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# Proposal under the Small Community Air Service Development Grant Program of



# Sarasota Bradenton International Airport
Under 49 U.S.C. 41743 et seg

DUNS # 067207746 Florida Congressional District #1 3 Legal Sponsor: Sarasota Manatee Airport AuthorityProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# Proposal Overview

Sarasota Bradenton International Airport, in partnership with the Bradenton Area Convention
& Visitors Bureau and the Sarasota Convention & Visitors Bureau , respectfully submits its proposal for a grant under the 20 10 Small Community Air Service Development Grant Program (Docket DOT

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Specifically, the airport and its partners have developed a plan to respond to perc eptions of the impact of the oil spill by increasing air service marketing activities while simultaneously lowering airl ine operating costs at Sarasota Bradenton International Airport so as to encourage new or expanded service

. To accomplish this, the airport community is requesting a SCASD grant in the amount of $300,000 to be matched with $292,000 for a total project cost of $592,000. The Airport believes this application meets the intent and spirit of the Small Community Air Service Development Prog ram, and would greatly appreciate favorable consideration by the Department.

An Unprecedented Challenge: The BP Oil Spill
As a growing community and vacation destination, air service is a critical component in the overall health of the regional economy served by Sarasota Bradenton International Airport. The region, however, faces an unprecedented challenge in overcoming the perceptions held by both the public and airliner planners as it relates to the impact of the oil spill in the Gulf of
Mexico.

Whil e it is true that very little oil has washed ashore i n the region served by Sarasota Bradenton International Airport, few in the world know this fact. What potential visitors to the Gulf Coast do know, however, is that over 100 million gallons (and potenti ally up to 184 million gallons) of oil has leaked into the Gulf of Mexico since the Deepwater Horizon oil platform exploded on April 20, 2010. As will be outlined in this proposal, these perceptions threaten the ability of Sarasota Bradenton International Airport to retain existing air service
and recruit new air service

.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 3 A Focused Solution: Increased Marketing and Lower Airline Costs to Retain and Build Air
Service at Sarasota Bradenton International Airport
To a ddress this challenge, Sarasota Bradenton International Airport is requesti ng a SCASD grant to implement a n enhanced air service marketing and communication effort , utilizing
trade shows to communicate with potential inbound visitors that the beaches in the reg ion
are clean and that Sarasota Brade nton International Airport represents a convenient, cost

competitive gateway to the Gulf Coast region.

Supplementing this marketing program, the airport proposes to use SCASD grant funds to acquire aircraft ground handling equipment so as to minimize the initial opening and ongoing operating costs for airlines ini tiating new service at Sarasota Bradenton International Airport. The airport and its community partners hope that by lowering such costs, airlines can be convinced to experiment with new service a t SRQ even in light of the perceptions held about the region due to the oil spill.

Contact Information
Sarasota Bradenton International Airport will serve as the legal sponsor and be responsible for administering the grant. All correspondence regarding this proposal should be referred to:

Mr. Fred rick Piccolo President & Chief Executive Officer Sarasota Manatee Airport Authority 6000 Airport Circle Sarasota, Florida 34243 Tel: (941) 359

- 5200 Email: Frederick.piccolo@srq

- airp ort.comProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# Table of Contents

PROPOSAL OVERVIEW 2

An Unprecedented Challenge: The BP Oil Spill 2

1. TECHNICAL DESCRIP TION OF PROPOSAL 5

Community & Airport 5 Legal Sponsor 5 Public/Private Partners 5 Proposal Description 5

2. SRQ MARKET AREA 7
Geographic Location & Market Population 7 Tourism: Economic Engine of The Gulf Coast 8 Not Just Tourism: A Diverse Economic Base 8 Principal Challenge Fac ing SRQ: Impact of Oil Spill in Gulf of Mexico 9 Secondary Challenge Facing SRQ: Cost per Passenger Enplanement (CPE) 11

3. SRQ AIR SERVICE 13
Current Service Map 13 Further Detail: Declining Service Levels 15 Fares at Sarasota Bradenton International Airport Are Highest Among Gulf Coast Airports 16 SRQ Enplanement Trends: Mixed Results and Evidence of Vulnerability 16 An Aggressive Air Service Development Strategy Designed to Retain and Build Air Service 17

4. AIR SERVICE RETEN TION & RECRUITMENT STRATEGY 19
Component One: Enhanced Marketing & Communication Activity 19 Component Two: Lower Airport Costs For Incumbent Carriers and New Service 22

5. SCASD GRANT ADMIN I STRATION PLAN 24
Responsibility for SCASD Grant Funds 24 SRQ: A Proven Ability to Translate SCASD Grant Awards into New Service 24 Summary of Plan for Use of SCASD Grant Funds 24 Project Timeline 25 Plan to Monitor Funds and Project Effectiveness 26 Plan to Build on Success Facilitated by SCASD F unds 26Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# 1 . Technical Description of Proposal

Community & Airport Sarasota and Bradenton, Florida served by Sarasota Bradenton International Airport that is owned and operated by the Sarasota Manatee Airport Authority.

Legal Sponsor
Sara sota Manatee Airport Authority DUNS # 067207746 Florida Congressional District #1 3

Contact: Mr. Fred rick Piccolo President & Chief Executive Officer Sarasota Manatee Airport Authority 6000 Airport Circle Sarasota, Florida 34243 Tel: ( 941) 359

- 5200 Email: f rederick.piccolo@srq

- airport.com
Public/Private Partners
Th is proposal is supported by the Bradenton Area Convention and Visitors Bureau and Sarasota Convention and Visitors Bureau . These community partner s are will provide matching funds, manpower, and contacts within the tourism community to aggressively promote Sarasota Bradenton International Airport as a convenient gateway to Florida’s Gulf Coast and change comm only held beliefs about the impact of the oil spill on the region’s
beaches.

Proposal Description
The Sarasota Bradenton International Airport and its community partners are proposing to implement a dual component project to meet the challeng es resulting from the oil spill in the Gulf of Mexico, requiring total project funding of $592,000.

First, implementation of an expanded trade show marketing effort to ensure both potential passengers and planners within airline industry and tour operators are aware that Florida’s
Gulf Coast beaches and specifically those s erved by Sarasota Bradenton International Airport, remain untouched by oil and are open for business. This component of the project isProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 6 e xpected to cost approximately $2 92,000 and is in add ition to the airport’s regular marketing activities.

Second, whi le recent reports from the airline industry indicate a firming of the revenue environment, history indicates that such recoveries are fragile at best. By offering lower airport costs, and sp ecifically by reducing required investment in ground support equipment, SRQ can be better positioned with other airports along Florida’s Gulf Coast that compete to
attract the same limited airline resources. This component of the project is expected to cos t approximately $ 3 00,000.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# 2

. SRQ Market Area

Geographic Location & Market Population
Sarasota Bradenton International Airport is located along Florida’s Gulf Coast, serving the communities of Sarasota and Bradenton, and strategically positioned between the metropolitan areas of Tampa/St. Petersburg/Clearwater and Fort Myers. The airport’s
location also provides easy access to Port Charlotte, Punta Gorda, Siesta Key, Lido Key, and Longboat Key.



# Sarasota Bradenton International Airport Primary Catchment Area

Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 8 Over 1.9 million people live within a one

- hour drive of Sarasota Bradenton International Airport, representing an increase of 13% since the beginning of the decade. The average household income within the p rimary service area of Sarasota Bradenton International Airport is approximately $59, 000 annually.

Tourism : Economic Engine of The Gulf Coast
Tourism and second

- home ownership are the primary driver of the economy of the Gulf Coast
and the market area served by Sarasota Bradenton International Airport. To illustrate this point, there are over 20,000 hotel rooms, condominiums, a nd time

- shares within a 30

- minute dri ve of SRQ. This places Sarasota Bradenton International Airport closer to most of the hotel inventory than either Tampa/St. Petersburg International Airport or Fort Myers International Airport.

Among the tourist activities and attractions in the region area:

**•** Ringling Estate & Museum;

**•** Mote Marine Laboratory;

**•** IMG Sports Academy;

**•** Baltimore Orioles and Pittsburgh Pirates spring training camps;

**•** Sarasota Classic Car Museum;

**•** Marie Selby Botanical Gardens;

**•** Parker Manatee Aquarium;

**•** Ca d’Zan Mansion;

**•** Saint Armands Circle (shopping); and

**•** Big Cat Habitat and Gulf Coast Sanctuary

.
Most importantly, there are over 20 beaches including the only beach in Florida to be named
to Dr. Beach (America’s Foremost Beach Expert) Top 100 for 2009 . These beaches are the primary reason that visitors come to the market area served by Sarasota Bradenton International Airport however, as outlined, the local economy and air service is threatened by the unprecedented challenge in the form of publ ic perceptions regarding oil washing ashore.

Not Just Tourism: A Diverse Economic Base The economy o f the market served by Sarasota Bradenton International Airport is not strictly
tourism . As the table below illustrates, the region has a vibrant and diverse industrial base
that includes the presence of a number of technology and Fortune 100 companies.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 9 Company Industry/Description Approximate # of Employees Tropicana Products Fruit juice producer 2,200 PGT Industries Custom doors, windows, and patio rooms 1,400 Wellcraft Marine Fiberglass boats 1,050 Intertape Polymer Group Manufacturer of specialized plastic and paper products for retail industry 850 American Marine Holdings Boat manufacturing 840 Invensys Sensor Systems Magnetic, ultrasonic and resistive speed, position and motion sensors and controls 700
Hi

- Stat Manufacturing Sensors for automotive sector 575 Tropitone Furniture Manufacturer of casual furniture 550 Hoveround Powered wheelchairs and mobility scooters 480 IMG Academies Sports academies 460 RMC Concrete Ready

- mix concrete and pavers 430 JC Jones Chemicals Water treatment chemicals 400 Eaton Aerospace Electrical power and load management, systems for aerospace 400 Vengroff Williams & Associates Collection agency 300
Carter Grandle Manufacturer of casual furniture, umbrellas and cushions 300
L

- 3 Communications, Aviation Flight Data and Voice Recorders 200 Comdial Corporation Business communication hardware 150

Similar to the tourism industry, the industrial sector in the region is highly dependent on the availability of affordable and convenient air service at SRQ . The SCASD funds requested in this proposal are intended to ensure that these busine sses continue to h ave access to such
via Sarasota B radenton International Airport by facilitating enhanced marketing activities that encourage use of the airport and lower costs incurred by airlines operating at SRQ, thereby encouraging retention of existi ng services or addition of new services.

Principal Challenge Facing SRQ : Impact of Oil Spill in Gulf of Mexico
As has been all uded to throug hout this proposal the Sarasota Bradenton International Airport and its community partners are deeply concerned about the impacts that the oil spill in the
Gulf of Mexico will have on demand for air travel at SRQ as well as the perceptions of the market area held by both the traveling pu blic and airline planners.

The concerns of the airport and community partners are grounded in merit, as was clearly
illustrated in the Oxford Economics Report: Potential Impact of the Gulf Oil Spill on Tourism that was prepared for the U.S. Travel Association in August 2010. 1

1 The complete study can be downloaded at: http://www.ustravel.org/sites/default/files/page/2009/11/Gulf_Oil_Spill_Analysis_Oxford_Economics_710.pdf This report indicated that
the “ oil s p ill could cost the U.S. coastal economies $22.7 billion over a period of three years”Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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In this study, Oxford Economics determined that changes to visitor patterns would last a minimum of 15 months and possib ly as long as 36 months. This is particularly true, Oxford Economics noted, among leisure travelers which “have ultimate discretion in their choice of destination and may avoid regions which have only slight contamination or perhaps even the risk of oil.” The potential impact on tourism spending as a result of these changed patterns is expected to be at least $7.6 billion and as high as $22.7 billion for the entire Gulf Coast region, with a minimum impact of $6.3 billion and maximum impact of $18.6 billion on Florida alone. 

### Total Impact on Gulf Region Low Impact High Impact Months 15 36 Impact on Tourism Revenues US$ Bn % 1 year outlook* % 3 year outlook** US$ Bn % 1 year outlook* % 3 year outlook** Total Region $7.6 12% 4% $22.7 25% 8% Florida $6.3 13% 5% $18.6 27% 14% Louisiana $0.7 17% 6% $2.0 37% 18% Mississippi $0.4 19% 7% $1.2 41% 20% Alabama $0.3 19% 7% $0.8 41% 20% Texas $0.0 0% 0% $0.1 1% 0% SOURCE: Oxford Economics, Potential Impact of the Gulf Oil Spill on Tourism * potential lost revenues in the first 12 months relative to business as usual for coast economies ** potential lost revenues over the next 36 months relative to business as usual for coast economies
In summary, there were three k ey findings in this report which underscore the need of
Sarasota

- Bradenton International Airport for SCASD funds to engage in counteracting
activities:

**•** Travel intentions for the Gulf Coast are down significantly ;

**•** Misperceptions abound regarding which areas of the Gulf Coast have been impacted; and

**•** Potential/likely travelers believe that impacts of the oil spill will be felt for a long time along the Gulf Coast.

The Oxford Economics study also stated that the solution to reversing these impacts lies in a

“ robust communications and marketing plan . . . to both inform and motivate travel . . .” For these reasons, Sarasota

- Bradenton International Airport respectfully request that theProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 11 Department give favorable consideration to this proposal so as to facilitate the implementation of enhanced airport marketing activities and lower operating costs to airlines at SRQ, thereby encouraging retention of existing service and the potential recruitment of
new service.

Secondary Challenge Facing SRQ : Cost per Passenger Enplanement (CPE) A secondary challenge facing Sarasota Bradenton International Airport is the cost per passenger enplanement (CPE) paid by airlines serving the airport relative to other airports in the region. The table below illustrates the estimated cos t per passenger enplanement at the three primary commercial service airports serving Florida’s Gulf Coast for calendar year
2010. 2 

# CPE Comparison Florida Gulf Coast Airports

Airport →

Cost Metric ↓ Sarasota Bradenton International Airport (SRQ) Tampa International Airport (TPA) Southwest Florida International Airport (RSW) Cost per Passenger Enplanement (CPE) $12.07 $4.75 $8.86

Avg. Terminal Rent $59.78 $106.24 $96.27 Landing Fee $0.84 $1.286 $2.98

Note that the cost per pa ssenger enplanement at Sarasota Bradenton International is 36% higher than Southwest Florida International Airport and 154% higher than Tampa International Airport. Also note that among the three airports, SRQ has the lowest average
terminal rental rate an d landing fees despite the fact it lost two carriers during 2008 (American and Continental). In this context, the higher cost per passenger at SRQ is not a factor of the airport being overbuilt or inefficient, but rather a result of fewer passengers being moved through the facility which, in turn, translates into higher unit costs.

This diff erential in CPE places Sarasota Bradenton International Airport at a significant disadvantage when it comes to retention of existing service and recruitment of new service, particularly when airlines have the option of placing their limited resources at one of the other two airports in the region. This disadvantage ru ns the risk of becoming even more pronounced should pass engers steer away from Sarasota Bradenton Internat ional Airport as

2 Estimated using airport budget information and passenger enplanement forecast for each respective airports.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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– either anticipating a decline in demand due oi l spill related perceptions or due to the already higher
costs at SRQ relative to the other regional airports.

The solut ion to this challenge is simple: Counteract the false impression that Sarasota and Bradenton beaches have oil on them through more intense marketing which will move m ore passengers through Sarasota Bradenton International Airport so that costs can be lowered
both for incumbent carriers and recruitment of new service. The SCASD grant funds requested in this proposal are intended to ach ieve this objective.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# 3

. SRQ Air Service

Current Servic e Map During the f ourth quarter of 2010, Sarasota Bradenton International Airport will have nonstop service to 11 destinations offered by five airline brands. 

# Sarasota Bradenton International Airport Domestic Scheduled Service 4Q2010

– Includes Seasonal Service

SOURCE: Innovata , LLC via Aviation DataMiner TM Seasonal service provided by Air Canada to Toronto not illustrated

The service levels at Sarasota Bradenton International are significantly less than those at the other two primary Gulf Coast airports: Tampa International Airport and Southwest Florida International Airport. This is illustrated on the map on the next page and contributes to significant amounts of traffic leakage from SRQ. Of particular note is the lack of westbound service from Sarasota Bradenton International Airport. In previous years, the airport had year

round and seasonal service to Memphis, St. Louis, and Houston Intercontinental Airport. Today it has no such service and this places the airport at a significant disadvantage which contributes to traffic leakage. Moreover, both Continental Airlines and American Airlines have
both exited the SRQ market.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# Florida Gulf Coast Airports Domestic Scheduled Service 4Q2010 (Includes Seasonal Service)

Sarasota Bradenton International Airport

Southwest Florida International Airport Tampa International AirportProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 15 The requested SCASD grant funds for enhanced marketing activities and airline cost reductions in this proposal are intended to mitigate the risk of increased traffic leakage
which in turn could result in further service re ductions.

Further Detail: Declining Service Levels The graph below illustrates in more detail the monthly trend in departing seats at Sarasota Bradenton International between 2005 and 2010. As illustrated, except during the first quarter of 2008 when economic weakness was first beginning to become evident yet airlines had already published schedu les for the winter travel season, capacity between 2008 and
2010 has bee n consistently below levels earlier in the period. 

# Sarasota Bradenton International Airport Monthly Departing Seats, Scheduled Service: 2005

- 2010

SOURCE: Innovata , LLC via Aviation DataMiner TM 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2005 2006 2007 2008 2009 2010

The A irport is deeply concerned that the perceptions of the impacts of the BP oil spill, held by both airline planners and the traveling public, will hav e further negative impacts on fut ure capacity levels at Sarasota Bradenton International Airport. This further underscor es the need for enhanced marketing activities and lower airline operating costs at SRQ, which can be meaningfully aided by granting the SCASD funds requested in this proposal.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 16 Fares at Sarasota Bradenton International Airport Are Highest Among Gulf Coast Airports
Fare s at Sarasota Bradenton International Airport are the highest among the primary airports serving Florida’s Gulf Coast. This fact is illustrated on the table below, which compares the average gross one

- way fare paid by c onsumers flying to and from the Gulf Coast and
cont ributes to traffic leakage at SRQ. 

# Average OW Gross Fare Compare: CY 2009 Florida Gulf Coast Airports

SOURCE: Aviation DataMinerTM NOTE: Highest fare shown in red
SRQ Enplanement Trends: Mixed Results and Evidence of Vulnerability Following the award of a SCASD grant in 2003 and successful r ecruitment of low

- fare service, enplanements at Sarasota Bradenton International Airport experienced strong growth. Since 2007, however, when enplanements peaked at 783,964, traffic at SRQ has
been on a downward sli de effectively erasing any gains the airport achieved earlier. In fact, for the entirety of the decade, enplanements at SRQ have declined by 14.9 percent, equating to an average decline of 1.49% annually.

Rank Market Psgr Gross Fare Psgr Gross Fare Diff. w/ SRQ Psgr. Gross Fare Diff. w/ SRQ

1 JFK 130,181 $156.94 319,369 $154.83 -1.3% 504,294 $143.24 -8.7% 953,844 2 DTW 49,674 $162.61 422,176 $135.54 -16.6% 438,319 $130.99 -19.4% 910,169 3 EWR 24,649 $151.65 351,831 $163.64 7.9% 528,928 $157.77 4.0% 905,408 4 BOS 57,295 $153.42 429,565 $176.72 15.2% 415,677 $158.56 3.4% 902,537 5 PHL 21,072 $158.44 283,291 $142.11 -10.3% 565,974 $131.53 -17.0% 870,337 6 BWI 65,096 $115.02 214,938 $119.24 3.7% 525,620 $107.71 -6.4% 805,653 7 MDW 144,721 $127.47 285,250 $142.68 11.9% 349,844 $139.09 9.1% 779,816 8 ORD 16,841 $154.52 379,977 $146.29 -5.3% 346,959 $153.26 -0.8% 743,777 9 ATL 97,308 $131.98 148,748 $144.19 9.3% 460,112 $143.51 8.7% 706,168 10 IND 53,972 $141.28 248,765 $129.13 -8.6% 302,226 $115.34 -18.4% 604,962 11 MSP 18,716 $182.32 306,529 $172.94 -5.1% 278,579 $155.78 -14.6% 603,825 12 PIT 23,768 $151.97 173,984 $130.27 -14.3% 287,065 $126.22 -16.9% 484,817 13 DCA 39,758 $154.57 127,604 $134.89 -12.7% 251,623 $185.60 20.1% 418,985 14 LGA 18,446 $155.19 77,294 $146.73 -5.4% 320,745 $149.19 -3.9% 416,484 15 BUF 26,038 $151.15 134,244 $137.72 -8.9% 224,383 $137.63 -9.0% 384,665 16 STL 13,880 $155.26 172,803 $139.91 -9.9% 189,144 $153.90 -0.9% 375,827 17 PVD 7,415 $180.02 102,493 $154.50 -14.2% 262,718 $146.30 -18.7% 372,626 18 CMH 20,141 $150.46 138,937 $135.32 -10.1% 212,559 $135.88 -9.7% 371,637 19 CLE 11,930 $162.38 200,887 $152.01 -6.4% 158,476 $155.00 -4.5% 371,292 20 DEN 15,214 $190.66 86,932 $174.44 -8.5% 265,574 $184.00 -3.5% 367,719 21 MKE 12,024 $152.18 152,979 $137.04 -9.9% 198,248 $119.86 -21.2% 363,251 22 BDL 11,962 $188.29 100,066 $179.94 -4.4% 241,762 $162.00 -14.0% 353,791 23 DFW 10,905 $178.57 78,367 $184.73 3.4% 259,358 $174.13 -2.5% 348,629 24 LAS 9,664 $230.61 50,443 $200.80 -12.9% 258,683 $182.40 -20.9% 318,789 25 CVG 33,223 $167.72 128,748 $158.58 -5.4% 122,549 $146.24 -12.8% 284,520 1,318,392 $162.22 7,139,835 $158.54 -2.3% 14,502,508 $154.48 -4.8% 22,960,734 Total Gulf Coast Total O&D Sarasota-Bradenton Fort Myers Tampa/St. PetersburgProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# Sarasota Bradenton International Airport Annual Enplanement Trend: 2005

- 2010

SOURCE: Airport Enplanement Reports 795,721

592,491 564,346

535,716 566,466 671,988 714,522 783,964
755,162

677,419

500,000 550,000 600,000 650,000 700,000 750,000 800,000 850,000 900,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

To this point in time, the decline in enplanements has been primarily due to macro

- level factors such as increased fuel prices, airline fleet reductions, and the weak economic
environment. Now, however, the risk of further declines in both air service and enplanement
levels is localized due t o perceptions surrounding the Gulf of Mexico oil spill. The SCASD grant funds requested in this proposal for enhanced marketing activities through trade show participation and lower airline costs at SRQ are intended to proactively mitigate the risk of
such an occurrence.

An Aggressive Air Service Development Strategy Designed to Retain and Build Air Service
Sarasota Bradenton International Airport would like the Department to understand that the marketing and airline co st reduction planned outlined in this proposal do not represent a

new direction for airport. To the contrary, the airport has been aggressively promoting itself for many years both to incumbent carriers and air service development targets. These
activities are summarized on the following table.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# Summary of Air Service Development & Retention Activities Sarasota Bradenton International Airport: 2006

- 20 10

2006 2007 2008 2009 2010 Regular phone

and email contacts with

incumbent

carriers, discussion of service levels

and market performance Regular phone and email contacts with

incumbent

carriers, discussion of service levels and market performance Regular phone and email contacts with

incumbent

carriers, discussion of service levels and market performa nce Regular phone and email contacts with

incumbent

carriers, discussion of service levels

and market performance Regular phone and email contacts with

incumbent

carriers, discussion of service levels and market performance

Attendance at Networks 2010

Conference (March), ACI

Jumpstart Conference (June), and Routes Conference (September) Attendance at ACI Jumpstart Conference (June), and Routes Conference (September) Attendance at Networks Latin America Conference (November) Attendance at Networks 2010

Conference (February), ACI

Jumpstart Conference (June), and Routes Conference (September)
Meetings with

US Airways, jetBlue, and

American Meetings with Southwest, Martinair, SkyBus,

US Airways, and USA 3000 Meetings with Northwest Airlines, Continental, Southwest, and jetBlue Meetings with United , KLM, Condor, Ryanair, US Airways, and AirTran Meetings with ArkeFly , Condor, KLM, and United

Airport advertising campaign targeting local travelers Airport advertising campaign targeting local travelers Airpor t advertising campaign targeting local travelers Airport advertising campaign targeting local travelers Airport advertising campaign targeting local travelers

As evidenced by the activity above , the community’s interest in improving air service is not

new nor has it been lacking in commitment of time and resources. Through the application of grant funds as outlined in this proposal, the Sarasota Bradenton International Airport
believes that it can build upon these efforts to retain current services a nd recruit additional
air service.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# 4

. Air Service Re tention & Re cruitment Strategy

To this point in the proposal, Sarasota Bradenton International Airport has identified the challenge that it faces with respect to consumer and airline planning personn el perceptions
related to the oil spill in the Gulf of Mexico , intense competition for discretionary vacation spending, declining service levels , and high er average fares than neighboring airports

. It is strongly b elieve d th at through implementation of a m easurably more aggressive m arketing campaign combined with a plan to reduce airport costs for both incumbent and new entrant
carriers , that the decline in enplanement an d service levels can be halted.

To implement the program and meet the stated objectiv e, Sarasota Bradenton International Airport and its community partners are seeking a SCASD grant in the sum of $300,000 that will be matched with $2 92 ,000 in community funds resulting in total project funding $5 92 ,000.

Component One : Enhanced Marketing & Communication Activity C onsumer perception s , both domestically and internationally, of the Gulf Coast of Florida
ha ve been negatively impacted as a result of the oil spill. This places Sarasota

- Br adenton International Airport at risk of losing existing a ir service and will inhibit the ability of the airport to recruit additional air service.

To counter this , SRQ is proposing to supplement its regular advertising program with a major trade and consumer show campaign as an avenue to interact with its key publics and present a true picture of the situation. To execute this campaign that will target consumers, both domestic and international, as well as industry partners that influence travel decisions (i.e., tour operators, travel agents, etc.), SRQ in conjunction with its community partners has developed a realistic and comprehensive trade show plan that it is confident can have the desired impact.

Sarasota Bradenton International Airport proposes to pa r ticipate in the following travel and
trade shows to communicate that the beaches along the Gulf Coast of Florida are clean and open, and that SRQ represents a convenient gateway to this region : Planned Trade ShowsProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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**•** Tur Sweden

**•** PowWow

- San Francisco

**•** Addisson Canada Consumer Shows 4

- Cities

**•** Boston Globe Consumer Show

**•** Chicago NBC Consumer Show

**•** New York Times Consumer Show

**•** Baltimore Fanfest

**•** Pittsburgh Consumer Show

Each of these show s is unique in that they have varying lev els of participation and provide opportunities to target specific potential customer strata’s

.

To maximize effectiveness for the campaign, Sarasota Bradenton International Airport has prepared a multi

- dimensional strategy t hat will allow it to effectively cut through the clutter at
each show and present the market in a way that positively affects consumers

. These
elements are listed on the table on the following page. In total, trade show activity is
pr ojected to cost approximately $2 92,000. Trade Show Plan & Participation

Finally, it is important to reemphasize that the trade show strategy is an enhancement to the existing marketing activities which it undertakes on a regular ba sis, including local marketing
and on

- going communication with airline p lanning personnel, a s outlined above.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# Trade Show Strategy Sarasota Bradenton International Airport

Component Action Plan

Collateral Materials (Estimated Cost: $ 97 ,000) **•** Printed Consumer brochure

**•** Digital Consumer brochure

**•** Pre/Post show email templates

**•** Door drops for select shows

**•** Advertisements for trade show publications

**•** Booth imagery

**•** Press materials (press kit folders, disks, releases, photography, etc.)

Pre

- show Activities (Estimated Cost: $ 84 ,000) **•** Show registration fees

**•** Printed Consumer brochure

**•** Digital Consumer brochure

**•** Pre/Post show email templates

**•** Door drops for select shows

**•** Advertisements for trade show publications

**•** Booth imagery

**•** Press materials (press kit folders, disks, releases, photography, etc.)

**•** Direct mail/e

- blast campaign to invite pote ntial booth visitors

**•** Direct mail/e

- blast campaign to invite media

**•** Pre

- show publications (for editorial and advertising opportunities)

**•** Promotional activities

**•** Partnerships/Sponsorships

**•** Scripts for staff/positioning/duties

**•** Hosting Opportunities/events

**•** Door drops/newsletters

**•** Attractors

**•** Press kits/materials

**•** Show daily publications

At

- show Activities (Estimated Cost: $ 79 ,000) **•** Travel to/from show and lodging

**•** Promotions

**•** Media targeting

**•** Attractors

**•** Booth activities

**•** Networking and events

**•** Messaging

**•** Press room

**•** Speaking opportunities

Post

- S how Activities / Analysis and Evaluation (Estimated Cost: $ 32 ,000) **•** Follow up with media and booth visitors

**•** Accountability

**•** Issues/challenges

**•** Booth

**•** PR/Advertising

**•** Inquiry generation

**•** Documentation (Qualitative/Quantitative Analysis)Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 22 Component Two: Lower Airport Costs For Incumbent Carriers and New Service
As outlined ear lier in this proposal, Sarasota Bradenton International Airport is at a significant disadvantage relative to the other primary commercial service airports along Florida’s Gulf Coast with respect to cost per passenger enplanement (CPE). Long

- term, the solution to this disadvantage is to m ove greater volumes of traffic through the facility thereby spreading total costs over more passengers. The airport’s current market activities as well as the trade show program to be funded with the SCASD grant requested herein will ensure the airport mak es significant headway in achieving this objective.

Those activities cannot , however, be viewed as a total solution and the Sarasota Bradenton International Airport is also seeking SCASD grant funds to lower the initial capital investment required of new airlines to enter the SRQ market and/or lower ing recurring operating
expenses by reducing (and in some cases eliminating) costs associated with ground support equipment (GSE)

. Costs associated with GSE are particularly relevant in a highly

- seasonal
and to urism driven market such as SRQ given that airlines tend to provide service patterns different from those at a “typical” small or mid

- size airport. These can include the following:

**•** Seasonal service (i.e., winter months serving the “snowbird” market);

**•** Seas onal flex in capacity, either through increased frequency or larger aircraft;

**•** Less than daily service ; and

**•** Ad hoc charter flights with aircraft that are unusual to SRQ (i.e., widebody equipment).

In any of these variations, the ability of an air carrier or ground handling agent to amortize the capital cost of GSE over a limited number of operations contributes to higher operating costs. This, in turn, plays a role in the evaluation of SRQ relative to other commerc ial service airports serving the Florida Gulf Coast and places the airport at a significant disadvantage with respect to air service retention and recruitment.

To a ddress this challenge, Sarasota Bradenton International Airport is proposing to acquire

s pecific pieces of GSE that will be loaned at no cost directly to airlines or ground handling provider operating at SRQ

. The specific equipment to be added wi ll be determined in consultation with airlines (both incumbents and potential new market entrants) as well as the ground handling provider , however it is anticipated that the equipment will be geared toward facilitating use of use of mainline aircraft by operators that are unlikely to have aProposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- round presence at Sarasota Bradenton Internation al Airport. Among the potential carriers are:

**•** Network Carriers: United (including Continental post

- merger) and American

**•** LCC and/or Charter Operators: Allegiant Air, Vision Airlines, Sun Country Airlines, Direct Air, and/or Frontier Airlines

**•** Canadian Carriers: Sunwing, Air Canada, WestJet, CanJet, and/or Enerjet

**•** European Charter Carriers: Condor, Martinair Holland, etc.

This investment by the airport in GSE
, aided by the SCASD funds requested herein, will have the effect of reducing operating costs a t SRQ thereby encouraging airlines to add more
seasonal service and/or increase the average size of aircraft in the market thereby offering more seats (and presumably lowering the cost per passenger enplanement). In total, acquisition of the ground support eq uipment is projected to total $3 00,000.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# 5 . SCASD Grant Administration Plan

Responsibility for SCASD Grant Funds Sarasota Manatee Airport Authority will administer SCASD grant funds as this application’s legal sponsor. The Bradenton Area Convention and Visitors Bureau and the Sarasota
Convention and Visitors Bureau will support the efforts of the Authority in the implementation of the marketing program outlined in this proposal

.

SRQ: A Proven Ability to Translate SCASD Grant Awards into New Service
Sarasota Bradenton International Airport is honored to have been previously awarded SCASD grant in 2003. This grant was successfully used to provide risk abatement funds for AirTran Airways, which launched service to Atlanta bringing with it pricing discip line and addi tional capacity to the Sarasota B radenton International Airport. AirTran continues to serve the market to this day, and has increased its overall market presence with service to additional focus cities, including Baltimore, Milwaukee and India napolis on a seasonal basis.

It is important to emphasize that the previous grant award was not only successful but for a project with entirely different goals and objectives. The grant award ed in 2003 was for risk
abatement funds to introduce low

- fare service into the market. In contrast, this proposal is for marketing funds aimed at air service retention in light of public perceptions regarding the oil spill in the Gulf of Mexico , as well as ensuring that SRQ is in a position to offer airport
costs tha t are, at the very least, competitive with those of other Gulf Coast airports.

Summary of Plan f or Use of SCASD Grant Funds As noted, the project outlined in this proposal to retain an d build air service at Sarasota Bradenton International Airport requires t otal funding of $5 92 ,000, of which $300,000 is requested from the Small Community Air Service Developmen t program. The remaining $292,000 of the total project cost will be provided by Sarasota

- Bradenton International Airport and the community par tners.

The proposed allocation of funds between SCASD grant and matching community partner and airport dollars is summarized on the table on the next page:Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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# Planned Used of SCASD and Matching Grant Funds Sarasota Bradenton International Airport

Component SCASD Grant Funds % Share Airport Funds % Share Community Partner Funds % Share TOTAL PROJECT

COST Trade Show Marketing & Communications $ 2 00,000 69 % $70,800 24 % $21,200 7 % $2 92 ,000

Ground Support Equipment (GSE) $ 100 ,000 33 % $200,000 67 % $0 0% $ 3 00,000

TOTAL $300,000 5 1 % $270,800 46% $21,200 4% $592,000

The airport’s contribution to the total project cost will come from two sources:

**•** The Trade Show and Marketing Communications activity by reallocating funds within the airports existing marketing and promotional activities budget; and

**•** Ground Support Equipment acquisition will be funded through the airport operating reserve account.

Sarasota Bradenton International Airport fully understands that SCSAD grant funds are in high demand but also limited. To that end, the airport is committed to returning to the Department any grant award allocation not spent on the specific activities outlined in this proposal.

Project Timeline
Given the immediate and unprecedented challenges resulting from the oil spill, and taking into consideration the statue’s preference for communities that can demonstrate their ability to use grant awards “in a timely fashion,” Sarasota Bradenton International Airport and its community partners are prepared to implement the trade show activities immediately.

That being said, SRQ understands that timing of the announcement of SCASD grant awards is uncertain and therefore proposes to provi de the Department with a detail ed schedule of events upon receipt of grant award and taking into consideration timing of the specific trade shows that are planned. Nonetheless, SRQ intends that the trade show activities will be completed within 12 months o f receipt of the grant award.Proposal of Sarasota Bradenton International Airport for a 2010 Small Community Air Service Development Grant

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- 0124 Page 26 With respect to GSE acquisition aimed at lowering airport costs, the airport respectfully requests a maximum of 24 months to complete this component of the project. This will allow staff adequate time to consult with airline s (both incumbent and potential new market entrants) and/or ground handling company on the specific pieces of equipment that need to be purchased and most effective in reducing airline operating costs, and allow sufficient time for the equipment to sourced , purchased, and delivered to SRQ.

Plan to Monitor Funds and Project Effectiveness The Director, Development and C ommunity Relations for Sarasota Bradenton International Airport will be responsible for monitoring the traffic and revenue performance of incumbent
carriers in the market on a quarterly basis focused on key metrics such as onboard passengers, frequency levels, overall capacity, load fact ors, average fares paid, etc. This data will be summarized in reports outlining grant progress and expenses to be filed with the Department.

Plan to Build on Success Facilitated by SCASD Funds
While the Sarasota Bradenton International Airport and its community partners believe that they have set forth a comprehensive and aggressive response to an unprecedented challenge, it also recognized that airline s and airports operate in an industry that is inherently dynamic and, as illustrated by the B P oil spill, subject to factors outside their direct control. This has the potential for the marketing and cost reduction project outlined in this proposal being unable to meet specific goals within the timeframe that grant funds are
intended to be utiliz ed

.

We would like to assure the Department , however, that the Sarasota Bradenton International Airport and its community partners recognize the important role of air service to the tourism industry. This is why, as outlined in this proposal, the Authorit y has a long standing commitment to marketing and promotion that remains unchanged but requires supplemental efforts with SCASD funds as a result of the BP oil spill. Upon completion of the projec t outlined herein, the Sarasota Bradenton International Airp ort will continue with its existing air service and marketing effort s, with modifications and adjustments to those programs as may be necessary to meet conditions at that point in time and after evaluating the effectiveness of each component in this grant proposa l

.

### APPENDIX B Page 1 of 3

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM DOCKET OST

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SUMMARY INFORMATION All applicants mus t submit this information with their proposal , along with a completed form SF424 on
http:// www.grants.gov.

A. APPLICAN T INFORMATION: (CHECK ALL THAT APPLY)



### ⁭ Not a Consortium ⁭ Interstate Consortium ⁭ Intrastate Consortium
⁭ Community now receives EAS subsidy

X Community (or Consortium member) previously received a Small Community Grant
If previous recipient, expiration date of grant: ___ Sept 24, 2004

_____________________

B. P UBLIC 

### /P RIVATE 

### P ARTNERSHIPS 

### : (L IST ORGANIZATION NAMES 

### )

Public Private
1. ___________________________________ 1._ Sarasota Convention & Visitor Bureau

___ 2.____________________________________ 2._ Bradenton Area Conv ention & Visitor Bureau 3.____________________________________ 3.______________________________________ 4.____________________________________ 4.______________________________________ 5.____________________________________ 5.______

________________________________

C. P ROJECT 

### P ROPOSAL 

### : (CHECK ALL THAT APPLY)



### X Marketing ⁭ Upgrade Aircraft ⁭ New Route

⁭ Personnel ⁭ Increase Frequency ⁭ Low Fare Service

⁭ Travel Bank ⁭ Service Restoration ⁭ Subsidy

### APPENDIX B Page 2 of 3

⁭ Surface Transportation ⁭ Regional Service X Other (specify)

⁭ Revenue Guarantee ⁭ Launch New Carrier Ground Support

____ Equipment

________ ⁭ Start Up Cost Offset ⁭ First Se rvice

_________________

_________________ ⁭ Study ⁭ Secure Additional Carrier



### D. E XISTING 

### L ANDING 

### A IDS AT 

### L OCAL 

### A IRPORT:



### X Full ILS X Outer/Middle Marker X Published Instrument Approach

X Localizer ⁭ Other (specify )

E. PROJECT COST S:

1. Federal Amount Requested:

_ $ 300,000

____________________ 2. State cash financial contribution :

__ nil

_________________________ 3. Local cash financial contribution... 3a. Airport cash funds:

_ $ 270,800

____________________ 3b. Non

- Airport cash f unds:

_ $ 21,200

_____________________ 3c. Total local cash funds (3a. + 3b.) :

_ $ 292,000

____________________ 4. TOTAL CASH FUNDING (1. +2.+3.)

_ $592,000

_____________________ 5. Local funds contributed from already

- existing programs or projects in cluded in line3c. amount:

_ Nil

_________________________ 6. Local funds contributed from new commitments
or new resources included in line 3c. amount :

_ $21,200

_____________________ 7. Airport In

- K ind contribution:

_ Nil

____________________________ (amount & description)
8. Other In

- Kind contribution:

_ Nil

____________________________ (amount & description)
9. T OTAL IN

- KIND CONTRIBUTION (7.+8.) :

_ Nil

____________________________ 10. TOTAL PROJECT COST (4.+9.)

_ $592,000

_______________________

### APPENDIX B Page 3 of 3 F. ENPLANEMENTS:
2000___ 746,401

_______ 2004____ 566,466

_________ 2008___ 755,162

__________ 2001___ 592,491

_______ 2005____ 671,988

_________ 2009 677,419

200 2___ 564,516

_______ 2006____ 715,137

_________ 2003___ 535,716

_______ 2007____ 783,964

_________

G. IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372

PROCESS?

⁭ a

. This application was made available to the State under the Executive Order 12372 Process for review on
(date)
___________________.
⁭ b. Program is subject to E.O. 12372, but has not been selected by the State for review.

X c. Program is not cov ered by E.O. 12372.



### H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE EXPLANATION)

X No ⁭ Yes (explain) _______________________________________________________________