Small Communities Air Service Development Program 

Grant Application 

Table of Contents 

Executive Summary.......................................................................................................................2

Sponsor ........................................................................................................................................2 

Community Partners ....................................................................................................................2 

Project Goals................................................................................................................................2 

Communities and Region Served .................................................................................................4

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

Fares and Market Leakage ...........................................................................................................7

Air Service History ........................................................................................................................9

Prior SCASDP Grant ..................................................................................................................10

Air Service Deficiencies and Goals.............................................................................................11

American Eagle Service to MIA................................................................................................11

Incumbent Air Carriers ..............................................................................................................12 

Previous Air Service Development Marketing Activities.........................................................14

Public-Private Partnership: GNV Air Service Task Force ........................................................14 

Proposed Two-Year Airline Marketing Campaign ..................................................................14

Project Monitoring and Grant Administration ........................................................................16

Sustainability................................................................................................................................17

Conclusion ....................................................................................................................................17

Exhibit A – Two Year Marketing Campaign............................................................................19

Exhibit B - Gainesville Regional Airport – Primary Service Area & Demographics ...........44

Exhibit C - Gainesville Regional Airport – Leakage Map .......................................................47

Exhibit D - Gainesville Regional Airport – Air Carrier History Charts................................48

Exhibit E - Gainesville Regional Airport – Airline Flight Frequency / Capacity as of August 

25, 2010..........................................................................................................................................51

Exhibit F – Community Letters of Support ..............................................................................53

American Airlines......................................................................................................................54 

University of Florida – Office of University Relations .............................................................55 

SantaFe HealthCare, Inc. ...........................................................................................................56 

Alachua County Tourist and Convention Bureau – Visit Gainesville.......................................57 

Gainesville Area Chamber of Commerce..................................................................................58 

Ocala/Marion County Economic Development Corporation ...................................................59 

Heart of Florida Regional Coalition ..........................................................................................60

Clear Channel Outdoor – Ocala / Gainesville Division.............................................................61 

The Gainesville Sun...................................................................................................................62 

WCJB-TV – ABC Affiliate .......................................................................................................63 

Gainesville Television Network – NBC and CBS Affiliate ......................................................64 

Entercom - WKTK-FM and WSKY-FM...................................................................................65 

University of Florida – Division of Multimedia Properties.......................................................66 

Asterisk Communications, Inc...................................................................................................67 

The Ocala Star Banner...............................................................................................................68 

The Florida Independent Alligator.............................................................................................69 

Page 1
Executive Summary 

Sponsor 

This application is sponsored by the Gainesville-Alachua County Regional Airport Authority 

(GACRAA). GACRAA was created by the Florida Legislature to operate the Gainesville 

Regional Airport for the benefit of North Central Florida. The nine member Authority is 

appointed by the City of Gainesville (5 members), Alachua County (1 member) and the State of 

Florida (3 members). The operation of the Gainesville Regional Airport is entirely selfsupporting. 

GACRAA is an eligible, legal entity with the staff expertise to administer this grant. 

GACRAA routinely contracts and administers federal and state infrastructure and planning 

grants worth millions of dollars annually. 

GACRAA undergoes an annual, independent audit of each project and has a solid history of no 

findings and completing projects on time. 

Community Partners 

GACRAA has close ties to the region that it serves. Along with outreach to local businesses, 

GACRAA works directly with economic development agencies in the region on air service 

priorities and marketing initiatives. These include: the Gainesville Area Chamber of Commerce; 

the Gainesville Council for Economic Outreach; The City of Gainesville Department of 

Economic Development, The Ocala/Marion County Chamber of Commerce and the 

Ocala/Marion County Economic Development Corporation. GACRAA is also a member of the 

technical advisory committee for the North Central Florida Regional Planning Council and 

represented on the Coordinating Board of the Heart of Florida Regional Coalition. 

Project Goals 

GACRAA requests federal aid in the amount of $190,000 to assist with a comprehensive 

advertising and public awareness campaign. 

The program aims to promote American Eagle service to Miami (MIA) scheduled to begin 

October 1, 2010 as well as the existing service offered by our two incumbent carriers, Delta 

Connection service to Atlanta (ATL) and US Airways Express service to Charlotte (CLT). 

Long-awaited service by American Eagle to MIA fills an important niche and is expected to 

stimulate local air service demand. It is also hoped to have a very positive effect on area 

economic development. American Eagle provides a unique, third hub option and much desired 

Page 2
connection to the population and cultural centers of south Florida, Latin America and the 

Caribbean. 

Competitive, convenient, commercial air service is vital to maintaining employment and 

continued economic growth in North Central Florida. Surrounding hubs are simply too far from 

regional commerce centers to adequately serve the local business community. 

GNV leaks approximately 85% of potential traffic from its catchment area to competing hubs. 

Our research indicates many potential travelers are not adequately acquainted with the level of 

service, competitive fares and potential savings in time, mileage, tolls and parking fees offered 

by their regional airport. 

The recapturing of a significant number of leaked passengers supports additional capacity and 

frequency, perhaps by larger, more fuel efficient aircraft. Either service improvement would 

serve to further stimulate the market. 

GACRAA has constructed a two-year advertising and promotional campaign aiming to achieve 

the following two goals: 

1. A minimum average of 90 passengers per day on American Eagle’s GNV to MIA service 

for the last six months of the program. This represents 70%+ load factor on twice daily 

ATR72 aircraft configured for 64 passenger seats. 

2. A combined increase of 80 enplaned passengers per day for Delta Connection and 

USAirways Express (40 per day each) averaged over the last six months of the program. 

This represents a 21% increase in total enplanements over our CY2010 forecast and 23% 

increase over CY2009 average daily enplanements (per FAA -ACAIS). It is anticipated 

that this increased demand will result in either an upgrade from 50-seat to 70-seat aircraft 

on four flights per day or additional frequency of two flights per day aboard regional jet 

aircraft or some combination of the above. 

The above goals are specific, easily measured by airport management and easily confirmed 

through DOT/FAA sources. 

Fares offered by all three airlines are now among the most competitive ever offered at GNV vs. 

competing hubs. This affords us a unique, but timely opportunity to raise awareness, recapture 

leaked traffic and solidify airport support through a carefully designed marketing campaign. 

GACRAA has a golden opportunity to achieve affordable and sustainable service to MIA and a 

third hub connection via American Airlines. Most all local organizations, including GACRAA 

have been negatively impacted by the economy, which is putting substantial pressure nonessential budget items. While GNV employs a number of very effective, low cost marketing 

techniques, our advertising budget is less than $37,800 annually. Public awareness is key to the 

success of this venture, which begins on October 1, 2010. Award of this SCASDP grant would 

be perfectly timed, and in our view, has a high probability of success. 

Page 3
Communities and Region Served 

The Gainesville Regional Airport (GNV) primarily serves the citizens of Gainesville and 

Alachua County, the City of Ocala and parts of Marion; Bradford; Clay; Columbia; Gilchrist; 

and Levy counties. In 2008, The Boyd Group calculated that GNV’s primary service area 

included 914,000 persons and generates approximately 1.2 million annual enplanements. 

Demographic data of the catchment area is shown in Exhibit B. 

Gainesville Regional Airport’s Total Catchment Area and Primary Target Market 

Primary Target Market 

Total Catchment Area

Downtown Gainesville is located 4.9 miles from 

GNV. The City of Gainesville has a population of 

124,491. (2008 UF estimate) and The Gainesville 

MSA includes Alachua and Gilchrest counties and 

has a population of 261,000 (2009 est.). Downtown 

Ocala is approximately 42 miles from GNV. The 

City of Ocala has a population of 54,801 (2008 est.). 

The Ocala MSA includes Marion County and has a 

population of 328,000 (2009 est.). 

Unlike many Florida locations, the North Central 

Florida is not a major tourist destination. Arriving 

passengers are mainly traveling on business or have 

ties to local communities. While GNV’s catchment 

area generates nearly a million potential air travelers 

annually, it covers a large area and most communities 

are relatively small and well dispersed. Gainesville 

and Ocala are, by far, the regions two largest cities. 

Gainesvill

e 

Ocala 

Gainesville and Ocala Metropolitan 

Statistical Areas 

Page 4
Gainesville is home to the University of Florida, one of the nation’s top universities with a 

student body of over 50,000 students. The area is a leading center for medical research, 

advanced and critical medical care, engineering specialties and insurance services. The area is 

also experiencing a budding bio-technology industry. 

Ocala is a regional center for manufacturing and distribution including specialty vehicles, 

aerospace and building products. It is also home to some of the most productive thoroughbred 

horse farms in the world. 

Competitive, convenient, commercial air service is vital to maintaining employment and 

continued economic growth in North Central Florida. Surrounding hubs are simply too far from 

regional commerce centers to adequately serve the local business community. 

4 4

4

Drive Times from downtown 

Gainesville to Other Airports 

Jacksonville International Airport 

(JAX) 

Orlando International Airport (MCO) 

124 miles, 2 hr. 15 min. 

Tampa International Airport (TPA)

136 miles, 2 hrs. 25 min. 

4 4

4

Drive Times from downtown 

Ocala to Airports 

Jacksonville International Airport 

(JAX) 

Orlando International Airport (MCO) 

86.5 miles, 1 hr. 25 min. 

Tampa International Airport (TPA)

103 miles, 2 hrs. 

Page 5
Existing Air Service 

GNV is currently served by two regional carriers averaging 10 daily departures, combined. 

US Airways Express (operated by Piedmont Airlines) provides 26 flights weekly to US Airway’s 

Charlotte hub. Aircraft load factors average approximately 83% for the 2nd quarter of 2010. 

Delta Connection provides 44 flights weekly to Delta’s Atlanta hub aboard 50 seat Canadair 

Regional Jet aircraft. Aircraft load factors average approximately 90% for the previous twelve 

months. 

American Eagle (operated by Executive 

Airlines will begin twice daily service to 

American’s Miami hub on October 1, 2010. 

The service will average 128 seats daily aboard 

64-passenger ATR72, turboprop aircraft. The 

ATR72 was operated by successfully from 

GNV by Delta to ATL for many years. It has 

good customer acceptance vs. other, smaller 

turbo-props. 

GACRAA has provided a two-year incentive 

package worth $207,800 to American Airlines 

to assist with start-up costs. These include 

waiver of landing fees and exclusive use 

counter and office space and marketing support. 

The community was unable to provide any 

revenue guarantees. 

Miami 

Beginning October 1, 2010 

Atlanta 

Charlotte 

Gainesville 

Page 6
Fares and Market Leakage 

The average net One Way fare from GNV in the first quarter of 2010 was $200.90 vs. $165.97 

nationally, 21% above the 

national average. GNV’s 

average one-way fare 

differential for CY2009 

was $47.77 vs. the 

national average 

(Aviation Data Miner –

Boyd Group). GNV 

experiences significant 

leakage to Orlando 

(MCO), Jacksonville 

(JAX) and Tampa (TPA). 

GNV leaks the largest 

number of passengers to 

MCO. Orlando is the 

region’s foremost tourist 

gateway with vigorous 

competition and the 

lowest per passenger 

yields in the Southeast. All of these competing airports are intensively served by low cost 

carriers (LCCs). The GNV fare differential with these LCC’s, particularly on shorter notice 

travel, is much greater than the national average differential. 

GNV’s catchment area has a population of almost 1 million and generates 1-1.2 million annual 

enplanements (Boyd Group Study, 2008). Leakage to GNV’s top 100 destinations is estimated 

at 79.2%. Ticket yields from large, competing airports are among the lowest in the southeast, 

which affects potential yields and profitability from GNV. While these competing airports may 

offer lower fares and considerable air service options, they are not conveniently located, 

particularly for business travelers. Survey data indicates that while our citizens prefer the ease of 

flying from GNV, many “leak” in search of discount fares and direct flights. 

The MSA’s of Gainesville and Ocala have a combined population of 589,237. GNV market 

share and enplanements have been declining however, due to high fares and limited flight 

options. Taking into account the population density and the proximity of competing airports, 

GACRAA believes GNV should capture at least 0.55 enplanements per person in the combined 

MSA. This amounts to 324,080 passengers per year. We believe this is an achievable level 

which will support the intensity of air service desired by the business community. 

Page 7
Gainesville Regional Airport

Specific Leakage Rates

Top 25 Markets

0

10,000

20,000

30,000

40,000

50,000

60,000

ATL LGA PHL ORD BOS DCA BWI EWR LAS DFW LAX JFK DEN IAD DTW BNA MSP SEA SFO PIT PHX IND BDL ORF STL

Passengers Lost Annually

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Percentage Lost

PAX Lost % Lost

GNV leaks over 900,000 passengers 

annually to the top 100 markets.

Leakage to Gainesville Regional Airport’s Top 25 Markets 

Yield and Fare Comparison Table 

Enplaned 

Passengers - Year 

Ending March 31, 

2010 

Average 

OneWay 

Fare 

Change 

vs. 

Prior 

Year 

Fared 

Avgerage 

Yield 

Change 

vs. 

Prior 

Year 

Airport 

117,260 $200.03 -6% 18.11 

t

Gainesville, FL -6% 

13,135,050 $125.52 -6% 11.29 

t

Orlando, FL -6% 

2,537,050 $142.73 -3% 13.95 

t

Jacksonville, FL -4% 

6,961,430 $133.04 -4% 12.09 

t

Tampa, FL -5% 

GNV Comparison to Similar SE R i l 117,260 $200.03 -6% 18.11 

t

Gainesville, FL -6% 

186,160 $179.30 -15% 18.22 

t

Tri Cities, TN -17% 

180,400 $217.67 -11% 21.04 

t

Augusta, GA -11% 

152,430 $238.50 -7% 22.87 

t

Montgomery, AL -6% 

115,490 $239.64 0% 19.71 

t

Jacksonville, NC 0% 

Melbourne, FL 114,980 $179.67 -5% 15.47 -5% 

t 16.44 

t

New Bern, NC 109,330 $188.77 -6% -7% 

Mead & Hunt, Inc. 

Page 8
Air Service History 

Despite continued growth in population and demand for air service, air traffic has generally 

declined since the decline and eventual cessation of Eastern Airlines service in 1991. EA 

provided mainline service to its Miami hub and consistently enplaned more than 10,000 

passengers per month until1989. Eastern was the dominant carrier at GNV for many years. 

Since then, several carriers have provided South Florida service utilizing 19 seat turbo-prop 

aircraft and smaller piston engine aircraft. Service was conducted under code share 

arrangements with US Air and Continental Airlines and without code share arrangements. These 

services tapped a small niche market only. While the public has a strong desire for South Florida 

service, these smaller aircraft did not have good public acceptance and the services did not offer 

significant connecting opportunities. We believe EA’s previous success carrying large numbers 

of passengers to their Miami hub bodes well for American Eagle MIA hub service. 

At its peak in 1990, GNV enplaned 216,724 passengers and was serviced by seven different 

carriers. (Please see carrier history shown in Exhibit D.) Delta mainline service began in early 

1991 and was very strong until 1997. DL mainline service to ATL was phased out in 1998, in 

favor of concurrent Delta Connection service provided by Atlantic Southeast Airlines. USAir 

introduced mainline service to CLT in 1989. Likewise, mainline service was discontinued in 

favor of concurrent US Air Express Service (operated by Mesa Airlines) in 1994. 

Since the ascendance of the LCC’s, Gainesville’s trend has been one of declining enplanements 

and consolidation. Today, only two carriers remain and commercial enplanements have 

stabilized at around 130,000 per year. 

Gainesville Regional Airport

Enplanement History

1961 - 2009

0

50,000

100,000

150,000

200,000

250,000

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

ENPLANED PASSENGERS

Delta Connection and 

Piedmont Airlines enter 

GNV (10/1/85)

Delta mainline 

starts (6/1/91)

Eastern Airlines terminates 

service (1/18/91)

Continental 

Connection and 

Northwest Airlink enter 

GNV (Sept. 2004)

Northwest Airlink exits 

GNV (May 2006)

Continental Connection 

exits GNV (June 2007)

US Airways 

eliminates mainline jet 

service to CLT 

(11/1/93)

Eastern Airlines begins 

service to GNV in 1950

Delta eliminates 

mainline jet service to 

ATL (12/6/97)

Page 9
Prior SCASDP Grant 

GACRAA was previously awarded a $660,000 SCASDP grant in September of 2003. The 

project goals were as follows: 

1. Provide additional frequency and destinations 

2. Bring airfare relief to Gainesville 

Project components included revenue guarantees, awareness, advertising, promotion and 

communications, airline meetings and site visits, common-use ticketing kiosks, and airline 

equipment and rolling stock. 

GACRAA proceeded to prepare route analyses and forecasts of underserved hub markets and 

arranged meetings with top airline prospects. Air Service agreements were executed with two 

new entrants, Northwest Air Link service operated by Pinnacle Airlines and intrastate service 

provided by Gulfstream International Airlines. 

Northwest Airlines began twice per day GNV-MEM service in September 2004, utilizing 50 seat 

CRJ aircraft. Response to the service was strong, resulting in lower overall fares and a 20% 

increase in enplanements at GNV. Northwest generated 80%+ load factors to Memphis (MEM) 

during the fourth quarter of 2005 through April 2006. Service was terminated when Northwest 

repositioned regional jet aircraft to replace larger aircraft types in larger markets. Northwest 

explained to GNV management that they were pleased with the load factors from GNV but that 

financial conditions required the company to retract routes and focus on traditional core markets 

in the Midwest. Northwest filed for Chapter 11 bankruptcy protections on September 14, 2005. 

As Northwest eventually merged with Delta, the dominant carrier at GNV, MEM service was not 

likely to continue regardless of the outcome. 

Gulfstream International Airlines secured a code sharing arrangement with Continental Airlines 

and began GNV-MIA service with three round trips per weekday and one on Sunday. The 

airline also provided two round-trips per weekday to TPA. All service was provided by 19 

passenger, EE1900D aircraft. Gulfstream exited GNV in June of 2007. Gulfstream management 

cited high fuel and operating costs as the primary reason for termination. Aircraft were 

repositioned to serve EAS subsidized routes in Pennsylvania and elsewhere. High operating 

costs resulted in higher than anticipated O&D fares to MIA. In addition, poor acceptance of the 

Be1900D aircraft and Continentals very limited connections from MIA and TPA resulted in 

lackluster demand. Most flights required two stops, which is unacceptable to most travelers. 

Although the service was highly valued by a small segment of local business travelers, we 

believe it captured only a fragment of the GNV-MIA potential. American’s use of larger 

ATR72 aircraft, its extensive hub connections in MIA and its intention to be competitive with 

service from surrounding hubs, should allow AA to capture a large share of demand. The full 

amount of the SCASDP grant was essentially expended and the grant was terminated. 

Page 10
GACRAA considers the project to be an unqualified success. The project goals were met but 

outside factors led to eventual cessation of services. Load factors on the GNV-MEM route were 

strong. Competition from a third hub carrier decreased air fares across the board and traffic 

increased by 20%. 

Air Service Deficiencies and Goals 

American Eagle Service to MIA 

South Florida is one of the regions top travel destinations and has been a priority of our air 

service development efforts for many years. GACRAA has received numerous requests and 

support letters for MIA service (see attached). While the primary mode of travel to south Florida 

is by automobile, drive-time to Miami is in excess of 5 hours. Our community has actively 

courted American Airlines since 1995. Now that American Eagle MIA service has been 

announced, we must make every effort to ensure it becomes profitable quickly, as it may be 

many years before we have the opportunity again. 

Several regional employers have facilities and business interests in south Florida and vise versa. 

The University of Florida has more than 51,000 students, 18,000 employees and alumni from 

130 countries. A large percentage of these live or have ties in the Miami area. The University 

also has significant relationships with institutions in Latin America and the Caribbean. Many 

associated with the University have an interest in scheduling and attending conferences, 

activities and major sporting events in Gainesville, but the drive time from the Miami area can be 

prohibitive. 

Page 11
Incumbent Air Carriers 

GNV’s Delta Connection and US Airways Express carriers both utilize 50-seat, Canadair 

regional jet aircraft. Both airlines currently enjoy good load factors from GNV, but operating 

costs for 50 seat aircraft remain high and profitability is greatly affected by spikes in fuel prices. 

Also, airline yields at GNV are significantly lower than many other smaller communities in the 

southeast. This is due in large part to the fierce competitive environment at surrounding hubs 

within driving distance (albeit inconvenient) of GNV. 

The future of 50 seat aircraft may be in doubt due to their high cost per seat mile. These small 

units of capacity offer a limited number of discounted seats, putting GNV at further 

disadvantage. 

GACRAA believes the community must support service by larger, more fuel efficient aircraft at 

acceptable frequencies in order to ensure stable, effective and profitable air service in the future. 

In 2007, GNV lost daily service to Miami by Continental Connection (operated by Gulfstream 

Airlines) due to high fuel and operational costs associated with its 19 seat, BE-1900 aircraft. 

Gulfstream chose to relocate these aircraft to EAS subsidized routes in Pennsylvania and the 

Northeast. 

GNV leaks a disproportionate number of passengers travelling to the Midwest, Mid Atlantic and 

New England regions. With their higher population densities, these regions have been identified 

as a good opportunity for our incumbent carriers to garner additional traffic. More capacity with 

additional discount seating is necessary to capture this market. 

Gainesville Regional Airport

Average Annual Load Factors by Fiscal Year

FY 2005 - 3Q FY2010

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

FY2005 FY2006 FY2007 FY2008 FY2009 1Q FY2010 2Q FY2010 3Q FY2010

Total Enplaned and Deplaned

All Airlines

Page 12
Gainesville Regional Airport

Load Factor by Airline FY2005 - 3Q FY2010

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

FY2005 FY2006 FY2007 FY2008 FY2009 1Q FY2010 2Q FY2010 3Q FY2010

Total Enplanded and Deplaned

Delta US Airways Northwest Continental

With present GNV load factors in excess of 85%, it is anticipated that a modest increase in 

demand will result in one or more of the following from Delta and US Airways Express. 

4 Enable the use of larger, more fuel efficient aircraft, i.e. 70-seat regional jets or 

narrow body aircraft, one or more flights to ATL and CLT. This is important to 

continued service viability. These aircraft also have greater acceptance by passengers 

and their use should further stimulate the market. 

4 Provide additional flight frequency. This will result in reduced connection times, 

reduced overall travel time and more convenient travel options, which should further 

stimulate the market. 

4 Improve load factors for existing service. Maintaining viability of airline service to 

smaller communities is very difficult, particularly in the current economic and 

competitive environment. A successful advertising and public awareness campaign 

will serve to make all of our carriers financially stronger and less likely to exit the 

market. 

While the region is best served by, and is best able to support service to large system hubs, 

consumers prefer the reliability of direct service. Significant traffic gains may also assist us in 

our efforts to attract direct GNV service to select O&D markets. Potential destinations include 

the New York area, Baltimore/Washington area, Boston, Dallas and Philadelphia. 

Page 13
Previous Air Service Development Marketing Activities 

Over the past five years GACRAA has been very focused on air service development, despite the 

weakened economy. GACRAA employs a full-time marketing professional to design and 

execute advertising and public awareness programs. These include mass media advertising, web 

advertising, promotional materials, area trade shows, special events, visits to major employers 

and outreach to community and civic organizations. The airport has employed some unique, 

low-cost but effective techniques to reach air travelers. 

GACRAA has a “Low Fare Alert” system that continually e-mails over 7,000 voluntary 

subscribers. Subscribers are notified of discount fares available from GNV to popular 

destinations. 

GACRAA has also implemented a “GNV Road Warrior” program that encourages frequent 

business travelers to register their trips, be recognized, and comment on local service needs and 

amenities. This program serves to encourage loyalty and repeat business. 

Airport staff works closely with area agencies and Chambers of Commerce to survey citizens 

and business to better identify travel patterns and preferences. Survey data is combined with 

data from professional air service consultants to prepare and present proposals to major airlines. 

Both the airport CEO and Marketing and Public Relations Manager, and even Authority 

members make visits to airline headquarters and attend popular airline networking meetings to 

present air service proposals. 

While GACRAA employs a number of very effective marketing techniques, its total advertising 

budget is only about $24,000 annually. Airport resources have been greatly impacted by the 

economy and are putting substantial pressure on marketing and non-essential budget items. 

Public-Private Partnership: GNV Air Service Task Force 

With the assistance of the Gainesville and Ocala Chambers, the airport organized an air service 

task force responsible for helping promote air service in the region. The Task Force was created 

in March of 2010. Members consist of some of the airport’s most frequent fliers and leadership 

at economic development agencies in Alachua and Marion Counties. Members represent 

companies and organizations, including the numerous departments, colleges and organizations 

affiliated with the University of Florida. Exactech, RTI Biologics, GE Healthcare, AvMed 

HealthPlans and a growing number of technology companies in the area participate in this 

grassroots effort to improve and promote regional air service. Additionally, Ocala is well 

represented with members from the Chamber, Economic Development Corporation, the Ocala 

Star-Banner and several financial institutions. All of the organizations assist with delivering key 

air service messages and news to their members and contacts (internet sites, publications, e-mail 

blasts, and community outreach). 

Proposed Two-Year Airline Marketing Campaign 

The proposed marketing campaign encompasses $270,150 annually in advertising for 

Gainesville Regional Airport’s new air carrier, American Airlines, and the existing carriers, 

Delta Air Lines and US Airways. Approximately half ($135,075) will be dedicated to the 

promotion of the new American Eagle GNV-MIA service and half will be used to promote all 

Page 14
three airlines. Additionally, the local media outlets have donated $106,000 in advertising to help 

promote the new American Eagle GNV-MIA route and our existing air carriers (Appendix B). 

VisitGainesville (VCB) has dedicated $25,000 cash to advertise the new service, and the 

University of Florida (UF) and AvMed HealthPlans are providing combined $20,000 cash 

contribution (Appendix B). Marketing efforts also include barter agreements ($19,150) between 

the airport and media outlets/organizations to promote air service. 

The proposed campaign would begin in January with marketing efforts continuing year-round for 

two years. The Audiences targeted include the primary market area in Gainesville, the University 

of Florida population (faculty, staff, students, alumni and visitors), the business community, 

higher-income households and retirement communities in the Ocala market. There is significant 

potential to recapture business and leisure traffic in Marion County. Efforts targeting UF will be 

concentrated in the Spring and Fall of 2011 and 2012, the busier periods of the year for the 

Gainesville area. Traffic associated with the University of Florida semesters and sports activities 

presents the opportunity to reach more people (business and leisure travelers) in Gainesville and 

recapture traffic in the primary market area currently lost to airports in other cities outside of 

GNV’s market. While marketing initiatives will focus on those time periods, efforts will 

continue year round and will also include counties surrounding Gainesville and Alachua County. 

A wide range of media outlets will be used to diversify marketing efforts, including print, radio, 

television, outdoor advertising, new media to include web and social media, UF campus 

advertising and event outreach (Exhibit A). The frequency of advertising and variety of outlets 

will successfully reach a broad spectrum of demographics with an emphasis on reaching business 

travelers, high-income households and the UF population. Radio and television coverage areas 

and outdoor advertising will reach counties surrounding Gainesville including Marion County 

(Exhibit A). 

Total Two-Year Public Awareness Campaign $565,300 

 

Summary of Community Support 

University of Florida (cash for AA marketing support) $15,000 

AvMed Health Plans (cash for AA marketing support)) $5,000 

Airport marketing support for all airlines ($40,000/yr x 2 years) $80,000 

Total Community Cash Match $100,000 

 

Media Advertising Match (in-kind) $212,000 

Visitors and Convention Bureau Miami market advertising for AA $25,000 

Barter agreements (advertising trades with airport) $38,300 

Less total community support of campaign $375,300 

Federal Funds Requested $190,000 

 

Please Note: Additional Airport Support of American Airlines 

Service 

Fee abatement for American Airlines ($103,900/ yr x 2 years) $207,800 

(landing fees and exclusive use terminal space) 

* See complete program details in Exhibit A. 

Should American Eagle Terminate Service before the Marketing funds publicizing their service 

are expended, the remaining portion of the DOT funds for this item would be returned. 

Page 15
GACRAA would propose to continue the portion of the marketing program promoting 

incumbent carriers and GACRAA will supply the local match. 

Project Monitoring and Grant Administration 

GACRAA staff will administer this grant. The current staff has experience with more than thirty 

million dollars of infrastructure and planning projects over the last seven years with individual 

projects ranging from a few thousand dollars up to approximately $11 million. This includes the 

previous SCASDPP grant which was billed out in 2005. A separate account will be set up for 

this project and all project invoices will be approved by three staff members prior to payment. 

These include the Project Manager, the Grants and Contracts Administrator and the Airport 

CEO. All records and documentation will be kept and provided to the DOT in accordance with 

the grant agreement. 

The Project Manager will prepare monthly progress reports, reimbursement requests and other 

data and reports as required by DOT. 

Progress reports shall include the following: 

4 Status report on all marketing activities undertaken, including purchases of 

advertising time, target market/message and coverage, run schedules and invoices. A 

summary report of all special events attended and promotional activities will be 

included. The Project Manager shall keep copies of advertisements, scripts, 

recordings, etc. and submit samples to DOT as required. Expenditures and materials 

for activities supporting American Eagle MIA service will be separated and tracked 

separately from those supporting all three carriers. 

4 Status of community support funds and in-kind contributions 

4 Status report of current air service flight schedule and equipment capacity with any 

changes from the previous month highlighted. 

4 Status report on changes in passenger enplanements by carrier and by individual 

flight 

4 Enplanements as of the beginning of the project shall be compared with monthly 

statistics from at least two years prior. 

4 Feedback and comments received from customers regarding the adequacy of the new 

American Eagle service, including fares, schedules, equipment and customer service. 

4 Status report on progress to secure additional air service capacity, to include airline 

meetings, site visits and communications. 

4 Any other items required by DOT. 

Should American Eagle Terminate Service before the Marketing funds publicizing their service 

are expended, the remaining portion of the DOT funds for this item would be returned. 

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GACRAA proposes to continue the marketing program for the incumbent carriers and GACRAA 

will supply the local match. 

Sustainability 

As noted, GNV’s catchment area has a population of almost 1 million and generates 1-1.2 

million annual enplanements (Boyd Group Study, 2008) The MSA’s of Gainesville and Ocala 

have a combined population of 589,237 and have been growing in excess of the state average. 

Estimated leakage from the catchment area for calendar year 2009 is 87% and estimated leakage 

from the combined MSA is 78%. GNV needs only to capture a small portion of this leakage to 

sustain its marketing program. 

Should GACRAA reach its project goals of 80 additional passengers per day on existing carriers, 

plus 90 passengers per day on future American Eagle service, total added enplanements would 

be 62,050 annually. This is an increase of 48.8% above CY2009 levels and 44% above projected 

2010 enplanements. Please recall that Northwest’s entry in 2004 with twice daily MEM service 

created a sustained increase in enplanements of more than 20% with 80+% load factors at 

termination. We believe American Eagle service to MIA has even greater potential due to the 

unique connections available from MIA and the high O&D demand that exists between the two 

communities. 

GACRAA is able to accommodate the anticipated increase in passengers without a proportionate 

increase in operating costs. GNV derives approximately 42% of its annual operating revenue 

from automobile parking fees and rental car concessions. If successful, the gross revenue from 

these activities is conservatively expected to rise by $500,000 - $600,000 per year. Should 

GACRAA achieve only one of its goals, the resulting revenue increase will allow us to 

significantly increase our advertising budget and continue the public awareness campaign. 

Community media outlets have noted that they will continue to support us with local match and 

“in-kind” services. 

Conclusion 

GACRAA is seeking federal funds in the amount of $190,000 to assist with a comprehensive, 

two-year public awareness campaign. GACRAA has a treasured opportunity to achieve 

affordable and sustainable service to MIA and connection to a third hub. Public awareness is 

key to the success of American Airlines venture, which begins on October 1, 2010. The proposed 

PA campaign also aims to assist our existing carriers capture substantial traffic lost to larger 

airports. Most local organizations, and particularly GACRAA, have been impacted by the slow 

economy, which has put substantial pressure non-essential spending. While GNV employs a 

number of very effective, low cost marketing techniques, our advertising budget is less than 

$37,800 annually and cannot effectively reach our intended audience. GACRAA has therefore 

enlisted the assistance of a number of organizations, businesses and media outlets to provide 

federal match and assist with a comprehensive public awareness campaign. The project can be 

readily accomplished as the carrier is already secured. American Eagle has announced service 

and a detailed marketing plan has already been developed. The contract can be efficiently 

administered as well. GACRAA has considerable experience as a grant sponsor and our request 

is for marketing support only. No revenue guarantees are required and GACRAA has already 

Page 17
committed to providing all other incentives over the two-year period. Award of this SCASDP 

grant would be perfectly timed, and in our view, has a high probability of success. 

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Exhibit A – Two Year Marketing Campaign 

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Gainesville Regional Airp

Two-Year Marketing Plan 

Exhibit A
QuartersMonth Jan. Feb. Mar. Apr. May June July Aug. SepOutdoor Advertising - Gainesville & OcalaRadio - WSKY & WKTKRadio - WXJZ, WBXY, WKZYRadio WUFT & WRUFTV - WCJB, WGFL, WNBW, Cox CableAlligator - Student NewspaperGainesville Sun and gainesville.com (print and online) Ocala - (newspaper, retirement comm, magazines)North Central Florida Business ReportPhonebooks and UF Directory/Guide

Quarter 1 Quarter 2 Quarter 3 

Marketing Campaign Annual Schedule

OutdoorPrint/NETRadioTVDirectory

(Duplicate Year 1 in Year 2)
Marketing Campaign – Funding Details

Public Awareness Campaign Program Budget Year 1 Year 2 Cash ExpendituresClearchannel Outdoor (Gainesville & Ocala) $20,000 $20,00

North Central Florida Business Report (print) $4,000 $4,00Ocala - magazines (high-income households) $4,000 $4,00Ocala - retirement communities (newsletters/outreach) $2,000 $2,00Phonebooks,UF Directory/Guide,Chamber Guides $2,000 $2,00The Alligator - Student Newspaper $10,000 $10,00The Gainesville Sun (newspaper) and gainesville.com $10,000 $10,00The Ocala Star-Banner $6,000 $6,00TV20 WCJB with production $10,000 $10,00TV - WGFL CBS-4, WNBW NBC-9 & Cox $20,000 $20,00Radio - WKTK & WSKY $10,000 $10,00Radio - WUFT Public Radio, WRUF Rock 104 $15,000 $15,00Radio - WXJZ Jazz, WBXY news/talk, WKZY $10,000 $10,00Misc. (Newsletter printing, Web site updates, etc.) $2,000 $2,00Social Media outlets $4,000 $4,00On-campus advertising $8,000 $8,00Events & Promo items (on and off-site outreach) $8,000 $8,00

Total $145,000 $145,00

Proposed GACRAA Contribution ($40,000) ($40,00

Community Contribution ($10,000) ($10,00

Total Cash Contributions ($50,000) ($50,00

Federal Share Requested $95,000 $95,00
Community Support and Total Amount

Media Outlet Match Annually (in-kind)Clearchannel Outdoor (Gainesville & Ocala) $20,000 $20,000The Alligator - Student Newspaper $10,000 $10,000The Gainesville Sun (newspaper) and gainesville.com $10,000 $10,000The Ocala Star-Banner $6,000 $6,000TV20 WCJB with production $5,000 $5,000TV - WGFL CBS-4, WNBW NBC-9 & Cox $20,000 $20,000Radio - WKTK & WSKY $10,000 $10,000Radio - WUFT Public Radio, WRUF Rock 104 $15,000 $15,000Radio - WXJZ Jazz, WBXY news/talk, WKZY $10,000 $10,000Total Match Annually from Outlets $106,000 $106,000 $212,00Barter AgreementsUF Performing Arts $3,000 $3,000Hippodrome State Theater $1,650 $1,650Home Magazine - high income households $2,400 $2,400Gainesville Today Magazine 1/8 page - high income $4,200 $4,200Good Life Community Magazine $2,000 $2,000CBS WGFL $3,500 $3,500WSKY $2,400 $2,400Total Trade Annually $19,150 $19,150 $38,30Miami Market Advertising for American Eagle to GNV ServiceAlachua County Visitors and Convention Bureau $25,000 $25,00Total Public Awareness Campaign $295,150 $270,150 $565,30
Community Support and Total Amount

Total Two-Year Public Awareness Campaign Summary of Community Support University of Florida (cash for AA marketing support) AvMed Health Plans (cash for AA marketing support)) Airport marketing support for all airlines ($40,000/yr x 2 y

e 

Total Community Cash Match Media Advertising Match (in-kind) Visitors and Convention Bureau Miami market advertisin

g 

Barter agreements (advertising trades with airport) Total community support of campaign Federal Funds Requested Please Note: Additional airport support of American Airlines servFee abatement for American Airlines ($103,900/ yr x 2 ye

a 

(landing fees and exclusive use terminal space)
Outdoor Advertising – Clearchannel for Oca

• Ocala typical 2
Outdoor Advertising – Clearchannel for Gai

• Gainesville typic
Radio – WSKY & WKTK

WKTK includes 

the larger circle 

and WSKY covers 

the smaller 

circle. 

• WSKY and WKTK have 

179,000 listeners! 

• Both stations have large 

coverage areas that more than cover the airport’s market area.

• They are widely known 

as a regional radio station covering North Central Florida.

• They also reach key 

audiences the airport is targeting (next slide).
Radio – WKTK demographics
Radio – WSKY demographics
Radio - WXJZ Smooth Jazz

• Smooth Jazz 100.9 reaches adults 35-64 with a secondary audience on Bob and Sheri of Women 25-54. • 29 percent of the listeners have a household income of $50,000-$75,000 and 29 percent are $75,000+
Radio - WBXY The Star

WBXY The Star 99.5 reaches Adults 35 plus.41 percent have a household income of $75,000+24 percent have a household income of $50,000-$75,000
Radio – WUFT & WJUF National Public RadNorth Central Florida

• WUFT-FM/WJUF is a National Public Radio (NPR) station for North Central Florida featuring popular news/talk and information and reaches ages 25-64, skewing slightly toward females (100,000 watt signal broadcast from Gainesville on 89.1). 
Radio – WRUF Rock 104

• Rock 104 WRUF is a 100,000 watt active rock format station with a primary audience of men ages 25-54.• This station covers Gator football/ basketball games. The campaign includes spots during the pre/post-game show and during the games.
Radio – WKZY 106.9

WKZY-FM 106.9 KZY The Best Mix of the 80s, 90s and Today!Coverage: Alachua, Marion, Gilchrist, Dixie, Levy, Bradford, ColumbiaPrimary Cities: Gainesville, Ocala, Lake City, Starke, High Springs, Chiefland, Trenton and Cross CityAudience Target: Women, Men (18-49)Listenership: 41,400
TV – CBS and NBC My11

The Gainesville Television Network (GTN) provides television programming to 131,100 households in the Gainesville DMA and 420,500 households in the total viewing area on three network affiliates: WGFLCBS4, WNBW-NBC9 and WMYG-MY11.
TV – CBS and NBC

• The Gainesville Television Network is adding local news starting this Fall, which will give the North Central Florida area two local TV news stations (WCJB TV20 page 18). • The GTN will debut its ‘GTN News’ broadcast twice daily on all three networks and will feature some familiar faces to local viewers. 
TV – ABC WCJB TV20
Gainesville/Ocala 104,541 HH’sGainesville Zone | Cox 67,837 HH’s

Zip Codes: 32601, 32603, 32605, 32606, 32607, 32608,

32609, 32611, 32615, 32618, 32641, 32653, 32669

Western Zone | Communicomm

4,246 HH’s

Zip Codes: 32008, 32615, 32626, 32628, 32643

Gaine

Western Zone

Western Zone

Western Zone

Gainesvi

Indicates Cox Media Zones

University of Florida Zone | Cox Zip Codes: 32601 Ocala Zone | Cox 

Zip Codes: 34470, 34471, 34472, 34474, 3447534479, 34480, 34482, 34488

Cox Communications, a Fortune 500 Company, is the nation’s third largest cable television company.

TV – Cox Communications
Sports News Music News Music Entertainment & Informatio

Entertainment & Informatio

TV – Cox Communications
Print/Online – Gainesville Sun/gainesville.com

• Gainesville.com, 

gatorsports.com and gainesvillemoms.com, a family of sites as part of the Gainesville Sun – a New York Times branch, receives more than 1 million unique visitors monthly.

• Gainesville.com is the 

#1 local site in Gainesville and reaches people in our entire service area while also reaching visitors.

• The campaign will 

include presence in print and online.

193,000 Readers Appendix Gainesviletter of s
Print/Online – Ocala Star-Banner

• The Ocala Star-Banner/Ocala.com is the communportal for the Ocala/Marion County region with 7 higand targeted websites combined into one huge site covers "Everything Ocala." • Covering news, sports, entertainment, classifieds, employment, automotive, real estate and more onlinprint, they offer a number of different options for the to reach out to Marion County area residents. • 200,000 daily readers – see Appendix B for letter support from the Ocala Star-Banner publisher.
Print/Online – The Independent Florida Allig

The Alligator is circulated on the University of Florida campus at locations determined to be hightraffic areas of classroom, administration, residential and service buildings. It is also circulated at Santa Fe College. With a circulation of 35,000, the Alligator primarily targets students. However, it also reaches a significant number of UF faculty, staff, alumni, area residents and visitors. 

6,000 daily visitors alligator.org as we
North Central Florida Business Report
Additional Targeted Marketing Initiative

OCALA RETIREMENT COMMUNITIES (NEWSLETTERS)Ocala has a large retired population and 26 retirement communities. The airport will place ads iarea retirement newsletters and magazines as well as participate in events at the retirement co

OCALA MAGAZINES (HIGH HOUSEHOLD INCOME)There is a significant horse industry in Marion County and an opportunity to reach out to that sp

through equestrian magazines (i.e. the Florida Horse). Additionally, we will be advertising in the directory and high-income household magazines such as the Ocala Magazine and Ocala Style.SOCIAL MEDIA OUTLETSIt has increasingly become more of a challenge to reach certain demographics through traditionSocial media sites and internet advertising allow businesses to easily and cost effectively reach 

The airport will also include advertisements on sites such as Facebook to obtain more supportemore opportunities for on-going, two way communication.ON-CAMPUS ADVERTISING A significant part of the airport’s effort will include a focus on students, faculty and staff at the UFlorida. Vehicle advertising (bus wraps) and on-campus advertising options in high-traffic areas easily reach this target audience in addition to the Alligator advertising.EVENTS AND PROMO-ITEMSParticipation in community events and large events at UF will allow for direct, personal outreach airlines and continue to develop the airport’s “Low Fare Alert” program. There are numerous opincluding UF sporting events (UF homecoming parade, football and basketball games, etc...), laevents, Chamber business events (Gainesville and Ocala), and the Biotechnology tradeshow in 
Exhibit C - Gainesville Regional Airport – Leakage Map 

Page 45
• Approx. 85 pe

the residents in service area usairports.

GNV 

Generation 

Rank

Market Passengers Lost Percentage Lost

1 ATL 48,532 77.4%2 LGA 52,752 92.1%3 PHL 48,546 91.7%4 ORD 46,796 88.6%5 BOS 32,330 79.5%6 DCA 28,562 73.2%7 BWI 31,140 81.2%8 EWR 27,912 80.8%9 LAS 28,019 85.3%

10 DFW 27,574 84.1%

Market Specific Leakage Rates

Gainesville Regional Airport

Southeas66.5%

Midwest82.5%

Rocky Mtn84.9%

Southwest80.0%

Far West80.1%

Northwest78.2%

Rank Market GNV 

Generation

Current GNV Leakage Pct Lost

1 ATL 62,669 14,137 48,532 77.4%2 LGA 57,289 4,537 52,752 92.1%3 PHL 52,962 4,416 48,546 91.7%4 ORD 52,789 5,993 46,796 88.6%5 BOS 40,643 8,313 32,330 79.5%6 DCA 39,037 10,475 28,562 73.2%7 DFW 32,788 5,214 27,574 84.1%9 EWR 34,527 6,615 27,912 80.8%

10 BWI 38,327 7,187 31,140 81.2%

GNV’s Top Markets
Exhibit D - Gainesville Regional Airport – Air Carrier History Charts 

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Exhibit E - Gainesville Regional Airport – Airline Flight Frequency / Capacity 

as of August 25, 2010 

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GNV Airline Flight Frequency/Capacity as of August 25, 2010

Carrier

Freq. Seats Freq. Seats Freq. Seats Freq. Seats Freq. Seats Freq. Seats Freq. Seats Freq. Seats

Delta Connection 5 250 7 350 7 350 7 350 7 350 6 300 5 250 44 2200

USAirways Express 3 150 4 200 4 200 4 200 4 200 4 200 3 150 26 1300

*Alll flights aboard 50 seat CRJ-200 aircraft

Sun Mon Tues Wed Thurs Fri Sat Weekly Total

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Exhibit F – Community Letters of Support 

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2121 SW 19th Avenue Road . Ocala, Florida 34471 

352.867.4020 

Allen Parsons August 27, 2010

Publisher 

Aloha Ley 

Associate Director 

Small Community Air Service Development Program (SCASDP) 

Dear Ms. Ley, 

The Ocala Star-Banner fully supports the Gainesville-Alachua County Regional Airport Authority’s request for 

a Small Community Air Service Development grant to help support the new American Eagle Airlines service 

between Gainesville and Miami and the existing local air carriers, Delta Air Lines and US Airways. The StarBanner recognizes the importance of air service to economic development and the quality of life for residents 

and visitors in our region. 

We want to help ensure the success of the new American Airlines service between Gainesville and the Miami 

hub. We are already working closely with the Airport Authority and are committed to matching funds spent. 

The lack of air service to South Florida and adequate connecting service to international destinations has forced 

many to commute to and from other airports or make the exhausting 4+ hour trip to Miami by auto. 

Additionally, American’s extensive domestic and international route structure from Miami will provide new 

travel options and a greater level of frequency. 

Due to the critical importance of quality air service for our region, the Star-Banner is willing to match funds 

spent with our organization to help American Airlines establish its new route between GNV and MIA. With 

nearly 200,000 daily readers in print and online, we believe our donation for advertising will help make the new 

service successful. 

I urge you to proceed with approving the Airport Authority’s request for a grant to assist with marketing efforts 

for the next two years. If I can offer additional insights, please don’t hesitate to contact me 

 Sincerely,