 

an ordeal. Below freezing for seven months of the year combined with snow and 

T This section contains:

• Description of the Butte 

community in relation to 

air service

BTM serves a 

population in the 

airport catchment area 

of 69,360 living in an 

area that is secluded 

from major population 

centers.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service Environment

4

mountainous terrain make driving hazardous. Since the loss of Horizon Air 

service in 2008 and conversion of Delta Air Lines’ service to EAS in 2012, it is 

highly likely that diversion has increased.

Strong Local Economy 

The remoteness of BTM’s catchment area makes air service essential to the 

economic health of the region. The region served by BTM has an evolving 

economy with key industries requiring adequate local air service. Copper, gold, 

and silver mining were once Butte’s economic foundation; now, while mining 

continues to be an important economic asset, Butte’s economy is driven by more 

diverse sources. Additionally, Butte’s local economy is strong despite the flagging 

national economic picture.

Mining

Butte’s metals (i.e. copper, molybdenum, and historically gold and silver) are 

distributed worldwide. Montana Resources operates an open-pit copper and 

molybdenum mine on the edge of the city. The scale of local operations require 

that experts in far ranging fields such as environmental protection, industrial 

production, and geology travel to and from the site from all over the globe. Based 

on identified ore bodies and the current production level, the mine has 

approximately 20 years of operational life securing a demand for locally based air 

travel into the future.

Historically, the market price of commodity metals had dramatic effects on 

Butte’s local economy; high prices resulted in an economic boom while low 

prices had negative effects. Starting in the late 1980s a concerted effort was 

started to solidify the long-standing large employers and also to diversify Butte’s

basic industry base to moderate the boom and bust cycles. Local government, 

chamber of commerce, and economic development organizations laid the 

groundwork to insulate and stabilize Butte’s economy from dips in commodity 

prices, in turn, stabilizing air service demand.

Infrastructure to Support Heavy Industry

Butte is the home of a full-service inland transportation port, the Port of Montana.

It is the only location in Montana that is served by two class one railroads.

Additionally, at the junction of Interstates 15 and 90, Butte has excellent road 

access both north/south and east/west. This strategic location has attracted an 

economic core of manufacturing and transportation support services. Air service 

completes the cadre of Butte’s transportation advantages. Reliable and frequent 

local air service is a key resource for Butte’s industry and community. Table 2.1

provides a list of major employers. In addition, the major industrial/manufacturing 

firms located in Butte that rely on local air service include:

TABLE 2.1 BUTTE’S MAJOR 

EMPLOYERS

ORGANIZATION EMPLOYEES

Public employers

Butte School District 500-900

Butte-Silver Bow 

Local Government 500-900

Community 

Counseling & 

Correctional Service

250-499

Montana Tech 250-499

St. James 

Community Hospital 500-900

Private employers

Acadia Montana 250-499

Advanced Silicon 

Materials 100-249

M.S.E. Inc. 100-249

Montana Resources 250-499

Northwestern Energy 250-499

Source: Montana Department of Labor 

and Industry
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service Environment

5

• Aerospace firms (AeroTec)

• Advanced engineering firms (MSE Technology Applications, Pioneer 

Technical Services, Water and Environmental Technology, Dowl HKM, 

Robert Peccia & Associates, Everly & Associates, Great 

Divide Engineering)

• High technology materials firms (REC Silicon, REC Solar, and Sea 

Cast Metals)

• Mining (Montana Resources)

• Utilities (NorthWestern Energy, 360networks Corporation)

Institutions and Government Dependent on Air Service

Butte is the hub for education, medical services, and government services for 

southwestern Montana. Institutions reliant on air service for connections to 

personnel, customers, suppliers, and other facilities are located here. Over 40 

federal, state, and local government offices are located in the Butte area, each 

requiring access to air service. Montana Tech, a four-year college located in 

Butte, is a world renowned engineering school offering multiple technical 

degrees. Because of its ties to national and international corporations the 

University was hard hit by the recent cuts in air service.

Strong Economy Despite National Recession

In 2008-2009, with financial markets collapsing and housing bubbles bursting, 

the economy in Butte and southwest Montana remained relatively quiet. A slow 

economy meant businesses remained steady in Butte while other cities struggled 

with rising unemployment and a shrinking tax base. According to the University of 

Montana's Bureau of Business and Economic Research, the economy in the 

Butte-Silver Bow area grew 0.6 percent in 2010, and a similar number was 

expected in 2011, with non-farm labor income in the county expected to increase 

by around two percent annually until at least 2015. That means the county is 

growing, albeit slowly, while other parts of the state and country are in decline.

Bright spots in 2011 included:

• Federal Express opened an $8 million freight transfer center in the Tax 

Increment Financing Industrial District (TIFID) off Interstate 15 

in September.

• The TIFID started a two-year project to build a wastewater line that will 

run from the industrial park to the metro sewer, allowing businesses to 

tie in to city services.

• Acadia Montana opened a new $2.2 million facility.

• The County will build a $13.7 million Southwest Montana Veterans 

Home. Construction will likely start in 2012.

• SeaCast foundry added positions in the last year.

• UTRS Titanium is looking to expand in the near future.

While most of the 

nation was reeling 

from the recession, 

Butte’s economy 

remained stable.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service 

– Existing and Historical

6

Air Service – Existing 

and Historical

his section presents a record of the current and historical air service for 

BTM. The current air service discussion highlights: service frequency, 

nonstop destinations, and equipment types. The historical air service 

section includes a description of historical destinations, traffic levels, service 

providers, and any extenuating factors that have affected air service in the past 

or that can be expected to influence air service in the future. Past air service 

development efforts are also covered in this section.

Existing Air Service

BTM suffers from very limited air service. Only 

one carrier serves the market, Delta Air Lines

(operated by SkyWest Airlines). Direct

commercial air service is provided to Salt Lake 

City, UT under the EAS program. BTM had 14

weekly departures and 700 outbound seats in 

May 2012. Delta uses the 50-seat Canadair 

Regional Jet to provide service. Table 3.1

provides a list of current air service at BTM.

Historical Air Service

Air service at BTM has suffered over the last 10 years. This subsection 

summarizes BTM’s air service history including: destinations, traffic levels, and 

service providers. Extenuating factors that have affected air service are 

also reviewed.

Destinations, Service Providers, and Traffic Levels

Over the past 10 years, scheduled air service at BTM has been eroding. In 2003 

Horizon Air provided nonstop service to Bozeman, MT and Seattle, WA, while

Delta (SkyWest) offered nonstop service to Salt Lake City, UT. In December 

2005 the first major decline in service occurred when Delta cut its BTM-Salt Lake 

City frequency from four to two daily roundtrips. Table 3.2, next page, provides 

the history of BTM’s nonstop destinations by air carrier and destination over the 

past 10 years.

T

TABLE 3.1 CURRENT AIR 

SERVICE

BTM

Hub Salt Lake 

City

Carrier Delta

Aircraft CRJ 200

Weekly 

Departures 14

Weekly Seats 700

Connecting 

Destinations 85

Source: Diio Mi, May 2012

This section contains:

• Description of existing air 

service

• Synopsis of historical air 

service

• Description of air service 

development efforts

BTM suffers from very 

limited air service. 

Only one carrier serves 

the market, Delta Air 

Lines (operated by 

SkyWest Airlines).
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service 

– Existing and Historical

7

TABLE 3.2 HISTORICAL DESTINATIONS AND SERVICE PROVIDERS

DESTINATION AIRLINE 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Bozeman, MT 

(one-stop to Seattle) Horizon Aug

Salt Lake City, UT Delta

Seattle, WA 

(nonstop) Horizon Mar

In March 2006, Horizon discontinued nonstop flights to Seattle. In August 2008 

Horizon withdrew from the market completely by canceling nonstop flights to 

Bozeman (which essentially was a one-stop service to Seattle). That left 

SkyWest (operating as Delta Connection) as the only service provider at BTM.

From the first quarter 2003 to the fourth quarter 2011 BTM’s total departures 

declined by 64 percent (from 472 to 169 departures per quarter). Outbound seats 

decreased by 68 percent (from 26,690 to 8,450 total seats per quarter) over the 

same period of time. Exhibit 3.1 shows the trend in departures and outbound 

seats by year (through 2011). Overall, departures decreased from 2,071 in 2003 

to 663 in 2011, nearly 70 percent. Outbound seats followed the same trend. 

EXHIBIT 3.1 DEPARTURES AND SEATS

Table 3.3, next page, shows the trend in outbound passengers and load factors 

over the same nine-year period (2003 through 2011). Overall, outbound 

passengers decreased by 55 percent (from 52,016 annual passengers in 2003 to 

23,264 annual passengers in 2011). Since 2008 when Delta became the only 

provider of scheduled air service at BTM, the load factor remained relatively 

stable – between 60 and 70 percent on average.

0

30,000

60,000

90,000

120,000

150,000

0

500

1,000

1,500

2,000

2,500

200320042005200620072008200920102011

Seats

Departures

Calendar year

Departures Seats
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service 

– Existing and Historical

8

TABLE 3.3 HISTORICAL LOAD FACTORS AND OUTBOUND PASSENGERS

CALENDAR YEAR

2003 2004 2005 2006 2007 2008 2009 2010 2011

Salt Lake City, UT 45% 42% 51% 70% 64% 64% 68% 62^ 70%

Bozeman, MT 33% 33% 32% 34% 33% 34%

Seattle, WA 68% 68% 70% 74% 70% 72%

Outbound passengers 52,016 56,480 53,725 50,105 47,187 36,995 23,044 24,419 23,264

Source: Diio Mi T-100

Even with the reductions in capacity, outbound passengers increased from 2003

through 2005. However, in 2006 service cuts were too restrictive for the market 

to bear and enplanements began to decrease. Load factors and airfares 

increased as departures and seats evaporated. Based on 2004 and 2007 

leakage studies, diversion averaged 40 percent for the period from October 2003 

through September 2004 and increased to an average of 49 percent for the 

period from November 2005 through October 2007; an increase of nearly 13,000 

diverting origin and destination passengers per year.

Extenuating Factors That Have Affected Air Service

BTM struggles to obtain and retain the necessary air service needed to serve its 

catchment area air travelers. Three primary factors have affected air service 

at BTM.

1. Limited catchment area population: With a limited catchment area 

population of approximately 69,000 and an estimated catchment area 

true market of 135,000, the Butte market is not of sufficient size and 

lacks current ridership to interest additional airlines. In 2012 the existing 

Salt Lake City service fell under the protection of the EAS program. As 

the state capital, Helena commands attention. Bozeman and Missoula 

are home to the state’s two largest universities and, with larger 

catchment area populations, are the first to draw the attention of airline 

capacity and route planners considering serving the area. Hence, BTM

does not receive the service that the market merits.

2. High diversion to surrounding airports: With an extremely modest 

level of service that falls short of market needs, the result is that nearly 

half of BTM catchment area travelers divert to surrounding airports that 

offer greater levels of service. Helena Regional Airport is approximately 

65 miles away; Bozeman’s Gallatin Field is approximately 80 miles 

away; and Missoula International Airport is approximately 125 miles 

away. Frequent inclement weather conditions and the need to traverse 

6,000 foot high mountain passes makes it important that Butte’s air 

service needs be met locally rather than requiring catchment area air 

travelers to brave the mountainous drive to an alternate airport.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service 

– Existing and Historical

9

3. Market potential not reflected in BTM’s reported passengers:

Airlines focus their air service decisions on US Department of 

Transportation (DOT) reported origin and destination passengers.

BTM’s traffic statistics provide no recognition of the nearly 50 percent of 

the catchment area market that are diverting to alternate airports due to 

the inadequacy of local air service. Compounding BTM’s problem and 

completing the vicious cycle, airline planners are basing service 

decisions at other Montana airports on exaggerated traffic statistics that 

include BTM’s catchment area passengers who are included in other 

airport’s reported statistics due only to the inadequacy of BTM’s air 

service. Accordingly, it is difficult to persuade airlines to recognize its 

true air service potential.

The end result of this combination of factors has been an erosion of air service at 

BTM with the remaining EAS in need of support. As service erodes, the 

convenience of using local service and the reasons for using it diminish, and the 

performance of the remaining air service deteriorates. This downward spiral in air 

service must be reversed or the future of Butte’s economic development could be 

in jeopardy.

Previous Air Service Development Efforts

Over the past several years, BTM has aggressively sought air service 

improvements (Table 3.4). Several market studies have been completed and air 

service deficiencies identified. Airport management has met with Delta regularly 

to review air carrier performance in the market. During these meetings, additional 

routes have been discussed. Delta, SkyWest, Horizon, and Allegiant Air have 

been approached with service requests but, to date, have not 

responded favorably.

The highest new service priorities have been to improve Salt 

Lake City service. In 2010 BTM successfully implemented a 

service improvement initiative with Delta as a direct result of 

the 2009 SCASDP award. Unfortunately, that successful 

service improvement initiative was short lived as Delta 

continued to reduce its regional jet fleet and pulled the 

additional seasonal frequency. Subsequently, in September 

2011 the service was put out to bid for EAS and the 2009 

SCASDP grant was returned to the US DOT. 

TABLE 3.4 PAST AIR SERVICE 

DEVELOPMENT EFFORTS

YEAR INITIATIVE RESULT

2009

Airfare Monitoring Completed

Market analysis -

DL/MSP service Completed

SCASD grant 

application Successful

2010 Delta Air Lines 

seasonal service Successful

2011 EAS bid and award Completed
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service Needs and Deficiencies

10

Air Service Needs and 

Deficiencies

ith BTM’s air service now being under the auspices of the EAS

program, a discussion of market air service needs and deficiencies is 

focused on short-term and long-term needs. In the short-term, the 

challenge is to retain the critically needed existing service. To accomplish this 

objective it is necessary to aggressively market the existing service and to 

closely monitor service use and any subsequent service changes.

The BTM catchment area air travel market has been traumatized over the last 

seven years by a 50 percent reduction in Delta Air Lines Salt Lake City service, 

the loss of Horizon Air service and increasing fare differences with surrounding 

airports starting in 2009. Though service was essentially unchanged, the 

transition to the EAS program was deemed to have unfavorable connotations.

Marketing and community promotion are required to further awareness of the 

existing service and to emphasize convenience of using the local airport. Future 

economic development opportunities are contingent on the retention and 

expansion of air service as demonstrated by catchment area use and demand.

Maintain Schedule Frequency

BTM’s air service is limited to service to the Salt Lake City hub with two 

roundtrips per day. Given the catchment area’s modest market potential, service 

to a single hub may be adequate to maintain service, but it requires service 

awareness. With an aggressive marketing campaign, the market is capable of 

sustaining existing service as BTM has had as many as four regional jet 

roundtrips to Salt Lake City. Service is nearing the point where it no longer meets 

basic demand. As a result, local travelers are using alternate airports but can be 

made aware of the benefits of flying locally.

Extraordinarily High Airfares Continuing to Climb

BTM’s average airfares are among the highest in the country. In 2011 BTM 

ranked 23rd out of approximately 450 airports in the contiguous US in terms of 

domestic average fares. Fares in BTM were the highest of all commercial airports 

in the Northwest Region and in the State of Montana. BTM’s fares in 2011 were 

49 percent higher than the national average. Fares in BTM have been on the rise 

during the past several years (with a slight year-over-year decline in 2011). 

Between 2004 and 2011 airfares rose 41 percent. The national average fare over 

the same period of time has increased by 28 percent. 

W This section contains: 

• Description of the 

downward spiral in 

Butte’s air service and 

need for awareness 

and promotion of 

existing EAS

With an aggressive 

marketing campaign, 

the market is capable 

of sustaining existing 

service as BTM has 

had as many as four 

regional jet roundtrips 

to Salt Lake City.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAir Service Needs and Deficiencies

11

BTM has long suffered from high airfares. In early 2005, Delta recognized that 

BTM airfares were out of line with their fares in other Montana communities and 

revised the fare structures in the markets so relationships were more reasonable.

Unfortunately since that time, airfares have again spiraled higher and average 

airfares remain high in Montana markets. Relative to other western cities, BTM’s

airfares are the highest. Table 4.1 illustrates that BTM’s average fares are high 

compared to average fares in other Northwest communities and have increased 

substantially since Salt Lake City service was cut in half at the end of 2005. The 

table also shows the excessive difference in fares compared to the Northwest 

Region and national averages. With higher than average airfares, BTM is in need 

of promoting the value of convenience on its existing service to the 

traveling public.

TABLE 4.1 COMPARISON OF AVERAGE FARES

AIRPORT CALENDAR YEAR % BTM 

2004 2005 2006 2007 2008 2009 2010 2011 DIFF

Butte $182 $182 $233 $254 $276 $258 $262 $256 

Bozeman $166 $170 $212 $218 $215 $183 $193 $204 25%

Kalispell $166 $174 $218 $223 $219 $195 $208 $221 15%

Helena $197 $178 $225 $242 $253 $221 $220 $229 11%

Rapid City $170 $181 $215 $215 $203 $176 $185 $221 15%

Billings $154 $161 $188 $184 $185 $166 $178 $196 30%

Idaho Falls $181 $178 $200 $208 $210 $195 $204 $206 24%

Missoula $162 $169 $203 $206 $202 $184 $185 $201 27%

Pasco $175 $176 $202 $202 $211 $190 $178 $186 37%

Pullman $158 $154 $171 $167 $148 $140 $135 $149 71%

Boise $116 $120 $133 $134 $137 $132 $145 $159 60%

Spokane $115 $119 $134 $135 $139 $134 $141 $158 62%

Montana $165 $168 $205 $209 $209 $185 $193 $206 24%

Northwest Region $137 $143 $155 $155 $158 $143 $155 $167 53%

US $134 $137 $149 $149 $160 $144 $158 $172 49%

Source: Data Base Products, Inc. (Outbound only)

Note: Northwest region includes WA, OR, ID, UT, MT, WY, CO
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityStrategic Plan 

– Implementation and Funding

12

Strategic Plan 

his Strategic Plan section provides a description of the goals of the project

and the plan to support those goals. This section also provides a 

description of the legal sponsor responsible for administering the program 

and the public-private partnership that has been formed to actively participate in 

implementing the proposed project. A detailed description of the funding 

necessary for implementation of the Strategic Plan, including federal and nonfederal contributions, is also included in this section.

Project Goals

BTM is in a difficult position. BTM’s passenger base will continue to erode if 

service is not seen as meeting the needs of catchment area travelers, and 

ultimately it risks losing all service if the current level of service through the EAS 

program is not maintained. The overall goal of the Strategic Plan proposed by 

Bert Mooney Airport Authority is to maintain and improve performance of existing 

EAS service to prevent further service reductions after the initial EAS agreement

ends. Maintaining EAS hub service from BTM is the top priority of the community.

Increased ridership is critical for maintaining and securing service at BTM and 

decreasing passenger diversion.

Proposed Air Service

To accomplish the goals of this SCASDP grant application, it is necessary to 

promote the value of flying locally after the change in service from subsidy-free to 

EAS on the existing Salt Lake City hub service. Funding a new aggressive 

service awareness campaign will accomplish the project goals by:

1. Educating the public on the benefits of local air service

2. Improve awareness of the existing flight schedule which will improve the 

performance of the EAS flights and reduce the need to use 

alternate airports

This Plan will help increase ridership via an aggressive new marketing campaign. 

The Strategic Plan proposed will achieve the communities’ goals and help 

address the air service needs of the Butte community.

Public-Private Partnership

Bert Mooney Airport Authority is the owner/operator of BTM and sponsor of this 

application. For the purpose of this application, the Bert Mooney Airport 

Authority, City/County of Butte-Silver Bow, Butte Local Development Corporation, 

and the Butte-Silver Bow Chamber of Commerce have formed a public-private 

partnership (refer to community support letters in Appendix A). Collectively, this 

T This section contains: 

• A Strategic Plan for 

maintaining and 

improving BTM’s air 

service 

• Description of the 

public-private 

partnership

• Designation of a legal 

sponsor

• Funding necessary for 

implementation of the 

Strategic Plan

• New project and goals 

for previous grant 

recipient
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityStrategic Plan 

– Implementation and Funding

13

partnership is committed to completing the Strategic Plan outlined 

herein. All partners in the public-private partnership will have an 

active role in the execution of the Strategic Plan (Table 5.1).

Bert Mooney Airport Authority will execute all federal grant offers, 

process all associated reimbursement requests, and oversee grant 

administration. The Bert Mooney Airport Authority along with the 

Butte-Silver Bow Chamber of Commerce will administer the 

marketing campaign. Butte Local Development Corporation, the 

lead economic development organization for Butte-Silver Bow and a 

lead in economic development for Southwest Montana and Montana 

as a whole, will act as the liaison between the business community 

and the air service initiative through direct marketing efforts (e.g. 

meetings, e-mail blasts). City/County of Butte-Silver Bow will assist 

with monitoring of the Strategic Plan and performance tracking.

Proposed Plan

To ensure sustainability and improve ridership, an aggressive marketing plan is 

needed. The $162,500 marketing campaign includes:

• A multi-media advertising campaign

• Presentations to business groups, civic organizations and Chamber of 

Commerce events

• Website and e-mail promotions

In the Butte market it will be essential to continue creating service awareness in 

the community and modify existing travel habits due to historically deficient 

schedules and high airfares. A lack of air service awareness can lead to EAS

failure and continued drive diversion. Most air carriers do not have the budget or 

staff to create and implement air service awareness marketing campaigns in 

small communities like Butte. The Strategic Plan proposes to use a

comprehensive air service retention marketing campaign to promote ridership on 

existing Salt Lake City hub service. The detailed marketing campaign is included 

in Appendix A and summarized below.

Marketing Goals

In the short term, the goal is to continue creating service awareness, promote the 

direct and indirect benefits of flying local, and change existing travel habits. To 

quantify the marketing campaign’s impact, service awareness will be measured 

by enplanements with the goal to increase enplanements to a level acceptable by 

Delta, a minimum load factor average of 65 percent for the first year of EAS

service. The load factor goal after the first 12 months of EAS is 70 percent.

TABLE 5.1 ROLES OF PUBLIC-PRIVATE 

PARTNERS

PUBLIC-PRIVATE 

PARTNER ROLE

Public:

Bert Mooney 

Airport Authority

Grant and marketing 

program administration; 

Strategic Plan monitoring

City/County of 

Butte-Silver Bow

Strategic Plan monitoring; 

performance tracking

Private:

Butte Local 

Development 

Corporation

Air service liaison to the 

community; foster 

community support for 

service

Butte-Silver Bow 

Chamber of 

Commerce 

Marketing program 

administration; Strategic 

Plan performance tracking
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityStrategic Plan 

– Implementation and Funding

14

Marketing Plan

Over an 18-month period, a variety of marketing messages will be used to 

achieve the goals. An aggressive multi-media program will be implemented to 

increase awareness. Of the advertising program funds, an estimated 45 percent

of the budget will be spent on television advertising, 37 percent on print media, 

12 percent on radio and the remaining six percent on direct marketing (Exhibit 

5.1). Other marketing services will be provided by the community partnership and 

include e-mail and website promotion.

Marketing Budget

It is anticipated that a $175,000 marketing and monitoring budget will 

be needed for an 18-month service awareness campaign. 

Approximately $162,500 of cash and in-kind contributions will be 

used to create the different forms of advertising, purchase ads, and 

raise awareness of EAS in the Butte market. The 18-month 

marketing program will include development and placement of ads 

through the various media outlets. Table 5.2 shows the marketing 

budget breakdown totaling $162,500.

Timeline

To evaluate the success of marketing efforts, passenger enplanements will be 

reviewed monthly. Since the goals are to improve existing service performance 

and increase use of the local airport, onboard passenger loads will be used as an 

indicator of success. Marketing efforts will begin as soon as possible after award 

of the SCASDP grant. At the end of each three-month period, enplanements will 

be reviewed with the Bert Mooney Airport Authority and the Butte-Silver Bow 

Chamber of Commerce to determine the success of the marketing efforts and, if 

necessary, make adjustments.

Strategic Plan Funding

Bert Mooney Airport Authority is seeking $150,000 of US DOT funding to be used 

as part of this Strategic Plan. The community will participate in the program by 

funding a portion of the marketing campaign (cash), performance monitoring 

(cash and in-kind), and program administration (in-kind). Table 5.3, next page,

provides the Strategic Plan budget broken down by element and sources of 

funding. The community will fund 14 percent of the total program. Butte-Silver 

Bow Chamber of Commerce will provide the non-airport funding of the 

cash requirement.

TABLE 5.2 MARKETING 

BUDGET

MEDIA BUDGET

Television $73,125

Print $59,875

Radio $19,500

Direct Marketing $10,000

Total $162,500

Television

45%

Print

37%

Radio

12%

Direct 

Marketing 6%

EXHIBIT 5.1 DIVISION OF ADVERTISING 

FUNDS
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityStrategic Plan 

– Implementation and Funding

15

TABLE 5.3 STRATEGIC PLAN BUDGET

DESCRIPTION

FUNDING SOURCE

TOTAL

US DOT AIRPORT NON-AIRPORT

CASH CASH IN-KIND CASH IN-KIND

Marketing campaign $150,000 $2,500 $5,000 $5,000 $162,500

Strategic plan 

staffing/monitoring $12,500 $12,500

Total $150,000 $2,500 $5,000 $12,500 $5,000 $175,000

Percent of total project 86% 1% 3% 7% 3% 100%

Percent of total cash 

contribution 91% 2% N/A 8% N/A N/A

Project Continuation and Sustainability

A further downturn in the economy could lead to lower than estimated load factor.

If at the end of the second six months of service (months seven through 12) the 

service does not attain a minimum of a 65 percent average load factor, BTM with 

the support of the community will extend the marketing campaign for the full 

second year of service (months 19 through 24) and will commit additional funding 

of $20,000 (cash and in-kind). The public-private partnership understands the 

importance of this project and will work to see it succeed.

Effective monitoring of the new service will be critical to gauging the success of 

the service and assess weakness. To be of aware of service performance, the 

public-private partnership will use a consultant to monitor BTM’s air service. After 

the SCASDP is awarded, the consultant will meet with public-private partnership

leaders to heighten awareness of the new service, describe the air service 

development program, and educate on the importance of protecting local air 

service. Once the Strategic Plan is in place, the consultant will analyze fare

relationships, monitor load factors, and help the sponsor gauge the success of 

the program.

Previous Grant Recipient - New Project and Goals

In 2004 and 2009, the US DOT awarded the Bert Mooney Airport Authority a 

SCASDP grant. The 2004 grant included the following project goals:

• Improve air service to a broad section of the traveling community

• Mitigate the need to drive long distances to access acceptable airfares

• Improve access to the national air transportation system

The primary focus of the 2004 grant was on research and included the following 

Strategic Plan elements:

• Market research – locally funded

• Research summary and next steps – locally funded

• Airline meetings – locally funded

• Air service support program – DOT funded
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityStrategic Plan 

– Implementation and Funding

16

The primary focus of the 2009 grant was on schedule improvement and included 

the following Strategic Plan elements:

• Improve service/schedule coverage to reduce passenger diversion

The 2009 grant award was subsequently recalled and returned to the US DOT 

due to the service being awarded a bid under the EAS program. Where the 

previous application’s goals were research and schedule improvement focused 

(e.g. research studies to understand the market’s needs and adding a third

frequency), this application’s goals are specifically focused on promoting 

existing EAS.

To accomplish the project goals, the Strategic Plan is focused on promoting 

existing Salt Lake City service under the EAS program. The Strategic Plan of this 

grant application uses a marketing program to increase ridership to Salt Lake 

City. This application qualifies as a new project with new goals and meets the 

requirements of the SCASDP. The 2004 and 2009 grants are closed.

This application 

qualifies as a new 

project with new goals 

and meets the 

requirements of the 

SCASDP.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthoritySchedule and Monitoring

17

Schedule and

Monitoring

he public-private partnership has developed a realistic timetable for 

implementation of the grant project. This section provides the schedule for 

implementation of the Strategic Plan. A monitoring program is also 

provided to track the progress of the grant project.

Schedule

The public-private partnership will develop the marketing campaign immediately 

following SCASDP grant award, anticipated in August/September 2012. The goal 

is to implement the marketing campaign no later than November 1, 2012. Timing 

of the marketing campaign is dependent on Strategic Plan funding and grant 

award. It is anticipated that the marketing campaign will continue for 18 months.

Monitoring Program

The monitoring program includes service performance tracking, assessing the 

effectiveness of the marketing campaign, and determining the impact of EAS on 

retention/diversion at BTM. The following will be completed to monitor the 

Strategic Plan:

Monthly:

• A review of aircraft departures, enplaned passengers, and load factors

will be completed monthly.

Quarterly:

• A comparison of average historical airfares will be made to prior 

quarters using US DOT airline reported data.

• Published airfares will be tracked to the top 20 destinations and 

compared to the surrounding drive diversion airport’s fares.

• Delta will be contacted to ensure expectations for service are being met.

Annual:

• Passenger retention/diversion information will be updated after the 

service has been in the market at least 12 months to determine the 

impact the service has had on retention/diversion at BTM.

T This section contains:

• How the community 

will monitor the 

progress of the project

• The schedule for timely 

completion of the 

project

The grant award date 

is the critical date for 

the rest of the 

Strategic Plan.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAppendix A. Marketing Plan

18

Appendix A. 

Marketing Plan

his marketing plan, sponsored by the Bert Mooney Airport Authority and 

managed by the Butte-Silver Bow Chamber of Commerce for promoting 

local BTM air service, has been developed to support the goal of this 

grant application: improve performance of existing EAS Salt Lake City service to 

prevent further service reductions in Butte

Marketing Plan Goals

Local travel habits represent a barrier that will limit the success of service in BTM

and need to be overcome. Consumer dissatisfaction with current air service has

built an ingrained reluctance toward using BTM. A large percentage of catchment 

area air travelers use an airport other than BTM (nearly half). Lack of adequate 

frequency and high fares have led to a high diversion rate for BTM catchment 

area air travelers. Given the catchment area’s remote location, diversion should 

be significantly lower. For example, Missoula International Airport, another 

isolated Montana community, has a much higher retention rate as a result of 

comparatively adequate air service and reasonable fares.

The new marketing campaign proposed in this application will do much to 

alleviate the usage issues plaguing BTM. However, travel habits will need to 

change for the EAS to be successful. A lack of air service awareness can lead to 

service failure and continued drive diversion. Without a marketing campaign, the 

new EAS will likely flounder. Most air carriers do not have the budget or staff to 

create and implement air service awareness marketing campaigns for air service 

improvement initiatives in small communities like Butte. As a solution to these 

issues, the public-private partnership has developed a marketing plan to change 

air traveler perceptions of flying locally. The marketing plan consists of a 

promotion campaign to raise awareness of the new service. The goals of this 

program will be achieved if the average load factor reaches at least 67 percent.

Marketing Partnership

To meet the goals of the marketing plan, the Bert Mooney Airport Authority has 

collaborated with local private organizations to develop a workable marketing 

plan. Three local entities and the US DOT have been assigned roles in the 

marketing plan. Bert Mooney Airport Authority will manage the logistics of the 

program estimated at $5,000 and fund $2,500 of media buys. Butte-Silver Bow 

Chamber of Commerce will fund the monitoring program and will manage the 

“above-the-line promotion program” (typical paid advertisements). Butte Local 

Development Corporation will be the liaison between the community and the air 

T This section contains:

• A detailed marketing 

plan for the Butte 

market including goals, 

partnerships, the target 

audience and the multimedia campaign.

The public-private 

partnership has 

developed a marketing 

plan to change air 

traveler perceptions of 

flying locally.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAppendix A. Marketing Plan

19

service development program. The Development 

Corporation will manage the “below-the-line promotion 

program” (e.g. direct marketing campaign, public 

relations). All three private partners will leverage their 

contacts and members to raise awareness of BTM

service locally and beyond. The US DOT grant award will 

be used to the majority of the marketing campaign. Table 

A.1 provides a brief description of each partner’s role in 

the marketing program.

Target Audience

The target audience for the marketing campaign will be travelers who would 

benefit from using the BTM, primarily business and leisure air travelers who 

reside in the BTM catchment area (Exhibit 2.1, page 3) will be targeted.

Marketing to travelers visiting the catchment area is a secondary target.

Promotion Campaign

The promotion campaign will raise awareness of the service available at BTM, 

and communicate the benefits of using the local airport for travel. The promotion 

campaign is designed around two components: above-the-line promotion (e.g. 

media advertising) and below-the-line promotion (e.g. direct marketing, 

public relations).

Above-the-Line Promotion

Advertising is a key part of marketing any service industry. The advertising 

program for BTM air service will be highly targeted, and will communicate the 

benefits of using local air service.

ADVERTISING CAMPAIGN CREATION

An advertising campaign will be developed to reach business and leisure 

travelers with key messages. The campaign will have several components and 

development will include:

• Creation of a tagline or slogan and logo that convey the most important 

message(s) for the target audiences

• Development of ad messages and concepts 

• Production of ads designed to incorporate into print, radio, and 

television advertising by the marketing partners

In addition to stand-alone ads promoting the service, a small “ad within an ad” (or 

tag-on ad) will be designed to piggyback onto ads promoting tourism, events, 

recreational or business facilities, and business throughout the service area.

TABLE A.1 MARKETING PARTNERS

ORGANIZATION RESPONSIBILITY

CASH 

FUNDING

Bert Mooney Airport 

Authority

Partial funding of 

marketing 

program

$2,500

Butte-Silver Bow Chamber 

of Commerce

Funding of 

monitoring 

program

$12,500

Butte Local Development 

Corporation

Manage nonmedia advertising $0

Total $15,000
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAppendix A. Marketing Plan

20

These cross-promotions with community marketing programs will communicate 

the availability and benefits of air service into and out of BTM. Radio and print 

ads will incorporate the same cross-promotional aspect as the print ads. 

ADVERTISING PLACEMENT

The partnership with key community leaders will be particularly beneficial to the 

marketing of BTM’s air service by providing cost-effective advertising 

opportunities. Advertising funding is earmarked for regional advertising 

campaigns, including newspapers, television, radio, and Internet advertising.

Appropriate publications/magazines by airlines with codeshare agreements with 

Delta Air Lines will also be targeted. Some of these may be co-sponsored by 

the Delta.

Print Advertising - Print advertisements will be placed with regional and local 

newspaper advertising within the service area, including the Montana Standard 

and Butte Weekly. Print advertisements may also run in state and regional 

visitors’ guides, recreational guides, and business guides.

Radio Advertising - Advertisements will run with local radio owned by Butte 

Broadcasting and Cheery Creek Radio. These stations include: KAAR, KMBR, 

KXTL, KBOW, KANA, KOPR, and KGLM.

Television Advertising - Advertisements will run on local television 

station KXLF.

Below-the-Line Promotion 

The private partners provide a wide range of communication vehicles for 

engaging and informing the audiences about BTM air service. Promotion efforts 

will actively target business travelers in the airport catchment area. Leisure 

travelers will be passively pursued. Active promotion activities will include a direct 

mail and e-mail campaign to business leaders in the community. BTM will also be 

promoted at meetings of the Chamber of Commerce, Local Development 

Corporation, and local service organizations. Passive promotion will take place in 

newspaper and television news editorials.

PROMOTION PLACEMENT - ACTIVE

The partnership with key community leaders will be particularly beneficial to the 

marketing of BTM air service by providing cost-effective public 

relations opportunities. The Chamber of Commerce and Local Development 

Corporation have online and/or printed newsletters that go to the business 

leaders in each community, a key target audience for air service, making these 

publications an effective means of communicating about air service in Butte. The 
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAppendix A. Marketing Plan

21

private partners have also agreed to feature information and news about BTM air 

service on their websites that they maintain to promote their communities.

The Butte Local Development Corporation will provide promotional materials to 

community partners and to businesses with headquarters and/or facilities in other 

regions, such as the Washington Companies, Northwestern Energy, MSE, Inc.,

and M.E.R, Inc., to educate and inform potential inbound travelers from these 

businesses about the availability of air service to Butte. A speakers’ bureau will 

be established to give presentations and provide informational materials at 

service club meetings and with key area businesses and organizations, 

especially as the air service improvements are launched.

In addition, the air service logo/tagline artwork will be transferred to a stamp that 

will be provided to community marketing partners, who can easily use it to crosspromote the air service with little effort and no cost to them.

The Butte Local Development Corporation will launch a targeted direct mail 

campaign to provide information and news about the air service to those who 

make the travel decisions for businesses and organizations in the service area.

PROMOTION PLACEMENT - PASSIVE

Passive below-the-line promotion will include a series of regular press releases 

and other information provided to regional media throughout the service area to 

keep the media and, subsequently, the public informed of the availability of air 

service at BTM, and the benefits of using the service. The media will be informed 

of and included in many of the community relations events and activities 

described in the active below-the-line promotion, including community events 

related to the air service.

The local newspapers, Montana Standard and Butte Weekly, will be targeted for 

regular communications. Local radio and television media will receive regularlyreleased information about BTM air service.

Editorial calendars for publications that reach the target audiences will be 

evaluated for potential news value, especially when they cover a topic that may 

refer to communities, businesses, or recreation within the service area, offering 

an opportunity to mention or promote BTM air service.

Throughout the year, promotional opportunities that arise will be used to crosspromote BTM’s air service. Examples include providing information and 

promotional materials to the public at visitor-related events like: the An Ri Ra 

Montana Irish Festival in August, the Fourth of July Freedom Fest, the National 

Folk Festival, and Evil Knievel Days which all draw thousands of visitors.
Application Under the Small Community Air Service Development Program

Bert Mooney Airport AuthorityAppendix B. Community Support

22

Appendix B. 

Community Support

ppendix B includes letters of support for Bert Mooney Airport Authority’s 

SCASDP grant application. Support letters were submitted by publicprivate partners, government entities, and members of the Butte 

community. The letters of support are included on the following pages of this 

Appendix A.

A This section contains:

• Support letters from 

members of the publicprivate partnership, 

government entities, 

and members of the 

Butte community.