Proposal Under the Small Community 

Air Service Development Program 

Docket: DOT-OST-2010-0124 

Sponsoring Entity: Lakeland Linder Regional Airport 

Dun & Bradstreet Number: 020997912 

2-digit Congressional District Code: 12 

August 27, 2010 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Table of Contents 

Executive Summary __________________________________ 1

Community Overview _________________________________ 4

Local Community: The City of Lakeland and Polk County __________________ 4

Impact of Tourism on Polk County ____________________________________ 4

Lakeland Linder Airport (LAL) Overview ___________________ 7

Air Service Overview __________________________________ 9

Community’s Historical and Existing Air Service _________________________ 9

Community’s Air Service Development Efforts ___________________________ 9

Strategic Plan ______________________________________ 12

Goals __________________________________________________________ 12

Sky King Support ________________________________________________ 12

Market Analysis Study ____________________________________________ 12

Regional Overview _____________________________________________________ 12

Benchmarking Similar Service in the Region _________________________________ 14

Forecast _____________________________________________________________ 16

Alternate Plan ___________________________________________________ 16

Plan Implementation and Funding ______________________ 17

Public/Private Partnership __________________________________________ 17

Sources and Uses of Funds ________________________________________ 17

Airport Participation _______________________________________________ 19

Marketing Program ____________________________________________________ 19

Revenue Guarantee ____________________________________________________ 20

Funding Assurances ______________________________________________ 20

Milestones and Monitoring _________________________________________ 20

Measure of Success ______________________________________________ 21

Program Continuation _____________________________________________ 21

Legal Sponsoring Entity ___________________________________________ 22

Conclusion _____________________________________________________ 22

Appendix A: Required Summary Information ______________ 23

Appendix B: Letters of Support _________________________ 27
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 1 

The FAA, State of Florida, 

City of Lakeland / LAL are 

investing more than $9.7M 

to prepare LAL for 

commercial service.

Executive Summary 

Lakeland Linder Regional Airport (“LAL”) is currently 

implementing a major program to develop the infrastructure 

required to support scheduled airline service. The Florida 

Department of Transportation (“FDOT”) has invested 

$4.0M in the project, reflecting the strategic importance to 

Florida aviation of developing commercial service at LAL. 

The airport and the City of Lakeland are investing an 

additional $2.2M into the project and have secured $3.4M 

in FAA funds. The total cost of the project is $9.7M and 

completion of the improvements is estimated to be spring 2011. LAL, a Part 139 airport, has already 

submitted the airport security plan to the TSA for review and approval. LAL will have completed all 

requirements for commercial service by the first quarter of 2011. 

Exhibit 1: Expenditures to prepare LAL for Commercial Service 

Fund Uses FDOT City/LAL FAA Total Cost 

ILS 440,000.00 110,000.00 1,000,000.00 1,550,000.00

TWY H&J 94,304.00 94,302.00 2,407,300.00 2,595,906.00

Apron & Pond 1,000,000.00 614,229.88 1,614,229.88

Terminal 

expansion 

2,000,000.00 400,000.00 2,400,000.00

FBO Construction* 475,000.00 475,000.00

Tail Enclosure* 400,000.00 400,000.00

Awos 200,000.00 50,000.00 250,000.00

TWY Lighting 80,000.00 20,000.00 100,000.00

Gates/Access 

Controls 

213,000.00 53,250.00 266,250.00

Totals $4,027,304.00 $2,216,781.88 $3,407,300.00 $9,651,385.88 

*The FBO Construction project is required for the preparations for commercial service; it is being relocated from the 

terminal to generate adequate space to accommodate passenger activity. The Tail Enclosure project was a 

requirement of relocating Sky King to Lakeland. 

LAL is located in Polk County just off the Interstate 4 corridor in the heart of Florida’s tourism center. 

Disney World and Busch Gardens are fewer than 40 minutes away, and the new LEGOLAND park will be 

less than a 30 minute drive, located at the old Cypress Gardens. It takes no more than an hour to be on 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 2 

the popular Gulf Coast beaches. The region has experienced strong development toward Lakeland from 

both the Orlando/Disney complex to the east and the Tampa/St. Petersburg area from the west. This 

strategic location in the middle of the state makes LAL 

the perfect choice for new commercial air service; 

driving economic development for the Polk County 

region. Coming in the fall of 2011, LEGOLAND is 

scheduled to open in Polk County. The attraction 

represents a $150 million dollar investment for the first 

three years, with another $150 million dollar investment scheduled for the next three years. The second 

offering will include a resort hotel and conference center, a water park, and a Sea Life Aquarium. LAL will 

be the most convenient airport to access LEGOLAND. 

Map 1: Drive Times from LAL (90 minutes and 60 minutes) 

LAL

Busch 

Gardens

Disney 

LEGOLAND 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

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LAL’s application seeks a $750,000 grant to support the launch of commercial service from the airport. 

Initial service would be seven or more low fare scheduled charter flights per week to multiple small U.S. 

communities (the “target communities”) that currently lack service to the Orlando / Tampa region. Each 

of the target communities would be eligible for SCASDP in their own right. The benefit from 

awarding a grant to LAL works to achieve the goals for SCASDP to a far greater degree than just the 

impacts on the City of Lakeland and Polk County as the targeted communities would benefit as well from 

the added low fare service. The grant is for a combination of marketing and revenue guarantee. The 

airport has already funded a $25,000 study, which is ongoing at the time of writing this grant, to identify 

target cities and assist with developing the marketing and business plan for the service. Meetings have 

already been held with multiple airlines to provide the service and with multiple communities interested in 

partnering to make the service a success. 

In early 2010, LAL recruited charter airline Sky King to relocate their corporate headquarters and 

maintenance base to LAL, creating an estimated 50 new jobs and $7M in local economic impact. Sky 

King is in the process of implementing the systems required to offer scheduled charter service (new host 

system, booking engine, etc...) and is actively involved in looking at the opportunity (see attached letter of 

support). 

The airport along with regional community and city leaders are committed to this project, pledging more 

than $1.2M dollars in cash and in-kind contributions with $512K from the airport and $700K from the 

community (see Exhibit 11: Sources for Community Cash Contributions). This is on top of the capital 

investments noted above which are not counted towards the commitment for the grant.

Long-term success will be achieved through: 

• Completion of the $9.7M in facility upgrades which are being made to support commercial service 

• Providing low fare service to target communities who currently lack low fare options and in some 

cases may currently not have service at all 

• Robust marketing to establish LAL as a gateway to Orlando / Tampa while establishing the region 

as a destination in its own right 

• Revenue guarantee to support service through the initial spool with the service forecasted to be 

profitable in the long-term 

• Community support of $1.2M 

• Secondary option of securing non-stop service by a carrier other than Sky King 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

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Community Overview 

Local Community: The City of Lakeland and Polk County 

The City of Lakeland covers over 74.4 square miles and has a population of 94,163 

based on April 2009 figures but that number is forecasted to be 100,000 with the 2010 

census. When the unincorporated area is included the population swells to 236,460. 

It is located in Polk County, which has emerged as a leading logistics center due to its 

central location in Florida. From this platform on Interstate 4, companies have easy access to Interstates 

75 and 95 as well as US Highway 27, a major north-south route. 

Many prominent companies are headquartered in Polk County with operations across Florida and in 

surrounding states, such as Publix Super Markets, Florida’s Natural Growers, Ben Hill Griffin Corporation, 

Fed-Ex, Colorado Boxed Beef, MOSAIC, Comcar Industries, W.S. Badcock Corporation, Gator 

Freightways, Room To Go and Saddle Creek Corporation. 

Polk County has been one of the hardest hit by the recession. The national unemployment figure is 9.7% 

and the Florida unemployment rate is 11.9%. In January, there were 1.1 million Floridians out of work. 

Polk County is tracking even higher at 13.3%. In a recent Florida Trend Article regarding poverty rates in 

the suburbs, Lakeland had the fifth-highest suburban poverty rate in the nation in 2008. According to a 

Brookings Institute study, 75,000 people in Lakeland’s surrounding suburbs or 15.8% of the population — 

live below the poverty level of $21,834 for a family of four. Within Lakeland’s city limits, meanwhile, 

12,182 people, or 13.3% of the population, live in poverty. 

In short, the community is in need of the economic benefit that would come from LAL scheduled service. 

The community and City have shown their confidence in the potential for the service by investing a 

significant amount of resources in the improvements noted above and in supporting this grant application. 

Impact of Tourism on Polk County 

Tourism is one of Polk County’s largest industries with an estimated economic impact of $1.1 billion. 

Tourism supported more than 21,000 Polk County jobs in 2009. Visitors paid more than $31 million in 

sales taxes in Polk County. Lakeland is home to 37 area hotels and motels offering 3089 rooms. Within 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

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Polk County, there are 7,100 rooms in approximately 111 hotels and motels. The traditional tourist 

season runs January through March with an average occupancy rate of 60% and an average daily room 

rate (“ADR”) of $77.00. Obviously, this is an average of all Polk County hotels and motels. They have 

some properties that run an average of 84% in peak season. Off peak season would be from April 

through December, where the occupancy runs about 38% on average with an ADR of $61.00. Again 

however, in Lakeland, there are several properties that run a much higher occupancy rate and their ADR 

is $65.00--$71.00. 

Polk County is unique in that it also offers approximately 7,200 vacation rental homes on the east side of 

the county near Disney World. These homes account for 52% of the annual bed-tax collections. Their 

peak season is summer. 

With significant hotel and rental home inventory with low daily rates and low occupancy, Polk County has 

tremendous potential to emerge as a low cost base for tourists wanting to access the attractions in the 

region, and in doing so driving significant economic benefit to the local economy. 

Last year, Polk County hosted 227 sporting events generating more than $126 million in economic impact 

alone. Lakeland is the Spring Training home to The Detroit Tigers and the annual home to their Class A 

team, The Flying Tigers. Together, they generate about $50 million in economic impact. During 2010 the 

Detroit Tigers at Joker Marchant Stadium in Lakeland held a total of 15 Spring Training games with a total 

attendance of 112,560, averaging 7,504 per game. The largest crowd ever recorded was Saturday, 

March 27 when the Tigers played The N.Y. Yankees. 

The Lake Myrtle Sports Complex is home to the Florida Youth Soccer Association—bringing thousands of 

young soccer players to the area each year and the Russ Matt Central Florida Invitational, which brings 

more than 200 collegiate baseball teams to the area each March. 

The Lakeland Center, a four- building multipurpose entertainment complex in Lakeland is home to many 

diverse performing arts programs, including the Lakeland Broadway and Entertainment Series, The 

Imperial Symphony Orchestra, The Lakeland Concert Band, and various contemporary performances by 

professional artists. The venue also features 100,000 square feet of state-of-the art exhibit space for 

meetings and conventions and an arena that is the ideal location for many state, regional and national 

championships. In February and March alone, more than 100,000 fans from around the State of Florida 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 6 

enjoy the Florida High School Athletic Association State Wrestling and Boys and Girls State Basketball 

Championships. These numbers account for more than $6 million in direct economic impact each year. 

Lakeland is home to Explorations V Children’s Museum, Florida Air Museum, Sun ‘n Fun Fly-In, the 

largest single site collection of Frank Lloyd Wright Architecture, the Florida Dance Theatre, The Harrison 

School for the Arts, the Imperial Symphony Orchestra, The Lakeland Community Theatre, Polk Museum 

of Art, and last but certainly not least, one of only three surviving atmospheric theatres left in the state—

The Polk Theatre. The Historic Polk Theatre opened in 1928 as a vaudeville and movie house and is now 

in the National Register of Historic Places, along with many other historic locations in downtown 

Lakeland, including the Lake Mirror Promenade and The Terrace Hotel. 

Each year, Lakeland provides access to a number of top tourist destinations and attractions. Bok Tower 

Gardens, Fantasy of Flight, Disney World and Busch Gardens are all within an hour’s drive of Lakeland. 

LAL is within an hour’s drive of eight Spring Training Major League teams. The Annual Sun ‘n Fun Fly-In 

brings in approximately 160,000 international, national, regional and statewide visitors to Lakeland and 

the entire Polk County area each Spring for a week long aviation convention. Mayfaire-by-the-Lake, in 

Lakeland, has grown into a regional juried art show that showcases more than 200 artists’ displays along 

the shores of Lake Morton each Mother’s Day weekend. It brings in about 35,000 annual visitors. Florida 

Southern College offers, in addition to the largest single-site collection of Frank Lloyd Wright Architecture 

with the “Child of the Sun” Collection, the Annual Festival of Fine Arts program featuring such 

international artists as The Moscow Festival Ballet! The Lakeland Annual Pig Festival each January 

brings 30,000 visitors to sample more than 300 BBQ teams finest food. In April, downtown Lakeland 

introduces the Florida Outdoor Sculpture Celebration and in October, more than 25,000 visitors enjoy 500 

show vehicles in the Lake Mirror Classic Auto Festival. 

In the Fall of 2011, LEGOLAND is scheduled to open in Polk County. The attraction represents a $150 

million dollar investment for the first three years, with another $150 million dollar investment scheduled for 

the next three years. The second offering will include a resort hotel and conference center, a water park, 

and a Sea Life Aquarium. LEGOLAND has been recognized by Amusement Today as the Country’s best 

theme park for children for the 6th consecutive year. 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

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Lakeland Linder Airport (LAL) Overview 

The City of Lakeland, Florida, and the city’s aviation 

facility, Lakeland Linder Regional Airport, have grown 

and prospered together for some 65 years. Today the 

airport’s primary clientele is corporate, business and 

recreational/sport general aviation users. Situated 

approximately 30 miles east of Tampa and 55 miles 

south of Orlando, Lakeland Linder serves as an 

excellent, cost-effective reliever alternative for avoiding the heavy traffic at those two cities’ major airports. 

LAL is an FAR 139 airport with an Index A ARFF capability and an 

ATCT operated 365 days per year. LAL has two asphalt runways. 

Runway 09/27 is 8,500 feet long by 150 feet wide and is served by 

a full-length parallel taxiway and can handle most aircraft available 

today. The 5,000 foot long by 150 feet wide Runway 05/23 with its 

partial-length parallel taxiway is the precision runway for ILS users. 

The airport is located just off the Interstate 4 corridor in the heart of Florida’s prime tourism country. 

Disney World and Busch Gardens are fewer than 40 minutes away, and Cypress Gardens is only a 30-

minute drive. It takes no more than an hour to be on the world famous Gulf Coast beaches. 

However, visitors need not even leave the Lakeland Linder’s 1,700 plus acres to enjoy themselves. The 

facility hosts events ranging from community art shows to Harley Owners Group fundraisers. Two 

international remote control airplane events, Florida Jets and Top Gun, have been growing in popularity. 

A new facility for an aviation-oriented high school is under construction on the Sun ’n Fun campus at 

Lakeland Linder Regional Airport. The new $7.5 million, 58,000-square-foot facility of the Central Florida 

Aerospace Academy (CFAA) will open in 2011. With a current enrollment of 150 high school students in 

grades 9 through 12, CFAA is now beginning its third year. The Polk County School Board estimates 

enrollment will grow to 400-500 students within five years; CFAA’s new facility will accommodate this 

anticipated increase. Funding for the new facility was provided by a $7.5 million grant to Sun ’n Fun from 

the Aviation Education Foundation. CFAA has had a significant impact on Lakeland Linder Regional 

Airport in several ways. The students, the airport, and local businesses benefit from the academy’s 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 8 

presence on the airfield. As a Workforce Education Career Academy, CFAA maintains partnerships with 

local businesses. The “partner” businesses, and other businesses on airport property, employ CFAA 

students. The students receive hands-on experience while still in high school, and the businesses have 

the benefit of motivated, interested student-employee. CFAA’s efforts might also benefit aviation 

education throughout the U.S. In 2009 CFAA was one of nine schools in the country to receive a grant 

from NASA to write an aviation/aerospace curriculum for middle school through high school students. Of 

the nine school systems receiving the grant, Polk County received the largest sum, $1.4 million. The Polk 

County school system and the University of South Florida have now written the curriculum, and CFAA will 

test the curriculum during the current (2010/2011) school year. Later, NASA will package and market the 

curriculum. 

LAL’s largest attraction, put on by one of its biggest tenants, is the annual Sun ‘n Fun 

Fly-in convention. Begun in 1975, it has become the second largest air show in the 

United States. It features every conceivable type of aircraft, offers a wide array of 

accessories and activities related to flying, and draws aviation enthusiasts from around 

the world. The amount of in and out Sun ‘n Fun air traffic LAL handles allows it to lay claim to being the 

busiest general aviation airport in the country during the week of the convention. 

For more information, go to www.lakelandairport.com
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 9 

Air Service Overview 

Community’s Historical and Existing Air Service 

Currently, Lakeland and Polk County do not have a commercial service airport; LAL serves as a general 

aviation reliever airport. As such, there are no commercial aviation statistics available for the community. 

Below is a summary of the GA activity at the airport over the past 5 years. 

Exhibit 2: LAL Annual Traffic Counts (total aircraft movements) 

Community’s Air Service Development Efforts 

Within the past five years, the City of Lakeland and LAL have been actively involved in efforts to prepare 

the airport for commercial service and in pursuing new service. 

Starting in 2007 LAL began exploring options for commercial service. Since that time they have spent 

more than $300K on consulting with Daedulus Aviation Strategies LLC and on marketing (2007 - $95,675; 

2008 - $97,984; 2009 - $61,987 and 2010 - $50,000 est.). 

Specific activities have included: 

2008 

• Participated in an extensive process attempting to secure service from Skybus Airlines, including 

making infrastructure improvements 

2009 92,402

2008 118,175

2007 147,449

2006 118,713

2005 101,361
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 10 

2009 

• Hired new airport director Eugene B. Conrad III, C.M. who has significant experience in recruiting 

commercial service to small communities including being part of the team that opened Branson 

Airport, which was the first privately developed, and operated commercial service airport in the 

country 

2010 

• As described above, LAL secured funding for and launched a major project to develop the 

infrastructure required to support scheduled service 

• LAL recruited Sky King corporate headquarters and maintenance operations to the airport with a 

key motivation being to establish a base from which they could offer scheduled charter service 

• In summer 2010 the airport funded an air service study with Seabury APG which is currently 

underway 

• In Summer 2010 LAL started holding meetings with targeted communities interested in low fare 

service to the Central Florida region 

• LAL has spoken with multiple carriers who are interested in providing service to the market 

• LAL has held meetings with the FAA Administrator, Randy Babbitt 

• LAL has created marketing materials to promote the airport and to start preparing the community 

that commercial service is coming 

Exhibit 3: Sample airport marketing materials 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 11 

 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 12 

Strategic Plan 

The strategic plan calls for bringing scheduled service to LAL with new scheduled public charter service 

from targeted communities either from Sky King or, as a secondary option, another carrier. This service 

is projected to be sustainable in the long-term. 

Goals 

The community has three primary goals in seeking a SCASDP grant; each of these will be met by the 

proposed strategic plan: 

• Bring scheduled service, and the resulting economic development, to LAL 

• Provide low fare service to other targeted communities who currently lack nonstop service to the 

Central Florida region 

• With successful flights and robust marketing, establish LAL as a viable access point for the 

Orland and Tampa regions 

Sky King Support 

As the letter below indicates, Sky King strongly supports this application. The airline believes in the long 

term potential for the markets but is also realistic about the high degree of marketing which will be 

necessary to establish the service and the financial risk associated with the initial launch time period; thus 

necessitating the grant and associated revenue guarantee and marketing money. See attached letter of 

support from Sky King (in Appendix B). 

Market Analysis Study 

The market analysis was performed by Seabury APG (“SAPG”), a leading aviation consulting firm and 

represents the initial piece of work on a broader market analysis which is currently being competed. 

Regional Overview 

Capacity into the Tampa and Orlando area remains constrained following the pull-downs driven by recent 

economic conditions. Capacity to the region is down 10% versus 2005 and 20% since 2008. 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 13 

Exhibit 4: Seats per month (M) to MCO, SFB, TPA and PIE (source: DOT T-100 via apgDat) 

The capacity reduction has driven up load factors with 2010 up ~3 points higher year-over-year. The 

80%+ load factors are a strong indication that traffic is being spilled. 

Exhibit 5: Load Factor per month to MCO, SFB, TPA and PIE (source: DOT T-100 via apgDat)

 While average fares dipped during the recession, they had already recovered up 7% year-over-year by 

the first quarter of 2010 and are likely following national trends with significant gains in the rest of 2010. 

M J- J J ASO ND

2007

J-F M

2006

D A

2.0

2.5

3.0

3.5

M-J J A S O N

2005

F M AM J J A S O ND J2008F M AM J J A S OND J2009F M AM J J A S OND J2010FMAM

-20%

-10%

68%

70%

72%

74%

76%

78%

80%

82%

84%

86%

88%

M2005A OND J-F

2010

J-F M A M A M

2008

J-F N M A F J M A M J J A S O ND M

2006

M J- J J A S O

2007

J J S D J- F M A M J S A O ND

2009

J S A O J ND
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 14 

Exhibit 6: Average net fares to MCO, SFB, TPA, PIE (source: DOT DB1B via apgDat) 

All together, it is a strong environment into which to add new capacity to the region. 

Benchmarking Similar Service in the Region 

Developing service at LAL is very similar to the launch of new service from Allegiant at both OrlandoSanford (SFB) and St. Petersburg International Airport (PIE), which is an airport just outside of Tampa. In 

both cases, Allegiant has built up a viable secondary airport, using scheduled service to small 

communities, stimulating demand through aggressive advertising and attractive price points. While LAL 

is not asserting that by winning this grant it will see growth equivalent to PIE or that Sky King would be 

the next Allegiant; it is useful to benchmark the spool up and fares at those airports to use a benchmark 

for assumptions for LAL service. To be conservative, assumed that the LAL service will start with just a 

65% load factor and spool to just 76% by year 3. 

$110

$115

$120

$125

$130

$135

$140

$145

$150

$155

+7%

2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

+17%

1Q05
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 15 

Exhibit 7: Allegiant load factors at PIE and SFB (source: DOT T100 via apgDat) 

While load factors spooled up in the markets, fares trended down. This is partially due to the fact that 

during this period Allegiant saw dramatic spikes in ancillary revenue, which allowed them to offer lower 

price points and yet achieve superior total revenue per passenger. The fares were also impacted by the 

recession; but as 1Q10 shows the impact has already started to reverse out. To be conservative, LAL 

fares are being modeled at $62 in year 1 and only climbing to $70 in year 3. This recognizes the 

importance that price point advertising will play in driving awareness of LAL as an option to access the 

region. 

Exhibit 8: Allegiant average net fares at PIE and SFB (source: DOT DB1B via apgDat) 

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

J2008A J- S O ND

2009

J-F M A M J J MAMJ J ASOND

2007

J-F M A M J J A S O ND

2006

A S O ND

65%

M-J J

2005

F AM J J A S OND J2009F FM M AM

St. Petersburg International Airport (PIE)

Orlando-Sanford (SFB)

SFB saw spool, going from ~73% in 

year 1 to 78% in year 2 and 85%+ since

PIE saw almost no spool

$50

$55

$60

$65

$70

$75

$80

$85

$90

$95

2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

$62

Orlando-Sanford (SFB)

St. Petersburg International Airport (PIE)
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

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Forecast 

In the first year of operation, the flights are expected to lose $604K as the market is introduced and 

revenue spool occurs. In 2011 the route is anticipated to make $322K and in 2012 $1,369K. 

Exhibit 9: Route P&L Forecast 

(000) Year 1 Year 2 Year 3 

Route P&L

Local revenue $4,617 $5,196 $5,825 

Ancillary Revenue $692 $1,039 $1,456 

Segment revenue $5,309 $6,235 $7,282 

Total operating expenses $5,913 $5,913 $5,913 

Segment P&L ($604) $322 $1,369 

Stats

Ancillary revenue % 15% 20% 25%

Flights / day 111

Seats / flight 150 150 150

Load factor 68.0% 73.0% 76.0%

Average Segment Fare $62 $65 $70 

Block hours / flight 1.8 1.8 1.8

Expenses / block hour $4,500 $4,500 $4,500 

Alternate Plan 

While LAL has held advanced talks with Sky King, it recognizes that the dynamics of the airline industry 

and the economic conditions are such that a deal may not ultimately be reached for the service proposed 

here. Should LAL not secure a deal with the Sky King by June 2011, then the airport will seek an 

alternate carrier to provide service to meet the grant application goals. 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

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Plan Implementation and Funding 

Public/Private Partnership 

The City of Lakeland and LAL have developed a robust partnership with the community as is documented 

by the level of financial commitment and the letters of support. LAL has an Advisory Board which is 

headed by the Mayor of the City and consists of nine members. The members are representative of 

different aspects of both the business community and airport businesses. The Board meets six times a 

year and holds special sessions if required. 

Lakeland Linder Airport Advisory Board 

• Tom Dunn – Corporate Aviation Rep – Columbia Air Services – Director of Fuel Operations 

• Robert Knight - Citizen-at-Large – Knight Industrial Equipment Inc. – Owner/President 

• Ken Willaford - Airport Tenant – Aeromech, Inc. - Owner 

• John Burton – Citizen at Large – Sun ‘n Fun Fly-In - President 

• Jeff Kincart – Citizen at Large – American Compliance Technologies, Inc. – Civil Engineer 

• Joel Adams – General Aviation – Highland Homes - President 

• Scott Franklin – LEDC Rep – Lanier Upshaw, Inc. – President and CEO 

• Gow Fields – City Commission Representative - Mayor 

• Justin Troller – City Commission Representative - Commissioner 

Sources and Uses of Funds 

As detailed below, to initiate schedule service the community is committing $100,000 in cash towards 

marketing, this will be funded by the Central Florida Development Council. The City of Lakeland will be 

providing Crash Fire Rescue Services and Police Services at no charge to the airport, a $550,000 cash 

savings. The City of Lakeland will also be providing $50,000 in cash towards the revenue guarantee; 

10% of the total for the guarantee. Total cash funds from the community are $700,000. The airport will 

spend $100,000 in marketing while waiving $412,000 in fees. LAL is requesting a $750,000 grant to 

supplement local funds; the grant will be divided with $250,000 in marketing and $500,000 in revenue 

guarantee. 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 18 

Exhibit 10: Source and Uses of Funds 

Community Airport DOT

Total

Fund Uses Cash In-Kind Cash In-Kind Grant 

Marketing 100,000 100,000 250,000 450,000

Fee Waiver 412,000 412,000

Crash Fire Rescue 

Services 450,000 450,000

Police Services 100,000 $100,000

Revenue Guarantee 50,000 $500,000 $550,000

Subtotal 700,000 100,000 412,000 $750,000 

Total $700,000 $512,000 $750,000 $1,962,000 

% of Total 36% 26% 38% 

% of Cash 45% 6% 48% 

Exhibit 11: Sources for Community Cash Contributions 

Source Fund Uses Cash 

Central Florida Development Council Marketing $100,000

City of Lakeland Crash Fire Rescue Services 450,000

 Police Services 100,000

 Revenue Guarantee 50,000

Subtotal City of Lakeland $600,000

Total Community Cash $700,000

Not included is a robust mix of local in-kind promotional items from LAL partners: 

• Semi Annual Promotional Inserts to 100,000 electric customers serviced by Lakeland Electric 

• Chamber of Commerce Newsletter 

• Lakeland Ledger, the local newspaper 

• City of Lakeland’s public television station 

• City of Lakeland’s web site 

• Sky King’s website 

• Marketing brochure for Lakeland 

• Email marketing with LEGOLAND database 

• Airport partners, tenants websites, emails 

• Hotel and lodging emails 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 19 

Airport Participation 

LAL airport will provide $100K in marketing money and fee waivers worth an estimated $412K. 

Marketing Program 

As this new service will be leisure orientated, it will be critical to have a robust marketing campaign in the 

cities receiving service. LAL has pulled together a strong group of partners who are experts in marketing 

Lakeland and Polk County. LAL will rely heavily on this group to provide resources (ad copy, graphics, 

etc...) and guidance on the most effective ways to market the service in the target communities the flights 

will serve. The key objective will be to generate awareness for the flights and for Lakeland / Polk County. 

The marketing mix will likely be similar to what Allegiant uses to create demand in the markets they have 

entered, relying heavily on print and radio to market aggressive price points. LAL intends to partner with 

communities who are willing to contribute to the marketing of the service, further spreading the reach of 

the budget presented in this application. Local groups have committed to continued marketing efforts well 

beyond the initial period of the grant. 

Marketing partners include: 

• City of Lakeland 

• Central Florida Development Council 

• Central Florida Visitors and Convention Bureau 

• Lakeland Chamber of Commerce 

• Lakeland Convention & Visitors’ Bureau 

• Lakeland Economic Development Council 

• LEGOLAND 

• Polk County Sports Marketing 

• Lodging Association 

The marketing will likely involve a mix of the following: 

• Print ads in local newspapers and publications 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 20 

• Local radio ads and possibly television spots 

• Internet – banner ads, feature content on partner sites (LAL, CVB, target airports, marketing 

messages on Sky King site, etc...) 

• Email blasts – LEGOLAND, hotels, rental cars, visitor bureaus, and other partners 

• Travel agent blitzes and familiarization trips 

• Public relations with press releases, writer trips, etc... 

Revenue Guarantee 

As discussed above, the service is high risk and will require a revenue guarantee to help offset the risk 

during the spool up period. The projections indicate that a $550K guarantee will be needed as a financial 

backstop. Terms of the agreement will be subject to negotiations between LAL and the operating carrier. 

Funding Assurances 

LAL will be the coordinator between the public/private partners for the DOT grant. LAL will also take 

responsibility for the grant funds. 

Milestones and Monitoring 

LAL and its public / private partners have established realistic timelines for implementing the plans 

presented here. Exhibit 12 establishes the key milestones. LAL believes the targets to be conservative 

given the advance state of negotiations with Sky King and the progress made on terminal improvements 

and with the TSA. Should Sky King not start service to LAL by June 2011, then the airport will seek an 

alternate carrier to provide service to meet the grant application goals. 

LAL will have ultimate responsibility for monitoring the successful implementation of the grant program. It 

will partner with the City of Lakeland and the Lakeland Linder Airport Advisory Board to ensure successful 

implementation of the strategic plan. Key areas that will be monitored include: 

• Detailed project timelines and budgets 

• Marketing plan implementation 

• Monitoring flight performance relative to targets in the revenue guarantee using: airport collected 

enplanement data and internal carrier data 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 21 

Exhibit 12: Sample Project Timeline (Actual dependent on service announcement / start dates) 

Measure of Success 

The ultimate measure of success will be if service to LAL is successful launched and is viable 

within the first couple of years of service. LAL and its partners will continually monitor flight 

performance including passenger volumes and average fares and will shift marketing resources 

as required. LAL will also monitor competitive developments at the other airports in the region. 

Program Continuation 

This grant request will fund the initial launch of this new service. Once this air service has been 

launched and established, it will become part of the airport’s on-going marketing plan and will be 

part of the annual airport marketing budget. 

2011 2012

12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9

Grant Award

Announcement of Service

Start of Service

Marketing campaign

Design Phase

Advertising Campaign 

Revenue Guarantee

Activity

Status Report to DOT

Implementation Phase 

Project Tracking
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 22 

Legal Sponsoring Entity 

Lakeland Linder Regional Airport 

3900 Don Emerson Drive, Suite 210 

Lakeland, FL 33811 

Contact: Eugene B. Conrad III, C.M.; Airport Director 

(863) 834-3298 

Conclusion 

Lakeland Linder Regional Airport should be given priority consideration for the Small Community Air 

Service Program as an airport seeking to establish its first commercial service and given that it will be 

providing low fare service to other small communities. It meets the criteria as set forth in the statute as 

follows: 

• Lakeland currently does not have commercial air service and will be able to meet all necessary 

requirements of the Federal Aviation Administration for the type of service involved in their grant 

proposals 

• The community will provide $700,000 in cash, which is 36% of the cost of the program 

• The Lakeland Linder Airport Advisory 

Board is public/private partnership formed 

to help promote the airport and focus on 

assisting with development opportunities 

• Each of the target communities would be 

eligible for SCASDP in their own right. As 

such, the benefit from awarding a grant to 

LAL works to achieve the goals for 

SCASDP to a far greater degree than just 

the impacts on the City of Lakeland and 

Polk County 

• This grant will be used immediately upon 

receipt of award 

 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 23 

Appendix A: Required Summary Information

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM 

DOCKET DOT-OST-2010-0124 

Designated Legal Sponsor Point of Contact: 

Lakeland Linder Regional Airport 

3900 Don Emerson Drive, Suite 210 

Lakeland, FL 33811 

 Contact: Eugene B. Conrad III, C.M.; Airport Director 

 Phone: (863) 834-3298 

Fax: (863) 648-3274 

Email: gene.conrad@lakelandgov.net 

Sponsoring Entity: Lakeland Linder Regional Airport 

Dun & Bradstreet Number: 020997912 

A. Applicant Information 

Not a Consortium Community now receives EAS subsidy 

Interstate Consortium Intrastate Consortium 

Community previously received a Small Community Grant 

If previous recipient, expiration date of grant: ______ 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 24 

B. Public/Private Partnership 

Public: 

1. Lakeland Linder Regional Airport 

2. City of Lakeland 

Private: 

1. Lakeland Linder Airport Advisory Board 

2. Central Florida Development Council 

C. Project Proposal 

Marketing Upgrade Aircraft New Route 

Personnel Increased Frequency Low Fare Service 

Travel Bank Service Restoration Subsidy 

Surface Transportation Regional Service Other (specify) 

Revenue Guarantee Launch New Carrier 

Start Up Cost Offset First Competitive Service 

Study Secure Additional Carrier 

D. Existing Landing Aids at Airport 

Full ILS Outer/Middle Marker Published Instrument Approach 

Localizer Other 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 25 

E. Project Cost 

1. Federal amount requested: $750,000

2. State cash financial contribution: $0

3. Local cash financial contribution: 

3a. Airport cash funds: $100,000

3b. Non-airport cash funds: $700,000

3c. Total local cash funds (3a. + 3b.): $800,000

4. TOTAL CASH FUNDING (1. + 2. + 3c.): $1,500,000

5. Local funds contributed from already-existing 

programs or projects included in line 3c. amount: $0

6. Local funds contributed from new commitments 

or new resources included in line 3c. amount: $800,000

7. Airport In-Kind contribution: $412,000 in fee waivers

8. Other In-Kind contribution: $0

9. TOTAL IN-KIND CONTRIBUTION (7. + 8.): $412,000

10. TOTAL PROJECT COST (4. + 9.): $1,962,000

F. Enplanements at Airport 

None 

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. 

c. Program is not covered by E.O. 12372. 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 26 

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

No Yes (explain) _____________________________________________ 

Proximity of Other Airports: 

• Non-hub and Low Fare Service (w/jet service): St. Petersburg, FL; 50 miles / 1 hour 

• Small Hub and Low Fare Service: Orlando Sanford, FL; 90 miles / 1 hour 45 minutes 

• Medium Hub and Low Fare Service: Fort Myers, FL; 215 miles / 3 hours 45 minutes 

• Large Hub and Low Fare Service: Tampa, FL; 40 miles / 45 minutes 

 
Lakeland Linder Regional Airport 

Small Community Air Service Development Grant Application – August 2010

Page | 27 

Appendix B: Letters of Support


228 S. Massachusetts Avenue  Lakeland, Florida 33801-5012

Phone 863/834-6000  www.lakelandgov.net

GOW B. FIELDS, Mayor

August 27, 2010

The Honorable Ray LaHood

Secretary

U. S. Department of Transportation

400 7th Street, SW Room 10200

Washington, DC 20590

Secretary LaHood;

As Mayor of the City of Lakeland, I highly endorse Lakeland Linder Regional Airport’s 

grant application for the Department of Transportation’s Small Community Air Service 

Development Program. The City of Lakeland shares the Airport’s goal of attracting low fare 

commercial service to the region to foster economic growth and improve quality of life 

options for the citizens in our community. The presence of a low fare carrier would play a 

pivotal role in our future growth.

Both the City of Lakeland and the Florida Department of Transportation (FDOT) have 

recognized the importance of the airport to the region. The City is investing over $1.4M on 

infrastructure projects to prepare for commercial service. Additionally, the City provides 

police and fire services at no cost to the airport, saving over $450,000 annually from the rate 

base, which carriers would otherwise have to pay. FDOT in August 2010 granted the airport 

$2.0M to fund the improvements necessary to accommodate scheduled flight operations; 

these include ticketing areas, baggage claim, baggage make-up areas, sterile areas, the 

security checkpoint, access controls, CCTV, additional facility square footage, and offices 

for T.S.A.

Lakeland Linder Regional Airport currently operates under a Part 139 Certificate and upon 

completion of its work with T.S.A., will be in a position to launch its commercial program in 

the beginning of 2011. Low fare service to Lakeland would not only benefit our region, but 

also to the small communities where the flights will operate, providing those cities with the 

economic benefit of stimulated air travel and lower airfares. The funds from the grant will 

be used exclusively at non-primary airports, where low fare carriers can capitalize on the 

lower infrastructure costs to permit lower fares for passengers.

Lakeland is situated between Orlando and Tampa and its location by Polk Parkway, I-4 and 

proximity to the future high speed rail system will enable easy access to and from the 

Airport with ground transportation alternatives available to move them to their final 

destination within Polk County, or its neighboring Hillsborough and Orange County. 

Lakeland is less than an hour from either Tampa or from the major attractions in Orlando 
such as Disney World. Marketing money from the grant will not only be used to raise 

awareness about easy access from Lakeland to Orlando and Tampa; but also to establish 

Polk County as a convenient and affordable place to stay for tourists wanting to take 

advantage of both destinations. This will drive significant hotel, rental car, restaurant, and 

attraction revenue for the region.

Central Florida has been one of the hardest hit areas during this recession, and the increased 

traffic that the Air Service would bring to our region would be not only extremely beneficial 

to this Region, but also to the State through added tourist and business travel. We believe 

strongly in promoting Air Service to Lakeland Linder Regional Airport and expect the 

economic, transportation and quality of life benefits to be important to the recovery of the 

region.

The City of Lakeland fully supports this grant application, and I strongly encourage your 

approval of the request. If you have any questions or need any additional information, 

please do not hesitate to contact me.

Kindest regards,

Gow B. Fields

Mayor